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 DECEMBER 31, 2000.

                                       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
                      December 31, 2000 was 641,310 shares.

<PAGE>
<TABLE>
<CAPTION>

                          ENERGY  CORPORATION  OF  AMERICA

                                TABLE OF CONTENTS


                                                                         PAGES
PART  I  FINANCIAL  INFORMATION

<S>                                                                       <C>
Item 1. Financial Statements

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

Unaudited Condensed Consolidated Statements of Operations
   For the three and six months ended December 31, 2000 and 1999 . . . .   5

Unaudited Condensed Consolidated Statements of Cash Flows
   For the six months ended December 31, 2000 and 1999 . . . . . . . . .   6

Unaudited Condensed Consolidated Statements of Comprehensive Income
   For the three and six months ended December 31, 2000 and 1999 . . . .   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 . . .  18


PART II  OTHER INFORMATION

Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . . .  20

Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . . . .  20

Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . . . . . .  20

Item 4. Submission of Matters to a Vote of Security Holders. . . . . . .  20

Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . . . .  20

Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . .  20

Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21
</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>
                                                          DECEMBER 31    JUNE 30
                                                             2000         2000
                                                          (UNAUDITED)       *
 ASSETS

 CURRENT ASSETS
    Cash and cash equivalents. . . . . . . . . . . . .  $     107,836  $  3,310
    Accounts receivable, net of allowance for doubtful
       accounts of  $436 and $463. . . . . . . . . . .         20,199    14,467
    Net utility assets held for sale                                     56,795
    Gas in storage, at average cost. . . . . . . . . .            879       765
    Prepaid and other current assets . . . . . . . . .          5,824     4,423
                                                        -------------  --------
       Total current assets. . . . . . . . . . . . . .        134,738    79,760
                                                        -------------  --------

 Property, plant and equipment, net of accumulated
    depreciation and depletion of $96,718 and $92,106.        223,654   160,162
                                                        -------------  --------

 OTHER ASSETS
    Deferred financing costs, net of accumulated
       amortization of $2,619 and $2,446 . . . . . . .          4,720     5,210
    Notes receivable . . . . . . . . . . . . . . . . .          2,010     1,519
    Other. . . . . . . . . . . . . . . . . . . . . . .         20,113    19,040
                                                        -------------  --------
       Total other assets. . . . . . . . . . . . . . .         26,843    25,769
                                                        -------------  --------

 TOTAL . . . . . . . . . . . . . . . . . . . . . . . .  $     385,235  $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)
--------------------------------------------------------------------------------------

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

 CURRENT LIABILITIES
    Accounts payable . . . . . . . . . . . . . . . . . . . .  $     15,516   $ 14,877
    Short-term borrowings                                                       2,000
    Current portion of long-term debt. . . . . . . . . . . .           150      1,086
    Funds held for future distribution . . . . . . . . . . .         7,704      6,280
    Income taxes payable . . . . . . . . . . . . . . . . . .        21,538
    Other current liabilities. . . . . . . . . . . . . . . .        30,760      6,539
                                                              -------------  ---------
       Total current liabilities . . . . . . . . . . . . . .        75,668     30,782

 LONG-TERM OBLIGATIONS
    Long-term debt . . . . . . . . . . . . . . . . . . . . .       198,978    212,575
    Gas delivery obligation and deferred revenue . . . . . .        14,074     15,443
    Deferred income tax liability. . . . . . . . . . . . . .        19,500
    Other long-term obligation . . . . . . . . . . . . . . .        10,541     11,014
                                                              -------------  ---------
       Total liabilities . . . . . . . . . . . . . . . . . .       318,761    269,814
                                                              -------------  ---------


 STOCKHOLDERS' EQUITY
    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). . . . . . . . . . . . . . .        73,247     (4,833)
    Treasury stock and notes receivable arising from the
       issuance of common stock. . . . . . . . . . . . . . .        (8,511)    (7,429)
    Accumulated comprehensive loss . . . . . . . . . . . . .        (8,430)      (134)
                                                              -------------  ---------
       Total stockholders' equity (deficit). . . . . . . . .        66,474     (4,123)
                                                              -------------  ---------

 TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . .  $    385,235   $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 SIX
                                                                     MONTHS ENDED         MONTHS ENDED
                                                                      DECEMBER 31          DECEMBER 31
                                                                   2000        1999      2000      1999
<S>                                                                <C>       <C>       <C>       <C>
 REVENUES:
    Gas marketing and pipeline sales. . . . . . . . . . . . . . .  $21,581   $19,244   $39,188   $ 38,840
    Oil and gas sales . . . . . . . . . . . . . . . . . . . . . .    8,488     5,424    16,207     11,291
    Well operations and service revenues. . . . . . . . . . . . .    1,282     1,582     2,664      3,133
    Other revenue . . . . . . . . . . . . . . . . . . . . . . . .      547                 921
                                                                   --------  -------   --------  ---------
                                                                    31,898    26,250    58,980     53,264
                                                                   --------  --------  --------  ---------
 COST AND EXPENSES:
    Gas marketing and pipeline cost . . . . . . . . . . . . . . .   20,185    18,847    37,071     37,959
    Field operating expenses. . . . . . . . . . . . . . . . . . .    1,963     2,011     3,966      3,966
    General and administrative. . . . . . . . . . . . . . . . . .    3,131     2,871     5,659      5,332
    Taxes, other than income. . . . . . . . . . . . . . . . . . .      821       347     1,428        676
    Depletion and depreciation, oil and gas related . . . . . . .    1,965     2,377     4,037      4,413
    Depreciation of pipelines and equipment . . . . . . . . . . .      685       727     1,346      1,465
    Exploration and impairment. . . . . . . . . . . . . . . . . .    1,785     1,737     2,637      2,938
                                                                   --------  --------  --------  ---------
                                                                    30,535    28,917    56,144     56,749
                                                                   --------  --------  --------  ---------
    Income (loss) from operations . . . . . . . . . . . . . . . .    1,363    (2,667)    2,836     (3,485)
                                                                   --------  --------  --------  ---------
 OTHER (INCOME) EXPENSE
    Interest expense. . . . . . . . . . . . . . . . . . . . . . .    4,950     6,177    10,322     11,515
    Interest income and other . . . . . . . . . . . . . . . . . .   (3,404)     (398)   (4,400)      (609)
                                                                   --------  --------  --------  ---------
 Loss from continuing operations before income taxes. . . . . . .     (183)   (8,446)   (3,086)   (14,391)
 Income tax expense (benefit) . . . . . . . . . . . . . . . . . .       67    (2,642)     (988)    (4,249)
                                                                   --------  --------  --------  ---------
 Loss from continuing operations. . . . . . . . . . . . . . . . .     (250)   (5,804)   (2,098)   (10,142)
                                                                   --------  --------  --------  ---------
 Disposal of utility operations:
    Income (loss) from utility operations, net of income tax                   4,414    (1,949)     4,447
    Gain (loss) on sale of utility operations, net of income tax.   (1,067)             85,390
                                                                   --------  -------   --------  ---------
    Net income (loss) from disposal of utility operations . . . .   (1,067)    4,414    83,441      4,447
 Extraordinary gain on extingishment of debt, net of tax. . . . .      378         -       378          -
                                                                   --------  --------  --------  ---------
 NET INCOME (LOSS). . . . . . . . . . . . . . . . . . . . . . . .  $  (939)  $(1,390)  $81,721   $ (5,695)
                                                                   ========  ========  ========  =========

 Basic and diluted earnings per common share:
    Loss from continuing operations . . . . . . . . . . . . . . .  $ (0.38)  $ (8.72)  $ (3.15)  $ (15.22)
    Income (loss) from disposed utility operations. . . . . . . .    (1.60)     6.63    125.26       6.67
    Extraordinary gain on extinguishment of debt. . . . . . . . .     0.57         -      0.57          -
                                                                   --------  --------  --------  ---------
    Net income (loss) . . . . . . . . . . . . . . . . . . . . . .  $ (1.41)  $ (2.09)  $122.68   $  (8.55)
                                                                   ========  ========  ========  =========
<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 SIX MONTHS
                                                                                     ENDED DECEMBER 31
                                                                                       2000       1999
<S>                                                                                 <C>        <C>
 CASH FLOWS FROM OPERATING ACTIVITIES
    Net loss from continuing operations. . . . . . . . . . . . . . . . . . . . . .  $ (2,098)  $(10,142)
    Adjustment to reconcile net loss to net cash used by operating activities
       Depletion, depreciation and amortization. . . . . . . . . . . . . . . . . .     5,873      6,277
       Impairment expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,680      2,174
       Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (460)    (3,063)
                                                                                    ---------  ---------
                                                                                       4,995     (4,754)
    Changes in assets and liabilities:
    Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (5,704)     1,873
    Gas in storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      (114)       (12)
    Prepaid and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . .      (825)       169
    Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       418     (3,692)
    Funds held for future distributions. . . . . . . . . . . . . . . . . . . . . .     1,425         78
    Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (27,258)       (80)
                                                                                    ---------  ---------
       Net cash used by operating activities from continuing operations. . . . . .   (27,063)    (6,418)
       Net cash used by operating activities from disposed operations. . . . . . .    (5,687)   (22,222)
                                                                                    ---------  ---------
       Net cash used by operating activities . . . . . . . . . . . . . . . . . . .   (32,750)   (28,640)
                                                                                    ---------  ---------
 CASH FLOWS FROM INVESTING ACTIVITIES
    Expenditures for property, plant and equipment . . . . . . . . . . . . . . . .   (70,979)    (7,383)
    Proceeds from sale of assets . . . . . . . . . . . . . . . . . . . . . . . . .       680         38
    Notes receivable and other . . . . . . . . . . . . . . . . . . . . . . . . . .    (4,351)      (273)
                                                                                    ---------  ---------
       Net cash used by investing activities from continuing operations. . . . . .   (74,650)    (7,618)
       Net cash provided (used) by investing activities from disposed operations .   224,765    (18,585)
                                                                                    ---------  ---------
       Net cash provided (used) by investing activities. . . . . . . . . . . . . .   150,115    (26,203)
                                                                                    ---------  ---------
 CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from long-term debt . . . . . . . . . . . . . . . . . . . . . . . . .     7,825
    Principal payment on long-term debt. . . . . . . . . . . . . . . . . . . . . .   (21,776)    (4,029)
    Principal payment on short-term borrowing. . . . . . . . . . . . . . . . . . .    (2,000)
    Purchase of treasury stock and other financing activities. . . . . . . . . . .    (1,138)      (211)
    Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (3,340)
    Prepayment of future gas delivery                                                            10,000
    Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,051          -
                                                                                    ---------  ---------
       Net cash provided (used) by financing activities from continuing operations   (19,378)     5,760
       Net cash provided by financing activities from disposed operations. . . . .     6,539     49,817
                                                                                    ---------  ---------
       Net cash provided (used) by financing activities. . . . . . . . . . . . . .   (12,839)    55,577
                                                                                    ---------  ---------
       Net increase in cash and cash equivalents . . . . . . . . . . . . . . . . .   104,526        734
       Cash and cash equivalents, beginning of period. . . . . . . . . . . . . . .     3,310     12,163
                                                                                    ---------  ---------
 Cash and cash equivalents, end of period. . . . . . . . . . . . . . . . . . . . .  $107,836   $ 12,897
                                                                                    =========  =========
<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  SIX MONTHS ENDED
                                                       DECEMBER 31         DECEMBER 31
                                                     2000      1999      2000      1999
<S>                                               <C>       <C>       <C>       <C>

 Net income (loss) . . . . . . . . . . . . . . .  $  (939)  $(1,390)  $81,721   $(5,695)
                                                  --------  --------  --------  --------
 Other comprehensive income (loss), net of tax:
    Foreign currency translation adjustment. . .    1,579       247     1,579       247
    Marketable securities:
       Unrealized gain . . . . . . . . . . . . .        3                  91
    O&G derivatives:
       Net cumulative effect adjustment                                (2,153)
       Current period transactions . . . . . . .   (8,100)             (9,562)
       Reclassification to earnings. . . . . . .    1,189               1,749
                                                  -------- ---------  --------  --------
 Other comprehensive income (loss), net of tax .   (5,329)      247    (8,296)      247
                                                  --------  --------  --------  --------
 Comprehensive income (loss) . . . . . . . . . .  $(6,268)  $(1,143)  $73,425   $(5,448)
                                                  ========  ========  ========  ========

<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
                                DECEMBER 31, 2000


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 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, New Zealand and
Australia.


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  December  31,  2000  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.  In addition, due to
the  sale  of  the  utility  operations,  see  Note  3, amounts in the financial
statements  and  related notes for all periods presented have been reclassified.


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 beginning
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 December 31, 2000
------------------------------------
   Basic and Diluted . . . . . . . .  $   (250,000)  665,424  $    (0.38)
Six months ended December 31, 2000
------------------------------------
   Basic and Diluted . . . . . . . .  $ (2,098,000)  666,164  $    (3.15)
Three months ended December 31, 1999
------------------------------------
   Basic and Diluted . . . . . . . .  $ (5,804,000)  665,683  $    (8.72)
Six months ended December 31, 1999
------------------------------------
   Basic and Diluted . . . . . . . .  $(10,142,000)  666,407  $   (15.22)
</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.

On  December  7,  2000,  the  Stockholders authorized the Company to issue 1,000
shares  of  Class A stock to each active member of the Board of Directors, which
resulted  in  the issuance of 9,000 additional shares.  The related cost of $1.0
million,  net of $0.5 million income taxes, was included in the gain on the sale
of  utility  operations, as the shares were issued for services rendered for the
sale.


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  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>

<S>                                                    <C>            <C>          <C>        <C>
                                                        Exploration    Marketing
                                                            and           and
                                                        Production     Pipeline     Other      Consolidated
                                                       -------------  -----------  ---------  --------------
 For the six months ended December 31, 2000
-----------------------------------------------------
   Sales to unaffiliated customers. . . . . . . . . .  $     18,871   $   39,188   $    921   $      58,980
   Intersegment revenues                                                                                  -
   Depreciation, depletion, amortization. . . . . . .         4,689          487        207           5,383
   Exploratory costs. . . . . . . . . . . . . . . . .         2,637                                   2,637
   Operating profit (loss). . . . . . . . . . . . . .         3,420          755     (1,339)          2,836
   Interest expense . . . . . . . . . . . . . . . . .            39            1     10,282          10,322
   EBITDAX. . . . . . . . . . . . . . . . . . . . . .        10,942          758      3,556          15,256
   Total assets . . . . . . . . . . . . . . . . . . .       127,087       76,722    181,426         385,235
   Capital expenditures . . . . . . . . . . . . . . .        68,154          625      2,200          70,979
------------------------------------------------------------------------------------------------------------
 For the six months ended December 31, 1999
-----------------------------------------------------
   Sales to unaffiliated customers. . . . . . . . . .  $     14,424   $   38,840              $      53,264
   Intersegment revenues                                                                                  -
   Depreciation, depletion, amortization. . . . . . .         5,183          516   $    179           5,878
   Exploratory costs. . . . . . . . . . . . . . . . .         2,938                                   2,938
   Operating profit (loss). . . . . . . . . . . . . .          (929)        (445)    (2,111)         (3,485)
   Interest expense . . . . . . . . . . . . . . . . .            26            2     11,487          11,515
   EBITDAX. . . . . . . . . . . . . . . . . . . . . .         7,527         (106)    (1,480)          5,941
   Total assets, net of utility assets held for sale.       124,327       59,193     29,837         213,357
   Capital expenditures . . . . . . . . . . . . . . .         7,262           92         29           7,383
</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 $5.2
million  and  $3.1  million  as  of  December  31,  2000  and  1999.


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.  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.  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 $9.9 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 December 31, 2000, 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)
   Misc debt payments . . . .              (223)         (57)         (280)
   Acquisition-related debt .                37          788           825
                               -----------------  -----------  ------------
 Balance at December 31, 2000  $            150   $  198,978   $   199,128
                               =================  ===========  ============
</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 Quarter Ending:
  March 31, 2001. . . . . . .  $     38
  June 30, 2001 . . . . . . .        38
  September 30, 2001. . . . .        37
  December 31, 2001 . . . . .        37
                               --------
  Total current . . . . . . .       150
  March 31, 2002. . . . . . .       115
  June 30, 2002 . . . . . . .        37
For the Fiscal Year Ending:
  June 30, 2003 . . . . . . .       156
  June 30, 2004 . . . . . . .       159
  June 30, 2005 . . . . . . .       163
  Thereafter. . . . . . . . .   198,348
                               --------
     Total. . . . . . . . . .  $199,128
                               ========
</TABLE>

On  August 18, 2000, the Company paid in full the $19.8 million then outstanding
under  its  revolving  line  of  credit facility and gave notice of termination.

On  November 9, 2000, the  Company commenced   a tender offer to purchase,   for
cash,  all  of the Notes at a purchase price of $750 per $1,000 principal amount
of  Notes  plus  accrued  and  unpaid interest.  The offer to purchase the Notes
expired  on  December  11,  2000.  Approximately  $2.3 million of the notes were
tendered and retired during the quarter, which resulted in an extraordinary gain
of  $0.38  million,  net  of  $0.20  million  income  tax.

                                      -11-
<PAGE>

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.



     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, Australia 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.

                                      -12-
<PAGE>

     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  quarter  ended  December  31,  2000, the Company made the following
acquisitions:

-     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 for $59.4 million subject to
certain  adjustments.
-     Purchased  a 66.6% interest in Deep Rig L.L.P for $2.0 million, which will
purchase  and operate an onshore deep well drilling rig for oil and natural gas.
-     Purchased  shares  of  Neumedia,  a West Virginia fiber optic company, for
$1.5  million.  A major shareholder of Neumedia is a shareholder and Director of
the  Company.


COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 2000
--------------------------------------------------------------------------------
AND  1999
---------

     The  Company recorded a net loss from continuing operations of $0.3 million
for  the  three  months  ended  December  31,  2000  compared to a net loss from
continuing operations of $5.8 million for the same period in 1999.  The increase
in income of $5.5 million is attributed to the net of a $5.6 million increase in
revenue,  a $1.6 million increase in operating expenses, a $1.2 million decrease
in interest expense, a $3.0 million increase in other non-operating income and a
$2.7  million  increase  in  the  provision  for  income  taxes.

REVENUES.  Total  revenues  increased $5.6 million or 21.5% between the periods.
--------
The  net  increase  was  due  to  a 12.1% increase in gas marketing and pipeline
sales,  a  56.5%  increase  in  oil  and  gas sales and a 100% increase in other
operating  revenue.

Revenues from gas marketing and pipeline sales increased $2.3 million from $19.2
million  during  the  period ended December 31, 1999 to $21.5 million during the
period ended December 31, 2000.  Gas marketing revenue increased by $0.8 million
primarily  due  to  a  113.6% increase in the average sales price per Mmbtu from
$2.74  per  Mmbtu  for the three months ended December 31, 1999 to $5.85 for the
three  months  ended  December 31, 2000 mitigated by a 50.2% decline in marketed
gas  volumes from 6.0 million Mmbtu for the three months ended December 31, 1999
to  3.0 million Mmbtu for the three months ended December 31, 2000.  The decline
in volumes for the quarter ended December 31, 2000 was primarily attributable to
the  Company's  decision  to  exit  the  end-user  market  and not renew related
contracts as they expired.  Pipeline revenue increased by $1.5 million primarily
due  a  73.8% increase in the average sales price per Mmbtu from $2.82 per Mmbtu
for the three months ended December 31, 1999 to $4.91 for the three months ended
December  31, 2000, mitigated by a 5.9% decline in delivered gas volumes for the
three  months  ended  December  31,  2000.

Revenues from oil and gas sales increased $3.1 million from $5.4 million for the
period ended December 31, 1999 to $8.5 million for the period ended December 31,
2000  primarily  due  to the increase in prices.  The Mcf price received for gas
for  the  quarter  ended December 2000 was $5.17 per Mcf compared to the quarter
ended  December 1999 of $2.54.  The 103.9% or $2.63 increase in price is related
to  the  increase  in the average index price of gas.  The Company's net Mcf for
the  quarter  ended  December  2000  compared to the quarter ended December 1999
production  increased 13.7% or 234,289 Mcf.  The increase is attributable to the
purchased interests of several large owners.  The per Bbl price received for oil
for  the  quarter  ended  December 2000 was $27.11 compared to the quarter ended
December  1999  of $21.57.  The $5.54 price per Bbl increase was supplemented by
an 878 Bbl increase in production to 28,030 Bbl.  Offsetting the increase in oil
and gas sales is a $2.2 million reduction due to hedging activity.  In addition,
$0.4  million  reduction  in  sales  was recorded pursuant to a market-sensitive
royalty  agreement.

                                      -13-
<PAGE>

     Revenues  from other operations increased from zero during the period ended
December  31,  1999  to  $0.5 million during the period ended December 31, 2000.
The  increase in revenue is due to a management contract with Allegheny, whereby
the  Company  provides  Mountaineer  with  management  services.

COSTS  AND EXPENSES.  The Company's costs and expenses increased $1.6 million or
-------------------
5.6% between the periods.  The net increase was primarily due to a 7.1% increase
in  gas  marketing  and  pipeline  costs.  Field operating expenses, general and
administrative  expenses,  depreciation,  depletion  and  amortization costs and
impairment  and  exploratory  costs  remained  relatively  constant  between the
periods.

Gas  marketing and pipeline costs increased $1.3 million.  Gas marketing cost of
sales declined by $0.4 million primarily due to a 50.2% decline in purchased gas
volumes  from  6.0 million Mmbtu for the three months ended December 31, 1999 to
3.0  million  Mmbtu  for  the  three  months  ended December 31, 2000, which was
mitigated  by  a 99.1% increase in the average price paid for gas purchased from
$2.76  per Mmbtu for the three months ended December 31, 1999 to $5.49 per Mmbtu
for  the three months ended December 31, 2000.  Pipeline cost of sales increased
by  approximately $1.8 million primarily due to a 118.8% increase in the average
price  paid  for  gas  purchased from $2.13 per Mmbtu for the three months ended
December  31,  1999  to  $4.65 per Mmbtu for the three months ended December 31,
2000,  which  was mitigated by a 10.6% decline in purchased gas volumes from 0.9
million  Mmbtu for the three months ended December 31, 1999 to 0.8 million Mmbtu
for  the  three  months  ended  December  31,  2000.

Taxes other than income increased $0.5 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.

     INTEREST  EXPENSE.  Interest  expense decreased $1.2 million or 19.9%, when
     -----------------
comparing  the  periods  ended  December 31, 2000 to December 31, 1999.  This is
primarily  due  to the elimination of the Company's revolving line of credit and
related  fees.

OTHER  NON-OPERATING  INCOME.  Other non-operating income increased $3.0 million
----------------------------
when  comparing  the periods ended December 31, 2000 to December 31, 1999.  This
is  primarily  due  to  interest  income  earned  on  cash and cash equivalents.

INCOME  TAX.  The  provision  for income taxes increased $2.7 million due to the
-----------
$8.3  million  increase  to  pre-tax  earnings  from  continuing  operation.


COMPARISON  OF  RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 2000
--------------------------------------------------------------------------------
AND  1999
---------

The  Company  recorded a net loss from continuing operations of $2.1 million for
the  six  months  ended December 31, 2000 compared to a net loss from continuing
operations of $10.1 million for the same period in 1999.  The increase in income
of  $8.0 million is attributed to the net of a $5.7 million increase in revenue,
a  $0.6  million  decrease  in  operating  expenses,  a $1.2 million decrease in
interest  expense,  a  $3.8 million increase in other non-operating income and a
$3.3  million  decrease  in  income  tax  benefits.

                                      -14-
<PAGE>

     REVENUES.  Total  revenues  increased  $5.7  million  or  10.7% between the
     --------
periods.  The  net increase was primarily due to a 43.5% increase in oil and gas
sales  and  a  100%  increase  in  other  operating  revenue.

Revenues  from  oil  and gas sales increased $4.9 million from $11.3 million for
the  period  ended  December  31,  1999  to  $16.2  million for the period ended
December  31, 2000.  The increase is attributable to the increase in oil and gas
prices.  For  the  six months ending December 2000, production increased 9.2% to
3.9  Bcf  as compared to the six months ending December 1999's production of 3.6
Bcf.  Gas  prices  rose 75.9% or $1.99 over the six-month period ending December
2000  to  $4.61  per  Mcf as compared to December 1999's price per Mcf of $2.62.
This  increase  in price is primarily related to the increase in the index price
of gas.  Oil prices increased 40.2% or $7.78 over the six months ending December
2000  to  $27.13 per Bbl as compared to December 1999's price per Bbl of $19.35.
Oil  production  for  the same period, decreased 2.6%, 1,428 Bbl, to 54,501 Bbl.
Offsetting  the  increase in oil and gas sales is the $3.3 million reduction due
to  hedging  transactions.  In  addition,  a $0.4 million reduction in sales was
recorded  pursuant  to  a  market-sensitive  royalty  agreement.

Revenues  from  other  operations  increased  from  zero during the period ended
December  31,  1999  to  $0.9 million during the period ended December 31, 2000.
The  increase in revenue is due to a management contract with Allegheny, whereby
the  Company  provides  Mountaineer  with  management  services.

COSTS  AND EXPENSES.  The Company's costs and expenses decreased $0.6 million or
-------------------
1.1%  between  the  periods.  The net decrease was due to a 2.3% decrease in gas
marketing  and  pipeline costs and a 111.2% increase in taxes other than income.
Field  operating  expenses,  general  and administrative expenses, depreciation,
depletion  and  amortization costs and impairment and exploratory costs remained
relatively  constant  between  the  periods.

Gas  marketing  and  pipeline  costs  decreased  a  total  of $0.9 million.  Gas
marketing  cost of sales decreased $3.5 million primarily due a 50.0% decline in
purchased  gas volumes from 12.2 million Mmbtu for the six months ended December
31,  1999 to 6.1 million Mmbtu for the six months ended December 31, 2000, which
was  mitigated  by  a 82.0% increase in the average price paid for gas purchased
from  $2.72  per  Mmbtu  for the six months ended December 31, 1999 to $4.95 per
Mmbtu  for  the  six  months  ended  December  31, 2000.  Pipeline cost of sales
increased by approximately $2.6 million primarily due to a 90.4% increase in the
average  price  paid  for  gas purchased from $2.13 per Mmbtu for the six months
ended  December  31,  1999 to  $4.05 per Mmbtu for the six months ended December
31,  2000,  which was mitigated by a 11.5% decline in purchased gas volumes from
1.9  million  Mmbtu  for  the  six months ended December 31, 1999 to 1.7 million
Mmbtu  for  the  six  months  ended  December  31,  2000.

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.

INTEREST  EXPENSE.  Interest  expense  decreased  $1.2  million  or  10.4%, when
-----------------
comparing  the  periods  ended  December 31, 2000 to December 31, 1999.  This is
primarily  due  to the elimination of the Company's revolving line of credit and
related  fees.

OTHER  NON-OPERATING  INCOME.  Other non-operating income increased $3.8 million
----------------------------
when  comparing  the periods ended December 31, 2000 to December 31, 1999.  This
is  primarily  due  to  interest  income  earned  on  cash and cash equivalents.

                                      -15-
<PAGE>

     INCOME  TAX.  The  provision for income taxes increased $3.3 million due to
     -----------
the  $11.3  million  increase  to  pre-tax  earnings  from continuing operation.


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

     During  the  quarter  ended December 31, 2000, the Company was able to take
advantage of the significant cash liquidity arising from the sale of Mountaineer
in  the  previous  quarter.  The Company's cash decreased from $197.9 million at
September 30, 2000 to $107.8 million at December 31, 2000.  The decrease in cash
during the quarter was a result of the net use of approximately $90.1 million of
cash  for  various  activities  of  the  Company.  The activities were primarily
comprised  of:  the  use  of  approximately  $55.0  million  of  cash  for  the
acquisition of certain Appalachian gas properties from Penn Virginia Corporation
(subject  to  adjustments  for  production  and  expenses after October 1, 2000,
preferential  rights  exercised  by  third  parties  and other customary closing
adjustments);  the  use  of  $3.5  million  on  other  acquisitions,  previously
discussed,  the  investment of approximately $6.5 million in property, plant and
equipment  and  other  assets; the payment of approximately $1.7 million for the
retirement  of approximately $2.3 million of the Company's Notes pursuant to its
recently  completed  tender offer; the payment of approximately $0.8 million for
the acquisition of treasury stock; and the use of approximately $27.3 million of
cash  by  operations during the quarter, which includes the payment of estimated
income  taxes  of  approximately  $23.4  million.

At  December 31, 2000, the Company's principal sources of liquidity consisted of
$107.8  million of cash, plus $2 million available under an unsecured short-term
credit  facility  currently  in  place.  At  December  31, 2000, the Company had
letters  of  credit  of  $700,000  issued  against the short-term line of credit
facility.  The  Company  may  seek a replacement for the secured credit facility
that  was  cancelled  in  the  prior  quarter.

Pursuant  to the terms of the Company's Senior Subordinated Notes (the "Notes"),
the  Company 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  exact  income tax consequences
relating  to the sale of the stock of Mountaineer has not been determined.  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 be
determined.

On November 9, 2000, the Company commenced a tender offer to purchase, for cash,
all  of  the  Notes  at  a purchase price of $750 per $1,000 principal amount of
Notes plus accrued and unpaid interest.  The offer to purchase the Notes expired
on  December  11, 2000.  As noted above, approximately $2.3 million of the notes
were tendered and retired during the quarter, which resulted in an extraordinary
gain  of  $0.38  million,  net  of  $0.20  million  income  tax.

                                      -16-
<PAGE>

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  plans  to  invest approximately $42.4 million in capital projects.  The
fiscal year 2001 capital expenditure program contemplates spending approximately
$11.7  million  on  27  gross  (25  net)  recompletions  and 73 gross (60.3 net)
development  wells  as  well  as  approximately  $2.0 million on acquisitions of
producing  properties  primarily  in  the  Appalachian  Basin.  In addition, the
Company's  fiscal  year  2001  capital  spending  program  contemplates spending
approximately  $15.9  million  (including  estimated  completion  costs)  on
exploratory  drilling projects.  These projects include funding $12.1 million on
domestic  exploration  drilling  opportunities and $3.8 million on international
exploration  drilling  opportunities.  This  funding program assumes drilling 14
gross  (5.9  net) domestic exploration wells and 8 gross (4.6 net) international
exploration  wells.  Other  capital  projects  include  $5.1 million for seismic
studies  and  for  leasehold  acquisitions  plus $7.7 million for infrastructure
projects.  At  December  31,  2000,  the  Company had expended approximately $14
million  of  its  fiscal  year  2001 capital expenditure program.  A significant
majority of the fiscal year 2001 capital expenditure program was planned for the
last  half  of  the  fiscal  year.

In  addition  to  the  Company's exploration and development drilling activities
associated  with this reinvestment program, the Company will seek to satisfy the
reinvestment  requirement  by  engaging in acquisitions of utility assets or oil
and  natural  gas  reserves  and  properties,  such  as  the  acquisition of the
Appalachian  properties  of  Penn  Virginia  Corporation  that  was  previously
discussed.  There  can  be no assurance that the Company will be able to acquire
additional  exploration  or  development  drilling  opportunities or to identify
additional acquisition candidates in the required 360 day time period.  Further,
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.

Other than the reinvestment program described above, the timing of the Company's
capital  expenditures  is  mostly  discretionary  with  no  material  capital
expenditure  commitments.  The  Company,  therefore, has a significant degree of
flexibility  to  adjust  its  level of its capital expenditures as circumstances
warrant.  However, the Company has designated certain projects as non-deferrable
commitments  incurred  in  the normal course of business.  These include certain
drilling  obligations,  primarily in New Zealand and Texas, which range from $10
million  to  $15 million at December 31, 2000.  The ultimate expenditures by the
Company  in  these areas will be dependant to a large extent upon the ability of
the  Company  to  attract  partners,  farmout  portions  of  certain projects or
otherwise  enter  into  cost  sharing  arrangements.

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 $36.3
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.  Based  on  such  estimates,  the  Company may utilize a certain
portion  of  the  proceeds  from  the  sale  of  Mountaineer  to  make  capital
expenditures,  subject to limitations on such usage under the Notes, if any, and
may  seek  to  raise  additional  capital  or incur permitted indebtedness.  The
availability  and attractiveness of such sources of financing will depend upon a
number  of  factors,  some  of  which will relate to the financial condition and
performance  of  the  Company,  and  some  of which will be beyond the Company's
control,  such  as  prevailing  interest  rates,  oil  and  gas  prices, weather
patterns,  credit  agency  rating  reports  and  other  market  conditions.  The
Company's  liquidity is directly affected by such factors and the Company's cash
requirements  will fluctuate based on the timing and the extent of the interplay
of  these  factors.  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.

                                      -17-
<PAGE>

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, maintaining current levels
of  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 not continue to
report substantial net losses from continuing operations or that debt service or
debt  covenant  violations  will  not occur.  In such instances, the Company may
elect to increase permitted borrowing levels (see discussion above), restructure
debt  agreements  (including debt agreements with additional lenders), sell core
and  non-core  assets, defer discretionary capital expenditures, curtail certain
domestic  and international oil and gas programs or take other actions necessary
to  mitigate  liquidity short-falls and debt agreement violations or acquire new
or  additional  capital resources, although no assurances can be given that such
actions  will  be  successful.


              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.

     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 65% of its
Appalachian  natural  gas  at  December  31,  2000.

                                      -18-
<PAGE>

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

Some  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.

                                      -19-
<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

          a)     None

          b)     Reports  on  Form  8-K

                 The  Company  filed  a  report on Form 8-K, Item 2, dated
                 December 29, 2000 reporting  the  acquisition  of  assets
                 from  Penn  Virginia  Oil  and Gas Corporation.

                                      -20-
<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  14th  day  of  February,  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
                                               and  Treasurer

                                      -21-
<PAGE>