UNITED STATES

                SECURITIES AND EXCHANGE COMMISSION

                     Washington, D. C.  20549

                            Form 10-Q

[x] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

For quarter ended        March 31, 1998                
                               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:         2-70390                           

              SANCHEZ-O'BRIEN 1981-A DRILLING COMPANY    
      (Exact name of registrant as specified in its charter)

           TEXAS                                         74-2216121 
(State or other jurisdiction of              (IRS employer
incorporation or organization)               identification no.)

5847 San Felipe, Suite 1900      Houston, Texas     77057         
(Address of principal executive offices)       (Zip Code)

                           (713) 783-8000                         
           (Registrant's telephone number, including area code)

                                  N/A                             
(Former name, address and former fiscal year, if changed since last 
 report.)

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

               APPLICABLE ONLY TO ISSUERS INVOLVED
                 IN BANKRUPTCY PROCEEDINGS DURING
                    THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Section 12, 13 or
15(d) of the Securities  Exchange  Act of 1934 subsequent to the
distribution of securities under a plan confirmed by court. 
Yes      No  

              APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
<PAGE>
             SANCHEZ-O'BRIEN 1981-A DRILLING COMPANY
           QUARTERLY REPORT ON FORM 10-Q MARCH 31, 1998


                              INDEX

                                                                 
PART I -  Financial information:

 Item 1. Financial Statements
         Balance Sheets for the periods March 31, 1998 and
            December 31, 1997
         Statements of Operations for the three months ended
            March 31, 1998 and 1997
         Statement of Partners' Equity as of March 31, 1998
         Statements of Cash Flow for the three months ended
            March 31, 1998 and 1997
 Item 2. Management's Discussion and Analysis of Financial 
           Condition and Results of Operations
 
  
PART II - Other information:
 
 Item 1. Legal Proceedings
 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 (not applicable) 
 Item 6. Exhibits and Reports on Form 8-K
         Signatures
<PAGE>

<TABLE>
                     Part I.  Financial Information

ITEM 1.  FINANCIAL STATEMENTS

                  Sanchez-O'Brien 1981-A Drilling Company
                          (a limited partnership)
                              Balance Sheets
                                (Unaudited)
<CAPTION>
                                                  March 31,      December 31,
                                                     1998            1997     
<S>                                               <C>            <C>
  ASSETS

Current assets:
  Cash                                           $   772,116          665,680 
  Accounts receivable                                 42,952           48,333 

       Total current assets                          815,068          714,013 

Oil and natural gas properties (full cost        
  method), at cost, pledged (note 2)              31,016,079       31,043,318 
Less accumulated depreciation, depletion
  and amortization (note 2)                       30,403,924       30,376,924 

       Net oil and natural gas properties            612,155          666,394 

Organization costs, less applicable
  amortization                                             0                0 
                                                   1,427,223        1,380,407 
<CAPTION>
<S>                                               <C>               <C> 
LIABILITIES AND PARTNERS' EQUITY

Current liabilities:
  Accounts payable                                    48,842           53,074 
  Suspense payable-investors                         182,730          184,470 
  
       Total current liabilities                     231,572          237,544 

Partners' equity:
  Limited partners                                 1,183,699        1,131,439 
  General partner                                     11,952           11,424 

       Total partners' equity                      1,195,651        1,142,863 
                                                 $ 1,427,223        1,380,407 
See accompanying notes to financial statements.<PAGE>
<PAGE>

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<TABLE>
             Sanchez-O'Brien 1981-A Drilling Company
                     (a limited partnership)
                     Statements of Operations
                           (Unaudited)

                                             Three Months Ended
                                                  March 31,      
                                              1998          1997  
<CAPTION>
<S>                                        <C>           <C>
REVENUES:
  Oil and natural gas sales                 $132,354      238,676
  Interest income                              5,211        4,267
  Other income                                     0            0

                                             137,565      242,943

EXPENSES: 
  Operating expenses                          40,206       39,498
  General and administrative                  17,571       14,510
  Interest                                         0            0
  Depreciation, depletion
    and amortization (note 2)                 27,000       41,000

                                              84,777       95,008

    Net income                              $ 52,788      147,935


See accompanying notes to financial statements.
<PAGE>

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<TABLE>

<PAGE>
                  Sanchez-O'Brien 1981-A Drilling Company
                          (a limited partnership)
                       Statement of Partners' Equity
                     Three Months Ended March 31, 1998
                                (Unaudited)

                                         Limited       General 
                                        Partners       Partner        Total   
<CAPTION>
<S>                                    <C>             <C>         <C>
Balances at December 31, 1997          $1,131,439       11,424      1,142,863 

Cash distributions                              0            0              0 

Net income                                 52,260          528         52,788

Balances at March 31, 1998             $1,183,699       11,952      1,195,651 

See accompanying notes to financial statements.
<PAGE>

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TABLE
<PAGE>
         Sanchez-O'Brien 1981-A Drilling Company
                          (a limited partnership)
                         Statements of Cash Flows
                                (Unaudited)
                                                   Three Months Ended 
                                                        March 31,    
                                                      1998        1997 
<CAPTION>
<S>                                                <C>            <C>
Cash flows from operating activities:
 Net income                                        $ 52,788        147,935 
 Adjustments to reconcile net earnings to net
   cash provided by operating activities:
     Depreciation, depletion and
          amortization                               27,000         41,000 
     Change in assets and liabilities:
      Accounts receivable                             5,381         21,156 
      Accounts payable                               (4,232)        49,263 
      Suspense payable                               (1,740)        (3,195) 
           
       Total adjustments                             26,409        108,224 

        Net cash provided by operating 
         activities                                  79,197        256,159 

Cash flows from investing activities:
 Cash distributions                                    -              -    
 Purchases of property and equipment                 27,239        (27,232)

       Net cash used in investing
          activities                                 27,239        (27,232)

Cash flows from financing activities:
  Payment of long-term debt                               0              0 
  Proceeds from long-term debt                            0              0 

        Net cash provided by (used) financing
         activities                                       0              0 

Net increase in cash and cash equivalents           106,436        228,927 

Cash and cash equivalents at beginning
 year                                               665,680        501,298 

Cash and cash equivalents at end of
 quarter                                           $772,116        730,225 

See accompanying notes to financial statements.

<PAGE>
             Sanchez-O'Brien 1981-A Drilling Company
                     (a limited partnership)

                  Notes to Financial Statements

                          March 31, 1998

                           (Unaudited)

(1)   Organization and Summary of Significant Accounting Policies

    a.Organization

      Sanchez-O'Brien 1981-A Drilling Company (the Drilling
      Company), is a Texas limited partnership formed on
      December 18, 1980.  Sanchez-O'Brien Drilling Corporation
      is the General Partner and an Organizational Limited
      Partner of the Drilling Company and has a 1% interest
      therein.

      The Drilling Company was initially formed with an
      Organizational Limited Partner on December 18, 1980.  Upon
      the closing of subscriptions on June 23, 1981, with 3,207
      Limited Partners contributing $26,520,000, the
      Organizational Limited Partner was refunded his initial
      contribution.  In June, 1981, the Drilling Company entered
      into a separate agreement to form a general partnership,
      Sanchez-O'Brien 1981-A Drilling Partnership (the Drilling
      Partnership), with Sanchez-O'Brien Oil & Gas Corporation
      (Sanchez-O'Brien) as Managing General Partner.  The
      purpose of the Drilling Partnership is to conduct oil and
      natural gas exploration activity in the continental United
      States.  Sanchez-O'Brien Drilling Corporation is a wholly
      owned subsidiary of Sanchez-O'Brien Oil & Gas Corporation.

    b.Basis of Financial Statement Presentation

      The financial statements include the accounts of the
      Drilling Company and its proportionate share in the
      specific assets, liabilities and operating accounts of the
      Drilling  Partnership.  All significant intercompany
      balances have been eliminated.

<PAGE>
    
    c.General

      The financial statements included herein were prepared by
      the Managing General Partner.  In the opinion of
      management, all adjustments have been made which are
      necessary for a fair presentation of the financial
      position of the Drilling Company at March 31, 1998 and the
      results of operations for the period then ended.

(2)Oil and Gas Properties

  The Drilling Company follows the full cost method of
  accounting for its proportionate interest in the oil and gas
  operations of the Drilling Partnership.  Under this method,
  all costs incurred in the acquisition, exploration and
  development of properties, including costs of surrendered and
  abandoned leaseholds, delay lease rentals and dry holes, are
  capitalized.  Dispositions of oil and gas properties are
  accounted for as adjustments to capitalized costs, with no
  gain or loss recognized.  Depreciation, depletion and
  amortization of oil and gas properties is provided by the
  units-of-production method based on proved oil and gas
  reserves.

  Under the full cost method of accounting for oil and gas
  operations, capitalized costs of oil and gas properties are
  not to exceed the present value of future net revenues from
  estimated production of proved oil and gas properties plus the
  lower of cost or estimated fair market value of unproved
  properties.  If capitalized costs exceed this limitation, an
  additional provision is to be made to depreciation, depletion
  and amortization.

(3)Notes Payable

  As of March 31, 1998, The Drilling Company does not have any
  debt.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
       AND RESULTS OF OPERATIONS.

  As of March 31, 1998, forty-three wells have been drilled.
  Of this number, ten wells are commercially productive,
  twenty-four were dry holes or have been depleted and
  abandoned, seven have been sold and two are shut-in.

  As of March 31, 1998, the Drilling Company's share of capital
  expenditures of the Drilling Partnership were in excess of the
  available funds of the Drilling Company.  Financing of these
  expenditures was provided through borrowings from the Managing
  General Partner. 

  As of March 31, 1998, each Limited Partner has received $435
  per each $5,000.  Future distributions will be made after
  litigation on the S. W. Escobas (Trevino leases) has been settled.
<PAGE>
                    PART II. Other Information

ITEM 1. LEGAL PROCEEDINGS

  The litigation against Pennzoil Exploration and Production Company
  (Pennzoil) and Sanchez-O'Brien Gas Corporation (Sanchez-O'Brien) on the 
  Trevino lease in the S.W. Escobas Prospect is ongoing.  The interests in the
  Trevino lease, which comprise part of the S.W. Escobas Prospect, were
  acquired from Pennzoil.  There are currently four producing wells on the
  Trevino Leases, in which the Drilling Partnership holds between 22.53%-
  23.177% gross working interest.  The interest in dispute in this lawsuit is
  7/96 or 7.29% of Sanchez-O'Brien's and Pennzoil's interest.  The trial
  judge, on November 9, 1992, ruled in favor of the defendants, Pennzoil and
  Sanchez-O'Brien.  The plaintiffs appealed the trial court ruling to the
  Court of Appeals for the Fourth District of Texas at San Antonio.  In May
  1994, the San Antonio Court of Appeals affirmed the trial court's judgment.
  The appellants (plaintiffs) filed an application for writ of error
  to the Texas Supreme Court after the Fourth District Court rejected
  a motion for a rehearing.  On November 6, 1994, the Texas Supreme
  Court denied the writ of error.  On December 8, 1994, plaintiffs
  filed a motion for a rehearing in the Texas Supreme Court.  The Texas
  Supreme Court granted a rehearing, and heard oral arguments during
  September 1995.  On October 18, 1996, the Texas Supreme Court reversed the
  judgments of both lower courts.  On November 20, 1996, a motion for
  rehearing was filed.  The Texas Supreme Court granted the motion for a 
  rehearing, but on February 26, 1998, The Texas Supreme court rendered an
  opinion reversing the San Antonio Court of Appeals and the trial court and
  rendering judgement for plaintiff.  A motion for a rehearing has been filed
  in March 1998.

  An unfavorable ruling would force the Drilling Company to forfeit the
  $242,290 currently being held in escrow.  In addition, the Drilling
  Company would lose approximately 7.29% of its' interest in the Trevino
  properties, which would reduce the Drilling Company valuation by $28,740
  The total potential adverse effect would be $50.58 per each $5,000 limited
  partnership unit.
  
  Beginning June 1, 1992, Sanchez-O'Brien started escrowing the amounts in
  dispute in order to mitigate the effect to the Drilling Partnership and
  the Limited Partners.  The following is an estimate of the net financial
  effect of this litigation.

    a.   Revenues received and applicable interest

         The Drilling Partnership would have to remit to the
      plaintiffs 7.29% of revenues from the wells on the Trevino
      lease from May 1, 1987 less the applicable share of well costs
      and operating expenses.  The Drilling Partnership would also be
      responsible for any applicable interest.  The amount payable from
      the Drilling Partnership for net revenues and applicable interest is
      estimated to be $260,570, with $130,285 due from the Drilling Company,
      or Limited Partners.  Because this amount has already been paid out and
      used by the Drilling Company, the amounts would have to come from
      current and future revenues.  The net impact per each $5,000 limited
      partnership unit would be $24.32. 

    b.   Value of oil and gas revenues

         The plaintiffs would be entitled to future revenues to be
      derived from existing oil and gas revenues.  The net
      effect of losing these reserves at April 1, 1998 to the
      Drilling Partnership is estimated to be $57,480, with
      $28,740 being the interest of the Drilling Company, or
      Limited Partners.  The net impact per each $5,000 limited
      partnership unit would be $5.36.

    c.   Funds retained in escrow

         As mentioned, the Managing General Partner is currently
      escrowing the net revenues applicable to the disputed
      interest.  At April 1, 1998, the total Drilling Company
      funds being escrowed were $484,580, with $242,290 escrowed
      for the Drilling Company, or Limited Partners.  The net
      impact per each $5,000 limited partnership unit would be
      $45.22.  The Managing General Partner will continue to
      escrow the amounts in dispute.  If the plaintiffs were to
      prevail, the funds would be paid to the plaintiff. 
      However, if the defendants prevail, these additional
      amounts would be available to the Drilling Company for
      operations and/or distributions.
<PAGE>
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

  No reports on Form 8-K have been filed during the quarter for
  which this report is filed.



                            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.


                       SANCHEZ-O'BRIEN 1981-A DRILLING COMPANY
                            (Registrant)

                       By Sanchez-O'Brien Drilling Corporation.
                            General Partner



     Date:  05/15/97   By:  M. M. FREEMAN                        
                            M. M. Freeman
                            Senior Vice President, Treasurer,
                            Secretary and Director (Principal
                            Financial Officer)



     Date:  05/15/97   By:  OLIVER GARZA                         
                            Oliver Garza
                            Assistant Secretary - Controller

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