SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                   FORM 10-QSB

(Mark One)

     [X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
            Act of 1934

         For the quarterly period ended December 31, 2001

     [ ] Transition report under Section 13 or 15(d) of the Securities Exchange
         Act

         For the transition period from ______________ to _______________

Commission file number    33-15528-D
                      --------------

                            MONUMENT RESOURCES, INC.
         ---------------------------------------------------------------
        (Exact name of Small Business Issuer as Specified in its Charter)

           Colorado                                              84-1028449
 ------------------------------                               -----------------
(State or Other Jurisdiction of                              (I.R.S. Employer
 Incorporation or Organization)                              Identification No.)


           2050 South Oneida Street, Suite 106, Denver, Colorado 80224
           ----------------------------------------------------------
          (Address of Principal Executive Offices, Including Zip Code)

                                 (303) 692-9468
                 ----------------------------------------------
                (Issuer's Telephone Number, Including Area Code)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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
                                  -----  -----
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 4,869,000 shares of common stock were
outstanding at February 8, 2002.

Transitional Small Business Disclosure Format (Check One):

                               Yes     No  X
                                  -----  -----

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                                      INDEX

                                                                     Page Number
                                                                     -----------
PART I.           FINANCIAL INFORMATION

     Item 1.      Consolidated Balance sheets as of                           2
                  December 31, 2001 and September 30, 2001

                  Consolidated Statements of Operations                       4
                  for the Three Months ended
                  December 31, 2001 and 2000

                  Consolidated Statements of Cash Flows                       5
                  for the Three Months ended
                  December 31, 2001 and 2000

                  Notes to Consolidated Financial Statements                  6

     Item 2.      Management's Discussion and Analysis of                     20
                  Financial Condition and Results of Operations

PART II.          OTHER INFORMATION                                           22


<PAGE>
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<CAPTION>


                     MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS

                                       ASSETS

                                                       December 31,     September 30,
                                                           2001             2001
                                                       (Unaudited)        (Audited)
                                                        ----------       ----------


Current assets
         <S>                                           <C>              <C>
         Cash                                           $     --         $    9,203
         Investment in securities                          432,112          512,176
         Accounts receivable                                62,164           55,292
         Prepaid expense                                     8,283           22,676
                                                        ----------       ----------

Total current assets                                       502,559          599,347
                                                        ----------       ----------

Mineral properties                                          53,616           53,616
Proved and unproved oil and gas
         properties, successful efforts method
         net of accumulated depreciation                   580,105          562,195

Property and equipment:
         Gas pipeline, net of
           accumulated depreciation                        168,561          171,461
         Property and equipment, net of
           accumulated depreciation                         47,085           50,185
                                                        ----------       ----------

Net property and equipment                                 215,646          221,646

Investments in securities, at market                        40,984           64,231
                                                        ----------       ----------

Total assets                                            $1,392,910       $1,501,035
                                                        ==========       ==========


See Notes to Consolidated Financial Statements.

                                         2
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<PAGE>
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<CAPTION>



                      MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS

                        LIABILITIES AND STOCKHOLDERS' EQUITY


                                                     December 31,      September 30,
                                                         2001              2001
                                                      (Unaudited)       (Audited)

Current liabilities
         <S>                                         <C>               <C>
         Accounts payable and accrued expenses       $    45,984       $    38,289
         Insurance proceeds, net                          23,546            27,952
         Note payable - current (Note 4)                   5,000              --
                                                     -----------       -----------

Total current liabilities                                 74,530            66,241
                                                     -----------       -----------

Stockholders' equity:
Preferred Stock, no par value, authorized
         1,000,000 shares; none issued
Common Stock, no par value, authorized
         10,000,000 shares; 4,869,000 issued
         and outstanding on September 30, 2001
         and December 31, 2001                         3,167,782         3,167,782
Accumulated deficit                                   (1,895,328)       (1,805,778)
Unrealized gain on investment in securities               45,926            72,790
                                                     -----------       -----------

Total stockholders' equity                             1,318,380         1,434,794
                                                     -----------       -----------

Total liabilities and stockholders' equity           $ 1,392,910       $ 1,501,035
                                                     ===========       ===========


See Notes to Consolidated Financial Statements.

                                         3

</TABLE>

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<CAPTION>



                           MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                             CONSOLIDATED STATEMENTS OF OPERATIONS
                                          (UNAUDITED)


                                                        Three Months          Three Months
                                                      Ended December 31,   Ended December 31,
                                                            2001                  2000
                                                         ----------            ----------
Revenue
        <S>                                              <C>                  <C>
         Oil and gas sales                               $   34,305           $   56,971
         Pipeline income                                     29,466              124,127
         Interest and other                                   3,010                2,956
         Gain on sale of investment stock                     2,421                6,623
                                                         ----------           ----------

                  Total                                      69,202              190,677
                                                         ----------           ----------

Expenses
         Oil and gas operating expense                       13,390               40,807
         Pipeline operating expense                          38,264               26,650
         General and administrative                          88,648               50,621
         Depletion, depreciation and amortization            18,450               23,593
                                                         ----------           ----------

                  Total                                     158,752              141,671
                                                         ----------           ----------

Net income (loss) $                                         (89,550             )$49,006
                                                         ==========           ==========
Basic income (loss) per common share                        ( .02 )                  .01
                                                         ==========           ==========
Diluted income (loss) per common share                      ( .02 )                  .01
                                                         ==========           ==========
Weighted average number of shares outstanding             4,869,000            4,869,000
                                                         ==========           ==========


See Notes to Consolidated Financial Statements.

                                               4
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<CAPTION>


                         MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                        (UNAUDITED)


                                                           Three Months Ended December 31,
                                                                  2001          2000
                                                               ----------    ---------
Cash flows from operating activities:
<S>                                                            <C>             <C>
Net income (loss)                                              $ ( 89,550)      49,006
Items not affecting cash:
         Depreciation, depletion and amortization                  18,450       23,593
         Gain on sale of securities                                (2,420       (6,623)
 Changes in operating assets and liabilities:
         Decrease in prepaid expense                               14,393        4,717
         Increase in accounts receivable                          ( 6,872)     (17,341)
         Increase in accounts payable and
           accrued expenses                                         8,289       33,009
                                                                ---------    ---------

Net cash flow from operations                                    ( 57,710)      86,361
                                                                ---------    ---------

Cash flows from investing activities:

Proceeds from sale of investment securities                        78,867        6,623

Proceeds from bond investment                                        --          6,170

Additions to oil and gas properties                               (30,360)      (9,369)

Investment in bond fund                                              --        (66,318)
                                                                ---------    ---------

Net cash flows from investing activities:                          48,507      (62,894)
                                                                ---------    ---------

Net increase (decrease) in cash                                   ( 9,203)      23,467

Cash at beginning of period                                         9,203       78,831
                                                                ---------    ---------

Cash at end of period                                           $    --      $ 102,298
                                                                =========    =========


                    Schedule of Non-cash Investing Activities
                    -----------------------------------------
(Decrease) in unrealized gain on
         securities available for sale                          $ (26,864)   $ (13,140)
                                                                =========    =========


See Notes to Consolidated Financial Statements

                                             5
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<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 -- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

THE COMPANY

     Monument Resources, Inc. was organized under the laws of the State of
Colorado on October 1, 1984. We are in the business of acquiring and brokering
mineral and oil and gas properties and exploring, developing, and selling
production from our oil and gas properties. Our mineral properties are in
Montana. Our oil and gas properties are in Webb and Knox counties, Texas,
Leavenworth county, Kansas and Kimball county, Nebraska. We also operate a gas
pipeline in conjunction with our Leavenworth gas wells.

     We have a substantial investment in mineral and oil and gas properties. We
may not have sufficient capital to fully explore our mineral holdings or to
develop some of our oil and gas properties, which would require significant
additional investment. We have in the past relied on joint venture partners to
supply most of the funds needed to explore or develop our properties, and may
also rely on such partners for similar funding in the future. The ability to
obtain outside funding may be critical to our exploration and development
efforts of some of our properties. As a result of these factors, recovery of our
investments in these properties cannot be assured.

CONSOLIDATION

     The accompanying consolidated financial statements include the accounts of
our company, our wholly owned Canadian subsidiary formed for the purpose of
owning real property in British Columbia, and our wholly owned Kansas
subsidiary, COG Transmission Corporation. All inter-company transactions and
balances have been eliminated in consolidation.

STATEMENT OF CASH FLOWS

     For statement of cash flow purposes, we consider short-term investments
with original maturities of three months or less to be cash equivalents. Cash
restricted from use in operations beyond three months is not considered a cash
equivalent.

                                       6

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 1 -- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

MANAGEMENT'S USE OF ESTIMATES

     The preparation of financial statements in conformity with generally
accepted accounting principles requires our management to make certain estimates
and assumptions that affect the reported amounts of assets and liabilities, the
disclosure of contingent liabilities at the date of the financial statements and
reported amounts of revenues and expenses. Actual results could differ from
those estimates.

IMPAIRMENT OF LONG-LIVED ASSETS

     We evaluate the carrying value of assets, other than investments in
marketable securities, for potential impairment on an ongoing basis under the
tenets of SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and
for Long-Lived Assets to be Disposed Of". Under SFAS No. 121, we periodically
evaluate the carrying value of long-lived assets and long-lived assets to be
disposed of and certain identifiable intangibles and goodwill related to those
assets for potential impairment. We consider projected future operating results,
cash flows, trends and other circumstances in making such estimates and
evaluations and reduce the carrying value of impaired assets to fair value.

EARNINGS PER SHARE

     We have adopted Financial Accounting Standard No. 128 addressing earnings
per share. SFAS No. 128 established the methodology of calculating basic
earnings per share and diluted earnings per share. The calculations differ by
adding any instruments convertible to common stock (such as stock options,
warrants, and convertible preferred stock) to weighted average shares
outstanding when computing diluted earnings per share.

                                       7

<PAGE>
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<CAPTION>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 1 -- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

     The following is a reconciliation of the numerators and denominators used
in the calculations of our basic and diluted earnings (loss) per share for the
quarters ended December 31, 2001, and 2000:

                                                 2001                                       2000
                                  ----------------------------------          -------------------------------
                                                                Per                                     Per
                                      Net                      Share            Net                     Share
                                    (Loss)        Shares       Amount          Income        Shares     Amount

Basic earnings per share:
     Net income (loss)
     <S>                          <C>            <C>           <C>            <C>           <C>           <C>
     and share amounts            $(89,550)      4,869,000     $(.02)         $ 49,006      4,869,000    $ .01

     Dilutive securities:
       None                       --------       ---------     -----          --------      ---------    -----

Diluted earnings per share:
     Net income (loss) and
      assumed share conversion    $(89,550)      4,869,000     $(.02)         $ 49,006      4,869,000    $ .01
                                  ========       =========     =====          ========      =========    =====



COMPREHENSIVE INCOME

     We have adopted Financial Accounting Standard No. 130, which establishes
standards for reporting of comprehensive income. This pronouncement requires
that all items recognized under accounting standards as components of
comprehensive income, as defined in the pronouncement, be reported in a
financial statement that is displayed with the same prominence as other
financial statements. Comprehensive income includes changes in equity during a
period, except those resulting from investments by owners and distributions to
owners. Under comprehensive income, we report unrealized gains and losses on
investments in debt and equity securities as changes in equity.

                                       8
</TABLE>

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 1 -- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

SEGMENT REPORTING

     We have adopted Financial Accounting Standard No. 131, which requires a
public enterprise to report financial and descriptive information about its
reportable operating segments. Operating segments, as defined in the
pronouncement, are components of an enterprise about which separate financial
information is available that is evaluated regularly by us in deciding how to
allocate resources and in assessing performance. The financial information is
required to be reported on the basis that is used internally for evaluating
segment performance and deciding how to allocate resources to segments.

MINERAL PROPERTIES

     Costs of acquiring, exploring, and developing specific mineral properties
are capitalized on a property by property basis until the commercial viability
of each property is determined. When a property reaches the production stage,
the related capitalized costs will be amortized, using the units of production
method on the basis of periodic estimates of ore reserves. Proved and unproved
mining properties are periodically assessed for impairment of value and any
impairments are charged to operations at the time of impairment. Should a
property be sold or abandoned, its capitalized costs are charged to operations
and gain or loss recognized.

OIL AND GAS PROPERTIES

     We follow the successful efforts method of accounting for its oil and gas
activities. Under this accounting method, costs associated with the acquisition,
drilling and equipping of successful exploratory and development wells are
capitalized. Geological and geophysical costs, delay rentals and drilling costs
of unsuccessful exploratory wells are charged to expense as incurred. Depletion
and depreciation of the capitalized costs for producing oil and gas properties
are provided by the unit-of-production method based on proved oil and gas
reserves. Undeveloped and unproved properties are periodically assessed for
possible impairment due to unrecoverability of costs invested. Developed and
proved properties are periodically assessed under the accounting rules of SFAS
No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of." Cash received for partial conveyances of property
interests are treated as a recovery of cost and no gain or loss is recognized.

                                       9

<PAGE>



                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 1 -- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

PROPERTY, EQUIPMENT, AND GAS PIPELINE

     Depreciation of property and equipment are expensed in amounts sufficient
to relate the expiring costs of depreciable assets to operations over estimated
service lives, principally using the straight-line method. Estimated service
lives range from three to eight years. Our gas pipeline is being depreciated on
units-of-gas production method based on the production of the gas wells served
by the pipeline. When such assets are sold or otherwise disposed of, the cost
and accumulated depreciation are removed from the accounts and any resulting
gain or loss is reflected in our operations in the period realized.

INCOME TAXES

     We have made no provision for income taxes for the three-month period ended
December 31, 2001 since we utilize net operating loss carryforwards. We had
$1,197,340 of such carryforwards at September 30, 2001.

INVESTMENTS IN SECURITIES

     We follow Financial Accounting Standard No. 115 in accounting for our
security investments. In accordance with SFAS No. 115, our investments in
securities have been classified as available for sale because they are being
held for an indefinite period of time. Under the available for sale
classification, the securities are recorded as an asset at current market value
in the balance sheet with an equal amount representing unrealized gains recorded
as a component of stockholders' equity. The current market value was derived
from published newspaper quotations as of December 31, 2001, and September 30,
2001. At the time of sale, a gain or loss is recognized in the statement of
operations using the cost basis of the securities sold as determined by specific
identification.

FINANCIAL INSTRUMENTS

Concentration of Credit Risk
----------------------------

     Financial instruments, which potentially subject us to significant
concentrations of credit risk, consist principally of cash, trade receivables
and investments in securities.

                                       10

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 1 -- ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

     We maintain cash with various financial institutions. We periodically
evaluate the financial standing of these institutions and believe the credit
risk to be minimal.

     We have recorded trade accounts receivable from the business operations. We
periodically evaluate the collectibility of trade receivables and believe the
receivables to be fully collectible and the credit risk to be minimal.

     Our investment in U.S. Government securities and other corporate bonds is
subject to moderate price volatility due to interest rate changes; however,
realization of these investments has minimal risk. Our investment in common
stock of two companies is subject to substantial price volatility due to the
nature of Canadian stock markets, the nature of the extractive industries
business and variations in the Canadian dollar exchange rate.

Fair Value
----------

     The carrying amount of our financial instruments is equivalent to their
fair value as follows:

     Cash and cash equivalents -- The carrying amount approximates fair value
     because of the short maturities of these instruments.

     Marketable securities -- The carrying amounts approximate the fair value
     because the securities are valued at the market prices based on published
     trading price information and was accounted for using the available for
     sale accounting method.

NOTE 2 -- ESTIMATES AND RISKS

     The process of preparing financial statements in conformity with generally
accepted accounting principles requires the use of estimates and assumptions
regarding certain types of assets, liabilities, revenues and expenses. Such
estimates primarily relate to impairments of mineral and oil and gas properties,
oil and gas reserves and future dismantlement, restoration and abandonment
costs. The actual future results in the above areas may differ from the
estimated amounts.

                                       11

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 2 -- ESTIMATES AND RISKS (CONTINUED)

     Financial statement accounts, which potentially subject us to
concentrations of credit risk, consist primarily of cash and investments in
securities. We attempt to deposit our cash with high quality financial
institutions in amounts less than the federal insurance limit of $100,000 in
order to limit credit risk. Our investment in bonds is considered to have
minimum credit risk since they are U.S. government instruments. Our investments
in common stock are considered to have substantial credit risk since the stock
is in companies without a long history of successful operations and whose market
values are variable and cyclical.

     The mining and oil and gas industries are subject, by their nature, to
environmental hazards and cleanup costs for which we carry catastrophe
insurance. At this time, we know of no substantial costs from environmental
accidents or events for which we may be currently liable. In addition, our oil
and gas business makes us vulnerable to changes in wellhead prices of crude oil
and natural gas. Such prices have been volatile in the past and can be expected
to be volatile in the future. By definition, proved reserves are based on
current oil and gas prices. Price declines reduce the estimated quantity of
proved reserves and increase annual amortization expense (which is based on
proved reserves).

NOTE 3 -- INVESTMENTS IN SECURITIES

     We have recorded our investment in 75,000 shares of Southern Africa
Minerals Corporation ("SAMC") (Toronto Exchange), a Canadian company, and
380,000 shares of PlayFair Mining, Ltd. ("PlayFair") (formerly LayField
Resources, Inc.) (Vancouver Exchange), a Canadian company, at fair value in
accordance with Financial Accounting Standard No. 115. During the quarters ended
December 31, 2001 and 2000, we sold no shares of stock of either of these two
companies. Based on the demonstrated liquidity and marketability of the PlayFair
and SAMC shares, and in accordance with Financial Accounting Standard No. 115,
we have recorded our investments in the stocks based on published market
listings and on the closing bid price in the stocks' respective exchanges. These
shares are classified as available for sale and non-current, since such sale may
not necessarily be consummated in the near term.

     Our investment in debt securities consists of various U.S. government
financial instruments and other corporate bonds. We consider these bonds to be
currently available for sale and have no timetable for sale or redemption.
Nevertheless, we do not expect to hold the bonds to maturity.

                                       12

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 3 -- INVESTMENTS IN SECURITIES (CONTINUED)

Investments in securities are summarized as follows at December 31, 2001:

                                                  Unrealized            Fair
                                                  Gain (Loss)           Value
                                                   --------            --------
Available-for-sale securities:
     Common stock                                  $ 38,580            $ 40,984
     Debt securities (maturing in 1 to 26 years)      7,346             432,112
                                                   --------            --------

                                                    $45,926            $473,096
                                                   ========            ========

Investments in securities are summarized as follows at September 30, 2001:

                                                  Unrealized            Fair
                                                  Gain (Loss)           Value
                                                   --------            --------
Available-for-sale securities:
     Common stock                                   $61,828            $ 64,231
     Debt securities (maturing in 1 to 17 years)     10,962             512,176
                                                   --------            --------

                                                    $72,790            $576,407
                                                   ========            ========

NOTE 4 -- NOTE PAYABLE

     On December 31, 2001, one of our officers loaned us $5,000 to prevent a
short-term bank overdraft. The note is due on demand and is non-interest
bearing.

NOTE 5 -- MINERAL PROPERTIES

DOBLER PROSPECT, BROADWATER COUNTY, MONTANA

     The Dobler prospect, with capitalized costs of $53,616 at December 31,
2001, and September 30, 2001, consists of 80 acres of fee simple land (including
minerals) and mineral rights to the 280 surrounding acres. We are trying to
locate joint venture opportunities to further explore the property and have
considered selling the property. Alternative uses of the mineral property are
supplying flux to a nearby smelter or selling the property as ranch land. The
property's value as ranch land or as a home site approximates our capitalized
costs in the prospect.

                                       13

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 5 -- MINERAL PROPERTIES  (CONTINUED)

ALL MINERAL PROPERTIES

     Total mineral costs for all properties capitalized were $53,616 as of
December 31, 2001, and September 30, 2001.

NOTE 6 -- PROPERTY AND EQUIPMENT

     The following is a summary of property and equipment at cost, less
accumulated depreciation:

                                              December 31,        September 30,
                                                 2001                 2001
                                              (Unaudited)          (Audited)
                                             --------------      --------------

Land                                           $   12,500          $   12,500
Machinery and equipment                            96,898              96,898
                                               ----------          ----------
     Total                                        109,398             109,398

Less:  Accumulated depreciation                   (62,313)            (59,213)
                                               ----------          ----------

     Net property and equipment                    47,085              50,185
                                               ----------          ----------

Pipeline                                          300,000             300,000

Less:  Accumulated depreciation                  (131,439)           (128,539)
                                                ---------           ---------

     Net pipeline                                 168,561             171,461
                                                ---------           ---------

     Net property and equipment                  $215,646            $221,646
                                                 ========            ========

     Depreciation expense charged to operations was $6,000 for the first quarter
ended December 31, 2001 and $23,989 for the fiscal year ended September 30,
2001.

The useful lives of property and equipment for purposes of computing
depreciation are:

           Machinery and equipment                     5 years
           Pipeline                                    Useful life of related
                                                       gas production,
                                                       approximately 5 to 7
                                                       years

                                       14

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 7 -- STOCKHOLDERS' EQUITY

     We amended our Articles of Incorporation authorizing the issuance of
1,000,000 shares of preferred stock with no par value. The preferred stock may
be issued from time to time with such designations, rights, preferences and
limitations as our Board of Directors may determine by resolution. As of
December 31, 2001, no shares of preferred stock had been issued.

NOTE 8 -- STOCK OPTION PLANS

     During 2000, we adopted a Stock Option Plan (the "2000 Plan"). The exercise
price of the shares covered by options granted pursuant to the 2000 Plan may not
be less than the fair market value of the common stock on the grant date.
Further, the exercise price shall not be less than 110% of the fair market value
of the common stock on the day of grant if the optionee owns 10% or more of our
common stock. With respect to each individual option granted under the 2000
Plan, our Board of Directors will determine separately the number of shares, the
option period, and the limitations which will apply to the exercise of options.
As of December 31, 2001, we had an aggregate of 750,000 common shares reserved
for issuance under the 2000 Plan. Additionally, as of December 31, 2000, options
to purchase 450,000 common shares had been granted to three board members, an
employee and a consultant. No options were granted to employees or directors for
the quarter ended December 31, 2001.

     We have applied Financial Accounting Standard No. 123 in accounting for
options granted to consultants. Accordingly, the fair value of each option
granted to the consultant is estimated on the date of grant using the
Black-Scholes option-pricing model.

     In July 2001, we granted options to purchase 100,000 common shares to a
consultant. The options are exercisable at $.50 per common share for a period of
two years beginning July 31, 2001. The following weighted average assumptions
were utilized in valuing the 2001 options: no dividend yield, expected
volatility of 20%, risk free interest rates of 8.5% and expected lives of 2
years. Using these factors, the Black Scholes option-pricing model calculates
compensation to the consultant of $-0- for the quarter ended December 31, 2001
because the shares are thinly traded with minimal price volatility. We consider
the services to be rendered under this agreement to be immaterial and have not
recorded any value to the granting of these options.

     In March 2000, we granted options to purchase 50,000 common shares to a
consultant. The options are exercisable at $.15 per common share for a period of
five years beginning March 2, 2000. The following weighted average assumptions
were utilized in valuing the 2000 options: no dividend yield, expected
volatility of 100%, risk free interest rates of 8.5% and expected lives of 5
years. Based on the model, $-0- of consulting expense was recorded for the
quarter ended

                                       15

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 8 -- STOCK OPTION PLANS (CONTINUED)

December 31, 2001 for grant of options to the consultant in conformity with SFAS
No. 123 requirements.

     The following schedule summarizes information with respect to options
granted under our equity plans:

                                           Number            Weighted Average
                                             of              Exercise Price of
                                           Shares            Shares Under Plans
                                          --------               --------
Outstanding December 31, 2000              450,000               $    .15
Granted                                    100,000                    .50
Exercised                                     --                    --
Forfeited or expensed                         --                    --
                                          --------               --------
Outstanding September 30, 2001             550,000                    .27
Granted                                       --                    --
Exercised                                     --                    --
Forfeited or expensed                         --                    --
                                          --------               --------
Outstanding December 31, 2001              550,000               $    .27
                                          =========              ========

     We have applied APB 25 in accounting for options granted to employees and
directors.

NOTE 9 -- SEGMENT INFORMATION

     We operate in three industry segments within the United States: (1) oil and
gas exploration and development, (2) mineral exploration and development, and
(3) gas transmission pipeline.

     Identified assets by industry are those assets that are used in our
operations in each industry. Corporate assets are principally cash, investment
securities, furniture, and fixtures.

     We have adopted Financial Accounting Standard No. 131, which requires the
presentation of descriptive information about reportable segments which is
consistent with that made available to us in order to assess performance.

                                       16

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 9 -- SEGMENT INFORMATION (CONTINUED)

     Our oil and gas segment derives its revenues from the sale of oil and gas.
Our mining segment receives its revenues primarily from the sale of minerals and
precious metals and from time to time from the sale of a mineral venture that it
has originated. Corporate income is primarily derived from interest income on
our funds held in money market accounts and the sale of securities. Our pipeline
segment derives revenue from the sale of natural gas from our gas fields in
Leavenworth County, Kansas.

     During the three months ended December 31, 2001, we had no intersegment
revenues. The accounting policies applied by each segment are the same as those
we use in general.

     Net sales to one customer of our gas transmission pipeline segment totaled
$66,805 or approximately 84% of our revenues for the three months ended December
31, 2001.

     There have been no differences from our last annual report in the bases of
measuring segment profit or loss. There have been no material changes in the
amount of assets for any of our operating segments since the last annual report.

                                       17

<PAGE>
<TABLE>
<CAPTION>



                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 9 -- SEGMENT INFORMATION (CONTINUED)

For the Quarters Ending December 31, 2001 and 2000 Segment information consists
of the following:

                         Oil and Gas    Pipeline        Mining       Corporate     Consolidated
                         -----------   -----------    -----------   -----------    -----------
Revenues
<C>                      <C>           <C>            <C>           <C>            <C>
2001                     $    34,305   $    29,466    $      --     $     5,431    $    69,202
2000                          56,971       124,127           --           9,579        190,677

Income (Loss)
From Operations
2001                     $     8,465   $   (13,208)   $      --     $   (84,807)   $   (89,550)
2000                           2,304        88,559           --         (41,857)        49,006

Identifiable Assets
2001                     $   601,070   $   256,845    $    53,616   $   481,379    $ 1,392,910
2000                         685,583       258,203         92,718       425,439      1,461,943

Depreciation, Depletion
and Valuation Charged
to Identifiable Assets
2001                    $    12,450    $     4,410    $      --     $     1,590    $    18,450
2000                         14,675          8,798           --             120         23,593

Capital Expenditures
2001                    $    30,360    $      --      $      --     $      --      $    30,360
2000                          9,369           --             --            --            9,369


NOTE 10 -- OIL AND GAS ACTIVITIES

GALVAN RANCH PROPERTY, WEBB COUNTY, TEXAS

     We filed suit against RME Petroleum Company, f/k/a Union Pacific Resources
Company on or about February 13, 2001. We allege that RME relinquished the lease
to the Galvan Ranch without providing notice to us as was required in an
agreement and in an operating agreement between RME and us. The case presently
is in the discovery stage and no assurance can be given as to its ultimate
outcome.

     Due to a significant reduction in the gas prices for the Galvan Ranch
production on September 30, 2001 used in the oil and gas reserve estimates, we
recorded a $128,000 write down for the year ended September 30, 2001.

                                       18

</TABLE>

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (CONTINUED)

NOTE 10 -- OIL AND GAS ACTIVITIES (CONTINUED)

KANSAS GAS PROJECT -- LEAVENWORTH COUNTY, KANSAS

     During the quarter ended December 31, 2001, we recompleted four wells in
the Leavenworth gas project. Additional zones were perforated and stimulated in
the upper and lower McLouth formation. Overall results have not been evaluated
but should result in a modest increase in gas volumes and reserves. If the
results are positive, we plan to recomplete additional wells as the weather and
funding permits.

EAST VOSS OIL PROPERTY -- KNOX COUNTY, TEXAS

     We sold our working interest in the East Voss property as of July 1, 1999,
but retained a 7 1/2% royalty interest. While we have not been notified as to
the operator's plans for the property, we believe the property has considerable
potential and expect to receive future income from our royalty ownership.

                                       19

<PAGE>


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
              CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

     As of December 31, 2001, we had $502,559 in current assets and $74,530 in
current liabilities, resulting in a positive working capital of $428,029. This
compares to $599,347 and $66,241 in current assets and current liabilities at
September 30, 2001 for a working capital balance of $533,106. The working
capital decrease of $105,077, or 20%, was the result of a decrease in the value
of our securities of $3,619, the sale of securities with a cost of $76,447, zero
cash balance, and a reduction of $14,400 in prepaid expense. Current liabilities
increased $8,289, primarily due to an increase in payables of $7,700 and an
advance made to us of $5,000 by one of our officers to cover cash overdrafts at
December 31, 2001. These increases were offset by a reduction in insurance
proceeds applied to compressor rentals of $4,406.

     At the present time, our primary source of cash for operations and
exploration is our current working capital, cash which can be raised by selling
shares held for investment or our investment in U.S. government treasury
securities and other corporate bonds and funds derived from our oil and gas
operations. We have in the past, and plan to in the future, rely on joint
venture partners or equity funding to supply some of the funds needed to
evaluate and develop our properties. Any inability we may have to raise
additional capital through a stock offering, to liquidate its securities
holdings or obtain third-party funding may limit development of most of our
properties.

     Although we intend to use joint venture or equity funding to explore,
acquire and, if warranted, develop our properties, the natural resource business
is nevertheless very capital intensive. We continue to seek joint venture
financing for our properties and to acquire properties with near-term revenue
generating capability. Our efforts to evaluate, identify and/or acquire such
revenue-generating prospects and to further develop our existing properties have
been ongoing during this past year, and, while we are optimistic, there is no
assurance that we will be successful in securing the required capital.

RESULTS OF OPERATIONS

     Due to a major decrease in the sales price received for our gas, revenue
from our oil, gas and pipeline sales decreased significantly for the quarter
ended December 31, 2001. Oil and gas sales decreased 40% or $22,666, from
$56,971 to $34,305. Pipeline sales were $124,127 during the quarter ended
December 31, 2000 and $29,466 for the quarter ended December 31, 2001, a $94,661
or 76% decrease. Interest and Other of $3,010 remained constant while we
realized a $2,421 gain on maturing bonds. Oil and gas and pipeline operating
costs decreased by $15,800, or 23%, from the quarter ended December 31, 2000 to
December 31, 2001. This decrease was the result of a reduction in our ongoing
recompletion and workover program being conducted on our Leavenworth County,
Kansas properties.

                                       20

<PAGE>


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
              CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

RESULTS OF OPERATIONS (CONTINUED)

     General and administrative expenses totaled $88,648 for the quarter ended
December 31, 2001, compared to $50,621 for the three-month period ended December
31, 2000. The increase of over $38,000 in general and administrative costs was
primarily due to the ongoing expense of litigation relating to the Galvan Ranch
property located in Webb County, Texas as well as a one time expense for changes
in accounting staff and software upgrades.

                                       21

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                          PART II -- OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

         N/A

ITEM 2.  CHANGES IN SECURITIES

         N/A

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         N/A

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         N/A

ITEM 5.  OTHER INFORMATION

         N/A

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)      Reports on Form 8-K.  None.

                                       22

<PAGE>



                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                                   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.

                                            MONUMENT RESOURCES, INC.
                                            (Registrant)


Date:  February 8, 2002                     By:  /s/  A.G. Foust
                                               --------------------------------
                                                      A.G. Foust, President
                                                      (Chief Executive Officer,
                                                      Principal Financial and
                                                      Accounting Officer) and
                                                      a Director


                                       23