SECURITIES AND EXCHANGE COMMISSION

                         Washington, D. C.  20549

                                 FORM 10-K

               Annual Report Pursuant to Section 13 or 15(d)
                  of the Securities Exchange Act of 1934

                For the fiscal year ended December 31, 1995
                                     
                       Commission file number 0-8301


                    GOLDEN TRIANGLE ROYALTY & OIL, INC.
          (Exact name of registrant as specified in its charter)


                       Colorado                           25-1302097
            (State or other jurisdiction of            (IRS Employer
            incorporation or organization)              I. D. Number)

   8504 Sonoma Valley N.E., Albuquerque, New Mexico        87122
       (Address of principal executive offices)           (Zip Code)


            Registrant's telephone number, including area code:
                       (505) 856-5075; fax 857-9993

	Securities registered pursuant to Section 12(b) of the Act:                 
        			      None

        Securities registered pursuant to Section 12(g) of the Act:

              Title of Class - Common Stock, $.001 Par Value


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities 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 if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]

The aggregate market value of voting stock held by non-affiliates of the
registrant (persons other than officers, directors, or stockholders known by
the registrant to beneficially own more than 5% of its common stock) was
$5,453,144 as of March 11, 1996, based on the average bid and asked prices of
such stock ($3.125) at the close of the market on that day.

The number of shares outstanding of the registrant's common stock as of March
11, 1996 was 3,845,386 shares.

                                  PART I

Item 1.  Business

(a) General Development of Business

Golden Triangle Royalty & Oil, Inc. (the "Company" or "GTRO") was
incorporated on July 30, 1975 under the laws of the State of Colorado.  Later
that year, the Company obtained approximately $300,000 through an initial
public offering of 3,000,000 shares of its common stock, par value $.001 (the
"Common Stock").  The Company was organized primarily to acquire and hold
royalties on oil and gas properties, and currently holds 1,667,946 net
royalty acres of overriding royalties under 23,449,800 gross surface acres in
Australia, plus interests in the United States.  During the past three years
the Company has diversified and expanded its operations to include the salt
water disposal business, tire shredding/recycling, and ranch activities (see
following write-ups).  See Item 2 for a description of the Company's
properties.

During July 1992, stockholder approval was obtained from the stockholders of
both companies to approve the acquisition by GTRO of all the assets and
shares of Houston Oil & Energy, Inc. (HOE), a full reporting, publicly held
company.  The ratio for the acquisition was one share of GTRO given for each
3.125 shares of HOE.  The Company issued 23,372,799 shares of GTRO to HOE
shareholders and now owns 100% of HOE.  This acquisition improved the
Company's financial position by causing an increase in assets, revenues and
stockholders' equity, and the acquisition enabled GTRO to maintain its NASDAQ
listing.

During 1993 stockholder approval was obtained for a 1-for-20 reverse split of
the Company's common stock.  Effective July 26, 1993 the shares outstanding
were reduced from 63,358,977 to 3,167,948.  The Board of Directors believes
the reverse split resulted in increased tradeability of the  stock, and that
the increased price level encouraged more interest in the stock.

Beginning in 1993 with the acquisition of OCR Investments, Inc., the Company
began the expansion of its business into new areas.  OCR, a salt water
disposal company, approximately doubled GTRO's revenues in 1993.  This
acquisition was followed in 1994 by the acquisition of Transcon Energy Corp. 
This was the most important development of business in GTRO's history, since
the acquisition provided enough revenues (approximately $1,900,000 gross in
1994) to make the Company profitable.  The acquisition also added
approximately $1,200,000 in assets to GTRO.  GTRO issued 4,148,148 restricted
shares to the owners of Transcon for this acquisition which effectively
transferred control of the Company to these shareholders.  Transcon is now a
wholly owned subsidiary of GTRO.  Following the Transcon acquisition, the
Company acquired 50% of Jim Wells Salt Water Disposal, Inc.  During 1995 GTRO
expanded these operations further by acquiring the remainder of Jim Wells
SWD, plus 100% of another salt water disposal facility, County Line Disposal
Plant.

In addition to the acquisition of the salt water disposal operations, GTRO
also expanded into two other areas of business.  A ranch was purchased in New
Mexico with various potential revenue sources.   During 1995 the Company
reported  two land sales of forty acre tracts, and cattle grazing leases.  In
the first quarter of 1995 the Company purchased  tire shredding equipment
which is reported to be the largest equipment of its type in the southwest. 
The rental of this equipment brought in significant revenues for GTRO during
1995.  See Item 2 Properties for more complete information.

During 1995 stockholder approval was obtained for a 1-for-2.5 reverse split
of common stock.  Effective August 2, 1995 the shares outstanding were
reduced from 9,573,465 to 3,829,386.  Since GTRO is currently listed on the
NASDAQ Small Capital Issues, one purpose of the reverse split was to assist
in getting the stock price up to meet the requirements for consideration by
the NASDAQ National Market or the American Stock Exchange.  A listing on one
of the national markets offers more visibility for the Company and a broader
market for the stock.  GTRO has now met the financial requirements for a
listing on a national market and will attempt to gain listing within the next
year.

The following definitions are provided to clarify certain terms used in this
report:

Authority to Prospect ("ATP") - a concession granted by the State of
Queensland, Australia, which entitles its holder to an exclusive right to
explore for oil and natural gas in Queensland in the particular area covered
by the ATP.  See Item 2(d), "Oil and Gas Properties - Australian Properties"
for additional information.

Gross Production - the total production of oil, gas, or natural gas liquids
from a property or group of properties for any specified period of time.

Initial Potential ("IP") - a test performed before any significant production
from a well is marketed.  Additional potential tests may be performed after
a well goes on-stream.  As a hydrocarbon reservoir is depleted, the
potentials of the wells decline.  An oil well potential is an indication of
the maximum rate at which a well can produce.  Usually, wells produce at
lower rates than their potentials.  Reasons for the lower rates can involve
natural decline, government regulations, difficulties with operations or
infrastructure, and reservoir management considerations.  A number of wells
described in this report are producing at much lower rates than their IP's
would indicate because of the lack of presently existing roads, pipelines,
and other production infrastructure.  Also, high fluid rates cause water-
coning in certain fields.  Initial potential figures given in this report
were obtained by the Company from industry publications.

Net Royalty Acre - generally, a measurement of royalty or overriding royalty
and the equivalent of the full customary one-eighth royalty of the gross
production or revenue free and clear of exploration, drilling and production
costs from one acre of land.  The number of net royalty acres used in this
report applies to figures as of December 31, 1995, and the number will change
as relinquishments take place on the ATP's in Queensland, as an ATP expires
or is cancelled, or any new areas are added.

Overriding Royalty Interest ("ORRI") - an interest carved out of the lessee's
leasehold or working interest.  The amounts payable from ORRI's are payments
calculated as a percentage of either gross production or the gross revenues
of the working interest (based on the wellhead price) from a concession or
lease, usually free and clear of all exploration, drilling and development
and production costs, except for any applicable taxes and federal levies.  In
calculating the wellhead price, pipeline and trucking costs have already been
deducted from the refinery price.  The Australian overriding royalties
discussed herein are generally expressed as a percent of the gross
production.

Royalty - generally, a share of the production reserved by the grantor of an
oil or gas lease or concession.  The royalty interest is customarily free of
cost or expense incident to exploration, development or production, except
for production or gathering taxes.  The royalty is part of the consideration
for the grant of the lease or Authority to Prospect.

Working Interest ("WI") - all or a fractional part of the ownership rights
granted by a concession or lease.  The owner of a WI or a part thereof pays
all costs of operations and is entitled to the gross production, less
royalties retained by the grantor or lessor, and less other ORRI's or non-
operating interests created and assigned from the working interest, and thus
may incur operating expenses in excess of income.

(b) Financial Information About Industry Segments

In the fiscal year ending December 31, 1995, the Company's revenues,
operating profits or losses, and identifiable assets were attributable to its
salt water disposal operations, tire shredding/recycling, acquisition and
ownership of interests in oil and gas leases, and ranch operations.  (See
Items 6 and 8, "Selected Financial Data" and "Financial Statements and
Supplementary Data.") Financial information about other industry segments is
thus inapplicable.

(c ) Narrative Description of Business

General - Salt Water Disposal and Rig Services

GTRO is now involved in the salt water disposal business through its
subsidiaries OCR, Transcon, Jim Wells, and County Line.  The oil industry of
the United States produces more salt water than oil, and governmental
regulations require any salt water produced from oil or gas wells to be
injected back into the ground in another salt water bearing zone to protect
all fresh water zones from being contaminated.  GTRO's subsidiaries are in
the primary business of injecting the salt water back into the ground. 
Producers in the area separate the salt water from the produced gas and oil
and the water is trucked to storage tanks at one of the facilities where the
salt water is collected awaiting injection back into the ground.  A fee is
charged per barrel or per load for this service.

During 1994, 60% to 65% of Transcon's services were rendered to a single
customer.  However, Transcon's revenues have now become more diversified from
additional customers, with 54% being from one customer.  Management does not
foresee the loss of this customer, but continued to take steps during 1995 to
expand the business into other areas (by purchasing additional disposals) and
gain additional customers to prepare for this possibility.  The collection of
accounts receivable from the oil and gas producers represents a risk factor
in this service business.  Also, mechanical problems with a disposal well,
surface owners not renewing a lease, or a competitor installing a new
facility could be risk factors, although GTRO does not anticipate any such
problems at this time.

GTRO's subsidiaries' injection wells are located in the top gas producing
counties in Texas.  Of course, the continued profitability of the business is
dependent upon stable or increased gas prices causing additional oil and gas
production in the area.  The subsidiaries are also subject to environmental
considerations and must comply with governmental regulations.  See
"Governmental Regulation" on the following page.

Rig Services - A substantial part of Transcon's business includes sales and
rental of poly pipe and pumps to drilling contractors, and fresh water sales
for drilling fluids and completion treatments (frac jobs etc.).  Transcon
also provides other services including back filling drilling mud pits, sand
blasting, and steam cleaning.

See Item 2(a) Salt Water Disposal Properties for more complete information.

General - Oil and Gas

The majority of the properties acquired by the Company have been royalty
interests or ORRI's, although working interests have been acquired from time
to time.

The acquisition, exploration, development, production and sale of oil and gas
are subject to many factors that are outside the Company's control.  These
factors include market prices of oil and gas; national and international
economic conditions; import and export quotas; availability of drilling rigs,
casing, pipe, and other equipment and supplies; availability of and proximity
to pipelines and other transportation facilities; the supply and price of
competitive fuels; and the regulation of prices, production, transportation,
and marketing by domestic and foreign governmental authorities. 
Additionally, the Company generally has no control over whether the owner of
the exploration rights of its properties will explore for oil and gas on such
properties.  Each of these factors may affect the rate at which oil and gas
are produced on properties in which the Company has an interest or affect
whether wells will be drilled on such properties, and could otherwise
materially affect capital expenditures, earnings and the competitive position
of the Company.

The Company does not serve as operator of working interest properties, but it
does bear the risk of fire, blowout or other catastrophe to such properties
in proportion to the working interest owned in the properties.  The operators
of these properties may carry insurance against some of these risks but may
not be fully insured due to prohibitive premium costs or unavailability of
coverage.  Such risks are not borne by the Company on oil and gas leases in
which the Company owns an ORRI or 
royalty interest, which interests represent the majority of the Company's
holdings.

Competition

The oil and gas industry is highly competitive in all of its phases, with
competition for favorable producing royalties and overriding royalties being
particularly intense.  The Company believes that price, geological and
geophysical skill, and familiarity with an area of operations are the primary
competitive factors in the acquisition of desirable leases and suitable
prospects for oil and gas drilling operations.  The Company competes with
independent operators and occasionally major oil companies, a number of which
have substantially greater technical and financial resources than the
Company.  In the salt water disposal business, salt water disposal wells held
by other companies, as well as oil and gas producers adding their own
injection wells, provides competition, and requires the Company to provide
the best possible service at a competitive price.

Governmental Regulation

Oil and gas operations (including salt water disposal) are and will be
subject to federal, state and local laws and regulations governing waste,
environmental quality, pollution control, conservation and other measures
regarding environmental and ecological matters.  It is impossible to predict
the impact of environmental legislation and regulations on the Company's
operations in the future.  However, compliance could affect capital
expenditures, earnings and the competitive position of the Company.

The Company's operations will also be affected from time to time by other
federal, state and local laws and regulations and by political developments. 
The domestic production and sale of oil and gas are subject to federal
regulation by the Department of Energy and the Federal Energy Regulation
Commission.  Rates of production of oil and gas have for many years been
subject to federal and state conservation laws and regulations.  In addition,
oil and gas operations are subject to extensive federal and state regulations
concerning exploration, development, production, transportation and pricing,
and to interruption or termination by governmental authorities.  Removal of
import duties on oil entering the U.S. has had an adverse affect on the
domestic oil industry.

In foreign countries, the Company may be subject to governmental restrictions
on production, pricing and export controls.  Regulations existing or imposed
upon the Company at the time of its acquisition of properties may change to
an unpredictable extent.  The Company will have little or no control over the
change of regulations or imposition of new regulations and restrictions,
expropriation or nationalization by foreign governments or the imposition of
additional foreign taxes.  Management believes that these actions are
unlikely to be undertaken by either the Australian or Queensland governments,
under which the majority of the Company's foreign titles were issued or
derived.

Foreign Currency

Due to the nature of the Company's activities, portions of the Company's
operating capital may at times be held in various foreign currencies.  This
subjects the Company to the risk of currency fluctuations and changes in
rates of conversion for different currencies.  Additionally, sales of oil and
gas produced from concessions in foreign countries in which the Company has
or may acquire an interest may be subject to governmental regulations which
restrict the free convertibility of funds received from such sales, and all
remittances of funds out of these countries will require the approval of the
applicable government's exchange control agency.  The Company is of the
opinion that the current exchange control laws of Australia will not
unreasonably delay the remittance of funds generated in Australia to the
Company in the United States.

Foreign Taxes and United States Tax Credits

As a result of its operations abroad, the Company is subject to the
imposition of taxes by foreign governments upon the Company's income derived
from foreign jurisdictions.  Such taxes are of various types, with differing
tax rates, and are subject to change.  Generally, the Company's income from
a foreign jurisdiction will be taxed in the same manner as that for other
companies operating in the jurisdiction, but discriminatory taxation by a
particular jurisdiction may occur.  The current corporate income tax rate in
Australia is 33% of net profits.

The Company's income is also subject to taxation under the United States
Internal Revenue Code of 1986, as amended (the "Code").  The Code provides
that a taxpayer may obtain a tax credit for certain taxes paid to a foreign
country or may take a deduction for such taxes.  A tax credit is generally
more favorable than a deduction.  The tax credit applicable to particular
foreign income arises when such income is included in the Company's taxable
income under the provisions of the Code.  There are, however, substantial
restrictions and limitations on the amount of the tax credit that can
actually be claimed.

Employees

The Company employs eight persons (including the executive officers), all of
whom serve the Company as needed on a part-time basis.


(d) Financial Information About Foreign and Domestic Operations

                                        1995          1994        1993   
         Oil and Gas Revenues
            United States           $   79,775   $  106,085   $  107,900 
            Australia               $  131,045   $  131,034   $  122,200 

          Other Revenues
            United States           $2,465,384   $2,234,077   $1,546,710 
            Australia               $        -   $        -   $        -

         Operating Profit or Loss
           (Before Income Taxes)
            United States           $1,042,444   $  244,129   $  303,314 
            Australia               $   96,585   $   48,677   $  (70,175)

         Identifiable Assets
            United States           $4,732,421   $3,030,520   $2,194,695 
            Australia (1)           $1,270,772   $1,598,982   $1,113,246 


     (1) According to applicable accounting regulations, the Company may not 
         show certain properties such as the ORRI under ATP 298P, and 4/5ths
         of the ORRI under ATP 299P as having a book value because they were
         acquired from related parties in exchange for stock; therefore, the
         book value of these properties is "0".   


Item 2.  Description of Property

(a) Salt Water Disposal Properties

In the past three years GTRO has acquired seven salt water disposal
facilities, and has achieved a dominant position in one of the premier gas
producing areas in the United States.  Salt water is produced along with oil
and gas, and governmental regulations require the salt water to be disposed
of in an environmentally safe manner.  The Company is in the primary business
of injecting the salt water back into the ground in another salt water
bearing zone to protect all fresh water zones from being contaminated.  The
Company injects from 350,000 to 400,000 barrels of water per month and is
paid a fee for this service by the oil and gas producers.

GTRO acquired its first salt water disposal property, OCR Investments, Inc.
(OCR), a company operating a salt water disposal facility at a profit in the
Zapata-Laredo area of Texas during 1993.  During 1994 the Company continued
increasing its revenues with the acquisition of a highly profitable company,
Transcon Energy Corp. (Transcon) which has three disposal facilities in the
same general area as OCR.  Transcon, like OCR, provides salt water disposal
services for oil field operations in an area of active drilling for deep gas,
making the prospects for continued profitability excellent.  Transcon also
provides drilling rig services, including fresh water sales for drilling and
poly pipe rentals and sales.  The addition of Transcon's gross revenues to
GTRO during 1994 caused GTRO to become profitable.  Also during 1994, the
Company acquired 50% of Jim Wells Salt Water Disposal Inc. (Jim Wells).  This
company operates a facility near Alice, Texas, which is northeast of the
Transcon and OCR disposal area.

Because of the tremendous performance of its salt water disposal facilities
in 1994, GTRO continued expanding this business during 1995 by purchasing the
remaining 50% of Jim Wells, plus purchasing 100% of another facility, County
Line Disposal Plant.  In addition to these purchases, OCR opened a new
facility, Chihuahua.  These new facilities are expected to generate an
estimated $600,000 per year in gross revenues.  The Company installs new
facilities in response to new gas discoveries and the location of competing
facilities.  For example, the new Chihuahua facility was installed in
September 1995 to take water from a recently discovered 500 BCF gas field. 
During only its second month of operation, Chihuahua disposed of 71,729
barrels of water (revenues of about $28,000 for that month).

Six of GTRO's seven disposal sites are located in Webb and Zapata counties. 
Webb County produces more gas than any other Texas county, while Zapata
County ranks second or third.  GTRO's competition is limited, with few other
facilities located in the area.  The majority of the production in the area
consists of gas from the lower Wilcox Lobo Trend.  According to the U. S.
Department of Energy, the trend is estimated to contain total reserves of
14,962 BCF.  Considering that most of the significant Lobo fields are located
in Webb and Zapata counties, and considering that all production from the
counties (not just Lobo production) totals 650 BCF per year, it is
conceivable that production from the Lobo could continue near the current
rate for over twenty years, given adequate gas prices to stimulate additional
drilling.

In summary, gas production, along with the associated salt water production
in GTRO's operating area, should be substantial for years to come.  GTRO's
total revenues from disposal fees as described above, and other oil field
services (described in the following paragraph) totalled $1,789,864 during
1995.

In addition to the salt water disposal services, the Company also provides
oil field services including fresh water supply, sales and rental of poly
pipe and pumps, back filling drilling mud pits, sand blasting, and steam
cleaning.  One of the Company's subsidiaries, Transcon, has access to water
rights for fresh water from the Rio Grande River.  The fresh water is sold to
drilling rigs by laying polypropylene pipeline from the river to the drill
sites, and by trucking the fresh water to other drill sites.  Of course,
revenues from this service can fluctuate depending on factors such as
drought,when demand for the water would be greater, or over-supply when
demand would be less.  These oil field services currently account for about
$25,000 to $50,000 in revenues per quarter.

Additional information on the salt water disposal business is available under
"Narrative Description of Business - General - Salt Water Disposal and Rig
Services."

(b) Tire Disposal/Recycling

During 1995 the Company purchased tire shredding equipment and leased it to
Southwest Tire Processors Inc. which owns a tire disposal/recycling facility
in Socorro, New Mexico that is reported to be the most efficient and modern
type in the southwest.  It is the only permitted tire disposal/recycling
facility in New Mexico and can accept tires from anywhere in the United
States.  Because of environmental and storage problems with used tires,
Southwest Tire Processors is now capitalizing on the need to dispose of used
tires.  GTRO's equipment shreds the tires into 2" by 3" chunks, and is
capable of shredding three ton tires into chunks in 10-15 minutes and
averages 35 tons per hour.  The material can then be sold for use in such
things as asphalt for highways, mats, hoses, and tennis shoes.

The plant charges $100 or more per ton for disposal and then sells the
shredded material for $25-$50 per ton.  Southwest Tire Processors has
contracts with the State of New Mexico and the State of Arizona for tire
disposal at $140.00 per ton, and has contracts with the Department of Defense
to buy the shredded rubber for use on military bunkers.  The company also
sells the shredded rubber to a company that recycles rubber into new tires.

GTRO's gross income from this business totalled $593,616 in 1995.  After
recovering its initial investment and a profit, GTRO will have a 10% interest
in the gross revenues of the operation.

Plans for 1996 include the purchase of crummer equipment which further shreds
the 2" by 3" chunks into pellet size, removing the steel and nylon fibers. 
This process increases the value of the rubber because its uses become even
more versatile.

(c)  Apache Ranch

During 1995 GTRO acquired the remaining portion of the ranch land in New
Mexico which it had purchased an interest in during 1994.  The 13,500 acre
Apache Ranch adjoins the Mescalero Indian Reservation near Ruidoso, New
Mexico, and the ski resort area.  This property offers many possible sources
of revenue including sporting activities, camping, hunting, timber, real
estate development, and livestock grazing, plus potential easement revenues
as certain projects develop for the Mescaleros.

The land includes one of the largest herd of elk in the western United
States, and is inhabited by a large variety of additional wildlife including
deer, turkey, oryx, mountain lion and bear.

Apache Ranch began generating revenues in 1995 with the sale of two forty
acre tracts of land, and a contract for a year's cattle grazing rights.  GTRO
plans to sell two to three additional forty acre tracts without affecting the
overall acreage position or the natural habitat.

(d) Oil and Gas Properties

General

As of December 31, 1995, the Company owned royalty interests and ORRI's in
oil and gas wells primarily located in the states of Arkansas, Colorado,
Kansas, New Mexico, Oklahoma and Texas.  The Company also has a few working
interests further defined under Working Interests - Domestic. These domestic
oil and gas interests generated $79,775 for the year ended December 31, 1995.

Most of the U.S. leases in which the Company owns interests provide that such
leases will continue in existence as long as oil and gas are produced on the
related properties.  The duration of the Australian concessions in which the
Company owns interests is discussed generally in the following section.

Australian Properties

A significant portion of the Company's oil and gas properties consist of ORRI
under concessions that explore for oil and natural gas granted by the State
of Queensland, Australia.  Each of these concessions, called an Authority to
Prospect ("ATP"), has a term of four years.  The area covered by an ATP is
reduced by relinquishment of approximately one-fourth of the area at the
start of the third year of its effectiveness and an additional one-fourth of
the original area at the start of the fourth year of its effectiveness.  The
area to be relinquished is chosen by the holder of the ATP.  An ATP does not
require that any specific work, such as drilling or geological or geophysical
work, be performed by  the holder, but does require that the holder prospect
continuously and expend a specified minimum sum over the term of the ATP for
such prospecting efforts.  Applications for renewal may be filed at the time
of expiration of an ATP.

The Company has 1,667,946 net royalty acres under 23,449,800 gross surface
acres in Australia.  Each of these Australian interests held by the Company
is in the form of an ORRI, with the exception of ATP 538, 554, and 615, which
are concessions in which the Company holds a WI.  These WI concessions cover
17,500,000 acres.  ORRI entail no expenditures by the Company for exploration
or drilling expenses.

Oil revenues from Australia totalled $131,045 from ATP 267P and ATP 299P
during 1995.  Transportation costs to market the crude oil totalled $67,755.

Reserves

The majority of the Company's reserves are in overriding royalty and royalty
interests on which data is not available for reserve estimates.  If estimates
or proved reserves were prepared for the Company's royalty and overriding
royalty interests, the ORRI under ATP 299P in Australia would account for the
majority of the Company's proved oil reserves attributable to these
interests.  The ATP 299P working interest holders have not supplied the
Company with information deemed necessary for meaningful reserve
calculations.  Most of the Company's domestic royalty interests are small,
and the Company is of the opinion that obtaining information necessary for
meaningful reserve calculations would involve unreasonable effort or expense. 
Oil production attributable to the Company's royalty and overriding royalty
interests provided approximately 95% of the Company's production income
during the fiscal year ended December 31, 1995.

Since the Company's working interests provide such a small percentage (5%) of
the Company's total oil and gas income, it was determined that unreasonable
effort and expense would be required to prepare a reserve report on these
interests.  Therefore, the 1994 reserve estimates were rolled forward to 1995
without additional analysis.  See "Supplementary Data for Reserves of Oil and
Gas" under Item 8.  Financial Statements and Supplementary Data.

No estimates of total proved oil or gas reserves were filed by the Company
with, or included in reports to, any federal authority or agency other than
the Securities and Exchange Commission since the beginning of the Company's
last fiscal year.

Average Sales Price and Production Costs

The following table sets forth the average sales price per unit of
production.  Sales prices are based on market prices determined at the point
of delivery from the producing unit.  Production or severance taxes have not
been deducted in determining the average sales price, but rather are included
as part of production costs.  No sales prices of gas are shown for Australia
because the Company had no production of gas in Australia during the relevant
reporting periods.  The average production (lifting) costs per unit of
production are not presented because the majority of the Company's interests
are royalties and overriding royalties, which entail no deductions for
lifting costs.  Additionally, the operators of the Company's working
interests have not provided the Company with information concerning
production (lifting) costs.  The Company's working interests are small, and
the Company is of the opinion that obtaining information necessary for
disclosure of production (lifting) costs would involve unreasonable effort or
expense.

                               United States              Australia     
                            Average Sales Price     Average Sales Price 
   Fiscal Year Ended          Oil         Gas                 Oil         
December 31, 1995           $16.30       $ 1.29              $US18.09
December 31, 1994           $14.71       $ 1.34              $US18.30
December 31, 1993           $16.01       $ 1.35              $US18.49

WORKING INTERESTS - DOMESTIC

Productive Wells and Developed Acreage

In 1994 the Company acquired working interests in eight oil and gas leases
with twelve wells located in Eastland, Callahan and Coleman counties of
Texas.  Three additional wells have been drilled on these leases.  During
1995 the Company converted six of these working interests to either an
override or carried working interest status.  Each lease is held by
production with developmental potential.  A drilling program has been planned
on each of these leases.  The first lease to be funded was drilled in
December 1995.  Subsequent to year end two wells were completed as producers
building additional production.  GTRO has a 5% carried working interest in
these new wells which are producing approximately 20 barrels per day. 
Additional drilling on this lease is planned for May 1996.

Revenues from these leases are currently marginal; however, as new wells are
added to each of these leases, revenues will increase, especially since these
interests do not pay any of the drilling, completion and monthly expenses. 
Subsequent to the end of the 1995 fiscal year, oil and gas prices increased
which will aid in the funding of the drilling programs planned on these
leases.

Non-Productive Acreage

GTRO holds a 30% interest in approximately 13,000 acres of long-term leases
located in the Overthrust Belt in Arizona.  The primary prospect in this
lease play, the Cochise Overthrust Prospect, has 3,500 feet of closure.  A
structure of this size would rank among the top oil and gas structures in the
United States, if found productive.  GTRO etal. is planning to farm out the
working interest to someone interested in the drilling of this giant
structure with a view to recapture all out of pocket expenses and retain an
override.

WORKING INTERESTS - AUSTRALIA

On October 1, 1995, Oil Seeps Inc. ("Oil Seeps") was awarded a 12,900,000
acre oil and gas concession - ATP 615.  GTRO owns 20% of Oil Seeps and
participated with a group through Oil Seeps to apply for this concession. 
Subsequent to the end of the fiscal year, a letter of intent was signed where
GTRO and its partners will retain an override and make a profit on the sale. 
GTRO's part will be a 1% override and approximately $15,000 cash profit on
the sale.

The table below sets forth the undeveloped acreage in Australia  in which the
Company held WI as of December 31, 1995.  Working interests are acquired by
the Company with a plan to farm out operations while retaining overriding
royalty or carried working interests where feasible.

                                        GTRO's      Net
                              Gross     Working      WI
                     Area     Acres    Interest    Acres     

                     538     3,440,000     7.5%    258,000
                     554     1,160,000     7.5%     87,000
                     615    12,900,000    20.0%  2,580,000

ROYALTY AND OVERRIDING ROYALTY INTERESTS - DOMESTIC

See (d) Oil and Gas Properties - General.

OVERRIDING ROYALTY INTERESTS - AUSTRALIA

The following table sets forth the name of each Australian concession in
which the Company had an ORRI as of December 31, 1995 and upon which
productive wells had been drilled, the percentage interest of the Company
therein, the number of such wells, the gross acreage of each concession, and
the net royalty acres held in each concession.

                                         GTRO's       Net
              Area &           Gross    Royalty    Royalty
            No. of Wells       Acres    Interest     Acres          

          267 - 21 oil wells   744,000  0.46709%    27,800
          299 - 30 oil wells   861,000  1.46307%   100,776

The following table sets forth the undeveloped acreage in which the Company
had ORRI's in Australia as of December 31, 1995.  The Company had no royalty
or ORRI's in undeveloped acreage in the United States as of December 31,
1995.

                                       GTRO's     Net
                             Gross     Royalty   Royalty
                    Area       Acres   Interest   Acres 
 
                     166       662,000   0.301%    15,900
                     261       151,000   0.500%     6,040
                     333        95,800   0.200%     1,530
                     415       932,000   1.463%   109,000
                     538     3,440,000   0.623%   172,000
                     542     3,030,000   1.200%   291,000
                     543     2,340,000   0.500%    93,600
                     550       704,000   0.500%    28,200
                     560     1,080,000   0.800%    69,100
                     582     9,410,000   1.000%   753,000

The total of the producing and non-producing acreage in Australia under which
GTRO holds interests is 1,667,946 net royalty acres under 23,449,800 gross
surface acres.

Present Activities - ORRI

The most notable news occurring in 1995 on GTRO's Australian overrides was
the Tarbat #2 testing 2,700 barrels of oil per day on ATP 299.  GTRO has a
1.463% of gross production interest in this lease, less transportation costs. 
The addition of the Tarbat #2 well increases the total number of wells on ATP
299 to thirty wells in eleven different oil fields.  Each oil field has
numerous undrilled locations, causing a tremendous upside potential for the
further development of ATP 299.

Three additional wells have been announced for drilling on ATP 299, Bingil
#1, Milkaree #1 and Teebala #1.  These wells are to be drilled on separate
structures from the eleven oil fields previously mentioned.

Other drilling plans include: two wells on ATP 267P, as many as ten wells on
ATP 543, one well on ATP 542, one well on ATP 560, and one or more wells on
ATP 582.   Australian activity has been on the increase since the last
quarter of 1995.  It is difficult for operators to initiate drilling programs
during the rainy season which normally ends in March.

A key note to understand is that there have been less than 7,000 wells
drilled in the entire country of Australia, which is basically the same size
as the continental United States.  Current technology coupled with better
understanding of the geology has led to substantial discoveries both onshore
and offshore of Australian.

The Company's override position has primarily been focused on the Eromanga
Basin.  This basin has the very prolific Exxon-Santos producing block.  The
Exxon-Santos block produces approximately $700 million worth of oil and gas
per year, and contains about one billion barrels equivalent estimated
remaining proved and recoverable reserves.  This huge production is the
enticement that has attracted operators to the Eromanga Basin.

(e) Office Facilities

Until September 1, 1995, the Company's offices were located at 1301 Avenue M,
Cisco, Texas.  These offices were leased from U. S. Representatives for
$975.00 per month.  The Company's corporate office is now located at 8504
Sonoma Valley N.E., Albuquerque, New Mexico 87122, and is provided by Kenneth
Owens, Chairman of the Board and President.  In addition, the Company's
subsidiaries, OCR and Transcon, have offices in Zapata, Texas, also provided
by Mr. Owens.  Rent in the amount of $5,725 was paid to Kenneth Owens in 1995
for these facilities.  The Company also maintains an office at 104 Oak
Street, Springtown, Texas 76082, which handles the stock transfer agent
duties for the Company, plus houses computers and other equipment used for
maintaining the mailing lists, printing envelopes etc.  Karen Lee, Director
of the Company, is paid $300 per month for these facilities.

(f) Other Properties/Assets

The Company owns various portfolio securities.  For a description thereof,
see Note 4 to the Consolidated Financial Statements included herein under
Item 8.


Item 3.  Legal Proceedings

As of March 11, 1996, there were no material legal proceedings to which the
Company or any of its subsidiaries was a party or of which any of their
properties was the subject.


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

Not applicable.


                                 PART III

Item 5.  Market for Registrant's Common Equity and Related Stockholder
Matters

The only class of common equity security authorized by the Company's Articles
of Incorporation, as amended, is the Company's Common Stock, $.001 par value. 
The Company's Common Stock is traded in the over-the-counter market.  The
range of high and low bid quotations for each quarter during the last two
fiscal years, as quoted in the National Association of Securities Dealers'
Automatic Quotation ("NASDAQ") System under the symbol "GTRO", is set out in
the table that follows.  These quotations reflect inter-dealer prices,
without retail mark-up, mark-down, or commission and may not necessarily
represent actual transactions.

        Year Ended December 31, 1995      Year Ended December 31, 1994 
                      High     Low                     High       Low 
1st Quarter         1  1/8      7/8    1st Quarter    1 3/16       7/8 
2nd Quarter          15/16      1/2    2nd Quarter    1 1/32     11/16
3rd Quarter*        2  7/8  1   7/8    3rd Quarter    1          11/16
4th Quarter*        3 3/16  2 11/16    4th Quarter    1           9/16
       
*after 1-for-2.5 reverse split

As of March 11, 1996, there were approximately 8,171 holders of record of the
Company's Common Stock, plus an undetermined number of stockholders who hold
their stock in street name.

Dividends

The Company has not paid cash dividends on its Common Stock and does not
anticipate the payment of cash dividends in the foreseeable future.  Payment
of future cash dividends will be within the discretion of the Company's Board
of Directors and will depend, among other factors, on earnings, capital
requirements and the operating and financial condition of the Company.  The
Company paid a 5% stock dividend to stockholders of record each year from
1983 through 1990.  The payment of future stock dividends will be within the
discretion of the Board of Directors.


Item 6.  Selected Financial Data

                               Years Ended December 31
                   1995        1994        1993        1992       1991  
Operating
 revenues       $2,676,204  $2,471,196  $1,776,810  $ 585,032   $ 192,360 

Income (loss)
 from oper-
 ations         $  636,594  $  548,593  $  179,410  $(194,192)  $(148,212)

Income (loss
 from oper-
 ations per
 share (1)      $      .16  $      .15  $      .06  $    (.08)  $    (.25)

Total assets    $6,156,025  $4,984,665  $4,021,449  $2,891,343  $1,258,964

Long-term
 debt           $   19,486  $    5,991  $        -  $       -   $        - 

(1) Per shares amounts have been restated to reflect the 1-for-20 reverse
split in 1993 and the 1-for-2.5 reverse split in 1995.

NOTE: The Transcon acquisition was accounted for by the pooling of interests
method.  Columns for 1992-1994 have been adjusted to include the activities
and assets of Transcon for those periods on a pooling basis.


Item 7.  Management's Discussion and Analysis of Financial Condition and
Results of Operations

General Discussion

The fiscal year ended December 31, 1995 marked the first full year of
Transcon Energy's operations under GTRO as a wholly owned subsidiary.  The
results are exceptional.  Revenues from the south Texas operations allowed
GTRO to expand into other areas to further build assets and revenues.  During
the first quarter of 1995 the Company purchased tire shredding equipment and
leased it to Southwest Tire Processors.  The equipment is second to none in
size in the southwest United States handling tires up to 7,000 pounds. Another
key factor in attracting GTRO toward involvment with Southwest Tire Processors
is that they are the only permitted facility within the state of New Mexico.
Rental revenues from this equipment for GTRO were $593,818.  GTRO's total
investment in the tire shredding equipment was $488,300.

Another major investment was the purchase of more than 10,000 acres of land in
the Ruidoso area of New Mexico.  The purchase of this acreage was approximately
$500,000.  During the fourth quarter, two forty acre tracts were sold which
generated $83,600 in profits for the Company.

Expanding the south Texas service operation also occurred during the year.  OCR
Investments, a wholly owned subsidiary of the Company, built a new facility in
a prime location to accommodate additional formation water generated in the
area.  This new disposal went on line during October 1995 building revenues each
month.  The cost of construction of this facility was about $125,000.

The outlook for each of the Company's market segments is exciting for 1996.  Oil
and gas prices have climbed significantly during the first quarter of 1996,
which has caused an increase in production and drilling activity in the deep gas
fields of south Texas where the Company's subsidiaries are located.  Disposal
fees are up, rig service fees are increasing, and fresh water sales have also
increased dramatically.

It is important to note the financial statements accompanying this report are
consolidated with Transcon and OCR and are combined for all periods presented. 
Pooling of interests is the accounting reporting procedure used in the
acquisition of Transcon.  This type of reporting procedure requires the
registrant to report the financial statements on a consolidated basis for the
past three years on the income statement and two years on the balance sheet. 
GTRO acquired Transcon on August 1, 1994.

Assets

Total assets grew $1,171,360, representing a 23% growth.  Total assets on
December 31, 1995 were $6,156,025 compared to $4,984,665 on December 31, 1994. 
This increase in assets is primarily attributable to the increase in property
and equipment (Apache Ranch and tire shredder equipment).  In addition to these
two major acquisitions, the Company acquired another disposal site in south
Texas and increased its ownership in Jim Wells SWD, Inc. to 100%.  It is
important to note that GTRO and its subsidiaries made each of these acquisitions
without incurring debt; as of year end they were fully paid and no debt was
outstanding on these newly acquired assets.  Each of these projects were either
funded with the issuance of stock or with cash from the south Texas operations.

Current liabilities amounted to $451,799 on December 31, 1995, of which $300,359
is deferred income taxes.  GTRO has a carried forward tax loss which eliminates
this tax liability.  Accounting reporting procedures require the presentation
of the tax liability as if tax was payable.  Under other assets $363,454 is
listed as a deferred federal tax asset.

The allocation of the $101,094 accounts payable is $31,703 from Transcon,
$14,495 from OCR, $2,029 from Jim Wells and $49,463 from GTRO's general account.
Transcon, OCR and Jim Wells accounts payable are related to their normal
operations.  Of the $49,463 on GTRO's general account, $35,000 was incurred on
the purchase of the Company's stock.

The ratio of current assets to current liabilities represents GTRO's liquidity
ratio.  The liquidity ratio was 5.92:1 on December 31, 1995, 9.52:1 on December
31, 1994, and 2.56:1 on December 31, 1993.  The decline in the Company's
liquidity ratio is directly related to current liabilities increasing due to the
addition of $300,359 in deferred income taxes.  A significant portion of the
current assets is the Transcon accounts receivable.  It is not uncommon for
receivables to be high when providing services to energy companies.  A major
part of these receivables are from one customer.  This customer has always paid
on a 90 to a 120 day paying cycle.

On December 31, 1995, GTRO's stockholders' equity was $5,631,845 which further
illustrates the liquidity and financial soundness of GTRO, as the total assets
are $6,156,025.  Stockholders' equity was $1.47 per share on December 31, 1995
compared to $1.27 per share on December 31, 1994.  GTRO plans to continue the
policy of making acquisitions without incurring bank debt.  The cash flow is
expected to fulfill the obligations planned for 1996.

Revenues

Record revenues were reported for 1995 reaching $2,676,204 which is up $205,008
over the previous year and $899,394 over the year ended December 31, 1993.  The
most significant change in revenues came from the rental of certain tire
shredding equipment to Southwest Tire Processors.  Revenues of $593,818 were
reported from this lease agreement.

Disposal fees from each of the Company's south Texas subsidiaries were
$1,415,025 from Transcon, $352,486  from OCR and $22,353 from Jim Wells for a
total of $1,789,864.  Revenues from the south Texas operations began to improve
during the end of the fourth quarter.  The record winter weather for the United
States has caused a demand for natural gas which has increased gas prices,
causing production and drilling to increase in the south Texas area where GTRO's
subsidiaries operate.  Subsequent to year end, record disposal fees were being
recorded as well as fresh water sales being up dramatically for new wells being
drilled.

The Company continues to play an active role in Australia as it was a part of
a group that was awarded a 12,900,000 acre oil and gas concession in western
Queensland.  GTRO holds a 20% interest in this area.  Subsequent to year end a
contract was signed selling all of the working interest and retaining a 1%
override for GTRO, plus making a profit of approximately $15,000 on the sale.

Revenues from the Company's Australian production totaled $131,045 for the year
ended December 31, 1995 which was approximately the same as the previous year
($131,034).  In October 1995 a new well was discovered on ATP 299 which tested
2,700 barrels of oil per day.  Production from this well should enhance revenues
from ATP 299 during 1996.  GTRO holds a 1.463% override under this 861,000 acre
concession.

Several wells are planned for drilling on the Company's Australian overrides in
1996.  For more information see Present Activities - ORRI on page 11.

Domestic oil income declined during 1995 to $79,775 as oil prices remained in
the mid-teens during most of the year.  Subsequent to year end, oil prices began
to climb which will have an effect on the 1996 oil revenues generated from the
Company's domestic overrides.  Drilling programs are planned on certain
properties in which the Company now holds carried working interests.  Successful
drilling on these properties will also be beneficial to the Company's domestic
oil revenues.

Operating Expenses

Most expense categories declined in 1995 as reflected in total operating
expenses being $1,086,515 compared to $1,479,685 in 1994.  Management fees were
not taken during 1995 as agreed in the acquisition agreement with Transcon and
OCR.  Three categories did increase in 1995 which were all related to expanding
and improving the Company's operation.  These categories were depreciation,
depletion and amortization, personnel costs and repairs and maintenance.

Management plans to continue to seek methods to streamline its costs without
hampering  service to its clients in the south Texas operations, or its
corporate obligations to the investment community.

Net Income

Net income before taxes was $1,139,029 in 1995 compared to $292,806 for 1994 and
$235,129 for 1993.  This growth represents a 389% increase over 1994 and a 484%
increase over 1993.  On a per share basis the net income before taxes is 29
cents per share for 1995 and 8 cents per share for 1994.  Management is very
pleased to report these net income figures and this record growth.

Net income for 1995 was $636,594 which is net after a tax expense of $451,655,
when in fact the Company does not have a federal tax liability due to its
carried forward federal tax loss.  In 1994 the net income of $592,835 was
actually enhanced by a tax credit of $357,798 which was a one time adjustment
after the acquisition of Transcon Energy.

Management is very pleased with 1995 and looks forward to 1996 with excitement
as GTRO seeks additional projects to further build revenues which complement the
Company's existing operations.


Item 8.  Financial Statements and Supplementary Data

The following financial statement information for Golden Triangle Royalty & Oil,
Inc. and subsidiaries is set forth below.

            - Report of Independent Certified Public Accountant
            - Consolidated Balance Sheets
            - Consolidated Statements of Operations
            - Consolidated Statements of Changes in Shareholders'Equity
            - Consolidated Statements of Cash Flows
            - Notes to Consolidated Financial Statements
            - Supplementary Data - Reserves of Oil and Gas


       --------------------------------------------------------------
<PAGE>

              REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT

Board of Directors
Golden Triangle Royalty & Oil, Inc.
Albuquerque, New Mexico

We have audited the accompanying consolidated balance sheets of Golden Triangle
Royalty & Oil, Inc. and Subsidiaries as of December 31, 1995 and 1994, and the
related consolidated statements of operations, changes in shareholders' equity
and cash flows for each of the three years ended December 31, 1995, 1994 and
1993.  These financial statements are the responsibility of the Company's
management.  Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. 
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Golden Triangle Royalty & Oil,
Inc. and Subsidiaries at December 31, 1995 and 1994, and the results of its
operations and its cash flows for each of the three years ended December 31,
1995, 1994 and 1993 in conformity with generally accepted accounting principles.

 /s/ ROBERT EARLY & COMPANY, P.C.
Robert Early & Company, P.C.
Abilene, Texas


March 15, 1996

<PAGE>

               GOLDEN TRIANGLE ROYALTY & OIL, INC.
                    CONSOLIDATED BALANCE SHEET


                                                      December 31     
                                                   1995           1994  
                              ASSETS
CURRENT ASSETS
 Cash                                           $   86,255   $   236,235
 Accounts receivable - trade          		   958,436       600,505
 Accounts receivable - related parties              92,997             -
 Accounts and notes receivable - other               3,888       150,629
 Investments                                         5,427        10,644
 Prepaid expenses                                   61,150        50,000
 Total Current Assets                            1,208,153     1,048,013

PROPERTY AND EQUIPMENT
 Oil and gas properties (full cost method)
  Proven                                         2,368,896     2,281,418
  Unproven                                         405,107       510,418
  Production equipment                           1,959,525       863,197
  Office furniture and equipment                    40,681       210,534
  Equipment under capital lease                          -        20,082
  Well leasehold and water rights                  259,872       200,000
  Land                                             532,454       118,958
  Accumulated depreciation, depletion and
   amortization                                 (1,099,991)     (929,381)
      Net Property and Equipment                 4,466,544     3,275,226

OTHER ASSETS
  Restricted cash                                      580         5,156
  Investment in subsidiary                           5,000        84,262
  Accounts and notes receivable - long term         82,470         2,932
  Printing supplies inventory (at cost)                  -        13,422
  Prepaid services                                       -        50,000
  Goodwill (net of amortization)                    29,824        14,536
  Deferred federal tax assets                      363,454       491,118
       Total Other Assets                          481,328       661,426
TOTAL ASSETS                                    $6,156,025    $4,984,665

               LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Accounts payable                             $  101,094    $   26,734
   Accrued expenses                                 23,167        15,281
   Accrued income taxes                             21,743        21,400
   Notes payable - related parties                       -        16,997
   Deferred income taxes - current                 300,359        22,247
   Note payable - current portion                    5,436             -
   Capital lease liability                               -        13,205
TOTAL CURRENT LIABILITIES                          451,799       115,864

   Note payable (net of current portion)            19,486             -
   Deferred income taxes - non-current              52,895         7,075
TOTAL LIABILITIES                                  524,180       122,939

STOCKHOLDERS' EQUITY
   Common stock, $.001 par (100,000,000
   authorized 3,832,967 and 3,832,967
   shares outstanding)                               3,833         3,833
   Stock subscribed (115,600 shares)               195,320             -
   Paid-in capital                               6,938,200     6,923,200
   Treasury stock (26,701 shares)                  (71,780)            -
   Unrealized gain/(loss) on securities
   held for sale                                    (5,015)            -
   Accumulated deficit                          (1,428,713)   (2,065,307)
   Net Stockholders' Equity                      5,631,845     4,861,726
TOTAL LIABILITIES AND STOCKHOLDERS'
    EQUITY                                      $6,156,025    $4,984,665

The accompanying notes are an integral part of these financial statements.
<PAGE>

               GOLDEN TRIANGLE ROYALTY & OIL, INC.
              CONSOLIDATED STATEMENTS OF OPERATIONS


                                             Year Ended December 31     
                                           1995       1994         1993 
OPERATING REVENUES                                               
Disposal fees & service
 revenues                               $1,789,864  $2,161,614  $1,538,634
Oil and gas production                     210,820     237,119     230,100
Rental income                              593,818           -          -
Other income                                 1,657       4,151       8,076
Gain on sale of assets                      80,045      68,312           -
   Total Operating Revenues              2,676,204   2,471,196   1,776,810

COSTS OF REVENUES
Australian marketing costs                  67,755      68,052      46,994
Production expenses and taxes               10,238      13,714      15,210
Contract services                           68,498     227,534     235,988
Direct materials and supplies              167,305     170,562     171,613
Lease cost                                  80,738      66,299      42,391
Utilities                                   52,170      41,814      20,806
   Total Costs of Revenues                 446,704     587,975     533,002
GROSS PROFIT                             2,229,500   1,883,221   1,243,808

OPERATING EXPENSES
Depreciation, depletion and                                      
 amortization                              275,126     185,896     142,512
Personnel costs                            288,112     222,092     168,058
Management fees                                  -     617,427     406,758
Directors' fees                              5,000      20,000      50,000
Professional fees                           68,366      69,544      48,273
Ranch operations                            53,339           -          -
Advertising and promotion                  130,798     189,990      40,605
Stockholder relations                       29,358      53,117      32,867
Repairs and maintenance                     87,349      47,051      39,590
Other expenses                              97,750     129,138      50,709
Rent                                        22,375      18,618      20,475
Taxes                                       27,361      26,812      18,029
Bad debts                                    1,581           -       2,333
   Total Operating Expenses              1,086,515   1,579,685   1,020,209

INCOME FROM OPERATIONS                   1,142,985     303,536     223,599

OTHER INCOME (EXPENSES)
Interest and dividend income                 1,823       4,804       8,767
Equity in subsidiaries' income             (12,077)      4,262          -
Unrealized gains (losses) on
  marketable securities                          -      (2,854)    (56,257)
Gain (loss) on sale of securities             (199)    (31,014)     36,533
Stock transfer fees                         21,095      16,530      36,422
Interest expense                           (14,598)     (2,458)    (13,747)
Foreign exchange gain (loss)                     -           -        (188)
INCOME BEFORE INCOME TAXES               1,139,029     292,806     235,129
Australian income taxes                     20,200      19,547      27,926
Current income tax expense                  30,580      82,464       5,635
Deferred income tax expense                451,655    (357,798)     22,158
NET INCOME                              $  636,594  $  548,593  $  179,410
Weighted Average Shares
 Outstanding                             3,880,521   3,627,416   2,985,791
INCOME PER SHARE                        $     0.16  $     0.15  $     0.06


The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
Statement of Changes in Stockholders' Equity
<CAPTION>

                              GOLDEN TRIANGLE ROYALTY & OIL, INC.
                     CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

                                                                     Additional                      Accumu-              Unrealized
                                   Common Stock   Stock Subscribed      Paid in   Treasury Stock      lated       Deferred    Gains
                                  Shares    Amount  Shares   Amount      Capital  Shares   Amount      Deficit    Services  (Losses)
<S>                             <C>         <C>      <C>      <C>       <C>        <C>     <C>      <C>          <C>        <C>
Balances at 12-31-92            3,152,634   $3,152       -        -     $5,433,285      -  $     -  $(2,872,451) $    -     $    -
 Issued for cash                  433,824     434                          349,866
 Issued for acquisition of OCR    316,949     317                          257,204                       79,142   
 Issued for directors' fees        37,539      38                           49,962
 Issued for accrued salary        133,334     133                           47,867
 Issued for royalty interests      82,676      83                           61,025
 Options issued for deferred
    services                                                                46,200                                 (46,200)
 Proceeds from short-swing
   profits                                                                   3,166
 Net income for year                                                             -                      179,410
Balances at 12-31-93            4,156,956    4,157       -        -      6,248,575      -        -   (2,613,899)   (46,200)       -
                                           
 Issued for cash                  756,400     756                          429,824
 Purchase of small position
   stock                          (3,889)     (4)                          (3,496)
 Issued for royalty interests     458,100     458                          199,961
 Issued for acquisition of
    Transcon Energy             4,148,148    4,148                         (4,148)
 Issued for services               60,000      60                           46,742
 Net income for year                                                                                    548,593     46,200 
Balances at 12-31-94            9,575,715    9,575       -        -      6,917,458      -        -   (2,065,306)       -         -

Effect of 1-for-2.5 reverse
    stock split                 (5,742,748)  (5,742)                         5,742
Proceeds from short-swing
     profit                                                                 15,000 
Subscribed by related parties
 for:
  Disposal site & equipment                          99,600  175,320
  1/2 of Jim Wells SWD                               16,000   20,000
 Purchases                                                                          17,375  53,620
 Accepted for fixed assets                                                          11,323  23,000
 Issued in promotional efforts                                                     (1,997) (4,840)
 Net income for year                                                                                    636,594      -      (5,015)
Balances at 12-31-95            3,832,967    $3,833  115,600 $195,320   $6,938,200  26,701 $71,780  $(1,428,712) $   -      $(5,015)

The accompanying notes are an integral part of these financial statements.
<PAGE>
</TABLE>

               GOLDEN TRIANGLE ROYALTY & OIL, INC.
              CONSOLIDATED STATEMENTS OF CASH FLOWS



                                              Year Ended December 31    
                                           1995       1994        1993
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                             $ 636,594   $ 548,593 $ 179,410 
  Adjustments to reconcile
   net income to net cash provided
   by operating activities:
   Depreciation, depletion and
   amortization                           325,126     235,896    142,512 
   (Gain) loss on sale of assets          (79,846)    (37,298)   (36,533)
   Directors' stock compensation                -       8,000     50,000 
   Payroll paid with stock                      -           -     48,000 
   Unrealized losses (gains) on
     marketable securities                      -       2,854     56,257 
   Equity in subsidiary's income           12,077      (4,262)         - 
   Deferred income taxes                  451,596    (357,798)    22,158 
  (Increase) decrease in:
   Accounts receivable                   (205,951)   (250,845)  (332,748)
   Inventories                             13,422      (5,767)    (3,458)
   Prepaid expenses                             -       5,480   (155,480)
   Restricted cash                          4,576      12,728    (14,560)
  Increase (decrease) in:
   Trade accounts payable                  74,360     (15,466)    (9,584)
   Accrued interest payable                     -           -     (5,359)
   Accrued expenses                         8,229      27,666       8,140
   Amounts due to/from related
    parties                              (109,994)   (338,446)   269,822 
NET CASH PROVIDED/(USED) BY
 OPERATING ACTIVITIES                   1,130,189    (168,665)   218,577 

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of property and 
   equipment                           (1,294,837)   (626,220)  (136,517)
  Purchase of marketable
   securities                                   -     (23,517)    (1,800)
  Loan payments received                      223           -          - 
  Cash from purchase of Jim Wells
   & OCR                                      658           -      7,196 
  Investment in unconsolidated
   subsidiary                              (5,000)          -          - 
  Proceeds from sale of assets             40,850     160,603     70,483 
NET CASH PROVIDED/(USED) BY
 INVESTING ACTIVITIES                  (1,258,106)   (489,134)   (60,638)

CASH FLOWS FROM FINANCING
 ACTIVITIES
 Proceeds from issuing common
   stock                                        -     430,580    350,300 
  Proceeds from short-swing
   profits                                 15,000           -      3,166 
  Purchase of small position
   and treasury stock                     (48,780)     (3,500)         - 
  Advances from related parties           181,000           -          - 
  Repayment of advances from
   related parties                       (181,000)          -    (51,727)
  Proceeds from notes payable              24,922           -          - 
  Repayment of notes and lease
   payables                               (13,205)          -   (135,000)
NET CASH PROVIDED/(USED) BY
 FINANCING ACTIVITIES                     (22,063)    427,080    166,739 

NET INCREASE/(DECREASE) IN CASH          (149,980)   (230,719)   324,678 
CASH - BEGINNING OF YEAR                  236,235     466,954    142,276 
  CASH - END OF YEAR                    $  86,255   $ 236,235  $ 466,954 

The accompanying notes are an integral part of these financial statements.
<PAGE>
      
                    GOLDEN TRIANGLE ROYALTY & OIL, INC.
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     December 31, 1995, 1994 and 1993

GENERAL INFORMATION

Golden Triangle Royalty & Oil, Inc. and its subsidiaries (the Company) are
engaged in the businesses of disposing of waste salt water which is produced
along with oil and gas, providing fresh water and related services to
drilling rigs, and ownership of passive (primarily royalty) interests in oil
and gas production.  The principal business is salt water disposal.  Salt
water is produced along with oil and gas and is required to be re-injected
back into underground formations or otherwise disposed of  as a regulated
waste product.  The Company has six disposal facilities in operation at the
end of 1995.  The fresh water and related services portion includes laying
supply lines to drilling sites and sales of fresh water for drilling
purposes.  Both of these businesses are generally located in an area south of
Laredo, Texas.

The passive oil and gas interests consist of U.S. and Australian properties
in approximately equal revenues.  The bulk of the oil and gas asset base is
located in Australia.

During 1995, the Company purchased a tire shredding machine and leased it to
a tire disposal company in New Mexico.  Management has not determined the
extent of additional involvement in this industry at this time.

In the Zapata, Texas area, the Company constructed a new disposal facility,
acquired an existing facility, and purchased the remaining one-half of its
50% owned subsidiary, Jim Wells Salt Water Disposal, Inc.  In New Mexico, the
Company finalized its purchase of a ranch and acquired another smaller ranch
which gives the Company control over deeded land and permanent grazing rights
for land in excess of 10,000 acres.  Additionally, the Company moved its
administrative offices to Albuquerque, New Mexico.  

NOTE 1:   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting and reporting policies of the Company conform with generally
accepted accounting principles and to general practices within the oil and
gas industry for that portion of its business.  Policies and practices which
materially affect the determination of financial condition, changes in
position, and results of operations are summarized as follows:

Principles of Consolidation.   The consolidated financial statements include
the accounts of Golden Triangle Royalty & Oil, Inc. and its subsidiaries. 
All significant intercompany balances and transactions have been eliminated. 
The Company's subsidiaries at December 31, 1995 are Golden Triangle Coal &
Mining, Inc., Golden Triangle Oil & Minerals, Inc. of Australia, Houston Oil
& Energy, Inc., OCR Investments, Inc. (OCR), Transcon Energy Corporation
(Transcon), Jim Wells Salt Water Disposal, Inc. (Jim Wells), and Apache
Ranch, Inc. (wholly owned by Transcon).  For purposes of these notes, these
are collectively referred to as the Company.

Investment in Unconsolidated Subsidiaries.   Investments in unconsolidated
subsidiaries in which the Company has an ownership interest of 20% to 50%, or
otherwise exercises significant influence, are carried at cost, adjusted for
the Company's proportionate share of the subsidiary's undistributed earnings
and losses.  Jim Wells was owned 50% through September 1995 and Oil Seeps,
Inc. (20%) was the only investment of this type at December 31, 1995.

Investment in Marketable Securities.  During 1995, the Company implemented
Statement of Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt & Equity Securities."  Accordingly, marketable securities
have been classified as available for sale.  These investments are carried at
the lower of cost or market at the balance sheet date.  Unrealized gains and
losses are determined by aggregating all marketable securities.

Property and Equipment.  The Company follows the full cost method of
accounting for oil and gas producing activities and, accordingly, capitalizes
all costs incurred in the acquisition, exploration, and development of proved
oil and gas properties, including the costs of abandoned properties, dry
holes, geophysical costs, and annual rentals.  Costs are recorded in cost
centers on a country-by-country basis.  In general, sales or other
dispositions of oil and gas properties are accounted for as adjustments to
capitalized costs, with no gain or loss recorded.

Depletion and amortization for each cost center is computed on a composite
unit-of-production method based on estimated proved reserves attributable to
the respective cost center.  All costs associated with oil and gas properties
are currently included in the base for computation and amortization.  Such
costs include all acquisition, exploration and development costs.  The
Company's proved reserves related to working interests were estimated by a
petroleum engineer who is not independent with respect to the Company at
December 1993 and 1994.  Those reserve estimates were rolled forward to
December 1995 without additional analysis.  All of the Company's producing
working interests are located within the United States.  Depletion totalled
$53,927 for 1995.

Depreciation is computed on the straight-line method over the estimated
useful lives of the assets.  Useful lives are 10 years for tanks and ramps,
7 years for equipment, and 5 years for electronic equipment.  Depreciation
totalled $204,532  for 1995.

Gains or losses on sales of property and equipment other than oil and gas
properties are recognized as part of operations.  Expenditures for renewals
and improvements are capitalized, while expenditures for maintenance and
repairs are charged to operations as incurred.

Intangible Assets and Amortization.  Intangible assets consist of disposal
well leasehold, goodwill, and water rights.  Goodwill and water rights are
being amortized on a 10 year straight line basis.  Well leasehold is being
amortized on a 15 year straight line basis.  Expense for these items is
included with depreciation and depletion for presentation purposes. 
Amortization of well leasehold and water rights is included with accumulated
depreciation and depletion for balance sheet presentation.

Income Taxes.  The Company files a consolidated Federal income tax return. 
Currently Texas does not accept consolidated reporting and the Company has
elected to file separate returns in New Mexico only for the entities required
to file there.  As such each entity may incur state tax liabilities based on
its separate income or capital structure.  Investment tax credits are
accounted for by the flow-through method under which benefits are recognized
in the year taxes are actually reduced.  Foreign income taxes are deducted as
an expense when incurred.

Common Stock Data.  Per share data has been computed on the weighted average
number of common stock shares outstanding each period.  Due to a 1-for-2.5
reverse stock split during 1995, stock data for the prior years has been
restated to present information on a consistent basis.

Cash Flows.  The Company considers cash and investments in a cash management
account to be cash equivalents for purposes of preparing its Statements of
Cash Flows.

Environmental Issues.  The Company's salt water disposal business is in a
regulated environmental industry and is operated under permits from the Texas
Natural Resource Conservation Commission, and the Texas Railroad Commission. 
Failure to comply with regulations could result in interruption or
termination of the operations.  Additionally, upon cessation of use, the
wells will require plugging and site cleanup.  Costs of voluntary termination
and remediation have been estimated to be insignificant and are expected to
be recorded as incurred.

New Accounting Pronouncements.  Statement of Financial Accounting Standards
No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to be Disposed Of" (SFAS 121) issued by the Financial Accounting
Standards Board (FASB) is effective for financial statements for fiscal years
beginning after December 15, 1995.  The new standard establishes new
guidelines regarding when impairment losses on long-lived assets, which
include plant and equipment, and certain identifiable intangible assets,
should be recognized and how impairment losses should be measured.  The
Company does not expect adoption to have a material effect on its financial
position or results of operations.

Statement of Financial Accounting Standards No. 123, "Accounting for Stock-
Based Compensation" (SFAS 123) issued by the FASB is effective for specific
transactions entered into after December 15, 1995 while the disclosure
requirements of SFAS 123 are effective for financial statements for fiscal
years beginning no later than December 15, 1995.  The new standard
establishes a fair value method of accounting for stock-based compensation
plans and for transactions in which an entity acquires goods or services from
non-employees in exchange for equity instruments.  The Company does not
expect adoption to have a material effect on its financial position or
results of operations.  At the present time, the Company has not determined
if it will change its accounting policy for stock-based compensation or only
provide the required financial statement disclosures.  As such, the impact on
the Company's financial position and results of operations is currently
unknown.

Advertising Costs.  All advertising costs are expensed as incurred except as
discussed in Note 5.

Stock Transfer Fees.  During 1993, the Company elected to be its own stock
transfer agent.

Use of Estimates.  The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date
of the financial statements, and the reported amounts of revenues and
expenses during the reporting period.  Actual results could differ from those
estimates.

NOTE 2:   ACQUISITION OF SUBSIDIARIES AND EQUITY METHOD INVESTEES

Effective August 1, 1994, the Company acquired 100% of the outstanding shares
of Transcon in exchange for 4,148,148 shares of the Company's stock.  This
acquisition was accounted for using the pooling of interests method of
reporting acquisitions and operations.  In accordance with this method of
accounting, the financial statements for all periods prior to the combination
were restated to reflect the combined operations.  Assets and liabilities of
Transcon at the time of acquisition were included at book value rather than
at fair value.

In September 1993, the Company acquired all of the outstanding stock of OCR
in exchange for 316,949 shares of the Company's stock.  This transaction did
not qualify for the pooling method and was accounted for under the purchase
method of accounting.  The purchase method requires the allocation of the
purchase price to the individual assets of the entity being acquired.  The
acquisition was made effective February 1, 1993 and OCR has been included in
the consolidated financial statements since that time.

Both of these companies are in the business of disposing of salt water for
oil and gas producers.  Transcon currently owns four disposal facilities and
OCR currently owns two.  Transcon also provides drilling rig services in the
form of delivery of drilling water through pipelines laid to the rig or
through delivery of water into trucks.

Effective November 1, 1994, GTRO purchased one-half of the outstanding stock
of Jim Wells (see additional discussion at Note 11) for $80,000. 
Additionally, $10,647 was paid to purchase one-half of the outstanding
accounts receivable of Jim Wells at October 31, 1994.  This investment was
accounted for using the equity method for investments.  Under this method,
the Company records its share of the net income or loss as a separate item. 
The Company's investment is adjusted correspondingly for its share of income
or loss.

In October 1995, the Company purchased the other half of Jim Wells with an
agreement to issue stock and it became a wholly owned subsidiary (see also
Note 11).  Because of this, 1995 includes a mix in its accounting for Jim
Wells.  The first three quarters are included under the equity method as
described above and the fourth quarter is fully consolidated.

GTRO's investment in  Jim Wells at acquisition exceeded the book value by 
$67,012.  This excess was allocated $50,000 to fixed assets and $17,012 to
goodwill.  Leasehold is being amortized on a seven year straight line basis. 
Goodwill is being amortized on a ten year straight line basis.  The
acquisition of the second half has been recorded as a purchase also.  Excess
cost over book value is $13,231 which has been allocated to fixed assets and
goodwill.

Oil Seeps, Inc. obtained a new authorization to prospect in Queensland,
Australia during 1995.  The Company invested $5,000 for a 20% ownership
interest in this venture when it was applying for the prospect.  A previous
similar venture entered into during 1994 was Cooper Eromanga Inc.  The
prospect in Oil Seeps, Inc. has been sold subsequent to year end at a gain
for the Company.

NOTE 3:   ACCOUNTS RECEIVABLE

At December 31, 1995 and 1994, the Company has accrued receivables for oil
and gas production and receivables for salt water disposal and other services
as presented below.  Collection of the accrued Australian production
generally occurs during the quarter following the quarter of production. 
Collection of accrued domestic production generally occurs during the month
following production.  The domestic accrual at 1994 included certain amounts
which were being held in suspense due to lack of proper paperwork for
release.  The cost basis of the following receivables is believed to
approximate their fair value.

                                           1995      1994   
Australian oil production              $  10,835  $  24,937
Domestic oil and gas production            6,421     10,908
Salt water disposal and
  rig services                           519,184    564,660
Tire shredder lease                      421,996         -
                                       $ 958,436  $ 600,505

The salt water disposal and rig services receivables include one customer
upon which the Company is relatively reliant.  This customer's balances at
1995 and 1994 were approximately 77% and 65% of these totals.  No allowances
for bad debts have been established because the Company has not experienced
any inability to collect its receivables.  The tire shredder lease is
entirely with one entity.  Lease income from the tire shredder is expected to
decline significantly in 1996 because of the way the lease was structured. 
Sale of two 40 acre tracts of the ranch land resulted in notes receivable
secured by warranty deeds to the tracts.  The notes bear interest at 10% per
annum.  Notes total $82,776 at December 31, 1995 and call for monthly
payments of $820.  The Company does not intend to parcel out the ranch, but
may sell two to three more small tracts.

NOTE 4:   INVESTMENTS

The Company's investments in marketable securities have been entirely
classified as "available-for-sale" rather than as "trading."  This
classification has occurred (in accordance with adoption of SFAS 115) because
the Company expects to hold these investments for an undetermined period
rather than for current trading.  Having been so classified, these
investments will continue to be carried at the lower of cost or market. 
However, unrealized gains and losses will not be shown in the results of
operations, but will be adjusted against stockholders' equity.  When the
gains or losses are realized, stockholders' equity will be adjusted and the
realized gains or losses will be reflected in the statement of operations.

The amounts shown on the balance sheet are at the lower of aggregate cost or
market.  The following table illustrates the current values, costs and
unrealized gains and losses for the securities held.  Note 2 includes a
discussion of investments in subsidiaries.
     
                          December 31, 1995            December 31, 1994
                                       Unrealized                   Unrealized
                                Market   Gain                Market     Gain
                      Cost      Value    (Loss)     Cost      Value    (Loss) 
Current Portfolio
 Black Giant Oil     $63,969   $ 1,898 $(62,071)   $63,969   $ 7,590 $(56,379)
 Santos, Ltd.          5,244     3,162   (2,082)     5,244     2,922   (2,322)
 Camelot Corp.           340       366       26        340       113     (227)
 Danzar, Inc.              -         -        -        203        19     (184)
                     $69,553   $ 5,426 $(64,127)   $69,756   $10,644 $(59,112)

The following is information regarding trading activity in securities.  Cost
is determined by actual cost on a first-in first-out basis.

                       Proceeds        Gains        Unrealized
                      from Sales    and (Losses)  Gains (Losses)
1995                  $      505     $    (199)    $   (5,015)
1994                      57,353       (31,014)        (2,854)
1993                      74,485        36,533        (56,257)

  
NOTE 5:   PREPAID EXPENSES

In December 1993, the Company entered into an agreement with Wall Street
Marketing Group, Inc. for three years of public relations services.  These
services were prepaid as part of a separate agreement for consulting services
with Hunter Equities, Inc.  The value of these services ($150,000) is being
amortized over the three year period.  A cost of $50,000 has been included in
advertising and promotion in 1994 and in 1995 in accordance with this
amortization policy and the remaining balance of $50,000 will be expensed in
1996.

In a subsequent agreement with Hunter Equities, Inc. in 1994, the Company
accepted a note for $39,000 for a balance due on the issuance of stock. 
After paying $11,000 on this note, Hunter Equities contested the amount due. 
In settlement of the balance, Hunter Equities paid $5,700 and the Company
received a promise of printing services at a discounted rate valued at
$11,150.  The Company wrote off the remaining $11,150 as additional
promotional costs.

NOTE 6:   OIL AND GAS PROPERTIES NOT SUBJECT TO AMORTIZATION

The Company has historically acquired Australian overriding royalties as
availability and negotiations provide opportunity.  In addition, two working
interests have been acquired.  However, the Company is not in a position to
control development activities in these areas.  Australian concessions
require that minimum prospecting expenditures be incurred during their four
year term.  No estimate can be made as to when development may begin on the
non-producing properties.  Some concessions from prior years have not been
developed and are not producing revenues.  However, because they were
acquired from related parties for stock, the two producing concessions have
no book value.

Royalty costs are amortized using the percentage method of depletion under
which depletion has historically been recorded at 15% of gross revenue.  The
rate was increased to 19% in 1994 and 22% in 1995.  Since the costs described
above, as well as some U.S. properties, have not been developed, they are not
being amortized directly, only to the extent producing properties have been
depleted below cost.  These costs excluded from amortization totalled
$405,107 at December 31, 1995.

The Company's investment ($65,483) in a prospect in Arizona which has
remained undeveloped has been excluded from amortization and the ceiling
test.

During 1994, the Company acquired various U.S. working interests for a total
of $121,667.  The work anticipated on these properties was partially
unsuccessful and never begun on others.  The Company determined that it was
not interested in investing further funds toward development of these
properties.  In 1995, the Company was successful in exchanging its working
interests for carried working interests on these properties.  The agreement
calls for the Company to relinquish most of its interest in exchange for the
purchaser continuing the development of the properties at no additional cost
to the Company.  The conversion makes the Company's interest quite similar to
an overriding royalty interest.  As such, these costs have been reclassified
as royalty interests rather than working interests.  Work is scheduled on
some of these properties in early 1996 and is expected on others later in
1996.

NOTE 7:   AMORTIZATION OF OIL AND GAS PROPERTIES

The following presents the amortization (depletion) charged against income on
a per unit basis.  Working interests were amortized based on equivalent
barrels of oil produced while royalty depletion, as discussed above, is
calculated as a percentage of gross revenue.

                                           1995      1994      1993  
United States
  Working interests ($/bbl)              $  8.04   $  9.55   $ 11.28
  Royalty interests ($/$ revenue)        $   .22   $   .19   $   .15
Australian royalties ($/$ revenue)       $   .22   $   .19   $   .15

NOTE 8:   INCOME TAXES

As of December 31, 1995 and 1994, the Company had accumulated deficits of
$1,428,712 and $2,065,306.  However, operating loss carry-forwards for tax
purposes vary from these amounts due to differences in the tax treatment of
various items.  These loss carry-forwards, which should provide future
benefits, expire as shown in the following table.  Investment tax credits are
reported using the flow-through method.  Loss carry-forwards of $376,233 have
been utilized in 1995.

                                        Amount of Op-    Amount of
                          Year of       erating Loss     Investment
                         Expiration     Carry-Forward    Tax Credit 
                           1996         $           -    $     2,050
                           1997                     -          1,606
                           1998                     -            389
                           2000                14,422          3,604
                           2001               178,703              -
                           2002               329,497              -
                           2003               290,199              -
                           2004               268,448              -
                           2005               170,463              -
                           2006               135,038              -
                           2007               237,375              -
                           2008               112,290              -
                          TOTALS        $   1,736,435    $     7,649

The provision for income taxes is as follows:

                                      1995       1994     1993   
              Current
                Australian          $ 20,200  $ 19,547  $ 27,926
                Federal                    -    61,064     2,624
                State                 30,580    21,400     3,011
                                      50,780   102,011    33,561
                                                          
              Deferred
                Federal              391,569  (364,962)         -
                State                 60,086     7,164     22,158
                                     451,655  (357,798)    22,158
              Total                 $502,435 $(255,787)  $ 55,719

The $364,962 deferred benefit realized in 1994 arose from the elimination of
a valuation allowance which had been maintained against GTRO's net operating
loss deferred tax asset.  Accounting rules require the assessment of deferred
tax assets and a determination as to the ability of the Company to realize
benefits from those assets.  A valuation allowance is charged against tax
assets when a determination is made that realization is not probable.  This
was the case with GTRO's tax asset prior to 1994.  With the acquisition of
Transcon and OCR, it is evident that these net operating losses can be
reasonably expected to be utilized prior to expiration.

The tax effects of temporary differences that give rise to deferred tax
(liabilities) and deferred tax assets are as follows:

                                      1995                       1994         
                              Assets    Liabilities      Assets     Liabilities
Depreciation, depletion
 and amortization            $ 63,443   $        -      $ 75,892     $      -
Cash basis taxes vs.
 accrual books                      -      244,672             -       83,636
Unrealized gains and
 losses on marketable
 securities                         -       19,232        20,098            -
Investments in                                                       
 subsidiaries                       -      212,749             -      143,956
Net operating losses
 carried forward              532,694            -       615,071            -
Installment sale
 receivable                         -       27,583             -            -
Investment tax credits                                                 
 carried forward                7,649            -         7,649            -
   Totals                    $603,786     $504,236      $718,710     $227,592


Australian income taxes are based on 30% of distributable income from oil
production and 10% of interest earned.  These taxes are withheld by the
Australian payor.

The following table presents the significant differences between federal
income taxes based on book income before taxes and the Company's estimated
federal income tax expense.

Estimated federal tax on book income             $ 387,270
State taxes                                        (10,397)
Depreciation, depletion and amortization           (29,860)
Installment sales                                  (26,581)
Non-deductible expenses                             17,646
Cash basis adjustments                            (217,153)
Net operating loss carry-forward                  (120,925)
  Estimated federal income tax                  $        -

NOTE 9:   LEASES

During January 1994, the Company became the lessee of graphics computer
equipment and an envelope printer under a lease expiring July 1996 and
February 1997 which qualified as capital leases.  These assets were recorded
at the present value of the minimum lease payments which is lower than the
fair market value of the assets and are being amortized over their estimated
productive life.  Amortization has been included in depreciation expense.

During 1995, one lease was cancelled and the other one was bought out, as the
Company moved its main office to Albuquerque, New Mexico.  Loss on the
cancelled lease was included in gain/loss on disposal of assets.  The cost of
the purchased equipment became part of office equipment.

Lease cost for the Company's offices totalled $16,150 for 1995, and $15,300
for 1994 and 1993. Lease arrangements do not require minimum lease payments
or have fixed terms.

NOTE 10:   FIXED ASSETS ADDITIONS AND DISPOSITIONS

During 1995, the Company significantly increased its fixed assets.  A ranch
which was being purchased as funds were available was completely paid for at
a total cost of $349,458 (1995 investment was $230,500).  Another contiguous
ranch was purchased for $150,000 which brought the total managed acreage over
10,000.  In the latter part of the year, two 40 acre tracts were sold for a
total of $90,000 with the Company carrying the notes for $83,000.

A tire shredder was purchased for $488,300 and leased to a tire disposal
company in New Mexico.  The Company agreed to issue stock for an existing
disposal facility and constructed an entirely new facility.  Other operating
assets were also acquired as needed.

In conjunction with the move of the corporate administrative offices to
Albuquerque, New Mexico, the Company sold most of its office equipment and
all of its printing and reproduction equipment.  In so doing, the Company
recognized a loss of $2,967.

The purchase of a pickup was financed through Chrysler Financial by a member
of management.  The Company assumed the payments for this note and the asset
and liability have been recorded.  The note is for 48 months with
approximately $6,000 in principal due each year.

NOTE 11:   TRANSACTIONS WITH RELATED PARTIES

During the years presented, the companies had many transactions with related
parties.  Most of these transactions were not significant individually or
when aggregated by type of transaction.  However, some transactions were
significant. During August of 1994, GTRO acquired 100% of the outstanding
stock of Transcon.  Transcon was privately owned by individuals (the Owens
Group) who owned 7% of the outstanding stock of GTRO and Kenneth Owens, a
member of the Owens Group was a member of the Board of Directors of GTRO. 
During 1993 and 1994, before the acquisition, Transcon incurred related party
transactions with the Owens Group for contract management and other services
which were discontinued after the effective date of the acquisition by GTRO. 
In addition, the Owens Group, which immediately after the acquisition of
Transcon owned approximately 45% of the outstanding shares of GTRO, continues
to own other disposal facilities which might be considered to be in
competition with the Company's operations.  This group's only salt water
disposal facility is located approximately 100 miles from the nearest
facility operated by the Company.

During 1994, the Company and the Owens Group each acquired one-half interest
in Jim Wells which operates a single disposal site in an area outside of the
area serviced by Transcon and OCR.  The Company purchased the Owens Group's
interest in Jim Wells during 1995.   Additionally, the Company purchased from
the Owens Group ranch land in New Mexico.  The Owens Group had acquired this
property for cash and notes payable and sold it to the Company at cost.

During 1994, the Company lent $65,000 to officers and directors.  At present,
no payments have been made on this loan.  However, management believes this
loan is valid and collectible.

During 1995, the Company acquired the remaining one-half of Jim Wells (as
discussed at Note 2) from members of the Owens Group or their affiliates. 
Also, the Company acquired another salt water disposal facility and a piece
of equipment from the Owens Group.  These assets were purchased under an
agreement to issue specified numbers of shares of restricted stock.  The
previous owners have elected to defer the receipt of the stock for reasons of
their own.  The shares have been reported as subscribed stock and have been
included in the calculation of earnings per share.  These transactions were
valued at $20,000 for Jim Wells, and $175,321 for the disposal facility and
equipment in exchange for the issuance of 115,600 shares of stock.  Since the
stock is restricted under Rule 144, the values assigned to the transactions
were based on lower of the estimated fair value of the assets received, cost
of the assets in the hands of the related party, or one-half of the market
price at the time of the agreement.

The purchase of the salt water disposal facility described above and the
remaining one-half of Jim Wells removed the Owens Group from direct
competition in the general area of the Company's salt water disposal
operations.  However, as noted above, this Group continues to own another
salt water disposal facility in another area and is involved in other types
of disposal operations.

Due to the significant demands for cash required to purchase the tire
shredder and to complete the purchase of the two ranches in New Mexico,
officers and directors of the Company made short-term loans to the Company
totalling $181,000.  These loans were repaid, with interest, during the year.

Also during 1995, the Company transferred certain small volume working and
royalty interests to a related party in exchange for a reduction in future
compensation of $21,600.  This receivable is being amortized to contract
services as the services are rendered.  The Company retained an option to
repurchase any of these interests within a three year period should it desire
to do so.  Other miscellaneous transactions resulted in an advance to
officers of approximately $9,000 which are included in the related party
receivables.

NOTE 12:   FOREIGN OPERATIONS

The Company operates principally in the United States and Australia.  The
following is a summary of information by area for 1995, 1994 and 1993.

                                          1995        1994        1993   
Net sales to unaffiliated
 customers:
   United States                       $2,545,159   $2,340,162  $1,654,610
   Australia                              131,045      131,034     122,200
Operating revenues as reported
 in the accompanying financial
 statements                            $2,676,204   $2,471,196  $1,776,810

Income (loss) from operations:
   United States                       $1,779,226   $1,436,417  $1,017,585 
   Australia                               34,460       48,677      44,131 
                                        1,813,686    1,485,094   1,061,716 
Other income and expense                   (3,956)     (10,730)     11,530 
General corporate expenses               (670,701)  (1,181,558)   (838,107)
Income (loss) before income
 taxes as reported in the
 accompanying financial
 statements                            $1,139,029    $ 292,806   $ 235,139 
Identifiable assets:
   United States                       $4,732,421   $3,315,798  $2,194,695
   Australia                            1,270,772    1,313,704   1,113,246
                                        6,003,193    4,629,502   3,307,941
General corporate assets                  152,832      355,153     713,508
Total assets as reported in
 the accompanying financial
 statements                            $6,156,025   $4,984,655  $4,021,449


NOTE 13.  CONCENTRATION OF CREDIT RISK AND SIGNIFICANT CUSTOMER

As shown in Note 3, the Company operated with significant accounts receivable
balances.  Only the receivable for the rent on the tire shredder has any form
of collateral.  This receivable is from a single entity and is secured solely
by the right to remove the tire shredder or take over the operations. 
Additionally, approximately 77% of the receivables for salt water disposal
and rig services are due from a single customer.  This customer has
historically paid bills from two to six months after incurrence.  It
represents approximately 54% of disposal and service revenues in 1995.  As
such, the Company's results of operations appear to be significantly reliant
of this customer's continued ability to operate.  A mitigating factor is that
salt water produced from oil and gas wells is required to be disposed of
under existing regulations and there exists only a limited number of disposal
facilities in the area.

Saltwater disposal services are primarily centered around Zapata, Texas,
which is a significant gas producing area.  However, reductions in gas prices
could significantly reduce the level of activity for both production levels
and drilling services revenues.  In early 1996, increases in prices have
significantly increased the demand for water disposal and fresh water supply.


NOTE 14:   SUBSEQUENT EVENTS

Due to increased demand for water disposal, the Company is in the process of
increasing the volume of water which it can dispose of at two of its
locations.  This increased capacity is being accomplished through the
permitting of an additional disposal well at one location and the replacement
of pumps which will be capable of injecting larger volumes through pressure
increases on the disposal formations.  The Company is also exploring the
possibilities of constructing an additional fresh water supply location and
an additional salt water disposal facility.

The Company's Oil Seeps, Inc. subsidiary has made arrangements to sell its
Australian prospect to third parties for a profit to the Company.
<PAGE>

               SUPPLEMENTARY DATA - RESERVES OF OIL AND GAS (UNAUDITED)
                     December 31, 1995, 1994 and 1993

Reserves of oil and gas - Working Interests (unaudited)

The following table identifies the Company's estimated quantities of proved
developed reserves of crude oil (including condensate and natural gas
liquids) and natural gas related to working interests, as estimated through
1994 by a non-independent petroleum engineer, Ken Kamon, who is the son of
Robert and Effie Kamon, former President and Secretary of the Company. 
Amounts for 1995 were rolled forward from the 1994 amounts without additional
analysis by the engineer.  The estimated proved oil and gas reserves included
are located entirely within the United States.

                    Quantities of oil and gas reserves

                               1995            1994            1993     
                           Oil      Gas     Oil     Gas     Oil      Gas
                         (bbls.)   (mcf)  (bbls.)  (mcf)  (bbls.)   (mcf) 

Beginning of year         5,090   30,416   3,680  36,073   3,649   44,806 
Extensions, discoveries
 and other additions          -       -       -       -       -        - 
Purchases/(sales) of
 reserves in place       (1,566)   (612)   1,684       -     (52)    (868)
Revisions to previous
 estimates                    -      -       277     144     831   (2,576)
Production                 (132) (6,490)    (551) (5,801)   (748)  (5,289)
End of year               3,392  23,314    5,090  30,416   3,680   36,073 

Revisions to reserve estimates represent changes in previous estimates of
proved reserves resulting from new information normally obtained from
development drilling and production history or resulting from a change in
economic factors.  Reserve information has not been reported to any other
federal agencies.

Reserves of oil and gas - Royalty Interests (unaudited)

The quantities of proved reserves of oil and gas relating to royalty
interests are not presented because the necessary information is not
available or the Company's interests are not large enough to economically
obtain this information.  The Company's share of oil and gas produced from
these interests is presented in the following schedule:

                                           United States    Australia  
                                         Oil     Gas      Oil      Gas
                                       (bbls.)  (mcf)    (bbls.)  (mcf)
For the year ended:
    December 31, 1995                   3,056   8,670    6,855      -
    December 31, 1994                   3,654  10,519    7,385      -
    December 31, 1993                   3,940   8,739    6,472      -


              Results of Operations for Producing Activities
                      for the Year Ended December 31


                           1995             1994                 1993     
                   United               United              United
                   States    Australia  States Australia    States   Australia
                                                                            
Sales of oil
 and gas            $69,709  $131,045  $84,179  $131,034  $107,900   $122,200
Production costs
 (including
 taxes)              10,238    66,734   13,488    46,935    15,211     59,739
Acquisition &
 exploration
 costs                    -         -    4,126   200,419    61,107      4,529
Depletion            15,336    28,030    7,476    24,896    18,330     31,215
                     25,574    94,764   25,090   272,250    94,648     95,483
Results of
 operations from
 producing ac-
 tivities (ex-
 cluding corporate
 overhead           $44,135  $ 36,281  $59,089 (141,216)  $ 13,252    $ 26,717


Capitalized Costs Relating to Oil and Gas Producing Activities

                                      December 31, 1995          
                               United States   Australia     Total 
Unproved properties (not
 being amortized)                 $   41,903   $ 468,515   $ 510,418 
Proved properties (being
 amortized)
  Evaluated proved properties        268,057           -     268,057 
  Unevaluated proved properties      930,904   1,064,624   1,995,528 
                                   1,198,961   1,064,624   2,263,585 
Total Capitalized Costs            1,240,864   1,533,139   2,774,003 
Accumulated Depletion               (287,628)   (280,066)   (567,694)
   Net Capitalized Costs           $ 953,236  $1,253,073  $2,206,309 

                                         December 31, 1994
                               United States   Australia     Total 
Unproved properties (not
 being amortized)                 $   41,901   $ 468,515   $ 510,416 
Proved properties (being
 amortized)
  Evaluated proved properties        289,657           -     289,657 
  Unevaluated proved properties      927,137   1,064,624   1,991,761 
                                   1,216,794   1,064,624   2,281,418 
Total Capitalized Costs            1,258,695   1,533,139   2,791,834 
Accumulated Depletion               (262,531)   (251,236)   (513,767)
     Net Capitalized Costs         $ 966,164  $1,281,903  $2,278,067 

                                        December 31, 1993          
                               United States   Australia     Total 
Unproved properties (not
 being amortized)                 $   41,901   $ 268,097   $ 309,998 
Proved properties (being
 amortized
  Evaluated proved properties        132,697           -     132,697 
  Unevaluated proved properties      927,137   1,064,624   1,991,761 
                                   1,059,834   1,064,624   2,124,458 
Total Capitalized Costs            1,101,735   1,332,721   2,434,456 
Accumulated Depletion               (232,037)   (226,339)   (458,376)
    Net Capitalized Costs          $ 869,698  $1,106,382  $1,976,080 


Costs Incurred in Oil and Gas Property Acquisition, Exploration and
Development         
                          1995                 1994                1993 
                   United              United                 United
                   States   Australia  States   Australia    States  Australia
Property acquis-
 ition costs
   Proved            $    -   $     -  $156,960  $      -   $ 2,200  $      -
   Unproved           3,767         -         -   200,418     4,529    61,107
Exploration costs         -         -         -         -         -         -
Development costs         -         -         -         -         -         -
                     $3,767    $    -  $156,960  $200,418   $ 6,729   $61,107


         Standardized Measure of Discounted Future Net Cash Flows
            Relating to Proved Oil and Gas Reserves (unaudited)

                                           1995      1994         1993 
Future cash inflows                      $ 95,923  $127,454  $104,197 
Future production and development
 costs                                    (52,232)  (73,119)  (53,698)
Future income tax expense
 (see note)                                     -         -         - 
Future net cash flows                      43,691    54,335    50,499 
10% annual discount for estimated
 timing of cash flows                     (11,925)  (13,433)  (15,082)
Standardized measure of discounted
 future net cash flows                   $ 31,766  $ 40,902  $ 35,417 

NOTE: The Company has net operating losses and investment tax credits which
are expected to offset any forseeable future income taxes.


         Changes in Standardized Measure of Discounted Future Net
           Cash Flow from Proved Reserve Quantities (unaudited)

                                           1995       1994      1993 
Standardized measure - beginning         $ 40,902  $ 35,417  $ 43,021 
Sales, net of production costs             (6,511)  (11,662)  (15,230)
Sales of reserves in place                 (6,715)        -         - 
Extensions and discoveries, net of
 future costs                                   -         -         - 
Revisions of quantity estimates                 -     1,578     1,392 
Purchase of reserves                            -     9,137         - 
Accretion of discount                       4,090     3,542     4,302 
Changes in sales prices, production costs
   and other                                    -     3,302     1,932 
Other                                           -      (412)         -
Standardized measure - end               $ 31,766  $ 40,902  $ 35,417 

<PAGE>
Item 9.  Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure

None.



                                 PART III

Item 10.  Directors and Executive Officers of the Registrant

Directors

The Board of Directors of the Company (the "Board") presently consists of
eight members.  The directors of the Company are divided into three classes
designated as Class I, Class II, and Class III.  The term of office of the
initial Class I directors expires at the next succeeding annual meeting of
stockholders, the term of office of the initial Class II directors expires at
the second succeeding annual meeting of stockholders, and the term of office
of the initial Class III directors expires at the third succeeding annual
meeting of stockholders.  The initial Class I, Class II, and Class III
directors are those directors elected at the June 14, 1991 annual meeting. 
At each annual meeting after the June 14, 1991 annual meeting, directors to
replace those of a Class whose terms expire at such meeting shall be elected
to hold office until the third succeeding annual meeting.  Currently serving
as directors are:   Ivan Webb, Karen Lee, Betty Polston, and David Polston as
Class I directors; Effie Kamon and John Vuksich as Class II directors; and
Howard Siegel and Kenneth Owens as Class III directors.  Thys B. Johnson
resigned as a Class I director, and Robert Kamon resigned as a Class III
director during February 1996 to pursue other projects.  The following table
sets forth information concerning the persons currently serving as directors
of the Company.

                                                    Date First
                                 Position With        Elected
      Name               Age       the Company      as Director

Kenneth Owens             58 Chairman of the          1994
                             Board and President
Ivan Webb                 45 Chief Financial          1993
                             Officer and Director
Effie Kamon               71 Director                 1979
Karen Lee                 36 Director                 1989
Betty Polston             62 Director                 1995
David Polston             37 Director                 1995
Howard B. Siegel          53 Director                 1980

John M. Vuksich           44 Director                 1995

Executive Officers

Unless otherwise specified by the Board, all executive officers are elected
for a term of one year, commencing with the date of the first meeting of the
Board following the annual meeting of stockholders, and serve until their
successors are elected or appointed and qualified, or until their respective
death, resignation, removal or disqualification.  All of the Company's
officers are executive officers.  The following table sets forth certain
information with respect to the persons currently serving as executive
officers of the Company.

                                                    Date First
                                 Position With        Elected
       Name              Age       the Company     as Director

Kenneth Owens             58  Chairman of the          1994
                              Board and President
Ivan Webb                 45  Chief Financial          1993
                              Officer and Director
Shawna Owens             23   Secretary/Treasurer      1995

Family relationships among the Company's officers and directors include:
Kenneth Owens and Shawna Owens are father and daughter, and Betty Polston and
David Polston are mother and son.

Kenneth Owens, Chairman of the Board and President, has expertise in various
areas of business.  Beginning in 1961 he performed in a supervisory capacity
for several worldwide companies including Becktel and Brown & Root.  He has
been involved in a variety of projects including: (1)  Alaskan oil and gas
pipeline; (2) ICBM projects; and (3) underground nuclear testing in Nevada. 
He has also been active in real estate and agriculture, acquiring a major
interest in ranch grazing land and cattle operations in Texas, Arizona, and
New Mexico covering hundreds of thousands of acres.

At the present time, he is active in both agricultural ventures and oil and
gas operations.  He is also consultant for surrounding businesses in south
Texas concerning the Railroad Commission of Texas and the Texas Natural
Resource Conservation Commission.  He incorporated Transcon Energy Corp. in
Texas in 1988, and since that time he has incorporated several other
companies and holds positions in these companies as President and/or CEO or
Director.

Ivan Webb, Chief Financial Officer and Director, is a petroleum landman.  He
received his Bachelor of Business Administration degree in Management from
Tarleton State University (branch of Texas A & M) in 1978.  In July, 1992,
the Company acquired Houston Oil & Energy, Inc. (HOE).  Mr. Webb was an
officer and director of HOE for 11 years.  He was instrumental in the
preparation of four oil and gas public stock offerings in 1972, 1974, 1976
and 1981, being employed by each of these companies to seek oil and gas
production plus manage the office operations.  Mr. Webb has negotiated the
acquisition of more than 200 producing oil and gas wells within the United
States.

In addition to the domestic acquisitions, Mr. Webb has been active in leasing
foreign oil and gas concessions, mostly in Australia.  He has successfully
leased over 12,000,000 acres in Queensland, Australia, and has negotiated
lease terms with government officials for oil and gas exploration in
Argentina, Guyana, and New Zealand.  Over the past three years Mr. Webb has
acted as an independent consultant and managed the drilling operations of
sixteen oil and gas wells in central Texas, thirteen of which have been
completed as producers.

Shawna Owens, Secretary/Treasurer, attended Texas A&M University and has
experience in management, accounting and public relations with different law
firms.  Ms. Owens worked in Washington, D. C. for Senator Pete Dominici of
New Mexico and also worked with the Sergeant of Arms for the U. S. Senate
Chambers.  She is in charge of bookkeeping and was instrumental in automating
GTRO's accounting.  Ms. Owens also performs public relations duties for the
Company.  She has been employed by the Company since August, 1995.

Effie Kamon, Director, has worked in the oil industry for over 30 years,
first for a drilling company and later for Humble Pipe Line Co. (now Exxon)
as Secretary to the North Texas District Superintendent.  Since approximately
1958, she has been a partner in Kamon Petroleum Exploration, secretary of
International Oil Lease Service Corp., and an officer and director of
Australian Grazing & Pastoral Co. and various other private companies.  Ms.
Kamon is also a partner in Kamtex Oil Production Partnership.

Karen Lee, Director, graduated with high honors from Cisco Junior College. 
She administers the operation of the Company's offices in Springtown, Texas,
is in charge of completing mailing programs, performs many tasks in
connection with the Company's public relations and broker relations programs,
does much of the research and writing for filing of Securities and Exchange
Commission documents, and is the transfer agent for the Company.  Ms. Lee has
been employed by the Company for the past 16 years.

Betty Polston, Director, received two Masters degrees and worked as a
business/education consultant before moving to South Texas.  For the past six
years she has been employed by OCR and Transcon, now subsidiaries of GTRO,
and has been instrumental in the development of their facilities.  She is the
office manager, plus is responsible for establishing and keeping current all
leases and permits for the entire South Texas operation, which includes OCR,
Transcon and Jim Wells.  She manages the base field radio and office phone on
a 24 hour seven day a week basis, helps coordinate field operations, and
handles inquiries from clients, Railroad Commission inspectors, lease
holders, suppliers, SEC auditors etc.

David Polston, Director, has been in the oil and gas business for the past
eight and one half years.  He worked for companies such as Schlumberger and
Trans Texas before starting up his own company, Texas Hydro Services, in
1990.  He is an auto and diesel mechanic, helicopter engine mechanic,
certified welder, and has six years of college education.  He attained the
rank of Sergeant while serving in the U.S. Marines and received numerous
meritorious awards.  For the past six years he has been employed by OCR and
Transcon, now subsidiaries of GTRO, managing all of their field operations
and helping to acquire all new lease agreements and permissions for all
operations in the South Texas area.

Howard B. Siegel, Director, received his Bachelor of Business Administration
Degree from the University of Oklahoma in 1966.  He received a Doctor of
Jurisprudence Degree from St. Mary's University School of Law in 1969.  Mr.
Siegel was formerly an attorney for Superior Oil Company, a major oil and gas
concern located in Houston.  He previously served as Vice President, General
Counsel, and a member of the Board of Directors of Tenneco Inc. Federal
Credit Union.  From July 1974 to August 1989, Mr. Siegel was employed as an
attorney with the law firm of Bracewell & Patterson in Houston, Texas, and
from that date until January, 1991 he was employed with Hurt, Richardson,
Garner, Todd & Cadenhead in Atlanta, Georgia.  Mr. Siegel is currently
employed as an attorney with Eikenburg & Stiles in Houston, Texas.  Mr.
Siegel has served in an advisory capacity to the Board of Directors of the
Company since March 25, 1980.

John M. Vuksich, Director, received a B.S. degree from the U. S. Military
Academy at West Point, a M.S. degree from Stanford University, and another
M.S. degree from the Naval War College.  From 1987 to 1991 he was the System
Element Manager/Operations Research Analyst for the Strategic Defense
Initiative Organization in Washington, D. C.  From August 1991 to July 1993
he was the Senior Cost Analyst for the Office of the Assistant Secretary of
Defense where he conducted independent assessments for the Under Secretary of
Defense for Acquisition of selected defense programs, and assessed all
elements of the Strategic Defense Initiative.  From July 1993 to present Mr.
Vuksich has served as the Science Advisor to the Governor of New Mexico.


Item 11.  Executive Compensation

The table on the following page sets forth certain information as to each of
the Company's executive officers for the past three fiscal years.
                                             
                                                          Restricted
                                              Cash           Stock
      Name and                            Compensation   Compensation
  Principal Position          Year             ($)           ($)     

Kenneth Owens                1993                -0-
Chairman and President       1994                -0-
                             1995                -0-

Ivan Webb                    1993             31,738
Chief Financial              1994             33,365
 Officer                     1995             38,926

Shawna Owens                 1993                -0-
Secretary/Treasurer          1994                -0-
                             1995              5,500

Robert Kamon                 1993                -0-        48,000**
President*                   1994                -0-             -0-
                             1995          12,000***             -0-

Karen Lee                    1993             22,895
Vice President*              1994             20,138
                             1995             21,710

Effie Kamon                  1993                -0-
Secretary*                   1994              1,800
                             1995                -0-

Joetta Schuman               1993              8,541
Treasurer*                   1994             10,886
                             1995             11,175

  *These officers were only officers for a portion of 1995.  Karen Lee and
Joetta Schuman, although not officers for the entire year, continue to be
employed by GTRO, so their salary for the entire year is shown.

 **On June 21, 1991, the Board of Directors approved a resolution to pay
Robert Kamon, President, a salary of $48,000 per year with payment on a
quarterly basis, and subject to shareholder approval could issue restricted
letter stock at 30% of the bid price in lieu of cash.  Restricted stock must
be held for a period of at least two (2) years before it can be sold on the
market pursuant to SEC Rule 144.  At the July, 1992 annual meeting
shareholders approved the option of issuing restricted letter stock rather
than cash for the salary.  For the fiscal year 1993, $48,000 was accrued to
pay Mr. Kamon's salary, and the Board chose to pay restricted letter stock,
so Mr. Kamon received 133,334 (53,334 after adjustment for reverse split)
shares of stock for his salary for 1993.  Mr. Kamon volunteered to forego his
salary for 1994.

***Mr. Kamon received $12,000 for his salary for the first quarter of 1995
based on the following - GTRO sold its interests in various printing
equipment to Robert Kamon for $35,000, with a $12,000 credit toward his
salary, and the remaining amount paid in restricted letter stock (see Item
13. Certain Relationships and Related Transactions).

Director Compensation

For the year 1993, the Board of Directors approved a $4,000 fee for services
rendered in their capacities as directors.  The majority of the Board voted
to take the fees due them in restricted letter stock to avoid drawing cash
from the Company.  The 1993 fee was based on the bid price of the stock on
January 4, 1993.  In 1994 each director, with the exception of Robert Kamon
who volunteered to forego his fee, received $2,000 cash for services rendered
in their capacities as directors; no stock was issued for directors' fees. 
In 1995, the Board approved a $1,500 fee for each director to be paid as cash
or 500 shares of stock.  Subsequent to the year end, the fee was paid in cash
to six directors, and in stock to four directors.

Compensation Committee Report

The Board of Directors delegates responsibility for executive compensation to
the Compensation Committee which is comprised of three of the directors on
the Board.  This committee reviews the salaries of each of the officers of
the Company, as well as sets the directors' fees for the year.  The 
Committee recommended to the Board that all salaries remain at the same level
for all officers during 1995.

The Compensation Committee did not recommend incentive packages to the Board
for the officers and employees of the Company in 1995.  The Committee did
recommend changing directors' fees to be based on net income of the Company,
beginning with a $1,500 fee per director for 1995, and after net income
exceeds $1,500,000,  doubling the fee each year that an increase of at least
$500,000 occurs in net income.

Performance Graph - Set forth below is a line graph comparing the yearly
percentage change in the cumulative total shareholder return on the
Corporation's Common Stock against the cumulative total return of the NASDAQ
Stock Market and the NASDAQ Non-Financial Stocks.  The graph assumes that the
value of the investment in the Corporation's Common Stock and each index was
$100 at December 31, 1990.  GTRO's numbers reflect a 5% stock dividend which
was paid in 1990, a 1-for-20 reverse stock split in 1993, and a 1-for-2.5
reverse stock split in 1995.


Comparison of Five-Year Cumulative Total Return

         12-31        1990    1991      1992      1993      1994      1995  

GTRO Stock          100.00   100.00    59.92      40.01    34.06      41.61

NASDAQ Stock        100.00   160.63   186.94    214.60    209.77     296.43 

Non-Financial
Stocks              100.00   161.07   176.19    203.44    194.97     268.07 


Item 12.  Security Ownership of Certain Beneficial Owners and Management

The following table sets forth certain information regarding the Company's
common stock as of March 11, 1996 with respect to (1) each person known by
the Company to own beneficially more than 5% of the Company's common stock,
(ii) each of the Company's directors, and (iii) all directors and officers of
the Company as a group.  The title of class is common stock, $.001 par value.
                     
                                           # of Shares
         Name and                          Beneficially        Percent of
    Address of Stockholder                     Owned             Class     

       Effie Kamon                                 -0-             0.00%
       P. O. Box 1629
       Cisco, Texas 76437                              

       Karen Lee                                 4,656             0.12%
       104 Oak Street
       Springtown, Texas 76082

       Kenneth Owens                         1,263,303            32.85%
       P. O. Box 1042
       Magdalena, New Mexico 87825

       Shawna Owens                              2,000             0.05%
       P. O. Box 22010
       Albuquerque, New Mexico 87154

       Betty Polston                           275,348             7.16%
       P. O. Box 470
       Zapata, Texas 78076

       David Polston                           274,708             7.14%
       P. O. Box 470
       Zapata, Texas 78076

       Howard B. Siegel                          1,225             0.03%
       1021 Main Street, Ste. 1100
       Houston, Texas 77002

       John Vuksich                             10,500             0.27%
       3214 Plumb St.
       Houston, Texas 77005

       Ivan Webb                                 5,300             0.14%
       P. O. Box 31
       Cisco, Texas 76437

       All directors and officers as a       1,836,540            47.76%
         group (9 persons)

       Ken Kamon                               263,840             6.86%
       P. O. Box 10589
       Midland, Texas 79072


Note: The stockholder identified in this table have sole voting and
investment power with respect to the shares beneficially owned by them.

Changes in Control

No changes in control occurred during 1995.  As previously reported, a change
in control of the Company occurred December 27, 1994 when 4,148,148
(1,659,260 after adjustment for reverse split) shares of GTRO restricted
stock were issued to the shareholders of Transcon Energy Corp. ("Transcon")
in order for GTRO to acquire that company.  GTRO now owns 100% of Transcon. 
This block of stock represented approximately 43% of the shares outstanding
after its issuance and effectively transferred control of the Company to
these shareholders.  With this stock, plus stock already owned, the
percentage of voting securities of the Registrant now beneficially owned by
the persons who acquired control is 47.15%, with the primary holder being
Kenneth Owens with 32.85% of the stock.  Mr. Owens has sole voting and
investment power on this 32.85% of the stock.  Before the issuance of these
shares no one person had voting control of the Company.  GTRO agreed to allow
the new controlling shareholder to appoint two people of his choice to the
Board of Directors.


Item 13.  Certain Relationships and Related Transactions

During the year several transactions with related parties occurred.  The
Company purchased the remaining one-half interest in Jim Wells Salt Water
Disposal from directors of the Company for 16,000 shares of GTRO restricted
common stock; this transaction was valued at $20,000.  In addition, the
Company purchased County Line Disposal Plant and a piece of equipment from
directors with the agreement to issue 99,600 shares of restricted stock for
the purchase.  This transaction was valued at $175,321.  Also during 1995,
the Company purchased ranch land in New Mexico from Kenneth Owens, President. 
Mr. Owens had acquired the property for cash and notes payable and sold it to
GTRO at cost.

During 1994, the Company loaned $65,000 to directors for an investment.  To
date no payments have been made on this loan, but management believes the
loan is valid and collectible.  Demands for cash during 1995 to purchase the
tire shredder and complete the purchase of ranch land in New Mexico were met
by directors of the Company making short-term loans to GTRO in the amount of
$181,000.  GTRO repaid these loans, with interest, before the end of the
year.  During 1995 Robert Kamon, former President and Director of GTRO,
purchased GTRO's printing equipment for $35,000, with a credit of $12,000
toward salary owed to him, and the remaining amount paid for with 28,308
shares of GTRO stock at 13/16ths transferred from Robert Kamon to GTRO.

Several of the officers and directors of the Company have invested in the oil
and gas business, either directly or through entities in which they have an
interest.  Certain of these interests could directly compete with the
interests of the Company.  For example, Kenneth Owens, Chairman of the Board
of GTRO, is an officer and director and the owner of companies which could
directly compete with GTRO's subsidiaries, OCR and Transcon, in the salt
water disposal business.  During 1994 GTRO purchased various working
interests from parties with whom Ivan Webb, Director, was associated, which
could have been considered a possible conflict of interest.  Although the
Company is not aware of any present conflicts of interest, such present or
future activities on the part of the officers and directors could directly
compete with the interests of the Company.  If the Company should enter into
future transactions with its officers, directors or other related parties,
the terms of any such transaction will be as favorable to the Company as
those which could be obtained from an unrelated party in an arm's length
transaction.

                                  PART IV

Item 14.  Exhibits, Financial Statements, and Reports on Form 8-K

       (a)  The following documents are filed as a part of this report or are
       incorporated by reference:

            Financial Statements - The following information has been included
            in response to Item 8 above.

         -  Report of Independent Certified Public Accountants
         -  Consolidated Balance Sheets
         -  Consolidated Statements of Operations
         -  Consolidated Statements of Changes in Shareholders' Equity
         -  Consolidated Statements of Cash Flows
         -  Notes to Consolidated Financial Statements
         -  Supplementary Data for Reserves of Oil and Gas

       (b)  Reports on Form 8-K
            
            No reports on Form 8-K were filed during the quarter ended
            December 31, 1995.

                                SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

                                     GOLDEN TRIANGLE ROYALTY & OIL, INC.


                                     By: /s/ KENNETH OWENS           
                                       Kenneth Owens
                                       President

                                       Date:   March 25, 1996


Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.


          Signature                  Title                  Date    


 /s/ EFFIE KAMON              Director                March 25, 1996
Effie Kamon


 /s/ KAREN LEE                Director                March 25, 1996
Karen Lee


 /s/ KENNETH OWENS            Chairman of the Board   March 25, 1996
Kenneth Owens                 and President


 /s/ BETTY POLSTON            Director                March 25, 1996
Betty Polston


 /s/ DAVID POLSTON            Director                March 25, 1996
David Polston


 /s/ HOWARD B. SIEGEL         Director                March 25, 1996
Howard B. Siegel


 /s/ JOHN VUKSICH             Director                March 25, 1996
John Vuksich


 /s/ IVAN WEBB                Chief Financial         March 25, 1996
Ivan Webb                     Officer, Principal
                              Accounting Officer
                              and Director