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  THREE  MONTH  PERIOD  ENDED  MARCH  31,  2003

              [  ]  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)


                             3191  NORTH  CANYON  ROAD
                                PROVO,  UT  84604
                    (ADDRESS  OF  PRINCIPAL  EXECUTIVE  OFFICES)

                                 (801)  373-3990
                          (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  MARCH  31,  2003:  2,326,786  SHARES  OF  COMMON STOCK.

TRANSITIONAL  SMALL  BUSINESS  FORMAT:  YES  [  ]  NO  [X]

DOCUMENTS  INCORPORATED  BY  REFERENCE:  NONE

<PAGE>
                                  FORM  10-QSB
                               MOUNTAIN  OIL,  INC.
<TABLE>
<CAPTION>



<S>                                                                                <C>
                                      INDEX
                                                                                 PAGE

PART I.FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . .       2

BALANCE SHEET AS OF MARCH  31, 2003 (UNAUDITED) . . . . . . . . . . . . . . .       2

STATEMENT OF OPERATIONS FOR THE THREE . . . . . . . . . . . . . . . . . . . .       3
MONTHS ENDED MARCH 31, 2003 AND 2002 (UNAUDITED)

STATEMENT OF CASH FLOWS FOR THE THREE MONTHS. . . . . . . . . . . . . . . . .       4
ENDED MARCH 31, 2003 AND 2002 (UNAUDITED)

NOTES TO FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . .       6

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS . . . . . . . . . . . . . . . .       7
OF FINANCIAL CONDITION

ITEM 4. INTERNAL CONTROL PROCEDURES . . . . . . . . . . . . . . . . . . . . .       9

PART II.OTHER INFORMATION


SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      10

CERTIFICATION OF FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . .      10

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT . . . . . . . EX 99.1
                                                                              EX 99.2
</TABLE>
<PAGE>
Part I. Financial Information
Item 1. Financial Statements

                               MOUNTAIN OIL, INC.
                                  Balance Sheet
                                 March 31, 2003
                                  (Unaudited)
<TABLE>
<CAPTION>



<S>                                                     <C>
                                                           March 31,
                                                            2003
                                                         (Unaudited)
                                                         -----------
ASSETS
Current assets:
  Cash . . . . . . . . . . . . . . . . . . . . . . . .  $    50,000
  Accounts receivable. . . . . . . . . . . . . . . . .        4,000
                                                        ------------

    Total current assets . . . . . . . . . . . . . . .       54,000

Property and equipment, net. . . . . . . . . . . . . .      697,000
                                                        ------------

    Total Assets                                        $   751,000
                                                        ============



LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accrued expenses . . . . . . . . . . . . . . . . . .  $     1,000

Commitments. . . . . . . . . . . . . . . . . . . . . .            -

Stockholders' equity:
Preferred stock, no par value, audthorized 10,000,000
  shares;  no shares issued or outstanding . . . . . .            -
Common stock, no par value, 50,000,000 shares
  authorized; 2,326,786 shares  issued and outstanding    2,898,000
Accumulated deficit. . . . . . . . . . . . . . . . . .   (2,148,000)
                                                        ------------

Total stockholders' equity . . . . . . . . . . . . . .      750,000
                                                        ------------

    Total liabilities and stockholders equity           $   751,000
                                                        ============
</TABLE>
See accompanying notes to financial statements
                                        2
<PAGE>
                               MOUNTAIN OIL, INC.
                            Statement of Operations

<TABLE>
<CAPTION>



<S>                                                      <C>           <C>
                                                              Three Months Ended
                                                                  March 31,
                                                                2003          2002
                                                          (UNAUDITED)   (UNAUDITED)
                                                         ------------  ------------


Lease revenues. . . . . . . . . . . . . . . . . . . . .        4,000             -
                                                         ------------  ------------

                                                               4,000             -

Costs and expenses:
    General and administrative expenses . . . . . . . .       13,000        24,000
    Depreciation, depletion and amortization expense. .       21,000        42,000
                                                         ------------  ------------

      Total operating expenses. . . . . . . . . . . . .       34,000        66,000
                                                         ------------  ------------

      Loss from operations. . . . . . . . . . . . . . .      (30,000)      (66,000)
                                                         ------------  ------------

Other income (expense)
  Other income. . . . . . . . . . . . . . . . . . . . .            -         3,000
                                                         ------------  ------------
      Loss before provision for income taxes
          and discontinued operations . . . . . . . . .      (30,000)      (63,000)

Benefit from income taxes . . . . . . . . . . . . . . .            -             -
                                                         ------------  ------------

      Loss from continuing operations . . . . . . . . .      (30,000)      (63,000)

Discontinued operations:
Gain from discontinued oil and gas
  production activities including gain on
  disposal of $219,000. . . . . . . . . . . . . . . . .      204,000        14,000
                                                         ------------  ------------

      Net income (loss) . . . . . . . . . . . . . . . .      174,000       (49,000)
                                                         ------------  ------------

Loss per common share from continuing operations -
   basic and diluted. . . . . . . . . . . . . . . . . .  $     (0.01)  $     (0.02)
                                                         ------------  ------------

Income per common share from discontinued operations -
   basic and diluted. . . . . . . . . . . . . . . . . .  $      0.07   $         -
                                                         ------------  ------------

Income (loss) per common share - basic and diluted. . .  $      0.06   $     (0.02)
                                                         ------------  ------------

Weighted average number of common shares -
basic and diluted . . . . . . . . . . . . . . . . . . .    2,854,000     3,109,000
                                                         ============  ============
</TABLE>
See accompanying notes to financial statements

                                        3
<PAGE>
                               MOUNTAIN OIL, INC.
                            Statement of Cash Flows

<TABLE>
<CAPTION>



<S>                                                <C>           <C>
                                                        Three Months Ended
                                                             March 31,
                                                        2003         2002
                                                    (UNAUDITED)   (UNAUDITED)
                                                   ------------  ------------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss) . . . . . . . . . . . . . . .  $   174,000   $   (49,000)
  Adjustments to reconcile net loss to net cash
   used in operating activities:
    Depreciation and depletion. . . . . . . . . .       25,000        48,000
    Allowance for doubtful accounts . . . . . . .            -       (17,000)
    Gain on discontinued operations . . . . . . .     (219,000)            -
    Decrease (increase) in:
      Accounts receivable . . . . . . . . . . . .      (21,000)       10,000
      Inventory . . . . . . . . . . . . . . . . .        9,000         1,000
      Other current assets. . . . . . . . . . . .            -        (4,000)
    Increase (decrease) in:
      Accounts payable. . . . . . . . . . . . . .      (15,000)       53,000
      Accrued expenses. . . . . . . . . . . . . .      (26,000)       (6,000)
                                                   ------------  ------------

        Net cash used in operating activities . .      (73,000)       36,000
                                                   ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES-
  Proceeds from disposal of equimpment. . . . . .       34,000             -
  Net cash paid in disposal of assets . . . . . .       (8,000)            -
  Purchase of property and equipment. . . . . . .       (7,000)      (54,000)
                                                   ------------  ------------

        Net cash provided by investing activities       19,000       (54,000)
                                                   ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Decrease in cash overdraft. . . . . . . . . . .            -       (66,000)
  Payments on related party notes payable . . . .            -        15,000
  Payments on long-term debt. . . . . . . . . . .       (2,000)      (25,000)
                                                   ------------  ------------

        Net cash (used in) provided by
        financing activities. . . . . . . . . . .       (2,000)      (76,000)
                                                   ------------  ------------

        Net change in cash and cash equivalents .      (56,000)      (94,000)

Cash and cash equivalents at beginning of period.      106,000       173,000
                                                   ------------  ------------

Cash and cash equivalents at end of period. . . .  $    50,000   $    79,000
                                                   ============  ============

</TABLE>


SEE  ACCOMPANYING  NOTES  TO  FINANCIAL  STATEMENTS

                                        4
<PAGE>

SUPPLEMENTAL  NON-CASH  DISCLOSURE

IN  MARCH  2003,  THE  COMPANY  DISPOSED  OF CERTAIN ASSETS AND ASSIGNED CERTAIN
LIABILITIES  OF MOUNTAIN OIL, INC, TO A COMPANY CONTROLLED BY FORMER SIGNIFICANT
SHAREHOLDERS  OF  MOUNTAIN  OIL,  INC.  THE  DISPOSITION  IS  ACCOUNTED  FOR  AS
DISCONTINUED  OPERATIONS  AS THE COMPANY WILL NOT CONTINUE TO OPERATE IN OIL AND
GAS  PRODUCING  ACTIVITIES.  THE  GAIN  REALIZED  FOR THE DISPOSITION OF THE NET
LIABILITIES  WAS  AS  FOLLOWS:

<TABLE>
<CAPTION>



<S>                                                  <C>
     LESS: CASH PAID IN DISPOSAL . . . . . . . . . . . .     (8,000)
     LESS: RECEIVABLES . . . . . . . . . . . . . . . . .    (74,000)
     LESS: INVENTORY . . . . . . . . . . . . . . . . . .    (46,000)
     LESS: PREPAID EXPENSES. . . . . . . . . . . . . . .     (3,000)
     LESS: GAS AND OIL PROPERTY. . . . . . . . . . . . .   (272,000)
     LESS: EQUIPMENT AND VEHICLES. . . . . . . . . . . .    (36,000)
     ADD BACK: COMMON STOCK ACQUIRED (802,463) . . . . .    201,000
     ADD BACK: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES.    407,000
     ADD BACK: RELATED PARTY NOTES PAYABLE . . . . . . .     13,000
     ADD BACK: LONG-TERM DEBT. . . . . . . . . . . . . .     37,000
                                                          ----------

     GAIN ON DISPOSITION OF DISCONTINUED OPERATIONS. . .   $ 219,000
                                                          ==========
</TABLE>


DURING  THE  THREE  MONTHS  ENDED  MARCH  31,  2003  AND  2002  THE COMPANY PAID
APPROXIMATELY  $1,000  AND  $2,000 IN INTEREST, RESPECTIVELY, AND PAID NO INCOME
TAXES.

                                        5
<PAGE>

MOUNTAIN  OIL,  INC.
 NOTES  TO  FINANCIAL  STATEMENTS

                        PERIODS  ENDED  MARCH  31,  2003

1. ORGANIZATION ANDSUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION

THE  COMPANY  IS  INCORPORATED  UNDER  THE  LAWS  OF  THE  STATE OF UTAH AND HAS
SUBSTANTIALLY  DISCONTINUED  ITS  GAS  AND  OIL  PRODUCING  ACTIVITIES  AND  IS
CURRENTLY  OPERATING  AS A LESSOR OF ITS GAS AND OIL PROPERTIES AND PROPERTY AND
EQUIPMENT

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 MARCH 31, 2003 AND THE RESULTS OF OPERATIONS AND CASH
FLOWS  FOR THE THREE MONTHS ENDED MARCH 31,  2003. THE RESULTS OF OPERATIONS FOR
THE  THREE  MONTHS  ENDED  ARE  NOT  NECESSARILY INDICATIVE OF THE RESULTS TO BE
EXPECTED  FOR  THE  ENTIRE  YEAR.

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.  OPTIONS TO PURCHASE 100,000 SHARES OF COMMON STOCK AT
PRICES  RANGING FROM $1.00 TO $2.25 PER SHARE WERE OUTSTANDING AT MARCH 31, 2003
AND  2002.  OPTIONS  TO PURCHASE SHARES OF COMMON STOCK WERE NOT INCLUDED IN THE
DILUTED  LOSS  PER  SHARE  CALCULATION  BECAUSE  THE  EFFECT  WOULD  HAVE  BEEN
ANTIDILUTIVE.


2. GOING CONCERN

THE  ACCOMPANYING  FINANCIAL  STATEMENTS  HAVE  BEEN  PREPARED ASSUMING THAT THE
COMPANY  WILL  CONTINUE  AS  A  GOING  CONCERN.  AS  OF  MARCH  31,
2003,  THE  COMPANY  HAD  NEGATIVE CASH FLOWS FROM OPERATIONS  AND HAS  INCURRED
SUBSTANTIAL  OPERATING  LOSSES.  THESE  CONDITIONS RAISE SUBSTANTIAL DOUBT ABOUT
THE  ABILITY  OF THE  COMPANY TO  CONTINUE  AS A GOING CONCERN. THE CONSOLIDATED
FINANCIAL  STATEMENTS  DO  NOT  INCLUDE ANY  ADJUSTMENTS  THAT MIGHT RESULT FROM
THE  OUTCOME  OF  THESE   UNCERTAINTIES.   MANAGEMENT  HAS
RESTRUCTURED  THE  COMPANY'S  OPERATIONS,  BY SELLING CERTAIN ASSETS AND LEASING
OTHERS.  MOUNTAIN  OIL  WILL  FOCUS  ON  LEASING ITS EQUIPMENT, REAL ESTATE, AND
WELLS  WITH  THE  INTENTION  OF  REDUCING  OPERATING  COSTS AND OVERHEAD. IF THE
COMPANY  IS  UNABLE  TO  OBTAIN  PROFITABLE OPERATION IT WILL REQUIRE ADDITIONAL
DEBT  OR  EQUITY  FINANCING.  THERE CAN BE NO ASSURANCE THAT THE COMPANY WILL BE
SUCCESSFUL  IN  ITS  EFFORTS  TO SECURE DEBT OR EQUITY FINANCING SHOULD THE NEED
ARISE.

                                        6
<PAGE>

3. DISCONTINUED OPERATIONS

THE COMPANY ENTERED INTO AN AGREEMENT IN WHICH IT SOLD EQUIPMENT AND OIL AND GAS
WELL PROPERTIES AND ASSIGNED SUBSTANTIALLY ALL OF ITS LIABILITIES.  IN ADDITION,
THE  COMPANY  LEASED  THE  REMAINING OF ITS OIL AND GAS RELATED ASSETS AND OTHER
PROPERTY  TO A COMPANY CONTROLLED BY FORMER OFFICERS/SHAREHOLDERS WITH AN OPTION
TO PURCHASE THOSE ASSETS IN APRIL 2004. THE COMPANY HAS EFFECTIVELY DISCONTINUED
ITS  OIL AND GAS PRODUCING ACTIVITIES.  THEREFORE ALL OPERATIONS RELATING TO OIL
AND  GAS PRODUCING ACTIVITIES FOR THE PERIODS ENDED MARCH 31, 2003 AND 2002 HAVE
BEEN PRESENTED AS DISCONTINUED OPERATIONS IN THE STATEMENT OF OPERATIONS. A GAIN
WAS  RECOGNIZED  ON  THE  DISPOSITION  OF  THE RELATED ASSETS AND LIABILITIES AS
FOLLOWS:


     LESS: CASH PAID IN DISPOSAL . . . . . . . . . . . .     (8,000)
     LESS: RECEIVABLES . . . . . . . . . . . . . . . . .    (74,000)
     LESS: INVENTORY . . . . . . . . . . . . . . . . . .    (46,000)
     LESS: PREPAID EXPENSES. . . . . . . . . . . . . . .     (3,000)
     LESS: GAS AND OIL PROPERTY. . . . . . . . . . . . .   (272,000)
     LESS: EQUIPMENT AND VEHICLES. . . . . . . . . . . .    (36,000)
     ADD BACK: COMMON STOCK ACQUIRED . . . . . . . . . .    201,000
     ADD BACK: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES.    407,000
     ADD BACK: RELATED PARTY NOTES PAYABLE . . . . . . .     13,000
     ADD BACK: LONG-TERM DEBT. . . . . . . . . . . . . .     37,000
                                                          ----------

     GAIN ON DISPOSITION OF DISCONTINUED OPERATIONS. . .   $ 219,000
                                                          ==========

ITEM  2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF
OPERATION

RESULTS  OF  OPERATIONS  -  THREE  MONTHS  ENDED  MARCH  31,  2003  AND  2002

     ON  MARCH  1,  2003,  MOUNTAIN  OIL (MOLI) ENTERED INTO AN AGREEMENT WITH A
NEWLY  FORMED  COMPANY, MOUNTAIN OIL AND GAS (MOG).  MOG IS OWNED BY FORMER MOLI
SHAREHOLDERS,  WHICH  INCLUDE  DANIEL  SAM  AND  CRAIG  PHILLIPS, WHO ARE FORMER
OFFICERS  AND DIRECTORS IN MOUNTAIN OIL.  THE AGREEMENT BETWEEN MOUNTAIN OIL AND
MOG EFFECTIVELY SOLD SOME OF MOUNTAIN OIL'S OIL AND GAS PROPERTIES AND OPERATING
EQUIPMENT,  AND  LEASED MOUNTAIN OIL'S OTHER WELLS, PROPERTY AND EQUIPMENT FOR A
PERIOD  OF  ONE  YEAR  FOR  $6,500  PER  MONTH.  MOG  HAS THE RIGHT TO LEASE THE
PROPERTIES  AND EQUIPMENT FROM MOUNTAIN OIL FOR ONE YEAR AND ALSO HAS THE OPTION
TO  PURCHASE  CERTAIN  OF  MOUNTAIN  OIL'S  EQUIPMENT,  REAL  ESTATE,  AND  WELL
PROPERTIES  FOR  $650,000  DURING THE TERM OF THE LEASE, WHICH ENDS ON APRIL 24,
2004.  THIS  AGREEMENT  IS NOW EFFECTIVE SINCE ALL TERMS HAVE BEEN SUBSTANTIALLY
FULFILLED  BY  BOTH  PARTIES.  THIS  AGREEMENT  EFFECTIVELY  DISCONTINUED  THE
COMPANY'S  OIL  AND  GAS  PRODUCING  ACTIVITIES.

MOUNTAIN  OIL  RETAINED  ITS  FOUR  MOST  PRODUCTIVE WELLS, OFFICE BUILDING, AND
SURROUNDING  ACREAGE IN BALLARD, UTAH, AND THE FOLLOWING ROLLING EQUIPMENT: 1972
MACK TRUCK, 1972 HOT OIL TRUCK, 1982 GMC PUMP TRUCK, 1990 CHEMICAL TRAILER, 1956
WILSON  SWAB  RIG,  AND  ITS  1961  CARDWELL  WORKOVER  RIG.

IN  EXCHANGE FOR THE CONSIDERATION ABOVE, 802,463 COMMON SHARES WERE SURRENDERED
FROM  FORMER  SHAREHOLDERS, WHICH MAINLY CAME FROM SHARES HELD BY CRAIG PHILLIPS
AND  DANIEL  SAM.  MOUNTAIN  OIL  ALSO  ASSIGNED TO MOG SUBSTANTIALLY ALL OF ITS
LIABILITIES  AND  DEBT  RELATED  TO  ITS  PROPERTY  AND  GAS  AND OIL PRODUCTION
OPERATIONS.  MOUNTAIN  OIL  ALSO  IS TO RECEIVE 10% OF THE OUTSTANDING SHARES OF
MOG  AS  OF  APRIL  1,  2003.

CRAIG  PHILLIPS AND DANIEL SAM HAVE RESIGNED FROM THE BOARD OF DIRECTORS AND ARE
NO  LONGER  OFFICERS  OF  MOUNTAIN OIL.  JOSEPH OLLIVIER HAS BECOME PRESIDENT OF
MOUNTAIN  OIL  AND  LYNN  STRATFORD HAS BEEN ADDED TO THE BOARD OF DIRECTORS AND
ALSO  BECOME  THE  SECRETARY,  TREASURER,  AND  CHIEF  FINANCIAL  OFFICER OF THE
CORPORATION.  HARRY  PETERSON  CONTINUES  AS  A  DIRECTOR.

                                        7
<PAGE>
    IF  MOG  IS  UNABLE  TO  PURCHASE  THE  LEASED PROPERTIES AND EQUIPMENT FROM
MOUNTAIN  OIL  FOR THE OPTION PRICE OF  $650,000 ON OR BEFORE APRIL 24, 2004, OR
DEFAULTS  ON  THE  MONTHLY  LEASE PAYMENTS; THE COMPANY'S PLAN IS TO RE-EVALUATE
WHETHER  OR  NOT  TO  LEASE  OR  SELL ITS ASSETS TO OTHER INTERESTED OIL AND GAS
CONCERNS.

     LEASE REVENUE FOR THE THREE MONTHS ENDED MARCH 31, 2003 WAS $4,000.  DURING
2002  FOR  SAME  PERIOD,  REVENUES  CONSISTED  OF OIL AND GAS SALES OF $151,000.
RESULTS  OF  OPERATIONS FROM OIL AND GAS PRODUCING ACTIVITIES HAVE BEEN INCLUDED
IN  DISCONTINUED  OPERATIONS  FOR  THE  PERIODS  ENDING MARCH 31, 2003 AND 2002.
DURING  2003,  IN  ORDER  TO  IMPROVE  OUR CASH FLOW, WE DETERMINED TO FOCUS OUR
OPERATING  EFFORTS  ON  LEASING  THE WELLS TO ANOTHER OIL AND GAS COMPANY.  SUCH
EFFORTS  HAVE  IMPROVED OUR CASH FLOW AND REDUCED OUR NET LOSS BUT HAVE RESULTED
IN  A  SIGNIFICANT  DECREASE  IN  REVENUE.

     OPERATING  COSTS  FOR  THE  THREE MONTHS ENDED MARCH 31, 2003 AND 2002 WERE
$34,000  AND  $66,000  RESPECTIVELY.  THIS  48%  DECREASE IN PRODUCTION COSTS IS
ATTRIBUTABLE  TO  THE  REDUCTION  OF  OUR  WELL  REWORKING  ACTIVITIES.  WE ALSO
ELIMINATED  ANY  FULL OR PART TIME EMPLOYEES BECAUSE OF THE NEW LEASE AGREEMENT.
ALL  OF  THE  OFFICERS AND DIRECTORS OF MOUNTAIN OIL CURRENTLY SERVE WITHOUT ANY
COMPENSATION.

     GENERAL  AND  ADMINISTRATIVE  EXPENSES  FROM  CONTINUING  OPERATIONS, WHICH
CONSISTED  PRIMARILY OF PROFESSIONAL FEES, DECREASED 46% TO $13,000 FROM $24,000
FOR  THE  THREE  MONTHS  ENDED  MARCH  31,  2003  AND  2002,  RESPECTIVELY.
DEPRECIATION,  DEPLETION  AND  AMORTIZATION  EXPENSES  RELATED  TO  CONTINUING
OPERATIONS  DECREASED  50% TO $21,000 FOR THE THREE MONTHS ENDED MARCH 31, 2003,
FROM  $42,000  FOR  THE  SAME  PERIOD  IN  2002.  THE  SIGNIFICANT  DECREASE  IN
DEPRECIATION,  DEPLETION AND AMORTIZATION WAS A DIRECT RESULT OF THE DECREASE IN
PRODUCTION  AS DISCUSSED ABOVE AND THE NEW LEASE AGREEMENT ENTERED INTO ON MARCH
1,  2003.  THESE  DECREASES ARE ATTRIBUTABLE TO THE COMPANY'S GENERAL DECLINE IN
OPERATIONS  AND SALE AND LEASING OF ASSETS.  MOUNTAIN OIL'S CHANGE IN OPERATIONS
COMBINED WITH OUR REDUCTION OF GENERAL AND ADMINISTRATIVE EXPENSES RESULTED IN A
52%  DECREASE  IN  THE  NET  LOSS  FROM  MARCH  31,  2002.

AS  A RESULT OF THE FOREGOING, WE REALIZED A NET LOSS OF $30,000 FROM CONTINUING
OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 30, 2003, AS COMPARED TO A NET LOSS
OF  $63,000  FOR  THE  THREE  MONTHS  ENDED  MARCH  31,  2002

AS  PREVIOUSLY  MENTIONED, IN MARCH 2003, THE COMPANY DISPOSED OF CERTAIN ASSETS
AND ASSIGNED CERTAIN LIABILITIES OF MOUNTAIN OIL, INC.  MOG, WHICH IS CONTROLLED
BY FORMER SHAREHOLDERS OF MOUNTAIN OIL, INC. WERE SOLD THESE ASSETS AND ASSIGNED
CERTAIN  LIABILITIES. MOUNTAIN OIL REALIZED A GAIN FROM DISCONTINUED OPERATIONS,
WHICH  RESULTED PRIMARILY FROM THE NET LIABILITIES DISPOSED OF TO MOG. THIS GAIN
FROM  DISCONTINUED  OPERATIONS  OF $204,000 COMBINED WITH A LOSS FROM CONTINUING
OPERATIONS  OF $30,000 FOR THE THREE MONTHS ENDED MARCH 31, 2003 RESULTED IN NET
INCOME  OF  $174,000 AS COMPARED TO A LOSS OF $49,000 FOR THE THREE MONTHS ENDED
MARCH  31,  2002.

LIQUIDITY  AND  CAPITAL  RESOURCES

AS NOTED ABOVE, DURING 2003 WE HAVE DISCONTINUED OIL AND GAS OPERATIONS IN ORDER
TO  SUSTAIN THE COMPANY THROUGH CASH FLOW GENERATED FROM LEASING ITS FOUR WELLS,
REAL  ESTATE,  AND  ROLLING  EQUIPMENT.  DURING THE THREE MONTHS ENDED MARCH 31,
2003  WE  USED  CASH  FLOW  FROM  OPERATING ACTIVITIES OF $73,000 AS COMPARED TO
POSITIVE  CASH  FLOW  PROVIDED  BY  OPERATING  ACTIVITIES OF $36,000 IN THE SAME
PERIOD  IN  2002.  WE  PLAN  TO CONTINUE TO FOCUS ON LEASING OUR WELLS UNTIL OUR
AGREEMENT  WITH  MOG IS FULFILLED OR TERMINATED.  AT THAT TIME MOUNTAIN OIL WILL
EITHER  SELL ITS EQUIPMENT, REAL ESTATE, AND WELLS TO MOG OR RE-EVALUATE WHETHER
OR  NOT  TO  LEASE  OR SELL ITS ASSETS TO OTHER INTERESTED OIL AND GAS CONCERNS.

     AS  A  RESULT  OF ONGOING PAYMENTS OF LONG-TERM DEBT, AND THE NEW AGREEMENT
WITH MOG, WE USED CASH IN FINANCING ACTIVITIES OF $2,000 DURING THE THREE MONTHS
ENDED  MARCH  31,  2003.  DURING  THE  SAME PERIOD IN 2002, WE USED $76,000 FROM
FINANCING  ACTIVITIES.

     AT  MARCH  31,  2003,  WE  HAD  WORKING CAPITAL OF $53,000 AS COMPARED TO A
WORKING  CAPITAL  DEFICIT  OF  $123,000 AT MARCH 31, 2002.  THIS INCREASE IN OUR
WORKING  CAPITAL  IS  PRINCIPALLY  DUE  TO  THE DISPOSAL OF NET LIABILITIES FROM
DISCONTINUED  OPERATIONS.

                                        8
<PAGE>
     MOUNTAIN OIL HAS REDUCED OPERATING COSTS THROUGH THE REDUCTION OF PERSONNEL
AND  OPERATIONS  AND  IS  NOW  FOCUSING ON LEASING ITS WELLS, EQUIPMENT AND REAL
ESTATE. IF THE COMPANY IS UNABLE TO OPERATE PROFITABLY IT MAY REQUIRE ADDITIONAL
DEBT  OR  EQUITY  FINANCING  WITHIN  THE  NEXT TWELVE MONTHS. IF MOUNTAIN OIL IS
SUCCESSFUL  IN  IMPROVING  CASH FLOW DURING THIS PERIOD WE BELIEVE THAT MOUNTAIN
OIL  WILL  GENERATE  SUFFICIENT  REVENUES  INTERNALLY  TO  COVER  ITS  OPERATING
EXPENSES.



ITEM  4.  CONTROLS  AND  PROCEDURES

     (A)  EVALUATION  OF  DISCLOSURE  CONTROLS  AND  PROCEDURES

     BASED  ON  THEIR EVALUATIONS AS OF A DATE WITHIN 90 DAYS OF THE FILING DATE
OF  THIS REPORT, THE PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
OF  THE  COMPANY  HAVE  CONCLUDED  THAT  THE  COMPANY'S  DISCLOSURE CONTROLS AND
PROCEDURES  (AS  DEFINED  IN  RULES 13A-14(C) AND 15D-14(C) UNDER THE SECURITIES
EXCHANGE  ACT) ARE EFFECTIVE TO ENSURE THAT INFORMATION REQUIRED TO BE DISCLOSED
BY THE COMPANY IN REPORTS THAT THE COMPANY FILES OR SUBMITS UNDER THE SECURITIES
EXCHANGE  ACT  IS  RECORDED,  PROCESSED, SUMMARIZED AND REPORTED WITHIN THE TIME
PERIODS  SPECIFIED  IN  THE  RULES  AND  FORMS  OF  THE  SEC.

     (B)  CHANGES  IN  INTERNAL  CONTROLS

     THERE  WERE NO SIGNIFICANT CHANGES IN THE COMPANY'S INTERNAL CONTROLS OR IN
OTHER FACTORS THAT COULD SIGNIFICANTLY AFFECT THESE INTERNAL CONTROLS SUBSEQUENT
TO  THE  DATE  OF THEIR MOST RECENT EVALUATION, INCLUDING ANY CORRECTIVE ACTIONS
WITH  REGARD  TO  SIGNIFICANT  DEFICIENCIES  AND  MATERIAL  WEAKNESSES.

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"  FOR  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  1.  CHANGES  IN  SECURITIES AND USE OF PROCEEDS:  DUE TO THE NEW AGREEMENT
WITH  MOG, MOUNTAIN OIL HAS EFFECTIVELY REDUCED THE AMOUNT OF SHARES OUTSTANDING
BY  802,463.  THESE  SHARES  CAME  MAINLY  FROM  SHARES PREVIOUSLY HELD BY CRAIG
PHILLIPS  AND  DANIEL  SAM.

ITEM  2.  EXHIBITS  AND  REPORTS  N  FORM  8-K:
THE  FOLLOWING  EXHIBITS  ARE  FILED  HEREWITH:

NUMBER          DESCRIPTION                                   LOCATION
-----------     CHANGES  IN  CONTROL  OF  REGISTRANT          8-K  FILED 4/22/03
-----------     ACQUISITION  OR  DISPOSITION  OF  ASSETS      8-K  FILED 4/22/03

                                        9
<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:  MAY  6,  2003          BY:  /S/  JOSEPH  OLLIVIER,  PRESIDENT
--------------------               ---------------------------------
DATE:  MAY  6,  2003          BY:  /S/  LYNN  STRATFORD,  CFO
--------------------               --------------------------



CERTIFICATION

WE,  JOSEPH  OLLIVIER  (PRESIDENT)  AND  LYNN  STRATFORD  (CFO)  CERTIFY  THAT:

1.     WE HAVE REVIEWED THIS ANNUAL REPORT ON FORM 10-QSB OF MOUNTAIN OIL, INC.;

2.     BASED  ON  OUR  KNOWLEDGE, THIS ANNUAL REPORT DOES NOT CONTAIN ANY UNTRUE
STATEMENT  OF A MATERIAL FACT OR OMIT TO STATE A MATERIAL FACT NECESSARY TO MAKE
THE  STATEMENTS  MADE, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH SUCH STATEMENTS
WERE  MADE,  NOT  MISLEADING  WITH  RESPECT TO THE PERIOD COVERED BY THIS ANNUAL
REPORT;

3.     BASED  ON  OUR  KNOWLEDGE,  THE FINANCIAL STATEMENTS, AND OTHER FINANCIAL
INFORMATION  INCLUDED  IN  THIS  ANNUAL  REPORT,  FAIRLY PRESENT IN ALL MATERIAL
RESPECTS  THE  FINANCIAL  CONDITION, RESULTS OF OPERATIONS AND CASH FLOWS OF THE
REGISTRANT  AS  OF,  AND  FOR,  THE  PERIODS  PRESENTED  IN  THIS ANNUAL REPORT;

4.     WE  AND  THE  REGISTRANT'S  OTHER CERTIFYING OFFICERS ARE RESPONSIBLE FOR
ESTABLISHING  AND  MAINTAINING DISCLOSURE CONTROLS AND PROCEDURES (AS DEFINED IN
EXCHANGE  ACT  RULES  13A-14  AND  15D-14)  FOR  THE  REGISTRANT  AND  HAVE:

A)     DESIGNED  SUCH DISCLOSURE CONTROLS AND PROCEDURES TO ENSURE THAT MATERIAL
INFORMATION RELATING TO THE REGISTRANT, INCLUDING ITS CONSOLIDATED SUBSIDIARIES,
IS  MADE  KNOWN  TO  US BY OTHERS WITHIN THOSE ENTITIES, PARTICULARLY DURING THE
PERIOD  IN  WHICH  THIS  ANNUAL  REPORT  IS  BEING  PREPARED;

B)     EVALUATED  THE  EFFECTIVENESS OF THE REGISTRANT'S DISCLOSURE CONTROLS AND
PROCEDURES  AS  OF A DATE WITHIN 90 DAYS PRIOR TO THE FILING DATE OF THIS ANNUAL
REPORT  (THE  "EVALUATION  DATE");  AND

C)     PRESENTED  IN  THIS ANNUAL REPORT OUR CONCLUSIONS ABOUT THE EFFECTIVENESS
OF  THE  DISCLOSURE  CONTROLS  AND  PROCEDURES BASED ON OUR EVALUATION AS OF THE
EVALUATION  DATE;

5.     WE  AND  THE REGISTRANT'S OTHER CERTIFYING OFFICERS HAVE DISCLOSED, BASED
ON  OUR  MOST  RECENT  EVALUATION,  TO  THE  REGISTRANT'S AUDITORS AND THE AUDIT
COMMITTEE  OF  REGISTRANT'S  BOARD  OF  DIRECTORS  (OR  PERSONS  PERFORMING  THE
EQUIVALENT  FUNCTIONS):

                                       10
<PAGE>

A)     ALL  SIGNIFICANT  DEFICIENCIES  IN  THE  DESIGN  OR OPERATION OF INTERNAL
CONTROLS  WHICH  COULD  ADVERSELY  AFFECT  THE  REGISTRANT'S  ABILITY TO RECORD,
PROCESS,  SUMMARIZE  AND  REPORT  FINANCIAL  DATA  AND  HAVE  IDENTIFIED FOR THE
REGISTRANT'S  AUDITORS  ANY  MATERIAL  WEAKNESSES  IN  INTERNAL  CONTROLS;  AND


B)     ANY  FRAUD,  WHETHER  OR  NOT MATERIAL, THAT INVOLVES MANAGEMENT OR OTHER
EMPLOYEES WHO HAVE A SIGNIFICANT ROLE IN THE REGISTRANT'S INTERNAL CONTROLS; AND

6.     WE  AND THE REGISTRANT'S OTHER CERTIFYING OFFICERS HAVE INDICATED IN THIS
ANNUAL  REPORT WHETHER THERE WERE SIGNIFICANT CHANGES IN INTERNAL CONTROLS OR IN
OTHER  FACTORS  THAT  COULD SIGNIFICANTLY AFFECT INTERNAL CONTROLS SUBSEQUENT TO
THE  DATE  OF  OUR MOST RECENT EVALUATION, INCLUDING ANY CORRECTIVE ACTIONS WITH
REGARD  TO  SIGNIFICANT  DEFICIENCIES  AND  MATERIAL  WEAKNESSES.


DATE:  MAY  6,  2003          BY:  /S/  JOSEPH  OLLIVIER,  PRESIDENT
--------------------               ---------------------------------
DATE:  MAY  6,  2003          BY:  /S/  LYNN  STRATFORD,  CFO
--------------------               --------------------------