FORM 10QSB

                     SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C. 2054

        (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
                      SECURITIES EXCHANGE ACT OF 1934
             For the quarterly period ended September 30, 1995
                                            ------------------
                                     OR

       ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
                       SECURITIES EXCHANGE AT OF 1934
          For the transition period from __________ to __________

                       Commission file number 0-11732
                                             --------
                     APPALACHIAN OIL & GAS COMPANY, INC
                    -----------------------------------
           (Exact name of registrant as specified in its charter)
          -------------------------------------------------------

      UTAH                                                  87-0382031     
     ------                                                ------------    
(State of other jurisdiction of                              (IRS Employer 
Incorporation or organization)                          identification No.)

701 Second Avenue North, Nashville, TN                          37201      
--------------------------------------                         -------     
(Address of principal executive offices)                         (Zip Code)

Registrants telephone number, including area code:         (615) 254-4789  
                                                          ---------------- 
                                                       
Former name, former address and former fiscal year, if changed since last
report.

     Indicate by check mark whether the registrant (1) has filed all
reports to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or such shorter period that the
registrant was required to file such report(s), and (2) has been subject to
such filing requirements for the past 90 days. 

Yes    X       No
     ------         ------
    The total number of shares outstanding as of September 30, 1995 were
                                                -------------------
3,135,795.
----------
<PAGE>
                       PART I - FINANCIAL INFORMATION

Item 1.   Financial Statements
          --------------------

          The Financial Statements of the Registrant required to be filed
with this 10-QSB Quarterly Report were prepared by York, Neel & Company,
LLP, Certified Public Accountants, and commence on the following page,
together with Related Notes.  In the opinion of management, the Financial
Statements fairly present the financial condition of the Registrant. 






                   -THIS SPACE INTENTIONALLY LEFT BLANK-
<PAGE>
/Letterhead/                                           Malcolm E. Neel, CPA
YORK NEEL & COMPANY, LLP                           Roderick J. Topkins, CPA
CERTIFIED PUBLIC ACCOUNTANTS                         Leonard F. Adcock, CPA
     BUSINESS CONSULTANTS                              Michael L. Toms, CPA
1113 Bethel Street                                  Jeffrey T. Ebelhar, CPA
Hopkinsville, Kentucky 42240                            Martin McElroy, CPA
(502) 886-0206                                       John M. DeAngelis, CPA
FAX (502) 886-0875                                      Doug E. Keller, CPA
                                                  J. Wesley Alford, Jr, CPA
                                                  Rebecca M. Whitehead, CPA
                                                  Bradley K. Cornelius, CPA
                                                  Malcolm E. Neel, III, CPA
                                 ------------------------------------------
                                                   C. Louis DeAngelis, CPA 

                      Independent Accountant's Report

To the Board of Directors
Appalachian Oil & Gas Company, Inc.
Nashville, Tennessee

We have reviewed the accompanying consolidated balance sheet of Appalachian
Oil & Gas Company, Inc., (a Utah Corporation) and its subsidiary as of
September 30, 1995, and the related consolidated statements of operations,
stockholders' equity and cash flows for the three month periods ended
September 30, 1995 and 1994, in accordance with Statements on Standards for
Accounting and Review Services issued by the American Institute of
Certified Public Accountants.  All information included in these financial
statements is the representation of the management of Appalachian Oil & Gas
Company, Inc. 

A review consists principally of inquiries of Company personnel and
analytical procedures applied to financial data.  It is substantially less
in scope than an audit conducted in accordance with generally accepted
auditing standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole.  Accordingly, we do
not express such an opinion. 

Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements in order for them
to be in conformity with generally accepted accounting principles. 

We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet (presented herein) of Appalachian
Oil & Gas Company Inc. as of June 30, 1995, and the related consolidated
statements of operations, stockholders' equity and cash flows (not
presented herein) and we expressed an unqualified opinion on those
statements in our report dated April 24, 1996, but we have not preformed
any auditing procedures since that date. 

/S/ York, Neel & Company, LLP
Hopkinsville, Kentucky
December 6, 1996

          _______________________________________________________
     Hopkinsville - Madisonville - Morganfield - Hendersen - Owensboro
<PAGE>
               APPALACHIAN OIL & GAS COMPANY, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET
                      September 30, 1995 and June 30, 1995

<TABLE>
<CAPTION>
                                        ASSETS
                                                        September 30,     June 30, 
                                                                 1995         1995 
                                                            Unaudited      Audited 
                                                          ------------ ------------
<S>                                                      <C>          <C>
Current assets:
  Cash and cash equivalents                               $     2,974  $    12,602 
  Accounts receivable - trade                                  78,378       72,648 
                                                          ------------ ------------
   Total current assets                                        81,352       85,250 
                                                          ------------ ------------
Property and equipment:
  Oil and gas properties                                      626,095      626,095 
  Other property and equipment                                750,053      747,053 
                                                          ------------ ------------
                                                            1,376,148    1,373,148 
  Less accumulated depreciation,
   depletion and amortization                                 842,226      824,865 
                                                          ------------ ------------
                                                              533,922      548,283 
                                                          ------------ ------------
                                                          $   615,274  $   633,533 
                                                          ============ ============

                         LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Current portion of long-term debt                       $    30,000  $    32,628 
  Notes payable - related parties                             128,500      138,500 
  Accounts payable:
   Trade                                                       47,679       24,674 
   Royalties                                                   31,583       44,193 
   Transported gas                                             44,423       51,418 
  Accrued expenses                                              6,235        5,352 
                                                          ------------ ------------
   Total current liabilities                                  288,420      296,765 

Long term debt, net of 
  current portion                                              91,991       96,862 
                                                          ------------ ------------
                                                              380,411      393,627 
                                                          ------------ ------------
Commitments and contingencies

Stockholders' equity:
  Common stock, par value $.01 per 
   share, 10,000,000 shares
   authorized, issued and outstanding 
   3,135,795 and 3,235,795 shares at 
   September 30, 1995 and 
   June 30, 1995, respectively                                 31,358       32,358 
  Additional paid in capital                                1,814,342    1,813,342 
  Retained deficit                                         (1,610,837)  (1,605,794)
                                                          ------------ ------------
      Total stockholders' equity                              234,863      239,906 
                                                          ------------ ------------
                                                          $   615,274  $   633,533 
                                                          ============ ============
</TABLE>       See accompanying notes and accountant's report
                                     2
<PAGE>
             APPALACHIAN OIL & GAS COMPANY, INC. AND SUBSIDIARY
                    CONSOLIDATED STATEMENT OF OPERATIONS
                                (Unaudited)
<TABLE>
<CAPTION>

                                                               Three-month period 
                                                               ended September 30, 
                                                                 1995         1994 
                                                          ------------ ------------
<S>                                                       <C>          <C>
Revenues:
  Oil and gas sales                                       $    99,678  $   139,005 
  Drilling programs                                              -           2,418 
  Other                                                         1,717        5,005 
                                                          ------------ ------------                      101,395        146,428 
Costs and expenses:
  Other operating expenses                                     37,655       52,790 
  Depreciation, depletion and 
   amortization                                                17,362       21,932 
  Interest                                                      5,484        5,667 
  General and administrative                                   45,937       70,470 
                                                          ------------ ------------
                                                              106,438      150,859 
                                                          ------------ ------------
      Net loss before minority interest                        (5,043)      (4,431)

Minority interest                                                 -            707 
                                                          ------------ ------------
      Net loss                                            $    (5,043) $    (5,138)
                                                          ============ ============
  Earnings (loss) per share                               $     (0.00) $     (0.00)
                                                          ============ ============

</TABLE>


              See accompanying notes and accountant's report.

                                     3<PAGE>
             APPALACHIAN OIL & GAS COMPANY, INC. AND SUBSIDIARY
               CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
       For the three month periods ended September 30, 1995, and 1994

<TABLE>
<CAPTION>

                                                                        Additional 
                                                 Common       Paid-In  Accumulated 
                                   Shares         Stock       Capital      Deficit 
                         ----------------------------------------------------------
<S>                           <C>            <C>         <C>         <C>
Balance, 
June 30, 1994                   3,235,795     $  32,358   $ 1,813,342  $(1,514,286)

Net loss for the 
three months ended 
September 30, 1994                  -               -           -           (5,138)
                         ----------------------------------------------------------
Balance, 
September 30, 1994              3,235,795        32,358     1,813,342   (1,519,424)

Net loss for the
nine months ended
June 30, 1995                       -               -           -          (86,370)
                         ----------------------------------------------------------
Balance, 
June 30, 1995                   3,235,795        32,358     1,813,342   (1,605,794)

Common shares 
canceled                         (100,000)       (1,000)        1,000        -     

Net loss for the 
three months ended 
September 30, 1995                  -               -            -          (5,043)
                         ----------------------------------------------------------
Balance, 
September 30, 1995              3,135,795      $ 31,358   $ 1,814,342  $(1,610,837)
                         ==========================================================

</TABLE>

              See accompanying notes and accountant's report.

                                     4<PAGE>

             APPALACHIAN OIL & GAS COMPANY, INC. AND SUBSIDIARY
                    CONSOLIDATED STATEMENT OF CASH FLOWS
                                (Unaudited)

<TABLE>
<CAPTION>

                                                              Three-month period 
                                                              ended September 30, 
                                                                 1995         1994 
                                                          ------------ ------------
<S>                                                       <C>          <C>
Cash Flows from Operating Activities:
  Net loss                                                $    (5,043) $    (5,138)
  Adjustments to reconcile net loss to 
   net cash provided by (used in)
   operating activities:
     Depreciation, depletion and amortization                  17,362       21,932 
     Undistributed income of limited partnership                  -            707 
     Changes in operating assets and liabilities:
      (Increase) decrease in:
       Accounts receivable                                     (5,730)      22,370 
      Increase (decrease) in:
       Accounts payable                                         3,400      (39,323)
       Accrued expenses                                           883       (3,864)
                                                          ------------ ------------
      Net cash provided by (used in)
           by operating activities                             10,872       (3,316)
                                                          ------------ ------------
Cash Flows from Investing Activities:
  Purchase of property and equipment                           (3,000)      (2,200)
  Purchase of oil and gas properties                              -        (11,550)
  Increase in other assets                                        -         (5,000)
                                                          ------------ ------------
      Net cash used in 
           operating activities                                (3,000)     (18,750)
                                                          ------------ ------------
Cash flows from Financing Activities:
  Principal payments on notes payment                         (10,000)      (7,500)
  Principal payments on long-term debt                         (7,500)      (6,928)
                                                          ------------ ------------
      Net cash used in 
           financing activities                               (17,500)     (14,428)
                                                          ------------ ------------
  Decrease in cash and cash equivalents                        (9,628)     (36,494)

  Cash and cash equivalents, beginning of period               12,602       66,602 
                                                          ------------ ------------
  Cash and cash equivalents, end of period                $     2,974  $    30,108 
                                                          ============ ============
</TABLE>
               See accompanying notes and accountant's report

                                     5<PAGE>
            APPALACHIAN OIL AND GAS COMPANY, INC. AND SUBSIDIARY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   Summary of Significant Accounting Policies

     Significant accounting policies of the Company are as follows:

     a.   Principles of Consolidation

          The consolidated financial statements include the accounts of
Appalachian Oil & Gas Company, Inc. (AOGI) and its subsidiary, TKGC #1
Partnership.  All significant intercompany accounts and transactions have
been eliminated in consolidation. 

     b.   Business Activity and Major Customers

          AOGI and its subsidiary operates in primarily one business
segment, which is the acquisition, exploration and development of oil and
gas properties.  The Company's oil and gas properties are located in Clay
County, Kentucky.  The majority of all gas sales are made to one customer
in south-central Kentucky.

     c.   Cash and cash equivalents

          Cash includes amounts on hand and in financial institutions. 
Cash equivalents include all highly liquid investments with an original
maturity of three months or less when purchased. 

     d.   Allowance for Losses

          AOGI uses the specific write-off method to provide for doubtful
accounts since experience and management's estimation indicates an adequate
allowance for such accounts is immaterial.

     e.   Oil and Gas Properties 

          The Company uses the successful efforts method of accounting for
oil and gas producing activities.  Costs to acquire mineral interests in
oil and gas properties, to drill and equip exploratory wells that find
proved reserves, and to drill and equip development wells are capitalized. 
Costs to drill exploratory wells that do not find proved reserves,
geological and geophysical costs, and costs of carrying and retaining
unproved properties are expensed. 

                                 Continued

                                     6<PAGE>
            APPALACHIAN OIL AND GAS COMPANY, INC. AND SUBSIDIARY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.   Summary of Significant Accounting Policies, Continued

     e.   Oil and Gas Properties, Continued

          The costs associated with dismantlement and site restoration are
considered immaterial based on past history of AOGI.

          Unproved oil an gas properties that are individually significant
are periodically assessed for impairment of value, and a loss is recognized
at the time of impairment by providing an impairment allowance.  Other
unproved properties are amortized based on the Company's experience of
successful drilling and average holding period.  Capitalized costs of
producing oil and gas properties, after considering estimated dismantlement
and abandonment costs and estimated salvage values, are depreciated and
depleted by the unit-of production method.  Support equipment and other
property and equipment are depreciated over their estimated useful lives. 

          On the sale or retirement of a complete unit of a proved
property, the cost and related accumulated depreciation, depletion, and
amortization are eliminated from the property accounts, and the resultant
gain or loss is recognized.  On the retirement or sale of a partial unit of
proved property, the cost is charged to accumulated depreciation,
depletion, and amortization with a resulting gain or loss recognized in
income.

          On the sale of an entire interest in an unproved property for
cash or cash equivalent, gain or loss on the sale is recognized, taking
into consideration the amount of any recorded impairment if the property
had been assessed individually.  If a partial interest in an unproved
property is sold, the amount received is treated as a reduction of the cost
of the interest retained. 

     f.   Income Taxes

          Deferred income taxes are provided for significant temporary
differences in recognition of revenues and expenses for financial reporting
and income tax reporting purposes. 

                                 Continued

                                     7<PAGE>
            APPALACHIAN OIL AND GAS COMPANY, INC. AND SUBSIDIARY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1.   Summary of Significant Accounting Policies, Continued,

     f.   Income Taxes, Continued

          For Federal income tax purposes, the Company deducts certain
exploration and development costs, which are capitalized and amortized for
financial reporting purposes.  The Company uses statutory depletion for
income tax reporting. 

          Investment tax credits are accounted for as a reduction of income
tax expense in the year taxes payable are reduced. 

     g.   Minority Interest 

          Effective April 15, 1994, AOGI acquired 53.35 percentage interest
in the TKGC #1 Partnership for $28,000 in cash and a partial assignment of
an oil and gas farm out agreement.  The acquisition was accounted for as a
purchase. 

          AOGI's 53.35 percentage interest requires that TKGC #1's
operations be included in the consolidated financial statements.  The
remaining interest (46.65%) is shown as "minority interest".  TKGC #1 did
not have any operations as of June 30, 1994.  April 1, 1995, the TKGC #1
Partnership was dissolved with each partner receiving their percentage
ownership in two oil and gas wells. 

     h.   Estimates

          The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and 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. 

     I.   Environmental Costs

          Environmental expenditures that relate to current operations are
expensed or capitalized as appropriate.   Liabilities are recorded when
environmental assessments are probable and the amounts can be reasonably
estimated.

                                 Continued

                                     8<PAGE>
            APPALACHIAN OIL AND GAS COMPANY, INC. AND SUBSIDIARY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


2.   Property and Equipment

     A summary of property and equipment is as follows:

<TABLE>
                                                        Sept. 30,  June 30, 
                                                            1995      1995 
                                                        --------  --------
                    <S>                                 <C>       <C>
                    Proved oil and gas properties       $626,095  $626,095 
                    Less accumulated depreciation,
                      depletion and amortization         422,971   419,503 
                                                         203,124   206,592 
                    Land                                  14,810    14,810 
                    Gas gathering system                 490,834   490,834 
                    Machinery and equipment              209,536   206,536 
                    Office furniture and equipment        34,873    34,873 

                    Other property and equipment         750,053   747,053 

                    Less accumulated depreciation        419,255   405,362 
                                                         330,798   341,691 
                                                       --------- ---------
                    Net property and equipment          $533,922  $548,283 
</TABLE>

     AOGI incurred depreciation expense of $13,893 and $17,216 for the
three month periods ended September 30, 1995 and 1994, respectively. 

3.   Notes Payable - Related Parties

     At September 30, 1995, and June 30, 1995, the Company had notes
payable to several Company stockholders for $128,500 and $138,500,
respectively.  These notes are unsecured and payable on demand with
interest due monthly at a rate of 9.0%. 

4.   Long-Term Debt

     At September 30, 1995 and June 30, 1995, long-term debt consisted of
the following items:
<TABLE>
<CAPTION>
                                                        Sept. 30,  June 30, 
                                                       ---------- ---------
                                                            1995      1995 
               <S>                                     <C>        <C>
               Note payable to an individual;
               monthly principal payments of $2,500
               plus interest; interest rate of 10.0%;
               due March 1999; collateral - all 
               assets of the Company                    $121,991  $129,490 

               Less current portion of long-term debt     30,000    32,628 
                                                        $ 91,991  $ 96,862 
</TABLE>

                                 Continued
                                     9<PAGE>
            APPALACHIAN OIL AND GAS COMPANY, INC. AND SUBSIDIARY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 Continued

4.   Long-Term Debt, Continued

     The Company's long-term debt payments are estimated to be repayable
annually as set forth in the following schedule:

<TABLE>
<CAPTION>

                           Years Ending 
                          September 30,             Amount  
                          -------------            --------
                          <C>                      <C>
                                   1996            $ 30,000 
                                   1997              30,000 
                                   1998              30,000 
                                   1999              31,991 
                                                   ---------
                                                   $121,991 
</TABLE>

5.   Common Stock

     Effective July 1, 1995, the Company canceled 100,000 shares of common
stock that had been outstanding.  The shares were voluntarily returned to
the Company with no cost to the Company.

6.   Income Taxes 

     The Company has unused net operating losses of $1,399,000 and unused
investment tax credits of approximately $30,000 as of September 30, 1995. 
All carryforward amounts expire on or before June 30, 2007.  For financial
reporting purposes, a valuation allowance of $485,860, has been recognized
to offset the deferred tax assets related to these items. 

     The net tax effects of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the
amounts used for income tax purposes are reflected in deferred income
taxes.  Significant components of the Company's deferred tax assets and
liabilities as of September 30, 1995 and June 30, 1995 are as follows:
<TABLE>
<CAPTION>

                                                        Sept. 30   June 30 
                                                            1995      1995 
                                                        --------- ---------
                    <S>                                 <C>       <C>
                    Deferred tax assets:
                      Net operating loss                $475,660  $473,960 
                      Investment tax credit               10,200    10,200 
                    Total deferred tax assets            485,860   484,160 
                    Valuation allowance for
                       deferred tax assets              (485,860) (484,160)
                    
                    Deferred tax liabilities                -         -        

                    Net deferred tax asset              $   -     $   -        
</TABLE>
                                 Continued

                                     10
<PAGE>
            APPALACHIAN OIL AND GAS COMPANY, INC. AND SUBSIDIARY
                 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

7.   Commitments and Contingencies

     During the year ended June 30, 1993, AOGI sold its rights to the
leases associated with the Hamlin project located in Nevada.  If the
current owner of those leases fails to complete the drilling of a well on
that property, the leases revert back to AOGI.  There is potential for
liability if the leases revert back to AOGI.  However, such liability
cannot be estimated.  Management believes it is unlikely for the leases to
revert back to AOGI.  No liability has been recorded for this contingency. 

     AOGI is exposed to risks of future material loss related to torts;
theft of, damage to, expropriation of, or destruction of assets; business
interruption, errors or omission; or acts of God and those risks have not
been transferred to unrelated third parties through insurance. 

8.   Statement of Cash Flows Disclosure

     AOGI paid $5,484 and $5,667 in interest during the three months ended
September 30, 1995 and 1994 respectively. 

     As shown in footnote 5, AOGI canceled 100,000 shares of common stock. 
This was a non-cash transaction that decreased common stock by $1,000 and
increased additional paid in capital by the same amount. 

9.   Earnings (Loss) Per Share

     Earnings (loss) per share are based on the weighted average number of
shares outstanding of 3,135,795 and 3,235,795 for the three month periods
ended September 30, 1995, and 1994, respectively. 

10.  Subsequent Events

     Effective March 27, 1996, AOGI sold 60% of their operating assets and
60% of their well interests for $427,550.  The company that purchased the
assets began operating and managing the majority of AOGI's wells as of
February 1, 1996.  AOGI incurred a capital gain from the sale of
approximately $197,000.

                                     11
<PAGE>
Item 2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations

     An analysis of the revenues for the current quarter as compared to the
same reporting  period in 1994 showed a $40,000 decrease to the company. 
Revenues showed a decrease in that the oil and gas revenues dropped
considerably during the month of August as there was no contract in
existence and the Company had to go to the Spot Market for its sales.  The
price on the Spot Market was much less than before under our previous
contract.  In September, 1995, the company obtained a short-term contract. 
This contract provided a higher price than the open Spot Market, but still
was not at the level of our previous contract. 

     Another factor in the decrease in revenues was due to the fact the
Company had no drilling program in place during the current quarter. 

     Due to the fact that the Company knew revenues would be lower for this
quarter, the Company made every effort to keep expenses down. 

     Operating expenses decreased approximately $15,000.00.  Repairs and
maintenance costs decreased over $25,000 as compared to the prior year
quarter due to the fact the Company stopped using its old compressor and
leased a new compressor.  Lease expense increased approximately $16,000 due
to the leasing of the new compressor.  Contract services also decreased
over $10,000 due to the release of some contract field personnel. 

     General and Administrative expenses were down approximately $25,000
because of a decrease in administrative salaries and no Director's fees
were paid for this quarter.  Administrative salaries were down due to the
resignation of a key management person. 

     The Company continues to be satisfied with the reduction of long-term
debt as the company continues to make timely monthly payments on the long-term 
debt of the Company and the Board of Directors has voiced its desire
to make additional principal payments on the long-term debts as funds
become available.



                         PART II. OTHER INFORMATION

Item 1.  Legal Processing

     State of Tennessee On the Relation of James E. Ables, et. al. Vs.
Appalachian Oil & Gas

     On March 11, 994, Clyde M. Fuller renewed his petition for release of
his personal bond of $10,000.00.  Plaintiffs (then 13-D Group, now present
Company Management) has simultaneously moved the Court to fix damages
caused by defendant in attempting to reverse Order of the Court for the sum
of $24,276.47, or alternatively to the extent of Mr. Fuller's bond. 

     This case is still pending in Chancery Court, Hamilton County,
Tennessee.
<PAGE>
Item 2.  Changes in Securities.

     Effective July 1, 1995, the Company canceled 100,000 shares of common
stock that had been outstanding.  The shares were voluntarily returned to
the Company with no cost to the Company.

Item 3.  Defaults Upon Senior Securities.

     None; not applicable

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

     There were no submission of matters to a vote of Security Holders as
of the period ending September 30, 1995. 

Item 5.  Other Information

     None; not applicable

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

     (a)  Exhibits.

          None.

     (b)  Reports on Form 8-K.

          None.

<PAGE>
                                 SIGNATURES

     Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized. 

Date: December 30, 1996           Appalachian Oil & Gas Company, Inc. 


                                   /S/ Raymond A. Connelly
                                   Raymond A. Connelly, President/CEO


                                   /S/ Bill Jones
                                   Bill Jones, Secretary/Treasurer