UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 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 February 28, 1997

[   ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to ___________

Commission file number 0-7261

                            CHAPARRAL RESOURCES, INC.
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

         Colorado                                      84-0630863 
-------------------------------             -----------------------------------
(State or other jurisdiction of            (I.R.S. Employer Identification No.)
incorporation or organization)

                        3400 Bissonnet Street, Suite 135
                              Houston, Texas 77005
                     --------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (713) 664-0932
               --------------------------------------------------
              (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 
    -----     -----

As of April 17, 1997,  the  Registrant  had  37,526,517  shares of its $0.10 par
value common stock issued and outstanding.


<PAGE>

                                  PART 1 - SUMMARIZED FINANCIAL INFORMATION

                                          Chaparral Resources, Inc.

                                    Consolidated Statements of Operations

                                                 (Unaudited)
<TABLE>
<CAPTION>

                                                                            For the Three Months Ended
                                                                            --------------------------
                                                                       February 28,             February 29,
                                                                           1997                     1996
                                                                       ------------             ------------
<S>                                                                     <C>                    <C>    
Revenue:
         Oil and gas sales                                             $     53,000             $     34,000
                                                                       ------------             ------------

Cost and expenses:
         Production costs                                                    18,000                     --
         Loss on sale of domestic oil and gas properties                     36,000                     --
         Depreciation and depletion                                            --                     16,000
         General and administrative                                         438,000                   84,000
                                                                       ------------             ------------
                                                                            492,000                  100,000
                                                                       ------------             ------------
(Loss) from operations                                                     (439,000)                 (66,000)

Other income (expenses):
         Interest income                                                     74,000                    2,000
         Interest expense                                                  (110,000)                 (19,000)
         Other, net                                                          43,000                    1,000
                                                                       ------------             ------------
                                                                              7,000                  (16,000)
                                                                       ------------             ------------
         Net (loss)                                                    $   (432,000)            $    (82,000)
                                                                       ------------             ------------

Earnings (loss) per common share                                       $     (0.012)            $     (0.004)
                                                                       ------------             ------------

Average number of outstanding shares                                     37,526,517               20,692,525
                                                                       ------------             ------------



See accompanying notes to financial statements

</TABLE>

                                                      2
<PAGE>

                                          Chaparral Resources, Inc.
                                         Consolidated Balance Sheets
<TABLE>
<CAPTION>

                                                                                   February 28,
                                                                                      1997            November 30,
                                                                                   (Unaudited)           1996
                                                                                   -----------        ------------
<S>                                                                               <C>                  <C>   
ASSETS
CURRENT ASSETS
         Cash and cash equivalents                                                $    253,000        $    800,000
         Accounts receivable
           Joint interest participants                                                  11,000               8,000
           Oil and gas purchases                                                         3,000              53,000
         Prepaid expenses                                                               18,000              40,000
         Oil and gas properties under agreement for sale                                  --               306,000
                                                                                  ------------        ------------
            Total current assets                                                       285,000           1,207,000

PROPERTY AND EQUIPMENT - AT COST Oil and Gas Properties - full cost:
         Republic of Kazakstan (Karakuduk Field) not subject
           to depletion                                                             11,238,000          11,189,000
                                                                                  ------------        ------------
                                                                                    11,238,000          11,189,000

         Furniture, fixtures and equipment                                             334,000             441,000
         Less accumulated depreciation                                                  90,000             198,000
                                                                                  ------------        ------------
                                                                                       244,000             243,000
                                                                                  ------------        ------------
                                                                                    11,482,000          11,432,000

OTHER ASSETS
         Cash value of insurance and annuities                                                               8,000
         Due from Karakuduk-Munay, Inc.                                              2,561,000           2,012,000
         Equipment inventory                                                              --                 7,000
         Other                                                                          90,000              74,000
                                                                                  ------------        ------------
                                                                                     2,651,000           2,121,000
                                                                                  ------------        ------------
                                                                                  $ 14,418,000        $ 14,760,000
                                                                                  ------------        ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
         Accounts payable
            Trade                                                                 $     30,000             278,000
             Joint interest participants - revenue                                        --                42,000
         Accrued liabilities                                                            45,000              91,000
         Accounts payable CAP-G shares                                                 544,000             744,000
                                                                                  ------------        ------------
            Total current liabilities                                                  619,000           1,155,000
                                                                                  ------------        ------------

LONG TERM OBLIGATIONS:
         Notes payable (including $1,000,000 to related party)                       1,642,000           1,106,000
         Accrued compensation                                                          385,000             385,000
                                                                                  ------------        ------------
                                                                                     2,027,000           1,491,000
STOCKHOLDERS' EQUITY
         Common stock - authorized, 100,000,000 shares of $.10 par value;
           issued and  outstanding,  37,526,517 and 37,526,517 shares at
           February 28, 1997 and November 30, 1996, respectively                     3,771,000           3,753,000
         Capital in excess of par value                                             20,554,000          20,482,000
         Preferred stock - authorized 1,000,000 shares as of
           February 28, 1997 and November 30, 1996 (no shares
           issued or outstanding)
         Retained earnings (deficit)                                               (12,553,000)        (12,121,000)
                                                                                  ------------        ------------
         Total stockholders' equity                                                 11,772,000          12,114,000
                                                                                  ------------        ------------
                                                    
                  Total liabilities and stockholders' equity                      $ 14,418,000         $14,760,000
                                                                                  ============         ===========

See accompanying notes to financial statements


</TABLE>

                                                     3

<PAGE>
<TABLE>
<CAPTION>

                                                     Chaparral Resources, Inc.

                                               Consolidated Statements of Cash Flows

                                                            (Unaudited)

                                                                                  For the Three Months Ended
                                                                                  --------------------------
                                                                                February 28,         February 29,
                                                                                   1997                 1996
                                                                                ------------         -----------
<S>                                                                             <C>                   <C>    
Cash Flows from operating activities
     Net (loss)                                                                 $(432,000)            $ (82,000)
     Adjustments to reconcile net (loss) to net cash
           used by operating activities:
           Depreciation and depletion                                                --                  16,000
           Amortization of note discount                                           36,000                32,000
           Loss on the sale of Domestic oil and gas property                       33,000
           Changes in assets and liabilities:
              (Increase) decrease in:
                  Accounts receivable                                              47,000                60,000
                  Prepaid expenses                                                 22,000                 1,000
                  Other assets                                                     19,000                  --
              Increase (decrease) in:
                  Accounts payable                                               (445,000)              (56,000)
                  Accrued liabilities                                             (91,000)              (48,000)
                                                                                ---------             ---------
           Net cash (used in) operating activities                               (811,000)              (77,000)

Cash flows from investing activities:
     Additions to property and equipment                                           (1,000)               60,000
     Investment in foreign oil and gas properties                                    --                (616,000)
     Additions to Republic of Kazakstan (Karakuduk Field)                          49,000)
           not subject to depletion
     Advances to Karakuduk-Munay, Inc.                                           (549,000)
     Proceeds from sale of interest in oil & gas properties                       273,000                19,000
                                                                                ---------             ---------
           Net cash provided from (used in) investing activities                 (326,000)             (537,000)

Cash flows from financing activities:
     Proceeds from notes payable                                                  500,000               332,000
     Proceeds from sale of stock                                                   90,000                  --
                                                                                ---------             ---------
           Net cash provided by financing activities                              590,000               332,000
                                                                                ---------             ---------
           Net (decrease) in cash and cash equivalents                           (547,000)             (282,000)

Cash and cash equivalents at beginning of period                                  800,000               501,000
                                                                                ---------             ---------

Cash and cash equivalents at end of 1st quarter                                 $ 253,000             $ 219,000
                                                                                ---------             ---------

</TABLE>


See accompanying notes to financial statements

                                                            4

<PAGE>



                            CHAPARRAL RESOURCES, INC.

Notes to Consolidated Financial Information

Unaudited


(1) GENERAL

Management  has  elected  to  omit  substantially  all  notes  to the  Company's
financial statements. Reference should be made to the Company's Annual Report on
Form  10-K for the  fiscal  year  ended  November  30,  1996,  for  notes to the
Company's year-end financial statements.

(2) UNAUDITED INFORMATION

The  information  furnished  herein was taken from the books and  records of the
Company  without  audit.  However,  such  information  reflects all  adjustments
(consisting only of normal recurring  adjustments)  which are, in the opinion of
management,  necessary to reflect  properly the results for the interim  periods
presented. The results of operations for the interim periods are not necessarily
indicative of the results to be expected for the year.

The November 30, 1996 balance  sheet data is derived from the audited  financial
statements but does not include all disclosures  required by generally  accepted
accounting principles.

(3) Going Concern

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company has over 80% of its
assets  invested in entities that are pursuing the  development of the Karakuduk
field,  a shut in oil field in the central Asian  Republic of  Kazakstan,  which
will require significant additional funding.

The Company's  current cash reserves and cash flow from  operations  will not be
sufficient to meet the Company's capital requirements through fiscal 1997. While
the Company  believes that  additional  funds will be available from  additional
financing,  there can be no assurance that such will be the case.  There is also
no assurance that additional financing,  if available,  can be obtained on terms
favorable or affordable to the Company.

The  Company's  continued  existence  as a going  concern in its present form is
dependent  upon the  success of future  operations,  which is, in the near term,
dependent on the successful financing and development of the Karakuduk field, of
which there is no assurance.


                                        5

<PAGE>

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

(1)      Liquidity and Capital Resources

         Previously,  the Company's  primary  source of capital was from oil and
gas sales from domestic properties.  As of the end of the first quarter of 1997,
all domestic properties have been sold or otherwise  disposed.  The only oil and
gas  interest  of the  Company  at this  time is as a  result  of the  Company's
investment  in  Karakuduk-Munay,  Inc.  (KKM) through  Central  Asian  Petroleum
Guernsey Limited (CAP-G). KKM is the joint venture in Kazakstan.

Due to the timing of the final payment of $543,750 related to the acquisition of
an interest in CAP-G,  current liabilities of $619,000 exceed the current assets
of $285,000 at February  28, 1997,  resulting  in a current  ratio of 0.46 to 1.
Without the purchase  payment  obligation,  the current ratio would be 3.8 to 1.
The due date for the final payment on the  acquisition of this interest has been
extended to May 15, 1997.

Since the Karakuduk field is in the early stage of  development,  the field does
not currently  produce  revenues  sufficient to meet its cash outflow needs. The
development  of the  Karakuduk  field , through KKM,  will  require  substantial
amounts of additional  capital.  The terms of the KKM revised  license require a
work plan from the  commencement  of operations  through  August 31, 1997, of at
least $10,000,000. Of this amount, approximately $4,500,000 has been expended to
date and the Company's  remaining  share through August 31, 1997 is estimated at
$5,500,000. Additional requirements exist for the year ending August 31, 1998.

The Company currently owns 90% of CAP-G,  providing a 45% beneficial interest in
the  Karakuduk  field.  The Company has an option  through  December 11, 1997 to
obtain the remaining 10% of CAP-G from an individual  shareholder of CAP-G. Upon
exercising this option,  the Company will have a 50% beneficial  interest in the
Karakuduk field. The other 50% is owned by a Kazakstan  government group and two
Kazakstan joint stock companies.

The  Company  has raised  capital to  finance a portion  of its  obligations  in
connection  with the acquisition of its interest in CAP-G and the development of
the  Karakuduk  and to satisfy  working  capital  needs in the short  term.  The
Company  plans  to met its  additional  capital  needs  through  debt or  equity
offerings,  encumbering  properties,  entering into arrangements whereby certain
costs  of  development  will be  paid by  others  to  earn  an  interest  in the
properties,  or sale of a portion of the  Company's  interest  in the  Karakuduk
field.  The present  environment  for financing the  acquisition  of oil and gas
properties or the ongoing  obligations  of the oil and gas business is uncertain
due,  in part,  to  instability  in oil and gas  pricing  in recent  years.  The
Company's  small size and the early stage of development of the Karakuduk  field
may also increase the  difficulty in raising needed  financing.  There can be no
assurance that debt or equity financing  anticipated to be necessary to continue
to fund the  Company's  operations  and  obligations  will be  available  to the


                                        6

<PAGE>


Company on economically  acceptable terms, if at all. If sufficient funds cannot
be raised to meet the continuing obligations with respect to the Karakuduk field
development,  the  Company's  interest in such  property may be lost.  Also,  if
sufficient funds cannot be raised to provide additional  working capital,  it is
likely that the Company will not be able to continue operations.

The  Company  has no other  material  commitments  for cash  outlay and  capital
expenditures other than for normal operations.

(2) Results of Operations

     Three  Months Ended  February 28, 1997 vs. Three Months Ended  February 29,
1996

     The Company's  operations  resulted in a net loss of $432,000 for the three
months ended February 28, 1997 compared to a net loss of $82,000 during the same
period in 1996. Increases in general and administrative costs accounted for most
of this  change.  This was the result of costs  related to the  acquisition  and
operation  of the  Company's  beneficial  interest  in the  Karakuduk  field and
financing  and  farmout  operations  related to the  project.  Interest  expense
increased  from  $19,000 to  $110,000,  or a 579%  increase,  as a result of the
Company having obtained  increased  financing for the Karakuduk field.  Interest
income offset most of the interest  expense,  increasing from $2,000 to $74,000,
or 3,700%.

The Company  realized a loss on the sale of the  Company's  domestic oil and gas
properties  that  totaled  $36,000  in the first  quarter  of 1997.  There was a
$43,000 gain related to subsidiary billings of related party transactions.


                                        7

<PAGE>

                           PART II - OTHER INFORMATION

Item 6 -  Exhibits and Reports on Form 8-K

(a)      Exhibits

         10.1     Amendment  dated April 14, 1997 to  Purchase  Agreement  dated
                  effective  January 12, 1996,  between the Company and Guntekin
                  Koksal.

         27       Financial Data Schedule

(b)      During the quarter for which this report is filed,  the Company filed a
         Current Report on Form 8-K dated November 22, 1996 reporting:

         Item 5. Other Events

                  The Company reported borrowing $1,850,000 of interim financing
                  and the resignation of a director and the appointment of a new
                  director.

         Item 7. Financial Statements and Exhibits

            (a)  Financial Statements-- Not Applicable.

            (b)  Exhibits.

                 (3)  Promissory Notes and Modifications of Promissory Notes

(c)      During the quarter for which this report is filed,  the Company filed a
         Current Report on Form 8K dated January 16, 1997 reporting:

         Item 4. Changes in Registrant's Certifying Accountant

                  On January 16, 1997, the Company  engaged Ernst & Young LLP as
                  the Company's principal accountant.




                                        8

<PAGE>



                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  duly has  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



Dated: April 17, 1997



                                     CHAPARRAL RESOURCES, INC.,
                                     a Colorado Corporation




                                     /s/  Howard Karren
                                     ------------------------------------------
                                     Howard Karren
                                     President and Principal Executive Officer





                                     /s/  Arlo G. Sorensen
                                     ------------------------------------------
                                     Arlo G. Sorensen, Chief Financial Officer
                                     and Principal Accounting Officer


                                        9

<PAGE>

                                  EXHIBIT INDEX


         10.1     Amendment  dated April 14, 1997 to  Purchase  Agreement  dated
                  effective  January 12, 1996,  between the Company and Guntekin
                  Koksal.

         27       Financial Data Schedule

                                       10