FORM 10-QSB.-- QUARTERLY REPORT UNDER SECTION 13
                OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
                    (Last amended by 34-32231, eff. 6/3/93)

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB



[X]      Quarterly  Report Under Section 13 or 15(d) of the Securities  Exchange
         Act of 1934 For the quarterly period ended March 31, 1998

                                       or

[ ]      Transition  Report  Under  Section 13 or  15(d) of the Exchange Act For
         the transition period from ________________ to __________________

Commission file number  2-54020

                     American Geological Enterprises, Inc.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

            Utah                                                 87-0273300
-------------------------------                              -------------------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                 1102 Walker Center Salt Lake City, Utah 84111
--------------------------------------------------------------------------------
                   (Address of principal executive officers)

                                 (801) 363-3283
--------------------------------------------------------------------------------
                        (Registrant's telephone number)

--------------------------------------------------------------------------------
   (Former name, former address, and former fiscal year, if changed since last
                                     report)



Check  whether  the  registrant  (1) filed all  reports  required to be filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 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.

                                                          [X]   Yes     [ ]   No



As of March 31, 1998, 1,260,997 shares of common stock were outstanding.


<PAGE>

<TABLE>
                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                                 Balance Sheets





<CAPTION>
                                                                               March 31,    
                                                                                 1998      December 31,    
                                 Assets                                       (unaudited)     1997         
                                 ------                                       -----------  -----------         
  
<S>                                                                           <C>             <C>    
Current assets:
     Cash and cash equivalents                                                $  938,350      935,431
     Marketable securities held-for-sale                                         203,261      192,365
     Accounts receivable                                                           6,648       22,025
     Interest and dividends receivable                                             1,723        1,276
     Prepaid lease costs                                                           3,158        2,649
                                                                             -----------  -----------
          Total current assets                                                 1,153,140    1,153,746

Investment in geothermal power unit, at cost, less accumulated 
     amortization of $142,449 in 1998 and $134,951 in 1997                       684,750      692,248

Marketable securities held-to-maturity                                            70,968       71,106
                                                                             -----------  -----------
                                                                              $1,908,858    1,917,100
                                                                             ===========  ===========

                      Liabilities and Stockholders' Equity
                      ------------------------------------
Current liabilities:
     Accounts payable                                                         $    9,495        7,751
     Income taxes payable                                                         11,396       18,374
     Accrued liabilities                                                          13,231       27,286
     Deferred income taxes                                                        15,073       11,009
                                                                             -----------  -----------

          Total current liabilities                                               49,195       64,420

Deferred income taxes                                                             93,599       95,803
Deferred revenue                                                                 969,272      979,885
Minority interest                                                                 11,152       11,152

Stockholders' equity:
     Common stock, $.01 par value; authorized 2,500,000 shares; issued and
          outstanding 1,260,997 shares                                            12,610       12,610
     Additional paid-in capital                                                  557,211      557,211
     Unrealized gain on marketable securities, net of tax                         25,338       18,506
     Retained earnings                                                           190,481      177,513
                                                                             -----------  -----------

                                                                                 785,640      765,840
                                                                             -----------  -----------

                                                                              $1,908,858    1,917,100
                                                                             ===========  ===========
</TABLE>



See accompanying notes to financial statements.
<PAGE>

                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Statements of Operations
                                  (Unaudited)



                                                      Three months ended  
                                                      ------------------  
                                                      March 31, March 31, 
                                                        1998      1997
                                                      --------  --------

Revenues - gross revenues from geothermal power unit   $42,560    41,408
                                                      --------  --------
Expenses:
     Operating expenses of geothermal power unit        14,772    13,761
     Amortization of geothermal power unit               7,498     7,497
     Lease costs                                         1,161     1,161
     Other general and administrative                   12,341     2,920
                                                      --------  --------
                                                        35,772    25,339
                                                      --------  --------
          Income from operations                         6,788    16,069

Other income and expenses:
     Interest income                                     8,694     9,507
     Dividend income                                       899     1,428
     Royalties                                              87       379
                                                      --------  --------
                                                         9,680    11,314
                                                      --------  --------

          Income before income taxes                    16,468    27,383

Income tax expense                                       3,500     8,930
                                                      --------  --------
          Net income                                   $12,968    18,453
                                                      ========  ========

          Net income per share                         $   .01       .01
                                                      ========  ========





See accompanying notes to financial statements.


<PAGE>



<TABLE>


                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Statements of Cash Flows
                                  (Unaudited)




<CAPTION>
                                                                       Three months ended      
                                                                     -----------------------
                                                                     March 31,    March 31,
                                                                       1998         1997        
                                                                     ---------    ---------        

<S>                                                                  <C>             <C>   
Cash flows from operating activities:
     Net income                                                      $  12,968       18,453
     Adjustments to reconcile net income to net cash provided by
       (used in) operating activities:
          Amortization of geothermal power unit                          7,498        7,497
          Accretion on marketable securities held to maturity              138           33
          Change in operating assets and liabilities:
               Accounts receivable                                      15,377        2,906
               Interest and dividends receivable                          (447)        (447)
               Prepaid lease costs                                        (509)        (508)
               Accounts payable                                          1,744            0
               Income taxes payable                                     (6,978)      11,268
               Accrued liabilities                                     (14,055)       1,540
               Deferred income taxes                                    (2,204)      (2,472)
               Deferred revenue                                        (10,613)     (10,613)
                                                                     ---------    ---------        
               Net cash provided by (used in) operating activities       2,919       27,657
                                                                     ---------    ---------        

Increase (decrease) in cash and cash equivalents                         2,919       27,657

Cash and cash equivalents at beginning of period                       935,431      833,654
                                                                     ---------    ---------        

Cash and cash equivalents at end of period                           $ 938,350      861,311
                                                                     =========    =========        
</TABLE>





See accompanying notes to financial statements.


<PAGE>

                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                      Notes and Disclosures to Form 10-QSB



1.      Presentation
        ------------

        The financial  statements as of March 31, 1998, and for the three months
then ended were prepared by American Geological Enterprises,  Inc. (AGE) without
audit  pursuant to the rules and  regulations  of the  Securities  and  Exchange
Commission (SEC). Certain information and footnote disclosures normally included
in the financial  statements  prepared in  accordance  with  generally  accepted
accounting  principles have been condensed or omitted pursuant to such rules and
regulations.  In the opinion of  management,  all necessary  adjustments  to the
financial statements have been made to present fairly the financial position and
results of operations and cash flows.  The results of operations for the periods
presented  are not  necessarily  indicative  of the results  for the  respective
complete  years.  AGE has  previously  filed with the SEC a Form  10-KSB,  which
included audited financial statements for the two years ending December 31, 1997
and 1996. It is suggested that the financial statements contained in this filing
be read in conjunction with the statements and notes thereto  contained in AGE's
Form 10-KSB filing.


2.      Net Income Per Share
        --------------------

        Net income per share is computed by dividing  net income by the weighted
average number of shares outstanding during each period.


<PAGE>

                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

          Management's Discussion and Analysis of Financial Condition
                           and Results of Operations



AGE is engaged in the acquisition of geothermal and oil and gas leases.  Revenue
consists of royalties and  interest.  AGE's  financial  condition and results of
operations  fluctuate  from year to year,  depending  upon the  production  from
current leases,  the availability of leases to be acquired,  and the opportunity
to sell lease  rights.  AGE's  ability to obtain  future  leases or to  generate
revenues from the sale of lease rights is not determinable; hence, its financial
condition and operations may fluctuate widely in the future.

Financial Condition & Results of Operations
-------------------------------------------

At March 31, 1998,  AGE's  financial  condition is consistent  with December 31,
1997. Income and expenses for the first quarters of 1998 and 1997 are consistent
except for other  general and  administrative  expenses  and income tax expense.
Other general and  administrative  expenses  increased in 1998 due to accounting
fees  related  to a prior year tax  audit.  Income tax  expense in 1998 does not
reflect the expected tax rate due to the change in long-term deferred taxes.

Liquidity
---------

AGE's  liquidity at March 31, 1998,  is considered  adequate with  $1,103,945 in
working  capital.  AGE is  committed  to  furnish  its  share of steam  from its
investment in a geothermal  power unit to PacifiCorp  under a 30-year  agreement
that commenced in 1991. Additionally,  AGE's future commitments consist of lease
payments on the land which lies within the participating  area of the geothermal
power unit.  There are no other  commitments  or anticipated  expenditures  of a
capital nature.

AGE's economic  future will be dependent,  in major part,  upon the value of its
undeveloped   interests  in  the  geothermal  power  unit.  The  value  of  such
undeveloped  interests will, in turn, be dependent upon, among other matters (a)
the then  current  price of  energy;  (b)  governmental  incentives  to  develop
renewable  resources;  (c)  regulatory  incentives;  and (d) the  load  needs of
PacifiCorp.

Other
-----

A tax rate of 34.6  percent  was used for  income  tax  calculations  for  1998.
Current  estimates  support 34.6 percent as the effective tax rate for the 199 8
year.



<PAGE>

                                    Part II

                               Other Information



There is no  information  to be  submitted  under Part II,  and no reports  were
required to be filed under Form 8-K during the period.








                              S I G N A T U R E S


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


                                           AMERICAN GEOLOGICAL ENTERPRISES, INC.
                                           (Registrant)




May 15, 1998                               Dominic Welch    
------------------------------             -------------------------------------
Date                                       DOMINIC WELCH, Treasurer




May 15, 1998                               Peter W. G. Cayias                  
------------------------------             -------------------------------------
Date                                       PETER W.G. CAYIAS, Secretary