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

FORM 10-Q

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

For the quarterly period ended September 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: 000-51712

PARK PLACE ENERGY CORP.
(Exact name of small business issuer as specified in its charter)

403-539-8710
Registrant’s telephone number, including area code

1541 Ocean Avenue 200, Santa Monica, CA, 90401
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the 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 past 90 days.
Yes [X]     No [   ]

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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes [X]     No [   ]

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 the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

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

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date 20,667,726 shares of common stock as of November 14, 2011.

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PARK PLACE ENERGY CORP.

Quarterly Report On Form 10-Q
For The Quarterly Period Ended
September 30, 2011

INDEX

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

The following unaudited interim financial statements of Park Place Energy Corp.(sometimes referred to as “we”, “us” or “our Company”) are included in this quarterly report on Form 10-Q:

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PARK PLACE ENERGY CORP.
(An exploration stage company)
Consolidated financial statements
September 30, 2011
(Expressed in Canadian dollars)
(unaudited)

PARK PLACE ENERGY CORP.
(An exploration stage company)
Consolidated balance sheets
(Expressed in Canadian dollars)

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

F-1

PARK PLACE ENERGY CORP.
(An exploration stage company)
Consolidated statements of operations
(Expressed in Canadian dollars)
(unaudited)

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

F-2

PARK PLACE ENERGY CORP.
(An exploration stage company)
Consolidated statements of cash flows
(Expressed in Canadian dollars)
(unaudited)

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

F-3

PARK PLACE ENERGY CORP.
(An exploration stage company)
Notes to the consolidated financial statements
Nine months ended September 30, 2011
(Expressed in Canadian dollars)
(unaudited)

On June 5, 2011, the Company entered into two farm-in agreements related to our 25% interest in an 80 acre oil and gas parcel located in western Saskatchewan. Pursuant to the terms of the agreement, the operator has agreed to undertake all costs related to drilling two test wells on the property by September 15, 2011. Once the test wells are drilled, the operator will be provided with a 60% working interest in the properties.

The Company presently holds a 98,000 square kilometer exploration claim in the Dobroudja Basin located in northeast Bulgaria (“the Vranino Block”). The Company intends to conduct exploration activities over a 5 year period including seismic processing and the drilling of, at minimum, six test wells for a minimum cost of approximately US$5,000,000. An appeal against the Bulgarian Council of Ministers decision to award the Vranino Block to the Company was filed with the Supreme Administrative Court of Bulgaria and is presently pending. The Company awaits the result of this appeal process prior commencing the exploration program.

F-4

PARK PLACE ENERGY CORP.
(An exploration stage company)
Notes to the consolidated financial statements
Nine months ended September 30, 2011
(Expressed in Canadian dollars)
(unaudited)

F-5

PARK PLACE ENERGY CORP.
(An exploration stage company)
Notes to the consolidated financial statements
Nine months ended September 30, 2011
(Expressed in Canadian dollars)
(unaudited)

As of September 30, 2011 and December 31, 2010, the Company had no unrecognized compensation expense relating to unvested options.

The fair value for stock options granted have been estimated using the Black-Scholes option pricing model assuming no expected dividends and the following weighted average assumptions:

As at September 30, 2011, the following share purchase warrants were outstanding:

F-6

PARK PLACE ENERGY CORP.
(An exploration stage company)
Notes to the consolidated financial statements
Nine months ended September 30, 2011
(Expressed in Canadian dollars)
(unaudited)

F-7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This quarterly report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology including "could", "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" and the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this report.

Overview of our Business

We are an oil and natural gas company focusing on the exploration and development of gas primarily in Europe. From 2006 to 2010, we engaged in several exploration projects in the US, Canada and offshore. In 2009 and 2010, we disposed of all but one of our North American projects to refocus our exploration efforts. Historically, our operating strategy with respect to the projects that we have participated in was to utilize local drilling services companies to conduct services on our exploration properties. These arrangements require us to pay our proportionate share of costs for drilling or alternately to farm in an operator for a percentage interest in any oil or gas discoveries. In each of our projects we provide technical input and expertise on how best to develop the properties. As a way to keep our overhead down, we engage the services of consultants who have technical expertise depending on the nature of the exploration claim. Several of these projects have produced oil or gas while others were ultimately deemed unproductive.

In 2010, we revamped our business strategy to focus on obtaining European exploration properties for both conventional and unconventional gas (shale, tight gas and coal bed methane). We retained consultants with specialized technical expertise in unconventional gas exploration to assist us in locating, assessing and planning suitable exploration and development of potential opportunities. In October of 2010, we were awarded an exploration permit for the “Vranino 1-11 block” located in Dobroudja Basin by the Bulgarian Counsel of Ministers, with terms and conditions of the permit as follows:

• Five year term exploration program;

• Perforate and re-test the Vranino #1 well previously drilled;

• Initiate a comprehensive 2-D and 3-D seismic program over the license area,

• Drill and complete a 5 additional test wells in the eastern up-thrown block within the license area

Our minimum work commitment as required by the permit broken down by year is as follows:

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To formulate our work program, we consulted with the previous operator, local geologists and others. The costs of the exploration plan may vary depending on a variety of factors, including, inter alia, the market price and availability of technical services in the local area, taxes, and transportation costs relating to delivering equipment to the exploration area.

Subsequent to the award of this claim, we have engaged in an assessment of drilling services companies in the local area suitable to engage to provide drilling services in the region. We have located several suitable service providers for drilling and other services which we intend to engage at the appropriate time. Local companies in Bulgaria will be used to provide services to the best extent possible. However, as the Bulgarian energy sector is relatively undeveloped, the availability of local drilling services specialized to unconventional gas exploration is limited. Park Place has determined that such expertise, services or equipment is available in Romania, Turkey and other surrounding regions. We have located suitable drilling services companies in Romania and Turkey that we may hire to perform the more difficult drilling involving unconventional gas hydrocarbon structures.

Our exploration of the Vranino 1-11 block has not yet commenced due to the fact the a competing bidder has disputed the award of the claim to Park Place. The appeal is set to be heard in March 2012. The Ministry of Economy, Energy and Tourism takes the position that the permit was validly issued to Park Place.

Financing

Effective September 30, 2011, we issued an aggregate of 9,975,000 shares of our common stock pursuant to private placement subscription agreements with nine (9) investors at a purchase price of $0.075 per share for aggregate proceeds of $748,125. We issued the shares to seven (7) non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933), relying on Regulation S and/or Section 4(2) of the Securities Act of 1933 and to two (2) U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933) relying upon Rule 506 of Regulation D of the Securities Act of 1933.

Effective September 30, 2011, we issued an aggregate of 3,288,600 common shares at a purchase price of CDN$0.05 per share in accordance with the terms of the Convertible Promissory Note dated April 6, 2011 (as reported in our 10-Q dated May 16, 2011), and as amended August 19, 2011. The full amount owing under the note was converted into shares of our common stock for aggregate proceeds of US$157,500. We issued the shares to non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933), relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.

Plan of Operations

Overview

Our Plan of Operations is to focus exploring and developing the Vranino 1-11 exploration claim in Bulgaria and acquiring interests in other exploration claims in Bulgaria or similar regions.

Management is in the process of expanding its Board of Directors and management team to accommodate the planned increase in operations and exploration activity.

Park Place will continue to pursue a positive conclusion to the current litigation relating to the Vranino 1-11 claim through any means available. We have obtained legal representation in Bulgaria to represent us in this matter. Our plan of Operations is highly contingent upon the results and timing of the litigation surrounding the Vranino permit.

Park Place intends to pay for the initial year of the Vranino exploration program utilizing funds received from the August Offering. Park Place plans intends to raise additional capital within the next twelve months to pay for the balance of the work program relating to Vranino 1-11 in Bulgaria. The work program is expected to conclude no later than in 2016. Subject to the positive conclusion of the appeal before the Supreme Administrative Court of Bulgaria, management will undertake subsequent financings as required.

Utilizing funding from the August Offering Park Place intents to open a permanent office in Bulgaria in which to base its exploration activities. Park Place plans to hire a local geologist, a regional manager, and other staff on a full time basis. As the exploration program progresses, Park Place plans to hire additional employees. Park Place estimates it will cost at minimum $250,000 over 12 months to establish the office in Bulgaria.

Management intends to conduct additional 2-D and 3-D seismic processing, the reprocessing of historical seismic data, and the purchase of additional seismic data held by third parties. Park Place plans to perforate and test the existing Vranino #1 well over the next twelve months. Park Place estimates that the first year seismic program as described herein will cost $375,000.

We anticipate spending approximately $250,000 over the next 12 months in office and general expenses, as well as approximately $200,000 in professional and consulting fees.

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Park Place anticipates disposing of its interest in the Edam property for cash consideration so that it may use the proceeds towards general corporate purposes in furtherance of its Vranino 1-11 claim in Bulgaria. Until the production results and production quantities are known, it is difficult to assess the potential selling price for its interest in the Edam claim.

While the Company awaits the outcome of legal in Bulgaria relating to the Vranino 1-11 claim, Park Place is actively seeking further exploration opportunities either through direct acquisition or joint venture agreements in the same region.

Working Capital

Based on our current plan of operations as set forth above, we estimate that we will require approximately $1,075,000 to pursue our plan of operations over the next 12 months. As at September 30, 2011, we had cash of $354,695. On October 4, 2011 we received payment for subscription receivables of $309,780.

We anticipate that additional funding will be in the form of equity financing from the sale of our common stock will be required to complete our plan of operations. If we do not continue to obtain additional financing going forward, we will reevaluate our plans.

Results of Operations

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended September 30, 2011 which are included herein.

Revenue

We did not have any oil and gas revenue for the nine months ended September 30, 2011, nor for the nine months ended September 30, 2010.

Since inception, we have incurred oil and gas revenues of $1,619,047 relating to our successful exploration efforts and depletion costs of $1,235,574. We have written off expenditures of $4,209,298 relating to exploration efforts that did not yield productive results.

Expenses

Our total expenses for the nine months ending September 30, 2011 total $259,691 compared to $628,116 for the same period in 2010. The significant reduction in expenses relates to the fact that we have been delayed in implementing our exploration program in Bulgaria which results from the appeal taken of the award of the claim by a competitive bidder. Our expenses for the three months ending September 30, 2011 were $156,623 compared with $207,394 for the same period in 2010.

Our primary expense categories are described below:

Office and General Expenses

Our office and general expenses decreased to $14,849 for the three months ended September 30, 2011 from $22,021 for the three months ended September 30, 2010.

Professional Fees

Our professional fees decreased to $23,489 for the three months ended September 30, 2011 from $5,396 for the three months ended September 30, 2010.

Management and Consulting

Our management and consulting fees increased to $98,189 for the three months ended September 30, 2011 from $9,503 for the three months ended September 30, 2010.

Investor Relations Expenses

Our investor relations expense for the three months ended September 30, 2011 increased to $865 compared to $1,474 for the three months ended September 30, 2010.

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Stock-Based Compensation Expense

Our stock-based compensation expense decreased to $nil for the three months ended September 30, 2011 from $168,072 for the three months ended September 30, 2010.

Loss

Our net loss before other items and taxes for the three months ended September 30, 2011 was $252,611, compared to $187,194 for the three months ended September 30, 2010. Our net loss before other items and taxes for the nine months ended September 30, 2011 was $345,073, compared to $565,846 for the nine months ended September 30, 2010.

Liquidity and Capital Resources

Overview

From May 4, 2006 (date of inception) to September 30, 2011, we raised net proceeds of $8,785,753 in cash from the issuance of common stock and share subscriptions received, $770,550 from loans payable for a total of $9,556,303 of cash provided by financing activities for the period.

We used net cash of $286,131 in operating activities for the nine months ended September 30, 2011 compared to $87,629 for the same period in 2010. We used net cash of $4,955,142 in operating activities for the period from May 4, 2006 (date of inception) to September 30, 2011.

The following table summarizes our liquidity position as of September 30, 2011 (excluding Capital received after quarter-end):

We anticipate that we will require approximately $1,075,000 to pursue our plan of operations over the next 12 months. As at September 30, 2011, we had cash of $ 354,695 and working capital of $363,469. We require additional financing to pursue our plan of operations over the next 12 months, with amounts primarily depending upon the results of any cash flows from Edam oil revenues, and the actual costs of our first year exploration program in Bulgaria on Vranino 1-11. We anticipate raising additional funds over the next twelve months to pay for our exploration commitments in Bulgaria.

Below is a summary of our anticipated expenditures over the next 12 months:

If we lose the Vranino 1-11 claim in Bulgaria then our anticipated expenditures will be significantly reduced.

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Cash Flow from Investing Activities

Net cash from investing activities in the nine months ended September 30, 2011 was $nil compared to $43,629 used in investing activities in the nine months ended September 30, 2010.

Cash Provided By Financing Activities

For the nine months ended September 30, 2011, received cash of $640,294 compared to $144,845 for the nine months ended September 30, 2010.

Off-Balance Sheet Arrangements

There are 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, which individually or in the aggregate is material to our investors.

Item 3.                Quantitative and Qualitative Disclosures About Market Risk

Not applicable because we are a smaller reporting company.

Item 4.                Controls and Procedures

Disclosure Controls and Procedures

David Johnson, our principal executive and our principal financial officer, is responsible for establishing and maintaining disclosure controls and procedures for our company.

Management has evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2011 (under the supervision and with the participation of our principal executive officer and principal financial officer), pursuant to Rule 13a-15(b) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our principal executive officer and principal financial officer concluded that our company’s disclosure controls and procedures were effective as of September 30, 2011.

No Changes in Internal Control over Financial Reporting

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

PART II – OTHER INFORMATION

Item 1.                Legal Proceedings

We currently are party to legal proceedings in Bulgaria where a competitive bidder, Overgas, seeks to overturn the Bulgarian Counsel of Minister’s award of the Vranino 1-11 exploration claim to us. The Ministry of Energy, Environment and Tourism continues to support the granting of the award to Park Place. The next court hearing is scheduled for March 2012.

Item 1A.             Risk Factors

Not applicable because we are a smaller reporting company.

Item 2.                Unregistered Sales of Equity Securities and Use of Proceeds

On August 11, 2011 the Company issued 266,667 common shares at a value of US$0.075 per share for cash payment of US$20,000. We relied on Regulation S as an exemption from the registration requirements of the Securities Act for the issuance of the shares.

On August 12, 2011 the Company issued 206,250 common shares at a value of $0.08 per share for cash payment of US$16,500. We relied on Regulation S as an exemption from the registration requirements of the Securities Act for the issuance of the shares.

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On September 28, 2011, the Company issued of 648,300 common shares to settle debt with a fair value of US$64,830. We relied on Regulation S as an exemption from the registration requirements of the Securities Act for the issuance of the shares.

On September 29, 2011 the Company issued 184,000 common shares to settle debt with a fair value of US$18,400. We relied on Regulation S as an exemption from the registration requirements of the Securities Act for the issuance of the shares.

On September 29, 2011 the Company issued 9,975,000 common shares at a value of US$0.075 per share for cash payment of $748,025. We relied on Regulation S as an exemption from the registration requirements of the Securities Act for the issuance of the shares.

On September 30, 2011, we issued an aggregate of 3,288,600 common shares at a purchase price of CND$0.05 per share in accordance with the terms of the Convertible Promissory Note dated April 6, 2011 (as reported in our 10-Q dated May 16, 2011), and as amended August 19, 2011. The full amount owing under the note of US$150,000 plus accrued interest of US$7,500) was converted into shares of our common stock. We issued the shares to non-U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933), relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.

Item 3.                Defaults Upon Senior Securities

None.

Item 4.                (Removed and Reserved)

Not applicable.

Item 5.                Other Information

None

Item 6.               Exhibits

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PARK PLACE ENERGY CORP.

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