Hydrocarb Energy Corp. (fka HECCQ)

[OilStockReport]

Running late on their filing. There seems to be quite a few oil companies running late lately.

We recently discovered an accounting mischaracterization and disclosed non-reliance in a recent Form 8-K. We are in the process of amending the three Form 10-Qs for the quarterly interim periods in fiscal 2010, and addressing similar changes in the annual financial statements to put into the Form 10-K for fiscal year ending July 31, 2010. Because of the scope and materiality of these changes, we are unable to file the 10-K within the prescribed time period without unreasonable effort or expense.

This is a substantial change IMO:

We estimate that the Net Loss will increase by approximately $1,400,000 primarily due to increases in the following:

Lease operating expense
$
200,000

Selling, general, and administrative expense
$
1,200,000



The main reason for the increase in lease operating expense is workover costs. The main reason for the increase in selling, general, and administrative expense is an increase in consulting, professional, and management fees.