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 September 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>




                                     PART I


ITEM  1


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

     Statement of Operations For the Three and Nine Month Periods Ended
     September 30, 2000 and 1999                                              4

     Statement  of  Cash  Flows  For  the  Nine  Month  Periods
     Ended September 30, 2000 and 1999                                        5

     Notes  to  Financial  Statements                                         6










































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


<TABLE>

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

CURRENT ASSETS - Cash                       $        2,935     $          897
                                            ---------------    ---------------

TOTAL ASSETS                                $        2,935     $          897
                                            ===============    ===============

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT  LIABILITIES
  Related Party payable                     $      179,587     $      177,355
  Accrued interest payable related party           264,576            249,407
                                            ---------------    ---------------
      Total current liabilities                    444,163            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                             (529,728)          (514,365)
                                            ---------------    ---------------
      Total stockholders' equity                  (441,228)          (425,865)
                                            ---------------    ---------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $        2,935                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  Nine
(UNAUDITED)                    Month Periods Ended September 30, 2000  and  1999
-----------                    -------------------------------------------------


<TABLE>
                             September 30, 2000          September 30, 1999
                         --------------------------  --------------------------
                            Three          Nine         Three          Nine
                            Months        Months        Months        Months
                         ------------  ------------  ------------  ------------
<S>                      <C>           <C>           <C>           <C>
REVENUES                 $     6,501   $    17,143   $     4,703   $     4,703
                         ------------  ------------  ------------  ------------

OPERATING  EXPENSES
  Legal and Accounting         2,500         7,500           -             -
  Bank Charges                    50           110            30            90
  Office Expense                  20            94           -             -
  Fees                           -           1,544           -             -
  Telephone                    1,227         4,107           153           153
  Miscellaneous Expense          -             150           -             -
  Travel                         -             500           -             -
  Tax & Licenses                 -           3,330           -             -
                         ------------  ------------  ------------  ------------
Total Operating Expenses       3,797        17,335           183           243
                         ------------  ------------  ------------  ------------
GAIN (LOSS) FROM
 OPERATIONS                    2,704          (192)        4,520         4,460
                         ------------  ------------  ------------  ------------

OTHER  EXPENSE
      Interest                 5,068         5,068         4,999        14,999
                         ------------  ------------  ------------  ------------

LOSS BEFORE INCOME TAXES      (2,364)       (5,260)         (479)       (10,539)

INCOME TAXES                      -0-           -0-           -0-            -0-
                         ------------  ------------  ------------  ------------

NET LOSS                 $    (2,364)  $    (5,260)  $      (479)  $   (10,539)
                         ============  ============  ============  =============

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

WEIGHTED AVERAGE NUMBER
  OF COMMON SHARES
  OUTSTANDING              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  Cash  Flows  for  the  Nine Month
(UNAUDITED)                   Periods Ended September 30, 2000 and 1999
---------------------         ------------------------------------------------



<TABLE>

                                             September 30,       December 31,
                                                  2000              1999
                                            ---------------    ---------------
<S>                                         <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net Loss                                  $      (15,361)    $      (10,539)
  Add item not requiring the use of cash:
    Increase in accrued interest                    15,168             14,999
                                            ---------------    ---------------
Net cash flows provided (used) by
   operating activities                               (193)             4,460
                                            ---------------    ---------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Increase (decrease) in related
    party payable                                    2,231             (4,430)
                                            ---------------    ---------------
Net cash flows provided (used)
  from financing activities                          2,231             (4,430)

NET INCREASE IN CASH                                 2,038                 30
                                            ---------------    ---------------

CASH AT BEGINNING OF PERIOD                            897                 10
                                            ---------------    ---------------

CASH AT END OF PERIOD                       $        2,935     $           40
                                            ===============    ===============

</TABLE>






















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

<PAGE> 5

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>  6


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


The Company's current liabilities increased from $438,863 to $444,163 during the
quarter  ended  September  30,  2000.  The Company's only asset, cash, increased
from  $1  on  June  30,  2000  to  $2,935  as  of  September  30,  2000.

The  Company incurred a loss of $2,364 for the quarter ended September 30, 2000.
Revenues  of  $6,501  for  the  quarter  were  derived  from  royalties  on  oil
production.  The  primary  expense  for  the  quarter  consisted  of  $2,500 for
accounting  and  $5,068  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>  7



                                   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: November 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: November 15, 2000
--------------------------------------                  -----------------------
Andrew V. Ippolito
President  and  Director