FORM 10-QSB

                     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 December 31, 1998
                                             ------------------

                                     OR

      (   ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                      SECURITIES EXCHANGE ACT 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 or other jurisdiction of                               (IRS Employer
Incorporation or organization)                          identification No.)

6975 South Union Park Center, Suite #600, Midvale, Utah              84047
-------------------------------------------------------             ------
(Address of principal executive offices)                         (Zip Code)

Registrants telephone number, including area code           (801) 949-7759
                                                            ---------------

-------------------------------------------------------------------------
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
required 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  December 31, 1998 was
8,135,795.                                           ------------------
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                    APPALACHIAN OIL & GAS COMPANY, INC.
                                 Form 10-Q
                     Six Months Ended December 31, 1998
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                                   INDEX

                                    Page
                                   -----
<S>  <C>                                                                <C>
PART I      Financial Information

     ITEM 1 Financial Statements

        Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . 3

        Statements of Operations . . . . . . . . . . . . . . . . . . . . 5

        Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . 6

        Note to Financial Statements . . . . . . . . . . . . . . . . . . 7

        Management's Discussion and Analysis of
        the Statement of Income. . . . . . . . . . . . . . . . . . . . . 8

PART II Other Information

     ITEM 1 Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . 9

     ITEM 2 Changes in Securities. . . . . . . . . . . . . . . . . . . . 9

     ITEM 3 Defaults upon Senior Securities. . . . . . . . . . . . . . . 9

     ITEM 4 Submission of Matters to a Vote of Security Holders. . . . . 9

     ITEM 5  Other Information . . . . . . . . . . . . . . . . . . . . . 9

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


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

                    Appalachian Oil & Gas Company, Inc.
                               Balance Sheets
               December 31, 1998 (Unaudited) & June 30, 1998


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                                                     December         June
                                                     31, 1998     30, 1998
                                                   -----------  -----------
<S>                                                <C>         <C>
Current Assets
--------------
   Cash & Cash Equivalents                          $      138  $        75
   Accounts Receivable - Trade                           1,077        3,225
                                                    -----------  -----------
       Total Current Assets                              1,215        3,300

Property & Equipment
--------------------
   Oil & Gas Properties                                140,184      140,184
   Other Property & Equipment                          326,574      326,574
                                                    -----------  -----------
       Total Property & Equipment                      466,758      466,758

  Less Accumulated Depreciation, Depletion
    & Amortization                                     407,208      347,658
                                                    -----------  -----------
       Total                                            59,550      119,100
                                                    -----------  -----------
       Total Assets                                 $   60,765  $   122,400
                                                    ===========  ===========

</TABLE>

                           See Accompanying Notes
                                   Page 3
                    Appalachian Oil & Gas Company, Inc.
                         Balance Sheets -Continued-
               December 31, 1998 (Unaudited) & June 30, 1998

<TABLE>
<CAPTION>
                                                     December         June
                                                     31, 1998     30, 1998
                                                   -----------  -----------
<S>                                                <C>         <C>
Current Liabilities
-------------------
   Accounts Payable - Trade                         $    2,586  $    12,468
   Due to Officers                                      14,000          -0-
                                                    -----------  -----------
       Total Current Liabilities                        16,586       12,468

Commitments & Contingencies
---------------------------
  Stockholders' Equity
  Common Stock, Par Value $0.01 Per Share,
   100,000,000 Shares Authorized, 8,135,795
    Shares Issued & Outstanding                         81,358       81,358
   Additional Paid In Capital                        1,814,342    1,814,342
   Retained Deficit                                 (1,851,521) ( 1,785,768)
                                                    -----------  -----------
       Total Stockholders' Equity                       44,179      109,932
                                                    -----------  -----------
       Total Liabilities & Stockholders' Equity     $   60,765  $   122,400
                                                    ===========  ===========

</TABLE>
                           See Accompanying Notes
                                   Page 4

                    Appalachian Oil & Gas Company, Inc.,
              Consolidated Statement of Operations (Unaudited)
          For the Six Month Periods Ended December 31, 1998 & 1997
         and the Three Month Periods Ended December 31, 1998 & 1997

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                                             Six Months             Three Months
                                          Periods Ended            Periods Ended
                                  December     December    December     December
                                  31, 1998     31, 1997    31, 1998     31, 1997
                                -----------  ----------- -----------  -----------
<S>                             <C>          <C>         <C>          <C>

Revenues
--------
   Oil & Gas Sales               $      -0-   $   16,930  $      -0-   $    3,305
   Other                                -0-          514         -0-          192
                                 -----------  ----------- -----------  -----------
      Total Revenues                    -0-       17,444         -0-        3,497

Costs & Expenses
----------------
   Other Operating Expenses             -0-       18,321         -0-       10,876
   Depreciation, Depletion
    & Amortization                   59,550        8,483      29,775        4,241
   General & Administrative           6,203       29,832       3,638       15,799
                                 -----------  ----------- -----------  -----------
      Total Costs & Expenses         65,753       56,636      33,413       30,916
                                 -----------  ----------- -----------  -----------
      Net Income (Loss)          ($  65,753)  ($  39,192) ($  33,413)  ($  27,419)
                                 ===========  =========== ===========  ===========

      Earnings (Loss) Per Share  ($     .01)  $      .00  $      .00   $      .00


</TABLE>
                           See Accompanying Notes
                                   Page 5

            Appalachian Oil & Gas Company, Inc., and Subsidiary
              Consolidated Statement of Cash Flows (Unaudited)
          For the Six Month Periods Ended December 31, 1998 & 1997

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<CAPTION>

                                                         Six-Month Periods
                                                        Ended December 31,
                                                         1998         1997
                                                   -----------  -----------
<S>                                                <C>         <C>
Cash Flows from Operating Activities
------------------------------------
  Net Income (Loss)                                ($  65,753) ($   39,192)
  Adjustments to Reconcile Net Income (Loss) to
     Net Cash Provided by Operating Activities:
       Depreciation, Depletion & Amortization          59,550        8,483
        Rounding                                          -0-  (         1)
  Changes in Operating Assets & Liabilities:
     (Increase) Decrease in Accounts Receivable         2,148        8,710
     Increase (Decrease) in Accounts Payable       (    9,882) (       338)
     Increase (Decrease) Due to Officers               14,000          -0-
                                                   -----------  -----------

       Net Cash Provided by Operating Activities           63  (    22,338)

Cash Flows from Investing Activities                      -0-          -0-
------------------------------------               -----------  -----------

       Net Cash Used in Operating Activities              -0-          -0-

Cash Flows from Financing Activities                      -0-          -0-
------------------------------------               -----------  -----------
       Net Cash Used in Financing Activities              -0-          -0-

       Increase (Decrease) in Cash &
       Cash Equivalents                                    63  (    22,338)

       Cash & Cash Equivalents,
       Beginning of Period                                 75       36,954
                                                   -----------  -----------
       Cash & Cash Equivalents,
       End of Period                               $      138  $    14,616
                                                   ===========  ===========

</TABLE>
                           See Accompanying Notes
                                   Page 6


                    Appalachian Oil & Gas Company, Inc.
                        Note to Financial Statements


NOTE #1 - Statement Preparation
-------------------------------

The Company has prepared the accompanying financial statements with interim
financial reporting requirements promulgated by the Securities & Exchange
Commission.  The information furnished reflects all adjustments which are,
in the opinion of management, necessary for a fair presentation of
financial position and results of operations.

The financial statements should be read in conjunction with the
consolidated financial statements and notes thereto included in the
Company's June 30, 1998 10-K report.



                                   Page 7


                    MANAGEMENT'S DISCUSSION AND ANALYSIS


Liquidity and Capital Resources
-------------------------------

On February 1, 1996, the Company sold 60.00% of all its rights, title and
interest to its oil leases and related equipment to K. Petroleum, Inc., an
Ohio Corporation.  It is the Company's intention to sell the remaining
40.00% of these assets as well.

The Company no longer operates or directs the operations of the oil and gas
wells and is dependent upon K-Petroleum, Inc., for its 40% of revenues
(royalties) from the well production.

The Company hopes to sell the remaining 40% and seeks to find a new
business activity.  The Company does not have sufficient cash for the next
years operations.

Results of Operations
---------------------

The Company now has limited cash flows from its 40% interest in the oil and
gas wells.  It seeks to obtain from K-Petroleum, Inc., production report to
explain the dramatic decrease in gross revenues.  To date K-Petroleum,
Inc., has resisted releasing these reports.


                                   Page 8





                        PART II - OTHER INFORMATION
                        ----------------------------

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<S>       <C>                                                       <C>

Item 1    Legal Proceedings

          In June of 1999, the Company commenced a lawsuit in Franklin
          County, Ohio (Case Number 99-CVH06-4459), against K
          Petroleum, Inc., and Jam Khorrami.  The suit alleges, among
          other things, that the Defendants breached to the operating
          agreement, wrongfully withheld accounting, converted
          payments owed to the Company, breached fiduciary duties, and
          tortuously interfered with contractual relations and
          business opportunities.  The litigation is currently in the
          discovery stage.

Item 2    Changes in the Rights of the Company's Security Holders. . .None

Item 3    Defaults by the Company on its Senior Securities . . . . . .None

Item 4    Results of Votes of Security Holders . . . . . . . . . . . .None

Item 5    Other Information

          In April 1999, Robert Kroph, was appointed to the Board and
          appointed President of the Company.

Item 6    Exhibits and Reports on Form 8-K . . . . . . . . . . . . . .None

                                   Page 9

                                 SIGNATURES




Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.


      /S/ July 26, 1999                     /S/ Robert Kroph
Date: -----------------------                By: ---------------------------
          July 26, 1999                     Robert Kroph, President & Director



                                  Page 10


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