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

                                  FORM 10-Q/A
                               (Amendment No. 2)

CHECK ONE

|X| Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of
1934 for the quarterly period ended June 30, 2007

                                       or

|_| Transition report under Section 13 or 15(d) of the Securities Exchange Act
of 1934

COMMISSION  FILE NUMBER 0-12500

                                  ISRAMCO, INC.
             (Exact Name of registrant as Specified in its Charter)



            Delaware                                        13-3145265
(State or other Jurisdiction of                      I.R.S. Employer Number
Incorporation or Organization)


                      11767 KATY FREEWAY, HOUSTON, TX 77079
                    (Address of Principal Executive Offices)

                                  713-621-5946
              (Registrant's Telephone Number, Including Area Code)

Indicate by check whether the registrant: (1) 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 is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.

Large accelerated filer |_|   Accelerated filer |_|   Non-accelerated filer |X|

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

The number of shares outstanding of the registrant's Common Stock as August 17,
2007 was 2,717,691.




                                EXPLANATORY NOTE

Isramco, Inc. is filing this Amendment No. 1 to our Form 10-Q for the quarterly
period June 30, 2007 to correct certain typographical errors on our Consolidated
Balance Sheet. For the convenience of the reader, this Form 10-Q/A sets forth
the original filing in its entirety as amended by and to reflect the following
changes to the Consolidate Balance Sheet as of June 30, 2007 (in thousands): (1)
Asset retirement obligations, which were reported as $4,081, are revised to
$1,708; (2) Deferred income taxes, which were reported as $84,145, are revised
to $4,081 and Total long-term liabilities, which were reported as $83,708, are
revised to $84,145. These errors resulted when numerical changes to a prior
draft were reflected one line up from the intended destination. In addition,
this Amendment No. 1 to our Form 10-Q reflects the following changes to the
Consolidated Statement of Cash Flows for the six month period ended June 30,
2007: Net cash provided by (used in) operating activities - continuing
operations and net cash provided by operating activities, which were reported as
$4,174, are revised to $(4,174); and for the six months ended June 30, 2006: (1)
Prepaid expenses and other current assets, which were reported as $(242), are
revised to $242; (2) accounts payable and accrued liabilities, which were
reported as $641, are revised to $691; (3) net cash provided by (used in)
operating activities - continued operations, which was reported as $(228), is
revised to $2,998; and (4) net cash provided by (used in) operating activities -
discontinued operations, which was reported as $3,286, is revised to $(50).
Except as revised to reflect the typographical errors specifically described
above, no other changes are made to the original Form 10-Q.




                                      INDEX


                                                                            Page
                                                                            ----
PART I - FINANCIAL INFORMATION:

Item 1.  Financial Statements

         Consolidated Balance Sheets at June 30, 2007 and December 31, 2006    1

         Consolidated Statements of Operations for the three and six months
         ended June 30, 2007 and 2006                                          2

         Consolidated Statements of Cash Flows for the six months ended
         June 30, 2007 and 2006                                                3

         Notes to Consolidated Financial Statements                            4

Item 2.  Management's discussion and analysis of Financial Condition and
         Results of Operations                                                11

Item 3.  Quantitative and Qualitative Disclosures about Market Risk           14

Item 4.  Controls and Procedures                                              14

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings                                                    16

Item 1A. Risk Factors                                                         16

Item 2.  Changes in Securities and Use of Proceeds and Issuer Purchases of
         Equity Securities                                                    16

Item 3.  Defaults upon senior securities                                      16

Item 4.  Submission of Matters to a Vote of Security Holders                  16

Item 5.  Other Information                                                    17

Item 6.  Exhibits                                                             17

         Signatures                                                           18



                                       I


                           FORWARD LOOKING STATEMENTS

         CERTAIN STATEMENTS MADE IN THIS QUARTERLY REPORT ON FORM 10-Q ARE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS CAN BE IDENTIFIED BY
TERMINOLOGY SUCH AS "MAY", "WILL", "SHOULD", "EXPECTS", "INTENDS",
"ANTICIPATES", "BELIEVES", "ESTIMATES", "PREDICTS", OR "CONTINUE" OR THE
NEGATIVE OF THESE TERMS OR OTHER COMPARABLE TERMINOLOGY AND INCLUDE, WITHOUT
LIMITATION, STATEMENTS BELOW REGARDING EXPLORATION AND DRILLING PLANS, FUTURE
GENERAL AND ADMINISTRATIVE EXPENSES, FUTURE GROWTH, FUTURE EXPLORATION, FUTURE
GEOPHYSICAL AND GEOLOGICAL DATA, GENERATION OF ADDITIONAL PROPERTIES, RESERVES,
NEW PROSPECTS AND DRILLING LOCATIONS, FUTURE CAPITAL EXPENDITURES, SUFFICIENCY
OF WORKING CAPITAL, ABILITY TO RAISE ADDITIONAL CAPITAL, PROJECTED CASH FLOWS
FROM OPERATIONS, OUTCOME OF ANY LEGAL PROCEEDINGS, DRILLING PLANS, THE NUMBER,
TIMING OR RESULTS OF ANY WELLS, INTERPRETATION AND RESULTS OF SEISMIC SURVEYS OR
SEISMIC DATA, FUTURE PRODUCTION OR RESERVES, LEASE OPTIONS OR RIGHTS,
PARTICIPATION OF OPERATING PARTNERS, CONTINUED RECEIPT OF ROYALTIES, AND ANY
OTHER STATEMENTS REGARDING FUTURE OPERATIONS, FINANCIAL RESULTS, OPPORTUNITIES,
GROWTH, BUSINESS PLANS AND STRATEGY. BECAUSE FORWARD-LOOKING STATEMENTS INVOLVE
RISKS AND UNCERTAINTIES, THERE ARE IMPORTANT FACTORS THAT COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THESE
FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT EXPECTATIONS
REFLECTED IN THE FORWARD-LOOKING STATEMENTS ARE REASONABLE, IT CANNOT GUARANTEE
FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS. MOREOVER, NEITHER THE COMPANY NOR
ANY OTHER PERSON ASSUMES RESPONSIBILITY FOR THE ACCURACY AND COMPLETENESS OF
THESE FORWARD-LOOKING STATEMENTS. THE COMPANY IS UNDER NO DUTY TO UPDATE ANY
FORWARD-LOOKING STATEMENTS AFTER THE DATE OF THIS REPORT TO CONFORM SUCH
STATEMENTS TO ACTUAL RESULTS.


                                       II





                          ISRAMCO INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                  (In thousands, except for share information)
                                   (Unaudited)


                                                               June 30,   December 31,
                                                                2007         2006
                                                              ---------   -----------
                                                                     
ASSETS

CURRENT ASSETS
Cash and cash equivalents                                     $   2,782    $     573
Restricted cash                                                   1,300       17,000
Marketable securities, at market                                  1,905        3,130
Accounts receivable                                               4,501          403
Prepaid expenses and other current assets                           152        5,057
Receivable - sale of subsidiary - Magic                              --        2,150
                                                              ---------    ---------
TOTAL CURRENT ASSETS                                             10,640       28,313
                                                              ---------    ---------

Property and equipment, net (successful efforts method
  for oil and gas properties)                                    99,594       12,537
Marketable securities, at market                                  6,900        5,759
Investment in affiliates                                         17,023       15,302
Other                                                               119          162
                                                              ---------    ---------
TOTAL ASSETS                                                  $ 134,276    $  62,073
                                                              =========    =========


LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued expenses                         $   5,188    $   5,214
Bank loans                                                        6,065          347
Derivative liability                                              4,040            -
Short term loan from related party                                    -       17,000
                                                              ---------    ---------
TOTAL CURRENT LIABILITIES                                        15,293       22,561
                                                              ---------    ---------

LONG-TERM LIABILITIES
Bank loan                                                        27,000           --
Long-term debt - related party                                   51,356           --
Asset retirement obligations                                      1,708          356
Deferred income taxes                                             4,081        4,412
                                                              ---------    ---------
TOTAL LONG-TERM LIABILITIES                                      84,145        4,768
                                                              ---------    ---------

TOTAL LIABILITIES                                                99,438       27,329
                                                              ---------    ---------

SHAREHOLDERS' EQUITY
Common stock $0.0l par value; authorized 7,500,000 shares;
  issued 2,746,958 shares; outstanding 2,717,691 shares              27           27
Additional paid-in capital                                       26,240       26,240
Retained earnings                                                 4,831        5,399
Accumulated other comprehensive income                            3,904        3,242
Treasury stock, 29,267 shares at cost                              (164)        (164)
                                                              ---------    ---------
TOTAL SHAREHOLDERS' EQUITY                                       34,838       34,744
                                                              ---------    ---------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                    $ 134,276    $  62,073
                                                              =========    =========


               See notes to the consolidated financial statements.


                                       1


                          ISRAMCO INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  (in thousands, except for share information)
                                   (Unaudited)



                                                           Three Months Ended       Six Months Ended
                                                                  June 30,               June 30,
                                                          ---------------------   ---------------------
                                                             2007        2006        2007        2006
                                                          ---------   ---------   ---------   ---------
                                                                                  
REVENUES:
    Oil and gas sales                                     $   5,487   $     542   $   7,651   $   1,206
    Operator fees from related party                             18          14          35          35
    Office services to affiliate and other                      204         194         382         380
    Equity in earnings of unconsolidated affiliates           1,506         958       2,269       1,663
                                                          ---------   ---------   ---------   ---------
Total revenues                                                7,215       1,708      10,337       3,284

OPERATING EXPENSES:
    Lease operating expense and severance tax                 2,183         179       2,981         400
    Depreciation, depletion, amortization and impairment      1,794          87       2,685         288
    Accretion expense                                             3          37          44          37
    Exploration costs                                            35          89          35          89
    Operator expense                                             --         200          --         376
    General and administrative                                  688         363       1,327         772
                                                          ---------   ---------   ---------   ---------
Total operating expenses                                      4,703         955       7,072       1,962
                                                          ---------   ---------   ---------   ---------
Operating income                                              2,512         753       3,265       1,322

OTHER INCOME AND (EXPENSE):
    Interest income                                              44          42         482         296
    Unrealized gain on marketable securities                    233         527         509         812
    Realized gain on sale of investment                       1,647          --       1,647          --
    Interest expense                                         (2,143)        (27)     (3,177)        (79)
    Gain (loss) from swap transactions, net                    (357)         28      (3,597)        593
    Net gain on legal settlement                                 --          --          --       2,565
                                                          ---------   ---------   ---------   ---------
Total other income and (expense)                               (576)        570      (4,136)      4,187

                                                          ---------   ---------   ---------   ---------
Income (loss) before income taxes                             1,936       1,323        (871)      5,509
Income taxes benefit (expense)                                 (738)       (407)        303        (763)
                                                          ---------   ---------   ---------   ---------
Income (loss) from continuing operations                      1,198         916        (568)      4,746
Income (loss) from discontinued operation, net of tax            --         150          --      (3,286)
                                                           --------    --------    --------    --------
Net income (loss)                                         $   1,198   $   1,066   $    (568)  $   1,460
                                                          =========   =========   =========   =========

Basic and diluted income (loss) per share:
    Continuing operations                                 $    0.44   $    0.34   $   (0.21)  $    1.75
    Discontinued operations                                      --        0.05          --       (1.21)
                                                          ---------   ---------   ---------   ---------
    Net income (loss)                                     $    0.44   $    0.39   $   (0.21)  $    0.54
                                                          =========   =========   =========   =========

Weighted average number of shares
  outstanding - basic and diluted                         2,717,891   2,717,891   2,717,891   2,717,891
                                                          =========   =========   =========   =========


               See notes to the consolidated financial statements


                                       2


                          ISRAMCO INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (Unaudited)

                                                        Six Month Ended June 30,
                                                        ------------------------
                                                            2007        2006
                                                          --------    --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                         $   (568)   $  1,460
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Discontinued operations                                         --       3,286
                                                          --------    --------
Income (loss) from continuing operations                      (568)      4,746

Depreciation, depletion amortization and impairment          2,685         288
Accretion expense                                               44          37
Unrealized gain on marketable securities                      (509)       (812)
(Gain) Loss on derivative contracts                          3,597        (593)
Equity in earnings of unconsolidated affiliates             (2,269)     (1,663)
Deferred taxes                                              (1,108)         --
Realized gain on sale of investment                         (1,647)         --
Changes in assets and liabilities:
Accounts receivable                                         (4,098)         62
Prepaid expenses and other current assets                      (23)        242
Accounts payable and accrued liabilities                      (278)        691
                                                          --------    --------
Net cash provided by (used in) operating activities
Continuing operations                                       (4,174)      2,998
Discontinued operations                                         --         (50)
                                                          --------    --------
Net cash provided by operating activities                   (4,174)      2,948
                                                          --------    --------

CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in affiliate                                         --        (979)
Addition to property and equipment                         (85,240)     (1,500)
Proceeds from restricted deposit                            15,700          --
Distributions from unconsolidated affiliates                   409          --
Proceeds from swap transactions                              2,414          --
Proceeds from sale of subsidiary - Magic                     2,150          --
Proceeds from sale of gas properties and equipment             495          --
Proceeds from sale of other investment                       1,670          --
Purchase of marketable securities                             (763)     (1,373)
Proceeds from sale of marketable securities                  2,474       2,435
                                                          --------    --------
Net cash used in investing activities                      (60,691)     (1,417)
                                                          --------    --------

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from loans - related parties                   34,356          --
Proceeds from long-term debt                                35,300          --
Repayment of loan                                           (2,500)       (501)
Repayment on bank loans, net                                   (82)       (154)
                                                          --------    --------
Net cash provided (used) by financial activities            67,074        (655)
                                                          --------    --------

Net increase (decrease) in cash and cash equivalents         2,209         876
Cash and cash equivalents-beginning of period                  573       1,249
                                                          --------    --------
Cash and cash equivalents-end period                      $  2,782    $  2,125
                                                          ========    ========
Supplemental cash flow information
  Interest paid                                           $    616    $    201
  Income taxes paid                                             --          --

               See notes to the consolidated financial statements


                                       3


                          ISRAMCO INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

As used in these financial statements, the terms "Company" and "Isramco" refer
to Isramco, Inc. and subsidiaries.

The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q. accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of Management, all adjustments (consisting of only normal recurring adjustments)
considered necessary for a fair presentation have been included. Results for the
six month period ended June 30, 2007 are not necessarily indicative of the
results that may be expected for the year ended December 31, 2007. For further
information, refer to the consolidated financial statements and footnotes
thereto included in Isramco's Annual Report on Form 10-K for the fiscal year
ended December 31, 2006.

Certain re-classification of prior year amounts has been made to conform to
current presentation.

On March 2, 2007, Isramco purchased certain oil and gas properties located in
Texas and New Mexico from Five States Energy Company, LLC for an aggregate
purchase price of $92 million. These financial statements reflect the assets
acquired and operations related to those assets from the acquisition date
through June 30, 2007.

NOTE 2 - CONSOLIDATION

The consolidated financial statements include the accounts of Isramco, its
direct and indirect non U.S. based wholly-owned subsidiaries Isramco Oil and Gas
Ltd. ("Oil and Gas") and its U.S. based wholly-owned subsidiaries: Jay
Petroleum, L.L.C. ("Jay Petroleum"), Jay Management L.L.C. ("Jay Management"),
IsramTec Inc. ("IsramTec") and Isramco Energy LLC. Inter company balances and
transactions have been eliminated in consolidation.

NOTE 3 - OIL AND GAS PROPERTIES

Isramco follows the "successful efforts" method of accounting for its oil and
gas properties. Under this method of accounting, all property acquisition costs
and costs of exploratory and development wells are capitalized when incurred,
pending determination of whether the well has found proved reserves. If an
exploratory well has not found proved reserves, the costs of the well are
charged to expense. The costs of development wells are capitalized whether
successful or unsuccessful. Geological and geophysical costs and the costs of
carrying and retaining undeveloped properties are expensed as incurred.

NOTE 4 - TRANSACTION WITH FIVE STATES

On March 2, 2007, Isramco purchased certain oil and gas properties located in
Texas and New Mexico from Five States Energy Company, LLC for an aggregate
purchase price of $92 million. According to an engineering report prepared by an
independent consulting company relating to the properties purchased, the
estimated proved developed producing reserves are 1,447,161 net barrels of oil
and 20,078,174 net MMCF's of natural gas and 1,305,705 net of liquid products.

To fund the purchase, we obtained loans from our parent Naphtha Israel Petroleum
Corp. Ltd. (including through its wholly owned subsidiary IOC-Israel Oil Company
Ltd) in an aggregate principle amount of $42 million. In addition, we obtained a
$7 million loan from J.O.E.L Jerusalem Oil Exploration Ltd, which is a related
party, and a $35.3 million line of credit from Wells Fargo. (see Note 6) The
balance of the purchase was funded with working capital.


                                       4


The following table summarizes the preliminary estimated fair values of assets
that Isramco acquired and the liabilities assumed in connection with the
acquisition of the Five States properties:

(in thousands)
Oil and gas properties                                        $ 92,000
Asset retirement obligation                                     (1,292)
                                                              --------
Net asset acquired                                            $ 90,708
                                                              ========

The following unaudited pro forma information assumes the acquisition of the
Five States properties occurred as of January 1, 2006 and 2005, respectively.
The pro forma results are not necessarily indicative of what actually would have
occurred had the acquisition been in effect for the period presented.

(in thousands, except for share data)                  AS
                                                    REPORTED       PRO FORMA
Six months ended June 30, 2007:
-------------------------------

Revenues                                            $ 10,337       $  16,019

Net loss                                                (568)         (1,689)

Loss per share - basic and diluted
    Continuing operations                           $  (0.21)      $   (0.62)
    Discontinued operations                               --              --
                                                    --------       ---------
    Total                                           $  (0.21)      $   (0.62)
                                                    ========       =========


Six months ended June 30, 2006:
-------------------------------

Revenues                                            $  3,284       $  14,730

Net income                                             1,460           1,500

Income (loss) per share - basic and diluted
    Continuing operations                           $   1.75       $    1.76
    Discontinued operations                            (1.21)          (1.21)
                                                    --------       ---------
    Total                                           $   0.54       $    0.55
                                                    ========       =========

Three months ended June 30, 2006:
---------------------------------

Revenues                                            $  1,708       $   7,274

Net income                                             1,066           1,002

Income per share - basic and diluted
    Continuing operations                           $   0.34       $    0.31
    Discontinued operations                             0.05            0.05
                                                    --------       ---------
    Total                                           $   0.39       $    0.36
                                                    ========       =========


                                       5


NOTE 5 - DERIVATIVE CONTRACTS

Following the closing of Five States transaction (see Note 4), Isramco signed
additional swap agreements with Wells Fargo Bank to secure its future oil and
gas prices as follows:

Swap contracts to sell 398,918 barrels of crude oil during 46 months commencing
March 2007 for a total consideration of $25.4 million. Swap contracts to sell
29,609,026 MMBTU of natural gas during 46 months commencing March 2007 for a
total consideration of $29.6 million.

The following is our open swap contracts positions at June 30, 2007:



                                                      OIL
========================================================================================================
      MONTHLY           AVERAGE                           NUMBER             TOTAL
      QUANTITY          FUTURE                              OF             QUANTITY
      BARRELS            PRICE            YEAR            MONTHS            BARRELS       TOTAL AMOUNT
--------------------------------------------------------------------------------------------------------
                                                                            
       4,000           $ 62.90            2007               6               24,000        $ 1,509,600
       4,000             65.08            2008              12               48,000          3,123,960
       3,700             64.97            2009              12               44,400          2,884,680
       2,700             63.30            2010              12               32,400          2,050,920
       6,341             62.47            2007               6               38,046          2,376,734
       5,516             64.70            2008              12               66,192          4,282,622
       6,096             64.55            2009              12               73,152          4,721,962
       5,447             63.80            2010              12               65,364          4,170,223
       1,000             66.05            2007               6                6,000            396,300
       1,000             68.46            2008              12               12,000            821,520
                                                                       ---------------------------------
       Total                                                                409,554       $ 26,338,521
                                                                       =================================


                                                    GAS
========================================================================================================
      MONTHLY           AVERAGE                           NUMBER             TOTAL
      QUANTITY          FUTURE                              OF             QUANTITY
       MMBTU             PRICE            YEAR            MONTHS             MMBTU        TOTAL AMOUNT
--------------------------------------------------------------------------------------------------------
                                                                           
      101,107           $ 8.08            2007               6              607,002       $  4,901,826
      100,876             8.29            2008              12            1,210,512         10,036,598
      100,874             7.85            2009              12            1,210,488          9,496,392
       79,286             7.49            2010              12              951,432          7,126,226
       20,000             7.87            2007               6              120,000            943,800
       13,000             8.37            2008              12              156,000          1,304,940
                                                                       ---------------------------------
       Total                                                              4,255,434       $ 33,809,782
                                                                       =================================


Isramco recognized a loss of $3,597,000 for the six months ended June 30, 2007
and a gain of $593,000 for the six months ended June 30, 2006 related to the
swap agreements.

NOTE 6 - DEBT

In connection with the acquisition of the Five States properties (see Note 4),
we obtained the following financing:

Pursuant to a Loan Agreement dated as of February 27, 2007 (the "Loan
Agreement"), Isramco obtained a loan from Naphtha, its parent company, in the
aggregate principal amount of $18.5 million. The outstanding principal amount of
the loan accrues interest at per annum rate equal to the London Inter-bank
Offered Rate (LIBOR) plus 5.5%, not to exceed 11% per annum. Interest is payable
at the end of each loan year. Principal plus any accrued and unpaid interest are
due and payable on February 26, 2014. Interest after the maturity date accrues
at the per annum rate of LIBOR plus 12% until paid in full. At any time, Isramco
is entitled to prepay the outstanding amount of the loan without penalty or
prepayment. To secure its obligations that may be incurred under the Loan
Agreement, Isramco agreed to grant to Naphtha a security interest in certain
specified properties held by Jay Petroleum, its wholly owned subsidiary. Naphtha
can accelerate the loan and exercise its rights under the collateral upon the
occurrence of certain specified events of default. Mr. Jackob Maimon, Isramco's
president and director is a director of Naphtha and Mr. Haim Tsuff, Isramco's
Chief Executive Officer and Chairman is a controlling shareholder of Naphtha.


                                       6


Pursuant to a Loan Agreement dated as of February 27, 2007 (the "Second Loan
Agreement") Isramco obtained a loan from Naphtha, in the principal amount of
$11.5 million, repayable at the end of seven years. Interest accrues at a per
annum rate of LIBOR plus 6%. At any time Isramco can make prepayments without
premium or penalty .The Second Loan is unsecured. The other terms of the Second
Loan Agreement are identical to the terms of the Loan Agreement.

Pursuant to a Loan Agreement dated as of February 27, 2007 (the "Third Loan
Agreement ") Isramco obtained a loan from Naphtha, in the principal amount of
$12 million, repayable at the end of five years. Interest accrues at a per annum
rate of LIBOR plus 6%. At any time Isramco can make prepayments without premium
or penalty. The Third Loan is unsecured. The other terms of the Third Loan
Agreement are identical to the terms of the Loan Agreement.

Pursuant to a Loan Agreement dated as of February 26, 2007 Isramco obtained a
loan from J.O.E.L Jerusalem Oil Exploration Ltd, a related party ("JOEL"), in
the principal amount of $7 million, repayable at the end of 3 months. Interest
accrues at a per annum rate of 5.36%. Mr. Jackob Maimon, Isramco's president and
director is a director of JOEL and Mr. Haim Tsuff, Isramco's Chief Executive
Officer and Chairman is a controlling shareholder of JOEL. On May 26, 2007, the
maturity date this loan was extended until July 11, 2007. Pursuant to a loan
agreement dated as of July 11, 2007, the maturity date on this loan was extended
for an additional period of seven years. Interest accrues at a per annum rate of
LIBOR plus 6%. Principal amount is repayable beginning at the end of third year
in five equal installments. At any time Isramco can make prepayments without
premium or penalty. The Loan is unsecured.

On March 2, 2007, Isramco Energy obtained a $35.3 million credit line from Wells
Fargo Bank. Amounts outstanding under the credit line are payable by March 1,
2011. Interest on amounts outstanding accrue at a per annum rate equal to LIBOR
plus 2%. Isramco is required to maintain several financial covenants in
connection with this credit line. The borrowing base for the credit line is
determined periodically by Wells Fargo Bank using engineering reports and other
information provided by Isramco. In addition, Isramco is required to hedge 80%
of expected future volumes for a period of four years. Amounts outstanding under
the credit line are secured by a guarantee from Isramco and a pledge by Isramco
of the shares of Isramco Energy. Additionally, pursuant to an agreement between
Sigma Energy Corporation ("Sigma"), an unrelated party that originated the
transaction with Five States, Isramco and Isramco Energy, Isramco Energy paid to
Sigma on March 2, 2007, the amount of $300,000 and after Payout (as defined in
the agreement with Sigma), Isramco Energy will assign to Sigma a direct
ownership interests equal to 3.75% of the interests acquired by Isramco Energy
under the Five States Purchase and Sale Agreement. After June 30, 2007, the
borrowing base with Wells Fargo Bank was reduced to $27 million due to lack of
engineering reports. Isramco will pay back the $8.3 milion reduction in six
monthly payments beginning July 1, 2007. Isramco expects to have engineering
reports prepared for the bank as of November 1, 2007.

NOTE 7 - DISCONTINUED OPERATION

In March 2004, Isramco purchased a luxury cruise liner for aggregate
consideration of $8,050,000. The vessel, a Bahamas registered ship, contains 270
passenger cabins on nine decks. Isramco leased the vessel to a tour operator for
the period from April 4, 2005 through October 31, 2005 and from April 6 2006
through November 5 2006 at a daily rate of $8,000. Under the lease all
maintenance and operating costs associated with the vessel were borne by the
operator.

Title to the Vessel was in Magic 1 Cruise Line Corp., a British Virgin Islands
corporation and a wholly owned subsidiary of Isramco ("Magic"). Isramco expended
approximately $1.4 million and $1 million in the years 2006 and 2005,
respectively, in respect of the maintenance, repairs, renovation and upkeep of
the vessel. In addition, following management's assessment conducted in April
and May 2006 as part of the preparation of the financial statements for the
first quarter of 2006, management determined that there has been a decrease in
the fair market value of Isramco's investment in the Magic 1 cruise vessel and,
that as a consequence thereof, Isramco believed the investment had been
impaired. Accordingly, Isramco recorded as impairment charge in March 2006 in
the amount of $2,200,000.

On December 31, 2006, Isramco and Chesny Estates Ltd., a British Virgin Islands
corporation, entered into a Share Purchase and Sale Agreement, dated as of
December 31, 2006, pursuant to which Isramco sold to Chesny all of the
outstanding share capital of Magic for a purchase price of $2.15 million. The
purchase included the assumption by Chesny of a loan in the principal amount of
$3.3 million incurred by Isramco in connection with the purchase of Magic.


                                       7


Isramco's decision to sell its holdings in Magic was primarily attributable to
Isramco's decision to focus principally on the oil and gas business. Following
the sale of Magic, Isramco is no longer engaged in the cruise line business.

NOTE 8 - EARNINGS PER SHARE COMPUTATION

Basic and diluted net income/loss per share calculations are presented in
accordance with Financial Accounting Standards Statement 128, and are calculated
on the basis of the weighted average number of common shares outstanding during
the year. Our weighted average number of outstanding share is the same for both
calculating both basic and diluted earnings per share as we did not have any
common stock equivalents outstanding during the period.

NOTE 9 - GEOGRAPHICAL SEGMENT INFORMATION

Isramco's operations for 2007 involve one industry segment - the exploration,
development production and transportation of oil and natural gas. Prior to 2007
Isramco operated in two operating segment - oil and gas activities and holding
and leasing its cruise line vessel. Its current oil and gas activities are
concentrated in the United States and Israel. Operating outside the United
States subjects the company to inherent risks such as a loss of revenues,
property and equipment from such hazards as exploration. Nationalization, war
and other political risks, risks of increase of takes and governmental
royalties, renegotiation of contracts with governmental royalties, renegotiation
of contracts with government entities and change in laws and policies governing
operations of foreign-based companies.

Isramco's oil and gas business is subject to operating risks associated with the
exploration, and production of oil and gas, including blowouts, pollution and
acts of nature that could result in damage to oil and gas wells, production
facilities of formations. In addition, oil and gas prices have fluctuated
substantially in recent years as a result of events outside of Isramco's
control. Isramco does not directly operator the operators. This segment of
Isramco's business is subject to many risks all of which cannot be presently
anticipated, including losses resulting from unexpected repairs and maintenance
and competition.



                                                       UNITED                    CONSOLIDATED
                                                       STATES        ISRAEL         TOTAL
                                                      --------      -------      ------------
                                                                         
Identifiable assets at June 30, 2007                  $ 97,615      $ 1,979       $  99,594
Cash and corporate assets                                                            34,682
                                                                                 ------------
Total Assets at June 30, 2007                                                       134,276
                                                                                 ============

Identifiable assets at December 31, 2006                10,583        1,954          12,537
Cash and corporate assets                                                            49,536
                                                                                 ------------
Total Assets at December 31, 2006                                                 $  62,073
                                                                                 ============

SIX MONTHS ENDED JUNE 30, 2007

Sales and other operating revenue                     $  8,151      $ 2,186       $  10,337
Operating expenses                                      (6,378)        (694)         (7,072)
                                                      --------      -------      ------------
Operating profit                                         1,773        1,492           3,265


Interest income                                                                         482
Interest expense                                                                     (3,177)
Gain on marketable securities and other investments                                   2,156
Loss from swap transactions                                                          (3,597)
Income Taxes                                                                            303
                                                                                 ------------
Net income                                                                        $    (568)
                                                                                 ============




                                       8




                                                                         
SIX MONTHS ENDED JUNE 30, 2006

Sales and other operating revenue                     $  1,320      $ 1,964       $   3,284
Costs and operating expenses                            (1,531)        (431)         (1,962)
                                                      --------      -------      ------------
Operating profit                                          (211)       1,533           1,322

Interest income                                                                         296
Interest expense                                                                        (79)
Gain on marketable securities and other investments                                     812
Gain from swap transactions                                                             593
Net gain on legal settlement                                                          2,565
Income taxes                                                                           (763)
Discontinued operation                                                               (3,286)
                                                                                 ------------
Net income                                                                        $   1,460
                                                                                 ============

THREE MONTHS ENDED JUNE 30, 2007

Sales and other operating revenue                     $  6,206      $ 1,009       $   7,215
Costs and operating expenses                            (4,149)        (554)         (4,703)
                                                      --------      -------      ------------
Operating profit                                         2,057          455           2,512

Interest income                                                                          44
Interest expense                                                                     (2,143)
Gain on marketable securities and other investments                                   1,880
Loss from swap transactions                                                            (357)
Income Taxes                                                                           (738)
                                                                                 ------------
Net income                                                                        $   1,198
                                                                                 ============

THREE MONTHS ENDED JUNE 30, 2006

Sales and other operating revenue                     $    990      $   718       $   1,708
Costs and operating expenses                              (615)        (340)           (955)
                                                      --------      -------      ------------
Operating profit                                           375          378             753

Interest income                                                                          42
Interest expense                                                                        (27)
Gain on marketable securities                                                           527
Gain from swap transactions                                                              28
Income taxes                                                                           (407)
Discontinued operation                                                                  150
                                                                                 ------------
Net loss                                                                          $   1,066
                                                                                 ============




                                       9


NOTE 10 - COMPREHENSIVE INCOME

Isramco's comprehensive income for the three month period ended June 30, 2007
and 2006 was as follows:



                                             Three Months Ended      Six Months Ended
                                                   June 30               June 30
                                             ------------------    ------------------
                                               2007       2006       2007       2006
                                             -------    -------    -------    -------
                                                                  
Net income (loss)                            $ 1,198    $ 1,066    $  (568)   $ 1,460
Other comprehensive gain (loss):

  Available-for-sale securities                  837        (96)     1,141          8
  Foreign currency translation adjustments      (640)       415       (140)       311
                                             -------    -------    -------    -------
Comprehensive income                         $ 1,395    $ 1,385    $   433    $ 1,779
                                             =======    =======    =======    =======





                                       10


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

THE FOLLOWING COMMENTARY SHOULD BE READ IN CONJUNCTION WITH THE CONSOLIDATED
FINANCIAL STATEMENTS AND RELATED NOTES CONTAINED ELSEWHERE IN THIS REPORT ON
FORM 10-Q. THE DISCUSSION 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 THESE FORWARD-LOOKING
STATEMENTS BY TERMINOLOGY SUCH AS "MAY," "WILL," "SHOULD," "EXPECT," "PLAN,"
"ANTICIPATE," "BELIEVE," "ESTIMATE," "PREDICT," "POTENTIAL," "INTEND," OR
"CONTINUE," AND SIMILAR EXPRESSIONS. THESE STATEMENTS ARE ONLY PREDICTIONS. OUR
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE ANTICIPATED IN THESE
FORWARD-LOOKING STATEMENTS AS A RESULT OF A VARIETY OF FACTORS, INCLUDING, BUT
NOT LIMITED TO, THOSE SET FORTH UNDER "RISK FACTORS" AND ELSEWHERE IN THIS
REPORT ON FORM 10-Q. ISRAMCO INC. DISCLAIMS ANY OBLIGATION TO UPDATE SUCH
FORWARD LOOKING STATEMENTS.

OVERVIEW

Isramco, Inc., a Delaware company, is active in the exploration of oil and gas
in Israel and the United States. The Company acts as an operator of certain
leases and licenses and also holds participation interests in certain other
interests. The Company also holds certain non-oil and gas properties.

On March 2, 2007, Isramco purchased certain oil and gas properties located in
Texas and New Mexico from Five States Energy Company, LLC (the "Five States
Acquisition") for an aggregate purchase price of $92 million. These financial
statements reflect the assets acquired and operations related to those assets
from the acquisition date through June 30, 2007.

CRITICAL ACCOUNTING POLICIES

In response to the Release No. 33-8040 of the Securities and Exchange
Commission, "Cautionary Advice Regarding Disclosure and Critical Accounting
Policies", the Company identified the accounting principles which it believes
are most critical to the reported financial status by considering accounting
policies that involve the most complex of subjective decisions or assessments.

The Company maintains allowances for doubtful accounts for estimated losses
resulting from the inability of customers to make required payments. If the
financial condition of customers were to deteriorate, resulting in an impairment
of their ability to make payments, additional allowances may be required.

The Company records an investment impairment charge when it believes an
investment has experienced a decline in value that is other than is temporary.
Future adverse changes in market conditions or poor operating results of
underlying investments could result in losses or an inability to recover the
carrying value of the investment that may not be reflected in an investment's
current carrying value, thereby possibly requiring an impairment charge in the
future.

The Company records a valuation allowance to reduce its deferred tax assets to
the amount that is more likely than not to be realized. While the Company has
considered future taxable income and ongoing prudent and feasible tax planning
strategies in assessing the need for the valuation allowance, in the event that
the Company were to determine that it would be able to realize its deferred tax
assets in the future in excess of its net recorded amount, an adjustment to the
deferred tax asset would increase net income in the period such determination
was made.

The Company does not participate in, nor has it created, any off-balance sheet
special purpose entities or other off-balance sheet financing. In addition, the
Company does not enter into any derivative financial instruments.

The Company records a liability for asset retirement obligation at fair value in
the period in which it is incurred and a corresponding increase in the carrying
amount of the related long live assets.


                                       11


LIQUIDITY AND CAPITAL RESOURCES

The Company finances its operations primarily from cash generated by operations.

During the six months ended June 30, 2007, our consolidated cash and cash
equivalents increased by $2,209,000 from $573,000 at December 31, 2006 to
$2,782,000 at June 30, 2007. Our restricted cash decreased from $17,000,000 to
$1,300,000 during the same period. The decrease in our restricted cash is
primarily attributable to the use of cash reserves related to the Five States
Acquisition, which was completed in March 2007, our participation in the
drilling of several gas wells to the Barnett formation in North Texas and
repayment of loans that were received to finance the oil and gas acquisition.

Net cash provided by operating activities was $4,174,000 for the six months
ended June 31, 2007 compared to $2,948,000 for the same period in 2006. The
increase is primarily due to operational cash flows from the properties acquired
in the Five States Acquisition.

Net cash used in investing activities for the six-month period ended June 30,
2007 was $60,691,000 compared to $1,417,000 for the same period in 2006. The
cash used in 2007 period was use is primarily attributable to the Five States
Acquisition, which amounted to $85,204,000, offset by proceeds from a restricted
deposit and the sale or settlement of various investments.

Net cash provided by financing activities was $67,074 for the six months ended
June 31, 2007 compared to net cash used in financing activities of $655 for the
same period in 2006. Our financing activities in 2007 primarily relate to
borrowings in connection with the Five States Acquisition.

The Company believes that existing cash balances and cash flows from operating
activities will be sufficient to meet its financing needs. The Company intends
to finance its ongoing oil and gas exploration activities from working capital.

RESULTS OF OPERATIONS

SUMMARY OF EXPLORATION EFFORTS IN THE UNITED STATES

The Company, through its wholly-owned subsidiaries, Isramco Energy LLC ("Isramco
Energy"), Jay Petroleum LLC ("Jay Petroleum") and Jay Management LLC ("Jay
Management"), is involved in oil and gas production in the United States. Jay
Petroleum owns varying working interests in oil and gas wells in Louisiana,
Texas, Oklahoma and Wyoming. Jay Management acts as the operator of certain of
the producing oil and gas interests owned or acquired by Jay Petroleum.

During the six months ended June 30, 2007, we continued to invest in drilling
activities in the Barnett Shale in North Central Texas (Parker County) in which
we hold a 15% working interests. To date, 22 gas wells have been drilled of
which 11 wells have been completed for production and the remainder are in
various stages of completion.



                                       12


The following table provides additional information regarding our oil and gas
activities:

                                         Three Months            Six Months
Oil and Gas Revenues                    ended June 30,          ended June 30,
(in thousands)                         -----------------      -----------------
                                        2007      2006         2007      2006
                                       ------    -------      ------    -------
Oil Volume Sold (Bbl)                      31        3.6        47.7        7.1

Gas Volume Sold (MCF)                     413         51         599        112

Oil Sales                              $1,919    $   218      $2,773    $   427

Gas Sales                               2,889        291       3,973        740

Plant Products                            679         33         905         39

Average Unit Price

Oil ($/Bbl) *                          $61.90    $ 60.56      $58.13    $ 60.14

Gas ($/MCF) **                           7.00       5.71        6.63       6.61


    * Bbl - Stock Market Barrel Equivalent to 42 U.S. Gallons
   ** MCF - 1,000 Cubic Feet


SIX MONTHS ENDED JUNE 30, 2007 COMPARED TO SIX MONTHS ENDED JUNE 30, 2006:

We reported a net loss of $568,000 or ($0.21) per share for the six-month period
ended June 30, 2007 compared to net income of $1,460,000 or $0.54 per share for
the same period in 2006. The loss recoded during the six months ended June 30,
2007 as compared to the income recorded for the same period in 2006 is primarily
attributable to an aggregate $12,266,000 increase in interest expense, lease
operating expense, depreciation, depletion, amortization and impairment, and a
loss on swap transactions. This was partially offset by a $7,053,000 increase in
revenues. In addition, we recorded $3,286,000 in loss from discontinued
operations in 2006 that did not exist in 2007.

OIL & GAS REVENUES - During the 2007 period, we recorded $7,651,000 in oil and
gas revenues compared to $1,206,000 in 2006. This increase is primarily due to
the Five States Acquisition, partially offset by a decline in production from
our older oil and gas properties and a shutdown of certain production in one of
our fields due to unanticipated pipeline maintenance.

LEASE OPERATING EXPENSES AND SEVERANCE TAXES - During the 2007 period, we
recorded $2,981,000 in lease operating expenses and severance taxes compared to
$400,000 in 2006. This increase is primarily due to the Five States Acquisition.

DEPRECIATION, DEPLETION, AMORTIZATION AND IMPAIRMENT - Depreciation depletion
and amortization expenses are connected to the producing wells in the United
States. During the 2007 period, we recorded $2,685,000 in depreciation,
depletion, amortization and impairment compared to $288,000 in 2006. This
increase is primarily due to the Five States Acquisition.

GENERAL AND ADMINISTRATIVE - During the 2007 period, we recorded $1,327,000 in
general and administrative compared to $772,000 in 2006. This increase is
primarily due to increased salaries.

INTEREST INCOME - During the 2007 period, we recorded $482,000 in interest
income compared to $296,000 in 2006. This increase is primarily due a restricted
cash deposit invested during the first part of the year.

GAIN ON SALE OF INVESTMENT - In April 2007, IsramTec Inc. a wholly owned
subsidiary of the Company, sold part of its equity interests in a high-tech
company, for aggregate consideration of approximately $1.7 million (net of
commission). As a result of the transaction, the Company recorded a one-time
non-recurring net gain of $1.65 million.


                                       13


EQUITY IN EARNINGS OF UNCONSOLIDATED AFFILIATES - During the 2007 period, we
recorded $2,269,000 in equity in earnings of unconsolidated affiliates compared
to $1,663,000 in 2006. The net income is primarily attributable to the gain of
marketable securities held by the limited partnerships Isramco Negev 2 and
I.O.C. Dead Sea LP, affiliates of the Company.

NET GAIN ON LEGAL SETTLEMENTS - Net Gain on Legal Settlements in 2006 Period is
attributable to the receipt of approximately $3,050,000 million from the
settlement by the Company in February 2006 of certain lawsuits that it
initiated. According to the agreements with the defendants settling these
lawsuits, the Company recorded a net gain of $2,565,000.

THREE MONTHS ENDED JUNE 30, 2007 COMPARED TO THREE MONTHS ENDED JUNE 30, 2006:

We reported a net income of $1,198,000 or $0.44 per share for the three months
period ended June 30, 2007 compared to $1,066,000 or $0.39 per share for the
same period in 2006. The increase in net income is primarily attributable to a
$5,507,000 increase in revenue and a $1,647,000 realized gain of sale of
investment, partially offset by an aggregate $6,212,000 increase in interest
expense, lease operating expense, depreciation, depletion, amortization and
impairment, and a loss on swap transactions.

OIL & GAS REVENUES - During the 2007 period, we recorded $5,487,000 in oil and
gas revenues compared to $542,000 in 2006. This increase is primarily due to the
Five States Acquisition, partially offset by a decline in production from our
older oil and gas properties and a shutdown of certain production in one of our
fields due to unanticipated pipeline maintenance.

LEASE OPERATING EXPENSES AND SEVERANCE TAXES - During the 2007 period, we
recorded $2,183,000 in lease operating expenses and severance taxes compared to
$179,000 in 2006. This increase is primarily due to the Five States Acquisition.

DEPRECIATION, DEPLETION, AMORTIZATION AND IMPAIRMENT - Depreciation depletion
and amortization expenses are connected to the producing wells in the United
States. During the 2007 period, we recorded $1,794,000 in Depreciation,
depletion, amortization and impairment compared to $87,000 in 2006. This
increase is primarily due to the Five States Acquisition.

GENERAL AND ADMINISTRATIVE - During the 2007 period, we recorded $688,000 in
general and administrative compared to $363,000 in 2006. This increase is
primarily due to increased salaries.

EQUITY IN EARNINGS OF UNCONSOLIDATED AFFILIATES - During the 2007 period, we
recorded $1,506,000 in equity in earnings of unconsolidated affiliates compared
to $958,000 in 2006. The net income is primarily attributable to the gain of
marketable securities held by the limited partnerships Isramco Negev 2 and
I.O.C. Dead Sea LP, affiliates of the Company.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risks relating to changes in interest rates and foreign currency
exchanges rates were reported in Item 7A of the Company's Annual Report on Form
10-K for the year ended December 31, 2006. There has been no material change in
these market risks since the end of the fiscal year 2006.

ITEM 4. CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Company maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Company's Exchange Act reports is recoded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms, and that such information is accumulated and communicated
to management, including our Chief Executive Officer (and Principal Financial
Officer), as appropriate, to allow timely decisions regarding required
disclosure based closely on the definition of "disclosure controls and
procedures" in Rule 13 a- 14 c.


                                       14


As of the end of the period covered by this report, we carried out an
evaluation, under the supervision and with participation of management,
including our Chief Executive Officer (and our Principal Financial Officer), of
the effectiveness of the design and operation of our disclosure controls and
procedures. Based of the foregoing, our Chief Executive Officer (and Principal
Financial Officer) concluded that our disclosure controls and procedures were
effective.

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING. During the quarter ended
June 30, 2007, there have been no changes in our internal controls over
financial reporting that have materially affected, or are reasonably likely to
materially affect, these controls.






                                       15


                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

         None

ITEM 1A.  RISK FACTORS

         The Risk Factors included in the Company's Annual Report on Form 10-K
for the fiscal year ended December 31, 2006 have not materially changed.


ITEM 2. CHANGE IN SECURITIES & USE OF PROCEEDS

         None


ITEM 3. DEFAULT UPON SENIOR SECURITIES

         None


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Company's Annual Meeting of Stockholders was held on June 27, 2007. The
following matters were voted on: (1) Election of Directors and (2) Appointment
of Auditors. The vote tally was as follows:

     (1)  Proposal to Elect Directors to Serve until the 2008 Annual Meeting of
          Stockholders.

     (2)
                                                  FOR            WITHHOLD
                                              -----------       -----------
                  Haim Tsuff                    2,053,227             2,943

                  Jackob Maimon                 2,053,227             2,943

                  Max Pridgeon                  2,053,822             2,343

                  Donald D. Lovell              2,053,827             2,343

                  Frans Sluiter                 2,053,742             2,428


2) Proposal to ratify the appointment of Malone & Bailey, PC as the Company's
auditors for the year ending December 31, 2007.


 FOR                AGAINST          ABSTAIN                    BROKER NON VOTES
--------------------------------------------------------------------------------
2,052,964            1,905            1,299                           ---




                                       16


ITEM 5. OTHER INFORMATION

         None

ITEM 6. EXHIBITS

Exhibits

31   Certification of Chief Executive and Principal Financial Officer pursuant
     to Section 302 of Sarbanes-Oxley Act

32   Certification of Chief Executive and Principal Financial Officer pursuant
     to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 Of the
     Sarbanes-Oxley act of 2002




                                       17


                                   SIGNATURES

In accordance with 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.

                                                ISRAMCO, INC.


DATE: AUGUST 27, 2007                           BY /S/ HAIM TSUFF
                                                --------------------------------
                                                CHAIRMAN OF THE BOARD,
                                                CHIEF EXECUTIVE
                                                AND PRINCIPAL
                                                FINANCIAL AND ACCOUNTING OFFICER




                                       18