WCYN West Canyon Energy Corp (CE)

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

FORM 10-K

(Mark One)

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

For the fiscal year ended June 30, 2011

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

For the transition period from [ ] to [ ]

Commission file number 333-130673

WEST CANYON ENERGY CORP.
(Exact name of registrant as specified in its charter)

Nevada	20-8756823
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
20333 State Highway 249, Suite 200 – 11 Houston TX	77070-26133
(Address of principal executive offices)	(Zip Code)
Registrant's telephone number, including area code:	281.378.1563

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Each Exchange On Which Registered
N/A	N/A

Securities registered pursuant to Section 12(g) of the Act:

N/A
(Title of class)

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

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

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the last 90 days.
Yes [X]     No [   ]

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Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
[   ] YES     [   ] NO

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [   ]	Accelerated filer                   [   ]
Non-accelerated filer   [   ]	Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [   ]     No [X]

The aggregate market value of Common Stock held by non-affiliates of the Registrant on December 31, 2010, the last trading day of the Company’s most recently completed second fiscal quarter was $148,533, based on a $0.01 closing price for the Common Stock on December 31, 2010. For purposes of this computation, all executive officers and directors have been deemed to be affiliates. Such determination should not be deemed to be an admission that such executive officers and directors are, in fact, affiliates of the Registrant.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date.
21,706,667 common shares as of October 12, 2011

DOCUMENTS INCORPORATED BY REFERENCE
None.

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TABLE OF CONTENTS

Item 1.	Business	4
Item 1A.	Risk Factors	8
Item 1B.	Unresolved Staff Comments	14
Item 2.	Properties	14
Item 3.	Legal Proceedings	14
Item 4.	[Removed and Reserved]	14
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	14
Item 6.	Selected Financial Data	15
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	19
Item 8.	Financial Statements and Supplementary Data	20
Item 9.	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	22
Item 9A.	Controls and Procedures	33
Item 9B.	Other Information	34
Item 10.	Directors, Executive Officers and Corporate Governance	34
Item 11.	Executive Compensation	36
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	38
Item 13.	Certain Relationships and Related Transactions, and Director Independence	39
Item 14.	Principal Accounting Fees and Services	39
Item 15.	Exhibits, Financial Statement Schedules	40

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PART I

Item 1.         Business

          This annual report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “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 in the section entitled “Risk Factors” 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.

          Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

          Our financial statements are stated in United States Dollars (U.S. $) and are prepared in accordance with United States Generally Accepted Accounting Principles.

          In this annual report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.

          As used in this current report and unless otherwise indicated, the terms "we", "us", "our" and "West Canyon" mean West Canyon Energy Corp. and our wholly-owned subsidiaries, as of June 30, 2010, PetroSouth Energy Corp. BVI and Petrosouth Energy Corporation Sucursal Colombia. Effective December 1, 2010, the Company sold PetroSouth Energy Corp. BVI and Petrosouth Energy Corporation Sucursal Colombia. Effective March 25, 2011, the Company formed a new Colombian Branch, West Canyon Energy Corp. Sucursal Columbia, to hold its remaining Colombian interests.

          Management does not believe the Company to be the primary beneficiary of any entity, nor does Management believe the Company to hold any variable interests. The Company’s interest in oil and gas exploration and production ventures and partnerships are proportionately consolidated.

General Overview

          We were incorporated on July 27, 2004, under the name Mobridge Explorations Inc. Since inception, we were a company primarily engaged in the acquisition and exploration of mineral properties. Pursuant to a mineral property option agreement dated July 6, 2005, we were granted an option to acquire a 100% undivided right, title and interest in a total of 15 mineral claim units, known as the Chambers Township claim block, located in the Sudbury Mining Division of Ontario, Canada. On November 1, 2006, the mineral property agreement was terminated.

          Because we had not discovered any economically viable mineral deposits on the Chambers Township claim block, we decided to change the direction of our exploration activities to the oil and gas sector. On April 30, 2007, we completed a merger with our subsidiary, PetroSouth Energy Corp. with PetroSouth Energy Corp. as the surviving corporation. Concurrently, our board of directors approved a 10 for one stock split of our authorized, issued and outstanding shares of common stock. As a result, our authorized capital increased from 75,000,000 shares of common stock with a par value of $0.001 to 750,000,000 shares of common stock with a par value of $0.001.

          On October 2, 2007, we completed the acquisition of all the issued and outstanding common stock of PetroSouth Energy Corp. BVI pursuant to a share exchange agreement dated September 30, 2007, among our company, as purchaser, and all of the shareholders of PetroSouth Energy Corp. BVI, as vendors.

          Effective April 11, 2008, we completed a merger with our wholly-owned subsidiary, West Canyon Energy Corp., a Nevada corporation. The sole purpose of the merger was to change our name from PetroSouth Energy Corp. to West Canyon Energy Corp. and the subsidiary company was incorporated solely for such purpose. The change of name became effective with the Over-the-Counter Bulletin Board at the opening for trading on April 11, 2008, under the stock symbol “WCYO”.

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          Effective November 7, 2008, we effected a five (5) for one (1) reverse stock split of our authorized, issued and outstanding shares of common stock. As a result our authorized capital decreased from 750,000,000 shares of common stock with a par value of $0.001 to 150,000,000 shares of common stock with a par value of $0.001. Our CUSIP number is 951736206 and our stock symbol changed to “WCYN”.

          On October 27, 2010, we entered into a letter agreement with Petrodorado Energy Ltd. (“Petrodorado”) with respect to the sale by us of our wholly-owned subsidiary PetroSouth Energy Corp. BVI, including our interest in the Talora Exploration Block but excluding our interest in the Buenavista Block, to Petrodorado for $1.5 million. On December 1, 2010, we completed all the conditions stipulated to close the transaction.

          We have not been involved in any bankruptcy, receivership or similar proceeding.

           Our Current Business

          Upon the completion of the acquisition of PetroSouth Energy Corp. BVI, we became an exploration stage company engaged in the exploration and production of oil and gas properties.

          Our asset base and property development activity has consisted of the following:

           Buenavista Exploration and Production Contract dated November 8, 2004 (Northeast of Bogotá, Colombia)

          We have a 16% participation stake in the Buenavista Exploration and Production Contract northeast of Bogotá, Colombia, which we acquired through an Assignment Agreement dated August 30, 2007. The Buenavista Exploration and Production Contract was effective November 8, 2004 and has a surrender date of November 8, 2032. To the best of our knowledge, the operator and majority partner is UTO with an 84% participation stake. The 25,000 acre contiguous parcel of land contains the Bolivar field, the Bolivar prospect and three leads. Included in the field is the La Luna formation, covering an area of 700 acres.

          We understand that the operatorship may have subsequently changed, although we have not been advised of such under the terms of the operating agreement. We believe that the current operator may be T.C. Oil, but again, we have not been officially advised of such. The current operator, UTO, has been unresponsive in terms of providing us with updated status of the block, drilling programs, production levels and our production share. The Exploration and Production Contract associated with the block was originally signed on November 8, 2004, providing for a six year exploration period and a 28 year production period. Due to the unresponsiveness of the operator, we are uncertain as to the current status of the permit, however we believe the Exploration and Production Contract remains in good standing.

          The Buenavista Block is located 38 miles northwest of Colombia’s largest oil fields, the Cusiana/Cupiagua complex. The Buenavista Block currently has two producing wells, the Bolivar 1 well and the Bolivar 2 well, from which we reported a total of 1,422 barrels of crude oil of combined sales during our fiscal year ended June 30, 2011.

          In December 2007, the Company commenced drilling on the Bochica 1 development well. During the initial drilling of the Bochica1, the Company had to cease drilling until additional drilling rigs could be obtained. In early 2008, a workover was performed on the Bochica 1 well, but was not successful. In January 2009, the Company completed a seismic 3D shoot in the 70 kilometer area around the Bochica 1 well to determine if the Company had any further potential production zones. In May 2009, the Bochica 1 well was determined to be a dry hole and was subsequently plugged and abandoned. Under the full cost method of accounting, the costs associated with abandoned wells are to be transferred to the full cost pool and depleted over the useful life of proved reserves. Since the Company had no proven reserve value as of June 30, 2009, these costs were considered impaired. As a result, the Company recognized a $1,197,229 impairment charge related to the Buenavista Block for the year ended June 30, 2009.

          Effective September 16, 2008, we entered into a farmout agreement with Delavaco Energy Colombia Inc. Sucursal Colombia, a subsidiary of Delavaco Energy Inc., for the sale of our 16% participating interest in the Buenavista Block. The total purchase price was $4,000,000. Upon entering in the farmout agreement, we received a nonrefundable deposit on sale of $200,000. The balance of $3,800,000 was to be paid on the earlier of (i) 30 days from a Liquidity Event by Delavaco (as defined by the farmout agreement), or (ii) December 31, 2008. As of December 31, 2008, the balance of payment was not made by Delavaco and the Buenavista Block reverted back to us and the $200,000 deposit was recorded as a component of Other Income (Expense), net during the year ended June 30, 2009.

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          As of June 30, 2011, the Company had not yet determined the commerciality of the Buenavista Block.

           Talora Exploration and Exploitation Contract dated September 16, 2006 (Southwest of Bogotá, Colombia)

          At June 30, 2010, we owned a 20% participation stake in the Talora Exploration and Exploitation Contract southwest of Bogotá, Colombia. The Talora Exploration and Exploitation Contract was effective September 16, 2004, and has a surrender date of September 16, 2032. The operator and majority partner is Petroleum Equipment International with a 60% participation stake. Gran Tierra Energy, Inc., which purchased Argosy Energy International, has the remaining 20% participation stake. The 108,333 acre contiguous parcel of land is located 47 miles southwest of Bogotá, Colombia and contains five prospects. The Exploration and Exploitation Contract associated with the block was originally signed on September 16, 2004, providing for a six year exploration period and a 28 year production period. There are currently no reserves, as this is an exploration block. The Company commenced drilling on the Laura-1 exploration well on December 27, 2006, and it was subsequently plugged and abandoned in January 2007. Drilling of this well has fulfilled the commitment for the second exploration phase of the contract, ending December 31, 2006.

          The third exploration phase has begun and had a commitment to drill a single well. To fulfill this commitment, we commenced drilling of the Manatial development well in January of 2008. During the drilling of the Manatial, we encountered rig problems that caused damage to the well. During 2009, an unsuccessful re-entry workover was performed on the Manatial and the well was determined to be a dry hole. In June of 2009, the Manatial was plugged and abandoned. During 2009, we commenced drilling on the Montemelo development well and it was subsequently plugged and abandoned in June of 2009. Under the full cost method of accounting, the costs associated with abandoned wells are to be transferred to the full cost pool and depleted over the useful life of proved reserves. Since we have no proven reserve value for the year ended June 30, 2009, these costs are considered impaired, as they can provide no future value. We recognized $1,998,801 in Impairment of Unproved Property expense related to the Talora Block for the year ended June 30, 2009.

          On July 25, 2008, we entered into a non-binding letter of intent agreement with Delavaco Energy Colombia Inc. Sucursal Colombia for the sale of our 20% participating interest in the Talora Exploration Block. The total purchase price was $3,500,000. Upon entering into the letter of intent, we received a nonrefundable deposit on sale of $200,000. The non-binding letter of intent agreement provided for an exclusivity period of 120 days, which expired on or about November 30, 2008. As a result of the expiration of the exclusivity period, the $200,000 deposit on sale was recorded as Other Income (Expense), net during the year ended June 30, 2009.

          On October 27, 2010, we entered into a letter agreement with Petrodorado Energy Ltd. (“Petrodorado”) with respect to the sale by us of our wholly-owned subsidiary PetroSouth Energy Corp. BVI, including our interest in the Talora Exploration Block but excluding our interest in the Buenavista Block, to Petrodorado for $1.5 million. On December 1, 2010, we completed all the conditions stipulated to close the transaction. We recognized a loss of $187,013 on this sale during the year ended June 30, 2011, which is reflected in our Loss on Sales of Unproved Interests, net.

           Carbonera Exploration and Exploitation Contract dated October 2, 2007 (Northeast of Bogotá, Colombia)

          We acquired a 6% share interest in the Carbonera Exploration and Exploitation Contract. The Carbonera Contract encompasses a 64,000 acre concession located northeast of Bogotá near the Venezuelan border in the Catatumbo Basin region of northern Colombia. The 6% interest was acquired for $420,000 and other considerations from Omega Energy Colombia, which is a joint interest holder with our company on several other exploration concessions in Colombia.

          On September 22, 2009, we entered into an agreement with Delavaco Energy Colombia Inc. Sucursal Colombia pursuant to which we agreed to sell 100% of our 6% non-operated participation interest in the Carbonera Block for $750,000, which approximated our carrying value of this asset and no gain or loss was recognized. Closing of the agreement took place on October 2, 2009. Our former chief financial officer and director is also a consultant of Delavaco Energy Colombia Inc. The $750,000 of proceeds was accounted for as a reduction of Unproved Interest.

           North Semitropic Prospect

          On February 1, 2008, we entered into a formal farmout agreement with Transco Oil & Gas, Inc. relating to Transco’s leases on approximately 3,290 acres in Kern County, CA. The plan under the farmout agreement was to drill the first test well in order to exploit the potential of two target horizons. We were to earn the entire interest in the properties once drilling is completed. We were also responsible for our prorata share of the delay rentals on the leasehold. Any additional leases to be acquired were to be decided between both parties and the costs to acquire new leases were to be shared equally.

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          On June 16, 2008 we entered into an Assignment of Farmout Interest agreement with Cobra Oil & Gas Company whereby we assigned our interest in the North Semitropic Prospect to Cobra for $34,000.

          On January 19, 2009, we announced that we repurchased the 25% interest in the North Semitropic Prospect from Cobra Oil and Gas for a payment of $134,438, that included the original $34,000 paid to us by Cobra, plus the sum of additional prospect fees paid by Cobra to Transco totaling $100,348.

          On February 25, 2010, the Company entered into an agreement with New World Petroleum Investments Inc. pursuant to which the Company agreed to sell 100% of its 25% interest for $185,000. Pursuant to the terms of the agreement, the Company received $35,000 at closing and is to receive $25,000 per month beginning April 2010 and ending September 2010. The $185,000 sales price was accounted for as a reduction of Unproved Interest and an increase in accounts receivable. The sales price exceeded our carrying value by approximately $33,883. However, under existing full cost accounting rules, this gain was not able to be recognized until we had disposed of our remaining assets in the United States in 2011, with the expiration of the underlying lease on our Spring Creek Red River Prospect. During the year ended June 30, 2011, we recognized this gain as a component of Loss on Sales of Unproved Interests, net.

           Spring Creek Red River Prospect

          In 2008, we acquired non-producing leases in the Spring Creek Red River Prospect for the payment of $240,000 and $7,500 in geologist fees. During the year ended June 30, 2011, as a result of the expiration of the underlying lease, we fully impaired this prospect recognizing a total impairment charge of $247,820.

           Competition

          We are an exploration-stage company engaged in the business of oil and gas exploration. We compete with other exploration-stage companies for financing from a limited number of investors that are prepared to make investments in junior oil and gas resource exploration companies. The presence of competing junior oil and gas exploration companies may impact on our ability to raise additional capital in order to fund our property acquisitions and exploration programs if investors are of the view that investments in competitors are more attractive based on the merit of the properties under investigation and the price of the investment offered to investors.

          We also compete for oil and gas properties of merit with other exploration-stage companies. Competition could reduce the availability of properties of merit or increase the cost of acquiring additional oil and gas properties.

          Many of the oil and gas exploration companies with whom we compete have greater financial and technical resources than we do. Accordingly, these competitors may be able to spend greater amounts on acquisitions of properties of merit and on exploration of their properties. In addition, they may be able to afford greater geological expertise in the targeting and exploration of resource properties. This competition could result in our competitors having resource properties of greater quality and interest to prospective investors who may finance additional exploration and to senior exploration companies that may purchase resource properties or enter into joint venture agreements with junior exploration companies. This competition could adversely impact our ability to finance property acquisitions and further exploration.

           Compliance with Government Regulation

          Our business is subject to various federal, state and local laws and governmental regulations that may be changed from time to time in response to economic or political conditions. We are required to comply with the environmental guidelines and regulations established at the local levels for our field activities and access requirements on our permit lands and leases. Any development activities, when determined, will require, but not be limited to, detailed and comprehensive environmental impact assessments studies and approvals of local regulators.

           Employees

          Our sole director and officer is our only employee. We do not anticipate any significant changes in the number of our employees over the next twelve months.

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           Research and Development

          We have not spent any amounts on which have been classified as research and development activities in our financial statements since our inception.

Item 1A.       Risk Factors

           Risks Related to Our Operations

          Our business operations are subject to a number of risks and uncertainties, including, but not limited to those set forth below:

           Because we may never earn revenues from our operations, our business may fail and then investors may lose all of their investment in our company.

          We have no history of revenues from operations. We have never had significant operations and have no significant 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. If our business plan is not successful and we are not able to operate profitably, then our stock may become worthless and investors may lose all of their investment in our company.

          We expect to incur significant losses into the foreseeable future. We recognize that if we are unable to generate significant revenues from future acquisitions, we will not be able to earn profits or continue operations. There is no history upon which to base any assumption as to the likelihood that we will prove successful, and we can provide no assurance that we will generate any revenues or ever achieve profitability. If we are unsuccessful in addressing these risks, our business will fail and investors may lose all of their investment in our company.

           We have a history of losses and have negative cash flows from operations, which raises substantial doubt about our ability to continue as a going concern.

          We have not generated any revenues since our incorporation and we will continue to incur operating expenses without revenues until we are in commercial deployment. To date we have had negative cash flows from operations and we have been dependent on sales of our equity securities and debt financing to meet our cash requirements and have incurred net losses from inception to June 30, 2011 of $5,420,347. Our net cash used in operations for the year ended June 30, 2011, was $607,312. As of June 30, 2011, we had a working capital deficit of $1,207,506. We do not expect positive cash flow from operations in the near term. There is no assurance that actual cash requirements will not exceed our estimates. In particular, additional capital may be required in the event that drilling and completion costs increase beyond our expectations; or we encounter greater costs associated with general and administrative expenses or offering costs. The occurrence of any of the aforementioned events could adversely affect our ability to meet our business plans. We cannot provide assurances that we will be able to successfully execute our business plan. These circumstances raise substantial doubt about our ability to continue as a going concern. If we are unable to continue as a going concern, investors will likely lose all of their investments in our company.

          There is no assurance that we will operate profitably or will generate positive cash flow in the future. In addition, our operating results in the future may be subject to significant fluctuations due to many factors not within our control, such as the unpredictability of when customers will purchase our services, the size of customers’ purchases, the demand for our services, and the level of competition and general economic conditions. If we cannot generate positive cash flows in the future, or raise sufficient financing to continue our normal operations, then we may be forced to scale down or even close our operations.

          We will depend almost exclusively on outside capital to pay for the continued exploration and development of our properties. Such outside capital may include the sale of additional stock and/or commercial borrowing. There is no guarantee that sufficient capital will continue to be available to meet these continuing development costs or that it will be on terms acceptable to us. The issuance of additional equity securities by us would result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

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          If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our business and as a result may be required to scale back or cease operations for our business, the result of which would be that our stockholders would lose some or all of their investment.

           A decline in the price of our common stock could affect our ability to raise further working capital and adversely impact our operations.

          A prolonged decline in the price of our common stock could result in a reduction in the liquidity of our common stock and a reduction in our ability to raise capital. Because our operations have been and will be 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 would force us to reallocate funds from other planned uses and would have a significant negative effect on our business plans and operations, including our ability to develop new products and continue our current operations. If our stock price declines, we may not be able to raise additional capital or generate funds from operations sufficient to meet our obligations.

           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 yet to generate positive earnings and there can be no assurance that we will ever operate profitably. The success of our company is significantly dependent on a successful acquisition, drilling, completion and production program. Our company’s 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.

           Because of the early stage of development and the nature of our business, our securities are considered highly speculative.

          Our securities must be considered highly speculative, generally because of the nature of our business and the early stage of our development. We are engaged in the business of exploring and, if warranted, developing commercial reserves of oil and gas. Our properties are in the exploration stage. Accordingly, we have not generated any revenues nor have we realized a profit from our operations to date and there is little likelihood that we will generate any revenues or realize any profits in the short term. Any profitability in the future from our business will be dependent upon locating and developing economic reserves of oil and gas, which itself is subject to numerous risk factors as set forth herein. Since we have not generated any revenues, we will have to raise additional monies through the sale of our equity securities or debt in order to continue our business operations.

           Nature of oil and gas exploration and development involves many risks that we may not be able to overcome.

          Oil and gas exploration and development is very competitive and involves many risks that even a combination of experience, knowledge and careful evaluation may not be able to overcome. As with any petroleum property, there can be no assurance that oil or gas will be extracted from any of the properties subject to our exploration and production contracts. Furthermore, the marketability of any discovered resource will be affected by numerous factors beyond our control. These factors include, but are not limited to, market fluctuations of prices, proximity and capacity of pipelines and processing equipment, equipment availability and government regulations (including, without limitation, regulations relating to prices, taxes, royalties, land tenure, allowable production, importing and exporting of oil and gas and environmental protection).

          The extent 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.

           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.

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           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 which we may elect not to insure against due to prohibitive premium costs and other reasons. 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.

           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 we cannot adequately insure or which we may elect not to insure. Incurring any such liability may have a material adverse effect on our financial position and operations.

           Any change to government regulation/administrative practices may have a negative impact on our ability to operate and our profitability.

          The business of resource exploration and development is subject to regulation relating to the exploration for, and the development, upgrading, marketing, pricing, taxation, and transportation of oil and gas and related products and other matters. Amendments to current laws and regulations governing operations and activities of oil and gas exploration and development operations could have a material adverse impact on our business. In addition, there can be no assurance that income tax laws, royalty regulations and government incentive programs related to the properties subject to our exploration and production contracts and the oil and gas industry generally, will not be changed in a manner which may adversely affect our progress and cause delays, inability to explore and develop or abandonment of these interests.

          Permits, leases, licenses, and approvals are required from a variety of regulatory authorities at various stages of exploration and development. There can be no assurance that the various government permits, leases, licenses and approvals sought will be granted in respect of our activities or, if granted, will not be cancelled or will be renewed upon expiry. There is no assurance that such permits, leases, licenses, and approvals will not contain terms and provisions which may adversely affect our exploration and development activities.

           All or a portion of our interest in our properties may be lost if we are unable to obtain significant additional financing, as we are required to make significant expenditures on the exploration and development of our properties.

          Our ability to continue exploration and, if warranted, development of our properties will be dependent upon our ability to raise significant additional financing. If we are unable to obtain such financing, a portion of our interest in our properties may be lost or our properties may be lost entirely and revert back to the government of Colombia. We have limited financial resources and no material cash flow from operations and we are dependent for funds on our ability to sell our common shares, primarily on a private placement basis. There can be no assurance that we will be able to obtain financing on that basis in light of factors such as the market demand for our securities, the state of financial markets generally and other relevant factors.

          We anticipate that we may need to obtain additional bank financing or sell additional debt or equity securities in future public or private offerings. There can be no assurance that additional funding will be available to us for exploration and development of our projects or to fulfill our obligations under the applicable petroleum prospecting licenses. Although historically we have announced additional financings to proceed with the development of some of our properties, there can be no assurance that we will be able to obtain adequate financing in the future or that the terms of such financing will be favorable. Failure to obtain such additional financing could result in delay or indefinite postponement of further exploration and development of our projects with the possible loss of our petroleum prospecting licenses.

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           We will require substantial funds to enable us to decide whether our non-producing properties contain commercial oil and gas deposits and whether they should be brought into production, and if we cannot raise the necessary funds we may never be able to realize the potential of these properties.

          Our decision as to whether our unproved properties contain commercial oil and gas deposits and should be brought into production will require substantial funds and depend upon the results of exploration programs and feasibility studies and the recommendations of duly qualified engineers, geologists, or both. This decision will involve consideration and evaluation of several significant factors including but not limited to: (1) costs of bringing a property into production, including exploration and development work, preparation of production feasibility studies, and construction of production facilities; (2) availability and costs of financing; (3) ongoing costs of production; (4) market prices for the oil and gas to be produced; (5) environmental compliance regulations and restraints; and (6) political climate, governmental regulation and control. If we are unable to raise the funds necessary to properly evaluate our unproved properties, then we may not be able to realize any potential of these properties.

           We have licenses in respect of our properties, but our properties may be subject to prior unregistered agreements, or transfers which have not been recorded or detected through title searches, and are subject to a governmental right of participation, resulting in a possible claim against any future revenues generated by such properties.

          We have licenses with respect to our oil and gas properties and we believe our interests are valid and enforceable given that they have been granted directly by the government of Colombia, although we have not obtained an opinion of counsel or any similar form of title opinion to that effect. However, these licenses do not guarantee title against all possible claims. The properties may be subject to prior unregistered agreements, or transfers which have not been recorded or detected through title research. If the interests in our properties are challenged, we may have to expend funds defending any such claims and may ultimately lose some or all of any revenues generated from the properties if we lose our interest in such properties.

           The majority of our projects are located in Colombia where oil and gas exploration activities may be affected in varying degrees by political and government regulations which could have a negative impact on our ability to continue our operations.

          The majority of our projects in which we have participation stakes are located in Colombia. Exploration activities in Colombia may be affected in varying degrees by political instabilities and government regulations relating to the oil and gas industry. Any changes in regulations or shifts in political conditions are beyond our control and may adversely affect our business. Operations may be affected in varying degrees by government regulations with respect to restrictions on production, price controls, export controls, income taxes, expropriations of property, environmental legislation and safety. The status of Colombia as a developing country may make it more difficult for us to obtain any required financing for our projects. The effect of all these factors cannot be accurately predicted. Notwithstanding the progress achieved in restructuring Colombia political institutions and revitalizing its economy, the present administration, or any successor government, may not be able to sustain the progress achieved. While the Colombia economy has experienced growth in recent years, such growth may not continue in the future at similar rates or at all. If the economy of Colombia fails to continue its growth or suffers a recession, we may not be able to continue our operations in that country. We do not carry political risk insurance.

           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 world-wide economic uncertainty, the availability and cost of funds for production and other expenses have become increasingly difficult, if not impossible, to project. These changes and events may materially affect our financial performance.

          Adverse weather conditions can also hinder drilling operations. 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.

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The marketability of oil and gas which may be acquired or discovered will be affected by numerous factors beyond our control. These factors include 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. The extent of these factors cannot be accurately predicted but the combination of these factors may result in our company not receiving an adequate return on invested capital.

           Competition in the oil and gas industry is highly competitive and there is no assurance that we will be successful in acquiring licenses and permits.

          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 properties for drilling operations and necessary drilling equipment, as well as for access to funds. There can be no assurance that the necessary funds can be raised or that any projected work will be completed. There are other competitors that have operations in the properties in Colombia and the presence of these competitors could adversely affect our ability to acquire additional property interests.

           Risks Related to Our Common Stock

           Trading of our stock may be restricted by the SEC’s “Penny Stock” regulations which may limit a stockholder's ability to buy and sell our stock .

          The U.S. Securities and Exchange Commission has adopted regulations which generally define “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and “accredited investors.” The term “accredited investor” refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in and limit the marketability of, our common stock.

           Financial Industry Regulatory Authority (“FINRA”) sales practice requirements may also limit a stockholder’s ability to buy and sell our stock.

          In addition to the “penny stock” rules described above, FINRA 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 interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

           Trading in our common stock on the OTC Bulletin Board is limited and sporadic making it difficult for our shareholders to sell their shares or liquidate their investments .

          Shares of our common stock are currently quoted on the OTC Bulletin Board. The trading price of our common stock has been subject to wide fluctuations. Trading prices of our common stock may fluctuate in response to a number of factors, many of which will be beyond our control. The stock market has generally experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of companies with no current business operation. There can be no assurance that trading prices and price earnings ratios previously experienced by our common stock will be matched or maintained. These broad market and industry factors may adversely affect the market price of our common stock, regardless of our operating performance.

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          In the past, following periods of volatility in the market price of a company's securities, securities class-action litigation has often been instituted. Such litigation, if instituted, could result in substantial costs for us and a diversion of management's attention and resources.

           Because of the early stage of development and the nature of our business, our securities are considered highly speculative.

          Our securities must be considered highly speculative, generally because of the nature of our business and the early stage of its development. We are engaged in the business of exploring and, if warranted, developing commercial reserves of oil and gas. Our properties are primarily in the exploration stage only. Accordingly, we have not generated any revenues nor have we realized a profit from our operations to date and there is little likelihood that we will generate any revenues or realize any profits in the short term. Any profitability in the future from our business will be dependent upon locating and developing economic reserves of oil and gas, which itself is subject to numerous risk factors as set forth herein. Since we have not generated any revenues, we will have to raise additional monies through the sale of our equity securities or debt in order to continue our business operations.

      We do not intend to pay dividends on any investment in the shares of stock of our company.

          We have never paid any cash dividends and currently do not intend to pay any dividends for the foreseeable future. To the extent that we require additional funding currently not provided for in our financing plan, our funding sources may prohibit the payment of a dividend. Because we do not intend to declare dividends, any gain on an investment in our company will need to come through an increase in the stock’s price. This may never happen and investors may lose all of their investment in our company.

           Risks Related to Our Company

           Our By-laws contain provisions indemnifying our officers and directors against all costs, charges and expenses incurred by them .

          Our By-laws contain provisions with respect to the indemnification of our officers and directors against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, actually and reasonably incurred by him, including an amount paid to settle an action or satisfy a judgment in a civil, criminal or administrative action or proceeding to which he is made a party by reason of his being or having been one of our directors or officers.

           Investors' interests in our company will be diluted and investors may suffer dilution in their net book value per share if we issue additional shares or raise funds through the sale of equity securities .

          Our constating documents authorize the issuance of 150,000,000 shares of common stock with a par value of $0.001. In the event that we are required to issue any additional shares or enter into private placements to raise financing through the sale of equity securities, investors' interests in our company will be diluted and investors may suffer dilution in their net book value per share depending on the price at which such securities are sold. If we issue any such additional shares, such issuances also will cause a reduction in the proportionate ownership and voting power of all other shareholders. Further, any such issuance may result in a change in our control.

           Our By-laws do not contain anti-takeover provisions which could result in a change of our management and directors if there is a take-over of our company .

          We do not currently have a shareholder rights plan or any anti-takeover provisions in our By-laws. Without any anti-takeover provisions, there is no deterrent for a take-over of our company, which may result in a change in our management and directors.

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Item 1B.      Unresolved Staff Comments

          As a “smaller reporting company”, we are not required to provide the information required by this Item.

Item 2.          Properties

           Executive Offices

          Our executive office is located at 20333 State Highway 249, Suite 200 – 113, Houston, Texas 77070-26133. Our telephone number is (281) 378-1563. We believe the space is adequate for our current needs and that suitable space will be available to accommodate our future needs. This lease is currently on a month to month contract at a cost of US $260 per month.

Item 3.         Legal Proceedings

          We know of no material, existing or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our Company.

Item 4.         [Removed and Reserved]

PART II

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

          Our shares of common stock are quoted for trading on the OTC Bulletin Board under the symbol WCYN. Our transfer agent is Island Stock Transfer Inc., 100 Second Avenue South, Suite 104N, St. Petersburg, Florida 33701. We began trading on July 23, 2007. On October 12, 2011, the closing bid price for our common stock was $0.025.

          The high and low bid prices of our common stock for the periods indicated below are as follows:

          On October 12, 2011, the shareholders' list of our common shares showed 46 registered shareholders and 21,706,667 shares outstanding.

           Dividend Policy

          We have not paid any cash dividends on our common stock and have no present intention of paying any dividends on the shares of our common stock. Our current policy is to retain earnings, if any, for use in our operations and in the development of our business. Our future dividend policy will be determined from time to time by our board of directors.

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           Equity Compensation Plan Information

          We currently do not have an equity compensation plan.

           Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities

          We did not sell any equity securities which were not registered under the Securities Act during the year ended June 30, 2011, that were not otherwise disclosed on our quarterly reports on Form 10-Q or our current reports on Form 8-K filed during the year ended June 30, 2011.

           Purchase of Equity Securities by the Issuer and Affiliated Purchasers

          We did not purchase any of our shares of common stock or other securities during our fourth quarter of our fiscal year ended June 30, 2011.

Item 6.         Selected Financial Data

          As a “smaller reporting company”, we are not required to provide the information required by this Item.

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

          The following discussion should be read in conjunction with our audited financial statements and the related notes that appear elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to; those discussed below and elsewhere in this annual report, particularly in the section entitled "Risk Factors" beginning on page 8 of this annual report.

          Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.

           Going Concern

          These consolidated financial statements have been prepared on a going concern basis. We have incurred losses since inception (July 27, 2004) resulting in an accumulated deficit of $5,420,347 and further losses are anticipated in the development of the business, raising substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to generate profitable operations in the future and/or to obtain the necessary capital and financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event we cannot continue as a going concern.

          We anticipate a cash requirement in the amount of $350,000 during the next 12 months, mostly for professional fees and salaries. We currently have no exploration activities planned, nor do we have sufficient funds to do so. Accordingly, we will require additional funds to embark on any exploration and development programs. These funds may be raised through asset sales, equity financing, debt financing, or other sources, which may result in further dilution in the equity ownership of our shares. There is still no assurance that we will be able to maintain operations at a level sufficient for an investor to obtain a return on his investment in our common stock. Further, we may continue to be unprofitable. We do not have any arrangements in place for any future debt or equity financing.

          Over the next 12 months we anticipate that we will incur the following cash requirements:

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           Results of Operations

           Revenue

          We have not earned any revenues from operations since inception and we do not anticipate earning such revenues until such time as we have entered into commercial production of our oil and gas projects. We are currently in the exploration stage of our business and we can provide no assurances that we will discover commercially exploitable resources on our properties, or if such resources are discovered, that we will be able to enter into commercial production. Oil and natural gas revenues and lease operating expenses related to unproved oil and gas properties that are being evaluated for commercial viability are offset against the full cost pool until proved reserves are established, or determination is made that the unproved properties are impaired.

           General and Administrative Expenses

          The decrease in General and Administrative expenses for the year ended June 30, 2011, as compared to the year ended June 30, 2010, can be primarily attributed to decreases in finder’s fee, management fees and professional and other technical fees incurred. The decrease in these expenses is the result of the controlling of costs due to the economic downturn and our reoccurring negative cash flows.

           Impairment of Unproved Interest

          During the year ended June 30, 2011, as a result of the expiration of the underlying lease, we fully impaired our Spring Creek Red River Prospect and recorded a loss on impairment of $247,820 during the period.

           Loss on Sales of Unproved Interests, net

          On October 27, 2010, we entered into a letter agreement with Petrodorado Energy Ltd. with respect to the sale by us of our wholly-owned subsidiary PetroSouth Energy Corp. BVI, including our interest in the Talora Exploration Block but excluding our interest in the Buenavista Block, to Petrodorado for $1.5 million. Upon executing the letter agreement, Petrodorado advanced the entire $1.5 million purchase price to our company. On December 1, 2010, we completed all the conditions stipulated to close the transaction. We recognized a loss of $187,013 on this sale.

          On February 25, 2010, the Company entered into an agreement with New World Petroleum Investments Inc. pursuant to which the Company agreed to sell 100% of its 25% interest for $185,000. Pursuant to the terms of the agreement, the Company received $35,000 at closing and is to receive $25,000 per month beginning April 2010 and ending September 2010. The $185,000 sales price was accounted for as a reduction of Unproved Interest and an increase in accounts receivable. The sales price exceeded our carrying value by approximately $33,883. However, under existing full cost accounting rules, this gain was not able to be recognized until we had disposed of our remaining assets in the United States in 2011, with the expiration of the underlying lease on our Spring Creek Red River Prospect.

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           Interest Expense and Gain on Forgiveness of Debt

          The decrease in interest expense for the year ended June 30, 2011, as compared to the year ended June 30, 2010, was due to our paying off the remaining balance of our interest bearing debt during December 2010. During the year ended June 30, 2011, we recorded a gain of $62,396 on the forgiveness of interest accrued on the notes when that debt was repaid.

          In September of 2009 we issued a promissory note to Stealth Energy Ventures in an original principal amount of $1,050,000 in satisfaction of outstanding convertible notes totaling $1,956,250, including $56,250 of accrued and unpaid interest. We recorded a gain of $906,250 related to the forgiveness of the then outstanding convertible notes, which was recorded as a gain on forgiveness of debt.

           Liquidity and Financial Condition

          At June 30, 2011, we had cash on hand of $303,237 and a working capital deficit of $1,207,506. We have raised net proceeds of $7,215,500 in various advances and debt and equity financings since our inception (July 27, 2004), and have used the majority of the net proceeds to acquire our prospect blocks in Colombia, as well as for general and administrative expenses and working capital purposes.

          Net cash used in operating activities for the year ended June 30, 2011, totaled $607,312 and consisted primarily of our net loss of $737,634, excluding our non-cash impairment and net loss on sales of unproved interests charges. Net cash used in operating activities for the year ended June 30, 2010, totaled $413,434 and consisted primarily of the net earnings of $356,818, net of the non-cash gain on forgiveness of debt of $906,250.

           Net cash provided by investing activities for the year ended June 30, 2011, totaled $1,484,922 and consisted primarily of the net proceeds received from the sale of our wholly-owned subsidiary PetroSouth Energy Corp. BVI, including our interest in the Talora Exploration. Net cash provided by investing activities for the year ended June 30, 2010, totaled $858,862 and consisted primarily of the $600,000 of final proceeds received from the sale of our interest in the Carbonera Block in Colombia and $109,900 of payments received on the sale of our North Semitropic prospect located in the San Joaquin Basin, Kern County, California, in February 2010.

          Net cash used in financing activities for the year ended June 30, 2011, totaled $600,000 and consisted of the required final repayment of the September 2009 promissory note upon the sale of our interest in the Talora Block. Net cash used in financing activities for the year ended June 30, 2010, totaled $450,000 and consisted of the required partial repayment of the September 2009 promissory note upon the sale of our interest in the Carbonera Block.

          On September 22, 2009, we issued a promissory note to Stealth Energy Ventures AG in an original principal amount of $1,050,000 in satisfaction of outstanding convertible notes totaling $1,956,250, including $56,250 of accrued and unpaid interest. We recorded a gain of $906,250 related to the forgiveness of the then outstanding convertible notes, which was recorded as a gain on forgiveness of debt. The promissory note carried an interest rate of 9% per annum which was payable at maturity. Upon closing on the sale of the Carbonera Block on October 2, 2009, we made a payment of $450,000 and upon selling the Talora Block we made the required $600,000 final payment.

          On October 27, 2010, we entered into a letter agreement with Petrodorado Energy Ltd. (“Petrodorado”) with respect to the sale by us of our wholly-owned subsidiary PetroSouth Energy Corp. BVI, including our interest in the Talora Exploration Block but excluding our interest in the Buenavista Block, to Petrodorado for $1.5 million. Upon executing the letter agreement, Petrodorado advanced the entire $1.5 million purchase price to us. On December 1, 2010, we completed all the conditions stipulated to close the transaction. We were obligated to pay a 6.0% finder fee, or $90,000, to our asset broker, and used $600,000 of the proceeds to repay the September 2009 Note. The balance of the proceeds will be used for general working capital purposes.

          We have suffered recurring losses from operations. The continuation of our business is dependent upon obtaining further financing, a successful program of exploration, and, finally, achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

          There are no assurances that we will be able to obtain further funds required for our continued operations. As noted herein, we are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will be unable to conduct our operations as planned, and we will not be able to meet our other obligations as they become due. In such event, we will be forced to scale down or perhaps even cease our operations.

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           Off-Balance Sheet Arrangements

          We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

           Critical Accounting Policies

           Accounting for Oil and Gas Properties

          We use the full-cost method of accounting for our exploration and development activities. Under this method of accounting, the cost of both successful and unsuccessful exploration and development activities are capitalized as oil and gas property. We have not incurred any internal costs that are directly related to exploration and development activities, including salaries and benefits, which could be capitalized as part of oil and gas property. Proceeds from the sale or disposition of oil and gas properties are accounted for as a reduction to capitalized costs unless a significant portion (greater than 25 percent) of our reserve quantities in a particular country are sold, in which case a gain or loss is recognized. Under the full-cost method of accounting, we apply a ceiling test to the capitalized cost in the full cost pool. We compute the ceiling test so that capitalized cost, less accumulated depletion and related deferred income tax, do not exceed an amount (the ceiling) equal to the sum of: (A) The present value, using a ten percent discount rate, of estimated future net revenue computed by applying average annual prices based on the first day of each month to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet presented, less estimated future expenditures (based on current cost) to be incurred in developing and producing the proved reserves computed using a discount factor of ten percent and assuming continuation of existing economic conditions; plus (B) the cost of unevaluated properties and major development projects excluded from the costs being amortized; plus (C) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; less (D) income tax effects related to differences between the book and tax basis of the property. If capitalized costs exceed this limit, the excess is charged to expense and reflected as additional depreciation, depletion and amortization.

          Oil and gas unevaluated properties and properties under development include costs that are excluded from costs being depreciated or amortized. These costs represent investments in unproved properties and major development projects in which we own a direct interest. We exclude these costs until proved reserves are found, until it is determined that the costs are impaired, or major development projects are placed in service. All costs excluded are reviewed at least quarterly to determine if impairment has occurred. We add the amount of impairment assessed to the cost to be amortized subject to the ceiling test.

          We did not have a ceiling test impairment during the year ended June 30, 2011. Our oil and gas properties totaling $2,230,634 consists solely of unevaluated properties excluded from the costs being amortized. However, during the year ended June 30, 2011, as a result of the expiration of our leases underlying our Spring Creek Red River Prospect, we fully impaired this prospect recognizing a total impairment charge of $247,820.

           Revenue Recognition

          Oil and natural gas revenues related to proved oil and gas properties are recorded using the sales method whereby we recognize oil and natural gas revenue based on the amount of oil and gas sold to purchasers when title passes, the amount is determinable and collection is reasonably assured. Actual sales of gas are based on sales, net of the associated volume charges for processing fees and for costs associated with delivery, transportation, marketing, and royalties in accordance with industry standards. Operating costs and taxes are recognized in the same period for which revenue is earned. We did not recognize any revenue related to proved oil and gas properties during the years ended June 30, 2011 or 2010.

          Oil and natural gas revenues and lease operating expenses related to unproved oil and gas properties that are being evaluated for commercial viability are offset against the full cost pool until proved reserves are established, or determination is made that the unproved properties are impaired.

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           Basic and Diluted Earnings (Loss) per Share

          We compute earnings (loss) per share in accordance with ASC Topic 260, “Earnings per Share”. ASC Topic 260 requires presentation of both basic and diluted earnings (loss) per share (EPS) on the face of the statement of operations. Basic EPS is computed by dividing earnings (loss) available to common shareholders by the weighted average number of shares outstanding during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive.

          During the year ended June 30, 2010, and during part of 2011, there were 6,206,667 warrants outstanding, respectively that were not included in the computation of diluted earnings (loss) per share because the effect would have been anti-dilutive. As of June 30, 2011, we had no warrants outstanding.

           Foreign Currency Translation Adjustments

          The U.S. dollar is the functional currency for our consolidated operations except its Colombian branch, which uses the Colombian peso as the functional currency. Our U.S. operations and Colombian operations do not engage in transactions other than in their functional currencies. As such, we had no material earnings impact from foreign currency transaction gains and losses. The assets and liabilities of our Colombian branch are translated into U.S. dollars based on the current exchange rate in effect at the balance sheet date. Colombian income and expenses are translated at average rates for the periods presented. Translation adjustments have no effect on net income and are included in accumulated other comprehensive income in stockholders’ equity. We have an immaterial deferred tax asset due to a translation loss.

           Comprehensive Income

          ASC Topic 220, “Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive income and its components in the financial statements. Comprehensive income resulting from the translation of our subsidiary financial statements for the years ended June 30, 2010 and 2009, are recorded as accumulated other comprehensive income.

           Contractual Obligations

          As a “smaller reporting company”, we are not required to provide tabular disclosure obligations.

Item 7A.        Quantitative and Qualitative Disclosures About Market Risk

          As a “smaller reporting company”, we are not required to provide the information required by this Item.

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Item 8.         Financial Statements and Supplementary Data

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of
West Canyon Energy Corp. and Subsidiary (formerly PetroSouth Energy Corp.)
(An Exploration Stage Company)

We have audited the accompanying consolidated balance sheets of West Canyon Energy Corp. and Subsidiary (An Exploration Stage Company) (the Company) as of June 30, 2011 and 2010, and the related consolidated statements of operations, stockholders’ equity and cash flows for the years then ended, and for the period from inception (July 27, 2004) to June 30, 2011. The Company’s management is responsible for these consolidated financial statements. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

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

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of West Canyon Energy Corp. and Subsidiary (an Exploration Stage Company) at June 30, 2011 and 2010, and the consolidated results of operations and cash flows for the years then ended, and for the period from inception (July 27, 2004) to June 30, 2011, in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has incurred losses since inception, has not attained profitable operations and is dependent upon obtaining adequate financing to fulfill its exploration activities. These factors raise substantial doubt that the Company will be able to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Weaver and Tidwell, L.L.P.

WEAVER AND TIDWELL, L.L.P.
Houston, Texas
October 13, 2011

20

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

CONSOLIDATED BALANCE SHEETS
(Stated in U.S. Dollars)

		June 30, 2011			June 30, 2010
ASSETS
CURRENT ASSETS:
Cash and Cash Equivalents	$	303,237		$	24,422
Advances to Operators		-			117,160
Accounts Receivable		-			78,214
Prepaid Expenses and Other Current Assets		42,782			49,764
Total Current Assets		346,019			269,560
Unproved Interest		2,230,634			3,669,416
Furniture & Equipment, net		-			2,193
Total Assets	$	2,576,653		$	3,941,169
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts Payable - Trade	$	20,419		$	252,941
Accrued Interest Payable		-			43,015
Accrued Liabilities		295,856			9,259
Advances		1,190,000			1,190,000
Note Payable		-			600,000
Other Liabilities		47,250			91,397
Total Current Liabilities		1,553,525			2,186,612
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common Stock:
Authorized: 150,000,000 shares, par value $0.001     Issued and outstanding: 21,706,667 and 21,206,667     shares at June 30, 2011 and June 30, 2010, respectively		21,707			21,207
Additional Paid-In Capital		6,426,469			6,421,969
Deficit Accumulated During the Exploration Stage		(5,420,347	)		(4,682,713	)
Accumulated Other Comprehensive Loss		(4,701	)		(5,906	)
Total Stockholders' Equity		1,023,128			1,754,557
Total Liabilities and Stockholders' Equity	$	2,576,653		$	3,941,169

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

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WEST CANYON ENERGY CORP AND SUBSIDIARY
(An Exploration Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS
(Stated in U.S. Dollars)

								Cumulative
								Period
		For the Year Ended						from Inception,
		June 30,						July 27, 2004, to
		2011			2010			June 30, 2011
REVENUE	$	-		$	-		$	-
OPERATING EXPENSES:
General & Administrative		361,528			487,845			2,817,118
Impairment of Unproved Interest		247,820			-			3,443,850
Loss on Sales of Unproved Interests, net		153,130			-			153,130
		762,478			487,845			6,414,098
OPERATING LOSS		(762,478	)		(487,845	)		(6,414,098	)
Interest Expense, net		(37,382	)		(63,780	)		(377,005	)
Gain on Forgiveness of Debt		62,396			906,250			968,646
Other Income and (Expense), net		(170	)		2,193			402,110
Income (Loss) Before Income Taxes		(737,634	)		356,818			(5,420,347	)
Income Taxes		-			-			-
Net Income (Loss)		(737,634	)		356,818			(5,420,347	)
Foreign Currency Translation		1,205			(1,009	)		(4,701	)
Comprehensive Income (Loss)	$	(736,429	)	$	355,809		$	(5,425,048	)
Basic and Diluted Earnings (Loss) per Share	$	(0.03	)	$	0.02
Number of Common Shares Used in Basic and Diluted Earnings (Loss) per Share		21,453,242			20,954,612

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

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Stated in U.S. Dollars)

								Cumulative
								Period
		For the Year Ended						from Inception,
		Ended June 30,						July 27, 2004, to
		2011			2010			June 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$	(737,634	)	$	356,818		$	(5,420,347	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities:
Depreciation		487			1,338			4,561
Amortization of Deferred Financing Costs		-			21,655			66,500
Impairment of Unproved Interest		247,820			-			3,443,850
Loss on Sales of Unproved Interest, net		153,130			-			153,130
Gain on Forgiveness of Debt		(62,396	)		(906,250	)		(968,646	)
Non-Cash Payment of Compensation		5,000			40,500			510,500
Advances to Operators, Receivables and Prepaids		(31,443	)		(118,594	)		(158,079	)
Accounts Payable and Accrued Liabilities		(182,276	)		137,070			199,188
Other Liabilities		-			54,029			55,202
Net Cash Used in Operating Activities		(607,312	)		(413,434	)		(2,114,141	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Unproved Interests		-			148,962			(3,448,099	)
Disposition of Unproved Interests		1,484,922			709,900			2,344,822
Acquisition, Net of Cash Acquired		-			-			401,056
Loans to Affiliated Company		-			-			(2,750,000	)
Net Cash Provided by (Used in) Investing Activities		1,484,922			858,862			(3,452,221	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Issuance of Common Stock		-			-			3,900,500
Advances from Shareholder		-			-			200,000
Shareholder Loan		-			-			25,000
Repayments of Advances from Shareholder		-			-			(199,700	)
Proceeds from Convertible Debt		-			-			1,900,000
Deferred Financing Costs		-			-			(91,500	)
Proceeds from Advances		-			-			1,190,000
Repayment of Note Payable		(600,000	)		(450,000	)		(1,050,000	)
Net Cash Provided by (Used in) Financing Activities		(600,000	)		(450,000	)		5,874,300
Effect of Exchange Rate on Cash		1,205			(1,009	)		(4,701	)
Increase (Decrease) In Cash During The Year		278,815			(5,581	)		303,237
Cash, Beginning Of Year		24,422			30,003			-
Cash, End Of Year	$	303,237		$	24,422		$	303,237
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash Paid for Interest	$	-		$	-		$	-
Cash Paid for Taxes	$	-		$	-		$	-
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Shareholder Loans Contributed to Capital	$	-		$	-		$	25,300
Acquisition of PetroSouth Energy Corp BVI:
Issuance of 5,653,333 Shares of Common Stock	$	-		$	-		$	2,011,876
Forgiveness of Demand Loans Receivable from Affiliated Company	$	-		$	-		$	2,750,000

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

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
PERIOD FROM JULY 27, 2004 (INCEPTION) TO JUNE 30, 2011
(Stated In U.S. Dollars)

											Deficit
											Accumulated			Accumulated
								Additional			During the			Other
		Common Stock						Paid-in			Exploration			Comprehensive
		Shares			Amount			Capital			Stage			Income (Loss)			Total
Balance July 27, 2004 (date of Inception)		-		$	-		$	-		$	-		$	-		$	-
Issuance of Common Stock for cash at    $.0005, January 2005		11,000,000			11,000			(5,500	)		-			-			5,500
Issuance of Common Stock for cash at    $.005, June 2005		2,400,000			2,400			9,600			-			-			12,000
Issuance of Common Stock for cash at    $.10, September 2005		180,000			180			17,820			-			-			18,000
Net Loss		-			-			-			(37,796	)		-			(37,796	)
Balance, June 30, 2006		13,580,000		$	13,580		$	21,920		$	(37,796	)	$	-		$	(2,296	)
Issuance of Common Stock for cash at    $3.75, May 2007		53,333			53			199,947			-			-			200,000
Shareholder Loan Contributed to Capital    May 2007		-			-			25,000			-			-			25,000
Issuance of Common Stock for cash at    $3.75, June 2007		266,667			267			999,733			-			-			1,000,000
Net Loss		-			-			-			(110,974	)		-			(110,974	)
Balance, June 30, 2007		13,900,000		$	13,900		$	1,246,600		$	(148,770	)	$	-		$	1,111,730
Issuance of Common Stock for cash at    $5.00, August 2007		300,000			300			1,499,700			-			-			1,500,000
Issuance of Common Stock for cash at    $3.75, May 2007; closed September 2007		53,333			53			199,947			-			-			200,000
Issuance of Common Stock at $0.35 for all    of the issued and oustanding common    shares of PetroSouth Energy Corp. BVI,    October 2, 2007		5,653,333			5,654			2,006,222			-			-			2,011,876
Issuance of Common Stock for cash at    $5.00, October 11, 2007		100,000			100			482,400			-			-			482,500
Issuance of Common Stock for cash at    $5.00, November 28, 2007		100,000			100			482,400			-			-			482,500
Issuance of Common Stock for services    $1.05, June 23, 2008		300,000			300			314,700			-			-			315,000
Net Loss		-			-			-			(974,969	)		-			(974,969	)
Comprehensive Income		-			-			-			-			4,891			4,891
Balance, June 30, 2008		20,406,667		$	20,407		$	6,231,969		$	(1,123,739	)	$	4,891		$	5,133,528
Issuance of Common Stock for services    $1.30, July 22, 2008		100,000			100			129,900			-			-			130,000
Issuance of Common Stock for services    $0.20, January 29, 2009		100,000			100			19,900			-			-			20,000
Shareholder Loan Contributed to Capital    June 2007		-			-			300			-			-			300
Net Loss		-			-			-			(3,915,792	)		-			(3,915,792	)
Comprehensive Loss		-			-			-			-			(9,788	)		(9,788	)
Balance, June 30, 2009		20,606,667		$	20,607		$	6,382,069		$	(5,039,531	)	$	(4,897	)	$	1,358,248
Issuance of Common Stock for services    $0.03, July 2, 2009		100,000			100			2,900			-			-			3,000
Issuance of Common Stock for services    $0.075, January 1, 2010		500,000			500			37,000			-			-			37,500
Net Income		-			-			-			356,818			-			356,818
Comprehensive Income		-			-			-			-			(1,009	)		(1,009	)
Balance, June 30, 2010		21,206,667		$	21,207		$	6,421,969		$	(4,682,713	)	$	(5,906	)	$	1,754,557
Issuance of Common Stock for services    $0.01, January 1, 2011		500,000			500			4,500			-			-			5,000
Net Income		-			-			-			(737,634	)		-			(737,634	)
Comprehensive Income		-			-			-			-			1,205			1,205
Balance, June 30, 2011		21,706,667		$	21,707		$	6,426,469		$	(5,420,347	)	$	(4,701	)	$	1,023,128

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

24

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.        ORGANIZATION AND HISTORY

          The Company was incorporated in the State of Nevada on July 27, 2004, under the name of Mobridge Explorations, Inc. Since inception, the Company was primarily engaged in the acquisition and exploration of mineral properties. Pursuant to a mineral property option agreement dated July 6, 2005, the Company was granted an option to acquire a 100% undivided right, title and interest in a total of 15 mineral claim units, known as the Chambers Township claim block, located in the Sudbury Mining Division of Ontario, Canada. On November 1, 2006, the mineral property option agreement was terminated.

          Effective April 30, 2007, the Company completed a merger with its’ wholly-owned subsidiary, PetroSouth Energy Corp. The sole purpose of the merger was to change the name of the Company from Mobridge Explorations Inc. to PetroSouth Energy Corp. and the subsidiary company was incorporated solely for such purpose. Concurrently with this merger, the Company effected a ten for one stock split of its’ authorized, issued and outstanding common stock. As a result, its’ authorized capital increased from 75,000,000 shares of common stock with a par value of $0.001 to 750,000,000 shares of common stock with a par value of $0.001.

          During the year ended June 30, 2007, the Company abandoned the mineral property located in the Province of Ontario, Canada and focused its effort on expanding its operations in the oil and gas industry through additional equity financing and acquisitions. On October 2, 2007, the Company completed the acquisition of all of the issued and outstanding common stock of PetroSouth Energy Corp. BVI, a privately-owned British Virgin Islands corporation engaged in oil and gas exploration. As a result of the share purchase transaction, PetroSouth Energy Corp. BVI became a wholly-owned subsidiary of the Company. All operations and efforts of the Company are focused in the oil and gas industry and are subject to the related risks of the industry.

          Effective April 11, 2008, the Company completed a merger with its’ wholly-owned subsidiary, West Canyon Energy Corp., a Nevada corporation. The sole purpose of the merger was to change the name of the Company from PetroSouth Energy Corp. to West Canyon Energy Corp. and the subsidiary company was incorporated solely for such purpose.

          Effective November 7, 2008, the Company effected a five for one reverse stock split of its authorized, issued and outstanding common stock. As a result, its authorized capital decreased from 750,000,000 shares of common stock with a par value of $0.001 to 150,000,000 shares of common stock with a par value of $0.001.

          The effects of the stock splits noted above have been reflected in the Company’s financial statements as if the stock splits were effective at the Company’s inception on July 27, 2004.

          The Company is an Exploration Stage Company as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic No. 915. Unless otherwise specified, all dollar amounts are expressed in United States dollars.

           Going Concern

          These consolidated financial statements have been prepared on a going concern basis. We have incurred losses since inception (July 27, 2004) resulting in an accumulated deficit of $5,420,347 and further losses are anticipated in the development of the business, raising substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent upon our ability to generate profitable operations in the future and/or to obtain the necessary capital and financing to meet our obligations and repay our liabilities arising from normal business operations when they come due. The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event we cannot continue as a going concern.

25

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

           Basis of Presentation

          The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company’s fiscal year end is June 30. Certain reclassifications have been made to prior periods presented to conform with current period presentation.

           Principles of Consolidation

          The consolidated financial statements as of June 30, 2010, presented herein for comparative purposes, included the accounts of the Company’s wholly owned subsidiary, PetroSouth Energy Corp. BVI, and Petrosouth Energy Corporation Sucursal Colombia, a wholly owned branch of PetroSouth Energy Corp. BVI. Effective December 1, 2010, the Company sold PetroSouth Energy Corp. BVI and Petrosouth Energy Corporation Sucursal Colombia (see Note 3).

          Effective March 25, 2011, the Company formed a new Colombian Branch, West Canyon Energy Corp. Sucursal Columbia, to hold its remaining Colombian interests.

          All intercompany transactions have been eliminated upon consolidation.

          Management does not believe the Company to be the primary beneficiary of any entity, nor does Management believe the Company to hold any variable interests. The Company’s interest in oil and gas exploration and production ventures and partnerships are proportionately consolidated.

           Use of Estimates

          Preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. The Company evaluates its estimates and assumptions on a regular basis. Actual results may differ from these estimates and assumptions used in preparation of its financial statements and changes in these estimates are recorded when known.

           Cash and Cash Equivalents

          The Company considers all highly liquid instruments with an original maturity of three months or less at the time of original issuance to be cash equivalents.

           Concentration of Credit Risk

          The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash deposits held by financial institutions, notes payable and advances. The Company places cash deposits with highly rated financial institutions located in the United States and Colombia. At times, cash balances held in financial institutions in the United States may be in excess of FDIC insurance limits. Balances held in Colombia are not subject to FDIC protection. The Company believes the financial institutions are financially strong and the risk of loss is minimal. The Company has not experienced any losses with respect to the related risks and does not believe its exposure to such risk is more than nominal.

          All operations and efforts of the Company are focused in the oil and gas industry and are subject to the related risks of the industry. The majority of the Company’s oil and gas properties and all related operations are located near Bogota, Colombia.

26

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

           Financial Instruments

          The fair values of financial instruments, which include cash, accounts receivable, advances to operators, accounts payable, accrued liabilities and advances, approximate their carrying values due to the relatively short maturity of these instruments.

           Accounting for Oil and Gas Properties

          The Company uses the full-cost method of accounting for its exploration and development activities. Under this method of accounting, the cost of both successful and unsuccessful exploration and development activities are capitalized as oil and gas property. The Company has not incurred any internal costs that are directly related to exploration and development activities, including salaries and benefits, which could be capitalized as part of oil and gas property. Proceeds from the sale or disposition of oil and gas properties are accounted for as a reduction to capitalized costs unless a significant portion (greater than 25 percent) of the Company’s reserve quantities in a particular country are sold, in which case a gain or loss is recognized. Under the full-cost method of accounting, the Company applies a ceiling test to the capitalized cost in the full cost pool. The Company computes the ceiling test so that capitalized cost, less accumulated depletion and related deferred income tax, do not exceed an amount (the ceiling) equal to the sum of: (A) The present value, using a ten percent discount rate, of estimated future net revenue computed by applying average annual prices based on the first day of each month to estimated future production of proved oil and gas reserves as of the date of the latest balance sheet presented, less estimated future expenditures (based on current cost) to be incurred in developing and producing the proved reserves computed using a discount factor of ten percent and assuming continuation of existing economic conditions; plus (B) the cost of unevaluated properties and major development projects excluded from the costs being amortized; plus (C) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; less (D) income tax effects related to differences between the book and tax basis of the property. If capitalized costs exceed this limit, the excess is charged to expense and reflected as additional depreciation, depletion and amortization. See Note 3. Unproved Interest for further discussion.

          Oil and gas unevaluated properties and properties under development include costs that are excluded from costs being depreciated or amortized. These costs represent investments in unproved properties and major development projects in which the Company owns a direct interest. The Company excludes these costs until proved reserves are found, until it is determined that the costs are impaired, or major development projects are placed in service. All costs excluded are reviewed at least quarterly to determine if impairment has occurred. The Company adds the amount of impairment assessed to the cost to be amortized subject to the ceiling test.

          The Company recognizes liabilities for retirement obligations associated with tangible long-lived assets, such as producing well sites, when there is a legal obligation associated with retirement of such assets and the amount can be reasonably estimated.

           Revenue Recognition

          Oil and natural gas revenues related to proved oil and gas properties are recorded using the sales method whereby the Company recognizes oil and natural gas revenue based on the amount of oil and gas sold to purchasers when title passes, the amount is determinable and collection is reasonably assured. Actual sales of gas are based on sales, net of the associated volume charges for processing fees and for costs associated with delivery, transportation, marketing, and royalties in accordance with industry standards. Operating costs and taxes are recognized in the same period for which revenue is earned. The Company did not recognize any revenue related to proved oil and gas properties during the years ended June 30, 2011 or 2010.

          Oil and natural gas revenues and lease operating expenses related to unproved oil and gas properties that are being evaluated for commercial viability are offset against the full cost pool until proved reserves are established, or determination is made that the unproved properties are impaired.

27

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

           Income Taxes

          The Company records deferred tax assets and liabilities to account for the expected future tax consequences of events that have been recorded in its financial statements. The Company routinely assesses the realizability of its deferred tax assets. If the Company concludes that it is more likely than not that some portion or all of the deferred tax assets will not be realized under accounting standards, the tax asset is reduced by a valuation allowance. Numerous judgments and assumptions are inherent in the determination of future taxable income, including factors such as future operating conditions (particularly as related to prevailing oil and gas prices).

           Basic and Diluted Earnings (Loss) per Share

          The Company’s basic earnings (loss) per share (EPS) amounts have been computed based on the weighted-average number of shares of Common Stock outstanding for the period. Diluted EPS reflects the potential dilution, using the treasury stock method, which could occur if the Company’s dilutive securities were exercised.

          During the year ended June 30, 2010, and during part of 2011, there were 6,206,667 warrants outstanding, respectively that were not included in the computation of diluted earnings (loss) per share because the effect would have been anti-dilutive. As of June 30, 2011, the Company had no warrants outstanding.

           Stock-Based Compensation

          The Company accounts for stock-based compensation under the fair value recognition provisions of ASC Topic 718, “Compensation - Stock Compensation.” The Company has not granted any type of stock-based awards. Stock compensation awards granted are valued on the date of grant and are expensed, net of estimated forfeitures, on a straight-line basis over the required service period.

           Foreign Currency Translation Adjustments

          The U.S. dollar is the functional currency for the Company’s consolidated operations except its Colombian branch, which uses the Colombian peso as the functional currency. The Company’s U.S. operations and Colombian operations do not engage in transactions other than in their functional currencies. As such, the Company had no material earnings impact from foreign currency transaction gains and losses. The assets and liabilities of the Company’s Colombian branch are translated into U.S. dollars based on the current exchange rate in effect at the balance sheet date. Colombian income and expenses are translated at average rates for the periods presented. Translation adjustments have no effect on net income and are included in accumulated other comprehensive income in stockholders’ equity. The Company has an immaterial deferred tax asset due to a translation loss.

           Comprehensive Income

          ASC Topic 220, “Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive income and its components in the financial statements. The Company’s comprehensive loss results from the translation of the Company’s subsidiary financial statements.

           New Pronouncements Issued But Not Yet Adopted

          All new accounting pronouncements previously issued have been adopted as of or prior to June 30, 2011.

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

3.        UNPROVED INTEREST

           Buenavista Block

          The Company owns a 16% participation stake in the Buenavista Block. This is an exploration project located northeast of Bogota, Colombia. In December 2007, the Company commenced drilling on the Bochica 1 development well. During the initial drilling of the Bochica1, the Company had to cease drilling until additional drilling rigs could be obtained. In early 2008, a workover was performed on the Bochica 1 well, but was not successful. In January 2009, the Company completed a seismic 3D shoot in the 70 kilometer area around the Bochica 1 well to determine if the Company had any further potential production zones. In May 2009, the Bochica 1 well was determined to be a dry hole and was subsequently plugged and abandoned. Under the full cost method of accounting, the costs associated with abandoned wells are to be transferred to the full cost pool and depleted over the useful life of proved reserves. Since the Company had no proven reserve value as of June 30, 2009, these costs were considered impaired. As a result, the Company recognized a $1,197,229 impairment charge related to the Buenavista Block for the year ended June 30, 2009. In May 2009, the Bolivar 2 well was drilled based on the information obtained from the 3D seismic information from the Bochica 1 well site. As of June 30, 2011, the Company had not yet determined the commerciality of the Buenavista Block.

           Talora Exploration Block

          At June 30, 2010, The Company owned a 20% participation interest in the Talora Exploration Block which lies Southwest of Bogota, Colombia. The Company commenced drilling of the Manatial development well in January of 2008. During the drilling of the Manatial, the Company encountered rig problems that caused damage to the well. During 2009 an unsuccessful re-entry workover was performed on the Manatial and the well was determined to be a dry hole. In June 2009 the Manatial was plugged and abandoned. During 2009, the Company commenced drilling on the Montemelo development well and it was subsequently plugged and abandoned in June of 2009. Since the Company had no proven reserve value as of June 30, 2009, these costs were considered impaired. As a result, the Company recognized a $1,998,801 impairment charge related to the Talora Exploration Block for the year ended June 30, 2009.

          On October 27, 2010, the Company entered into a letter agreement with Petrodorado Energy Ltd. (“Petrodorado”) with respect to the sale by the Company of its wholly-owned subsidiary PetroSouth Energy Corp. BVI, including the Company’s interest in the Talora Exploration Block but excluding the Company’s interest in the Buenavista Block, to Petrodorado for $1.5 million. Upon executing the letter agreement, Petrodorado advanced the entire $1.5 million purchase price to the Company. The Company was obligated to pay a finder’s fee related to the sale.

          On December 1, 2010, the Company completed all the conditions stipulated to close the transaction. We recognized a loss of $187,013 on this sale during the year ended June 30, 2011.

          The Company used $600,000 of the net proceeds to repay the September 2009 Note (see Note 5), with the balance used for general working capital purposes.

           Carbonera Block

          At June 30, 2009, the Company owned a 6% participation interest in approximately 64,000 acres in the Carbonera Block located Northeast of Bogota, Colombia. The project was near the Venezuelan border in the Catatumbo Basin in Northeastern Colombia. On September 22, 2009, the Company entered into an agreement with Delavaco Energy Colombia Inc. Sucursal Colombia pursuant to which the Company agreed to sell 100% of its 6% non-operated participation interest in the Carbonera Block for $750,000, which approximated the Company’s carrying value. Closing of the agreement took place on October 2, 2009. The Company’s former chief financial officer and director is also a consultant of Delavaco Energy Colombia Inc. The $750,000 of proceeds was accounted for as a reduction of Unproved Interest.

          The Company used $450,000 of the net proceeds to repay the September 2009 Note (see Note 5), with the balance used for general working capital purposes.

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

           North Semitropic Prospect

          At June 30, 2009, the Company owned a 25% interest in the North Semitropic prospect located in the San Joaquin Basin, Kern County, California. On February 25, 2010, the Company entered into an agreement with New World Petroleum Investments Inc. pursuant to which the Company agreed to sell 100% of its 25% interest for $185,000. Pursuant to the terms of the agreement, the Company received $35,000 at closing and is to receive $25,000 per month beginning April 2010 and ending September 2010.

          The sales price exceeded the Company’s carrying value by approximately $33,883. However, under existing full cost accounting rules, this gain was not able to be recognized until we had disposed of our remaining assets in the United States in 2011, with the expiration of the underlying lease on our Spring Creek Red River Prospect. During the year ended June 30, 2011, we recognized this gain as a component of Loss on Sales of Unproved Interests, net.

           Spring Creek Red River Prospect

          On March 25, 2008, the Company entered into a letter of intent to acquire leases in the Spring Creek Red River Prospect for the payment of $240,000 and $7,500 in geologist fees. During the year ended June 30, 2011, as a result of the expiration of the underlying lease, the Company fully impaired this prospect.

           Costs Excluded from Depletion

          Included in unproved oil and gas properties are the following costs related to Colombia and the United States unproved properties, valued at cost, that have been excluded from costs subject to depletion:

4.        ADVANCES

          Since November 2008, the Company has received advances of $1,190,000 from a lender. The parties are in process of negotiating the terms, including the potential of an equity investment; however, the Company has not entered into any definitive agreements.

5.        NOTES PAYABLE

           September 2009 Promissory Note

          On September 22, 2009, the Company issued a promissory note (“September 2009 Note”) to Stealth Energy Ventures AG (“Stealth”) in an original principal amount of $1,050,000 in satisfaction of the four outstanding convertible notes totaling $1,956,250, including $56,250 of accrued and unpaid interest. The Company recorded a gain of $906,250 related to the forgiveness of the then outstanding convertible notes, which was recorded as a gain on forgiveness of debt. The September 2009 Note carried an interest rate of 9% per annum, which was payable at maturity. The promissory note is repayable as follows:

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

          i.      $450,000 payable upon disposition of the Company’s interest in the Carbonera Block, which was to occur on or before November 1, 2009; and

          ii.      $600,000 payable upon disposition of the Company’s interest in the Buena Vista project, which is to occur on or before May 31, 2010.

          Upon closing on the sale of the Carbonera Block on October 2, 2009, the Company made the required payment of $450,000, in accordance with the repayment terms. Upon receipt of the $1.5 million advance on sale of the Company’s Colombian subsidiary, PetroSouth Energy Corp. BVI, the Company repaid the note in full (see Note 3).

6.        COMMON STOCK

          During the period from July 27, 2004 (Inception) to June 30, 2011, the Company issued 103,033,333 share of Common Stock (20,606,667 on a split-adjusted basis) for total cash proceeds of $3,900,500, net of issuance costs.

7.        STOCK BASED COMPENSATION

          During the twelve months ended June 30, 2011 and 2010, the Company’s President, in accordance with his employment contract, was granted shares of the Company’s common stock as compensation for services provided to the Company. The common shares were fully vested at the date of grant and have all ordinary and normal rights of other shares of the Company’s common stock. The Company estimated the fair value of the common shares at date of grant to be $5,000 and $40,500, based on the closing share price of the Company’s common stock on the day prior to the grant date and recognized this amount in its consolidated financial statements, as of June 30, 2011 and 2010, respectively.

8.        INCOME TAXES

          The Company’s net income (loss) before income taxes totaled $(737,634) and $356,818 for the years ended June 30, 2011 and 2010, respectively. The total provision for income taxes, consist of the following:

          A reconciliation of the provision for income taxes with amounts determined by applying the statutory U.S. Federal income tax rate to income (loss) before income taxes is as follows:

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WEST CANYON ENERGY CORP. AND SUBSIDIARY
(An Exploration Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

          The tax effect of temporary differences which give rise to significant portions of deferred tax assets or liabilities at June 30, 2011 are as follows:

          Deferred tax assets have resulted primarily from the Company’s future deductible temporary differences. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion, or all, of the deferred tax asset may not be realized. The Company’s ability to realize the deferred tax assets depends upon the generation of sufficient future taxable income to allow the utilization of the deductible temporary differences and tax planning strategies. Management evaluates the reliability of the deferred tax assets and the need for a valuation allowance annually. At this time, based on current facts and circumstances, potential benefit of the deferred tax assets has not been recognized in the consolidated financial statements because the Company cannot be assured it is more likely than not it will utilize the deferred tax assets in future years. At June 30, 2011, the Company has a net operating loss carryforward of $222,195 that expires in 2029. The Company had no uncertain tax positions as of June 30, 2011. The Company’s tax returns for 2007 and subsequent years remain subject to examination by tax authorities.

9.        COMMITMENTS

          On July 2, 2008, the Company entered into a consulting agreement with Summit Consulting Limited (“Summit Consulting”) to retain the services of Mr. Shane Reeves as President and Director of the Company. Pursuant to the terms of the agreement, the Company agreed to pay monthly management fees of $8,000 as compensation for the services to be rendered. In addition, the agreement provided for the issuance of 100,000 shares of common stock, upon entering into the agreement and upon each annual renewal of the agreement. On July 22, 2008, the Company approved the issuance of 100,000 shares of common stock, to Mr. Reeves pursuant to the terms of the agreement. On January 29, 2009, the Company entered into an amending agreement with Summit Consulting to extend the term of the consulting agreement from July 2, 2009, to December 31, 2009, and provided for the issuance of an additional 100,000 shares of restricted stock. On January 1, 2010, the Company entered an amending agreement with Summit Consulting (“Second Amendment”). The Second Amendment provides for a monthly management fee of $10,000 and the issuance of 500,000 shares of common stock upon entering into the agreement and 500,000 shares of common stock on each annual renewal of the agreement. The Second Amendment expires on January 1, 2012. During 2011 the Company recognized $5,000 of non-cash compensation expense related to the 500,000 shares issued.

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

          None

Item 9A.     Controls and Procedures

           Disclosure Controls and Procedures

          We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934 , as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our President (who is acting as our principal executive officer and our principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure.

          As of June 30, 2011, the end of our fiscal year covered by this report, we carried out an evaluation, under the supervision and with the participation of our President (also our principal executive officer and our principal financial and accounting officer) of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our President (also our principal executive officer and our principal financial and accounting officer) concluded that our disclosure controls and procedures were effective as of the end of the period covered by this annual report.

           Management’s Report on Internal Control over Financial Reporting

          Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control include providing management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management’s authorization and recorded properly to permit the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States. Our management assessed the effectiveness of our internal control over financial reporting as of June 30, 2011. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework . Our management has concluded that, as of June 30, 2011, our internal control over financial reporting was effective.

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

           Inherent limitations on effectiveness of controls

          Internal control over financial reporting has inherent limitations which include but is not limited to the use of independent professionals for advice and guidance, interpretation of existing and/or changing rules and principles, segregation of management duties, scale of organization, and personnel factors. Internal control over financial reporting is a process which involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a timely basis, however these inherent limitations are known features of the financial reporting process and it is possible to design into the process safeguards to reduce, though not eliminate, this risk. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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           Changes in Internal Control over Financial Reporting

          There have been no changes in our internal controls over financial reporting that occurred during the year ended June 30, 2011, that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

Item 9B.    Other Information

          None.

PART III

Item 10.    Directors, Executive Officers and Corporate Governance

     All directors of our Company hold office until the next annual meeting of the security holders or until their successors have been elected and qualified. The officers of our Company are appointed by our board of directors and hold office until their death, resignation or removal from office. Our directors and executive officers, their ages, positions held, and duration as such, are as follows:

           Business Experience

          The following is a brief account of the education and business experience during at least the past five years of each director, executive officer and key employee of our Company, indicating the person’s principal occupation during that period, and the name and principal business of the organization in which such occupation and employment were carried out.

           Shane Reeves – President, Chairman and Director

          Shane Reeves has been actively involved in the oil and gas industry over the last nine years where he has held executive positions in both private and public oil and gas companies. Shane is currently a partner in a Houston based, oil and gas fund, which provides acquisition and developmental financing to North American energy companies.

          Shane is also the Founder and General Partner of Denver based Omni Capital, where he has served as a consultant to numerous oil and gas companies in raising capital for the development of proven properties as well as identifying new acquisition opportunities with proven reserves and potential upside.

          Prior to that, Shane has held the position of Vice President of Investments with a New York based investment banking firm and Account Executive with Morgan Stanley in Denver, Colorado.

           Family Relationships

          There are no family relationships between any of our directors, executive officers and proposed directors or executive officers.

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Involvement in Certain Legal Proceedings

          None of our directors, executive officers, promoters or control persons has been involved in any of the following events during the past five years:

1.	any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;
2.	any conviction in a criminal proceeding or being subject to a pending criminal proceeding, excluding traffic violations and other minor offences;
3.	being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or
4.	being found by a court of competent jurisdiction in a civil action, the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.

Compliance with Section 16(a) of the Securities Exchange Act of 1934

          Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers and directors and persons who own more than 10% of our common stock to file with the Securities and Exchange Commission initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of our common stock and other equity securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and greater than 10% shareholders are required by the SEC regulations to furnish us with copies of all Section 16(a) reports that they file.

          Based solely on our review of the copies of such forms received by us, or written representations from certain reporting persons, we believe that during fiscal year ended June 30, 2010, all filing requirements applicable to our officers, directors and greater than 10% percent beneficial owners were complied with.

Code of Ethics

          Effective September 12, 2007, our company's board of directors adopted a Code of Business Conduct and Ethics that applies to, among other persons, our company's President (being our principal executive officer and our principal financial accounting officer), as well as persons performing similar functions. As adopted, our Code of Business Conduct and Ethics sets forth written standards that are designed to deter wrongdoing and to promote:

	1.	honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
	2.	full, fair, accurate, timely, and understandable disclosure in reports and documents that we file with, or submit to, the Securities and Exchange Commission and in other public communications made by us;
	3.	compliance with applicable governmental laws, rules and regulations;
	4.	the prompt internal reporting of violations of the Code of Business Conduct and Ethics to an appropriate person or persons identified in the Code of Business Conduct and Ethics; and
	5.	accountability for adherence to the Code of Business Conduct and Ethics.

          Our Code of Business Conduct and Ethics requires, among other things, that all of our company's personnel shall be accorded full access to our President with respect to any matter which may arise relating to the Code of Business Conduct and Ethics. Further, all of our company's personnel are to be accorded full access to our company's board of directors if any such matter involves an alleged breach of the Code of Business Conduct and Ethics by our President.

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          In addition, our Code of Business Conduct and Ethics emphasizes that all employees, and particularly managers and/or supervisors, have a responsibility for maintaining financial integrity within our company, consistent with generally accepted accounting principles, and federal, provincial and state securities laws. Any employee who becomes aware of any incidents involving financial or accounting manipulation or other irregularities, whether by witnessing the incident or being told of it, must report it to his or her immediate supervisor or to our company's President. If the incident involves an alleged breach of the Code of Business Conduct and Ethics by the President, the incident must be reported to any member of our board of directors. Any failure to report such inappropriate or irregular conduct of others is to be treated as a severe disciplinary matter. It is against our company policy to retaliate against any individual who reports in good faith the violation or potential violation of our company's Code of Business Conduct and Ethics by another.

          We will provide a copy of the Code of Business Conduct and Ethics to any person without charge, upon request. Requests can be sent to: West Canyon Energy Corp., 20333 State Highway 249, Suite 200-11, Houston, TX 77070-26133.

Board and Committee Meetings

          Our board of directors held no formal meetings during the year ended June 30, 2011. All proceedings of the board of directors were conducted by resolutions consented to in writing by all the directors and filed with the minutes of the proceedings of the directors. Such resolutions consented to in writing by the directors entitled to vote on that resolution at a meeting of the directors are, according to the Nevada General Corporate Law and our Bylaws, as valid and effective as if they had been passed at a meeting of the directors duly called and held.

          Our company currently does not have standing nominating, compensation or audit committees or committees performing similar functions nor does our company have a written nominating, compensation or audit committee charter. Our board of directors does not believe that it is necessary to have such committees because it believes that the functions of such committees can be adequately performed by our directors.

Nomination Process

          As of June 30, 2011, we did not effect any material changes to the procedures by which our shareholders may recommend nominees to our board of directors. Our board of directors does not have a policy with regards to the consideration of any director candidates recommended by our shareholders. Our board of directors has determined that it is in the best position to evaluate our company’s requirements as well as the qualifications of each candidate when the board considers a nominee for a position on our board of directors. If shareholders wish to recommend candidates directly to our board, they may do so by sending communications to the President of our company at the address on the cover of this annual report.

Audit Committee

          Currently our audit committee consists of our entire board of directors.

          During fiscal 2011 aside from quarterly review teleconferences, there were no meetings held by this committee. The business of the audit committee was conducted though these teleconferences and by resolutions consented to in writing by all the members and filed with the minutes of the proceedings of the audit committee.

Audit Committee Financial Expert

          Our board of directors has determined that it does not have a member of its audit committee that qualifies as an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K.

Item 11.    Executive Compensation

          The particulars of the compensation paid to the following persons:

	(a)	our principal executive officer;
	(b)	each of our two most highly compensated executive officers who were serving as executive officers at the end of the years ended June 30, 2011 and 2010; and

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(c)

up to two additional individuals for whom disclosure would have been provided under (b) but for the fact that the individual was not serving as our executive officer at the end of the years ended June 30, 2011 and 2010,

who we will collectively refer to as the named executive officers of our Company, are set out in the following summary compensation table, except that no disclosure is provided for any named executive officer, other than our principal executive officers, whose total compensation did not exceed $100,000 for the respective fiscal year:

(1)	Mr. Reeves was appointed as our President, Chief Executive Officer, Chairman and Director on July 2, 2008 and was appointed Chief Financial Officer and Treasurer on November 30, 2009.
(2)	Mr. Barrios became our Chief Financial Officer and Treasurer on March 28, 2007 and resigned on November 30, 2009

2011 Grants of Plan-Based Awards

          The Company made no plan-based equity and non-equity awards grants to named executives in 2011.

Outstanding Equity Awards at Fiscal Year End

          The Company had no unexercised options, stock that had not vested or equity incentive plan awards for any of our named executive officers as of June 30, 2011.

Option Exercises

          During our Fiscal year ended June 30, 2011 there were no options exercised by our named officers.

Compensation of Directors

          Other than the list below, we do not have any agreements for compensating our directors for their services in their capacity as directors, although such directors are expected in the future to receive stock options to purchase shares of our common stock as awarded by our board of directors.

          On July 2, 2008, the Company entered into a consulting agreement with Summit Consulting Limited (“Summit Consulting”) to retain the services of Mr. Shane Reeves as President and Director of the Company. Pursuant to the terms of the agreement, the Company agreed to pay monthly management fees of $8,000 as compensation for the services to be rendered. In addition, the agreement provided for the issuance of 100,000 shares of common stock, upon entering into the agreement and upon each annual renewal of the agreement. On July 22, 2008, the Company approved the issuance of 100,000 shares of common stock, to Mr. Reeves pursuant to the terms of the agreement. On January 29, 2009, the Company entered into an amending agreement with Summit Consulting to extend the term of the consulting agreement from July 2, 2009, to December 31, 2009, and provided for the issuance of an additional 100,000 shares of restricted stock. On January 1, 2010, the Company entered into an amending agreement with Summit Consulting (“Second Amendment”). The Second Amendment provides for a monthly management fee of $10,000 and the issuance of 500,000 shares of common stock upon entering into the agreement and 500,000 shares of common stock on each annual renewal of the agreement. The Second Amendment expires on January 1, 2012.

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Pension, Retirement or Similar Benefit Plans

          There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers. We have no material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of the board of directors or a committee thereof.

Indebtedness of Directors, Senior Officers, Executive Officers and Other Management

          None of our directors or executive officers or any associate or affiliate of our Company during the last two fiscal years is or has been indebted to our Company by way of guarantee, support agreement, letter of credit or other similar agreement or understanding currently outstanding.

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

          The following table sets forth, as of October 12, 2011, certain information with respect to the beneficial ownership of our common shares by each shareholder known by us to be the beneficial owner of more than 5% of our common shares, as well as by each of our current directors and executive officers as a group. Each person has sole voting and investment power with respect to the shares of common stock, except as otherwise indicated. Beneficial ownership consists of a direct interest in the shares of common stock, except as otherwise indicated.

(1)

Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person’s actual ownership or voting power with respect to the number of shares of common stock actually outstanding on October 12, 2011. As of October 12, 2011, there were 21,706,667 shares of our Company’s common stock issued and outstanding

           Changes in Control

          We are unaware of any contract or other arrangement the operation of which may at a subsequent date result in a change in control of our Company.

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

          Except as disclosed herein, no director, executive officer, shareholder holding at least 5% of shares of our common stock, or any family member thereof, had any material interest, direct or indirect, in any transaction, or proposed transaction since the year ended June 30, 2011, in which the amount involved in the transaction exceeded or exceeds the lesser of $120,000 or one percent of the average of our total assets at the year end for the last three completed fiscal years.

           Director Independence

          We currently act with one (1) director, Shane Reeves. We have determined that our directors is not an “independent director” as defined in NASDAQ Marketplace Rule 4200(a)(15).

          Currently our audit committee consists of our entire board of directors. We currently do not have nominating, compensation committees or committees performing similar functions. There has not been any defined policy or procedure requirements for shareholders to submit recommendations or nomination for directors.

          Our board of directors has determined that it does not have a member of its audit committee who qualifies as an “audit committee financial expert” as defined in as defined in Item 407(d)(5)(ii) of Regulation S-K.

          From inception to present date, we believe that the members of our audit committee and the board of directors have been and are collectively capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting.

Item 14.    Principal Accounting Fees and Services

          The aggregate fees billed for the most recently completed fiscal year ended June 30, 2011 and for the fiscal year ended June 30, 2010, for professional services rendered by the principal accountant for the audit of our annual financial statements and review of the financial statements included in our quarterly reports on Form 10-Q and services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements, including tax return preparation and tax compliance for these fiscal periods were as follows:

          Effective May 6, 2003, the Securities and Exchange Commission adopted rules that require that before our independent auditors are engaged by us to render any auditing or permitted non-audit related service, the engagement be:

• approved by our audit committee (which consists of our entire board of directors); or
• entered into pursuant to pre-approval policies and procedures established by the board of directors, provided the policies and procedures are detailed as to the particular service, the board of directors is informed of each service, and such policies and procedures do not include delegation of the board of directors' responsibilities to management.

          Our board of directors pre-approves all services provided by our independent auditors. All of the above services and fees were reviewed and approved by the board of directors either before or after the respective services were rendered.

          Our board of directors has considered the nature and amount of fees billed by our independent auditors and believes that the provision of services for activities unrelated to the audit is compatible with maintaining our independent auditors’ independence.

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PART IV

Item 15.    Exhibits, Financial Statement Schedules

(a)	Financial Statements
	(1)	Financial statements for our Company are listed in the index under Item 8 of this document
	(2)	All financial statement schedules are omitted because they are not applicable, not material or the required information is shown in the financial statements or notes thereto.
(b)	Exhibits

Number	Description
(3)	Articles of Incorporation and Bylaws
3.1	Articles of Incorporation (incorporated by reference to our registration statement on form SB-2 filed on January 6, 2006)
3.2	By-laws (incorporated by reference to our registration statement on form SB-2 filed on January 6, 2006)
3.3	Articles of Merger (incorporated by reference to our current report on Form 8-k filed on May 1, 2007)
3.4	Certificate of Change (incorporated by reference to our current report on Form 8-k filed on May 1, 2007)
3.5	Articles of Merger filed with the Nevada Secretary of State on March 27, 2008, effective April 11, 2008 (incorporated by reference to our current report on Form 8-k filed on April 11, 2008)
(10)	Material Contracts
10.1	Share Exchange Agreement among all shareholders of PetroSouth Energy Corp. BVI and our Company dated September 30, 2007 (incorporated by reference to our current report, on Form 8-K filed on October 3, 2007)
10.2	Commercial Agreement for the Talora Block between Petroleum Equipment International (PEI), David Craven, and dated October 24, 2006 for 20% participation stake in the Tolara Block near Bogotá, Colombia (incorporated by reference to our current report, on Form 8-K filed on October 3, 2007)
10.3	Buenavista Assignment Agreement between UTI, PetroSouth Energy Corp., BVI, Petroleum Equipment International Ltda. dated August 30, 2007 for participation stake in the Buenavista Block near Bogotá, Colombia (incorporated by reference to our current report, on Form 8-K filed on October 3, 2007)
10.4	Carbonera Exploration and Exploitation Contract (incorporated by reference to our current report, on Form 8-K filed on October 29, 2007)
10.5	Convertible Promissory Note dated January 17, 2008 (incorporated by reference to our current report, on Form 8-K filed on February 1, 2008)
10.6	Farmout Agreement “North Semitropic Prospect” dated February 1, 2008 (incorporated by reference to our current report, on Form 8-K filed on February 12, 2008)

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Number	Description
10.7	March 25, 2008 letter of intent with Slope County Oil Company (incorporated by reference to our current report, on Form 8-K filed on April 3, 2008)
10.8	Convertible Promissory Note dated March 10, 2008 (incorporated by reference to our current report, on Form 8-K filed on April 3, 2008)
10.9	Convertible Promissory Note dated February 5, 2008 and entered into on April 30, 2008 (incorporated by reference to our current report, on Form 8-K filed on May 1, 2008)
10.10	Convertible Promissory Note dated June 2, 2008 (incorporated by reference to our current report, on Form 8-K filed on June 9, 2008)
10.11	Assignment of Farmout Interest dated June 16, 2008 (incorporated by reference to our current report, on Form 8-K filed on June 26, 2008)
10.12	Consulting agreement between our company and Summit Consulting Limited dated effective the 2 nd day of July 2008 (incorporated by reference to our current report, on Form 8-K filed on July 29, 2008)
10.13	Executive Employment Agreement with Felipe Pimienta Barrios (incorporated by reference to our current report, on Form 8-K filed on January 30, 2009)
10.14	Amending Agreement with Summit Consulting Limited (incorporated by reference to our current report, on Form 8-K filed on January 30, 2009)
10.15	Agreement between Petrosouth Energy Corporation Sucursal Colombia and Delavaco Energy Colombia Inc. Sucursal Colombia (incorporated by reference to our current report, on Form 8-K filed on September 24, 2009)
10.16	Promissory Note dated September 22, 2009 (incorporated by reference to our current report, on Form 8-K filed on September 24, 2009)
10.17	Letter Agreement dated October 27, 2010, by and between West Canyon Energy Corp. and Petrodorado Energy Ltd. (incorporated by reference to our current report, on Form 8-K filed on December 1, 2010)
(14)	Code of Ethics
14.1	Code of Ethics (incorporated by reference to our annual report on Form 10-KSB filed on September 28, 2007)
(21)	Subsidiaries of the Small Business Issuer
21.1	West Canyon Energy Corp. Sucursal Columbia, a Colombian corporation
(31)	Section 302 Certifications
31.1*	CEO and CFO Certification pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934
(32)	Section 906 Certification
32.1*	CEO and CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

* Filed herewith.

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SIGNATURES

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

	WEST CANYON ENERGY CORP.
Date: October 13, 2011	/s/ Shane Reeves
	Shane Reeves
	President, Chief Executive Officer, Chief Financial Officer,
	Treasurer and Director
	(Principal Executive Officer, Principal Financial Officer and
	Principal Accounting Officer)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Shane Reeves		October 13, 2011
Shane Reeves	President, Chief Executive Officer,
	Chief Financial Officer, Treasurer and
	Director

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