U.S. SECURITIES AND EXCHANGE COMMISSION
                   Washington, D.C.  20549
                         FORM 10-QSB

   [X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
           OF THE SECURITIES EXCHANGE ACT OF 1934
        For the quarterly period ended September 30, 2001

   [ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
           OF THE SECURITIES EXCHANGE ACT OF 1934
            For the transition period from     to

               Commission File No.  333-37842

                     MOUNTAIN OIL, INC.
 (Exact name of small business issuer as specified in its
charter)

        Utah                                   87-0639343
(State or other jurisdiction of     (IRS Employer Identification No.)
incorporation or organization)


             3954 East 200 North East Highway 40
                      Ballard, UT 84066
          (Address of principal executive offices)

                       (435) 722-2992
                 (Issuer's telephone number)

                       Not Applicable
(Former name, address and fiscal year, if changed since last
report)

Check whether the issuer (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act
during the preceding 12 months (or for such shorter period
that the issuer was required to file such reports), and (2)
has been subject to such filing requirements for the past 90
days.  Yes [X] No [ ]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Check whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of
the Exchange Act subsequent to the distribution of
securities under a plan confirmed by a court. Yes [ ] No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS:

State the number of shares outstanding of each of the
issuer's classes of common equity, as of September 30, 2001:
3,102,749 shares of common stock.

Transitional Small Business Format:  Yes [ ]  No [X]

Documents incorporated by reference:  None

<PAGE>

                         FORM 10-QSB
                     MOUNTAIN OIL, INC.

                            INDEX                                Page

PART I.     Financial Information

              Item 1.  Financial Statements                         3

              Balance Sheet as of Sept. 30, 2001 (unaudited)        3

              Statement of Operations for the Three Months          4
              Ended September 30, 2001 and 2000 and Nine Months
              Ended September 30, 2001 and 2000(unaudited)

              Statement of Cash Flows for the Nine Months           5
              Ended September 30, 2001 and 2000 (unaudited)

              Notes to Financial Statements                         6

              Item 2.  Management's Discussion and Analysis         7
              of Financial Condition

PART II.      Other Information

              Item 2.  Changes in Securities and Use of Proceeds    8

              Item 6.  Exhibits and Reports on Form 8-K             9

SIGNATURES                                                          9

                                   2
<PAGE>

Part I. Financial Information

Item 1.  Financial Statements

                             MOUNTAIN OIL, INC.
                               Balance Sheet
                            September 30, 2001
                               (unaudited)

        Assets

        Current assets:
        Cash                                    $   325,000
        Accounts receivable                         153,000
        Inventory                                    70,000

        Total current assets                        548,000

        Property and equipment, net               2,076,000

        Total Assets                            $ 2,624,000

        Liabilities and Stockholders' Equity

        Current liabilities:
        Accounts payable                        $  114,000
        Accrued expenses                           113,000
        Convertible 7% notes due March 2001         23,000

        Total current liabilities                  250,000

        Long-term debt                              40,000

        Total Liabilities                          290,000

        Stockholders' equity:
        Preferred stock, no par value,
        authorized 10,000,000 shares;
        no shares issued or outstanding                  -
        Common stock, no par value, authorized
        50,000,000 shares; 3,102,749 shares
        issued and outstanding                   3,084,000
        Accumulated deficit                       (750,000)

        Total stockholders' equity               2,334,000

        Total Liabilities and Equity           $ 2,624,000

        See accompanying notes to financial statements

                              3
<PAGE>
                     MOUNTAIN OIL, INC.
                   Statement of Operations
                         (Unaudited)

<TABLE>
<CAPTION>
                                             Three Months                Nine Months
                                                Ended                        Ended
                                             September 30                September 30,
                                          2001          2000          2001          2000
<S>                                    <C>           <C>           <C>           <C>
Oil and gas sales                      $  336,000    $  278,000    $  876,000    $  550,000

Costs and expenses:
  Operating Costs                         167,000       113,000       572,000       232,000
  General and administrative expenses      93,000       150,000       349,000       312,000
  Depreciation, depletion
    and amortization expense              166,000        32,000       280,000        76,000

Operating expenses                        320,000       295,000     1,201,000       620,000

Income (loss) from operations             (90,000)      (17,000)     (325,000)      (70,000)

Interest expense                           (2,000)      (15,000)      (30,000)      (34,000)
Other income                                2,000             -        24,000        13,000


Income (loss) before provision
 for income taxes                         (90,000)      (32,000)     (331,000)      (91,000)

Provision for income taxes                      -             -             -             -

Net income (loss)                      $  (90,000)   $  (32,000)   $ (331,000)   $  (91,000)

Income (loss) per common share -
   basic and diluted                   $     (.03)  $      (.02)   $     (.11)   $     (.05)

Weighted average number
 of common shares - basic and diluted   3,103,000     1,853,000     2,985,000     1,828,000
</TABLE>
         See accompanying notes to financial statements

                              4
<PAGE>
                     MOUNTAIN OIL, INC.
                   Statement of Cash Flows
                         (Unaudited)


                                           Nine Months Ended September 30,
                                                     2001   2000

Cash flows from operating activities:
  Net (loss)                                   $ (331,000)  $   (91,000)
  Adjustments to reconcile net income (loss)
   to net cash used in operating activities:
     Depreciation, depletion and amortization     280,000        76,000
     (Increase) decrease in:
       Accounts receivable                        (40,000)        1,000
       Deffered issue costs                        64,000             -
       Prepaid expenses                            15,000        (7,000)
       Inventory                                  (12,000)            -
       Deposits and other assets                   11,000       (49,000)
     Increase (decrease) in:
       Accounts payable                          (207,000)      (10,000)
       Accrued expenses                           100,000        15,000

          Net cash used in
          operating activities                   (120,000)      (65,000)

Cash flows used in investing activities:
  Purchase of property and equipment             (773,000)   (1,211,000)
  Note receivable                                       -        (7,000)

        Net cash used in
        investing activities                     (773,000)   (1,218,000)


Cash flow from financing activities:
Proceeds from long-term debt                            -       825,000
Payments on related party notes payable          (338,000)     (200,000)
Payments on long-term debt (conversion
  of debentures)                                   (5,000)      (10,000)
Collection of subscription receivable                   -        10,000
Proceeds from issuance of common stock          1,547,000        50,000
Proceeds from related party notes payable               -       110,000

          Net cash provided by
          financing activities                  1,204,000       785,000

          Net increase (decrease) in cash         311,000      (498,000)

Cash, beginning of period                          14,000       512,000

Cash, end of period                           $   325,000  $     14,000

         See accompanying notes to financial statements

                              5
<PAGE>
                     MOUNTAIN OIL, INC.
                Notes to Financial Statements

            Nine Months Ended September 30, 2001


1. Organization and Summary of Significant Accounting
Policies

The Company is incorporated under the laws of the state of
Utah and is primarily engaged in the business of acquiring,
developing, producing and selling oil and gas products and
properties to companies located in the continental United
States.

Unaudited Financial Information

The unaudited financial statements include the accounts of
the Company and include all adjustments (consisting of
normal recurring items), which are, in the opinion of the
management, necessary to present fairly the financial
position as of September 30, 2001 and the results of
operations and cash flows for the period ended September 30,
2001.  The results of operations for the period ended are
not necessarily indicative of the results to be expected for
the entire year.

Non-cash Transaction

During the nine months ended September 30, 2001, $802,000 of
7% convertible notes were converted to $534,681 share of the
Company's common stock

Earnings Per Share

The computation of basic earnings per common share is based
on the weighted average number of shares outstanding during
the period.The computation of diluted earnings per common
share is based on the weighted average number of shares
outstanding during the period plus the common stock
equivalents which would arise from the exercise of stock
options and warrants outstanding using the treasury stock
method and the average market price per share during the
period.  Common stock equivalents are not included in the
diluted earnings per share calculation when their effect is
antidilutive.


2. Public Offering

In January 2001, the Company's initial public offering of
its common stock, registered on Form SB-2, was declared
effective by the Securities and Exchange Commission.  The
Company registered 1,000,000 shares of common stock for sale
at $2.25 per share.  On February 28, 2001, the offering
closed with 715,068 shares sold, resulting in gross proceeds
of approximately $1,609,000.


3.  Subsequent Event

The Company had entered into a non-binding letter of intent
to acquire all of the issued and outstanding shares of a gas
and oil company (Energytec) in exchange for 3,118,000 of the
companies common stock.  The Company has since decided
against the acquisition.

                              6
<PAGE>

Item 2.  Management's Discussion and Analysis of Financial
Condition and Plan of Operation

Results of Operations - nine-month periods ended September
30, 2001 and 2000 and three-month periods ended September
30, 2001 and 2000.

Oil sales were $876,000 and $550,000 for the nine months
ended September 30, 2001 and 2000, respectively.  This 59%
increase in sales is primarily attributable to increasing
both the number of our producing wells and the production
rates of our existing wells.  Oil sales were $336,000 and
$278,000 for the three months ended September 30, 2001 and
2000.  This 21% increase is also primarily attributable to
our increased number of our producing wells and the
increased production rates of our existing wells.

Operating costs for the nine months ended September 30, 2001
and 2000 were $572,000 and $232,000, respectively.  This
147% increase in production costs is attributable to the
cost of reworking wells to improve existing production and
to establish production in wells that were not producing.
Operating costs for the three months ended September 30,
2001 and 2000 were $167,000 and $113,000, respectively.
This 48% increase in production costs is also attributable
to the cost of reworking wells and establishing production
in wells that were previously not producing.

General and administrative expenses increased 12% to
$349,000 from $312,000 for the nine months ended September
30, 2001 and 2000, and decreased 62% from $150,000 to
$93,000 for the three months ended September 30,2000 and
2001, respectively.  This change from an increase of 12% to
a decrease of 62% is due to the company cutting its labor
and insurance costs from the previous year.  Depreciation,
depletion and amortization expenses increased 368% to
$280,000 for the nine months ended September 30, 2001, from
$76,000 for the same period in 2000.  For the three months
ended September 30, 2001 and 2000 depreciation, depletion
and amortization expenses increased 419% to $166,000 from
$32,000. Other income for these same periods was $24,000 and
$13,000 for the nine months ended September 30, 2001 and
2000, and $2,000 and $0 for the three months ended September
30, 2001 and 2000, respectively.  These values are
attributable to expansion of operations and the acquisition
of capital used in that expansion.

As a result of the foregoing, The Company realized a net
loss of $331,000 for the nine months ended September 30,
2001, as compared to a net loss of $91,000 for the nine
months ended September 30, 2000; and a net loss of $90,000
and net loss of $32,000 for the three months ended September
30, 2001 and 2000 respectively.

Liquidity and Capital Resources

Net cash used in operating activities for the nine months
ended September 30, 2001 and 2000 was $120,000 and $65,000
respectively.  During these periods our net cash used in
investing activities was $773,000 and $1,218,000,
respectively, which was invested in property and equipment
and for the nine months ended September 30, 2000 a related
party note receivable.  Also during the nine months ended
September 30, 2001, the Company paid $338,000 on related
party notes payable, $5,000 on long term debt, and received
$1,547,000 in net proceeds from our public offering; as
compared to the nine months ended September 30, 2000,
$200,000 paid on related party notes, $10,000 paid on long
term debt, $10,000 received from stock subscriptions,
proceeds from convertible debentures of $825,000, proceeds
from issuance of related party notes of $110,000 and
proceeds from issuance of common stock of $50,000.  As a
result, our financing activities provided $1,204,000 of net
cash for the nine months ended September 30, 2001, as
compared to $785,000 of net cash provided by financing
activities for the same period in 2000.  Accordingly, our
net cash increased $311,000 for the nine months ended
September 30, 2001, as compared to a decrease in net cash of
$498,000 for the nine months ended September 30, 2000.

                              7
<PAGE>

On February 28, 2001, we closed our public offering of
common stock after selling 715,068 shares resulting in gross
proceeds of $1,609,000.  Net proceeds of the offering were
approximately $1,524,053.  As of the date of this report, we
used approximately $374,722 of the net proceeds to purchase
oil well equipment, $476,679 to rework wells, $121,683 to
purchase service equipment, $282,000 to repay director
loans, $18,527 to pay interest expense, and $39,000 for
general and administrative expenses.

At September 30, 2001, we had a working capital of $298,000,
as compared to working capital deficit of $414,000 at
September 30, 2000.  This substantial improvement to our
working capital is due to our public offering that closed in
February 2001.

We will continue to pursue the rework project on our
existing wells over the next 4 months.  We believe Mountain
Oil has sufficient capital to fund its operating expenses
and the rework project during this period.  If Mountain Oil
is successful in improving production during this period, we
believe that Mountain Oil will generate sufficient revenues
internally to cover all of its operating expenses.

Forward-Looking Statements

This Form 10-QSB includes, without limitation, certain
statements containing the words "believes", "anticipates",
"estimates", and words of a similar nature, constitute
"forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995.  This Act
provides a "safe harbor" forward-looking statements to
encourage companies to provide prospective information about
themselves so long as they identify these statements as
forward looking and provide meaningful, cautionary
statements identifying important factors that could cause
actual results to differ from the projected results.  All
statements other than statements of historical fact made in
this Form 10-QSB are forward-looking.  In particular, the
statements herein regarding industry prospects and future
results of operations or financial position are forward-
looking statements.

Forward-looking statements reflect management's current
expectations and are inherently uncertain.  The Company's
actual results may differ significantly from management's
expectations.

Part II.  Other Information

Item 2.  Changes in Securities and Use of Proceeds.

Mountain Oil filed with the Securities and Exchange
Commission a registration statement on Form SB-2 for the
offer and sale of up to 1,000,000 shares of common stock at
a price of $2.25 per share or a total of $2,250,000, SEC
file no. 333-37842. The registration statement was declared
effective on January 19,
2001, and the offering commenced on that date.  We
terminated the offering on February 28, 2001, after selling
715,068 shares resulting in gross proceeds of $1,609,000.
The estimated total expense of the offering for filing fees,
professional fees, printing costs and miscellaneous items
was $84,947, none of which was paid directly or indirectly
to any officer, director, or 10% stockholder.  The net
proceeds of the offering were approximately $1,524,000.

As of the date of this report, we used approximately
$374,722 of the net proceeds to purchase oil well equipment,
$476,679 to rework wells, $121,683 to purchase service
equipment, $282,000 to repay director loans, $18,527 to pay
interest expense, and $39,000 for general and administrative
expenses. Funds applied to repayment of director loans are
the only payments made directly or indirectly to any
officer, director, or 10% stockholder from the net proceeds.

Item 6.  Exhibits and Reports on Form 8-K

None

                              8
<PAGE>

SIGNATURES

In accordance with the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.

                                  MOUNTAIN OIL, INC.

Date:  October 29, 2001          By: /s/ Craig K. Phillips,
                                          President

Date:  October 29, 2001          By: /s/ Joseph Ollivier,
                                          CFO

                                   9
<PAGE>