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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>UNITED STATES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=4>FORM S-8</font></b></p>

<p style=' margin-bottom:12pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><u><b><font SIZE=4>TORRENT ENERGY CORPORATION</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>


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            <p  align=center style='text-align:center'><u><b><font size=2>Colorado</font></b></u><br> <font size=2>(State or other jurisdiction of incorporation or organization)</font></p> </td>
        <td width="319" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='text-align:center'><u><b><font size=2>84-1153522</font></b></u><br> <font size=2>(I.R.S. Employer Identification No.)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><u><b><font size=2>600 - 666 Burrard Street, Vancouver, British Columbia V6C 2X8</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Address of Principal Executive Offices and Zip Code)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><u><b><font size=2>Amended 2005 Equity Incentive Plan</font></b></u></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Full title of the plan)</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><b><font size=2>Mark Gustafson,</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>President, Chief Executive Officer</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>and Acting Chief Financial Officer</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Torrent Energy Corporation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>600 - 666 Burrard Street</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Vancouver, BC  V6C 2X8</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Name and address of agent for service)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><u><b><font size=2>604.639.3118</font></b></u></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>(Telephone number, including area code, of agent for service)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Copies of all communications, including all communications sent to the agent for service, should be sent to:</font></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><b><font size=2>Bernard I. Pinsky</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Clark Wilson LLP, Barristers and Solicitors</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>800 - 885 West Georgia Street</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Vancouver, BC  V6C 3H1</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Telephone:  604.643.3153</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Facsimile:  604.687.6314</font></b></p>

<p style=' margin-bottom:6pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>CALCULATION OF REGISTRATION FEE</font></b></p>


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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><b><font size=2>Title of Securities to</font></b><br> <b><font size=2>be Registered</font></b><b></b></p> </td>
        <td width="120" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:41.35pt'>
            <p  align=center style='margin-top:3.0pt;margin-right:0in; margin-bottom:3.0pt;margin-left:0in;text-align:center'><b><font size=2>Amount to be</font></b><br> <b><font size=2>Registered</font></b><b></b></p> </td>
        <td width="125" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:41.35pt'>
            <p  align=center style='margin-top:3.0pt;margin-right:0in; margin-bottom:3.0pt;margin-left:0in;text-align:center'><b><font size=2>Proposed</font></b><br> <b><font size=2>Maximum</font></b><br> <b><font size=2>Offering</font></b><br> <b><font size=2>Price Per Share</font></b><b></b></p> </td>
        <td width="133" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:41.35pt'>
            <p  align=center style='margin-top:3.0pt;margin-right:0in; margin-bottom:3.0pt;margin-left:0in;text-align:center'><b><font size=2>Proposed</font></b><br> <b><font size=2>Maximum</font></b><br> <b><font size=2>Aggregate</font></b><br> <b><font size=2>Offering Price</font></b><b></b></p> </td>
        <td width="108" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:41.35pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><b><font size=2>Amount of </font></b><br> <b><font size=2>Registration</font></b><br> <b><font size=2>Fee</font></b><b></b></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom: 3.0pt;line-height:129.6%'><font size=2>Common Stock</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
            <p  align=center style='margin-top:3.0pt;margin-right:-.9pt; margin-bottom:3.0pt;margin-left:0in;text-align:center;line-height:12.0pt; '><font size=2>2,500,000</font><sup><font size=2>(1)</font></sup></p> </td>
        <td width="125" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
            <p  align=center style='margin-top:3.0pt;margin-right:0in; margin-bottom:3.0pt;margin-left:0in;text-align:center;line-height:12.0pt; '><font size=2>$1.62</font><sup><font size=2>(2)</font></sup></p> </td>
        <td width="133" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
            <p  align=center style='margin-top:3.0pt;margin-right:0in; margin-bottom:3.0pt;margin-left:0in;text-align:center;line-height:12.0pt; '><font size=2>$4,050,000</font><sup><font size=2>(2)</font></sup></p> </td>
        <td width="108" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.3in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt;line-height:129.6%'><font size=2>$476.69</font><sup><font size=2>(2)</font></sup></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><sup><font size=2>(1)</font></sup><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are registering an aggregate of up to 2,500,000 of our shares of common stock that we may issue pursuant to our Amended 2005 Equity Incentive Plan.  Our Amended 2005 Equity Incentive Plan authorizes the issuance of a maximum of 2,500,000 shares of our common stock issued to eligible employees, directors, officers and consultants of our company or any of our subsidiaries.  All of the shares issuable under the Amended 2005 Equity Incentive Plan are being registered under this registration statement on Form S-8.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><sup><font size=2>(2)</font></sup><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The price is estimated in accordance with Rule 457(h)(1) under the Securities Act of 1933, as amended, solely for the purpose of calculating the registration fee, based on the average of the bid and asked price ($1.61 bid; $1.63 ask) of the common stock of Torrent Energy Corporation as reported on the National Association of Securities Dealers Inc.'s OTC Bulletin Board on August 30, 2005.</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 2 - </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font SIZE=2>EXPLANATORY NOTE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We prepared this registration statement in accordance with the requirements of Form S-8 under the Securities Act of 1933, to register an aggregate of 2,500,000 shares of our common stock that we may issue pursuant to our Amended 2005 Equity Incentive Plan.  The purpose of the Amended 2005 Equity Incentive Plan is to secure for our company and our shareholders the benefits arising from capital stock ownership by employees, directors or officers of, and consultants or advisors to, our company and subsidiary corporations who have contributed to our company in the past and who are expected to contribute to our company's future growth and success.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Under cover of this registration statement on Form S-8 is our reoffer prospectus prepared in accordance with Part I of Form S-3 under the 1933 Act.  The reoffer prospectus has been included in this registration statement on Form S-8 so that the selling security holders may resell up to:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,700,000 shares of our common stock that we have issued to certain of our consultants, directors or officers, pursuant to our Amended 2005 Equity Incentive Plan; and </font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>200,000 shares of our common stock that we have issued to Highlands Capital, Inc. (formerly BBN Corporate Communications), a company wholly-owned by Bruce Nurse, in connection with an Agreement for Services dated October 1, 2004 that we entered into with BBN Corporate Communications.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Accordingly, we have included the names of these selling security holders, and the nature and number of the securities to be issued to and reoffered by them, in the reoffer prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Part I</font></b></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><b><font size=2>INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 1.</font></b></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Plan Information</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We will send or give the documents containing the information specified in Part I of Form S-8 to individuals who participate in our Amended 2005 Equity Incentive Plan, and who, in the case of an award of performance units, consent to and execute the required form of Stock Option Agreement.  A copy of the Amended 2005 Equity Incentive Plan is attached as Exhibit 4.1 to this Form S-8.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>This registration statement relates to a maximum of 2,500,000 shares of common stock in the capital of Torrent Energy Corporation issuable under the Amended 2005 Equity Incentive Plan.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 2.</font></b></p> </td>
        <td width="485" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Registrant Information and Employee Plan Annual Information</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We will provide, without charge, to each person to whom a copy of this 10(a) prospectus is delivered, upon oral or written request, a copy of any or all documents incorporated by reference in Item 3 of Part II of this registration statement (which documents are incorporated by reference in the 10(a) prospectus).  Requests should be directed to the Chief Executive Officer, Torrent Energy Corporation, 600 - 666 Burrard Street, Vancouver, British Columbia, V6C 2X8.  Our telephone number is 604.639.3118.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>REOFFER PROSPECTUS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>The date of this Reoffer Prospectus is August 31, 2005</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Torrent Energy Corporation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>600 - 666 Burrard Street</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Vancouver, British Columbia, V6C 2X8</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=2>2,500,000 Shares of Common Stock</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>This reoffer prospectus relates to a maximum of 2,500,000 shares of our common stock which may be offered and resold from time to time by the selling security holders identified in this reoffer prospectus.  We anticipate that the selling security holders will offer shares for sale at prevailing prices on the OTC Bulletin Board on the date of sale.  We will not receive any part of the proceeds from sales made under this reoffer prospectus, although we will receive the exercise price at the time of the exercise of any options by the selling security holders.  The selling security holders will bear all sales commissions and similar expenses.  We will, however, pay all of the costs associated with the filing of this registration statement.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The selling security holders and any brokers selling orders on their behalf may be deemed to be &#147;underwriters&#148; within the meaning of the Securities Act of 1933, as amended, in which event commissions received by such brokers may be deemed to be underwriting commissions under the Securities Act of 1933.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Our shares of common stock are quoted on the OTC Bulletin Board under the trading symbol &#147;TREN&#148;.  On August 30, 2005, the last reported closing price for our common stock was $1.61 on the OTC Bulletin Board.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Our principal executive offices are located at 600 - 666 Burrard Street, Vancouver, British Columbia, V6C 2X8.  Our telephone number is 604.639.3118.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font size=2>The shares of common stock offered pursuant to this registration statement involve a high degree of risk.  For more information, please see the section of this Reoffer Prospectus titled &#147;Risk Factors&#148; beginning on page 5.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font SIZE=2>NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.  ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>TABLE OF CONTENTS</font></b></p>


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            <p  style='margin-top:6.0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font SIZE=2>PAGE NUMBER</font></p>  </td> </tr>
    <tr>
        <td width="493" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  style='margin-top:6.0pt'><font SIZE=2>PROSPECTUS SUMMARY</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>4</font></p> </td> </tr>
    <tr>
        <td width="493" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  style='margin-top:6.0pt'><font SIZE=2>OUR BUSINESS</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>4</font></p> </td> </tr>
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        <td width="493" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  style='margin-top:6.0pt'><font SIZE=2>RISK FACTORS </font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>5</font></p> </td> </tr>
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        <td width="493" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  style='margin-top:6.0pt'><font SIZE=2>RISKS RELATED TO THIS OFFERING</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>6</font></p> </td> </tr>
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        <td width="493" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  style='margin-top:6.0pt'><font SIZE=2>RISKS RELATED TO OUR BUSINESS</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>8</font></p> </td> </tr>
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            <p  style='margin-top:6.0pt'><font SIZE=2>USE OF PROCEEDS</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>11</font></p> </td> </tr>
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            <p  style='margin-top:6.0pt'><font SIZE=2>DETERMINATION OF OFFERING PRICE</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>11</font></p> </td> </tr>
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        <td width="493" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  style='margin-top:6.0pt'><font SIZE=2>DILUTION</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>11</font></p> </td> </tr>
    <tr>
        <td width="493" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  style='margin-top:6.0pt'><font SIZE=2>SELLING SECURITY HOLDERS</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>11</font></p> </td> </tr>
    <tr>
        <td width="493" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  style='margin-top:6.0pt'><font SIZE=2>PLAN OF DISTRIBUTION</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>13</font></p> </td> </tr>
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            <p  style='margin-top:6.0pt'><font SIZE=2>INTERESTS OF NAMED EXPERTS AND COUNSEL</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>14</font></p> </td> </tr>
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            <p  style='margin-top:6.0pt'><font SIZE=2>MATERIAL CHANGES</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>15</font></p> </td> </tr>
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            <p  style='margin-top:6.0pt'><font SIZE=2>INCORPORATION OF DOCUMENTS BY REFERENCE</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>15</font></p> </td> </tr>
    <tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:6.0pt;margin-bottom:0pt'><font SIZE=2>DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES</font></p> </td>
        <td width="120" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p  align=center style='margin-top:6.0pt;text-align:center'><font size=2>15</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>PROSPECTUS SUMMARY</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The following summary is qualified in its entirety by the more detailed information appearing elsewhere in this reoffer prospectus.  Consequently, this summary does not contain all of the information that you should consider before investing in our common stock.  You should carefully read the entire reoffer prospectus, including the "Risk Factors" section appearing at page 5, and the documents and information incorporated by reference into this reoffer prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>This reoffer prospectus relates to a maximum of 2,500,000 shares of our common stock which may be offered and resold from time to time by the selling security holders identified in this reoffer prospectus.  It is anticipated that the selling security holders will offer shares for sale at prevailing prices on the OTC Bulletin Board on the date of sale. We will not receive any proceeds from the sales of common stock by the selling security holders under this reoffer prospectus, although we will receive the exercise price at the time of the exercise of any options by the selling security holders.  The selling security holders will pay for the cost of all sales commissions and similar expenses.  We will pay for all of the costs associated with the filing of this registration statement.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Our principal executive offices are located at 600 - 666 Burrard Street, Vancouver, British Columbia, V6C 2X8.  Our telephone number is 604.639.3118.  We maintain a website at www.torrentenergy.com.  Information contained on our website does not form part of this prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>OUR BUSINESS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We are an exploration stage company engaged in the exploration of coalbed methane in the Coos Bay region of Oregon.  Through our wholly-owned subsidiary, Methane Energy Corp., we now hold leases to over 70,000 acres of prospective coalbed methane lands in the Coos Bay region.  Methane Energy operates the exploration project in the Coos Bay region.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We were formed by the merger of Scarab Systems, Inc., a Nevada corporation with iRV, Inc., a Colorado corporation on July 17, 2002.  We were initially involved in the business of providing services to the e-commerce </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>industry.  However, we ceased all activity in the e-commerce industry by the end of the fiscal year ended March 31, 2003.  Scarab Systems, Inc. was a privately owned corporation incorporated on October 8, 2001.  Subsequent to completion of the reorganization, Scarab Systems, Inc. transferred all its assets and liabilities to iRV, Inc.  The directors and executive officers of iRV, Inc. were subsequently reconstituted.  iRV, Inc. changed its name to Scarab Systems, Inc. on March 24, 2003.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>On January 30, 2002, we were given two options in fiscal year 2002 to acquire all the issued and outstanding shares of 485017 B.C. Ltd., a British Columbia company doing business as MarketEdge Direct.  These options were given to us as security against a subscription receivable of $337,500 for 675,000 shares of our common stock from the shareholders of MarketEdge Direct.  MarketEdge Direct was in the business of providing a wide range of marketing products and services.  Effective August 7, 2002, we exercised both of the options and acquired all the issued and outstanding shares of MarketEdge Direct.  Due to disappointing financial results of MarketEdge Direct, on March 28, 2003, we entered into an agreement with the former shareholders of MarketEdge Direct to sell MarketEdge Direct back to them.  As a result, all the issued and outstanding shares of MarketEdge Direct that we acquired were sold back to the
former MarketEdge Direct shareholders for the return to treasury of 540,000 shares of our common stock. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>On March 28, 2003, we acquired all the issued and outstanding shares of Catalyst Technologies, Inc., a British Columbia corporation.  Catalyst is a Vancouver-based, web design and Internet application developer.  Catalyst specializes in the development of web-sites and Internet software design, primarily for the health and nutraceutical industry.  The acquisition of Catalyst was treated as a non-material business combination in fiscal year 2003 and we abandoned Catalyst during the fiscal year ended March 31, 2004 due to a lack of working capital and disappointing financial results. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>On April 30, 2004, we incorporated an Oregon subsidiary company named Methane Energy Corp. in anticipation of acquiring oil and gas properties in the State of Oregon.  On May 11, 2004, Methane Energy entered into a lease purchase and sale agreement with GeoTrends-Hampton International, LLC to purchase GeoTrends-Hampton International&#146;s undivided working interest in certain oil and gas leases for the Coos Bay Basin prospect located onshore in the Coos Bay Basin of Oregon.  To acquire these oil and gas leases, we paid a total of $300,000 in cash and will issue 1,800,000 restricted shares of our common stock in three performance-based tranches.  The lease purchase and sale agreement closed on June 22, 2004.  On closing, we paid $100,000 in cash and issued 600,000 shares of our common stock.  We have since paid the remaining $200,000 so that the cash consideration is fully paid and have issued an additional
600,000 shares of our common stock pursuant to the second tranche.  A third tranche of 600,000 shares of our common stock will be issued if and when certain conditions are fulfilled. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Pursuant to the lease purchase and sale agreement with Geo-Trends-Hampton International, LLC, we acquired leases of certain properties in the Coos Bay area of Oregon which are prospective for oil and gas exploration.  Leases were acquired from the State of Oregon and from property owners, and we have amassed approximately 60,000 acres under lease.  We wish to lease additional properties in the Coos Bay area.  As a result of change in business, we received shareholder approval on July 13, 2004 to change our name from Scarab System, Inc. to Torrent Energy Corporation. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>There were 24,748,293 shares of our common stock issued and outstanding as at August 1, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>RISK FACTORS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>An investment in our common stock involves a number of very significant risks.  You should carefully consider the following risks and uncertainties in addition to other information in this reoffer prospectus in evaluating our company and its business before purchasing shares of our company's common stock.  Our business, operating results and financial condition could be seriously harmed due to any of these risks.  Also, the risks described below are not the only ones facing our company.  Additional risks not presently known to us may also impair our business operations.  You could lose all or part of your investment due to any of these risks.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Much of the information included in this reoffer prospectus includes or is based upon estimates, projections or other "forward-looking statements".  The term &#145;forward-looking statements&#146; is defined in the Private Securities Litigation Reform Act of 1995.  The term relates to future events or our future financial performance.  In some cases, you can </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>identify forward looking statements by terminology such as &#147;may&#148;, &#147;should&#148;, &#147;expects&#148;, &#147;plans&#148;, &#147;anticipates&#148;, &#147;believes&#148;, &#147;estimates&#148;, &#147;predicts&#148;, &#147;potential&#148; and &#147;continue&#148; or the negative of these terms or other comparable terminology.  These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks described in this section, that may cause our or our industry&#146;s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward looking statements.  While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the
direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions, or other future performance suggested in this prospectus.  We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>In evaluating us, our business and any investment in our business, readers should carefully consider the following factors, as well as the risks and uncertainties discussed in our annual report on Form 10-KSB filed with the Securities and Exchange Commission on June 30, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><b><font size=2>Risks Related To This Offering</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Sales of a substantial number of shares of our common stock into the public market by any selling stockholders will dilute your interest and may result in significant downward pressure on the price of our common stock, which could affect the ability of our stockholders to realize the current trading price of our common stock.  In addition, a decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Sales of a substantial number of shares of our common stock in the public market could cause a reduction in the market price of our common stock.  We had 24,748,293 shares of common stock issued and outstanding as of August 1, 2005.  When this registration statement becomes effective, the selling stockholders may be reselling up to 2,500,000 shares of our common stock.  As a result, a substantial number of our shares of common stock may be available for resale subject to any vesting provisions contained in the individual stock option agreements, which could have an adverse effect on the price of our common stock.  The issuance of any such shares may also result in a reduction of the book value of the outstanding shares of our common stock, as well as a reduction in the proportionate ownership and voting power of all other stockholders.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Any significant downward pressure on the price of our common stock as the selling stockholders sell the shares of our common stock could encourage short sales by the selling stockholders or others.  Any such short sales could place further downward pressure on the price of our common stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>A prolonged decline in the price of our common stock could have a negative impact on our ability to raise capital.  Because our operations have been primarily financed through the sale of equity securities, a decline in the price of our common stock could be especially detrimental to our liquidity and our continued operations.  Any reduction in our ability to raise equity capital in the future could force us to reallocate funds from other planned uses and have a significant negative effect on our business plans and operations, including our ability to develop new products, continue our current operations and meet our obligations as and when they come due.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Trading on the OTC Bulletin Board may be volatile and sporadic, which could depress the market price of our shares of common stock and make it difficult for our stockholders to resell their shares.  </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Our common stock is quoted on the OTC Bulletin Board service of the National Association of Securities Dealers.  Trading in stock quoted on the OTC Bulletin Board is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the company's operations or business prospects.  This volatility could depress the market price of our common stock for reasons unrelated to operating performance.  Moreover, the OTC Bulletin Board is not a stock exchange, and trading of securities on the OTC Bulletin Board is often more sporadic than the trading of securities listed on a quotation system like Nasdaq or a stock exchange like Amex.  Accordingly, you may have difficulty reselling any of the shares you purchase from the selling stockholders.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>If we fail to remain current in our reporting requirements, we could be removed from the OTC Bulletin Board which would limit the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Companies trading on the OTC Bulletin Board, such as us, must be reporting issuers under Section 12 of the Securities Exchange Act of 1934, as amended, and must be current in their reports under Section 13, in order to maintain price quotation privileges on the OTC Bulletin Board. If we fail to remain current on our reporting requirements, we could be removed from the OTC Bulletin Board. As a result, the market liquidity for our securities could be severely adversely affected by limiting the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Our shares of common stock is subject to the &#147;penny stock&#148; rules of the Securities and Exchange Commission and the trading market in our securities is limited, which makes transactions in our shares of common stock cumbersome and may reduce the value of an investment in our shares of common stock. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The Securities and Exchange Commission has adopted Rule 15g-9 which establishes the definition of a &#147;penny stock,&#148; for the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require: </font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="2" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td width="484" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>that a broker or dealer approve a person&#146;s account for transactions in penny stocks; and</font></p> </td>
        <td  width="44">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased.</font></p> </td> </tr>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>In order to approve a person&#146;s account for transactions in penny stocks, the broker or dealer must: </font></p>


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        <td  colspan="2" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td width="470" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>obtain financial information and investment experience objectives of the person; and</font></p> </td>
        <td  width="57">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks. </font></p> </td> </tr>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the Securities and Exchange Commission relating to the penny stock market, which, in highlight form: </font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="2" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td width="491" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>sets forth the basis on which the broker or dealer made the suitability determination; and</font></p> </td>
        <td  width="43">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>that the broker or dealer received a signed, written agreement from the investor prior to the transaction. </font></p> </td> </tr>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Generally, brokers may be less willing to execute transactions in securities subject to the &#147;penny stock&#148; rules. This may make it more difficult for investors to dispose of our shares of common stock and cause a decline in the market value of our shares of common stock. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>National Association of Securities Dealers Inc. sales practice requirements may also limit a stockholder&#146;s ability to buy and sell our shares of common stock.</font></i><font size=2> </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>In addition to the &#147;penny stock&#148; rules described above, the National Association of Securities Dealers Inc. has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer.  Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer&#146;s financial status, tax status, investment objectives and other information.  Under </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>interpretations of these rules, the National Association of Securities Dealers Inc. believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers.  The National Association of Securities Dealers Inc. requirements make it more difficult for broker-dealers to recommend that their customers buy our shares of common stock, which may limit your ability to buy and sell our shares of common stock and have an adverse effect on the market for its shares. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><b><font size=2>Risks Related To Our Business</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>We have a history of losses which may continue, which may negatively impact our ability to achieve our business objectives.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We incurred net losses of $1,240,917 for the period ended June 30, 2005.  We cannot assure you that we can achieve or sustain profitability on a quarterly or annual basis in the future.  Our operations are subject to the risks and competition inherent in the establishment of a business enterprise. There can be no assurance that future operations will be profitable. We may not achieve our business objectives and the failure to achieve such goals would have an adverse impact on us. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>If we are unable to obtain additional funding our business operations will be harmed and if we do obtain additional financing our then existing shareholders may suffer substantial dilution. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We will require additional funds to sustain and expand our oil and gas exploration activities.  We anticipate that we will require up to approximately $15,000,000 to fund our continued operations for the period ending June 30, 2006.  Additional capital will be required to effectively support the operations and to otherwise implement our overall business strategy.  There can be no assurance that financing will be available in amounts or on terms acceptable to us, if at all. The inability to obtain additional capital will restrict our ability to grow and may reduce our ability to continue to conduct business operations. If we are unable to obtain additional financing, we will likely be required to curtail our exploration plans and possibly cease our operations. Any additional equity financing may involve substantial dilution to our then existing shareholders. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Our independent auditors have expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>In their report dated June 3, 2005, our independent auditors stated that our financial statements for the fiscal year ended March 31, 2005 were prepared assuming that we would continue as a going concern. Our ability to continue as a going concern is an issue raised as a result of recurring losses from operations and working capital deficiency. We continue to experience net operating losses. Our ability to continue as a going concern is subject to our ability to obtain necessary funding from outside sources, including obtaining additional funding from the sale of our securities. Our continued net operating losses increases the difficulty in meeting such goals and there can be no assurances that such methods will prove successful. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>We have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We have no history of revenues from operations and have no significant tangible assets. We have yet to generate positive earnings and there can be no assurance that we will ever operate profitably. Our company has a limited operating history in the business of oil and gas exploration and must be considered in the development stage. Our success is significantly dependent on a successful acquisition, drilling, completion and production program. Our operations will be subject to all the risks inherent in the establishment of a developing enterprise and the uncertainties arising from the absence of a significant operating history. We may be unable to locate recoverable reserves or operate on a profitable basis. We are in the development stage and potential investors should be aware of the difficulties normally encountered by enterprises in the development stage. If our business plan is not successful, and we are
not able to operate profitably, investors may lose some or all of their investment in our company. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>If we are unable to retain the services of Mr. Gustafson or if we are unable to successfully recruit qualified managerial and field personnel having experience in oil and gas exploration, we may not be able to continue our operations. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Our success depends to a significant extent upon the continued service of Mr. Mark Gustafson, our president, chief executive officer, acting chief financial officer and a director. Loss of the services of Mr. Gustafson could have a material adverse effect on our growth, revenues, and prospective business. We do not maintain key-man insurance on the life of Mr. Gustafson. In addition, in order to successfully implement and manage our business plan, we will be dependent upon, among other things, successfully recruiting qualified managerial and field personnel having experience in the oil and gas exploration business. Competition for qualified individuals is intense. There can be no assurance that we will be able to find, attract and retain existing employees or that we will be able to find, attract and retain qualified personnel on acceptable terms. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>As our properties are in the exploration and development stage, there can be no assurance that we will establish commercial discoveries on our properties. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Exploration for economic reserves of oil and gas is subject to a number of risk factors. Few properties that are explored are ultimately developed into producing oil and/or gas wells. Our properties are in the exploration and development stage only and are without proven reserves of oil and gas. We may not establish commercial discoveries on any of our properties. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>We are unsure about the likelihood that we will discover and establish a profitable coalbed methane gas production in the Coos Bay region. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Currently, there is no commercial production of coal in the state of Oregon.  Additionally, there are no coal reserves attributed to the state of Oregon.  Coalbed methane gas only accounts for a small percentage of all natural gas production in the United States, and the closest coalbed methane production to the Coos Bay Region occurs in the state of Wyoming.  As a result, it is unlikely that we will discover any significant amount of coalbed methane in the Coos Bay Region or be able to establish a well that will produce a profitable amount of coalbed methane gas. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Even if we are able to, the potential profitability of oil and gas ventures depends upon factors beyond the control of our company. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The potential profitability of oil and gas properties is dependent upon many factors beyond our control. For instance, world prices and markets for oil and gas are unpredictable, highly volatile, potentially subject to governmental fixing, pegging, controls or any combination of these and other factors, and respond to changes in domestic, international, political, social and economic environments. Additionally, due to worldwide economic uncertainty, the availability and cost of funds for production and other expenses have become increasingly difficult, if not impossible, to project. In addition, adverse weather conditions can also hinder drilling operations.  These changes and events may materially affect our future financial performance.  These factors cannot be accurately predicted and the combination of these factors may result in our company not receiving an adequate return on invested capital. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Even if we are able to discover and generate a gas well, there can be no assurance the well will become profitable. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We have not yet made a discovery of coalbed methane gas or drilled a gas well to capture any gas.  Even if we are able to, a productive well may become uneconomic in the event water or other deleterious substances are encountered which impair or prevent the production of oil and/or gas from the well. In addition, production from any well may be unmarketable if it is impregnated with water or other deleterious substances. In addition, the marketability of oil and gas which may be acquired or discovered will be affected by numerous factors, including the proximity and capacity of oil and gas pipelines and processing equipment, market fluctuations of prices, taxes, royalties, land tenure, allowable production and environmental protection, all of which could result in greater expenses than revenue generated by the well. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 10 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Competition in the oil and gas industry is highly competitive and there is no assurance that we will be successful in acquiring the leases. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The oil and gas industry is intensely competitive. We compete with numerous individuals and companies, including many major oil and gas companies which have substantially greater technical, financial and operational resources and staffs. Accordingly, there is a high degree of competition for desirable oil and gas leases, suitable properties for drilling operations and necessary drilling equipment, as well as for access to funds. We cannot predict if the necessary funds can be raised or that any projected work will be completed. Our budget anticipates our acquisition of additional acreage of lease in the Coos Bay basin. This acreage may not become available or if it is available for leasing, that we may not be successful in acquiring the leases. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>The marketability of natural resources will be affected by numerous factors beyond our control which may result in us not receiving an adequate return on invested capital to be profitable or viable. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The marketability of natural resources which may be acquired or discovered by us will be affected by numerous factors beyond our control. These factors include market fluctuations in oil and gas pricing and demand, the proximity and capacity of natural resource markets and processing equipment, governmental regulations, land tenure, land use, regulation concerning the importing and exporting of oil and gas and environmental protection regulations. The exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in us not receiving an adequate return on invested capital to be profitable or viable. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Oil and gas operations are subject to comprehensive regulation which may cause substantial delays or require capital outlays in excess of those anticipated causing an adverse effect on our company. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Oil and gas operations are subject to federal, state, and local laws relating to the protection of the environment, including laws regulating removal of natural resources from the ground and the discharge of materials into the environment. Oil and gas operations are also subject to federal, state, and local laws and regulations which seek to maintain health and safety standards by regulating the design and use of drilling methods and equipment. Various permits from government bodies are required for drilling operations to be conducted; no assurance can be given that such permits will be received. Environmental standards imposed by federal, provincial, or local authorities may be changed and any such changes may have material adverse effects on our activities. Moreover, compliance with such laws may cause substantial delays or require capital outlays in excess of those anticipated, thus causing an adverse
effect on us. Additionally, we may be subject to liability for pollution or other environmental damages. To date, we have not been required to spend any material amount on compliance with environmental regulations. However, we may be required to do so in the future and this may affect our ability to expand or maintain our operations. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Exploration and production activities are subject to certain environmental regulations which may prevent or delay the commencement or continuation of our operations. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>In general, our exploration and production activities are subject to certain federal, state and local laws and regulations relating to environmental quality and pollution control. Such laws and regulations increase the costs of these activities and may prevent or delay the commencement or continuation of a given operation. Compliance with these laws and regulations has not had a material effect on our operations or financial condition to date. Specifically, we are subject to legislation regarding emissions into the environment, water discharges and storage and disposition of hazardous wastes. In addition, legislation has been enacted which requires well and facility sites to be abandoned and reclaimed to the satisfaction of state authorities. However, such laws and regulations are frequently changed and we are unable to predict the ultimate cost of compliance. Generally, environmental requirements do not
appear to affect us any differently or to any greater or lesser extent than other companies in the industry.  We believe that our operations comply, in all material respects, with all applicable environmental regulations.  Our operating partners maintain insurance coverage customary to the industry; however, we are not fully insured against all possible environmental risks. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 11 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><i><font size=2>Exploratory drilling involves many risks and we may become liable for pollution or other liabilities which may have an adverse effect on our financial position. </font></i></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Drilling operations generally involve a high degree of risk. Hazards such as unusual or unexpected geological formations, power outages, labor disruptions, blow-outs, sour gas leakage, fire, inability to obtain suitable or adequate machinery, equipment or labor, and other risks are involved. We may become subject to liability for pollution or hazards against which it cannot adequately insure or which it may elect not to insure. Incurring any such liability may have a material adverse effect on our financial position and operations. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>USE OF PROCEEDS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The options being registered by this registration statement, including the shares of common stock that may be issued by our company upon the exercise of the options granted to the selling security holders, are being registered for the benefit of the selling security holders named in this reoffer prospectus.  All proceeds from the resale of these shares will go to the selling security holders, although we will receive the exercise price at the time of the exercise of any options by the selling security holders.  As we can predict neither the exercise price for share purchase options that we have not yet granted nor the number of share purchase options that will be exercised by the selling security holders that do currently hold share purchase options, we cannot estimate the aggregate dollar amount that we might receive upon the exercise of these share purchase options from time to time.  Accordingly, we cannot
allocate these proceeds to a specific purpose, though we propose to use any such proceeds for general working capital purposes as and when they are received.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>DETERMINATION OF OFFERING PRICE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The selling security holders may sell the shares of common stock issued to them from time to time at prices and at terms then prevailing or at prices related to the then current market price, or in negotiated transactions.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>DILUTION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Because any selling security holders who offer and sell shares of common stock covered by this reoffer prospectus may do so at various times, at prices and at terms then prevailing or at prices related to the then-current market price, or in negotiated transactions, we have not included in this reoffer prospectus information about the dilution, if any, to the public arising out of these sales.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>SELLING SECURITY HOLDERS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The following table identifies the selling security holders and indicates (i) the nature of any material relationship that such selling security holder has had with us for the past three years, (ii) the number of shares held by the selling security holders, (iii) the amount to be offered for each selling security holder's account, and (iv) the number of shares and percentage of outstanding shares of the shares of common stock in our capital to be owned by each selling security holder after the sale of the shares offered by them pursuant to this offering.  The selling security holders are not obligated to sell the shares offered in this reoffer prospectus and may choose not to sell any of the shares or only a part of the shares that they receive.  Securities and Exchange Commission rules require that we assume that the selling security holders exercise all of their options and sell all of the shares offered
with this reoffer prospectus.</font></p>

<p style=' margin-bottom:12pt; margin-top:12pt;text-align:left;'><font size=2>Under the Securities Exchange Act of 1934, any person engaged in a distribution of the shares offered by this reoffer prospectus may not simultaneously engage in market making activities with respect to our shares of common stock during the applicable "cooling off" periods prior to the commencement of such distribution.  In addition, and without limiting the foregoing, the selling security holders will be subject to applicable provisions of the Securities Exchange Act of 1934 and the rules and regulations thereunder, which provisions may limit the timing of purchases and sales of the shares by the selling security holders.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom: 3.0pt'><b><font size=2>Selling Security Holder</font></b></p> </td>
        <td  colspan="2" valign=top style='border:solid black .5pt;border-color:gray; border-left:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><b><font size=2>Number of Shares Beneficially Owned</font><sup><font size=2>(1)</font></sup></b></p> </td>
        <td  colspan="2" valign=top style='border:solid black .5pt;border-color:gray; border-left:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><b><font size=2>Number of Shares Subject to Options</font><sup><font size=2>(2)</font></sup></b></p> </td>
        <td  colspan="2" valign=top style='border:solid black .5pt;border-color:gray; border-left:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><b><font size=2>Shares Being Registered</font></b></p> </td>
        <td  colspan="4" valign=top style='border:solid black .5pt;border-color:gray; border-left:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><b><font size=2>Percentage of Shares Beneficially Owned</font><sup><font size=2>(3)</font></sup></b></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom: 3.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom: 3.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom: 3.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom: 3.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><b><font size=2>Before Offering</font></b></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:3.0pt;margin-bottom:3.0pt'><b><font size=2>After Offering</font></b></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Mark Gustafson</font><sup><font size=2>(4)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>577,500</font><sup><font size=2>(5)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>400,000</font><sup><font size=2>(6)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>400,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>1.5%</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>2.3%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>John Carlson</font><sup><font size=2>(7)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>183,750</font><sup><font size=2>(8)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>245,000</font><sup><font size=2>(9)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>200,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>0.4%</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>0.9%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>George L. Hampton III</font><sup><font size=2>(10)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>583,750</font><sup><font size=2>(8)(11)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>245,000</font><sup><font size=2>(9)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>200,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>1.8%</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>2.4%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Thomas Deacon</font><sup><font size=2>(12)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>433,750</font><sup><font size=2>(8)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>245,000</font><sup><font size=2>(9)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>200,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>1.2%</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>1.8%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Steve Pappajohn</font><sup><font size=2>(13)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>583,750</font><sup><font size=2>(8)(11)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>245,000</font><sup><font size=2>(9)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>200,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>1.8%</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>2.4%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Tom Kerestes</font><sup><font size=2>(14)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>150,000</font><sup><font size=2>(15)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>300,000</font><sup><font size=2>(16)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>300,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>Nil</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>0.6%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Alan Niem</font></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>10,000</font><sup><font size=2>(15)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font><sup><font size=2>(17)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>Nil</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>0.4%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Russell Ralls</font></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>10,000</font><sup><font size=2>(15)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font><sup><font size=2>(17)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>Nil</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>0.4%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Walter Johnson</font></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>10,000</font><sup><font size=2>(15)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font><sup><font size=2>(17)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>Nil</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>0.4%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Loran Wiese</font></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>10,000</font><sup><font size=2>(15)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font><sup><font size=2>(17)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>Nil</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>0.4%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Roger Canady</font></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>10,000</font><sup><font size=2>(15)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font><sup><font size=2>(17)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>40,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>Nil</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>0.4%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><font size=2>Highlands Capital, Inc.</font></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>200,000</font><sup><font size=2>(15)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>200,000</font><sup><font size=2>(18)</font></sup></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>200,000</font></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>Nil</font></p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><font size=2>0.8%</font></p> </td> </tr>
    <tr>
        <td  colspan="3" valign=top style='border:solid black .5pt;border-color:gray; border-top:none;padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:3.0pt;margin-bottom:0pt'><b><font SIZE=2>TOTAL:</font></b></p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'>&nbsp;</p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'>&nbsp;</p> </td>
        <td  colspan="2" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'><b><font size=2>1,900,000</font></b></p> </td>
        <td width="69" valign=top style='border-top:none;border-left:none; border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'>&nbsp;</p> </td>
        <td  colspan="3" valign=top style='border-top:none; border-left:none;border-bottom:solid black .5pt;border-right:solid black .5pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:3.0pt;margin-bottom:0in'>&nbsp;</p> </td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(1)</font></sup></p> </td>
        <td  colspan="10" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Represents shares of our common stock beneficially owned by the named selling stockholder. This figure includes shares underlying the options held by the named selling stockholder that may be exercisable as of, within 60 days after the date of, this reoffer prospectus, but does not include any shares underlying those options that cannot be exercised within that period.</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(2)</font></sup></p> </td>
        <td  colspan="10" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Represents shares of our common stock underlying options granted to each of the named selling stockholders under the Amended 2005 Equity Incentive Plan, whether or not exercisable as of, or within 60 days of, the date of this reoffer prospectus.  Stock options are generally vested over 18 months beginning on the date of the grant of such options and vesting as to an additional 25% every six months.</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(3)</font></sup></p> </td>
        <td  colspan="9" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on 24,748,293 shares of our common stock outstanding as of August 1, 2005.</font></p> </td>
        <td   colspan="5">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(4)</font></sup></p> </td>
        <td  colspan="10" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mr. Gustafson is a director and the president, chief executive officer and acting chief financial officer of our company and the sole owner of MGG Consulting.</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(5)</font></sup></p> </td>
        <td  colspan="6" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Includes 200,000 options currently exercisable.</font></p> </td>
        <td   colspan="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(6)</font></sup></p> </td>
        <td  colspan="10" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>This figure represents options granted on April 1, 2005 at an exercise price of $1.25 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by September 17, 2006.</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(7)</font></sup></p> </td>
        <td  colspan="9" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mr. Carlson is a director of our company and chief operating officer of our subsidiary, Methane Energy Corp.</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(8)</font></sup></p> </td>
        <td  colspan="6" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Includes 133,750 options currently exercisable.</font></p> </td>
        <td   colspan="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(9)</font></sup></p> </td>
        <td  colspan="10" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>This figure represents (i) 45,000 options granted on August 3, 2004 at an exercise price of $0.50 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by December 31, 2005; and (ii) 200,000 options granted on April 1, 2005 at an exercise price of $1.25 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by September 17, 2006.</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(10)</font></sup></p> </td>
        <td  colspan="6" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mr. Hampton is a director of our company.</font></p> </td>
        <td   colspan="9">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  width="7">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(11)</font></sup></p> </td>
        <td  colspan="10" valign=top style=' padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>GeoTrends-Hampton International LLC owns a total of 900,000 common shares of our company, of which 450,000 shares are held by Mr. Pappajohn and 450,000 shares are held by Mr. Hampton, both of whom are 50% owners of GeoTrends-Hampton International LLC.</font></p> </td>
        <td  width="8">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="9" ></td>

        <td width="69" ></td>

        <td width="147" ></td>

        <td width="181" ></td>

        <td width="9" ></td>

        <td width="20" ></td>

        <td width="152" ></td>

        <td width="103" ></td>

        <td width="35" ></td>

        <td width="100" ></td>

        <td width="41" ></td>

        <td width="40" ></td>

        <td width="11" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><sup><font size=2>&nbsp;</font></sup></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><sup><font size=2>&nbsp;</font></sup></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<pAGE>


<table border="0" cellspacing=0 cellpadding=0 width="48" style=' margin-left:223.25pt;border-collapse:collapse'>
    <tr>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 13 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><sup><font size=2>&nbsp;</font></sup></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><sup><font size=2>&nbsp;</font></sup></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><sup><font size=2>&nbsp;</font></sup></p>


<table  border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
    <tr>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(12)</font></sup></p> </td>
        <td  colspan="4" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mr. Deacon is the chief financial officer, vice president, land and a director of our subsidiary, Methane Energy Corp.  Mr. Deacon is also the president, secretary and a director of our subsidiary, Cascadia Energy Corp.</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(13)</font></sup></p> </td>
        <td  colspan="2" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mr. Pappajohn is a director and president of our subsidiary, Methane Energy Corp.</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(14)</font></sup></p> </td>
        <td  colspan="3" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mr. Kerestes is the vice president operations of our subsidiary, Methane Energy Corp.</font></p> </td>
        <td  >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(15)</font></sup></p> </td>
        <td width="466" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Options currently exercisable.</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(16)</font></sup></p> </td>
        <td  colspan="4" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>This figure represents options granted on May 1, 2005 at an exercise price of $1.25 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by November 1, 2006.</font></p> </td> </tr>
    <tr>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(17)</font></sup></p> </td>
        <td  colspan="4" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>This figure represents options granted on June 2, 2005 at an exercise price of $2.00 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by December 2, 2006.</font></p> </td> </tr>
    <tr>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><sup><font size=2>(18)</font></sup></p> </td>
        <td  colspan="4" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>This figure represents options granted on October 1, 2004 to Highlands Capital, Inc. (formerly BBN Corporate Communications), a company wholly-owned by Bruce Nurse, in connection with an Agreement for Services, at an exercise price of $0.83 per share, which vest as to 25% immediately, and 25% every three months so that all options vest by July 1, 2005.  These options were originally granted outside of the Amended 2005 Equity Incentive Plan, however, was amended by a stock option and subscription agreement dated July 1, 2005 so that the options are included under the Amended 2005 Equity Incentive Plan.</font></p> </td> </tr>
    <tr>
        <td width="69" ></td>

        <td width="238" ></td>

        <td width="365" ></td>

        <td width="21" ></td>

        <td  ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The information provided in the table above with respect to the selling security holders has been obtained from each of the selling security holders.  Because the selling security holders may sell all or some portion of the shares of common stock beneficially owned by them, only an estimate (assuming the selling security holders sell all of the shares offered hereby) can be given as to the number of shares of common stock that will be beneficially owned by each selling security holder after this offering.  In addition, the selling security holders may have sold, transferred or otherwise disposed of, or may sell, transfer or otherwise dispose of, at any time or from time to time since the date on which he provided the information regarding the shares of common stock beneficially owned by them, all or a portion of the shares of common stock beneficially owned by them in transactions exempt from the registration
requirements of the Securities Act of 1933.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>PLAN OF DISTRIBUTION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The selling security holders may, from time to time, sell all or a portion of their shares of our common stock on any market upon which the common stock may be quoted (currently the OTC Bulletin Board), in privately negotiated transactions or otherwise.  Such sales may be at fixed prices prevailing at the time of sale, at prices related to the market prices or at negotiated prices.  The shares of common stock being offered by this reoffer prospectus may be sold by the selling security holders by one or more of the following methods, without limitation:</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.5in;text-align:left;'><font size=2>(a)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>block trades in which the broker or dealer so engaged will attempt to sell the shares of common stock as agent but may position and resell a portion of the block as principal to facilitate the transaction;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.5in;text-align:left;'><font size=2>(b)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>purchases by broker or dealer as principal and resale by the broker or dealer for its account pursuant to this reoffer prospectus;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="551" style=' margin-left:36.35pt;border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  colspan="2" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>an exchange distribution in accordance with the rules of the applicable exchange;</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  colspan="4" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>ordinary brokerage transactions and transactions in which the broker solicits purchasers;</font></p> </td>
        <td  width="13">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(e)</font></p> </td>
        <td width="196" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>privately negotiated transactions;</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(f)</font></p> </td>
        <td  colspan="5" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>market sales (both long and short to the extent permitted under the federal securities laws);</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(g)</font></p> </td>
        <td  colspan="3" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>at the market to or through market makers or into an existing market for the shares;</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="196" ></td>

        <td width="256" ></td>

        <td width="11" ></td>

        <td width="27" ></td>

        <td width="13" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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    <tr>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 14 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.5in;text-align:left;'><font size=2>(h)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>through transactions in options, swaps or other derivatives (whether exchange listed or otherwise); and</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="392" style=' margin-left:36.35pt;border-collapse:collapse'>
    <tr>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td width="344" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a combination of any of the aforementioned methods of sale.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>In effecting sales, brokers and dealers engaged by the selling security holders may arrange for other brokers or dealers to participate.  Brokers or dealers may receive commissions or discounts from a selling security holder or, if any of the broker-dealers act as an agent for the purchaser of such shares, from the purchaser in amounts to be negotiated which are not expected to exceed those customary in the types of transactions involved.  Broker-dealers may agree with a selling security holder to sell a specified number of the shares of common stock at a stipulated price per share.  Such an agreement may also require the broker-dealer to purchase as principal any unsold shares of common stock at the price required to fulfil the broker-dealer commitment to the selling security holders if such broker-dealer is unable to sell the shares on behalf of the selling security holder.  Broker-dealers who acquire
shares of common stock as principal may thereafter resell the shares of common stock from time to time in transactions which may involve block transactions and sales to and through other broker-dealers, including transactions of the nature described above.  Such sales by a broker-dealer could be at prices and on terms then prevailing at the time of sale, at prices related to the then-current market price or in negotiated transactions.  In connection with such resales, the broker-dealer may pay to or receive from the purchasers of the shares commissions as described above.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The selling security holders and any broker-dealers or agents that participate with the selling security holders in the sale of the shares of common stock may be deemed to be "underwriters" within the meaning of the Securities Act of 1933 in connection with these sales.  In that event, any commissions received by the broker-dealers or agents and any profit on the resale of the shares of common stock purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act of 1933.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>From time to time, the selling security holders may pledge their shares of common stock pursuant to the margin provisions of their customer agreements with their respective brokers.  Upon a default by a selling security holder, the broker may offer and sell the pledged shares of common stock from time to time.  Upon a sale of the shares of common stock, the selling security holder intends to comply with the prospectus delivery requirements under the Securities Act of 1933 by delivering a prospectus to each purchaser in the transaction.  We intend to file any amendments or other necessary documents in compliance with the Securities Act of 1933 which may be required in the event the selling security holder defaults under any customer agreement with brokers.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>To the extent required under the Securities Act of 1933, a post-effective amendment to this registration statement will be filed, disclosing the name of any broker-dealers, the number of shares of common stock involved, the price at which the common stock is to be sold, the commission paid or discounts or concessions allowed to such broker-dealers, where applicable.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We and the selling security holders will be subject to applicable provisions of the Securities Exchange Act of 1934 and the rules and regulations under it, including, without limitation, Rule 10b-5 and, insofar as the selling security holders are a distribution participant and we, under certain circumstances, may be a distribution participant, under Regulation M.  All of the foregoing may affect the marketability of the common stock.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>All expenses of the registration statement including, but not limited to, legal, accounting, printing and mailing fees are and will be borne by us.  Any commissions, discounts or other fees payable to brokers or dealers in connection with any sale of the shares of common stock will be borne by the selling security holder, the purchasers participating in such transaction, or both.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Any shares of common stock covered by this reoffer prospectus which qualify for sale pursuant to Rule 144 under the Securities Act of 1933 may be sold under Rule 144 rather than pursuant to this reoffer prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>INTERESTS OF NAMED EXPERTS AND COUNSEL</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>The consolidated financial statements for the fiscal year ended March 31, 2005 incorporated by reference in this re-offer prospectus have been audited by Ernst &amp; Young LLP, independent registered public accounting firm, to the </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>
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        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 15 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>extent and for the period set forth in their report, incorporated herein by reference, and is incorporated herein in reliance upon such report given upon the authority of said firm as experts in auditing and accounting.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>MATERIAL CHANGES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>There have been no material changes to the affairs of our company since the filing of our Form 10-KSB on June 30, 2005, and Form 10-QSB filed on August 10, 2005, which have not previously been described in a report on Form 8-K.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>INCORPORATION OF DOCUMENTS BY REFERENCE</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>See Part II, Item 3 on page 15 hereof for a list of documents filed by our company with the United States Securities and Exchange Commission, which are incorporated herein by this reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>You should only rely on the information incorporated by reference or provided in this reoffer prospectus or any supplement.  We have not authorized anyone else to provide you with different  information.  The common stock is not being offered in any state where the offer is not permitted.  You should not assume that the information in this reoffer prospectus or any supplement is accurate as of any date other than the date on the front of this reoffer prospectus.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>We file Form 8-K reports and other information with the Securities and Exchange Commission as is required by the Securities Exchange Act of 1934.  You may read and copy any reports, statements or other information we have filed at the Securities and Exchange Commission's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549.  Please call the Securities and Exchange Commission at 1-800-732-0330 or 202-551-8090 for further information on the Public Reference Rooms.  Our filings are also available on the Internet at the Securities and Exchange Commission's website at http:\\www.sec.gov.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font SIZE=2>FOR SECURITIES ACT LIABILITIES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling our business pursuant to the provision in the section entitled "Indemnification of Directors and Officers" (see below), we have been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is therefore unenforceable.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Part II</font></b></p>

<p style=' margin-bottom:0pt; margin-top:6pt;text-align:center;'><b><font SIZE=2>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</font></b></p>


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        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item</font></b><font size=2>&nbsp;</font><b><font size=2>3.</font></b></p> </td>
        <td width="463" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Incorporation of Documents by Reference.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font size=2>The Securities and Exchange Commission allows us to "incorporate by reference" information into this registration statement, which means that we can disclose important information to you by referring you to another document filed separately with the Securities and Exchange Commission. The information incorporated by reference is deemed to be part of this registration statement, except for any information superseded by information in this registration statement.</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font size=2>The following documents filed by our company with the United States Securities and Exchange Commission are incorporated herein by reference:</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font size=2>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on June 30, 2005;</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font size=2>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Quarterly Report on Form 10-QSB filed with the Securities and Exchange Commission on August 10, 2005;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 16 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font size=2>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The description of our company's shares of common stock contained in our registration statement on Form SB-2 (Securities and Exchange Commission file number 333-123674), filed with the Securities and Exchange Commission on March 30, 2005, including all amendments and reports for the purpose of updating such description; </font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font size=2>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our Current Reports on Form 8-K filed with the Securities and Exchange Commission on April 4, 2005, June 9, 2005, July 20, 2005, August 18, 2005 and August 26, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>In addition to the foregoing, all documents that we subsequently file pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of 1934, prior to the filing of a post-effective amendment indicating that all of the securities offered pursuant to this registration statement have been sold or deregistering all securities then remaining unsold, shall be deemed to be incorporated by reference in this registration statement and to be part hereof from the date of filing of such documents.  Any statement contained in a document incorporated by reference in this registration statement shall be deemed to be modified or superseded for purposes of this registration statement to the extent that a statement contained in this registration statement or in any subsequently filed document that is also incorporated by reference in this registration statement modifies or supersedes such statement.  Any
statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this registration statement.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item</font></b><font size=2>&nbsp;</font><b><font size=2>4.</font></b></p> </td>
        <td width="364" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Description of Securities.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Not applicable.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item</font></b><font size=2>&nbsp;</font><b><font size=2>5.</font></b></p> </td>
        <td width="355" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Interests of Named Experts and Counsel.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Not applicable.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item</font></b><font size=2>&nbsp;</font><b><font size=2>6.</font></b></p> </td>
        <td width="361" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Indemnification of Directors and Officers.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>According to our Articles of Incorporation, as amended and provided to the fullest extent permitted by Colorado law, our directors or officers shall not be personally liable to us or our shareholders for damages for breach of such director&#146;s or officer&#146;s fiduciary duty. The effect of this provision of our Articles of Incorporation, as amended, is to eliminate our right and our shareholders (through shareholders&#146; derivative suits on behalf of our company) to recover damages against a director or officer for breach of the fiduciary duty of care as a director or officer (including breaches resulting from negligent or grossly negligent behavior), except under certain situations defined by statute. We believe that the indemnification provisions in its Articles of Incorporation, as amended, are necessary to attract and retain qualified persons as directors and officers. </font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item</font></b><font size=2>&nbsp;</font><b><font size=2>7.</font></b></p> </td>
        <td width="342" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Exemption from Registration Claimed.</font></b></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Not Applicable.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="613" style=' border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item</font></b><font size=2>&nbsp;</font><b><font size=2>8.</font></b></p> </td>
        <td width="221" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Exhibits.</font></b></p> </td>
        <td  width="293">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="68" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.1</font></p> </td>
        <td  colspan="6" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Amended 2005 Equity Incentive Plan, effective March 17, 2005.</font></p> </td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="0" ></td>

        <td width="71" ></td>

        <td width="293" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<pAGE>


<table border="0" cellspacing=0 cellpadding=0 width="48" style=' margin-left:223.25pt;border-collapse:collapse'>
    <tr>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 17 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="674" style=' border-collapse:collapse'>
    <tr>
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.2</font></p> </td>
        <td  colspan="8" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Form of Stock Option Agreement for Amended 2005 Equity Incentive Plan.</font></p> </td> </tr>
    <tr >
        <td width="48" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5</font></p> </td>
        <td  colspan="4" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Opinion of Clark Wilson LLP.</font></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="68" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23.1</font></p> </td>
        <td  colspan="9" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Consent of Clark Wilson LLP (included in Exhibit 5).</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="68" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>23.2</font></p> </td>
        <td  colspan="9" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Consent of Ernst &amp; Young LLP, Chartered Accountants.</font></p> </td>
        <td  width="103">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="68" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>24</font></p> </td>
        <td  colspan="5" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Power of Attorney (included in signature page).</font></p> </td>
        <td   colspan="6">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item</font></b><font size=2>&nbsp;</font><b><font size=2>9.</font></b></p> </td>
        <td width="102" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Undertakings.</font></b></p> </td>
        <td   colspan="6">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="98" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  colspan="6" valign=top style='padding:12.0pt 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>We hereby undertake:</font></p> </td>
        <td   colspan="5">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="0" ></td>

        <td width="102" ></td>

        <td width="35" ></td>

        <td width="46" ></td>

        <td width="92" ></td>

        <td width="32" ></td>

        <td width="15" ></td>

        <td width="103" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.5in;text-align:left;'><font size=2>(1)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:left;'><font size=2>(i)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:left;'><font size=2>(ii)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>To reflect in the prospectus any facts or events arising after the effective date of this registration statement (or the most recent post-effective amendment hereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this registration statement.  Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low and high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the
"Calculation of Registration Fee" table in the effective registration statement; and</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:1in;text-align:left;'><font size=2>(iii)</font><font size=1>&nbsp;&nbsp;&nbsp;</font><font size=2>To include any material information with respect to the plan of distribution not previously disclosed in this registration statement or any material change to such information in this registration statement;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>PROVIDED, HOWEVER, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by our company pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in this registration statement.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.5in;text-align:left;'><font size=2>(2)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at the time shall be deemed to be the initial bona fide offering thereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.5in;text-align:left;'><font size=2>(3)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=2>To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We hereby undertake that, for purposes of determining any liability under the Securities Act of 1933, each filing of our annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in this registration statement shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
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<p style='page-break-before:always'></p>
<pAGE>


<table border="0" cellspacing=0 cellpadding=0 width="48" style=' margin-left:223.25pt;border-collapse:collapse'>
    <tr>
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>- 18 -</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and persons controlling our company pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by our company of expenses incurred or paid by a director, officer or controlling person of our company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, our company will, unless in the opinion of our counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<pAGE>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>- 19 - </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font SIZE=2>SIGNATURES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Vancouver, Province of British Columbia on August 31, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font SIZE=2>TORRENT ENERGY CORPORATION</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="669" style=' border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:.25in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>By:</font></p> </td>
        <td  colspan="2" valign=top style='padding:.25in 0in 0in 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Mark Gustafson</font></u></p> </td>
        <td   colspan="4">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="6" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>Mark Gustafson, President, Chief Executive Officer</font></p> </td>
        <td  width="24">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>and Acting Chief Financial Officer</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="5" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>(Principal Executive Officer, Principal Financial Officer</font></p> </td> </tr>
    <tr >
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>
        <td  colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0pt'><font size=2>and Principal Accounting Officer)</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="48" ></td>

        <td width="0" ></td>

        <td width="121" ></td>

        <td width="81" ></td>

        <td width="4" ></td>

        <td width="91" ></td>

        <td width="24" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font SIZE=2>POWER OF ATTORNEY</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>KNOW ALL PERSONS BY THESE PRESENTS, that each person who signature appears below constitutes and appoints Mark Gustafson as his true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent or any of them, or of their substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates stated.</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><b><font SIZE=2>SIGNATURES</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:left;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="631" style=' margin-left:5.4pt;border-collapse:collapse'>
    <tr>
        <td width="264" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font SIZE=2>SIGNATURE</font></b><b></b></p> </td>
        <td width="154" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font SIZE=2>TITLE</font></b><b></b></p> </td>
        <td width="213" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font SIZE=2>DATE</font></b><b></b></p> </td> </tr>
    <tr>
        <td width="264" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="154" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="213" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>
        <td width="330" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><br> <br> <u><font size=2>/s/ Mark Gustafson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</font></u><br> <font size=2>Mark Gustafson</font></p> </td>
        <td width="154" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>President,</font><br> <font size=2>Chief Executive Officer, Acting Chief Financial Officer and Director</font></p> </td>
        <td width="213" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><br> <br> <font size=2>August 31, 2005</font></p> </td> </tr>
    <tr>
        <td width="264" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="154" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="213" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>
        <td width="330" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><br> <br> <u><font size=2>/s/ John D. Carlson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</font></u><br> <font size=2>John D. Carlson</font></p> </td>
        <td width="154" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><br> <br> <font size=2>Director</font></p> </td>
        <td width="213" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><br> <br> <font size=2>August 31, 2005</font></p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><br> <br> <u><font size=2>/s/ George L. Hampton III&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u><br> <font size=2>George L. Hampton III</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><br> <br> <font size=2>Director</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><br> <br> <font size=2>August 31, 2005</font></p> </td> </tr></table>

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[{"type": "S-8", "sequence": "1", "filename": "fs8083105.htm", "description": "FORM S-8 REGISTRATION STATEMENT", "secsgml_size_bytes": 175005}]
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
TORRENT ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
Colorado
(State or other jurisdiction of incorporation or organization)
84-1153522
(I.R.S. Employer Identification No.)
600 - 666 Burrard Street, Vancouver, British Columbia V6C 2X8
(Address of Principal Executive Offices and Zip Code)
Amended 2005 Equity Incentive Plan
(Full title of the plan)
Mark Gustafson,
President, Chief Executive Officer
and Acting Chief Financial Officer
Torrent Energy Corporation
600 - 666 Burrard Street
Vancouver, BC  V6C 2X8
(Name and address of agent for service)
604.639.3118
(Telephone number, including area code, of agent for service)
Copies of all communications, including all communications sent to the agent for service, should be sent to:
Bernard I. Pinsky
Clark Wilson LLP, Barristers and Solicitors
800 - 885 West Georgia Street
Vancouver, BC  V6C 3H1
Telephone:  604.643.3153
Facsimile:  604.687.6314
CALCULATION OF REGISTRATION FEE
Title of Securities to
be Registered
Amount to be
Registered
Proposed
Maximum
Offering
Price Per Share
Proposed
Maximum
Aggregate
Offering Price
Amount of
Registration
Fee
Common Stock
2,500,000
(1)
$1.62
(2)
$4,050,000
(2)
$476.69
(2)
(1)
We are registering an aggregate of up to 2,500,000 of our shares of common stock that we may issue pursuant to our Amended 2005 Equity Incentive Plan.  Our Amended 2005 Equity Incentive Plan authorizes the issuance of a maximum of 2,500,000 shares of our common stock issued to eligible employees, directors, officers and consultants of our company or any of our subsidiaries.  All of the shares issuable under the Amended 2005 Equity Incentive Plan are being registered under this registration statement on Form S-8.
(2)
The price is estimated in accordance with Rule 457(h)(1) under the Securities Act of 1933, as amended, solely for the purpose of calculating the registration fee, based on the average of the bid and asked price ($1.61 bid; $1.63 ask) of the common stock of Torrent Energy Corporation as reported on the National Association of Securities Dealers Inc.'s OTC Bulletin Board on August 30, 2005.
- 2 -
EXPLANATORY NOTE
We prepared this registration statement in accordance with the requirements of Form S-8 under the Securities Act of 1933, to register an aggregate of 2,500,000 shares of our common stock that we may issue pursuant to our Amended 2005 Equity Incentive Plan.  The purpose of the Amended 2005 Equity Incentive Plan is to secure for our company and our shareholders the benefits arising from capital stock ownership by employees, directors or officers of, and consultants or advisors to, our company and subsidiary corporations who have contributed to our company in the past and who are expected to contribute to our company's future growth and success.
Under cover of this registration statement on Form S-8 is our reoffer prospectus prepared in accordance with Part I of Form S-3 under the 1933 Act.  The reoffer prospectus has been included in this registration statement on Form S-8 so that the selling security holders may resell up to:
(a)
1,700,000 shares of our common stock that we have issued to certain of our consultants, directors or officers, pursuant to our Amended 2005 Equity Incentive Plan; and
(b)
200,000 shares of our common stock that we have issued to Highlands Capital, Inc. (formerly BBN Corporate Communications), a company wholly-owned by Bruce Nurse, in connection with an Agreement for Services dated October 1, 2004 that we entered into with BBN Corporate Communications.
Accordingly, we have included the names of these selling security holders, and the nature and number of the securities to be issued to and reoffered by them, in the reoffer prospectus.
Part I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item 1.
Plan Information
We will send or give the documents containing the information specified in Part I of Form S-8 to individuals who participate in our Amended 2005 Equity Incentive Plan, and who, in the case of an award of performance units, consent to and execute the required form of Stock Option Agreement.  A copy of the Amended 2005 Equity Incentive Plan is attached as Exhibit 4.1 to this Form S-8.
This registration statement relates to a maximum of 2,500,000 shares of common stock in the capital of Torrent Energy Corporation issuable under the Amended 2005 Equity Incentive Plan.
Item 2.
Registrant Information and Employee Plan Annual Information
We will provide, without charge, to each person to whom a copy of this 10(a) prospectus is delivered, upon oral or written request, a copy of any or all documents incorporated by reference in Item 3 of Part II of this registration statement (which documents are incorporated by reference in the 10(a) prospectus).  Requests should be directed to the Chief Executive Officer, Torrent Energy Corporation, 600 - 666 Burrard Street, Vancouver, British Columbia, V6C 2X8.  Our telephone number is 604.639.3118.
- 3 -
REOFFER PROSPECTUS
The date of this Reoffer Prospectus is August 31, 2005
Torrent Energy Corporation
600 - 666 Burrard Street
Vancouver, British Columbia, V6C 2X8
2,500,000 Shares of Common Stock
This reoffer prospectus relates to a maximum of 2,500,000 shares of our common stock which may be offered and resold from time to time by the selling security holders identified in this reoffer prospectus.  We anticipate that the selling security holders will offer shares for sale at prevailing prices on the OTC Bulletin Board on the date of sale.  We will not receive any part of the proceeds from sales made under this reoffer prospectus, although we will receive the exercise price at the time of the exercise of any options by the selling security holders.  The selling security holders will bear all sales commissions and similar expenses.  We will, however, pay all of the costs associated with the filing of this registration statement.
The selling security holders and any brokers selling orders on their behalf may be deemed to be "underwriters" within the meaning of the Securities Act of 1933, as amended, in which event commissions received by such brokers may be deemed to be underwriting commissions under the Securities Act of 1933.
Our shares of common stock are quoted on the OTC Bulletin Board under the trading symbol "TREN".  On August 30, 2005, the last reported closing price for our common stock was $1.61 on the OTC Bulletin Board.
Our principal executive offices are located at 600 - 666 Burrard Street, Vancouver, British Columbia, V6C 2X8.  Our telephone number is 604.639.3118.
The shares of common stock offered pursuant to this registration statement involve a high degree of risk.  For more information, please see the section of this Reoffer Prospectus titled "Risk Factors" beginning on page 5.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.  ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.
- 4 -
TABLE OF CONTENTS
PAGE NUMBER
PROSPECTUS SUMMARY
4
OUR BUSINESS
4
RISK FACTORS
5
RISKS RELATED TO THIS OFFERING
6
RISKS RELATED TO OUR BUSINESS
8
USE OF PROCEEDS
11
DETERMINATION OF OFFERING PRICE
11
DILUTION
11
SELLING SECURITY HOLDERS
11
PLAN OF DISTRIBUTION
13
INTERESTS OF NAMED EXPERTS AND COUNSEL
14
MATERIAL CHANGES
15
INCORPORATION OF DOCUMENTS BY REFERENCE
15
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
15
PROSPECTUS SUMMARY
The following summary is qualified in its entirety by the more detailed information appearing elsewhere in this reoffer prospectus.  Consequently, this summary does not contain all of the information that you should consider before investing in our common stock.  You should carefully read the entire reoffer prospectus, including the "Risk Factors" section appearing at page 5, and the documents and information incorporated by reference into this reoffer prospectus.
This reoffer prospectus relates to a maximum of 2,500,000 shares of our common stock which may be offered and resold from time to time by the selling security holders identified in this reoffer prospectus.  It is anticipated that the selling security holders will offer shares for sale at prevailing prices on the OTC Bulletin Board on the date of sale. We will not receive any proceeds from the sales of common stock by the selling security holders under this reoffer prospectus, although we will receive the exercise price at the time of the exercise of any options by the selling security holders.  The selling security holders will pay for the cost of all sales commissions and similar expenses.  We will pay for all of the costs associated with the filing of this registration statement.
Our principal executive offices are located at 600 - 666 Burrard Street, Vancouver, British Columbia, V6C 2X8.  Our telephone number is 604.639.3118.  We maintain a website at www.torrentenergy.com.  Information contained on our website does not form part of this prospectus.
OUR BUSINESS
We are an exploration stage company engaged in the exploration of coalbed methane in the Coos Bay region of Oregon.  Through our wholly-owned subsidiary, Methane Energy Corp., we now hold leases to over 70,000 acres of prospective coalbed methane lands in the Coos Bay region.  Methane Energy operates the exploration project in the Coos Bay region.
We were formed by the merger of Scarab Systems, Inc., a Nevada corporation with iRV, Inc., a Colorado corporation on July 17, 2002.  We were initially involved in the business of providing services to the e-commerce
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industry.  However, we ceased all activity in the e-commerce industry by the end of the fiscal year ended March 31, 2003.  Scarab Systems, Inc. was a privately owned corporation incorporated on October 8, 2001.  Subsequent to completion of the reorganization, Scarab Systems, Inc. transferred all its assets and liabilities to iRV, Inc.  The directors and executive officers of iRV, Inc. were subsequently reconstituted.  iRV, Inc. changed its name to Scarab Systems, Inc. on March 24, 2003.
On January 30, 2002, we were given two options in fiscal year 2002 to acquire all the issued and outstanding shares of 485017 B.C. Ltd., a British Columbia company doing business as MarketEdge Direct.  These options were given to us as security against a subscription receivable of $337,500 for 675,000 shares of our common stock from the shareholders of MarketEdge Direct.  MarketEdge Direct was in the business of providing a wide range of marketing products and services.  Effective August 7, 2002, we exercised both of the options and acquired all the issued and outstanding shares of MarketEdge Direct.  Due to disappointing financial results of MarketEdge Direct, on March 28, 2003, we entered into an agreement with the former shareholders of MarketEdge Direct to sell MarketEdge Direct back to them.  As a result, all the issued and outstanding shares of MarketEdge Direct that we acquired were sold back to the
former MarketEdge Direct shareholders for the return to treasury of 540,000 shares of our common stock.
On March 28, 2003, we acquired all the issued and outstanding shares of Catalyst Technologies, Inc., a British Columbia corporation.  Catalyst is a Vancouver-based, web design and Internet application developer.  Catalyst specializes in the development of web-sites and Internet software design, primarily for the health and nutraceutical industry.  The acquisition of Catalyst was treated as a non-material business combination in fiscal year 2003 and we abandoned Catalyst during the fiscal year ended March 31, 2004 due to a lack of working capital and disappointing financial results.
On April 30, 2004, we incorporated an Oregon subsidiary company named Methane Energy Corp. in anticipation of acquiring oil and gas properties in the State of Oregon.  On May 11, 2004, Methane Energy entered into a lease purchase and sale agreement with GeoTrends-Hampton International, LLC to purchase GeoTrends-Hampton International's undivided working interest in certain oil and gas leases for the Coos Bay Basin prospect located onshore in the Coos Bay Basin of Oregon.  To acquire these oil and gas leases, we paid a total of $300,000 in cash and will issue 1,800,000 restricted shares of our common stock in three performance-based tranches.  The lease purchase and sale agreement closed on June 22, 2004.  On closing, we paid $100,000 in cash and issued 600,000 shares of our common stock.  We have since paid the remaining $200,000 so that the cash consideration is fully paid and have issued an additional
600,000 shares of our common stock pursuant to the second tranche.  A third tranche of 600,000 shares of our common stock will be issued if and when certain conditions are fulfilled.
Pursuant to the lease purchase and sale agreement with Geo-Trends-Hampton International, LLC, we acquired leases of certain properties in the Coos Bay area of Oregon which are prospective for oil and gas exploration.  Leases were acquired from the State of Oregon and from property owners, and we have amassed approximately 60,000 acres under lease.  We wish to lease additional properties in the Coos Bay area.  As a result of change in business, we received shareholder approval on July 13, 2004 to change our name from Scarab System, Inc. to Torrent Energy Corporation.
There were 24,748,293 shares of our common stock issued and outstanding as at August 1, 2005.
RISK FACTORS
An investment in our common stock involves a number of very significant risks.  You should carefully consider the following risks and uncertainties in addition to other information in this reoffer prospectus in evaluating our company and its business before purchasing shares of our company's common stock.  Our business, operating results and financial condition could be seriously harmed due to any of these risks.  Also, the risks described below are not the only ones facing our company.  Additional risks not presently known to us may also impair our business operations.  You could lose all or part of your investment due to any of these risks.
Much of the information included in this reoffer prospectus includes or is based upon estimates, projections or other "forward-looking statements".  The term 'forward-looking statements' is defined in the Private Securities Litigation Reform Act of 1995.  The term relates to future events or our future financial performance.  In some cases, you can
- 6 -
identify forward looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" and "continue" or the negative of these terms or other comparable terminology.  These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks described in this section, that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward looking statements.  While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the
direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions, or other future performance suggested in this prospectus.  We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements.
In evaluating us, our business and any investment in our business, readers should carefully consider the following factors, as well as the risks and uncertainties discussed in our annual report on Form 10-KSB filed with the Securities and Exchange Commission on June 30, 2005.
Risks Related To This Offering
Sales of a substantial number of shares of our common stock into the public market by any selling stockholders will dilute your interest and may result in significant downward pressure on the price of our common stock, which could affect the ability of our stockholders to realize the current trading price of our common stock.  In addition, a decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations.
Sales of a substantial number of shares of our common stock in the public market could cause a reduction in the market price of our common stock.  We had 24,748,293 shares of common stock issued and outstanding as of August 1, 2005.  When this registration statement becomes effective, the selling stockholders may be reselling up to 2,500,000 shares of our common stock.  As a result, a substantial number of our shares of common stock may be available for resale subject to any vesting provisions contained in the individual stock option agreements, which could have an adverse effect on the price of our common stock.  The issuance of any such shares may also result in a reduction of the book value of the outstanding shares of our common stock, as well as a reduction in the proportionate ownership and voting power of all other stockholders.
Any significant downward pressure on the price of our common stock as the selling stockholders sell the shares of our common stock could encourage short sales by the selling stockholders or others.  Any such short sales could place further downward pressure on the price of our common stock.
A prolonged decline in the price of our common stock could have a negative impact on our ability to raise capital.  Because our operations have been primarily financed through the sale of equity securities, a decline in the price of our common stock could be especially detrimental to our liquidity and our continued operations.  Any reduction in our ability to raise equity capital in the future could force us to reallocate funds from other planned uses and have a significant negative effect on our business plans and operations, including our ability to develop new products, continue our current operations and meet our obligations as and when they come due.
Trading on the OTC Bulletin Board may be volatile and sporadic, which could depress the market price of our shares of common stock and make it difficult for our stockholders to resell their shares.
Our common stock is quoted on the OTC Bulletin Board service of the National Association of Securities Dealers.  Trading in stock quoted on the OTC Bulletin Board is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the company's operations or business prospects.  This volatility could depress the market price of our common stock for reasons unrelated to operating performance.  Moreover, the OTC Bulletin Board is not a stock exchange, and trading of securities on the OTC Bulletin Board is often more sporadic than the trading of securities listed on a quotation system like Nasdaq or a stock exchange like Amex.  Accordingly, you may have difficulty reselling any of the shares you purchase from the selling stockholders.
- 7 -
If we fail to remain current in our reporting requirements, we could be removed from the OTC Bulletin Board which would limit the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market.
Companies trading on the OTC Bulletin Board, such as us, must be reporting issuers under Section 12 of the Securities Exchange Act of 1934, as amended, and must be current in their reports under Section 13, in order to maintain price quotation privileges on the OTC Bulletin Board. If we fail to remain current on our reporting requirements, we could be removed from the OTC Bulletin Board. As a result, the market liquidity for our securities could be severely adversely affected by limiting the ability of broker-dealers to sell our securities and the ability of stockholders to sell their securities in the secondary market.
Our shares of common stock is subject to the "penny stock" rules of the Securities and Exchange Commission and the trading market in our securities is limited, which makes transactions in our shares of common stock cumbersome and may reduce the value of an investment in our shares of common stock.
The Securities and Exchange Commission has adopted Rule 15g-9 which establishes the definition of a "penny stock," for the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require:
•
that a broker or dealer approve a person's account for transactions in penny stocks; and
•
the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased.
In order to approve a person's account for transactions in penny stocks, the broker or dealer must:
•
obtain financial information and investment experience objectives of the person; and
•
make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.
The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the Securities and Exchange Commission relating to the penny stock market, which, in highlight form:
•
sets forth the basis on which the broker or dealer made the suitability determination; and
•
that the broker or dealer received a signed, written agreement from the investor prior to the transaction.
Generally, brokers may be less willing to execute transactions in securities subject to the "penny stock" rules. This may make it more difficult for investors to dispose of our shares of common stock and cause a decline in the market value of our shares of common stock.
Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks.
National Association of Securities Dealers Inc. sales practice requirements may also limit a stockholder's ability to buy and sell our shares of common stock.
In addition to the "penny stock" rules described above, the National Association of Securities Dealers Inc. has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer.  Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information.  Under
- 8 -
interpretations of these rules, the National Association of Securities Dealers Inc. believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers.  The National Association of Securities Dealers Inc. requirements make it more difficult for broker-dealers to recommend that their customers buy our shares of common stock, which may limit your ability to buy and sell our shares of common stock and have an adverse effect on the market for its shares.
Risks Related To Our Business
We have a history of losses which may continue, which may negatively impact our ability to achieve our business objectives.
We incurred net losses of $1,240,917 for the period ended June 30, 2005.  We cannot assure you that we can achieve or sustain profitability on a quarterly or annual basis in the future.  Our operations are subject to the risks and competition inherent in the establishment of a business enterprise. There can be no assurance that future operations will be profitable. We may not achieve our business objectives and the failure to achieve such goals would have an adverse impact on us.
If we are unable to obtain additional funding our business operations will be harmed and if we do obtain additional financing our then existing shareholders may suffer substantial dilution.
We will require additional funds to sustain and expand our oil and gas exploration activities.  We anticipate that we will require up to approximately $15,000,000 to fund our continued operations for the period ending June 30, 2006.  Additional capital will be required to effectively support the operations and to otherwise implement our overall business strategy.  There can be no assurance that financing will be available in amounts or on terms acceptable to us, if at all. The inability to obtain additional capital will restrict our ability to grow and may reduce our ability to continue to conduct business operations. If we are unable to obtain additional financing, we will likely be required to curtail our exploration plans and possibly cease our operations. Any additional equity financing may involve substantial dilution to our then existing shareholders.
Our independent auditors have expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing.
In their report dated June 3, 2005, our independent auditors stated that our financial statements for the fiscal year ended March 31, 2005 were prepared assuming that we would continue as a going concern. Our ability to continue as a going concern is an issue raised as a result of recurring losses from operations and working capital deficiency. We continue to experience net operating losses. Our ability to continue as a going concern is subject to our ability to obtain necessary funding from outside sources, including obtaining additional funding from the sale of our securities. Our continued net operating losses increases the difficulty in meeting such goals and there can be no assurances that such methods will prove successful.
We have a limited operating history and if we are not successful in continuing to grow our business, then we may have to scale back or even cease our ongoing business operations.
We have no history of revenues from operations and have no significant tangible assets. We have yet to generate positive earnings and there can be no assurance that we will ever operate profitably. Our company has a limited operating history in the business of oil and gas exploration and must be considered in the development stage. Our success is significantly dependent on a successful acquisition, drilling, completion and production program. Our operations will be subject to all the risks inherent in the establishment of a developing enterprise and the uncertainties arising from the absence of a significant operating history. We may be unable to locate recoverable reserves or operate on a profitable basis. We are in the development stage and potential investors should be aware of the difficulties normally encountered by enterprises in the development stage. If our business plan is not successful, and we are
not able to operate profitably, investors may lose some or all of their investment in our company.
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If we are unable to retain the services of Mr. Gustafson or if we are unable to successfully recruit qualified managerial and field personnel having experience in oil and gas exploration, we may not be able to continue our operations.
Our success depends to a significant extent upon the continued service of Mr. Mark Gustafson, our president, chief executive officer, acting chief financial officer and a director. Loss of the services of Mr. Gustafson could have a material adverse effect on our growth, revenues, and prospective business. We do not maintain key-man insurance on the life of Mr. Gustafson. In addition, in order to successfully implement and manage our business plan, we will be dependent upon, among other things, successfully recruiting qualified managerial and field personnel having experience in the oil and gas exploration business. Competition for qualified individuals is intense. There can be no assurance that we will be able to find, attract and retain existing employees or that we will be able to find, attract and retain qualified personnel on acceptable terms.
As our properties are in the exploration and development stage, there can be no assurance that we will establish commercial discoveries on our properties.
Exploration for economic reserves of oil and gas is subject to a number of risk factors. Few properties that are explored are ultimately developed into producing oil and/or gas wells. Our properties are in the exploration and development stage only and are without proven reserves of oil and gas. We may not establish commercial discoveries on any of our properties.
We are unsure about the likelihood that we will discover and establish a profitable coalbed methane gas production in the Coos Bay region.
Currently, there is no commercial production of coal in the state of Oregon.  Additionally, there are no coal reserves attributed to the state of Oregon.  Coalbed methane gas only accounts for a small percentage of all natural gas production in the United States, and the closest coalbed methane production to the Coos Bay Region occurs in the state of Wyoming.  As a result, it is unlikely that we will discover any significant amount of coalbed methane in the Coos Bay Region or be able to establish a well that will produce a profitable amount of coalbed methane gas.
Even if we are able to, the potential profitability of oil and gas ventures depends upon factors beyond the control of our company.
The potential profitability of oil and gas properties is dependent upon many factors beyond our control. For instance, world prices and markets for oil and gas are unpredictable, highly volatile, potentially subject to governmental fixing, pegging, controls or any combination of these and other factors, and respond to changes in domestic, international, political, social and economic environments. Additionally, due to worldwide economic uncertainty, the availability and cost of funds for production and other expenses have become increasingly difficult, if not impossible, to project. In addition, adverse weather conditions can also hinder drilling operations.  These changes and events may materially affect our future financial performance.  These factors cannot be accurately predicted and the combination of these factors may result in our company not receiving an adequate return on invested capital.
Even if we are able to discover and generate a gas well, there can be no assurance the well will become profitable.
We have not yet made a discovery of coalbed methane gas or drilled a gas well to capture any gas.  Even if we are able to, a productive well may become uneconomic in the event water or other deleterious substances are encountered which impair or prevent the production of oil and/or gas from the well. In addition, production from any well may be unmarketable if it is impregnated with water or other deleterious substances. In addition, the marketability of oil and gas which may be acquired or discovered will be affected by numerous factors, including the proximity and capacity of oil and gas pipelines and processing equipment, market fluctuations of prices, taxes, royalties, land tenure, allowable production and environmental protection, all of which could result in greater expenses than revenue generated by the well.
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Competition in the oil and gas industry is highly competitive and there is no assurance that we will be successful in acquiring the leases.
The oil and gas industry is intensely competitive. We compete with numerous individuals and companies, including many major oil and gas companies which have substantially greater technical, financial and operational resources and staffs. Accordingly, there is a high degree of competition for desirable oil and gas leases, suitable properties for drilling operations and necessary drilling equipment, as well as for access to funds. We cannot predict if the necessary funds can be raised or that any projected work will be completed. Our budget anticipates our acquisition of additional acreage of lease in the Coos Bay basin. This acreage may not become available or if it is available for leasing, that we may not be successful in acquiring the leases.
The marketability of natural resources will be affected by numerous factors beyond our control which may result in us not receiving an adequate return on invested capital to be profitable or viable.
The marketability of natural resources which may be acquired or discovered by us will be affected by numerous factors beyond our control. These factors include market fluctuations in oil and gas pricing and demand, the proximity and capacity of natural resource markets and processing equipment, governmental regulations, land tenure, land use, regulation concerning the importing and exporting of oil and gas and environmental protection regulations. The exact effect of these factors cannot be accurately predicted, but the combination of these factors may result in us not receiving an adequate return on invested capital to be profitable or viable.
Oil and gas operations are subject to comprehensive regulation which may cause substantial delays or require capital outlays in excess of those anticipated causing an adverse effect on our company.
Oil and gas operations are subject to federal, state, and local laws relating to the protection of the environment, including laws regulating removal of natural resources from the ground and the discharge of materials into the environment. Oil and gas operations are also subject to federal, state, and local laws and regulations which seek to maintain health and safety standards by regulating the design and use of drilling methods and equipment. Various permits from government bodies are required for drilling operations to be conducted; no assurance can be given that such permits will be received. Environmental standards imposed by federal, provincial, or local authorities may be changed and any such changes may have material adverse effects on our activities. Moreover, compliance with such laws may cause substantial delays or require capital outlays in excess of those anticipated, thus causing an adverse
effect on us. Additionally, we may be subject to liability for pollution or other environmental damages. To date, we have not been required to spend any material amount on compliance with environmental regulations. However, we may be required to do so in the future and this may affect our ability to expand or maintain our operations.
Exploration and production activities are subject to certain environmental regulations which may prevent or delay the commencement or continuation of our operations.
In general, our exploration and production activities are subject to certain federal, state and local laws and regulations relating to environmental quality and pollution control. Such laws and regulations increase the costs of these activities and may prevent or delay the commencement or continuation of a given operation. Compliance with these laws and regulations has not had a material effect on our operations or financial condition to date. Specifically, we are subject to legislation regarding emissions into the environment, water discharges and storage and disposition of hazardous wastes. In addition, legislation has been enacted which requires well and facility sites to be abandoned and reclaimed to the satisfaction of state authorities. However, such laws and regulations are frequently changed and we are unable to predict the ultimate cost of compliance. Generally, environmental requirements do not
appear to affect us any differently or to any greater or lesser extent than other companies in the industry.  We believe that our operations comply, in all material respects, with all applicable environmental regulations.  Our operating partners maintain insurance coverage customary to the industry; however, we are not fully insured against all possible environmental risks.
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Exploratory drilling involves many risks and we may become liable for pollution or other liabilities which may have an adverse effect on our financial position.
Drilling operations generally involve a high degree of risk. Hazards such as unusual or unexpected geological formations, power outages, labor disruptions, blow-outs, sour gas leakage, fire, inability to obtain suitable or adequate machinery, equipment or labor, and other risks are involved. We may become subject to liability for pollution or hazards against which it cannot adequately insure or which it may elect not to insure. Incurring any such liability may have a material adverse effect on our financial position and operations.
USE OF PROCEEDS
The options being registered by this registration statement, including the shares of common stock that may be issued by our company upon the exercise of the options granted to the selling security holders, are being registered for the benefit of the selling security holders named in this reoffer prospectus.  All proceeds from the resale of these shares will go to the selling security holders, although we will receive the exercise price at the time of the exercise of any options by the selling security holders.  As we can predict neither the exercise price for share purchase options that we have not yet granted nor the number of share purchase options that will be exercised by the selling security holders that do currently hold share purchase options, we cannot estimate the aggregate dollar amount that we might receive upon the exercise of these share purchase options from time to time.  Accordingly, we cannot
allocate these proceeds to a specific purpose, though we propose to use any such proceeds for general working capital purposes as and when they are received.
DETERMINATION OF OFFERING PRICE
The selling security holders may sell the shares of common stock issued to them from time to time at prices and at terms then prevailing or at prices related to the then current market price, or in negotiated transactions.
DILUTION
Because any selling security holders who offer and sell shares of common stock covered by this reoffer prospectus may do so at various times, at prices and at terms then prevailing or at prices related to the then-current market price, or in negotiated transactions, we have not included in this reoffer prospectus information about the dilution, if any, to the public arising out of these sales.
SELLING SECURITY HOLDERS
The following table identifies the selling security holders and indicates (i) the nature of any material relationship that such selling security holder has had with us for the past three years, (ii) the number of shares held by the selling security holders, (iii) the amount to be offered for each selling security holder's account, and (iv) the number of shares and percentage of outstanding shares of the shares of common stock in our capital to be owned by each selling security holder after the sale of the shares offered by them pursuant to this offering.  The selling security holders are not obligated to sell the shares offered in this reoffer prospectus and may choose not to sell any of the shares or only a part of the shares that they receive.  Securities and Exchange Commission rules require that we assume that the selling security holders exercise all of their options and sell all of the shares offered
with this reoffer prospectus.
Under the Securities Exchange Act of 1934, any person engaged in a distribution of the shares offered by this reoffer prospectus may not simultaneously engage in market making activities with respect to our shares of common stock during the applicable "cooling off" periods prior to the commencement of such distribution.  In addition, and without limiting the foregoing, the selling security holders will be subject to applicable provisions of the Securities Exchange Act of 1934 and the rules and regulations thereunder, which provisions may limit the timing of purchases and sales of the shares by the selling security holders.
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Selling Security Holder
Number of Shares Beneficially Owned
(1)
Number of Shares Subject to Options
(2)
Shares Being Registered
Percentage of Shares Beneficially Owned
(3)
Before Offering
After Offering
Mark Gustafson
(4)
577,500
(5)
400,000
(6)
400,000
1.5%
2.3%
John Carlson
(7)
183,750
(8)
245,000
(9)
200,000
0.4%
0.9%
George L. Hampton III
(10)
583,750
(8)(11)
245,000
(9)
200,000
1.8%
2.4%
Thomas Deacon
(12)
433,750
(8)
245,000
(9)
200,000
1.2%
1.8%
Steve Pappajohn
(13)
583,750
(8)(11)
245,000
(9)
200,000
1.8%
2.4%
Tom Kerestes
(14)
150,000
(15)
300,000
(16)
300,000
Nil
0.6%
Alan Niem
10,000
(15)
40,000
(17)
40,000
Nil
0.4%
Russell Ralls
10,000
(15)
40,000
(17)
40,000
Nil
0.4%
Walter Johnson
10,000
(15)
40,000
(17)
40,000
Nil
0.4%
Loran Wiese
10,000
(15)
40,000
(17)
40,000
Nil
0.4%
Roger Canady
10,000
(15)
40,000
(17)
40,000
Nil
0.4%
Highlands Capital, Inc.
200,000
(15)
200,000
(18)
200,000
Nil
0.8%
TOTAL:
1,900,000
(1)
Represents shares of our common stock beneficially owned by the named selling stockholder. This figure includes shares underlying the options held by the named selling stockholder that may be exercisable as of, within 60 days after the date of, this reoffer prospectus, but does not include any shares underlying those options that cannot be exercised within that period.
(2)
Represents shares of our common stock underlying options granted to each of the named selling stockholders under the Amended 2005 Equity Incentive Plan, whether or not exercisable as of, or within 60 days of, the date of this reoffer prospectus.  Stock options are generally vested over 18 months beginning on the date of the grant of such options and vesting as to an additional 25% every six months.
(3)
Based on 24,748,293 shares of our common stock outstanding as of August 1, 2005.
(4)
Mr. Gustafson is a director and the president, chief executive officer and acting chief financial officer of our company and the sole owner of MGG Consulting.
(5)
Includes 200,000 options currently exercisable.
(6)
This figure represents options granted on April 1, 2005 at an exercise price of $1.25 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by September 17, 2006.
(7)
Mr. Carlson is a director of our company and chief operating officer of our subsidiary, Methane Energy Corp.
(8)
Includes 133,750 options currently exercisable.
(9)
This figure represents (i) 45,000 options granted on August 3, 2004 at an exercise price of $0.50 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by December 31, 2005; and (ii) 200,000 options granted on April 1, 2005 at an exercise price of $1.25 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by September 17, 2006.
(10)
Mr. Hampton is a director of our company.
(11)
GeoTrends-Hampton International LLC owns a total of 900,000 common shares of our company, of which 450,000 shares are held by Mr. Pappajohn and 450,000 shares are held by Mr. Hampton, both of whom are 50% owners of GeoTrends-Hampton International LLC.
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(12)
Mr. Deacon is the chief financial officer, vice president, land and a director of our subsidiary, Methane Energy Corp.  Mr. Deacon is also the president, secretary and a director of our subsidiary, Cascadia Energy Corp.
(13)
Mr. Pappajohn is a director and president of our subsidiary, Methane Energy Corp.
(14)
Mr. Kerestes is the vice president operations of our subsidiary, Methane Energy Corp.
(15)
Options currently exercisable.
(16)
This figure represents options granted on May 1, 2005 at an exercise price of $1.25 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by November 1, 2006.
(17)
This figure represents options granted on June 2, 2005 at an exercise price of $2.00 per share, which vest as to 25% immediately, and 25% every six months so that all options vest by December 2, 2006.
(18)
This figure represents options granted on October 1, 2004 to Highlands Capital, Inc. (formerly BBN Corporate Communications), a company wholly-owned by Bruce Nurse, in connection with an Agreement for Services, at an exercise price of $0.83 per share, which vest as to 25% immediately, and 25% every three months so that all options vest by July 1, 2005.  These options were originally granted outside of the Amended 2005 Equity Incentive Plan, however, was amended by a stock option and subscription agreement dated July 1, 2005 so that the options are included under the Amended 2005 Equity Incentive Plan.
The information provided in the table above with respect to the selling security holders has been obtained from each of the selling security holders.  Because the selling security holders may sell all or some portion of the shares of common stock beneficially owned by them, only an estimate (assuming the selling security holders sell all of the shares offered hereby) can be given as to the number of shares of common stock that will be beneficially owned by each selling security holder after this offering.  In addition, the selling security holders may have sold, transferred or otherwise disposed of, or may sell, transfer or otherwise dispose of, at any time or from time to time since the date on which he provided the information regarding the shares of common stock beneficially owned by them, all or a portion of the shares of common stock beneficially owned by them in transactions exempt from the registration
requirements of the Securities Act of 1933.
PLAN OF DISTRIBUTION
The selling security holders may, from time to time, sell all or a portion of their shares of our common stock on any market upon which the common stock may be quoted (currently the OTC Bulletin Board), in privately negotiated transactions or otherwise.  Such sales may be at fixed prices prevailing at the time of sale, at prices related to the market prices or at negotiated prices.  The shares of common stock being offered by this reoffer prospectus may be sold by the selling security holders by one or more of the following methods, without limitation:
(a)
block trades in which the broker or dealer so engaged will attempt to sell the shares of common stock as agent but may position and resell a portion of the block as principal to facilitate the transaction;
(b)
purchases by broker or dealer as principal and resale by the broker or dealer for its account pursuant to this reoffer prospectus;
(c)
an exchange distribution in accordance with the rules of the applicable exchange;
(d)
ordinary brokerage transactions and transactions in which the broker solicits purchasers;
(e)
privately negotiated transactions;
(f)
market sales (both long and short to the extent permitted under the federal securities laws);
(g)
at the market to or through market makers or into an existing market for the shares;
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(h)
through transactions in options, swaps or other derivatives (whether exchange listed or otherwise); and
(i)
a combination of any of the aforementioned methods of sale.
In effecting sales, brokers and dealers engaged by the selling security holders may arrange for other brokers or dealers to participate.  Brokers or dealers may receive commissions or discounts from a selling security holder or, if any of the broker-dealers act as an agent for the purchaser of such shares, from the purchaser in amounts to be negotiated which are not expected to exceed those customary in the types of transactions involved.  Broker-dealers may agree with a selling security holder to sell a specified number of the shares of common stock at a stipulated price per share.  Such an agreement may also require the broker-dealer to purchase as principal any unsold shares of common stock at the price required to fulfil the broker-dealer commitment to the selling security holders if such broker-dealer is unable to sell the shares on behalf of the selling security holder.  Broker-dealers who acquire
shares of common stock as principal may thereafter resell the shares of common stock from time to time in transactions which may involve block transactions and sales to and through other broker-dealers, including transactions of the nature described above.  Such sales by a broker-dealer could be at prices and on terms then prevailing at the time of sale, at prices related to the then-current market price or in negotiated transactions.  In connection with such resales, the broker-dealer may pay to or receive from the purchasers of the shares commissions as described above.
The selling security holders and any broker-dealers or agents that participate with the selling security holders in the sale of the shares of common stock may be deemed to be "underwriters" within the meaning of the Securities Act of 1933 in connection with these sales.  In that event, any commissions received by the broker-dealers or agents and any profit on the resale of the shares of common stock purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act of 1933.
From time to time, the selling security holders may pledge their shares of common stock pursuant to the margin provisions of their customer agreements with their respective brokers.  Upon a default by a selling security holder, the broker may offer and sell the pledged shares of common stock from time to time.  Upon a sale of the shares of common stock, the selling security holder intends to comply with the prospectus delivery requirements under the Securities Act of 1933 by delivering a prospectus to each purchaser in the transaction.  We intend to file any amendments or other necessary documents in compliance with the Securities Act of 1933 which may be required in the event the selling security holder defaults under any customer agreement with brokers.
To the extent required under the Securities Act of 1933, a post-effective amendment to this registration statement will be filed, disclosing the name of any broker-dealers, the number of shares of common stock involved, the price at which the common stock is to be sold, the commission paid or discounts or concessions allowed to such broker-dealers, where applicable.
We and the selling security holders will be subject to applicable provisions of the Securities Exchange Act of 1934 and the rules and regulations under it, including, without limitation, Rule 10b-5 and, insofar as the selling security holders are a distribution participant and we, under certain circumstances, may be a distribution participant, under Regulation M.  All of the foregoing may affect the marketability of the common stock.
All expenses of the registration statement including, but not limited to, legal, accounting, printing and mailing fees are and will be borne by us.  Any commissions, discounts or other fees payable to brokers or dealers in connection with any sale of the shares of common stock will be borne by the selling security holder, the purchasers participating in such transaction, or both.
Any shares of common stock covered by this reoffer prospectus which qualify for sale pursuant to Rule 144 under the Securities Act of 1933 may be sold under Rule 144 rather than pursuant to this reoffer prospectus.
INTERESTS OF NAMED EXPERTS AND COUNSEL
The consolidated financial statements for the fiscal year ended March 31, 2005 incorporated by reference in this re-offer prospectus have been audited by Ernst & Young LLP, independent registered public accounting firm, to the
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extent and for the period set forth in their report, incorporated herein by reference, and is incorporated herein in reliance upon such report given upon the authority of said firm as experts in auditing and accounting.
MATERIAL CHANGES
There have been no material changes to the affairs of our company since the filing of our Form 10-KSB on June 30, 2005, and Form 10-QSB filed on August 10, 2005, which have not previously been described in a report on Form 8-K.
INCORPORATION OF DOCUMENTS BY REFERENCE
See Part II, Item 3 on page 15 hereof for a list of documents filed by our company with the United States Securities and Exchange Commission, which are incorporated herein by this reference.
You should only rely on the information incorporated by reference or provided in this reoffer prospectus or any supplement.  We have not authorized anyone else to provide you with different  information.  The common stock is not being offered in any state where the offer is not permitted.  You should not assume that the information in this reoffer prospectus or any supplement is accurate as of any date other than the date on the front of this reoffer prospectus.
We file Form 8-K reports and other information with the Securities and Exchange Commission as is required by the Securities Exchange Act of 1934.  You may read and copy any reports, statements or other information we have filed at the Securities and Exchange Commission's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549.  Please call the Securities and Exchange Commission at 1-800-732-0330 or 202-551-8090 for further information on the Public Reference Rooms.  Our filings are also available on the Internet at the Securities and Exchange Commission's website at http:\\www.sec.gov.
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION
FOR SECURITIES ACT LIABILITIES
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling our business pursuant to the provision in the section entitled "Indemnification of Directors and Officers" (see below), we have been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is therefore unenforceable.
Part II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item
3.
Incorporation of Documents by Reference.
The Securities and Exchange Commission allows us to "incorporate by reference" information into this registration statement, which means that we can disclose important information to you by referring you to another document filed separately with the Securities and Exchange Commission. The information incorporated by reference is deemed to be part of this registration statement, except for any information superseded by information in this registration statement.
The following documents filed by our company with the United States Securities and Exchange Commission are incorporated herein by reference:
1.              Our Annual Report on Form 10-KSB filed with the Securities and Exchange Commission on June 30, 2005;
2.              Our Quarterly Report on Form 10-QSB filed with the Securities and Exchange Commission on August 10, 2005;
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3.              The description of our company's shares of common stock contained in our registration statement on Form SB-2 (Securities and Exchange Commission file number 333-123674), filed with the Securities and Exchange Commission on March 30, 2005, including all amendments and reports for the purpose of updating such description;
4.              Our Current Reports on Form 8-K filed with the Securities and Exchange Commission on April 4, 2005, June 9, 2005, July 20, 2005, August 18, 2005 and August 26, 2005.
In addition to the foregoing, all documents that we subsequently file pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange Act of 1934, prior to the filing of a post-effective amendment indicating that all of the securities offered pursuant to this registration statement have been sold or deregistering all securities then remaining unsold, shall be deemed to be incorporated by reference in this registration statement and to be part hereof from the date of filing of such documents.  Any statement contained in a document incorporated by reference in this registration statement shall be deemed to be modified or superseded for purposes of this registration statement to the extent that a statement contained in this registration statement or in any subsequently filed document that is also incorporated by reference in this registration statement modifies or supersedes such statement.  Any
statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this registration statement.
Item
4.
Description of Securities.
Not applicable.
Item
5.
Interests of Named Experts and Counsel.
Not applicable.
Item
6.
Indemnification of Directors and Officers.
According to our Articles of Incorporation, as amended and provided to the fullest extent permitted by Colorado law, our directors or officers shall not be personally liable to us or our shareholders for damages for breach of such director's or officer's fiduciary duty. The effect of this provision of our Articles of Incorporation, as amended, is to eliminate our right and our shareholders (through shareholders' derivative suits on behalf of our company) to recover damages against a director or officer for breach of the fiduciary duty of care as a director or officer (including breaches resulting from negligent or grossly negligent behavior), except under certain situations defined by statute. We believe that the indemnification provisions in its Articles of Incorporation, as amended, are necessary to attract and retain qualified persons as directors and officers.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
Item
7.
Exemption from Registration Claimed.
Not Applicable.
Item
8.
Exhibits.
4.1
Amended 2005 Equity Incentive Plan, effective March 17, 2005.
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4.2
Form of Stock Option Agreement for Amended 2005 Equity Incentive Plan.
5
Opinion of Clark Wilson LLP.
23.1
Consent of Clark Wilson LLP (included in Exhibit 5).
23.2
Consent of Ernst & Young LLP, Chartered Accountants.
24
Power of Attorney (included in signature page).
Item
9.
Undertakings.
(a)
We hereby undertake:
(1)
To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended;
(ii)
To reflect in the prospectus any facts or events arising after the effective date of this registration statement (or the most recent post-effective amendment hereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this registration statement.  Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low and high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the
"Calculation of Registration Fee" table in the effective registration statement; and
(iii)
To include any material information with respect to the plan of distribution not previously disclosed in this registration statement or any material change to such information in this registration statement;
PROVIDED, HOWEVER, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by our company pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in this registration statement.
(2)
That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at the time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(b)            We hereby undertake that, for purposes of determining any liability under the Securities Act of 1933, each filing of our annual report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in this registration statement shall be deemed to be a new registration statement relating to the securities offered herein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
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(c)            Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and persons controlling our company pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by our company of expenses incurred or paid by a director, officer or controlling person of our company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, our company will, unless in the opinion of our counsel
the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Vancouver, Province of British Columbia on August 31, 2005.
TORRENT ENERGY CORPORATION
By:
/s/ Mark Gustafson
Mark Gustafson, President, Chief Executive Officer
and Acting Chief Financial Officer
(Principal Executive Officer, Principal Financial Officer
and Principal Accounting Officer)
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person who signature appears below constitutes and appoints Mark Gustafson as his true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for him and in his name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this registration statement, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent or any of them, or of their substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates stated.
SIGNATURES
SIGNATURE
TITLE
DATE
/s/ Mark Gustafson
Mark Gustafson
President,
Chief Executive Officer, Acting Chief Financial Officer and Director
August 31, 2005
/s/ John D. Carlson
John D. Carlson
Director
August 31, 2005
/s/ George L. Hampton III
George L. Hampton III
Director
August 31, 2005