FORM 10-Q

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


             (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1997

                                       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 1-12108

                              GULFWEST OIL COMPANY
             (Exact name of Registrant as specified in its charter)

               Texas                                     87-0444770
      (State or other jurisdiction                      (IRS Employer
          of incorporation)                           Identification No.)

                2644 Sherwood Forest Plaza
                Suite 229
                Baton Rouge, Louisiana                       70816
               (Address of principle executive offices)    (zip code)

                                 (504) 293-1100
              (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.

                         NO____              YES _X_

     The number of shares  outstanding of each of the issuer's classes of common
     stock,  as of the latest  practicable  date,  May 14, 1997,  was  1,743,654
     shares of Class A Common Stock, $.001 par value.






<PAGE>


<TABLE>
                              GULFWEST OIL COMPANY

                         FORM 10-Q FOR THE QUARTER ENDED
                                 MARCH 31, 1997
<CAPTION>


                                                                                                  Page of
                                                                                                 Form 10-Q
<S>                                                                                                <C>

Part I:  Financial Statements

Item 1.           Financial Statements
                  Consolidated Balance Sheets, March 31, 1997,
                   and December 31, 1996                                                             3
                  Consolidated Statements of Operations-for the three
                    months ended March 31, 1997, and 1996                                            5
                  Consolidated Statements of Cash Flows-for the three
                    months ended March 31, 1997, and 1996                                            6
                  Notes to Consolidated Financial Statements                                         7

Item 2.           Management's Discussion and Analysis
                    of Financial Condition and Results
                    of Operations                                                                    8

Part II:          Other Information

Item 4.           Submission of Matters to a Vote of Security Holders                               10

Item 6.           Exhibits and Reports on 8-K                                                       10

Signatures                                                                                          11

</TABLE>




















                                        2
<PAGE>

                          PART I. FINANCIAL INFORMATION
<TABLE>
ITEM 1.           FINANCIAL STATEMENTS.

                              GULFWEST OIL COMPANY
                           CONSOLIDATED BALANCE SHEETS
                      MARCH 31, 1997 AND DECEMBER 31, 1996
                                   (UNAUDITED)

                                     ASSETS
<CAPTION>
 
                                                                                              March 31,        December 31,
                                                                                                 1997               1996      
<S>                                                                                         <C>               <C>

Current Assets:
  Cash and Cash Equivalents                                                                  $      66,912     $     84,477
  Accounts Receivable - Trade, Net of Allowance for Doubtful
     Accounts of -0- in 1997 and 1996                                                            1,433,324          612,439
  Prepaid Expenses                                                                                   8,678            2,343
  Notes Receivable                                                                                 100,000             -   

    Total Current Assets                                                                         1,608,914          699,259


Oil & Gas Properties, Using the Successful Efforts Method of Accounting:
  Undeveloped Properties                                                                            80,489           37,910
  Developed Properties                                                                          15,319,120       14,823,561

Other Property and Equipment                                                                       838,119          735,507

Less - Accumulated Depreciation, Depletion,
    and Amortization                                                                            (1,482,240)      (1,249,472)

    Net Oil and Gas Properties and
      Other Property and Equipment                                                              14,755,488       14,347,506



Long-Term Accounts and Notes Receivable -
  Related Parties, Net of Allowance for Doubtful Accounts
      of $446,948 in 1997 and 1996                                                                  97,695          112,659

    Total Assets                                                                             $  16,462,097     $ 15,159,424

</TABLE>






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

                                        3
<PAGE>


<TABLE>
                              GULFWEST OIL COMPANY
                           CONSOLIDATED BALANCE SHEETS
                      MARCH 31, 1997 AND DECEMBER 31, 1996
                                   (UNAUDITED)



                      LIABILITIES AND STOCKHOLDERS' EQUITY
<CAPTION>

                                                                                               March 31,      December 31,
                                                                                                 1997               1996     
<S>                                                                                         <C>               <C> 

Current Liabilities:
  Current Portion of Long-Term Debt                                                          $  2,967,373      $  1,702,208

  Accounts Payable - Trade                                                                      1,489,858         1,018,419
  Accrued Expenses                                                                                102,256           156,663

    Total Current Liabilities                                                                   4,559,487         2,877,290

Long-Term Debt, Net of Current Portion                                                          7,763,783         8,352,941
Long-Term Debt, Related Parties                                                                   325,000           525,000

    Total Long-Term Debt                                                                        8,088,783         8,877,941

Commitments and Contingencies                                                                        -                 -

Stockholders' Equity:
  Preferred Stock, Par Value at $.01, 10,000,000 Shares
    Authorized, 4,621 and 4,621 Shares Issued and Outstanding
    in 1997 and 1996, Respectively                                                                     46                46
  Common Stock, Par Value at $.001, 20,000,000 Shares
    Authorized, 1,696,154 and 1,611,154 Shares Issued and Outstanding
    in 1997 and 1996, Respectively                                                                  1,696             1,611
  Additional Paid-in Capital                                                                    7,304,364         6,909,092
  Retained Deficit                                                                             (3,492,279)       (3,506,556)

    Total Stockholders' Equity                                                                  3,813,827         3,404,193

    Total Liabilities and Stockholders'
      Equity                                                                                 $ 16,462,097      $ 15,159,424

</TABLE>






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


                                        4
<PAGE>


<TABLE>
                              GULFWEST OIL COMPANY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
                                   (UNAUDITED)

<CAPTION>

                                                                                                 1997               1996   
<S>                                                                                         <C>               <C>
Revenues:
  Oil and Gas Sales                                                                          $ 1,154,621       $ 202,507
  Well Servicing Revenues                                                                        224,990            -
  Operating Overhead and Other Income                                                            115,518          38,345

    Total Revenues                                                                             1,495,129         240,852

Costs and Expenses:
  Lease Operating Expenses                                                                       435,558          94,382
  Cost of Well Servicing Operations                                                              162,923            -
  Depreciation and Depletion                                                                     232,768          90,214
  Lease Abandonment                                                                                 -              8,178
  General and Administrative                                                                     345,242         221,724

    Total Costs and Expenses                                                                   1,176,491         414,498

Income (Loss) From Operations                                                                    318,638        (173,646)

Other Income and Expense:
  Interest Income                                                                                  8,774           7,017
  Interest Expense                                                                              (241,390)        (59,708)

    Total Other Income and Expense                                                              (232,616)        (52,691)

Net Income (Loss) Before Taxes                                                                    86,022        (226,337)

Income Tax Provision                                                                                -               -   

Net Income (Loss)                                                                            $    86,022       $(226,337)


Earnings (Loss) Per Share and Common Stock Equivalents                                       $       .05       $    (.21)

Weighted Average Number of Shares                                                              1,655,097       1,087,074

</TABLE>





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


                                        5
<PAGE>

<TABLE>
                              GULFWEST OIL COMPANY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
                                   (UNAUDITED)
<CAPTION>


                                                                                                1997              1996   
<S>                                                                                         <C>               <C>

Cash Flows Provided (Used) By Operating Activities:
  Net Income (Loss)                                                                          $    86,022       $ (225,134)

  Adjustments to Reconcile Net Income (Loss) to Net
    Cash Provided (Used) by Operating Activities:
      Depreciation, Depletion, and Amortization                                                  232,768           90,213
      Decrease in Accounts Receivable - Related Party, Net                                          -               3,069
      (Increase) in Accounts Receivable - Other, Net                                            (820,885)         (55,370)
      (Increase) in Prepaid Expenses                                                              (6,335)          (1,187)
      Increase (Decrease) in Accounts Payable                                                     471,439         (24,823)
      (Decrease) in Accrued Expenses                                                              (54,407)         (8,081)

        Net Cash Provided (Used) By Operating Activities                                          (91,398)       (221,313)

Cash Flows Provided (Used) By Investing Activities:
  Purchase of Oil and Gas Properties                                                             (538,138)         (2,011)
  Purchase of Equipment                                                                          (102,612)           -     

        Net Cash Provided (Used) By Investing Activities                                         (640,750)         (2,011)

Cash Provided (Used) By Financing Activities:
  Decrease in Accounts and Notes Receivable - Related Party                                        14,964            - 
  (Increase) in Notes Receivable                                                                 (100,000)           -
  (Payment) on Debt                                                                              (707,650)        (90,392)
  Amortization of Prepaid Interest                                                                   -              8,333
  (Payments) on Notes Payable - Related Parties                                                  (200,000)           -
  Proceeds From Notes Payable - Other                                                           1,383,657         100,000
  Proceeds From Sale of Common and Preferred Stock                                                395,357         515,000
  (Payment) of Dividends                                                                          (71,745)           -   
 
        Net Cash Provided (Used) By Financing Activities                                          714,583         532,941

Increase (Decrease) in Cash and Cash Equivalents                                                  (17,565)        309,617

Cash and Cash Equivalents, Beginning of Period                                                     84,477          10,548

Cash and Cash Equivalents, End of Period                                                     $     66,912      $  320,165

Cash Interest Paid                                                                           $    216,668      $   34,792
</TABLE>


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


                                        6
<PAGE>

                              GULFWEST OIL COMPANY
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                             MARCH 31, 1997 AND 1996
                                   (UNAUDITED)


1.   During interim  periods,  GulfWest Oil Company ("the Company")  follows the
     accounting  policies set forth in its Annual Report on Form 10-K filed with
     the  Securities  and Exchange  Commission.  Users of financial  information
     produced  for interim  periods  are  encouraged  to refer to the  footnotes
     contained in the Annual Report when reviewing interim financial results.

2.   The  accompanying   financial   statements  include  the  Company  and  its
     wholly-owned subsidiaries:  WestCo Producing Company ("WestCo"),  formed in
     1995; Vanco Well Service,  Inc.  ("Vanco"),  GulfWest Texas Company ("GWT")
     and  GulfWest  Permian  Company  ("GWP") all formed in 1996.  All  material
     intercompany transactions and balances are eliminated upon consolidation.
 
3.   In management's  opinion,  the accompanying  interim  financial  statements
     contain  all  material  adjustments,  consisting  only of normal  recurring
     adjustments  necessary  to present  fairly  the  financial  condition,  the
     results of  operations,  and the  statements  of cash flows of GulfWest Oil
     Company for the interim periods.

 


                                        7
<PAGE>

ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS
                  OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


Overview

     GulfWest Oil Company  ("GulfWest" or the  "Company") is an independent  oil
     and gas company  primarily  engaged in the acquisition of producing oil and
     gas properties  with proved reserves which have the potential for increased
     value through continued  development and enhanced recovery technology.  The
     Company's  objective is to  significantly  increase the  production of such
     properties  through  workovers  of  the  wells,  horizontal  drilling  from
     existing wellbores, development drilling or other enhancement operations.

     On July 17, 1995, the Company acquired from Sikes Producing,  Inc. ("SPI"),
     beneficial  ownership of an additional 42.5% of the working interests in 31
     proved producing oil and gas properties located in the Madisonville  Field,
     Texas.  Under a  Restructuring  Agreement,  GulfWest  contributed its 37.5%
     ownership  in a gas  pipeline  gathering  system  and  assumed  a  $640,000
     nonrecourse  note as  payment  for the  working  interests.  GulfWest  also
     purchased certain additional working interests in Madisonville from SPI for
     a purchase  price of  $100,000,  with $20,000 paid in cash at closing and a
     promissory  note for $80,000 which was  subsequently  paid in full in 1996.
     The  Company's  subsidiary,  WestCo,  assumed  operation  of the 31  wells,
     effective August 1, 1995.

     During the fourth quarter of 1996, the Company acquired significant oil and
     gas reserves from an unrelated entity in two separate transactions.  In the
     first transaction  ("Phase I"), the Company acquired various properties for
     $3,000,000.  $1,500,000  was paid at closing and a $1,500,000  note payable
     was issued.  In the second  transaction  ("Phase II"), the Company acquired
     various  properties  for  $7,654,000.  $150,000 was paid at closing and two
     notes payable totaling $7,504,000 were issued. 

Results of Operations

     Comparative  results of operations for the periods  indicated are discussed
     below.

     Three-Month  Period  Ended  March 31, 1997  compared to Three Month  Period
     Ended March 31, 1996.

     Oil and gas sales for the first quarter  increased from $202,500 in 1996 to
     $1,154,600 in 1997,  due to the addition of working  interest  ownership in
     the Phase I and Phase II  acquisitions  during the fourth  quarter of 1996.
     Well  servicing  revenues  for 1997 were  generated  by VanCo which did not
     commence  operations until September 1996. Revenues from operating overhead
     and other income for 1997  increased  to $115,500  and included  management
     fees of $51,000,  gain on the sale of a lease of $37,500,  truck rentals of
     $15,000 and saltwater disposal fees of $12,000.

     Lease  operating  expenses,  depreciation  and depletion  increased for the
     period in 1997 due to the acquisition of the additional  working  interests
     discussed above.

     Interest  expense for the first quarter of 1997 compared to 1996  increased
     from $59,700 to $241,390 due to borrowing  cost related to the  acquisition
     of additional  working  interests in oil properties and other debt incurred
     during the year to finance the Company's  operations.  Also,  included is a
     non-cash expense of $10,000 for options issued to a non-related third party
     who guaranteed a $2,000,000 revolving line-of-credit.


                                        8
<PAGE>

Financial Condition and Capital Resources

     The  Company  realized  a net  profit of  $86,000 or $.05 per share for the
first quarter of 1997.

     During the  fourth  quarter  of 1996,  the  Company  acquired  and  assumed
operations  for   $10,654,000  in  oil  properties  in  West  Texas.   Utilizing
independently prepared petroleum engineering reports and expected average prices
for oil and gas of $18 per barrel and $2 per MCF,  respectively,  for 1997 (both
prices  lower than  existed at December  31,  1996),  management  estimates  the
Company will have  sufficient  cash flows from  operations  to fund debt service
obligations and preferred stock dividend obligations as they become due.

     On January 7, 1997, the Company established a $2,000,000  revolving line of
credit  with a banking  institution,  with part of the  proceeds  to be used for
payment of short-term  notes incurred with  acquisitions  made during the fourth
quarter of 1996. The line-of-credit is guaranteed by an unrelated third party in
exchange for options to purchase  $250,000 shares of the Company's  Common Stock
at an  exercise  price of $2.88 per share.  The  Company  used the  Black-Sholes
option  pricing  model to estimate the fair value of the options  resulting in a
$40,000 non-cash interest expense amortized over one year, with $10,000 recorded
each quarter.

     Management is seeking a partner to assist in the horizontal  development of
wells on its  Madisonville  properties.  Management  has  identified 7 wells for
re-entry  using  its  horizontal  technique  which has  proved up an  additional
400,000  barrels of oil  equivalent.  The  partner  would be required to provide
sufficient  funds to pay down the  existing  debt on the  property  and fund the
drilling and  completion of the  horizontal  wells in exchange for a substantial
operating interest in those wells.

     Management will continue an aggressive  acquisition  strategy with a target
of  $20,000,000 in additional  properties  during 1997, and continues to explore
the  possibilities  of issuing  more  preferred  or common  shares as the market
allows to fund such  acquisitions.  In a subsequent event, on April 2, 1997, the
Company  entered  into a Purchase  and Sale  Agreement  to  acquire  oil and gas
properties  ("Phase III") for a purchase  price of  $4,700,000,  to be funded by
bank  financing of  $3,600,000,  with a balance to be paid in cash and through a
production net profits interest under certain terms and conditions.  The Company
is presently negotiating with a credit facility for a long-term loan in order to
consolidate  the debt  incurred  by the  Company  as part of the  Phase I and II
purchases and to finance the Phase III purchase.

     In a subsequent event, on April 23, 1997, the $500,000 principal and $8,329
in unpaid  interest  (since  February 28, 1997) on its  subordinated  promissory
notes was to be due and  payable.  The note  holders of  $475,000  in  principal
agreed to extend the due date of their notes to April 23, 1998,  in exchange for
warrants to purchase 47,500 shares of the Company's  common stock at an exercise
price of $3.25 per share and the extension of the  expiration  date to April 23,
1998 on  warrants  they hold to  purchase  47,500  shares of common  stock at an
exercise  price of $5.00 per share.  The note  holders  also  agreed to exercise
warrants  they hold to  purchase  47,500  shares of common  stock at an exercise
price of $0.50 per share, with proceeds to the Company of $23,750.

     Although  management  believes  the above  actions will provide the Company
with the means to remain profitable,  there is no guarantee these actions can be
effectively  implemented.  Adverse  changes  in prices of oil and gas and/or the
inability  of the Company to continue  to raise the money  necessary  to develop
existing  reserves or acquire  new  reserves  would have a severe  impact on the
Company.


                                        9
<PAGE>


                           PART II. OTHER INFORMATION


ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     No matters were  submitted to a vote of the  shareholders  during the first
     quarter of 1997.



ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K.

         (a)      Exhibits -

                  None


         (b)      Form 8-K -

               The  Company  filed a report on Form 8-K dated  January  10, 1997
               reporting the establishment of a $2,000,000.00  revolving line of
               credit with a financial institution.

                                       10
<PAGE>



                                   SIGNATURES


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



                                          GULFWEST OIL COMPANY
                                               (Registrant)


Date:  May 15, 1997                       By: /s/ Jim C. Bigham               
                                             Jim C. Bigham
                                             Executive Vice President and
                                               Secretary


Date:  May 15, 1997                       By: /s/ John E. Loehr               
                                             John E. Loehr
                                             Chairman of the Board and
                                               Chief Financial Officer


                                       11