Item 6. Management's Discussion and Analysis of Financial Condition and Results of Operation

Introduction

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

The following discussion and analysis covers our plan of operation for the next twelve months. It discusses our financial condition at February 29, 2008, and changes in our financial condition since February 28, 2007, the end of the prior fiscal year. It also covers our results of operation for the fiscal years ended February 29, 2008, and February 28, 2007. The following discussion and analysis should be read in conjunction with the audited financial statements and the related notes included elsewhere in this Form 10-KSB.

We were incorporated as Storagefinders.com under the laws of the State of Colorado on January 7, 2000. In March 2001, we changed our name to New Frontier Energy, Inc. and commenced operations in the oil and gas industry through the acquisition of all of the outstanding shares of Skyline Resources, Inc. ("Skyline"). Skyline was operated as our subsidiary through the close of business on February 28, 2005, at which time it was merged into the Company.

In February 2002, we were acquired by Wyoming Oil & Minerals, Inc. ("WYOG"). In mid 2003, we determined to become an independent, but publicly traded, entity. Accordingly, WYOG transferred certain oil and gas assets and we assumed certain WYOG liabilities and appointed new management. WYOG declared a dividend payable by distributing 12,775,616 shares of the Company's Common Stock to its shareholders. On March 3, 2004, the Board of Directors authorized a 1 to 4 reverse split of Common Stock to stockholders of record in order to facilitate the marketability and liquidity of the Common Stock based on the current market conditions and other relevant factors. The shares were registered with the Securities and Exchange Commission on Form SB-2 in April 2004, and became quoted on the Over-The- Counter Bulletin Board in May 2004 under the symbol "NFEI.OB."

The Company owns 82.76% of the limited partnership interests (the "Limited Partnership Interests") of Slater Dome Gathering, LLLP ("SDG"). SDG owns the 18-mile gas gathering line that transports the Company's natural gas from the Slater Dome Field to the Questar transportation line in Baggs, Wyoming. On December 26, 2007, the Company entered into a Partnership Interest Purchase Agreement with Natural Resource Group Gathering, LLC ("NRGG") to acquire NRGG's general partnership interest (the "General Partnership Interest") in SDG effective as of December 31, 2007. In connection with the purchase of the General Partnership Interest, the Company was appointed the general partner of SDG. The General Partnership Interest is equal to 25% of the Percentage Interests (as defined in SDG's Limited Partnership Agreement) in SDG.

Plan of Operation

Our plan of operation is to further develop the Slater Dome Field by drilling additional wells adjacent or near our existing wells in the southeast section of the property. We plan to test the Niobrara and Frontier formations in the Focus Ranch Federal 12-1 well. We also plan to evaluate opportunities to acquire other interests in oil and gas properties.

Prospect Acquisition Philosophy

We anticipate undertaking investigation to acquire other interests in oil and gas properties in the fiscal year ending February 28, 2009. Our objective will be to acquire properties with immediate development potential or existing producing properties. Due to our relatively small size and competitive position in the industry, we do not anticipate acquiring a large inventory of properties to hold for future development. Rather, one or a small number of properties will be targeted with immediate development potential.