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, 1997                    
                               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, 1997


                              INDEX

                                                                 
PART I -  Financial information:

 Item 1. Financial Statements
         Balance Sheets for the periods March 31, 1997 and
            December 31, 1996
         Statements of Operations for the three months ended
            March 31, 1997 and 1996
         Statement of Partners' Equity as of March 31, 1997
         Statements of Cash Flow for the three months ended
            March 31, 1997 and 1996
 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,
                                                     1997            1996     
<S>                                               <C>            <C>
  ASSETS

Current assets:
  Cash                                           $   730,225          501,298 
  Accounts receivable                                 82,061          103,217 

       Total current assets                          812,286          604,515 

Oil and natural gas properties (full cost        
  method), at cost, pledged (note 2)              30,985,047       30,957,815 
Less accumulated depreciation, depletion
  and amortization (note 2)                       30,263,924       30,222,924 

       Net oil and natural gas properties            721,123          734,891 

Organization costs, less applicable
  amortization                                             0                0 
                                                   1,533,409        1,339,406 
<CAPTION>
<S>                                               <C>               <C> 
LIABILITIES AND PARTNERS' EQUITY

Current liabilities:
  Accounts payable                                    57,097            7,834 
  Suspense payable-investors                         151,430          154,625 
  
       Total current liabilities                     208,527          162,459 

Partners' equity:
  Limited partners                                 1,311,637        1,165,181 
  General partner                                     13,245           11,766 

       Total partners' equity                      1,324,882        1,176,947 
                                                 $ 1,533,409        1,339,406 
See accompanying notes to financial statements.<PAGE>
<PAGE>

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

                                             Three Months Ended
                                                  March 31,      
                                              1997          1996  
<CAPTION>
<S>                                        <C>           <C>
REVENUES:
  Oil and natural gas sales                 $238,676      185,818
  Interest income                              4,267        3,632
  Other income                                     0            0

                                             242,943      189,450

EXPENSES: 
  Operating expenses                          39,498       48,381
  General and administrative                  14,510       14,624
  Interest                                         0            0
  Depreciation, depletion
    and amortization (note 2)                 41,000       45,000

                                              95,008      108,005

    Net income                              $147,935       81,445


See accompanying notes to financial statements.
<PAGE>

</TABLE>
<TABLE>

<PAGE>
                  Sanchez-O'Brien 1981-A Drilling Company
                          (a limited partnership)
                       Statement of Partners' Equity
                     Three Months Ended March 31, 1997
                                (Unaudited)

                                         Limited       General 
                                        Partners       Partner        Total   
<CAPTION>
<S>                                    <C>             <C>         <C>
Balances at December 31, 1996          $1,165,181       11,766      1,176,947 

Cash distributions                              0            0              0 

Net income                                146,456        1,479        147,935 

Balances at March 31, 1997             $1,311,637       13,245      1,324,882 

See accompanying notes to financial statements.
<PAGE>

</TABLE>
TABLE
<PAGE>
         Sanchez-O'Brien 1981-A Drilling Company
                          (a limited partnership)
                         Statements of Cash Flows
                                (Unaudited)
                                                   Three Months Ended 
                                                        March 31,    
                                                      1997        1996 
<CAPTION>
<S>                                                <C>            <C>
Cash flows from operating activities:
 Net income                                        $147,935         81,445 
 Adjustments to reconcile net earnings to net
   cash provided by operating activities:
     Depreciation, depletion and
          amortization                               41,000         45,000 
     Change in assets and liabilities:
      Accounts receivable                            21,156         20,270 
      Accounts payable                               49,263        (49,189) 
      Suspense payable                               (3,195)             0 
           
       Total adjustments                            108,224         16,081 

        Net cash provided by operating 
         activities                                 256,159         97,526 

Cash flows from investing activities:
 Cash distributions                                    -              -    
 Purchases of property and equipment                (27,232)       (11,093)

       Net cash used in investing
          activities                                (27,232)       (11,093)

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           228,927         86,433 

Cash and cash equivalents at beginning
 year                                               501,298        521,334 

Cash and cash equivalents at end of
 quarter                                           $730,225        607,767 

See accompanying notes to financial statements.

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

                  Notes to Financial Statements

                          March 31, 1997

                           (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, 1997 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, 1997, 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, 1997, 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, 1997, 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, 1997, each Limited Partner has received $355
  per each $5,000.  Future distributions will be made after
  litigation on the S. W. Escobas (Trevino leases) Prospect is settled.
<PAGE>
                    PART II. Other Information

ITEM 1. LEGAL PROCEEDINGS

  The litigation against Pennzoil and Sanchez-O'Brien Oil & Gas Corporation
  (Sanchez-O'Brien) on the Trevino leases in the S. W. Escobas Prospect
  is ongoing.  The interests in the Trevino Leases, 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 and remains
  pending.

  An unfavorable ruling would force the Drilling Company to forfeit the
  $223,541 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 $19,766
  at April 1, 1997.  The total potential adverse effect would be $45.41
  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 forward, 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, 1997 to the
      Drilling Partnership is estimated to be $39,532, with
      $19,766 being the interest of the Drilling Company, or
      Limited Partners.  The net impact per each $5,000 limited
      partnership unit would be $3.69.

    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, 1997, the total Drilling Company
      funds being escrowed were $447,082, with $223,541 escrowed
      for the Drilling Company, or Limited Partners.  The net
      impact per each $5,000 limited partnership unit would be
      $41.72.  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

</TABLE>