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, 1998.

[ ]  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 Identification No.)
incorporation or organization)

    513 Wilcox Street, Suite 200, P.O. Box 1450, Castle Rock, Colorado 80104
    ------------------------------------------------------------------------
          (Address of Principal Executive Offices, Including Zip Code)

                                 (303) 688-3993
                                 --------------
                (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:  4,919,000  shares of common  were
outstanding at February 12, 1999.


Traditional Small Business Disclosure Format (Check One):

                                  Yes  X    No 

<PAGE>


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                                      INDEX



PART I.            FINANCIAL INFORMATION                             Page Number

         Item 1.   Consolidated Balance sheets as of
                   December 31, 1998 and September 30, 1998              3

                   Consolidated Statements of Operations
                   for the Three Months ended                            5
                   December 31, 1998 and 1997

                   Consolidated Statements of Cash Flows
                   for the Three Months ended                            6
                   December 31, 1998 and 1997

                   Notes to Consolidated Financial Statements            7

         Item 2.   Management's Discussion and Analysis
                   of Financial Condition and Results of Operations      17

PART II            OTHER INFORMATION                                     19



                                       2
<PAGE>


Item 1. Financial Statements.



                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS


                                                      December 31, September 30,
                                                          1998         1998
                                                          ----         ----
                                                      (Unaudited)

Current assets
       Cash                                            $   20,481   $   46,387
       Investment in securities                           295,967      325,304
       Accounts receivable                                 32,044       21,137
       Prepaid expense                                      6,562       11,174
                                                       ----------   ----------

Total current assets                                      355,054      404,002
                                                       ----------   ----------

Mineral properties                                        127,837      127,837
Proved and unproved oil and gas
       properties, successful efforts method
       net of accumulated depletion                     1,060,235    1,069,993

Property and equipment:
       Gas pipeline, net of accumulated depreciation      229,920      237,164
       Property and equipment, net of
       accumulated depreciation                            56,497       59,129
                                                       ----------   ----------

Net property and equipment                                286,417      296,293

Investment in securities, at market                       210,900      192,576
                                                       ----------   ----------

Total assets                                           $2,040,443   $2,090,701
                                                       ==========   ==========





See Notes to Consolidated Financial Statements.


                                       3

<PAGE>


Item 1. Financial Statements. (Continued)


                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                      LIABILITIES AND STOCKHOLDERS' EQUITY


                                                    December 31,   September 30,
                                                        1998           1998
                                                        ----           ----
                                                    (Unaudited)

Current liabilities
       Accounts payable and accrued expenses        $    40,673     $    17,935
                                                    -----------     -----------

Total current liabilities                                40,673          17,935
                                                    -----------     -----------

Stockholders' equity:
Preferred Stock, no par value, authorized
       1,000,000 shares; none issued
Common Stock, no par value, authorized
       1,000,000 shares; 5,199,000 issued
       and outstanding on September 30, 1998
       and 4,699,000 shares outstanding on
       December 31, 1998                              3,142,210       3,197,210
Accumulated deficit                                  (1,374,492)     (1,343,547)
Unrealized gain on investment in securities             232,052         219,103
                                                    -----------     -----------

Total stockholders' equity                            1,999,770       2,072,766
                                                    -----------     -----------

Total liability and stockholders' equity            $ 2,040,443     $ 2,090,701
                                                    ===========     ===========






See Notes to Consolidated Financial Statements.


                                       4
<PAGE>


Item 1. Financial Statements. (Continued)


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



                                                     Three Months   Three Months
                                                        Ended           Ended 
                                                     December 31,   December 31,
                                                         1998           1997
                                                         ----           ----

Revenue
       Oil and gas sales                             $    36,514    $    54,790
       Pipeline income                                    18,478         58,064
       Interest and other                                  7,185          7,173
       Gain on sale of investment stock                   23,926          - - -
                                                     -----------    -----------

                  Total                                   86,103        120,027
                                                     -----------    -----------

Expenses
       Oil and gas operating expense                      15,189         31,980
       Pipeline operating expense                         28,714         22,375
       General and administrative                         51,549         50,015
       Depletion, depreciation and amortization           21,596         19,000
                                                     -----------    -----------

                  Total                                  117,048        123,370
                                                     -----------    -----------
Net profit (loss)                                    $   (30,945)   $    (3,343)
                                                     ===========    ===========
Basic loss per common share                                 (.01)         - - -
                                                     ===========    ===========
Diluted loss per common share                               (.01)         - - -
                                                     ===========    ===========
Weighted average number of shares outstanding          5,084,869      5,518,565
                                                     ===========    ===========






See Notes to Consolidated Financial Statements.

                                       5


<PAGE>


Item 1. Financial Statements. (Continued)


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



                                                          Three Months Ended 
                                                              December 31,
                                                           1998         1997
                                                           ----         ----

Cash flows from operating activities:
Net loss                                                $ (30,945)   $  (3,343)
Items not affecting cash:
       Depreciation, Depletion and Amortization            21,595       19,000
       Gain on sale of securities                         (23,926)        --
Changes in operating assets and liabilities:
       Decrease in prepaid expense                          4,612        4,601
       Increase in accounts receivable                    (10,907)     (16,343)
       Increase in accounts payable and accrued expenses   22,738        5,047
                                                        ---------    ---------

Net cash flow from operations                             (16,833)       8,962
                                                        ---------    ---------

Cash flows from investing activities:

Proceeds from sale of investment securities                24,727         --

Additions to oil and gas properties                        (1,961)      (5,544)

Additions to mineral properties                              --         (3,000)

Proceeds from bond investment                              23,161      140,078
                                                        ---------    ---------


Net cash flows from investing activities:                  45,927      131,534
                                                        ---------    ---------

Cash flows from financing activities:

Repurchase of common stock                                (55,000)    (110,000)
                                                        ---------    ---------

Net cash flows from financing activities                  (55,000)    (110,000)
                                                        ---------    ---------

Net increase (decrease) in cash                           (25,906)      30,496

Cash at beginning of period                                46,387       43,094
                                                        ---------    ---------

Cash at end of period                                   $  20,481    $  73,590
                                                        =========    =========


                                       6
<PAGE>


Item 1.  Financial Statements. (Continued)

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


NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

THE COMPANY

Monument  Resources,  Inc. and Subsidiaries  (the "Company") was organized under
the laws of the State of  Colorado  on October 1,  1984.  The  Company is in the
business of  acquiring  and  brokering  mineral and oil and gas  properties  and
exploring,  developing,  and selling production from its oil and gas properties.
The Company's mineral  properties are in Montana,  British Columbia,  Canada and
Sweden.  The Company's  oil and gas  properties  are in Webb and Knox  counties,
Texas, Leavenworth County, Kansas and Kimball County, Nebraska. The Company also
operates a gas pipeline in conjunction with its Leavenworth gas wells.

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

CONSOLIDATION

The accompanying  consolidated  financial statements include the accounts of the
Company  and its wholly  owned  Canadian  subsidiary,  formed for the purpose of
owning  real  property  in  British  Columbia,   and  its  wholly  owned  Kansas
subsidiary,  COG  Transmission  Corporation,  acquired in 1996. All intercompany
transactions and balances have been eliminated in consolidation.

STATEMENT OF CASH FLOWS

For  statement  of  cash  flow  purposes,   the  Company  considers   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.

MANAGEMENT'S USE OF ESTIMATES

The preparation of financial  statements in conformity  with generally  accepted
accounting   principles  requires  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.

The  mining  and oil  and gas  industries  are  subject,  by  their  nature,  to
environmental hazards and cleanup costs for which the Company carries insurance.
At this  time,  management  knows of no  substantial  costs  from  environmental
accidents  or events for which it may be  currently  liable.  In  addition,  the
Company's oil and gas business makes it 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 and  estimated  reserves.  Price  declines
reduce  the  estimated   quantity  of  proved   reserves  and  increase   annual
amortization expense (which is based on proved reserves).


                                       7
<PAGE>


Item 1.  Financial Statements. (Continued)

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


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

IMPAIRMENT OF LONG-LIVED ASSETS

The Company  evaluates 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," effective  1995.  Under SFAS No. 121,
the Company  periodically  evaluates 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. The Company considers
projected future operating results,  cash flows,  trends and other circumstances
in making such  estimates  and  evaluations  and reduces the  carrying  value of
impaired assets to fair value.

EARNINGS PER SHARE

In February  1997, the Financial  Accounting  Standards  Board issued  Financial
Accounting  Standard No. 128 ("SFAS No.  128"),  addressing  earnings per share.
SFAS No. 128 changed  the  methodology  of  calculating  earnings  per share and
renamed the two  calculations  basic earnings per share and diluted earnings per
share. The calculations differ by eliminating any common stock equivalents (such
as stock options, warrants, and convertible preferred stock) from basic earnings
per share and changes certain  calculations  when computing diluted earnings per
share.  The Company has adopted  SFAS No. 128 in fiscal year 1998.  Earnings per
share during the first  quarter  ended  December  31, 1997,  is unchanged by the
retroactive application of SFAS No. 128.

The following is a reconciliation of the numerators and denominators used in the
calculations  of basic and diluted  earnings  (loss) per share for the  quarters
ended December 31, 1998, and 1997:

<TABLE>
<CAPTION>

                                            1998                               1997
                              --------------------------------     ---------------------------
                                                         Per                             Per
                                  Net                   Share        Net                Share
                                (Loss)       Shares     Amount     (Loss)      Shares   Amount
                                ------       ------     ------     ------      ------   ------
<S>                           <C>          <C>         <C>       <C>          <C>           
Basic Earnings per share:
   Net income (loss)
   and share amounts          $ (30,945)   5,084,869   $  (.01)  $  (3,343)   5,518,565   --

   Dilutive securities:
      stock warrants               --           --      --            --           --     --

   Repurchased shares              --           --      --            --           --     --
                              ---------    ---------   -------   ---------    ---------   ---
Diluted earnings per share:
   Net (loss) and assumed
   share conversion           $ (30,945)   5,084,869   $  (.01)  $  (3,343)   5,518,565   --
                              =========    =========   =======   =========    =========   ===

</TABLE>

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.


                                       8
<PAGE>


Item 1.  Financial Statements. (Continued)

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


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

OIL AND GAS PROPERTIES

The Company follows 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.

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. The 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 operations in the period realized.

INCOME TAXES

Deferred taxes are provided on the liability  method whereby deferred tax assets
are  recognized  for  deductible   temporary   differences  and  operating  loss
carryforwards  and deferred tax liabilities are recognized for taxable temporary
differences.  Temporary  differences  are the  differences  between the reported
amounts of assets and liabilities  and their tax bases.  Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management,  it is more
likely than not that some  portion or all of the deferred tax assets will not be
realized.  Deferred tax assets and  liabilities  are adjusted for the effects of
changes in tax laws and rates on the date of enactment.

INVESTMENTS IN SECURITIES

The company follows Statement of Financial  Accounting  Standards  ("SFAS") 115,
"Accounting  for  Certain   Investments  in  Debt  and  Equity  Securities,"  in
accounting for its security  investments.  In accordance  with SFAS No. 115, the
Company's  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 on the balance  sheet with an equal  amount  representing
unrealized  gains recorded as a component of stockholders'  equity.  The current
market value is derived from published  newspaper  quotations as of December 31,
1998,  and September 30, 1998. At the time of sale, a gain or loss is recognized
in the  statement  of  operations  using the cost  basis of  securities  sold as
determined by specific identification.

FINANCIAL INSTRUMENTS

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

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

                                       9
<PAGE>

Item 1.  Financial Statements. (Continued)

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


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

The Company  maintains  cash with various  financial  institutions.  The Company
periodically evaluates the financial services of these institutions and believes
the credit risk to be minimal.

The Company has recorded trade accounts receivable from the business operations.
The Company  periodically  evaluates the collectibility of trade receivables and
believes  the  receivables  to be fully  collectible  and the credit  risk to be
minimal.

The Company's  investment in U.S. Government  securities are subject to moderate
price  volatility  due to interest rate changes;  however,  realization of these
investments  has minimal risk.  The Company's  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 the  Company's  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.

STOCK-BASED COMPENSATION

Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation"  ("SFAS No.  123"),  was issued in October,  1995 by the Financial
Accounting  Standards  Board.  SFAS No. 123  provides an  alternative  method of
accounting for stock-based compensation arrangements, based on fair value of the
stock-based  compensation utilizing various assumptions regarding the underlying
attributes  of the  options  and  stock,  rather  than the  existing  method  of
accounting  for  stock-based   compensation  which  is  provided  in  Accounting
Principles  Board  Opinion No. 25,  "Accounting  for Stock Issued to  Employees"
("APB No. 25"). The Financial  Accounting Standards Board encourages entities to
adopt the fair-value  based method but does not require adoption of this method.
The Company will continue its current accounting policy under APB No. 25 but has
adopted  the  disclosure-only  provisions  of SFAS No. 123 for any  options  and
warrants issued to employees, directors or consultants.

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.

Financial  statement   accounts,   which  potentially  subject  the  Company  to
concentrations  of credit risk,  consist  primarily of cash and  investments  in
securities. The Company attempts to deposit its cash with high quality financial
institutions  in amounts  less than the federal  insurance  limit of $100,000 in
order to limit credit risk.  The Company's  investment in bonds is considered to
have  minimum  credit  risk  since  they are U.S.  government  instruments.  The
Company's  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.


                                       10
<PAGE>


Item 1.  Financial Statements. (Continued)

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


NOTE 2 - ESTIMATES AND RISKS (CONTINUED)

The  mining  and oil  and gas  industries  are  subject,  by  their  nature,  to
environmental   hazards  and  cleanup  costs  for  which  the  Company   carries
catastrophe  insurance.  At this time,  management knows of no substantial costs
from environmental  accidents or events for which it may be currently liable. In
addition,  the Company's oil and gas business  makes it 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

The Company has  recorded its  investment  in 75,000  shares of Southern  Africa
Minerals  Corporation  ("SAMC")  (Toronto  Exchange),  a Canadian  company,  and
1,900,000 shares of Layfield Resources,  Inc. ("Layfield") (Vancouver Exchange),
a Canadian  company,  at fair value in  accordance  with  Statement of Financial
Accounting  Standards No. 115,  "Accounting for Certain  Investments in Debt and
Equity Securities" ("SFAS 115"). During the quarter ended December 31, 1998, the
Company  sold 50,000  shares of Layfield and 25,000  shares of Southern  Africa,
recognizing  a  gain  of  $23,926.  Based  on  the  demonstrated  liquidity  and
marketability  of the Layfield and SAMC shares,  and in the accordance with SFAS
115, the Company has recorded its  investments  in the stocks based on published
market  listings  and  on the  closing  bid  price  on  the  stocks'  respective
exchanges.  These shares are classified by the Company as available for sale and
non-current,  since such sale may not  necessarily  be  consummated  in the near
term.

The Company's  investment in debt securities consists of various U.S. government
financial  instruments.  The  Company  considers  these  bonds  to be  currently
available  for sale and has no timetable for sale or  redemption.  Nevertheless,
the Company does not expect to hold the bonds to maturity.

Investments in securities are summarized as follows at December 31, 1998:

                                                         Unrealized      Fair
                                                            Gain         Value
                                                            ----         -----

Available-for-sale securities:
   Common stock                                           $178,766      $210,900
   Debt securities (maturing in 1 to 21 years)              53,286       295,967
                                                          --------      --------

                                                          $232,052      $506,867
                                                          ========      ========

Investments in securities are summarized as follows at September 30, 1998:

                                                          Unrealized     Fair
                                                             Gain        Value
                                                             ----        -----

Available-for-sale securities:
   Common stock                                            $189,372     $192,576
   Debt securities (maturing in 1 to 3 years)                29,731      325,304
                                                           --------     --------

                                                           $219,103     $517,880
                                                           ========     ========

                                       11
<PAGE>


Item 1.  Financial Statements. (Continued)

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


NOTE 4 - MINERAL PROPERTIES

DOBLER PROSPECT, BROADWATER COUNTY, MONTANA

The Dobler prospect, with capitalized costs of $59,520 at December 31, 1998, and
September 30, 1998, consists of 80 acres of fee simple land (including minerals)
and mineral rights to the 280 surrounding acres.

The Company is  continually  trying to locate  joint  venture  opportunities  to
further   explore  the  property  and  has  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 homesite approximates the Company's capitalized costs in the prospect.

WISCONSIN MINE PROPERTY, BRITISH COLUMBIA, CANADA

The  Company's  Wisconsin  Mine  Property  consists of two patented  gold mining
claims covering  approximately 64 acres, plus ten surrounding  unpatented mining
claims.  An alternative use for the property is the harvesting of timber or sale
as real estate.  The fair value of the property  approximates,  at minimum,  the
capitalized cost of $33,197 at December 31, 1998, and September 30, 1998.

SKANE ZINC PROSPECT, SWEDEN

The Skane Zinc  Prospect,  with  capitalized  costs of $35,120,  at December 31,
1998, consists of approximately 19,700 acres of exploration licenses in southern
Sweden.  The properties are prospective for shallow zinc,  lead,  minor precious
metals,  and  possible  fluorite  and barite  deposits.  The company  owns a 70%
working  interest in the project  which is operated by Geoforum  Scandinavia  AB
which owns the remaining 30% working interest.  The company is currently seeking
an industry partner to fund the exploration and development of the project.

ALL MINERAL PROPERTIES

Total mineral costs for all properties  capitalized were $127,837 as of December
31, 1998, and September 30, 1998.



                                       12
<PAGE>


Item 1.  Financial Statements. (Continued)

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


NOTE 5-PROPERTY AND EQUIPMENT

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

                                                    December 31,   September 30,
                                                        1998            1998
                                                        ----            ----
                                                    (Unaudited)

Land                                                 $  12,500        $  12,500
Machinery and equipment                                 77,885           77,885
                                                     ---------        ---------
   Total                                                90,385           90,385

Less:  Accumulated depreciation                        (33,888)         (31,256)
                                                     ---------        ---------
   Net property and equipment                           56,497           59,129
                                                     ---------        ---------
Pipeline                                               300,000          300,000

Less:  Accumulated depreciation                        (70,080)         (62,836)
                                                     ---------        ---------
   Net pipeline                                        229,920          237,164
                                                     ---------        ---------
   Net property and equipment                        $ 286,417        $ 296,293
                                                     =========        =========


Depreciation  expense  charged to  operations  was $9,876 for the first  quarter
ended  December 31, 1998,  and $42,264 for the fiscal year ended  September  30,
1998.

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


NOTE 6 - STOCKHOLDERS' EQUITY

The  Company's  amended  Articles of  Incorporation  authorize  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  designation,  rights,  preferences  and
limitations  as the  Board of  Directors  may  determine  by  resolution.  As of
December 31, 1998, no shares of preferred stock have been issued.

On December 10, 1998, the Company  repurchased  500,000 shares of its restricted
stock for cash of $55,000 ($.11 per share) from Powerhouse Resources, Inc.

NOTE 7 - STOCK OPTION PLANS

During 1986, the Company adopted an Employees'  Incentive Stock Option Plan (the
"Employees'  Plan").  The exercise  price of the shares covered by stock options
granted  pursuant  to the  Employees'  Plan must be, at a  minimum,  100% of the
quoted  market value of the stock at the time the option is granted.  No options
are outstanding under this Plan.


                                       13
<PAGE>


Item 1.  Financial Statements. (Continued)

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


NOTE 7 - STOCK OPTION PLANS (CONTINUED)

During 1986, the Company adopted a Directors' Stock Option Plan (the "Directors'
Plan")  for the  benefit  of the  non-employee  directors  of the  Company.  The
exercise  price  of the  shares  covered  by  options  granted  pursuant  to the
Directors' Plan must be $.80 per share.  With respect to each individual  option
granted  under the  Directors'  Plan,  the  Board of  Directors  will  determine
separately the number of shares,  the option period,  and the limitations  which
will apply to the  exercise of options.  No options  are  outstanding  under the
Directors' Plan.

In January  1993,  the Company  granted  stock  options  (exclusive of the above
plans) to the  officers  in lieu of  compensation.  The  options are for 540,000
shares and are exercisable  for the five years  beginning  January 14, 1993 at a
price of $.10 per  share,  which  price was in  excess  of  market  value of the
Company's  shares  at the date of  grant.  In May  1995,  the  Company's  former
President,  Stewart Jackson,  exercised all of his options for 320,000 shares of
the Company's  common stock at $.10 per share. On December 8, 1997, the board of
directors  extended the options  granted on 220,000  shares to January 13, 1999,
exercisable  at $.10 per share.  Options for 220,000  shares are  outstanding at
September 30, 1998. Of these outstanding options, options for 160,000 shares are
held by the Company's  president,  A.G. Foust, and options for 60,000 shares are
held by Dru E.  Campbell,  assistant  secretary of the  Company.  On January 13,
1999, the Company president and assistant  secretary exercised their options for
the 220,000 shares of common stock at $.10 per share.

The following  schedule  summarizes  information with respect to options granted
under the Company's equity plans:

                                                               Weighted Average
                                                 Number of     Exercise Price of
                                                  Shares      Shares Under Plans
                                                  ------      ------------------
Outstanding September 30, 1998                   220,000          $   .10
Granted                                             --               --
Exercised                                           --               --
Forfeited or expensed                               --               --
                                                --------          -------
Outstanding December 31, 1998                    220,000          $   .10
Granted                                             --               --
Exercised                                       (220,000)         $   .10
                                                
Forfeited or expensed                           --------          -------
Outstanding February 12, 1999                        -0-              -0-
                                                ========          =======

NOTE 8 - SEGMENT INFORMATION

The Company  operates 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 the  Company's
operations in each industry.  Corporate assets are principally cash,  investment
securities, furniture, and fixtures.

During the third  quarter of 1998,  the Company  adopted  Statement of Financial
Accounting  Standards No. 131,  "Disclosures about Segments of an Enterprise and
Related  Information"  (SFAS  131).  The  adoption  of  SFAS  131  requires  the
presentation  of  descriptive  information  about  reportable  segments which is
consistent  with that made  available to the management of the Company to assess
performance.

The oil and gas segment  derives its revenues  from the sale of oil and gas. The
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
funds held in money  market  accounts and the sale of  securities.  The pipeline
segment  derives  revenue  from the sale of natural gas from the  Company's  gas
field in Leavenworth, Kansas.

During the three months ended  December  31,  1998,  there were no  intersegment
revenues.  The accounting policies applied by each segment are the same as those
used by the Company in general.

                                       14
<PAGE>


Item 1.  Financial Statements. (Continued)

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


NOTE 8 - SEGMENT INFORMATION (CONTINUED)

Net sales to one  customer  of the gas  transmission  pipeline  segment  totaled
approximately 81% of revenues for the three months ended December 31, 1998.

There  have  been no  differences  from the 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  operating  segment since the last annual report except
for the corporate segment which sold approximately  $24,000 of securities during
the period.

 Segment information consists of the following:

                                                      December 31, September 30,
                                                         1998          1998
                                                         ----          ----

Revenues:
   Oil and gas                                         $  36,514    $ 167,923
   Gas pipeline                                           18,478      112,770
   General corporate                                      31,111       99,596
                                                       ---------    ---------

               Total revenue                           $  86,103    $ 380,289
                                                       =========    =========

Results of operations
   Oil and gas                                          $  9,604    $(583,069)
   Gas pipeline                                          (17,480)     (11,169)
   Mineral exploration                                      --           --
   General corporate operations                          (23,069)     (62,769)
                                                       ---------    ---------

               Net income (loss)                       $ (30,945    $(657,007)
                                                       =========    =========

 Depreciation, depletion, amortization and valuation
 charged to identifiable assets:
    Oil and gas depletion                              $  14,328    $  57,312
    Oil and gas impairment                                  --        561,448
    Gas pipeline                                           7,244       32,238
    General corporate                                         24           95
                                                       ---------    ---------

              Total                                    $  21,596    $ 651,093
                                                       =========    =========


                                       15
<PAGE>


Item 1.  Financial Statements. (Continued)

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


NOTE 8 - SEGMENT INFORMATION (CONTINUED)

                                                      December 31, September 30,
                                                         1998          1998
                                                         ----          ----
                                                      (Unaudited)
                                                      -----------
Capitalized cash expeditures:
   Oil and gas                                        $    1,961          34,383
                                                      ==========      ==========
   Gas pipeline                                       $     --        $    3,648
                                                      ==========      ==========
   Mineral                                            $     --        $   25,120
                                                      ==========      ==========
   Corporate                                          $     --        $     --
                                                      ==========      ==========

Identifiable assets, net of accumulated
depreciation, depletion, impairment and
amortization:
   Oil and gas                                        $1,103,589      $1,119,584
   Gas pipeline                                          273,418         266,125
   Mineral exploration                                   127,837         127,837
   General corporate operations                          535,599         577,155
                                                      ----------      ----------

         Total                                        $2,040,443      $2,090,701
                                                      ==========      ==========


NOTE 9 - OIL AND GAS ACTIVITIES

During the quarter ended December 31, 1998, the Company  reevaluated  the status
of its  oil and  gas  properties.  Due to the  depressed  oil  and  gas  prices,
management decided to put the majority of its oil and gas projects on hold until
a more realistic price for its oil and gas products can be assured.  The Company
did,  however,  continue to work over and upgrade its Leavenworth,  Kansas,  gas
project to maintain the project at a reasonable level of gas sales.

The Company  will  continue to evaluate new  prospects  and projects as they may
become  available for  acquisition.  If any of these projects meet  management's
criteria for  acquisition  (considering  the current and  projected  oil and gas
prices),  the Company's board will attempt to add such properties to the current
inventory.  The Company's  ability to be successful in future  acquisitions will
depend on a number of  facts,  the  primary  one being the  Company's  financial
capability.

The  Company's  primary  activity  for  new  projects  is  directed  toward  its
Leavenworth  gas  storage  program.  The  Company  is  working  with a number of
potential industry partners to engineer and fund this project.



                                       16

<PAGE>


Item 2.  Financial Statements.

                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


LIQUIDITY AND CAPITAL RESOURCES

As of December 31, 1998, the Company had a total of $20,481 in cash and $314,381
in working  capital  compared to $73,590 in cash and working capital of $389,802
at  December  31,  1997.  This  represents  a decrease  of $53,109 in cash and a
$75,421  decrease in working  capital.  The decrease in cash and working capital
during the three months ended December 31, 1998, were the result of additions to
oil and gas properties of approximately $2,000, the repurchase of Company common
stock for the treasury of $55,000, an increase in accounts receivable of $10,900
and net proceeds  received  from the sale of investment  stock of  approximately
$24,000.

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

Although the Company  intends to use joint venture or equity funding to explore,
acquire and, if warranted, develop its properties, the natural resource business
is nevertheless very capital intensive.

The Company  continues to seek joint venture financing for its properties and to
acquire  properties with near-term revenue generating  capability.  Management's
efforts to evaluate,  identify and/or acquire such revenue-generating  prospects
and to further  develop its existing  properties  have been ongoing  during this
past year, and, while  management is optimistic,  there is no assurance that the
Company will be successful in securing the required capital.

RESULTS OF OPERATIONS

Revenues  from oil,  gas, and pipeline  sales  decreased  significantly  for the
quarter ended December 31, 1998, from $112,854 to $54,992,  a 49% decrease.  The
decrease was due to the continued erosion of prices the Company receives for its
oil and gas. Interest income remained constant during the quarter.  Oil, gas and
pipeline expense decreased from $54,355 for the quarter ended December 31, 1997,
to $43,903 as compared to the quarter  ended  December  31, 1998, a 19% decrease
due to reduced workover expenses on the Kansas properties.

General and administrative  expenses totaled $51,549 compared to $50,015 for the
three-month  period ended  December 31, 1997.  The fairly  constant  general and
administrative  costs  when  comparing  the two  periods  reflects  management's
continuing efforts to contain costs wherever possible.


                                       17

<PAGE>


Item 2.  Financial Statements.

                    MONUMENT RESOURCES, INC. AND SUBSIDIARIES
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS


YEAR 2000

The following Year 2000 statements  constitute a Year 2000 Readiness  Disclosure
with the meaning of the Year 2000  Information  and Readiness  Disclosure Act of
1998.

Year 2000 issues  result from the inability of certain  electronic  hardware and
software to accurately calculate, store or use a date subsequent to December 31,
1999. These dates can be erroneously  interpreted in a number of ways, e.g., the
year 2000 could be interpreted as the year 1900.  This inability could result in
a  system  failure  or  miscalculations  that  could in turn  cause  operational
disruptions.  These issues could affect not only information  technology  ("IT")
systems,  such as computer  systems used for accounting,  land,  engineering and
seismic processing, but also systems that contain embedded chips.

The Company has completed an  assessment of its IT systems to determine  whether
these systems are Year 2000  compliant.  The Company has  determined  that these
systems are either compliant or with relatively minor  modifications or upgrades
(many  of which  would  have  been  made in any  event as part of the  Company's
continuing  effort to enhance its IT systems) will be  compliant.  All necessary
modifications  and upgrades and the testing thereof are expected to be completed
by the end of the second quarter of 1999.

The Company is assessing its non-information  systems to ascertain whether these
systems  contain  embedded  computer  chips  that  will  not  properly  function
subsequent to December 31, 1999.  These systems include office equipment and the
automatic  wellhead  equipment used to operate wells.  All of these systems have
been determined to be Year 2000 compliant.

To date the Company has relied upon its  internal  staff to access its Year 2000
readiness.  The costs associated with assessing the Company's Year 2000 internal
compliance  and  related  systems  modification,  upgrading  and testing are not
currently expected to be material.

The Company is in the process of  communicating  with certain of its significant
suppliers, service companies, gas gatherers and pipelines, electricity providers
and  financial  institutions  to determine the  vulnerability  of the Company to
third parties' failure to address their Year 2000 issues.  While the Company has
not yet received definitive responses indicating all such entities are Year 2000
compliant,  it has not received information suggesting the Company is vulnerable
to potential  year 2000  failures by these  parties.  These  communications  are
expected to continue  into the second  quarter of 1999. At this time the Company
has not developed any  contingency  plans to address third party  non-compliance
with  Year 2000  matters.  However,  should  its  communications  with any third
parties  indicate  any  vulnerability,  appropriate  contingency  plans  will be
developed.

The Company does not  anticipate any  significant  disruptions of its operations
due to Year 2000 issues.  Among the potential  "worst case" problems the Company
could  face  would  be the loss of  electricity  used to power  well  pumps  and
compressors  that would  result in wells being  shut-in,  or the  inability of a
third party gas  gathering  company or pipeline to accept gas from the Company's
wells or gathering  lines which would also result in the  Company's  wells being
shut-in. A disruption in production would result in the loss of income.


                                       18
<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)  Exhibit   27   -   Financial   Data   Schedule   filed   herewith
               electronically.

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



                                       19

<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 12, 1999                     by: /s/ A.G. Foust
       -----------------                     -----------------------------------
                                             A.G. Foust
                                             President (Chief Executive Officer,
                                             Principal Financial and Accounting
                                             Officer) and a Director



                                       20