UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC  20549

                                    FORM 10-Q

               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2000

                             Commission file number

                               DISCOVERY OIL, LTD.
             (Exact name of registrant as specified in its charter)

     DELAWARE                                            83-0207909
(State or other jurisdiction of                    (IRS Employer
incorporation  or  organization)                   Identification  Number)

                            6127 Ramirez Canyon Road
                                   Malibu, CA
                    (Address of principal executive offices)

                                      90265
                                   (Zip Code)

                                 (310) 457-1967
              (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                                   No      X
                                                       ---

                      APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate  the  number  of  shares outstanding of each of the issuer's classes of
common  stock  as  of  June  30,  2000:

                                    9,313,352

<PAGE> 1


                                     PART I





                                                                           PAGE
                                                                           ----

ITEM  1

Statement of Financial Position as of June 30, 2000 and December 31, 1999     3

Statement of Operations For the Three and Six  Month  Periods  Ended
June  30,  2000  and 1999                                                     4

Statement of Changes in Stockholders' Equity For the Three Month Periods
Ended  June  30,  2000  and  1999                                             5

Statement of Cash Flows For the Three and Six Month Periods
Ended  June  30,  2000  and 1999 and 1999                                     6

Notes to Financial Statements                                                 7





































<PAGE> 2
                                Statement  of  Financial  Position  as  of
DISCOVERY  OIL,  LTD.           June  30,  2000  and  December  31,  1999
---------------------           -----------------------------------------------

<TABLE>

                                              (Unaudited)
                                                June  30,        December 31,
                                                  2000              1999
                                            ---------------    ---------------
<S>                                         <C>                <C>
ASSETS

  CURRENT ASSETS - Cash                     $            1     $          897
                                            ---------------    ---------------

TOTAL ASSETS                                $            1     $          897
                                            ===============    ===============

LIABILITIES AND STOCKHOLDERS' EQUITY

  CURRENT  LIABILITIES
     Related party payable                  $      179,355     $      177,355
     Interest payable to related party             259,508            249,407
                                            ---------------    ---------------
          Total current liabilities                438,863            426,762
                                            ---------------    ---------------

  STOCKHOLDERS' EQUITY
    Preferred  stock; $1.00 par value;
      5,000,000 shares authorized;
      no  shares  outstanding                          -                  -
    Common stock; $.01  par  value;
      25,000,000 shares authorized;
      9,313,352 shares issued and
      outstanding                                   93,134              93,134
    Discount on common stock                        (4,634)             (4,634)
    Accumulated deficit                           (527,362)           (514,365)
                                            ---------------    ---------------
         Total stockholders' equity               (438,862)          (425,865)
                                            ---------------    ---------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $            1     $          897
                                            ===============    ===============
</TABLE>















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

<PAGE> 3
DISCOVERY OIL, LTD.            Statement of Operations for the Three and  Six
(UNAUDITED)                    Month  Periods  Ended  June 30, 2000 and 1999
------------------             -------------------------------------------------


<TABLE>
                               June 30, 2000               June 30, 1999
                         --------------------------  --------------------------
                            Three          Six          Three          Six
                            Months        Months        Months        Months
                         ------------  ------------  ------------  ------------
<S>                      <C>           <C>           <C>           <C>
REVENUES                 $     8,136   $    10,642   $       -     $       -
                         ------------  ------------  ------------  ------------

OPERATING  EXPENSES
  Legal and accounting         2,000       5,000             -             -
  Bank charges                    30           60             30            60
  Office expense                  21           74            -             -
  Fees                         1,275        1,544            -             -
  Telephone                    1,835        2,880            -             -
  Travel                         -            500            -             -
  Miscellaneous expense          150          150            -             -
  Taxes and licenses             -          3,330            -             -
  Interest                     4,974       10,101          4,999         9,999
                         ------------  ------------  ------------  ------------
Total Operating Expenses      10,285        23,639         5,029        10,059
                         ------------  ------------  ------------  ------------

NET (LOSS)               $    (2,149)  $   (12,997)  $    (5,029)  $   (10,059)
                         ============  ============  ============  ============

NET (LOSS) PER SHARE     $     (NIL)   $     (NIL)   $     (NIL)   $     (NIL)
                         ============  ============  ============  ============

WEIGHTED AVERAGE
  NUMBER OF SHARES         9,313,352     9,313,352     9,313,352     9,313,352
                         ============  ============  ============  ============

</TABLE>




















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

<PAGE> 4
DISCOVERY  OIL,  LTD.         Statement of Changes in Stockholders' Equity for
(UNAUDITED)                   the Six Month Periods Ended June 30, 2000 and 1999
--------------------          --------------------------------------------------


<TABLE>
                      Common Stock              Discount on    Accum-
                      ------------------------    Common       ulated
                        Shares       Amount       Stock        Deficit      Total
                      -----------  -----------  -----------  -----------  -----------
<S>                   <C>          <C>          <C>          <C>          <C>

Balances as of
 December 31, 1998      9,313,352   $  93,134   $   (4,634)  $ (497,360)  $ (408,860)

Net (Loss)                                                      (10,059)     (10,059)
                      -----------  -----------  -----------  -----------  -----------

Balances as of
 June 30, 1999          9,313,352  $    93,134  $   (4,634)  $ (507,419)  $ (418,919)
                      ===========  ===========  ===========  ===========  ===========
</TABLE>

<TABLE>
                      Common Stock              Discount on    Accum-
                      ------------------------    Common       ulated
                        Shares       Amount       Stock        Deficit      Total
                      -----------  -----------  -----------  -----------  -----------
<S>                   <C>          <C>          <C>          <C>          <C>

Balances as of
 December 31, 1999      9,313,352  $    93,134  $    (4,634)  $(514,365)  $ (425,865)

Net (Loss)                                                      (12,997)     (12,997)
                      -----------  -----------  -----------  -----------  -----------

Balances as of
 June 30, 2000          9,313,352  $    93,134  $   (4,634)  $  527,362)  $ (438,862)
                      ===========  ===========  ===========  ===========  ===========
</TABLE>




















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

<PAGE> 5
DISCOVERY  OIL,  LTD.          Statement of Cash Flows for the Three and Six
(UNAUDITED)                    Month  Periods  Ended  June  30,  2000 and 1999
--------------------           ------------------------------------------------

<TABLE>
                               June 30, 2000               June 30, 1999
                         --------------------------  --------------------------
                            Three          Six          Three          Six
                            Months        Months        Months        Months
                         ------------  ------------  ------------  ------------
<S>                      <C>           <C>           <C>           <C>
CASH FLOWS FROM
  OPERATING ACTIVITIES
   Net (Loss)            $    (2,149)  $   (12,997)  $    (5,029)  $   (10,059)
   Increase in interest
     payable                   4,974        10,101         4,999         9,999
                         ------------  ------------  ------------  ------------
Net cash flows used
  from operating
  activities                   2,825        (2,896)          (30)          (60)
                         ------------  ------------  ------------  ------------

CASH FLOWS FROM
  FINANCING  ACTIVITIES
  Increase (decrease) in
    related party payable     (3,000)        2,000            20            50
                         ------------  ------------  ------------  ------------
Net cash flows used
  from financing
  activities                  (3,000)        2,000            20            50
                         ------------  ------------  ------------  ------------

NET DECREASE IN CASH            (175)         (896)          (10)          (10)

CASH AT BEGINNING
  OF PERIOD                      176           897            10            10
                         ------------  ------------  ------------  ------------
CASH AT END OF PERIOD    $         1   $         1   $       -     $       -
                         ============  ============  ============  ============
</TABLE>




















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

<PAGE> 6
DISCOVERY  OIL,  LTD.
(UNAUDITED)                                        Notes to Financial Statements
----------------------                            ------------------------------


The  financial  statements  of  Discovery  Oil,  LTD. included herein, have been
prepared  without audit, pursuant to the rules and regulations of the Securities
and  Exchange  Commission.  Although  certain  information  normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles  has been condensed or omitted, Discovery Oil, LTD. believes that the
disclosures  are  adequate  to  make  the  information presented not misleading.
These  financial  statements  should  be  read in conjunction with the financial
statements  and notes thereto included in Discovery Oil, LTD.'s annual report on
Form  10-K  for  the  fiscal  year  ended  December  31,  1999.

The  financial   statements  included   herein  reflect   all  normal  recurring
adjustments  that,  in  the  opinion  of  management,  are  necessary for a fair
presentation.  The results for interim periods are not necessarily indicative of
trends  or  of  results  to  be  expected  for  a  full  year.











































<PAGE> 7


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


The Company's current liabilities increased from $436,889 to $438,863 during the
quarter  ended  June  30,  2000.  The Company's only asset, cash, decreased from
$176  on  March  31,  2000  to  $1  as  of  June  30,  2000.

The  Company  incurred  a  loss  of  $2,149 for the quarter ended June 30, 2000.
Revenues  of  $8,136  for  the  quarter  were  derived  from  royalties  on  oil
production.  The  primary  expense  for  the  quarter  consisted  of  $2,000 for
accounting  and  $4,947  for  accrued  interest.


                                     PART II


ITEM  1     LEGAL  PROCEEDINGS

NONE

ITEM  2     CHANGES  IN  SECURITIES

NONE

ITEM  3     DEFAULTS  UPON  SENIOR  SECURITIES

NONE

ITEM  4     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

NONE

ITEM  5     OTHER  INFORMATION

NONE

ITEM  6     EXHIBITS  AND  REPORTS  ON  FORM  8-K

NONE




















<PAGE> 8



                                   SIGNATURES




Pursuant to the requirements of Section 13 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.



                               Discovery Oil, LTD.
                               -------------------
                                  (Registrant)




/s/Andrew  V.  Ippolito                                 Date:  October 15, 2000
--------------------------------------                  -----------------------
Andrew V. Ippolito
President  and  Director



Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following person on behalf of the registrant and in
the  capacities  and  as  of  the  date  indicated.


/s/Andrew  V.  Ippolito                                 Date:  October 15, 2000
--------------------------------------                  -----------------------
Andrew V. Ippolito
President  and  Director