SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For Quarter Ending   March 31, 2001                      Commission File #0-5704
                   --------------------                                  -------



                       MAYNARD OIL COMPANY
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)



      Delaware                                      75-1362284
--------------------------------------------------------------------------------
(State or other jurisdic-                        (IRS Employer
tion of incorporation)                        Identification No.)


8080 N. Central, Ste. 660 N. Central Expressway, Suite 660, Dallas, Texas 75206
--------------------------------------------------------------------------------



Registrant's telephone number, including area code:                (214)891-8880
                                                                   -------------


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the  preceding  12 months,  and (2) has been  subject to such filing
requirements for the past 90 days.

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


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of May 10, 2001.


                4,880,398 shares of common stock, par value $0.10
--------------------------------------------------------------------------------





<PAGE>








                       MAYNARD OIL COMPANY AND SUBSIDIARY

            Index to Consolidated Financial Statements and Schedules


                                                                            Page
                                                                            ----

Part I.  Financial Information

         Consolidated Balance Sheets
                  March 31, 2001 and December 31, 2000                        3

         Consolidated Statements of Operations
                  Three Months ended March 31, 2001 and 2000                  4

         Consolidated Statement of Shareholders' Equity
                  Three Months ended March 31, 2001                           5

         Consolidated Statements of Cash Flows
                  Three Months ended March 31, 2001 and 2000                  6

         Notes to Consolidated Financial Statements                           7

         Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                         9

Part II.          Other Information

         Item 6.  Exhibits and Reports on Form 8-K                            14

Signatures                                                                    15


                                        2

<PAGE>




                       MAYNARD OIL COMPANY AND SUBSIDIARY
                           Consolidated Balance Sheets
                                   (Unaudited)

                                                  March 31,       December 31,
                                                  ---------       ------------
                                                   2001               2000
                                                   ----               ----
ASSETS
Current assets:
   Cash and cash equivalents                   $  16,850,810      $  21,228,040
   Accounts receivable, trade                      8,542,116          8,773,669
   Income taxes receivable                         1,437,587          1,437,587
   Other current assets                              412,904            441,027
                                               -------------      -------------
           Total current assets                   27,243,417         31,880,323
                                               -------------      -------------

Property and equipment, at cost:
   Oil and gas properties, successful
     efforts method                              174,726,308        162,572,339
   Other property and equipment                      495,414            450,885
                                               -------------      -------------
                                                 175,221,722        163,023,224
   Less accumulated depreciation and
     amortization                                (90,162,264)       (87,045,360)
                                               -------------      -------------
        Net property and equipment                85,059,458         75,977,864
                                               -------------      -------------

                                               $ 112,302,875      $ 107,858,187
                                               =============      =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Current installments of long-term debt      $   7,650,000      $   7,650,000
   Accounts payable                                5,483,815          8,350,643
   Accrued expenses                                1,792,771            927,828
   Income taxes payable                            2,647,799            800,799
                                               -------------      -------------
           Total current liabilities              17,574,385         17,729,270
                                               -------------      -------------

Deferred income taxes                              2,020,000          1,179,000

Long-term debt                                    22,950,000         24,862,500

Shareholders' equity:
   Preferred stock of $.50 par value
     Authorized 1,000,000 shares; none
          issued                                       --                 --
   Common stock of $.10 par value
     Authorized 20,000,000 shares;
     4,880,398 and 4,880,516 shares
     issued and outstanding                          488,039            488,051
   Additional paid-in capital                     18,831,138         18,831,138
   Retained earnings                              50,439,313         44,768,228
   Accumulated other comprehensive income               --                 --
                                               -------------      -------------
           Total shareholders' equity             69,758,490         64,087,417
                                               -------------      -------------

Contingencies and Commitments
                                               $ 112,302,875      $ 107,858,187
                                               =============      =============

See accompanying Notes to Consolidated Financial Statements.






                                        3

<PAGE>




<TABLE>

                       MAYNARD OIL COMPANY AND SUBSIDIARY
                      Consolidated Statements of Operations
                                   (Unaudited)
<CAPTION>

                                                           Three Months ended March 31,
                                                           ----------------------------
                                                           2001                  2000
                                                           ----                  ----
<S>                                                      <C>                 <C>
Revenues:
     Oil and gas sales and royalties                     17,259,059          $10,792,820
     Interest and other                                     247,151              227,326
     Gain on disposition of assets                           13,901                --
                                                         ----------           ----------
                                                         17,520,111           11,020,146
                                                         ----------           ----------

Costs and expenses:
   Operating expenses                                     4,449,893            3,089,664
     Exploration, dry holes
       and abandonments                                       8,956                7,841
     General and administrative                             770,980            1,115,421
     Depreciation and amortization                        3,116,905            2,355,805
     Interest and other                                     603,107              750,551
                                                         ----------           ----------
                                                          8,949,841            7,319,282
                                                         ----------           ----------

         Income before income taxes                       8,570,270            3,700,864
                                                         ----------           ----------

Income tax expense                                        2,897,057            1,225,000
                                                         ----------           ----------

         Net income                                      $5,673,213           $2,475,864
                                                         ==========           ==========

Weighted average number of common shares
   outstanding                                            4,880,463            4,880,879
                                                         ==========           ==========

Net income per common share                                   $1.16                $ .51
                                                               ====                 ====
 (basic and diluted)


See accompanying Notes to Consolidated Financial Statements

</TABLE>

                                        4

<PAGE>


<TABLE>

                                                         MAYNARD OIL COMPANY
                                             Statement of Changes in Shareholders Equity
                                                     Period Ended March 31, 2001
<CAPTION>

                                                                                  Accumulated
                                                                                     Other         Additional               Common
                                                   Comprehensive     Retained    Comprehensive      Paid-in       Common    Stock
                                         Total        Income         Earnings       Income          Capital       Stock     Shares
                                         -----        ------         --------       ------          -------       -----     ------

<S>                                  <C>            <C>           <C>               <C>          <C>            <C>       <C>
Balance at December 31, 2000         $64,087,417                  $44,768,228                    $18,831,138    $488,051  4,880,516

Comprehensive Income:
     Net income                        5,673,213    $5,673,213      5,673,213
     Cumulative effect of
       adopting SFAS 133                  86,757        86,757                      $86,757
     Reclassification adjustments
       for contract settlements          (86,757)      (86,757)                     (86,757)
                                                      ---------
Comprehensive Income                                $5,673,213
                                                     =========

Purchase and retirement
     of common stock                      (2,140)                      (2,128)                                       (12)      (118)
                                       ----------                   ---------       -------       ---------     -------    ---------

Balance at March 31, 2001            $69,758,490                  $50,439,313       $  --        $18,831,138    $488,039  4,880,398
                                      ==========                   ==========       =======       ==========     =======   =========



See accompanying Notes to Consolidated Financial Statements

</TABLE>

                                        5

<PAGE>


<TABLE>


                       MAYNARD OIL COMPANY AND SUBSIDIARY
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
<CAPTION>

                                                             Three Months Ended March 31,
                                                             ----------------------------
                                                             2001                 2000
                                                             ----                 ----

<S>                                                      <C>               <C>
Cash flows from operating activities:
     Net income                                          $  5,673,213      $  2,475,864
     Adjustments to reconcile net income to net
         cash provided by operating activities:

         Depreciation and amortization                      3,116,905         2,355,805
         Deferred income taxes                                841,000           225,000
         Dry holes and abandonments                              --               6,777
         Current year costs of dry holes and
           abandonments                                          --              (1,275)
         (Increase) decrease in current assets:
           Accounts receivable                                231,553          (305,121)
           Income taxes receivable                               --                --
           Other current assets                                28,123           (59,822)
         Increase (decrease) in current liabilities:
           Accounts payable                                (2,866,828)          706,216
           Accrued expenses                                   864,943         1,139,050
           Income taxes payable                             1,847,000           383,000
                                                         ------------      ------------

           Net cash provided by operating
             activities                                     9,735,909         6,925,494
                                                         ------------      ------------

Cash flows from investing activities:
     Additions to property and equipment                  (12,198,499)       (3,712,607)
                                                         ------------      ------------

           Net cash used by investing
             activities                                   (12,198,499)       (3,712,607)
                                                         ------------      ------------

Cash flows from financing activities:
     Principal payments on long-term debt                  (1,912,500)             --
     Purchase and retirement of common stock                   (2,140)             (351)
                                                         ------------      ------------

           Net cash used by financing
               activities                                  (1,914,640)             (351)
                                                         ------------      ------------

Net (decrease) increase in cash and cash
   equivalents                                             (4,377,230)        3,212,536

Cash and cash equivalents at beginning of year             21,228,040        12,910,321
                                                         ------------      ------------

Cash and cash equivalents at end of period               $ 16,850,810      $ 16,122,857
                                                         ============      ============


See accompanying Notes to Consolidated Financial Statements.

</TABLE>

                                        6

<PAGE>



                       MAYNARD OIL COMPANY AND SUBSIDIARY
                   Notes to Consolidated Financial Statements
                                 March 31, 2001

Note l Unaudited Financial Statements

         The  accompanying  consolidated  financial  statements  of Maynard  Oil
         Company (the "Company") have been prepared in accordance with generally
         accepted accounting  principals,  pursuant to the rules and regulations
         of the Securities and Exchange  Commission included in the instructions
         to  Form  10-Q  and  Article  10  of  Regulation   S-X.  The  financial
         information  included  herein  is  unaudited  but,  in the  opinion  of
         management,  contains  all  adjustments,  consisting  of all  recurring
         adjustments,  necessary  to  present  fairly  the  Company's  financial
         position as of March 31, 2001 and the  results of  operations  and cash
         flows for the three months ended March 31, 2001.  The December 31, 2000
         consolidated  balance  sheet data was derived  from  audited  financial
         statements,  but does not include all disclosures required by generally
         accepted accounting principles.

         The accounting policies followed by the Company are set forth in Note 1
         to the  Company's  financial  statements  in the 2000 Annual  Report to
         Shareholders.

Note 2

         The Company adopted Statement of Financial  Accounting Standard No. 133
         (SFAS  133),   "Accounting  for  Derivative   Instruments  and  Hedging
         Activities"  on  January  1,  2001 and  recorded  a  cumulative  effect
         adjustment of  approximately  $87,000 to earnings to recognize the fair
         market value of all derivative instruments as a result of adopting SFAS
         133.   During  the  first  quarter  of  2001,   net  hedging  gains  of
         approximately $87,000 were reclassified from other comprehensive income
         due to settlement of the contracts during the quarter.  As of March 31,
         2001, the Company had no outstanding derivative arrangements.

Note 3 Earnings Per Share

         Net income per common share is based on the weighted  average number of
         shares  outstanding  in each period,  which was 4,880,463 and 4,880,879
         shares at March 31, 2001 and 2000,  respectively.  As of March 31, 2001
         and 2000, the Company had no potentially  dilutive  common shares,  and
         therefore, basic and diluted earnings per common share were the same.

Note 4 Risk Management

         Effective  March  1,  2001,  the  Company  entered  into  a  derivative
         financial  instrument  whereby  2,000 barrels of daily  production  was
         hedged  with a ceiling  price of $28.18 per barrel and a floor price of
         $24.00  per  barrel.  This  hedging  arrangement  was due to  expire on
         February  28,  2002.  However,  the  Company  exercised  its ability to
         terminate the contract during March, 2001 via payment

                                       7
<PAGE>

         of $803,000,  which  reduced oil and gas revenues for the first quarter
         of 2001.

         During 2000, the Company entered into a derivative financial instrument
         whereby the  Company  hedged  1,000  barrels of daily  production  from
         September  1, 2000 through  February  28, 2001 with a ceiling  price of
         $36.50/bbl and a floor price of $24.00/bbl.  The contract  called for a
         monthly  settlement  such  that if the  average  WTI for the  month was
         greater than  $36.50/bbl,  Maynard would remit to the  counterparty the
         excess  multiplied  by the number of barrels  hedged  during the month.
         Conversely,  if the average WTI for the month was less than $24.00/bbl,
         the counterparty would pay Maynard for the difference multiplied by the
         number of barrels  hedged during the month.  If the average WTI for the
         month fell between  $24.00/bbl and $36.50/bbl,  no settlement  would be
         made. As a result of this arrangement, no monies were exchanged.

         A second  derivative  instrument was entered into effective  October 1,
         2000 through March 31, 2001 which mirrored the first except the ceiling
         and floor amounts were $37.20 and $25.00 per barrel, respectively. Over
         the life of this  contract,  average WTI fell between $25.00 per barrel
         and $37.20 per barrel, so no cash was exchanged.

Note 5 Income Taxes

         The provision for income taxes consists of the following  (thousands of
         dollars):
                                                       Three Months Ended
                                                             March 31
                                                             --------
                                                  2001                   2000
                                                  ----                   ----
         Federal:
         Current                                $2,056                    $1,000
         Deferred                                  841                       225
                                                 -----                     -----
                                                $2,897                    $1,225
                                                 =====                     =====

Note 6 Commitments and Contingencies

         The Company is the  defendant in certain  non-environmental  litigation
         arising from  operations in the normal course of business.  While it is
         not  feasible  to  determine  the outcome of these  actions,  it is the
         Company's  opinion that the ultimate outcome of the litigation will not
         have a material adverse effect on the financial  position or results of
         the operations of the Company.

         All of the Company's operations are generally subject to Federal, state
         and  local  environmental  regulations.  To the  best  of  management's
         knowledge,  the Company is in substantial compliance with such laws and
         regulations.

                                       8

<PAGE>

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

Quarter Ended March 31, 2001 Compared to Quarter Ended March 31, 2000
---------------------------------------------------------------------

         For the first  quarter of 2001,  the Company  earned $1.16 per share on
revenues of  $17,520,111  compared to $.51 per share during the first quarter of
2000 on revenues of $11,020,146. Current quarter results were favorably impacted
by  higher  revenues  from the sale of oil and gas,  which  are the  results  of
increased  product  pricing  and  additional  production  volumes  derived  from
producing property acquisitions.

Revenues
--------

         Oil and gas revenues rose $6,466,239 between the two quarterly periods,
or approximately 60%, due to both pricing increases and higher volumes resulting
from prior year's  property  acquisitions.  Average oil and gas prices were $.36
per barrel and $4.63 per  thousand  cubic feet of gas (mcf) higher than the same
quarter a year ago. Oil volumes increased  approximately 7% and gas volumes rose
almost 24% over this same period.

Costs and Expenses
------------------

         On a net equivalent barrel basis (NEB),  lease operating  expenses were
$1.77 per NEB higher than the first quarter of 2000  resulting from increases in
routine   operating   costs  which  usually  occur  during   periods  of  rising
product-prices,  additional expense workovers,  and higher severance taxes which
relate proportionally to increased oil and gas revenues.

         The general and administrative  expense category reflects a decrease of
$344,441,or   approximately   31%,   primarily   the  result  of  phantom  stock
adjustments.  During 2000,  the Company  amended this  employee  benefit plan to
permit   employees  the  opportunity  to  exercise




                                       9
<PAGE>

benefits under the plan.  Accordingly,  there are only 11,000 units  outstanding
under this plan  compared with 95,500 units a year ago. The value of these units
are adjusted (upward or downward) based upon the closing stock prices at the end
of each quarter.  Thus, the March, 2000 quarterly phantom stock adjustment was a
charge of  $525,250  while the  current  quarter's  adjustment  was a benefit of
$12,375.  Offsetting these reductions to the G&A category are increased costs to
manage the growth of the Company from $60.3  million in assets at September  31,
1999 (prior to the Questar  acquisition)to $112.3 million in assets at March 31,
2001.

         Per NEB,  the current  quarter's  depreciation  and  amortization  rate
increased  approximately 18% from $4.74 per NEB during the first quarter of 2000
to $5.59 per NEB during 2001. Under the successful efforts method of accounting,
costs of oil and gas  properties  are amortized on a unit of  production  method
based upon estimated  proved reserves.  The Company  calculates and applies this
rate  on  a  property  by  property  basis.  Fluctuations  in  depreciation  and
amortization  expense can be caused by variations in the  performance of the oil
and gas  property,  the amount  invested  in the  property  and the  hydrocarbon
reserves ultimately recoverable from the property. As the oil and gas properties
and their  associated  reserves  age within a company,  these rates  become more
predictable and have less variance.

         Interest expense  decreased  $147,438 between the two quarterly periods
due to scheduled bank note payments and the resulting lower average  outstanding
principal balance.

Liquidity and Capital Resources
-------------------------------

         Cash and cash  equivalents  totaled  $16.9 million and $21.2 million at
March 31, 2001 and  December 31, 2000,  respectively.  Working  capital



                                       10
<PAGE>

was $9.7 million at March 31, 2001  compared  with $14.2 million at December 31,
2000.

         The following  summary  table  reflects cash flows for the three months
ended March 31, 2001 (in thousands):

              Net cash provided by operating activities:               $9,736

              Net cash used by investing activities:                   12,198

              Net cash used by financing activities:                    1,915

         Included  in the  amount  utilized  by  investing  activities,  is $8.8
million spent to increase the  Company's  working  interest  position in certain
properties acquired in 2000. The balance utilized in investing activities,  $3.4
million, was spent performing development work on various properties.

         At March 31, 2001, the Company's  long-term debt was  $22,950,000.  The
Company   believes  it  has  sufficient  cash  being  generated  from  operating
activities plus cash currently in the bank, or additional borrowing capacity, to
fund  its  planned   drilling   activities  and  to  make  additional   property
acquisitions.




                                       11
<PAGE>




Certain Factors that Could Affect Future Operations
---------------------------------------------------

         Certain  information  contained in this report,  as well as written and
oral  statements  made or  incorporated  by  reference  from time to time by the
Company and its  representatives  in other reports,  filings with the Securities
and Exchange Commission, press releases, conferences or otherwise, may be deemed
to be  'forward-looking  statements'  within the  meaning of Section  21E of the
Securities  and  Exchange  Act of 1934  and are  subject  to the  'Safe  Harbor'
provisions  of  that  section.  Forward-looking  statements  include  statements
concerning the Company's and management's plans,  objectives,  goals, strategies
and future  operations  and  performance  and the  assumptions  underlying  such
forward-looking  statements.  These statements are based on current expectations
and involve a number of risks and  uncertainties,  including  those described in
the context of such forward-looking statements.  Actual results and developments
could differ  materially from those expressed in or implied by such  statements.
Such factors include,  among others,  the volatility of oil and gas prices,  the
Company's drilling results,  the Company's ability to compete in the acquisition
of  producing  property,   the  Company's  ability  to  replace  reserves,   the
availability  of  capital  resources,  the  reliance  upon  estimates  of proved
reserves,   operating   hazards,   uninsured  risks,   competition,   government
regulation, and other factors referenced in this Form 10-Q.



                                       12
<PAGE>


ITEM 3:       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Commodity Risk
--------------

         The Company's  primary  commodity market risk exposure is to changes in
the pricing  applicable  to its oil  production,  which is normally  priced with
reference to a defined  benchmark,  such as light, sweet crude oil traded on the
New York  Mercantile  Exchange  (WTI).  Actual  prices  received  vary  from the
benchmark depending on quality and location differentials. The markets for crude
oil historically have been volatile and are likely to continue to be volatile in
the future.

         From  time  to  time,  the  Company   enters  into   financial   market
transactions, including collars, with creditworthy counterparties,  primarily to
reduce the risk  associated with the pricing of a portion of the oil and natural
gas that it sells.  The policy is structured  to underpin the Company's  planned
revenues and results of operations.

         During 2001, the Company entered into a derivative financial instrument
whereby the Company hedged 2,000 barrels of daily  production from March 1, 2001
through  February 28, 2002 with a ceiling price of $28.18/bbl  and a floor price
of $24.00/bbl. The Company exercised its right to terminate this contract during
March,  2001 via payment of $803,000  which reduced oil and gas revenues for the
first quarter of 2001.



                                       13
<PAGE>



                           PART II. OTHER INFORMATION

ITEM 6:       Exhibits and Reports on Form 8-K

              (a)      Exhibits - None

              (b)      No reports on Form 8-K were filed during the quarter
                       ended March 31, 2001.



                                       14
<PAGE>



                                   SIGNATURES

    Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.


                                               MAYNARD OIL COMPANY


                                               By: /s/ Glenn R. Moore
                                                  ----------------------------
                                                   Glenn R. Moore
                                                        President



                                               BY: /s/ Kenneth W. Hatcher
                                                  -----------------------------
                                                  Kenneth W. Hatcher
                                                  Vice President of Finance



Dated: May 15, 2001



                                       15