v2.3.0.11

Consolidated Balance Sheets (USD $)	Jun. 30, 2011	Sep. 30, 2010
CURRENT ASSETS:
Cash	$ 982,481	$ 147,326
Accounts receivable	3,441,405	2,717,269
Inventories	15,666	18,280
Loan receivable - related party	199,702	256,122
Prepaid expenses and sundry current assets	36,664	30,198
TOTAL CURRENT ASSETS	4,675,918	3,169,195
PROPERTY AND EQUIPMENT:
Oil property and equipment, net of accumulated depletion	24,554,731	28,024,475
Rental property, net of accumulated amortization	343,332	20,839
Other Property and equipment, net of accummulated depreciation	52,814	62,248
TOTAL PROPERTY AND EQUIPMENT	24,950,877	28,107,562
TOTAL ASSETS	29,626,795	31,276,757
CURRENT LIABILITIES:
Accounts payable	2,899,208	7,566,936
Other payables and accrued liabilities	3,997,122	3,466,256
Current portion of long-term debt	0	5,239,500
Loan payable - shareholders - current	274,890	55,298
TOTAL CURRENT LIABILITIES	7,171,220	16,327,990
LONG-TERM LIABILITIES:
Loan payable - shareholders	137,054	501,436
Deferred income taxes	619,102	1,091,953
TOTAL LONG-TERM LIABILITIES	756,156	1,593,389
SHAREHOLDERS' EQUITY:
Preferred stock, $.001 par value; 10,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $.001 par value; 140,000,000 shares authorized, 31,857,000 shares issued and outstanding	31,857	31,857
Additional paid-in capital	657,575	641,801
Retained earnings	18,699,284	11,354,791
Accumulated other comprehensive income	902,747	346,884
TOTAL SHAREHOLDERS' EQUITY OF THE COMPANY	20,291,463	12,375,333
NONCONTROLLING INTERESTS IN SUBSIDIARY	1,407,956	980,045
TOTAL SHAREHOLDERS' EQUITY	21,699,419	13,355,378
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 29,626,795	$ 31,276,757

Sum of the carrying values as of the balance sheet date of obligations incurred through that date and due within one year (or the operating cycle, if longer), including liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received, and other costs not separately disclosed in the balance sheet that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered.

CHINA DAQING M&H PETROLEUM, INC. 10-Q