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, 1999.

                                       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, 1999 was 644,564 shares.

<PAGE>
<TABLE>
<CAPTION>

                          ENERGY  CORPORATION  OF  AMERICA

                                TABLE OF CONTENTS


<S>                                                                      <C>
                                                                       PAGES
PART I  FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets
   December 31, 1999 (unaudited) and June 30, 1999. . . . . . . . . . .   3

Unaudited Condensed Consolidated Statements of Operations
   For the three and six months ended December 31, 1999 and 1998. . . .   5

Unaudited Condensed Consolidated Statements of Cash Flows
   For the six months ended December 31, 1999 and 1998. . . . . . . . .   6

Notes to Unaudited Condensed Consolidated Financial Statements. . . . .   7

Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operation. . . . . . . . . . . . . . . . . . . . . . . . . .  14


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

Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22
</TABLE>

<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
                                                                 1999        1999
                                                              (UNAUDITED)     *
ASSETS
 CURRENT ASSETS
    Cash and cash equivalents . . . . . . . . . . . . . . .  $     14,308  $ 13,101
    Accounts receivable, net of allowance for doubtful
       accounts of $429 . . . . . . . . . . . . . . . . . .        13,046    14,920
    Net utility assets held for sale. . . . . . . . . . . .        66,092    70,625
    Gas in storage, at average cost . . . . . . . . . . . .           369       357
    Income tax receivable . . . . . . . . . . . . . . . . .         3,180     3,180
    Prepaid and other current assets. . . . . . . . . . . .           695     1,338
                                                             ------------  --------
       Total current assets . . . . . . . . . . . . . . . .        97,690   103,521
                                                             ------------  --------

 Property, plant and equipment, net of accumulated
    depreciation and depletion of $87,243 and $82,158 . . .       157,986   158,442
                                                             ------------  --------

 OTHER ASSETS
    Deferred financing costs, net of accumulated
       amortization of $2,047 and $1,647. . . . . . . . . .         5,609     6,009
    Notes receivable, less allowance for doubtful accounts
       of $440. . . . . . . . . . . . . . . . . . . . . . .         3,180     3,384
    Other . . . . . . . . . . . . . . . . . . . . . . . . .        14,983    14,807
                                                             ------------  --------
       Total other assets . . . . . . . . . . . . . . . . .        23,772    24,200
                                                             ------------  --------

 TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . .  $    279,448  $286,163
                                                             ============  ========
<FN>

 *   Condensed  from  audited  consolidated  financial  statements.
</TABLE>

 The accompanying notes are an  integral part of these condensed consolidated
financial  statements.

<PAGE>

<TABLE>
<CAPTION>

 ENERGY  CORPORATION  OF  AMERICA
 CONDENSED  CONSOLIDATED  BALANCE  SHEETS
 (AMOUNTS  IN  THOUSANDS)
-------------------------------------------------------------------------------------
<S>                                                           <C>            <C>
                                                               DECEMBER 31    JUNE 30
                                                                  1999         1999
                                                              (UNAUDITED)       *
LIABILITIES AND STOCKHOLDERS' EQUITY
 CURRENT LIABILITIES
    Accounts payable . . . . . . . . . . . . . . . . . . . .  $     11,486   $ 15,474
    Current portion of long-term debt. . . . . . . . . . . .         2,844      6,618
    Funds held for future distribution . . . . . . . . . . .         5,457      5,378
    Accrued taxes, other than income . . . . . . . . . . . .         4,794      4,583
                                                              -------------  ---------
       Total current liabilities . . . . . . . . . . . . . .        24,581     32,053

 LONG-TERM OBLIGATIONS
    Long-term debt . . . . . . . . . . . . . . . . . . . . .       219,631    219,886
    Gas delivery obligation and deferred trust revenue . . .        22,706     13,839
    Deferred income tax liability. . . . . . . . . . . . . .         2,527      4,877
    Other long-term obligation . . . . . . . . . . . . . . .         1,007      1,031
                                                              -------------  ---------
       Total liabilities . . . . . . . . . . . . . . . . . .       270,452    271,686
                                                              -------------  ---------


 STOCKHOLDERS' EQUITY
    Common stock, par value $1.00; 2,000,000 shares
       authorized; 721,000 shares issued . . . . . . . . . .           721        721
    Class A stock, no par value; 100,000 shares authorized;
       26,000 shares issued. . . . . . . . . . . . . . . . .         2,940      2,940
    Additional paid in capital . . . . . . . . . . . . . . .         4,656      4,656
    Retained earnings. . . . . . . . . . . . . . . . . . . .         7,903     13,598
    Treasury stock and notes receivable arising from the
       issuance of common stock. . . . . . . . . . . . . . .        (7,472)    (7,261)
    Accumulated comprehensive income (loss). . . . . . . . .           248       (177)
                                                              -------------  ---------
       Total Stockholders' equity. . . . . . . . . . . . . .         8,996     14,477
                                                              -------------  ---------

 TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . .  $    279,448   $286,163
                                                              =============  =========
<FN>

 *   Condensed  from  audited  consolidated  financial  statements.
</TABLE>

 The  accompanying  notes  are  an integral part of these condensed consolidated
financial  statements.


<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
                                                               1999      1998       1999       1998
<S>                                                         <C>       <C>       <C>        <C>
 REVENUES:
    Gas marketing and pipeline sales . . . . . . . . . . .  $19,244   $23,196   $ 38,840   $ 52,019
    Oil and gas sales. . . . . . . . . . . . . . . . . . .    5,424     4,864     11,291      9,710
    Well operations and service revenues . . . . . . . . .    1,607     1,595      3,189      3,375
    Other revenue. . . . . . . . . . . . . . . . . . . . .        -         -          -        191
                                                            --------  --------  ---------  ---------
                                                             26,275    29,655     53,320     65,295
                                                            --------  --------  ---------  ---------
 COST AND EXPENSES:
    Gas marketing and pipeline cost. . . . . . . . . . . .   18,847    22,207     37,959     50,257
    Field operating expenses . . . . . . . . . . . . . . .    2,036     1,916      4,022      4,068
    General and administrative . . . . . . . . . . . . . .    2,871     2,666      5,332      5,085
    Taxes, other than income . . . . . . . . . . . . . . .      347       313        676        533
    Depletion and depreciation, oil and gas related. . . .    2,377     2,028      4,413      4,074
    Depreciation of pipelines and equipment. . . . . . . .      727       812      1,465      1,612
    Exploration and impairment . . . . . . . . . . . . . .    1,737       726      2,938      2,811
                                                            --------  --------  ---------  ---------
                                                             28,942    30,668     56,805     68,440
                                                            --------  --------  ---------  ---------
    Loss from operations . . . . . . . . . . . . . . . . .   (2,667)   (1,013)    (3,485)    (3,145)
                                                            --------  --------  ---------  ---------
 OTHER (INCOME) EXPENSE
    Interest . . . . . . . . . . . . . . . . . . . . . . .    6,177     5,017     11,515     10,052
    Gain on sale of assets . . . . . . . . . . . . . . . .       (4)     (369)        (5)    (1,096)
    Other. . . . . . . . . . . . . . . . . . . . . . . . .     (394)     (527)      (604)      (794)
                                                            --------  --------  ---------  ---------
 Loss from continuing operations before income taxes
    and minority interest. . . . . . . . . . . . . . . . .   (8,446)   (5,134)   (14,391)   (11,307)
 Benefit from income taxes . . . . . . . . . . . . . . . .   (2,642)   (1,819)    (4,249)    (3,389)
                                                            --------  --------  ---------  ---------
 Loss from continuing operations before minority interest.   (5,804)   (3,315)   (10,142)    (7,918)
 Minority interest . . . . . . . . . . . . . . . . . . . .        -         -          -          7
                                                            --------  --------  ---------  ---------
 Loss from continuing operations . . . . . . . . . . . . .   (5,804)   (3,315)   (10,142)    (7,925)
 Disposal of utility operations:
    Income from utility operations, net of income tax
       provision of $2,228, $4,243, $2,268 and $2,063. . .    4,414     6,663      4,447      3,443
                                                            --------  --------  ---------  ---------
 NET INCOME (LOSS) . . . . . . . . . . . . . . . . . . . .  $(1,390)  $ 3,348   $ (5,695)  $ (4,482)
                                                            ========  ========  =========  =========

 Basic and diluted earnings per common share:
    Loss from continuing operations. . . . . . . . . . . .  $ (8.72)  $ (5.03)  $ (15.22)  $ (12.01)
    Income from disposed utility operations. . . . . . . .     6.63     10.11       6.67       5.22
                                                            --------  --------  ---------  ---------
    Net income (loss). . . . . . . . . . . . . . . . . . .  $ (2.09)  $  5.08   $  (8.55)  $  (6.79)
                                                            ========  ========  =========  =========
</TABLE>

 The  accompanying  notes  are  an integral part of these condensed consolidated
financial  statements.

<PAGE>
<TABLE>
<CAPTION>

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

                                                                                FOR THE SIX MONTHS ENDED
                                                                                          DECEMBER
                                                                                      1999       1998
<S>                                                                                 <C>        <C>
 CASH FLOWS FROM OPERATING ACTIVITIES
    Net loss from continuing operations. . . . . . . . . . . . . . . . . . . . . .  $(10,142)  $ (7,925)
    Adjustment to reconcile net loss to net cash used by operating activities
       Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      7
       Depletion, depreciation and amortization. . . . . . . . . . . . . . . . . .     6,277      6,086
       Gain on sale of assets. . . . . . . . . . . . . . . . . . . . . . . . . . .        (5)    (1,096)
       Exploration and impairment. . . . . . . . . . . . . . . . . . . . . . . . .     1,969      2,553
       Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (3,058)      (614)
                                                                                    ---------  ---------
                                                                                      (4,959)      (989)
    Changes in assets and liabilities:
    Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,873        116
    Gas in storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       (12)         2
    Prepaid and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . .       643      4,186
    Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (3,692)    (9,855)
    Funds held for future distributions. . . . . . . . . . . . . . . . . . . . . .        78       (838)
    Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       (81)    (4,969)
                                                                                    ---------  ---------
       Net cash used by operating activities from continuing operations. . . . . .    (6,150)   (12,347)
       Net cash used by operating activities from disposed operations. . . . . . .   (22,222)   (15,419)
                                                                                    ---------  ---------
       Net cash used by operating activities . . . . . . . . . . . . . . . . . . .   (28,372)   (27,766)
                                                                                    ---------  ---------
 CASH FLOWS FROM INVESTING ACTIVITIES
    Expenditures for property, plant and equipment . . . . . . . . . . . . . . . .    (7,178)   (14,242)
    Proceeds from sale of assets . . . . . . . . . . . . . . . . . . . . . . . . .        38      1,540
    Notes receivable and other . . . . . . . . . . . . . . . . . . . . . . . . . .      (273)      (133)
                                                                                    ---------  ---------
       Net cash provided (used) by investing activities from continuing operations    (7,413)   (12,835)
       Net cash used by investing activities from disposed operations. . . . . . .   (18,585)    (6,123)
                                                                                    ---------  ---------
       Net cash used by investing activities . . . . . . . . . . . . . . . . . . .   (25,998)   (18,958)
                                                                                    ---------  ---------
 CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from long-term debt . . . . . . . . . . . . . . . . . . . . . . . . .                2,500
    Principal payment on long-term debt. . . . . . . . . . . . . . . . . . . . . .    (4,029)      (184)
    Purchase of treasury stock and other financing activities. . . . . . . . . . .      (211)      (465)
    Prepayment of future gas delivery. . . . . . . . . . . . . . . . . . . . . . .     10,000
    Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 (642)
                                                                                    ---------  ---------
       Net cash provided (used) by financing activities from continuing operations     5,760      1,209
       Net cash provided by financing activities from disposed operations. . . . .    49,817     29,403
                                                                                    ---------  ---------
       Net cash provided by financing activities . . . . . . . . . . . . . . . . .    55,577     30,612
                                                                                    ---------  ---------
       Net increase (decrease) in cash and cash equivalents. . . . . . . . . . . .     1,207    (16,112)
       Cash and cash equivalents, beginning of period. . . . . . . . . . . . . . .    13,101     20,485
                                                                                    ---------  ---------
 Cash and cash equivalents, end of period. . . . . . . . . . . . . . . . . . . . .  $ 14,308   $  4,373
                                                                                    =========  =========
</TABLE>

 The  accompanying  notes  are  an integral part of these condensed consolidated
financial  statements.

<PAGE>

                          ENERGY CORPORATION OF AMERICA
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                DECEMBER 31, 1999


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 integrated
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,
-----------------------------------------------------------------
primarily  through  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 1999,
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,  included  herein,  have  been  made.  The  results  of
operations for the period ended December 31, l999 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  4, amounts in the financial
statements  and  related notes for all periods presented have been reclassified.


3.     Recently  Issued  Accounting  Pronouncements

The  Company  adopted  Statement  of Financial Accounting Standards ("SFAS") No.
130,  "Reporting  Comprehensive  Income",  effective July 1, 1998.  The standard
establishes  rules for the reporting of comprehensive income and its components.
The  Company's  comprehensive  income  (loss)  consists  of  foreign  currency
translation  adjustments.

In  June  1998, SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities" was issued, which is effective for all fiscal quarters of all fiscal
years  beginning  after  June 15, 2000.  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.
The  Company  has  not fully analyzed what impact the provisions of SFAS No. 133
will  have  on  the  Company's  financial  statements.

<PAGE>

4.     Disposal  of  Utility  Operations

On  December  20,  1999,  the  Company  agreed  to  sell its utility operations,
Mountaineer  Gas  Company  and  its  Subsidiaries  ("Mountaineer"), to Allegheny
Energy,  Inc.  ("Allegheny")  pursuant  to  a  stock purchase agreement for $323
million,  which  includes  the  assumption of approximately $100 million of long
term  debt  and  is subject to certain adjustments, resulting in net proceeds of
$223  million  prior  to other adjustments.  The transaction is conditioned upon
the  prior  receipt  of  regulatory  approval,  including  the  approval  of the
Securities  and  Exchange  Commission  pursuant  to  the  Public Utility Holding
Company Act of 1935, the West Virginia Public Service Commission and the Federal
Trade  Commission.  The  Company  has  also entered into a gas sale and purchase
agreement  with  Allegheny  whereby  it  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.



The  utility  operations  have historically been reported as a separate segment.
As a result of the sale, its disposition is considered, for accounting purposes,
to  be  a  discontinued  operation.  Accordingly,  amounts  in  the  financial
statements  and  related  notes  for  all  periods presented have been restated.
Summarized  financial  statements  for  the utility operations is as follows, in
thousands:

<TABLE>
<CAPTION>

<S>                                    <C>                 <C>
                                       December 31, 1999   June 30, 1999
 ASSETS
    Cash and cash equivalents . . . .  $            1,495  $          457
    Accounts receivable . . . . . . .              34,439          22,117
    Prepaid and other current assets.              33,002          24,682
                                       ------------------  --------------
       Total current assets . . . . .              68,936          47,256
    Property, plant and equipment . .             168,747         156,873
    Deferred utility charges. . . . .              17,558          18,785
    Other . . . . . . . . . . . . . .               2,719           2,674
                                       ------------------  --------------
 TOTAL. . . . . . . . . . . . . . . .  $          257,960  $      225,588
                                       ==================  ==============
 LIABILITIES AND STOCKHOLDERS' EQUITY
    Accounts payable. . . . . . . . .  $           10,785  $       24,575
    Short term borrowings . . . . . .              26,827          16,799
    Other current liabilities . . . .              19,566          18,596
                                       ------------------  --------------
       Total current liabilities. . .              57,178          59,970
    Long-term debt. . . . . . . . . .             100,124          60,135
    Deferred income tax liability . .              22,426          22,991
    Other long-term obligation. . . .              11,122          10,819
                                       ------------------  --------------
       Total liabilities. . . . . . .             190,850         153,915
       Total Stockholders' equity . .              67,110          71,673
                                       ------------------  --------------
 TOTAL. . . . . . . . . . . . . . . .  $          257,960  $      225,588
                                       ==================  ==============
</TABLE>

<TABLE>
<CAPTION>

                                               For the Three       For the Six
                                               Months Ended        Months Ended
                                               December 31         December 31
                                             -----------------   -----------------
<S>                                          <C>       <C>      <C>       <C>
                                                1999      1998     1999      1998
 REVENUES:
    Utility gas sales and transportation. .  $53,927   $53,171  $70,833   $67,034
    Other revenue . . . . . . . . . . . . .    1,885     3,603    5,469     7,001
                                             --------  -------  --------  --------
                                              55,812    56,774   76,302    74,035
                                             --------  -------  --------  --------
 COST AND EXPENSES:
    Utility gas purchased . . . . . . . . .   28,936    25,323   33,387    32,741
    Utility operations and maintenance. . .    5,328     4,995   10,912    10,579
    General and administrative. . . . . . .    3,838     3,666    6,542     6,358
    Depreciation of pipelines and equipment    3,771     3,345    5,159     4,622
    Other . . . . . . . . . . . . . . . . .    5,139     6,636    9,713    10,922
                                             --------  -------  --------  --------
                                              47,012    43,965   65,713    65,222
                                             --------  -------  --------  --------
    Income from operations. . . . . . . . .    8,800    12,809   10,589     8,813
                                             --------  -------  --------  --------
 OTHER (INCOME) EXPENSE
    Interest. . . . . . . . . . . . . . . .    2,227     1,789    3,992     3,358
    Other . . . . . . . . . . . . . . . . .      (69)      114     (118)      (51)
                                             --------  -------  --------  --------
    Income before income taxes. . . . . . .    6,642    10,906    6,715     5,506
 Provision for income taxes . . . . . . . .    2,228     4,243    2,268     2,063
                                             --------  -------  --------  --------
 NET INCOME . . . . . . . . . . . . . . . .  $ 4,414   $ 6,663  $ 4,447   $ 3,443
                                             ========  =======  ========  ========
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                                                              For the Six Months Ended
                                                                                       December
                                                                              ------------------------
<S>                                                                            <C>        <C>
                                                                                   1999       1998
 CASH FLOWS FROM OPERATING ACTIVITIES
    Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  4,447   $  3,443
    Adjustment to reconcile earnings to net cash used by operating activities
       Depletion, depreciation and amortization . . . . . . . . . . . . . . .     5,159      4,622
       Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (9,221)   (10,082)
    Changes in assets and liabilities:
    Current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (11,957)    (7,414)
    Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . .    (9,972)    (6,259)
                                                                               ---------  ---------
       Net cash used by operating activities. . . . . . . . . . . . . . . . .   (21,544)   (15,690)
                                                                               ---------  ---------
 CASH FLOWS FROM INVESTING ACTIVITIES
    Expenditures for property, plant and equipment. . . . . . . . . . . . . .   (18,585)    (6,123)
                                                                               ---------  ---------
       Net cash used by investing activities. . . . . . . . . . . . . . . . .   (18,585)    (6,123)
                                                                               ---------  ---------
 CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from long-term debt. . . . . . . . . . . . . . . . . . . . . . .    40,000
    Net short term borrowings . . . . . . . . . . . . . . . . . . . . . . . .    10,028     29,403
    Debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . .      (211)
    Dividends to parent company . . . . . . . . . . . . . . . . . . . . . . .    (8,650)    (7,500)
                                                                               ---------  ---------
       Net cash provided by financing activities. . . . . . . . . . . . . . .    41,167     21,903
                                                                               ---------  ---------
       Net increase in cash and cash equivalents. . . . . . . . . . . . . . .     1,038         90
       Cash and cash equivalents, beginning of period . . . . . . . . . . . .       457      1,062
                                                                               ---------  ---------
 Cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . .  $  1,495   $  1,152
                                                                               =========  =========
</TABLE>

Mountaineer's  various  debt  agreements  contain  certain  restrictions  and
conditions,  including  the  restriction  in  the  payment  of  dividends to the
Company.  As  of December 31, 1999, approximately $2.2 million was available for
the  declaration  of dividends.  Mountaineer's scheduled maturities of long term
debt  for  each  of  the  periods  indicated  is  as  follows  (in  thousands):

<TABLE>
<CAPTION>

For  the  Quarter  Ending:
<S>                          <C>
  March 31, 2000. . . . . .  $      4
  June 30, 2000 . . . . . .         4
  September 30, 2000. . . .         4
  December 31, 2000 . . . .         3
                             --------
  Total current . . . . . .        15

  March 31, 2001. . . . . .         4
  June 30, 2001 . . . . . .         4
For the Fiscal Year Ending:
  June 30, 2002 . . . . . .     3,348
  June 30, 2003 . . . . . .     3,348
  June 30, 2004 . . . . . .     3,348
  June 30, 2005 . . . . . .     3,348
  Thereafter. . . . . . . .    86,724
                             --------
     Total. . . . . . . . .  $100,139
                             ========
</TABLE>

<PAGE>

5.     Earnings  per  Share

A  reconciliation  of  the  components  of basic and diluted net loss per common
share  is  as  follows:

<TABLE>
<CAPTION>

                                                                          Per-Share
                                                       Loss        Shares   Amount
                                                   -------------  -------  --------
<S>                                                <C>            <C>      <C>
Three months ended December 31, 1999
  Basic and Diluted Earnings per Share
     Loss from continuing operations available to
        common shareholders . . . . . . . . . . .  $ (5,804,000)  665,683  $ (8.72)
Six months ended December 31, 1999
-------------------------------------------------
  Basic and Diluted Earnings per Share
     Loss from continuing operations available to
        common shareholders . . . . . . . . . . .  $(10,142,000)  666,407  $(15.22)
Three months ended December 31, 1998
-------------------------------------------------
  Basic and Diluted Earnings per Share
     Loss from continuing operations available to
        common shareholders . . . . . . . . . . .  $ (3,315,000)  659,105   $(5.03)
Six months ended December 31, 1998
-------------------------------------------------
  Basic and Diluted Earnings per Share
     Loss from continuing operations available to
        common shareholders . . . . . . . . . . .  $ (7,925,000)  659,860  $(12.01)
</TABLE>

The  effect  of  outstanding  stock  options  during  the current period was not
included in the computation of diluted earnings per share because to do so would
have  been  antidilutive.  There  were  no  stock options exercisable during the
prior  period.

6.     The  Company  adopted  SFAS  No.  131,  "Disclosures About Segments of an
Enterprise  and  Related Information," in fiscal 1999.  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.

<PAGE>

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

<TABLE>
<CAPTION>

                                             Exploration   Marketing
                                                 and          and
                                             Production    Pipeline    Other     Consolidated
                                             ------------  ----------  --------  -------------
<S>                                          <C>           <C>         <C>       <C>
For the six months ended December 31, 1999
 Sales to unaffiliated customers. . . . . .  $    14,480   $  38,840              $    53,320
 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 . . . . . . . . . . . . . . .      124,327      59,193    29,836        213,356
 Capital expenditures . . . . . . . . . . .        7,057          92        29          7,178
-------------------------------------------  ------------  ----------  --------  -------------
For the six months ended December 31, 1998
-------------------------------------------
 Sales to unaffiliated customers. . . . . .       13,085      44,825       191         58,101
 Intersegment revenues. . . . . . . . . . .                    7,194                    7,194
 Depreciation, depletion, amortization. . .        4,959         556       171          5,686
 Exploratory costs. . . . . . . . . . . . .        2,811                                2,811
 Operating profit (loss). . . . . . . . . .       (1,437)        250    (1,958)        (3,145)
 Interest expense . . . . . . . . . . . . .           60           1     9,991         10,052
 EBITDAX. . . . . . . . . . . . . . . . . .        8,166         665    (1,595)         7,236
 Total assets . . . . . . . . . . . . . . .       88,369      62,539    53,731        204,639
 Capital expenditures . . . . . . . . . . .       11,346         315     2,581         14,242
-------------------------------------------  ------------  ----------  --------  -------------
</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 $3.1
and  $2.9  million,  as  of  December  31,  1999  and  1998,  respectively.

7.     Debt

A rollforward of the debt from June 30, 1999 to December 31, 1999, is as follows
(in  thousands):

<TABLE>
<CAPTION>

                                   Current
                                 Portion Long    Long Term     Total Long
                                   Term Debt       Debt        Term Debt
                                 --------------  -----------  -----------
<S>                              <C>             <C>          <C>
 Balance at June 30, 1999 . . .  $       6,618   $  219,886   $   226,504
   Long term debt payment . . .         (4,029)                   (4,029)
   Reclassify long term debt to
      current portion . . . . .            255         (255)
                                 --------------  -----------
 Balance at December 31, 1999 .  $       2,844   $  219,631   $   222,475
                                 ==============  ===========  ===========
</TABLE>

<PAGE>

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, 2000. . . . . .  $    906
  June 30, 2000 . . . . . .       902
  September 30, 2000. . . .       893
  December 31, 2000 . . . .       143
                             --------
  Total current . . . . . .     2,844

  March 31, 2001. . . . . .        28
  June 30, 2001 . . . . . .        28
For the Fiscal Year Ending:
  June 30, 2002 . . . . . .    19,113
  June 30, 2003 . . . . . .       113
  June 30, 2004 . . . . . .       113
  June 30, 2005 . . . . . .       113
  Thereafter. . . . . . . .   200,123
                             --------
     Total. . . . . . . . .  $222,475
                             ========
</TABLE>

The  Company's  various  debt  agreements  contain  certain  restrictions  and
conditions  among  which  are  limitations  on  indebtedness, funding of certain
subsidiaries, dividends and investments, and certain tangible net worth and debt
and interest coverage ratio requirements.  The agreements require the Company to
maintain  certain  financial  conditions,  including  a  minimum  net  worth,
restriction  on funded debt and restrictions on the amount of dividends that can
be  declared.


8.     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.

<PAGE>

         ITEM 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF
         -------     --------------------------------------------------
                       OPERATIONS AND FINANCIAL CONDITION
                       ----------------------------------


     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  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.  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,  the effect of existing and
future  laws, governmental regulations and the political and economic climate of
the  United  States  and  New  Zealand,  the  effect  of hedging activities, and
conditions  in  the  capital  markets.

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

     On  December  20,  1999, the Company entered into a stock purchase and sale
agreement, a copy of which was filed on the Company's form 8-K filed January 10,
2000, with Allegheny Energy, Inc., wherein the Company agreed to sell all of the
stock  its  wholly  owned  utility, Mountaineer Gas Company and Subsidiaries for
$323  million,  which  includes  the assumption of approximately $100 million of
debt,  ($223  million  net  to  the Company).  The sale is subject to regulatory
approval  by  the  Securities  and  Exchange  Commission  pursuant to the Public
Utility Holding Company Act of 1935, the West Virginia Public Service Commission
and  the  Federal  Trade  Commission.  Subject  to  the  noted  approvals  being
received,  the  Company  expects  that  the transaction will close in the fourth
quarter  of  the  current  fiscal  year.  At  this  time, the Company expects to
realize  an after-tax gain of approximately $100 million on this transaction and
to  net  approximately  $175  million  in  cash  proceeds  from  this  sale.

     The  financial  statements  have been reclassified to exclude the operating
results of this segment from continuing operations, effective December 31, 1999,
and  for  accounting  purposes  classify such results as discontinued operations
(see Note 4).  The following discussion, unless otherwise noted, relates only to
the  Company's  continuing  operations.


COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 1999
--------------------------------------------------------------------------------
AND  1998
---------

The  Company  recorded a net loss from continuing operations of $5.8 million for
the  three months ended December 31, 1999 compared to a net loss from continuing
operations  of $3.3 million for the same period in 1998.  The decrease in income
of  $2.5 million is attributed to the net of a $3.4 million decrease in revenue,
a  $1.7 million decrease in operating expenses, a $0.5 million decrease in other
non-operating  income,  a  $1.2  million increase in interest expense and a $0.8
million  increase  in  income  tax  benefits.

<PAGE>

REVENUES.  Total  revenues  decreased $3.4 million or 11.4% between the periods.
--------
The  decrease  was  due to a 17.0% decrease in gas marketing and pipeline sales,
which  was  offset  by an 11.5% increase in oil and gas sales.  Well and service
operating  revenue  and  other  operating  revenue  remained relatively constant
between  the  periods.

     Revenues  from gas marketing and pipeline sales decreased $4.0 million from
$23.2  million during the period ended December 31, 1998 to $19.2 million during
the  period  ended  December  31,  1999.  The  decrease  in revenue is primarily
attributable  to a 27% decline in marketed gas volumes from 9.3 million Mmbtu to
6.8 million Mmbtu, partially offset by a 13% increase in the average sales price
per  Mmbtu  from  $2.44 for the quarter ended December 31, 1998 to $2.75 for the
quarter  ended  December 31, 1999.  The decline in volumes for the quarter ended
December  31,  1999  was  partially attributable to the expiration of contracts,
which  accounted  for  $4.2 million in sales and 2.0 Bcfe.  Also contributing to
the  decreased  revenue is the reduction of trading activity volumes as a result
of  the  marketing  focus  change.  At  the  end of the last fiscal year, it was
decided  that  the  Company would no longer enter into contracts to purchase and
resell independent producers gas, as this business was becoming more competitive
and  less  economical  to  maintain.

     Revenues  from  oil  and gas sales increased $0.5 million from $4.9 million
for  the  period  ended  December  31, 1998 to $5.4 million for the period ended
December  31,  1999.  The  increase  in  revenue  is primarily attributable to a
166.7%  increase  in the average per barrel oil price from $8.09 to $21.57 and a
12.6%  increase  in  the  average  per Mcf gas price from $2.25 to $2.54 between
December  31,  1998  and  1999.  Mcfe production volumes were comparable between
periods.

     COSTS  AND  EXPENSES.  The  Company's  costs  and  expenses  decreased $2.3
     --------------------
million  or 7.5% during this period primarily as the result of a 15.10% decrease
in  gas  marketing  and pipeline costs offset by a 139.3% increase in impairment
and  exploratory  costs.  Field  and  lease  operating  expenses,  general  and
administrative expenses, taxes other than income and depreciation, depletion and
amortization  costs  remained  relatively  constant  between  the  periods.

     The  $3.4 million decrease in gas marketing and pipeline costs is primarily
the result of a 30.0% decline in purchased gas volumes from 8.6 Bcfe to 6.1 Bcfe
from  December 31, 1998 to December 31, 1999.  Partially offsetting this decline
in  costs was a 12.7% increase in the average price paid for gas purchased, from
$2.44  per  Mmbtu  to  $2.75  per  Mmbtu  between  periods.

Impairment  and  exploratory  expenses  increased  $1.0 million primarily due to
seismic  activity  and  dry  holes  in  New  Zealand.

INTEREST  EXPENSE.  Interest  expense increased $1.2 million between the periods
-----------------
due  to  the  net  addition to long-term debt, including the current portion, of
$18.1  million,  when  comparing  December  31,  1999  to  December  31,  1998.

     BENEFIT  FOR  INCOME  TAXES.  The  benefit  for income taxes increased $0.8
     ---------------------------
million  primarily  because  of  the  increased  pre-tax  loss.

DISPOSAL  OF  UTILITY  OPERATIONS.  Net  income  from  the  utility  operations
---------------------------------
decreased between the periods $2.2 million or 33.8%.  The decrease was primarily
the result of increased utility gas purchased and interest expense.  The utility
gas  purchased  costs  increased  $3.6  million  primarily  due  to a gas supply
agreement, effective November 1, 1998, in which the demand costs associated with
transmission  services  are  included  in  a  fixed  price  per Dth delivered to
Mountaineer's city gate rather than the previous fixed monthly charge.  Interest
expense  increased  $0.4  million  due  primarily  to the additional debt issued
November  1,  1999  of  $10  million  at 7.83% interest and $30 million at 8.09%
interest.

<PAGE>

COMPARISON  OF  RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1999
--------------------------------------------------------------------------------
AND  1998
---------

The  Company recorded a net loss from continuing operations of $10.1 million for
the  six  months  ended December 31, 1999 compared to a net loss from continuing
operations  of $7.9 million for the same period in 1998.  The decrease in income
of $2.2 million is attributed to the net of a $12.0 million decrease in revenue,
an  $11.6  million  decrease  in  operating expenses, a $1.3 million decrease in
other  non-operating  income,  a $1.5 million increase in interest expense and a
$0.9  million  increase  in  income  tax  benefits.

REVENUES.  Total  revenues decreased $12.0 million or 18.3% between the periods.
--------
The  decrease  was  due to a 25.3% decrease in gas marketing and pipeline sales,
which  was  offset  by  a 16.3% increase in oil and gas sales.  Well and service
operating  revenue  and  other  operating  revenue  remained relatively constant
between  the  periods.

     Revenues from gas marketing and pipeline sales decreased $13.2 million from
$52.0  million during the period ended December 31, 1998 to $38.8 million during
the  period  ended  December  31,  1999.  The  decrease  in revenue is primarily
attributable to a 37% decline in marketed gas volumes from 22.1 million Mmbtu to
13.9  million  Mmbtu,  partially  offset by an 18% increase in the average sales
price  per  Mmbtu from $2.31 for the six months ended December 31, 1998 to $2.73
for  the  six  months  ended  December 31, 1999.  The decline in volumes for the
period  ended  December 31, 1999 was partially attributable to the expiration of
contracts,  which  accounted  for  $16.6  million  in  sales and 8.5 Bcfe.  Also
contributing  to  the  decreased  revenue  is  the reduction of trading activity
volumes  as  a  result  of  the  marketing focus change.  At the end of the last
fiscal  year,  it  was  decided  that  the  Company  would  no longer enter into
contracts to purchase and resell independent producers gas, as this business was
becoming  more  competitive  and  less  economical  to  maintain.

     Revenues  from  oil  and gas sales increased $1.6 million from $9.7 million
for  the  period  ended  December 31, 1998 to $11.3 million for the period ended
December 31, 1999.  The increase in revenue is primarily attributable to a 94.9%
increase  in  the average per barrel oil price from $9.93 to $19.35 and an 18.0%
increase  in  the average per Mcf gas price from $2.22 to $2.62 between December
31,  1998  and  1999.  Mcfe  production volumes were comparable between periods.

     COSTS  AND  EXPENSES.  The  Company's  costs  and  expenses decreased $12.2
     --------------------
million  or 17.8% during this period primarily as the result of a 24.5% decrease
in  gas  marketing  and  pipeline  costs.  Field  and  lease operating expenses,
general  and  administrative  expenses,  taxes  other than income, depreciation,
depletion  and  amortization  and  impairment  and  exploratory  costs  remained
relatively  constant  between  the  periods.

     The $12.3 million decrease in gas marketing and pipeline costs is primarily
the  result  of  a 39.8% decline in purchased gas volumes from 20.6 Bcfe to 12.4
Bcfe  from  December  31,  1998 to December 31, 1999.  Partially offsetting this
decline  in  costs  was  a  17.2%  increase  in  the  average price paid for gas
purchased,  from  $2.32  per  Mmbtu  to  $2.72  per  Mmbtu  between  periods.

     INTEREST  EXPENSE.  Interest  expense  increased  $1.5  million between the
     -----------------
periods  due  to  the  net  addition  to  long-term  debt, including the current
portion,  of  $18.1  million,  when  comparing December 31, 1999 to December 31,
1998.

<PAGE>

     OTHER  (INCOME) EXPENSE.  Other income decreased $1.3 million primarily due
     -----------------------
to  the  recognition  of  gains on the sale of property during the prior period.

     BENEFIT  FOR  INCOME  TAXES.  The  benefit  for income taxes increased $0.9
     ---------------------------
million  primarily  because  of  the  increased  pre-tax  loss.

DISPOSAL  OF  UTILITY  OPERATIONS.  Net  income  from  the  utility  operations
---------------------------------
increased between the periods $1.0 million or 29.2%.  The increase was primarily
due  to increased volumes of gas sold resulting from the acquisition of the West
Virginia  assets  of  Shenandoah Gas Company, which included approximately 3,600
additional  customers.  The  increase  in  revenues  was  partially  offset  by
increased utility gas purchased and interest expense.  The utility gas purchased
costs increased $0.6 million primarily due to increased volumes purchased.  This
increase  was  partially  offset  by  a  $2.1  million refund from Mountaineer's
primary  transmission  service  provider  and  a gas supply agreement, effective
November  1,  1998,  in  which  the  demand  costs  associated with transmission
services  are  included in a fixed price per Dth delivered to Mountaineer's city
gate  rather than the previous fixed monthly charge.  Interest expense increased
$0.6 million primarily due to the additional debt issued November 1, 1999 of $10
million  at  7.83%  interest  and  $30  million  at  8.09%  interest.


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

     The  Company's  financial  condition  improved during the current six month
period,  as  the  ratio of current assets to current liabilities (excluding "net
utility  assets held for sale" of $66.1 million for the current period and $70.6
million for the period ended June 30,1999) improved from 1:1 at June 30, 1999 to
1.3:1  at December 31, 1999.  The Company increased its cash and cash facilities
from  $13.1  million  at  June  30,  1999 to $14.3 million at December 31, 1999.

     The  Company's  net  cash used by operating activities decreased from $12.3
million  for  the  six  month period ended December 31, 1998 ("prior period") to
$6.1  million  for  the  six  month  period  ended  December  31, 1999 ("current
period").  The  primary  sources  of  cash  from  continuing  operations for the
current  period  versus  the  prior period were net income (loss) (plus non-cash
charges  for  one-time items, depreciation, depletion and amortization, etc.) of
($1.4)  million  and  $1.0  million,  decreases  in  accounts receivable of $1.9
million  and  $0.1  million, and gas in storage and prepaids of $0.6 million and
$4.2 million, respectively.  These sources were primarily offset by decreases in
accounts  payable of $3.7 million and $9.9 million and decreases of $3.5 million
and  $7.8  million  in  funds  held  and other accrued expenses for the periods,
respectively.

     The  Company  incurred  a  net  cash outflow of $7.4 million from investing
activities  for the current period versus a cash outflow of $12.8 million in the
prior period.  Capital expenditure activities of $7.2 million and $14.2 million,
respectively,  were  related  primarily  to  oil  and  gas  drilling activities.
Investing activities cash used in the prior period was offset by $1.5 million of
cash  received  from  miscellaneous  asset  sales.

     The  Company  s  financing activities in the current period resulted in the
Company's  revolving  credit  facility  being  reduced by $4 million.  This debt
reduction  will  not  be  available  to  draw  upon  in future periods under the
Company's amended and restated credit facility.  In addition, during the current
period  the  Company  purchased  $0.2  million  in treasury stock.  The net cash
inflow  of  $5.8 million for the current period resulted from the receipt of $10
million  in  the  form  of a prepayment under a gas sale agreement (See Note 4).
The  primary  sources of cash from financing activities in the prior period were
net  borrowings  of  $2.5  million  offset  by  treasury stock purchases of $0.5
million  and  dividend  payments  of  $0.6  million.

<PAGE>

     At  December  31,  1999,  the  Company's  principal  sources  of  liquidity
consisted  of $14.3 million of cash, and approximately $2.0 million of available
credit  facilities.  The  Company  has  a $19.0 million revolving line of credit
agreement  that  will  be  subject  to  a  borrowing base redetermination by the
lenders  on  June  30,  2000 and which expires in March 2003.  Under this credit
facility,  $21.3  million  was  outstanding  at December 31, 1999, which will be
reduced  by  September  30,  2000  to $19.0 million, the amount of the borrowing
base.  The Company is highly leveraged with a debt to equity ratio of 25 to 1 at
December 31, 1999.  On October 12, 1999, Moody's Investor Service downgraded the
credit  rating  of  the Company's Senior Subordinated Notes to Caa1 and Standard
and Poor's lowered its credit rating on these notes to single 'B' minus.  In the
event that the sale of Mountaineer and Subsidiaries receives regulatory approval
and  the transaction closes as discussed herein, the debt to equity ratio of the
Company  will  improve  to  an  estimated  1.8  to  1.

     Pursuant  to  the  terms  of the Company's $200 million 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  (a)  to  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) to 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)  to  make capital expenditures in respect to the Company's or its restricted
subsidiaries'  Energy  Business;  to  purchase long term assets that are used or
useful  in  the Energy Business; or (e) to repurchase the Notes.  If the Company
does  not  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.

It is the intention of the Company to seek to reinvest such proceeds into Energy
Business  assets.  A component of the Company's reinvestment strategy will be to
expand  its  exploration  and  development  activities,  both  domestically  and
internationally.  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.  There can be no
assurance  that  the  Company will be able to acquire exploration or development
drilling opportunities or to identify 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.  In addition to cash and available credit facilities,
the  Company  may from time to time seek to raise additional capital in the debt
and  capital  markets.  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.
Other than the reinvestment program described above, the timing of the Company's
capital  expenditures  is  mostly  discretionary  with  no  material  capital
expenditure  commitments.  Consequently, the Company has a significant degree of
flexibility  to  adjust its level of such expenditures as circumstances warrant.
Although  the Company's cash requirements will fluctuate based on timing and the
extent of the interplay of the factors discussed above, management believes that
cash  generated from operations, proceeds from the sale of Mountaineer, together
with  the liquidity provided by existing cash balances and borrowing capability,
will be sufficient to satisfy commitments for capital expenditures, debt service
obligations,  working  capital  needs  and  other cash requirements for the next
year.

<PAGE>

The  Company  believes  that  its  existing  capital  resources,  its mitigating
management  efforts, and its expected fiscal year 2000 results of operations and
cash  flows  from  operating  activities  will  be sufficient for the Company to
remain  in  compliance with the requirements of its Senior Subordinated Debt and
its  Revolving  Credit  Facility.  However,  since the expected fiscal year 2000
results  of  operations  and  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 future exploration and development
drilling  success, the Company can give no assurance that such expectations will
be realized or that debt service or debt covenant violations will not occur.  In
such  instances, the Company may elect to increase debt levels, 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.


     YEAR  2000  COMPLIANCE.  The  Company  has not experienced significant year
     ----------------------
2000  issues  as  steps  were taken to ensure its systems were compliant.  These
steps  include  the  purchase  and  implementation  of an integrated application
software  package,  which  together  with  the  associated hardware and external
consulting  resources  has  cost,  to  date,  approximately  $6.8  million.  In
addition,  the  Company  completed  modification  of  existing  operating  and
application  systems  that  were  not Year 2000 compliant.  The costs associated
with  the  modification  of  existing information systems consisted primarily of
personnel expense for staff dedicated to the effort.  The Company's policy is to
expense  these  costs  as  incurred.  The  Company  also  has invested in new or
upgraded  technology,  which  has definable value lasting beyond 2000.  In these
instances,  such  as  the  implementation of the integrated software application
discussed  above,  the  Company is capitalizing and depreciating such costs over
their  estimated  useful life.  In addition, the Company has not experienced any
problems  due  to  its  significant suppliers, vendors or customers experiencing
Year  2000  issues.


<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)     27     Financial  Data  Schedule

(b)     Reports  on  Form  8-K.  The Company filed a report on Form 8-K, Item 5,
dated  January 10,  2000,  reporting  the  arrangement  to  enter into a stock
purchase  agreement  to sell its utility operations, Mountaineer Gas Company, to
Allegheny  Energy,  Inc.

<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,  2000.



                                                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

<PAGE>

                                  EXHIBIT INDEX


Exhibit
Number          Description
------          -----------

27              Financial  Data  Schedule