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, 1997

                         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 13, 1997,
the latest practicable date, was 89,509.




                                       -1-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY

                                   FORM 10-QSB
                               SEPTEMBER 30, 1997

                                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, 1997.............     5

        Consolidated Condensed Statements of Income and Accumulated
        Deficit for the Three Months ended September 30, 1997............     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,
                                                        1997           1996
Current assets:
  Cash and cash equivalents......................    $   296,200    $   350,772
  Accounts receivable............................        430,616      1,089,063
  Prepaid expenses...............................         29,728        133,213
                                                     -----------    ----------- 
                 Total current assets............        756,544      1,573,048

Investments (Note 2).............................      2,813,465      2,733,595

Property and equipment, at cost:.................     23,773,483     24,804,033
    Less accumulated depreciation,
    depletion and amortization...................     15,565,520     16,201,676
                                                     -----------    ----------- 
                 Net property and equipment......      8,207,963      8,602,357

Other assets.....................................         23,087         23,327
                                                     -----------    ----------- 
                                                     $11,801,059    $12,932,327
                                                     ===========    ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:
  Accounts payable and accrued liabilities.......    $   264,367    $   827,272
  Payable to affiliate...........................        158,683         66,213
  Income taxes payable...........................         44,686         15,971
  Bonus payable..................................         34,050         15,929
  Current note payable (Note 3)..................      1,369,320      1,369,320
                                                     -----------    ----------- 
                 Total current liabilities.......      1,871,106      2,294,705

Long-term note payable (Note 3)..................        797,570      2,738,640

Deferred income taxes............................        606,091        392,566
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............................        (45,304)    (1,065,180)
                                                     -----------    ----------- 
                                                      10,010,309      8,990,433
  Less treasury stock, at cost - 10,491 shares...      1,484,017      1,484,017
                                                     -----------    ----------- 
                 Total stockholders' equity......      8,526,292      7,506,416
                                                     -----------    ----------- 
                                                     $11,801,059    $12,932,327
                                                     ===========    ===========
                             See accompanying notes.

                                       -4-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                             AND ACCUMULATED DEFICIT
                  Nine months ended September 30, 1997 and 1996
                                   (Unaudited)



                                                        1997           1996
                                                        ----           ----
Revenues:
  Oil sales......................................    $ 3,053,455    $ 3,369,514
  Gas sales......................................      1,940,746      1,716,274
  Lease bonuses and rentals......................         58,707         13,418
  Interest and dividends.........................         19,060         18,824
  Gain on sales of assets........................        111,076         12,908
  Income from equity affiliates..................        242,683        205,855
  Other..........................................        126,852        124,797
                                                     -----------    ----------- 
                                                       5,552,579      5,461,590

Costs and expenses:
  Lease operating expenses.......................      1,203,595      1,594,693
  Production taxes...............................        416,335        491,583
  Depreciation, depletion and amortization.......        846,023      1,012,059
  Dry hole costs.................................        336,740         46,684
  Condemned and abandoned properties.............         42,767         19,724
  General and administrative expense.............        832,910        579,593
  Interest expense...............................        195,165        341,810
  Property, franchise and other taxes............         95,828         79,034
                                                     -----------    ----------- 
                                                       3,969,363      4,165,180

Income before provision for income taxes.........      1,583,216      1,296,410

Provision for income taxes:
  Current........................................        215,552         89,341
  Deferred.......................................        213,525        103,407
                                                     -----------    ----------- 
                                                         429,077        192,748
                                                     -----------    ----------- 

Net income.......................................      1,154,139      1,103,662

Accumulated deficit at beginning of period.......     (1,065,180)    (2,279,081)

Cash dividends ($1.50 per share - 1997, 
     $2.00 per share - 1996).....................       (134,263)      (179,018)
                                                     -----------    ----------- 

Accumulated deficit at end of period.............    $   (45,304)   $(1,354,437)
                                                     ===========    ===========
Weighted average number of 
     common shares outstanding....................        89,509         89,509
                                                          ======         ======

Net income per share..............................        $12.89         $12.33
                                                          ======         ======
                             See accompanying notes.

                                       -5-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY
                   CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                             AND ACCUMULATED DEFICIT
                 Three months ended September 30, 1997 and 1996
                                   (Unaudited)



                                                       1997              1996
                                                       ----              ----
Revenues:
  Oil sales......................................    $   822,535    $ 1,111,848
  Gas sales......................................        551,213        592,938
  Lease bonuses and rentals......................         17,881          5,955
  Interest and dividends.........................          5,260          8,786
  Gain (loss) on sales of assets.................         11,368         10,043
  Income from equity affiliates..................         76,694         89,961
  Other..........................................         39,975         50,570
                                                     -----------    ----------- 
                                                       1,524,926      1,870,101

Costs and expenses:
  Lease operating expenses.......................        430,219        562,968
  Production taxes...............................        116,200        168,893
  Depreciation, depletion and amortization.......        212,008        337,353
  Dry hole costs.................................         61,626            566
  Condemned and abandoned properties.............          8,096         24,799
  General and administrative expense.............        296,070        112,838
  Interest expense...............................         49,247        103,526
  Property, franchise and other taxes............         24,625         21,797
                                                     -----------    ----------- 
                                                       1,198,091      1,332,740

Income before provision for income taxes.........        326,835        537,361

Provision for income taxes:
  Current........................................         60,066         34,641
  Deferred.......................................         54,293        (91,281)
                                                     -----------    ----------- 
                                                         114,359        (56,640)
                                                     -----------    ----------- 

Net income.......................................        212,476        594,001

Accumulated deficit at beginning of period.......       (213,026)    (1,903,684)

Cash dividends ($.50 per share)..................        (44,754)       (44,754)
                                                     -----------    ----------- 
Accumulated deficit at end of period.............    $   (45,304)   $(1,354,437)
                                                     ===========    ===========
Weighted average number of 
     common shares outstanding...................         89,509         89,509
                                                          ======         ======

Net income per share.............................         $ 2.37         $ 6.64
                                                          ======         ======
                             See accompanying notes.

                                       -6-

<PAGE>



                        THE HOME-STAKE OIL & GAS COMPANY
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                  Nine months ended September 30, 1997 and 1996
                                   (Unaudited)



                                                         1997           1996
                                                         ----           ----
Operating activities:
  Oil and gas sales, net of production taxes.....    $ 4,820,641    $ 4,521,703
  Lease bonuses and rentals......................         58,707         13,418
  Interest and dividends.........................         19,060         18,824
  Other..........................................        126,852        124,797
                                                     -----------    ----------- 
                                                       5,028,260      4,678,742

  Cash paid to suppliers and employees...........      1,885,843      2,338,802
  Interest paid..................................        195,165        341,810
  Property, franchise and other taxes............         95,828         79,034
  Income taxes paid..............................        186,837         36,142
                                                     -----------    ----------- 
                                                       2,363,673      2,795,788
    Net cash provided by operating activities....      2,661,587      1,882,954


Investing activities:
  Proceeds from sales of property and equipment..        245,554         13,043
  Acquisition of property and equipment..........       (922,779)      (323,783)
  Dividends/distributions from equity affiliates.         36,331         48,449
                                                     -----------    ----------- 
    Net cash used in investing activities........       (640,894)      (262,291)


Financing activities:
  Note payments..................................     (1,941,070)    (1,255,233)
  Cash dividends paid............................       (134,195)      (178,878)
                                                     -----------    ----------- 
    Net cash used in financing activities........     (2,075,265)    (1,434,111)
                                                     -----------    ----------- 

Net increase (decrease) in cash 
     and cash equivalents........................       (54,572)        186,552

Cash and cash equivalents at 
     beginning of period.........................        350,772        227,144
                                                     -----------    ----------- 

Cash and cash equivalents at end of period.......    $   296,200    $   413,696
                                                     ===========    ===========







                             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, 1996.

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,
1997 and 1996 for The Home-Stake Royalty Corporation ("HSRC") and Alden Pipeline
Company is presented below:

                                             1997              1996
                                             ----              ----
Income Statement data:
          Revenues.....................  $ 6,000,533       $ 5,811,624
          Income before income taxes...    1,938,921         1,726,594
          Net income (1)...............    1,470,826         1,417,179

          (1) Includes  $333,541  and  $212,440 in 1997 and 1996,  respectively,
          attributable to the equity earnings of the Company recorded by HSRC.

During the first  quarter of 1997,  the  Company  sold its  interest in the N.E.
Alden Field,  including Alden Pipeline Company.  This sale was effective January
1, 1997.  Accordingly,  the 1997  information  presented  above does not include
amounts  attributable  to the  operations  of Alden  Pipeline  Company;  amounts
included for 1996 operations are not material to the totals shown.

Note 3 - Note payable

Note  payable at  September  30,  1997,  represents  the  amounts  due under the
Company's  financing agreement which is due May 1, 1999 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, 1998 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 a letter  of  credit  in the  amount  of  $60,000  which is
guaranteed by this line.

The note  payable  and line of  credit  described  above are  collateralized  by
certain of the Company's producing properties.

Note 4 - Contingencies

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.


                                       -8-

<PAGE>



Item 2.     Management's Discussion and Analysis.

Results of  Operations  - First  nine  months of 1997  compared  with first nine
months of 1996

Net income for the first nine months increased $50,477,  from $1,103,662 in 1996
to $1,154,139 in 1997. The principal reasons for this increase are as follows:

Oil sales  decreased 9%  ($316,059) as a result of a decrease in the average oil
price from $19.20 per barrel to $19.07 per barrel,  coupled  with an decrease in
production  volumes of 15,398 barrels.  This decrease in production  volumes was
primarily a result of property dispositions during 1996 and early 1997.

Gas sales  increased  $224,472 (13%) due to an increase in the average gas price
per mcf from $1.96 in 1996 to $2.31 in 1997,  partially  offset by a decrease in
production volumes from 875,402 mcf in 1996 to 840,305 mcf in 1997.

Lease rentals and bonuses  increased  $45,289 due to higher leasing  activity in
1997 than in 1996.

Gains on sales of assets increased $98,168 in 1997, following the Company's sale
of their  interest in the N.E.  Alden Field.  There were no comparable  sales in
1996.

Income from equity affiliates increased $36,828 in 1997. The Company's principal
equity  investee,  The Home-Stake  Royalty  Corporation,  reported net income of
$1,470,826 in 1997 and  $1,433,259 in the same period of 1996. In addition,  the
Company's ownership in The Home-Stake Royalty  Corporation  increased from 17.1%
to 19.3% in November 1996.

Lease operating  expenses  decreased  $391,098 (25%) from 1996. This decrease is
principally   attributable  to  environmental   remediation   expenses  in  1996
associated  with a  waterflood  property  in which the  Company has a 9% working
interest,  coupled  with an insurance  reimbursement  in 1997 of certain of such
costs of approximately $145,250.

Production  taxes  decreased  $75,248  as a result  of lower  production  values
described above.

Dry hole costs  increased  $290,056 in 1997 due to the greater  incidence of dry
holes and  higher  average  costs per well.  In 1996 there were 3 dry holes (.18
net) drilled at an average gross cost of $259,355 per well; in 1997 there were 8
dry holes (.73 net) drilled at an average gross cost of $461,288 per well.

Condemned  and  abandoned  property  expense  increased  $23,043.  1996  expense
includes salvage credits of $12,488 received on a property  abandoned during the
first  quarter.  1997 expense was also higher due to the  abandonment of acreage
costs associated with eight dry holes in 1997, compared to only three in 1996.

General and administrative expense increased $253,317.  1997 operations includes
$80,712  associated  with the  Company's  proposed  merger  with The  Home-Stake
Royalty  Corporation (see Item 5 below). In addition,  the Company added certain
full-time and contract employees in late 1996 and early 1997, in connection with
its  exploration  activities.  1996  operations  include a reduction  of $82,500
related to a settlement  agreement reached with the Company's  insurance carrier
for its officers and directors liability coverage.

Interest  expense  decreased  $146,65 in 1997,  reflecting  the Company's  lower
average borrowings.

Results of Operations - Third quarter 1997 compared with third quarter 1996

Net income for the third quarter  decreased  $381,525,  from $594,001 in 1996 to
$212,475 in 1997. The principal reasons for this increase are as follows:


                                       -9-

<PAGE>



Oil sales  decreased  26%  ($289,313)  due to lower  average oil  prices,  which
decreased  from $19.61 per barrel in 1996 to $16.85 per barrel in 1997,  coupled
with a decrease in production volumes from 56,710 barrels to 48,830 barrels.

Gas sales  decreased  $41,725 (7%) due to a decrease in production  volumes from
291,158 mcf to 268,941 mcf, partly offset by slightly higher average gas prices,
which increased from $2.04 per mcf in 1996 to $2.05 per mcf in 1997.

Lease operating  expenses decreased $132,749 (24%). This decrease is principally
attributable  to  environmental  remediation  expenses in 1996 associated with a
waterflood property in which the Company has a 9% working interest, coupled with
an  insurance  reimbursement  in 1997 of certain of such costs of  approximately
$145,250.

Production  taxes  decreased  $52,693  as a result  of lower  production  values
described above.

Dry hole costs increased $61,060. There were three dry holes drilled in 1997 and
none in 1996.

General and administrative expense increased $183,232.  1997 operations includes
$60,577  associated  with the  Company's  proposed  merger  with The  Home-Stake
Royalty  Corporation (see Item 5 below). In addition,  the Company added certain
full-time and contract employees in late 1996 and early 1997, in connection with
its  exploration  activities.  1996  operations  include a reduction  of $82,500
related to a settlement  agreement reached with the Company's  insurance carrier
for its officers and directors liability coverage.

Interest  expense  decreased  $54,279 in 1997,  reflecting  the Company's  lower
average borrowings.

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 a capital  expenditures  budget  for 1997 of $1  million.  The
Company has spent approximately $776,000 in the first three quarters of 1997 and
has current commitments of approximately $400,000 for the remainder of the year.
In addition,  the Company is actively pursuing  acquisition  opportunities  when
they arise.

The Company's  working capital  deficit at September 30, 1997 was  approximately
$1.1  million.  Since the  beginning  of 1997,  product  prices  have  decreased
approximately 25% for oil and 36% for natural gas. Despite these decreases,  the
Company  expects to finance  its  working  capital  deficit  and  budgeted  1997
drilling  activities  from  internally  generated cash flows.  In addition,  the
Company has a revolving line-of-credit with NationsBank,  N.A,. in the amount of
$500,000 which expires May 1, 1998.  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  Company  does not engage,  nor does it expect to engage,  in any hedging or
other  similar  transactions  which are  intended  to manage  risks  relating to
movements in oil and natural gas prices.

The Company does not expect its costs of  addressing  the "Year 2000" problem to
be  significant.  Nor is this problem  expected to cause any  disruption  in the
operations or business activities of the Company.

Statement of Financial  Accounting  Standards No. 128,  Earnings Per Share, will
become  effective for periods ending after  December 15, 1997.  Adoption of this
statement  will  not  have  a  material  effect  on  the  Company's  results  of
operations.

                                      -10-

<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, 1996
           (the "Form 10-KSB"). Since the date of that report there have been no
           material changes in the status of such matters.

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.

Item 5.    Other Information.

           At a special meeting of stockholders scheduled to be held on December
           11,  1997,  stockholders  will be  asked  to  consider  and vote on a
           proposal to approve and adopt a Merger Agreement  between the Company
           and The Home-Stake Royalty  Corporation  ("HSRC"),  pursuant to which
           HSRC will be merged with and into the Company and the common stock of
           the  Company  will be split on a 30-for-1  basis ("new  stock").  The
           terms of the Merger Agreement provide that the holders of HSRC common
           stock will receive  48.66 shares of the  Company's new stock for each
           share of HSRC common stock owned at the effective time of the Merger,
           and that holders of the Company's common stock will receive 30 shares
           of new stock for each  share  they own at the  effective  time of the
           Merger.  The terms of the  Merger  Agreement  also  provide  that the
           Company's  Certificate of  Incorporation  will be amended to increase
           the number of  authorized  shares of the  Company's  capital stock in
           order to accomplish the Merger.  In addition,  stockholders will also
           be  asked  to  approve   certain   other  changes  to  the  Company's
           Certificate of  Incorporation  and to approve the HSOG 1997 Incentive
           Stock Plan.

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, 1997.

                                                       -11-

<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 14, 1997                   By: /s/  Robert C. Simpson
                                              -------------------------------
                                               Robert C. Simpson
                                               Chairman of the Board, C.E.O.,
                                               President and Treasurer


Date: November 14, 1997                   By: /s/  Chris K. Corcoran
                                              -------------------------------
                                               Chris K. Corcoran
                                               Executive Vice President,
                                               Chief Financial Officer and
                                               Corporate Secretary


                                                       -12-