SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549

                                FORM 10-QSB
(Mark One)

[X]           QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934

                      For the quarterly period ended
                            September 30, 1999

                                    OR

[ ]           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 0-25367

                    BLENCATHIA ACQUISITION CORPORATION
          (Exact name of registrant as specified in its charter)


Delaware                                     52-2068325
(State or other jurisdiction of                   (I.R.S. Employer
incorporation or organization)                    Identification No.)


                1504 R Street, N.W., Washington, D.C. 20009
           (Address of principal executive offices  (zip code))

                               202/387-5400
           (Registrant's telephone number, including area code)


      Indicate  by check mark whether the registrant (1) filed all  reports
required to be filed by Section 13 or 15(d) of the Securities Exchange  Act
of  1934  during  the last 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.

                             Yes   X       No


Indicate  the number of shares outstanding of each of the issuer's  classes
of common equity, as of the latest practicable date.

      Class                                 Outstanding at
                                            September 30, 1999

Common Stock, par value $0.0001                   5,000,000

<PAGE>
<TABLE>
ITEM 1.  FINANCIAL STATEMENTS

                    BLENCATHIA ACQUISITION CORPORATION
                       (A DEVELOPMENT STAGE COMPANY)
                               Balance Sheet
                            September 30, 1999
                                (Unaudited)

                             ASSETS

<S>                                                 <C>
Cash                                                      $   736

TOTAL ASSETS                                              $   736


              LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES                                               $     -

STOCKHOLDERS' EQUITY

Preferred Stock, $.0001 par value,                              -
20,000,000 shares authorized,
no shares issued and outstanding

Common Stock, $.0001 par value,
100,000,000 shares authorized
5,000,000 issued and outstanding                              500

Capital in Excess of Par                                      500

Accumulated deficit during development                      (264)

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                 $  736

</TABLE>
<PAGE>

NOTE 1 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          A.   Organization and Business Operations

          Blencathia   Acquisition   Corporation   (a   development   stage
          company)(the "Company") was incorporated in Delaware on  December
          3,  1998  to  serve as a vehicle to effect a merger, exchange  of
          capital  stock,  asset acquisition or other business  combination
          with a domestic or foreign private business.  As of September 30,
          1999,  the  Company  had not yet commenced  any  formal  business
          operations,  and  all activity to date relates to  the  Company's
          formation.

          The  Company's  fiscal  year end is December  31.  The  Company's
          ability to commence operations is contingent upon its ability  to
          identify  a  prospective  target  business  and  to  successfully
          negotiate a business combination with such target business.

          The  unaudited  financial statements and notes are  presented  as
          permitted  by Form 10-QSB.  Accordingly, certain information  and
          footnote  disclosures  normally included in financial  statements
          prepared   in  accordance  with  generally  accepted   accounting
          principles may have been omitted.

NOTE 2 -  STOCKHOLDERS' EQUITY

          A.   Preferred Stock

          The Company is authorized to issue 20,000,000 shares of preferred
          stock  at  $.000l par value, with such designations,  voting  and
          other  rights and preferences as may be determined from  time  to
          time by the Board of Directors.

          B.   Common Stock

          The  Company is authorized to issue 100,000,000 shares of  common
          stock  at $.000l par value. The Company has issued 4,250,000  and
          750,000  shares to Pierce Mill Associates, Inc. and  TPG  Capital
          Corporation, respectively.

NOTE 3 -  RELATED PARTIES

          Legal counsel to the Company is a firm owned by a director of the
          Company  who  also owns 100% of the outstanding stock  of  Pierce
          Mill  Associates,  Inc.  The same party is also  the  controlling
          shareholder of TPG Capital Corporation.



<PAGE>


ITEM 2.   MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION  AND
          RESULTS OF OPERATIONS

     The   Company  has  registered  its  common  stock  on  a  Form  10-SB
registration  statement filed pursuant to the Securities  Exchange  Act  of
1934  (the "Exchange Act") and Rule 12(g) thereof.  The Company files  with
the  Securities and Exchange Commission periodic and episodic reports under
Rule  13(a) of the Exchange Act, including quarterly reports on Form 10-QSB
and  annual reports Form 10-KSB.  As a reporting company under the Exchange
Act,  the  Company may register additional securities on Form S-8 (provided
that  it  is  then  in  compliance with the reporting requirements  of  the
Exchange  Act) and on Form S-3 (provided that is has during  the  prior  12
month period timely filed all reports required under the Exchange Act), and
its  class of common stock registered under the Exchange Act may be  traded
in  the United States securities markets provided that the Company is  then
in  compliance  with  applicable  laws, rules  and  regulations,  including
compliance with its reporting requirements under the Exchange Act.

     The Company was formed to engage in a merger with or acquisition of an
unidentified foreign or domestic private company which desires to become  a
reporting company whose securities are qualified for trading in the  United
States  secondary  market.  The Company meets the definition  of  a  "blank
check"  company  contained in Section (7)(b)(3) of the  Securities  Act  of
1933, as amended.

     Management  believes  that there are perceived  benefits  to  being  a
reporting  company which may be attractive to foreign and domestic  private
companies.

     These benefits are commonly thought to include (1) the ability to  use
registered  securities  to make acquisition of assets  or  businesses;  (2)
increased  visibility in the financial community; (3) the  facilitation  of
borrowing  from  financial institutions;  (4) improved trading  efficiency;
(5)  shareholder  liquidity;  (6)  greater  ease  in  subsequently  raising
capital;  (7) compensation of key employees through options for  stock  for
which there may be a public market; (8) enhanced corporate image; and,  (9)
a presence in the United States capital market.

     A  private  company which may be interested in a business  combination
with  the Company may include (1) a company for which a primary purpose  of
becoming  a  reporting  company  is the  use  of  its  securities  for  the
acquisition of assets or businesses; (2) a company which is unable to  find
an  underwriter  of its securities or is unable to find an  underwriter  of
securities on terms acceptable to it; (3) a company which wishes to  become
a reporting company with less dilution of its common stock than would occur
normally upon an underwriting; (4) a company which believes that it will be
able  obtain investment capital on more favorable terms after it has become

<PAGE>

a  reporting company; (5) a foreign company which may wish an initial entry
into  the United States securities market; (6) a special situation company,
such  as  a  company  seeking to satisfy redemption  requirements  under  a
qualified  Employee Stock Option Plan; and, (7) a company  seeking  one  or
more of the other benefits believed to attach to a reporting company.

     During the period cover by this report Management was actively engaged
in  seeking  a  qualified  private company as a candidate  for  a  business
combination.   The  Company  is  authorized  to  enter  into  a  definitive
agreement  with a wide variety of private businesses without limitation  as
to their industry or revenues.

     On  October  27,  1999  the  Company merged  with  International  Fuel
Technology,  Inc.,  the  Company filed a notice  of  the  merger  with  the
Securities and Exchange Commission on Form 8-K.  Persons reading this  Form
10-QSB are advised to read the Company's Form 8-K.

     The  current shareholders of the Company have agreed not  to  sell  or
otherwise  transfer  any of their common stock of  the  Company  except  in
connection with a business combination.

     The  Company does not intend to trade its securities in the  secondary
market until completion of a business combination.  It is anticipated  that
following  such occurrence the Company will seek to cause its common  stock
to be listed or admitted to quotation on the NASD OTC Bulletin Board or, if
it  then meets the financial and other requirements thereof, on the  Nasdaq
SmallCap Market, National Market System or regional or national exchange.

COMPUTER SYSTEMS REDESIGNED FOR YEAR 2000

     Many existing computer programs use only two digits to identify a year
in  such  program's date field.  These programs were designed and developed
without consideration of the impact of the change in century for which four
digits  will  be required to accurately report the date. If not  corrected,
many  computer  applications could fail or create erroneous results  by  or
following  the  year  2000  ("Year 2000 Problem").  Many  of  the  computer
programs containing such date language problems have not been corrected  by
the companies or governments operating such programs.  The Company does not
have  operations and does not maintain computer systems.   However,  it  is
impossible  to predict what computer programs will be effected, the  impact
any  such computer disruption will have on other industries or commerce  or
the severity or duration of a computer disruption.

     Before  the  Company  enters into any business  combination,  it  will
inquire  as  to the status of any target company's Year 2000  Problem,  the
steps  such  target company has taken to correct any such problem  and  the
probable  impact  on  such  target  company  of  any  computer  disruption.
However, there can be no assurance that the Company will not combine   with
a target company that has an uncorrected Year 2000 Problem or that any such
Year  2000 Problem corrections are sufficient.  The extent of the Year 2000
Problem  of a target company may be impossible to ascertain and its  impact
on the Company is impossible to predict.

<PAGE>

                       PART II -- OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

     There are no legal proceedings against the Company and the Company  is
unaware of such proceedings contemplated against it.

ITEM 2.   CHANGES IN SECURITIES

     Not applicable.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

     Not applicable.

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

     Not applicable.

ITEM 5.   OTHER INFORMATION

     SUBSEQUENT EVENT

     Pursuant  to  an Agreement and Plan of Merger (the "Merger Agreement")
dated  as  of  October 27, 1999 between Blencathia Acquisition  Corporation
("Blencathia"), a Delaware corporation, and International Fuel  Technology,
Inc. ("International Fuel" or the "Company"), a Nevada corporation, all the
outstanding  shares  of common stock of Blencathia Acquisition  Corporation
were exchanged for 300,000 shares of common stock of International Fuel  in
a  transaction  in which International Fuel was the surviving  company.(8-K
filed 11/4/99)


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibits

     There were no exhibits filed by the Company during the quarter.


     (b)  Reports on Form 8-K

     8-K  filed  November  4, 1999 - Merger between Blencathia  Acquisition
     Corporation and International Fuel Technology.

<PAGE>

                                SIGNATURES

     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.

                         BLENCATHIA ACQUISITION CORPORATION

                         By:/s/ William J. Lindenmayer
                            William J. Lindenmayer, COO

Dated: November 15, 1999