UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


(Mark One)

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF
     1934

     For the quarterly period ended: June 30, 2007

[_]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

     For the transition period from ______ to _____

                        Commission file number 000-26721

                        AUSTRALIAN OIL & GAS CORPORATION
                        --------------------------------
             (Exact name of Registrant as Specified in its Charter)


           Delaware                                    84-1379164
           --------                                    ----------
(State or other jurisdiction of             (IRS Employer Identification Number)
 incorporation of organization)

                 2480 North Tolemac Way, Prescott, Arizona 86305
                 -----------------------------------------------
                    (Address of principal executive offices)


Issuer's Telephone Number: (928) 778 1450       Internet Website: www.ausoil.com
                                                                  --------------


                                 NOT APPLICABLE
                                 --------------
              (Former name, former address and former fiscal year,
                          if changed since last report)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
 Yes [ x ]   No [   ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:

35,900,531 shares of common stock, $0.001 par value, as of June 30, 2007.

Transitional Small Business Disclosure Format (Check one):   Yes [  ]   No [ x ]


                                      INDEX

                        AUSTRALIAN OIL & GAS CORPORATION

                  For the Quarterly Period Ended: June 30, 2007


                          Part I. FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

         Consolidated Balance Sheets as at June 30, 2007 (Unaudited)
         and December 31, 2006 (Audited)

         Consolidated Statements of Operations for the six months ended
         June 30, 2007, three months ended June 30, 2007 and 2006
         (Unaudited) and the equivalent cumulative period for 2005
         (unaudited) and for the cumulative period from August 6, 2003
         (Date of Inception) to June 30, 2007 (Unaudited)

         Consolidated Statements of Cash Flows for the six months ended
         June 30, 2007 and 2006 (Unaudited) and the cumulative period
         from August 6, 2003 (Date of Inception) to June 30, 2007
         (Unaudited)

         Notes to Financial Statements (Unaudited)


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

Item 3.  Controls and Procedures


                           Part II. OTHER INFORMATION


Signatures








Item 1. Financial Statements (Unaudited)

                        Australian Oil & Gas Corporation

                        (an exploration stage enterprise)
                           CONSOLIDATED BALANCE SHEETS
                                     ASSETS

(Dollar amounts in thousands)                             As at 6/30/07  As at 12/31/06
                                                            (Unaudited)       (Audited)
                                                             ---------     -----------
                                                                           
Current assets:
       Cash and cash equivalents                                    606          734
       Other receivables                                              1            3
                                                                 ------       ------
       Total Current Assets                                         607          737
                                                                 ------       ------
Total Assets                                                        607          737
                                                                 ======       ======
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
       Accounts payable (Note 4)                                    114           22
       Income tax expense payable                                     1           26
       Payables to director related entities                         --           50
                                                                 ------       ------
       Total Current Liabilities                                    115           98
                                                                 ------       ------
Non-current liabilities:
       Convertible Notes                                            290          276
                                                                 ------       ------
       Total Non-current Liabilities                                290          276
                                                                 ------       ------
Total Liabilities                                                   405          374
                                                                 ======       ======

Stockholders' Equity

Common stock, $0.001 par value; 75,000,000 shares authorized
       36,650,531 and 35,900,531shares issued and outstanding        28           28
       As of June 30, 2007 and December 31, 2006, respectively
Capital in excess of par value                                      948          948
       Accumulated Other Comprehensive Income                       226          155
       Deficit accumulated during the exploration stage          (1,000)        (768)
                                                                 ------       ------
       Total Stockholders' Equity                                   202          363
                                                                 ------       ------

       Total Liabilities and Stockholders' Equity                   607          737
                                                                 ======       ======




              The accompanying notes are an integral part of these
                       consolidated financial statements.






                        Australian Oil & Gas Corporation

                        (an exploration stage enterprise)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

(Dollar amounts in thousands -except per share data)

                                                          For the        For the       For the          For the    Cumulative
                                                              six            six         three            three        period
                                                           months         months        months           months      from Aug.
                                                            ended          ended         ended            ended       6, 2003
                                                          June 30,       June 30,      June 30,         June 30,     (Date of
                                                             2007           2006          2007             2006     Inception)
                                                                                                        to June
                                                                                                       30, 2007
                                                      -----------    -----------    -----------    ------------   -----------
Expenses
                                                                                                           
   General and administrative                                 118             69             73              24           687
   Merger and reorganisation                                   --             --             --              --           139
   Exploration                                                114            110             20              60           416
                                                      -----------    -----------    -----------    ------------   -----------

Total operating expenses                                      232            179             93              84         1,242
                                                      -----------    -----------    -----------    ------------   -----------

Net loss before other income and extraordinary item          (232)          (179)           (93)            (84)       (1,242)
                                                      -----------    -----------    -----------    ------------   -----------

Other Income and Expense
   Currency exchange gain /(loss)                              --             --             --                            --
   Interest income                                             14              9              7               9            42
   Interest expense                                           (14)            --             (7)                           --
                                                      -----------    -----------    -----------    ------------   -----------
                                                                                                                          (69)

Loss before extraordinary item                               (232)          (170)           (93)            (75)       (1,283)
                                                      -----------    -----------    -----------    ------------   -----------

Extraordinary Items
   Gain on purchase of subsidiaries,  net of tax               --            306             --              --           306
                                                      -----------    -----------    -----------    ------------   -----------

   Net income / (loss) before income taxes                   (232)           136            (93)            (75)         (977)

Income tax provision                                           --             --             --              --            23
                                                      -----------    -----------    -----------    ------------   -----------

Net income/ (loss)                                           (232)           136            (93)            (75)        (1000)
                                                      ===========    ===========    ===========    ============   ===========

Income/ (Loss) per common share                       $      (.01)   $      (.01)          $(-)    $(-)           $      (.04)
                                                      ===========    ===========    ===========    ============   ===========

   Extraordinary item                                          $-    $       .01           $(-)    $(-)           $       .01
                                                      ===========    ===========    ===========    ============   ===========

    Net income / (loss)                               $      (.01)            $-           $(-)    $(-)           $      (.03)
                                                      ===========    ===========    ===========    ============   ===========

Weighted average common share used in calculation      36,092,175     31,866,828     36,279,652    31,866,8287     29,835,192
                                                      ===========    ===========    ===========    ============   ===========

              The accompanying notes are an integral part of these
                       consolidated financial statements.







                        Australian Oil & Gas Corporation
                        (an exploration stage enterprise)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

(Dollar amounts in thousands)
                                                           For the six     For the six   Cumulative period
                                                          months ended    months ended   from inception to
                                                         June 30, 2007   June 30, 2006       June 30, 2007
                                                                     $               $                   $
                                                             ---------    ------------    ---------------
                                                                                           
Cash flows from operating activities:
Net income / (loss)                                               (232)            136              (1000)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
    Extraordinary Gain (Note 8)                                     --            (306)              (306)
    Issuance of convertible notes                                  (14)             --                (78)
    Stock based compensation                                        83             110                533
    Increase (decrease in cash) from changes in:
    Increase in accrued expenses and payables                      (44)            196                (29)
    Decrease in receivables                                          1              --                 10
    Decrease in other assets                                        --               5                  7
                                                             ---------    ------------    ---------------

    Net cash provided by (used in) operating activities           (206)            141               (863)
                                                             ---------    ------------    ---------------
Cash flows from investing activities:
Cash of acquired subsidiaries                                       --             782               1215
Acquisition of subsidiaries                                         --            (112)              (186)
                                                             ---------    ------------    ---------------
Net cash provided by (used in) investing activities                 --             670              1,029
                                                             ---------    ------------    ---------------
Cash flows from financing activities:
Advances from director-related entities                             43               3                660
Repayment of advances from director-related entities               (36)             --               (409)
Proceeds from sale of Common Stock - net                            --              --                 75
                                                             ---------    ------------    ---------------

Net cash provided by financing activities                            7               3                326
                                                             ---------    ------------    ---------------

Increase/(decrease) in cash                                       (199)            814                492
Cash and cash equivalents at beginning of period                   734              10                 --
Effect of currency exchange rate fluctuations on cash held          71              --                114
                                                             ---------    ------------    ---------------
Cash and cash equivalents at end of period                         606             824                606
                                                             =========    ============    ===============
Supplemental disclosure of non-cash activities

Administration Fees                                                 --              --                 97
Interest expense                                                    14              12                 43
Issuance of Stock                                                   --             410                451


              The accompanying notes are an integral part of these
                       consolidated financial statements.


                        Australian Oil & Gas Corporation
                        (an exploration stage enterprise)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The accompanying interim financial statements of Australian Oil & Gas
Corporation are unaudited. However, in the opinion of management, the interim
data includes all adjustments, consisting of only normal recurring adjustments,
necessary for a fair presentation of the results for the interim period. The
results of operations for the period ended June 30, 2007 are not necessarily
indicative of the operating results for the entire year. The interim financial
statements should be read in conjunction with our Annual Report on Form 10-KSB
for the year ended December 31, 2006.

Note 1:  Organization

Australian Oil & Gas Corporation (the Company) was incorporated in Delaware on
August 6, 2003, and began operations on August 11, 2003 and is considered to be
a crude petroleum and natural gas company in the exploratory stage as defined by
SFAS No. 7. Since inception it has been engaged in the assessment of oil and gas
exploration properties.

The Company has two wholly owned, Delaware-incorporated US subsidiaries;
Gascorp, Inc. and Nations LNG, Inc. and two wholly owned Australian
subsidiaries; Alpha Oil & Natural Gas Pty Ltd and Nations Natural Gas Pty Ltd.

On April 12, 2006, Australian Oil & Gas Corporation (AOGC) completed the
acquisitions of each of Nations Natural Gas Pty Ltd (Nations) and Alpha Oil &
Natural Gas Pty Ltd (Alpha), both companies incorporated in Australia. A
director of AOGC, Mr EG Albers, is a director and or shareholder of each of the
vendors of shares in Nations and Alpha.

The purchase of Nations was made in order to acquire 30% interest in the four
permits of the National Gas Consortium, being permits, NT/P62, NT/P63, NT/P64
and NT/P65. The shareholders of Nations received 2,100,001 shares of common
stock in AOGC and AUD$50,000 as consideration for Nations.

The purchase of Alpha was made in order to acquire a 20% interest in the Browse
Joint Venture, being permits, WA-332-P, WA-333-P and WA-342-P. The shareholders
of Alpha received 2,000,002 shares of common stock in AOGC and AUD$100,000 for
consideration for Alpha.

Note 2:  Principles of Consolidation

The consolidated financial statements include the accounts of Australian Oil and
Gas Corporation and its wholly owned subsidiaries Alpha and Nations. For
reporting purposes, the subsidiaries were first included in the consolidated
entity as at 31 March 2006.

Note 3:  Related Party Transactions

Mr. E Geoffrey Albers, the Chairman and President of AOGC, is a director and
shareholder of each of Great Missenden Holdings Pty Ltd and of Setright Oil &
Gas Pty Ltd. Effective from April 4, 2005, in return for the previous advances
of $212,000, the Company issued to Great Missenden Holdings Pty Ltd 212 Series I
Convertible Notes of $1,000 each, with an interest coupon of 10% per annum,
convertible into shares of Common Stock at any time on or before December 31,
2007 on the basis of 12,500 shares of Common Stock for every $1,000 Convertible
Note or part thereof. Effective from April 26, 2005, Great Missenden Holdings
Pty Ltd approved a further $100,000 Line of Credit to the Company in return for
the issue to Great Missenden Holdings of 100 Series II Convertible Notes of
$1,000 each with an interest rate of 10% per annum, convertible into shares of
Common Stock at any time on or before 31 December, 2008 on the basis of 10,000
shares of Common Stock for every $1,000 Series II Convertible Notes or part
thereof. As at June 30, 2007, an amount of $78,000 had been drawn down pursuant
to the $100,000 Line of Credit, which were converted into these Series II
Convertible Notes. Great Missenden Holdings Pty Ltd charged $7,068 for interest
on all advances and $11,203 for technical workstations during the quarter.
Setright Oil & Gas Pty Ltd charged the Company $10,795 during the quarter for
the provision of accounting and administrative services rendered by third
parties for the benefit of the Company, but not including services rendered by
Mr. E Geoffrey Albers, who is remunerated separately.




We also have the use of premises in Australia at Level 25, 500 Collins Street,
Melbourne, Victoria. The office space is taken on a nonexclusive basis, with no
rent payable, but the usage of the premises is included in the charges Setright
Oil & Gas Pty Ltd makes in respect to the administration of the Company.

Mr. Albers is a director and shareholder in the joint venture participants with
Alpha Oil & Natural Gas Pty Ltd (Alpha) with regard to exploration permits
ACP/33, ACP/35 and AC/P39; namely National Gas Australia Pty Ltd, Natural Gas
Corporation Pty Ltd and Auralandia N.L. Mr Muzzin is a shareholder in Auralandia
N.L. As a result of incurring expenditures, National Gas Australia Pty Ltd has
earned an aggregate 25% interest in each of AC/P33, AC/P35 and AC/P39 (Vulcan
Joint Venture), 5% of which was earned from AOGC subsidiary, Alpha.

With regard to the Browse Joint Venture, Mr. Albers is a director and
shareholder in each of Batavia Oil & Gas Pty Ltd and Exoil Limited, the parent
of Hawkestone Oil Pty Ltd. He is a major shareholder in the parent of
Goldsborough Energy Pty Ltd. All of these companies are the holders of the
Browse Joint Venture.

Mr. Mark A Muzzin, a director and Vice-President of AOGC, is a director of
Goldsborough Energy Pty Ltd, a subsidiary of Goldsborough Limited and is a
shareholder in Exoil Limited, the parent of Hawkestone Oil Pty Ltd.

With regard to the National Gas Consortium, Mr. Albers is a director and
shareholder in each of National Oil & Gas Pty Ltd, Australian Natural Gas Pty
Ltd and Natural Gas Australia Pty Ltd. Expenditure incurred by National Gas
Australia Pty Ltd has resulted in National Gas Australia Pty Ltd earning an
aggregate 20% interest in each of NT/P62, NT/P63, NT/P64, NT/P65, NT/P71 and
NT/P72, (National Gas Consortium), of which 6% was earned from Nations.

Note 4: Current Liabilities

At June 30, 2007 the accounts payable balance includes $82,500 for remuneration
due to Mr Albers for his services as set out in Note 3 Related Party
Transaction.

Note 5:  Issued Shares

At 30 June 2007, 750,000 shares included in issued and outstanding shares of
36,650,531 disclosed in the balance sheet and used for the earnings per common
share calculation were not issued. These shares were authorised to compensate Mr
Albers and will be issued in the quarter ending December 31 2007.







Note  6:  Comprehensive Income

Comprehensive income is the change in equity during a period from transactions
and other events from non-owner sources. The Company is required to classify
items of other comprehensive income in financial statement to display the
accumulated balance of other comprehensive income separately in the equity
section of the Consolidated Balance Sheet.

The functional currency of Australian Oil & Gas Corporation's Australian
subsidiaries is the Australian dollar. The comprehensive income of $246,000
disclosed in the Consolidated Balance Sheet is the accumulation of all currency
exchange differences arising from translating the Australian subsidiaries'
financial statements from functional currency to presentation from the
acquisition date of these Australian subsidiaries to the current balance date.

Note 7:  Extraordinary Gain - amendment of comparatives

The Form 10-Q for AOGC for the period ended 30 June 2006 disclosed an
extraordinary gain on the acquisition of two Australian subsidiaries as
$682,000. The amount of the extraordinary gain should have been $306,000, as
disclosed in the 30 June 2006 comparative balances in the accompanying financial
statements, and results from expensing the acquired subsidiaries' capitalised
exploration expenditure in unproven areas of interest in accordance with US
GAAP.


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

Forward-looking statements

References in this report to "the Company", "we", "us", or "our" are intended to
refer to Australian Oil & Gas Corporation. This quarterly report contains
certain statements that may be deemed forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (Securities
Act), and Section 21 E of the United Stated Securities Exchange Act of 1934, as
amended (Exchange Act). Readers of this quarterly report are cautioned that such
forward-looking statements are not guarantees of future performance and that
actual results, developments and business decisions may differ from those
envisaged by such forward-looking statements.

     All statements, other than statements of historical facts, so included in
this quarterly report that address activities, events or developments that the
Company intends, expects, projects, believes or anticipates will or may occur in
the future, including, without limitation: statements regarding our business
strategy, plans and objectives and statements expressing beliefs and
expectations regarding our ability to successfully raise the additional capital
necessary to meet our obligations, our ability to secure the permits necessary
to facilitate anticipated seismic and drilling activities and our ability to
attract additional working interest owners to participate in the exploration for
and development of oil and gas resources, are forward-looking statements within
the meaning of the Act. These forward-looking statements are and will be based
on management's then-current views and assumptions regarding future events.







Plan of Operation
-----------------

General Australian Oil & Gas Corporation is an independent energy company
focused on the acquisition and exploration for oil and natural gas resources.
Our core business is directed at the acquisition of interests in oil and gas
properties in the offshore areas of Australia's territorial waters. We rely on
the considerable experience in the oil and gas industry of our President, Mr. E.
Geoffrey Albers, and our consultants, to identify and conduct initial analyses
of properties in which we may acquire an interest.

Strategy We devote essentially all of our resources to the identification of
large-tract oil and gas properties in their early stages of exploration which
have the potential for a high impact outcome for the Company in the event of
exploration success. We plan to advance the prospectivity of these properties
through the application of geological and geophysical expertise and through the
provision of new 2D and 3D seismic surveys. We seek to keep our capital outlays
and overheads at a minimum level. We retain selected consultants, contractors
and service companies. We use proven technologies in evaluating the
prospectivity of our oil and gas properties. We expect to invest in projects at
different levels of participation, including 100% ownership. We plan to maintain
as high a percentage of participation as can be prudently managed. We will focus
on areas considered to have speculative near term potential for oil discovery or
medium term potential for gas discovery. An important part of our strategy is to
select prospective acreage which, at the seismic or drilling stage, can be
farmed out and/or developed in conjunction with other industry players so as to
minimize our financial outlay requirements, wherever possible, through promoted
transactions. Our overall intention is to provide maximum leverage for
shareholders at minimal cost, in return for the high risk activities that we
undertake.

     Since August 2003, when current management began operating the Company, we
have not conducted any revenue generating business operations. Accordingly, we
have no results of such operations to report. However, we continue to actively
pursue our long term strategy of acquiring interests in oil and gas exploration
projects with a particular emphasis on the northern basins of the North West
Shelf of Australia.

     Following implementation of our acquisition strategy we now hold interests
in 14 Petroleum Exploration Permits granted by the Commonwealth of Australia.
With one exception, they are held in joint venture with other parties.

Vulcan Joint Venture

     Our wholly owned subsidiary, Alpha Oil & Natural Gas Pty Ltd, following
farmout of seismic commitments to National Gas Australia Pty Ltd (NGA), (see
below) now holds a 15% interest in the permits, AC/P33, AC/P35 and AC/P39 in
joint venture with its affiliates; NGA (25%), Natural Gas Corporation Pty Ltd
(NGC) (30%) and Auralandia N.L. (Auralandia) (30%), the designated Operator. The
permits are within the territory of Ashmore and Cartier Islands, an Australian
offshore territory.




     Geologically, AC/P33, AC/P35 and AC/P39 are located on the eastern margin
of the Vulcan Sub-basin; one of a number of proven petroliferous sub-basins
which together comprise the North West Shelf hydrocarbon province of Australia.

     AC/P33 includes the undeveloped Oliver oil and gas accumulation, drilled by
the now plugged and abandoned Oliver-1 well. AC/P33 comprises five graticular
blocks, totaling approximately 400 km(2) (98,800 acres). In the first three
years of the initial 6-year term of permit AC/P33, the joint venture
participants have obtained a range of existing reports and open file seismic
data and have mapped, interpreted and revised analyses and concepts for the
area. The joint venture has carried out enhancement of existing seismic data
around the Oliver feature, and has examined various techniques for the potential
use to provide direct hydrocarbon indicators. As a direct result of the farmout
to NGA, the joint venture has acquired 124 km(2) (acres) of new high quality
enhanced parameter 3D seismic survey, known as the Oliver 3D Seismic Survey. The
survey was conducted over the Oliver feature and part of its extension to the
east.. Active geological and geophysical evaluation of the permit continues
including processing of the Oliver Seismic Survey and reprocessing of part of
the immediately adjacent Onnia 3D Seismic Survey in the vicinity of the Oliver-1
well. Should the joint venture so decide, it can elect to enter the second three
years of the initial permit and drill one exploration well and perform further
interpretational work

     AC/P35 is located immediately to the north of AC/P33. It comprises 46
graticular blocks, totaling approximately 3,410 km(2) (842,645 acres). There
have been five wells drilled in the area, with two having oil and gas
indications, all of which were plugged and abandoned. In the first three years
of the initial 6-year term of the AC/P35 permit, we plan to obtain a range of
pertinent existing reports and open file seismic data. In the third year, we
presently plan to shoot 250 km(2) of 3D seismic survey. Should we so decide, we
can elect to enter the second three years of the initial permit term and drill
one exploration well and perform further interpretational work. Geological
evaluation of the permit is continuing, including the reprocessing of
approximately 1,750 km(2) of previously acquired 3D seismic over AC/P35. The
joint venture is reprocessing the part of the Onnia 3D Seismic Survey which
relates to AC/P35.

     AC/P39 is located 600 km west of Darwin, immediately to the east of AC/P33
and AC/P35. It comprises 11 graticular blocks, totalling approximately 920 km(2)
(2,273 acres). AC/P39 lies within 100 km of existing petroleum production
facilities and along the eastern elevated flank of the Vulcan Sub-basin, a
broad, deep and proven hydrocarbon-generative basin. There have been five wells
drilled in the area, with two having oil and gas indications. In the first three
years of the initial 6-year term of the AC/P39 permit, we plan to obtain a range
of existing reports and open file seismic data. In the third year, we plan to
drill one exploration well. Geological evaluation of the permit is continuing,
including the re-processing of approximately 920 km(2) of previously acquired
Onnia 3D seismic over AC/P39.




     The AOGC group agreed to farmout 5% of its 20% interest in each of the
Vulcan Joint Venture Permits to National Gas Australia Pty Ltd (leaving Alpha
with a 15% interest) in return for the acquisition and funding of Alpha's 20%
share of the new Oliver 3D seismic survey of approximately 124 km(2) and the
funding of the reprocessing of approximately 2,800 km(2) of existing 3D data.
The cost of the Company's share of the Oliver survey has been met entirely by
National Gas Australia Pty Ltd.

Browse Joint Venture

     We hold a 20% interest in the Permits of the Browse Joint Venture
(WA-332-P, WA-333-P and WA-341-P) together with three other participants
(Batavia Oil & Gas Pty Ltd has a 35% interest, Hawkestone Oil Pty Ltd has a 35%
interest and Goldsborough Energy Pty Ltd has a 10% interest). The Permits are
contiguous and are located in the offshore Browse Basin, a part of the North
West Shelf of Australia. They cover a total area of 9,460 km(2) (2,336,620
acres).

     The Browse Basin region is a proven major hydrocarbon area and it forms a
part of the extensive series of continental margin sedimentary basins that,
together, comprise the North West Shelf hydrocarbon province of Australia. The
Browse Basin has been host to a series of major gas, gas condensate and oil
discoveries which began with the 1971 discovery at Scott Reef-1. The Browse
Basin is currently the focus for two proposals to establish new LNG export
facilities; one by Woodside Energy Ltd in relation to the Scott Reef/Brecknock
complex and the other by Inpex Corporation in relation to the Ichthys complex.
The Browse Joint Venture permits are presently lightly explored. There is one
well on the boundary of WA-332-P (Prudhoe-1), one well in WA-333-P (Rob Roy-1),
and a total of fourteen wells in WA-342-P, mostly associated with the
undeveloped Cornea oil and gas accumulation.

     In October, 2006 the Browse Joint Venture completed the shooting of the
Braveheart seismic survey of approximately 1,949 line km of new 2D seismic
survey over these Browse Joint venture permits

     In the first three year term of the Permits, the Browse Joint Venture
committed to obtain available open file reports and basic 2D and 3D seismic data
acquired by earlier efforts of previous explorers. This included approximately
1,100 km(2) of high quality 3D seismic known as the Cornea 3D survey which is
held by the Browse Joint Venture. Approximately 1,000 km(2) of this 3D data set
is being reprocessed. The data sets will be integrated with the acquisition and
processing of the recent 1949 line km Braveheart 2D seismic survey to infill the
existing grid of data, with lead specific coverage. Should the Browse Joint
Venture so decide, it can elect to enter a second three year permit term and in
which it has indicated it will drill one well in each permit. Active geological
and geophysical evaluation of all of the Browse Joint Venture Permits is
continuing, with special studies having been carried out in respect to the
undeveloped Cornea oil and gas accumulation.

National Gas Consortium

     Through our wholly owned subsidiary, Nations Natural Gas Pty Ltd, we hold a
24% interest in the six permits of the National Gas Consortium, being permits,
NT/P62, NT/P63, NT/P64, NT/P65, NT/71 and NT/P72 ("Timor Sea Permits"), located
in the Australian sector of the Timor Sea, offshore from the Northern Territory.
The three other joint venture participants are National Oil & Gas Pty Ltd (35%),
Australian Natural Gas Pty Ltd (35%) and National Gas Australia Pty Ltd (6%).
The National Gas Consortium now holds six permits aggregating approximately
32,255 km(2) (7,970,533 acres).




     The Timor Sea covers a huge area underlain by sedimentary basins with
potential for new hydrocarbon discoveries. The region has a long history of
exploration activity and discovery and has now become the focus for domestic and
international petroleum exploration and development activities. There have been
numerous oil and wet gas discoveries to the north west in the region of the
permits, including the Laminaria, Corallina and Bayu-Undan fields. The giant gas
fields of Greater Sunrise, Evans Shoal, Caldita and Barossa are to the north and
east of the permits.

     The Timor Sea is a major emerging province, with a developing emphasis in
gas processing for the export market. Discoveries made over the past few years
are expected to lead to the area providing substantial gas production and
revenue, through value-added gas projects covering a wide spectrum of gas to
liquids processes and technologies.

     The Company on June 15, 2006, agreed to farmout 6% of its 30% interest in
each of the Timor Sea Permits to National Gas Australia Pty Ltd (leaving Nations
with a net 24% interest) in return for the acquisition and funding of Nations
30% share of the new Sunshine and Kurrajong 2D seismic survey of approximately
4,200 km. The cost of the Company's share of the Sunshine and Kurrajong surveys
has been met entirely by National Gas Australia Pty Ltd.

Eastern Bonaparte Basin
NT/P70 Joint Venture

     On October 10, 2005, the Australian Government granted a petroleum
exploration permit, NT/P70, for an initial 6-year term. The Company initially
held a 100% interest in the permit and now holds an 80% interest as the result
of farmout (see below).

     NT/P70 covers an area of 7,370 km(2) (1,821,200 acres) and is located in
the eastern Timor Sea, about 300 km north of Darwin, and 250 km northeast of the
proposed Darwin to Bayu-Undan gas pipeline. The Greater Sunrise, Evans Shoal,
Barossa and Caldita gas accumulations are located to the west and southwest of
the NT/P70 permit area.

     AOGC agreed on June 15, 2006, to farmout 20% of its 100% interest in NT/P70
to National Gas Australia Pty Ltd in return for the acquisition and funding by
NGA of the new 800 line km Crocodile 2D seismic survey, subsequently acquired in
the NT/P70 permit.

     The permit has been designated as a "frontier area" by the Australian
Government attracting an exploration incentive which allows immediate uplift to
150% tax deductibility on Australian Petroleum Resource Rent Tax ("PRRT") which
is only payable provided certain levels of return from production are achieved.

     We have obtained a range of pertinent existing reports and open file
seismic data and, with this data, have mapped, interpreted and revised analyses
and concepts for the area. We presently plan to shoot 300 km(2) of 3D seismic
survey, following interpretation of the 800 line km Crocodile 2D seismic survey
acquired during the year. Should we so decide, we can elect to enter the second
three years of the initial permit term and drill one exploration well and
perform further interpretational work. There have been no wells drilled in the
permit.



NT/P73
     On March 27, 2007, the Australian Government granted to our wholly owned
subsidiary, Alpha, a petroleum exploration permit, NT/P73, for an initial 6-year
term. The Company holds a 100% interest in the permit. NT/P73 is located to the
immediate south west of NT/P70 and covers an area of 6,815 km(2) (1,683,300
acres). The Barossa and Caldita gas accumulations are located to the west of the
NT/P73 permit area.

     In the first three years of the initial 6-year term of the NT/P73 permit we
plan to obtain existing reports and open file seismic data and, with this data,
to map, interpret and revise analyses and concepts for the area. We presently
plan to shoot 2,000 line km of 2D in the third year of the permit. Should we so
decide, we can elect to enter the second three years of the initial permit term
and drill one exploration well and perform further interpretational work. There
have been no wells drilled in the permit area.

Permitting     It should be noted that, provided all exploration commitments are
met, Australian offshore petroleum exploration permits may be renewed for two
further 5-year terms, upon relinquishment of 50% of the area of a permit at the
end of the first 6-year term, and again at the end of the second 5-year permit
term. Any Retention Lease or Production License is excluded from the calculation
of the area to be relinquished. Permits therefore, have a potential 16-year
life, subject to these requirements and to the fulfillment of exploration
commitments.

Management    The Company relies upon its Chairman and President, who also holds
the position of Chief Executive Officer and Chief Financial Officer, Mr. E
Geoffrey Albers, to manage the Company's operations and to identify and acquire
interests in oil and gas prospects. The Company has entered into an agreement
with Mr. Albers to secure his services on a part-time basis for a 3-year period,
with a commencement date effective from January 1, 2005. As the Company's cash
resources are limited, the board agreed to remunerate Mr. Albers by issuing
common stock in lieu of cash payments. Specifically, the Company issued
2,500,000 shares of Common Stock to Mr. Albers for his services in relation to
the period from January 1, 2005 to December 31, 2005. A further 2,000,000 shares
of Common Stock were issued to him for his services for the period from January
1, 2006 to December 31, 2006 A further 1,500,000 shares of Common Stock will be
issued to him for his services for the period from January 1, 2007 to December
31, 2007 (the financial statements for the quarter have accrued $41,250
representing a pro-rata amount of this compensation).

Funding     As an exploration stage enterprise, the Company has and continues to
rely on capital infusions through the advances of Great Missenden Holdings Pty
Ltd. The Company has accepted advances and in the future anticipates that it
will draw down further advances to enable it to meet its administrative costs
and expenditure requirements in developing its portfolio of oil and gas
interests. When the Company requires further significant funds for its
exploration programs, then it is the Company's intention that the additional
funds would be raised in a manner deemed most expedient by the Board of
Directors at the time, taking into account budgets, share market conditions and
the interest of industry in co-participation in the Company's programs. The
Company's main strategy is to met its obligations either by farmout, or partial
sale of the Company's interests. Should these methods not be viable , it is the
Company's plan that they could be raised by any one or a combination of the
following manners: stock placements, pro-rata issue to stockholders, and /or an
issue of stock to eligible parties. Should funds be required for appraisal or
development purposes the Company would, in addition, look to project loan
finance.



Item 3.  Controls and procedures

Disclosure Controls and Procedures
----------------------------------

     As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the
"Exchange Act"), we carried out an evaluation of the effectiveness of the design
and operation of our disclosure controls and procedures as of June 30, 2007.
This evaluation was carried out under the supervision and with the participation
of our President and Chief Financial Officer. Based upon that evaluation, our
President and Chief Financial Officer concluded that our disclosure controls and
procedures were effective as of such date.

     As used herein, "disclosure controls and procedures" means controls and
other procedures of ours that are designed to ensure that information required
to be disclosed by us in the reports we file or submit under the Securities
Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed by us in
the reports we file or submit under the Securities Exchange Act is accumulated
and communicated to our management, including our President and Chief Financial
Officer, or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.


Internal Control Over Financial Reporting
-----------------------------------------

     There were no changes in the Company's internal control over financial
reporting that occurred during the Company's second fiscal quarter of 2007 that
have materially affected, or are reasonably likely to materially affect, the
Company's internal control over financial reporting.

     We have not yet become subject to the requirement to include an annual
report of management on our internal control over financial reporting in our
annual reports filed with the Securities and Exchange Commission under Section
13 or 15(d) of the Securities Exchange Act of 1934.





                           Part 11. OTHER INFORMATION

Item 6.  Exhibits


List of Exhibits

31.1     Certification pursuant to Section 302 of the
         Sarbanes-Oxley Act of 2002.

32.1     Certification pursuant to 18 U.S.C. Section 1350,
         as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.












                                   SIGNATURES

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

                        AUSTRALIAN OIL & GAS CORPORATION

                                   By:    /s/ E. Geoffrey Albers
                                      ---------------------------
                                      E. Geoffrey Albers,
                                      Chief Executive Officer and
                                      Chief Financial Officer
August 14, 2007