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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, 2001

                                       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.)

397 North Sam Houston Parkway East
           Suite 375
        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 14, 2001,  was 18,472,541
shares of Class A Common Stock, $.001 par value.

                              GULFWEST ENERGY INC.

                         FORM 10-Q FOR THE QUARTER ENDED
                               SEPTEMBER 30, 2001

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

Part I: Financial Information

Item 1. Financial Statements
Consolidated Balance Sheets, September 30, 2001
and December 31, 2000                                                3
Consolidated Statements of Operations for the three months
and nine months ended September 30, 2001 and 2000                    5
Consolidated Statements of Cash Flows for the nine
months ended September 30, 2001 and 2000                             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 6. Exhibits and Reports on 8-K                                  11

Signatures                                                           12

                                       2

                          PART I. FINANCIAL INFORMATION

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

                              GULFWEST ENERGY INC.
                           CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
                                   (UNAUDITED)

                                     ASSETS

                                                                           September 30,             December 31,
                                                                               2001                      2000
                                                                       ----------------------    ---------------------
                                                                       ----------------------    ---------------------

CURRENT ASSETS:
  Cash and cash equivalents                                            $             661,606     $             663,032
  Accounts Receivable - trade, net of allowance for
     doubtful accounts of -0- in 2001 and 2000                                     1,701,603                 2,188,421
  Prepaid expenses                                                                   215,232                    83,351
                                                                       ----------------------    ---------------------
          Total current assets                                                     2,578,441                 2,934,804
                                                                       ----------------------    ---------------------

OIL AND GAS PROPERTIES
  Using the successful efforts method of accounting                               50,673,043                30,895,049

OTHER PROPERTY AND EQUIPMENT                                                       2,301,228                 1,961,203
  Less accumulated depreciation, depletion
     and amortization                                                             (5,636,859)               (4,049,510)
                                                                       ----------------------    ---------------------

  Net oil and gas properties, and
     other property and equipment                                                 47,337,412                28,806,742
                                                                       ----------------------    ---------------------

OTHER ASSETS:
  Deposits                                                                            27,638                    27,638
  Investments                                                                                                  122,785
  Debt issue cost                                                                    540,388                   482,159
                                                                       ----------------------    ---------------------
          Total other assets                                                         568,026                   632,582
                                                                       ----------------------    ---------------------

TOTAL ASSETS                                                           $          50,483,879     $          32,374,128
                                                                       ======================    =====================

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

                                       3

                              GULFWEST ENERGY INC.
                           CONSOLIDATED BALANCE SHEETS
                    SEPTEMBER 30, 2001 AND DECEMBER 31, 2000
                                   (UNAUDITED)

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                                           September 30,             December 31,
                                                                               2001                      2000
                                                                       ----------------------    ---------------------
                                                                       ----------------------    ---------------------

CURRENT LIABILITIES
  Notes payable                                                        $            2,890,690    $             935,300
  Notes payable - related parties                                                      60,000                  700,000
  Current portion of long-term debt                                                 2,691,769                3,111,120
  Current portion of long-term debt - related parties                                 222,957                  303,296
  Accounts payable - trade                                                          3,322,379                2,189,656
  Accrued expenses                                                                    254,118                  355,614
                                                                       ----------------------    ---------------------
          Total current liabilities                                                9,441,913                 7,594,986
                                                                       ----------------------    ---------------------

LONG-TERM DEBT, net of current portion                                            28,373,176                17,960,455
                                                                       ----------------------    ---------------------
LONG-TERM DEBT, RELATED PARTIES                                                      232,600                   116,916
                                                                       ----------------------    ---------------------

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
  Preferred stock                                                                        170                        80
  Common stock                                                                        18,473                    18,445
  Additional paid-in capital                                                      28,150,332                23,537,900
  Retained deficit                                                               (15,732,785)              (16,854,654)
  Long-term accounts and notes receivable - related
     parties, net of allowance for doubtful accounts
     of $740,478 in 2001 and 2000
                                                                       ----------------------    ---------------------
          Total stockholders' equity                                              12,436,190                 6,701,771
                                                                       ----------------------    ---------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                                                   $          50,483,879     $          32,374,128
                                                                       ======================    =====================

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, 2001 AND 2001
                                   (UNAUDITED)

                                                                  Three Months                                Nine Months
                                                               Ended September 30,                        Ended September 30,
                                                            2001                 2000                 2001                  2000
                                                      -----------------    -----------------    ------------------    ------------------
OPERATING REVENUES
  Oil and gas sales                                   $       3,457,920    $       2,173,680    $        9,722,585    $        5,604,244
  Well servicing revenues                                        54,108               18,318               136,072               189,579
  Operating overhead and other income                           157,175               99,850               324,167               240,558
                                                      -----------------    -----------------    ------------------    ------------------
          Total Operating Revenues                            3,669,203            2,291,848            10,182,824             6,034,381
                                                      -----------------    -----------------    ------------------    ------------------
OPERATING EXPENSES
  Lease operating expenses                                    1,309,206              809,390             3,740,632             2,229,957
  Cost of well servicing operations                              53,555               23,307               136,911               206,637
  Depreciation, depletion and amortization                      795,298              320,390             1,838,371               801,829
  General and administrative                                    427,355              393,964             1,233,335             1,138,642
                                                      -----------------    -----------------    ------------------    ------------------
          Total Operating Expenses                            2,585,414            1,547,051             6,949,249             4,377,065
                                                      -----------------    -----------------    ------------------    ------------------

INCOME FROM OPERATIONS                                        1,083,789              744,797             3,233,575             1,657,316
                                                      -----------------    -----------------    ------------------    ------------------
OTHER INCOME AND EXPENSE
  Interest income                                                                                                                 15,247
  Interest expense                                             (707,244)            (605,250)           (1,993,452)           (1,527,485)
  Gain (loss) on sale of assets                                  (9,626)                 816              (118,254)                7,143
                                                      -----------------    -----------------    ------------------    ------------------
          Total Other Income and Expense                       (716,870)            (604,434)            2,111,706            (1,505,095)
                                                      -----------------    -----------------    ------------------    ------------------

INCOME BEFORE INCOME TAXES                                      366,919              140,363             1,121,869               152,221

INCOME TAXES
                                                      -----------------    -----------------    ------------------    ------------------
NET INCOME                                                      366,919              140,363             1,121,869               152,221
                                                      =================    =================    ==================    ==================
INCOME PER COMMON SHARE -
BASIC AND DILUTED                                     $             .02    $             .01    $              .06    $              .01
                                                      =================    =================    ==================    ==================

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, 2001 AND 2000
                                   (UNAUDITED)

                                                                                                   2001                 2000
                                                                                             ------------------   -----------------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                                                 $        1,121,869   $         152,221
  Adjustments to reconcile net income  to net cash
     provided by operating activities:
          Depreciation, depletion, and amortization                                                   1,838,371             801,829
          Common stock and warrants issued and charged to operations                                                         15,660
          (Gain) Loss on sale of assets                                                                 118,254              (7,143)
          Other non-operating (income)                                                                                       (5,780)
          (Increase) decrease in accounts receivable - trade, net                                       457,087          (1,137,833)
          (Increase) decrease in prepaid expenses                                                      (131,881)            (52,509)
          Increase (decrease) in accounts payable and accrued expenses                                1,031,227           1,257,128
                                                                                             ------------------    -----------------
               Net cash provided by operating activities                                              4,434,927           1,023,573
                                                                                             ------------------    -----------------

CASH FLOWS FROM INVESTING ACTIVITIES:
          Proceeds from sale and disposition of property and equipment                                  394,423              14,665
          Purchase of property and equipment                                                         (5,573,502)         (3,157,485)
                                                                                             ------------------    -----------------
               Net cash used in investing activities                                                 (5,179,079)         (3,142,820)
                                                                                             ------------------    -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
          Proceeds from sale or subscription of common stock                                                                857,878
          Payments on debt                                                                           (4,958,995)           (937,294)
          Proceeds from debt issuance                                                                 5,710,801           2,264,510
          Debt issue cost                                                                                (9,080)           (322,407)
                                                                                             ------------------    -----------------
               Net cash provided by financing activities                                                742,726           1,862,687
                                                                                             ------------------    -----------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                         (1,426)           (256,560)

CASH AND CASH EQUIVALENTS, beginning of period                                                          663,032             287,300
                                                                                             ------------------    -----------------
CASH AND CASH EQUIVALENTS, end of period                                                     $          661,606    $         30,740
                                                                                             ==================    =================

CASH PAID FOR INTEREST                                                                       $          672,028    $        353,220
                                                                                             ==================    =================

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, 2001 AND 2000 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.   Following is a schedule of income available to common shareholders:

                                                       Three Months                           Nine Months
                                                   Ended September 30,                    Ended September 30,
                                                 2001               2000                2001                2000
                                            ---------------    ----------------    ----------------    ---------------
Net Income                                  $      366,919     $       140,363     $     1,121,869     $      152,221
Dividends on preferred stock                        28,125                                  28,125
                                            ---------------    ----------------    ----------------    ---------------
Net income available to common
shareholders                                $      338,794     $       140,363     $     1,093,744     $      152,221
                                            ===============    ================    ================    ===============

5.   Non-cash Investing and Financing

     During  the nine  month  period  ended  September  30,  2001,  we  acquired
     $15,034,849 in property and equipment through  $10,422,299 in notes payable
     to financial  institutions and related parties,  by issuing 9,000 shares of
     preferred  stock valued at  $4,500,000,  by issuing 27,500 shares of common
     stock valued at $21,050, and by issuing 150,000 warrants valued at $91,500.

6.   We entered into an agreement with an energy lender, 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  Mmbtu  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 $ 1,096,971  for the  nine-month  period  ended
     September 30, 2001, which is included in oil and gas sales.

                                       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, 2001 compared to Three Month Period Ended
September 30, 2000.

Revenues

     Oil and Gas Sales.  Revenues from the sale of crude oil and natural gas for
the quarter increased 59% from $2,173,700 in 2000 to $3,457,900 in 2001, despite
lower oil and gas prices.  This was due to increased  production  as a result of
our acquisitions of additional properties and development activities. The volume
of oil and gas sales increased 138% and 45%, respectively.

     Well Servicing Revenues.  Revenues from well servicing operations increased
196% from $18,300 in 2000 to $54,100 in 2001,  due to more work being  performed
for third parties in 2001 compared to 2000.

     Operating  Overhead  and  Other  Income.  Revenues  from  these  activities
increased  57% from  $99,900 in 2000 to $157,200 in 2001.  This was due to a fee
received  for the  farm-out  of  exploration  rights  on one of our  undeveloped
properties.

                                       8

Costs and Expenses

     Lease  Operating  Expenses.  Lease  operating  expenses  increased 62% from
$809,400  in  2000  to  $1,309,200  in  2001.  This  was  primarily  due  to the
acquisition of additional  properties and increased costs related to greater oil
and gas production; and, to a lesser extent, higher vendor and contractor costs,
as well as  additional  field  activity to increase  production  on existing and
acquired properties.

     Cost of Well Servicing  Operations.  Well servicing expenses increased 130%
from  $23,300 in 2000 to $53,600  in 2001 due to more work being  performed  for
third parties in 2001 compared to 2000.

     Depreciation,  Depletion and Amortization  (DD&A).  DD&A  increased
148% from  $320,400  in 2000 to $795,300 in 2001,  due to  significantly  higher
production  as  a  result  of  additional  acquisitions  and  field  development
activities.

     General and Administrative  (G&A) Expenses.  G&A expenses increased
8% for the period from  $394,000  in 2000 to  $427,400 in 2001,  due to expenses
associated  with an increase in the number of oil and natural gas assets that we
manage.

     Interest  Expense.  Interest expense increased 17% from $605,300 in 2000 to
$707,200 in 2001,  primarily due to interest on debt  associated with additional
acquisitions and our capital development program.

Nine-Month  Period Ended September 30, 2001 compared to Nine-Month  Period Ended
September 30, 2000.

Revenues

     Oil and Gas Sales.  Revenues from the sale of crude oil and natural gas for
the period increased 73% from $5,604,200 in 2000 to $9,722,600 in 2001. This was
due to increased  oil and gas  production  from our  acquisitions  of additional
properties and development projects.

     Well Servicing Revenues.  Revenues from well servicing operations decreased
by 28% from $189,600 in 2000 to $136,100 in 2001. We had greater  utilization of
our rigs in the  development  of our  properties  rather than  working for third
parties in 2001 compared to 2000.

     Operating  Overhead  and  Other  Income.  Revenues  from  these  activities
increased 35% from $240,600 in 2000 to $324,200 in 2001.  This was due primarily
to a fee  received  for  the  farm-out  of  exploration  rights  on  one  of our
undeveloped properties.

Costs and Expenses

     Lease  Operating  Expenses.  Lease  operating  expenses  increased 68% from
$2,230,000 in 2000 to $3,740,600 in 2001, due to the  acquisitions of additional
properties,  greater  oil and gas  production,  and the  costs  related  to such
production.

     Cost of Well Servicing Operations. Well servicing expenses decreased by 34%
from  $206,600  in 2000  to  $137,000  in  2001.  This  was  due to  higher  rig
utilization  on  properties  where we have  100%  working  interest  and less on
working for third parties.

     Depreciation,  Depletion and Amortization  (DD&A).  DD&A  increased
129% from $801,800 in 2000 to $1,838,400 in 2001,  due to  significantly  higher
production   resulting  from  additional   acquisitions  and  field  development
activities.

                                       9

     General and Administrative  (G&A) Expenses.  G&A expenses increased
8% for the period from $1,138,600 in 2000 to $1,233,300 in 2001, due to expenses
associated  with an increase in the number of oil and natural gas assets that we
manage.

     Interest Expense. Interest expense increased 31% from $1,527,500 in 2000 to
$1,993,500 in 2001, due to debt associated with additional  acquisitions and our
capital development program.

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

     At September 30, 2001, our current liabilities  exceeded our current assets
by $6,863,472.  We had a profit of $366,919 for the quarter compared to a profit
of $140,363 for the period in 2000.

     During the third quarter of 2001,  we sold 89,808  barrels of crude oil and
445,227 Mcf of natural gas  compared to 37,727  barrels of crude oil and 307,736
Mcf of natural gas in the third quarter of 2000. Revenue for crude oil sales for
the quarter was  $2,088,104 in 2001 compared to $972,987 in 2000 and for natural
gas sales was $1,369,816 in 2001 compared to $1,200,693.

     On August 17,  2001,  we purchased  several oil and natural gas  properties
located  in four  fields  in Texas  and  Louisiana.  The  effective  date of the
acquisition was July 1, 2001. The acquired properties are currently producing an
aggregate  600 barrels of oil and 1,200 Mcf of natural  gas per day,  with total
proved reserves (net to the acquired interests) estimated at 1.2 million barrels
of oil and 9.5 billion cubic feet of natural gas. There are additional  possible
reserves  estimated at 10 billion cubic feet of natural gas. The purchase  price
of the acquisition was $15 million in a combination of notes payable,  preferred
stock,  cash,  warrants and common  stock.  Financing  was  arranged  through an
existing  credit  facility and included  expanding the company's  credit line to
continue the development of its properties through the year 2002.

                                       10

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.

         #10.1     GulfWest 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 -

          Current  Report on Form 8-K reporting  Item 2.  Acquisition of Assets,
          dated August 16, 2001, filed with the Commission on August 31, 2001.

                                       11

                                                     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 14, 2001            By: /s/ Thomas R. Kaetzer
                                       --------------------------------
                                       Thomas R. Kaetzer
                                       President

Date:  November 14, 2001            By: /s/ Jim C. Bigham
                                       -----------------------------------------
                                       Jim C. Bigham
                                       Executive Vice President and Secretary

Date:  November 14, 2001            By: /s/ Richard L. Creel
                                       -----------------------------------------
                                       Richard L. Creel
                                       Vice President of Finance
```