FORM 10Q
                                 UNITED STATES
                       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, 1998
                                       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: 12,629,440


<PAGE>




                          ITEM I: Financial Statements

                               EQUITY OIL COMPANY
                            Statements of Operations
              For the Nine Months Ended September 30, 1998 and 1997
                                   (Unaudited)

                                                      1998              1997
                                                  ------------       -----------

REVENUES

     Oil and gas sales ......................     $  9,622,792      $ 12,504,373
     Partnership income .....................           23,500           225,000
     Interest income ........................           48,887           113,339
     Other ..................................          178,069           747,620
                                                  ------------      ------------

                                                     9,873,248        13,590,332

EXPENSES

     Operating costs ........................        4,592,540         4,520,122
     Depreciation, depletion and
       amortization .........................        3,700,000         3,300,000
     Leasehold abandonments .................          170,601            82,420
     Equity loss in
           Symskaya Exploration, Inc. .......          399,457           236,589
     3D seismic .............................          431,075              --
     Exploration ............................        1,918,606         1,930,692
     General and administrative .............        1,595,641         1,575,129
     Interest ...............................          959,731           550,458
                                                  ------------      ------------
                                                    13,767,651        12,195,410

Income (loss) before income taxes ...........       (3,894,403)        1,394,922

Provision for (benefit from)
         income taxes .......................       (1,107,843)          501,495
                                                  ------------      ------------

NET INCOME (LOSS) ...........................     $ (2,786,560)     $    893,427
                                                  ============      ============

Basic and diluted net
    income (loss) per common share ..........     $      (0.22)     $       0.07
                                                  ============      ============

Cash dividends declared per share ...........     $        .00      $        .00

Weighted average shares outstanding .........       12,620,885        12,696,093



        The accompanying notes are an integral part of these statements.




<PAGE>


                       EQUITY OIL COMPANY
                    Statements of Operations
     For the Three Months Ended September 30, 1998 and 1997
                           (Unaudited)

                                                      1998              1997
                                                  -----------       -----------

REVENUES

     Oil and gas sales .....................     $  3,105,521      $  3,758,655
     Partnership income ....................            8,000            75,000
     Interest income .......................            8,561            29,821
     Other .................................           76,364           195,463
                                                 ------------      ------------

                                                    3,198,446         4,058,939

EXPENSES

     Operating costs .......................        1,561,678         1,481,187
     Depreciation, depletion and
       amortization ........................        1,250,000         1,100,000
     Leasehold abandonments ................            6,510            41,468
     Equity loss in
           Symskaya Exploration, Inc. ......           80,344            92,752
     3D seismic ............................              302              --
     Exploration ...........................        1,172,724           702,645
     General and administrative ............          498,502           467,111
     Interest ..............................          389,826           226,286
                                                 ------------      ------------

                                                    4,959,886         4,111,449

Loss before income taxes ...................       (1,761,440)          (52,510)

Benefit from income taxes ..................         (510,614)           (4,352)
                                                 ------------      ------------

NET LOSS ...................................     $ (1,250,826)     $    (48,158)
                                                 =============      ============

Basic and diluted net
    loss per common share ..................     $      (0.10)     $      (0.00)
                                                 ============      ============

Cash dividends declared per share ..........     $        .00      $        .00

Weighted average shares outstanding ........       12,629,440        12,678,883



        The accompanying notes are an integral part of these statements.




<PAGE>


                               EQUITY OIL COMPANY
                                  Balance Sheet
                 as of September 30, 1998 and December 31, 1997


                                         (Unaudited)
                                        September 30,    December 31,
ASSETS                                      1998             1997
------                                   ------------    ------------

Current assets:
  Cash and cash equivalents ........   $      50,223    $     378,801
  Accounts and advances receivable .       3,232,001        3,641,535
  Income taxes receivable ..........          41,275           88,174
  Deferred tax asset ...............          17,929           18,934
  Other current assets .............         388,866          514,713
                                       -------------    -------------
                                           3,730,294        4,642,157

Property and equipment .............     116,506,929      113,371,891
Less accumulated depletion,
  depreciation and amortization ....      68,431,805       64,846,514
                                       -------------    ------------- 
                                          48,075,124       48,525,377
Other assets:
  Investment in Raven Ridge
    Pipeline Partnership ...........         229,140          268,821
  Other assets .....................          73,699          105,284
                                       -------------    -------------
                                             302,839          374,105

TOTAL ASSETS .......................   $  52,108,257    $  53,541,639
                                       =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable .................   $   1,402,782    $   1,327,120
  Accrued liabilities ..............         202,251          120,039
  Accrued profit sharing ...........         144,000          188,973
  Income taxes payable .............         546,713          354,002
                                       -------------    -------------
                                           2,295,746        1,990,134


Revolving credit facility ..........      16,500,000       13,978,830
Deferred income taxes ..............       3,298,636        4,851,966
                                       -------------    -------------
                                          19,798,636       18,830,796

Stockholders' equity
  Common stock .....................      12,794,040       12,761,100
  Paid in capital ..................       3,714,493        3,667,707
  Retained earnings ................      14,033,644       16,820,204
  Less cost of treasury stock ......        (528,302)        (528,302)
                                       -------------    -------------
                                          30,013,875       32,720,709

TOTAL LIABILITIES AND
  STOCKHOLDERS' EQUITY .............   $  52,108,257    $  53,541,639
                                       =============    =============

        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, 1998 and 1997
                                   (Unaudited)

                                                         1998           1997
                                                     -----------    -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss) .............................   $(2,786,560) $     893,427
   Adjustments
     Depreciation, depletion and
       amortization ..............................     3,700,000      3,300,000
     Partnership distributions in
       excess of income ..........................        39,681        106,314
     (Gain) loss on
       property dispositions .....................       167,887       (210,063)
     Equity loss in
           Symskaya Exploration, Inc. ............       399,457        236,589
         Change in other assets ..................        31,585         31,586
     Common stock issued for services ............        79,725         29,375
     Decrease in deferred income taxes ...........    (1,552,325)      (334,498)
   Increase (decrease) from changes in:
     Accounts and advances receivable ............       409,534        289,738
     Other current assets ........................       125,847        (72,727)
     Accrued profit sharing ......................       (44,973)       (35,100)
     Accounts payable and accrued
       liabilities ...............................       157,874     (1,117,173)
     Income taxes receivable/payable .............       239,610        346,248
   Net cash provided                                 -----------    -----------
     by operating activities .....................       967,342      3,463,716
                                                     -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Advances to Symskaya Exploration ..............      (399,457)      (236,589)
   Proceeds from sale of properties ..............          --          339,385
   Sale of temporary cash investments ............          --           49,802
   Capital expenditures ..........................    (3,417,633)    (4,656,248)
                                                     -----------    -----------
   Net cash used in
       investing activities ......................    (3,817,090)    (4,503,650)
                                                     -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Purchase of treasury stock ....................          --         (162,706)
   Net borrowings on
          revolving credit facility ..............     2,521,170        700,000
   Net cash provided by financing                    -----------    -----------
      activities .................................     2,521,170        537,294
                                                     -----------    -----------

NET DECREASE IN CASH .............................      (328,578)      (502,640)

CASH AND CASH EQUIVALENTS
   AT BEGINNING OF PERIOD ........................       378,801        787,961
                                                     -----------    -----------

CASH AND CASH EQUIVALENTS
   AT END OF PERIOD ..............................   $    50,223    $   285,321
                                                     ===========    ===========


Supplemental  disclosures of cash flow information:  Cash paid during the period
     for:
          Income taxes                               $   246,185    $   607,694
          Interest                                   $   959,731    $   550,458

        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, 1997. 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, 1998,  and the results of its  operations  for the three and nine
month periods ended September 30, 1998 and 1997, and its cash flows for the nine
month periods ended September 30, 1998 and 1997.

     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 Form 10-Q.  These  financial  statements  should be read in
conjunction  with  the  Company's  1997  Annual  Report  on Form  10-K,  and the
Company's Form 10-Q's for the first and second quarters of 1998.

     The results for the three and nine month periods  ended  September 30, 1998
are not necessarily indicative of future results.

Note 2.  Net Income (Loss) Per Share

     Earnings per share for all periods  presented  has been restated to reflect
the adoption of Statement of Financial  Accounting  Standards No. 128,  Earnings
Per Share ("SFAS 128").  SFAS 128 requires  companies to present basic  earnings
per share, and if applicable, diluted earnings per share, instead of primary and
fully diluted earnings per share. Basic earnings per share excludes dilution and
is computed by dividing net earnings  available  to common  stockholders  by the
weighted  average number of common shares  outstanding  for the period.  Diluted
earnings per share  reflects the potential  dilution that could occur if options
to issue common stock were exercised into common stock.

     Options to purchase  approximately 912,000 shares of common stock at prices
of $3.56 to $6.00 per share were  outstanding  during  the first nine  months of
1998. Options to purchase approximately 922,500 shares of common stock at prices
of $3.56 to $6.00 per share were  outstanding  during  the first nine  months of
1997. The  outstanding  options were not included in the  computation of diluted
earnings per share because the exercise  prices of the options were greater than
the average market price of the Company's common shares during the period. Basic
and  diluted  earnings  (loss)  per share  are the same for each of the  periods
presented.






<PAGE>


                            PART I

                            ITEM 2

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

RESULTS OF OPERATIONS

Financial Results

     The  Company's  financial  results  continue  to be  adversely  affected by
depressed oil prices in 1998. The Company recorded a net loss for the first nine
months this year in the amount of $(2,786,560), or $(.22) per share, compared to
net income for the first nine months of 1997 in the amount of $893,427,  or $.07
per share.  Total revenues for the first nine months of 1998 were $9,873,248,  a
decrease of 27% from revenues of $13,590,332  recorded during the same period of
1997. The decline in revenues  reflects the 36% decrease in oil prices  received
year-to-date in 1998.

     The Company recorded a net loss for the third quarter of 1998 in the amount
$(1,250,826),  or $(.10) per share on revenues of $3,198,446. This compared to a
net loss during the third quarter of 1997 of $(48,158),  or $(.00) per share, on
revenues of $4,058,939.

Operating Activities

     Sharply  reduced  cash flows have caused the Company to decrease the number
of wells drilled in 1998 from the prior year. The Company has  participated in a
total of 11 wells year to date in 1998,  completing 1 oil and 6 gas wells,  with
the remaining wells being plugged and abandoned.  Included in the well count are
10  exploratory  wells.  Six of those  wells have been  completed  as oil or gas
wells, and 4 were dry holes.

     Six wells have been drilled on the Company's 3D projects in the  Sacramento
Basin of California,  5 of which have been successful.  Current plans call for 1
additional well to be drilled in California during the fourth quarter of 1998.

     Included  in  the  1998  well  count  is an  exploratory  well  drilled  in
California on the Company's 16 square mile Merlin 3-D seismic project. The #1-15
Henning,  located in Glenn County,  California,  tested at a rate of 1.4 million
cubic feet per day from  perforations  at 5,565 - 5,568  feet in the  Cretaceous
Forbes  formation  and 5.9 million  cubic feet per day from 5,518 to 5,556 feet.
The well is currently on production from the lower zone at a rate of 1.3 million
cubic feet per day. Equity  operates and has a 50% working  interest in the well
and the Merlin project.

     A second  discovery  on the Merlin  project,  the  Equity  #1-21 Otto Lohse
tested 2.4 million cubic feet per day from  perforations at 5,525-5,540 feet, in
the Cretaceous  Forbes  formation.  In addition,  a second Forbes reservoir from
5,414 - 5,463 feet,  which  drill stem  tested 6.5  million  cubic feet per day,
represents  proved  behind pipe  reserves.  A third well,  the Equity #1-22 Otto
Lohse, was drilled, plugged, and abandoned in the third quarter as a dry hole.

     At the  Company's  Davis Ranch  prospect,  also  located in the  Sacramento
Basin, the Equity #1-8 Westcott drill stem tested 7.5 million cubic feet per day
from the Cretaceous  Forbes formation at a depth of 7,507-7,524  feet. This well
is  currently  producing  2.5 million  cubic feet per day. The Company has a 60%
working interest at Davis Ranch.

     Slawson  Exploration  completed  the  #1-18  Armstrong  during  the  second
quarter.  Equity is a 25% working  interest  participant  in the well and the 16
square mile West Orion Sacramento Basin 3D project,  where the well was drilled.
In addition,  Slawson also  completed the #1-30 Driver and the #1-25 Border Tule
wells, drilled on the same prospect,  in the third quarter. All three wells will
be placed on production during the fourth quarter.

     Following the  successful  production  testing in April of 1998 of a second
pay zone in the  Westport  Oil and Gas  Company  #24-15  Beaver  Creek in Golden
Valley  County,  North  Dakota,  the well was  placed  on  production  at a rate
exceeding  1,100  barrels of oil per day, and continued to produce at an average
daily rate of 1,000 barrels per day during the month of September.  Equity has a
32.5% working  interest in the well.  Westport Oil and Gas Company  operates the
well and holds the remaining working interest.

     The Company also participated in an additional successful  development well
in 1998 at its Siberia Ridge field in Sweetwater County,  Wyoming.  The well was
placed on  production  at a rate of 700 MCFD.  The Company has a 50% interest in
the well.

     The Company  recently  announced  that it has reached an  agreement  with a
private  company to begin a drilling  program  in the  Mancos  formation  on the
Rangely  anticline  in Rio  Blanco  County,  Colorado.  Under  the  terms of the
agreement,  the first five wells  drilled  will be funded 100% by the  Company's
partner.  Each well will earn an interest in 20 acres.  Any well  completed  for
commercial  production  will  be  owned  50% by  Equity.  Using  modern  logging
technology to identify  fracture systems downhole,  and new drilling  techniques
such as  horizontal  drilling,  it may be possible to find new  reserves in this
field,  where production dates back to 1906. Equity owns a 100% working interest
in over 10,000 acres in the shallow Mancos zone,  having reserved  horizons down
to 2,500 feet in its 1943  farmout to  Chevron  of the deeper  Weber  sandstone.
Drilling should begin before the end of 1998.

     The Company is continuing to pursue  additional  outside  financing for its
Symskaya project in Russia.  The Company  recently  announced that its 50% owned
subsidiary,   Symskaya  Exploration,   Inc.  has  entered  into  a  Bottom  Hole
Contribution   Agreement  with  the  Committee  for  Natural  Resources  of  the
Krasnoyarsk Krai in Eastern Siberia to support the drilling of the Averinskaya -
150 well, an exploratory  well that is being drilled near the town of Yeniseysk.
The well is adjacent to the  southern  block of acreage that  Symskaya  holds as
part of its 1.1 million acre  exploration,  development and production  license.
The well is being  drilled to  evaluate  the oil and gas  potential  of the same
geologic section that Symskaya  targeted in the drilling of its Lemok No. 1 well
on the northern acreage block of its license area.

     In exchange for a nominal  payment,  Symskaya will receive all pre-drilling
data from the well,  drilling data acquired during the drilling of the well, and
all final  reports on the well  including  logs,  test  results,  core and drill
cutting samples, and samples of any oil, water or gas recovered during drilling.
In addition,  Symskaya  personnel  will have  complete  access to the drill site
during drilling,  the right to collect drill cuttings and other samples, and the
right to witness all coring and testing.  The well is currently  drilling  below
7,000 feet, and is projected to be drilled to a total depth of 11,500 feet.

CAPITAL RESOURCES AND LIQUIDITY

     Cash, cash equivalents,  and temporary cash investments  totaled $50,223 as
of September  30,  1998, a decrease of $328,578  since  year-end  1997.  Working
capital at September 30, 1998 was $1,434,548, and the Company's ratio of current
assets  to  current  liabilities  was  1.62  to  1.  Cash  flow  from  operating
activities,  also  negatively  impacted by lower oil prices and their  resultant
reduced revenues, decreased from $3,463,716 during the first nine months of 1997
to $967,342 in the same period of 1998.

     Investment  in  property  and  equipment  for the first nine months of 1998
totaled $3,417,633.  Investment in property and equipment for the same period of
1997 totaled  $4,656,248.  As a result of the severely depressed oil prices, and
their negative  effects on cash flows,  the Company has reduced its 1998 capital
budget.  The Company  continues to high-grade  both  exploratory and development
projects based on their assumed risks and rewards,  balancing this with projects
that have specific lease related drilling commitments.  Other projects have been
delayed or deferred until oil prices strengthen and cash flows increase.

     The Company  purchased 51,000 shares of its stock on the open market during
the first  nine  months of 1997,  at an  average  price of $3.19 per  share.  No
treasury stock was purchased during the first nine months of 1998.

     During the first nine  months of 1997,  the  Company  increased  borrowings
under its credit  facility by $700,000,  compared to borrowings of $2,521,170 in
1998,  which were used to fund  investments  in property and  equipment  and for
working  capital  purposes.  On March 30, 1998,  the Company  amended its credit
agreement, increasing the current commitment from $15 million to $18 million. In
addition, on June 24, 1998, the facility was further amended in order to set the
first  principal  payment  date under the  facility to July 1, 2001 from July 1,
1999.

     The  Company's  commitment  under its  borrowing  base  credit  facility is
subject  to a  redetermination  as of July 1 and  January 1 of each  year,  with
estimated  future  prices being  determined  by the  Company's  lender.  Using a
reduced oil price deck, brought about by continued low oil prices, the Company's
borrowing   base  was   lowered   to  $17   million   after  the  July  1,  1998
redetermination,  and the Company was  notified to this effect in  September  of
1998. Accordingly, at September 30, 1998, the Company had approximately $500,000
of remaining availability on the facility. The Company is in compliance with all
its facility covenants.

     The Company believes that existing cash balances,  cash flow from operating
activities, and funds available under the Company's credit facility will provide
adequate resources to meet all of its remaining capital and exploration spending
objectives  for 1998,  which have been  significantly  curtailed  due to low oil
prices.  Should the low oil price environment continue for an extended period of
time,  the Company may have  difficulty in meeting its ongoing  exploration  and
development drilling objectives.  The Company has adequate liquidity to maintain
its operations as they currently exist.


COMPARISON OF THIRD QUARTER 1998 WITH THIRD QUARTER 1997

     Oil and gas sales  decreased 17% in the third quarter of 1998 to $3,105,521
versus  $3,758,655  in the same quarter of last year.  Sharply  lower oil prices
were offset somewhat by increases in both oil and gas production. Total revenues
decreased 21% from 1997 to 1998.

     Oil production increased 11% in the third quarter of 1998, primarily due to
production  from the  Westport  #24-15  Beaver Creek well in North  Dakota.  Oil
production for the quarter was 177,000  barrels,  compared to 159,400 barrels in
the third quarter of 1997. Gas production increased 15% from 524,000 Mcf in 1997
to  600,000  Mcf in 1998.  The  increase  in gas  production  is a result of the
Company's continued successful exploration program in northern California.

     Average  prices  received  for crude oil were $12.04 per barrel  during the
third  quarter of 1998,  down 33% from the $17.99  received in 1997.  Gas prices
also  dropped  during the third  quarter to $1.60 per Mcf in 1998,  compared  to
$1.78 in 1997, a decrease of 10%.

     During the third quarter of 1997, the Company sold its minority interest in
an oil field  technology  research  company.  In connection  with the sale,  the
Company recognized a gain of $175,000,  which is included in other income. There
were no similar transactions during 1998.

     Despite higher  production  levels,  lease  operating  costs increased only
slightly over the prior year. The small increase was accomplished by shutting in
high-cost,  marginal  production during the quarter due to low prices, and lower
value-based  production taxes. The increase in production in 1998 did contribute
to higher depreciation, depletion, and amortization (DD&A) charges. In addition,
DD&A per unit charges increased  slightly from $4.50 per BOE to $4.57 per BOE in
1998.

     Higher exploration  expenses in 1998 resulted from higher dry hole costs in
the third quarter. During the period, the Company drilled 4 dry holes, incurring
total costs of  $745,000.  Dry holes  during the same  quarter of 1996 were only
$337,000.  Included  in  the  1998  third  quarter  dry  holes  were  the  first
exploratory well drilled at the Company's O'Brien Springs 3D project in Wyoming,
where  the  Company   maintained  a  50%  working  interest,   as  well  as  the
aforementioned #1-22 Otto Loshe well in California, also a 50% owned well.

     General and administrative  expenses increased slightly in 1998,  primarily
due to increased  compensation and investor relations expenses.  Higher interest
costs in 1998 reflect the higher amount of debt outstanding  under the Company's
credit facility.

     The income tax benefits recorded for both periods result primarily from the
deferred tax benefits associated with net losses reported.

COMPARISON OF FIRST NINE MONTHS OF 1998 WITH FIRST NINE MONTHS OF 1997

     Oil and  gas  sales  decreased  23% in the  first  nine  months  of 1998 to
$9,622,792 versus $12,504,373 in the same period of last year. This decrease was
caused  by  lower  oil  prices,  partially  offset  by  increased  oil  and  gas
production.  Oil production for the first nine months was 517,000 barrels, up 9%
from 1997 production of 476,000 barrels. Gas production for the period increased
16% to 1,770,000 Mcf from 1,526,000 Mcf in 1997.

     Average  prices  received  for crude oil were $12.54 per barrel  during the
first nine months of 1998,  compared to $19.52  received in 1996,  a decrease of
36%. Gas prices decreased  slightly to $1.84 per Mcf in 1998,  compared to $1.90
in 1997.

     During the first nine months of 1997,  the  Company  recorded a gain on the
sale of certain oil and gas properties of approximately  $325,000.  In addition,
in 1997 the  Company  sold its  minority  interest  in an oil  field  technology
research company.  In connection with the sale, the Company recognized a gain of
$175,000. There were no corresponding events in 1998.

     Total  expenses  in the first nine months of 1998  increased  13% over 1997
levels.  Lease operating costs remained flat, while depreciation,  depletion and
amortization increased 12%, primarily due to increased oil and gas production in
1998.

     The Company incurred 3D seismic charges of $431,075 in 1998 associated with
its Sequoia project in the San Joaquin Basin of California.  The initial well at
Sequoia  has been  delayed  until the first half of 1999.  The  Company  did not
participate in any 3D seismic programs during the first nine months of 1997.

     The Company abandoned certain undeveloped  leaseholds during the first nine
months of 1998  associated  with a Lodgepole  prospect that was acquired in 1995
and 1996. This was the primary cause of a 1998 charge to expense of $170,601 for
leasehold abandonments. The Company did not renew selected leases in the area on
their renewal date due to a lack of prospectivity.

     Higher interest costs in 1998 reflect the higher amount of debt outstanding
under the Company's credit facility.

     The equity loss in Symskaya Exploration increased by approximately $163,000
during the first nine  months of 1998.  This  increase  included a write down of
approximately  $125,000  of accrued  interest  income on a senior  note  between
Symskaya and the Company that had been recognized in prior periods. In addition,
the 1998  increase  included the Company's  share of a bottom hole  contribution
discussed earlier. There were no corresponding events in 1997.

OTHER ITEMS

     In June of 1997, the Financial  Accounting Standards Board issued Statement
of Financial Accounting Standards No. 130, Reporting  Comprehensive  Income. The
Statement  establishes  standards  for  reporting  and display of  comprehensive
income and its components (revenues,  expenses, gains, and losses) in a full set
of general-purpose financial statements.  This Statement is effective for fiscal
years  beginning after December 15, 1997. The adoption of this Statement did not
have a material effect on the Company's financial statements.

     The  Company  has  reviewed  all  recently  issued,  but not  yet  adopted,
accounting standards in order to determine their effects, if any, on the results
of operations or financial  position of the Company.  Based on that review,  the
Company  believes  that none of these  pronouncements  will  have a  significant
effect on current or future earnings or operations.

YEAR 2000

     The  Company  uses  computers  principally  for  processing  and  analyzing
geological and engineering data, map making, and  administrative  functions such
as word processing,  accounting,  and financial reporting.  The Company does not
use  any  software  developed  specifically  for its  own  use,  and all of it's
principal  computer  systems have been  purchased  since  December 31, 1995. The
Company has an ongoing  program to ensure  that its  operational  and  financial
systems will not be adversely affect by year 2000 software  failures.  While the
Company  believes  it is  taking  all  appropriate  steps to  assure  year  2000
compliance,  it is dependent  substantially  on vendor  compliance.  The Company
intends to modify or replace those systems that are not year 2000 compliant.

     The Company is requiring its systems and software vendors to represent that
the services and products provided are, or will be, year 2000 compliant, and has
an on-going  program to test  compliance.  The  Company's  financial  accounting
system is year 2000  compliant.  Software  vendors for the  Company's  technical
software  have  represented  that their  software is on track to be compliant by
mid-1999.  The Company estimates that the cost to redevelop,  replace, or repair
any technology as needed will not be material.

FORWARD LOOKING STATEMENTS

     Forward-looking statements in this Form 10-Q, future filings by the Company
with the Securities and Exchange  Commission,  the Company's  press releases and
oral statements by authorized officers of the Company are intended to be subject
to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that all forward-looking  statements involve risks
and uncertainty, including without limitation, the risk of a significant natural
disaster,  the inability of the Company to ensure  against  certain  risks,  the
adequacy of its loss reserves,  fluctuations in commodity  prices,  the inherent
limitations  in the  inability  to  estimate  oil  and  gas  reserves,  changing
government  regulations,  as well as general market conditions,  competition and
pricing.  The Company  believes that  forward-looking  statements made by it are
based upon  reasonable  expectations.  However,  no assurances can be given that
actual  results  will  not  differ  materially  from  those  contained  in  such
forward-looking  statements.  The  words  "estimate",   "anticipate",  "expect",
"predict",   "believe"  and  similar   expressions   are  intended  to  identify
forward-looking statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

     The answers to items listed under Item 3 are inapplicable or negative.


                                     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 6, 1998            By /s/ Paul M. Dougan
       -----------------------           -------------------
                                         Paul M. Dougan, President
                                         Chief Executive Office

DATE:     November 6, 1998            By /s/ Clay Newton
      ------------------------           ----------------
                                         Clay Newton, Treasurer
                                         Principal Accounting Officer