FORM 10-QSB


                    SECURITIES AND EXCHANGE COMMISSION
                          WASHINGTON, D.C. 20549


                                (MARK ONE)
           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                  OF THE SECURITIES EXCHANGE ACT OF 1934.

             FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1995.

                                    OR

           [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
                  OF THE SECURITIES EXCHANGE ACT OF 1934.

                        COMMISSION FILE NO. 0-13933

                        THERMAL EXPLORATION COMPANY

          (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


     California                                   94-2185688
(State or other jurisdiction          (I.R.S. identification No.)
of incorporation or organization)

            11525 Caroline Lane, Nevada City, California  95959

                 (Address of principal executive offices)

     Registrant's telephone number including area code: (916) 265-0653

     Check whether the issuer (1) filed all reports required to be filed by
Section  13 or 15(d) of the Securities Exchange Act of 1934 during the past
twelve months  (or for such shorter period that the registrant was required
to file such reports),  and (2) has been subject to the filing requirements
for the past 90 days.  Yes  X  No___

     The number of shares outstanding of the issuer's common
           stock, as of December 31, 1995  is 17,050,528
             


Thermal\10QSB2A9.WPD

<PAGE>
Part I - Financial Information

Item 1.Financial Statements

Thermal Exploration Company
Statements of Financial Position
(Unaudited)


                                             Dec. 31, 1995       June 30, 1995

Assets
  Cash & Cash Equivalents                   $         261        $         958
     Receivables                                    8,800               75,497
          Total Current Assets                      9,061               76,455
Deferred Exploration Costs and
     Mineral Claims                             1,676,443            1,591,095
Other                                                 516                  630
Total Assets                                $   1,686,020        $   1,668,180
Liabilities and Shareholders' Equity
     Accounts Payable and Accrued Expenses  $     230,281        $      97,494
          Total Current Liabilities               230,281               97,494
     Accounts Payable to be Refinanced                -0-              108,000
          Total Liabilities                       230,281              205,494
Convertible Series A Preferred Stock
     5,000,000 Shares Authorized: shares
     issued and outstanding: December 31,
     1995: 120,000; June 30, 1995: 155,000;
     $3.00 Per Share Liquidation Preference        76,561              465,000
Common Stock, 100,000,000 Shares
     Authorized, No Par: shares issued and
     outstanding: December 31, 1995:
     17,050,518; June 30, 1995: 16,415,528      7,246,910            6,730,910
Accumulated Deficit                            <5,867,732>          <5,733,224>
          Total Shareholders' Equity            1,455,739            1,462,686
          Total Liabilities and
               Shareholders' Equity         $   1,686,020         $  1,668,180









   The Accompanying Notes are an Integral Part of These Financial Statements.



Thermal\10QSB2A9.WPD

<PAGE>
Thermal Exploration Company
Statements of Operations
(Unaudited)



                                   For the Three Months     For the Six Months
                                    Ended December 31       Ended December 31
                                 1995             1994      1995           1994
Revenue:
       Income                 $     -0-      $     -0-    $     -0-   $     -0-
          Total                     -0-            -0-          -0-         -0-
Expenses:
     Consulting Fees
          & Contract Labor        5,820         10,680       17,040     19,500
     Professional Fees           42,197         16,250       96,010     18,106
     Rent & Utilities             2,580          3,278        5,417      5,882
     Stock Maintenance            2,880          2,540        6,986      5,192
     Travel                         257            128          712        449
     Other                        3,570          4,361        6,824      8,356
          Total Expenses         57,304         37,237      132,989     57,485
     Gain on Sale of Assets         -0-          3,715          -0-     44,433
     Interest Income                517            407          518        408
     Currency Gain <Loss>           -0-           <820>      <1,137>      <455>
     Miscellaneous Income           -0-          7,484          -0-      7,484
          Loss from Operations  <56,787>       <26,451>    <133,608>    <5,615>
     Provision for Income Tax       100            -0-          900        800
          Net Loss             $<56,887>      $<26,451>   $<134,508>   $<6,415>
Net Loss Per Share             $    -0-       $   <.01>   $    <.01>   $   -0-
Common Shares Outstanding    17,050,528     14,865,531   17,050,528 14,865,531









   The Accompanying Notes are an Integral Part of These Financial Statements.


Thermal\10QSB2A9.WPD

<PAGE>
Thermal Exploration Company
Statements of Cash Flows
(Unaudited)




                                                  For the Six Months Ended
                                                           December 31,
                                                     1995               1994

Cash Flows From Operating Activities:
Net Loss                                         $ <134,508>      $    <6,415>
Adjustments to Reconcile Net
  Loss to Cash Provided By
  Operating Activities:
     Depreciation                                       114               270
     Amortization of Intangibles                        -0-               471
     Gain on Sale of Assets                             -0-           <44,433>
     Decrease <Increase> in Receivables              66,697              <600>
     Increase in Accounts Payable and Accrued
       Expenses for Operating Items                 144,953             6,219
     Payments of Accounts Payable to be
       Refinanced                                  <108,000>          <71,000>
       Net Cash Flows From
          Operating Activities                      <30,744>         <115,488>
Cash Flows From Investing Activities:
     Investment in Joint Venture                   <111,445>           <7,679>
Cash Flows From Financing Activities:
     Proceeds from Sale of Asset                        -0-            24,248
     Proceeds of Stock Issue                        111,000            72,000
     Proceeds from Borrowings from Western           30,492
       Net Cash Flows from Financing Activities     141,492            96,248
Net Decrease in Cash                                   <697>          <26,919>
Cash at Beginning of Period                             958            29,330
Cash at End of Period                             $     261       $     2,411
Schedule of Noncash Financing Activities:
     Securities Received on Sale of Investment in
       Mining Claim                                               $    44,433
       Conversion of Preferred Stock to
         Common Stock                             $ 405,000
       Conversion of Debt to Preferred Stock      $  16,561







   The Accompanying Notes are an Integral Part of these Financial Statements.

<PAGE>

Thermal Exploration Company
Notes to Financial Statements
December 31, 1995
(Unaudited)




Note 1 - Financial Statements

The statement of financial position as of December 31, 1995, the statements of
operations for the six month periods ended December 31, 1995 and 1994, and the
statements of cash flows for the six month periods then ended have been
prepared by the Company without audit.  In the opinion of management, all
necessary adjustments have been made to present fairly the financial position,
results of operations, and  the cash flows  for all periods presented.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted.  It is suggested that these financial
statements be read in conjunction with the audited financial statements and
notes thereto included in the Company's June 30, 1995, Annual Report to
shareholders.  The results of operations for the periods ended December 31,
1995 and 1994, are not necessarily indicative of the operating results for
these full years.


Note 2 - Related Parties

On November 2, 1995, the Company's president was appointed to also serve as
president of Western Copper Holdings Limited (Western), the Company's joint
venture partner in the Carmacks Copper Project.


Note 3 - Equity

During the quarter ended December 31, 1995, 135,000 shares of Series A
Preferred Stock were converted into 135,000 shares of common stock.  In
addition, during the quarter ended December 31, 1995, 100,000 shares of Series
A Preferred were issued in exchange for the cancellation of U.S. $16,561 in
liabilities.  In connection with the issuance of the Series A Preferred Stock,
the holder granted a proxy to the Board of Directors of the Company to vote
such stock.

Note 4 - Related Party Payable

Included in accounts payable and accrued expenses are amounts owed to Western.
At December 31, 1995 the Company owed Western $117,700, consisting of accrued
costs for the joint venture and certain cash advances.


Thermal\10QSB2A9.WPD

<PAGE>
Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

MANAGEMENT'S DISCUSSION AND  ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

A.   LIQUIDITY AND CAPITAL RESOURCES

     Thermal Exploration Company (the "Company") had a cash balance of $261
as of December 31, 1995, a decrease  of  $697  from the previous balance of
$958 as at June 30, 1995. Total liabilities as at  December  31,  1995 were
$230,281 as compared to $205,494 on June 30, 1995. The decrease in the cash
balance  is  insignificant  with  respect  to  day  to  day operations. The
increase in liabilities is attributable to exploration expenses incurred by
the  Company  to  Western Copper Holdings Limited ("Western  Copper"),  its
joint venture partner  in  the  Carmacks Copper Project, loans from Western
Copper  for the proposed Arrangement  involving  the  Company  and  Western
Copper, and  day  to  day  operating expenses. As of December 31, 1995, the
Company owes Western Copper  approximately  $117,700.  The  Company  has no
current  obligations other than day to day administrative expenses and  its
on-going  commitment  to  fund  its  50%  joint  venture  interest  in  the
exploration  and  development of the Carmacks Copper Project near Carmacks,
Yukon.  The Company  currently  has  no revenue generating activity, and is
dependent on corporate loans from Western  Copper  and  equity financing to
meet its short term and joint venture obligations.

     During December 1995, a holder of 135,000 shares of Series A Preferred
Stock  converted  such  stock  into  135,000  shares of common  stock.   No
proceeds  were received by the Company.  In addition,  the  Company  issued
100,000 shares of Series A Preferred Stock in exchange for the cancellation
of  $16,561   in   liabilities   due   to   Queenston   Mining  Corporation
("Queenston").   Each  share  of  Series A Convertible Preferred  Stock  is
convertible into one share common stock.   In connection with the issuance,
Queenston gave the Board of Directors of the  Company  a proxy to vote such
Preferred Stock.

     The  Company  and  Western  Copper  are  currently proceeding  with  a
reorganization  pursuant  to  an Arrangement whereby  shareholders  of  the
Company shall receive one common  share  of  Western  Copper  for each five
common  shares  of Thermal.  It is also proposed that Thermal shareholders,
other than Western Copper, will receive shares in Pacific Cascade Resources
Corporation ("Pacific"),  a  to-be-formed  corporation  whose  assets  will
consist  of  all  of  the  assets of Thermal other than its interest in the
Carmacks Project.  All liabilities will remain with Thermal.  The assets to
be transferred to Pacific have  nominal  value.  The Arrangement is subject
to shareholder, regulatory, and court approval.

     Rothschild Australia Ltd. ("Rothschild")  has  entered  into  a letter
agreement  to  loan Cdn $2.5 million to Western Copper to be used primarily
for engineering  of  the Carmacks Project.  Under the letter agreement, the
loan to Western has been  guaranteed  by  Thermal  and  will  be secured by
Thermal's  interest  in  the  Carmacks  Copper  Project.  The financing  is
subject  to  Western  and Rothschild entering into a  definitive  agreement
expected to close on February 23, 1996.

     Thermal  and  Western   Copper   are  also  holding  discussions  with
Rothschild  which could lead to senior equity  and  debt  funding  for  the
Carmacks Copper  Project.   There  is  no  assurance  that  these financing
discussions will be successful.

     The Company has no operating revenues and is entirely dependent on its
ability to either borrow funds from Western Copper, or raise  funds through
the  sale  of  assets  or  the  sale  of  its  common  shares  to  meet its
administrative and exploration/development obligations.

     In  the  event  that  the  Arrangement  with  Western is not effected,
Thermal will be required to meet its obligations to  the joint venture.  In
the  event  Thermal fails to meet these obligations, its  interest  in  the
joint venture may be diluted.

B.   RESULTS OF OPERATIONS

     During the  three month period ended December 31, 1995 the Company had
no operating revenue.   The  Company  also had no operating revenue for the
corresponding three month period in 1994.  The  Company does not anticipate
receiving  any  significant  income prior to placing  the  Carmacks  Copper
Project  into  production.  To meet  its  monthly  operating  expenses  the
Company will need to raise additional funds by loans from Western Copper or
through the sale  of  assets  or  the private placement of its preferred or
common stock.

     Total operating expenses for the three month period ended December 31,
1995 were $57,304 which represents  an  increase  of $20,067 from the prior
year's  corresponding  period  when  operating  costs  were  $37,237.   The
increase is primarily the result of legal and accounting  costs  associated
with the proposed Arrangement with Western Copper.

     During  the  next  twelve  months,  the joint venture expects to incur
substantial costs of approximately $2,000,000  (Cdn)  to develop and permit
the  Carmacks  Copper Projects.  The joint venture intends  to  fund  these
expenses through  a  $2,5000,000  (Cdn)  loan  from   Rothschild to Western
Copper.  Thermal has guaranteed repayment of the loan and  has  secured its
repayment  with  its  joint  venture interest in the Carmacks Project.   As
discussed  above,  the financing  is  subject  to  Western  and  Rothschild
entering into a definitive  agreement  expected  to  close  on February 23,
1996.



Thermal\10QSB2A9.WPD

<PAGE>
     In  the  event the proposed Arrangement with Western is not  effected,
Thermal will be  responsible for its pro rata expenses to the joint venture
and obligations under the guaranty to the Rothschild loan.


PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

     None

ITEM 2.   CHANGES IN SECURITIES

     None

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

     None

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None

ITEM 5.   OTHER INFORMATION

     On  November 1,  1995  Prime  Equities  International  Corporation,  a
Canadian mining  company,  acquired  Teck  Corporation's  35%  interest  in
Western  Copper  and  became  the  largest  shareholder  of Western Copper.
Western  Copper  is  the  Company's  joint venture partner in the  Carmacks
Copper   Project   and  is  the  Company's  largest   shareholder,   owning
approximately 34% of  the  outstanding  common  stock  of  the Company.  In
connection with the transaction, Dale Corman, President of and  a  director
of the Company, is now President of and a director of Western Copper.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     None




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<PAGE>
                                 SIGNATURE

In accordance with the requirements of the Securities Exchange Act of 1934,
the  registrant  caused  this  report  to  be  signed  on its behalf by the
undersigned, thereunto duly authorized.

THERMAL EXPLORATION COMPANY


February 23rd, 1996           By:____F. Dale Corman_________________
                                 F. DALE CORMAN
                              Chairman & President
                             (Chief Executive and 
                              Principal Financial Officer)


Thermal\10QSB2A9.WPD