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, 2001.

                                       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
                                       ---       ---


    The number of shares of the Registrant's common stock, par value $1.00 per
                              share, outstanding at
                       March 31, 2001 was 637,110 shares.

                                       -1-
<PAGE>
                          ENERGY CORPORATION OF AMERICA

                                TABLE OF CONTENTS


                                                                          PAGES
PART  I  FINANCIAL  INFORMATION
<TABLE>
<CAPTION>
<S>                                                                       <C>
Item 1. Financial Statements

  Condensed Consolidated Balance Sheets
   March 31, 2001 (unaudited) and June 30, 2000. . . . . . . . . . . . .   3

  Unaudited Condensed Consolidated Statements of Operations
   For the three and nine months ended March 31, 2001 and 2000 . . . . .   5

  Unaudited Condensed Consolidated Statements of Cash Flows
   For the nine months ended March 31, 2001 and 2000 . . . . . . . . . .   6

  Unaudited Condensed Consolidated Statements of Comprehensive Income
   For the three and nine months ended March 31, 2001 and 2000 . . . . .   7

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

Item 2. Management's Discussion and Analysis of Results of Operation and
        Financial Condition. . . . . . . . . . . . . . . . . . . . . . .  12

Item 3. Quantitative and Qualitative Disclosures About Market Risk . . .  17


PART II  OTHER INFORMATION

Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . .  19

Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . . . .  19

Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . . . .  19

Item 4. Submission of Matters to a Vote of Security Holders. . . . . . .  19

Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . . . .  19

Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . .  19

Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  20
</TABLE>
                                       -2-
<PAGE>
PART  I  FINANCIAL  INFORMATION
ITEM  1.  FINANCIAL  STATEMENTS

<TABLE>
<CAPTION>

ENERGY CORPORATION OF AMERICA
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
----------------------------------------------------------------------------
<S>                                                      <C>        <C>
                                                         MARCH 31   JUNE 30
                                                           2001      2000
                                                       (UNAUDITED)    *
 ASSETS

 CURRENT ASSETS
    Cash and cash equivalents . . . . . . . . . . . . .  $ 101,635  $  3,310
    Accounts receivable, net of allowance for
       doubtful accounts of  $1,062 and $463        . .     22,747    14,467
    Net utility assets held for sale. . . . . . . . . .               56,795
    Gas in storage, at average cost . . . . . . . . . .        550       765
    Prepaid and other current assets. . . . . . . . . .      5,408     4,423
                                                         ---------  --------
       Total current assets . . . . . . . . . . . . . .    130,340    79,760
                                                         ---------  --------

 Property, plant and equipment, net of accumulated
    depreciation and depletion of $99,896 and $92,106 .    226,274   160,162
                                                         ---------  --------

 OTHER ASSETS
    Deferred financing costs, net of accumulated
       amortization of $2,803 and $2,446. . . . . . . .      4,536     5,210
    Notes receivable. . . . . . . . . . . . . . . . . .      1,877     1,519
    Other . . . . . . . . . . . . . . . . . . . . . . .     11,573    19,040
                                                         ---------  --------
       Total other assets . . . . . . . . . . . . . . .     17,986    25,769
                                                         ---------  --------

 TOTAL. . . . . . . . . . . . . . . . . . . . . . . . .  $ 374,600  $265,691
                                                         =========  ========
<FN>

 *   Condensed  from  audited  consolidated  financial  statements.

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

                                       -3-
<PAGE>

<TABLE>
<CAPTION>

ENERGY CORPORATION OF AMERICA
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
----------------------------------------------------------------------------------

                                                               MARCH 31    JUNE 30
                                                                 2001       2000
                                                              (UNAUDITED)     *
<S>                                                           <C>         <C>
 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 CURRENT LIABILITIES
    Accounts payable . . . . . . . . . . . . . . . . . . . .  $  22,347   $ 14,877
    Short-term borrowings. . . . . . . . . . . . . . . . . .                 2,000
    Current portion of long-term debt. . . . . . . . . . . .        150      1,086
    Funds held for future distribution . . . . . . . . . . .      8,320      6,280
    Income taxes payable . . . . . . . . . . . . . . . . . .     20,047
    Other current liabilities. . . . . . . . . . . . . . . .     14,544      6,539
                                                              ----------  ---------
       Total current liabilities . . . . . . . . . . . . . .     65,408     30,782

 LONG-TERM OBLIGATIONS
    Long-term debt . . . . . . . . . . . . . . . . . . . . .    198,941    212,575
    Gas delivery obligation and deferred revenue . . . . . .     13,933     15,443
    Deferred income tax liability. . . . . . . . . . . . . .     19,500
    Other long-term obligation . . . . . . . . . . . . . . .     10,183     11,014
                                                              ----------  ---------
       Total liabilities . . . . . . . . . . . . . . . . . .    307,965    269,814
                                                              ----------  ---------


 STOCKHOLDERS' EQUITY (DEFICIT)
    Common stock, par value $1.00; 2,000,000 shares
       authorized; 730,000 and 718,000 shares issued . . . .        730        718
    Class A stock, no par value; 100,000 shares authorized;
       35,000 and 26,000 shares issued . . . . . . . . . . .      3,935      2,940
    Additional paid in capital . . . . . . . . . . . . . . .      5,503      4,615
    Retained earnings (deficit). . . . . . . . . . . . . . .     69,662     (4,833)
    Treasury stock and notes receivable arising from the
       issuance of common stock. . . . . . . . . . . . . . .     (9,165)    (7,429)
    Accumulated comprehensive loss . . . . . . . . . . . . .     (4,030)      (134)
                                                              ----------  ---------
       Total stockholders' equity (deficit). . . . . . . . .     66,635     (4,123)
                                                              ----------  ---------

 TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 374,600   $265,691
                                                              ==========  =========
<FN>

 *   Condensed  from  audited  consolidated  financial  statements.

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

                                       -4-
<PAGE>
<TABLE>
<CAPTION>

ENERGY CORPORATION OF AMERICA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED - AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
------------------------------------------------------------------------------------------------------------------------

                                                                             FOR THE THREE                 FOR THE NINE
                                                                             MONTHS ENDED                  MONTHS ENDED
                                                                               MARCH 31                     MARCH 31
                                                                        2001             2000         2001       2000
<S>                                                                <C>              <C>             <C>        <C>
 REVENUES:
    Gas marketing and pipeline sales. . . . . . . . . . . . . . .  $       28,688   $      15,894   $ 67,876   $ 54,734
    Oil and gas sales . . . . . . . . . . . . . . . . . . . . . .          14,521           5,932     30,728     17,223
    Well operations and service revenues. . . . . . . . . . . . .           1,366           1,386      4,030      4,519
    Other revenue . . . . . . . . . . . . . . . . . . . . . . . .             534                      1,455
                                                                   ---------------  --------------  ---------  ---------
                                                                           45,109          23,212    104,089     76,476
                                                                   ---------------  --------------  ---------  ---------
 COST AND EXPENSES:
    Gas marketing and pipeline cost . . . . . . . . . . . . . . .          27,640          15,504     64,711     53,463
    Field operating expenses. . . . . . . . . . . . . . . . . . .           2,204           2,020      6,171      5,986
    General and administrative. . . . . . . . . . . . . . . . . .           3,285           3,096      8,944      8,428
    Taxes, other than income. . . . . . . . . . . . . . . . . . .           1,156             324      2,583      1,000
    Depletion and depreciation, oil and gas related . . . . . . .           2,584           2,174      6,621      6,587
    Depreciation of pipelines and equipment . . . . . . . . . . .             678             706      2,024      2,171
    Exploration and impairment. . . . . . . . . . . . . . . . . .           9,948             532     12,586      3,469
                                                                   ---------------  --------------  ---------  ---------
                                                                           47,495          24,356    103,640     81,104
                                                                   ---------------  --------------  ---------  ---------
    Income (loss) from operations . . . . . . . . . . . . . . . .          (2,386)         (1,144)       449     (4,628)
                                                                   ---------------  --------------  ---------  ---------
 OTHER (INCOME) EXPENSE
    Interest expense. . . . . . . . . . . . . . . . . . . . . . .           4,869           5,441     15,193     16,956
    Interest income and other . . . . . . . . . . . . . . . . . .          (1,817)            (95)    (6,220)      (703)
                                                                   ---------------  --------------  ---------  ---------
 Loss from continuing operations before income taxes. . . . . . .          (5,438)         (6,490)    (8,524)   (20,881)
 Income tax benefit . . . . . . . . . . . . . . . . . . . . . . .          (1,848)         (2,143)    (2,836)    (6,392)
                                                                   ---------------  --------------  ---------  ---------
 Loss from continuing operations. . . . . . . . . . . . . . . . .          (3,590)         (4,347)    (5,688)   (14,489)
                                                                   ---------------  --------------  ---------  ---------
 Disposal of utility operations:
    Income (loss) from utility operations, net of income tax. . .                           6,901     (1,949)    11,348
    Gain (loss) on sale of utility operations, net of income tax.              (9)                    85,381
                                                                   ---------------  --------------  ---------  ---------
    Net income (loss) from disposal of utility operations . . . .              (9)          6,901     83,432     11,348
 Extraordinary gain on extingishment of debt, net of tax. . . . .             (23)              -        356          -
                                                                   ---------------  --------------  ---------  ---------
 NET INCOME (LOSS). . . . . . . . . . . . . . . . . . . . . . . .  $       (3,622)  $       2,554   $ 78,100   $ (3,141)
                                                                   ===============  ==============  =========  =========

 Basic and diluted earnings per common share:
    Loss from continuing operations . . . . . . . . . . . . . . .  $        (5.41)  $       (6.54)  $  (8.55)  $ (21.75)
    Income (loss) from disposed utility operations. . . . . . . .           (0.01)          10.39     125.35      17.04
    Extraordinary gain (loss) on extinguishment of debt . . . . .           (0.03)              -       0.53          -
                                                                   ---------------  --------------  ---------  ---------
    Net income (loss) . . . . . . . . . . . . . . . . . . . . . .  $        (5.45)  $        3.85   $ 117.33   $  (4.71)
                                                                   ===============  ==============  =========  =========
<FN>

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

                                       -5-
<PAGE>
<TABLE>
<CAPTION>

ENERGY CORPORATION OF AMERICA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED - AMOUNTS IN THOUSANDS)
---------------------------------------------------------------------------------------------------------------------

                                                                                             FOR THE NINE MONTHS
                                                                                                ENDED MARCH 31
                                                                                             2001             2000
<S>                                                                                  <C>                    <C>
 CASH FLOWS FROM OPERATING ACTIVITIES
    Net loss from continuing operations . . . . . . . . . . . . . . . . . . . . . .  $             (5,688)  $(14,489)
    Adjustments to reconcile net loss to net cash used by operating activities:
       Depletion, depreciation and amortization . . . . . . . . . . . . . . . . . .                 9,319      9,357
       Impairment expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                11,866
       Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                (2,715)    (3,993)
                                                                                     ---------------------  ---------
                                                                                                   12,782     (9,125)
    Changes in assets and liabilities:
       Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . .                (8,877)       281
       Gas in storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   215         75
       Prepaid and other assets . . . . . . . . . . . . . . . . . . . . . . . . . .                (1,251)      (192)
       Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 9,728      1,248
       Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . .               (37,494)    (2,562)
       Funds held for future distributions. . . . . . . . . . . . . . . . . . . . .                 2,040       (437)
       Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                (1,350)        30
                                                                                     ---------------------  ---------
       Net cash used by operating activities from continuing operations . . . . . .               (24,207)   (10,682)
       Net cash provided (used) by operating activities from disposed operations. .                (5,687)     7,105
                                                                                     ---------------------  ---------
       Net cash used by operating activities. . . . . . . . . . . . . . . . . . . .               (29,894)    (3,577)
                                                                                     ---------------------  ---------
 CASH FLOWS FROM INVESTING ACTIVITIES
    Expenditures for property, plant and equipment. . . . . . . . . . . . . . . . .               (80,290)   (13,470)
    Proceeds from sale of assets. . . . . . . . . . . . . . . . . . . . . . . . . .                 1,461        376
    Notes receivable and other. . . . . . . . . . . . . . . . . . . . . . . . . . .                (4,194)       (27)
                                                                                     ---------------------  ---------
       Net cash used by investing activities from continuing operations . . . . . .               (83,023)   (13,121)
       Net cash provided (used) by investing activities from disposed operations. .               224,770    (20,901)
                                                                                     ---------------------  ---------
       Net cash provided (used) by investing activities . . . . . . . . . . . . . .               141,747    (34,022)
                                                                                     ---------------------  ---------
 CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from long-term debt. . . . . . . . . . . . . . . . . . . . . . . . . .                 7,825      7,250
    Principal payment on long-term debt . . . . . . . . . . . . . . . . . . . . . .               (21,813)   (13,947)
    Principal payment on short-term borrowing . . . . . . . . . . . . . . . . . . .                (2,000)     2,000
    Purchase of treasury stock and other financing activities . . . . . . . . . . .                (1,790)      (260)
    Dividends paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                (3,340)
    Prepayment of future gas delivery . . . . . . . . . . . . . . . . . . . . . . .                           10,000
    Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 1,051         28
                                                                                     ---------------------  ---------
       Net cash provided (used) by financing activities from continuing operations.               (20,067)     5,071
       Net cash provided by financing activities from disposed operations . . . . .                 6,539     22,986
                                                                                     ---------------------  ---------
       Net cash provided (used) by financing activities . . . . . . . . . . . . . .               (13,528)    28,057
                                                                                     ---------------------  ---------
       Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . .                98,325     (9,542)
       Cash and cash equivalents, beginning of period . . . . . . . . . . . . . . .                 3,310     12,163
                                                                                     ---------------------  ---------
 Cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . . . . .  $            101,635   $  2,621
                                                                                     =====================  =========
<FN>

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

                                       -6-
<PAGE>
<TABLE>
<CAPTION>

ENERGY CORPORATION OF AMERICA
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(AMOUNTS IN THOUSANDS)
------------------------------------------------------------------------------------------------------

                                                              THREE MONTHS ENDED     NINE MONTHS ENDED
                                                                   MARCH 31              MARCH 31
                                                               2001        2000       2001      2000
<S>                                                         <C>         <C>         <C>       <C>
 Net income (loss) . . . . . . . . . . . . . . . . . . . .  $  (3,622)  $   2,554   $78,100   $(3,141)
                                                            ----------  ----------  --------  --------
 Other comprehensive income (loss), net of tax:
    Foreign currency translation adjustment:
       Current period change . . . . . . . . . . . . . . .     (2,583)       (291)   (1,004)      133
    Marketable securities:
       Unrealized gain . . . . . . . . . . . . . . . . . .         45                   136
    Oil and Gas derivatives:
       Net cumulative effect adjustment. . . . . . . . . .                           (2,153)
       Current period transactions . . . . . . . . . . . .      3,950                (5,612)
       Reclassification to earnings. . . . . . . . . . . .      2,988                 4,737
                                                            ----------  ----------  --------  --------
 Other comprehensive income (loss), net of tax . . . . . .      4,400        (291)   (3,896)      133
                                                            ----------  ----------  --------  --------
 Comprehensive income (loss) . . . . . . . . . . . . . . .  $     778   $   2,263   $74,204   $(3,008)
                                                            ==========  ==========  ========  ========

<FN>

The  accompanying  notes  are  an  integral part of these condensed consolidated financial statements.
</TABLE>
                                       -7-
<PAGE>
                          ENERGY CORPORATION OF AMERICA
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 2001


1.     Nature  of  Organization

Energy Corporation of America (the "Company") was formed in June 1993 through an
exchange  of  shares  with  the  common  stockholders of Eastern American Energy
Corporation ("Eastern American").  The Company is an independent energy company.
All  references  to  the "Company" include Energy Corporation of America and its
consolidated  subsidiaries.

Oil  and  Gas  Exploration, Development, Production and Marketing - The Company,
-----------------------------------------------------------------
through its wholly owned subsidiary Eastern American, is engaged in exploration,
development  and  production,  transportation  and  marketing  of  natural  gas
primarily  within  the  Appalachian Basin states of West Virginia, Pennsylvania,
Kentucky  and  Ohio.

The  Company,  through  its wholly owned subsidiaries Westech Energy Corporation
and Westech Energy New Zealand, is engaged in the exploration for and production
of  oil and natural gas primarily in the Rocky Mountains, Texas and New Zealand.


2.     Accounting  Policies

Reference  is  hereby  made  to the Company's Annual Report on Form 10-K for the
fiscal  year  ended  June 30, 2000, which contains a summary of major accounting
policies  followed  in  preparation  of  its  consolidated financial statements.
These  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,  2001  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.


3.     Disposal  of  Utility  Operations

On  August  18,  2000,  the  Company  sold  all of the stock of its wholly owned
natural  gas  distribution  company,  Mountaineer  Gas  Company and Subsidiaries
("Mountaineer")  to  a  subsidiary  of  Allegheny Energy, Inc. ("Allegheny") for
approximately $325.7 million, which included the assumption of $100.1 million of
debt  and  payment  of approximately $225.6 million to the Company.  The Company
realized an after-tax gain of $83.4 million on this transaction.  The use of the
net  proceeds  from the sale is subject to certain restrictions of the Company's
$200  million  Senior  Subordinated  Notes  (the  "Notes").

                                       -8-
<PAGE>

The  Company  has  also  entered  into  a  gas  sale and purchase agreement with
Allegheny whereby the Company will begin the delivery of natural gas on or after
July 1, 2001.  The Company has received a $10 million prepayment pursuant to the
agreement, which is recorded as long term deferred revenue on the balance sheet.
Potentially, the Company has the ability to receive additional prepayments up to
$20  million,  pending  the  ability  to present a letter of credit equal to the
prepayment.

4.     Acquisition

On  December  29,  2000,  the  Company  purchased  Penn  Virginia  Oil  and  Gas
Corporation's  interests  in  various  oil  and  gas  leases,  wells, pipelines,
contracts,  partnership  interests,  right-of-ways,  personal  property  and tax
credits.  After  certain adjustments, the Company paid $55.0 million in cash and
assumed  a  $0.8  million  note.


5.     Earnings  per  Share

A  reconciliation  of  the  components  of basic and diluted net loss per common
share  is as follows for the loss from continuing operations available to common
shareholders:

<TABLE>
<CAPTION>

<S>                                <C>            <C>      <C>
                                   Loss           Shares   Per Share
                                   -------------  -------  -----------
Three months ended March 31, 2001
---------------------------------
   Basic and Diluted. . . . . . .  $ (3,590,000)  664,042  $    (5.41)
Nine months ended March 31, 2001
---------------------------------
   Basic and Diluted. . . . . . .  $ (5,688,000)  665,567  $    (8.55)
Three months ended March 31, 2000
---------------------------------
   Basic and Diluted. . . . . . .  $ (4,347,000)  664,401  $    (6.54)
Nine months ended March 31, 2000
---------------------------------
   Basic and Diluted. . . . . . .  $(14,489,000)  666,003  $   (21.75)
</TABLE>

The  effect  of outstanding stock options was not included in the computation of
diluted  earnings  per  share  because  to  do  so would have been antidilutive.


6.     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  marketing  and  pipeline segment arise from the
marketing  of  both Company and third party produced natural gas volumes and the
related  transportation.  The  Company utilizes earnings before interest, taxes,
depreciation,  depletion,  amortization  and  impairment  and  exploratory costs
("EBITDAX")  to  evaluate  the  operations  of  each  segment.

                                       -9-
<PAGE>
Summarized  financial  information  for  the  Company's  reportable segments for
continuing  operations  is  as  follows  (in  thousands):

<TABLE>
<CAPTION>

                                                        Exploration    Marketing
                                                            and           and
                                                        Production     Pipeline      Other    Consolidated
                                                       -------------  -----------  ---------  -------------
<S>                                                    <C>            <C>          <C>        <C>
 For the nine months ended March 31, 2001
-----------------------------------------------------
   Sales to unaffiliated customers. . . . . . . . . .  $     33,517   $   67,876                  $101,393
   Intersegment revenues. . . . . . . . . . . . . . .         1,241                 $ 1,455          2,696
   Depreciation, depletion, amortization. . . . . . .         7,598          730        317          8,645
   Impairment and exploratory costs . . . . . . . . .         5,335                   7,251         12,586
   Operating profit (loss). . . . . . . . . . . . . .         8,993        1,083     (9,627)           449
   Interest expense . . . . . . . . . . . . . . . . .            57            2     15,134         15,193
   EBITDAX. . . . . . . . . . . . . . . . . . . . . .        22,378        1,330      4,192         27,900
   Total assets . . . . . . . . . . . . . . . . . . .       150,350       65,439    158,811        374,600
   Capital expenditures . . . . . . . . . . . . . . .        77,200          801      2,289         80,290
-----------------------------------------------------  -------------  -----------  ---------  -------------
 For the nine months ended March 31, 2000
-----------------------------------------------------
   Sales to unaffiliated customers. . . . . . . . . .  $     21,742   $   54,734                  $ 76,476
   Intersegment revenues. . . . . . . . . . . . . . .                                                    -
   Depreciation, depletion, amortization. . . . . . .         7,716          773   $    269          8,758
   Impairment and exploratory costs . . . . . . . . .         3,469                                  3,469
   Operating profit (loss). . . . . . . . . . . . . .          (545)        (637)    (3,446)        (4,628)
   Interest expense . . . . . . . . . . . . . . . . .            48            2     16,906         16,956
   EBITDAX. . . . . . . . . . . . . . . . . . . . . .        11,188         (155)    (2,731)         8,302
   Total assets, net of utility assets held for sale.       130,753       59,449     26,066        216,268
   Capital expenditures . . . . . . . . . . . . . . .        13,287          131         52         13,470
</TABLE>

Operating  profit  (loss)  represents  revenues  less  costs  which are directly
associated  with  such  operations.  Revenues  are  priced  and  accounted  for
consistently  for  both unaffiliated and intersegment sales.  The 'Other' column
includes  corporate-related  items,  including  corporate  debt,  non-reportable
segments and elimination items.  Included in the total assets of the exploration
and  production segment are net long-lived assets located in New Zealand of $5.3
million  and  $4.5  million  as  of  March  31,  2001  and  2000.


7.     Derivative  Instruments  and  Hedging  Activities

As  of  July  1,  2000,  the  Company  adopted Statement of Financial Accounting
Standards  ('SFAS")  No. 133, "Accounting for Derivative Instruments and Hedging
Activities"  as  amended  by SFAS No. 137 and No. 138.  SFAS No. 133 establishes
accounting and reporting standards for derivative instruments, including certain
derivative  instruments embedded in other contracts, and hedging activities.  It
requires  the recognition of all derivative instruments as assets or liabilities
in  the  Company's  balance  sheet  and measurement of those instruments at fair
value.  The  accounting  treatment  of  changes  in fair value is dependent upon
whether  or  not a derivative instrument is designated as a hedge and if so, the
type  of hedge.  For derivatives designated as cash flow hedges, changes in fair
value  are  recognized  in  other  comprehensive income until the hedged item is
recognized  in  earnings.

                                       -10-
<PAGE>

The  Company periodically hedges a portion of its oil and gas production through
futures  and swap 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 price swap agreements in place are designated as cash flow hedges.  At
July  1,  2000,  adoption  of SFAS No. 133, resulted in recording a $3.4 million
($2.2  million  net  of  tax)  decline  in  fair  value  to  accumulated  other
comprehensive  income,  consisting  of  $3.8  million  to  short term derivative
liabilities,  $0.4  million to long term derivative liabilities and $0.8 million
to  short  term derivative assets.  At March 31, 2001, the decline in fair value
to  accumulated other comprehensive income was $4.8 million ($3.0 million net of
tax),  consisting  of $5.1 million in other current liabilities and $0.3 million
in other current assets.  The estimated net amount of the existing losses within
other  comprehensive  income  that are expected to be reclassified into earnings
within  the  next  12  months  is  approximately  $3.1 million.  The Company has
partially  hedged  its  exposure to the variability in future cash flows through
April  2002.


8.     Debt

A  summary  of debt activity from June 30, 2000 to March 31, 2001, is as follows
(in  thousands):

<TABLE>
<CAPTION>

<S>                           <C>                <C>          <C>
                              Current Portion    Long Term    Total Long
                              Long Term Debt     Debt         Term Debt
                              -----------------  -----------  ------------
 Balance at June 30, 2000. . $          1,086   $  212,575   $    213,661
  Draw on revolving debt. .                          7,000          7,000
  Revolving debt payment. .               (750)     (19,000)      (19,750)
  Notes retired . . . . . .                          (2,328)       (2,328)
  Acquisition-related debt.                 37          788           825
  Miscellaneous debt payments             (223)         (94)         (317)
                              -----------------  -----------  ------------
 Balance at March 31, 2001 .  $            150   $  198,941   $   199,091
                              =================  ===========  ============
</TABLE>

The  Company's  scheduled  maturities  of long term debt for each of the periods
indicated  is  as  follows  (in  thousands):

<TABLE>
<CAPTION>

<S>                          <C>
For the Fiscal Year Ending:
 June 30, 2001 . . . . . . .  $    150
 June 30, 2002 . . . . . . .       153
 June 30, 2003 . . . . . . .       157
 June 30, 2004 . . . . . . .       160
 June 30, 2005 . . . . . . .       164
 Thereafter. . . . . . . . .   198,307
                              --------
    Total. . . . . . . . . .  $199,091
                              ========
</TABLE>

The  Company's debt agreement related to the Notes contains certain restrictions
and  conditions  among  which  are  limitations  on  indebtedness,  dividends,
investments,  and  the  use  of  proceeds  from  the  sale  of  assets.


9.     Contingencies

The  Company  is  involved  in  various  legal actions and claims arising in the
ordinary course of business.  Management does not expect these matters to have a
material  adverse  effect  on  the  Company's  financial  position.

                                       -11-
<PAGE>
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.

DISPOSAL  OF  UTILITY  OPERATIONS
---------------------------------

     On  August  18, 2000, the Company sold all of the stock of its wholly owned
natural  gas  distribution  company,  Mountaineer to Allegheny for approximately
$325.7  million,  which  included  the  assumption of $100.1 million of debt and
payment  of approximately $225.6 million to the Company. The Company realized an
after-tax  gain  of  $83.4  million  on  this  transaction.

     The financial statements exclude the operating results of this segment from
continuing  operations  and  for  accounting  purposes, classify such results as
discontinued operations (see Note 3). The following discussion, unless otherwise
noted,  relates  only  to  the  Company's  continuing  operations.

ACQUISITIONS
------------

     During  the  three  month period ended March 31, 2001, the Company acquired
interests  in  28  wells  in  Pennsylvania  for  $1.7  million.

COMPARISON  OF  RESULTS  OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2001
--------------------------------------------------------------------------------
AND  2000
---------

     The  Company recorded a net loss from continuing operations of $3.6 million
for the three months ended March 31, 2001 compared to a net loss from continuing
operations  of $4.3 million for the same period in 2000.  The increase in income
of $0.7 million is attributed to the net of a $21.9 million increase in revenue,
a  $13.7  million  increase  in  operating  expenses, a $9.4 million increase in
exploration and impairment costs, a $0.5 million decrease in interest expense, a
$1.7  million increase in other non-operating income and a $0.3 million decrease
in  the  provision  for  income  taxes.

                                       -12-
<PAGE>

     REVENUES.  Total  revenues  increased  $21.9  million  or 94.3% between the
     --------
periods.  The  net  increase  was  due to an 80.5% increase in gas marketing and
pipeline  sales,  a  144.8% increase in oil and gas sales and a 100% increase in
other  operating  revenue.

     Revenues from gas marketing and pipeline sales increased $12.8 million from
$15.9 million during the period ended March 31, 2000 to $28.7 million during the
period  ended  March  31,  2001.  Gas  marketing revenue increased $10.4 million
primarily  due  to  a  184.7% increase in the average sales price per Mmbtu from
$2.73  for  the  three months ended March 31, 2000 to $7.77 for the three months
ended March 31, 2001. This increase was mitigated by a 34.9% decline in marketed
gas  volumes  from  4.8  million Mmbtu to 3.1 million Mmbtu for the same period.
Pipeline  revenue  increased  $2.4 million primarily due to a 127.1% increase in
the  average  sales  price per Mmbtu from $2.81 for the three months ended March
31,  2000  to $6.38 for the three months ended March 31, 2001. This increase was
diminished  by  a  12.3%  decline  in gas volumes from 0.9 million Mmbtu to 0.76
million  Mmbtu  for  the  same  period.

     Revenues  from  oil  and gas sales increased $8.6 million from $5.9 million
for  the period ended March 31, 2000 to $14.5 million for the period ended March
31,  2001  due to an increase in both prices and net production. The average Mcf
price  received for the quarter ended March 2001 was $7.74 compared to $2.58 for
the  quarter  ended  March  2000  causing  a $9.6 million increase in sales. The
Company's  net  Mcf  production for the quarter ended March 2001 compared to the
quarter  ended  March  2000  increased 0.6 Mmcf, 29.1%, which is attributable to
drilling and acquisitions, causing a $4.1 million increase in sales. The average
Bbl  price  received  for  the  quarter  ended March 2001 was $27.01 compared to
$23.63  for  the  quarter  ended March 2000. This price increase was offset by a
3,183  Bbl,  10.1%,  drop  in  production  to  26,342  Bbl  for the quarter. The
increases  to  revenue were offset by recognized losses on hedging transactions,
which  totaled  $5.3  million  for the quarter ended March 2001, with no hedging
losses  for  the  quarter  ended  March  2000. The average price per Mcfe, after
hedging, was $5.57 and $2.86 for the quarters ended March 31, 2001 and March 31,
2000.

     Revenues  from other operations increased from zero during the period ended
March  31,  2000  to  $0.5  million  during the period ended March 31, 2001. The
increase  in  revenue  is  due  to  a  management contract with Allegheny, which
terminated  March  31,  2001,  whereby  the  Company  provided  Mountaineer with
management  services.

COSTS  AND  EXPENSES. The Company's operating costs and expenses increased $13.7
-------------------  million  or 57.6% between the periods. The net increase was
primarily  due  to  a  78.3%  increase in gas marketing and pipeline costs and a
256.8%  increase in taxes other than income. The remaining costs were relatively
constant  between  the  periods  with  field operating expenses increasing 9.1%,
general  and administrative expenses increasing 6.1% and depreciation, depletion
and  amortization  costs  increasing  13.3%.

     Gas  marketing  and  pipeline  costs increased $12.1 million. Gas marketing
cost  increased  $9.0  million primarily due to a 162.6% increase in the average
price  paid  for  gas  purchased from $2.81 per Mmbtu for the three months ended
March  31,  2000  to  $7.37 per Mmbtu for the three months ended March 31, 2001.
This  increase  was  offset by a 35.6% decline in purchased gas volumes from 4.8
million  Mmbtu to 3.0 million Mmbtu for the same period. Pipeline cost increased
$3.1  million  primarily  due to a 201.7% increase in the average price paid for
gas  purchased from $2.12 per Mmbtu for the three months ended March 31, 2000 to
$6.40  per  Mmbtu  for  the three months ended March 31, 2001. This increase was
diminished  by  an 8.5% decline in purchased gas volumes from 0.85 Mmbtu to 0.78
million  Mmbtu  for  the  same  period.

                                       -13-
<PAGE>

     Taxes  other  than  income increased $0.8 million as a result of higher oil
and  gas  prices  and  volumes. Production taxes are based on the wellhead price
received  and  are  not  affected  by  hedging  activities.

     EXPLORATION  AND  IMPAIRMENT.  Exploration  and  impairment costs increased
     ----------------------------
$9.4  million when comparing the periods ended March 31, 2001 to March 31, 2000.
The  primary  costs  related  to  this  period  are the impairment of a computer
conversion  project, $5.7 million; impairment of the investment in a fiber optic
company due to bankruptcy, $1.6 million; impairment of drilling costs related to
dry  holes,  $1.2  million.  The balance of the impairment for the period is for
other  exploratory  costs,  which  includes  delay  rentals,  lease expirations,
geological  and  geophysical  costs  and  seismic.

     INTEREST  EXPENSE.  Interest  expense decreased $0.5 million or 10.5%, when
     -----------------
comparing the periods ended March 31, 2001 to March 31, 2000.  This is primarily
due  to  having  8.7%  less  debt  at  March  31,  2001.

OTHER  NON-OPERATING  INCOME.  Other non-operating income increased $1.7 million
----------------------------
when  comparing  the  periods  ended  March 31, 2001 to March 31, 2000.  This is
primarily  due  to  interest  income  earned  on  cash  and  cash  equivalents.

INCOME  TAX.  The  provision  for income taxes increased $0.3 million due to the
-----------
$1.1  million  increase  to  pre-tax  earnings  from  continuing  operation.


COMPARISON OF RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED MARCH 31, 2001 AND
--------------------------------------------------------------------------------
2000
----

     The  Company recorded a net loss from continuing operations of $5.7 million
for  the nine months ended March 31, 2001 compared to a net loss from continuing
operations  of $14.5 million for the same period in 2000. The increase in income
of $8.8 million is attributed to the net of a $27.6 million increase in revenue,
a  $13.4  million  increase  in  operating  expenses, a $9.1 million increase in
exploration and impairment costs, a $1.8 million decrease in interest expense, a
$5.5  million increase in other non-operating income and a $3.6 million decrease
in  income  tax  benefits.

REVENUES.  Total  revenues increased $27.6 million or 36.1% between the periods.
--------
The  net  increase  was  primarily  due to a 24.0% increase in gas marketing and
pipeline  sales and a 78.4% increase in oil and gas sales and a 100% increase in
other  operating  revenue.

     Revenues from gas marketing and pipeline sales increased $13.2 million from
$54.7 million during the period ended March 31, 2000 to $67.9 million during the
period  ended  March  31,  2001.  Gas  marketing  revenue increased $8.5 million
primarily  due  to  a  122.3% increase in the average sales price per Mmbtu from
$2.72  for  the  nine  months  ended March 31, 2000 to $6.06 for the nine months
ended March 31, 2001. This increase was mitigated by a 45.7% decline in marketed
gas  volumes  from  16.9 million Mmbtu to 9.2 million Mmbtu for the same period.
Pipeline  revenue  increased  $4.6 million primarily due to an 81.3% increase in
the average sales price per Mmbtu from $2.80 for the nine months ended March 31,
2000  to  $5.07  for  the  nine  months  ended March 31, 2001. This increase was
diminished  by  a  9.4%  decline  in  gas  volumes from 2.6 million Mmbtu to 2.3
million  Mmbtu  for  the  same  period.

     Revenues  from oil and gas sales increased $13.5 million from $17.2 million
for  the period ended March 31, 2000 to $30.7 million for the period ended March
31,  2001  due to an increase in both prices and net production. The average Mcf
price  received for the nine months ended March 2001 was $5.82 compared to $2.61
for  the nine months ended March 2000 causing a $17.2 million increase in sales.
The  Company's  net Mcf production for the nine months ended March 2001 compared
to  the  nine  months  ended  March  2000  increased  0.9  Mmcf, 16.1%, which is
attributable  to  drilling  and acquisitions, causing a $5.0 million increase in
sales.  The  average Bbl price received for the nine months ended March 2001 was
$27.09  compared  to $20.83 for the nine months ended March 2000. Oil production
decreased  4,611  Bbl, 5.4%, to 80,844 Bbl for the nine months. The increases to
revenue  were offset by recognized losses on hedging transactions, which totaled
$8.5  million  for  the nine months ended March 2001, with no hedging losses for
the nine months ended March 2000. The average price per Mcfe, after hedging, was
$4.49  and  $2.88  for  the nine months ended March 31, 2001 and March 31, 2000.

                                       -14-
<PAGE>

     Revenues  from other operations increased from zero during the period ended
March  31,  2000  to  $1.5  million  during the period ended March 31, 2001. The
increase  in  revenue  is  due  to  a  management contract with Allegheny, which
terminated  March  31,  2001,  whereby  the  Company  provided  Mountaineer with
management  services.

COSTS  AND EXPENSES.  The Company's operating costs and expenses increased $13.4
-------------------
million  or  17.3%  between  the  periods.  The  net increase was due to a 21.0%
decrease  in  gas  marketing  and  pipeline costs and a 158.3% increase in taxes
other  than  income.  The  remaining  costs were relatively constant between the
periods  with  field  operating  expenses  increasing  3.1%,  general  and
administrative  expenses  increasing  6.1%  and  depreciation,  depletion  and
amortization  costs  decreasing  1.3%.

     Gas  marketing  and  pipeline costs increased $11.2 million.  Gas marketing
cost  increased  $5.5  million primarily due to a 109.9% increase in the average
price  paid  for  gas  purchased  from $2.75 per Mmbtu for the nine months ended
March  31,  2000  to  $5.77  per Mmbtu for the nine months ended March 31, 2001.
This  increase  was  diminished by a 45.9% decline in purchased gas volumes from
16.9  million  Mmbtu  to  9.2  million Mmbtu for the same period.  Pipeline cost
increased  $5.7  million primarily due to a 126.0% increase in the average price
paid  for gas purchased from $2.13 per Mmbtu for the nine months ended March 31,
2000 to $4.81 per Mmbtu for the nine months ended March 31, 2001.  This increase
was offset by a 10.6% decline in purchased gas volumes from 2.7 million Mmbtu to
2.4  million  Mmbtu  for  the  same  period.

     Taxes  other  than  income increased $1.6 million as a result of higher oil
and  gas  prices  and  volumes. Production taxes are based on the wellhead price
received  and  are  not  affected  by  hedging  activities.

     EXPLORATION  AND  IMPAIRMENT.  Exploration  and  impairment costs increased
     ----------------------------
$9.1  million when comparing the periods ended March 31, 2001 to March 31, 2000.
The  primary  costs  related  to  this  period  are the impairment of a computer
conversion  project, $5.7 million; impairment of the investment in a fiber optic
company due to bankruptcy, $1.6 million; impairment of drilling costs related to
dry  holes,  $2.6  million.  The balance of the impairment for the period is for
other  exploratory  costs,  which  includes  delay  rentals,  lease expirations,
geological  and  geophysical  costs  and  seismic.

     INTEREST  EXPENSE.  Interest  expense decreased $1.8 million or 10.4%, when
     -----------------
comparing the periods ended March 31, 2001 to March 31, 2000.  This is primarily
due  to  having  8.7%  less  debt  at  March  31,  2001.

OTHER  NON-OPERATING  INCOME.  Other non-operating income increased $5.5 million
----------------------------
when  comparing  the  periods  ended  March 31, 2001 to March 31, 2000.  This is
primarily  due  to  interest  income  earned  on  cash  and  cash  equivalents.

INCOME  TAX.  The  provision  for income taxes increased $3.6 million due to the
-----------
$12.4  million  increase  to  pre-tax  earnings  from  continuing  operation.

                                       -15-
<PAGE>

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

     During  the  quarter ended March 31, 2001, the Company continued to utilize
the  significant  cash  liquidity  arising  from  the  sale of Mountaineer.  The
Company's  cash  decreased  from  $107.8  million at December 31, 2000 to $101.6
million at March 31, 2001.  The decrease in cash during the quarter was a result
of  the  net use of approximately $6.2 million of cash for various operating and
capital  expenditure  activities  of the Company.  The activities were primarily
comprised  of:  the  net  investment  of approximately $7.8 million in property,
plant  and equipment and other assets; the payment of approximately $0.7 million
for  the acquisition of treasury stock; and the generation of approximately $2.3
million of cash by operations during the quarter, which is net of the payment of
estimated  income  taxes  of  approximately  $12.4  million.

     At  March  31, 2001, the Company's principal sources of liquidity consisted
of  $101.6  million  of  cash,  plus  $2  million  available  under an unsecured
short-term  credit  facility  currently in place. At March 31, 2001, the Company
had  no letters of credit issued against the short-term line of credit facility.

     In  connection  with  the  use  of  proceeds  resulting  from  the  sale of
Mountaineer, the Company, pursuant to the terms of its Senior Subordinated Notes
(the  "Notes"),  has  the option, within 360 days of receipt of the net proceeds
from  the sale of the stock of Mountaineer, to apply such proceeds to (a) reduce
debt  senior  to  or pari passu with the Notes (provided that in connection with
the  reduction of pari passu debt, a pro rata portion of the Notes is redeemed);
(b) acquire a controlling interest in another business engaged in either natural
gas  distribution  or  the  exploration, development or operation of oil, gas or
other  hydrocarbon  properties  (an  "Energy  Business");  (c)  make  capital
expenditures  in respect to the Company's or its restricted subsidiaries' Energy
Business;  (d)  purchase  long term assets that are used or useful in the Energy
Business; or (e) repurchase the Notes. If the Company elects not to apply all of
the  net proceeds in accordance with one of the above options within 360 days of
receipt of such proceeds, then with respect to those net proceeds which were not
applied  to  one  of  the  above  options, the Company must make an offer to the
holders  of  the  Notes,  (and  holders  of  the  pari passu debt, to the extent
required  by  the  terms  of  the  pari  passu  debt)  to repurchase the maximum
principal  amount of the Notes and any pari passu debt at an offer price in cash
equal  to 100% of the principal amount thereof, plus accrued and unpaid interest
thereon  to  the  date  of  the  purchase.  At  the present time, the income tax
consequences  attributable to the sale of the stock of Mountaineer have not been
established.  As  a  result  of  the  foregoing,  the  amount that remains to be
applied,  pursuant to options (a) - (e) discussed above, within the 360 day time
frame  cannot  presently  be  determined.

     Currently,  it  is  the  intention  of  the Company to seek to reinvest any
remaining  net  proceeds  into  Energy  Business  activities. A component of the
Company's  reinvestment  strategy  will  be  to  expand  its  exploration  and
development  activities,  both domestically and internationally. For fiscal year
2001,  the  Company  estimated  it  would  invest approximately $42.4 million in
capital projects, including $15.9 million for exploration projects and $13.7 for
development  projects. At March 31, 2001, the Company had expended approximately
$25.3  million  of  its  fiscal  year  2001  capital  expenditure program. It is
anticipated  that  a portion of the fiscal year 2001 capital expenditure program
will  be  expended  in  the  first  quarter  of  fiscal  year  2002.

     In  addition  to  the  Company's  exploration  and  development  drilling
activities  associated  with this reinvestment program, the Company continues to
seek  to satisfy the reinvestment requirement by engaging in acquisitions of oil
and  natural gas reserves and properties, such as the $56 million acquisition of
the  Appalachian  properties  of  Penn  Virginia Corporation that was previously
discussed.  As  of  March 31, 2001, the Company had expended a total of over $80
million  related  to  its  exploration  and  development drilling activities and
acquisitions  of  oil  and  natural  gas  properties.  Currently, the Company is
engaged  in  ongoing  negotiations  to  acquire  approximately  $24  million  of
additional  oil and natural gas reserves and properties within the contiguous 48
states.  There  can be no assurance that the drilling activities associated with
the  reinvestment  program  will  achieve  commercial success or that any future
acquisitions  made by the Company will achieve desired profitability objectives.

                                       -16-
<PAGE>

     The  Company's  cash  requirements  will  fluctuate based on timing and the
extent  of  the  interplay  of the factors discussed above. Moreover, management
anticipates  that  although projected earnings from continuing operations before
interest  charges,  taxes,  depreciation,  depletion  and  amortization,  and
impairment  and exploratory costs ("EBITDAX") for fiscal year 2001 will increase
to  $38 million from $4.2 million for fiscal year 2000, such results will not be
sufficient  to  fully  fund fiscal year 2001 projected interest charges of $20.1
million  and fund the Company's fiscal year 2001 capital expenditures program of
$42.4  million. However, management believes that cash generated from continuing
oil and gas operations, the use of net proceeds from the sale of Mountaineer (as
permitted  under  provisions  of the related debt agreements), together with the
liquidity  provided  by  existing  cash  balances,  permitted  borrowings and by
investments  in  new  "Energy  Business"  assets,  will be sufficient to satisfy
commitments  for capital expenditures, debt service obligations, working capital
needs  and  other  cash  requirements  for  the  next  year.

     The  Company  believes  that its existing capital resources, its mitigating
management  efforts, and its expected fiscal year 2001 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. However, since future
results  of  operations,  cash  flow  from  operating  activities,  debt service
capability,  and  levels  and  availability  of capital resources and continuing
liquidity  are dependent on future weather patterns, oil and gas commodity sales
prices and production volume levels, future exploration and development drilling
success  and successful acquisition transactions, no assurance can be given that
the  Company  will  remain  in  compliance  with  the requirements of its Notes.



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

     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. All of the Company's debt has fixed interest
rates.  The Company has not attempted to hedge the interest rate risk associated
with  its  debt.

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

     The  Company's  operations  consist  primarily of exploring for, producing,
aggregating  and  selling  natural gas and oil. The Company attempts to mitigate
its  commodity  price risk by entering into a mix of short, medium and long-term
supply  contracts.  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 its commodity price risk.
Notwithstanding  the  above,  the  Company's  future cash flows from gas and oil
production  are  exposed  to  significant volatility as commodity prices change.

                                       -17-
<PAGE>

     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  its 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.  The Company
does not hold or issue derivative instruments for trading purposes.  The Company
has  elected  to enter into swap transactions, covering approximately 72% of its
natural  gas  for  the  last  quarter  of  fiscal  year  2001.

     FOREIGN  CURRENCY  TRANSLATION
     ------------------------------

     Some  of  the  Company's  transactions  are  denominated  in New Zealand or
Australian  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.

                                       -18-
<PAGE>

PART  II.  OTHER  INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS

The Company is not a party to any legal actions that would materially affect the
Company's  operations  or  financial  statements.


ITEM  2.  CHANGES  IN  SECURITIES

          None


ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES

          None


ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

          None


ITEM  5.  OTHER  INFORMATION

          None


ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

          None

                                       -19-
<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  15th  day  of  May,  2001.



                                       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

                                       -20-
<PAGE>