UNITED STATES OF AMERICA
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q


[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2005.

                                       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: 333-29001-01



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



                            WEST VIRGINIA  84-1235822
         (State or other jurisdiction of incorporation or organization)
                        (IRS Employer Identification No.)

                      4643 SOUTH ULSTER STREET, SUITE 1100
                             DENVER, COLORADO 80237
              (Address of principal executive offices and zip code)

                                 (303) 694-2667
              (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 [_]

     Indicate by check mark whether the registrant is an accelerated filer (as
                       defined in Rule 12b-2 of the Act).
                                 Yes [_]   No [X]

   The number of shares of the Registrant's common stock, par value $1.00 per
             share, outstanding at May 10, 2005 was 598,777 shares.


<PAGE>
                          ENERGY CORPORATION OF AMERICA

                                TABLE OF CONTENTS


                                                                           PAGES
PART I  FINANCIAL INFORMATION

        Item 1. Financial Statements

        Unaudited Condensed Consolidated Balance Sheets as of
          March 31, 2005 and June 30, 2004. . . . . . . . . . . . . . . . . . .3

        Unaudited Condensed Consolidated Statements of Operations
          For the three and nine months ended March 31, 2005 and 2004. . . . . 5

        Unaudited Condensed Consolidated Statements of Cash Flows
          For the nine months ended March 31, 2005 and 2004. . . . . . . . . . 6

        Unaudited Condensed Consolidated Statements of Comprehensive Income
          For the three and nine months ended March 31, 2005 and 2004. . . . . 7

        Notes to Unaudited Condensed Consolidated Financial Statements. . . . .8

        Item 2. Management's Discussion and Analysis of Results of Operations
                  and Financial Condition. . . . . . . . . . . . . . . . . . .15

        Item 3. Quantitative and Qualitative Disclosures About Market Risk. . 25

        Item 4. Controls and Procedures. . . . . . . . . . . . . . . . . . . .27


PART II  OTHER INFORMATION

        Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . 28

        Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . . 28

        Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . . . 28

        Item 4. Submission of Matters to a Vote of Security Holders . . . . . 28

        Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . . 28

        Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . 29

        Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30


                                     - 2 -
<PAGE>
PART I  FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
---------------------------------------------------------------------------------

                                                           MARCH 31,    JUNE 30,
                                                             2005         2004
                                                          -----------  ----------
 ASSETS
<S>                                                       <C>          <C>
 CURRENT ASSETS:
    Cash and cash equivalents                             $    3,717   $   5,821
   Accounts receivable:
     Oil and gas sales                                         9,266       8,632
     Gas aggregation and pipeline                             12,004       9,079
     Other                                                     4,519       4,000
                                                          -----------  ----------
      Accounts receivable                                     25,789      21,711
    Less allowance for doubtful accounts                        (898)     (1,022)
                                                          -----------  ----------
      Accounts receivable, net of allowance                   24,891      20,689

    Deferred income tax asset                                    612       2,087
    Deferred taxes - other comprehensive loss                  4,694       2,889
    Notes receivable, related party                               49          59
    Derivatives                                                  313           -
    Prepaid and other current assets                           2,024       4,141
                                                          -----------  ----------
      Total current assets                                    36,300      35,686

 Property, plant and equipment, net of accumulated
    depreciation and depletion of $154,301 and $143,846      257,826     246,391

 OTHER ASSETS:
    Deferred financing costs, net of accumulated
      amortization of $7,628 and $6,833                        1,943       2,015
    Notes receivable, related party                              369         113
    Derivatives                                                  345           -
    Other                                                      5,890       6,007
                                                          -----------  ----------
      Total other assets                                       8,547       8,135
                                                          -----------  ----------

 TOTAL                                                    $  302,673   $ 290,212
                                                          ===========  ==========
<FN>

The accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
</TABLE>


                                      - 3 -
<PAGE>
<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
------------------------------------------------------------------------------------

                                                              MARCH 31,    JUNE 30,
                                                                2005         2004
                                                             -----------  ----------
<S>                                                          <C>          <C>
 LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES:
    Accounts payable and accrued expenses                    $    9,216   $  14,823
    Current portion of long-term debt                               155       1,145
    Funds held for future distribution                           17,528      16,701
    Income taxes payable                                          2,349         128
    Accrued taxes, other than income                              9,780       9,289
    Derivatives                                                   8,648       7,303
    Other current liabilities                                     1,173       3,562
                                                             -----------  ----------
       Total current liabilities                                 48,849      52,951

 LONG-TERM OBLIGATIONS:
    Long-term debt                                              176,484     162,894
    Deferred trust revenue                                        2,228       2,511
    Deferred income tax liability                                17,230      19,552
    Derivatives                                                   1,807           -
    Other long-term obligations                                   8,115       8,447
                                                             -----------  ----------
       Total liabilities                                        254,713     246,355

 Minority Interest                                                1,329       1,495
 COMMITMENTS AND CONTINGENCIES

 STOCKHOLDERS' EQUITY:
    Common stock, par value $1.00; 2,000,000 shares
       authorized; 730,039 shares issued                            730         730
    Class A non-voting common stock, no par value; 100,000
    shares authorized; 69,615 and 68,237 shares issued            8,260       8,027
    Additional paid-in capital                                    5,503       5,503
    Retained earnings                                            54,541      48,200
    Treasury stock and notes receivable arising from the
       issuance of common stock                                 (15,580)    (14,954)
    Deferred compensation on restricted stock                    (1,581)     (1,887)
    Accumulated other comprehensive loss                         (5,242)     (3,257)
                                                             -----------  ----------
       Total stockholders' equity                                46,631      42,362
                                                             -----------  ----------

 TOTAL                                                       $  302,673   $ 290,212
                                                             ===========  ==========
<FN>

The accompanying notes are an integral part of the unaudited condensed consolidated
financial statements.
</TABLE>


                                     - 4 -
<PAGE>
<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS)
---------------------------------------------------------------------------------------------------------------

                                                                THREE MONTHS ENDED        NINE MONTHS ENDED
                                                                     MARCH 31,                MARCH 31,
                                                              ------------------------  -----------------------
                                                                 2005         2004         2005        2004
                                                              ----------  ------------  ----------  -----------
<S>                                                           <C>         <C>           <C>         <C>
 REVENUES:
    Oil and gas sales                                         $  18,505   $    14,735   $  48,408   $   43,255
    Gas aggregation and pipeline sales                           19,886        16,126      54,826       46,202
    Well operations and service revenues                          1,196         1,243       3,859        3,912
    Other                                                             -           100         467          148
                                                              ----------  ------------  ----------  -----------
         Total revenues                                          39,587        32,204     107,560       93,517
                                                              ----------  ------------  ----------  -----------
 COST AND EXPENSES:
    Field operating expenses                                      3,076         2,817       8,692        8,527
    Gas aggregation and pipeline cost of sales                   18,394        14,645      50,525       42,641
    General and administrative                                    3,911         3,930      11,262       11,419
    Taxes, other than income                                      1,284         1,132       3,530        2,966
    Depletion and depreciation of oil and gas properties          3,288         3,269       9,255       10,186
    Depreciation of pipelines, other property and equipment       1,086         1,055       3,167        3,104
    Exploration and impairment                                    1,282         1,021       3,716        3,642
    Gain on sale of assets                                          (86)         (175)     (3,002)        (283)
                                                              ----------  ------------  ----------  -----------
         Total costs and expenses                                32,235        27,694      87,145       82,202
                                                              ----------  ------------  ----------  -----------
    Income from operations                                        7,352         4,510      20,415       11,315
 OTHER (INCOME) EXPENSE:
    Interest expense                                              3,239         3,766       9,627       11,354
    Interest income and other                                       156           (24)      1,512       (1,099)
                                                              ----------  ------------  ----------  -----------
 Income before income taxes and minority interest                 3,957           768       9,276        1,060
 Income tax expense (benefit)                                     1,019        (3,850)      2,031       (3,692)
                                                              ----------  ------------  ----------  -----------
 Income before minority interest                                  2,938         4,618       7,245        4,752
 Minority interest                                                   53            13         172          118
                                                              ----------  ------------  ----------  -----------
 NET INCOME                                                   $   2,991   $     4,631   $   7,417   $    4,870
                                                              ==========  ============  ==========  ===========
<FN>

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
</TABLE>


                                     - 5 -
<PAGE>
<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(AMOUNTS IN THOUSANDS)
--------------------------------------------------------------------------------------
                                                                   NINE MONTHS ENDED
                                                                      MARCH 31,
                                                               -----------------------
                                                                  2005        2004
                                                               ----------  -----------
<S>                                                            <C>         <C>
 CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                                  $   7,417   $    4,870
   Adjustments to reconcile net income to
      net cash provided (used) by operating activities:
   Depletion, depreciation and amortization                       12,422       13,290
   Gain on sale of assets                                         (3,002)        (283)
   (Gain) loss on redemption of senior bonds                         249         (513)
   Deferred income taxes                                            (846)      (4,161)
   Exploration and impairment                                      3,511        3,590
   Other, net                                                         93          637
                                                               ----------  -----------
                                                                  19,844       17,430

   Changes in assets and liabilities:
   Accounts receivable                                            (4,203)       5,072
   Income taxes payable                                            2,222          525
   Prepaid and other assets                                       (1,409)        (324)
   Accounts payable and accrued expenses                          (5,228)      (4,657)
   Funds held for future distribution                                827       (2,044)
   Other                                                          (2,899)         282
                                                               ----------  -----------
   Net cash provided by operating activities                       9,154       16,284

 CASH FLOWS FROM INVESTING ACTIVITIES
   Expenditures for property, plant and equipment                (25,827)     (11,051)
   Proceeds from sale of assets                                    3,984          990
   Notes receivable and other                                       (304)          34
                                                               ----------  -----------
   Net cash used by investing activities                         (22,147)     (10,027)

 CASH FLOWS FROM FINANCING ACTIVITIES
   Proceeds from long-term debt                                  132,651       36,380
   Principal payments on long-term debt                         (120,051)     (43,528)
   Purchase of treasury stock and other financing activities        (712)        (657)
   Proceeds from issuance of stock                                     -          257
   Dividends paid                                                   (999)        (928)
                                                               ----------  -----------
   Net cash provided (used) by financing activities               10,889       (8,476)
                                                               ----------  -----------
   Net decrease in cash and cash equivalents                      (2,104)      (2,219)
   Cash and cash equivalents, beginning of period                  5,821        4,831
                                                               ----------  -----------
   Cash and cash equivalents, end of period                    $   3,717   $    2,612
                                                               ==========  ===========
<FN>

The accompanying notes are an integral part of the unaudited condensed consolidated
financial statements.
</TABLE>


                                     - 6 -
<PAGE>
<TABLE>
<CAPTION>
ENERGY CORPORATION OF AMERICA
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(AMOUNTS IN THOUSANDS)
-----------------------------------------------------------------------------------------------------------------------

                                                                             THREE MONTHS ENDED        NINE MONTHS ENDED
                                                                                  MARCH 31,                MARCH 31,
                                                                           ------------------------  -----------------------
                                                                              2005         2004         2005         2004
                                                                           ----------  ------------  -----------  ----------
<S>                                                                        <C>         <C>           <C>          <C>
 Net income                                                           $   2,991   $     4,631   $    7,417   $   4,870
 Other comprehensive income (loss), net of tax:
    Foreign currency translation adjustment:
       Current period change                                               (166)           63          750         956
    Oil and gas derivatives:
       Current period transactions                                       (6,267)         (927)      (5,261)     (1,250)
       Reclassification to earnings                                        (116)          (50)       2,539         121
    Interest rate hedging:
       Current period transactions                                          121             -          (13)          -
       Reclassification to earnings                                           -             -            -           -
                                                                      ----------  ------------  -----------  ----------
 Other comprehensive loss, net of tax                                    (6,428)         (914)      (1,985)       (173)
                                                                      ----------  ------------  -----------  ----------
 Comprehensive income (loss)                                          $  (3,437)  $     3,717   $    5,432   $   4,697
                                                                      ==========  ============  ===========  ==========
<FN>

The accompanying notes are an integral part of the condensed consolidated financial statements.
</TABLE>


                                      - 7 -
<PAGE>
                         ENERGY CORPORATION OF AMERICA
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2005


1.   Nature  of  Organization

     Energy  Corporation  of  America  (the  "Company")  is  a  privately  held
     energy  company  engaged  in  the  exploration,  development,  production,
     gathering  and  aggregation  of  natural  gas  and  oil,  primarily  in the
     Appalachian  Basin  and  Gulf Coast regions in the United States and in New
     Zealand.  The  Company  conducts  business  primarily through its principal
     wholly  owned  subsidiaries and is one of the largest oil and gas operators
     in  the  Appalachian  Basin.  As  used  herein  the "Company" refers to the
     Company alone or together with one or more of its subsidiaries.

2.   Accounting  Policies

     Reference  is  hereby  made  to  the  Company's  Annual Report on Form 10-K
     for  the fiscal year ended June 30, 2004, which contains a summary of major
     accounting  policies  followed in preparation of its consolidated financial
     statements.  Those  policies  were also followed in preparing the quarterly
     report included herein.

     Management  of  the  Company  believes  that all adjustments, consisting of
     only  normal  recurring  accruals, necessary for a fair presentation of the
     results  of  such interim periods have been made. The results of operations
     for  the  period ended March 31, 2005 are not necessarily indicative of the
     results to be expected for the full year.

     Certain  amounts  in  the  financial  statements of prior periods have been
     reclassified to conform to the current period presentation.

     Recent  Accounting  Pronouncements  -  On  December 16, 2004, the Financial
     Accounting  Standards  Board  ("FASB")  published  Statement  of  Financial
     Accounting  Standards  No.  123  (Revised 2004), Share Based Payment ("SFAS
     123R").  SFAS  123R  requires that compensation cost related to share-based
     payment transactions be recognized in the financial statements. Share-based
     payment  transactions  within the scope of SFAS 123R include stock options,
     restricted  stock  plans,  performance-based  awards,  stock  appreciation
     rights,  and employee share purchase plans. The provisions of SFAS 123R are
     effective  as  of  the  first  fiscal  year  beginning after June 15, 2005.
     Accordingly,  the  Company will implement the revised standard in the first
     quarter  of  fiscal  year  2006.  Currently,  the  Company accounts for its
     share-based payment transactions under the provisions of APB 25, which does
     not  necessarily  require  the  recognition  of  compensation  cost  in the
     financial  statements.  Management  is  assessing  the implications of this
     revised  standard  and the effect of the adoption of SFAS 123R will have on
     our financial position, results of operations, or cash flow.


                                      - 8 -
<PAGE>
     Supplemental  Disclosures  of  Cash  Flow  Information  - Supplemental cash
     flow  information  for  the  nine  months  ended March 31 is as follows (in
     thousands):

<TABLE>
<CAPTION>
                              NINE MONTHS ENDED
                                  MARCH 31,
                            ---------------------
                              2005        2004
                            ---------  ----------
<S>                         <C>        <C>

     Cash paid for:
       Interest             $   6,884  $    8,039
       Income taxes               528           -
     Income taxes refunded          -           -
</TABLE>


3.   Note  Repurchases

     The  Company  purchased  $34.0  million  of  its 9 1/2% Senior Subordinated
     Notes  ("Notes") during the nine months ended March 31, 2005 pursuant to an
     Asset  Sale  Offer  as  defined in the Indenture for the Notes. The Company
     purchased $6.04 million of its Notes during the nine months ended March 31,
     2004 in privately negotiated transactions.

4.   Industry  Segments

     The  Company's  reportable  business  segments  have  been identified based
     on  the  differences  in  products  and  service provided. Revenues for the
     exploration and production segment are derived from the production and sale
     of natural gas and crude oil. Revenues for the gas aggregation and pipeline
     segment  arise  from the marketing of both Company and third party produced
     natural  gas  volumes  and  the related transportation. Management utilizes
     earnings  before interest, taxes, depreciation, depletion, amortization and
     exploration  and impairment costs ("EBITDAX") to evaluate the operations of
     each segment.


                                      - 9 -
<PAGE>
     Summarized  financial  information  for  the  Company's reportable segments
     for  operations is as follows for the three months ended March 31, 2005 and
     2004 (in thousands):

<TABLE>
<CAPTION>
                                                 Exploration &   Gas Aggregation
                                                  Production       & Pipeline       Other    Consolidated
                                                --------------  ----------------  ---------  -------------
      For the three months ended March 31, 2005
     ------------------------------------------
<S>                                             <C>             <C>               <C>        <C>
       Revenue from unaffiliated customers      $       19,701  $        19,886   $      -   $      39,587
       Depreciation, depletion, amortization             3,716              153        505           4,374
       Exploration and impairment costs                  1,282                -          -           1,282
       Interest expense, net                             5,567           (2,244)      (100)          3,223
       EBITDAX                                          12,283              712        (90)         12,905
       Total assets                                    177,904          107,819     16,950         302,673
       Capital expenditures                              6,946              229      1,036           8,211

     =====================================================================================================

      For the three months ended March 31, 2004
     ------------------------------------------
       Revenue from unaffiliated customers      $       15,978  $        16,126   $    100   $      32,204
       Depreciation, depletion, amortization             3,637              156        531           4,324
       Exploration and impairment costs                  1,021                -          -           1,021
       Interest expense, net                             5,351           (1,897)       247           3,701
       EBITDAX                                           7,652              972      1,267           9,891
       Total assets                                    174,437           94,970     13,430         282,837
       Capital expenditures                              3,321               28        (43)          3,306

     =====================================================================================================
</TABLE>


                                     - 10 -
<PAGE>
     Reconciliation  of  EBITDAX  is  as  follows  for  the  three  months ended
     March 31, 2005 and 2004 (in thousands):

<TABLE>
<CAPTION>
                                                                    Three Months Ended
                                                                  March 31,    March 31,
                                                                     2005        2004
                                                                  ----------  -----------
<S>                                                               <C>         <C>
      Net income                                                  $    2,991  $    4,631

     Add:
        Interest expense                                               3,239       3,766
        Depletion and depreciation of oil and gas properties           3,288       3,269
        Depreciation of pipelines, other property and equipment        1,086       1,055
        Exploration and impairment                                     1,282       1,021
        Income tax expense (benefit)                                   1,019      (3,850)

                                                                  ----------  -----------
     EBITDAX                                                      $   12,905  $    9,892
                                                                  ==========  ===========
</TABLE>


Summarized financial information for the Company's reportable segments for
operations is as follows for the nine months ended March 31, 2005 and 2004 (in
thousands):

<TABLE>
<CAPTION>
                                                Exploration &    Gas Aggregation
                                                  Production       & Pipeline       Other    Consolidated
                                                --------------  -----------------  --------  -------------
      For the nine months ended March 31, 2005
     -----------------------------------------
<S>                                             <C>             <C>                <C>       <C>

        Revenue from unaffiliated customers     $       52,267  $         54,826   $   467   $     107,560
        Depreciation, depletion, amortization           10,500               459     1,463          12,422
        Exploration and impairment costs                 3,716                 -         -           3,716
        Interest expense, net                           16,581            (6,342)     (685)          9,554
        EBITDAX                                         34,843             2,096    (1,726)         35,213
        Total assets                                   177,905           107,819    16,949         302,673
        Capital expenditures                            23,650               426     1,751          25,827

     =====================================================================================================

      For the nine months ended March 31, 2004
     -----------------------------------------
        Revenue from unaffiliated customers     $       47,167  $         46,202   $   148   $      93,517
        Depreciation, depletion, amortization           11,214               475     1,601          13,290
        Exploration and impairment costs                 3,626                16         -           3,642
        Interest expense, net                           16,676            (5,494)      (29)         11,153
        EBITDAX                                         27,047             2,027       390          29,464
        Total assets                                   174,437            94,970    13,430         282,837
        Capital expenditures                            10,919                38        94          11,051

     =====================================================================================================
</TABLE>


                                     - 11 -
<PAGE>
     Reconciliation  of  EBITDAX  is  as  follows  for  the  nine  months  ended
     March 31, 2005 and 2004 (in thousands):

<TABLE>
<CAPTION>
                                                                    Nine Months Ended
                                                                  March 31,    March 31,
                                                                    2005        2004
                                                                 ----------  -----------
<S>                                                              <C>         <C>
      Net income                                                 $    7,417  $    4,870

     Add:
       Interest expense                                               9,627      11,354
       Depletion and depreciation of oil and gas properties           9,255      10,186
       Depreciation of pipelines, other property and equipment        3,167       3,104
       Exploration and impairment                                     3,716       3,642
       Income tax expense (benefit)                                   2,031      (3,692)

                                                                 ----------  -----------
     EBITDAX                                                     $   35,213  $   29,464
                                                                 ==========  ===========
</TABLE>

     Revenues  are  priced  and  accounted  for  consistently  for  both
     unaffiliated  and  intersegment  sales.  The  'Other' column includes items
     related  to  non-reportable segments, including drilling rig, corporate and
     elimination  items.  Included  in  the  total assets of the exploration and
     production  segment  are  net  long-lived  assets located in New Zealand of
     $10.7  million  and  $6.9  million  as of March 31, 2005 and 2004 with $0.1
     million  in revenues recorded for the three and nine months ended March 31,
     2005  as  compared  to no significant revenue recorded for the three months
     ended  March  31,  2004 and $0.3 million recorded for the nine months ended
     March 31, 2004.

5.   Derivative Instruments

     The  Company  periodically  hedges  a portion of its gas production through
     futures,  swaps, floors and collar agreements. The purpose of the hedges is
     to  provide  a  measure of stability in the volatile environment of oil and
     gas  prices  and  to  manage  its  exposure  to  commodity price risk under
     existing  sales  commitments.  All  of the Company's swap, floor and collar
     agreements in place are designated as cash flow hedges.

     For  swaps  in  place  at  March  31, 2005, the Company had recorded a $4.7
     million  other  comprehensive  loss,  $3.1  million short-term deferred tax
     asset,  $6.3  million  short-term  derivative  liability,  and $1.5 million
     long-term  derivative  liability.  The estimated net amount of the existing
     losses  within  other  comprehensive  income  that  are  expected  to  be
     reclassified  into  earnings within the next twelve months is approximately
     $3.8  million.  The  Company  has  partially  hedged  its  exposure  to the
     variability in future cash flows through December 2007.

     For  floors  in  place  at  March 31, 2005, the Company had recorded a $0.8
     million  other  comprehensive  loss,  $0.5  million short-term deferred tax
     asset,  and  $0.2  million  short-term  derivative asset. The estimated net
     amount  of  existing  losses  within  other  comprehensive  income that are
     expected  to be reclassified into earnings within the next twelve months is
     approximately $0.8


                                     - 12 -
<PAGE>
     million.  The  Company  has  partially  hedged  its  exposure  to  the
     variability in future cash flows through March 2006.

     For  collars  in  place  at  March  31,  2005,  the  Company had recorded a
     $1.6 million other comprehensive loss, $1.0 million short-term deferred tax
     asset,  $2.3  million  short-term  derivative  liability,  and $0.3 million
     long-term  derivative  liability.  No  amount of the existing losses within
     other  comprehensive  income  is  expected to be reclassified into earnings
     within  the  next  twelve  months.  The  Company  has  partially hedged its
     exposure to the variability in future cash flows through December 2007.

     In  August  2004,  the  Company  entered  into  four  interest  rate  cap
     agreements  with  Wells  Fargo Foothill, Inc. ("Foothill"), in an effort to
     reduce the potential impact of increases in interest rates on floating-rate
     long-term  debt.  The  agreements  range  from  two to three years covering
     $40,000,000  in  long-term  debt  and  cap  the  one month London Interbank
     Offered Rate ("LIBOR") at 3.5%. At March 31, 2005, the Company has recorded
     a  $13,000  other comprehensive loss, $8,400 short-term deferred tax asset,
     $149,000  short-term  derivative  asset,  and $345,000 long-term derivative
     asset.  The  estimated  net  amount  of  existing  losses  within  other
     comprehensive  income  that  are  expected to be reclassified into earnings
     within  the  next  twelve  months  is approximately $3,800. The Company has
     partially  hedged  its  exposure  to  the  variability in future cash flows
     through July 2007.

6.   Commitments and Contingencies

     The  Company  is  involved  in  legal  actions  and  claims  arising in the
     ordinary  course  of  business. While the outcome of these lawsuits against
     the  Company cannot be predicted with certainty, management does not expect
     these matters to have a material adverse effect on the Company's operations
     or financial position.

     Pursuant  to  an  Agreement  dated  December  28,  1998,  the  Company  is
     required  to  purchase  all shares owned by Kenneth W. Brill upon notice by
     Mr.  Brill's  estate  or  promptly  after the passage of two years from Mr.
     Brill's  death if the estate does not sooner tender the shares. The Company
     entered  into a repurchase agreement on January 21, 2004 with the KWB Trust
     to  define  the  purchase  price  and  establish  the  conditions  for  the
     repurchase  of  stock  owned  by the Kenneth W. Brill estate. The agreement
     outlines the repurchase of 49,110 shares of stock by the Company or through
     third  parties,  at an anticipated value of approximately $3.7 million over
     the  next  five  years,  and  provides  for  payments  in  twenty quarterly
     installments  on  the  majority  of  the  shares  to  be  repurchased.  The
     repurchase  of  shares  is subject to certain restrictions in the Company's
     credit  agreements.  On  March 31, 2005, the Company's remaining repurchase
     obligation  under the Agreement is approximately $2.5 million of which $1.3
     million  was  classified  as  a liability and the remaining $1.2 million is
     included  in  stockholders' equity as third parties have agreed to purchase
     such amount.

     During  June  2004,  the  Company  sold  its  membership  interest  in
     Breitburn  Energy  Company,  LLC  and  established  a  $1.8 million reserve
     against items for which the Company was required to indemnify the buyer for
     a  period  of  180  days  after  closing  pursuant  to  the agreement. This
     requirement  was  fulfilled during the quarter ended December 31, 2004 with
     no such claims from the buyer and was recorded as gain on sale of assets.


                                     - 13 -
<PAGE>
7.   Related Party Transaction

     Pursuant  to  an  Agreement  dated  December 31, 2004, the Company advanced
     $0.3 million to a certain officer bearing 5% interest. The principal amount
     is  due in full, unless paid sooner, on December 31, 2008 and is secured by
     a stock pledge agreement.

8.   Income Taxes

     The  Company  is  currently  under  examination  by  the  U.S.  Internal
     Revenue  Service of its federal income tax returns for the tax years ending
     June  30,  2002 and 2003. At December 31, 2004, the Company recorded a $2.3
     million  current  income  taxes  payable  and  corresponding  reduction  to
     deferred  tax  liability resulting from a deferral in the timing of certain
     deductions  arising  from abandoned properties. In addition, in March 2005,
     the  State of West Virginia Department of Revenue notified the Company that
     its  tax  returns  for  the  open  tax  years  had been selected for audit.
     Management  of  the  Company  continues  to  believe that it has adequately
     provided for any potential tax liability that may be ultimately assessed by
     the IRS or West Virginia DOR.

9.   Debt

     The  Company  has  an  unsecured  revolving  line  of  credit totaling $3.0
     million  with  a  financial institution with an interest rate of prime plus
     0.25%.  Based  upon  the  original  terms of the agreement, the line was to
     reduce by $1.0 million in November 2004 and was to expire on June 30, 2005.
     The  unsecured revolving line of credit was renegotiated during the quarter
     ended December 31, 2004 to extend the terms of the agreement. Under the new
     agreement  the  Company  has  an  unsecured  line  of  credit totaling $3.0
     million, which reduces by $1.0 million in June 2005 and expires on April 1,
     2007.

10.  Employee  Benefit  Plans

     Effective  January  1,  2005,  the  Company  amended  its  401(k)  plan  to
     provide for matching based on each participant's length of service with the
     Company. The matching percentages are as follows:

<TABLE>
<CAPTION>
                                                   Matching
     LENGTH OF SERVICE                            Percentage
     -----------------                            -----------
<S>                                              <C>

     0 - 10 years     ___________________________        35%
     10 - 15 years    ___________________________        45%
     15 - 20 years    ___________________________        55%
     20 or more years ___________________________        65%
</TABLE>

     The  amended  matching  percentages  are  in  effect  until further amended
     by the ECA Board of Directors.

11.  Anticipated Transaction

     On  April  4,  2005  the  Company  filed  registration  statement  with the
     Securities  and  Exchange  Commission ("SEC") relating to an initial public
     offering  of Trust units proposed to be issued by a new royalty trust which
     will be known as the Appalachian Gas Royalty Trust ("Trust"). The Trust


                                     - 14 -

<PAGE>
     units  of  the  Trust  will  be listed on the New York Stock Exchange under
     the  symbol "ANG". The royalty interest created by the Company will entitle
     the  Trust  to  receive  90%  of  the  net proceeds from the sale of future
     production  of  natural  gas  attributable to the Company's interest in 312
     existing  producing  wells  and  50%  of  the net proceeds from the sale of
     future  production of natural gas attributable to the Company's interest in
     180  additional  wells  that the Company is obligated to drill by March 31,
     2009. The term of the Trust will extend for a period of 20 years commencing
     as  of January 1, 2005. Upon termination of the Trust, the royalty interest
     held by the Trust will revert to the Company.

     The  Company  will  receive  the  net  proceeds  from the sale of the Trust
     units,  currently  estimated  to  be  approximately  $142  million  (after
     deduction  of  underwriting  commissions  and expenses of the offering), in
     exchange  for  the  contributions of the royalty interest to the Trust. The
     completion  of the offering is subject to a number of conditions, including
     clearance  of  the  registration statement by the SEC, and will depend upon
     market  conditions  at  the  time  of  the offering of the units as well as
     sufficient  investor  demand for the Trust units. As a result, there can be
     no assurance that this transaction will be completed or, if completed, that
     the  Company  will  realize  the  full amount of the net proceeds currently
     estimated.

     A  registration  statement  relating  to  the  Trust  units  has been filed
     with  the  SEC but has not yet become effective. The Trust units may not be
     sold  nor  may offers to buy be accepted prior to the time the registration
     statement become effective.

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

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
--------------------------------------------------------------------------------

     This  discussion  and  analysis  of  financial  condition  and  results  of
operations,  and  other  sections  of  this  Form  10-Q, contain forward-looking
statements  that  are  based  on  management's  beliefs,  assumptions,  current
expectations,  estimates,  intentions  and  projections  about  the  oil and gas
industry,  the  economy  and  about  the  Company  itself.  Words  such  as
"anticipates,"  "believes,"  "estimates," "expects," "forecasts," "intends," "is
likely,"  "plans,"  "predicts," "projects," variations of such words and similar
expressions  are  intended to identify such forward-looking statements under the
Private  Securities  Litigation  Reform  Act of 1995.  The Company cautions that
these  statements  are  not guarantees of future performance and involve certain
risks,  uncertainties  and assumptions that are difficult to predict with regard
to  timing,  extent,  likelihood  and  degree  of occurrence.  Therefore, actual
results  and  outcomes  may  materially  differ  from  what  may be expressed or
forecasted  in  such  forward-looking  statements.  Furthermore,  the  Company
undertakes no obligation to update, amend or clarify forward-looking statements,
whether  as  a  result  of  new  information,  future  events  or  otherwise.

     Important factors that could cause actual results to differ materially from
the  forward-looking  statements  include,  but  are  not  limited  to,  weather
conditions, changes in production volumes, worldwide demand and commodity prices
for  petroleum natural resources, the timing and extent of the Company's success
in  discovering,  acquiring,  developing  and  producing  oil  and  natural  gas
reserves,  risks  incident  to the drilling and operation of oil and natural gas
wells, future production and development costs, foreign currency exchange rates,
the  effect  of  existing  and  future  laws,  governmental  regulations and the
political  and economic climate of the United States and New Zealand, the effect
of  hedging  activities,  and  conditions  in  the  capital  markets.


                                     - 15 -
<PAGE>
     The  following  should  be read in conjunction with the Company's Financial
Statements and Notes (including the segment information) at Part I, Item 1.


COMPARISON  OF  RESULTS  OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2005
--------------------------------------------------------------------------------
AND  2004
---------

     The Company recorded net income of $3.0 million for the quarter ended March
31,  2005  compared  to  $4.6 million for the quarter ended March 31, 2004.  The
decrease in net income of $1.6 million is primarily attributable to the net of a
$7.4  million  increase  in  revenues,  a  $4.5  million  increase  in costs and
expenses,  a  $0.5 million decrease in interest expense, a $0.2 million decrease
in interest income and other, and a $4.9 million increase in income tax expense.


                                     - 16 -
<PAGE>
     Production, gas aggregation and pipeline volumes, revenue and average sales
prices  for  the  quarters  ended  March  31  and their related variances are as
follows:

<TABLE>
<CAPTION>
                                                        THREE MONTHS ENDED
                                                             MARCH 31            VARIANCE
                                                      ---------------------  -----------------
                                                        2005        2004     AMOUNT   PERCENT
                                                      ---------  ----------  -------  --------
<S>                                                   <C>        <C>         <C>      <C>
Natural Gas
   Production (Mmcf)                                      2,620      2,689      (69)    (2.6%)
   Average sales price received ($/Mcf)                    6.48       6.02     0.46       7.6%
                                                      ---------  ----------  -------  --------
   Sales ($ in thousands)                                16,972     16,193      779       4.8%
Oil
   Production (Mbbl)                                         28         23        5      21.7%
   Average sales price received ($/Bbl)                   45.21      31.22    14.00      44.8%
                                                      ---------  ----------  -------  --------
   Sales ($ in thousands)                                 1,266        718      548      76.3%
Hedging gain (loss)                                         192     (2,252)   2,444   (108.5%)
Other                                                        75         76       (1)    (1.3%)
                                                      ---------  ----------  -------  --------
Total oil and gas sales ($ in thousands)                 18,505     14,735    3,770      25.6%
                                                      =========  ==========  =======  ========
Aggregation Revenue
   Volume (Million Mmbtu)                                 2,214      2,228      (14)    (0.6%)
   Average sales price received ($/Mmbtu)                  6.69       5.35     1.35      25.2%
                                                      ---------  ----------  -------  --------
   Sales ($ in thousands)                                14,819     11,909    2,910      24.4%
Pipeline Revenue
   Volume (Million Mmbtu)                                 2,177      1,362      815      59.8%
   Average sales price received ($/Mmbtu)                  2.33       3.10    (0.77)   (24.8%)
                                                      ---------  ----------  -------  --------
   Sales ($ in thousands)                                 5,067      4,217      850      20.2%
Total aggregation and pipeline sales ($ in thousands)    19,886     16,126    3,760      23.3%
                                                      =========  ==========  =======  ========
Aggregation Gas Cost
   Volume (Million Mmbtu)                                 2,214      2,228      (14)    (0.6%)
   Average price paid ($/Mmbtu)                            6.45       5.02     1.43      28.5%
                                                      ---------  ----------  -------  --------
   Cost ($ in thousands)                                 14,271     11,179    3,092      27.7%
Pipeline Gas Cost
   Volume (Million Mmbtu)                                 1,049      1,088      (39)    (3.6%)
   Average price paid ($/Mmbtu)                            3.93       3.19     0.74      23.4%
                                                      ---------  ----------  -------  --------
   Cost ($ in thousands)                                  4,123      3,466      657      19.0%
Total aggregation and pipeline cost ($ in thousands)     18,394     14,645    3,749      25.6%
                                                      =========  ==========  =======  ========
</TABLE>

     REVENUES.  Total revenues increased $7.4 million between the periods.  The
     --------
increase was due to a $3.8 million increase in oil and gas sales and a $3.8
million increase in gas aggregation and pipeline sales.  Well operations and
service revenues remained relatively constant.


                                     - 17 -
<PAGE>
     Revenues  from oil and gas sales increased a net of $3.8 million from $14.7
million  for  the  quarter ended March 31, 2004 to $18.5 million for the quarter
ended March 31, 2005. Natural gas sales increased $0.8 million. The net increase
in  natural  gas sales is attributable to an increase in gas prices, offset by a
slight  decrease  in  gas production. Oil sales increased by $0.5 million due an
increase  in  oil prices and production. The price increases correspond with the
rise  in  the  related  natural gas and oil indexes. The decrease in natural gas
production  is  primarily  due  to  wells  sold  in  California.  Gas sales were
increased by recognized gains on related hedging transactions and other revenue,
which  totaled  $0.3  million for the quarter ended March 31, 2005 compared to a
loss of $2.2 million for the quarter ended March 31, 2004.

     Revenues  from  gas  aggregation  and pipeline sales increased $3.8 million
from  $16.1  million  during the period ended March 31, 2004 to $19.9 million in
the  period ended March 31, 2005. Gas aggregation revenue increased $2.9 million
primarily  because of an increase in average sales prices and corresponds to the
rise  in  related  gas  indexes  for  this  period compared to the prior period.
Offsetting  this  increase  in sales prices was a slight decrease in gas volumes
due to curtailments and natural production declines. Pipeline revenue, which has
a  sales and gathering component, increased $0.9 million primarily because of an
increase  in the average sales price related to the non-gathering volumes and an
increase  in revenue related to the gathering component for this period compared
to  the  prior  period.  The  increase  in  revenues  and volumes related to the
gathering  component  is  primarily  the result of the acquisition of a 100-mile
long  natural  gas  gathering  system  located  in  northeastern  West  Virginia
finalized  during  the first quarter of the current fiscal year. The increase in
the  average sales price related to the non-gathering volumes corresponds to the
increase in related gas indexes for the period as compared to the prior period.

     COSTS AND EXPENSES. The Company's costs and expenses increased $4.5 million
     ------------------
between  the  periods  primarily  as  a net result of a $0.3 million increase in
field  and  lease  operating expense, a $3.7 million increase in gas aggregation
and  pipeline  costs, a $0.2 million increase in taxes other than income, a $0.1
million  increase  in  depreciation,  depletion,  and  amortization cost, a $0.3
million  increase  in  exploration  and  impairment  costs,  and  a $0.1 million
decrease in gain on sale of property as further described below.

     Field  and lease operating expense increased $0.3 million from $2.8 million
during the period ended March 31, 2004 to $3.1 million in the period ended March
31, 2005.  This increase is primarily the result of additional wells in the Gulf
Coast  region  and  road  repair  and  maintenance  in  the  Appalachian  Basin.

     Gas  aggregation  and  pipeline  costs  increased  $3.7  million from $14.6
million  during  the  period ended March 31, 2004 to $18.4 million in the period
ended  March  31,  2005.  Gas  aggregation  costs increased $3.1 million for the
period.  The  increase in costs is primarily attributable to the increase in the
average  purchase  price that corresponds to the rise in the related natural gas
indexes  and was partially offset by a slight decrease in volume for this period
compared  to  the  prior  period.  Pipeline  costs,  which  has  a gathering and
transportation  component,  increased  $0.7  million.  The  increase in costs is
primarily  attributable  to  an  increase  in  the average purchase price, which
corresponds  to  the  rise  in  the  related natural gas indexes and by a slight
increase in gas volumes purchased.

     Taxes  other  than  income increased $0.2 million during the period to $1.3
million.  This  increase  is primarily the result of an increase in wellhead oil
and  gas  sales during the period compared to the prior period. Production taxes
are  based on wellhead oil and gas sales, which were higher this period compared
to the prior period.

     Exploration  and  impairment  costs increased $0.3 million and is primarily
the result of an increase in cost associated with unsuccessful exploratory wells
during  the  period  compared  to  the  prior  period.


                                     - 18 -
<PAGE>
     Gain  on  sale  of  assets  decreased  $0.1  million  primarily  due to the
recognition  of  a  $0.2 million gain during the period ended March 31, 2004 for
the  sale  of Wyoming properties as compared to a $0.1 million gain recorded for
the period ended March 31, 2005 from the sale of land and used vehicles.

     INTEREST  EXPENSE.  Interest  expense decreased $0.5 million when comparing
     ------------------
the  periods  primarily due to the purchase of a portion of the Company's senior
notes  resulting  in a decrease in the average interest rate paid on outstanding
debt.

     INCOME  TAX.  Income  tax  expense  increased $4.9 million to an income tax
     -----------
expense  of  $1.0  million  as  compared  to an income tax benefit for the prior
period  of $3.9 million. The increase is primarily due to the increase in income
before  income taxes of $3.2 million and the decrease in income tax benefit from
the adjustment of the tax contingency balance of $3.6 million for items that are
closed or no longer applicable.


COMPARISON OF RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED MARCH 31, 2005 AND
--------------------------------------------------------------------------------
2004
----

     The  Company  recorded net income of $7.4 million for the nine months ended
March  31, 2005 compared to net income of $4.9 million for the nine months ended
March  31,  2004.  The  increase  in  net  income  of  $2.5 million is primarily
attributable  to  the  net of a $14.0 million increase in revenues, $4.9 million
increase  in costs and expenses, $1.7 million decrease in interest expense, $2.6
million  decrease  in  interest income and other, and a $5.7 million increase in
income  tax  expense.


                                     - 19 -
<PAGE>
     Production, gas aggregation and pipeline volumes, revenue and average sales
prices  for  the  nine  months ended March 31 and their related variances are as
follows:

<TABLE>
<CAPTION>
                                                        NINE MONTHS ENDED
                                                             MARCH 31            VARIANCE
                                                      ---------------------  -----------------
                                                         2005       2004     AMOUNT   PERCENT
                                                      ----------  ---------  -------  --------
<S>                                                   <C>         <C>        <C>      <C>
Natural Gas
   Production (Mmcf)                                      7,600      8,239     (639)    (7.8%)
   Average sales price received ($/Mcf)                    6.62       5.26     1.36      26.0%
                                                      ----------  ---------  -------  --------
   Sales ($ in thousands)                                50,344     43,332    7,012      16.2%
Oil
   Production (Mbbl)                                         61         86      (25)   (29.1%)
   Average sales price received ($/Bbl)                   43.93      28.71    15.23      53.0%
                                                      ----------  ---------  -------  --------
   Sales ($ in thousands)                                 2,680      2,469      211       8.5%
Hedging (loss)                                           (4,861)    (2,807)  (2,054)     73.2%
Other                                                       245        261      (16)    (6.1%)
                                                      ----------  ---------  -------  --------
Total oil and gas sales ($ in thousands)                 48,408     43,255    5,153      11.9%
                                                      ==========  =========  =======  ========
Aggregation Revenue
   Volume (Million Mmbtu)                                 6,035      6,721     (686)   (10.2%)
   Average sales price received ($/Mmbtu)                  6.56       5.16     1.40      27.1%
                                                      ----------  ---------  -------  --------
   Sales ($ in thousands)                                39,565     34,679    4,886      14.1%
Pipeline Revenue
   Volume (Million Mmbtu)                                 6,320      4,179    2,141      51.2%
   Average sales price received ($/Mmbtu)                  2.41       2.76    (0.34)   (12.4%)
                                                      ----------  ---------  -------  --------
   Sales ($ in thousands)                                15,261     11,523    3,738      32.4%
Total aggregation and pipeline sales ($ in thousands)    54,826     46,202    8,624      18.7%
                                                      ==========  =========  =======  ========
Aggregation Gas Cost
   Volume (Million Mmbtu)                                 6,035      6,722     (687)   (10.2%)
   Average price paid ($/Mmbtu)                            6.30       4.96     1.33      26.9%
                                                      ----------  ---------  -------  --------
   Cost ($ in thousands)                                 37,993     33,353    4,640      13.9%
Pipeline Gas Cost
   Volume (Million Mmbtu)                                 3,170      3,369     (199)    (5.9%)
   Average price paid ($/Mmbtu)                            3.95       2.76     1.20      43.4%
                                                      ----------  ---------  -------  --------
   Cost ($ in thousands)                                 12,532      9,288    3,244      34.9%
Total aggregation and pipeline cost ($ in thousands)     50,525     42,641    7,884      18.5%
                                                      ==========  =========  =======  ========
</TABLE>


     REVENUES.  Total  revenues increased $14.0 million between the periods. The
     --------
increase  was  due to a $5.2 million increase in oil and gas sales, $8.6 million
increase  in  gas  aggregation and pipeline sales and a $0.3 million increase in
other  revenues.  Well  operations  and  service  revenues  remained  relatively
constant.


                                     - 20 -
<PAGE>
     Revenues  from oil and gas sales increased a net of $5.2 million from $43.3
million  for  nine  months  ended  March  31, 2004 to $48.4 million for the nine
months  ended  March  31, 2005. Natural gas sales increased $7.0 million and oil
sales  increased  $0.2  million.  The  net  increase in natural gas sales is the
result  of  an  increase  in  average  gas  prices and was partially offset by a
decline  in  production. The price increase corresponds with the rise in related
natural  gas  indexes.  The  production  decline is primarily due to the sale of
several  California  properties  and  certain  pipeline  curtailments  in  the
Appalachian  Basin.  Gas  sales  were  reduced  by  recognized losses on related
hedging  transactions,  which totaled a loss of $4.8 million for the nine months
ended  March  31,  2005  compared  to a loss of $2.8 million for the nine months
ended March 31, 2004.

     Revenues  from  gas  aggregation  and pipeline sales increased $8.6 million
from $46.2 million for the nine months ended March 31, 2004 to $54.8 million for
the  nine  months  ended  March 31, 2005. Gas aggregation revenue increased $4.9
million  because of an increase in average sales prices, offset by a decrease in
gas volumes due to curtailments and natural production declines. The increase in
average sales price corresponds to the rise in related natural gas price indexes
for  this  period  compared  to  the prior period. Pipeline revenue, which has a
sales  and  gathering  component,  increased  $3.7 million from $11.5 million to
$15.2  million  primarily  because  of  an  increase  in the average sales price
related  to  the non-gathering volumes and an increase in revenue related to the
gathering  component  for this period compared to the prior period. The increase
in  revenues  and  volumes  related  to the gathering component primarily is the
result  of  the  acquisition  of  a  100-mile  long natural gas gathering system
located  in northeastern West Virginia finalized during the first quarter of the
current  fiscal  year.  The  increase  in  the  average  sales  price related to
non-gathering volumes corresponds to the increase in related natural gas indexes
for the period as compared to the prior period.

     Other  revenues  increased  $0.3  million between periods. This increase is
primarily  the result of the Company receiving a partnership distribution from a
limited partnership in which the Company owns an interest.

     COSTS AND EXPENSES. The Company's costs and expenses increased $4.9 million
     ------------------
between  the  periods  primarily  as  a net result of a $0.2 million increase in
field  and  lease operating expenses, a $7.9 million increase in gas aggregation
and  pipeline  costs, $0.2 million decrease in general and administrative costs,
$0.6  million  increase  in  taxes other than income, a $0.9 million decrease in
depreciation,  depletion,  and  amortization  cost,  a  $0.1 million increase in
exploration and impairment costs, and a $2.7 million increase in gain on sale of
assets.

     Gas  aggregation and pipeline costs increased $7.9 million. Gas aggregation
costs  increased  $4.6 million and is primarily the result of an increase in the
average  price  of  gas  that corresponds to the rise in the related natural gas
indexes,  offset  by  a  decline  in gas volumes for this period compared to the
prior  period. Pipeline costs increased $3.2 million and is primarily the result
of an increase in the average purchase price that corresponds to the rise in the
related natural gas indexes, with no significant changes in volumes.

     Taxes other than income increased $0.6 million primarily due to an increase
in  wellhead  sales in the period compared to the prior period. Production taxes
are  based  on  wellhead oil and gas sales, which where higher during the period
compared to the prior period.

     Depletion and depreciation of oil and gas properties decreased $0.9 million
due primarily to a decrease in production.

     Gain  on  sale  of  assets  increased  $2.7  million  primarily  due to the
recognition  of  an  $1.8  million  gain  in  the current period, related to the
reversal of a reserve established at June 30, 2004, against items


                                     - 21 -
<PAGE>
for  which  the  Company  was  required  to indemnify the buyer of the Company's
membership interest in Breitburn Energy Company, LLC ("BEC") for a period of 180
days  after  closing  of the agreement.  The Company also realized a gain on the
sale of undeveloped acreage and certain field equipment in the Appalachian Basin
during  the  current  period.

     INTEREST  EXPENSE.  Interest  expense decreased $1.7 million when comparing
     -----------------
the  periods  primarily due to the purchase of a portion of the Company's senior
notes  resulting  in a decrease in the average interest rate paid on outstanding
debt.

     INTEREST  INCOME  AND  OTHER.  Other  income  decreased  $2.6  million when
     ----------------------------
comparing  the periods and is primarily attributable to a decrease in recognized
gains  on  the  purchase of senior bonds, recording a settlement of a contingent
liability and additional profit sharing costs recorded in the current period.

     INCOME  TAX.   Income  tax  expense increased $5.7 million to an income tax
     -----------
expense  of  $2.0  million  as  compared  to an income tax benefit for the prior
period of $3.7 million.  The increase is primarily due to the increase in income
before  income taxes of $8.3 million and the decrease in income tax benefit from
the adjustment of the tax contingency balance of $2.4 million for items that are
closed  or  no  longer  applicable.


LIQUIDITY  AND  CAPITAL  RESOURCES
----------------------------------

     The  Company's  financial  condition and liquidity have improved since June
30,  2004.  Stockholders'  equity  has  increased from $42.4 million at June 30,
2004 to $46.6 million at March 31, 2005.  The Company's cash decreased from $5.8
million  at  June  30,  2004 to $3.7 million at March 31, 2005.  The decrease in
cash  during the nine months of approximately $2.1 million resulted from various
operating,  investing  and  financing activities of the Company.  The activities
were  primarily  comprised  of: the borrowing of $50 million under the Company's
$50  million  term  loan  of  the  Amended  and  Restated  Credit Agreement (the
"Restated  Credit Agreement"); the reduction of $3.4 million under the Company's
$50 million revolving credit facility of the Restated Credit Agreement; payments
of $34 million for the purchase of a portion of the Company's outstanding Notes;
the  issuance  of  notes  of $0.3 million; the investment of approximately $25.8
million;  proceeds  from  the  sale  of  assets  of  approximately $4.0 million;
payments of approximately $1.7 million for the acquisition of treasury stock and
dividends;  and approximately $9.2 million of cash provided by operations during
the  quarter.

     As  previously  reported,  on July 10, 2002, the Company entered into a $50
million  revolving Credit Agreement with Foothill Capital Corporation, now Wells
Fargo  Foothill, Inc. ("Foothill"). The Company and Foothill have entered into a
Restated  Credit  Agreement  dated  June 10, 2004. The Restated Credit Agreement
provides  for  the  $50 million revolving credit facility to be extended and for
the  Company  to  be  provided  with  additional  credit in the form of a single
advance  term  loan  in  the  amount  of  $50  million.  The  term loan contains
requirements  for  principal  payments of $1 million each at July 10, 2005, 2006
and  2007,  with  the  remaining  balance due on July 10, 2008. Depending on the
Company's level of borrowing under the Restated Credit Agreement, the applicable
interest  rates  for  base rate loans are based on Wells Fargo's prime rate plus
0.25%  to 0.75%. The Company has the ability under the Restated Credit Agreement
to  designate certain loans as LIBOR Rate Loans at interest rates based upon the
rate at which dollar deposits are offered to major banks in the London interbank
market  plus  2.25%  to 2.75%. The Restated Credit Agreement expires on July 10,
2008.


                                     - 22 -
<PAGE>
     The  obligations under the Restated Credit Agreement are secured by certain
of the existing proved producing oil and gas assets of the Company. The Restated
Credit  Agreement,  among other things, restricts the ability of the Company and
its  subsidiaries  to incur new debt, grant additional security interests in its
collateral, engage in certain merger or reorganization activities, or dispose of
certain assets.

     The Company has an unsecured revolving line of credit totaling $3.0 million
with  a  financial institution with an interest rate of prime plus 0.25%.  Based
upon the original terms of the agreement, the line was to reduce by $1.0 million
in  November  2004  and was to expire on June 30, 2005.  The unsecured revolving
line  of  credit  was  renegotiated  during  the quarter ended March 31, 2005 to
extend  the  terms of the agreement.  Under the new agreement the Company has an
unsecured line of credit totaling $3.0 million, which reduces by $1.0 million in
June  2005  and  expires  on  April  1,  2007.

     At March 31, 2005, the Company's principal source of liquidity consisted of
$3.7  million of cash, $1.8 million available under an unsecured credit facility
currently  in  place,  plus  amounts  available  under the revolving loan of the
Restated  Credit  Agreement. At March 31, 2005, $1.0 million was outstanding and
$0.2  million was committed through letters of credit under the credit facility,
$32.8  million  was  outstanding  on  the  revolving  loan  and  $50 million was
outstanding on the term loan under the Restated Credit Agreement.

     As  of  May  10, 2005, there is $50 million in outstanding borrowings under
the  term  loan  and $26.6 million in outstanding borrowings under the revolving
loan.  Additional borrowings must comply with the terms of the Indenture and the
Restated  Credit  Agreement.

     As  previously  reported,  the  Company had been in litigation with certain
Holders  (the "Noteholders") of its Notes.  The dispute involved the calculation
of  "Net  Proceeds" of an "Asset Sale" as defined in the Indenture. A settlement
agreement  dated  February  24,  2004,  was  negotiated  with the Noteholders to
resolve  the  dispute.  In  settlement  of  the  dispute  the  Company agreed to
repurchase  $38  million  in  Notes.  The repurchase was effected by the Company
making  Asset  Sale  Offers  (as defined in the Indenture) totaling $38 million.
The  Company made an initial Asset Sale Offer of $4 million, which was completed
on  March  25,  2004.  The  Company  consummated another Asset Sale Offer of $34
million  which  was  completed  on  July 29, 2004.    The United States District
Court  for  the Southern District of West Virginia has entered a Dismissal Order
dismissing  the  litigation  with prejudice. Upon the Company meeting all of the
terms  and conditions of the Settlement Agreement it funded the $50 million term
loan  under  the  Restated  Credit  Agreement.


                                     - 23 -
<PAGE>
     Management  utilizes  earnings  before  interest,  taxes,  depreciation,
depletion,  amortization  and  exploration  and  impairment  cost ("EBITDAX") to
evaluate  the operation of each business segment. Reconciliation of the non-GAAP
financial measure is as follows (in thousands):

<TABLE>
<CAPTION>
                                                                      Twelve Months Ended
                                                                June 30,    June 30,    June 30,
                                                                  2004        2003        2002
                                                               ----------  ----------  ----------
<S>                                                            <C>         <C>         <C>
 Net income (loss)                                             $   4,295   $   9,844   $ (26,180)

Add:
     Interest expense                                             15,069      16,383      19,671
     Depletion and depreciation of oil and gas properties         13,300      12,140      12,362
     Depreciation of pipelines, other property and equipment       4,190       4,294       2,933
     Exploration and impairment                                   10,796      11,729      27,694
     Income tax expense                                           (4,722)      6,073     (16,822)
Less:
     Change in accounting principle, net of tax                        -         (73)          -
     Gain on redemption of senior bonds                              513      23,672           -

                                                               ----------  ----------  ----------
EBITDAX                                                        $  42,415   $  36,864   $  19,658
                                                               ==========  ==========  ==========
</TABLE>


     The  Company's net cash requirements will fluctuate based on timing and the
extent  of  the interplay of capital expenditures, cash generated by operations,
cash  generated  by  the  sale  of  assets  and  interest  expense.  Management
anticipates  that  EBITDAX from oil and gas operations for fiscal year 2005 will
approximate $48 million. The Company's ability to achieve EBITDAX of $48 million
from  oil and gas operations for fiscal year 2005 is highly dependant on product
price  and  continued drilling success. There can be no assurance given that the
Company  will  be  able  to  achieve  these goals. Management believes that cash
generated  from  oil and gas operations, together with the liquidity provided by
existing  cash  balances and permitted borrowings, will be sufficient to satisfy
commitments for capital expenditures of $40.7 million, debt service obligations,
working capital needs and other cash requirements for the current fiscal year.

     In order to reduce future cash interest payments, as well as future amounts
due at maturity or upon redemption, the Company may, from time to time, purchase
its  outstanding  Notes  in  open  market  purchases and/or privately negotiated
transactions.  The  Company will evaluate any such transactions in light of then
existing  market  conditions, taking into account its liquidity, uses of capital
and  prospects  for  future access to capital.  The amounts involved in any such
transaction,  individually  or  in  the  aggregate,  may  be  material.

     The  Company  believes that its existing capital resources and its expected
fiscal  year 2005 results of operations and cash flows from operating activities
will be sufficient for the Company to remain in compliance with the requirements
of  its  Notes and the Restated Credit Agreement.  However, since future results
of  operations,  cash  flow  from operating activities, debt service capability,
levels  and  availability  of  capital  resources  and  continuing liquidity are
dependent  on  future  weather  patterns,  oil  and  gas  commodity  prices  and
production  volume  levels,  future exploration and development drilling success
and


                                     - 24 -
<PAGE>
successful  acquisition transactions, no assurance can be given that the Company
will  remain  in  compliance with the requirements of its Notes and the Restated
Credit  Agreement.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
-------------------------------------------------------------------

COMMODITY  RISK
---------------

     The  Company's  operations  consist  primarily of exploring for, producing,
aggregating  and  selling  natural  gas  and  oil.  Contracts  to deliver gas at
pre-established prices mitigate the risk to the Company of falling prices but at
the  same time limit the Company's ability to benefit from the effects of rising
prices.  The Company occasionally uses derivative instruments to hedge commodity
price  risk.  The  Company  hedges  a  portion  of  its  projected  natural  gas
production  through a variety of financial and physical arrangements intended to
support  natural  gas  prices  at  targeted levels and to manage its exposure to
price  fluctuations.  The  Company may use futures contracts, swaps, options and
fixed  price  physical  contracts to hedge commodity prices.  Realized gains and
losses from the Company's price risk management activities are recognized in oil
and  gas  sales  when  the associated production occurs.  Unrecognized gains and
losses  are  included  as  a  component  of  other  comprehensive  income.
Ineffectiveness  is  recorded  in current earnings. The Company does not hold or
issue  derivative  instruments  for trading purposes.  The Company currently has
elected  to enter into derivative hedge transactions on its estimated production
covering  approximately 65% to 75% for the fiscal year ending June 30, 2005, 75%
to  90% for the fiscal year ending June 30, 2006, 35% to 40% for the fiscal year
ending  June  30,  2007 and 10% to 20% for the fiscal year ending June 30, 2008.
As  of  March  31,  2005,  the  Company's open gas derivative instruments are as
follows:


                                     - 25 -
<PAGE>
<TABLE>
<CAPTION>
                                                Total          Average
                                     Market    Volumes    Contract / Strike   Unrealized
Time period                          Index     (MMBtu)          Price           Losses
-----------------------------------------------------------------------------------------
<S>                                  <C>     <C>          <C>                 <C>

Derivatives

   Natural Gas Swaps

       April 2005 - June 2005        NYMEX       810,000  $             4.11  $ 2,783,027
       April 2005 - June 2005        NYMEX       600,000                7.25      193,446
       June 2005 - June 2005         NYMEX       300,000                7.55       61,114
       July 2005 - December 2005     NYMEX     1,324,800                7.55      652,595
       July 2005 - March 2006        NYMEX       900,000                6.25    1,742,124
       January 2006 - December 2006  NYMEX     2,620,000                7.16    1,263,897
       January 2007 - December 2007  NYMEX     2,628,000                6.60    1,123,221
                                             -----------                      -----------
                                               9,182,800                      $ 7,819,424
                                             ===========                      ===========

   Floors
       April 2005 - June 2005        NYMEX     1,200,000  $             6.00  $   382,176
       July 2005 - March 2006        NYMEX     2,160,000                6.00      962,313
                                             -----------                      -----------
                                               3,360,000                      $ 1,344,489
                                             ===========                      ===========

   Collars
       July 2005 - March 2006        NYMEX     3,420,000  $      5.50 - 8.70  $ 2,045,297
       January 2006 - December 2006  NYMEX     1,825,000         5.75 - 9.92      256,298
       January 2007 - December 2007  NYMEX     1,825,000         5.75 - 8.65      321,528
                                             -----------                      -----------
                                               7,070,000                      $ 2,623,123
                                             ===========                      ===========

Total Hedged Production                       19,612,800                      $11,787,036
                                             ===========                      ===========
</TABLE>


     Notwithstanding the above, the Company's future cash flows from gas and oil
production  are  exposed  to  significant volatility as commodity prices change.
Assuming  total  oil  and  gas  production,  pricing,  and the percentage of gas
production  hedged  under physical delivery contracts and derivative instruments
remain  at  March  2005  levels,  a  10%  change  in the average unhedged prices
realized  would  change the Company's gas and oil revenues by approximately $0.1
million  on  a  quarterly  basis.

INTEREST  RATE  RISK
--------------------

     Interest  rate  risk  is  attributable  to the Company's debt.  The Company
utilizes United States dollar denominated borrowings to fund working capital and
investment needs.  There is inherent rollover risk for borrowings as they mature
and  are  renewed  at  current  market  rates.  The  extent  of this risk is not
predictable  because  of  the  variability  of  future  interest  rates  and the
Company's future financing needs.  In August 2004, the Company entered into four
interest rate cap agreements with Foothill, in an effort to reduce the potential
impact  of  increases  in  interest  rates on floating-rate long-term debt.  The
agreements  range from two to three years covering $40,000,000 in long-term debt
and cap the one month London Interbank Offered Rate ("LIBOR") at 3.5%.  Assuming
the  variable  interest  debt  remained  at  the  March


                                     - 26 -

<PAGE>
31,  2005  level,  a  10%  change  in  rates would have a $0.3 million impact on
interest  expense  on  an  annual  basis.

FOREIGN  CURRENCY  EXCHANGE  RISK
---------------------------------

     Some  of the Company's transactions are denominated in New Zealand dollars.
For  foreign  operations  with  the  local  currency as the functional currency,
assets  and  liabilities  are  translated  at the period end exchange rates, and
statements  of  income  are  translated at the average exchange rates during the
period.  Gains  and  losses  resulting  from  foreign  currency  translation are
included  as  a  component  of  other  comprehensive  income.


ITEM 4.  CONTROLS AND PROCEDURES
--------------------------------

     Under  the  supervision  and  with  the  participation  of  our management,
including  our  principal executive officer and principal financial officer, the
Company  has  evaluated  the  effectiveness  of  the design and operation of our
disclosure  controls  and procedures as of the end of the period covered by this
quarterly report and, based on their evaluation, our principal executive officer
and  principal  financial  officer  have  concluded  that  these  controls  and
procedures  are  effective.  There  were  no significant changes in our internal
controls  or  in  other  factors  that could significantly affect these controls
subsequent  to the date of their evaluation.  Disclosure controls and procedures
are  our  controls  and  other  procedures  that  are  designed  to  ensure that
information required to be disclosed by us in the reports that we file or submit
under  the  Securities Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported, within the time periods specified in the Securities and
Exchange  Commission's  rules  and  forms.  Disclosure  controls  and procedures
include,  without  limitation,  controls  and procedures designed to ensure that
information required to be disclosed by us in the reports that we file under the
Securities  Exchange  Act  is  accumulated  and  communicated to our management,
including  our  principal  executive officer and principal financial officer, as
appropriate  to  allow  timely  decisions  regarding  required  disclosure.


                                     - 27 -
<PAGE>
PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

     The Company is involved in legal actions and claims arising in the ordinary
course  of  business.  While  the  outcome of these lawsuits against the Company
cannot  be predicted with certainty, management does not expect these matters to
have  a  material  adverse  effect  on  the  Company's  operations  or financial
position.

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

     On  April  4,  2005  the  Company  filed  registration  statement  with the
Securities  and  Exchange  Commission  ("SEC")  relating  to  an  initial public
offering  of Trust units proposed to be issued by a new royalty trust which will
be known as the Appalachian Gas Royalty Trust ("Trust").  The Trust units of the
Trust will be listed on the New York Stock Exchange under the symbol "ANG".  The
royalty interest created by the Company will entitle the Trust to receive 90% of
the  net proceeds from the sale of future production of natural gas attributable
to  the  Company's  interest  in 312 existing producing wells and 50% of the net
proceeds  from  the sale of future production of natural gas attributable to the
Company's  interest  in  180  additional  wells that the Company is obligated to
drill  by  March 31, 2009.  The term of the Trust will extend for a period of 20
years  commencing  as  of  January  1, 2005.  Upon termination of the Trust, the
royalty  interest  held  by  the  Trust  will  revert  to  the  Company.

     The Company will receive the net proceeds from the sale of the Trust units,
currently  estimated  to  be  approximately  $142  million  (after  deduction of
underwriting  commissions  and  expenses  of  the offering), in exchange for the
contributions  of  the  royalty  interest  to  the  Trust. The completion of the
offering  is  subject  to  a  number  of  conditions, including clearance of the
registration statement by the SEC, and will depend upon market conditions at the
time  of the offering of the units as well as sufficient investor demand for the
Trust  units.  As a result, there can be no assurance that this transaction will
be  completed or, if completed, that the Company will realize the full amount of
the  net  proceeds  currently  estimated.

     A  registration  statement  relating to the Trust units has been filed with
the  SEC  but has not yet become effective.  The Trust units may not be sold nor
may  offers  to  buy  be  accepted  prior to the time the registration statement
become  effective.  This  Report  on  Form 10-Q shall not constitute an offer to
sell  the Trust units or the solicitation of an offer to buy the Trust units nor
shall  there  be  any  sale of the Trust units in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification of
the  Trust  units  under  the  securities  laws  of  any  such  state.


                                     - 28 -
<PAGE>
ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     a)  Exhibits:

         31.1    Certification of Chief Executive Officer Pursuant to Section
                 302 of the Sarbanes-Oxley Act of 2002

         31.2    Certification of Chief Financial Officer Pursuant to Section
                 302 of the Sarbanes-Oxley Act of 2002

     b)  Reports on Form 8-K:

         None


                                     - 29 -
<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 under
signed  thereunto, duly authorized, in the City of Denver, State of Colorado, on
the  11th  day  of  May  2005.



                                       ENERGY CORPORATION OF AMERICA




                                       By:     /s/John Mork
                                          ----------------------------------
                                       John Mork
                                       Chief Executive Officer and Director




                                       By:     /s/Michael S. Fletcher
                                          ----------------------------------
                                       Michael S. Fletcher
                                       Chief Financial Officer


                                     - 30 -