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  September 30, 1997
                                       -----------------------------------------

                                       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                      (I.R.S. Employer
   of 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 September 30, 1997, 1,260,997 shares of common stock were outstanding.
<PAGE>

<TABLE>
                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                                 Balance Sheets




<CAPTION>

                                                               September 30,
                                                                   1997       December 31,    
                    Assets                                      (unaudited)       1996
                    ------                                     -------------  -----------

Current assets:
<S>                                                             <C>             <C>    
     Cash and cash equivalents                                  $  912,169      833,654
     Marketable securities held-for-sale                           188,942      193,217
     Accounts receivable                                            21,922       24,414
     Interest and dividends receivable                               1,723        1,276
     Prepaid lease costs                                             3,810        2,649
                                                                ----------   ---------- 

     Total current assets                                        1,128,566    1,055,210

Investment in geothermal power unit, at cost,     
  less accumulated amortization of $127,454 
  in 1997 and $104,962 in 1996                                     699,745      722,237

Marketable securities held-to-maturity                              71,138       71,239
                                                                ----------   ----------

                                                                $1,899,449    1,848,686
                                                                ==========   ==========

       Liabilities and Stockholders' Equity
       ------------------------------------

Current liabilities:
     Accounts payable                                           $    9,402        6,793
     Income taxes payable                                           12,576        2,089
     Accrued liabilities                                            25,395       20,730
                                                                ----------   ----------
         Total current liabilities                                  47,373       29,612

Deferred income taxes                                              111,523      109,976
Deferred revenue                                                   990,497    1,022,335
Minority interest                                                   10,086       10,086


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           22,728        9,383
     Retained earnings                                             147,421       97,473
                                                                ----------   ----------

                                                                   739,970      676,677
                                                                ----------   ----------

                                                                $1,899,449    1,848,686
                                                                ==========   ==========
</TABLE>

See accompanying notes to financial statements.
<PAGE>

<TABLE>

                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Statements of Operations
                                  (Unaudited)
<CAPTION>




                                           Three months ended   Nine months ended
                                          -----------------------------------------               
                                           Sept. 30, Sept. 30, Sept. 30,  Sept. 30,
                                             1997      1996      1997       1996
                                          ---------- --------- ---------  ---------
<S>                                          <C>       <C>      <C>       <C>
Revenues - gross revenues from geothermal
   power unit                                42,008    40,929   125,132   122,514
                                            -------   -------   -------   -------
Expenses:
     Operating expenses of geothermal
       power unit                            13,544    15,658    44,952    47,746
     Amortization of geothermal power unit    7,497     7,497    22,492    22,492
     Lease costs                              1,161     1,161     3,483     3,483
     General and administrative              11,778     2,676    21,002    25,765
                                            -------   -------   -------   -------
                                             33,980    26,992    91,929    99,486
                                            -------   -------   -------   -------
          Income from operations              8,028    13,937    33,203    23,028

Other income and expenses:
     Interest  income                        10,252     8,517    29,488    27,831
     Dividend income                          1,747     2,212     5,404     5,685
     Royalty income                             259       394     1,025     1,146
                                            -------   -------   -------   -------
                                             12,258    11,123    35,917    34,662
                                            -------   -------   -------   -------

          Income before income taxes         20,286    25,060    69,120    57,690

Income tax expense                            7,100    10,499    19,171    17,054
                                            -------   -------   -------   -------

          Net income                        $13,186    14,561    49,949    40,636
                                            =======   =======   =======   =======

          Net income per share              $   .01       .01       .04       .03
                                            =======   =======   =======   =======
</TABLE>




See accompanying notes to financial statements.


<PAGE>





<TABLE>



                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Statements of Cash Flows
                                  (Unaudited)


<CAPTION>

                                                                           Nine months ended       
                                                                        ------------------------
                                                                         Sept. 30,     Sept. 30,
                                                                           1996          1996
                                                                        ----------    ----------  
Cash flows from operating activities:                       
<S>                                                                     <C>             <C>   
     Net income                                                         $  49,949       40,636
     Adjustments to reconcile net income to net cash 
       provided by operating activities:
          Amortization of geothermal power unit                            22,492       22,492
          Accretion on marketable securities held to maturity                 100           78
          Change in operating assets and liabilities:
               Accounts receivable                                          2,492         (255)
               Interest and dividends receivable                             (447)        (509)
               Prepaid lease costs                                         (1,161)      (1,161)
               Accounts payable                                             2,609      (13,595)
               Accrued liabilities                                          4,665        4,534
               Income taxes payable                                        10,487      (68,947)
               Deferred income taxes                                       (5,110)      (4,464)
               Deferred revenue                                           (31,837)     (31,837)
                                                                        ----------    ---------

               Net cash provided by/(used in) operating activities         54,239      (53,028)
                                                                        ----------    ---------

Cash flows from investing activities:
     Purchase of marketable securities                                       (724)        (608)
     Redemption of marketable securities                                   25,000           --
                                                                        ----------    ---------

Net cash provided by/(used in) investing activities                        24,276         (608)
                                                                        ----------    ---------

Increase (decrease) in cash and cash equivalents                           78,515      (53,636)

Cash and cash equivalents at beginning of period                          833,654      869,129
                                                                        ----------    ---------

Cash and cash equivalents at end of period                              $ 912,169      815,493
                                                                        ==========    =========
</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 September 30, 1997, and for the nine 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, 1996 and 1995.
     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 September 30, 1997, AGE's financial condition is consistent with December 31,
1996.  Income and expenses are consistent for both the three months and the nine
months ended September 30, 1997 and 1996.

Liquidity
---------

AGE's liquidity at September 30, 1997, is considered adequate with $1,081,193 in
working  capital.  AGE's future  commitments  consist of lease  payments on land
which  lies  within  the  participating  area  of  the  geothermal  power  unit.
Additionally, AGE is committed to furnish its share of steam from its investment
in the  geothermal  power  unit to Utah  Power & Light  (UP&L)  under a  30-year
agreement that commenced in 1991. 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 UP&L.

Other
-----

A tax rate of 35 percent was used for income tax calculations for 1997.  Current
estimates support 35 percent as the effective tax rate for the 1997 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)




November 6, 1997                           Dominic Welch       
---------------------------                -------------------------------------
Date                                       DOMINIC WELCH, Treasurer




November 6, 1997                           Peter W. G. Cayias  
---------------------------                -------------------------------------
Date                                       PETER W.G. CAYIAS, Secretary