Exhibit No. 1
Form 10-QSB
Source Energy Corporation
SEC file No. 0-29129

             Item 2. Acquisition or Disposition of Assets

Business

     Existing operations and plan of operation

     In 1981, Source purchased a working interest in, and became the
operator of, the property known as Bureau of Land Management Federal
Oil and Gas Lease No. U-14654 consisting of 480 acres.  Located in
Grand County, Utah, this is Source's only oil and gas property.  The
Company has one producing well on this lease.  At the present time the
Company maintains a 68.78% working interest in the property.

     Source has previously drilled two other dry holes on the lease.
We intend to evaluate the lease for new sites that show a reasonable
chance of success in drilling producing wells.  We will also look for
opportunities to acquire additional oil and gas properties for
development in the states of Utah and Wyoming.

     We sell all of our oil production to Giant Industries at spot
prices.  The spot price on April 10, 2000 was $32 per barrel for the
oil from our well, which is Yellow Wax Crude.  Emerging from a two-
year downturn, oil prices reached their highest level since the Gulf
War in 1999 and have continued to rise.  The industry forecasts even
higher prices the next two years.  Giant Industries will take all of
the oil that we can produce.

     Prices for oil and gas are driven strictly by supply and demand.
We can sell our products to any one of five local distributors.
Prices among the five distributors are nearly equal.  We decided to
sell to Giant Industries based on quality of service and proximity of
their delivery point to our lease.  We do not use commodity futures
contracts or price swaps in marketing our crude oil.

     Source has been unable pursue any meaningful business operations
during the past two years because of the litigation resulting form the
transaction with T.R. Kraft and Point.  The litigation was resolved by
a judgement entered in March 2000, so Source believes it is now in a
position to pursue more active business operations.

     As a result of these circumstances, operations were limited in
the past two years to maintaining production from our one producing
oil well in Grand County.  Revenue from oil production in 1999 and
1998 was $26,043 and $20,143, respectively.  Revenue for the first
three months of 2000 was $14,605, compared to $4,694 for the same
period in 1999.  The increase in revenue from fiscal year 1998 to
fiscal year 1999 and from the first calendar quarter of 1999 to the
first quarter of 2000 is attributable primarily to rising oil prices.

     Oil producing expense was $26,523 for the year ended December 31,
1998, as compared to $16,050 for the year ended December 31, 1999.
For the three months ended March 31, 2000, oil producing cost was
$7,155 as compared to $3,761 for the same period in 1999.  Oil
producing expense as a percentage of revenue decreased substantially
in the year ended December 31, 1999 and the first calendar quarter of
2000 as a result of lower production costs attributable to the oil
produced and lower depletion cost.

<PAGE>

     Source realized income from oil activities of $9,993 for the year
ended December 31, 1999, and a loss from oil activities of $6,375 for
the year ended December 31, 1998.  Income from oil activities was
$7,430 for the three months ended March 31, 2000, as compared to $993
for the comparable period in 1999.

     General and administrative expense was $5,125 for the year ended
December 31, 1999 and $10,881 for the year ended December 31, 1998.
Consequently, Source realized net income of $4,775 for 1999 as
compared to a net loss of $17,235 for 1998.

     For the three months ended March 31, 2000, general and
administrative expense was $320, as compared to $2,573 for the same
period in 1999.  However, Source realized and extraordinary judgement
expense of $90,039 in the shareholder derivative lawsuit brought
against T.R. Kraft, Point, and Source.  As a result, Source had a net
loss of $82,902 for the first three months of 2000, and a net loss of
$1,638 for the first three months of 1999.

     At March 31, 2000, total current assets were $26,852.  Current
liabilities at March 31, 2000, were $90,139, which included a
judgement payable to Craig Carpenter, an officer and director, in the
amount of $90,039 resulting form the litigation with T.R. Kraft and
Point.  A portion of the liability to Mr. Carpenter in the amount of
$15,039 was settled in April 2000 through the issuance of 200,000
shares of Source Common Stock.  Therefore, Source has a working
capital deficit of $48,248.  Craig Carpenter has advised the Board of
Directors that he does not intend to take any collection action
against Source on the $75,000 we currently owe to him, while Source
seeks ne capital to pursue expansion of its operations.  So long as
Mr. Carpenter forbears, we believe we have sufficient cash resources
and income from oil activities to sustain our current operations over
the next 12 months.

However, these resources are not sufficient to embark on new drilling
activity on our existing lease or to acquire and develop any other oil
and gas properties.  Consequently, we intend to seek additional debt
or equity financing over the next year to fund expansion of our
operations.  However, there can be no assurance that additional
funding will be available or, if available, that it will be available
on acceptable terms or in required amounts.  If we do find financing,
there is no assurance that we will succeed in expanding our operations
or remain profitable.

<PAGE>
               Item 7. Financial Statements and Exhibits


                       SOURCE ENERGY CORPORATION
           Formerly known as Parker Energy Technology, Inc.
                    Unaudited Financial Statements
                        March 31, 1999 and 1998

                       TABLE OF CONTENTS






      Balance Sheet -- March 31, 2000


      Statements of Operations for  the  Three
      Months Ended March 31, 2000 and 1999.


      Statements of Cash Flows for  the  Three
      Months Ended March 31, 2000 and 1999.


      Notes to  Financial Statements

<PAGE>


                   SOURCE ENERGY CORPORATION
        Formerly known as Parker Energy Technology, Inc.
                    Condensed Balance Sheet
                         March 31, 2000
                           (Unaudited)

                             ASSETS

Current Assets
  Cash and cash equivalents                      $     12,247

  Accounts receivable                                  14,605

         Total Current Assets                          26,852



Property and Equipment

  Equipment                                             5,476

  Proved oil and gas properties                       597,353

     Total Property and Equipment                     602,829

Less: Accumulated Depreciation and Depletion         (514,700)

      Net Property and Equipment                       88,129

             Total Assets                        $    114,981

              LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Current Liabilities

 Judgement payable - related party               $   90,039
 Taxes Payable                                          100


      Total Current Liabilities                      90,139

          Total Liabilities                          90,139

Stockholders' Equity

   Capital Stock -- 200,000,000 shares
    authorized having a
    par  value  of $.00025 per  share;
    4,088,981 shares issued and outstanding           1,022

  Additional Paid-in Capital                      1,226,929

  Accumulated Deficit                            (1,203,109)

      Total Stockholders' Equity                     24,842

Total Liabilities and Stockholders' Equity     $    114,981

        See accompanying notes to financial statements.

<PAGE>

                    SOURCE ENERGY CORPORATION
        Formerly known as Parker Energy Technology, Inc.
               Condensed Statements of Operations
       For the Three Months Ended March 31, 2000 and 1999
                           (Unaudited)


                                      For Three      For Three
                                        Months        Months
                                        Ended          Ended
                                      March 31,      March 31,
                                         2000          1999

Revenues from Oil and Gas Activities $    14,605     $     4,694

Oil and Gas Producing Expense:

  Production costs                         3,237           2,193


  Depletion (Note 2)                       3,918           1,568

Total Oil and Gas Producing  Expense       7,155           3,761


 Income/(Loss) from Oil and Gas
           Activities                      7,450             933

Other Income/(Expense):

    General and administrative expense      (320)         (2,573)

    Judgement expense                    (90,039)             --

    Interest                                   7               2

  Total Other Income/(Expense)           (90,352)         (1,638)

Net loss before income tax               (89,902)         (1,638)

Provision for income tax (Notes 1 & 4)      -0-              -0-


Net Loss                            $    (89,902)     $    (1,638)


Profit/(Loss) per Share             $      (.02)      $     (.01)

Weighted Average Shares Outstanding    4,088,981        4,088,981

        See accompanying notes to  financial statements.

<PAGE>

                      SOURCE ENERGY CORPORATION
           Formerly known as Parker Energy Technology, Inc.
                       Statements of Cash Flows
          For the Three Months Ended March 31, 2000 and 1999
                           (Unaudited)


                                        For Three       For Three
                                        Months          Months
                                        Ended           Ended
                                        March 31,       March 31,
                                        2000            1999

Cash  Flows Provided by/(Used  for)
Operating Activities

Net loss                             $    (82,902)    $       (1,638)

Adjustments to reconcile net income
to net cash provided by
 operating activities:

    Depreciation and depletion              3,918              1,568

    (Increase)/decrease in accounts
      receivable                           (9,521)              -0-

    Increase/(decrease) in current
      liabilities                          90,039               -0-

Net Cash Used for Operating Activities      1,534                (70)

Cash  Flows Provided by/(Used  for)
Financing Activities

  Proceeds from issuance of shares           -0-                -0-

Net Cash Provided by Financing Activities    -0-                -0-

Net Increase/(Decrease) in Cash             1,534                (70)

Beginning Cash Balance                     10,713              2,190

Ending Cash Balance                   $    12,247       $      2,120



Supplemental  Disclosure  of   Cash
Flow Information:

   Cash  paid during the  year  for
    income taxes                      $      -0-        $        -0-


           See accompanying notes to  financial statements.

<PAGE>


                        SOURCE ENERGY CORPORATION
             Formerly known as Parker Energy Technology, Inc.
                      Notes to Financial Statements
                              March 31, 2000


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, 1999.


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.

          On  April  10, 2000, the Company effected a  1  for  40
          reverse split.

<PAGE>