UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                                QUARTERLY REPORT
                            UNDER SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934 For
                  the quarterly period ended September 30, 1996

                         Commission file number 0-19766


                     THE HOME-STAKE OIL & GAS COMPANY (Exact
                name of small business issuer as specified in its
                                    charter)


                 Oklahoma                                   73-0288030
      (State or other jurisdiction of                    (I.R.S. Employer
       incorporation or organization)                   Identification No.)


                         15 East 5th Street, Suite 2800
                              Tulsa, Oklahoma 74103
                    (Address of principal executive offices)


                                 (918) 583-0178
                          Registrant's telephone number


     Check whether the issuer (1) has filed all reports  required to be filed by
Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during the past 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


     The number of shares outstanding of the Registrants's  common stock, all of
which  comprise a single class with $20 par value,  as of November 12, 1996, the
latest practicable date, was 89,509.




                                       -1-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY

                                   FORM 10-QSB
                               SEPTEMBER 30, 1996

                                TABLE OF CONTENTS

                                                                 Page
PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated Condensed Balance Sheets ............................   4

         Consolidated Condensed Statements of Income and Accumulated
         Deficit for the Nine Months ended September 30, 1996..............   5

         Consolidated Condensed Statements of Income and Accumulated
         Deficit for the Three Months ended September 30, 1996.............   6

         Consolidated Condensed Statements of Cash Flow ...................   7

         Notes to Consolidated Condensed Financial Statements .............   8

Item 2.  Management's Discussion and Analysis .............................  10

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings ................................................  12

Item 2.  Changes in Securities ............................................  12

Item 3.  Defaults upon Senior Securities ..................................  12

Item 4.  Submission of Matters to a Vote of Security Holders ..............  12

Item 5.  Other Information ................................................  13

Item 6.  Exhibits and Reports on Form 8-K .................................  13

SIGNATURES ................................................................  14

                                       -2-

<PAGE>



                         PART I - FINANCIAL INFORMATION

                                       -3-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (Unaudited)

                                     ASSETS


                                                   September 30,   December 31,
                                                       1996            1995
                                                       ----            ----
Current assets:
  Cash...........................................    $   413,697      $ 227,144
  Accounts receivable............................        578,014        552,149
  Prepaid expenses...............................         43,484         81,404
                                                     -----------   ------------
       Total current assets......................      1,035,195        860,697

Investments (Note 2).............................      2,492,517      2,407,552

Property and equipment, at cost:.................     27,699,041     27,704,111
    Less accumulated depreciation, 
          depletion and amortization.............     18,694,672     17,961,108
                                                     -----------    -----------
       Net property and equipment................      9,004,369      9,743,003

Other assets.....................................         23,408         20,499
                                                     -----------    -----------
                                                     $12,555,489    $13,031,751
                                                     ===========    ===========


                      LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:
  Accounts payable and accrued liabilities.......      $ 353,833    $   446,168
  Deferred compensation payable..................         46,733         57,518
  Payable to affiliate...........................          8,085        195,320
  Income taxes payable...........................         31,595          2,610
  Bonus payable..................................         45,000         32,710
  Current note payable (Note 3)..................      1,369,320      1,369,320
                                                     -----------    -----------
                 Total current liabilities.......      1,854,566      2,103,646

Long-term note payable (Note 3)..................      3,309,190      4,564,423

Deferred income taxes............................        174,574         71,167

Contingencies (Note 4)

Stockholders' equity:
 Preferred stock, $1 par value -
    200,000 shares authorized; none issued
 Common stock, $20 par value -
    100,000 shares authorized and issued.........      2,000,000      2,000,000
  Additional paid-in capital.....................      8,055,613      8,055,613
  Accumulated Deficit............................     (1,354,437)    (2,279,081)
                                                     -----------   ------------
                                                       8,701,176      7,776,532

  Less treasury stock, at cost - 10,491 shares...      1,484,017      1,484,017
                                                     -----------   ------------
                 Total stockholders' equity......      7,217,159      6,292,515
                                                     -----------   ------------
                                                     $12,555,489    $13,031,751
                                                     ===========   ============ 
                             See accompanying notes.

                                       -4-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                             AND ACCUMULATED DEFICIT
                  Nine months ended September 30, 1996 and 1995
                                   (Unaudited)



                                                       1996           1995
                                                       ----           ----

Revenues:
  Oil sales......................................    $ 3,369,514    $ 2,741,222
  Gas sales......................................      1,716,274      1,306,070
  Lease bonuses and rentals......................         13,418         17,051
  Interest and dividends.........................         18,824         16,892
  Gain on sales of assets........................         12,908         65,437
  Income from equity affiliates..................        205,855        119,509
  Other..........................................        124,797        139,500
                                                     -----------    -----------
                                                       5,461,590      4,405,681

Costs and expenses:
  Lease operating expenses.......................      1,594,693        962,039
  Production taxes...............................        491,583        335,680
  Depreciation, depletion and amortization.......      1,012,059        916,887
  Dry hole costs.................................         46,684        132,371
  Condemned and abandoned properties.............         19,724         54,864
  General and administrative expense.............        579,593        833,208
  Interest expense...............................        341,810        365,599
  Property, franchise and other taxes............         79,034         85,492
                                                     -----------    -----------
                                                       4,165,180      3,686,140

Income before provision for income taxes.........      1,296,410        719,541

Provision for income taxes:
  Current........................................         89,341         39,156
  Deferred.......................................        103,407         49,803
                                                     -----------    -----------
                                                         192,748         88,959
                                                     -----------    -----------

Net income.......................................      1,103,662        630,582

Accumulated deficit at beginning of period.......     (2,279,081)    (2,393,985)

Cash dividends ($2.00 per share - 1996, 
     $2.75 per share - 1995).....................       (179,018)      (246,150)
                                                     -----------    -----------

Accumulated deficit at end of period.............    $(1,354,437)   $(2,009,553)
                                                     ===========    ===========

Weighted average number of common 
     shares outstanding..........................         89,509         89,509
                                                          ======         ======

Net income per share.............................         $12.33         $ 7.04
                                                          ======         ======

                             See accompanying notes.

                                       -5-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                             AND ACCUMULATED DEFICIT
                 Three months ended September 30, 1996 and 1995
                                   (Unaudited)



                                                        1996           1995
                                                        ----           ----

Revenues:
  Oil sales......................................    $ 1,111,848      $ 841,383
  Gas sales......................................        592,938        430,369
  Lease bonuses and rentals......................          5,955          4,782
  Interest and dividends.........................          8,786          9,398
  Gain (loss) on sales of assets.................         10,043         (2,662)
  Income from equity affiliates..................         89,961         44,137
  Other..........................................         50,570         82,535
                                                     -----------    -----------
                                                       1,870,101      1,409,942

Costs and expenses:
  Lease operating expenses.......................        562,968        351,984
  Production taxes...............................        168,893        106,552
  Depreciation, depletion and amortization.......        337,353        299,247
  Dry hole costs.................................            566         12,901
  Condemned and abandoned properties.............         24,799         13,829
  General and administrative expense.............        112,838        229,114
  Interest expense...............................        103,526        144,463
  Property, franchise and other taxes............         21,797         22,399
                                                     -----------    -----------
                                                       1,332,740      1,180,489

Income before provision for income taxes.........        537,361        229,453

Provision for income taxes:
  Current........................................         34,641         16,056
  Deferred.......................................        (91,281)       (35,527)
                                                     -----------    -----------
                                                         (56,640)       (19,471)
                                                     -----------    -----------

Net income.......................................        594,001        248,924

Accumulated deficit at beginning of period.......     (1,903,684)    (2,191,345)

Cash dividends ($.50 per share - 1996, 
     $.75 per share - 1995)......................        (44,754)       (67,132)
                                                     -----------    -----------

Accumulated deficit at end of period.............    $(1,354,437)   $(2,009,553)
                                                     ===========    ===========

Weighted average number of common 
     shares outstanding..........................         89,509         89,509
                                                          ======         ======

Net income per share.............................         $ 6.64         $ 2.78
                                                          ======         ======

                             See accompanying notes.

                                       -6-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
              For the nine months ended September 30, 1996 and 1995
                                   (Unaudited)

                                                      1996              1995
                                                      ----              ----

Operating activities:
  Oil and gas sales, net of production taxes.....   $  4,521,703    $ 3,604,068
  Lease bonuses and rentals......................         13,418         17,051
  Interest and dividends.........................         18,824         16,892
  Other..........................................        124,797        139,500
                                                    ------------    -----------
                                                       4,678,742      3,777,511

  Cash paid to suppliers and employees...........      2,338,802      2,074,860
  Interest expense...............................        341,810        380,520
  Property, franchise and other taxes............         79,034         85,492
  Income taxes paid..............................         36,142        (14,753)
                                                    ------------    -----------
                                                       2,795,788      2,526,119
    Net cash provided by operating activities....      1,882,954      1,251,392


Investing activities:
  Proceeds from sales of property and equipment..         13,043        114,834
  Acquisition of property and equipment..........       (323,783)    (3,022,043)
  Dividends/distributions from equity affiliates.         48,449         53,834
                                                    ------------    -----------
    Net cash used in investing activities........       (262,291)    (2,853,375)


Financing activities:
  Proceeds from notes payable....................             --      2,685,680
  Note payments..................................     (1,255,233)      (703,884)
  Cash dividends paid............................       (178,878)      (246,077)
                                                    ------------    -----------
    Net cash used in financing activities........     (1,434,111)     1,735,719
                                                    ------------    -----------

Net increase in cash.............................        186,552        133,736

Cash at beginning of period......................        227,144         45,677
                                                    ------------    -----------

Cash at end of period............................   $    413,696    $   179,413
                                                    ============    ===========








                             See accompanying notes.

                                       -7-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note 1 - General

The unaudited financial  information provided in this report includes all normal
recurring  adjustments  which are, in the opinion of  management,  necessary  to
fairly  present the financial  position,  result of operations and cash flows of
the Company.  Certain information and footnote  disclosures normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles  have been  omitted  or  condensed.  The  Company  believes  that the
disclosures   herein  are  adequate  to  make  the  information   presented  not
misleading;  however,  these financial  statements should be read in conjunction
with the audited financial  statements and related notes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 1995.

The results for interim periods are not  necessarily  indicative of trends or of
results to be expected for the full year.

Note 2- Summarized financial information of equity investees

Summarized income statement  information for the nine months ended September 30,
1996 and 1995 for The Home-Stake Royalty Corporation ("HSRC") and Alden Pipeline
Company is presented below:

                                             1996              1995
                                             ----              ----
Income Statement data:
  Revenues..............................  $ 5,811,624       $ 4,629,621
  Income before income taxes............    1,726,594           997,514
  Net income (1)........................    1,417,179           819,529

  (1) Includes  $212,440  and  $182,092 in 1996 and 1995,  respectively,
  attributable to the equity earnings of the Company recorded by HSRC.

Note 3 - Note payable

Note  payable at  September  30,  1996,  represents  the  amounts  due under the
Company's  financing agreement which is due May 1, 1998 and provides for monthly
maturities of $114,110,  plus interest at bank prime.  In addition,  the Company
has a line of credit in the amount of $500,000 available until May 1, 1997 which
provides for monthly payments of interest on the outstanding  borrowings at bank
prime.  There is no balance currently  outstanding under this line,  however the
Company  has  issued  letters  of credit  in the  amount  of  $60,000  which are
guaranteed by this line.

The notes payable and line of credit described above are  collateralized  by the
11,963  shares of common  stock of HSRC owned by the  Company and certain of the
Company's producing properties.

Note 4 - Contingencies

In August 1995,  the Company was notified  that a property in which it owns a 9%
working  interest  was  subject to certain  claims by surface  owners  regarding
possible  saltwater  contamination.  The  operator  of the  property,  Mobil Oil
Corporation,  has settled some claims and is currently  pursuing  resolution  of
this  matter with other  surface  owners.  It is  currently  estimated  that the
Company's  share of the total  claims  and  related  costs may be  approximately
$300,000.  On June 13, 1996, the Company and HSRC (collectively "the Companies")
filed suit in the United  States  District  Court for the  Eastern  District  of
Oklahoma, against Mobil Oil Corporation and Mobil Exploration & Production U.S.,
Inc.  (collectively  "Mobil").  This  suit  is  styled  The  Home-Stake  Royalty
Corporation  and The  Home-Stake Oil & Gas Company v Mobil Oil  Corporation  and
Mobil  Exploration & Production U.S., Inc. (Case No. CIV-6- 271-S).  This action
alleges Mobil's breach of the related Unit Agreement;  breach of fiduciary duty;
gross  negligence and willful  misconduct;  and fraud in connection with Mobil's


                                       -8-

<PAGE>



Note 4 - Contingencies (continued)

operation of the property.  The Companies are seeking actual  damages,  punitive
damages and equitable relief in this matter,  including a declaration that Mobil
is barred from charging costs related to certain saltwater  contamination claims
and other  related  costs to the  Companies.  Mobil has counter  claimed for the
Companies share of environmental  costs which the Companies have not paid. Mobil
has also filed a Motion for Summary Judgement, to which the Companies have filed
a response.  Discovery is ongoing in this matter,  which is tentatively  set for
jury  trial in  January,  1997.  At this time  management  cannot  estimate  the
financial  impact  of the  litigation.  Operations  of the  property  are  being
reviewed  as a result of the  contamination  claims and a  determination  of the
effects thereof on the carrying value of the assets affected will be made in the
fourth quarter of 1996.

The  Company is involved in various  other legal  actions  arising in the normal
course of business. In the opinion of management, the Company's liabilities,  if
any, in these matters will not have a material effect on the Company's financial
position or the results of operations.


                                       -9-

<PAGE>



Item 2.     Management's Discussion and Analysis.

Results of  Operations  - First  nine  months of 1996  compared  with first nine
months of 1995

Net income for the first nine months  increased  $473,080  from $630,582 in 1995
to  $1,103,662  in 1996.  The principal reasons for this increase are asfollows:

Oil sales  increased  23%  ($628,292)  as a result of an increase in the average
price from $16.09 per barrel to $19.20 per barrel,  coupled  with an increase in
production volumes of 5,201 barrels. This increase in production was primarily a
result of new drilling activities and property acquisitions during 1995.

Gas sales  increased  $410,204 (31%) due to an increase in the average gas price
per mcf from $1.40 in 1995 to $1.96 in 1996,  partially  offset by a decrease in
production volumes from 994,954 mcf to 923,796 mcf.

Interest  income  increased  $1,932 from 1995  primarily  as a result of greater
excess funds available for investment.

Gains on sales of assets were lower in 1996  (decrease of $52,529).  In 1995 the
Company  sold several  marginal  properties  for which there were no  comparable
transactions in 1996.

Income from equity affiliates  increased $86,346. The Company's principal equity
investee,  HSRC,  reported  income of $1,433,259 in 1996 compared to $819,529 in
1995.

Lease  operating  expenses  increased  $632,654 (66%) in 1996.  This increase is
principally  attributable to operating costs associated with properties acquired
in 1995.

Production  taxes  increased  $155,903 as a result of higher  production  values
described above.

Dry hole costs  decreased  $85,687 in 1996.  In 1995 there were 3 dry holes (.59
net) drilled at an average gross cost of $224,358 per well; in 1996 there were 3
dry holes (.18 net) drilled at an average gross cost of $259,355 per well.

Condemned  and  abandoned  property  expense  decreased  $35,140.  1996  expense
includes salvage credits of $12,488 received on a property  abandoned during the
first  quarter.  1995  expense  was  unusually  high  due to  the  non-recurring
abandonment of acreage costs  associated with three dry holes,  coupled with the
expiration of leases on certain non-producing acreage owned by the Company.

General and administrative expense decreased $253,615.  1995 operations included
$139,187  associated with the Company's  unsuccessful merger with The Home-Stake
Royalty Corporation. 1996 operations include a reduction of $82,500 related to a
settlement  agreement  reached with the Federal  Insurance Company (see Part II,
Item 1, Legal Proceedings).

Results of Operations - Third quarter 1996 compared with third quarter 1995

Net income  for the  third  quarter increased $345,077 from $248,924  in 1995 to
$594,001 in 1996.  The principal reasons for this increase are as follows:

Oil sales  increased 32% ($270,465) due to higher average prices which increased
from  $14.89 per barrel in 1995 to $19.61  per  barrel in 1996,  coupled  with a
slight increase in production volumes from 56,515 barrels to 56,710 barrels.

Gas sales increased  $162,569 (38%) due to higher average prices which increased
from  $1.42  per mcf in 1995 to $2.04  per mcf in 1996,  partially  offset  by a
decrease in production volumes from 304,022 mcf to 291,158 mcf.

Gains on sales of assets in 1996  increased  $12,705.  In the third quarter 1996
the Company certain  properties for which there were no comparable  transactions
in 1995.

                                      -10-

<PAGE>



Lease operating  expenses increased $210,984 (60%). This increase in principally
attributable to operating costs associated with properties acquired in 1995.

Production  taxes  increased  $62,341  as a result of higher  production  values
described above.

Condemned and abandoned property expense increased $10,970 due to an increase in
the number of  non-producing  leaseholds  whose lease terms expired in the third
quarter of 1996, as compared to 1995.

General and administrative expense decreased $116,276.  1995 operations included
$19,866  associated with the Company's  unsuccessful  merger with The Home-Stake
Royalty Corporation. 1996 operations include a reduction of $82,500 related to a
settlement  agreement  reached with the Federal  Insurance Company (see Part II,
Item 1, Legal Proceedings).

Financial Condition and Liquidity

The Company's operating activities have traditionally been self-financed through
internally  generated cash flows.  The principal uses of cash flows have been to
fund the Company's  exploration and production activities and for the payment of
dividends to stockholders.  The use of borrowed funds has generally been limited
to the acquisition of producing oil & gas properties  where future revenues from
such purchases are expected to fund the debt.

The Company has an exploration and development budget for 1996 of $930,000.  The
Company has spent approximately $495,700 in the first three quarters of 1996 and
has current commitments of approximately $267,500 for the remainder of the year.
In addition,  the Company is actively pursuing  acquisition  opportunities  when
they arise.

The Company has a  revolving  line-of-credit  with  Boatmen's  National  Bank of
Oklahoma  in the amount of  $500,000  which  expires  May 1,  1997.  There is no
balance currently  outstanding  under this line,  however the Company has issued
letters of credit in the amount of $60,000 which are guaranteed by this line.

The working  capital deficit of $1,242,949 at December 31, 1995 has been reduced
to  $819,371  at  September  30,  1996 since the  Company has used cash flows to
reduce  current  liabilities.  Product  prices  remain above 1995 levels and the
Company's drilling commitments are $166,700 below budget. Excess cash flows will
be used to reduce the bank note payable and fund future business operations.

                                      -11-

<PAGE>



                           Part II. Other Information

Item 1.    Legal Proceedings.

     There is a complete discussion of legal proceedings in the Company's Annual
Report on Form 10-KSB for the year ended December 31, 1995 (the "Form  10-KSB").
During the third quarter of 1996 there have been the following  material changes
in the status of such matters.

     (a)  In  connection  with  the  Company's  and  HSRC's  (collectively  "the
          Companies")  action against Federal Insurance  Company  ("Federal") in
          the  United  States  District  Court  for  the  Northern  District  of
          Oklahoma,  the  Companies  entered  into a settlement  agreement  with
          Federal on August 5, 1996,  pursuant to which, the Companies  received
          an aggregate of $165,000  ($82,500 each company) and each party agreed
          to dismiss all of their respective claims against each other.

     (b)  In connection  with HSRC's dispute with the Bureau of Indian  Affairs,
          the Interior Board of Land Appeals of the United States  Department of
          the Interior  (the  "Appeals  Board")  ruled on September  17, 1996 on
          HSRC's  petition  for  clarification  and  reconsideration  of certain
          aspects  of the Appeal  Board's  earlier  ruling.  The  Appeals  Board
          determined that royalty  payments are due to the Kiowa Indians on 100%
          of sales from the date of first production. As a result, there will be
          additional  royalties,  as well as Kiowa  severance  tax,  due on this
          production.  HSRC is still reviewing this decision,  its impact on the
          owners of the  affected  properties  and  whether to appeal the ruling
          through a federal  court action.  At September  30, 1996,  the Company
          accrued $38,187,  representing  its share of additional  royalties and
          severance taxes.

     (c)  In connection  with the matter  discussed in the Company's Form 10-KSB
          described as "saltwater  contamination  claims",  the Companies  filed
          suit in the United States  District Court for the Eastern  District of
          Oklahoma on June 13, 1996,  against  Mobil Oil  Corporation  and Mobil
          Exploration & Production U.S., Inc. (collectively  "Mobil"). This suit
          is styled The Home-Stake Royalty  Corporation and The Home-Stake Oil &
          Gas Company v Mobil Oil Corporation and Mobil Exploration & Production
          U.S., Inc. (Case No. CIV-96-271-S). This action alleges Mobil's breach
          of the Unit Agreement;  breach of fiduciary duty; gross negligence and
          willful misconduct;  and fraud in connection with Mobil's operation of
          a property in which the Companies each own a 9% working interest.  The
          Companies are seeking actual damages,  punitive  damages and equitable
          relief in this matter,  including a  declaration  that Mobil is barred
          from charging costs related to certain saltwater  contamination claims
          and other related costs to the  Companies.  Mobil has counter  claimed
          for the  Companies  share of  environmental  costs which the Companies
          have not paid. Mobil has also filed a Motion for Summary Judgement, to
          which the  Companies  have filed a response.  Discovery  is ongoing in
          this matter, which is set for jury trial in January, 1997.

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.




                                      -12-

<PAGE>



Item 5. Other Information.

        None.

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

        (a)  Exhibits.

        The  following  documents  are included as exhibits to this Form 10-QSB.

           Exhibit
           Number          Description

           27              Financial Data Schedule

        (b)  Reports on Form 8-K.

         No reports on Form 8-K were filed  during  the  quarter ended September
         30, 1996.

                                      -13-

<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.


                                         The Home-Stake Oil & Gas Company
                                           (Registrant)


Date: November 13, 1996                   By: /s/  Robert C. Simpson
                                              ----------------------------
                                               Robert C. Simpson
                                               Chairman of the Board, C.E.O.,
                                               President and Treasurer


Date: November 13, 1996                    By: /s/  Chris K. Corcoran
                                               ----------------------------
                                                Chris K. Corcoran
                                                Executive Vice President,
                                                Chief Financial Officer and
                                                Corporate Secretary

                                      -14-