Oakridge Energy (OAKR) 10QSB 2008 Q1 Quarterly report (small business)

U.S. Securities and Exchange Commission

Washington, D.C.  20549

FORM 10-QSB

(Mark One)

xQUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2007.

oTRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from         to        .

Commission file number 0-8532

OAKRIDGE ENERGY, INC.

(Exact name of small business issuer as specified in its charter)

Utah	87-0287176
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

4613 Jacksboro Highway

Wichita Falls, Texas 76302

(Address of principal executive offices)

(940) 322-4772

(Issuer’s telephone number)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  YES o   NO x

The number of shares outstanding of each of the issuer’s classes of common equity, as of July 11, 2007: Common Stock, $.04 par value, 4,262,917 shares

Transitional Small Business Disclosure Format (check one);
YES o   NO x

INDEX

	Page #
Part I — Financial Information
Item 1. Financial Statements
Balance Sheets at May 31, 2007 (Unaudited) and February 28, 2007 (Audited)	1
Statements of Operations (Unaudited) For the Three Months Ended May 31, 2007 and 2006	3
Statements of Cash Flows (Unaudited) For the Three Months Ended May 31, 2007 and 2006	4
Notes to Financial Statements	5
Item 2. Management’s Discussion and Analysis or Plan of Operation	7
Item 3. Controls and Procedures	14
Part II — Other Information
Item 6. Exhibits	15
Signatures	15

OAKRIDGE ENERGY, INC.

BALANCE SHEETS

	May 31,		February 28,
	2007		2007
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	2,366,981	$	2,410,827
Trade accounts receivable	181,016		275,953
Investment securities available for sale	82,106		101,138
Prepaid expenses and other	16,028		19,187
Total current assets	2,646,131		2,807,105
Oil and gas properties, at cost, using the successful efforts method of accounting, net of accumulated depletion and depreciation of $6,283,778 and $6,275,612, respectively	1,011,146		974,749
Coal and gravel properties, at cost, net of accumulated depreciaton of $7,923,719 at May 31 and February 28, 2007	260,488		260,488
Other property and equipment, net of accumulated depreciation of $398,506 and $430,819, respectively	153,444		159,503
Real estate held for sale	3,074,857		3,074,857
Deferred income taxes	160,435		139,582
Other non-current assets	852,079		852,079
Total assets	$	8,158,580	$	8,268,363

See accompanying notes to financial statements.

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OAKRIDGE ENERGY, INC.

BALANCE SHEETS (continued)

	May 31,			February 28,
	2007			2007
	(Unaudited)
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	188,552		$	278,190
Accrued expenses	58,603			49,684
Current portion of asset retirement obligations	87,218			80,155
Total current liabilities	334,373			408,029
Asset retirement obligations	427,796			425,023
Total liabilities	762,169			833,052
Stockholders’ equity:
Common stock, par value $.04 per share, 20,000,000 shares authorized, 10,157,803 shares issued	406,312			406,312
Additional paid-in capital	805,092			805,092
Retained earnings	16,562,986			16,582,854
Accumulated other comprehensive loss	(26,785		)	(7,753		)
Stockholders’ equity before treasury stock	17,747,605			17,786,505
Less treasury stock, at cost; 5,894,886 shares	10,351,194			10,351,194
Total stockholders’ equity	7,396,411			7,435,311
Total liabilities and stockholders’ equity	$	8,158,580		$	8,268,363

See accompanying notes to financial statements.

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OAKRIDGE ENERGY, INC.

STATEMENTS OF OPERATIONS
(UNAUDITED)

	Quarter Ended May 31,
	2007			2006
Oil and gas revenue	$	336,953		$	347,317
Operating expenses:
Oil and gas	269,780			237,074
Coal and gravel	8,797			12,237
Real estate development	23,135			72,019
General and administrative	122,010			151,782
Total operating expenses	423,722			473,112
Loss from operations	(86,769		)	(125,795		)
Interest and other, net	55,505			45,854
Loss before income taxes	(31,264		)	(79,941		)
Income tax (benefit)	(11,396		)	(29,554		)
Net loss	$	(19,868	)	$	(50,387	)
Basic and diluted loss per common share:
Net loss	$	(0.00	)	$	(0.01	)
Weighted average common shares outstanding	4,262,917			4,267,846

Comprehensive loss for the three months ended May 31, 2007 was $38,900.

Included in comprehensive loss is the change in available for sales

securities.  Comprehensive income loss is not applicable to the three months

ended May 31, 2006 as there were no available for sale securities.

See accompanying notes to financial statements.

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OAKRIDGE ENERGY, INC.

STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Quarter Ended May 31,
	2007			2006
Operating Activities
Net loss	$	(19,868	)	$	(50,387	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depletion and depreciation	14,241			10,134
Accretion of discount on asset retirement obligations	9,836			4,810
Deferred income taxes	(20,853		)	(34,202		)
Gain on sales of property and equipment	(18,016		)	(7,500		)
Changes in operating assets and liabilities:
Trade accounts receivable	94,937			(28,429		)
Prepaid expenses and other	3,159			3,350
Accounts payable	(89,638		)	(16,620		)
Accrued expenses	8,919			3,060
Asset retirement obligations	—			(123,610		)
Net cash used in operating activities	(17,283		)	(239,394		)
Investing Activities
Additions to oil and gas properties	(44,563		)	(26,242		)
Additions to other property and equipment	—			(14,460		)
Proceeds from sales of other property and equipment	18,000			7,500
Net cash used in investing activities	(26,563		)	(33,202		)
Financing Activity
Purchases of treasury stock	—			(25,875		)
Net decrease in cash and cash equivalents	(43,846		)	(298,471		)
Cash and cash equivalents at beginning of quarter	2,410,827			3,367,361
Cash and cash equivalents at end of quarter	$	2,366,981		$	3,068,890
Supplemental Disclosure of Cash Flow Information
Income taxes paid	$	18,590		$	16,593
Supplemental Disclosure of Non-Cash Information
Change in unrealized loss on investment securities, net of income taxes	$	12,561		$	—

See accompanying notes to financial statements.

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OAKRIDGE ENERGY, INC.

Notes to Financial Statements
(Unaudited)

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the instructions to Form 10-QSB and Regulation S-B for the three month periods ended May 31, 2007 and 2006 and reflect, in the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair presentation of the results for such periods.  The foregoing financial statements do not include all information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.  However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the financial statements for the year ended February 28, 2007 included in the Company’s Annual Report on Form 10-KSB filed with the Securities and Exchange Commission.  The interim unaudited financial statements should be read in conjunction with the annual financial statements and accompanying notes included in the Company’s Annual Report on Form 10-KSB for the year ended February 28, 2007.  Operating results for the three months ended May 31, 2007 are not necessarily indicative of the results that may be expected for the year ending February 28, 2008.  The Company’s operating segments are set forth in the annual financial statements and accompanying notes for the fiscal year ended February 28, 2007.

Information regarding operations and assets by segment is as follows:

	For the three months ended May 31,
	2007			2006
Business segment revenue:
Oil and gas	$	336,953		$	347,317
Gravel	—			—
	$	336,953		$	347,317
Business segment profit (loss):
Oil and gas	$	67,173		$	110,243
Coal and gravel	(8,797		)	(12,237		)
Real estate development	(23,135		)	(72,019		)
General corporate	(122,010		)	(151,782		)
Loss from operations	(86,769		)	(125,795		)
Interest income and other, net	55,505			45,854
Loss before income taxes	$	(31,264	)	$	(79,941	)

	As of May 31, 2007		As of February 28, 2007
Total assets:
Oil and gas	$	3,810,721	$	3,941,357
Coal and gravel	260,488		260,488
Real estate held for sale	3,074,857		3,074,857
General corporate	1,012,514		991,661
	$	8,158,580	$	8,268,363

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In 2006, the FASB issued Interpretation No. 48 (FIN 48), “Accounting for Uncertainty in Income Taxes — an Interpretation of FASB Statement No. 109 Accounting for Income Taxes.” FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with SFAS 109. FIN 48 also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company adopted FIN 48 as of March 1, 2007, as required.

The current Company policy classifies any interest recognized on an underpayment of income taxes as interest expense and classifies any statutory penalties recognized on a tax position taken as selling, general and administrative expense. There were no interest or selling, general and administrative expenses accrued or recognized related to income taxes for the three months ended May 31, 2007. The Company has not taken a tax position that would have a material effect on the financial statements or the effective tax rate for the three months ended May 31, 2007 or during the prior three years applicable under FIN 48. It is determined not to be reasonably possible for the amounts of unrecognized tax benefits to significantly increase or decrease within 12 months of the adoption of FIN 48. The Company is currently subject to a three year statute of limitations by major tax jurisdictions.

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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

The following discussion should be read in conjunction with Items 6 and 7 of the Company’s Annual Report on Form 10-KSB for the fiscal year ended February 28, 2007 and the Notes to Condensed Financial Statements contained in this report.

Results of Operations

The Company had a net loss of $19,868($0.00 per share) for the three months ended May 31, 2007(the “2007 period”) compared to net loss of $50,387 ($0.01 per share)for the three months ended May 31, 2006 (the “2006 period”).

Oil and gas revenues for the 2007 period were $336,953, compared to $347,317 for the 2006 period, representing a decrease of $10,364 (2.98%). This decrease was due primarily to a reduction in the Company’s average price received for oil sales during the 2007 period, as well as a reduction in its gas sales volumes during the 2007 period as compared to the 2006 period.  The following table compares the Company’s oil and gas revenues, sales volumes and average prices received during the 2007 period with those during the 2006 period:

	Three Months		Three Months
	Ended		Ended		Percentage
	May 31, 2007		May 31, 2006		Difference
Oil:
Revenues	$	278,946	$	291,019	–            4.2	%
Volume (Bbls.)	4,653		4,493		+            3.6	%
Average Price (per Bbl.)	$	59.95	$	64.77	–            7.4	%
Gas:
Revenues	$	44,346	$	47,172	–            6.0	%
Volume (MCF)	6,632		7,358		–            9.9	%
Average Price (per MCF)	$	6.69	$	6.41	+            4.4	%

Non-material amounts of natural gas liquids revenues and sales are excluded from the foregoing table.

The Company’s principal producing oil and gas property in Madison County, Texas is in the process of being waterflooded.  Oil

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revenues from this property decreased during the 2007 period, due to a reduction in the Company’s average oil price received from the property.  Sales volumes from this property for both oil and gas were minimally lower during the 2007 period than the 2006 period.

The Company received no gravel sales revenues in either the 2007 period or 2006 period as Four Corners Materials (“FCM”) is no longer mining gravel from the Durango Property and reclaimed its permitted area in fiscal 2005. FCM has received a partial release of its reclamation warranty provided in regard to its permit. The full release of the reclamation performance bond is subject to the Colorado Division of Reclamation, Mining, and Safety (the “CDRMS”) confirmation that environmental responses, ground cover, vegetative habitat and re-growth have stabilized. The Company has reclaimed twenty-six acres of the thirty-eight disturbed acres under its Carbon Junction Coal Mine permit which covers 192 acres. On August 25, 2006, the Company filed a Phase 1 Bond Release application with the CDRMS requesting the release of a portion of its financial warranty subject to reclamation required under its permit. The Company’s original and current bond amount for the reclamation of the coal mine is $816,526. Prior to the Phase 1 Bond Release request, the Company had submitted a Technical Revision that updated the reclamation cost estimate for the mine which would result in the reduction of the $816,526 reclamation for the site to $702,053.  Under a Phase 1 Bond Release, up to 60 percent of the bond may be released.  In the event the maximum of 60 percent of the remaining $702,053 is approved, a resulting financial warranty of approximately $281,000 would be required by the Company for the reclamation of the remaining approximately twelve acres contained within the permit and approximately $536,000 could be released by CDRMS to the Company pursuant to its lessened obligation under the permit.

The Company’s oil and gas operations expense for the 2007 period was $269,780 compared to $237,074 for the 2006 period, representing an increase of approximately $32,700 (13.80%). The Company’s lease operating expenses increased approximately $27,800(14.66%)for the 2007 period as compared to the 2006 period as Madison County leases increased $46,000(31.86%) and North Texas counties decreased $11,100(20.27%). Expenses for oil and gas operations on all leases decreased with the exception of leases operated by our Madison County operator with expense increases occurring in Madison, Panola, and Red River Counties, Texas. Although well servicing, pumping unit and rod cost declined approximately $50,000; primarily increases in expenses for small

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tools, supplies and rentals, miscellaneous repairs, tubing testing and replacement, and field supervision expenses more than offset the reduction. Depletion and depreciation expenses increased approximately $3,700 (82.85%) for the 2007 period compared to the 2006 period.  Such increase was primarily credited to the Madison County, Texas property. Production taxes decreased approximately $600 (4.0%) for the 2007 period compared to the 2006 period due to lower oil and gas revenues. All other categories either minimally increased or were similar to the 2006 period. The Company did not incur any exploration expenses, dry hole expenses or leasehold abandonment charges during either the 2007 period or the 2006 period.

The expenses of the Company’s coal and gravel operations for the 2007 period were $8,797 compared to $12,237 for the 2006 period, representing a decrease of approximately $3,400 (28.11%).  This decrease was primarily a result of the decline in legal fees incurred in connection with the investigation of the royalty owners’ mineral title and ad valorem taxes which was partially offset by an increase in testing and permitting fees.

The Company incurred real estate expense of $23,135 in the 2007 period, compared to $72,019 in the 2006 period with decreases resulting from reductions in legal, engineering, and payroll expenses in the amount of $29,890, $29,463, and $4,850, respectively, partially offset by an increase in ad valorem tax in the amount of $15,320.

General and administrative expenses for the 2007 period were $122,010 compared to $151,782 for the 2006 period, representing a decrease of approximately $29,800 (19.62%).  The decrease was primarily attributable to a decrease in Securities and Exchange Commission (the “Commission”)reporting costs, tax accounting and employee benefits.

Interest and other income increased $ 9,651(21.05%) in the 2007 period as compared to the 2006 period. An interest income increase was essentially offset by a decrease in dividend income, as a gain on the sale of asset resulted in an approximate $10,500 increase in the 2007 period.

The Company’s weighted average shares outstanding decreased approximately 0.12% for the 2007 period compared to the 2006 period. During the fiscal year 2007, the Company purchased 4,500

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shares of its stock from an unrelated party and 4,000 shares from a related party.

Financial Condition and Liquidity

For the 2007 period, operating and investing activities were net users of funds.  As a result, the Company’s cash and cash equivalents decreased by approximately $43,800 for the 2007 period as compared to the 2006 period. Investing activities, primarily additions to lease and well equipment for the Madison County property, resulted in the net decrease in cash and cash equivalents during the 2007 period. At May 31, 2007, the Company had no indebtedness, and cash and cash equivalents totaled approximately $2,367,000.

The Company expects to fund its contemplated operations and any purchases of the Company’s stock it makes during the remainder of fiscal 2008 from its cash and cash equivalents and any cash flow from its operations.

Critical Accounting Policies and Estimates

The foregoing discussion and analysis of the Company’s results of operations and financial condition and liquidity is based upon the financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses.  In response to the “Commission” Release No. 33-8040, “Cautionary Advice Regarding Disclosure About Critical Accounting Policies,” the Company has identified certain of its accounting policies as being of particular importance to the portrayal of the Company’s results of operations and financial position and which require the application of significant judgment by management. The Company analyzes its estimates, including those related to oil and gas revenues, oil and gas properties, income taxes, contingencies and litigation, and bases its estimates on historical experience and various other assumptions that the Company believes to be reasonable under the circumstances.  Actual results may differ from these estimates under different assumptions or conditions. The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of the Company’s financial statements:

SUCCESSFUL EFFORTS METHOD OF ACCOUNTING: The Company accounts for its natural gas and crude oil exploration and development activities utilizing the successful efforts method of accounting.

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Under this method, costs of productive exploratory wells, development dry holes and productive wells, costs to acquire mineral interests and three-dimensional (3-D) seismic costs are capitalized. Exploration costs, including personnel costs, certain geological and geophysical expenses including two-dimensional (2-D) seismic costs and delay rentals for oil and gas leases, are charged to expense as incurred. Exploratory drilling costs are initially capitalized, but charged to expense if and when the well is determined not to have found reserves in commercial quantities. The sale of a partial interest in a proved property is accounted for as a cost recovery and no gain or loss is recognized.

The application of the successful efforts method of accounting requires managerial judgment to determine the proper classification of wells designated as developmental or exploratory which will ultimately determine the proper accounting treatment of the costs incurred. The results from a drilling operation can take considerable time to analyze and the determination that commercial reserves have been discovered requires both judgment and industry experience. Wells may be completed that are assumed to be productive but actually deliver oil and gas in quantities insufficient to be economic, which may result in the abandonment of the wells at a later date. Wells may be drilled that target geologic structures that are both developmental and exploratory in nature and an allocation of costs is required to properly account for the results. The evaluation of oil and gas leasehold acquisition costs requires managerial judgment to estimate the fair value of these costs with reference to drilling activity in a given area. Drilling activities in an area by other companies may also effectively condemn leasehold positions.

The successful efforts method of accounting can have a significant impact on the operational results reported when the Company is entering a new exploratory area in hopes of funding an oil and gas field that will be the focus of future development drilling activity. The initial exploratory wells may be unsuccessful and will be expensed.

RESERVE ESTIMATES: The Company’s estimates of oil and gas reserves, by necessity, are projections based on geologic and engineering data, and there are uncertainties inherent in the interpretation of such data as well as the projection of future rates of production and the timing of development expenditures. Reserve engineering is a subjective process of estimating underground accumulations of oil and gas that are difficult to measure. The accuracy of any reserve estimate is a function of the quality of available data, engineering and geological interpretation and judgment. Estimates of economically recoverable oil and gas reserves and future net cash flows necessarily depend upon a number of variable factors and assumptions, such as historical production from the area compared with production from

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other producing areas, the assumed effects of regulations by governmental agencies and assumptions governing future oil and gas prices, future operating costs, severance taxes, development costs and workover gas costs, all of which may in fact vary considerably from actual results. The future drilling costs associated with reserves assigned to proved undeveloped locations may ultimately increase to an extent that these reserves may be later determined to be uneconomic. For these reasons, estimates of the economically recoverable quantities of oil and gas attributable to any particular group of properties, classifications of such reserves based on risk of recovery and estimates of the future net cash flows expected there from may vary substantially. Any significant variance in the assumptions could materially affect the estimated quantity and value of the reserves, which could affect the carrying value of the Company’s oil and gas properties and/or the rate of depletion of the oil and gas properties. Actual production, revenues and expenditures with respect to the Company’s reserves will likely vary from estimates and such variances may be material.

IMPAIRMENT OF OIL AND GAS PROPERTIES: The Company reviews its oil and gas properties for impairment at least annually and whenever events and circumstances indicate a decline in the recoverability of their carrying value.  The Company estimates the expected future cash flows of its oil and gas properties and compares such future cash flows to the carrying amount of the properties to determine if the carrying amount is recoverable. If the carrying amount exceeds the estimated undiscounted future cash flows, the Company will adjust the carrying amount of the oil and gas properties to their fair value. The factors used to determine fair value include, but are not limited to, estimates of proved reserves, future commodity pricing, future production estimates, anticipated capital expenditures and a discount rate commensurate with the risk associated with realizing the expected cash flows projected.

Given the complexities associated with oil and gas reserve estimates and the history of price volatility in the oil and gas markets, events may arise that would require the Company to record an impairment of the recorded book values associated with oil and gas properties. The Company has not recognized impairments this year or in the prior year, but there can be no assurance that impairments will not be recognized in the future.

ASSET RETIREMENT OBLIGATIONS: The Company’s recorded asset retirement obligations represent the estimated present value of the amounts expected to be incurred to plug, abandon, and remediate the producing properties at the end of their productive lives, in accordance with state laws, as well as the estimated costs associated with the reclamation of the property surrounding and including the Company’s previous coal mining operations. The Company determines the asset retirement obligations by calculating

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the present value of estimated cash flows related to the liability. The asset retirement obligations are recorded as a liability at the estimated present value as of the asset’s inception, with an offsetting increase to producing properties. Periodic accretion of the discount related to the estimated liability is recorded as an expense in the statement of operations.

The estimated liability is determined using significant assumptions, including current estimates of plugging and abandonment costs, annual inflation of these costs, the productive lives of wells, and a risk-adjusted interest rate. Changes in any of these assumptions can result in significant revisions to the estimated asset retirement obligations. Revisions to the asset retirement obligations are recorded with an offsetting change to producing properties, resulting in prospective changes to depletion and depreciation expense and accretion of the discount.  Because of the subjectivity of assumptions and the relatively long lives of most of the wells, the costs to ultimately retire the Company’s wells may vary significantly from prior estimates.

Forward-Looking Statements

Certain information included in this Quarterly Report on Form 10-QSB and other materials filed by the Company with the Commission contain forward-looking statements relating to the Company’s operations and the oil and gas industry. Such forward-looking statements are based on management’s current projections and estimates and are identified by words such as “expects,” “intends,” “plans,” “believes,” “estimates,” “anticipates” and similar words. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from what is expressed in such forward-looking statements.

Among the factors that could cause actual results to differ materially are crude oil and natural gas price fluctuations, failure to achieve expected production and the timing of receipt of revenues from existing and future exploration and development projects (including, particularly, the secondary recovery project on the Madison County, Texas property), higher than estimated oil and gas and coal reclamation costs and delays with respect to, or failure to obtain, governmental permits and approvals necessary to proceed with real estate development. In addition, these forward-looking statements may be affected by general domestic and international economic and political conditions.

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ITEM 3.  CONTROLS AND PROCEDURES.

The term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, or the Exchange Act.  This term refers to the controls and procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Commission.  Our management, including our Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-QSB.  Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly Report on Form 10-QSB.

There were no changes to our internal control over financial reporting during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 6.  EXHIBITS

(31)Rule 13a-14(a)/Rule 15d-14(a) Certification of Sandra Pautsky, Principal Executive Officer and acting Principal Financial Officer of the Company, filed herewith.

(32)Section 1350 Certification — Certification of Sandra Pautsky, Principal Executive Officer and acting Principal Financial Officer of the Company.

SIGNATURES

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

	OAKRIDGE ENERGY, INC.
	(Registrant)
Date: July 16, 2007	By	/s/ Sandra Pautsky
		Sandra Pautsky, President and Principal
		Executive Officer

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