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

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

1. BASIS OF PRESENTATION:

The condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been omitted. However, in the opinion of management, all adjustments (which include only normal recurring accruals) necessary to present fairly the financial position and results of operations for the periods presented have been made. The results for interim periods are not necessarily indicative of trends or of results to be expected for the full year. These financial statements should be read in conjunction with the financial statements of the Company for the year ended November 30, 20102011 (including the notes thereto) set forth in Form 10-K.

2. BUSINESS ACTIVITIES:

Frontier Oilfield Services, Inc. (formerly TBX Resources, Inc.), a Texas corporation (“Frontier” or the “Company”), was incorporated inorganized on March 24, 1995. The Company’s principal historical business activity has been acquiring and developing oil and gas properties. However, during fiscal year 2004, the state of Texas in March 1995.Company began providing contract services to an affiliate, Gulftex Operating, Inc. The services continued to August 31, 2006 when the agreement was terminated by mutual agreement. In the past, we have primarily focused our business efforts on acquiring oil and gas productionthe Company’s philosophy was to locate properties and leases. We did this because we believed thatwith the major oil companies were leavingopportunity of reworking existing wells and/or drilling development wells to make a profit. In addition, the US domestic oil and gas market due to domestic oil and gas exploration properties being significantly depleted. However this trendCompany has changed and major oil companies are again acquiring domestic properties primarily in fields where natural gas is prevalent. This has increasedsponsored and/or managed joint venture development partnerships for the competition and prices for oil properties and management believes, due to our current financial condition, that we will not be able to compete for and purchasepurpose of developing oil and gas properties as effectively as we have in the past. In response to this trend managementfor profit. Management has recently initiated changes to the Company’s business plan. Currently, ourthe primary focus is to secure additional capital through business alliances with third parties or other debt/equity financing arrangements to acquire companies andand/or assets which will allow the Company to further operate in the oil field services industry with an emphasis on acquiring companies involved in salt water and drilling fluid disposal. Secondarily weFrontier will continue to seek out and acquire producing oil and gas leases and wells. See Note 14.

The accompanying condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. However, the Company has negative stockholders’ equity and minimal working capital. In addition, the Company sold its primary source of revenue (East Texas properties) effective April 1, 2008 and forfeited itsa minor overriding interest in the Johnson #12 producing gas wells in Parker County, Texas and Johnson #2 Joint Ventures effective September 7 2010 (see Note 8). These factors raise substantial doubt about the ability of the Company to continue as a going concern. See Note 14.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Revenue Recognition

Oil and gas operations, the revenue is recorded when production is sold. The Company accrues revenue for oil and gas production sold but not paid.

Concentration of Credit Risk

During the ninethree months ended August 31, 2011February 29, 2012 the Company had a net increase inreceived advances from GulftexFIG totaling $67,532. The Company had a net decrease in$360,500. There were no advances from Gulftex totaling $80,609 duringFIG for the ninethree months ended August 31,February 28, 2011. The balance due Gulftex as of August 31, 2011 is $67,532. The cash portion of this balance is $45,056. See Note 14.

Oil and Gas Revenue Receivable

Receivables consist of accrued oil and gas receivables due from either purchasers of oil and gas or operators in oil and natural gas wells for which the Company owns an interest. Oil and natural gas sales are generally unsecured and such amounts are generally due within 30 days after the month of sale.

Property and equipment are stated at the Company’s cost and are depreciated on a straight-line basis over fivethree to sevenfive years. Maintenance and repair costs are expensed when incurred, while major improvements are capitalized.

Property and Gas Properties

Equity Instruments Issued for Goods and Services

The Company follows the successful efforts method of accounting for oil and gas exploration and development expenditures. Under this method, costs of successful exploratory wells and all development wells are capitalized. Costs to drill exploratory wells that do not find proved reserves are expensed.

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Income tax expense is the tax payable for the year plus or minus the change during the period in deferred tax assets and liabilities.

Earnings Per Share (EPS)

Basic earnings per common share is calculated by dividing net income or loss by the weighted average number of shares outstanding during the year. Diluted earnings per common share is calculated by adjusting outstanding shares, assuming conversion of all potentially dilutive stock options. The computation of diluted EPS does not assume conversion, exercise, or contingent issuance of shares that would have an antidilutive effect on earnings per common share. Antidilution results from an increase in earnings per share or reduction in loss per share from the inclusion of potentially dilutive shares in EPS calculations.

Use of Estimates

The preparation of financial statements in conformity with 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. Significant estimates include: estimates of proved reserves as key components of the Company’s depletion rate for oil properties; accruals of operating costs; estimates of production revenues; and calculating asset retirement obligations. Because there are numerous uncertainties inherent in the estimation process, actual results could differ materially from these estimates.

Fair Value Measurements

The Company adopted fair value accounting for certain financial assets and liabilities that have been evaluated at least annually. The standard defines fair value as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. A liability’s fair value is defined as the amount that would be paid to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Management has determined that it will not, at this time, adopt fair value accounting for nonfinancial assets or liabilities currently recorded in the financial statements, which includes property and equipment, investments carried at cost, deposits and other assets. Impairment analyses will be made of all assets using fair value measurements.

Assets and liabilities measured at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels, defined by generally accepted accounting principles and directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities, are as follows:

Cash, receivable and payable amounts, accrued expenses and other current liabilities are carried at book value amounts which approximate fair value due to the short-term maturity of these instruments.

4. RECENT ACCOUNTING PRONOUNCEMENTS:

During the ninethree months ended August 31, 2011February 29, 2012 and the year ended November 30, 2010,2011, there were several new accounting pronouncements issued by the FASB. Each of these pronouncements, as applicable, has been or will be adopted by the Company. Management does not believe the adoption of any of these accounting pronouncements has had or will have a material impact on the Company’s financial position or operating results. The Company will monitor these emerging issues to assess any potential future impact on its financial statements.

6. RELATED PARTY TRANSACTIONS:

The Company conducts substantial transactions with Gulftex.Frontier Income and Growth, LLC (FIG) and Gulftex Oil & Gas, LLC (Gulftex). These related party transactions have a significant impact on the financial condition and operations of the Company. If these transactions were conducted with third parties, the financial condition and operations of the Company could be materially different from reported results.

7.STOCK BASED COMPENSATION:

F-8

A summary of the agreement provides that Mr. Burroughs hasstatus of the contractual right to require TBX to issue, upon his request, up to 250,000 common share options subject to certain conditions. The conditions are that the options will not be issued unless Mr. Burroughs makes a demand for their issuanceCompany’s option grants as of February 29, 2012 and the numberchanges during the period then ended is presented below:

F-9

The weighted average fair value at date of shares so demanded have vested (the agreement provides that 50,000 potentialgrant for options vest atduring three month period ended February 29, 2012 was estimated using the beginning of each employment year forBlack-Scholes option valuation model with the five year termfollowing:

A summary of the agreementstatus of the Company’s vested and are cumulative.) nonvested option grants at February 29, 2012 and the weighted average grant date fair value is presented below:

The amendment also changed howstatus of the options are to be priced. The options are to be pricedCompany’s nonvested stock grant at a maximum exercise priceFebruary 29, 2012 and the grant date value is presented below:

As of one-halfFebruary 29, 2012, the bid price for TBX common stock as of August 4, 2005 or $0.70 per share (one-half $1.40 the closing bid price on August 4, 2005.) In the event the closing bid price of TBX’s common stock is below $0.70 on the date of a call by Mr. Burroughs, the exercise price would be reducedCompany’s unrecognized compensation expense related to the lower actual bid price. Mr. Burroughs’ Employment Agreementnonrested stock grant was further amended in April 2007. In exchange for TBX dropping the three year service requirement, Mr. Burroughs agreed to forgo his eligibility to call for stock options for fiscal years 2005 and 2006. The Employment Agreement was again amended on December 1, 2010 wherein options were continued for an additional five years at an option price no greater than 50% of the closing price on December 1, 2010 or $0.015 per share (one-

The Company was notified in the first quarter of this fiscal year, the Company was notified2011 that it had forfeited its interest in the Johnson #1-H and Johnson #2-H Joint Ventures effective September 7, 2010 for not paying a Special Assessment of $43,008 for estimated workover expenses. If the Company had known of the Special Assessment cash call it would have declined to participate because there was no assurance that the rework would be successful in increasing production to recoup the Special Assessment amount and extend the life of the wells. In addition, the Company no longer is obligated to pay the plug and abandonment costs for these wells.

As a result of the forfeiture the Company wrote-off the book value of the wells, asset retirement obligations, receivables and payables which resulted in a loss of $16,089.

10. 9.COMMITMENTS AND CONTINGENCIES:

Rent expense for first quarter of 2012 and 2011 was $9,772 and $16,990, respectively.

F-10

As of February 29, 2012 LoneStar tendered the nine months ended August 31,sum of $3,150,000 to purchase 1,575,000 shares of the Stock. As of the date of this report, the shares have not been issued.

On September 1, 2011 and August 31, 2010 is $31,809 and $51,826, respectively.

The Company computes income taxes using the asset and liability.liability approach. The Company currently has no issue that creates timing differences that would mandate deferred tax expense. Due to the uncertainty as to the utilization of net operating loss carryforwards, an evaluation allowance has been made to the extent of any tax benefit that net operating losses may generate. No provision for income taxes has been recorded for the three and nine months ended August 31,February 29, 2012 and February 28, 2011 and 2010 due to either the Company’s net operating losses or the available tax loss carryforward.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY STATEMENT

Statements in this report which are not purely historical facts, including statements regarding the Company’s anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Act of 1934, as amended. All forward-looking statements in this report are based upon information available to us on the date of the report. Any forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from events or results described in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

DESCRIPTION OF PROPERTIES

GENERAL: We currently have royalty interests in Denton and Wise Counties, Texas.

PROPERTIES

The following is a breakdown of our properties by field as of August 31, 2011:

PRODUCTIVE WELLS AND ACREAGE:

The following is a breakdown of our productive wells and acreage as of August 31,February 28, 2011:

We currently own a 0.4% overriding interest in the Grasslands L. P. We did not acquire any additional partnership interests in the current quarter.

CRITICAL ACCOUNTING POLICIES

A summary of significant accounting policies is included in Note 2 to the audited financial statements included on Form 10-K for the year ended November 30, 20102011 as filed with the United States Securities and Exchange Commission. Management believes that the application of these policies on a consistent basis enables the Company to provide useful and reliable financial information about our operating results and financial condition.

The preparation of financial statements in conformity with 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. Actual results may differ from those estimates.

RESULTS OF OPERATIONS

For the third quarter ended August 31, 2011February 29, 2012 we reportedhad a net loss of $8,923$647,622 as compared to a net loss of $18,194$51,744 for the same quarter last year. For the nine months ended August 31, 2011, we reported a net loss of $80,677 as compared to net income of $5,795 for the same period last year. The components of these results are explained below.

Revenue-Total revenue increased $119, 8.0%, from $1,490 for the three months ended August 31,February 28, 2011 was $3,505, a decrease of 84.5%, as compared to $22,557$1,609 for the three months ended August 31, 2010. Oil and gas revenue for the nine months ended August 31, 2011 was $5,927, a decrease of 89.9%, as compared to $58,666 for the nine months ended August 31, 2010. February 29, 2012.

The decreaseincrease in revenue for the quarter and year-to-date is primarily attributable to an increase in production.

Expenses-The components of our expenses for the first quarter ended February 29, 2012 and February 28, 2011 are as follows:

Lease operating expenses increased $1,152 which is primarily attributable to additional charges for compression and marketing fees.

General and administrative expenses increased $459,889. The increase is attributable to higher salaries and benefits of $128,815, stock compensation expense of $168,313, legal and professional fees of $170,513 offset by a decrease in all other expenses totaling $7,752.

Depreciation for the current quarter is $87. There is no deprecation charge in the first quarter of the previous fiscal year.

Loss on the forfeiture of the Johnson #1-H and Johnson a#2-H Joint Ventures.

Other incomeexpense of $150,958 in the current fiscal year consists of the Company’s sale of all furnitureunrealized loss on its equity investment in Frontier Income and fixturesGrowth, LLC. Other expense for $2,220 with the resulting write-off of the fully depreciated values of the related assets. Other income in the previous fiscal year consists of a partial recovery of losses sustained when a former employee forged Company checks for personal use. On May 26, 2000 the former employee was sentenced to three years’ probation. As part of the sentencing the former employee is required to make restitution to the Company.

We have not recorded any income taxes for the ninethree months ended August 31,February 29, 2012and February 28, 2011 and 2010 because of our accumulatedcontinued operating losses. Also, since there is continued uncertainty as to the realization of a tax asset, we have not recorded any tax benefit.

LIQUIDITY AND CAPITAL RESOURCES

As of February 29, 2012, we had total assets of $3,158,832 of which investments in our unconsolidated affiliated company amounted to $3,135,595 or 96.2% of the total. Our revenues for the current fiscal quarter totaled $1,609 while the revenues for the same quarter last year totaled $1,490. Our accumulated losses as of February 29, 2012 totaled $12,538,341. The Company had a cash balance of $531$3,767 as of August 31, 2011.February 29, 2012. Our current ratio at August 31, 2011February 29, 2012 was .04:.02:1 and we had no long-term debt. As of August 31, 2011,February 29, 2012 our stockholders’ deficitequity was $82,919. Net$244,393. Our cash used forin operations totaled $47,410$370,604 for the nine months ended August 31, 2011 andcurrent quarter while cash provided byused in operations totaled $82,713$31,800 for the nine monthsquarter ended August 31, 2010.February 28, 2011. This represents an increase of $130,123$338,804 in cash used forin operating activities.

We have funded operations from cash generated from the sale of preferred stock, revenue from oil and gas sales, partial recovery of a previous loss and loans/advances from affiliates. We expect that the principal source of funds in the statenear future will be from the sale of Texaspreferred stock, oil and gas revenues and advances from an affiliate. Management’s plan is to seek additional equity and/or debt financing. Any such additional funding will be done on an “as needed” basis and will only be done in March 1995. those instances in which we believe such additional expenditures will increase our profitability. However, actual results may differ from management’s plan and the amount may be material.

In the past we have primarily focused our business efforts on acquiring oil and gas production properties and leases. We did this because we believed that the major oil companies were leaving the US domestic oil and gas market due to domestic oil and gas exploration properties being significantly depleted. However this trend has changed and major oil companies are again acquiring domestic properties primarily in fields where natural gas is prevalent. This has increased the competition and prices for oil properties and management believes, due to our current financial condition, that we will not be able to compete for and purchaseacquired producing oil and gas properties as effectively as we have in the past. In responsewith opportunities for future development and contracted well operations to this trend management has recently initiated changes to the Company’s business plan.contractors. Currently, our primary focus is to secure additional capital through business alliances with third parties or other debt/equity financing arrangements to acquire oil field service companies andand/or assets.

Our ability to secure additional capital through business alliances with third parties or other debt/equity financing arrangements to acquire companies and/or assets which will allow the companyCompany to further operate in the oil field services industry with an emphasis on acquiring companies involved in salt water and drilling fluid disposal. Secondarily we will continue to seek out and acquire producing oil and gas leases and wells. At this time we have no specific acquisition targets identified but we are actively engaged generally in such a search.

The oil and gas industry is subject to various trends including the event, weavailability of capital for drilling new wells, prices received for crude oil and natural gas, sources of crude oil outside our area of operations, interest rates, and the overall health of the economy. We are successful in makingnot aware of any acquisitions, it is likelyspecific trends that existing employees currently employed will remain withare unusual to our company, as compared to the acquisition(s) .

ITEM 3. QUANTITATIVE AND QUALITATIVEQUALATIVE DISCLOSURES ABOUT MARKET RISK.

Not required for smaller reporting companies.

Disclosure Controls and Procedures

Our management evaluated, with the participation of Tim Burroughs our Chief Executive Officer (CEO)/ and Chief Financial Officer (CFO), the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the quarter covered by this quarterly report on Form 10-Q. Based on this evaluation, management has concluded that, as of August 31, 2011February 29, 2012 our disclosure controls and procedures were effective to ensure that the information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported. Management is currently looking for a professional accounting person to become part of its management team in an effort to provide not only complete but timely reports to the Securities and Exchange Commission as required by its rules and forms.

5

Internal Control Over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. As a result, no corrective actions were required or undertaken.

Item 1. LEGAL PROCEEDINGS

None.

Item 2. UNREGISTERED SALES OFEQUITY SECURITIES AND USE OF PROCEEDS

None.

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 5. OTHER INFORMATION