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**Securities and Exchange CommissionWashington, D.C. 20549**

**Form 10-QSB**
**[X]**    **QUARTERLY REPORT PURSUANT TO SECTION 13      OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**      **For the quarterly period ended November 30, 2000**       **[  ]**    **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 0-24819**

**AMERICAN ENERGY SERVICES, INC.**
**Texas****76-0279288****(State or other jurisdiction ofincorporation or organization)****(IRS Employer Identification No.)**
**7224 Lawndale, Houston, TX 77012(Address of principal executive offices)**

**713-928-5311(Issuer's telephone number)**

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has beensubject to such filing requirements for the past 90 days.   Yes  X    No       

As of November 30, 2000, there were 9,335,342 shares of Common  Stock outstanding.

**PART I.   FINANCIAL INFORMATION**

**ITEM 1.   *****Financial Statements***

****AMERICAN ENERGY SERVICES, INC.BALANCE SHEETS(Unaudited)**

**ASSETS**
  **November 30,2000** **February 29,2000**Current Assets:         Cash and cash equivalents    $16,526      $75,778  Certificates of deposit     6,130      Accounts receivable — trade, net of $22,604 and $0 reserves     128,400       662,132  Accounts receivable — other     31,274       41,176  Income tax receivable     124,000       124,000  Prepaid Expenses     435,718       17,370  Costs in excess of billings on uncompleted contracts     1,489,562       1,491,996  Inventories     1,899,679       1,901,855               Total Current Assets     4,131,290       4,314,307  Property, Plant and Equipment:         Machinery and equipment     1,360,722       1,307,682  Furniture and fixtures     331,490       327,541  Vehicles     83,423       83,423  Buildings and Improvements     226,510       226,970  Land     76,894       76,894                     2,079,037       2,022,510  Less: Accumulated depreciation     (980,181)      (881,181)                    1,098,857       1,141,329  Trademarks, patents, and drawings     1,455,462       1,275,462  Less: Accumulated amortization     (480,164)      (378,545)                    975,297       896,917  Deferred tax asset     775,260       150,110  Other assets     204,542       193,819               Total Assets    $7,185,245      $6,696,482               
The accompanying notes are an integral part of these financial  statements.

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**AMERICAN ENERGY SERVICES, INC.  BALANCE SHEETS (Continued)  (Unaudited)**

**LIABILITIES AND STOCKHOLDERS' EQUITY**
  **November 30,2000** **February 29,2000**Current Liabilities:         Notes Payable    $2,698,819      $2,962,008  Current portion of long-term obligations     1,210,227       1,382,347  Current portion of capital leases     165,328       120,175  Accounts payable     609,375       1,400,993  Accrued expenses     461,709       448,421  Billings in excess of costs on uncompleted contracts     577,925       46,991  Advances from officers     26,300       32,500               Total Current Liabilities     5,749,683       6,393,435  Long-term obligation, net of current portion        Capital leases, net of current portion                     Total Liabilities     5,749,683       6,393,435  Stockholders' Equity:         Common stock, $0 par value, 100,000,000 shares authorized,9,335,342 shares issued and outstanding     6,949       6,949  Capital in excess of par value     2,365,725       989,634  Comprehensive Income (Loss)     97,843      Retained earnings     (1,034,954)      (693,536)              Total Stockholders' Equity     1,435,563       303,047               Total Liabilities and Stockholders' Equity    $7,185,245      $6,696,482               
The accompanying notes are an integral part of these financial  statements.

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**AMERICAN ENERGY SERVICES, INC.STATEMENT OF OPERATIONS(Unaudited)**
  **Three Months      Ended      November 30,** **Nine Months      Ended      November 30,**  **2000** **1999** **2000** **1999** Net Sales      $ 1,350,862        $ 1,794,175             4,655,243         5,239,602   Cost of sales       1,233,583         1,384,251             3,594,433         3,869,660                                    Gross profit       117,279         409,924             1,060,810         1,369,942   Operating expenses       174,133         396,894             919,208         1,030,550                                    Income (loss) from operations       (56,854 )        13,030             141,602         339,392   Other expenses (income):                  Interest, net       (89,699 )        134,686             10,877         407,162   Other, net       (3,508 )        5,283             (9,051 )        1,328                                           (93,207 )        139,969             1,826         408,490                                    Net income (loss) before taxes       36,353         (126,939 )            139,776         (69,098 )  Income tax (expense) benefit       (10,906 )        4,781             (41,933 )        0                                    Net income (loss)      $ 25,447        $ (122,158 )            97,843         (69,098 )                                   Basic earnings (loss) per common share      $ 0.00        $ (0.02 )            0.01         (0.01 )                                   Diluted earnings (loss) per common share      $ 0.00        $ (0.02 )            0.01         (0.01 )                                   Average shares outstanding       7,437,583         6,528,636             7,437,583         6,764,034                                    Average diluted shares outstanding       7,437,583         7,010,602             7,437,583         7,324,593                                    Net income (loss)      $ 25,447        $ (122,158 )             97,843          (69,098 )  Other comprehensive income (loss)       —         —             —         —                                    Comprehensive income (loss)      $ 25,447        $ (122,158 )             97,843          (69,098 )                                  
The accompanying notes are an integral part of these financial  statements.

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**AMERICAN ENERGY SERVICES, INC.STATEMENT OF CASH FLOWS(Unaudited)**
  **Three Months EndedNovember 30,** **Nine Months EndedNovember 30,**  **2000** **1999** **2000** **1999**Cash Flows from Operating Activities:                 Net income (loss)    $25,447      $(11,158)         $97,843      $41,902  Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:                 Depreciation and amortization     112,038       55,723           200,619       150,891  Changes in operating assets and liabilities:                 Decrease in receivables     137,748       323,470           561,006       69,839  Decrease in inventories     2,176       5,390           2,176       (517,103) (Increase) in costs in excess of billings on uncompleted contracts     872,535       (294,510)          2,434       (135,273) (Decrease) increase in accounts payable and accrued expenses     (410,027)      (492,045)          (778,330)      (1,708,381) Decrease in deferred tax asset     (625,150)              (625,150)     (Increase) in prepaids and other     (418,349)              (418,349)     Increase in billings in excess of cost on uncompleted contracts     531,000       207,626           530,934       899,773  Increase (decrease) in other assets/liabilities, net     (6,200)      (292,252)          (40,823)      (225,907)                              Net Cash Provided (Used) by Operating Activities     221,218       (497,756)          (467,640)      (1,424,259) Cash Flows from Investing Activities:                 Retirement (purchase) of property, plant and equipment     (600)      24,669           (56,528)      3,853  Retirement (purchase) of trademarks, patents and drawings     (60,000)      116,830           (180,000)      58,688  Redemption (purchase) of certificates of deposit      —               (6,130)                                  Net Cash Provided (Used) in Investing Activities     (60,600)      141,499           (242,658)      62,541  Cash Flows from Financing Activities:                 Capital contributions in excess of par     503,810       0           1,376,091       753,000  Net increase (payments) on lines ofcredit         37,753           191,302  Net (payments) on long-term obligations     (308,398)      (13,546)          (390,155)      (11,947)                              Net Cash (Used) Provided by Financing Activities     195,412       24,207           985,936       932,355  Prior year adjustment to retained earnings     (343,371)              (341,419)     Net (decrease) in cash and cash equivalents     12,659       (332,050)          (65,781)      (429,363) Cash and cash equivalents at beginning of period     9,997       256,197           75,778       353,510                               Cash and cash equivalents at end of period    $22,656      $(75,853)         $9,997      $(75,853)                              
The accompanying notes are an integral part of these financial  statements.

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**AMERICAN ENERGY SERVICESNOTES TO FINANCIAL STATEMENTS**

**NOTE 1 — General**

The foregoing financial statements have been prepared from the books and records of American Energy Services, Inc. (“AES” or the “Company”) without audit. In the opinion of management all adjustments, consisting onlyof normal recurring adjustments necessary for a fair statement of results for the interim periods presented, are reflected in the financial statements.

These statements should be read in conjunction with the financial statements and related notes included in the Company's Annual Report of Form 10-KSB for the fiscal year ended February 29, 2000 as well as the Quarterly Report on Form 10-QSB for the fiscal quarter ended August 31, 2000.

**NOTE 2 — Revenue Recognition**

Revenues are recorded when flow control valves sold are shipped or when title passes. Title passes from seller to buyer when the goods are shipped.

In most instances, sales involve a system of valves for a single installation and require long-term contracts. When jobs on a long-term contract progress to a point where final results can be estimated with reasonable accuracy, thepercentage-of-completion method is utilized. Percentages are derived by comparing costs incurred with the estimated total costs and calculated percentages are used to allocate anticipated total revenue and cost. If any losses on a contract-in-progressbecome apparent, that loss is charged against the job in the period it was recognized.

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

****Forward-Looking Statements**

This material contains “forward-looking” statements as defined in the Securities and Exchange Acts of 1933 and 1934 that could involve substantial risk and uncertainties. When expressions include words such as “anticipate”, “believe”, “estimate”, “intend”, “expect”, “plan”, and when similar expressions are used, they are intended to identify the statements as forward-looking. American Energy Services, Inc.(“AES” or the “Company”) relies on a variety of internal and external information to develop such statements. Due to the inherent risks and limitations in that development process and the relatively volatile nature of the industry inwhich the Company operates, actual results, performance and achievements may differ materially from results suggested by these forward-looking statements.

**Results of Operations**

***Three Months Ended November 30, 2000 versus Three Months Ended November 30, 1999***

**Revenues for the three months ended November 30, 2000 were $1,350,862 compared to $1,794,175 for the same period in 1999. This decrease is in part attributed to AES pursuit of certain international projects not awarded during thisquarter.

While cost of sales was down 11% or $150,668, the gross profit for the fiscal quarter ended November 30, 2000 was down as well at 29% below the three-month period ended November 30, 1999.

Operating expenses decreased significantly to $174,133 for three months ended November 30, 2000 as compared with $396,894 operating expenses for the prior year period. This decrease can be attributed to a very aggressive effort bymanagement to reduce operating cost.

Interest and other expenses for the three months ended November  30, 2000 decreased $134,686 compared to the same period of last year. This decrease  in interest expense is related to AES ongoing efforts to negotiate more favorable  terms on AES debt.

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Net income before taxes for the three months ended November 30, 2000 increased to $36,353 as compared to $(126,939) in pretax income for the previous year's three month period. This increase in net income can be directly attributed tooverhead cost reductions initiated by management during this quarter.

***Nine Months Ended November 30, 2000 versus Nine Months Ended November 30, 1999***

**Revenues for the nine months ended November 30, 2000 were $4,655,243 or $584,359 down from the same period of last year. The decrease in current year revenues can be attributed to managements requirement of secure pay terms as apart of AES order acceptance.

Cost of sales for the nine months period ended November 30, 2000 was down $275,227 as would be expected with lower prior year revenues. Further, gross profit dollars were down 23% compared to the same period of last year.

Operating expenses were down $113,342 in the nine months ended November 30, 2000 compared to the nine months ended November 30, 1999. This decrease can be attributed to a very aggressive effort by management to reduce operating cost.

Interest and other expenses for the nine months of the current fiscal year decreased $396,285 compared to the same period of last year. This is primarily due to renegotiations with debtors.

**Liquidity and Capital Resources**

The primary sources of the Company's liquidity for the nine months ended November 30, 2000 included cash available at the beginning of the year and more significantly capital contributed by the investing public. These funds were primarilyused for the reduction of accounts payable, as well as prepayments with several of AES vendors.

During the nine months ended November 30, 2000, the working capital deficit improved to $1,618,393 when compared to the deficit at February 29, 2000 of $2,079,128. In the past, short-term cash flows have been inadequate in the past toovercome the working capital deficit. However, AES management's continuing efforts to raise capital have benefited the Company's working capital position, as well as its ability to move forward with an aggressive five year strategic plan. Management iscontinually striving to improve its working capital position as well as grow the Company through a variety of alternatives. These alternatives may include, but are not limited to, debt restructuring, debt and equity offerings, cash flow reengineering,joint ventures, mergers and acquisitions. Because of the aggressive pursuit of such alternatives, the Company anticipates imminent improvement in its financial position. However, there is no guarantee that such improvements will occur, nor that suchcapital will be available when it is required or on terms that are acceptable to the Company.

A deferred tax asset of $775,260 was recognized by the company. It is management's position that the company will be able to realize this asset in the future.

There were no capital expenditures during the three months ended November 30, 2000. Only upon a continued and significant improvement in the Company's financial position, will capital expenditures be considered, and then only afterdiligent consideration and within stringent guidelines.

The decrease in retained earnings is due primarily to negative revenue adjustments, which were a result of modifications to certain contracts previously awarded to AES.

**Year 2000**

The year 2000 (“Y2K”) issue is the inability of computer  systems to recognize the change in year from 1999 to 2000. The issue affects  both information technology (“IT”) and non-IT systems. Because non-IT  systems are typically embedded technology, these are more difficult to assess  than IT systems and often require replacement rather than repair.

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AES has recognized the significant uncertainty associated with the Y2K issue and has tested its products for compliance. It is the Company's belief that substantially all necessary modifications have been made to its products.

However, the Company is still in the process of reviewing its internal computer systems. An outside vendor has assessed the Company's internal hardware and most of its software with regard to Y2K compliance. No “mission critical” systems have required significant modification or replacement, other than the management information system discussed below.

The Company recently contracted with Global Solutions (“InFiSy”) for installation and implementation of a new management information system. The new system will replace an obsolete legacy system. The decision during 1998 toreplace the existing system was influenced by the costs associated with making the obsolete system Y2K compliant. However, the decision was made primarily due to the need for a fully integrated MRP II (Material Resource Planning) system, the efficienciesto be gained, and the reasonable, very favorable terms under which InFiSy will be acquired. The cost of the InFiSy system, which will be amortized over its expected useful life is approximately $50,000, exclusive of some possible internal costs ofinstallation.

AES is also in the process of identifying and communicating with its suppliers and vendors where failure by such third parties to achieve Y2K compliance could have a material impact on the Company. For those suppliers or vendors who maypose a material risk, contingency plans are in development.

**PART II.   OTHER INFORMATION**

**Item 1.   *****Legal Proceedings***

**The Company is subject to legal proceedings and claims that arise in the ordinary course of business. In the opinion of management, the amount of ultimate liability with respect to these actions will not have a materially adverseaffect on the Company's results of operations or financial position.

**Item 5.   *****Exhibits and Reports on Form 8-K***

**a)   Exhibits

27 — Financial Data Schedule

b)   Reports of Form 8-K

None

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