FORM 10Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549
(Mark One)

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended    September 30, 1996
                               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: 0-610


                               EQUITY OIL COMPANY
             (Exact name of registrant as specified in its charter)

        COLORADO                           87-0129795

(State or other jurisdiction of         (I.R.S. Employer
 incorporation or organization)        Identification No.)

     Suite 806, #10 West Third South, Salt Lake City, Utah 84101
            (Address of principal executive offices)
                           (Zip Code)

                        (801) 521-3515

          Registrant's telephone number, including area code


      (Former name, former address and former fiscal year,
                  if changed since last report)

     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

        APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
          PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

     Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes      No

              APPLICABLE ONLY TO CORPORATE ISSUERS:
     Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date:   12,739,100


<PAGE>



                          ITEM I: Financial Statements

                               EQUITY OIL COMPANY
                            Statements of Operations
              For the Nine Months Ended September 30, 1996 and 1995
                                   (Unaudited)

                                        1996           1995
                                     ------------  --------

REVENUES

     Oil and gas sales                $11,542,851  $ 9,115,940
     Partnership income                   225,000      225,000
     Interest income                      104,952      178,524
     Other                                245,554      409,131
                                        ---------    ---------

                                       12,118,357    9,928,595

EXPENSES

     Operating costs                    4,110,248    3,525,883
     Depreciation, depletion and
       amortization                     2,850,000    3,100,000
     Leasehold abandonments                31,642       35,500
     Property impairment                        -    2,274,057
     Equity loss in
       Symskaya Exploration, Inc.       5,250,000            -
     3-D seismic                          457,536      237,604
     Exploration                        1,418,578    1,055,118
     General and administrative         1,630,706    1,404,880
     Interest                                   -       66,378
                                       ----------   ----------
                                       15,748,710   11,699,420

Loss before income taxes               (3,630,353)  (1,770,825)


Benefit for income taxes               (1,691,138)    (684,178)
                                        ---------     --------

NET LOSS                              $(1,939,215) $(1,086,647)
                                       ==========  ===========

Net loss per common share                  $(0.15)      $(0.09)
                                       ==========  ===========

Cash dividends declared per share            $.00         $.00

Weighted average shares outstanding    12,734,711   12,563,014



        The accompanying notes are an integral part of these statements.




<PAGE>



                               EQUITY OIL COMPANY
                            Statements of Operations
             For the Three Months Ended September 30, 1996 and 1995
                                   (Unaudited)

                                         1996           1995
                                      -----------   --------


REVENUES

     Oil and gas sales                 $3,974,173   $2,987,833
     Partnership income                    75,000       75,000
     Interest income                       34,047       53,306
     Other                                122,480      101,266
                                        ---------    ---------
                                        4,205,700    3,217,405

EXPENSES

     Operating costs                    1,488,321    1,165,315
     Depreciation, depletion and
       amortization                     1,050,000      850,000
     Leasehold abandonments                16,550       10,000
     Property impairment                        -    2,274,057
     Equity loss in
       Symskaya Exploration, Inc.       5,250,000            -
     3-D seismic                          153,439            -
     Exploration                          492,098      357,560
     General and administrative           411,734      422,618
     Interest expense                           -       36,833
                                        ---------    ---------
                                        8,862,142    5,116,383

Loss before income taxes               (4,656,442)  (1,898,978)

Benefit for income taxes               (1,896,171)    (640,121)
                                        ---------    ---------
NET LOSS                              $(2,760,271) $(1,258,857)
                                       ==========   ==========
Net loss per common share                  $(0.22)      $(0.10)
                                       ==========    =========
Cash dividends declared per share            $.00         $.00

Weighted average shares outstanding    12,746,339   12,617,872




        The accompanying notes are an integral part of these statements.




<PAGE>



                               EQUITY OIL COMPANY
                                    Balance Sheet
                 as of September 30, 1996 and December 31, 1995

                                   (Unaudited)
                                   September 30,  December 31,
ASSETS                                 1996           1995
------                             ----------      ----------

Current assets:
  Cash and cash equivalents       $   491,077     $   511,252
  Temporary cash investments          199,322         955,967
  Accounts and advances receivable  2,733,241       3,016,067
  Income taxes receivable             250,621         502,098
  Other current assets                252,861         378,594
                                   ----------      ----------
                                    3,927,122       5,363,978

Property and equipment            105,085,909      99,242,754
Less accumulated depletion,
  depreciation and amortization    60,329,318      57,549,855
                                   ----------      ----------
                                   44,756,591      41,692,899
Other assets:
  Investment in and note receivable
    from Symskaya Exploration       3,704,253       6,160,442
  Investment in Raven Ridge
    Pipeline Partnership              431,667         540,220
  Other assets                        157,926         189,511
                                    ---------      ----------
                                    4,293,846       6,890,173
                                   ----------      ----------
TOTAL ASSETS                      $52,977,559     $53,947,050
                                   ==========      ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                $ 1,414,335     $ 1,107,925
  Accrued liabilities                  11,250         219,144
  Accrued profit sharing              144,000         148,771
  Income taxes payable                 58,891         156,293
  Deferred income taxes                10,796          10,796
                                    ---------       ---------
                                    1,639,272       1,642,929

Revolving credit facility           7,778,830       4,918,830
Deferred income taxes               6,623,447       8,654,698
                                   ----------      ----------
                                   14,402,277      13,573,528
Stockholders' equity
  Common stock                     12,751,100      12,711,100
  Paid in capital                   3,633,175       3,485,487
  Retained earnings                20,594,791      22,534,006
  Less cost of treasury stock         (43,056)              -
                                   ----------      ----------
                                   36,936,010      38,730,593
TOTAL LIABILITIES AND              ----------      ----------
  STOCKHOLDERS' EQUITY            $52,977,559     $53,947,050
                                   ==========      ==========

        The accompanying notes are an integral part of these statements.




<PAGE>



                               EQUITY OIL COMPANY
                             Statement of Cash Flows
              For the Nine Months Ended September 30, 1996 and 1995
                                   (Unaudited)

                                           1996          1995
                                           ----          ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss .......................      $(1,939,215)   $(1,086,647)
   Adjustments
     Depreciation, depletion and
       amortization                     2,850,000      3,100,000
     Partnership distributions in
       excess of income                   108,553        119,746
     Property dispositions                 31,642         35,500
     Property impairment                        -      2,274,057
     Equity loss in
       Symskaya Exploration             5,250,000              -
     Change in other assets                31,585         10,528
     Common stock issued for services     103,313              -
     Decrease in deferred income taxes (2,031,251)    (1,300,025)
     Increase (decrease) from changes in:
       Accounts and advances receivable   282,826        126,027
       Other current assets               125,733         (4,178)
       Deferred lease revenue                   -       (178,553)
       Accrued profit sharing              (4,771)       (26,473)
       Accounts payable and accrued
         liabilities                       98,516       (271,368)
       Income taxes receivable/payable    154,075        201,946
                                          -------        -------
   Net cash provided
     by operating activities            5,061,006      3,000,560
                                        
CASH FLOWS FROM INVESTING ACTIVITIES:
   Advances to Symskaya Exploration    (2,793,811)    (1,993,049)
   Sale of temporary cash investments     756,645        973,855
   Capital expenditures                (5,945,334)    (5,147,218)
                                       ----------     ---------- 
   Net cash used in
       investing activities            (7,982,500)    (6,166,412)
   
CASH FLOWS FROM FINANCING ACTIVITIES:
   Payment of note payable                      -       (920,000)
   Purchase of treasury stock             (43,056)       (51,181)
   Increase in other assets                     -       (210,568)
   Net borrowings on
      revolving credit facility         2,860,000      3,524,820
   Exercise of incentive
      stock options                        84,375        613,838
                                        ---------      ---------
   Net cash provided by financing
      activities                        2,901,319      2,956,909
                                       
NET INCREASE (DECREASE) IN CASH           (20,175)      (208,943)

CASH AND CASH EQUIVALENTS
   AT BEGINNING OF PERIOD                 511,252        363,342
                                       ----------     ----------
CASH AND CASH EQUIVALENTS
   AT END OF PERIOD                   $   491,077    $   154,399
                                       ==========     ==========
CASH, CASH EQUIVALENTS AND
   TEMPORARY CASH INVESTMENTS
   AT END OF PERIOD                   $   690,399    $ 1,647,272
                                       ==========     ==========

Supplemental  disclosures of cash flow information:  Cash paid during the period
     for:
          Income taxes                 $  175,745      $ 298,093
          Interest                     $        -      $  66,378

        The accompanying notes are an integral part of these statements.


<PAGE>



                          NOTES TO FINANCIAL STATEMENTS

Note 1.  Interim Financial Statements

The accompanying  financial  statements of Equity Oil Company (the Company) have
not been audited by  independent  accountants,  except for the Balance  Sheet at
December 31, 1995.  In the opinion of the  Company's  management,  the financial
statements  reflect the adjustments,  all of which are of a normal and recurring
nature,  necessary to present fairly the financial position of the Company as of
September  30, 1996,  and the results of its  operations  for the three and nine
month periods ended September 30, 1996 and 1995, and its cash flows for the nine
month periods ended September 30, 1996 and 1995.

The financial statements and the accompanying notes to financial statements have
been prepared  according to rules and regulations of the Securities and Exchange
Commission. Accordingly, certain notes and other information have been condensed
or omitted from the interim  financial  statements  presented in this  Quarterly
Report on From 10-Q.  These financial  statements  should be read in conjunction
with the  Company's  1995 Annual  Report on Form 10-K,  and the  Company's  Form
10-Q's for the first and second quarters of 1996.

The results for the three and nine month  periods  ended  September 30, 1996 are
not necessarily indicative of future results.

Note 2.  Net Income (Loss) Per Share

Net income  (loss) per share is based on the weighted  average  number of common
shares  outstanding  during the period.  Primary and fully diluted  earnings per
share are essentially the same.

Note 3. Investment in Symskaya Exploration

Symskaya  Exploration,  Inc, the Company's 50% owned subsidiary,  has determined
that it is not  practical  or  economical  to reenter the Lemok No. 1 well in an
effort to reach the primary Vendian  objective.  As a consequence,  Symskaya has
charged the costs of  drilling  the Lemok No. 1 to expense as of  September  30,
1996.  The  Company's  equity share of the loss is $5.25  million  ($3.3 million
after  taxes).  Further  discussion  of this item can be found under  Results of
Operations in Item 2.

Note 4. Adoption of SFAS #121

Included  in the 1995  figures  is a non-cash  charge  for oil and gas  property
impairment in the amount of $2,274,057  ($1,433,338 after taxes), which resulted
from the Company's  adoption of SFAS No. 121  Accounting  for the  Impairment of
Long Lived Assets and Assets to be Disposed of, effective July 1, 1995.


<PAGE>



                                     PART I

                                     ITEM 2

Management's Discussion and Analysis of Financial Condition and
Results of Operation

RESULTS OF OPERATIONS

Financial Results

         The  Company  recorded a net loss for the first nine  months of 1996 in
the amount of $(1,939,215),  or $(.15) per share,  compared to a net loss during
the same  period of 1995 in the  amount of  $(1,086,647),  or $(.09)  per share.
Included in the 1996 figures is an equity loss in Symskaya Exploration,  Inc. of
$5,250,000 ($3,309,075 net of taxes). Included in the 1995 nine-month figures is
a non-cash charge for oil and gas property impairment of $2,274,057  ($1,433,338
net of taxes) which arose from the Company's  adoption of SFAS #121,  Accounting
for Long Lived Assets and Assets to be Disposed of.

         Total revenues for the first nine months of 1996 were  $12,118,357,  an
increase of 22% over revenues of $9,928,595  recorded  during the same period of
1995.  Cash flow from operating  activities was  $5,061,006,  an increase of 69%
over cash flow from operating activities of $3,000,560 recorded during the first
nine months of 1995.

         The  Company  recorded a net loss for the third  quarter of 1996 in the
amount  $(2,760,271),  or  $(.22)  per share on  revenues  of  $4,205,700.  This
compared  to a net loss  during the third  quarter of 1995 of  $(1,258,857),  or
$(.10) per share, on revenues of $3,217,405.

         Despite the negative financial results that were reported for the three
and nine month periods ended  September 30, 1996, the Company  continues to make
significant progress in its areas of focus.

Domestic Exploration Drilling

         The Company earlier reported the testing of the eleventh successful gas
well drilled using 3-D seismic  technology in the Grimes area of the  Sacramento
Basin in northern  California.  The well,  the #1-33 Jacob,  tested gas during a
drill stem test from the Forbes  formation  at a rate of 5.1 million  cubic feet
per day. In addition to the zone tested, additional potentially productive zones
have been identified by electric logs.  Equity has a 25% working interest in the
well, which is operated by Slawson Exploration, Inc.

          The #1-33 Jacob is the eleventh well drilled, and the tenth successful
well, on the 42 square mile Orion 3-D survey which was conducted in 1995.  Seven
of the wells have been  drilled in 1996 and the other four were drilled in 1995.
One well is presently  drilling and five  additional  wells are  scheduled to be
drilled  before year end. Of the total wells drilled on the Orion  survey,  five
are currently on production,  and the balance should be on production by the end
of the year.  Initial  production  rates for the wells range from 1 to 5 million
cubic feet per day.  Production  from the wells is  presently  being sold in the
California  spot market where prices over the last three months have ranged from
$1.69 to $2.09 per million BTU.

         In addition to wells in the Orion survey,  Equity has  participated  in
four other wells in the Grimes area and five other 3-D surveys  resulting in two
completions and two dry holes. Equity intends to drill three additional wells on
these  surveys   during  the  fourth  quarter  of  1996.  The  Company  is  also
participating  in two  additional 3-D surveys in the fourth quarter of 1996. The
first,  which is now  underway,  is a sixteen  square  mile  survey  operated by
Slawson Exploration, Inc. in which Equity has a 25% working interest. The second
is a seventeen  square mile survey being operated by Equity in which the Company
currently has a 100% working interest.

         The successful drilling on the Orion survey, resulting in a 91% success
rate to date, is a dramatic example of the utilization of 3-D seismic imaging to
locate gas in the Grimes area. Based upon the seismic interpretation  experience
and the drilling  success to date, the Company believes that, in addition to the
wells  that  will be  drilled  by year end 1996 on the  Company's  3-D  surveys,
additional  well sites could be  developed  using 3-D  technology  in the Grimes
area.

<PAGE>

         Equity also  participated in the initial  exploratory well on a project
developed by the Company's  exploration staff, the North Riley Ridge Prospect in
Sublette  County,  Wyoming.  The well was  drilled  to a depth of 8,630 feet and
encountered 48 feet of net pay in the Frontier formation. After stimulation, the
well  flowed at a rate of 3.6  million  cubic  feet of natural  gas per day.  In
addition to the Frontier  zone,  the well  encountered 42 feet of net pay in the
shallower Baxter zone, which will be tested at a later date.

         The  Company  has an 18.75%  working  interest  in this well,  which is
located on the 12,000 acre North Riley Ridge Unit.  The well is currently  being
tied into production,  and offset drilling  activity will begin in the summer of
1997.

Development Drilling

         The Company has begun to focus its exploitation  efforts on some of the
properties  that were  purchased  in 1995.  The Sage Creek Unit #21, in the Sage
Creek Field in Big Horn County, Wyoming, was drilled during the first quarter of
1996,  and has been  completed  as a  producing  oil well.  Equity  has a 46.25%
working interest in the well. This well is significant  since the success of its
completion has the potential to set up other infill  drilling  opportunities  in
the Sage Creek field.

Acquisitions

          The Company has made two acquisitions of proved developed oil reserves
so far in 1996,  both in  Colorado.  The first added  332,000  barrels of proved
developed  reserves at a cost of $1.4  million,  or $4.22 per barrel,  and added
approximately  100  barrels  per day of  production.  The second  added  292,000
barrels  of heavy  oil at a cost of  $386,000,  or $1.32 per  barrel,  and added
approximately 130 barrels per day of production. In each case, the Company has a
100% working interest and operates the properties.  In addition, the Company has
also acquired 42,000 barrels of proved developed reserves at properties where it
already  owns  interests.  In addition  to the  reserves  associated  with these
purchases,  each  one of them  has the  potential  to add  incremental  reserves
through recompletion of existing wells and infill drilling.

International Exploration in Russia

         As mentioned  previously,  Symskaya  Exploration,  Inc,  (Symskaya) the
Company's  50% owned  subsidiary,  has  determined  that it is not  practical or
economical  to  reenter  the Lemok No. 1 well in an effort to reach the  primary
Vendian objective. As a consequence,  Symskaya has charged the costs of drilling
the Lemok No. 1 to expense as of September 30, 1996. The Company's  equity share
of the loss is $5.25 million ($3.3 million after taxes).

          The Company is  continuing  to evaluate the testing  results from four
zones  that  were a  secondary  target in the  drilling  of the Lemok No. 1. The
evaluation  of the zones has included the analysis of fluid data and bottom hole
pressure  data  recovered  during  testing.  Resistivity  data obtained from the
recovered  fluids have been used to reinterpret the electric logs run during the
drilling of the well,  and confirmed the presence of  hydrocarbons  in the three
lower zones that were tested.  However,  this  reinterpretation  also shows that
these zones have high water  saturations,  and as a  consequence  tested  water.
Analysis of the test data from the fourth zone also  confirmed  the  presence of
hydrocarbons  as  seen  in  cores,   logs,  and  drill  cuttings.   Furthermore,
reinterpretation  of the  electric  logs in this zone using  accurate  formation
water resistivity indicates that portions of the zone could have the capacity to
produce measurable hydrocarbons.  The inability of this zone to produce is still
being investigated,  including an ongoing independent evaluation of the data. As
reported earlier, drilling at the well was terminated at a total depth of 14,102
feet due to mechanical  problems  prior to  penetrating  and testing the primary
target in the Vendian formation at an estimated total depth of 14,500 feet.

         Based on the data  collected  and  analyzed to date,  Symskaya  and the
Company believe that the project remains  prospective,  and Symskaya is actively
soliciting  partners to participate in further exploration and fund the drilling
of a second  well at the  project.  If  Symskaya  is unable  to find a  suitable
partner to fund the  drilling  of a second  well,  and  consequently  decides to
suspend operations at the project and write off the remaining capitalized costs,
the Company will be required to recognize an additional equity loss in Symskaya.
The Company's remaining investment in Symskaya was approximately $3.7 million as
of September 30, 1996.

<PAGE>

CAPITAL RESOURCES AND LIQUIDITY

         Cash, cash equivalents, and temporary cash investments totaled $690,399
as of September 30, 1996, a decrease of $776,820 since  year-end  1995.  Working
capital at September 30, 1996 was  $2,287,850,  down from $3,721,049 at December
31, 1995. The Company's ratio of current assets to current  liabilities was 2.40
to 1 at  September  30,  1996,  compared  to 3.26  to 1 at  December  31,  1995.
Decreases  in cash and  working  capital  result  from the  Company's  increased
drilling  program in 1996. Cash provided by operating  activities was $5,061,006
in the first nine months of 1996,  69% higher  than the same  period of 1995,  a
direct reflection of the increased oil and gas sales during 1996.

         Investment in property and equipment for the first nine months of 1996,
including  advances to Symskaya  Exploration and proved  property  acquisitions,
totaled  $8,739,145,  a  22%  increase  from  the  amount  recorded  during  the
corresponding  nine months of 1995.  Approximately  $2.8 million was advanced to
Symskaya during the first nine months of 1996,  compared to  approximately  $2.0
million during the same period of 1995.

         The Company has drawn down its credit  facility by $2.86 million during
1996,  compared to $3.52  million in 1995,  with funds  being used for  property
acquisitions and other working capital needs.

          The Company  believes  that  existing  cash  balances,  cash flow from
operating  activities,  and the remaining $12.2 million borrowing capacity under
the  revolving  credit  facility  will  provide  adequate  resources to meet its
capital, exploration, and acquisition spending objectives.

COMPARISON OF THIRD QUARTER 1996 WITH THIRD QUARTER 1995

         Oil  and  gas  sales  increased  33% in the  third  quarter  of 1996 to
$3,974,173  versus  $2,987,833 in the same quarter of last year. Higher revenues
were a function of increases in oil and gas prices,  as well as increases in gas
production. Total revenues increased 31% from year to year.

         Oil  production  remained  constant  at  154,000  barrels  in the third
quarter of 1995 and 1996. Gas production  increased 24% from 318 Mmcf in 1995 to
395 Mmcf in 1996.  The  increase  in gas  production  is a direct  result of the
Company's successful exploration program in northern California.

         Average prices received for crude oil were $22.48 per barrel during the
third  quarter of 1996,  up 28% from the  $17.60  received  in 1995.  Gas prices
likewise  increased  to $1.30  per Mcf in  1996,  compared  to $.87 in 1995,  an
increase of 49%.

          Increases in operating  costs  reflect the addition of the  properties
acquired by the  Company  during the past 12 months.  During  that time  period,
Equity has acquired interests in 75 additional  producing wells. The addition of
the properties  aided the Company in increasing gas production,  and also helped
arrest  declining  oil  production.  The cost of these  wells  was  added to the
Company's depletion base, which, along with increased gas production,  accounted
for the 1996 third quarter increase in depreciation, depletion, and amortization
charges.

         Higher  exploration  expenses in 1996 result from higher lease  rentals
assoicated with the Company's increased activity in California, higher dry holes
costs in 1996,  and  increased  exploration  staffing.  In  addition  to  higher
exploration costs, the Company's  California  projects required increased use of
3-D seismic  technology.  During the third quarter of 1996, the Company incurred
3-D charges of $153,000,  while no such expenses  were incurred  during the same
period of 1995.

         As  discussed  previously,  during the third  quarter of 1996  Symskaya
Exploration, Inc, the Company's 50% owned subsidiary,  determined that it is not
practical  or  economical  to reenter the Lemok No. 1 well in an effort to reach
the primary Vendian objective. As a consequence,  Symskaya has charged the costs
of drilling the Lemok No. 1 to expense as of September  30, 1996.  The Company's
equity share of the loss is $5.25 million ($3.3 million after taxes).

          Included  in the 1995  figures  is a  non-cash  charge for oil and gas
property  impairment in the amount of $2,274,057  ($1,433,338  after tax), which
arose from the Company's adoption of SFAS #121, Accounting for the Impairment of
Long Lived Assets and Assets to be Disposed of, effective July 1, 1995.

         The income tax benefits recorded for both periods result primarily from
the  deferred  tax  benefits  associated  with  the  equity  loss  and  property
impairment charge discussed earlier.

<PAGE>

COMPARISON OF FIRST NINE MONTHS OF 1996 WITH FIRST NINE MONTHS OF 1995

         Oil and gas sales  increased  27% in the first  nine  months of 1996 to
$11,542,851 versus $9,115,940 in the same period of last year. This increase was
brought about  principally by stronger oil prices,  which were up 17% on average
from year to year. Oil production for the first nine months was 468,000 barrels,
up slightly from 1995  production of 459,000  barrels.  Gas  production  for the
period increased 50% to 1,440 Mmcf from 963 Mmcf in 1995.

         Average prices received for crude oil were $20.51 per barrel during the
first nine months of 1996,  compared to $17.60 received in 1995. Gas prices also
increased  to $1.35 per Mcf in 1996,  compared to $1.08 in 1995,  an increase of
25%.

         As discussed earlier, increases in operating costs reflect the addition
of the properties acquired by the Company during the past 12 months.

          Depreciation,  depletion and amortization  (DD&A) charges decreased by
$250,000 in 1996 over 1995 levels.  The majority of the decrease is attributable
to the July 1, 1995 adoption of SFAS #121  mentioned  previously,  which removed
$2.2  million  from the DD&A base almost  entirely  associated  with  marginally
economic,  high-cost  wells with high  depletion  rates.  These  decreases  were
partially  offset by DD&A charges  associated  with  properties  acquired by the
Company during the past 12 months.

         Higher  exploration  expenses in 1996 result from higher lease  rentals
assoicated with the Company's increased activity in California, higher dry holes
costs in 1996,  and  increased  exploration  staffing.  In  addition  to  higher
exploration costs, the Company's  California  projects required increased use of
3-D  seismic  technology.  During the first  nine  months of 1996,  the  Company
incurred 3-D charges of $458,000, compared to $238,000 during the same period of
1995.  Increases in general and administrative costs are primarily due to higher
compensation  expenses,  as well as  increased  insurance,  legal,  and investor
relations fees.

         The income tax benefits recorded for both periods result primarily from
the  deferred  tax  benefits  associated  with  the  equity  loss  and  property
impairment charge discussed earlier.

                                     PART II

                                OTHER INFORMATION

         The answers to items listed under Part II are inapplicable or negative.

                                   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
undersigned thereunto duly authorized.

                                        EQUITY OIL COMPANY
                                           (Registrant)



DATE:     November 12, 1996            By /s/ Paul M. Dougan
       -----------------------           -------------------------
                                         Paul M. Dougan, President


DATE:     November 12, 1996            By /s/ Clay Newton
       -----------------------           -------------------------
                                         Clay Newton, Treasurer