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  June 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 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 June 30, 1997, 1,260,997 shares of common stock were outstanding.



<PAGE>



                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                                 Balance Sheets


<TABLE>
<CAPTION>



                                     Assets
                                                                                    June 30,   December 31,
                                                                                      1997          1996
                                                                                   (unaudited)
Current assets:
<S>                                                                                <C>             <C>    
Cash and cash equivalents                                                          $  877,954      833,654
Marketable securities held-for-sale                                                   203,683      193,217
Accounts receivable                                                                    21,749       24,414
Interest and dividends receivable                                                       1,276        1,276
Prepaid lease costs                                                                     1,996        2,649
Total current assets                                                                1,106,658    1,055,210
                                                                                   ----------    ---------
Investment in geothermal power unit, at cost, less accumulated amortization of
$119,957 in 1997 and $104,962 in 1996                                                 707,242      722,237
                                             
Marketable securities held-to-maturity                                                 71,172       71,239
                                                                                   ----------    ---------
                                                                                   $1,885,072    1,848,686
                                                                                   ==========    =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable                                                                   $   10,045        6,793
Income taxes payable                                                                   11,567        2,089
Accrued liabilities                                                                    23,825       20,730
                                                                                   ----------    ---------
Total current liabilities                                                              45,437       29,612
Deferred income taxes                                                                 108,069      109,976
Deferred revenue                                                                    1,001,109    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                                   16,314        9,383
Retained earnings                                                                     134,236       97,473
                                                                                   ----------    ---------
                                                                                      720,371      676,677
                                                                                   ----------    ---------
                                                                                   $1,885,072    1,848,686
                                                                                   ==========    =========

</TABLE>



See accompanying notes to financial statements.

<PAGE>





                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Statements of Operations
                                  (Unaudited)



<TABLE>
<CAPTION>

                                           Three months ended    Six months ended
                                             June 30, June 30,  June 30,  June 30, 
                                              1997     1996      1997      1996
Revenues - gross revenues from geothermal
<S>                                          <C>       <C>       <C>       <C>   
   power unit                                41,716    40,842    83,124    81,585
                                             ------    ------    ------    ------
Expenses:
Operating expenses of geothermal
   power unit                                17,647    14,744    31,408    32,088
Amortization of geothermal power unit         7,498     7,498    14,995    14,995
Lease costs                                   1,161     1,161     2,322     2,322
General and administrative                    6,304    14,988     9,224    23,089
                                             ------    ------    ------    ------
                                             32,610    38,391    57,949    72,494
                                             ------    ------    ------    ------
Income from operations                        9,106     2,451    25,175     9,091
     
Other income and expenses:
Interest  income                              9,729     8,852    19,236    19,314
Dividend income                               2,229     2,093     3,657     3,473
Royalty income                                  387       558       766       752
                                             ------    ------    ------    ------
                                             12,345    11,503    23,659    23,539
                                             ------    ------    ------    ------

Income before income taxes                   21,451    13,954    48,834    32,630
Income tax expense                            3,141     2,030    12,071     6,555
                                             ------    ------    ------    ------
Net income                                  $18,310    11,924    36,763    26,075
                                             ======    ======    ======    ======
Net income per share                        $   .01       .01       .03       .02
                                             ======    ======    ======    ======

</TABLE>



See accompanying notes to financial statements.



<PAGE>



                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                            Statements of Cash Flows
                                  (Unaudited)


<TABLE>
<CAPTION>


                                                                                Six months ended

                                                                              June 30,      June 30,
                                                                                 1997         1996

Cash flows from operating activities:
<S>                                                                          <C>             <C>   
     Net income                                                              $  36,763       26,075
     Adjustments to reconcile net income to net cash provided by operating
      activities:
          Amortization of geothermal power unit                                 14,995       14,995
          Accretion on marketable securities held to maturity                       67           52
          Change in operating assets and liabilities:
               Accounts receivable                                               2,665         (163)
               Interest and dividends receivable                                  --           (321)
               Prepaid income taxes                                               --         (2,856)
               Prepaid lease costs                                                 653          663
               Accounts payable                                                  3,252      (13,395)
               Accrued liabilities                                               3,095        3,018
               Income taxes payable                                              9,478      (68,269)
               Deferred income taxes                                            (5,109)      (5,651)
               Deferred revenue                                                (21,226)     (21,225)
                                                                           -----------    ---------
               Net cash provided by/(used in) operating activities             (44,633)     (67,077)
                                                                           -----------    ---------
Cash flows from investing activities:
     Purchase of marketable securities                                            (333)        (245)
                                                                           -----------    ---------
          Net cash used in investing activities                                   (333)        (245)
                                                                           -----------    ---------
Increase (decrease) in cash and cash equivalents                                44,300      (67,322)
                                                                        
Cash and cash equivalents at beginning of period                               833,654      869,129
                                                                           -----------    ---------
Cash and cash equivalents at end of period                                   $ 877,954      801,807
                                                                           ===========    =========

</TABLE>



See accompanying notes to financial statements.

                     AMERICAN GEOLOGICAL ENTERPRISES, INC.

                      Notes and Disclosures to Form 10-QSB



1.      Presentation

        The  financial  statements  as of June 30, 1997,  and for the six 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 June 30, 1997,  AGE's  financial  condition is  consistent  with December 31,
1996.  Income and  expenses  for the three months ended and the six months ended
June 30, 1997 and 1996 are  consistent  except for  general  and  administrative
expenses that increased in 1996 due to increased professional fees.

Liquidity

AGE's  liquidity at June 30, 1997,  is considered  adequate  with  $1,061,221 in
working  capital.  AGE is  committed  to  furnish  its  share of steam  from its
investment  in a  geothermal  power unit to Utah  Power & Light  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 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)



August 15, 1997                            Dominic Welch
-----------------                          ----------------------------
Date                                       DOMINIC WELCH, Treasurer




August 15, 1997                            Peter W. G. Cayias
-----------------                          ----------------------------
Date                                       PETER W.G. CAYIAS, Secretary