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 June 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. 0-29129

                            SOURCE ENERGY CORPORATION
        (Exact name of small business issuer as specified in its charter)

          Utah                                          87-0370820
(State or Other Jurisdiction of                        (IRS  Employer
 Incorporation or Organization)                         Identification No.)

                   3040 Granite Meadow Lane, Sandy Utah 84092
                    (Address of principal executive offices)

                                 (801) 943-5490
                           (Issuer's telephone number)

                                       N/A
      (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 [  ]
<PAGE>

                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 the latest practicable date:
                         404,451 shares of common stock.


                                   FORM 10-QSB
                            SOURCE ENERGY CORPORATION

                                     PART I.
                              Financial Information

Item 1.  Financial Statements

     The Financial Statements of the Registrant required to be filed with this
10-QSB Quarterly Report have been reviewed and are on file with the Company's
auditor, Mantyla McReynolds. In the opinion of management, the Financial
Statement fairly present the financial condition of the Registrant.



<Page>












                            SOURCE ENERGY CORPORATION
               (Formerly known as Parker Energy Technology, Inc.)


                         Condensed Financial Statements

                                  June 30, 2001






























<PAGE>

<TABLE>
<CAPTION>



                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                             Condensed Balance Sheet
                                  June 30, 2001
                                   (Unaudited)

                                            ASSETS

Current Assets
<S>                                                                             <C>
  Cash and cash equivalents                                                     $            36,842
  Accounts receivable                                                                         2,962
                                                                                  -----------------
                   Total Current Assets                                                      39,804

Property and Equipment
  Equipment                                                                                  13,872
  Proved oil and gas properties                                                             597,353
                                                                                  -----------------
               Total Property and Equipment                                                 611,225
       Less: Accumulated Depreciation and Depletion                                        (531,294)
                                                                                  -----------------
                Net Property and Equipment                                                   79,931
                                                                                  -----------------
                       Total Assets                                             $           119,735
                                                                                  =================

                             LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
Current Liabilities
 Judgement payable                                                                           75,000
 Taxes Payable                                                              $                   402
                                                                                 ------------------
                 Total Current Liabilities                                                   75,402
                                                                                 ------------------
                     Total Liabilities                                                       75,402


Stockholders' Equity
  Capital Stock -- 200,000,000 shares authorized having a par value of $.00025
   per share; 404,451 issued and
outstanding                                                                                     101
  Additional Paid-in Capital                                                              1,244,954
  Accumulated Deficit                                                                    (1,200,722)
                                                                                 ------------------
                Total Stockholders' Equity                                                   44,333
                                                                                 ------------------
        Total Liabilities and Stockholders' Equity                             $            119,735
                                                                                 ==================
</TABLE>



                                              2

<PAGE>

<TABLE>
<CAPTION>


                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                       Condensed Statements of Operations
            For the Three and Six Months Ended June 30, 2001 and 2000
                                   (Unaudited)


                                               Three         Three           Six           Six
                                              Months        Months         Months        Months
                                               Ended         Ended          Ended         Ended
                                             June 30,      June 30,       June 30,      June 30,
                                               2001          2000           2001          2000

                                           ------------- -------------  ------------- -------------
<S>                                        <C>                  <C>            <C>           <C>
Revenues from Oil and Gas Activities       $      11,774        14,910         20,901        29,515
Oil and Gas Producing Expense:
  Production costs                                 2,641         3,701          6,097         6,938
  Depletion                                        2,530         3,918          5,040         7,836
                                           ------------- -------------  ------------- -------------
    Total Oil and Gas Producing Expense            5,171         7,619         11,137        14,774

      Income/(Loss) from Oil and Gas
                Activities                         6,603         7,291          9,764        14,741
Other Income/(Expense):
  General and administrative expense              (1,532)       (6,003)       (4,480)       (6,322)
  Judgment expense                                     0             0              0      (90,039)
  Interest                                            61            14            126            20
                                           ------------- -------------  ------------- -------------
       Total Other Income/(Expense)               (1,471)       (5,989)        (4,354)     (96,341)
                                           ------------- -------------  ------------- -------------

Net income/(loss) before income tax                5,132         1,302          5,410      (81,600)
Provision for income tax                               0           447            100           447
                                           ------------- -------------  ------------- -------------

Net Income/(Loss)                          $       5,132           855          5,310      (82,047)
                                           ============= =============  ============= =============


Income/(Loss) per Share                    $           0.01       0.00           0.01        (0.20)
                                           ============= =============  ============= =============

Weighted Average Shares                          404,451       404,451        404,451       404,451
Outstanding
                                           ============= =============  ============= =============
</TABLE>


                                                  3

<PAGE>

<TABLE>
<CAPTION>



                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                            Statements of Cash Flows
            For the Three Months and Six Ended June 30, 2001 and 2000
                                   (Unaudited)



                                                        Three         Three          Six           Six
                                                        Months        Months       Months        Months
                                                        Ended         Ended         Ended         Ended
                                                       June 30,      June 30,     June 30,      June 30,
                                                         2001          2000         2001          2000

                                                     ------------  ------------  -----------  -------------

<S>                                                  <C>              <C>        <C>         <C>
Cash Flows From Operating Activities
Net Income/(loss)                                    $      5,132           855        5,310       (82,047)
Adjustments to reconcile net income to net cash
provided by
 operating activities:
    Depreciation and depletion                              2,830         3,918        5,640          7,836
    Stock issued for debt                                       0        15,604            0         15,604
    (Increase)/decrease in accounts receivable               (148)        8,042        2,714         (1,479)
    Increase/(decrease) in current liabilities                (45)      (14,855)         (45)        75,185
                                                     ------------  ------------  -----------  -------------
Net Cash Provided by/(Used for) Operating                  7,769         13,564       13,619         15,099
Activities
                                                     ------------  ------------  -----------  -------------

Cash Flows From Financing Activities
  Proceeds from issuance of shares                              0             0            0              0
                                                     ------------  ------------  -----------  -------------
Net Cash Provided by Financing Activities                       0             0            0              0
                                                     ------------  ------------  -----------  -------------

Net Increase/(Decrease) in Cash                             7,769        13,564       13,619         15,099
Beginning Cash Balance                                     29,073        12,248       23,223         10,713
                                                     ------------  ------------  -----------  -------------

Ending Cash Balance                                  $     36,842        25,812       36,842         25,812
                                                     ============  ============  ===========  =============


Supplemental Disclosure of Cash Flow
Information:
  Cash paid during the year for income taxes         $       100           -0-          447            -0-

</TABLE>



                                                  4

<PAGE>




                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                  June 30, 2001
                                   (Unaudited)

Note 1         PRELIMINARY NOTE

     The  accompanying  condensed  consolidated  financial  statements have been
     prepared  without  audit,  pursuant  to the  rules and  regulations  of the
     Securities and Exchange  Commission.  Certain  information  and disclosures
     normally  included in  financial  statements  prepared in  accordance  with
     generally accepted accounting principles have been condensed or omitted. It
     is  suggested  that  these  condensed  financial   statements  be  read  in
     conjunction with the financial statements and notes thereto included in the
     Company's Annual Audit for the year ended December 31, 2000.


Note 2         ORGANIZATION

     The  Company  was  originally  incorporated  under the name Exit,  Inc.  in
     accordance with the laws of the State of Utah on January 30, 1981. In April
     of 1984,  the Company  changed its name to Parker Energy  Technology,  Inc.
     From its inception until May 20, 1997, the Company had been in the business
     of oil  and gas  exploration  and  production  activities.  Currently,  the
     Company has one producing well,  located in Grand County,  Utah. On May 20,
     1997, the Company  effected a reverse split of its outstanding  shares from
     81,637,100 to 1,632,742.  Simultaneous thereto, the Company entered into an
     agreement  with an individual to engage in the business of distillate  fuel
     systems  process plants and changed its name to Source Energy  Corporation.
     On March 10, 2000 a U.S.  district  court judge  rescinded the May 20, 1997
     agreement and ordered that the Company be returned,  as nearly as possible,
     to its  status  prior to  consummation  of said  agreement.  This  included
     cancelling 12,305,800 shares of common stock issued in the transaction.

     The Company effected a 1 for 40 reverse split, which became effective April
     10, 2000.

Note 3         JUDGEMENT

     On March 10, 2000, a U.S.  district court judge  rescinded the May 20, 1997
     agreement  referenced  in Note 2, and ordered that the Company be returned,
     as  nearly  as  possible,  to its  status  prior  to  consummation  of said
     agreement.  The Court further ordered that the Company pay the plaintiff in
     the legal action his  attorneys  fees in the amount of $15,039 and an award
     of $75,000 to  compensate  him for the benefit  conferred on Source  Energy
     Corporation  shareholders in prosecuting this action. The plaintiff in this
     case  was  returned  by  the  Court  to the  presidency  of  Source  Energy
     Corporation, a position


                                                  5

<PAGE>


                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                  June 30, 2001
                                   (Unaudited)

Note 3         JUDGEMENT (cont.)
               ---------

     he held prior to the May 20, 1997 agreement.

     The Court also ordered that the other  defendants in the case,  T.R. Kraft,
     and Point Source Energy Corporation, an Oregon corporation, to pay an award
     to the Company in the amount of  $225,000.  The Company  does not intend to
     record this amount as a  receivable  on its books  because the  defendants'
     whereabouts are unknown and ability to collect from them is in question.


Note 4         OTHER LEGAL MATTER
               ------------------

     On September 22, 2000, the Securities and Exchange Commission ("SEC") filed
     a complaint in the United  States  District  Court,  naming  Source  Energy
     Corporation  and Timothy R.  Kraft,  a former  officer and  director of the
     Company, as defendants.

     The  SEC has  included  the  Company  in its  lawsuit  against  Mr.  Kraft,
     apparently  because press releases were issued with its name on them. Under
     these  circumstances,  the Company is  reviewing  its options for filing an
     answer to the complaint  filed by the SEC and defending  itself against the
     allegations of the SEC.

















                                                  6

<PAGE>






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

     See the Company's 10-KSB for the year ended December 31, 2000, as filed
with Securities and Exchange Commission.


                           PART II. OTHER INFORMATION

Item 1.     Legal Proceedings

     On or about April 4, 2001, Source requested that the Securities and
Exchange Commission ("SEC") waive the disqualifications from the availability of
Regulation A and D as they may be applicable to Source so that the Commission
may proceed for an entry of Permanent Injunction against Source in accordance
with Source's Consent to Injunction without further delay. The Company has not
received any response from the SEC.

     On September 22, 2000, the SEC filed a complaint in the United States
District Court, case no. 2:00CV 0757B, naming Source and Timothy R. Kraft, a
former officer and director of Source, as defendants.

     On May 20, 1997, Source entered into an agreement with Timothy R. Kraft and
Point Source Energy ("Point") to engage in the business of distillate fuel
systems process plants, and in connection with that transaction issued
12,305,800 shares of common stock.

     Subsequently, Craig Carpenter, a former officer and director of Source and
a stockholder, filed a shareholder derivative suit in the United States District
Court, District of Utah, case no. 2:99CV0332K, against Mr. Kraft, Point, and
Source alleging that Kraft and Point committed fraud to induce plaintiffs to
enter into the original transaction ("Carpenter Suit").

     On March 10, 2000 the District Court issued a judgment and order in the
Carpenter Suit rescinding the May 20, 1997 transaction. The judgment states that
Source be returned, as nearly as possible, to its status prior to consummation
of said transaction. This included canceling 12,305,800 shares of common stock
issued in the transaction to Kraft by Source, reinstating Craig Carpenter, Helen
G. Carpenter, and Kathy Morrison as officers and directors of Source, and the
return of 182,852 shares of Common Stock from Kraft to Carpenter, which were
originally sold directly by Carpenter to Kraft. Craig Carpenter was granted an
award against Source in the amount of $75,000 to compensate him for the benefit
he conferred on the stockholders of Source by prosecuting the action against
Kraft and Point. Source was awarded damages against Kraft in the amount of
$75,000.

     During his tenure as an officer and director of Source, Mr. Kraft issued
two press releases that the SEC alleges are false and misleading. The SEC
further alleges that the press releases were issued by Kraft in an effort to
manipulate the public market price for Source common stock in violation of
Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. The SEC is seeking an order enjoining Source from violating these
provisions of the Securities Exchange Act of 1934 in the future.

     In the course of the Carpenter Suit, Mr. Carpenter informed the SEC of the
conduct of Mr. Kraft, and regularly kept the SEC informed of the progress of the
case and his efforts to remove Mr. Kraft. Although Source received no monetary
or other benefit from Mr. Kraft's alleged fraud, Mr. Kraft was removed from any
position of control over Source by order of the District Court in the Carpenter
Suit, Mr. Carpenter was reinstated as an officer and director, and Mr. Carpenter
cooperated fully with the SEC in providing to it information on the Carpenter
Suit, the SEC still included Source in its lawsuit against Mr. Kraft apparently
because the press releases were issued with Source's name on them.


Exhibits and Reports On Form 8-K

EXHIBITS:  None

REPORTS ON FORM 8-K:  None

<Page>


                                   Signatures

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

                                        SOURCE ENERGY CORPORATION


Date: August 6, 2001                       By:/S/ CRAIG CARPENTER
                                           Craig Carpenter, President