UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 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  SEPTEMBER  30,  2001

[ ]     Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act
        of  1934

        For  the  transition  period  from  __________  to  __________

        Commission  File  Number  0-32905

                           AMANASU ENERGY CORPORATION
                           --------------------------
        (Exact name of Small Business Issuer as specified in its charter)

NEVADA                                                      98 - 0347883
-------------------------------                             ------------
(State or other jurisdiction of                             (IRS Employer
incorporation)                                              Identification No.)

                 701 FIFTH AVENUE, 36TH FLOOR, SEATTLE, WA 98109
                 -----------------------------------------------
                    (Address of principal executive offices)
                    ----------------------------------------

                                  206-262-8188
                                  ------------
                           (Issuer's telephone number)
                           ---------------------------

        _________________________________________________________________
     (Former name, former address and former fiscal year if changed since last
                                     report)


State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:   41,247,816 SHARES OF COMMON STOCK
                                            ----------------------------------
ISSUED AND 20,000,000 SHARES OF COMMON STOCK OUTSTANDING AS OF OCTOBER 31, 2001.
 -------------------------------------------------------------------------------

**Transitional Small Business Disclosure Format (check one):  Yes [ ]   No [X]


<PAGE>
PART  I  FINANCIAL  INFORMATION

ITEM  1.          FINANCIAL  STATEMENTS

GENERAL

The Company's unaudited financial statements for the nine months ended September
30, 2001 are included with this Form 10-QSB.  The unaudited financial statements
for  the  nine  months  ended  September  30,  2001  include:

(a)  Balance  Sheet  as  of  September  30,  2001  and  December  31,  2001;
(b)  Statement  of  Operations  -  nine  months  ended  September  30,  2001 and
     September  30,  2000,  and  since  inception  February  22,  1999;
(c)  Statement  of  Operations - quarters ended September 30, 2001 and September
     30,  2000,  and  since  inception  February  22,  1999;
(d)  Statement  of  Cash  flows  -  Nine  months  ended  September  30, 2001 and
     September  30,  2000,  and  since  inception  February  22,  1999;  and
(e)  Notes  to  Financial  Statements.

The  unaudited  financial  statements  have been prepared in accordance with the
instructions  to  Form 10-QSB and, therefore, do not include all information and
footnotes  necessary  for a complete presentation of financial position, results
of operations, cash flows, and stockholders' equity in conformity with generally
accepted  accounting  principles.  In the opinion of management, all adjustments
considered  necessary  for  a fair presentation of the results of operations and
financial  position  have been included and all such adjustments are of a normal
recurring  nature.  Operating  results  for  the nine months ended September 30,
2001  are not necessarily indicative of the results that can be expected for the
fiscal  year  ending  December  31,  2001.


                                        2
<PAGE>
<TABLE>
<CAPTION>
                                   AMANASU ENERGY CORPORATION
                                  (A DEVELOPMENT STAGE COMPANY)
                                          BALANCE SHEET
                                           (UNAUDITED)

ASSETS
------
                                                         September 30, 2001    December 31, 2000
                                                        --------------------  -------------------
<S>                                                     <C>                   <C>
Current Assets:
    Cash                                                $           257,413   $                -
    Prepaid expenses                                                  4,053               16,211
                                                        --------------------  -------------------
    Total current assets                                            261,466               16,211
                                                        --------------------  -------------------
Total Assets                                            $           261,466   $           16,211
                                                        ====================  ===================



LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
    Stockholder advance                                 $               100   $                -
                                                        --------------------
            Total current liabilities                                   100

Stockholders' Equity:
    Common stock:  authorized 100,000,000 shares
        of $.001 par value; 41,247,816 and 20,000,000,
        respectively, issued and outstanding                         27,048                7,000
    Additional paid in capital                                      317,492               63,000
    Deficit accumulated during development stage                    (83,174)             (53,789)
                                                        --------------------  -------------------
              Total stockholders' equity                            261,366               16,211
                                                        --------------------  -------------------
     Total Liabilities and Stockholders' Equity         $           261,466   $           16,211
                                                        ====================  ===================

    These statements should be read in conjunction with the year-end financial statements.
</TABLE>


                                        3
<PAGE>
                           AMANASU ENERGY CORPORATION
                          (A DEVELOPMENT STATE COMPANY)
                      STATEMENTS OF OPERATIONS AND DEFICIT
                      ACCUMULATED DURING DEVELOPMENT STAGE
                                  (UNAUDITED)

                          NINE MONTH PERIODS
                        ----------------------
                         Ended  September  30,    FEBRUARY 22, 1999
                        ----------------------  (Date  of  Inception)
                           2001        2000      To September30,2001
                        ----------  ----------  ---------------------

Revenue:
    Interest income     $   1,947   $       -   $              1,947

Expenses                   31,332      12,158                 85,121
                        ----------  ----------  ---------------------

Loss accumulated
    during development
    stage               $ (29,385)  $ (12,158)  $            (83,174)
                        ==========  ==========  =====================

Loss Per Share -
    Basic and Diluted   $       -   $       -
                        ==========  ==========

    These statements should be read in conjunction with the year-end financial
                                   statements.


                                        4
<PAGE>
                           AMANASU ENERGY CORPORATION
                          (A DEVELOPMENT STATE COMPANY)
                      STATEMENTS OF OPERATIONS AND DEFICIT
                      ACCUMULATED DURING DEVELOPMENT STAGE
                                  (UNAUDITED)

                        Quarters Ended September 30,     FEBRUARY 22, 1999
                        ----------------------------    (Date of Inception)
                            2001           2000        To September 30, 2001
                        -------------  -------------  ----------------------

Revenue:
    Interest income     $      1,367   $          -   $               1,947

Expenses                      16,302          4,053                  85,121
                        -------------  -------------  ----------------------

Loss accumulated
    during development
    stage               $    (14,935)  $     (4,053)  $             (83,174)
                        =============  =============  ======================

Loss Per Share -
    Basic and Diluted   $          -   $          -
                        =============  =============


    These statements should be read in conjunction with the year-end financial
                                   statements.


                                        5
<PAGE>
<TABLE>
<CAPTION>
                              AMANASU ENERGY CORPORATION
                             (A DEVELOPMENT STATE COMPANY)
                               STATEMENT OF CASH FLOWS
                                     (UNAUDITED)

                                               NINE MONTH PERIODS        FEBRUARY 22, 1999
                                               ENDED SEPTEMBER 30,      (DATE OF INCEPTION)
                                               2001          2000      TO SEPTEMBER 30, 2001
                                           ------------  ------------  ----------------------
<S>                                        <C>           <C>          <C>
CASH FLOWS FROM OPERATIONS:
Net loss                                   $   (29,385)  $   (12,158)  $             (83,174)
Charges Not Requiring The Outlay Of Cash:
     Services provided for common stock         12,158        12,158                  65,947
                                           ------------  ------------  ----------------------

  NET CASH CONSUMED BY
      OPERATING ACTIVITIES                     (17,227)            -                 (17,227)

CASH FLOWS FROM FINANCING ACTIVITES:
Sales of common stock                          274,540             -                 274,540
Advances received in anticipation of
      common stock sales                           100             -                     100
                                           ------------                ----------------------

  NET CASH PROVIDED BY
      FINANCING ACTIVITIES                     274,640             -                 274,640

CASH BALANCE, BEGINNING OF PERIOD                    -             -                       -

                                           ------------  ------------  ----------------------
Cash balance, end of period                $   257,413   $         -   $             257,413
                                           ============  ============  ======================

  These statements should be read in conjunction with the year-end financial statements.
</TABLE>

                                        6
<PAGE>
                           AMANASU ENERGY CORPORATION
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)
                               SEPTEMBER 30, 2001


1.     BASIS OF PRESENTATION

The  unaudited  interim  financial statements of Amanasu Energy Corporation (the
"Company")  as  of  September  30,  2001  and for the three month and nine month
periods  ended  September 30, 2001 and 2000, respectively, have been prepared in
accordance  with  generally  accepted  accounting principles.  In the opinion of
management, such information contains all adjustments, consisting only of normal
recurring adjustments, necessary for a fair presentation of the results for such
periods.  The  results  of  operations  for  the quarters and nine month periods
ended  September  30,  2001  are not necessarily indicative of the results to be
expected  for  the  full  fiscal  year  ending  December  31,  2001.

Certain information and disclosures normally included in the notes to financial
statements have been condensed or omitted as permitted by the rules and
regulations of the Securities and Exchange Commission, although the Company
believes the disclosure is adequate to make the information presented not
misleading.  The accompanying unaudited financial statements should be read in
conjunction with the financial statements of the Company for the year ended
December 31, 2000.


                                        7
<PAGE>
ITEM  2.       MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

Forward  Looking  Statements
----------------------------

This  report  on  Form 10-QSB contains certain forward-looking statements within
the  meaning  of section 21e of the Securities Exchange Act of 1934, as amended,
and  other  applicable securities laws.  All statements other than statements of
historical  fact  are  "forward-looking  statements"  for  purposes  of  these
provisions,  including any projections of earnings, revenues, or other financial
items; any statements of the plans, strategies, and objectives of management for
future  operation; any statements concerning proposed new products, services, or
developments;  any  statements  regarding  future  economic  conditions  or
performance;  statements  of belief; and any statement of assumptions underlying
any  of  the foregoing.  Such forward-looking statements are subject to inherent
risks  and  uncertainties, and actual results could differ materially from those
anticipated  by  the  forward-looking  statements.

OVERVIEW

We  have the exclusive, worldwide license to a technology that disposes of toxic
and  hazardous  wastes  through  a  proprietary,  high  temperature  combustion
system,  known  as  the  Amanasu  Furnace.  The  combustion system is a low cost
methodology of generating extremely high temperatures in excess of 2,000 degrees
Celsius.  Waste  matter  exposed  to the extreme temperature system is instantly
decomposed  to  a  gaseous matter and a magna-like liquid.  The process leaves a
1-2% residue of an inert, carbon substance and oxygen which is vented out of the
system.  The  process  produces no toxins, smoke, ash, or soot.  We will require
further  financing  to  advance  our  business  model.

PLAN  OF  OPERATION

We  are  in the developmental stage, conducting product development and creating
market  strategies.  Mr.  Masaichi  Kikuchi  is  the  inventor,  owner,  and
licensor  of  the  technology,  and  a  consultant  to the Company.  In 1996, he
constructed  the  first  and  only  Amanasu  furnace  located  on  the island of
Hokkaido,  Japan.  The  unit  has  a  five-ton  per  day  capacity  and has been
operational  since  1996,  and  the  inventor has owned and operated the furnace
since  its  initial construction.  We have no present or future rights to own or
operate  the  Hokkaido  furnace,  including  its  customers.

During  the  second  quarter  of  2001,  we  initiated  contact with a number of
municipalities and private corporations for purposes of commercially selling its
licensed  proprietary  furnace. At the end of June, 2001, in collaboration  with
Mr.  Kikuchi,  the  inventor,  we  conducted  a  demonstration  at  the Hokkaido
facility to approximately 350 prospective customers from Japan and other Pacific
Rim  countries.  As of the date of this report, we have not received any product
sales  from  the  demonstration. We cannot predict whether any sales will result
from  the  demonstration  or  the  efforts  of  the  Company's  president.

We  expect to establish of a network of distributors throughout the Pacific Rim.
It is contemplated  that distributors  will be  granted  exclusive  distribution
rights  to a  designated territory and will be compensated based on a negotiated


                                        8
<PAGE>
percentage  of sales. It is expected that distributors will be required to reach
minimum  sales  levels  in  order  maintain  exclusive  territorial distribution
rights.

We had cash on hand in the amount of $257,413 as of September 30, 2001.  We will
require additional financing to enable us to complete our development stage.  We
will  also require additional financing in order to meet our obligations for the
next  twelve-month period, including payment of the legal and accounting expense
of  complying  with  our  obligations as a reporting issuer under the Securities
Exchange  Act  of  1934 (the "34 Act").  We plan to raise money through sales of
our  common  stock  to  private  investors  and  through  smaller, institutional
avenues.  At  this  time,  these  avenues  of financing do not look particularly
promising.  We may also offer stock options in the future depending on perceived
investor  interest.

We intend to raise additional  funds  of approximately $2,000,000  to $3,000,000
in  the  near  future  through  the  private  placement of our common stock. The
proceeds  from  such  private  placement  will  be  used  to  construct  two
demonstrational  units,  a  one-half  ton  daily  capacity  unit  and  a one-ton
daily  capacity  unit,  to fully launch the  marketing  and sale of our licensed
proprietary  Amanasu  furnace,  and for other general working capital needs. Our
cash  requirements  over  the  next  twelve  months  are  estimated  to  be
approximately  $1,000,000,  which  are entirely devoted to the construction of a
limited  number of  demonstrational  units,  the  hiring  of a limited  staff to
conduct  our  business,  and general working capital needs. We have entered into
discussions  with  a  number  of  private  investors  concerning  the  private
placement  of  our common  stock,  however,  at this time, we have not  received
commitments  from  any  source.  Moreover,  although  we  are  encouraged by our
discussions,  we cannot  predict  whether we will be  successful  in raising any
capital,  which  capital  is  essential  to  our  plan  of  operations.

We have no material commitments for capital at this time other than as described
above.  In  addition,  we do not expect to incur research and development  costs
within  the  next  12  months.  We  expect  to  outsource  the construction  and
fabrication  of  our  units  to  third  parties,  including  the  proprietary
combustion  system  which will be manufactured by the inventor at his factory in
Hokkaido,  Japan.  We  believe  that  we  can  manufacture  as  many as 30 units
per  month  using   currently  available  manufacturing and assembly  resources.
We expect the production cycle for the one-half ton to five ton daily capacities
will  approximate  three  to  six  months.  We believe that these production and
assembly  resources will be sufficient to meet  anticipated  product  demand for
the  next  12  months.

We  will  require  a  minimum of  $1,000,000  to  satisfy  our cash requirements
for  the  next  12 months.  If we are successful  in raising $1,000,000, we will
commence the marketing of our units to prospective customers in the Pacific Rim.
We  expect  to  deliver  production  units within three to six months from order
placement,  and  will require payment of at least 50% of the purchase price as a
down  payment  for  each  customer  order.


                                        9
<PAGE>
If  we  are  successful  in  raising  the  projected  funds  of  $2,000,000  to
$3,000,000,  we  believe  that,  this  funding,  along  with  bank  borrowings,
and  cash  flow  from  the  sale of units,  will  enable us to commence the full
scale  manufacture  and sale of our products. We can not predict  whether or not
we  will  be  successful in our capital  raising  efforts, and, thus, be able to
satisfy  our  cash  requirements for the next 12 months.  If we are unsuccessful
in  raising  at  least  $1,000,000,  we  may not be able to complete our plan of
operations.


RESULTS  OF  OPERATIONS

We  incurred  a  loss  of $29,385 for the nine months ending September 30, 2001,
compared  to  a  loss  of $12,158 for the nine months ending September 30, 2000.
Operating  expenses during the nine months ended September 30, 2001 were $31,332
which  included professional (legal and accounting) fees incurred as a result of
filing  our  Form  10-SB registration statement with the Securities and Exchange
Commission,  as  compared  to  $12,158  for  same  period  of  2000.

The increase in operating expenses incurred during the first nine months of 2001
compared  with  the  operating expenses incurred during the first nine months of
2000  reflect  consulting  services  of $14,000 and rent of $4,500 and marketing
expenses  of  $1,674.  We  have  maintained our budget for professional expenses
associated  with  our  becoming  a  reporting company under the 34 Act.  We will
continue  to  incur  higher  professional  expenses  in order to comply with our
ongoing  obligations  under  the  34  Act.

We  do  not anticipate any substantial revenues until such time as we enter into
sales  contracts  with  purchases  of  our  products.  We  are  presently in the
development  stage  and  there  is  no assurance that we will enter into revenue
generating  agreements.  During  the  developmental  stage,  we  are  conducting
product development and creating market strategies.  Future revenues will depend
on  our  ability  to  develop  a viable waste disposal system using the acquired
technology and thereafter to market that product.  There is no assurance that we
will  meet  our objectives or earn any revenues.  We are engaged in business for
profit,  but  cannot  predict  future  profitability.

Currently,  our  two  officers  are  our  only employees.  We expect to hire one
administrative  assistant  to  the  Company's  president,  three  marketing
representatives,  and  one  to  two  technical  assistants.  The  marketing
representatives  will assist the Company's president in marketing its product in
the  Pacific  Rim  countries,  and  the  technical  assistants  will  design and
engineer  the  larger  systems  in  collaboration  with  the  inventor.

LIQUIDITY  AND  CAPITAL  RESOURCES

We  had  cash of $257,413 as of September 30, 2001, up from $nil at December 30,
2000  as  a  result of sales of our common stock.  During the three months ended
September  30,  2001,  we  financed  our  operations  mainly  through  a private
placement  which  resulted  in  subscriptions  to  purchase  our Common Stock of
$74,540  from  four  private  investors. We anticipate that we will operate at a


                                       10
<PAGE>
loss  for  the  foreseeable  future.  Our cash requirements over the next twelve
months are estimated to be approximately  $1,000,000, which are entirely devoted
to, the construction of a limited number of demonstrational units, the hiring of
a  limited  staff to conduct our business, and general working capital needs. We
have  entered into discussions with a number of private investors concerning the
private  placement  of  our  common  stock,  however,  at this time, we have not
received  commitments  from  any source. Moreover, although we are encouraged by
our  discussions, we cannot predict whether we will be successful in raising any
capital,  which  capital  is  essential  to  our  plan  of  operations.

Our  capital  requirements  depend  on  numerous  factors, including the rate of
market  acceptance  of  our  services,  our  ability  to maintain and expand our
customer  base,  the  level of resources devoted to developing and expanding our
marketing  and  sales  organization and our research and development activities,
the  availability  of  materials  provided  by  third-party vendors, the rate of
expansion  of  our  network  infrastructure  and  other  factors.


                                       11
<PAGE>
PART  II  -  OTHER  INFORMATION

Item  1.  Legal  Proceedings

          NONE

Item  2.  Changes  in  Securities  and  Use  of  Proceeds

          NONE

Item  3.  Defaults  Upon  Senior  Securities:

          NONE

Item  4.  Submission  of  Matters  to  a  Vote  of  Security  Holders:

          NONE

Item  5.  Other  Information:

          NONE

Item  6. Exhibits  and  Reports  on  Form  8-K.

   (a)   Exhibits

         Exhibit  -  NONE

   (b)   Reports  on  Form  8-K:  NONE


                                       12
<PAGE>
SIGNATURES

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

Dated:  November  14,  2001


                             AMANASU  ENERGY  CORPORATION



                             By:     /s/  Atsushi  Maki
                                     ------------------------------------------
                                     Atsushi Maki, Chairman, President
                                     and Chief Financial Officer


                                       13
<PAGE>