SECURITIES & EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q


                  QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                    OF THE SECURITITES EXCHANGE ACT OF 1934



For the Quarter Ended September 30,1999 Commission File Number: 0-5781


                             HAWKS INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)


            Wyoming                                         83-0211955
   (State or other jurisdiction of                          (I.R.S. Employer
   incorporation or organization)                      Identification Number)


                     913 Foster Road, Casper, Wyoming 82601
                    (Address of principal executive offices)


Registrant's telephone number, including area code       (307) 234-1593


                                      N/A
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 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_
    -


Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.


     Class                              Outstanding at September 30, 1999
Capital Stock, $.01 par value                           1,326,705

<PAGE>





                                     INDEX
                                     -----


                                                                    PAGE

PART I              FINANCIAL INFORMATION                             3


                    Consolidated Balance Sheets
                         September 30, 1999 and December 31, 1998     4


                    Consolidated Statements of Operations
                         Three months and nine months ended
                         September 30, 1999 and 1998                  5


                    Consolidated Statements of Cash Flows
                         Nine months ended September 30, 1999
                          and 1998                                    6


                    Notes to Consolidated Financial Statements        7


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


PART II             OTHER INFORMATION                                15
<PAGE>








                         PART I: FINANCIAL INFORMATION

The accompanying unaudited Consolidated Financial Statements have been  prepared
in accordance with the instructions to Form 10-Q  and do not include all of  the
information and footnotes required  by generally accepted accounting  principles
for  complete  financial  statements.    In  the  opinion  of  management,   all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included.

These statements should be read in conjunction with the Financial Statements and
notes thereto included in the Company's  Annual Report to Shareholders and  Form
10K for the year ending December 31, 1998.

This quarterly  report contains  some  forward-looking statements  about  future
operations and  expectations of  Hawks Industries,  Inc. and  its  Subsidiaries.
Management believes  they are  reasonable representations  of Hawks  Industries,
Inc.  expected  performance  at  this  time.    Actual  results  may  vary  from
Management's stated expectations and projections.

<PAGE>
<TABLE>
<CAPTION>
                    HAWKS INDUSTRIES. INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS

                                                                 September       December
                                                                    30,             31,
                                                                    1999           1998
                                                                    ----           ----
                                                                (Unaudited)
<S>                                                             <C>             <C>
       ASSETS
       ------
CURRENT ASSETS
 Accounts Receivable                                          $     582,000   $    425,000
 Short-term investments                                             200,000        202,000
 Cost on uncompleted contracts in excess of related billings         50,000         15,000
 Other current assets                                                70,000         64,000

   Total current assets                                             958,000        766,000

PROPERTY AND EQUIPMENT, net (successful efforts method)           1,620,000      1,703,000

INVESTMENTS AND OTHER ASSETS
 Note receivable                                                     30,000         35,000
 Land investment                                                    196,000        196,000
 Available for sale investment                                      100,000        100,000
 Other assets                                                       237,000        257,000

                                                                    563,000        588,000

                                                              $   3,141,000   $  3,057,000


            LIABILITIES AND SHAREHOLDERS' EQUITY
             ------------------------------------
CURRENT LIABILITIES
 Notes payable                                                $     225,000   $    203,000
 Current maturities of long-term debt                                89,000        128,000
 Accounts payable                                                   183,000        195,000
 Accrued liabilities                                                 66,000         36,000

   Total current liabilities                                        563,000        562,000

LONG-TERM DEBT                                                      310,000        340,000

CONTINGENT LIABILITY (See Note 4)                                      -               -
SHAREHOLDERS' EQUITY
 Capital stock:
 Preferred stock, $.01 par value, authorized 997,000
  shares: no shares issued                                             -               -
 Common stock, $.01 par value, authorized 5,000,000 shares
  issued 1,351,513 in 1999 and1998                                   13,000         13,000
 Capital in excess of par value of common stock                   2,879,000      2,880,000
 Retained (deficit)                                                (600,000 )     (731,000 )
 Less Common Stock held in treasury at cost, 24,808 and 6,175
  Shares in 1999 and 1998 respectively                              (24,000 )       (7,000 )

                                                                  2,268,000      2,155,000

                                                              $   3,141,000   $  3,057,000


<FN>
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                    HAWKS INDUSTRIES, INC. AND SUBSIDIARIES

                     CONSOLIDATED STATEMENTS OF OPERATIONS
         Three Months and Nine Months Ended September 30, 1999 and 1998
                                  (Unaudited)
                                                       Three Months Ended           Nine Months Ended
                                                          September 30,               September 30,
<S>                                                  <C>           <C>           <C>           <C>
                                                       1999          1998          1999          1998
                                                       ----          ----          ----          ----
Operating Revenue:
 Oil and gas                                       $    45,000   $    34,000   $   116,000   $   176,000
 Environmental                                         555,000       560,000     2,054,000     1,680,000
 Gain on sale of assets                                  8,000           -           9,000         3,000

                                                       608,000       594,000     2,179,000     1,859,000

Operating expenses:
 Oil and gas                                            11,000        (8,000)       30,000        35,000
 Environmental                                         572,000       462,000     1,647,000     1,384,000
 Deprecation, depletion and amortization                53,000        50,000       243,000       156,000
 General and administrative                             28,000        36,000        98,000       152,000

                                                       664,000       540,000     2,018,000     1,727,000

Operating Income (Loss) from operations                (56,000)       54,000       161,000       132,000
Other income (expense):
 Other income                                            3,000         3,000         6,000        16,000
 Interest Income                                         4,000         3,000        10,000        10,000
 Interest expense                                      (15,000)      (17,000)      (46,000)      (56,000 )
 Sales of Buildings                                         -             -             -         48,000

Income (loss) Before Taxes                             (64,000)       43,000       131,000       150,000

Provision for taxes:
 Current                                                    -             -             -             -

Net Income (loss)                                  $   (64,000)  $    43,000   $   131,000   $   150,000

Weighted average number of
 Common shares outstanding                           1,309,999     1,351,513     1,310,512     1,351,513

Income (loss) per common share                     $      (.05)  $       .03   $       .10   $       .11



<FN>
See Notes to Consolidated Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                    HAWKS INDUSTRIES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS
                 Nine Months Ended September 30, 1999 and 1998
                                  (Unaudited)
                                                                1999          1998
                                                                ----          ----
<S>                                                           <C>           <C>
Cash flows from operating activities:
 Income from operations                                     $   131,000   $   150,000
 Adjustment to reconcile net income to net cash provided:
  Depreciation, depletion and amortization                      243,000       156,000
  Impairment of non producing oil and gas property                 -            4,000
  Gain on sale of assets                                         (9,000 )     (51,000 )
  Change in operating assets and liabilities:
   Increase in accounts receivable                             (157,000 )    (227,000 )
   Decrease in short-term investments                             2,000         3,000
   Increase in cost in excess of billings and other current
    assets                                                      (41,000 )     (35,000 )
   Increase (Decrease) in accounts payable and accrued
    expenses                                                     18,000       (22,000 )

Net cash flow provided by (used in) operating activities        187,000       (22,000 )


Cash flows from investing activities:
 Purchases of property and equipment                           (162,000 )    (196,000 )
 Proceeds from sale of properties                                11,000       457,000
 Decrease (increase) in other assets                             20,000       (47,000 )
 Decrease in notes receivable                                     5,000         4,000
 Decrease in land investment                                      -             6,000
 Increase in available for sale investments                       -          (100,000 )

Net cash flow provided by (used in) investing activities       (126,000 )     124,000

Cash flows from financing activities:
 Proceeds from debt obligations incurred                         94,000       183,000
 Reduction of debt obligations                                 (141,000 )    (283,000 )
 Purchase of common stock                                       (18,000 )        -

Net cash used in financing activities:                          (65,000 )    (100,000 )

Increase (Decrease) in cash and cash equivalents                 (4,000 )       2,000
Cash and cash equivalents at beginning of year                   60,000        30,000

Cash and cash equivalents at end of nine months             $    56,000   $    32,000



<FN>
See Notes of Consolidated Financial Statements
</TABLE>
<PAGE>

                    HAWKS INDUSTRIES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1: Property and Equipment

Property and equipment at September 30, 1999 and December 31, 1998 consists of
the following:
<TABLE>
<CAPTION>
                                                                          1999         1998
                                                                          ----         ----
<S>                                                                     <C>         <C>
Nonproducing oil and gas properties, net of valuation allowance of
 $2,000 in 1999 and $2,000 in 1998                                    $    14,000  $    14,000
Producing oil and gas properties                                        1,656,000    1,655,000
Furniture and fixtures                                                    377,000      369,000
Transportation equipment                                                  207,000      200,000
Building and leasehold improvements                                       375,000      371,000
Engineering and lab equipment                                           1,359,000    1,258,000
Other                                                                      59,000       59,000

                                                                        4,047,000    3,926,000
Less accumulated depreciation and depletion                             2,427,000    2,223,000

                                                                      $ 1,620,000  $ 1,703,000


</TABLE>
Note 2.  Notes Payable, Long-Term Debt and Pledged Assets

Notes payable at September 30, 1999 and December 31, 1998 are as follow:
<TABLE>
<CAPTION>
                                                                          1999          1998
                                                                          ----          ----
<S>                                                                     <C>           <C>
Revolving line of credit $200,000, interest at 6.25% maturing
  October 22,1999 collateralized by certificate of deposit            $  160,000   $   138,000
Revolving line of credit $155,000 interest at Citibank Prime plus
  3/4%, (8.5% at September 30, 1999) maturing March 16, 2000,
  collateralized by oil and gas properties                                65,000        65,000

                                                                      $  225,000   $   203,000


</TABLE>
Long-term debt at September 30, 1999 and December 31, 1998 is as follows:
<TABLE>
<CAPTION>
                                                                          1999          1998
                                                                          ----          ----
<S>                                                                     <C>           <C>
Mortgage notes payable to W.D. Hodges and Jim Ferris Properties,
  interest at 9% payable $971 per month until September 17, 2013,
  collateralized by building                                          $   92,000   $    95,000
Mortgage note payable to bank, interest set at 4% above U.S.
  Treasury bill index for one year each June 1st, (8.66% at
  September 30, 1999), payable $1,181 per month including interest
  until April 1, 2003, collateralized by office building                  92,000        96,000
</TABLE>
<PAGE>
                    HAWKS INDUSTRIES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note  2.  Notes Payable, Long-Term Debt and Pledged Assets (cont.)

<TABLE>
<CAPTION>
                                                                          1999          1998
                                                                          ----          ----
<S>                                                                     <C>           <C>
Note payable, State of Wyoming, interest at 4%, due in monthly
  installments of approximately $1,000 including interest until
  paid, unsecured                                                     $      -     $     6,000
Installment loans payable, due at various times May 2001 to August
  2002, interest rates from 9.0% to 10% secured by equipment              86,000        37,000
Note payable Wyoming Industrial Development Corporation, interest at
  7.33%, payable $3,991 per month including interest until October
  5, 2002, collateralized by equipment                                   129,000       157,000
Note payable Wyoming Industrial Development Corporation, interest at
  6.96%, payable $4,475 per month including interest.                        -          77,000

                                                                         399,000       468,000
Less current maturities                                                   89,000       128,000

                                                                      $  310,000   $   340,000
</TABLE>
Aggregate maturities of long-term debt as follow:
<TABLE>
<S>                   <C>
1999                $    22,000
2000                     91,000
2001                     86,000
2002                     52,000
2003                     13,000
Thereafter              135,000

                    $   399,000

</TABLE>

Actual cash payment for interest during the periods ended September 30, 1999 and
1998 were $47,000 and $56,000 respectively.
<PAGE>
                    HAWKS INDUSTRIES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 3. Financial Information Relating to Industry Segments
<TABLE>
<CAPTION>
                                                       1999          1998
                                                       ----          ----
<S>                                                 <C>           <C>
Sales to unaffiliated customers:
 Oil and gas industry                             $    116,000  $    176,000
 Environmental testing and management industry       2,063,000     1,683,000

                                                  $  2,179,000  $  1,859,000


Operating profit (loss):
 Oil and gas industry                             $    (83,000) $     29,000
 Environmental testing and management industry         327,000       219,000
 Unallocated corporate expenses                        (83,000)     (116,000)

                                                  $    161,000  $    132,000


Identifiable assets:
 Oil and gas industry                             $    625,000  $    788,000
 Environmental testing and management industry       1,367,000     1,247,000
 Corporate assets                                    1,149,000     1,187,000

                                                  $  3,141,000  $  3,222,000


Capital expenditures:
 Oil and gas industry                             $      1,000  $      3,000
 Environmental testing and management industry         161,000       193,000

                                                  $    162,000  $    196,000


Depreciation, depletion and amortization:
 Oil and gas industry                             $    142,000  $     70,000
 Environmental testing and management industry          89,000        79,000
 Other depreciation, depletion and amortization         12,000        11,000

                                                  $    243,000  $    160,000


Interest Income:
 Oil and gas industry                             $       -     $      -
 Environmental testing and management industry            -            -
 Corporate interest                                     10,000        10,000

                                                  $     10,000  $     10,000

Interest Expense:
 Oil and gas industry                             $      4,000  $      4,000
 Environmental testing and management industry          29,000        25,000
 Corporate interest                                     13,000        27,000

                                                  $     46,000  $     56,000


</TABLE>
<PAGE>
                    HAWKS INDUSTRIES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 4. Significant Events

Effective February 1, 1998, Registrant, Hawks Industries, Inc. and a third party
investor, entered  into an  agreement with  the Company's  President, Joseph  J.
McQuade, whereby  Mr.  McQuade and  his  immediate family's  stockholdings  were
purchased by a third party investor at $.10  per share ($2.00 post split).   The
Company has entered into a severance agreement with Mr. McQuade which includes a
covenant not to compete.  Under the terms of the Agreement, the Company will pay
$50,000 per year  for four (4)  years, payable in  semi-monthly installments  to
McQuade in exchange for  the non-compete provision.   Mr. McQuade, effective  on
the same date, resigned as President of the Company and Chairman of the Board of
Directors.  Mr. Bruce  A. Hinchey was elected  by the Board  of Directors to  be
President of the Corporation and  James E. Meador, Jr.,  was selected to be  the
new Vice-President.  No replacement for Mr. McQuade has been made as of the date
of this report.

The Third party investor, the Anne  D. Zimmerman Revocable Trust dated  November
14, 1991 (the  Trust"), by acquiring  Mr. McQuade's and  his immediate  family's
shares, has 153,167 shares and therefore has acquired 11.5% of the outstanding
shares of the Company. As such, the Trust is deemed to be a controlling person.
The Trustee of the Trust, Anne D. Zimmerman, will not sit on the Company's Board
of Directors, nor will she be an employee or officer of the Company.

Reverse Stock Split

At the Company's Annual Meeting held  on January 8, 1998, the Company  submitted
to a vote of security holders, through the solicitation of proxies or otherwise,
a proposal to effect a 20 for 1 reverse  split which was approved.  The  reverse
split changed the number of shares issued from 27,028,194 to 1,351,513.

On November 9, 1998, the Board of Directors of Hawks Industries, Inc. authorized
the repurchase of up to forty thousand shares of Hawks Industries, Inc.,  common
stock on  the open  market or  in negotiated  transactions, depending  upon  the
market conditions.    On  March  1,  1999,  the  Board  of  Directors  of  Hawks
Industries, Inc.  authorized the  repurchase of  an additional  thirty  thousand
shares of Hawks  Industries, Inc.  Stock.  At  September 30,  1999, the  Company
holds as Treasury Stock 24,808 shares or 1.9% of the outstanding common shares.

Note 5.  Write down of impaired oil and gas properties

During the first quarter of 1999, the Company recorded an $80,000 write down  of
its producing  oil  and  gas  properties.   This  write  down  was  recorded  to
depreciation, depletion and  amortization expense.   The Company determined  the
carrying value of  these properties  was more than  future cash  flows from  the
properties due to performance and prices received for oil and gas at the present
time.  Earnings per share were sixteen cents for the nine months ended September
30, 1999 prior to write down and ten cents after the write down.
<PAGE>
                    HAWKS INDUSTRIES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 6. Sale of Buildings

On May 26, 1998, the Company signed  an agreement to sell its buildings  located
at 7345 6WN Road and 7383 6WN Road in  Natrona County, Wyoming to WERCS, a  non-
public Wyoming Corporation.  As set forth in the agreement, the closing date was
June 1, 1998 and the total sales price for both buildings was $417,000.

The Company's cost in the  buildings was $506,000.   The Company's basis in  the
buildings was $367,000.  Therefore, the Company had an approximate $50,000 gain
resulting from the transaction.

The $417,000 was received as $317,000 cash and 10,000 shares WERCS 4%  preferred
convertible stock, with a guaranteed resale value of $100,000.

The majority owner  of WERCS, a  Wyoming Corporation, is  Dr. Gail D.  Zimmerman
whose spouse, through the Anne D.  Zimmerman Revocable Trust, owns 11.5% of  the
outstanding shares of Hawks Industries, Inc.

Note 7. Change in Control of Company

On June 10, 1999 Hawks Industries, Inc entered into an agreement with  Universal
Equities LTD., David H. Piepers, The Cornerhouse Limited Partnership and Winsome
Limited  Partnership  (Collectively  referred  to  as  "Buyers")  to  secure   a
controlling interest in Hawk's  Common Stock through a  private placement.   The
value placed on  Hawk's shares in  the offer was  $1.60 per share  for at  least
6,250,000 shares  of  common  stock yielding  the  Company  a  consideration  of
$10,000,000.  The offer also included the right to buy an additional  14,375,000
shares at the same price.  The maximum consideration to be received by Hawks  is
$33,000,000 if all the additional shares are purchased.

The Terms of the offer require  a payment of at  least $5,000,000 in cash,  with
the remainder of the considerations being paid in cash and/or transfer of buyers
rights to a debt obligation fromn North Star Exploration, Inc ("North Star"),
and/or North Star common  stock, and/or Zeus  Exploration, Inc. ("Zeus")  common
stock.   North Star  is a  private Nevada  Corporation with  options on  mineral
rights covering approximately 7,000,000 acres in Alaska.

The Agreement also requires the redemption of shares in Hawks owned by Bruce  A.
Hinchey, James  E. Meador,  Jr. and  the Anne  D. Zimmerman  Revocable Trust  in
exchange for certain assets of the Company.

The Private placement and redemption of  shares described above will be  subject
to Hawks Shareholders approval  at its Annual Meeting  December 1999 or  January
2000.

As a result  of this  transaction, the controlling  interest in  Hawks would  be
owned by the Buyer Group which will focus on its mineral claims in Alaska.
<PAGE>
                    HAWKS INDUSTRIES, INC. AND SUBSIDIARIES

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


Liquidity and Capital Resources:
--------------------------------

During the first  nine months of  1999, net cash  from operating activities  was
$187,000, compared to a negative $22,000 in the comparable period in 1998.  This
increase was  the  result  of  a  22%  increase  in  sales  from  the  Company's
environmental testing and management over the same period in 1998.  The increase
in sales created $131,000 in net income compared to $150,000 in 1998.   Included
in 1998  was a  $48,000 gain  from sale  of buildings.   Increases  in  accounts
receivable for  both  years reduced  cash  flows from  operating  activities  by
$157,000 in 1999 and $227,000 in 1998.  Depreciation, depletion and amortization
for the nine months ended September 30, 199 was $87,000 higher than the nine
month ended September 30, 1998, largely due to a one time write off of oil and
gas properties through depreciation, depletion and  amortization.  (See note  5-
Write down of impaired oil and properties).

Capital expenditures for the nine months ended September 30, 1999 were  $162,000
compared to $196,000 in the first nine  months of 1998.  Equipment purchased  in
the first nine months of 1999 was  mainly for equipment needed on several  large
jobs in the Company's environmental testing and management segment completed  in
the first six months of the year.

Proceeds from debt  obligations were $94,000  for 1999,  while debt  obligations
were reduced by  $141,000 for the  nine months ended  September 30,  1999.   The
company is still using  accounts receivable as  collateral for short-term  loans
for current cash demands, as needed in its environmental testing and  management
segment.  As of September 30, 1999, no loans were outstanding.

<TABLE>
<CAPTION>
                                               1999        1998
                                               ----        ----
<S>                                            <C>         <C>
Working Capital                              $ 395,000   $ 192,000
Long-term debt to equity                       1:7.3       1:5.9
Cash provided by (utilized by) operations    $ 187,000   $ (22,000)
Cash and short-term investments available    $ 256,000   $ 234,000
</TABLE>

Results of operations:
----------------------

In the nine months  ended September 30, 1999  the Company reported $131,000  net
income compared to $150,000 net income in the nine months September 30, 1998  or
a 13% decrease.   For  the nine  months ended  September 30,  1998, the  Company
reported a $48,000  gain on the  sale of buildings,  which was  included in  net
income.

Environmental testing and management:

Environmental testing and  management revenues increased  to $2,054,000 in  1999
from $1,680,000 in 1998, a 22% increase for the nine months ended September  30,
1999 over the same period in 1998.  Revenues for the quarter ended September 30,
1999 were $555,000  compared to  $560,000 in  1998.   The increase  in 1999  was
largely due to the Company acquiring one large contract in the first six  months
of 1999, while maintaining the Company's regular clients.  Environmental testing
and management's operating expenses were also higher by $263,000, a 19% increase
over the nine months ended September 30, 1998.  Operating expenses were $572,000
in the quarter ended September 30, 1999 compared to $462,000 in the same  period
in 1998, a 24% increase.  The increases in operating expenses were the result of
additional work  as noted  above.   Below is  a table  showing net  revenue  and
operating expenses for the Company's environmental industry:
<PAGE>
<TABLE>
<CAPTION>
                       Nine Months Ended              Quarter Ended
                       -----------------              -------------
                         September 30,                September 30,
                         -------------                -------------
                      1999         1998         1999          1998
                      ----         ----         ----          ----
<S>                   <C>          <C>          <C>           <C>
Sales               $ 2,054,000    1,680,000  $ 555,000     $ 560,000
Operating expenses    1,647,000    1,384,000    572,000       462,000
                      ---------    ---------    -------       -------
                    $   407,000      296,000  $ (17,000)    $  98,000
                      =========    =========    ========      =======
</TABLE>

Oil and gas:

Oil and gas revenues declined from  $176,000 in the nine months ended  September
30, 1998 to $116,000 for the nine months ended September 30, 1999.  Oil and  gas
revenues increased by $11,000 in the  quarter ended September 30, 1999 from  the
corresponding quarter in 1998. The decrease in the nine months period was the
result of lower prices for most of the nine months and declining production.
During the first  nine months of  1998 the Company  also collected  on an  after
payout agreement, that  covered several years.   Oil and  gas expenditures  were
$30,000 in the nine months ended September  30, 1999 compared to $35,000 in  the
nine months ended September 30, 1998.  For the Quarter ended September 30,  1999
oil and gas expenditures were $11,000 compared to negative $8,000 in 1998, which
was a result of a refund of production taxes in 1998.

Below is a table showing revenues  and operating expenses for the Company's  oil
and gas segment:
<TABLE>
<CAPTION>
                          Nine Months              Quarter Ended
                          -----------              -------------
                      Ended September 30,          September 30,
                      -------------------          -------------
                      1999         1998         1999         1998
                      ----         ----         ----         ----
<S>                   <C>          <C>          <C>          <C>
Sales               $ 116,000   $  176,000   $    45,000  $   34,000
Operating expenses     30,000       35,000        11,000      (8,000)
                      -------      -------      --------     --------
                    $  86,000   $  141,000   $    34,000  $   42,000
                      =======      =======      ========     =======
</TABLE>

Additional information:

The Company had depreciation, depletion and  amortization (DD&A) of $243,000  in
the first nine months of 1999 compared to  $156,000 in the first nine months  of
1998.  Eighty thousand dollars of the $87,000 increase was from a write down  of
impaired oil and gas properties (see Note  5-Write down of impaired oil and  gas
properties).  DD&A for  the quarter ended September  30, 1999 was $3,000  higher
than the corresponding  quarter in 1998  as DD&A was  recorded on new  purchases
acquired during the quarter.

General and  administrative  costs  were  $98,000  for  the  nine  months  ended
September 30, 199 compared to $152,000 for the nine months ended September 30,
1998. This decrease was due to decreases in staff and other cost cutting
efforts.

Interest expense  was $46,000  for the  nine months  ended September  30,  1999,
compared to $56,000 for the nine months ended September 30, 1998.  This decrease
was due to the  Company selling its  properties on 6WN  Road in Natrona  County,
Wyoming in  1998 and  no longer  having the  associated notes  payable on  these
properties for the first six months of  1999.  Interest expense for the  quarter
ended September 30, 1999 and 1998 was relatively constant.



Income taxes:

The Company has  significant net  operating loss  carryforwards, investment  tax
credit carryforwards and other carryforward items, and accordingly should not be
liable for ordinary income taxes.

In addition, should the Company utilize  certain loss carryforwards, which  were
earned prior to the date of  the Company's quasi reorganization at December  31,
1988, Financial Accounting Statement  No. 109, requires  that deferred taxes  be
provided.  The Company has taken the position that to provide such disclosure is
not only meaningless  but also  somewhat distortive.   As of  the third  quarter
1999, no such income tax provision would have been necessary.
<PAGE>

Year 2000 compliant
-------------------

The year 2000 compliance issue affects the Company computer systems, software
and related technologies.  We have identified and are in the process of
correcting applications to ensure that all of our key computer systems will be
year 2000 compliant by December 1999.  We are also working with our vendors and
suppliers to ensure their compliance. It appears that the Company will have no
trouble meeting this goal. Cost to modify such applications remains immaterial
to our results of operations or financial condition.
<PAGE>

                           Part II OTHER INFORMATION

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

Items filed on 8-K

None

Exhibits

On March 1, 1999 the Board of Directors of Hawks Industries, Inc. authorized an
additional repurchase of 30,000 shares.

Through September 30, 1999, The Company has 24,808 shares or 1.9% of the
outstanding common shares held as Treasury Stock.
<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
undersigned thereunto duly authorized.


                                        HAWKS INDUSTRIES, INC.
                                        (Registrant)

Date: November 1, 1999                  BY:     /s/ Bruce A. Hinchey
                                                -----------------------
                                               Bruce A. Hinchey, President and
                                               Chief Executive Officer

Date: November 1, 1999                       BY:   /s/ Bill Ukele
                                                    ------------
                                               Bill Ukele, Controller and
                                               Chief Financial Officer