<PAGE>
                                    UNITED STATES
                         SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C. 20549

                                     FORM 10-Q
(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

     For the quarterly period ended March 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: 0-21130


                           ENERGY BIOSYSTEMS CORPORATION
               (Exact name of registrant as specified in its charter)

          Delaware                                        04-3078857
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                         Identification No.)

4200 Research Forest Drive
The Woodlands, Texas                                         77381
(address of principal executive offices)                   (zip code)

                                    281-364-6100
                (Registrant's telephone number, including area code)

     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 for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes   X   No 
                                               ---     ---

     As of May 8, 1998, there were outstanding 12,970,112 shares of Common
Stock, par value $.01 per share, of the registrant.

<PAGE>

                            ENERGY BIOSYSTEMS CORPORATION

                   FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1998

<TABLE>
                                       INDEX

                                                                          Page
                                                                          ----
<S>                                                                       <C>
Statement Regarding Forward-Looking Statements                              3

PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements                                              4

          Balance Sheets as of March 31, 1998 (unaudited)
          and December 31, 1997                                             5

          Statements of Operations for the Three Months
          Ended March 31, 1998 and 1997 (Unaudited)                         6

          Statements of Cash Flows for the Three Months Ended
          March 31, 1998 and 1997 (Unaudited)                               7

          Notes to Financial Statements                                     8

Item 2.   Management's Discussion and Analysis of Financial                10
            Condition and Results of Operations

PART II.  OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K                                 13

SIGNATURES                                                                 14
</TABLE>


                                       2

<PAGE>

STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

     This Quarterly Report on Form 10-Q includes "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.  The words
"anticipate", "believe", "expect", "estimate", "project" and similar expressions
are intended to identify forward-looking statements.  Such statements are
subject to certain risks, uncertainties and assumptions.  Should one or more of
these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those anticipated, believed,
expected, estimated or projected.  These risks and uncertainties include
technological uncertainty and risks associated with the commercialization of the
Company's technology, the Company's history of operating losses and uncertainty
of future profitability, manufacturing risks and uncertainties, uncertainty of
market acceptance of the Company's technology, the Company's reliance on
environmental regulation, uncertainties as to the protection offered by the
Company's patents and proprietary technology, the Company's dependence on
collaborations, the Company's need for additional funds, limited marketing
experience and dependence on key personnel, government regulation, competition
and other risks and uncertainties described in the Company's filings with the
Securities and Exchange Commission.  For additional discussion of such risks,
uncertainties and assumptions ("Cautionary Statements"), see "Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations -  Liquidity and Capital Resources" included elsewhere in this report
and "Item 1.  Business - Risk Factors" in the Company's Annual Report on Form
10-K for the year ended December 31, 1997.  All subsequent written and oral
forward-looking statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by the Cautionary Statements.


                                       3

<PAGE>

                            PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

     The following unaudited financial statements have been prepared pursuant to
the rules and regulations of the Securities and Exchange Commission.  Certain
information and note disclosures normally included in annual financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to those rules and regulations, although
the Company believes that the disclosures made herein are adequate to make the
information presented not misleading.  These financial statements should be read
in conjunction with the Company's Annual Report on Form 10-K for the year ended
December 31, 1997.

     The information presented in the accompanying financial statements is
unaudited, but in the opinion of management, reflects all adjustments (which
include only normal recurring adjustments) necessary to present fairly such
information.




















                                       4
<PAGE>

                         ENERGY BIOSYSTEMS CORPORATION

                                BALANCE SHEETS

<TABLE>
                                                             March 31,      December 31,
                                                               1998             1997
                                                           -------------    -------------
                                                            (Unaudited)
<S>                                                        <C>              <C>
  ASSETS

Current Assets:
  Cash and cash equivalents                                $  8,493,672     $  9,661,310
  Short term investments                                             --          693,279
  Prepaid expenses and other current assets                     521,812        1,013,872
                                                           ------------     ------------
      Total current assets                                    9,015,484       11,368,461

Furniture, equipment and leasehold improvements, net          2,363,539        2,624,332
Intangible and other assets, net                                988,193          972,266
                                                           ------------     ------------
      Total assets                                         $ 12,367,216     $ 14,965,059
                                                           ------------     ------------
                                                           ------------     ------------
  LIABILITIES & STOCKHOLDERS' EQUITY

Current liabilities:

  Accounts payable and accrued liabilities                 $    554,719     $    864,674
  Deferred revenue                                              380,000          180,000
  Obligations under capital lease                                 1,397            3,556
  Note payable                                                  137,010          218,606
                                                           ------------     ------------
      Total current liabilities                               1,073,126        1,266,836

Stockholders' equity:
  Series B Convertible Preferred Stock, $0.01 par value
    (liquidation value $35,105,000; 760,000 and 760,000 
    shared authorized, 702,100 and 702,100
    issued and outstanding, respectively)                    34,738,310       33,853,380

  Common Stock, $0.01 par value (30,000,000 shares
    authorized, 12,251,434 and 12,251,434 shares issued
    and outstanding, respectively)                              122,514          122,514
  Additional paid-in capital                                 35,236,026       34,926,594
  Accumulated deficit                                       (58,802,760)     (55,204,265)
                                                           ------------     ------------
      Total stockholders' equity                             11,294,090       13,698,223
                                                           ------------     ------------
      Total liabilities and stockholders' equity           $ 12,367,216     $ 14,965,059
                                                           ------------     ------------
                                                           ------------     ------------
</TABLE>

     The accompanying notes are an integral part of these financial statements.

                                       5

<PAGE>

                         ENERGY BIOSYSTEMS CORPORATION

                           STATEMENTS OF OPERATIONS
                                 (UNAUDITED)

<TABLE>
                                                     Three Months Ended
                                                           March 31,
                                                 ----------------------------
                                                      1998          1997
                                                 ------------    ------------ 
<S>                                              <C>             <C>
REVENUES:

  Sponsored research revenues                    $   168,593     $   451,452
  Interest and investment income                      93,713         128,914
                                                 -----------     ----------- 
      Total revenues                                 262,306         580,366
                                                 -----------     ----------- 
COSTS AND EXPENSES:
  Research and development                         2,524,194       2,174,714
  General and administrative                         546,744         602,464
                                                 -----------     ----------- 
      Total costs and expenses                     3,070,938       2,777,178
                                                 -----------     ----------- 
NET LOSS                                         $(2,808,632)    $(2,196,812)
                                                 -----------     ----------- 
                                                 -----------     ----------- 
NET LOSS PER COMMON SHARE -
  BASIC AND DILUTED                              $     (0.29)    $     (0.25)
                                                 -----------     ----------- 
                                                 -----------     ----------- 
SHARES USED IN COMPUTING
  NET LOSS PER COMMON SHARE                       12,251,434      11,527,789
                                                 -----------     ----------- 
                                                 -----------     ----------- 
</TABLE>


    The accompanying notes are an integral part of these financial statements.

                                       6

<PAGE>

                          ENERGY BIOSYSTEMS CORPORATION

                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
                                                                   Three Months Ended
                                                                         March 31,
                                                                -----------------------------
                                                                    1998            1997
                                                                ------------     ------------ 
<S>                                                             <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                      $(2,808,632)     $(2,196,182)
  Adjustments to reconcile net loss to net cash provided by
    (used in) operating activities:
      Depreciation and amortization                                 352,514          333,047
  Changes in assets and liabilities:
      Decrease (increase) in prepaid expenses and other
        current assets                                              492,060          (32,625)
      Increase in intangible and other assets and notes
        receivable                                                  (32,658)         (42,563)
      Decrease in accounts payable and accrued
        liabilities                                                (309,955)        (147,718)
      Increase (decrease) in deferred revenues                      200,000          (13,500)
                                                                -----------      -----------
  Net cash used in operating activities                          (2,106,671)      (2,100,171)
                                                                -----------      -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                                              (74,990)        (126,170)
  Net sale of investments                                           693,279          518,644
                                                                -----------      -----------
    Net cash provided by investing activities                       618,289          392,474
                                                                -----------      -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Payment on capital lease obligations                              ( 2,159)          (1,935)
  Payments on notes payable, net                                    (81,597)         (92,614)
  Issuance of stock, net                                                ---       10,202,115
  Issuance of warrants                                              404,500              ---
                                                                -----------      -----------
    Net cash provided by (used in) financing activities             320,744      10,107,566
                                                                -----------      -----------
NET INCREASE (DECREASE) IN CASH AND CASH
  EQUIVALENTS                                                    (1,167,638)       8,399,869
CASH AND CASH EQUIVALENTS AT BEGINNING OF
  PERIOD                                                          9,661,310        3,106,004
                                                                -----------      -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                      $ 8,493,672      $11,505,873
                                                                -----------      -----------
                                                                -----------      -----------
</TABLE>

     The accompanying notes are an integral part of these financial statements.

                                       7

<PAGE>

                           ENERGY BIOSYSTEMS CORPORATION

                           NOTES TO FINANCIAL STATEMENTS
                                   MARCH 31, 1998

NOTE 1.  BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

     Energy BioSystems Corporation (the "Company"), formerly Environmental
BioScience Corporation, was incorporated in the State of Delaware on December
20, 1989.  Since inception, the Company has devoted substantially all of its
resources to research and development.  To date, all of the Company's revenues
resulted from sponsored research payments from collaborative agreements and
interest and investment income.  The Company has incurred cumulative losses
since inception and expects to incur substantial losses for at least the next
several years, due primarily to the increase in its research and development
activities and acceleration of the development of its biocatalyst, fermentation
and bioreactor programs.  The Company expects that losses will fluctuate from
quarter to quarter and that such fluctuations may be substantial.  The
accompanying unaudited interim financial statements reflect all adjustments
which, in the opinion of management, are necessary for a fair presentation of
the results for the interim periods presented.  These financial statements
should be read in conjunction with the Company's Annual Report on Form 10-K, as
filed with the Securities and Exchange Commission, for the fiscal year ended
December 31, 1997.

Net Loss Per Common Share

     Net loss per share has been computed by dividing the net loss, which has
been increased for periodic accretion and accrued dividends on the Series A
Convertible Preferred Stock issued in October 1994 and the Series B Convertible
Preferred Stock issued in February and March 1997, by the weighted average
number of shares of common stock outstanding during the period.

     In March 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting No. 128, "Earnings Per Share."  Statement 128 simplifies
the standards for computing earnings per share previously found in APB Opinion
No. 15, EARNINGS PER SHARE, and makes them comparable to international earnings
per share standards.  The Statement also retroactively revises the presentation
of earnings per share in the financial statements.  The Company adopted this
Standard for the year ended December 31, 1997.  In all applicable years, all
common stock equivalents were antidilutive and, accordingly, were not included
in the computation.

Use of 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
disclosures 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.

NOTE 2.  SERIES B CONVERTIBLE PREFERRED STOCK

     In February and March 1997, the Company sold an aggregate of 224,100 shares
of Series B Convertible Preferred Stock ("Series B Preferred Stock") at $50.00
per share in a private placement.  The net proceeds from the offering were
approximately $10.2 million.  The


                                       8

<PAGE>

                           ENERGY BIOSYSTEMS CORPORATION

                    NOTES TO FINANCIAL STATEMENTS - (CONTINUED)

placement agent for the Series B Preferred Stock received warrants to purchase
an aggregate of 20,319 shares of Series B Preferred Stock at an exercise price
of $50.00 per share of Series B Preferred Stock, in addition to customary
commissions.  The warrants have been recorded at an estimated fair value of
$466,000, which was computed using the Black-Scholes option pricing model and
the following assumptions: risk free interest rate of 6.51 percent; expected
dividend yield of zero; expected life of three years, and an expected volatility
of 68 percent.

     Dividends on the Series B Preferred Stock are cumulative from February 27,
1997 and payable semi-annually commencing May 1, 1997, at an annual rate equal
to (i) $4.00 per share of Series B Preferred Stock to the extent the dividend is
paid in cash and (ii) $4.50 per share of Series B Preferred Stock to the extent
the dividend is paid in common stock. Dividends on shares of Series B Preferred
Stock are payable in cash or common stock of the Company, or a combination
thereof, at the Company's option.

     Shares of Series B Preferred Stock are convertible into shares of common
stock at a conversion price equal to $7.25 per share, subject to certain
adjustments.  The Series B Preferred Stock may be redeemed by the Company under
certain circumstances after February 26, 1999 and is required to be redeemed,
subject to certain limitations, on February 26, 2002 at a redemption price of
$50.00 per share, plus accrued and unpaid dividends. It is the Company's intent,
however, to redeem the Series B Preferred Stock for common stock.  Accordingly,
the Series B Preferred Stock is included in stockholders' equity.

     The carrying amount of the Series B Preferred Stock is increased for
accrued and unpaid dividends plus periodic accretion, using the effective
interest method, such that the carrying amount will equal the redemption amount
on the Series B Preferred Stock on February 26, 2002.


                                       9

<PAGE>

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

OVERVIEW

     Since its inception in December 1989, the Company has devoted substantially
all resources to its research and development.  To date, all of the Company's
revenues have resulted from interest and investment income and sponsored
research payments from collaborative agreements.  The Company has incurred
cumulative net losses since inception and expects to incur substantial losses
for at least the next several years, due primarily to the increase in its
research and development activities and acceleration of the development of its
biocatalyst, fermentation and bioreactor programs.  The Company expects that
losses will fluctuate from quarter to quarter and that such fluctuations may be
substantial.  As of March 31, 1998, the Company's accumulated deficit was
$58,802,760.

RESULTS OF OPERATIONS

     The Company had total revenues for the three months ended March 31, 1998
and 1997 of  $262,306 and $580,366, respectively.  The decrease in total
revenues was attributable to decreases in sponsored research revenues and in
interest and investment income.  The Company had sponsored research revenues of
$168,593 during the first three months of 1998 as compared to $451,452 during
the first three months of 1997.  The decrease of $282,859 in sponsored research
revenues resulted from a decrease in revenues recognized under the National
Institutes of Standards and Technology ("NIST") grant, which decrease was,
however, offset in part by sponsored research revenue received under a
Department of Energy ("DOE").

     The Company had interest and investment income of $93,713 in the first
three months of 1998 as compared to $128,914 in the first three months of 1997.
The decrease of $35,201 in interest and investment income resulted primarily
because the Company's average balances of cash, cash equivalents and short-term
investments during the first quarter of 1998 were less than those during the
corresponding period of 1997.

      The Company had research and development expenses for the three months 
ended March 31, 1998 and 1997 of $2,524,194 and $2,174,714, respectively.  
The increase in research and development expenses of $349,480 for the three 
months ended March 31, 1998 as compared to the corresponding prior year 
period resulted primarily from issuance of warrants to Petro Star. The 
Company expects its research and development expenses to decrease during the 
remainder of 1998, reflecting a reduction in the workforce at the end of the 
first quarter of 1998.  The Company's research and development expenses will 
increase substantially if the Company elects to make the $9,000,000 payment 
to exercise its option to reduce the percentage of site license fees and 
adjusted gross profit payable under its agreement with Baker Petrolite 
Corporation, a subsidiary of Baker-Hughes Corporation ("Petrolite"), because 
the entire amount of such payment would be recorded as a research and 
development expense.  The Company does not presently intend to exercise the 
Petrolite option.

     The Company had general and administrative expenses for the three months
ended March 31, 1998 and 1997 of $546,744 and $602,464, respectively. The
decrease of $55,720 for the three months ended March 31, 1998 as compared to the
first quarter of 1997 resulted from the departure of the Company's chief
executive officer in October 1997.   The Company expects 


                                      10

<PAGE>

a slight decrease in its general and administrative expenses during the 
remainder of 1998, reflecting a decrease of five administrative personnel.

LIQUIDITY AND CAPITAL RESOURCES

     In February and March 1997, the Company sold an aggregate of 224,100 shares
of Series B Preferred Stock in a private placement, resulting in net cash
proceeds of approximately $10.2 million.  Concurrently with the private
placement, the Company conducted an exchange offering and consent solicitation
pursuant to which 478,000 shares of its Series A Convertible Preferred Stock
("Series A Preferred Stock") were exchanged for the same number of shares of
Series B Preferred Stock.  Dividends on the Series B Preferred Stock are
cumulative from the date of the initial closing, February 27, 1997, and are
payable in cash or common stock of the Company, or a combination thereof, at an
annual rate equal to (i) $4.00 per share to the extent the dividend is paid in
cash and (ii) $4.50 per share to the extent the dividend is paid in common
stock.

     In October 1994, the Company sold 480,000 shares of Series A Preferred
Stock in a private placement, resulting in net cash proceeds of approximately
$22.2 million.

     For the three months ended March 31, 1998, the Company used $2,106,671 
of net cash in operating activities, incurred $74,990 in capital expenditures 
and provided $320,744 in financing activities.  At March 31, 1998, the 
Company had cash, cash equivalents and short term investments totaling 
$8,493,672 and working capital of $7,942,358.

     The Company intends to spend approximately $425,000 during the remainder of
1998 for the purchase of laboratory and analytical instrumentation.  The Company
also expects to incur substantial additional research and development expenses,
including expenses associated with biocatalyst, fermentation and bioreactor
development.  The Company has funding commitments through 1998 requiring the
Company to spend approximately $25,000 under research and development
agreements.  In addition, the Company is subject to cost sharing arrangements
under various collaboration agreements.  The Company also expects its general
and administrative expenses to decrease slightly during the remainder of 1998 as
a result of personnel layoffs at the end of the first quarter of 1998.

     To supplement its research and development budgets, the Company intends to
seek additional collaborative research and development agreements with corporate
partners. In this regard, the Company has entered into collaborative agreements
with, Petrolite, the Exploration and Production Technology Division of Texaco,
Inc., Total Raffinage Distribution S.A. ("Total"), The M. W. Kellogg Company,
Koch Refining Company and Carbide/Graphite, among others, as more fully
described in the Company's Annual Report on Form 10-K for the year ended
December 31, 1997.

     In March 1998, the Company entered into a site license agreement with Petro
Star regarding the design and installation of a biocatalytic desulfurization
("BDS") unit at Petro Star's refinery in Valdez, Alaska.  The agreement involves
several stages of work, the first of which, involving the completion of scoping
economics, is currently underway.  In addition, the agreement provides the
Company with certain rights to conduct development work and demonstrations of
its BDS technology at Petro Star's refinery.  The agreement calls for the
payment of staged site license fees and royalties to the Company, including a
$200,000 initial site license fee which was paid upon execution of the
agreement and has been recorded as 


                                      11

<PAGE>

deferred revenue.  The revenue will be recognized ratably over the completion 
of the initial phase of the agreement. As is customary in such agreements in 
the petroleum refining industry, the agreement provides certain approval and 
termination rights to Petro Star at the completion of each stage prior to 
commercialization.  In connection with the execution of the agreement, the 
Company issued a four-year warrant entitling Petro Star to purchase 200,000 
shares of its common stock at an exercise price of $3.11 per share.  The 
warrants have been recorded at an estimated fair value of $404,500, which was 
computed using the Black-Scholes option pricing model and the following 
assumptions:  risk free interest rate of 5.37 percent; expected dividend 
yield of zero; expected life of four years, and expected volatility of 75.43 
percent.

     In addition, the Company is continuing to develop its BDS technology in
collaboration with Total, and is continuing to conduct process simulations at
the Company's pilot plant using deeply desulfurized diesel fuel provided by
Total.  The Company's objective is to commence contract negotiations with Total
regarding the installation of a pilot BDS unit at Total's European Center for
Research and Technology and the concurrent installation of a commercial BDS unit
at one of Total's refineries following the achievement of results satisfactory
to Total from pilot plant process simulations.  The Company's ability to reach
agreements with Petro Star, Total or other parties with respect to commercial
applications of its BDS technology, and its ability to commercialize such
technology generally, will depend upon its ability to achieve additional
improvements in the productivity of the biocatalyst (e.g., specific activity,
production and longevity) and process engineering (e.g., bioreactor design,
separations technology and byproduct disposition), and is subject to numerous
risks and uncertainties.  Although the Company has made substantial progress to
date in improving the productivity of the biocatalyst and the process
engineering used in its pilot BDS unit, no assurance can be made that the
Company will be able to achieve the improvements necessary for its BDS
technology to become commercially viable or to reach agreements with respect to
the commercial application of its technology within the time anticipated or at
all.  See "Statement Regarding Forward-Looking Statements".

     The Company has experienced negative cash flow from operations since its
inception and has funded its activities to date primarily from equity financings
and sponsored research revenues.  The Company will continue to require
substantial funds to continue its research and development activities and to
market, sell and commercialize its technology.  The Company believes that its
available cash, investments and interest income will be adequate to fund its
operations through early 1999. The Company will need to raise substantial
additional capital to fund its operations thereafter.  The Company's capital
requirements will depend on many factors, including the problems, delays,
expenses and complications frequently encountered by companies developing and
commercializing new technologies; the progress of the Company's research and
development activities; timing of environmental regulations; the rate of
technological advances; determinations as to the commercial potential of the
Company's technology under development; the status of competitive technology;
the establishment of biocatalyst manufacturing capacity or third-party
manufacturing arrangements; the establishment of collaborative relationships;
the success of the Company's sales and marketing programs; the cost of filing,
prosecuting and defending and enforcing patents and intellectual property
rights; and other changes in economic, regulatory or competitive conditions in
the Company's planned business.  Estimates about the adequacy of funding for the
Company's activities are based upon certain assumptions, including assumptions
that the research and development programs relating to the Company's technology
can be conducted at projected costs and that progress towards the
commercialization of its technology will be timely and successful.  There can be
no assurance 


                                      12

<PAGE>

that changes in the Company's research and development plans, acquisitions or 
other events will not result in accelerated or unexpected expenditures.  To 
satisfy its capital requirements, the Company may seek additional funding 
through public or private financings, including equity financings, and 
through collaborative arrangements.  There can be no assurance that any such 
funding will be available to the Company on favorable terms or at all.  If 
adequate funds are not available when needed, the Company may be required to 
delay, scale back or eliminate some or all of its research and product 
development programs.  If the Company is successful in obtaining additional 
financing, the terms of such financing may have the effect of diluting or 
adversely affecting the holdings or the rights of the holders of the 
Company's Common Stock.

PART II.  OTHER INFORMATION

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

          a.  Exhibits

              10.1  Site License Agreement dated March 6, 1998, between the 
                    Company and Petro Star Inc.

              10.2  Common Stock Purchase Warrant dated March 6, 1998, issued 
                    to Petro Star Inc.

              10.3  Registration Rights Agreement dated March 6, 1998, between
                    the Company and Petro Star Inc.

              11.1  Statement regarding Computation of Per Share Earnings.

              27.1  Financial Data Schedule.

          b.  Reports on Form 8-K

          None.



                                      13

<PAGE>

                                SIGNATURES

     Pursuant to the requirements 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.

Energy BioSystems Corporation

By:
    -------------------------------------------------------------
    William E. Nasser
    Chairman of the Board, Chief Executive Officer and President

Date: May 14, 1998

By:
    -------------------------------------------------------------
    Paul G. Brown III
    Vice President, Finance and Administration

Date: May 14, 1998















                                      14