UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

~~Washington~~WASHINGTON, DCD.C. 20549

FORM 10-K

~~FORM~~(Mark ~~10-K~~One)

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

For the ~~fiscal~~Fiscal ~~year~~Year ~~ended~~Ended September 30, ~~2008~~2009

orOR

~~[ ]~~o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT ~~OF1934~~OF 1934

Commission ~~file~~File ~~number:~~ No. 0-12809

~~AMERICAN~~American ~~RESOURCE~~Resource ~~TECHNOLOGIES~~Technologies, ~~INC~~Inc.

(Formerly Golden Chief Resources, Inc.)

(Name of ~~small~~Issuer ~~business issuer~~ in its charter)

State of Kansas	48-0846635
Kansas		48-0846635
(State or other jurisdiction of	(I.R.S. Employer
(State of incorporation)		(IRS Employer Identification No.)
incorporation or organization)	Identification #)
1301 Custer Road #352-1009
Plano, Texas		75075
(Address of Principal Executive Office)		Zip Code

~~2351~~Registrant’s W.telephone ~~Northwest Highway~~number, ~~Suite~~including ~~1203,~~Area ~~Dallas,~~Code: ~~Texas 75220~~(214) 705-3781

~~(Address~~Securities ofregistered ~~principal~~pursuant ~~executive~~to ~~offices)(Zip~~Section ~~code~~12(b) of the Act: None

~~Issuer's~~Securities ~~telephone~~registered ~~number:~~pursuant to Section 12(~~214~~g) ~~705-3781~~of the Act: Common Stock (Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. X ~~Yes ‪ No~~x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ‪ ~~Yes X No~~o

Indicate by check mark whether the registrant (1) has filed all reports ~~required~~ to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 No þ

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K ~~(§ 229.405 of this chapter)~~ is not contained herein, and will not be contained, to the best of ~~registrant~~Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K ~~x Yes ‪ o No~~. þ

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 o 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 xþ (Do not check if a smaller reporting company)

~~State~~Indicate ~~issuer's~~by ~~revenues~~check ~~for~~mark ~~its~~whether ~~most~~the ~~recent~~registrant ~~fiscal~~is ~~year~~a ~~$46,838.~~shell company (as defined in Rule 12b-2 of the Act): o Yes þ No

~~Indicate~~The ~~the~~Issuer’s ~~number~~revenues offor ~~shares outstanding of each of~~ the ~~issuer's~~most ~~classes~~recent offiscal ~~common~~year ~~stock,~~were ~~as of the latest practicable date~~$15,737.

~~The~~On September 30, 2009, the aggregate market value of ~~the~~voting and non-voting ~~stock~~common equity held by non-affiliates of the registrant was approximately $280,373. This amount was calculated by reducing the total number of shares of the registrant’s common stock outstanding by the total number of shares of common stock held by officers and directors, and stockholders owning in excess of 5% of the registrant’s common stock, and multiplying the remainder by the average of the bid and asked price for the registrant’s common stock on September 30, ~~2008~~2009, ~~was~~as ~~$280~~reported on the Over-The-Counter Pink Sheet Market. As of August 15,~~373~~ 2011, the Company had 66,434,412 issued and outstanding shares of common stock.

~~There~~Documents ~~were~~Incorporated ~~63,041,273~~by ~~shares~~Reference: ~~of common stock, No Par Value,~~None

~~outstanding as of September 30, 2010.~~-1-

1TABLE OF CONTENTS

AMERICAN RESOURCE TECHNOLOGIES, INC.

INDEX



Part I
Item 1. Business	3

Item 1A. Risk Factors	6

Item 1B. Unresolved Staff Comments	11

Item 2. Description of Properties	11

Item 3. Legal Proceedings	13

Item 4. Reserved

Part II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchase of Equity Securities	14

Item 6. Selected Financial Data	14

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations	14

Item 7A. Quantitative and Qualitative Disclosures about Market Risk	16

Item 8. Financial Statements and Supplemental Data	17
Report of independent registered public accounting firm
Balance Sheets
Statement of Operations
Statement of Cash Flows
Statements of Stockholders’ Deficit
Notes to Financial Statements

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	37

Item 9A(T). Controls and Procedures	37

Item 9B. Other Information	37

Part III
Item 10. Directors, Executive Officers and Corporate Governance	38

Item 11. Executive Compensation	38

Item 12. Security Ownership and Certain Beneficial Owners and Management and Related Stockholder Matters	40

Item 13. Certain Relationships and Related Transactions and Director Independence	41

Item 14. Principal Accounting Fees and Services	41

Part IV
Item 15. Exhibits and Financial Statement Schedules	42

Signatures	43

Certificates
EX-31.1
EX-32.1

-2-

PART I

~~Item~~Forward 1.Looking ~~Description of Business~~Statements

This annual report on Form 10-K includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (athe “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which can be identified by the use of forward-looking terminology such as “may,” “can,” “believe,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “estimate,” “will,” or “continue” or the negative thereof or other variations thereon or comparable terminology. All statements other than statements of historical fact included in this annual report on Form 10-K, including without limitation, the statements under “Item 1. Business” ~~Development~~and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and located elsewhere herein regarding the financial position and liquidity of the Company (defined below) are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors with respect to any such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ materially from the Company’s expectations (“Cautionary Statements”), are disclosed in this annual report on Form 10-K, including, without limitation, in conjunction with the forward-looking statements and under the caption “Risk Factors.” In addition, important factors that could cause actual results to differ materially from those in the forward-looking statements included herein include, but are not limited to, inability to continue as a going concern, limited working capital, limited access to capital, changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, validity of patents, technological change, dependence on key personnel, availability of key component parts, dependence on third party manufacturers, vendors, contractors, product liability, casualty to or other disruption of the production facilities, delays and disruptions in the shipment of the Company’s products, and the ability of the Company to meet its stated business goals. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. We do not undertake to update any forward-looking statements.

~~American~~ We ~~Resource~~do ~~Technologies,~~not ~~Inc.~~have ~~(“American~~an ~~Resources~~operative orweb ~~the~~site ~~Company”)~~upon ~~was~~which ~~originally~~our ~~incorporated~~periodic ~~as Arts Antique Autos~~reports, ~~Ltd.,~~proxy statements and ~~changed~~Reports ~~its name to Golden Chief Resources, Inc.~~ on ~~August~~8K ~~5, 1981~~appear. OnOur ~~April~~reports 4,are ~~2007~~available ~~the~~on ~~Company changed its name from Golden Chief Resources, Inc. to American Resource Technologies, Inc. During~~ the ~~early~~EDGAR ~~1980s,~~system ~~the Company engaged in oil~~ and ~~gas~~may ~~operating,~~be ~~mining,~~viewed ~~real~~at ~~estate operations~~http://www. During the mid-1980s, the Company lost its asset and revenue base due to economic conditions, and liquidated assets and ceased operations in 1986, and the Company operated briefly again in 1999 - 2002 after a change in controlsec. ~~Accordingly, the Company remained dormant with no activity from 1987 - 1999 and again from 2002 until December 2004~~gov. ~~Since that date the Company has through the use of farm-outs received carried working interests in several wells and has been able to move non-producing properties into the producing category.~~

~~During~~ As ~~its~~used ~~fiscal year ended September 30~~herein, ~~2008,~~references to the “Company” ~~was~~are ~~not~~to ~~involved~~American inResource ~~any bankruptcy~~Technologies, ~~receivership~~Inc., ora ~~similar~~Kansas ~~proceeding~~corporation (“ARUR”) and ~~underwent~~its ~~no material reclassification, merger, or consolidation~~subsidiaries. ~~We do not anticipate involvement or participation in any of the above proceedings.~~

~~(b)~~Item 1. Business ~~of Issuer~~

OnRecent aDevelopments: ~~very~~Going ~~small~~Concern ~~scale the Company has re-entered the oil~~ and ~~gas~~Liquidity ~~industry as a producer but the prospect of growth is limited by the availability of sufficient funds to pursue this on a more active basis. The Company currently has three employees.~~Problems

~~(c)~~ We ~~Reports~~do not have sufficient working capital to ~~Security~~sustain ~~Holders~~our operations. We have been unable to generate sufficient revenues to sustain our operations. We will have to obtain funds to meet our cash requirements through business alliances, such as strategic or financial transactions with third parties, the sale of securities or other financing arrangements, or we may be required to curtail our operations, seek a merger partner, or seek protection under federal bankruptcy laws. Any of the foregoing may be on terms that are unfavorable to us or disadvantageous to existing stockholders. In addition, no assurance may be given that the Company will be successful in raising additional funds or entering into business alliances.

~~The~~ Our ~~Company~~auditors ~~does~~have ~~not~~included ~~intend~~an toexplanatory ~~deliver~~paragraph anin ~~annual~~their ~~report~~audit opinion with respect to our ~~security~~consolidated ~~holders~~financial statements at September 30, 2009. The ~~public~~paragraph ~~may~~states ~~read~~that our recurring losses from operations and ~~copy~~resulting ~~any~~continued ~~materials~~dependence ~~filed~~on ~~with~~access ~~the~~to ~~SEC,~~external ~~such~~financing asraise ~~this~~substantial ~~Form~~doubts ~~10-K~~about ~~and~~our ~~Form~~ability ~~10-Q~~to ~~reports~~continue as a going concern. WeFurthermore, ~~are~~the anfactors ~~electronic~~leading ~~filer~~to ~~under~~and the ~~SEC's~~existence ~~EDGAR~~of ~~filing~~the ~~program.~~explanatory ~~Accordingly,~~paragraph ~~our~~may ~~filings~~adversely ~~are~~affect ~~maintained~~our byrelationship ~~the~~with ~~SEC~~customers inand asuppliers ~~database~~and athave ~~www.sec.gov~~an ~~and~~adverse ~~are~~effect ~~available~~on toour ~~all~~ability ~~security~~to ~~holders~~obtain financing.

~~Item~~ See 2.“Risk ~~Description~~Factors” and “Management’s Discussion and Analysis of ~~Property~~Financial Condition and Results of Operations.”

~~As of September 30, 2008, the assets consisted of the Lindley lease, the Ownbey and Troyer leases which produce oil, and the Noll lease which to date is not productive.~~-3-

~~Oil and gas operations are and will be subject to federal, state and local laws and regulations and political developments.~~ The ~~domestic~~Company ~~production~~ and ~~sale~~Its of oil and gas are subject to federal regulation by the Department of Energy and the Federal Energy Regulation Commission. Rates of production of oil and gas have for many years been subject to federal and state conservation laws and regulations. In addition, oil and gas operations are subject to extensive federal and state regulations concerning exploration, development, production, transportation and pricing, and to interruption or termination by governmental authorities.Business

American Resource Technologies, Inc. (“the Company”) was incorporated in the state of Kansas. The ~~term~~Company ~~"working~~was ~~interest"~~originally incorporated as ~~used~~Arts ~~herein~~Antiques ~~means~~Autos, ~~all~~Ltd., orand achanged ~~fractional~~its ~~part~~name ofto Golden Chief Resources, Inc. on August 5, 1981. On April 4, 2007 the ~~ownership~~Company ~~rights~~changed ~~granted~~its byname afrom ~~concession~~Golden orChief ~~lease~~Resources, Inc. ~~The~~to ~~working~~American ~~interest~~Resource Technologies, Inc. Currently, our primary focus is to secure additional capital through business alliances with third parties or aother ~~part~~debt/equity ~~thereof,~~financing ~~pays~~arrangements ~~all~~to ~~costs~~acquire ofproducing ~~operation~~oil and isgas ~~entitled~~leases and wells. We have explored and will continue to explore all avenues possible to raise the ~~gross~~funds ~~production~~required. ~~less~~However, ~~royalties~~there ~~retained~~is byno ~~the~~assurance ~~grantor~~that orwe ~~lessor~~will ~~and~~be ~~less~~able ~~other~~to ~~royalties~~raise orsufficient ~~non-operating~~funds ~~interests~~to ~~created~~execute ~~and~~our ~~assigned~~plans ~~from~~or that if successful in securing the ~~working~~funds ~~interest~~our actual financial results will improve.

~~There~~As ~~are~~of ~~currently~~September 30, 82009, ~~oil~~we ~~wells~~had ontotal ~~the~~assets ~~Lindley~~of ~~lease~~$08,601 inof which ~~the~~net ~~Company~~oil ~~owns~~and agas ~~100~~properties amounted to $191,809 or 92% ~~working~~of ~~interest~~the total. As of September 30, ~~and~~2008, 17we had total assets of $312,108 of which net oil ~~wells~~and ongas properties amounted to $251,096 or 80.5% of the ~~Ownbey/Troyer~~total. ~~Lease~~Our inrevenues ~~which~~for the ~~Company~~current ~~owns~~fiscal ayear ~~25%~~totaled ~~working~~$15,735 ~~interest~~while the revenues for the previous fiscal year totaled $46,838. Our accumulated losses as of September 30, 2009 and 2008 totaled $5,954,317 and $4,995,492, respectively. At September 30, 2009, we had $2,542 ~~wells~~in oncash ~~the~~as ~~Linn~~compared ~~Lease~~to $1,762 for September 30, 2008. We have long-term debt of $10,000 at September 30, 2009 and ~~one~~$60,000 ~~oil~~in ~~well~~2008. onOur company has experienced operating losses over the ~~Noll~~past ~~Lease~~several inyears. ~~which~~We do not have sufficient working capital or revenues to sustain our operations. No formal commitments or arrangements currently exist to advance or loan funds to the Company. ~~owns~~In the event we are unable to acquire sufficient funds, the Company’s ongoing operations will be negatively impacted and we may not be able to continue as a ~~100%~~going ~~working~~concern ~~interest~~and we may have to curtail or terminate our operations and liquidate our business.

2Our mission is to be a publicly traded, independent oil and gas production company which can take full advantage of opportunities resulting from the major oil companies’ lack of interest in domestic oil and gas properties. In particular, most major oil companies are currently more interested in devoting their exploration dollars toward the development of oil and gas fields that are either offshore and/or not located in the United States, primarily because of the assumption by the major oil companies that domestic oil and gas properties have been significantly depleted. In addition, due to the extent of the development of domestic oil and gas properties, it is more likely that a significant new discovery in the oil and gas industry would likely be conducted in those areas that have not been so heavily developed, generally being properties that are not contained within the United States. Because major oil companies are more interested in developing their offshore and overseas holdings, they often ignore on-shore opportunities and sell their domestic properties at prices that are attractive to independent oil companies who have significantly lower administrative and operating costs. Due to our lower infrastructure costs, we believe that our costs of owning and operating domestic oil and gas properties are lower which allows us to acquire and operate properties that could be profitable for us but would not be profitable for most major oil companies.

~~Market~~Wells ~~for~~Held ~~Oil~~By ~~and~~the ~~Gas Production~~Company

~~The~~As ~~market~~further ~~for~~described ~~oil and gas production is regulated by both the state and Federal governments. The overall market is mature, and, with the exception of gas, all producers~~ in ~~a producing region will receive~~ the ~~same~~description ~~price. Purchasers or gatherers will typically purchase all crude oil offered for sale at posted field prices which are adjusted for quality difference from the “Benchmark”. Benchmark is the price~~ of ~~Saudi~~properties ~~Arabian~~section, ~~light~~during ~~crude oil employed as~~ the ~~standard~~fiscal onyear ~~which~~ended ~~OPEC~~September ~~price~~30, ~~changes~~2009 ~~have~~we ~~been~~owned ~~based.~~a ~~Oil~~25% ~~pumped~~working ~~from~~interest ~~wells is stored~~ in ~~tanks~~well onnumbers ~~site~~9 ~~where~~and ~~the~~10 ~~purchaser~~on ~~normally picks up~~ the ~~oil~~Ownbey atlease ~~the well site, but~~ in ~~some~~Kansas ~~instances~~and ~~there~~a ~~may~~100% ~~be deductions for transportation from the well-head to the sales point. Either the Company, the operator, or the purchaser handles payment disbursements to both the~~ working interest ~~owners~~in ~~and~~wells ~~the~~numbers ~~royalty~~1 ~~interest~~and ~~owners~~3.

~~During~~Development ~~the year ended September 30, 2008, the following customer accounted for greater than 10% of our oil~~ and ~~gas~~Operating ~~sales:~~Activities

~~Plains~~Economic ~~Marketing~~factors ~~LP 100%~~prevailing in the oil and gas industry change from time to time. The uncertain nature and trend of economic conditions and energy policy in the oil and gas business generally make flexibility of operating policies important in achieving desired profitability. We intend to evaluate continuously all conditions and risks affecting our potential activities and to react to those conditions, as we deem appropriate from time to time by engaging in businesses most profitable for us.

~~American~~In ~~Resources~~addition, ~~has~~in noorder ~~other~~to ~~relationship~~finance ~~with~~future ~~this~~development ~~customer.~~and ~~This~~operating ~~concentration~~activities, iswe amay ~~matter~~sponsor ofor ~~convenience~~manage ~~for~~public usor ~~rather~~private ~~than~~partnerships ~~necessity~~or ~~since~~other ~~these~~business ~~customers~~entities ~~are~~depending ~~active~~upon ~~buyers~~the innumber, ~~the~~size ~~areas~~and ~~where~~economic ~~our~~feasibility ~~wells~~of ~~are~~our ~~located~~generated prospects, ~~and~~the ~~prices~~level ~~between~~of ~~potential~~participation ~~customers~~of ~~vary~~industry ~~little~~partners orand ~~not~~various atother ~~all~~factors. asHowever, ~~prices~~potential ~~are~~investors ~~tied~~should tonote ~~the~~that ~~going~~we ~~market~~currently ~~rate~~do ~~for~~not ~~the~~have ~~commodity.~~in Ifplace ~~the~~any ~~Company~~definite ~~lost~~financing ~~its~~opportunities ~~largest~~and ~~customer,~~there ~~management~~can ~~believes~~be ~~the~~no ~~Company~~assurance ~~could~~that ~~quickly~~we ~~replace~~will ~~the~~be ~~lost~~able ~~customer~~to ~~with~~enter ~~other~~into ~~buyers~~such ~~paying~~financing ~~comparable~~arrangements ~~prices.~~or ~~Consequently,~~that ~~management~~if ~~does~~we ~~not~~are ~~believe~~able ~~the~~to ~~loss~~enter ofinto ~~one~~such orarrangements, ~~more~~we ofwill ~~American~~be ~~Resource’s~~able ~~major~~to ~~customers~~achieve ~~would~~any ~~have~~profitability as a ~~material~~result ~~adverse~~of ~~effect~~our ~~on its business~~operations.

~~Oil~~General ~~and Gas Reserves~~Regulations

~~The~~Both ~~following~~state ~~table~~and ~~summarizes~~federal ~~certain~~authorities ~~information~~regulate ~~regarding~~ the ~~estimated~~extraction, ~~proved~~production, transportation, and sale of oil, ~~reserves~~gas, and ~~estimated~~minerals. ~~future~~The ~~net~~executive ~~revenues~~and legislative branches of government at both the ~~Company~~state and ~~attributable~~federal tolevels ~~the~~have ~~Company's~~periodically ~~net~~proposed ~~revenue~~and ~~interests~~considered inproposals ~~the~~for ~~Lindley~~establishment ~~lease~~of incontrols ~~Montgomery~~on ~~County~~alternative fuels, ~~Kansas~~energy ~~and~~conservation, ~~the~~environmental ~~Ownbey~~protection, ~~lease~~taxation ~~located~~of incrude ~~Chautauqua~~oil ~~County~~imports, ~~Kansas~~limitation of crude oil imports, as well as various other related programs. ~~Such~~ ~~estimated~~If ~~reserves~~any ~~are~~proposals ~~based~~relating ~~upon~~to anthe ~~evaluation~~above ~~report~~subjects ~~prepared~~were byto ~~William~~be W.enacted, ~~Jackson~~we cannot predict what effect, ~~Petroleum~~if ~~Engineer~~any, implementation of ~~Plano,~~such ~~Texas. More~~proposals ~~information~~would ishave ~~located~~upon inour ~~Note~~operations. 10A tolisting of the ~~Financial~~more ~~Statements~~significant ~~attached~~current ~~hereto~~state and federal statutory authority for regulation of our current operations and business are provided below.

~~PROVED OIL RESERVES~~-4-

~~September~~Federal ~~30,~~Regulatory ~~2008~~Controls

	(Barrels)
Proved developed reserves:
Beginning of year	5,320
Revisions of previous estimates	(4,055	)
Purchases of reserves in place	440
Production	(495	)
End of year	9,320

Historically, the transportation and sale of natural gas in interstate commerce have been regulated by the Natural Gas Act of 1938 (the (“NGA”), the Natural Gas Policy Act of 1978 (the “NGPA”) and associated regulations by the Federal Energy Regulatory Commission (“FERC”). The Natural Gas Wellhead Decontrol Act (the “Decontrol Act”) removed, as of January 1, 1993, all remaining federal price controls from natural gas sold in “first sales.” The FERC’s jurisdiction over natural gas transportation was unaffected by the Decontrol Act.

~~All~~In of1992, the ~~Company’s~~FERC ~~reserves~~issued ~~are~~regulations ~~located~~requiring ~~within~~interstate pipelines to provide transportation, separate or “unbundled,” from the ~~United~~pipelines’ ~~States~~sales ~~and~~of ~~consist~~gas (Order 636). This regulation fostered increased competition within all phases of ~~crude~~the ~~oil~~natural gas industry. No ~~estimates~~In December 1992, the FERC issued Order 547, governing the issuance of ~~reserves~~blanket ~~have~~market ~~been~~sales ~~reported~~certificates to orall ~~filed~~natural ~~with~~gas ~~any~~sellers other ~~Federal~~than ~~authority~~interstate orpipelines, ~~agency~~and ~~during~~applying to non-first sales that remain subject to the ~~year~~FERC’s ~~presented~~NGA jurisdiction. These orders have fostered a competitive market for natural gas by giving natural gas purchasers access to multiple supply sources at market-driven prices. Order No. 547 increased competition in markets in which we sell our natural gas.

The ~~reserve~~natural ~~data herein represent only estimates that are based on subjective determinations. Accordingly, the estimates are expected to change, as additional information becomes available. Further, estimates of~~ gas ~~reserves,~~industry ofhistorically ~~necessity,~~has ~~are~~been ~~projections~~very ~~based~~heavily onregulated; ~~engineering and economic data. There are uncertainties inherent in the interpretation of such data~~therefore, ~~and~~ there ~~can~~is be no assurance that the ~~proved~~less ~~reserves~~stringent ~~set~~regulatory ~~forth~~approach ~~herein~~pursued ~~will~~by ~~ultimately~~the beFERC ~~produced~~and Congress will continue.

~~Proved~~Currently ~~developed~~pending ~~producing~~in ~~reserves~~the ~~are~~United ~~those~~States ~~expected~~Congress tois bea ~~recovered~~comprehensive ~~from~~energy ~~currently~~bill ~~producing zones under continuation of present operating methods. Proved developed non-producing reserves consist of (i) reserves from wells~~ which ~~have~~among ~~been~~other ~~completed~~things ~~and~~calls ~~tested~~for ~~but~~the ~~are~~reduction ~~not~~or ~~yet~~elimination ~~producing due to lack~~ of ~~market~~certain ortax ~~minor~~incentives ~~completion~~currently ~~problems~~in ~~which~~place ~~are~~for ~~expected~~domestic tooil becompanies ~~corrected,~~including ~~and~~the ~~(ii)~~tax ~~reserves~~deductions ~~currently~~permitted ~~behind~~for ~~the~~intangible ~~pipe~~costs ~~in existing wells~~ and ~~which~~depletion ~~are~~allowances. ~~expected~~In ~~to be productive due to both~~ the ~~well~~event ~~log~~such ~~characteristics~~legislation ~~and~~became ~~analogous~~law ~~production in~~ the ~~immediate~~loss ~~vicinity~~ of ~~the~~these ~~well. Proved~~tax ~~undeveloped~~benefits ~~reserves~~would ~~are~~likely ~~those~~have ~~reserves~~a ~~which~~negative ~~may~~material beeffect ~~expected~~on ~~either~~the ~~from~~finances ~~existing wells that will require major expenditure to develop or from undrilled acreage adjacent to productive units, which are reasonably certain~~ of ~~production,~~the ~~when drilled~~company.

3State Regulatory Controls

~~Impairment~~In each state where we conduct or contemplate oil and gas activities, these activities are subject to various regulations. The regulations relate to the extraction, production, transportation and sale of oil and natural gas, the issuance of drilling permits, the methods of developing new production, the spacing and operation of wells, the conservation of oil and natural gas reservoirs and other similar aspects of oil and gas operations. At the present time, no significant portion of our production has been curtailed due to reduced allowables. We know of no proposed regulation that will significantly impede our operations.

~~American~~Environmental Resources has adopted SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” and periodically evaluates, using both independent appraisals and management projections and projected undiscounted cash flows, the carrying value of its long-lived assets and proved oil and gas properties whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In addition, long-lived assets to be disposed of are reported at the lower of carrying value or fair value less cost to sell. Fair values used for impairment identification are based on undiscounted cash flow amounts determined by the reserve reports. During the fiscal year ended September 30, 2007, the Company did not identify any properties requiring impairment. Unproved oil and gas properties are periodically assessed for impairment following the guidance provided in SFAS No. 19, “Financial Accounting and Reporting by Oil and Gas Producing Companies”. The Company also reviewed the Montgomery County Pipeline regarding a possible impairment since it has not yet been put into operation. Based on management’s estimates of the start-up costs to bring the pipeline into operation and the fact that another competing pipeline has been constructed in the immediate area, the Company deemed that the pipeline was 100% impaired.Regulations

~~Oil~~Our extraction, production and ~~Gas~~drilling ~~Property~~operations are subject to environmental protection regulations established by federal, state, and ~~Equipment~~local agencies. To the best of our knowledge, we believe that we are in compliance with the applicable environmental regulations established by the agencies with jurisdiction over our operations. We are acutely aware that the applicable environmental regulations currently in effect could have a material detrimental effect upon our earnings, capital expenditures, or prospects for profitability. Our competitors are subject to the same regulations and therefore, the existence of such regulations does not appear to have any material effect upon our position with respect to our competitors. Revenues from oil and gas production are subject to taxation by the state in which the production occurred. These high percentage state taxes can have a significant impact upon the economic viability of marginal wells that we may produce and require plugging of wells sooner than would be necessary in a less arduous taxing environment.

The Company uses the successful efforts method of accounting for its oil and gas producing activities, which are located in Kansas. Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells that find proved reserves, and costs to drill and equip development wells are capitalized. Costs to drill exploratory wells that do not find proved reserves and geological and geophysical costs and costs of carrying and retaining undeveloped properties are expensed.Employees

~~Unproved~~We ~~oil~~currently ~~and~~employ ~~gas~~two ~~properties~~full ~~that~~time ~~are individually significant are periodically assessed for impairment of value,~~ and aone ~~loss~~part ~~is recognized at the~~ time ~~of impairment by providing an impairment allowance~~employees. Other unproved properties are amortized based on American Resource’s experience of successful drilling and average holding period. Capitalized costs of producing oil and gas properties, after considering estimated residual salvage values, are depreciated and depleted by the unit of production method. Support equipment and other property and equipment are depreciated over their estimated useful lives.

On the sale or retirement of a complete or partial unit of a proved property, the cost and related accumulated depreciation, depletion, and amortization are eliminated from the property accounts, and the resultant gain or loss is recognized.Offices

OnWe ~~the~~now ~~sale~~maintain ofour ancorporate ~~entire~~offices ~~interest~~at in1301 anCuster ~~unproved~~Road ~~property~~#352-1009, ~~for~~Plano, ~~cash~~TX ~~or cash equivalent~~75075, ~~gain~~and orhave ~~loss~~vacated onour ~~the~~former ~~sale~~headquarters isfor ~~recognized,~~which ~~taking~~we ~~into~~owe ~~consideration~~a ~~the~~monthly ~~amount~~base rental of ~~any~~$2,260. ~~recorded~~Our ~~impairment~~lease ifruns ~~the~~from ~~property~~February 1, ~~had~~2009 ~~been~~through ~~assessed~~January ~~individually.~~31, If2012 at a ~~partial~~cost ~~interest~~of inapproximately an$76,800. ~~unproved~~As ~~property~~of ~~is sold~~September 30, 2009 the ~~amount~~Company’s ~~received~~continuing isobligation ~~treated~~under ~~as a reduction of~~ the ~~cost~~base oflease ~~the~~is ~~interest~~approximately ~~retained~~$58,720.

~~Accounting for Asset Retirement Obligations~~-5-

~~American Resources accounts for the asset retirement obligations under the provisions of FASB No~~Item 1A. ~~143,~~Business which requires the fair value of the liability for an asset retirement obligation be recognized in the period in which it is incurred. When the liability is initially recorded, the offset is capitalized by increasing the carrying amount of the long-lived asset. Over time, the liability is accreted to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. To settle the liability, the obligation is paid, and to the extent there is a difference between the liability and the amount of cash paid, a gain or loss upon settlement is recognized. No accretion expense is included in “Depreciation, depletion, and amortization” in the accompanying statement of operations for the year ended September 30, 2007 since the Company’s estimates reflect that the remaining salvage value of recoverable property exceeds the liability of the potential retirement obligations. The Company estimates that due to the shallow depths of the wells involved the average “plugging” or abandonment cost per well will average just under $1,500 per well while the salvage value per well should average just over $2,300 per well.Risks

4We may not be able to continue as a going concern or fund our existing capital needs.

Our auditors have included an explanatory paragraph in their audit opinion with respect to our consolidated financial statements for the fiscal year ended September 30, 2009. The paragraph states that our recurring losses from operations and resulting continued dependence on external financing raise substantial doubts about our ability to continue as a going concern. Our existing and anticipated capital needs are significant. We believe our existing financing arrangements and estimated operating cash flows will not be sufficient to fund our operations and working capital needs for the next twelve months and there can be no assurance that we will be able to fund our existing capital needs under our existing credit facilities or otherwise secure additional funding, if necessary. In addition, changes in our operating plans, the acceleration or modification of our existing expansion plans, lower than anticipated revenues, increased expenses, potential acquisitions, or other events may cause us to seek additional financing sooner than anticipated, prevent us from achieving the goals of our business plan or expansion strategy, or prevent our newly acquired businesses, if any, from operating profitably. If we are unable to fund our existing capital needs under our existing credit facilities, or are otherwise unable to secure additional equity financing, if necessary, our business could be materially adversely affected. See Management’s Discussion and Analysis of Financial Condition and Results of Operation—Liquidity and Capital Resources.

Our future success depends upon our ability to find, develop and acquire additional oil and gas reserves that are economically recoverable .

The rate of production from oil and natural gas properties declines as reserves are depleted. As a result, we must locate and develop or acquire new oil and gas reserves to replace those being depleted by production and those that have been sold. We must do this even during periods of low oil and gas prices when it is difficult to raise the capital necessary to finance activities. Without successful exploration or acquisition activities, our reserves and revenues will decline. We may not be able to find and develop or acquire additional reserves at an acceptable cost or have necessary financing for these activities.

Oil and gas drilling is a high-risk activity .

Our future success will depend on the success of our drilling programs. In addition to the numerous operating risks described in more detail below, these activities involve the risk that no commercially productive oil or gas reservoirs will be discovered. In addition, we are often uncertain as to the future cost or timing of drilling, completing and producing wells. Furthermore, our drilling operations may be curtailed, delayed or canceled as a result of a variety of factors, including, but not limited to, the following:

	–		unexpected drilling conditions;

	–		pressure or irregularities in formations;

	–		equipment failures or accidents;

	–		adverse weather conditions;

	–		inability to comply with governmental requirements; and

	–		shortage or delays in the availability of drilling rigs and the delivery of equipment.

If we experience any of these problems, our ability to conduct operations could be adversely affected.

-6-

Factors beyond our control affect our ability to market oil and gas.

Our ability to market oil and gas from our wells depends upon numerous factors beyond our control. These factors include, but are not limited to, the following:

	–		the level of domestic production and imports of oil and gas;

	–		the proximity of gas production to gas pipelines;

	–		the availability of pipeline capacity;

	–		the demand for oil and gas by utilities and other end users;

	–		the availability of alternate fuel sources;

	–		the effect of weather;

	–		state and federal regulation of oil and gas marketing; and

	–		federal regulation of gas sold or transported in interstate commerce.

If these factors were to change dramatically, our ability to market oil and gas or obtain favorable prices for our oil and gas could be adversely affected.

The marketability of our production may be dependent upon transportation facilities over which we have no control.

The marketability of our production depends in part upon the availability, proximity, and capacity of pipelines, natural gas gathering systems and processing facilities. Any significant change in market factors affecting these infrastructure facilities could harm our business. We deliver some of our oil and natural gas through gathering systems and pipelines that we do not own. These facilities may not be available to us in the future.

Oil and natural gas prices are volatile. A substantial decrease in oil and natural gas prices could adversely affect our financial results.

Our future financial condition, results of operations and the carrying value of our oil and natural gas properties depend primarily upon the prices we receive for our oil and natural gas production. Oil and natural gas prices historically have been volatile and likely will continue to be volatile in the future, especially given world geopolitical conditions. Our cash flow from operations is highly dependent on the prices that we receive for oil and natural gas. This price volatility also affects the amount of our cash flow available for capital expenditures and our ability to borrow money or raise additional capital. The prices for oil and natural gas are subject to a variety of additional factors that are beyond our control. These factors include:

	–		the level of consumer demand for oil and natural gas;

	–		the domestic and foreign supply of oil and natural gas;

	–		the ability of the members of the Organization of Petroleum Exporting Countries to agree to and maintain oil price and production controls;

	–		the price of foreign oil and natural gas;

	–		domestic governmental regulations and taxes;

	–		the price and availability of alternative fuel sources;

	–		weather conditions, including hurricanes and tropical storms in and around the Gulf of Mexico;

	–		market uncertainty;

	–		political conditions in oil and natural gas producing regions, including the Middle East; and

			world wide economic conditions.

-7-

These factors and the volatility of the energy markets generally make it extremely difficult to predict future oil and natural gas price movements with any certainty. Also, oil and natural gas prices do not necessarily move in tandem. Declines in oil and natural gas prices would not only reduce revenue, but could reduce the amount of oil and natural gas that we can produce economically and, as a result, could have a material adverse effect upon our financial condition, results of operations, oil and natural gas reserves and the carrying values of our oil and natural gas properties. If the oil and natural gas industry experiences significant price declines, we may, among other things, be unable to meet our financial obligations or make planned expenditures.

Since the end of 1998, oil prices have gone from near historic low prices to historic highs. At the end of 1998, NYMEX oil prices were at historic lows of approximately $11.00 per Bbl, but have generally increased since that time, albeit with fluctuations. For 2009, NYMEX oil prices averaged $62.00 per Bbl. For 2008 oil prices were high throughout the year, averaging approximately $90.00 per Bbl. While we attempt to obtain the best price for our crude in our marketing efforts, we cannot control these market price swings and are subject to the market volatility for this type of oil. These price differentials relative to NYMEX prices can have as much of an impact on our profitability as does the volatility in the NYMEX oil prices.

Natural gas prices have also experienced volatility during the last few years. During 1999, natural gas prices averaged approximately $2.35 per Mcf and, like crude oil, have generally trended upward since that time, although with significant fluctuations along the way. During 2009, NYMEX natural gas prices averaged $4.15 per MMBtu and in 2008, averaged $8.17 per MMBtu.

We may not be able to replace our reserves or generate cash flows if we are unable to raise capital.

We make, and will continue to make, substantial capital expenditures for the acquisition and production of oil and gas reserves. Historically, we have financed these expenditures primarily with cash generated by operations and proceeds from bank borrowings and equity financing. If our revenues or borrowing base decrease as a result of lower oil and gas prices, operating difficulties or decline in reserves, we may have limited ability to expend the capital necessary to undertake or complete future drilling programs. Additional debt or equity financing or cash generated by operations may not be available to meet these requirements.

We face strong competition from other energy companies that may negatively affect our ability to carry on operations.

We operate in the highly competitive areas of oil and gas exploration, development and production. Factors that affect our ability to successfully compete in the marketplace include, but are not limited to, the following:

	–		the availability of funds and information relating to a property;

	–		the standards established by us for the minimum projected return on investment;

	–		the availability of alternate fuel sources; and

	–		the intermediate transportation of gas.

Our competitors include major integrated oil companies, substantial independent energy companies, affiliates of major interstate and intrastate pipelines and national and local gas gatherers. Many of these competitors possess greater financial and other resources than we do.

The inability to control other associated entities could adversely affect our business.

To the extent that we do not operate all of our properties, our success depends in part upon operations on certain properties in which we may have an interest along with other business entities. Because we have no control over such entities, we are able to neither direct their operations, nor ensure that their operations on our behalf will be completed in a timely and efficient manner. Any delay in such business entities’ operations could adversely affect our operations.

-8-

There are substantial risks in acquiring producing properties.

We constantly evaluate opportunities to acquire oil and natural gas properties and frequently engage in bidding and negotiating for these acquisitions. If successful in this process, we may alter or increase our capitalization through the issuance of additional debt or equity securities, the sale of production payments or other measures. Any change in capitalization affects our risk profile.

A change in capitalization, however, is not the only way acquisitions affect our risk profile. Acquisitions may alter the nature of our business. This could occur when the character of acquired properties is substantially different from our existing properties in terms of operating or geologic characteristics.

Operating hazards may adversely affect our ability to conduct business . Our operations are subject to risks inherent in the oil and gas industry, including but not limited to the following:

	–		blowouts;

	–		cratering;

	–		explosions;

	–		uncontrollable flows of oil, gas or well fluids;

	–		fires;

	–		pollution; and

	–		other environmental risks.

These risks could result in substantial losses to us from injury and loss of life, damage to and destruction of property and equipment, pollution and other environmental damage and suspension of operations. Governmental regulations may impose liability for pollution damage or result in the interruption or termination of operations.

Losses and liabilities from uninsured or underinsured drilling and operating activities could have a material adverse effect on our financial condition and operations.

Although we maintain several types of insurance to cover our operations, we may not be able to maintain adequate insurance in the future at rates we consider reasonable, or losses may exceed the maximum limits under our insurance policies. If a significant event that is not fully insured or indemnified occurs, it could materially affect our financial condition and results of operations.

Compliance with environmental and other government regulations could be costly and could negatively impact production.

Our operations are subject to numerous laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. Without limiting the generality of the foregoing, these laws and regulations may:

–

require the acquisition of a permit before drilling commences;

	–		limit or prohibit drilling activities on certain lands lying within wilderness, wetlands, and other protected areas;

	–		require remedial measures to mitigate pollution from former operations, such as plugging abandoned wells; and

–

impose substantial liabilities for pollution resulting from our operations.

-9-

The recent trend toward stricter standards in environmental legislation and regulation is likely to continue. The enactment of stricter legislation or the adoption of stricter regulation could have a significant impact on our operating costs, as well as on the oil and gas industry in general. Currently pending in Congress is a comprehensive energy bill which among other things calls for the reduction or elimination of certain tax incentives currently in place for domestic oil companies including the tax deductions permitted for intangible costs and depletion allowances. In the event such legislation became law the loss of these tax benefits would likely have a negative material effect on the finances of the company.

Our operations could result in liability for personal injuries, property damage, oil spills, discharge of hazardous materials, remediation and clean-up costs and other environmental damages. We could also be liable for environmental damages caused by previous property owners. As a result, substantial liabilities to third parties or governmental entities may be incurred which could have a material adverse effect on our financial condition and results of operations. We maintain insurance coverage for our operations, but we do not believe that insurance coverage for environmental damages that occur over time or complete coverage for sudden and accidental environmental damages is available at a reasonable cost. Accordingly, we may be subject to liability or may lose the privilege to continue exploration or production activities upon substantial portions of our properties if certain environmental damages occur.

You should not place undue reliance on reserve information because reserve information represents estimates .

While estimates of our and gas reserves, and future net cash flows attributable to those reserves, were prepared by independent petroleum engineers, there are numerous uncertainties inherent in estimating quantities of proved reserves and cash flows from such reserves, including factors beyond our control and the control of engineers. Reserve engineering is a subjective process of estimating underground accumulations of oil and gas that cannot be measured in an exact manner. The accuracy of an estimate of quantities of reserves, or of cash flows attributable to these reserves, is a function of many factors, including but not limited to, the following:

	–		the available data;

	–		assumptions regarding future oil and gas prices;

	–		expenditures for future development and exploitation activities; and

	–		engineering and geological interpretation and judgment.

Reserves and future cash flows may also be subject to material downward or upward revisions based upon production history, development and exploitation activities and oil and gas prices. Actual future production, revenue, taxes, development expenditures, operating expenses, quantities of recoverable reserves and value of cash flows from those reserves may vary significantly from the estimates. In addition, reserve engineers may make different estimates of reserves and cash flows based on the same available data. For the reserve calculations, oil was converted to gas equivalent at six Mcf of gas for one Bbl of oil. This ratio approximates the energy equivalency of gas to oil on a Btu basis. However, it may not represent the relative prices received from the sale of our oil and gas production.

The estimated quantities of proved reserves and the discounted present value of future net cash flows attributable to those reserves included in this document were prepared by independent petroleum engineers in accordance with the rules of the SFAS69 and the SEC. These estimates are not intended to represent the fair market value of our reserves.

Loss of executive officers or other key employees could adversely affect our business.

Our success is dependent upon the continued services and skills of our current executive management. The loss of services of any of these key personnel could have a negative impact on our business because of such personnel’s skills and industry experience and the difficulty of promptly finding qualified replacement personnel.

-10-

Acquisition of entire businesses may be a component of our growth strategy; our failure to complete future acquisitions successfully could reduce the earnings and slow our growth.

While our business strategy does not currently contemplate the acquisition of entire businesses, it is possible that we might acquire entire businesses in the future. Potential risks involved in the acquisition of such businesses include the inability to continue to identify business entities for acquisition or the inability to make acquisitions on terms that we consider economically acceptable. Furthermore, there is intense competition for acquisition opportunities in our industry. Competition for acquisitions may increase the cost of, or cause us to refrain from, completing acquisitions. Our strategy of completing acquisitions would be dependent upon, among other things, our ability to obtain debt and equity financing and, in some cases, regulatory approvals. Our ability to pursue our growth strategy may be hindered if we are not able to obtain financing or regulatory approvals. Our ability to grow through acquisitions and manage growth would require us to continue to invest in operational, financial and management information systems and to attract, retain, motivate and effectively manage our employees. The inability to effectively manage the integration of acquisitions could reduce our focus on subsequent acquisitions and current operations, which, in turn, could negatively impact our earnings and growth. Our financial position and results of operation may fluctuate significantly from period to period, based on whether or not significant acquisitions are completed in particular periods.

Risks Related to Our Common Stock

We may issue additional shares of Common Stock.

Pursuant to our certificate of incorporation, our board of directors has the authority to issue additional series of common stock and to determine the rights and restrictions of shares of those series without the approval of our stockholders. The rights of the holders of the current series of common stock may be junior to the rights of common stock that may be issued in the future.

There may be future dilution of our Common Stock.

To the extent options to purchase common stock are exercised, holders of our common stock will be diluted. If available funds and cash generated from our operations are insufficient to satisfy our needs, we may be compelled to sell additional equity or convertible debt securities. The sale of additional equity or convertible debt securities could result in additional dilution to our stockholders.

Our management controls a significant percentage of our outstanding common stock and their interests may conflict with those of our stockholders .

Our executive officers and their affiliates beneficially own a substantial percentage of our outstanding common stock. This concentration of ownership could have the effect of delaying or preventing a change in control of the company, or otherwise discouraging a potential acquirer from attempting to obtain control of the company. This could have a material adverse effect on the market price of the common stock or prevent our stockholders from realizing a premium over the then prevailing market prices for their shares of common stock.

Sales of substantial amounts of our common stock may adversely affect our stock price and make future offerings to raise more capital difficult.

Sales of a large number of shares of our common stock in the market or the perception that sales may occur could adversely affect the trading price of our common stock. We may issue restricted securities or register additional shares of common stock in the future for our use in connection with future acquisitions. Except for volume limitations and certain other regulatory requirements applicable to affiliates, such shares may be freely tradable unless we contractually restrict their resale. The availability for sale, or sale, of the shares of common stock eligible for future sale could adversely affect the market price of our common stock.

Item 1B. Unresolved Staff Comments.

As of September 30, 2009, there are no unresolved comments from the staff of the Securities and Exchange Commission.

Item 2. Properties.

General . Following is information concerning production from our oil and gas wells, productive well counts and both producing and undeveloped acreage----------

Reserves Reported To Other Agencies . We are not required and do not file any estimates of total, proved net oil or gas reserves with reports to any federal authority or agency.

-11-

Properties . The following is a breakdown of our properties:


	Oil			Gas
	(BBL)			(MCF)
Proved Reserves November 30, 2007		6,420			0
Revisions to previous estimates		(917	)		0
Purchases		—			—
Production		(183	)		---
Sales, transfers and retirements					—

Proved Reserves September 30, 2008		5,320
Revisions to previous estimates		4,055
Purchases		440			—
Production		(495	)
Sales, transfers and retirements		4,280			—

Proved Reserves September 30, 2009		9,320			---

The following information pertains to our properties as of September 30, 2009:


	Gross		Net
	Producing		Producing
	Well		Well
Name of Field or Well	Count		Count
Ownbey Lease, 25% Working Interest		2

Ownbey Lease, 100% Working Interest		2

Productive Wells and Acreage

Total

Net

Gross

Total Net

Total Gross

Productive

Total Gross

Productive

Developed

Geographic Area

Oil Wells

Gas Wells

Acres

Chautauqua, KS

224

83.14

—

---

-12-

Notes:

1.		Total Gross Wells are those wells in which the Company holds a working or overriding interest in as of Septemberr 30, 2009.

2.		Net Productive Wells was calculated by multiplying the working or overriding interest held by the Company in each of the 4 Gross Wells and adding the resulting products.

3.		Total Gross Developed Acres is equal to the total surface acres of the properties in which the Company holds a working or overriding interest.

4.		Net Developed Acres is equal to the Total Gross Developed Acres multiplied by the percentage of the total working or overriding interest held by the Company in the respective properties.

5.		All acreage in which we hold a working interest as of September 30, 2009 have or had existing wells located thereon; thus all acreage leased by the Company may be accurately classified as developed.

6.		Acreage that has existing wells and may be classified as developed may also have additional development potential based on the number of producible zones beneath the surface acreage. A more comprehensive study of all properties currently leased by us would be required to determine precise developmental potential.

Oil and Gas Partnership Interests

None, as of September 30, 2009

Item 3. Legal Proceedings

~~As of September 16, 2010 there were no legal proceedings to which we were a party, and no litigation is known to be pending.~~None

~~Item 4. Submission of Matters to a Vote of Securities Holders~~-13-

On December 21, 2006 the Company held a special shareholders meeting at which the shareholders approved a resolution authorizing the Board of Directors to evaluate the necessity of a reverse stock split and also to implement a reverse stock split if they determine it to be necessary. The shareholders also ratified the actions of the officers and directors since the last special shareholders meeting on December 17, 2001.

PART II

Item 5. Market ~~for~~For Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities.

Prices for our common stock are currently quoted in the over-the-counter Pink Sheets maintained by the National Quotation Bureau (aNQB) owned Pink Sheet OTC Market, ~~Information~~Inc. and our ticker symbol is ARUR.PK. Prices for our stock were approved for quotation on the over-the-counter on January 27, 2001.

Based on information available directly from the Pink Sheets data center, share prices have ranged from an annual low of $0.016 per share to a high of $0.28 per share. Our shares have been trading sporadically, in the Pink Sheet market since late August of 2003. Our shares are traded under the symbol ARUR.


QUARTER	LOW BID		HIGH BID
Quarter ending December 31, 2008	$	0.06	$	0.06
Quarter ending March 31, 2009	$	0.08	$	0.08
Quarter ending June 30, 2009	$	0.06	$	0.06
Quarter ending September 30, 2009	$	0.12	$	0.12

QUARTER	LOW BID		HIGH BID
Quarter ending December 31, 2007	$	0.19	$	0.19
Quarter ending March 31, 2008	$	0.10	$	0.10
Quarter ending June 30, 2008	$	0.06	$	0.06
Quarter ending September 30, 2008	$	0.02	$	0.02

AsThe offollowing ~~September~~table ~~30,~~shows ~~2008,~~the ~~certain~~high ~~options~~and ~~have~~low ~~been~~bid ~~granted~~information tofor ~~investors~~our ascommon ~~follows:~~stock ~~100,000~~for ~~shares~~each atquarter anduring ~~exercise price of $0.10 per share expiring in January of 2012; 100,000 shares at an exercise price of $0.15 per share expiring in January of 2012; 160,000 shares with an exercise price of $0.15625~~ which ~~expired~~prices infor ~~April~~our ofcommon ~~2008,~~stock ~~and~~have ~~281,250~~been ~~shares with an exercise price of $0~~quoted.~~08 per share expiring in May of 2009.~~

~~(b) Holders~~The above information was obtained from the Pink Sheet OTC Market, Inc. web site. Because these are over-the-counter market quotations, these quotations reflect inter-dealer prices, without retail mark-up, markdown or commissions and may not represent actual transactions. We have 2943 shareholders of record for our common stock as of September 30, 2009.

~~As of September 30, 2008, there were approximately 1,388 stockholders of record of our common stock~~Item 6. ~~Additional~~Selected ~~shareholders~~Financial ~~hold stock in street names; the number of street name holders is not available to us.~~Data

~~(c) Dividends~~Not applicable as we are a smaller reporting company.

OnItem 7. ~~November 1, 2007 the Company~~Management’s ~~Board~~Discussion ofand ~~Directors~~Analysis ~~elected to declare a 10% stock dividend effective for shareholders~~ of ~~record~~Financial asCondition ~~of November 30, 2007. The Company has not declared or paid cash dividends in the past,~~ and ~~does~~Results ~~not~~of ~~anticipate doing so in the immediate future~~Operations. ~~(See subsequent events)~~

~~Item 6.~~ Management'’s Discussion and Analysis orOf ~~Plan~~Financial ofCondition and Results Of Operations for the Twelve Months Ended September 30, 2009 And 2008.

InCautionary fiscal year 2008 the Company participated in the drilling of 6 wells, 4 of which were located on the Lindley lease in Montgomery County, Kansas and two of which were on the Linn lease also located in Montgomery County, Kansas. The two wells on the Linn lease are yet to be completed.Statement

InStatements ~~fiscal~~in ~~year~~this ~~2007~~report ~~the~~which ~~Company~~are ~~participated~~not inpurely historical facts, including statements regarding the ~~drilling~~company’s ofanticipations, ~~several~~beliefs, ~~wells~~expectations, ~~receiving~~hopes, aintentions ~~“carried~~or ~~working~~strategies ~~interest”~~for inthe ~~these~~future, ~~wells~~may onbe forward-looking statements within the ~~Ownbey/Troyer~~meaning ~~lease~~of inSection 21E ~~Chautauqua~~of ~~County~~the Securities Act of 1934, ~~Kansas~~as amended. ~~These~~ ~~wells~~All ~~began~~forward-looking ~~producing~~statements ~~late~~ in ~~the~~this ~~fiscal~~report ~~year~~are ~~and~~based ~~the~~upon ~~operator~~information ~~was~~available ~~continuing~~ to ~~adjust~~us on the ~~production~~date ~~methods~~of tothe ~~maximize~~report. ~~daily~~Any ~~production~~forward-looking atstatements ~~year-end. The~~involve ~~Company~~risks ~~plans~~and touncertainties ~~participate~~that incould ~~the~~cause ~~additional~~actual ~~drilling~~results ~~and~~or ~~re-working~~events ofto ~~several~~differ ~~wells~~materially onfrom ~~our~~events ~~leases~~or results described in ~~southeast~~the ~~Kansas~~forward-looking ~~during~~statements. ~~the~~Readers ~~upcoming~~are ~~fiscal~~cautioned ~~year~~not to place undue reliance on these forward-looking statements.

5-14-

~~During~~Recent the fiscal year ended September 30, 2006 the Company began operating the Lindley lease located in Montgomery County, Kansas. While production has been minimal, the Company believes that additional development work on the lease can be advantageous. The Company also entered into farmout agreements on leases located in Jefferson County, Kansas and Chautauqua County, Kansas. At year-end a test well had been drilled on the Jefferson County lease (the Noll lease) and production casing has been set, and further completion procedures are planned. The Noll lease is shown on the balance sheet and in the oil and gas producing section of this document as “unproved oil and gas properties”.Developments

~~The~~Going ~~Company~~Concern continues to seek additional working capital which will allow the Company to retain larger interests in the properties. Until we acquire this additional working capital, the Company will be forced to operate using the farmout method which results in a lower working and ~~net~~Liquidity ~~revenue interest to the Company.~~Problems

~~During~~Our ~~the~~auditors ~~current~~have ~~fiscal~~included ~~year~~an ~~the~~explanatory ~~Company~~paragraph ~~continued~~in totheir ~~raise~~audit ~~needed~~opinion ~~funds~~with ~~through~~respect ~~the~~to ~~sale~~our ofconsolidated ~~common~~financial ~~stock~~statements toat ~~existing~~September 30, ~~shareholders~~2009. ~~During~~ ~~the~~The ~~year~~paragraph westates ~~sold~~that ~~1,222,500~~our ~~shares~~recurring ~~and~~losses ~~received~~from ~~$95,000~~operations inand ~~proceeds~~resulting ~~from~~continued ~~these~~dependence ~~sales. In~~on ~~order~~access to ~~continue~~external ~~operations~~financing ~~the~~raise ~~Company~~substantial ~~will~~doubts ~~need~~about our ability to continue as a going concern. Furthermore, the factors leading to ~~raise~~and ~~additional~~the ~~funds~~existence ~~from~~of ~~common~~the ~~stock~~explanatory ~~sales~~paragraph ormay ~~other~~adversely ~~sources~~affect our relationship with customers and suppliers and have an adverse effect on our ability to obtain financing.

AsWe ~~shown~~do innot ~~the~~have ~~accompanying~~sufficient ~~financial~~working ~~statements,~~capital ~~American~~to ~~Resources~~sustain ~~incurred~~our ~~recurring~~operations. ~~net~~We ~~losses~~have ofbeen ~~$459,680~~unable ~~and~~to ~~$401,267~~generate insufficient ~~years~~revenues ~~ended~~to ~~September~~sustain ~~30,~~our ~~2008~~operations. ~~and~~We ~~2007,~~will ~~respectively,~~have ~~has~~to anobtain ~~accumulated~~funds ~~deficit~~to ofmeet $4our cash requirements through business alliances,~~995,492~~ ~~and~~such ~~has~~as ~~minimal~~strategic ~~working~~or ~~capital.~~financial ~~These~~transactions ~~conditions~~with ~~raise~~third ~~substantial~~parties, ~~doubt~~the assale toof ~~American~~securities ~~Resource’s~~or ~~ability~~other financing arrangements, or we may be required to ~~continue~~curtail asour operations, seek a ~~going~~merger ~~concern~~partner, or seek protection under federal bankruptcy laws. ~~Management~~Any isof ~~trying~~the toforegoing ~~raise~~may ~~additional~~be ~~capital~~on ~~through~~terms ~~sales~~that ofare ~~common~~unfavorable ~~stock.~~to ~~The~~us ~~financial~~or ~~statements~~disadvantageous doto ~~not~~existing ~~include~~stockholders. ~~any~~In ~~adjustments~~addition, ~~that~~no ~~might~~assurance may be ~~necessary~~given ifthat ~~American~~we ~~Resources~~will isbe ~~unable~~successful toin ~~continue~~raising asadditional afunds ~~going~~or ~~concern~~entering into business alliances.

InAsset October of 2007 the Company placed an additional $10,000 in long-term debt with a maturity of three years bearing interest at ten per cent per annum. These notes are convertible into shares of the Company’s stock which collateralizes the notes. The Company continues to seek these and other sources of financing. As of September 30, 2007 the Company placed $50,000 in long-term debt under the same terms.Sales

Subsequent Events

In December of 2008 the Company sold 250,000 of its common shares for $10,000 to an investor and 6,250,000 shares were issued for consulting services valued at $218,750.

In January of 2009 the Company entered into a lease agreement with Carlton Field, II, LP to lease the current space in Dallas, Texas for a term of three years at a rate of $2,000 per month. The lease calls for certain escalations due to utility costs and other small items.

In March of 2009 the Company issued 500,000 shares to Ameribras valued at $40,000 for an interest in that company.

In May of 2009 the Company entered into a note agreement which generated $25,000 cash to the Company with a repayment date of one year from the execution date requiring the repayment of $50,000 to the lender. Included in the note agreement was the issuance of warrants for the purchase of 500,000 shares of the Company’s common stock at $0.10 per share, expiring on the fifth anniversary of the grant. This note was satisfied in May of 2010 by the issuance of 500,000 shares of the Company’s common stock.

In June of 2009 the Company issued 500,000 shares to Pat Wilson valued at $11,000 for consulting services, and 250,000 shares valued at $5,500 to ThorGeoTrack for an interest in that company. Also in June of 2009 the Company entered into an agreement with an investor agreeing to pay $40,000 in one year in return for the investment of $25,000. This note was satisfied in June of 2010 by the issuance of 500,000 shares of the Company’s common stock. The investor received a one year option to acquire 500,000 shares of the Company’s common stock for a payment of $0.10 per share.

In July of 2009 the Company issued 750,000 shares to Brasil Asset Management for an interest in that company, and an additional 750,000 shares to AmeriBras increasing the Company’s interest in AmeriBras. Each of these issuances were valued at $52,500.

In August of 2009 the Company issued 971,469 shares to Sabine Operating Services in payment of $68,003 in payables to Sabine. The Company also issued 500,000 shares to AmeriBras valued at $40,000 increasing the Company’s interest in that company. The Company issued 250,000 shares to Hilton Research, Inc. valued at $20,000 for consulting services. The Company also issued 1,500,000 shares valued at $75,000 for acquisition of an interest in the Ownbey Nueces wells.

In September of 2009 the Company issued 16,667 shares to an investor for $1,000 cash.

In September of 2009 the Company wrote off the Noll lease as a dry hole.

In October of 2009 the Company issued 250,000 shares to Scott Duperow valued at $15,000 for consulting services.

In October of 2009 the Company entered into an agreement with an investor agreeing to pay $30,000 in one year in return for the investment of $10,000. The investor received a one year option to acquire 500,000 shares of the Company’s common stock for a payment of $0.10 per share.

On October 7, 2009 the Company entered into a management and consulting agreement with SkyberCorp do Brasil to provide management and consulting services for a period of twenty four months. Compensation to the Company is set at $450,000 per calendar quarter beginning January 1, 2009, payable on January 1, 2011, unless paid earlier.

On October 23, 2009 the Company entered into a management and consulting agreement with Brasil Asset Management Projectos Limitada to provide management and consulting services for a period of twenty four months. Compensation to the Company is set at $300,000 per calendar quarter beginning January 1, 2009, payable on January 1, 2011, unless paid earlier.

In November of 2009 the Company issued 12,500 shares valued at $1,000 for payment of interest on long term debt.

In November of 2009 the Company entered into an agreement with an investor agreeing to pay $128,000 in one year in return for the investment of $47,500. The investor received a one year option to acquire 1,000,000 shares of the Company’s common stock for a payment of $0.10 per share.

In December of 2009 the Company issued 200,000 shares valued at $14,000 to Princeton Research of Nevada for consulting services.

In December of 2009 the Company entered into an agreement with an investor agreeing to pay $34,000 in one year in return for the investment of $47,500. The investor received a one year option to acquire 625,000 shares of the Company’s common stock for a payment of $0.10 per share.

In January of 2010 the Company issued 750,000 shares valued at $37,500 to Brasil Asset Management increasing the Company’s interest in that company. The Company issued 500,000 shares to Robert Guzman for cash of $15,000. The Company issued 500,000 shares to Pat Wilson valued at $17,500 for consulting services. The Company issued 31,250 shares valued at $2,500 for payment of interest on long term debt.

In January of 2010 the Company entered into an agreement with an investor agreeing to pay $50,000 in one year in return for the investment of $20,000. The investor received a one year option to acquire 500,000 shares of the Company’s common stock for a payment of $0.10 per share.

On January 1, 2010 the Company entered into a contract for revenue with Brazil Asset Management, Inc. calling for the Company to assist Brazil Asset Management, Inc. in obtaining Brazilian tax credits. The contract calls for a payment to the Company of $1,000,000 on or before January 30, 2011.

In February of 2010 the Company issued 200,000 shares valued at $6,000 to Robert Guzman for consulting services and 66,667 shares to Mr. Guzman for $2,000 cash. The Company issued 200,000 shares valued at $8,182.20 to Scott Duperow for consulting services. The Company issued 750,000 shares valued at $30,000 to Hugh Fowler for administrative services; 750,000 shares valued at $30,000 to M. H. McIlvain for accounting services; 1,500,000 shares valued at $60,000 to B. Fred Oden, III for management services; and 1,000,000 shares valued at $40,000 to MJM Ventures LTD and CD Capital Group for consulting services.

In February of 2010 the Company entered into an agreement with an investor agreeing to pay $125,000 in one year in return for the investment of $52,000. The investor received a one year option to acquire 1,583,334 shares of the Company’s common stock for a payment of $0.10 per share.

In March of 2010 the Company entered into an agreement with an investor agreeing to pay $40,000 in one year in return for the investment of $15,000. The investor received a one year option to acquire 400,000 shares of the Company’s common stock for a payment of $0.10 per share.

In April of 2010 the Company issued 100,000 shares to an investor for $3,000 cash. The Company issued 75,000 shares valued at $3,150 to Scott Duperow for consulting services. The Company issued 450,000 shares valued at $22,250 for an additional interest in the Ownbey lease.

In May of 2010 the Company issued 596,667 shares to investors for $26,500 cash. As noted above the Company issued 500,000 shares to satisfy $50,000 in long term debt. The Company issued 10,000,000 shares valued at $400,000 to B. Fred Oden, III for management services; 7,500,000 shares valued at $300,000 to Pat Wilson for consulting services: 5,000,000 shares valued at $200,000 to Eric Oden for field services: 1,250,000 valued at $50,000 to M. H. McIlvain for accounting and management services; and 1,250,000 shares valued at $50,000 to Hugh Fowler for administrative services.

In May of 2010 the Company entered into an agreement with an investor agreeing to pay $25,000 in one year in return for the investment of $10,000. The investor received a one year option to acquire 250,000 shares of the Company’s common stock for a payment of $0.10 per share.

In June of 2010 the Company issued 220,000 shares to investors for cash of $11,000. The Company issued 187,500 shares valued at $4,000 as an offset to a payable to Sabine Operating Services. The Company issued 500,000 shares to satisfy $40,000 in long term debt. The Company issued 350,000 shares valued at $63,000 to Richard Severson for consulting services.

In June of 2010 the Company entered into an agreement with an investor agreeing to pay $62,500 in one year in return for the investment of $25,000. The investor received a one year option to acquire 625,000 shares of the Company’s common stock for a payment of $0.10 per share.

In July of 2010 the Company authorized 52,500 shares valued at $2,100 to Striker One Resources as an offset to a payable owed to Striker. As of the date of these financial statements, these shares have not been issued. The Company issued 100,000 shares valued at $14,000 to Bill Addison for the acquisition of Innovative Weaponry, Inc.

In July of 2010 the Company entered into an agreement with an investor agreeing to pay $25,000 in one year in return for the investment of $10,000.

The following table summarizes by category, the foregoing issuances of shares, options and warrants subsequent to the balance sheet date:

Category	Shares	Options	Warrants
Cash	1,790,001
Debt issuance		8,483,334	500,000
Debt settlement	1,000,000
Interest payment	43,750
Services	11,774,994
Equity investments	3,725,000
Ownbey lease acquisitions	1,950,000
Compensation	27,158,969
Total	47,442,714	8,483,334	500,000

Income Taxes

See Note 6 to the Financial Statements.

Disclosure Regarding Forward-Looking Statements

This Form 10-K includes "forward-looking" statements within the meaning of Section 27A of the Securities Act and the Company desires to take advantage of the "safe harbor" provisions thereof. Therefore, the Company is including this statement for the express purpose of availing itself of the protections of such safe harbor provisions with respect to all of such forward-looking statements. The forward-looking statements in this Form 10-KSB reflect the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from those anticipated. In the Form 10-KSB, the words "anticipates", "believes", "expects", "intends", "future" and similar expressions identify forward-looking statements. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that may arise after the date hereof. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this section.

Item 7. Financial Statements

The financial statement information for the Company is set forth immediately following the signature page of this Form 10-K. See the Index to Financial Statements on page F-1.

Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 8A. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to its management, including its Chief Executive Officer, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e). In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

At the end of the period covered by this Annual Report, we carried out an evaluation, under the supervision and with the participation of our management, including its Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon the foregoing, our Chief Executive Officer concluded that, as of September 30, 2008, our disclosure controls and procedures were not effective to ensure that the information required to be disclosed in the Company's Exchange Act reports was recorded, processed, summarized and reported on a timely basis.

In connection with the completion of its audit of, and the issuance of its report on the financial statements of American Resources for the year ended September 30, 2005, Malone & Bailey, PC identified deficiencies in our internal controls related to the failure to record the value of common stock issued for services disclosure controls relating to such transactions during the interim periods of 2005. The adjustments to these accounts and the footnote disclosure deficiencies were detected in the audit process and have been appropriately recorded and disclosed in this Form 10-K. We are in the process of improving our internal controls by training our new bookkeeper in an effort to remediate these deficiencies. Additional effort is needed to fully remedy these deficiencies and we are continuing our efforts to improve and strengthen our control processes and procedures. Our management and directors will continue to work with our auditors and other outside advisors to ensure that our controls and procedures are adequate and effective.

Item 8B. Other Information.

None.

PART III

Item 9. Directors, Executive Officers, Promoters and Control Persons

Each of the officers and directors hold office for one year terms. None of the officers or directors have been involved in any material legal proceedings. The following are the officers and directors of the Company as of September 30, 2008:

Name	Age	Position	Director Since
B. Fred Oden, III	55	President and Director	2004
Michael H. McIlvain	63	Executive Vice President and Director	1999
Hugh Fowler	54	Secretary and Director	2004

Management.

B. Fred Oden III, age 55, Lewisville, Texas, has been President since August 1, 2006 and a director of the Company since November 15, 2004. He is also President and Chief Executive Officer of Sabine Operating Services, Inc., Westminster, Texas which is a Texas and Kansas licensed petroleum operator. Mr. Oden has more than twenty years experience in the oil and gas industry. A sociology and law enforcement graduate of Lamar State University, Beaumont, Texas, Mr. Oden is a Texas certified peace officer.

Michael H. McIlvain, age 63, Trophy Club, Texas is Executive Vice President and a director of the Company. Mr. McIlvain holds BS and MBA degrees from the University of Kansas. He has more than 20 years of experience in the oil and gas business, mainly with Clinton Oil Co., Wichita, Kansas, and Rickelson Oil and Gas Company, Tulsa, Oklahoma. Between 1994 and 1997, he was executive vice president of BeneFund, Inc., a publicly held telecommunications company based in Tulsa.

Hugh W. Fowler, age 54, Richardson, Texas has been a Vice-President and a director of the Company since November 15, 2004. He is a business administration graduate of Stephen F. Austin University, Nacogdoches, Texas and since 1977 has worked in the oil and gas industry, primarily in Southeastern, Kansas.

Item 10. Executive Compensation

None

~~Item~~Employment ~~11. Security Ownership of Certain Beneficial Owners and Management~~Agreements

The following is certain information regarding the Company's common stock as of September 30, 2008 with respect to (a) security ownership of each person known by the Company to own beneficially more than 5% of the Company's common stock, and (b) security ownership of management.None

~~Ownership at September 30, 2008~~Other

	Name and Address	Number of	Percent
Title of Class	of Beneficial Owner	Shares Owned	of Class	Notes
A. Greater than 5% Ownership
Common Stock	William Becker	1,120,500	7.18%
No Par Value
Common Stock	CDR Enviromental	825,000	5.28%
No Par Value	Services
Common Stock	Osage Hills Energy	1,092,025	7.02%
No Par Value
Common Stock	Blue River Trading	825,000	5.28%
No Par Value
Common Stock	Eric Oden	1,045,000	6.70%
No Par Value

We had an impairment loss of $187,186 for the fiscal year ended September 30, 2009. Our impairment loss for the fiscal year ended September 30, 2008 is $34,789.

~~B. Security~~Results ~~Ownership~~Of ~~of Management~~Operations

Common Stock	M. H. McIlvain	37,560	0.24%	See 1 below.
No Par Value	110 Seminole
	Trophy Club, TX 76262
Common Stock	B. Fred Oden	347,050	2.22%	See 2 below.
No Par Value
Common Stock	Hugh Fowler	106,281	0.68%	See 3 below.
No Par Value	505 Tiffany Trail
	Richardson, Texas
All directors and officers
as a group (3 persons)		490,891	3.15%

We recorded a net loss of $958,825 for the fiscal year ended September 30, 2009 as compared to net loss of $459,680 for fiscal year ended September 30, 2008. The increase in our loss of $499,145 or 53% is discussed below.

~~There~~Revenue ~~are~~— noTotal ~~family~~revenue ~~relationships~~decreased ~~between~~$31,101 from $46,838 for the ~~officers~~twelve ~~and~~months ~~directors~~ended September 30, 2008 to $15,737 for the twelve months ended September 30, 2009.

1.Expenses Of— ~~Mr.~~Total ~~McIlvain's~~expenses ~~shares~~increased 8$461,~~000~~137 ~~are~~for ~~held~~the bytwelve ~~Elizabeth~~months L.ended ~~McIlvain~~September 30, ~~his~~2008 ~~wife;~~to 2$927,~~000~~817 ~~held by Elizabeth L. McIlvain as custodian~~ for ~~a minor child; and~~ the ~~remaining~~twelve ~~26,560~~months ~~shares~~ended ~~are held directly. 2. 127~~September30,~~050~~ ~~of Mr~~2009. Oden's shares are held as joint tenancy with his son, Eric Oden. 3. 43,120 shares are held as tenants in common with Mr. Fowler’s wife, Ruthye, and 63,161 shares are held by Mr. Fowler’s minor children. 4. The directors include M. H. McIlvain, B. Fred Oden, and Hugh Fowler.

11Lease operating expenses and taxes increased $6,024 for the twelve months ended September 30, 2009 to $35,144. This was primarily due to the Lindley lease becoming non-productive and the landowner taking possession of the lease.

~~(c) Changes~~Total inoperating ~~Control~~expenses increased $512,431, from $466,394 for the twelve months ended September 30, 2008 to $978,825 for the twelve months ended September 30, 2009. The increase is due to higher stock based compensation expense of $156,050 and consulting fees of $180,000.

~~None~~The loss on impairment of oil and gas properties for the twelve months ended September 30, 2009 and 2008 was $42,000and $34,789, respectively. The impairment charge for the fiscal year ended September 30, 2008 relates to the pipeline. The impairment charges from year to year are not related. The impairment charge is calculated based on reserve reports obtained from an independent engineering firm.

~~Item 12. Certain Relationships and Related Transactions~~-15-

~~Sabine~~Depreciation, ~~Operating~~depletion, ~~Services~~amortization and accretion decreased $1,863 ~~Inc.~~from ~~(Sabine)~~$16,464 afor ~~company~~the oftwelve ~~which~~months ~~Mr.~~ended ~~Oden~~September 30, is2008 to $14,601for the ~~majority~~twelve ~~owner~~months ended September 30, ~~operates~~2009. ~~the~~The ~~Kansas~~decrease ~~properties~~is ~~for~~primarily due to the ~~Company~~abandonment ~~pursuant~~of the Lindley lease. Future charges to depreciation, depletion, amortization and accretion may be substantially higher or lower as a ~~joint~~result ~~operating~~of ~~agreement. See~~increased ~~Note~~production 7or changes in reserve prices and/or quantities and changes to ~~the~~asset ~~financial~~retirement ~~statements~~obligations.

~~Item~~Other 13Income — Effective September 30, 2009, the Company had generated $3,250,000 in consulting fees from two related parties. ~~Exhibits~~ The ~~and~~Company ~~Reports~~has onestablished ~~Form~~a ~~8-K~~reserve for collectibility in an equal amount.

OnProvision ~~November~~For 1,Income ~~2007~~Taxes a— ~~filing~~No ontax ~~Form~~benefits ~~8-K~~were ~~was~~recorded ~~made~~for ~~informing that~~ the ~~directors~~twelve ~~had~~months ~~declared~~ended aSeptember 30, ~~10%~~2009 ~~stock~~and ~~dividend~~2008 due to ~~shareholders~~the oflosses ~~record~~we ashave experienced and a valuation allowance for 100% of ~~November~~the ~~30,~~deferred ~~2007~~tax assets.

~~SIGNATURES~~Liquidity and Capital Resources

InAs ~~accordance~~of ~~with~~September 30, ~~Section~~2009, 13we orhad 15total ~~(d)~~assets of ~~the~~$208,601 ~~Exchange~~of ~~Act~~which net oil and gas properties amounted to $191,809 or 92% of the ~~registrant~~total ~~caused~~assets. ~~this~~As ~~report~~of toSeptember 30, be2008, ~~signed~~we onhad ~~its~~total ~~behalf~~assets byof $312,108 of which net oil and gas properties amounted to $251,096 or 80% of the ~~undersigned~~total assets. Our accumulated losses through September 30, ~~thereunto~~2009 ~~duly~~totaled ~~authorized~~$5,974,317 while our accumulated losses through September 30, 2008 totaled $4,995,492. At September 30, 2009, we had $2,542 in cash as compared $1,762 for September 30, 2008.

	AMERICAN RESOURCE TECHNOLOGIES, INC.
Date: October 22, 2010	/s/ B. FRED ODEN, III
	By: B. Fred Oden, III, President,
	Chief Executive Officer
Date: October 22, 2010	/s/ M. H. MCILVAIN
	By: M. H. McIlvain, Executive Vice President,
	and Principal Accounting Officer

We have funded operations from cash generated from the sale of common stock and loans from affiliates. Our cash provided by operations totaled $10,189 for the twelve months ended September 30, 2009 while our cash used for operations totaled $(160,317) for the same period last year. This represents a decrease of $170,506 in cash used for operating activities. Our net capital investments for fiscal years 2009 and 2008 were $112,710 and $ none, respectively. Net cash received from the sale of oil and gas production for fiscal years 2009 and 2008 was $15,737 and $46,838 respectively. Net cash provided by financing activities totaled $103,301 for the twelve months ended September 30, 2009 and $136,799 for the twelve months ended September 30, 2008.

In ~~accordance~~the past we have primarily acquired producing oil and gas properties with ~~the~~opportunities ~~Exchange~~for ~~Act~~future development and contracted well operations to contractors. Currently, ~~this~~our ~~report~~primary ~~has~~focus ~~been~~is ~~signed~~to ~~below~~secure byadditional ~~the~~capital ~~following~~through ~~persons~~business onalliances ~~behalf~~with ofthird ~~the~~parties ~~registrant~~or ~~and~~other indebt/equity ~~the~~financing ~~capacities~~arrangements to acquire producing oil and ongas ~~the~~leases ~~dates~~and ~~indicated:~~wells.

Signature	Title	Date
/s/ B. FRED ODEN, III	President & Director	October 22, 2010
B. Fred Oden, III
/s/ M. H. MCILVAIN	Exec. Vice President & Director	October 22, 2010
M. H. McIlvain
/s/ HUGH FOWLER	Secretary & Director	October 22, 2010
Hugh Fowler

We expect that the principal source of funds in the near future will be from oil and gas revenues and advances from an affiliate. We have not yet established an ongoing source of revenue sufficient to cover our operating costs and continue as a going concern. Management’s plan is to obtain operating loans from an affiliate to meet its minimal operating expenses (no formal commitments or arrangements currently exist with the affiliate to advance or loan funds to the Company) and seek equity and/or debt financing. Any such additional funding will be done on an “as needed” basis and will only be done in those instances in which we believe such additional expenditures will increase our profitability. However, actual results may differ from management’s plan and the amount may be material.

12Our ability to acquire additional properties or equipment is strictly contingent upon our ability to locate adequate financing or equity to pay for these additional properties or equipment. There can be no assurance that we will be able to obtain the opportunity to buy properties or equipment that are suitable for our investment or that we may be able to obtain financing or equity to pay for the costs of these additional properties or equipment at terms that are acceptable to us.. Additionally, if economic conditions justify the same, we may hire additional employees although we do not currently have any definite plans to make additional hires.

~~Report~~The oil and gas industry is subject to various trends. In particular, at times crude oil prices increase in the summer, during the heavy travel months, and are relatively less expensive in the winter. Of course, the prices obtained for crude oil are dependent upon numerous other factors, including the availability of ~~Independent~~other ~~Registered~~sources ~~Public~~of ~~Accounting~~crude ~~Firm~~oil, interest rates, and the overall health of the economy. We are not aware of any specific trends that are unusual to our company, as compared to the rest of the oil and gas industry.

~~Board~~Item 7A. ofQuantitative ~~Directors~~ and ~~Stockholders~~Qualitative Disclosures About Market Risk

As a smaller reporting company, we are not required to complete this item.

-16-


Item 8.		FINANCIAL STATEMENTS.

AMERICAN RESOURCE TECHNOLOGIES, INC.

INDEX TO FINANCIAL STATEMENTS


	PAGE
Report of Independent Registered Public Accounting Firm		18
Balance Sheets —September 30, 2009 and 2008		19
Statements of Operations — For The Years Ended September 30, 2009 and 2008		20
Statements of Cash Flows — For The Years Ended September 30, 2009 and 2008		21
Statements of Changes In Stockholders’ Equity (Deficit) — For The Years Ended September 30, 2009 and 2008		22
Notes to Financial Statements		23

-17-

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders

American Resource Technologies, Inc.

We have audited the accompanying balance sheets of American Resource Technologies, Inc. (the “Company”), as of September 30, ~~2008~~2009 and ~~2007,~~2008 and the related statements of operations, changes in stockholders’ equity, (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of American Resource Technologies, Inc. atas ~~September~~of September 30, ~~2008~~2009 and ~~2007,~~2008 and the results of its operations and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

~~The~~As described in Note 4, the accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As ~~discussed~~The inCompany ~~Note~~has 1experienced torecurring ~~the financial statements at September 30~~losses, ~~2008,~~has ~~the~~current ~~Company~~liabilities ~~has~~in ~~negative~~excess ~~working~~of ~~capital,~~current assets and has ~~incurred~~a ~~substantial~~stockholders’ ~~operating losses resulting in an accumulated~~ deficit ofat $4September 30,~~995,492~~ 2009. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. ~~Managements’~~ ~~plans in regard to these matters are also described in Note 1.~~ The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Turner, Stone & Company, ~~L.L.P.~~LLP

Dallas, Texas.

~~October~~August 2215, ~~2010~~2011

F-118-

American Resource Technologies, Inc.
Balance Sheets	American Resource Technologies, Inc.
Balance Sheets
		~~September 30,~~	September 30,			~~September 30,~~	September 30,
		2008				2007
			2009				2008
A S S E T S
ASSETS
Current assets
~~Cash~~	Cash	$	~~1,762~~$	2,542		$	~~25,280~~$	1,762
Total current assets			1,762				25,280
				-				-
Property & equipment
	Total current assets			2,542				1,762
Producing oil & gas property, net of accumulated depletion $24,458 and $10,993 respectively			251,096				243,311
Property & equipment
Furniture & fixtures, net of accumulated depreciation of $7,750 and $4,750 respectively			17,250				20,250
	Producing oil & gas property, net of accumulated depletion $21,941 and $24,458 respectively			191,809				251,096
Total			268,346				263,561
	Furniture & fixtures, net of accumulated depreciation of $10,750 and $7,750 respectively			14,250				17,250
Other assets
	Total			206,059				268,346
Unproved oil & gas properties			42,000				-
Other assets
Montgomery pipeline			-				34,789
	Unproved oil & gas properties			-				42,000
Total			42,000				34,789
	Consulting receivables, related party,
Total assets		$	312,108			$	323,630
	net of $3,550,000 reserve for
L I A B I L I T I E S and S T O C K H O L D E R S’ E Q U I T Y
	collectibility (Note 7)			-				-
Current liabilities
	Accounts receivable, related party, net
Accounts payable		$	52,955			$	19,980
	of $142,710 reserve for collectibility
Advances from related parties			36,839				5,040
	(Note 8)			-				-
Total current liabilities			89,794				25,020
	Investments			-				-
Long-term liabilities
	Total			-				42,000
Long-term notes payable			60,000				50,000
	Total assets		$	208,601			$	312,108
Total long-term liabilities			60,000				50,000
LIABILITIES and STOCKHOLDERS’ EQUITY (DEFICIT)
Stockholders' equity
Current liabilities
Common stock, no par value
	Accounts payable		$	67,792			$	51,779
authorized 500,000,000 shares; 15,598,559
	Notes payable-current, net of debt discount
and 10,492,985, respectively, issued and outstanding			5,157,806				4,784,422
	of $150,000 (Note 8)			250,000				-
Accumulated deficit			(4,995,492	)			(4,535,812	)
	Advances from related parties			10,316				38,015
Total stockholders' equity			162,314				248,610
	Total current liabilities			328,108				89,794
Total liabilities and stockholders' equity		$	312,108			$	323,630
Long-term liabilities
The accompanying notes are an integral part of the financial statements.
	Long-term notes payable			10,000				60,000
	Total long-term liabilities			10,000				60,000
Stockholders' equity (deficit)
	Common stock, no par value authorized
	500,000,000 shares; 27,086,696 issued and
	29,036,689 outstanding at 9/30/09 and 15,598,559, issued and outstanding at 9/30/08			5,824,810				5,157,806
	Accumulated deficit			(5,954,317	)			(4,995,492	)
	Total stockholders' equity(deficit)			(129,507	)			162,314
	Total liabilities and stockholders' equity (deficit)		$	208,601			$	312,108
The accompanying notes are an integral part of the financial statements.

F-219-

American Resource Technologies, Inc.
Statements of Operations
		For the Years Ended
For the Years Ended September 30,
		September 30
			2009				2008
		2008				2007
Revenue:
Revenue:
Oil and gas			$	15,737			$	46,838
Oil and gas		$	46,838			$	18,550
Total revenue				15,737				46,838
Total revenue			46,838				18,550
Cost of revenues:
Cost of revenues:
Lease operating expenses				35,144				29,220
Lease operating expenses			29,220				76,653
Depletion				11,601				13,464
Depletion			13,464				7,680
	Total cost of revenues			46,745				40,124
Total cost of revenues			40,124				84,333
	Operating income			(31,008	)			6,714
			6,714				(65,783	)
Operating expenses:
Operating expenses:
Interest expense				5,750				6,000
Consulting fees			163,006				245,500
Amortization of note discount (Note 8)				50,000				-
Depreciation			3,000				3,000
Stock based compensation				180,000				-
Impairment expense -- pipeline			34,789				-
Stock issued for Consulting fees				172,500				163,006
Debt guarantee expense			94,400				-
Depreciation				3,000				3,000
Professional fees			93,611				35,470
Impairment expense – Oil & gas assets				187,186				-
Public relations			26,600				250
Impairment expense – Investments				138,000				34,789
Travel			-				4,861
Debt guarantee expense				-				94,400
Rent			13,275				17,100
Bad debt expense (Note 8)				142,710				-
General and administrative			35,177				44,687
Professional fees				7,443				93,611
Total operating expenses			466,394				350,868
Public relations				215				26,600
Loss from operations			(459,680	)			(416,651	)
Travel				8,200				-
Other income (expenses):
Rent				21,300				13,275
Gain on early extinguishment of debt			-				15,384
General and administrative				11,513				35,177
Net Income (Loss) before income taxes			(459,680	)			(401,267	)
Total operating expenses				927,817				466,394
Provision for income taxes			-				-
Loss from operations				(958,825	)			(459,680	)
Net loss		$	(459,680	)		$	(401,267	)
Other income (expenses):
Basic loss per share		$	(0.04	)		$	(0.06	)
Non-operating revenue, related party (Note 7)				3,550,000				-
Weighted average shares outstanding			12,947,861				6,786,281
Reserve for potentially uncollectible revenue				(3,550,000	)			-
The accompanying notes are an integral part of the financial statements.
Loss before income taxes				(958,825	)			(459,680	)
Provision for income taxes				-				-
Net loss			$	(958,825	)		$	(459,680	)
Basic loss per share			$	(0.04	)		$	(0.04	)
Weighted average shares outstanding				22,380,014				12,947,861
The accompanying notes are an integral part of the financial statements.

F-320-

American Resource Technologies, Inc.
Statements of Changes in Stockholders' Equity
Statements of Changes in Stockholders' (Deficit)
For the Years Ended September 30, 2008 and 2007
For the Years Ended September 30, 2009 and 2008
									Total
	Common Stock					Accumulated			Stockholders'
	Shares			Amount		(Deficit)			Equity(Deficit)
Balances September 30, 2006		5,508,727		$	4,389,071	$	(4,134,545	)	$	254,526
Balances September 30, 2007		10,492,985		$	4,784,422	$	(4,535,812	)	$	248,610
Shares issued for:
Cash		663,456			91,600		-			91,600
Services		3,340,090			245,667		-			245,667
Payables		580,845			58,084		-			58,084
Debt Guarantee		400,000			-		-			-
Adjust for reverse split		(133	)		-		-			-
Net loss		-			-		(401,267	)		(401,267	)
Balances September 30, 2007		10,492,985			4,784,422		(4,535,812	)		248,610
Shares issued for:
Cash		1,222,500			95,000		-			95,000
Dividend		1,093,361			-		-			-
Services		902,893			120,734		-			120,734
Property acquisition		1,803,143			63,250		-			63,250
Property Acquisition		1,803,143			63,250		-			63,250
Debt Guarantee		80,000			94,400		--			94,400
Adjust for dividend round-ups		3,677			-		-			-
Net loss		-			-		(459,680	)		(459,680	)
Balances September 30, 2008		15,598,559		$	5,157,806	$	(4,995,492	)	$	162,314
Shares issued for:
Cash		266,661			11,000		-			11,000
Services		3,750,000			172,500		-			172,500
Compensation		4,500,000			180,000					180,000
Property acquisition		1,950,000			97,500		-			97,500
Investment		2,000,000			138,000		--			138,000
Accounts payable		971,469			68,004					68,004
Net loss		-			-		(958,825	)		(958,825	)
Balances September 30, 2009		28,086,695		$	5,824,810	$	(5,954,317	)	$	(129,507	)
The accompanying notes are an integral part of the financial statements.

F-421-

American Resource Technologies, Inc.
Statements of Cash Flows
For the Years Ended September 30, 2008 and 2007
For the Years Ended September 30,
Cash Flows from Operating Activities:		~~2008~~	2009			~~2007~~	2008
~~Net Loss~~	Net Loss	$	~~(459,680~~$	)(958,825	)	$	~~(401,267~~$	)(459,680	)
~~Adjustments to reconcile net loss to net cash~~	Adjustments to reconcile net loss to net cash
used in operating activities:
	Provided by (used in) operating activities:
~~Depreciation~~	Depreciation		~~3,000~~	3,000			~~3,000~~	3,000
~~Depletion~~	Depletion		~~13,465~~	11,601			~~7,680~~	13,465
Impairment of pipeline			34,789				-
	Amortization of note discount			50,000
Stock issued for services			120,734				245,667
	Impairment of oil and gas properties			187,186				34,789
Stock issued for accounts payable			-				(58,084	)
	Stock issued for services			172,500				120,734
Debt guarantee expense			94,400				-
	Stock issued for compensation			180,000
Gain on early extinguishment of debt			-				(15,384	)
	Investment Impairment			138,000
Changes in:
	Stock issued to pay expenses			68,004				-
Accounts payable			32,975				117,596
	Debt guarantee expense			-				94,400
Net Cash Used in Operating Activities			(160,317	)			(100,792	)
	Bad debt expense			142,710				-
Cash Flows from Investing Activities:
	Changes in assets and liabilities:
Net Cash Provided by Investing Activities			-				-
	Increase (Decrease) in:
Cash Flows from Financing Activities:
	Accounts payable			16,013				32,975
Proceeds from long term notes payable			10,000				25,000
Net Cash Provided by Operating Activities				10,189				(160,317	)
Proceeds from stock sales			95,000				91,600
Cash Flows from Investing Activities:
Advances from related parties			31,799				9,281
Advances to affiliates				(112,710	)			-
Net Cash Provided By Financing Activities			136,799				125,881
Net Cash Used in Investing Activities				(112,710	)			-
Net Increase (Decrease) in Cash			(23,518	)			25,089
Cash Flows from Financing Activities:
Beginning of year			25,280				191
	Proceeds from long term notes payable			120,000				10,000
End of year		$	1,762			$	25,280
	Proceeds from stock sales			11,000				95,000
Supplementary Disclosure:
	Repayment of advances from related party			(27,699	)			31,799
Cash Paid for Interest		$	6,000			$	-
Net Cash Provided By Financing Activities				103,301				136,799
Non-cash investing and financing transactions:
Net Increase (Decrease) in Cash				780				(23,518	)
Shares issued:
Cash
For property acquisitions			63,250				-
	Beginning of year			1,762				25,280
Proceeds from notes payable deposited
	End of year		$	2,542			$	1,762
by related party			-				25,000
Supplementary Disclosure:
Retirement of shares			48				-
	Cash Paid for Interest		$	-			$	6,000
The accompanying notes are an integral part of the financial statements.
Non-cash investing and financing transactions:
	Shares issued:
	For property acquisitions			97,500				63,250
	Proceeds from notes payable sent to
	Affiliates (Note 7)			30,000				25,000
	Investment in affiliates (Note 7)			138,000				-
	Retirement of shares			-				48
	Stock issued for accounts payable to related party			68,004				-
The accompanying notes are an integral part of the financial statements.

F-522-

~~American~~AMERICAN ~~Resource~~RESOURCE ~~Technologies~~TECHNOLOGIES, ~~Inc~~INC.

~~Notes~~NOTES toTO ~~Financial~~FINANCIAL ~~Statements~~STATEMENTS

~~NOTE~~ 1. -BUSINESS ~~SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES~~ACTIVITIES:

~~NATURE~~American OFResource ~~BUSINESS~~Technologies, Inc. (“the Company”) was incorporated in the state of Kansas. The Company was originally incorporated as Arts Antiques Autos, Ltd., and changed its name to Golden Chief Resources, Inc. on August 5, 1981. On April 4, 2007 the Company changed its name from Golden Chief Resources, Inc. to American Resource Technologies, Inc. Currently, our primary focus is to secure additional capital through business alliances with third parties or other debt/equity financing arrangements to acquire producing oil and gas leases and wells. We have explored and will continue to explore all avenues possible to raise the funds required. However, there is no assurance that we will be able to raise sufficient funds to execute our plans or that if successful in securing the funds our actual financial results will improve.

American Resource Technologies, Inc. (the Company) was incorporated as Arts Antique Autos, Ltd. in November 1976 in Kansas. During the early 1980's the Company engaged in oil and gas operating, mining, and real estate operations. During the mid 1980's, economic conditions caused the Company to lose its asset and revenue base. Management decided to discontinue any further business operations and completed the liquidation of the few remaining assets during 1986. The Company did not operate a line of business until the year ended September 30, 2000. During the fiscal year ended September 30, 1998, new assets were contributed in an attempt to revive the Company. In October 1999, interests in oil and gas properties were contributed by third parties in exchange for newly issued stock. This resulted in a change in control of the Company. In July of 2002, the Company abandoned the oil assets by transferring the assets to one of the shareholders in exchange for the debt associated with the property. Since December of 2004, the Company has, ~~through the use of farm-outs, received carried~~ working ~~interests~~interest in ~~several wells and has been able to move non-~~ producing ~~properties into the producing category. Management's plans include efforts to raise operating and development capital followed by further acquisition and development of~~ oil ~~and~~wells ~~gas~~in ~~properties~~Kansas.

~~USE~~2. SUMMARY OF ~~ESTIMATES~~SIGNIFICANT ACCOUNTING POLICIES:

~~The~~Revenue preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, the 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.Recognition

~~CASH~~Oil ~~AND~~and ~~CASH~~gas ~~EQUIVALENTS~~revenue is recorded when production is sold. The Company accrues revenue for oil and gas production sold but not paid.

~~The~~Principles ~~Company considers all highly liquid investments with an original maturity~~ of ~~three months or less to be cash equivalents for purposes of preparing its Statement of Cash Flows.~~Consolidation

~~PROPERTY~~The &Company ~~EQUIPMENT~~has no subsidiary companies, limited partnerships or affiliates which should be consolidated.

~~Property~~Cash and ~~equipment~~Cash are carried at cost. Depreciation of property and equipment is provided using the straight-line method for financial reporting purposes at rates based on their estimated useful lives (5-10 years). The cost of asset additions and improvements that extend the useful lives of property and equipment are capitalized. Routine maintenance and repair items are charged to current operations. The original cost and accumulated depreciation of asset dispositions are removed from the accounts and any gain or loss is reflected in the statement of operations in the period of disposition.Equivilents

~~OIL~~The ~~AND~~Company ~~GAS~~maintains ~~PROPERTIES~~its cash in a bank deposit account which, at times, may exceed federally insured limits. At September 30, 2009 and 2008 no deposits were in excess of FDIC insurance coverage. The Company has not experienced any losses in this account and believes it is not exposed to any significant risks affecting cash. None of the Company’s cash is restricted.

~~Method~~For purposes of ~~Accounting~~the ~~for~~statements ~~Oil~~of ~~and~~cash ~~Gas~~flows, ~~Properties~~cash includes demand deposits.

~~The~~Property ~~Company uses the successful efforts method of accounting for oil~~ and gas producing activities, as set forth in the Statement of Financial Accounting Standards (SFAS) No. 19 “Financial Accounting and Reporting by Oil and Gas Producing Companies.” Costs to acquire mineral interests in oil and gas properties, to drill and equip exploratory wells that find proved reserves, and to drill and equip development wells are capitalized. Costs to drill exploratory wells that do not find proved reserves, geological and geophysical costs and costs of carrying and retaining unproved properties are expensed as incurred.Equipment

FProperty and equipment are stated at the Company’s cost and are depreciated on a straight-6line basis over five to ten years. Maintenance and repair costs are expensed when incurred, while major improvements are capitalized.

~~Unproved~~Oil ~~oil~~ and ~~gas~~Gas properties that are individually significant are assessed annually for impairment of value, and a loss is recognized at the time of impairment (See “Impairment” below). Other unproved properties are amortized based on the Company’s experience of successful drilling and average holding period. Capitalized costs of producing oil and gas properties, after considering estimated dismantlement and abandonment costs and estimated residual salvage values, are depreciated and depleted by the units-of-production method. For the year ended September 30, 2008, the Company recorded depletion expense totaling $13,464 and in the year ended September 30, 2007 totaled $7,680. All of the Company's reserves are located within the United States.Properties

OnThe ~~the~~Company ~~sale~~follows orthe ~~retirement~~successful ofefforts amethod ~~complete unit~~ of ~~proved~~accounting ~~property,~~for ~~the~~oil ~~cost~~ and ~~related~~gas ~~accumulated~~exploration ~~depreciation, depletion,~~ and ~~amortization~~development ~~are~~expenditures. ~~eliminated~~Under ~~from~~this ~~the property accounts~~method, ~~and~~costs ~~the resultant gain or loss is recognized. On the retirement or sale~~ of asuccessful ~~partial~~exploratory ~~unit~~wells ofand ~~proved~~all ~~property,~~development ~~the~~wells ~~cost~~are iscapitalized. ~~charged~~Costs to ~~accumulated~~drill ~~depreciation,~~exploratory ~~depletion,~~wells ~~and~~that ~~amortization~~do ~~with~~not aresult ~~resulting~~in ~~gain~~proved orreserves ~~loss~~are ~~recognized in income~~expensed.

OnSignificant costs associated with the ~~sale~~acquisition of anoil ~~entire~~and ~~interest~~gas inproperties anare ~~unproved~~capitalized. ~~property~~Upon asale ~~gain~~or abandonment of units of property or ~~loss~~the ondisposition of miscellaneous equipment, the ~~sale~~cost is ~~recognized,~~removed ~~taking~~from ~~into~~the ~~consideration~~asset account, the ~~amount~~related reserves relieved of ~~any~~the ~~recorded~~accumulated ~~impairment~~depreciation ifor depletion and the ~~property~~gain ~~had~~or ~~been~~abandonment ~~assessed~~loss ~~individually.~~is Ifcredited ato ~~partial~~or ~~interest~~charged inagainst anoperations. Both proved and unproved ~~property~~oil isand ~~sold~~gas properties that are individually significant are periodically assessed for impairment of value, ~~the~~and ~~amount~~a ~~received~~loss is ~~treated~~recognized asat athe ~~reduction~~time of ~~the~~impairment. ~~cost~~Capitalized costs of producing oil and gas properties, after considering estimated dismantlement and abandonment costs and estimated salvage values are depreciated and depleted by the ~~interest~~unit-of-production ~~retained~~method. Support equipment and other property and equipment are depreciated over their estimated useful lives.

~~LONG~~-~~LIVED ASSETS~~23-

The Company provides for depreciation, depletion and amortization of its investment in producing oil and gas properties on the unit-of-production method, based upon independent reserve engineers’ estimates of recoverable oil and gas reserves from the property.

~~Long-lived~~Oil ~~assets consist primarily of property~~ and ~~equipment.~~gas ~~The~~properties ~~recoverability~~consist of ~~long-lived assets is evaluated at~~ the operating unit level (Well) by an analysis of operating results and consideration of other significant events or changes in the business environment. If an operating unit has indications of impairment, such as current operating losses, the Company will evaluate whether impairment exists on the basis of undiscounted expected future cash flows from operations for the remaining amortization period. If impairment exists, the carrying amount of the long-lived asset is reduced to its estimated fair value, less any costs associated with any final settlement. As of September 30, 2008, there was no impairment of the Company's long-lived assets.following:

IMPAIRMENT


	September 30,
	2009			2008
Proved oil and gas properties	$	213,750		$	275,554
Accumulated depreciation, depletion and amortization		(21,941	)		(24,458	)

	$	191,809		$	251,096

~~The~~Property ~~Company has adopted Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”~~ and ~~periodically~~equipment ~~evaluates,~~consists ~~using independent appraisals and projected undiscounted cash flows, the carrying value~~ of ~~its long-lived assets and proved oil and gas properties whenever events or changes in circumstances indicate that~~ the carrying amount of an asset may not be recoverable. In addition, long-lived assets to be disposed of are reported at the lower of carrying value or fair value less cost to sell. Fair values used for impairment identification are based on discounted cash flow amounts determined by the reserve reports. There were no impairment charges for the year ended September 30, 2007. Unproved oil and gas properties are periodically assessed for impairment following the guidance provided in SFAS No. 19, “Financial Accounting and Reporting by Oil and Gas Producing Companies”. The Company also reviewed the Montgomery County Pipeline regarding a possible impairment since it has not yet been put into operation. Based on management’s estimates of the start-up costs to bring the pipeline into operation and the fact that an additional new pipeline has been constructed and is operational in the immediate area, the Company deemed that 100% impairment was required in the year ended September 30, 2008.:

INCOME TAXES


	September 30,
	2009			2008
Office furniture, equipment, and software	$	25,000		$	25,000
Accumulated depreciation and amortization		(10,750	)		(7,750	)

	$	14,250		$	17,250

~~The~~Depletion, ~~Company~~depreciation ~~recognizes deferred tax assets~~ and ~~liabilities~~amortization ~~based~~expense onrelated ~~differences~~to ~~between~~oil ~~the financial reporting~~ and ~~tax~~gas ~~bases~~properties ~~of assets~~ and ~~liabilities~~property ~~using the enacted tax rates~~ and ~~laws~~equipment ~~that~~was ~~are~~$11,601and ~~expected~~13,464 tofor ~~be in effect when~~ the ~~differences~~years ~~are~~September 30, ~~expected~~2009 toand be2008, ~~recovered~~respectively. ~~The Company provides a valuation allowance for deferred tax assets for which it does not consider realization of such assets to be more likely than not.~~

~~Differences~~Long-lived ~~arise principally from the difference in the way oil and gas assets are deducted for tax purposes.~~Assets

FThe Company reviews its long-7lived assets to be held and used, including proved oil and gas properties accounted for under the successful efforts method of accounting, whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. An impairment loss is indicated if the sum of the expected undiscounted future cash flows is less than the carrying amount of the assets. In this circumstance, the Company recognizes an impairment loss for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.

EARNINGS PER SHARE

Generally accepted accounting principles provide for the calculation of "Basic" and "Diluted" earnings per share. Basic earnings per common share excludes dilutive securities and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflect the potential dilution of securities that could share in the earnings of the entity on an "as if” converted basis. This is done by dividing net income available to common shareholders, as adjusted if necessary, by the weighted average number of common shares outstanding plus potential dilutive securities. The Company granted 200,000 of options during 2007 and 281,250 during 2008. These options are anti-dilutive due to the net loss in each year.

CONCENTRATIONS

The Company’s operations are concentrated in the oil and gas industry. As such, revenues, costs, etc. are subject to changes due to national and international inventory levels, variations in consumption, and other factors. The Company currently owns interests in only two properties and deals with a single operator on each property. Should anything happen to the operator of either property, it is believed that a substitute operator would be available. The Company’s producing oil and gas wells are all located in Chautauqua and Montgomery counties, Kansas.

During the year ended September 30, 2008, the following customer accounted for greater than 10% of our oil and gas sales:

Plains Marketing LP 100%

The Company has no other relationship with this customer. This concentration is a matter of convenience for us rather than necessity since this customer is an active buyer in the areas where our wells are located, and prices between potential customers vary little or not at all as prices are tied to the going market rate for the commodity. If the Company lost its largest customer, management believes the Company could quickly replace the lost customer with other buyers paying comparable prices. Consequently, management does not believe the loss of the Company’s major customer would have a material adverse effect on its business.

RECENT ACCOUNTING STANDARDS

During the year ended September 30, 2008 there were several new accounting pronouncements issued by the Financial Accounting Standards Board (FASB). Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s financial position or operating results. The Company will monitor these emerging issues to assess any potential future impact on its financial statements.

FAIR VALUE OF FINANCIAL INSTRUMENTS

In accordance with the reporting requirements of SFAS No. 107, Disclosures About Fair Value of Financial Instruments, the Company calculates the fair value of its assets and liabilities which qualify as financial instruments under this statement and includes this additional information in the notes to the financial statements when the fair value is different than the carrying value of those financial instruments. The Company’s cash and accounts payable and advances from related parties approximate fair value due to the short maturity of these instruments. The carrying value of the long-term notes payable approximate their fair market value since they bear market rates of interest.

STOCK-BASED COMPENSATION

In December 2004 the FASB issued SFAS 123(R) which requires companies to recognize in the statement of operations all share-based payments, including grants of employee stock options and grants to non employees based on their fair values. The Company has not granted any options to employees in the past two fiscal years, but has issued options to certain unrelated parties. (See Note 5)

F-8

GOING CONCERN

As shown in the accompanying financial statements, American Resources incurred net losses of $459,680 and $401,267 in years ended September 30, 2008 and 2007, respectively, has an accumulated deficit of $4,995,492 and has negative working capital. These conditions raise substantial doubt as to American Resource’s ability to continue as a going concern. Management is trying to raise additional capital through sales of common stock and debt. The financial statements do not include any adjustments that might be necessary if American Resources is unable to continue as a going concern.

NOTE 2: OIL AND GAS PROPERTIES

Disclosures of unaudited information regarding reserves are presented at Note 10.

Asset Retirement Obligations

~~Effective~~The ~~January~~Company 1,accounts ~~2003,~~for the ~~Company~~asset ~~adopted~~retirement ~~SFAS~~obligations under the provisions of FASB No. 143, ~~“Accounting~~which requires the fair value of the liability for ~~Asset~~an ~~Retirement~~asset ~~Obligations”~~retirement obligation be recognized in the period in which it is incurred. ~~Pursuant~~When tothe ~~this~~liability ~~accounting~~is ~~standard~~initially recorded, the ~~Company~~offset ~~did~~is ~~not~~capitalized ~~recognize~~by ~~additional~~increasing ~~net~~the ~~liabilities~~carrying atamount ~~September~~of ~~30,~~the ~~2008~~long-lived asset. Over time, orthe atliability ~~September~~is ~~30,~~accreted ~~2007~~to its present value each period, ~~for~~and ~~asset~~the ~~retirement~~capitalized ~~obligations~~cost ~~related~~is todepreciated over the ~~future~~useful ~~costs~~life of ~~plugging~~the ~~and~~related ~~abandoning~~asset. ~~its~~To ~~oil~~settle ~~and~~the ~~gas properties~~liability, the ~~removal~~obligation ofis ~~equipment~~paid, and ~~facilities~~to ~~from~~the ~~lease~~extent ~~acreage~~there is a difference between the liability and ~~returning~~the ~~such~~amount ~~land~~of tocash ~~its~~paid, ~~original~~a ~~condition~~gain or loss upon settlement is recognized. ~~The~~No accretion expense is included in “Depreciation, depletion, and amortization” in the accompanying statement of operations for the year ended September 30, 2009 since the Company’s estimates reflect that the ~~present~~remaining salvage value of recoverable property exceeds the ~~future~~liability ~~cost~~of the potential retirement obligations. The Company estimates that due to ~~plug~~the ~~and~~shallow ~~abandon~~depths ~~its~~of ~~oil~~the ~~and~~wells ~~gas~~involved ~~properties~~the toaverage be“plugging” ~~approximately~~or abandonment cost per well will average just under $101,~~000~~500 ~~due~~per towell while the ~~shallow~~salvage ~~depth~~value ofper ~~the~~well ~~Company’s~~should ~~oil~~average ~~and~~just ~~gas~~over ~~wells~~$2,300 per well.

~~No accretion expense is included in “Depreciation, depletion, and amortization” in the accompanying statement of operations for the years ended September 30, 2008 and 2007.~~-24-

~~NOTE~~Income ~~3 - STOCK TRANSACTIONS~~Taxes

~~During~~Income taxes are accounted for under the ~~fiscal~~asset ~~year~~and ~~ended~~liability ~~September~~method. ~~30,~~Deferred ~~2008~~tax weassets ~~sold~~and ~~1,222,500~~liabilities ~~shares~~are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and ~~received~~liabilities ~~$95,000~~and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in ~~proceeds~~the ~~from~~years ~~these~~in ~~sales~~which those temporary differences are expected to be recovered or settled. The ~~Company~~effect ~~also~~on ~~issued~~deferred ~~1,803,143~~tax ~~shares~~assets ~~valued~~and atliabilities ~~$63,250~~of ~~for~~a ~~interests~~change in ~~two~~tax ~~properties~~rates is recognized in ~~Kansas~~income ~~and~~in ~~issued~~the ~~903,500~~period ~~shares~~that includes the enactment date. Income tax expense is the tax payable for ~~services~~the ~~valued~~year atplus ~~$120,734~~or minus the change during the period in deferred tax assets and liabilities.

AtEquity ~~September~~Instruments ~~30,~~Issued ~~2008, the Company reserved 481,250 shares of its authorized but un-issued common stock~~ for ~~possible future issuance in connection with the potential exercise of stock options.~~Services

OnThe ~~August~~Company ~~10,~~measures ~~2007~~ the ~~Company~~cost ~~entered~~of ~~into~~services anreceived ~~agreement~~in ~~with~~exchange ~~Pinnacle Consulting Group, Inc. which called~~ for ~~Pinnacle~~an toaward ~~provide~~of ~~investor~~equity ~~relations~~instruments ~~services~~based toon the ~~Company. The~~fair ~~term~~value of the ~~agreement~~award ~~begins August 13, 2007 and concluded~~ on ~~February~~the ~~12,~~grant ~~2008~~date. ~~and~~That ~~was~~cost ~~not~~is ~~extended~~recognized byin ~~mutual~~the ~~agreement. The~~financial ~~agreement~~statements ~~called~~over ~~for~~ the ~~Company~~period toduring ~~issue~~which ~~200,000~~the ~~shares~~employee ofis ~~its~~required ~~restricted common stock immediately~~ to ~~Pinnacle~~provide ~~and~~services ~~pay~~in ~~them~~exchange ~~$2,000~~for ~~per~~the ~~month~~award ~~along~~ with ~~additional~~a ~~issuances~~corresponding ofincrease ~~100,000 shares of restricted common stock to Pinnacle beginning~~ in ~~October~~additional ~~of 2007 and culminating~~ paid-in ~~February of 2008 with an ultimate total issuance of shares totaling 600,000 shares~~capital. The agreement also called for the issuance of options to Pinnacle for the acquisition of 100,000 shares of the Company’s common stock at $0.10 per share expiring August 10, 2012, and 100,000 shares at $0.15 per share expiring August 10, 2012.

OnEarnings ~~August~~Per ~~28,~~Share 2007, Eric Oden, the son of Fred Oden, the Company’s president, agreed to provide consulting services to the Company in the area of field operations for the receipt of 750,000 shares of the Company’s restricted common stock. The Company on the same date entered into an agreement with Osage Hills Energy Company to provide consulting services in the area of oil and gas reporting and administrative assistance for the issuance of 750,000 shares of the Company’s restricted common stock.(EPS)

~~During~~Basic earnings per common share is calculated by dividing net income or loss by the ~~fiscal~~weighted ~~year~~average number of shares outstanding during the ~~Company~~year. ~~has~~Diluted ~~provided~~earnings ~~restricted~~per common share is calculated by adjusting outstanding shares, toassuming ~~John~~conversion ~~Stafford~~of all potentially dilutive stock options. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an antidilutive effect on earnings per common share. Antidilution results from an increase in ~~exchange~~earnings ~~for~~per ~~assistance~~share or reduction in ~~investor~~loss ~~relations~~per ~~activities~~share from the inclusion of potentially dilutive shares in EPS calculations.

~~F-9~~Use of Estimates

~~NOTE~~The 4preparation –of ~~LONG~~financial ~~TERM~~statements ~~DEBT~~in conformity with generally accepted accounting principles 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. Significant estimates include: estimates of proved reserves as key components of the Company’s depletion rate for oil properties; accruals of operating costs; estimates of production revenues; and calculating asset retirement obligations. Because there are numerous uncertainties inherent in the estimation process, actual results could differ materially from these estimates.

AsFair ofValue September 30, 2008 the Company has been able to place $60,000 in long-term debt with a maturity of two years bearing interest at ten per cent per annum. These notes are convertible into shares of the Company’s stock which collateralizes the notes. The Company continues to seek these and other sources of financing.Measurements

~~NOTE~~The 5Company -adopted ~~STOCK~~fair ~~OPTIONS~~value accounting for certain financial assets and liabilities that have been evaluated at least annually. The standard defines fair value as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Management has determined that it will not, at this time, adopt fair value accounting for nonfinancial assets or liabilities currently recorded in the consolidated financial statements, which includes property and equipment, investments carried at cost, deposits and other assets. Impairment analyses will be made of all assets using fair value measurements.

~~The~~Assets ~~following~~and ~~table~~liabilities ~~lists~~measured at fair value are categorized based upon the ~~options~~level ~~outstanding~~of atjudgment ~~September~~associated ~~30,~~with ~~2008~~the inputs used to measure their fair value. Hierarchical levels, defined by generally accepted accounting principles and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:

	Date of				Number		Share Price
Grantee	Grant	Expiration Date	Price		of Shares		At Grant Date
Pinnacle Consulting Group, Inc.	8/10/2007	1/10/2012	$	0.10		100,000	$	0.10
Pinnacle Consulting Group, Inc.	8/10/2007	1/10/2012	$	0.15		100,000	$	0.10
William Becker	4/21/2008	5/1/2009	$	0.08		156,250	$	0.07
Gary Hartstein	4/21/2008	5/1/2009	$	0.08		125,000	$	0.07
Total options outstanding at 9/30/08						481,250


Level 1		Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

~~The~~Level ~~following~~2 ~~table~~Inputs isto ~~an analysis of options for~~ the ~~purchase~~valuation ofmethodology ~~American Resources's common stock outstanding as of September 30, 2008 & 2007.~~include:

	2008					2007
				Weighted					Weighted
				Average					Average
				Exercise					Exercise
	Shares			Price		Shares			Price
Outstanding, beginning
of year		440,000		$	0.125		50,000		$	0.050
Granted		441,250			0.105		440,000			0.125
Expired/Cancelled		(400,000	)		0.125		(50,000	)		0.050
Exercised		-			-		-			-
Outstanding end of year		481,250		$	0.113		440,000		$	0.091
Exercisable		481,250		$	0.113		440,000		$	0.091

	–		quoted prices for similar assets or liabilities in active markets;

	–		quoted prices for identical or similar assets or liabilities in inactive markets;

	–		inputs other than quoted prices that are observable for the asset or liability;

	–		inputs that are derived principally from or corroborated by observable market data by correlation or other means.

		Outstanding					Exercisable
					Weighted
		Number		Average	Weighted		Number		Weighted
		Outstanding		Remaining	Average		Exercisable		Average
Range of		at Sept. 30,		Contractual	Exercise		at Sept. 30,		Exercise
Exercise Prices		2008		Life	Price		2008		Price
$	0.10		100,000	4 years	$	0.10		100,000	$	0.10
$	0.15		100,000	4 years	$	0.15		100,000	$	0.15
$	0.07		281,250	8 months	$	0.08		281,250	$	0.08
Total			481,250	25 Months	$	0.099		481,250	$	0.099

-25-

~~The~~If ~~outstanding~~the ~~options~~asset ~~were~~or ~~purchased~~liability byhas ~~the~~a ~~holders~~specified as(contractual) ~~part~~term, ofthe ~~their~~Level ~~purchase~~2 ofinput ~~restricted~~must ~~common~~be ~~shares~~observable onfor orsubstantially ~~about~~ the ~~issue~~full ~~date~~term of the ~~options. All~~asset ofor ~~the above listed options expired unexercised subsequent September 30, 2008~~liability.

~~F-10~~Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

~~Note~~Cash, ~~6. INCOME~~receivable ~~TAXES~~and payable amounts, accrued expenses and other current liabilities are carried at book value amounts which approximate fair value due to the short-term maturity of these instruments.

~~The Company accounts for corporate income taxes in accordance with Statements of Financial Accounting Standards (SFAS) No~~3. ~~109. Under~~RECENT ~~SFAS~~ACCOUNTING No. 109, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. In addition, future tax benefits, such as those from net operating loss carry forwards, are recognized to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.PRONOUNCEMENTS:

~~Since~~During ~~1999,~~ the ~~Company~~year ~~has~~ended ~~not~~September 30, ~~filed~~2009 ~~any~~there ~~federal~~were ~~tax~~several ~~returns.~~new ~~When~~accounting ~~such~~pronouncements ~~filings~~issued ~~are~~by ~~made,~~ the ~~Company~~Financial ~~may~~Accounting beStandards ~~subject~~Board to(FASB) one ~~failure~~of towhich ~~file~~was ~~penalties~~SFAS No. 168, ~~The~~Accounting ~~Company~~Standards ~~periodically~~Codification ~~assesses~~and the ~~liabilities~~Hierarchy ~~and~~of ~~contingencies~~Generally inAccepted ~~connection~~Accounting ~~with~~Principles—a ~~this~~replacement ~~matter~~of ~~based~~FASB ~~upon~~Statement ~~the~~No. 162. ~~latest~~Each ~~information~~of ~~available. The~~these pronouncements, as applicable, has been or will be adopted by the Company. ~~estimates~~Management ~~that~~does not believe the ~~amount~~adoption of ~~penalties,~~any ifof ~~any,~~these ~~will~~accounting ~~not~~pronouncements has had or will have a material ~~effect~~impact on the ~~results~~Company’s offinancial ~~operations,~~position ~~cash flows~~ or ~~financial~~operating ~~position~~results. No ~~provisions~~The ~~have~~Company ~~been~~will ~~made~~monitor inthese ~~the~~emerging ~~financial~~issues ~~statements~~to ~~for~~assess ~~such~~any ~~penalties,~~potential iffuture ~~any~~impact on its consolidated financial statements.

A4. ~~reconciliation~~GOING ~~of income tax (expense) benefit at the statutory federal rate of 34% to income tax (expense) benefit at the Company’s effective tax rate for the years ended September 30, 2008 and 2007 is as follows~~CONCERN:

	2008			2007
Tax benefit computed at statutory rate	$	156,300		$	136,400
Less valuation allowance		(156,300	)		(136,400	)
Income tax benefit	$	-		$	-

At September 30, 2009, the Company has accumulated losses of approximately $5.9 million. The Company does not have sufficient working capital or revenue to sustain its operations. The Company is pursuing equity and/or debt financing to fund operations and execute its plans to acquire additional oil and gas leases and wells. If no additional funds are received, the Company will be forced to rely on existing oil and gas revenue and upon additional funds which may or may not be loaned by an affiliate to preserve the integrity of the corporate entity. No formal commitments or arrangements currently exist with the affiliate to advance or loan funds to the Company. In the event the Company is unable to acquire sufficient funds, the Company’s ongoing operations will be negatively impacted and it may not be able to continue as a going concern. These financial statements have been prepared on the basis that the Company will realize its assets and discharge its liabilities in the normal course of business. The financial statements do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

~~The~~5. ~~significant~~COMMON ~~components of the Company’s deferred tax assets at September 30, 2008 are summarized as follows~~STOCK:

Deferred tax asset:	2008			2007
Start-up costs	$	-		$	-
Net operating loss carry forward		1,356,000			1,200,000
Less valuation allowance		(1,356,000	)		(1,200,000	)
Income tax benefit	$	-		$	-

During the three months ended September 30, 2009, the Company issued 750,000 shares to Brazil Asset Management valued at $52,500 for a additional 12.5% ownership interest in that company, increasing the Company’s ownership to 25%. The Company also issued 750,000 shares valued at $52,500 to Ameribras for consulting services. The Company issued 971,469 shares to Sabine Operating Services in payment for $68,004 in accounts payable owed by the Company. The Company also issued 500,000 shares valued at $40,000 to Ameribras increasing the Company’s ownership interest to 25%. Additional issuances included 250,000 shares valued at $20,000 to Hilton Research, Inc. for consulting services and 1,500,000 shares valued at $75,000 for acquisition of working interest in the Ownbey Nueces wells. 16,667 shares were sold to an investor for $1,000.

AtDuring ~~September~~the three months ended June 30, ~~2008~~2009, the Company ~~had~~issued ~~approximately $3~~500,~~999,~~000 ofshares ~~estimated~~for ~~net~~consulting ~~operating~~services ~~losses~~valued ~~available~~at to$11,000 ~~offset~~and ~~future~~250,000 ~~taxable~~shares ~~income. These~~valued ~~carry~~at ~~forwards~~$5,500 ~~expire~~for ~~between~~a ~~the years 2018 and 2028~~12. ~~There~~5% ~~are~~interest noin ~~deferred tax liabilities~~ThorGeoTrack.

~~NOTE~~During 7the -three ~~RELATED~~months ~~PARTY~~ended ~~TRANSACTIONS~~March 31, 2009 the Company authorized the issuance of 500,000 shares valued at $40,000 as payment for a 12.5% interest in Ameribras Energy. The shares were not issued until August of 2009.

~~Sabine~~During ~~Operating~~the ~~Services,~~three ~~Inc.~~months ~~(Sabine)~~ended aDecember ~~company~~31, ~~controlled~~2008, by the Company’s ~~president~~issued is250,000 ~~the~~shares ~~operator~~ of ~~record~~common stock for ~~all~~cash of ~~its oil and gas properties located in Kansas~~$10,000. ~~Consequently~~An ~~all~~additional ~~lease operating expense and all charges relating to the properties are originated by Sabine. During the fiscal year ending September 30~~1, ~~2008 and 2007 the Company paid Sabine $26~~750,~~660~~000 ~~and~~shares ~~$76,653~~were ~~respectively~~issued for ~~lease~~services ~~operating~~valued ~~expenses. The Company is satisfied that Sabine’s charges are based on industry standards and are~~ at ~~most equivalent to those that would be charged by third-party unrelated operators. The Company’s related parties are Sabine Operating Services~~$70, ~~Inc.~~000, ~~M. H. McIlvain,~~ and ~~Striker One Resources~~4, ~~Inc.~~500,000 ~~owned~~shares bywere ~~Hugh~~issued ~~Fowler. These parties’ transactions are shown on the balance sheet~~ as ~~“Advances~~compensation ~~from~~valued ~~related~~at ~~parties.” At September 30, 2008 the Company had a payable to Sabine of~~ $31180,~~799 and a payable to Striker One Resources, Inc~~000. ~~of $9,052.~~

F-1126-

~~On September 29, 2006 the Company entered into a farmout agreement with Sabine Operating Services, Inc~~6., aASSET company controlled by Fred Oden, the Company’s president. This agreement allows Sabine to seek funds and investors to begin the development and exploitation of the Ownbey and Troyer leases located in Chautauqua County, Kansas. The Company had sought investors for this project without success, but Sabine has provided the Company assurances that they will be able to provide investors and industry partners who can assist in the development of the leases. The Company will receive a carried twenty-five per cent working interest in all except four wells to be drilled in which the Company will receive a twelve and one-half per cent carried working interest. The Company believed that activity on the leases was extremely important and did not feel the necessity to receive any compensation for the farmout agreement other than the increased activity and development of the leases.IMPAIRMENT:

~~During~~The Company has adopted Statement of Financial Accounting Standards (SFAS) No. 144, “Accounting for the ~~year~~Impairment ~~ended~~or ~~September~~Disposal 30of Long-Lived Assets” and periodically evaluates, ~~2007~~using independent appraisals and projected undiscounted cash flows, the ~~Company~~carrying ~~issued~~value ~~580~~of its long-lived assets and proved oil and gas properties whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In addition,~~845~~ ~~shares~~long-lived assets to be disposed of ~~common~~are ~~stock~~reported asat ~~payment~~the ~~for~~lower ~~payables~~of carrying value or fair value less cost to ~~related~~sell. ~~parties~~Fair asvalues ~~follows:~~used for impairment identification are based on discounted cash flow amounts determined by the reserve reports.

	Shares		Value
Sabine Operating Services, Inc.		476,854	$	47,685
Striker One Resources, Inc.		83,119		8,312
M. H. McIlvain		20,872		2,087
		580,845	$	58,084

During the quarter ended March 31, 2009, the Company determined that the Noll lease shown on the balance sheet as “Unproved oil and gas properties” was a non-producing asset and was 100% impaired.

~~NOTE~~7. 8INVESTMENT -AND ~~LEASE~~CONSULTING ~~OBLIGATION~~AGREEMENTS:

~~The~~On October 7, 2009, the Company isentered ~~obligated~~into ~~for~~consulting ~~$76,800~~agreements ~~under~~with anSkyberCorp ~~operating~~do ~~lease~~Brasil Telematica ~~agreement~~LTDA, ~~for~~dba ~~rent~~Ameribras ofEnergy ~~its~~and ~~office~~Brazil ~~space~~Asset inManagement ~~Dallas,~~Projectos ~~Texas. The~~Limitada ~~term~~to ofprovide ~~the~~management ~~lease~~and isconsulting ~~from~~services ~~February~~effective January 1, 2009. Payments ~~through~~of ~~January~~$450,000 31and $300,000 ~~2012. The~~per ~~average~~quarter ~~monthly~~are ~~base~~due ~~lease~~in a balloon payment ~~over~~on ~~the~~or ~~remaining~~before ~~term~~January of1, ~~the~~2011 ~~lease~~or isin ~~approximately~~quarterly ~~$2,260~~installments when adequate funding is available. The ~~base~~revenue ~~lease~~has ~~payment~~been ~~for~~accrued ~~the~~as ~~current~~non ~~fiscal~~operating ~~year~~income isin ~~$23,200. Following~~the isaccompanying financial statements; however, a ~~schedule~~100 of% ~~base~~reserve ~~lease~~has ~~payments~~been byestablished ~~year:~~due to the potential uncollectibilty of this revenue.

Year	Amount
2009	$	22,000
2010	$	25,100
2011	$	27,400
2012	$	2,300
	$	76,800

In March of 2009, the Company authorized the issuance of 500,000 shares of common stock valued at $40,000 to purchase a 12.5% interest in Ameribras Energy. The ownership has been recognized in these financial statements as of the effective date of the consulting contract and the subsequent issuance of the common stock. The common stock utilized for purchase of the 12.5% interest in Ameribras Energy was not issued until August of 2009 as the Company and Ameribras Energy were negotiating the final details of the consulting contract and did not have a final agreement until August.

~~Rent~~In ~~expense~~June ~~for~~of ~~fiscal~~2009, ~~years~~the ~~2008~~Company ~~and~~issued ~~2007~~250,000 ~~was~~shares of common stock valued at $205,~~425~~500 to purchase a 12.5% interest in ThorGeoTrack. ThorGeoTrack and ~~$13,275,~~Ameribras ~~respectively~~Energy are both owned and managed by Jim Rowton. Jim Rowton is also a stockholder of the Company.

~~NOTE~~8. 9DISCOUNTED –NOTES ~~SUBSEQUENT EVENTS~~PAYABLE

InDuring ~~December~~the ofquarter ~~2008~~ended June 30, 2009, the Company ~~sold~~issued ~~250,000~~five notes payable with a face value of ~~its~~$350,000 ~~common~~in ~~shares~~exchange for cash of $10120,000 toreceived anby ~~investor~~the Company and 6$30,~~250~~000 remitted directly to Ameribras Energy. The $200,000 ~~shares~~discount ~~were~~will ~~issued~~be ~~for~~amortized ~~consulting~~over ~~services~~the ~~valued~~life of the notes. Each note included the option to acquire 500,000 shares of the Company’s common stock at $~~218,750~~0.10 per share. The fair value of these options granted, estimated on the date of grant, was $0, using the Black-Scholes option-pricing model with the following assumptions:

Expected option life (years)	1.00
Expected volatility	75.00	%
Risk-free interest rate	0.50	%
Dividend yield	0.00	%

In March of 2009 the Company issued 500,000 shares to Ameribras valued at $40,000 for an interest in that company.

~~F-12~~At the maturity date of each note and subsequent to the date of these financial statements, the Company negotiated the settlement and repayment of each note for 500,000 shares of the Company’s common stock (Note 7).

InThe ~~June of 2009 the~~ Company ~~issued~~advanced ~~500~~$112,~~000~~710 ~~shares~~of tothe ~~Pat~~proceeds ~~Wilson~~of ~~valued~~these atnotes and $1130,000 ~~for~~was ~~consulting~~remitted ~~services,~~directly ~~and 250,000 shares valued at $5,500~~ to ~~ThorGeoTrack~~Ameribras ~~for an interest in that company~~Energy. ~~Also~~Since ~~in June of 2009~~ the Company ~~entered~~owns ~~into~~12.5% anof ~~agreement with an investor agreeing to pay $40~~Ameribras,~~000~~ inthe ~~one~~transaction ~~year~~has inbeen ~~return~~accounted for ~~the~~as ~~investment~~an ofaccount ~~$25,000~~receivable related party. ~~This~~Due ~~note~~to ~~was satisfied in June of 2010 by~~ the ~~issuance~~uncertainty of ~~500,000~~collection ~~shares~~ of ~~the~~these ~~Company’s~~advances ~~common~~($142,710) ~~stock. The investor received~~ a ~~one~~reserve ~~year~~for ~~option~~collectibility tohas ~~acquire~~been ~~500,000~~established ~~shares~~for of the ~~Company’s~~related ~~common~~party ~~stock~~accounts ~~for a payment of $0~~receivable.~~10 per share.~~

InThe ~~August of 2009 the~~ Company ~~issued~~conducts ~~971,469~~substantial ~~shares~~transactions towith ~~Sabine~~related ~~Operating~~parties. ~~Services~~These inrelated ~~payment~~party oftransactions ~~$68,003~~have ina ~~payables~~significant toimpact ~~Sabine. The~~on ~~Company~~the ~~also~~financial ~~issued~~condition ~~500,000~~and ~~shares~~operations toof ~~AmeriBras valued at $40,000 increasing~~ the Company~~’s interest in that company~~. ~~The~~ ~~Company~~If ~~issued~~these ~~250,000~~transactions ~~shares~~were toconducted ~~Hilton~~with ~~Research,~~third ~~Inc. valued at $20~~parties,~~000~~ ~~for~~the ~~consulting~~financial ~~services. The~~condition ~~Company~~and ~~also~~operations ~~issued 1,500,000 shares valued at $75,000 for acquisition~~ of anthe ~~interest~~Company incould ~~the~~be ~~Ownbey~~materially ~~Nueces wells~~affected.

In10. ~~September~~COMMITMENTS ofAND ~~2009 the Company issued 16,667 shares to an investor for $1,000 cash.~~CONTINGENCIES:

Ina. ~~September~~We maintain our corporate offices at 1301 Custer Road #352-1009, , Plano, Texas 75075, and do not pay a monthly base rental .Our lease runs from February 1, 2009 through January 31, 2012 at a cost of approximately $76,800. As of September 30, 2009 the Company’s ~~wrote~~continuing ~~off~~obligation under the ~~Noll~~base lease asis aapproximately ~~dry hole~~$60,800.


Year	Amount
2010		24,800
2011		26,800
2012		9,200

	$	60,800

Rent expense for fiscal years 2009 and 2008 was $22,000 and $20,425, respectively.

11. STOCK BASED COMPENSATION:

During the year ended September 30, 2009, the Company issued stock based compensation valued at $180,000 to officers and directors and an additional stock was issued for services valued at $172,500. In December 2004 FASB issued Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment” (“SFAS 123(R)”) which requires companies to recognize in the statement of operations all share-based payments to employees or other parties, including grants of employee stock options based on their fair values. The Company has not granted any options to employees in the past two fiscal years, but has issued options to certain unrelated parties. (See Note 5)

The following table lists the options outstanding at June 30, 2009.

Grantee	Date of Grant	Exp. Date	Price		# Shares
Pinnacle Consulting Group, Inc.	8/10/2007	1/10/2012	$	0.10		100,000
Pinnacle Consulting Group, Inc.	8/10/2007	1/10/2012	$	0.15		100,000
John R. Pratt	5/13/2009	5/12/2010	$	0.10		500,000
Robert Guzman	6/15/2009	6/14/2010	$	0.10		500,000
Robert Guzman	7/15/2009	7/14/2010	$	0.10		500,000
Robert Guzman	9/8/2009	9/7/2010	$	0.10		500,000
Robert Guzman	9/24/2009	9/24/2010	$	0.10		500,000
Total options outstanding at 09/30/2009						2,700,000

-28-

The Pinnacle Consulting Group outstanding options were purchased by the holders as part of their purchase of restricted common shares on or about the issue date of the options. The Pratt and Guzman options were issued as a part of the discounted notes payable on or about the issue date of the options (Note 6). All of the above options expired unexercised subsequent to September 30, 2009.

12. OIL AND GAS PROPERTIES IMPAIRMENT LOSSES:

The Company recorded an impairment loss of $187,186 for the year ended September 30, 2009. The Company recorded an impairment loss of $34,789 for the year ended September 30, 2008. The impairment loss relates to properties in Kansas. The impairment losses were determined by comparing the future undiscounted net cash flows to the Company’s net book value.

13. NON-CONTROLLING INTEREST IN CONSOLIDATED SUBSIDIARY

none

14. SALES OF OIL AND GAS PROPERTIES:

none

15. INCOME TAXES:

The Company computes income taxes using the asset and liability approach. The Company currently has no issue that creates timing differences that would mandate deferred tax expense. Due to the uncertainty as to the utilization of net operating loss carryforwards, a evaluation allowance has been made to the extent of any tax benefit that net operating losses may generate. No provision for income taxes has been recorded for the twelve months ended September 30, 2009 due to the Company’s net operating loss carryforward from 2008.

At September 30, 2009 and 2008, we have net operating loss carryforwards of approximately $5.9 million and $5.0 million , respectively, remaining for federal income tax purposes. Net operating loss carryforwards may be used in future years to offset taxable income.

The following is a reconciliation of statutory tax expense to our income tax provision:


	September 30,
	2009			2008
Statutory rate		35	%		35	%
Change in valuation allowance		-35	%		-35	%

Tax provision		0	%		0	%

-29-

Deferred Income Taxes

Deferred income taxes primarily represent the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of our deferred taxes are as follows:


	Septemberr 30,
	2009			2008
Deferred tax assets:
Net operating loss carryforward	$	3,385,000		$	3,270,000
Oil and gas properties		49,000			100,000
Cash/accrual method differences		61,000			97,000
Total deferred tax assets		3,495,000			3,467,000

Valuation allowance		(3,495,000	)		(3,467,000	)

Total net deferred tax assets	$	—		$	—

The Company uses the cash method for income tax reporting purposes and has filed no tax returns since 1998. There are no taxes due because the Company has sustained operating losses for all periods related to the unfiled returns.

16. SUBSEQUENT EVENTS:

In October of 2009 the Company issued 250,000 shares to Scott Duperow valued at $15,000 for consulting services.

In November of 2009 the Company ~~issued~~authorized 12,500 shares valued at $1,000 for payment of interest on long term debt. The shares were issued in April of 2010.

In December of 2009 the Company issued 200,000 shares valued at $14,000 to Princeton Research of Nevada for consulting services.

In December of 2009 the Company entered into an agreement with an investor agreeing to pay $34134,000 in one year in return for the investment of $47,500. The investor received a one year option to acquire 625,000 shares of the Company’s common stock for a payment of $0.10 per share.

~~F-13~~ In January of 2010 the Company issued 750,000 shares valued at $37,500 to Brasil Asset Management increasing the Company’s interest in that company to 25%. The Company issued 500,000 shares to Robert Guzman for cash of $15,000. The Company issued 500,000 shares to Pat Wilson valued at $17,500 for consulting services. The Company issued 31,250 shares valued at $2,500 for payment of interest on long term debt.

In July of 2010 the Company authorized the issuance of 52,500 shares valued at $2,100 to Striker One Resources as an offset to a payable owed to Striker. As ~~These shares have not been issued as~~ of the date of these ~~financial statements. The Company issued 100~~financials,~~000~~ these shares ~~valued~~have atnot ~~$14,000~~been ~~to Bill Addison for the acquisition of Innovative Weaponry, Inc~~issued.

F-The Company issued 100,000 shares valued at $14,000 to Bill Addison for the acquisition of Innovative Weaponry, Inc.

In July of 2010 the Company entered into an agreement with an investor agreeing to pay $25,000 in one year in return for the investment of $10,000. The investor received a one year option to acquire 700,000 shares of the Company’s common stock for a payment of $0.10 per share.

In August of 2010 the Company entered into an agreement with an investor agreeing to pay $60,000 in one year in return for the investment of $20,000. The investor received a one year option to acquire 600,000 shares of the Company’s common stock for a payment of $0.10 per share. Also in August the Company entered into an agreement with an investor agreeing to pay $23,750 in one year in return for the investment of $11,660. In August of 2010 the Company issued 40,000 shares in exchange for $2,160 from an investor.

On September 1, 2010 the Company issued 125,000 common shares to Thor Geo Trak for an additional 12.5 % interest in that company, bring the Company’s total interest to 25%.

In September of 2010 the Company entered into an agreement with an investor agreeing to pay $120,000 in one year in return for the investment of $40,000. The investor received a one year option to acquire 1,200,000 shares of the Company’s common stock for a payment of $0.10 per share.

~~The~~From ~~following~~October ~~table~~2010 ~~summarizes~~through byJanuary ~~category~~2011, the ~~foregoing~~Company ~~issuances~~entered into an agreement with an investor agreeing to pay $500,000 in one year in return from the date of ~~shares~~the investment of $135,000. The ~~options~~investor ~~and~~received a ~~warrants~~one ~~subsequent~~year option to acquire 4,200,000 shares of the ~~balance~~Company’s ~~sheet~~common ~~date:~~stock for a payment of $0.10 per share.

Category	Shares		Options		Warrants
Cash		1,790,001
Debt issuance				8,483,334		500,000
Debt settlement		1,000,000
Interest payment		43,750
Services		11,774,994
Equity investments		3,725,000
Ownbey lease acquisitions		1,950,000
Compensation		27,158,969
Total		47,442,714		8,483,334		500,000

On December 1, 2010 the Company bought 37.5% working interest in the Ownbey #1 and #3 wells located in Chautauqua County Kansas in exchange for 500,000 shares of the Company’s common stock. Also on this date, the Company bought a 67.5% working interest in the Ownbey #9 and #10 wells on the same lease by issuing 1,026,939 Common Shares.

~~NOTE~~From ~~10: DISCLOSURES~~February ~~REGARDING~~2011 ~~OIL~~through ~~AND~~April ~~GAS~~2011 ~~PRODUCING~~the ~~ACTIVITIES~~Company ~~(UNAUDITED)~~received $20,500 from investors for the issuance of 726,190 common shares.

~~Oil~~On ~~and~~May ~~Gas~~5,2011 ~~Estimates~~the ~~and~~Company ~~Producing~~issued ~~Activity~~140,000 common shares to Scott Duperow for consulting services.

~~The~~On ~~following~~May ~~table~~11, ~~sets~~2011, ~~forth~~the ~~information~~Company aswas toserved ~~the~~an ~~net~~Order ~~proved~~instituting ~~and~~Administrative ~~proved~~Proceeding ~~developed~~and ~~reserves~~Notice as of ~~September~~Hearing ~~30,~~from ~~2008.~~the ~~“Proved~~Securities ~~reserves”~~and ~~are~~Exchange ~~estimated~~Commission. At ~~quantities~~this ~~of crude oil~~time, ~~natural~~the ~~gas,~~SEC ~~and~~suspended ~~natural~~the ~~gas~~Company’s ~~liquids~~trading ~~that geological~~ and ~~engineering~~the ~~data~~Company ~~demonstrate~~was ~~with~~removed ~~reasonable~~from ~~certainty~~yield statuss to besuspension. This ~~recoverable~~Administrative inHearing ~~future~~was ~~years~~filed ~~from~~because ~~known~~the ~~reservoirs~~Company ~~under~~was ~~existing~~late ~~economic~~filing quarterly and ~~operating~~annual ~~conditions~~reports. Motions ~~“Proved~~and ~~developed~~Briefs ~~reserves”~~have ~~are~~been ~~those~~filed ~~reserves~~by ~~that~~both ~~are~~sides ~~expected~~and tothere beis ~~recovered~~a ~~through~~telephonic ~~existing~~pre-hearing ~~wells~~conference with ~~existing~~the ~~equipment~~Administrative ~~and~~Law ~~operating~~Judge ~~methods.~~scheduled ~~“Proved~~for ~~undeveloped~~August ~~reserves”~~12, ~~are~~2011. At ~~those~~the ~~reserves~~August ~~that~~12, ~~are~~2011 ~~expected~~pre-hearing toconference, bethe ~~recovered~~Administrative ~~from~~Law ~~new~~Judge ~~wells~~directed onthe ~~un-drilled~~Company ~~acreage~~to orfile ~~from~~the ~~existing~~September ~~wells~~30, ~~where~~2009 aForm ~~relatively~~10-K ~~major~~annual ~~expenditure~~report isno ~~required~~later ~~for~~than ~~re-completion~~August 17, 2011.

The ~~following~~company ~~table~~is ~~also~~working ~~shows~~diligently ~~present~~to ~~value~~get ofall ~~the reserves as~~ of ~~September~~its ~~30,~~filings ~~2008, (based on an annual discount rate of 10 percent) of the estimated future net revenues from the production and sales of the reserves~~completed. Even ~~The~~though ~~future prices received on sales of production from~~ the ~~properties~~Company may becomplete ~~higher~~all ~~or lower than the prices used in calculating the estimates~~ of ~~future~~its ~~net~~delinquent ~~revenues~~filings, ~~and~~ the ~~operating~~Administrative ~~costs~~Law ~~and~~Judge ~~other~~may ~~costs~~still ~~relating~~decide to ~~such~~revoke ~~production may also increase or decrease from existing levels. An independent petroleum engineer provided~~ the ~~study~~registration of ~~reserves~~each ~~and~~class ~~cash~~of ~~flows~~security ~~for~~that ~~the~~is ~~Lindley~~traded ~~and Ownbey leases. The previous year included both the independent petroleum engineer’s report~~ on ~~the~~behalf ~~Lindley~~of ~~and management’s estimates for~~ the ~~Ownbey.~~Company

~~F-15~~In the month of July 2011. the Company received $20,000 from investors for the issuance of 1,000,000 common shares.

	2008			2007
Total Proved Reserves:
Oil, condensate and natural gas liquids (Bbls)		9,320			5,320
Natural gas (Mcf)		-			-
Total Proved Developed Reserves:
Oil, condensate and natural gas liquids (Bbls)		9,320			5,320
Natural gas (Mcf)		-			-
Future cash flows	$	903,940			416,550
Future production costs		(362,480	)		(140,600	)
Future development costs		-			-
Future asset retirement costs		-			-
Future income tax expense		(65,381	)		(33,320	)
Future net cash flows		476,079			242,630
10% annual discount		57,379			64,250
Standardized measure of discounted future net
cash flows related to proved oil and gas reserves	$	418,700		$	178,380

The following table illustrates the foregoing common stock transactions since the date of these financial statements:

Future net cash flows were computed using year-end prices and year-end quantities of proved reserves. Future price changes were not considered. Estimated future development and production costs are determined by estimating the expenditures to be incurred in developing and producing the proved oil and gas reserves at the end of the year, based on year-end costs and assuming continuation of existing economic conditions. Estimated future income tax expense is calculated by applying year-end statutory tax rates (adjusted for permanent differences and tax credits) to estimated future pretax net cash flows related to proved oil and gas reserves, less the tax basis of the properties involved.

Category	Shares		Options		Warrants
Cash		3,249,523
Debt Issuance				7,483,334		500,000
Debt Settlement		1,000,000
Interest Payment		43,751
Services		10,106,025
Investments		1,422,500
Ownbey Lease Acquisitions		1,976,939
Compensation		21,048,969
Total		38,847,707		7,483,334		500,000

These estimates are furnished and calculated in accordance with requirements of the Financial Accounting Standards Board and the Securities and Exchange Commission. Actual results may vary substantially. There are numerous uncertainties inherent in estimating quantities of proved reserves and in projecting future rates of production and the timing of development expenditures, including many factors beyond the control of the producer. The reserve data set forth herein only represents estimates. Reserve engineering is a subjective process of estimating underground accumulations of oil and gas that cannot be measured in an exact way and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment and the existence of development plans. Results of drilling, testing and production subsequent to the date of an estimate may justify a revision of such estimate. Accordingly, reserve estimates are generally different from the quantities of oil and gas that are ultimately produced. Further, the estimated future net revenues from proved reserves and the present value thereof are based upon certain assumptions, including geological success, prices, future production levels, operating costs, development costs and income taxes that may not prove to be correct. Predictions about prices and future production levels are subject to great uncertainty, and the meaningfulness of these estimates depends on the accuracy of the assumptions upon which they are based.-32-

F-16

13. SUPPLEMENTARY DISCLOSURE AND OIL AND GAS INFORMATION -UNAUDITED:
Results of operations for oil and gas producing activities are as follows:

	For The Year Ended Nov. 30,
	2009			2008
Oil and gas sales	$	51,726		$	286,605
Production costs		67,672	)		236,980	)
Depreciation, depletion, amortization and accretion		8,068	)		39,497	)
Impairment of oil and gas properties		—			62,086	)

		24,014	)		51,958	)
Income tax benefit		—			—

Results of Operations Excluding Selling, General and Administrative and Joint Venture Activities	$	(24,014	)	$	51,958	)

Capitalized costs relating to oil and gas producing activities are as follows:

Reserve estimates are presented in the Supplementary Information Regarding Oil and Gas Production Activities accompanying the financial statements included herein. Reserve estimates for 2008 and 2007, were prepared by an independent engineering firm. Original reserve estimates used for depletion purposes and for the Ownbey/Troyer lease (which are not listed above due to the short time they have been in production) were made using internal estimates by the Company.

	November 30,
	2009			2008
Property (acreage costs) — Proved	$	116,514		$	165,926
Producing assets		402,025			581,647

		518,539			747,573
Less: depreciation depletion and amortization		(468,948	)		(,954	)

Net Capitalized Costs	$	49,591		$	57,619

~~Oil and Gas Reserves~~-33-

~~The~~Oil ~~process~~and ofGas ~~estimating~~Reserve ~~quantities~~Quantities ofAn ~~oil~~independent ~~and~~petroleum ~~gas~~engineer ~~reserves~~determined isestimated ~~complex,~~reserves ~~requiring~~and ~~significant~~related ~~decisions~~valuations infor the ~~evaluation~~Chautauqua ~~of all available geological~~County, ~~geophysical,~~Kansas ~~engineering~~properties. ~~and~~Estimates ~~economic~~of ~~data.~~proved ~~The~~reserves ~~data~~are ~~for~~inherently aimprecise ~~given~~and ~~field~~are ~~may~~subject ~~also~~to ~~change~~revisions ~~substantially~~based ~~over~~on ~~time~~production ashistory, aresults ~~result~~ of ~~numerous~~additional ~~factors~~exploration ~~including,~~and ~~but~~development ~~not~~and ~~limited~~other ~~to,~~factors. ~~additional~~Proved ~~development~~reserves ~~activity,~~are ~~evolving~~reserves ~~production~~judged ~~history~~to ~~and~~be ~~continual~~economically ~~reassessment~~producible ofin ~~the~~future ~~viability~~years offrom ~~production~~known reservoirs under ~~varying~~existing economic and operating conditions. AsProven adeveloped ~~result,~~reserves ~~material~~are ~~revisions~~expected to ~~existing~~be ~~reserve~~recovered ~~estimates~~through ~~may~~existing ~~occur~~wells, ~~from~~equipment ~~time~~and tooperating ~~time~~methods. ~~Although~~ ~~every~~The ~~reasonable~~Company ~~effort~~has isvarying ~~made~~interests in the wells and does not have access to ~~ensure~~sufficient ~~that~~data ~~reserve~~to ~~estimates~~prepare ~~reported~~an ~~represent~~engineering report. The Company believes that the ~~most~~reserve ~~accurate~~quantities ~~assessments~~would ~~possible,~~not materially affect the ~~subjective~~Company’s ~~decisions~~total estimated reserves and ~~variances~~valuations inat ~~available~~this ~~data~~time. ~~for~~Following ~~various~~is ~~fields~~a ~~make~~summary ~~these~~of ~~estimates~~the ~~generally~~changes ~~less~~in ~~precise~~estimated ~~than~~proved ~~other~~developed ~~estimates~~and ~~included~~undeveloped inoil and gas reserves of the ~~financial~~Company ~~statement~~for ~~disclosures.~~the years ended September 30, 2009 and 2008:

American Resource Technologies, Inc. uses the units-of-production method to depreciate and deplete the capitalized costs of our producing oil and gas properties. Changes in proved developed reserve quantities will cause corresponding changes in depletion expense in periods subsequent to the quantity revision.

	Oil		Gas
	(BBL)		(MCF)
Proved Reserves September 30, 2007	6,420		—
Revisions to previous estimates	(917	)	—
Purchases	—		—
Production	183			(—	)
Sales, transfers and retirements	---		—

Proved Reserves September 30, 2008	5,320		—
Revisions to previous estimates	4,055			(—	)
Purchases	440		—
Production	(495	)		(—	)
Sales, transfers and retirements	—		—

Proved Reserves September 30, 2009	9,320		—

~~The~~Standardized ~~following~~Measure ~~supplemental oil and gas information is provided in accordance with Statement~~ of ~~Financial~~Discounted ~~Accounting~~Cash ~~Standards~~Flows ~~No.~~Relating 69to “Proved ~~Disclosures about~~ Oil and Gas ~~Producing Activities (SFAS 69). The Company has properties in the United States.~~Reserves

Capitalized Costs Relating to Oil and Gas Producing Activities at September 30, 2008 and 2007
	2008		2007
Unproved oil and gas properties	$	42,000	$	-
Proved oil and gas properties		275,554		254,304
Gas pipeline		-		34,789
		317,554		289,093
Less accumulated depreciation,
depletion, and amortization		24,458		10,993
Net capitalized cost	$	293,096	$	278,100

The Financial Accounting Standards Board (FASB) prescribes guidelines for computing a standardized measure of future net cash flows relating to estimated proven reserves. The Company has followed these guidelines, which are briefly discussed in the following paragraph.

~~All~~Future cash inflows and future production and development costs were determined by applying the unweighted arithmetic 12 month average within the year 2009. For 2008 we applied year-end prices and costs to the estimated quantities of oil and gas to be produced. Estimated future income taxes, if any, are computed by using statutory rates including consideration for previously legislated future statutory depletion rates. The resulting future net cash flows are reduced to present value amount by applying a 10% annual discount factor. The assumptions used to compute the standardized measure are those prescribed by the FASB and, as such, do not necessarily reflect the Company’s expectations of actual revenues to be derived from those reserves ~~are~~or ~~located~~their ~~within~~present worth. The limitations inherent in the ~~United~~reserve ~~States. No~~quantity ~~estimates~~estimation ofprocess, ~~reserves~~as ~~have~~discussed ~~been~~previously ~~reported~~are equally applicable to orthe ~~filed~~standardized ~~with~~measure ~~any~~computations ~~other~~since ~~Federal~~these ~~authority~~estimates orare ~~agency~~the ~~during~~basis for the ~~year~~valuation ~~presented~~process.

~~Costs Incurred in Oil and Gas Producing Activities for the Year Ended September 30, 2008 and 2007~~-34-

Costs incurred in oil and gas producing activities
	2008		2007		2006		2005
Property acquisition costs:
Proved	$	21,250	$	95,000	$	159,304	$	-
Unproved	$	42,000	$	-	$	-	$	254,304
Exploration costs
Development costs

Presented below is the standardized measure of discounted future net cash flows relating to proved oil and gas reserves as of September 30, 2009 and 2008.

F-17


	September 30,
	2009			2008
Future cash inflows	$	324,250		$	903,940
Future production costs		(109,510	)		(362,480	)

Future net cash flows		213,540			541,460
10% annual discount for estimated timing of cash flows		(38,500	)		(57,379	)

Standardized measure of discounted future net cash	$	175,040		$	484,081


Standardized measure of discounted future net cash flows, beginning of year	$	484,081		$	139,799

Sales of oil and gas produced, net of production costs		(171,484	)		17,618
Net changes in prices and production costs		26,696			21,250
Revisions to previous quantity estimates		(1,389	)		6,642
Net change from sales, transfers and disposals of minerals in place		—			4,212
Accretion of discount		164,253			169,391
Net change in income taxes		—			—
Other — prior period adjustment					—



Standardized measure of discounted future net cash flows, end of year	$	175,040		$	352,270

Results of Operations for Oil and Gas Producing Activities For the Year Ended September 30, 2008 and 2007
	2008			2007
Oil and gas sales	$	46,838		$	18,550
Production costs		(29,220	)		(76,652	)
Depreciation, depletion and amortization		(13,464	)		(7,681	)
Results of operations for oil and gas producing activities	$	6,162		$	(63,776	)
(excluding corporate overhead and financing costs)

-35-

~~Reserve~~Quarterly ~~Information~~Financial Data (Unaudited)

~~The~~Results ~~following estimates~~ of ~~proved~~operations and ~~proved developed reserve quantities and related standardized measure of discounted~~ net ~~cash~~income ~~flows~~ (loss) are ~~estimates~~presented only, and do not purport to reflect realizable values or fair market values of the Company’s reserves. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of producing oil and gas properties. Accordingly, these estimates are expected to change as future information becomes available. All of the Company’s reserves are located in the ~~United~~following ~~States.~~table:

Proved reserves are estimated reserves of crude oil (including condensate and natural gas liquids) and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those expected to be recovered through existing wells, equipment, and operating methods.


									Net Income
									(Loss)
									Per Share
	Total		Operating			Net			Basic &
	Revenues		Income (Loss) 1			Income (Loss)			Diluted
2009
lst Quarter	$	10,146	$	(266,768	)	$	(273,153	)	$	(0.00	)
2nd Quarter		1,224		(53,360	)		(57,039	)		(0.00	)
3rd Quarter		1,219		(64,492	)		(64,492	)		(0.00	)
4th Quarter		3,148		(319,994	)		(309,930	)		(0.00	)


Total	$	15,737	$	(704,614	)	$	(704,614	)	$	(0.00	)


2008
lst Quarter	$	17,089	$	(127,791	)	$	(124,261	)	$	(0.00	)
2nd Quarter		4,116		(108,561	)		(104,445	)		(0.00	)
3rd Quarter		8,366		(62,660	)		(62,660	)		(0.00	)
4th Quarter		17,267		(167,382	)		(168,314	)		(0.00	)


Total	$	46,838	$	466,394		$	459,680		$	0.00

~~The~~1 ~~standardized~~Operating ~~measure~~income ~~of discounted future net cash flows~~ is ~~computed by applying year-end prices of~~ oil and gas ~~(with~~sales ~~consideration~~less ~~of price changes only to the extent provided by contractual arrangements) to the estimated future production of proved~~ oil and gas ~~reserves,~~production ~~less estimated future expenditures (based on year-end~~ costs), todepreciation, bedepletion ~~incurred in developing~~ and ~~producing~~amortization, ~~the proved reserves~~selling, ~~less~~general ~~estimated~~and ~~future~~administrative ~~income tax~~ expenses ~~(based~~and ongain ~~year-end statutory rates, with consideration of future tax rates already legislated) to be incurred~~ on ~~pretax~~sale ~~net cash flows less the tax basis~~ of ~~the~~ properties ~~and available credits, and assuming continuation of existing economic conditions~~. ~~The estimated future net cash flows are then discounted using a rate of ten percent a year to reflect the estimated timing of the future cash flows.~~

	2008					2007
	Oil (bbls)			Gas (Mcf)		Oil (bbls)			Gas (Mcf)
Proved Developed and Undeveloped Reserves
Beginning of year		5,320			-		6,420			-
Revisions of previous estimates		4,055			-		(917	)		-
Purchases of minerals in place		440			-		-			-
Production		(495	)		-		183			-
End of year		9,320			-		5,320			-
Proved developed reserves
Beginning of year		5,320			-		6,420			-
End of year		9,320			-		5,320			-

-36-

~~F-18~~Item 9. Changes In and Disagreements with Accountants and Financial Disclosure.

~~Standardized Measure of Discounted Future Net Cash Flows at September 30, 2008 and 2007.~~NONE

Standardized Measure
	2008			2007
Future cash inflows	$	903,940		$	814,404
Future production costs		(362,480	)		(213,800	)
Future development costs		-			-
Future asset retirement obligations		-			-
Future income tax expenses		(65,381	)		(61,169	)
		476,079			539,435
Future net cash flows
10% annual discount for estimated timing of cash flows		(57,379	)		(219,233	)
Standardized measures of discounted future net cash flows relating to proved oil and gas reserves	$	418,700		$	320,202

Item 9A (T). Controls and Procedures.

~~The~~Our ~~following~~management ~~reconciles~~evaluated, with the ~~change~~participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the ~~standardized~~Securities ~~measure~~Exchange Act of ~~discounted~~1934, ~~future~~as ~~net~~amended ~~cash~~(the ~~flows~~“Exchange ~~for~~Act”)) as of the ~~years~~end ~~ended~~of ~~September~~the period covered by this annual report on Form 10-K. Based on this evaluation, management has concluded that, as of September 30, 2008, our disclosure controls and ~~2007~~procedures were effective to ensure that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported. Management is currently looking for a professional accounting person to become part of its management team in an effort to provide not only complete but timely reports to the Securities and Exchange Commission as required by its rules and forms.

	2008		2007
Beginning balance, October 1, 2007 and 2006	$	139,799	$	158,243
Sales of oil and gas produced, net of production costs		17,618		(58,102	)
Net change from purchases and sales of minerals in place		21,250		-
Accretion of discount		169,391		39,658
Net change in income taxes		4,212		-
Ending balance, September 30, 2008 and 2007	$	352,270	$	139,799

This Annual Report does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management’s report in this Annual Report.

FLimitations on the Effectiveness of Controls. Our management, including the CEO/CFO, does not expect that its disclosure controls or its internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are 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 the company have been detected. These inherent limitations include the realities that judgments in decision-19making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also 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; over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

Scope of the Controls Evaluation. The CEO/CFO evaluation of our disclosure controls and the company’s internal controls included a review of the controls objectives and design, the controls implementation by the company and the effect of the controls on the information generated for use in this report. In the course of the Controls Evaluation, the CEO and CFO sought to identify data errors, controls problems or acts of fraud and to confirm that appropriate corrective action, including process improvements, were being undertaken. This type of evaluation is be done on a quarterly basis so that the conclusions concerning controls effectiveness can be reported in our quarterly reports on Form 10-QSB and annual report on Form 10-KSB. Our internal controls are also evaluated on an ongoing basis by other personnel in the company’s organization and by our independent auditors in connection with their audit and review activities. The overall goals of these various evaluation activities are to monitor our disclosure controls and our internal controls and to make modifications as necessary; the company’s intent in this regard is that the disclosure controls and the internal controls will be maintained as dynamic systems that change (reflecting improvements and corrections) as conditions warrant.

Among other matters, the company sought in its evaluation to determine whether there were any “significant deficiencies” or “material weaknesses” in our internal controls, or whether we had identified any acts of fraud involving personnel who have a significant role in the our internal controls. This information was important both for the controls evaluation generally and because item 5 in the Section 302 Certifications of the CEO and CFO requires that the CEO and CFO disclose that information to the Audit Committee of our Board and to our independent auditors and report on related matters in this section of the Report. In the professional auditing literature, “significant deficiencies” represent control issues that could have a significant adverse effect on the ability to record, process, summarize and report financial data in the financial statements. A “material weakness” is defined in the auditing literature as a particularly serious significant deficiency where the internal control does not reduce to a relatively low level the risk that misstatements caused by error or fraud may occur in amounts that would be material in relation to the financial statements and not be detected within a timely period by employees in the normal course of performing their assigned functions. We also sought to deal with other controls matters in the controls evaluation, and in each case if a problem was identified, the company considered what revision, improvement and/or correction to make in accordance with the on-going procedures.

Item 9B. Other Information.

Not Applicable.

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PART III

Item 10. Directors, Executive Officers and Corporate Governance.

Our current executive officers and directors, their ages and present positions with American Resource Technologies, Inc. are identified below. Our directors hold office until the annual meeting of the shareholders following their election or appointment and until their successors have been duly elected and qualified. Our officers are elected by and serve at the pleasure of our Board of Directors.

B FRED ODEN is the Chief Executive Officer, President and Director of American Resource Technologies, Inc. since November 15, 2004. Mr. Oden has 30 years experience in the oil and gas industry, ranging from pipeline refinery construction to oil and gas operations. A sociology and law enforcement graduate of Lamar State University, Beaumont, Texas.

M. H. MCILVAIN, is the Executive Vice President and CFO of the company. He has been a Director since 2004. Mr. McIlvain is a graduate of the University of Kansas, Lawrence, Kansas with both a Business Degree and a Masters of Finance Degree. He has more than 30 years experience in the oil and gas industry in Texas, Oklahoma and Kansas.

HUGH FOWLER has been a Vice President and Director of the Company since November 15, 2004. He is a Business Administration Graduate of Stephen F. Austin University, Nacogdoches, Texas and since 1977 has worked in the oil and gas industry, primarily in Southeastern, Kansas.

PATRICIA WILSON has been the Chief Information Officer of the company since 2009. Ms. Wilson is a graduate of the University of Texas at Dallas, She has more than 25 years experience in the public company arena working from Vice President levels all the way up to CEO.

Item 11. Executive Compensation.

Overview

Our executive compensation program is designed to create strong financial incentive for our officers to increase revenues, profits, operating efficiency and returns, which we expect to lead to an increase in shareholder value. Our Board of Directors conduct periodic reviews of the compensation and benefits programs to ensure that they are properly designed to meet corporate objectives, overseeing of the administration of the cash incentive and equity-based plans and developing the compensation program for the executive officers. Our executive compensation program includes five primary elements. Three of the elements are performance oriented and taken together; all constitute a flexible and balanced method of establishing total compensation for our executive officers. The elements are a) base salary, b) annual incentive plan awards, c) stock-based compensation, d) benefits and e) severance/change-in-control compensation.

Role of our Executive Officers in Establishing Compensation

Our Chief Executive Officer provides recommendations to the Board of Directors in its evaluation of our executive officers, including recommendations of individual cash and equity compensation levels for executive officers.

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Summary Compensation Table

The following table sets forth the annual and long-term compensation with respect to the fiscal years ended September 30, 2009 and 2008 paid or accrued by us to or on behalf of the executives officers named:


							Long Term Compensation
							Awards
							Restricted		Securities
			Annual Compensation				Stock		Underlying
Name and Position	Year		Salary ($)		Bonus ($)		Awards ($)		Options (#)
B. Fred Oden		2009		0		—		1,500,000		—
CEO, President & Director		2008		0		—		—		—

Mike McIlvain		2009		0		—		1,500,000		—
Exec VP, CFO & Director		2008		0		—		—		—

Hugh Fowler		2009		0		—		1,500,000		----
Secretary-Treasurer & Director		2008		—		—		---		---

Option Grants in the Last Fiscal Year

There were no options granted to the executive officers in fiscal years 2009 and 2008.

Employment Agreements

None

Compensation of Directors

None

Compensation Committee

We currently do not have a compensation committee of the Board of Directors. The Board of Directors as a whole determines executive compensation.

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Compensation Philosophy and Objectives

The following objectives guide the Board of Directors in its deliberations regarding executive compensation matters:

	•		Provide a competitive compensation program that enables us to retain key executives;

	•		Ensure a strong relationship between our performance results and those of our segments and the total compensation received by an individual;

	•		Balance annual and longer term performance objectives;

	•		Encourage executives to acquire and retain meaningful levels of common shares; and

	•		Work closely with the Chief Executive Officer to ensure that the compensation program supports our objectives and culture.

We believe that the overall compensation of executives should be competitive with the market in which we compete for executive talent. This market consists of both the oil and gas exploration industry and oil and gas service-based industries in which we compete for executive talent. In determining the proper amount for each compensation element, we review publicly available compensation data, as well as the compensation targets for comparable positions at similar corporations within these industries. We also consider the need to maintain levels of compensation that are fair among our executive officers given differences in their respective responsibilities, levels of accountability and decision authority.

Termination of Employment and Change of Control Arrangement

There is no compensatory plan or arrangement with respect to any individual named above which results or will result from the resignation, retirement or any other termination of employment with us, or from a change in our control.

ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following table sets forth the stock ownership of the officers, directors and shareholders holding more than 5% of the common stock of American Resource Technologies, Inc. as of September 30, 2009:


	NAME AND ADDRESS			PERCENT OF
TITLE OF CLASS	OF OWNER	AMOUNT OWNED		CLASS
Common stock	Eric Oden		1,545,000	5.4	%



Common stock	B. Fred Oden		1,847,050	6.5	%



Common stock	M. H. McIlvain		1,537,560	5.4	%


Common Stock	Hugh Fowler		1,606,281	5.6
All Directors and Officers as a Group			4,990,891	17.50	%

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Item 13. Certain Relationships and Related Transactions and Director Independence.

All of the operations conducted in the field on behalf of our company are conducted by Sabine Operating Services. (Sabine). Our president, Fred Oden, owns 100% of the common stock of Sabine. In the past, no compensation was paid to Sabine or Fred Oden for the ownership of Sabine or for the management activities conducted by Sabine. However, we did pay an administration fee for Sabine to operate our wells. This fee is included in the monthly expenses we received from Sabine.

Item 14. Principal Accounting Fees and Services.

Audit Fees

The aggregate fees billed by our independent auditors, for professional services rendered for the audit of our annual financial statements on Form 10-K and the reviews of the financial reports included in our Quarterly Reports on Form 10-Q for the years ended September 30, 2009 and 2008 amounted to $21,000 and $27,000, respectively.

Tax Fees

No fees were billed by our auditors for professional services in connection with tax compliance, tax advice or tax planning for the years ended September 30, 2009 and 2008.

All Other Fees

No fees were billed by our auditors for products and services other than those described above under “Audit Fees” and “Tax Fees” for the year ended September 30, 2009 and 2008.

Board of Directors Pre-Approval Policies and Procedures

In December 2003, the Board of Directors adopted polices and procedures for pre-approving all audit and non-audit services provided by our independent auditors prior to the engagement of the independent auditors with respect to such services. Under the policy, our independent auditors are prohibited from performing certain non-audit services and are pre-approved to perform certain other non-audit and tax related services provided that the aggregate fees for such pre-approved non-audit and tax related services do not exceed a pre-set minimum.

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PART IV

Item 15. Exhibits, Financial Statement Schedules.

Financial Statement Schedules

The following have been made part of this report and appear in Item 8 above.

Report of Independent Registered Public Accounting Firm

Balance Sheets — September 30, 2009 and 2008

Statements of Operations—

For The Years Ended September 30, 2009 and 2008

Statements of Cash Flows—

For The Years Ended September 30, 2009 and 2008

Notes to Financial Statements

Exhibits


Exhibit Number		Description
31.1		Certification of our President, Chief Executive Officer and Principal Financial Officer, under Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of our President, Chief Executive Officer and Principal Financial Officer, under Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on this 17th day of August, 2011.

AMERICAN RESOURCE TECHNOLOGIES, INC.

		B. Fred Oden, III

SIGNATURE:		/s/ B. Fred Oden, III
President, Chief Executive Officer and Chief Financial Officer

In accordance with the Exchange Act, this report has been signed by the following persons on behalf of the registrant and in the capacities indicated, on this 17th day of August, 2011

B. Fred Oden, III
B.
Signature		Capacity
/s/ B. Fred Oden, III		President, Chief Executive Officer and Chief Financial Officer

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In June of 2009, the Company issued 250,000 shares of common stock valued at $5,500 to purchase a 12.5% interest in ThorGeoTrack. ThorGeoTrack and Ameribras Energy are both owned and managed by Jim Rowton. Jim Rowton is also a stockholder of the Company.

In March of 2009, the Company authorized the issuance of 500,000 shares of common stock valued at $40,000 to purchase a 12.5% interest in Ameribras Energy. The ownership has been recognized in these financial statements as of the effective date of the consulting contract and the subsequent issuance of the common stock. The common stock utilized for purchase of the 12.5% interest in Ameribras Energy was not issued until August of 2009 as the Company and Ameribras Energy were negotiating the final details of the consulting contract and did not have a final agreement until August.

On October 7, 2009, the Company entered into consulting agreements with SkyberCorp do Brasil Telematica LTDA, dba Ameribras Energy and Brazil Asset Management Projectos Limitada to provide management and consulting services effective January 1, 2009. Payments of $450,000 and $300,000 per quarter are due in a balloon payment on or before January 1, 2011 or in quarterly installments when adequate funding is available. The revenue has been accrued as non operating income in the accompanying financial statements; however, a 100 % reserve has been established due to the potential uncollectibilty of this revenue.

Filing Compare · American Resource Technologies, Inc.