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                                  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 September 30, 2002

                                       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 ENERGY INC.
                              --------------------
             (Exact name of Registrant as specified in its charter)

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

480 North Sam Houston Parkway East
           Suite 300
         Houston, Texas                                          77060
(Address of principal executive offices)                      (zip code)

                                 (281) 820-1919
              (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  outstanding  of each of the  issuer's  classes  of common
stock,  as of the latest  practicable  date,  November 18, 2002,  was 18,492,541
shares of Class A Common Stock, $.001 par value.

                              GULFWEST ENERGY INC.

                         FORM 10-Q FOR THE QUARTER ENDED
                               SEPTEMBER 30, 2002

                                                                       Page of
                                                                      Form 10-Q
                                                                      ---------

Part I: Financial Information

Item 1. Financial Statements
        Consolidated Balance Sheets, September 30, 2002
          and December 31, 2001                                           3
        Consolidated Statements of Operations for the three months
          and nine months ended September 30, 2002 and 2001               5
        Consolidated Statements of Cash Flows for the nine
          months ended September 30, 2002 and 2001                        6
        Notes to Consolidated Financial Statements                        7

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

Item 3. Quantitative and Qualitative Disclosures about Market Risk        11

Item 4. Procedures and Controls                                           11

Part II: Other Information

Item 6. Exhibits and Reports on 8-K                                       12

Signatures                                                                13

                                       2

                          PART I. FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS.
-------  ---------------------

                              GULFWEST ENERGY INC.
                           CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 2002 AND DECEMBER 31, 2001

                                     ASSETS

                                                                           September 30,             December 31,
                                                                               2002                      2001
                                                                            (Unaudited)               (Audited)
                                                                       ----------------------    ---------------------
                                                                       ----------------------    ---------------------

CURRENT ASSETS:
  Cash and cash equivalents                                            $             803,394      $          689,030
  Accounts Receivable - trade, net of allowance for
     doubtful accounts of -0- in 2002 and 2001                                     1,418,700               1,392,751
  Prepaid expenses                                                                   144,703                 124,081
                                                                       ----------------------    ---------------------
          Total current assets                                                     2,366,797               2,205,862
                                                                       ----------------------    ---------------------

OIL AND GAS PROPERTIES
  Using the successful efforts method of accounting                               57,035,291              52,045,178

OTHER PROPERTY AND EQUIPMENT                                                       2,337,559               2,352,166
  Less accumulated depreciation, depletion
     and amortization                                                             (7,885,233)             (6,235,251)
                                                                       ----------------------    ---------------------

  Net oil and gas properties, and
     other property and equipment                                                 51,487,617              48,162,093
                                                                       ----------------------    ---------------------

OTHER ASSETS:
  Deposits                                                                            37,442                  37,442
  Debt issue cost, net                                                               343,264                 506,230
  Derivative instruments                                                                                     467,582
                                                                       ----------------------    ---------------------
          Total other assets                                                         380,706               1,011,754
                                                                       ----------------------    ---------------------

TOTAL ASSETS                                                           $          54,235,120     $        51,379,209
                                                                       ======================    =====================

The Notes to Consolidated Financial Statements are an integral part of these statements.

                                       3

                              GULFWEST ENERGY INC.
                           CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 2002 AND DECEMBER 31, 2001

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                                           September 30,             December 31,
                                                                               2002                      2001
                                                                       ----------------------    ---------------------
                                                                       ----------------------    ---------------------
                                                                            (Unaudited)               (Audited)
                                                                       ----------------------    ---------------------

CURRENT LIABILITIES
  Notes payable                                                        $          4,876,938      $          2,821,020
  Notes payable - related parties                                                    90,000                    40,000
  Current portion of long-term debt                                               4,602,829                 6,065,588
  Current portion of long-term debt - related parties                               159,030                   222,687
  Accounts payable - trade                                                        4,593,194                 3,099,399
  Accrued expenses                                                                  449,977                   243,671
                                                                       ----------------------    ---------------------
          Total current liabilities                                              14,771,968                12,492,365
                                                                       ----------------------    ---------------------

NONCURRENT LIABILITIES
  Long-term debt, net of current portion                                         28,939,713                26,330,589
  Long-term debt, related parties                                                   131,680                   211,368
                                                                       ----------------------    ---------------------
          Total noncurrent liabilities                                           29,071,393                26,541,957
                                                                       ----------------------    ---------------------

OTHER LIABILITIES
  Derivative instruments                                                          1,225,692
                                                                       ----------------------    ---------------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Preferred stock                                                                       170                       170
  Common stock                                                                       18,493                    18,493
  Additional paid-in capital                                                     28,179,712                28,164,712
  Retained deficit                                                              (19,032,308)              (15,838,488)
                                                                       ----------------------    ---------------------

          Total stockholders' equity                                              9,166,067                12,344,887
                                                                       ----------------------    ---------------------

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                                                   $         54,235,120      $         51,379,209
                                                                       ======================    =====================

The Notes to Consolidated Financial Statements are an integral part of these statements.

                                       4

                              GULFWEST ENERGY INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                   FOR THE THREE MONTHS AND NINE MONTHS ENDED
                           SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)

                                                                  Three Months                                Nine Months
                                                               Ended September 30,                        Ended September 30,
                                                            2002                 2001                 2002                  2001
                                                      -----------------    -----------------    ------------------    --------------

OPERATING REVENUES
  Oil and gas sales                                   $      2,555,526     $      3,457,920     $       7,895,544     $   9,722,585
  Well servicing revenues                                       11,535               54,108                24,143           136,072
  Operating overhead and other income                           74,565              157,175               322,610           324,167
                                                      -----------------    -----------------    ------------------    --------------
          Total Operating Revenues                           2,641,626            3,669,203             8,242,297        10,182,824
                                                      -----------------    -----------------    ------------------    --------------
OPERATING EXPENSES
  Lease operating expenses                                   1,461,001            1,309,206             4,181,229         3,740,632
  Cost of well servicing operations                             10,445               53,555                45,041           136,911
  Depreciation, depletion and amortization                     625,382              795,298             1,912,344         1,838,371
  General and administrative                                   444,271              427,355             1,312,989         1,233,335
                                                      -----------------    -----------------    ------------------    -------------
          Total Operating Expenses                           2,541,099            2,585,414             7,451,603         6,949,249
                                                      -----------------    -----------------    ------------------    -------------
INCOME FROM OPERATIONS                                         100,527            1,083,789               790,694         3,233,575
                                                      -----------------    -----------------    ------------------    -------------

OTHER INCOME AND EXPENSE
  Interest expense                                           (793,017)            (707,244)            (2,236,087)       (1,993,452)
  Gain (loss) on sale of assets                                (9,964)              (9,626)                  1,09          (118,254)
  Unrealized gain (loss) on derivative
     instruments                                             (222,296)           1,305,075             (1,693,274)        3,807,728
                                                      -----------------    -----------------    ------------------    -------------
          Total Other Income and Expense                   (1,025,277)             588,205             (3,928,264)        1,696,022
                                                      -----------------    -----------------    ------------------    -------------

INCOME (LOSS) BEFORE INCOME TAXES AND
  CUMULATIVE EFFECT OF CHANGE IN
  ACCOUNTING PRINCIPLE                                       (924,750)           1,671,994             (3,137,570)        4,929,597

INCOME TAXES                                          -----------------    -----------------    ------------------    -------------

INCOME BEFORE CUMULATIVE EFFECT OF
  CHANGE IN ACCOUNTING PRINCIPLE                             (924,750)           1,671,994             (3,137,570)        4,929,597

CUMULATIVE EFFECT OF CHANGE IN
  ACCOUNTING PRINCIPLE                                                                                                   (3,747,435)
                                                      -----------------    -----------------    ------------------    -------------

NET INCOME (LOSS)                                            (924,750)           1,671,994             (3,137,570)        1,182,162

DIVIDENDS ON PREFERRED STOCK                                                                              (56,250)
                                                      -----------------    -----------------    ------------------    -------------

NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS                                          $      (924,750)     $     1,671,994      $      (3,193,820)    $   1,182,162
                                                      =================    =================    ==================    =============

NET INCOME PER SHARE, BASIC, BEFORE
  CUMULATIVE EFFECT OF CHANGE IN
  ACCOUNTING PRINCIPLE                                $         (.05)      $           .09                  (.17)     $         .26
CUMULATIVE EFFECT OF CHANGE IN
  ACCOUNTING PRINCIPLE                                                                                                         (.20)
                                                      -----------------    -----------------    ------------------    -------------

NET INCOME (LOSS) PER COMMON SHARE, BASIC             $         (.05)      $          .09       $           (.17)     $         .06
                                                      =================    =================    ==================    =============

NET INCOME PER SHARE, DILUTED, BEFORE
  CUMULATIVE EFFECT OF CHANGE IN
  ACCOUNTING PRINCIPLE                                $         (.05)      $          .08       $           (.17)     $         .24
CUMULATIVE EFFECT OF CHANGE IN
  ACCOUNTING PRINCIPLE                                                                                                         (.18)
                                                      -----------------    -----------------    ------------------    -------------
INCOME (LOSS) PER COMMON SHARE - DILUTED              $        (.05)       $          .08       $           (.17)     $         .06
                                                      =================    =================    ==================    =============
The Notes to Consolidated Financial Statements are an integral part of these statements.
                                       5

                              GULFWEST ENERGY INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)

                                                                                                   2002                  2001
                                                                                             ------------------    ----------------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                                                          $    (3,137,570)      $   1,182,162
  Adjustments to reconcile net income  to net cash
     provided by operating activities:
          Depreciation, depletion, and amortization                                                1,912,344           1,838,371
          Common stock warrants issued and charged to operations                                      15,000
          (Gain) Loss on sale of assets                                                               (1,097)            118,254
          Unrealized (gain) loss on derivate instruments                                           1,693,274          (3,807,728)
          Cumulative effect of accounting change                                                                       3,747,435
          (Increase) decrease in accounts receivable - trade, net                                   (208,691)            457,087
          (Increase) in prepaid expenses                                                             (20,622)           (131,881)
          Increase in accounts payable and accrued expenses                                         1,700,101           1,031,227
                                                                                             ------------------    -----------------
               Net cash provided by operating activities                                            1,952,739           4,434,927
                                                                                             ------------------    -----------------

CASH FLOWS FROM INVESTING ACTIVITIES:
          Proceeds from sale and disposition of property and equipment                                675,440             394,423
          Purchase of property and equipment                                                       (5,491,848)         (5,573,502)
                                                                                             ------------------    -----------------
               Net cash used in investing activities                                               (4,816,408)         (5,179,079)
                                                                                             ------------------    -----------------

CASH FLOWS FROM FINANCING ACTIVITIES:
          Payments on debt                                                                         (3,100,748)         (4,958,995)
          Proceeds from debt issuance                                                                6,135,031           5,710,801
          Debt issue cost                                                                                                   (9,080)
          Dividends paid                                                                               (56,250)
                                                                                             ------------------    -----------------
               Net cash provided by financing activities                                             2,978,033             742,726
                                                                                             ------------------    -----------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                       114,364              (1,426)

CASH AND CASH EQUIVALENTS, beginning of period                                                         689,030             663,032
                                                                                             ------------------    ----------------

CASH AND CASH EQUIVALENTS, end of period                                                               803,384     $       661,606
                                                                                             ==================    ================

CASH PAID FOR INTEREST                                                                       $       2,009,793     $       672,028
                                                                                             ==================    =================

The Notes to Consolidated Financial Statements are an integral part of these statements.

                                       6

                      GULFWEST ENERGY INC. AND SUBSIDIARIES
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 30, 2002 AND 2001
                                   (UNAUDITED)

1.   During interim periods,  we follow the accounting policies set forth in our
     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:  RigWest Well Service, Inc. formed September 5,
     1996;  GulfWest  Texas Company  formed  September  23, 1996;  DutchWest Oil
     Company formed July 28, 1997;  Southeast Texas Oil and Gas Company,  L.L.C.
     acquired  September 1, 1998;  SETEX Oil and Gas Company  formed  August 11,
     1998;  GulfWest Oil & Gas Company formed February 8, 1999; LTW Pipeline
     Co. formed April 19, 1999; GulfWest  Development Company formed November 9,
     2000; and,  GulfWest Oil & Gas Company  (Louisiana) LLC formed July 31,
     2001. 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 Energy
     Inc. for the interim periods.

4.   Non-cash Investing and Financing

     During the nine month period ended September 30, 2002, we acquired  $74,653
     in property and equipment through notes payable to financial  institutions.
     We also  acquired  $182,742  of oil  producing  properties  in  exchange of
     accounts receivable from a related party.

5.   As a  result  of a  financing  agreement  with an  energy  lender,  we were
     required to enter into an oil and gas hedging agreement with the lender. It
     has  been  determined  this  agreement  meets  the  definition  of SFAS 133
     "Accounting  for  Derivative  Instruments  and Hedging  Activities"  and is
     accounted for as a derivative instrument.

     We entered into the  agreement,  commencing in May 2000, to hedge a portion
     of our oil and gas sales for the period of May 2000 through April 2004. The
     agreement  calls for initial volumes of 7,900 barrels of oil and 52,400 Mcf
     of gas per month,  declining monthly  thereafter.  We entered into a second
     agreement with the energy lender,  commencing  September  2001, to hedge an
     additional  portion of our oil and gas sales for the  periods of  September
     2001  through  July  2004  and  September   2001  through   December  2002,
     respectively.  The agreement calls for initial volumes of 15,000 barrels of
     oil and 50,000 Mmbtu of gas per month,  declining monthly thereafter.  As a
     result of these agreements, we realized a reduction in revenues of $111,229
     for the nine-month  period ended  September 30, 2002,  which is included in
     oil and gas sales.

     The estimated  change in fair value of the derivatives is reported in Other
     Income and Expense as unrealized (gain) loss on derivative instruments. The
     estimated  fair value of the  derivatives  is reported in Other  Assets (or
     Other Liabilities) as derivative instruments.

                                       7

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

Overview
--------

     We are engaged  primarily in the  acquisition,  development,  exploitation,
exploration  and  production  of crude  oil and  natural  gas.  Our  focus is on
increasing  production  from our existing  crude oil and natural gas  properties
through  the  further  exploitation,   development  and  optimization  of  those
properties,  and on acquiring  additional  crude oil and natural gas properties.
Our gross revenues are derived from the following sources:

     1.   Oil and gas  sales  that are  proceeds  from the sale of crude oil and
          natural gas production to midstream purchasers;

     2.   Operating  overhead  and other income that  consists of earnings  from
          operating  crude oil and  natural  gas  properties  for other  working
          interest owners, and marketing and transporting natural gas. This also
          includes earnings from other miscellaneous activities.

     3.   Well  servicing  revenues that are earnings from the operation of well
          servicing equipment under contract to third party operators.

Results of Operations
---------------------

     The factors which most  significantly  affect our results of operations are
(1) the sales price of crude oil and natural  gas,  (2) the level of total sales
volumes of crude oil and natural  gas,  (3) the level of and  interest  rates on
borrowings and, (4) the level and success of new acquisitions and development of
existing properties.

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

Three-Month Period Ended September 30, 2002 compared to Three Month Period Ended
September 30, 2001.

Revenues

     Oil and Gas Sales.  Revenues from the sale of crude oil and natural gas for
the  quarter  decreased  26%  from  $3,457,900  in 2001 to  $2,555,500  in 2002,
primarily due to the natural decline in production from horizontal  wells in the
Madisonville  Field,  Texas  and other  Gulf  Coast  wells,  as well as a slight
decrease in average commodity sales prices.

     Well Servicing Revenues.  Revenues from well servicing operations decreased
79% from $54,100 in 2001 to $11,500 in 2002,  due to higher rig  utilization  on
the properties we operate and less on working for third parties.

     Operating  Overhead  and  Other  Income.  Revenues  from  these  activities
decreased  53% from  $157,200 in 2001 to $74,600 in 2002.  This was due to a fee
received  for the  farm-out  of  exploration  rights  on one of our  undeveloped
properties in 2001.

                                       8

Costs and Expenses

     Lease  Operating  Expenses.  Lease  operating  expenses  increased 12% from
$1,309,200  in 2001 to  $1,461,000  in 2002.  This was due to costs for  surface
equipment  and lease road  repairs on several of our Gulf Coast  properties,  as
well as higher vendor, contractor and gas compression charges.

     Cost of Well Servicing  Operations.  Well servicing  expenses decreased 81%
from  $53,600 in 2001 to $10,400  in 2002 due to higher rig  utilization  on the
properties we operate and less on working for third parties.

     Depreciation, Depletion and Amortization (DD&A). DD&A decreased 21%
from $795,300 in 2001 to $625,400 in 2002, due to lower commodity sales volumes.

     General and Administrative  (G&A) Expenses.  G&A expenses increased
slightly for the period from $427,400 in 2001 to $444,300 in 2002.

     Interest  Expense.  Interest expense increased 12% from $707,200 in 2001 to
$793,000  in 2002,  primarily  due to  increased  debt for  funding  of  capital
development projects.

Nine-Month  Period Ended September 30, 2002 compared to Nine-Month  Period Ended
September 30, 2001.

Revenues

     Oil and Gas Sales.  Revenues from the sale of crude oil and natural gas for
the period decreased 19% from $9,722,600 in 2001 to $7,895,500 in 2002. This was
due to the decrease in commodity  prices,  since sales  volumes  remained at the
same level for the period.

     Well Servicing Revenues.  Revenues from well servicing operations decreased
by 82% from $136,100 in 2001 to $24,100 in 2002. We had greater  utilization  of
our rigs in the  development  of our  properties  rather than  working for third
parties in 2002 compared to 2001.

     Operating  Overhead  and  Other  Income.  Revenues  from  these  activities
decreased slightly from $324,200 in 2001 to $322,600 in 2002.

Costs and Expenses

     Lease  Operating  Expenses.  Lease  operating  expenses  increased 12% from
$3,740,600 in 2001 to $4,181,200 in 2002, due to costs for surface equipment and
lease road  repairs on several of our Gulf Coast  properties,  as well as higher
vendor, contractor and gas compression charges.

     Cost of Well Servicing Operations. Well servicing expenses decreased by 67%
from $137,000 in 2001 to $45,000 in 2002. This was due to higher rig utilization
on the properties we operate and less on working for third parties.

     Depreciation,  Depletion and Amortization (DD&A). DD&A increased 4%
from  $1,838,400  in 2001 to  $1,912,300  in 2002,  due to a slight  increase in
capital costs associated with our development program.

     General and Administrative  (G&A) Expenses.  G&A expenses increased
6% for the period from $1,233,300 in 2001 to $1,313,000 in 2002, due to expenses
related to financial efforts we conducted.

     Interest Expense. Interest expense increased 12% from $1,993,500 in 2001 to
$2,236,100  in 2002,  primarily  due to  increased  debt for  funding of capital
development   projects.   New  Line  Item  Added  to  Statement  of   Operations

                                       9

New Line Item Added to Statement of Operations
----------------------------------------------

     We  have  started   reporting   "Unrealized   gain  (loss)  on   derivative
instruments",  as a new line  item in the  Statement  of  Operations.  This is a
non-cash, gain (loss) estimate of the change in the future liability or asset of
the existing  fixed price oil and gas hedge the company  currently  has in place
with an energy  lender.  This is not a  reporting  of a past gain  (loss) of the
hedge agreement, but rather an estimate using September 30, 2002, future oil and
gas price forecasts,  applied to the current hedged volumes at the current fixed
hedge prices.

     The company  entered  into its current oil and gas hedge as a result of the
financing  agreement with the lender. We entered into the agreement,  commencing
in May 2000,  to hedge a potion  of our oil and gas sales for the  period of May
2000  through  April  2004.  It has been  determined  this  agreement  meets the
definition  of SFAS 133 "  According  for  Derivative  Instruments  and  Hedging
Activities" and is accounted for as a derivative instrument.  This required that
we amend the  financials  in our  quarterly  reports  on the form 10Q and annual
report on the Form 10-K for the year 2001, and the quarterly reports on the Form
10-Q for the first two Quarters of 2002 to reflect the change in the  accounting
principle.  There was an unrealized loss of $1,693,274 for the nine month period
ended  September 30, 2002, due to the change in the fair value of the derivative
instrument.

     We would like to emphasize that the addition to the Statement of Operations
is a non-cash  item and is an  estimate  of future gain (loss) as a result of us
locking in a portion of our current  production at a fixed price.  Actual,  past
impact of the hedge  agreement  have been and will be continued to be,  reported
for in the actual oil and gas revenue we report in the Statement of  Operations.
While we do not necessarily agree with this new, non-cash reporting requirement,
which  significantly  distorts our net income,  we have made every  attempt,  to
properly meet the changing reporting  requirements of the controlling regulatory
agencies.

Financial Condition and Capital Resources
-----------------------------------------

     At September 30, 2002, our current liabilities  exceeded our current assets
by $12,405,171.  We had a loss of $924,750 for the quarter  compared to a profit
of $1,672,000 for the period in 2001.

     During the third quarter of 2002,  we sold 68,136  barrels of crude oil and
382,705 Mcf of natural gas  compared to 89,808  barrels of crude oil and 445,227
Mcf of natural gas in the third quarter of 2001. Revenue for crude oil sales for
the quarter  was  $1,457,469  in 2002  compared  to  $2,088,104  in 2001 and for
natural gas sales was $1,098,060 in 2002 compared to $1,369,816 in 2001.

     During the  nine-month  period  ended  September  30,  2002 our  production
volumes were 214,685 barrels of oil and 1,170,386 Mcf of natural gas compared to
214,631  barrels of oil and 1,169,597 Mcf of natural gas for the period in 2001.
Revenue for crude oil sales for the period was  $4,433,898  in 2002  compared to
$5,101,950 in 2001 and for natural gas sales was  $3,481,646 in 2002 compared to
$4,620,635 in 2001.

                                       10

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
-------  ----------------------------------------------------------

     The following  market rate  disclosures  should be read in conjunction with
the quantitative  disclosures  about market risk contained in the Company's 2001
annual  report  on  Form  10-K,  as  well as  with  the  consolidated  financial
statements and notes thereto included in this quarterly report on Form 10-Q.

     All of the  Company's  financial  instruments  are for purposes  other than
trading. The Company only enters derivative financial instruments in conjunction
with its oil and gas hedging activities.

     Hypothetical  changes in interest rates and prices chosen for the following
stimulated   sensitivity  effects  are  considered  to  be  reasonably  possible
near-term changes generally based on consideration of past fluctuations for each
risk  category.  It is not  possible to  accurately  predict  future  changes in
interest rates and product prices.  Accordingly,  these hypothetical changes may
not be an indicator of probable future fluctuations.

Interest Rate Risk

     The Company is exposed to interest rate risk on debt with variable interest
rates.  At  September  30,  2002,  the  Company  carried  variable  rate debt of
$36,661,120. Assuming a one percentage point change at September 30, 2002 on the
Company's variable rate debt, the annual pretax income would change by $366,611.

Commodity Price Risk

     The Company hedges a portion of its price risks associated with its oil and
natural  gas  sales  which  are  classified  as  derivative  instruments.  As of
September 30, 2002, these derivative  instruments'  liabilities had a fair value
of $1,225,692.  A hypothetical change in oil and gas prices could have an effect
on oil and gas futures prices,  which are used to estimate the fair value of our
derivative instrument.  However, it is not practicable to estimate the resultant
change, in any, in the fair value of our derivative instrument.

ITEM 4.  PROCEDURES AND CONTROLS
-------  -----------------------

     As of September 30, 2002, an evaluation was performed under the supervision
and with the  participation of the Company's  management,  including the CEO and
Vice President of Finance,  of the  effectiveness of the design and operation of
the Company's disclosure controls and procedures.  Based on that evaluation, the
Company's management, including the CEO and Vice President of Finance, concluded
that the  Company's  disclosure  controls and  procedures  were  effective as of
September  30, 2002.  There have been no  significant  changes in the  Company's
internal controls or in other factors that could  significantly  affect internal
controls subsequent to September 30, 2002

                                       11

PART II.  OTHER INFORMATION

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

     (a)  Exhibits -

          Number Description
          ------ -----------

          *3.1 Articles  of  Incorporation  of  the  Registrant  and  Amendments
               thereto.

          &3.3  Amendment  to the  Company's  Articles of  Incorporation  to
               increase  the  number of shares of Class A Common  Stock that the
               Company  will  have   authority  to  issue  from   20,000,000  to
               40,000,000  shares,  approved by the Shareholders on November 19,
               1999and filed with the Secretary of State of Texas on December 3,
               1999.

          #3.2 Amendment  to the  Articles of  Incorporation  of the  Registrant
               changing the name of the  Registrant  to "GulfWest  Energy Inc.",
               approved by the  Shareholders  on May 18, 2001 and filed with the
               Secretary of Texas on May 21, 2001.

          *3.4 Bylaws of the Registrant.

          #10.1GulfWest  Oil Company 1994 Stock  Option and  Compensation  Plan,
               amended  and  restated as of April 1, 2001,  and  approved by the
               shareholders on May 18, 2001.
---------------

          *    Previously filed with the Registrant's Registration Statement (on
               Form S-1,  Reg.  No.  33-53526),  filed  with the  Commission  on
               October 21, 1992.

          &Previously   filed  with  the   Registrant's   Definitive   Proxy
               Statement, filed with the Commission on October 18, 1999.

          #    Previously   filed  with  the   Registrant's   Definitive   Proxy
               Statement, filed with the Commission on April 16, 2001.

     (b)  Form 8-K - None.

                                       12

                                   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 ENERGY INC.
                                        (Registrant)

Date:  November 18, 2002            by: /s/ Thomas R. Kaetzer
                                       --------------------------------
                                       Thomas R. Kaetzer
                                       President

Date:  November 18, 2002            by: /s/ Jim C. Bigham
                                       -----------------------------------------
                                       Jim C. Bigham
                                       Executive Vice President and Secretary

Date:  November 18, 2002            By: /s/ Richard L. Creel
                                       -----------------------------------------
                                       Richard L. Creel
                                       Vice President of Finance

                                       13

                                 CERTIFICATIONS

I, Thomas R. Kaetzer, certify that:

     1.   I have reviewed this quarterly  report on Form 10-Q of GulfWest Energy
          Inc.;

     2.   Based on my  knowledge,  this  quarterly  report  does not contain any
          untrue  statement of a material  fact or omit to state a material fact
          necessary to make the statements  made, in light of the  circumstances
          under which such  statements were made, not misleading with respect to
          the period covered by this quarterly report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this quarterly report,  fairly present in all
          material respects the financial  condition,  results of operations and
          cash flows of the registrant as of, and for, the periods  presented in
          this quarterly report;

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and have:

          a)   designed such  disclosure  controls and procedures to ensure that
               material  information  relating to the registrant,  including its
               consolidated  subsidiaries,  is made known to us by others within
               those  entities,  particularly  during  the  period in which this
               quarterly report is being prepared;

          b)   evaluated  the  effectiveness  of  the  registrant's   disclosure
               controls and  procedures as of a date within 90 days prior to the
               filing date of this quarterly report (the "Evaluation Date"); and

          c)   presented  in this  quarterly  report our  conclusions  about the
               effectiveness of the disclosure  controls and procedures based on
               our evaluation as of the Evaluation Date.

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's  board  of  directors  (or  persons
          performing the equivalent functions):

          a)   all  significant  deficiencies  in the  design  or  operation  of
               internal  controls which could adversely  affect the registrant's
               ability to record,  process,  summarize and report financial data
               and have  identified for the  registrant's  auditors any material
               weaknesses in internal controls; and

          b)   any fraud,  whether or not material,  that involves management or
               other employees who have a significant  role in the  registrant's
               internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this  quarterly  report  whether  there  were  significant  changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.

         Date:  November 18, 2002

                                           /s/  Thomas R. Kaetzer
                                          -------------------------
                                          Thomas R. Kaetzer
                                          President and Chief Executive Officer

                                 CERTIFICATIONS

I, Richard L. Creel, certify that:

     1.   I have reviewed this quarterly  report on Form 10-Q of GulfWest Energy
          Inc.;

     2.   Based on my  knowledge,  this  quarterly  report  does not contain any
          untrue  statement of a material  fact or omit to state a material fact
          necessary to make the statements  made, in light of the  circumstances
          under which such  statements were made, not misleading with respect to
          the period covered by this quarterly report;

     3.   Based on my knowledge,  the financial statements,  and other financial
          information  included in this quarterly report,  fairly present in all
          material respects the financial  condition,  results of operations and
          cash flows of the registrant as of, and for, the periods  presented in
          this quarterly report;

     4.   The registrant's  other certifying  officers and I are responsible for
          establishing  and maintaining  disclosure  controls and procedures (as
          defined in Exchange  Act Rules  13a-14 and 15d-14) for the  registrant
          and have:

          a)   designed such  disclosure  controls and procedures to ensure that
               material  information  relating to the registrant,  including its
               consolidated  subsidiaries,  is made known to us by others within
               those  entities,  particularly  during  the  period in which this
               quarterly report is being prepared;

          b)   evaluated  the  effectiveness  of  the  registrant's   disclosure
               controls and  procedures as of a date within 90 days prior to the
               filing date of this quarterly report (the "Evaluation Date"); and

          c)   presented  in this  quarterly  report our  conclusions  about the
               effectiveness of the disclosure  controls and procedures based on
               our evaluation as of the Evaluation Date.

     5.   The registrant's other certifying officers and I have disclosed, based
          on our most recent  evaluation,  to the registrant's  auditors and the
          audit  committee  of  registrant's  board  of  directors  (or  persons
          performing the equivalent functions):

          a)   all  significant  deficiencies  in the  design  or  operation  of
               internal  controls which could adversely  affect the registrant's
               ability to record,  process,  summarize and report financial data
               and have  identified for the  registrant's  auditors any material
               weaknesses in internal controls; and

          b)   any fraud,  whether or not material,  that involves management or
               other employees who have a significant  role in the  registrant's
               internal controls; and

     6.   The  registrant's  other  certifying  officers and I have indicated in
          this  quarterly  report  whether  there  were  significant  changes in
          internal controls or in other factors that could significantly  affect
          internal   controls   subsequent  to  the  date  of  our  most  recent
          evaluation,   including   any   corrective   actions  with  regard  to
          significant deficiencies and material weaknesses.

Date: November 18, 2002

                                                    /s/  Richard L. Creel
                                                    ---------------------------
                                                    Richard L. Creel
                                                    Vice President of Finance

November 18, 2002

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549

Re:  Certification Required Under Section 906 of Sarbanes-Oxley Act of 2002

In  connection  with the  accompanying  report on Form 10-Q for the period ended
September 30, 2002, and filed with the Securities and Exchange Commission on the
date hereof (the "Report"), We, Thomas R. Kaetzer, President and CEO of GulfWest
Energy Inc. (the "Company"),  and Richard L. Creel, Vice President of Finance of
the Company hereby certify that:

     1.   The report fully  complies with the  requirements  of Section 13(a) or
          15(d) of the Securities Exchange Act of 1934; and

     2.   The  information  contained  in the  Report  fairly  presents,  in all
          material respects,  the financial  condition and results of operations
          of the Company.

GulfWest Energy Inc.

/s/ Thomas R. Kaetzer
------------------------------------
By: Thomas R. Kaetzer
President and Chief Executive Officer

/s/ Richard L. Creel
------------------------------------
By: Richard L. Creel
Vice President of Finance
```