UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________ FORM 10-Q _______________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2010 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ALASKA PACIFIC ENERGY CORP. (Exact name of registrant as specified in Charter NEVADA 000-53607 20-4523691 (State or other jurisdiction of (Commission File No. IRS Employee Identification No.)

~~For~~ incorporation ~~the~~or ~~quarterly period ended April 30, 2010~~organization)

~~TRANSITION~~ 2005 ~~REPORT~~Costa ~~PURSUANT~~Del TOMar ~~SECTION~~Road, 13Carlsbad ORCA, 1592009 (dAddress of Principal Executive Offices) OF(Zip ~~THE~~Code) Telephone: ~~SECURITIES~~604-274-1565 (Registrant's ~~EXCHANGE~~Former ~~ACT~~Name OFor ~~1934~~Former Address if Changed Since Last Report)

~~For~~Check whether the ~~transition~~issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period ~~from ALASKA~~that ~~PACIFIC~~the ~~ENERGY~~issuer ~~CORP.~~ was required to file such reports), and (~~Exact~~2) ~~name~~has ofbeen ~~registrant~~subject asto ~~specified~~such infiling ~~Charter~~requirements for the past 90 days. Yes X No__

NEVADA	000-53607	20-4523691
(State or other jurisdiction of	(Commission File No.	IRS Employee Identification No.)
incorporation or organization)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act (Check one): Large Accelerated Filer ___ Accelerated Filer ___ Non-Accelerated Filer ___ Smaller Reporting Company X

~~2005~~Indicate ~~Costa~~by ~~Del~~check ~~Mar~~mark ~~Road,~~whether ~~Carlsbad~~the CAregistrant is a shell company as defined in Rule 12b-2 of the Exchange Act. Yes ___ No ___ State the number of shares outstanding of each of the issuer s classes of common equity, ~~92009 (Address~~as of ~~Principal~~September ~~Executive~~14, ~~Offices)~~2010: ~~(Zip~~38,583,000 ~~Code)~~shares of Common Stock.

Telephone: 604-274-1565 (Registrant s

_______________ (Former Name or Former Address if Changed Since Last Report)

ALASKA PACIFIC ENERGY CORP. FORM 10-Q April 30, 2010


ALASKA PACIFIC ENERGY CORP.
FORM 10-Q
July 31, 2010

INDEX

PART I-- FINANCIAL INFORMATION

Item 1.	Financial Statements
	Consolidated Balance Sheets F-1
	Consolidated Statements of Operations F-2
	Consolidated Statements of Other Comprehensive Income (Loss) F-3
	Consolidated Statements of Cash Flows F-4
	Condensed Notes to the Consolidated Financial Statements F-5

Item 2.	Management s Discussion and Analysis of Financial Condition
Item 3	Quantitative and Qualitative Disclosures About Market Risk
Item 4	Control and Procedures

PART II-- OTHER INFORMATION

Item 1	Legal Proceedings
Item 1A	Risk Factors
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.	Defaults upon Senior Securities
Item 4.	Submission of Matters to a Vote of Security Holders
Item 5.	Other Information
Item 6.	Exhibits and Reports on Form 8-K

SIGNATURES

INDEX PART I-- FINANCIAL INFORMATION Item 1. Financial Statements Balance Sheets F-1 Statement of Operations F-2 Statement of Cash Flows F-3 Condensed Notes to the Financial Statements F-5 Item 2. Management s Discussion and Analysis of Financial Condition Item 3 Quantitative and Qualitative Disclosures About Market Risk Item 4 Control and Procedures PART II-- OTHER INFORMATION Item 1 Legal Proceedings Item 1A Risk Factors Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Item 3. Defaults upon Senior Securities Item 4. Submission of Matters to a Vote of Security Holders Item 5. Other Information Item 6. Exhibits and Reports on Form 8-K SIGNATURES

Alaska Pacific Energy Corp (An Exploration Stage Company) Unaudited Consolidated Financial Statements (Expressed in US dollars) Three and Six Months Ended July 31, 2010 and 2009

(An Exploration Stage Company)

Unaudited Financial Statements (Expressed in US dollars)

April 30, 2010

~~Alaska Pacific Energy Corp. (An Exploration Stage Company) Condensed Notes to Financial Statements April 30, 2010~~7

Alaska Pacific Energy Corp.
(An Exploration Stage Company)
Condensed Notes to Consolidated Financial Statements
Six and Three Months Ended July 31, 2010 and 2009

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, stockholders equity (deficit) or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. The unaudited interim consolidated financial statements should be read in conjunction with the Company s Annual Report on Form 10-K, which contains the audited financial statements and notes thereto, together with the Management s Discussion and Analysis, for the year ended January 31, 2010. The interim results for the period ended ~~April~~July 3031, 2010 are not necessarily indicative of the results that may be expected for the ~~full~~year ~~fiscal~~ending ~~year~~January 31, 2011.

2. NATURE ORGANIZATION OF OPERATIONS

Alaska Pacific Energy Corp. (the Company ), was incorporated under the laws of the State of Nevada on January 13, 2005 and is engaged in the acquisition, exploration and development of resource properties. The Company has not yet determined whether their properties contain enough mineral reserves, such that their recovery would be economically viable. Further, the Company is considered a development stage Company as defined in accordance with accounting guidance, FASB ASC 915, Development Stage Entities, and has not, thus far, commenced planned principal operations. On May 12, 2010, the Company incorporated its wholly owned subsidiary, Alaska Pacific Energy Canada Ltd. under the laws of Alberta, Canada.

The unaudited interim consolidated financial statements included the accounts of the Company and its wholly owned subsidiary and all inter-company transaction and balance have been eliminated.

3. GOING CONCERN

These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America applicable to a going concern which assumes that the Company realize its asset and discharge its liabilities in the normal course of business. The Company has no revenue source and is dependent on financing to sustain operations and pay for future commitments related to the mineral option, and might not have sufficient working capital for the next twelve months. As shown in the accompanying unaudited consolidated financial statements, the Company incurred a net loss of $~~203~~1,~~424~~180,191 and $2138,~~826~~541 during the ~~first~~periods ~~quarter~~ ended ~~April~~July 3031, 2010 and 2009. The Company has historically incurred net losses which have resulted in an accumulated deficit of $~~370~~1,~~380~~347,147 as at ~~April~~July 3031, 2010. These factors create substantial doubt as to the ability of the Company to continue as a going concern. Realization values may be substantially different from the carrying values as shown in these financial statement should the Company be unable to continue as a going concern. Management is in the process of identifying sources for additional financing to fund the ongoing development of the Company s business. As of ~~April~~July 3031, 2010, the Company had cash and cash equivalents of $~~150~~156,~~545~~117, prepaid of $6117,~~355~~348 and other receivables of $446,833, among the current assets. The accompanying unaudited consolidated financial statements do not include any adjustments ~~related to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.~~

~~4. EXPLORATION AND DEVELOPMENT~~8

~~Exploration~~related ~~costs~~to ~~are~~the ~~charged~~recoverability toand ~~operations~~classification asof ~~incurred~~asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.

7Alaska Pacific Energy Corp.

~~Alaska Pacific Energy Corp.~~ (An Exploration Stage Company) ~~Condensed~~ ~~Notes to Financial Statements April 30, 2010~~

Condensed 4.Notes ~~EXPLORATION~~to ~~AND~~Consolidated ~~DEVELOPMENT~~Financial ~~(Cont~~Statements ~~d&)~~

Six ~~When it has been established that a mineral deposit is commercially mineable~~ and aThree ~~decision~~Months ~~has~~Ended ~~been~~July made to formulate a mining plan (which occurs upon completion of a positive economic analysis of the mineral deposit), the costs subsequently incurred to develop the mine on the property prior to the start of the mining operations are capitalized. Capitalized amounts may be written down if future undiscounted cash flows, including potential sales proceeds, related to mineral property are estimated to be less than the carrying value of the property. At April 30, 2010 and January 31, 2010, ~~the Company had no exploration~~ and ~~development costs; however, the Company did capitalize mining option costs as disclosed in Resource Property below.~~2009

54. ~~RESOURCE~~SIGNIFICANT ~~PROPERTIES~~ACCOUNTING POLICIES Foreign Currency Translation

The ~~Capitalized~~Company ~~amounts~~s ~~may~~subsidiary befunctional ~~written~~currency ~~down~~is ifCanadian ~~future~~dollars. ~~cash~~Transactions ~~flows,~~in ~~including~~other ~~potential~~currencies ~~sales proceeds, related to the property~~ are ~~estimated~~recorded toin beCanadian ~~less~~dollars ~~than~~at the ~~carrying~~rates ~~value~~ of ~~the~~exchange ~~property.~~prevailing ~~Management~~when of the ~~Company~~transactions ~~reviews~~occur. ~~the~~Monetary ~~carrying~~assets ~~value of each resource property interest periodically,~~ and ~~whenever~~liabilities ~~events~~denominated ~~or changes~~ in ~~circumstances~~other ~~indicate~~currencies ~~that~~are ~~the~~translated ~~carrying~~into ~~value~~Canadian ~~may~~dollars ~~not~~at berates ~~recoverable.~~of ~~Reductions~~exchange in ~~the~~effect ~~carrying~~at ~~value of each property would be recorded to~~ the ~~extent~~balance ~~the~~sheet ~~carrying value of the investment exceeds the estimated future net cash flows~~dates. AtExchange ~~April~~gains ~~30, 2010~~ and ~~January~~losses ~~31,~~are ~~2010,~~recorded in the ~~Company~~statements ~~capitalized $41,600~~ of ~~mining claim option costs, respectively~~operations.

At ~~The Company has been in~~ the ~~exploration~~period ~~stage since its formation on January 13~~end, ~~2005~~the ~~and~~subsidiary ~~has~~s ~~not~~assets ~~yet realized any revenues from its planned operations. Mineral property acquisition~~ and ~~exploration~~liabilities ~~costs~~ are ~~charged~~translated tointo ~~operations~~the ~~as incurred~~U.S. ~~When~~dollars itat ~~has~~exchange ~~been~~rates ~~determined~~at ~~that~~the abalance ~~mineral~~sheet ~~property~~date, ~~can~~equity beaccounts ~~economically~~are ~~developed~~translated asat ahistorical ~~result~~exchange ofrate ~~establishing~~and ~~proven~~revenues and ~~probable~~expenses ~~reserves,~~are translated by using the ~~costs~~average ~~incurred~~exchange torates. ~~develop~~Accumulated ~~such~~translation ~~property,~~adjustments are ~~capitalized.~~reported ~~Such~~as ~~costs~~a ~~will~~separate becomponent ~~amortized~~of ~~using~~other ~~the~~comprehensive ~~units-of-production~~income ~~method~~(loss) ~~over~~in the ~~estimated~~consolidated ~~life~~statements of ~~the~~stockholders ~~probable~~equity ~~reserve~~(deficiency).

Fair InValue ~~the~~Measurements ~~event that facts~~ and ~~circumstances~~Financial indicate that the costs of long-lived assets, other than mining properties, may be impaired, and evaluation of recoverability would be performed. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset would be compared to the asset s carrying amount to determine if a write-down to market value or discounted cash flow value is required. Impairment of mining properties is evaluated subject to the full cost ceiling as described under mining Properties.Instruments

Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used to estimate the fair values. The three levels of the fair value hierarchy are:

· Level 1 unadjusted quoted prices in active markets for identical assets or liabilities

· Level 2 inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and· Level 3 inputs that are not based on observable market data.

The Company s financial instruments include cash and cash equivalents, other receivables, accounts payable and accrued liabilities, due to related party, promissory note payable and accrued interest. Fair values were assumed to approximate carrying values for these financial instruments due to their short-term nature. Management is of the opinion that the Company is not exposed to significant interest, credit or currency risks arising from these financial instruments.

5. NEW ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Company is currently evaluating the impact of this ASU; however, the Company does not expect the adoption of this ASU to have a material impact on our financial statements.

Alaska Pacific Energy Corp.
(An Exploration Stage Company)
Condensed Notes to Consolidated Financial Statements
Six and Three Months Ended July 31, 2010 and 2009

In February 2010, the FASB issued ASC No. 2010-09, Amendments to Certain Recognition and Disclosure Requirements , which eliminates the requirement for SEC filers to disclose the date through which an entity has evaluated subsequent events. ASC No. 2010-09 is effective for its fiscal quarter beginning after 15 December 2010. The adoption of ASC No. 2010-09 is not expected to have a material impact on the Company s financial statements

5. NEW ACCOUNTING PRONOUNCEMENTS (Cont d&)

ASU No. 2010-13 was issued in April 2010, and clarified the classification of an employee share based payment award with an exercise price denominated in the currency of a market in which the underlying security trades. This ASU will be effective for the first fiscal quarter beginning after December 15, 2010, with early adoption permitted. The adoption of ASU No. 2010-13 is not expected to have a material impact on the Company s financial statements.

Other accounting pronouncements that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company s financial statements upon adoption.

6. MINING CLAIMS

Whitton Township and Gayhurst Township in Province of Quebec Mining Claims Canada

The Company entered into an option agreement dated June 26, 2008 to acquire a 100% interest in three groups of mineral claims with 21, 28 and 12 claims, respectively, in Whitton Township and Gayhurst Township, Province of Quebec, Canada. Pursuant to the agreement, the Company paid $16,600 and issued 250,000 common shares at $0.10 per share on July 15th 2008 for the first payment. The second cash payment in amount of $16,600 and 250,000 common shares issuance was to be executed on or before July 15, 2009. The Company signed an extension for the second payment to July 15, 2010 pursuant to the agreement to purchase the claims. In addition to the extension, the agreement was modified such that the seller gave the Company title to 44 of the 61 claims associated with the agreement. Therefore the company currently owns 44 mineral claims and has an option to purchase the remaining 17 claims by making the last cash payment in the amount of $16,600 and by issuing 250,000 common shares or before July 15, 2010.

8 During the period ended July 31, 2010, the Company did not make the second option payment and the related mining claims had also lapsed and expired. The Company wrote off the related capitalized cost of $41,660.

~~Alaska~~ ~~Pacific Energy Corp~~7. ~~(An~~ ~~Exploration~~TRANSACTIONS ~~Stage~~WITH ~~Company) Condensed~~ENGINEERING ~~Notes~~TECHNOLOGY, toINC. ~~Financial~~( ~~Statements April~~ENTEC ~~30, 2010~~)

7 On March 18, 2010, the Company and ENTEC entered into a Technology License Agreement ( License Agreement ) whereas ENTEC granted the Company and its affiliates a non-exclusive, non-transferrable, non-sub-licensable, royalty-free, fully paid-up license to use the technology, documentation and associated intellectual property within the territory for any oil sands recovery activities in which the Company or its affiliates are now or hereafter engaged with a term of 25 years for a consideration of 15 million common shares of the Company. ~~INTANGIBLE~~Upon ~~ASSETS~~the ~~INTELLECTUAL~~signing ~~PROPERTY~~of ~~RIGHTS~~the above noted License Agreement, the Company approved and issued 15 million common shares.

Intangible assets consist of intangible property rights costs. Intangible property rights costs are costs incurred to use Entec s North American License rights to Entec s Horizontal Directional Drilling Oilsands Recovery Solutions for any oil-sands recovery activities. The costs are amortized using the straight-line method over the estimated lives of 25 years for intellectual property rights determined pursuant to the life of the agreement with Engineering Technology, Inc. made on March 18, 2010. Unsuccessful intellectual property costs are expensed at the time the agreement is terminated. We assess the carrying values of long-lived assets for impairment when circumstances warrant such a review. In performing this assessment, management considers current market analysis and appraisal of the technology, along with estimates of future cash flows. We recognize impairment losses when undiscounted cash flows estimated to be generated from long-lived assets are less than the amount of unamortized assets.10

~~The~~ ~~related~~Prior ~~costs are capitalized as intangible assets and subject~~ to ~~an amortization period of twenty five years, which is~~ the ~~contractual~~closing ~~life~~ of the ~~assets.~~above AsLicense ~~of April 30~~Agreement, ~~2010~~on ~~and~~June ~~January 31~~1, 2010, the ~~capitalized~~Company ~~intangible assets totaled $750,000~~ and ~~$0,~~the ~~respectively.~~shareholders ~~The amortization~~ of ~~$5,000~~ENTEC ~~and~~entered $0into ~~are~~a ~~recorded~~Share asPurchase ofand ~~April~~Sales ~~30,~~Agreement ~~2010~~( ~~and~~Purchase ~~2009.~~Agreement )

~~Intellectual~~ ~~property~~Alaska ~~rights~~Pacific ~~consisted~~Energy ofCorp. (An ~~the~~Exploration ~~following~~Stage atCompany) Condensed ~~April~~Notes ~~30,~~to ~~2010~~Consolidated Financial Statements Six and ~~January~~Three Months Ended July 31, 2010: and 2009

to acquired 100% ownership of ENTEC for a consideration of $10 million with $3 million payable as by the equity of the Company (a total of 12 million common shares) and $7 million cash.

In substance, the above noted License Agreement and Purchase Agreement together are considered as business acquisition as the Company is acquiring ENTEC for a total consideration of 27 million common shares of APEC and $7 million cash. The issuance of 15 million common shares that have been distributed to the shareholders of ENTEC has been considered as a part of the purchase price. The Company accounted the issuance of 15 million common shares as deferred charges which will be applied as part of purchase price upon the closing of the Purchase Agreement.

Subsequent to July 31, 2010, the Company re-negotiated with the shareholders of ENTEC and amended and restated the above noted Purchase Agreement for the following purchase prices:

7. TRANSACTIONS WITH ENGINEERING TECHNOLOGY, INC. ( ENTEC ) (Cont d&)

· $7,000,000 cash; and

· An aggregate of $8,100,000 (the Convertible Debenture Amount ) under convertible debenture issued by the Company to and in favour of the shareholders of ENTEC which is convertible into the common shares of the Company for not less than 27 million common shares of the Company; and· The termination of the above noted License Agreement and return and cancel the above issued 15 million common shares of the Company.

The amended and restated Purchase Agreement will be terminated and expired if not closed on October 31, 2010.

As at July 31, 2010, the deferred charges related to the issuance of 15 million common shares have been included in the shareholders equity to reflect the substance of the above noted transactions.

8. NOTE PAYABLE

On January 9, 2010, the Company received $10,000 from Ms. Sally Alston ( the lender ) pursuant to a promissory note payable. The note bears interest at 6% per annum, and is due on demand. On January 31, 2010, the Company entered into an additional promissory note with Ms. Sally Alston in an amount of $2,000 bearing interest of 6% per annum and is due on demand. On February 1, 2010, the Company received $2,000 from Ms. Sally Alston pursuant to this promissory. On June 11, 2010, the Company paid back $2,000 of principal plus $150 accrual interests on demand to this lender. On February 25, 2010, the Company entered into another additional convertible promissory note with Ms. Sally Alston and received in the amount of $5,000 bearing interest of 10% per annum. The promissory note and interest are due and will be paid on demand. Under the agreement when demand for payment is presented to the Company, providing 10 clear days notice in written are give to the Company, the lender has the option to convert this loan outstanding at a deemed price of $0.15 into Company s common stock. On April 27, 2010, the Company paid back $15,000 of principal on demand to this lender. As of ~~April~~July 3031, 2010, the Company repaid back the principal in full and accrued total interest of $~~391~~254 and outstanding.

911

~~Alaska~~On ~~Pacific~~February ~~Energy~~22, ~~Corp. (An~~2010, ~~Exploration~~the ~~Stage~~ Company~~) Condensed~~ ~~Notes~~entered tointo ~~Financial~~a ~~Statements April~~convertible 30promissory note with Mike Moustakis in amount of $4,200 ~~2010~~bearing interest of 6% per annum. The promissory note and interest are due and

8.Alaska ~~NOTE~~Pacific ~~PAYABLE~~Energy Corp. (~~Cont~~An d&Exploration Stage Company) Condensed Notes to Consolidated Financial Statements Six and Three Months Ended July 31, 2010 and 2009

~~On February 22, 2010, the Company entered into a convertible promissory note with Mike Moustakis in amount of $4,200 bearing interest of 6% per annum. The promissory note and interest are due and~~ will be paid on demand. Under the agreement when demand for payment is presented to the Company, providing 15 clear days notice in written are given to the Company, the lender has the option to convert this loan outstanding at a deemed price of $0.15 into Company s common stock. The Company has received $4,200 (CAD$4,340) from the lender pursuant to the promissory note. As of ~~April~~July 3031, 2010, the Company had $4,200 principal and accrued interest of $40104.

The Company did not incur beneficial conversion charges for the above noted convertible promissory notes because the conversion price is great than the fair value of the Company s equity at the date of the convertible promissory note was issued.

9. CAPITAL STOCK

Issued and Outstanding

On February 6, 2010, the Company issued 1,000,000 shares of common stock of the Company valued at $0.10 per share or $100,000, pursuant to a business advisory consulting agreement dated November 1, 2009.

On February 26, 2010, Nanita Holding Ltd., George Skrivanos, and Anastasios Koutsoumbos authorized to affect the share cancellation of 2,000,000, 1,000,000 and 1,000,000 common stocks of the Company, respectively which were originally issued in 2007.

On March 11, 2010, the board of directors of the Company approved the issuance of 1,000,000 shares of common stock of the Company to a director and officer of the Company for services provided to the Company. The shares were issued in accordance with Regulation S of the Securities Act of 1933 and valued at $0.10 per share or $100,000.

On March 18, 2010, ~~the~~pursuant ~~Company entered into an Oil Sands Licensing Agreement (the Agreement ) with Engineering Technology, Inc. ( Entec ). Pursuant~~ to the ~~terms~~License ~~of the~~ Agreement ~~the Company shall receive intellectual rights~~, including a non-exclusive, non-transferable, non sub-licensable, royalty free, fully paid-up license to use Entec s North American License rights to Entec s Horizontal Directional Drilling Oilsands Recovery Solutions for any oil-sands recovery activities in which the Company ~~is now or hereafter engaged. In exchange for this exclusive North American License, the Company~~ issued 15,000,000 restricted common shares of the Company to ~~Entec~~ENTEC at a deemed price of $0.05 per share or $750,000.

On April 251, 2010, the Company issued 125,~~358,333~~000 shares of common stock of the Company for cash valued at $0.15 per share or $~~203~~3,750.

~~Deferred~~On ~~Stock~~April ~~Compensation~~16, 2010, the Company issued 1,333,333 shares of common stock of the Company for cash valued at $0.15 per share or $200,000.

On ~~November~~May 114, 2010, the Company ~~entered~~issued ~~into a business advisory consulting agreement with James Andrews. The Company agreed to issue the consultant a total of 5~~35,000~~,000~~ ~~restricted common~~ shares of ~~the~~common ~~Company~~stock ~~vesting as follows: 2,000,000 restricted Common Shares upon the signing~~ of this agreement, 1,000,000 restricted Common Shares on December 1, 2009, 1,000,000 restricted Common Shares on January 1, 2010, and rest of 1,000,000 restricted Common Shares on February 6, 2010 for his services over 3 years, commencing on November 1, 2009. The Company used the ~~straight line amortization method to amortize the entire 5 million shares over three years service period. As of April 30, 2010, the~~ Company ~~issued~~for ~~the~~cash ~~total~~valued ofat ~~5,000,000 shares of their common stock and recorded deferred stock compensation of~~ $~~500,000~~0.15 ~~The~~per ~~amount~~share ofor $835,~~334 is amortized as of April 30, 2010~~250.

10 On May 17, 2010, the Company issued 20,000 shares of common stock of the Company for cash valued at $0.15 per share or $3,000.

~~Alaska~~On ~~Pacific~~June ~~Energy~~30, ~~Corp. (An~~2010, ~~Exploration~~the ~~Stage~~Company issued 2,000,000 shares of common stock of the Company~~) Condensed~~ ~~Notes~~for tocash ~~Financial~~valued ~~Statements April~~at ~~30,~~$0.15 ~~2010~~per share or $300,000.

9. CAPITAL STOCK (Cont d&) Basic and Diluted Net Loss Per Share

The Company computes net loss per share in accordance with the accounting pronouncement, Earnings per Share. This accounting pronouncement requires presentation of both basic and diluted earnings per share ( EPS ) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerators) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive. The Company had no common stock equivalents outstanding at April 30, 2010 and 2009.

10. RELATED PARTY TRANSACTIONS

Related party transactions are in the normal course of operations, occurring on terms and conditions that are similar to those of transactions with unrelated parties and, therefore, are measure at the exchange amount.

During the first quarter ended April 30, 2010 and 2009, the Company was charged $15,000 and $0 consulting fees, respectively by the President and CEO of the Company.

During the first quarter ended April 30, 2010 and 2009, the Company received $7,133 and $332 operating expense advance from the President and CEO of the Company, respectively. The Company paid the amounts of $7,110 and $0 as of April 30, 2010 and 2009, respectively.

There were $23 and $4,590 due to the President and CEO of the Company for operating expenses and accrued management services at April 30, 2010 and January 31, 2010, respectively. The amounts due to related party advance are non-interest bearing and have no specific terms of repayment.

11. INCOME TAXES

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10 (Prior authoritative literature: Financial Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No. 109 (FIN 48)). FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with prior

Alaska Pacific Energy Corp. An Exploration Stage Company) Condensed Notes to Financial Statements April 30, 2010

11. INCOME TAXES (Cont d&)

literature FASB Statement No. 109, Accounting for Income Taxes. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position. If the more-likely-than- not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740-10. As a conclusion, the tax position of the Company is not met more-likely-than-not threshold as of April 30, 2010.

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The following is a reconciliation of the provision for income taxes at the United States of America federal income tax rate to the income taxes reflected in the statements of operations:

Alaska Pacific Energy Corp. An Exploration Stage Company) Condensed Notes to Consolidated Financial Statements ~~April~~Six 30and Three Months Ended July 31, 2010 and 2009

119. ~~INCOME~~CAPITAL ~~TAXES~~STOCK (Cont d&)

AsDeferred ofStock April 30, 2010, the Company s net deferred tax assets are offset by a valuation allowance of $92,164. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the year in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment.Compensation

AsOn November 1, 2009, the Company entered into a business advisory consulting agreement with James Andrews. The Company agreed to issue the consultant a total of ~~April~~5,000,000 30restricted common shares of the Company vesting as follows: 2,000,000 restricted Common Shares upon the signing of this agreement, 1,000,000 restricted Common Shares on December 1, 2009, 1,000,000 restricted Common Shares on January 1, 2010, and ~~January~~rest of 1,000,000 restricted Common Shares on February 6, 2010 for his services over 3 years, commencing on November 1, 2009. The Company used the straight-line amortization method to amortize the entire 5 million shares over the three-year service period. As of July 31, 2010, the Company ~~has~~issued ~~approximately~~the ~~$270~~5,000 ~~and $167~~,000 ofcommon ~~net~~stock ~~operating~~and ~~losscarryforwards~~recorded ~~available~~deferred tostock ~~reduce~~compensation ~~future~~of ~~taxable income~~$500,000. ~~These~~The ~~carryforwards~~amount ~~will~~of ~~begin~~$125,000 tois ~~expire~~amortized inas ~~2028~~of July 31, 2010.

AOn ~~reconciliation~~July 27, 2010, the Company signed an Investor Relations/Media Consulting Agreement with Longview Communications Corp ( Consultant ) for the services effective from July 27, 2010 through August 27, 2010. The Company agreed to pay $50,000 for consultants work in the form of cash, and 142,857 restricted shares (rule 144) of its common stock, as total and complete consideration for the ~~beginning~~services to be provided by the consultant to the Company. Payment in full shall be due no later than July 27, 2010. The Company paid $50,000 in cash and ~~ending~~committed ~~amount~~to issue 142,857 common shares of ~~unrecognized~~the ~~tax~~Company. ~~benefits~~As at July 31, 2010, the Company credited additional paid-in capital and debited deferred stock based compensation of $50,000 and $50,000, respectively, for the above noted 142,857 common shares committed to issue. The amount of $$8,065 is amortized as ~~follows:~~of July 31, 2010

As10. ~~April~~STOCK ~~30, 2010, the Company had no unrecognized tax benefits that, if recognized, would affect the effective tax rate.~~OPTIONS

~~The~~On May 1, 2010, the Company ~~did~~granted ~~not~~a ~~have~~total ~~any~~of ~~tax~~3,200,000 ~~positions~~stock ~~for~~options ~~which~~to itthe isconsultants ~~reasonably~~of ~~possible~~the ~~that~~Company at the ~~total~~exercise ~~amount~~price of ~~unrecognized~~$0.25 ~~tax~~per ~~benefits~~share. The options will ~~significantly~~be ~~increase~~vested orimmediately ~~decrease~~and ~~within~~will ~~the~~expire ~~next~~on 12April ~~months~~30, 2012.

The Company ~~includes~~estimates ~~interest~~the ~~and~~fair ~~penalties~~value ~~arising~~of ~~from~~each ~~the~~stock ~~underpayment~~option ofat ~~income~~a ~~taxes~~grant indate by using the ~~statements~~Black-Scholes ofoption ~~operations~~pricing inmodel ~~the~~pursuant ~~provision~~to ~~for~~FASB ~~income~~ASC718, ~~taxes.~~Share AsBased ofPayment ~~April~~and ~~30,~~the ~~2010~~following ~~and~~assumptions: ~~January~~expected ~~31,~~term ~~2010,~~of ~~the~~2 ~~Company~~years, ~~had~~a norisk ~~accrued~~free interest orrate ~~penalties~~of ~~related~~0.97%, toa ~~uncertain~~dividend ~~tax~~yield ~~positions~~of 0% and volatility of 117%.

Under ~~The~~the ~~tax~~provisions ~~years~~of ~~that~~SFAS ~~remain~~ASC718 ~~subject~~stock tobased ~~examination~~compensation byexpenses ~~major~~of ~~taxing~~$608,331 ~~jurisdictions~~and ~~are~~$0 ~~those~~was recorded for the period ended ~~April~~July 3031, 2010 and ~~January 31~~2009, ~~2010~~respectively.

Alaska Pacific Energy Corp. (An Exploration Stage Company) Condensed Notes to Consolidated Financial Statements ~~April~~Six 30and Three Months Ended July 31, 2010 and 2009

11. RELATED PARTY TRANSACTIONS

During the period ended July 31, 2010 and 2009, the Company was charged $60,000 and $0 consulting fees by the President and CEO of the Company and $95,938 and $0 consulting fees by companies controlled senior officers of the Company, respectively.

Included in prepaid expenses and deposits is amounts of $55,582 (January 31, 2010 - $0) advanced to the President and CEO of the Company for operating expenses.

Included in accounts payable and accrued liabilities, $114,926 (January 31, 2010 - $0) was payable to a senior officer and companies controlled by senior officers of the Company.

Also see Note 12.

12. COMMITMENTS

~~Expend~~ ~~Work~~On onMay ~~Claims~~12, 2010, the Company entered into a consulting agreement with Emerald Isle Services Ltd.

~~The~~ ~~Company~~( ~~had~~Consultant ~~planned to expend work totaling $21~~),~~250~~ onan ~~the~~Alberta ~~block~~Company ofowned ~~17 optioned claims~~ by ~~February~~a ~~27,~~senior ~~2009~~officer ~~and~~of ~~an additional $55,000 on~~ the ~~remaining~~Company ~~block~~(director of ~~44 claims by July 15, 2010. However,~~ the Company ~~has~~s ~~delayed~~subsidiary) ~~initiating~~for ~~any~~service ~~work~~providing onfor ~~the~~a 17period ~~optioned claims pending an evaluation~~ of ~~their~~three ~~relative potential~~years. AThe ~~final~~Company ~~decision~~agreed ~~whether or not~~ to ~~proceed~~pay ~~with the closing of the option and to make the final payment of~~ CAD$1625,~~600 and 250,~~000 ~~shares,~~per ~~must~~month. ~~be made by July 15~~However, ~~2010.~~The WeConsultant ~~are~~agreed ~~also required~~ to ~~conduct~~receive ~~work on the wholly owned 44 claims totaling~~ CAD$5510,000 byper ~~July~~month ~~15,~~from ~~2011~~March ~~and~~2010 ~~again~~through onAugust ~~July 15~~31, ~~2012~~2010. As of ~~April~~July 3031, 2010, nothe ~~work~~Company ~~has~~paid ~~been~~/ ~~expended~~accrued ~~on any of the claims~~CAD$50,000.

~~Business~~ ~~Advisory~~On ~~Consulting~~May ~~Agreement~~12, 2010, the Company entered in a consultant agreement with JCL Henery Inc. ( Consultant ), an Alberta Company owned by a senior officer (director of the Company s subsidiary) for services providing for a period of three years. The Company agreed to pay CAD$10,000 per month from March 2010. As of July 31, 2010, the Company paid / accrued CAD$50,000 outstanding.

On November 1, 2010, the Company entered into a business advisory consulting agreement with James Andrews. The Company agreed to issue the consultant a total of 5,000,000 restricted common shares of the Company vesting as follows: 2,000,000 restricted Common Shares upon the signing of this agreement, 1,000,000 restricted Common Shares on December 1, 2009, 1,000,000 restricted Common Shares on January 1, 2010, and rest of 1,000,000 restricted Common Shares on February 6, 2010 for his services provided. These shares are issued at a deemed price of $0.10 per shares which shall be restricted securities as defined in Rule 144 of the General Rules and Regulations under the Securities Act of 1933, as amended (hereinafter referred to as the Act ), and may not be sold unless registered pursuant to the Act or in accordance with the terms of Rule 144 and any certificate (s) representing the above noted shares shall bear a restrictive legend pursuant to Rule 144 of the Securities and Exchange Act of 1933. The term of this agreement shall be a period of three years, commencing November 1, 2009, and terminating October 31. 2012. As of April 30, 2010, 5,000,000 shares have been issued.

13. SUBSEQUENT EVENTS

The Company received a deposit of $3,000 on May 17, 2010 and issued 20,000 shares of the common stock of the Company for cash at $0.15 per share.

On May 1, 2010, the Company granted a total of 3,150,000 stock options at the exercise price of $0.25 per share. The options will be vested for two (2) years from the date of grant and will expire on April 30, 2012. The Options were granted to seven individuals in the number set opposite their names:

David Goldman	500,000
Alpha Pang	500,000
Anna Skoka	50,000
Cherry Cai	100,000
Barry Leung	1,000,000
Mark Andrews	250,000
Bonnie Armstrong	250,000

~~Alaska~~ ~~Pacific~~On ~~Energy~~May ~~Corp. (An~~12, ~~Exploration~~2010, ~~Stage~~the Company~~) Condensed~~ ~~Notes~~entered into a consulting agreement with James Andrews for his service for a period of three years. The Company agreed to ~~Financial~~pay ~~Statements April~~CAD$5,000 30per month commencing from March 1. As of July 31, ~~2010~~the Company paid CAD$20,000.

~~13.~~ ~~SUBSEQUENT~~Alaska ~~EVENTS~~Pacific ~~(Cont~~Energy d&Corp. An Exploration Stage Company) Condensed Notes to Consolidated Financial Statements Six and Three Months Ended July 31, 2010 and 2009

On June 1, 2010, Alaska Pacific Energy Corp. (the Company ) entered into a purchase agreement to acquire all the outstanding shares and assets of Engineering Technology Inc ( Entec ) a Calgary Alberta based, private company. Entec is an international provider of Horizontal Directional Drilling (HDD) engineering and technology development to the oil and gas industry. Pursuant to the terms of the Agreement (attached hereto as Exhibit 10.7), the Company will pay $7,000,000 and issue a total of 12~~,000,000 restricted common shares to the Entec shareholders at a deemed price of $0~~.25 ~~per~~COMMITMENTS share. Additionally, APEC will have to raise $5,000,000 dollars for working capital. The agreement is subject to a full due diligence review of Entec. Completion of the due diligence and the closing is expected by no later than July 31, 2010. Grant Jameson, a resident of Calgary Alberta, is the President and CEO of Entec. At the closing, Mr. Jameson will be appointed a director of APEC. The Company has also incorporated a wholly owned subsidiary, Alaska Pacific Energy (~~Canada)~~Cont Ltd., based in Calgary Alberta. Mr. Jameson has already been appointed CEO of the subsidiary in order to assist with the transition and maintain continuity. The closing, when it takes place, will be reported, by the Company upon completion.d&)

~~Alaska~~ ~~Pacific~~On ~~Energy~~July ~~Corp.~~27, ~~has~~2010, ~~evaluated~~the ~~subsequent~~Company ~~events~~signed an Investor Relations/Media Consulting Agreement with Longview Communications Corp ( Consultant ) for the ~~period~~services ~~April~~effective 30from July 27, 2010 through ~~the~~August ~~date~~27, 2010. The Company agreed to pay $50,000 for consultants work in the ~~financial~~form ~~statements~~of ~~were~~cash, ~~issued~~and 142,857 restricted shares (rule 144) of its common stock, as total and ~~concluded~~complete ~~there~~consideration ~~were~~for the services to be provided by the consultant to the Company. Payment in full shall be due no ~~other~~later ~~events~~than orJuly ~~transactions~~27, ~~occurring~~2010. ~~during~~As ~~this~~of ~~period~~July ~~that~~31, ~~required~~2010, ~~recognition~~the orCompany ~~disclosure~~paid $50,000 in ~~its~~cash ~~financial~~and ~~statements~~committed to issue 142,857 of common shares.

13. SUBSEQUENT EVENTS

Subsequent to July 31, 2010, the Company received $67,500 for 450,000 shares subscription at $0.15 per share.

Subsequent to July 31, 2010, the Company issued 866,667 shares of common stock of the Company for cash valued at $0.15 per share or $130,000.

On August 2, 2010, the Company entered into a convertible promissory note with Asher Enterprises, Inc. in amount of $53,000 bearing interest of 8% per annum due 9 months after issuance. The promissory note is convertible into the shares of common stock of the Company during the term of the promissory note at the variable conversion price, which equals to 58% multiplied by the market price. Market price means the average of the lowest three trading price for the common stock during the ten trading day period ending one trading day prior to the date of conversion notice.

On August 4, 2010, the Company entered into an E-Trax Subscription Agreement with AlphaTrade.com ( APTD ) a Nevada corporation. APTD agrees to provide the Company, in specified order form with access to the APTD Services. The data, text, graphics and images contained in the APTD Services, and any portion thereof, shall be referred to, individually and collectively, as the APTD Content . The agreement will take effect on the contract start date of August 4, 2010 until the contract termination set in the agreement. As of this filing report, the Company paid $12,000.

In August 2010, the Company entered into a consulting agreement with Information Solutions Group ( ISG ) for the management consulting services, business advisory services, shareholder information services and public relations services. The Company agreed to pay $30,000 before August 13, 2010 for a start date of August 16, 2010 and coverage through October 29, 2010. As of this filing report, the Company paid $30,000 in full.

On August 13, 2010, the Company made a consulting agreement with Tritos Inc. ( Consultant ) for management consulting services, business advisory services, shareholder information services and public relations services. The Company agreed to pay $15,000 in exchange for the first round of services ranging from August 18, 2010 through September 30, 2010. Either party may terminate this

agreement at the end of any month during the term of this agreement. As of this filing report, the Company paid $15,000.

Alaska Pacific Energy Corp.
An Exploration Stage Company)
Condensed Notes to Consolidated Financial Statements
Six and Three Months Ended July 31, 2010 and 2009

13. SUBSEQUENT EVENTS (Cont d&)

On August 12, 2010, the Company entered into an office lease agreement with 120 Eglinton East Business Centre Inc. ( 120 ) for a period of six months beginning from August 19, 2010 at a monthly basic rental charge of $1,750 plus telecom package of $420 monthly charge. Total of $2,170 payable in advance will be due on the 19^thday of each month during the term. At the end of this agreement, the Company may renew this tenancy on a month-to-month basis. This renewal can be terminated by giving a minimum of 60 days prior written notice to terminate, and such termination to be effective on the 19^thday of the next month after such 60-day period.

On August 25, 2010, the Company entered into an agreement with G.M. Astor & Associates. The Company agreed to pay $1 million in cash and issue 500,000 restricted common shares of the Company upon successful completion of the raising of $18,000,000 for the Company.

Also see note 7.

Alaska Pacific Energy Corp. has evaluated subsequent events for the period July 31, 2010 through the date the financial statements were issued, and concluded there were no other events or transactions occurring during this period that required recognition or disclosure in its financial statements.

In this report references to APEC , Alaska Pacific, the Company we, us, and our refer to Alaska Pacific Energy Corp. and Alaska Pacific Canada Ltd.

FORWARD LOOKING STATEMENTS

The Securities and Exchange Commission ( SEC ) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as may, expect, believe, anticipate, intend, estimate, project, or continue or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Our business activities to date have not provided any cash flow. During the next twelve months we anticipate incurring costs and expenses related to ~~filing of Exchange Act reports, exploratory work on~~ our ~~claims,~~planned asbusiness. ~~well~~We ~~as costs related to the management of a public company if we~~ are ~~successful~~currently in ~~bringing~~need ~~the Company to trade. Management will fund the costs and expenses to be incurred as a result~~ of ~~such activities through further investment in our Company through~~ additional equity financing byto ~~private~~fund ~~investors~~our planned business. Based on our history as a developmental stage company, it is difficult to predict our future results of operations. Our planned business may not be materialized or our operations may never generate significant revenues or any revenues whatsoever, and we may never achieve profitable operations.

We incurred total operating expenses in the amount of $~~370~~1,~~380~~347,147 for the period from our inception on January 13, 2005 to ~~April~~July 3031, 2010.

Plan of Operations

The Company will continue to manage its operations and cash resources in a manner consistent with its expectation that it will be able to satisfy cash requirements through fiscal ~~2010~~2011. ~~The main operating costs for the Company include:~~

~~Scheduled~~On ~~and~~May ~~Contracted~~12, ~~Payment of $16~~2010,~~600~~ ~~to Robert Rosenblat to fulfill~~ the ~~second~~Company ~~year~~incorporated ~~terms~~its ofsubsidiary ~~Claims Option Agreement rescheduled to July 15~~company, ~~2010.~~Alaska APacific ~~total~~Energy ofCanada ~~17 of the claims are currently being evaluated as to their potential~~Ltd. 44under ~~claims are now owned outright. Should~~ the ~~Company~~laws ~~decide not to proceed with the acquisition~~ of ~~the 17 claims~~Alberta, ~~the~~Canada ~~$16,600~~to ~~will~~engage ~~not~~in bedeveloping ~~paid~~oil ~~to Mr. Rosenblat~~ and nogas ~~further~~energy ~~payments~~business ~~will~~in ~~be required~~Canada.

·During ~~Required~~the ~~work~~period ~~program~~ended onJuly ~~Claims~~31, ~~totaling~~2010, the Company s mining option was forfeited as the Company failed to fulfill the second option payment and the underlying mining claims have been lapsed and expired. The capitalized cost of mining claims $2141,~~250~~600 ~~rescheduled~~has tobeen written off during the period ended July 1531, 2010.

~~Our~~The ~~plan~~Company ~~of operation~~ is tocurrently ~~conduct~~in ~~exploration work on~~ the ~~claims~~process ~~in order to ascertain whether they possess economic quantities~~ of ~~molybdenum~~obtaining orequity ~~other~~financing ~~minerals.~~to ~~There~~complete ~~can be no assurance that economic mineral deposits or reserves exist on~~ the ~~claims~~related ~~until~~amended ~~appropriate~~Share ~~exploration~~Purchase ~~work is done~~ and anSales ~~economic~~Agreement ~~evaluation~~to ~~based~~acquire on100% ~~such~~ownership ~~work concludes that production~~ of ~~minerals~~Engineering ~~from~~Technology, ~~the property is economically feasible~~Inc. ~~Economic~~which ~~feasibility~~will ~~refers to an evaluation completed by an engineer or geologist whereby he or she analyses whether profitable mining operations can~~ be ~~undertaken~~expired on ~~the~~October ~~property.~~31, ~~Mineral property exploration is generally conducted in phases~~2010. ~~Each subsequent phase of exploration work is recommended by a geologist based on the results from the most recent phase of exploration.~~

The Company will consider an additional equity offering within the next 12 months. In such case, the use of proceeds would center on the acceleration of work on the claims.

Results of Operations

We have not earned and recorded any revenues from the time of our incorporation on January 13, 2005 to ~~April~~July 3031, 2010. We do not anticipate earning revenues unless we ~~enter~~succeed ~~into~~with ~~commercial~~our ~~production~~planned onbusiness ~~the~~operations. ~~optioned~~In ~~claims,~~terms ~~which~~of isour ~~doubtful.~~mineral Weproperties, ~~have~~during ~~not~~the ~~commenced~~period ~~the~~ended ~~exploration~~July ~~stage~~31, of2010, our ~~business~~mining ~~and~~option ~~can~~was ~~provide~~forfeited noand ~~assurance~~currently ~~that~~ we ~~will~~have ~~discover~~no ~~economic~~mineral ~~mineralization on any of the~~ claims,. orWe ~~if such minerals~~ are ~~discovered,~~in ~~that~~the weprocess ~~will~~of ~~enter~~completing ~~into~~the ~~commercial production.~~amended

The Company recognized a net loss of $203,424 and $21,826 for the quarters ended April 30,

2010 and 2009, respectively. From inception through April 30, 2010, the Company recognized a net loss of $370,380.

Expenses for the quarters ended April 30, 2010 and 2009 were comprised of costs associated with general and administration fees of $35,576 and $16,916, respectively, and professional service fees of $167,557 and $4,910, respectively.

Working capital, which was current assets less current liabilities, was $126,404 at April 30, 2010 compared to a working capital deficit of $20,589 at January 31, 2010. Current assets at April 30, 2010 included cash and cash equivalents of $150,545, prepaid of $6,355 and other receivables of $44.

Capital Resources and Liquidity

As of April 30, 2010 and January 31, 2010, we had $150,545 and $178, respectively in cash. We received funds of $203,750 and $0 for the first quarter ended April 30, 2010 and 2009, respectively through proceeds from share subscription. Our operating expenses increased for the 2010 first quarter compared to the same quarter ended April 30, 2009. The increase was primarily due to professional fees related to legal, audit and consulting service fees and general administration expenses related to rental, office expenses and depreciation expense in the 2010 first quarter. As a result of the increase, we recorded a larger net loss for the 2010 first quarter compared to the 2009 first quarter. Therefore we have limited capital resources and will have to rely upon the issuance of common stock to fund expenses including legal and auditing fees, exploration expenses, required payments for our claims and office expenses. Cash and cash equivalents from inception to date have been sufficient to cover expenses involved in starting our business. We will require additional funds to continue to implement our business plan during the next twelve months.

The increase in the Company s cash flow used in operating activities from $17,291 to $49,583 was due to the increase in prepaid and decrease in due to related party and increase in the net loss contributed to the increase of professional fees, general & administrative expenses, for the quarter ended April 30, 2010 compared with the same quarter ended April 30, 2009.

The increase in the Company s cash flow provided by financing activities from $0 to $199,950 was due to the increase in proceeds from share issue for cash for the quarter ended April 30, 2010 compared with the same period ended April 30, 2009.

We currently do not have enough cash to satisfy our minimum cash requirements for the next twelve months. The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of the mineral properties and other assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses from inception to April 30, 2010. The Company has not realized economic production from its mineral properties as of April 30, 2010. These factors raise substantial doubt about the Company's ability to continue as a going concern.

Management continues to actively seek additional sources of capital to fund current and future operations. There is no assurance that the Company will be successful in continuing to raise additional capital, establishing probable or proven reserves, or determining if the mineral properties can be mined economically. These financial statements do not include any adjustments that might result from the outcome of these uncertainties. If we are unable to raise a sufficient amount of capital to continue to implement our business plan, we will seek a joint venture partner.

~~Subsequent~~Share toPurchase ~~the~~and ~~quarter~~Sales ~~ended~~Agreement ~~April~~to ~~30,~~acquire ~~2010,~~100% ~~the~~ownership ~~Company received a deposit~~ of $3Engineering Technology,~~000~~ ~~for~~Inc. ~~share~~and ~~subscription~~can ~~pursuant~~provide tono ~~sale~~assurance ofthat ~~common~~we ~~stock~~will tosuccessfully ~~issue~~raise ~~20,000 shares of~~ the ~~common~~financing ~~stock~~and ofcomplete the ~~Company for cash at $0~~acquisition.~~15 per share.~~

~~Recent~~The ~~Accounting~~Company ~~Pronouncements~~recognized a net loss of $1,180,191 and $38,541 for the periods ended July 31, 2010 and 2009, respectively. From inception through July 31, 2010, the Company recognized a net loss of $1,347,147.

~~Critical~~Our ~~Accounting~~operating ~~Policies~~expenses increased $1,141,281 from $38,541 for the first six-month period in 2009 to $1,180,191 for the first six-month period in 2010. Such represented an increase of G & A expenses in the amount of $56,914, an increase of professional fees in the amount of $434,436 primarily related to the management fees and consulting fees, an increase of stock based compensation in the amount of $608,331 related to 3.2 million stock options granted to consultants of the Company and the write off of the mining claims of $41,600.

Capital Resources and Liquidity

Working capital, which was current assets less current liabilities, was $147,870 at July 31, 2010 compared to a working capital deficit of $20,589 at January 31, 2010. Current assets at July 31, 2010 included cash and cash equivalents of $156,117, prepaid of $117,348 and other receivables of $6,833.

As at July 31, 2010, we had total assets of $280,298, comprising of cash and cash equivalents of $156,117, prepaid expense of $117,348 and other receivables of $6,833. This is an increase from $42,244 in total assets as at January 31, 2010. The increase was attributable to cash and cash equivalents and prepaid expenses.

As at July 31, 2010, our total liabilities increased to $132,428 from $21,233 as at January 31, 2010. This increase primarily resulted from the increase of accounts payable and accrued liabilities and offset by the repayment of promissory note payable and reduction of related party advances.

The Company s cash flows used by operating activities are $346,665 and 30,325 for the six months periods in 2010 and 2009, respectively. The increase in the Company s cash flow provided by financing activities from $0 for the period ended July 2009 to $506,200 to the period ended July 31, 2010 was due to share issue for cash, proceeds from promissory note payable and offset by the repayment of promissory note payable for the period ended July 31, 2010.

As of July 31, 2010 and January 31, 2010, we had $156,117 and $178, respectively in cash. We received funds of $512,000 and $0 for the second quarter ended July 31, 2010 and 2009, respectively through proceeds from share issue for cash. Our operating expenses increased for the 2010 second quarter compared to the same quarter ended July 31, 2009. The increase was primarily due to professional fees related to legal, audit and consulting service fees and general administration expenses related to rental, office expenses and stock based compensation in the 2010 second quarter. As a result of the increase, we recorded a larger net loss for the 2010 second quarter compared to the 2009 second quarter. Therefore we have limited capital resources and will have to rely upon the issuance of common stock to fund our planned operations. Cash and cash equivalents from inception to date have been sufficient to cover expenses involved in starting our business. We will require additional funds to continue to implement our business plan during the next twelve months.

The increase in the Company s cash flow provided by financing activities from $0 to $506,200 was due to the increase in proceeds from share issue for cash, proceeds from promissory note payable and offset by the repayment of promissory note payable for the period ended July 31, 2010 compared with the same period ended July 31, 2009.

We currently do not have enough cash to satisfy our minimum cash requirements and planned business operations for the next twelve months. The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses from inception to July 31,

2010. The Company has no mining claims as of July 31, 2010. These factors raise substantial doubt about the Company's ability to continue as a going concern.

Management continues to actively seek additional sources of capital to fund current and future operations. There is no assurance that the Company will be successful in continuing to raise additional capital and realizing its planned operation. These financial statements do not include any adjustments that might result from the outcome of these uncertainties.

Subsequent to the quarter ended July 31, 2010, the Company received a deposit of $197,500 for share subscription pursuant to sale of common stock to issue 1,316,667 shares of the common stock of the Company for cash at $0.15 per share.

Recent Accounting Pronouncements Critical Accounting Policies

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States ( GAAP ). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

Off Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Company is subject to certain market risks, including changes in interest rates and currency exchange rates. The Company does not undertake any specific actions to limit those exposures.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our principal executive officer and our principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were not effective as of the end of the period covered by this report, based on their evaluation of these controls and procedures required by paragraph (b) of Rules 13a-15 and 15d-15, due to certain material weaknesses in our internal control over financial reporting as discussed below.

Internal Control over Financial Reporting

Management of Alaska Pacific Energy Corp. is responsible for establishing and maintaining adequate internal control over financial reporting. Alaska Pacific Energy Corp.'s internal control over financial reporting is a process, under the supervision of the Chief Executive Officer and the Chief Financial Officer, designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company's financial statements for external purposes in accordance with United States generally accepted accounting principles (GAAP). Internal control over financial reporting includes those policies and procedures that:

Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company's assets;

Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the Board of Directors; and

Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Alaska Pacific Energy Corp.'s management conducted an assessment of the effectiveness of the Company's internal control over financial reporting as of ~~April~~July 3031, 2010, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). As a result of this assessment, management identified material weaknesses in internal control over financial reporting.

A material weakness is a control deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

Alaska Pacific Energy Corp.'s is currently attempting to remedy the Lack of Adequate Independent Oversight (as described above) by searching for and recruiting qualified individuals to sit as independent board members whose mandate is to oversee management. The Company is not in a financial position to effectively remediate the Lack of Segregation of Duties at this time, however, improvements to Independent Oversight will challenge management to justify the information produced for the period-end financial reporting process. This report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management's report in this annual report.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during our ~~first~~second fiscal quarter of our fiscal year ended January 31, ~~2010~~2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management s Report on Internal Controls over Financial Reporting

Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of consolidated financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. There has been no change in the Company s internal control over financial reporting during the ~~first~~second quarter ended ~~April~~July 3031, 2010 that has materially affected, or is reasonably likely to materially affect, the Company s internal control over financial reporting.

The Company s management, including the Company s CEO and ~~CAO~~CFO, does not expect that the Company s disclosure controls and procedures or the Company s internal controls will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable,

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~~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 the controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

This quarterly report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Company to provide only management's report in this quarterly report.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Currently we are not aware of any litigation pending or threatened by or against the Company.

Item 1A. Risk Factors.

Not required because we are a smaller reporting Company.

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

No ~~sales~~Sales of Equity Securities have been conducted and no shares of the Company s stock have been issued during the ~~quarter~~period ended ~~April~~July 3031, 2010.

~~Item~~ 3.On ~~Defaults~~February ~~Upon~~6, ~~Senior~~2010, ~~Securities~~the Company issued 1,000,000 shares of common stock of the Company valued at $0.10 ~~None~~per share or $100,000, pursuant to a business advisory consulting agreement dated November 1, 2009.

On March 18, 2010, pursuant to the License Agreement, the Company issued 15,000,000 restricted common shares of the Company to ENTEC at a deemed price of $0.05 per share or $750,000.

On April 1, 2010, the Company issued 25,000 shares of common stock of the Company for cash valued at $0.15 per share or $3,750.

On April 16, 2010, the Company issued 1,333,333 shares of common stock of the Company for cash valued at $0.15 per share or $200,000.

On May 14, 2010, the Company issued 35,000 shares of common stock of the Company for cash valued at $0.15 per share or $5,250.

On May 17, 2010, the Company issued 20,000 shares of common stock of the Company for cash valued at $0.15 per share or $3,000.

On June 30, 2010, the Company issued 2,000,000 shares of common stock of the Company for cash valued at $0.15 per share or $300,000.

In August 2010, the Company received $67,500 for 450,000 share subscription at $0.15 per share.

In August 2010, the Company issued 866,667 shares of common stock of the Company for cash valued at $0.15 per share or $130,000.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information. None

~~None~~ Item 6. Exhibits and Reports of Form 8-K. ~~(a) Exhibits~~

~~10.8~~ ~~Form~~(a) ~~of Option Agreement~~Exhibits

~~31.1~~ ~~Certifications pursuant to Section 302 of Sarbanes Oxley Act of 2002 32~~10.18 ~~Certifications~~Form ~~pursuant to Section 906~~ of ~~Sarbanes~~Option ~~Oxley Act of 2002~~Agreement

~~(b)~~ ~~Reports~~31.1 Certifications pursuant to Section 302 of ~~Form~~Sarbanes ~~8-K~~Oxley Act of 2002 32.1 Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002

On ~~June~~(b) 9,Reports ~~2010~~of ~~the Company filed a Current Report on~~ Form 8-K (Entry into a Material Definitive Agreement) reporting that it had entered into a purchase agreement to acquire all the outstanding shares and assets of Engineering Technology Inc ( Entec ) a Calgary Alberta based, private company. Pursuant to the terms of the Agreement the Company will pay $7,000,000 and issue a total of 12,000,000 restricted common shares to the Entec shareholders at a deemed price of $0.25 per share. Additionally, APEC will have to raise $5,000,000 dollars for working capital. The agreement is subject to a full due diligence review of Entec. Completion of the due diligence and the closing is expected by no later than July 31, 2010.

20 On June 9, 2010 the Company filed a Current Report on Form 8-K (Entry into a Material Definitive Agreement) reporting that it had entered into a purchase agreement to acquire all the outstanding shares and assets of Engineering Technology Inc ( Entec ) a Calgary Alberta based, private company. Pursuant to the terms of the Agreement the Company will pay $7,000,000 and issue a total of 12,000,000 restricted common shares to the Entec shareholders at a deemed price of $0.25 per share. Additionally, APEC will have to raise $5,000,000 dollars for working capital. The agreement is subject to a full due diligence review of Entec. Completion of the due diligence and the closing is expected by August 31, 2010 has been deferred by mutual agreement until October 31, 2010 with amended and restated agreement.

~~SIGNATURES~~ On September 1, 2010 filed a Current Report on Form 8-K (Changes in registrant s certifying accountant) reporting the resignation of Chisholm Bierwolf Nilson & Morrill, LLC as the Company independent registered public accounting firm. The reports of Chisholm Bierwolf Nilson & Morrill, LLC regarding the financial statements of the Company as of and for the years ended January 31, 2010 and January 31, 2009 do not contain an adverse opinion or disclaimer of opinion, nor are they qualified or modified as to uncertainty, audit scope, or accounting principles. During the years ended January 31, 2009 and January 31, 2010 and continuing through August 29, 2010, there were no disagreements with Chisholm Bierwolf Nilson & Morrill, LLC regarding any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Chisholm Bierwolf Nilson & Morrill, LLC would have caused Chisholm Bierwolf Nilson & Morrill, LLC to make reference to the subject matter of any such disagreement in its reports regarding the Company s financial statements for such periods. During the fiscal years ended January 31, 2009 and January 31, 2010, there were no reportable events as defined in Item 304 (a)(1)(v) of Regulation S-K The Company filed a letter from Chisholm Bierwolf Nilson & Morrill, LLC with the Securities and Exchange Commission as Exhibit 16.1

~~Pursuant~~ Additionally, toin the ~~requirements~~same ofForm ~~Section~~8-K, 13the ~~and~~Company 15reported ~~(d)~~that ofOn August 29, 2010, upon the ~~Securities~~authorization ~~Exchange~~and ~~Act~~approval of ~~1934~~its Board of Directors, the ~~registrant~~Company ~~has~~engaged ~~duly~~Chang ~~caused~~Lee ~~this~~LLP ~~report~~( toChang be) ~~signed~~as on its ~~behalf~~independent byregistered ~~the~~public ~~undersigned,~~accounting ~~thereunto duly authorized~~firm.

~~Alaska~~ No ~~Pacific~~consultations ~~Energy~~occurred ~~Corp. /s/~~among ~~James~~the R.Company ~~King James~~and R.Chang ~~King Dated:~~during ~~June~~the 18years ended January 31, 2010 ~~President~~ and January 31, ~~Chief~~2009 ~~Executive~~and ~~Officer~~continuing through August 29, ~~Chief~~ ~~Financial~~2010, ~~Officer.~~regarding either (i) the application of accounting principles to a specific completed or contemplated transaction, the type of audit opinion that

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might be rendered regarding the Company s financial statements, or other information provided that was an important factor considered by the Company in reaching a decision as to an accounting, auditing, or financial reporting issue, or (ii) any matter that was either subject of disagreement as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions or a reportable event requiring disclosure pursuant to Item 304(a)(1)(iv) of Regulation S-K.

Chang Lee LLP accepted the engagement as the Company s independent registered public accounting firm as of the date of filing the above noted Form 8-K

SIGNATURES

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

Alaska Pacific Energy Corp.


/s/ James R. King
James R. King	Dated: September 20, 2010
President, Chief Executive Officer,
Chief Financial Officer

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