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 September 30, 2000 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 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 November 10, 2000.


                4,880,618 shares of common stock, par value $0.10
--------------------------------------------------------------------------------







<PAGE>



                      MAYNARD OIL COMPANY AND SUBSIDIARIES

            Index to Consolidated Financial Statements and Schedules


                                                                            Page
                                                                            ----

Part I.  Financial Information

         Consolidated Balance Sheets
                  September 30, 2000 and December 31, 1999                    3

         Consolidated Statements of Operations
                       Nine Months and Three Months ended
                  September 30, 2000 and 1999                                 4

         Consolidated Statements of Shareholders' Equity
                  Nine Months ended September 30, 2000                        5

         Consolidated Statements of Cash Flows
                  Nine Months ended September 30, 2000 and 1999               6

         Notes to Consolidated Financial Statements                           7

         Management's Discussion and Analysis of Financial
                  Condition and Results of Operations                         11

Part II.          Other Information

         Item 6.           Exhibits and Reports on Form 8-K                   19

Signatures                                                                    20

















                                       -2-

<PAGE>



                      MAYNARD OIL COMPANY AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)

                                                September 30,      December 31,
                                                -------------      ------------
                                                     2000              1999
                                                     ----              ----
ASSETS
Current assets:
   Cash and cash equivalents                     $  22,952,991    $  12,910,321
   Accounts receivable, trade                        6,526,088        6,029,188
   Income taxes receivable                             750,000          750,000
   Other current assets                                947,433          836,554
                                                 -------------    -------------
           Total current assets                     31,176,512       20,526,063
                                                 -------------    -------------

Property and equipment, at cost:
   Oil and gas properties, successful
     efforts method                                157,147,288      151,655,045
   Other property and equipment                        475,327          337,546
                                                 -------------    -------------
                                                   157,622,615      151,992,591
   Less accumulated depreciation and
    amortization                                   (84,932,601)     (78,158,395)
                                                 -------------    -------------
        Net property and equipment                  72,690,014       73,834,196
                                                 -------------    -------------

Deferred income taxes                                     --            348,000
                                                 -------------    -------------

                                                 $ 103,866,526    $  94,708,259
                                                 =============    =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Current installments of long-term debt        $   7,650,000    $   5,737,500
   Accounts payable                                  4,122,408        4,249,724
   Accrued expenses                                  3,469,492        1,257,618
   Income taxes payable                              1,779,212          960,212
                                                 -------------    -------------
           Total current liabilities                17,021,112       12,205,054
                                                 -------------    -------------

Deferred income taxes                                  384,000             --
Long-term debt                                      26,775,000       32,512,500

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;
     4,880,618 and 4,880,887 shares
          issued and outstanding                       488,062          488,089
   Additional paid-in capital                       18,831,138       18,831,138
   Retained earnings                                40,367,214       30,671,478
                                                 -------------    -------------
           Total shareholders' equity               59,686,414       49,990,705
                                                 -------------    -------------

Contingencies and commitments
                                                 $ 103,866,526    $  94,708,259
                                                 =============    =============

See accompanying Notes to Consolidated Financial Statements.

                                       -3-

<PAGE>


<TABLE>

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

                                               Nine Months ended                       Three Months ended
                                                  September 30,                           September 30,
                                               -----------------                       ------------------
                                            2000               1999                 2000                1999
                                            ----               ----                 ----                ----
<S>                                     <C>                <C>                  <C>                 <C>
Revenues:
   Oil and gas sales                    $37,085,448        $14,519,100          $14,781,064         $ 6,523,657
   Interest and other                       770,391            661,430              299,827             167,599
   Gain (loss) on disposition
      of assets                             (62,955)           303,000              124,882              (99,781)
                                          ----------        ----------           ----------           ----------
                                         37,792,884         15,483,530           15,205,773           6,591,475
                                         ----------         ----------           ----------          ----------
Costs and expenses:
   Operating expenses                     9,972,575          5,124,825            3,539,492           2,005,297
   Exploration, dry holes and
       abandonments                          21,222            486,720               16,681             380,543
   General and administrative, net        3,071,408          1,725,910            1,191,842             491,539
   Depreciation and amortization          7,972,946          4,617,436            2,744,766           1,641,157
   Interest and other                     2,318,394            456,133              853,702             132,780
                                         ----------         ----------           ----------          ----------
                                         23,356,545         12,411,024            8,346,483           4,651,316
                                         ----------         ----------           ----------          ----------

      Income before income taxes         14,436,339          3,072,506            6,859,290           1,940,159

Income tax expense                        4,736,000            840,000            2,236,000             540,000
                                         ----------         ----------           ----------           ---------

      Net income                        $ 9,700,339        $ 2,232,506          $ 4,623,290           $1,400,159
                                         ==========         ==========           ==========           =========

Weighted average number of common
   shares outstanding                     4,880,809          4,883,664            4,880,702           4,883,429
                                          =========          =========            =========           =========

Net income per common share                  $1.99            $ .46                 $ .95                 $ .29
  (Basic and diluted)                        ====             ====                  ====                  ====


See accompanying Notes to Consolidated Financial Statements.


</TABLE>





                                       -4-

<PAGE>


<TABLE>

                                                   MAYNARD OIL COMPANY AND SUBSIDIARIES
                                              Consolidated Statements of Shareholders' Equity
                                                   Nine Months Ended September 30, 2000
                                                                (Unaudited)
<CAPTION>


                                                                           Additional
                                             Common Stock                    Paid-in
                                             ------------                    Capital            Retained
                                            Shares          Amount            Amount            Earnings            Total
                                            ------          ------            ------            --------            -----

<S>                                       <C>              <C>              <C>                <C>                <C>
Balance at December 31, 1999              4,880,887        $488,089         $18,831,138        $30,671,478        $49,990,705

 Net income                                    --              --                --              9,700,339          9,700,339
 Purchase and retirement
   of common stock                             (269)            (27)             --                 (4,603)            (4,630)
                                           ---------         -------         ----------          ----------         ----------

Balance at September 30, 2000             4,880,618        $488,062         $18,831,138        $40,367,214        $59,686,414
                                          =========         =======          ==========         ==========         ==========


 See accompanying Notes to Consolidated Financial Statements.

</TABLE>











                                       -5-

<PAGE>


<TABLE>

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

                                                      Nine Months Ended September 30,
                                                      -------------------------------
                                                           2000            1999
                                                           ----            ----

<S>                                                    <C>             <C>
Cash flows from operating activities:
     Net income                                        $  9,700,339    $  2,232,506
     Adjustments to reconcile net income to net
         cash provided by operating activities:

         Depreciation and amortization                    7,972,946       4,617,436
         Deferred income taxes                              732,000         300,000
         Dry holes and abandonments                           1,377         405,773
         Current year costs of dry holes
           and abandonments                                  (1,377)       (312,556)
         (Gain) loss on disposition of assets                62,955        (303,000)
         (Increase) decrease in current assets:
           Accounts receivable                             (496,900)     (1,609,358)
           Income taxes receivable                             --           227,587
           Other current assets                            (110,879)         10,666
         Increase (decrease) in current liabilities:
           Accounts payable                                (127,316)        360,370
           Accrued expenses                               2,211,874         831,853
           Income taxes payable                             819,000         279,413
                                                       ------------    ------------

           Net cash provided by operating
             activities                                  20,764,019       7,040,690
                                                       ------------    ------------

Cash flows from investing activities:
     Proceeds from disposition of assets                    735,646         545,275
     Additions to property and equipment                 (7,627,365)    (12,589,688)
                                                       ------------    ------------

           Net cash used by investing
             activities                                  (6,891,719)    (12,044,413)
                                                       ------------    ------------
Cash flows from financing activities:
     Principal payments on long-term debt                (3,825,000)     (3,750,000)
     Purchase of common stock                                (4,630)        (10,670)
                                                       ------------    ------------

           Net cash used by financing
             activities                                  (3,829,630)     (3,760,670)
                                                       ------------    ------------

Net increase (decrease) in cash and cash
     equivalents                                         10,042,670      (8,764,393)

Cash and cash equivalents at beginning
     of year                                             12,910,321      20,889,742
                                                       ------------    ------------

Cash and cash equivalents at end of period             $ 22,952,991    $ 12,125,349
                                                       ============    ============


See Accompanying Notes to Consolidated Financial Statements.


</TABLE>

                                       -6-

<PAGE>



                      MAYNARD OIL COMPANY AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 30, 2000


Note 1        Unaudited Financial Statements

         The  accompanying  consolidated  financial  statements  of Maynard  Oil
         Company (the "Company") have been prepared in accordance with generally
         accepted accounting  principles,  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 September 30, 2000,  the results of  operations  for the
         nine  months and three  months  ended  September  30, 2000 and 1999 and
         changes  in cash  and  cash  equivalents  for  the  nine  months  ended
         September 30, 2000 and 1999. The December 31, 1999 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 1999 Annual  Report to
         Shareholders.

         Certain  reclassifications of prior period statements have been made to
         conform with the 2000 presentation.

Note 2        Earnings Per Share

         Net income per common share is based on the weighted  average number of
         shares  outstanding in each period.  As of September 30, 2000 and 1999,
         the Company had no potentially  dilutive common shares,  and therefore,
         basic and diluted earnings per common share were the same.

Note 3        Risk Management

         During 1999, the Company entered into a derivative financial instrument
         whereby the  Company  hedged  2,500  barrels of daily  production  from
         November  1,  1999  through  June  30,  2000  with a  ceiling  price of
         $23.90/bbl and a floor price of $14.00/bbl.  The contracts provided for
         a monthly  settlement  such that if the  average  WTI for the month was
         greater  than  $23.90/bbl,  Maynard  remitted to the  counterparty  the
         excess price times the number of barrels hedged

                                       -7-

<PAGE>



         during the month. Conversely, if the average WTI for the month was less
         than $14.00/bbl,  the counterparty was obligated to pay Maynard for the
         difference  times the number of barrels hedged during the month. If the
         average WTI for the month fell between  $14.00/bbl and  $23.90/bbl,  no
         settlement  was to be  made.  As a  result  of  this  arrangement,  the
         Company's oil and gas revenues were reduced by approximately $2,173,000
         during the nine months ended September 30, 2000.

         A second derivative instrument was entered into effective March 1, 2000
         through  June 30, 2000 which  mirrored the first except the ceiling and
         floor  amounts  were $28.30 and $25.00 per barrel,  respectively.  This
         second instrument was cancelled by the Company effective April 1, 2000.
         As a result of this  arrangement,  the Company's first quarter 2000 oil
         and gas revenues were reduced by approximately $146,000.

         Effective  September 1, 2000,  the Company  entered into an  additional
         derivative  financial  instrument  in which the  Company  hedged  1,000
         barrels of daily  production  for a period of six months with a ceiling
         price of $36.50/bbl  and a floor price of  $24.00/bbl.  This  agreement
         calls for a monthly cash settlement if the average WTI for the month is
         greater than the ceiling price,  whereby  Maynard would be obligated to
         pay the counterparty to the contract;  likewise, if the average WTI for
         the  month is less  than  the  floor  price,  the  counterparty  to the
         contract  would be  obligated  to pay  Maynard.  The amount of any cash
         payment would be equal to the difference  between the average WTI price
         and the ceiling or floor  price times the number of hedged  barrels for
         the  month.  During  September,  the  average  WTI was  $30.86/bbl  and
         consequently, no monies were due to either party under the contract.

         Additionally,  effective  October 1, 2000,  the  Company  entered  into
         another  derivative  financial  instrument in which an additional 1,000
         barrels of daily  production was hedged for a period of six months with
         a ceiling price of $37.20/bbl and a floor price of $25.00/bbl.



                                       -8-

<PAGE>



Note 4        Income Taxes

         The provision for income taxes consists of the following  (thousands of
         dollars):
                           Nine Months Ended ``           Three Months Ended
                              September 30,                  September 30,
                           -----------------              ------------------
                            2000        1999              2000           1999
                            ----        ----              ----           ----
     Federal:
         Current         $4,004        $ 540             $1,654         $ 370
         Deferred           732          300                582           170
                          -----         ----              -----          ----

                         $4,736        $ 840             $2,236         $ 540
                          =====         ====              =====          ====

Note 5        Employee Incentive Plan

         The Company's  Board of Directors  approved an amendment to an employee
         incentive  plan in which  officers and key  employees  had been awarded
         stock participation units in 1989 and 1993 that entitled them to a cash
         payment  equal to the excess of the fair  market  value of one share of
         the  Company's  common stock over a specified  share price at the grant
         date times the number of vested  shares.  Under the  original  terms of
         this plan,  no units could be exercised  until the employee  terminated
         his employment with the Company. Pursuant to terms of the amended plan,
         each  employee  holding  stock   participation   units  was  given  the
         opportunity  to cash out all, or a portion,  of the units held.  At the
         time  of the  plan  amendment,  there  were a  total  of  95,500  stock
         participation  units outstanding with option prices of $4.50 and $5.625
         per share.  For the nine months and three  months ended  September  30,
         2000, general and  administrative  expenses were charged $1,079,148 and
         $482,273,  respectively,  for the 95,500 stock  participation  units. A
         total of 84,500 units were  exercised  under the amended plan at $20.81
         per share. As a result of the exercise of these units, the Company will
         make  a  cash  payment  of  $1,332,835  to  those  electing  employees.
         Additionally,  at September  30,  2000,  the Company has a liability of
         approximately  $196,000  attributable  to the  remaining  11,000  stock
         participation units.

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.


                                       -9-

<PAGE>



         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.

Note 7        Subsequent Event

         Effective  October 1, 2000, the Company  purchased working interests in
         10 producing  properties  in the  Sho-Vel-Tum  Field located in Carter,
         Stephens,  and Jefferson  Counties,  Oklahoma for cash consideration of
         approximately $2.8 million.



                                      -10-

<PAGE>



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

Quarter Ended September 30, 2000 Compared to Quarter Ended September 30, 1999
-----------------------------------------------------------------------------

              For the third  quarter of 2000,  the  Company  earned  ninety-five
cents per share on revenues of $15,205,773  compared to earnings of twenty- nine
cents per share  during the third  quarter of 1999 on  revenues  of  $6,591,475.
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  $8,257,407  between the two  quarterly
periods,  or over  126%,  due to  both  pricing  increases  and  higher  volumes
resulting from producing property  acquisitions.  Oil and gas prices were $10.09
per barrel and $1.75 per  thousand  cubic feet of gas (mcf) higher than the same
quarter a year ago. Oil volumes  increased in excess of 42% and gas volumes rose
approximately 61% over this same period as reflected in the table below.

                             Nine Months Ended               Quarter Ended
                                September 30,                September 30,
Sales Volumes                 2000         1999              2000         1999
-------------                 ----         ----              ----         ----

         Bbls           1,031,093        709,748           346,468       243,742

         MCF            2,935,974      1,407,820           968,320       600,899



                                      -11-

<PAGE>



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

         On a net equivalent barrel basis (NEB),  lease operating  expenses were
$1.14 per NEB higher  than the third  quarter of 1999 as a result of  additional
workover  expenses and higher severance taxes,  which relate  proportionally  to
increased oil and gas revenues.

         The exploration,  dry holes and abandonments category declined $363,862
between the 1999 and 2000 quarters as a result of reduced  exploratory  drilling
activity.

         General and  administrative  expenses  reflect an increase of $700,303,
sixty-nine  percent of which is  attributable  to the  employee  incentive  plan
discussed  in Note 5 to the  Company's  Financial  Statements,  and the  balance
represents  costs to manage the growth of the Company from  approximately  $60.3
million in assets at  September  30,  1999 to  approximately  $103.8  million in
assets at September 30, 2000.

         Depreciation and amortization expense rose $1,103,609,  or 67%, between
the  third  quarters  of 1999  and  2000  due to the  acquisition  of  producing
properties last year. On a net equivalent barrel basis, this category of expense
increased  from  $4.77 per NEB to $5.40 per NEB as a result of higher  depletion
rates on certain properties.

         Interest  expense also  increased  $720,922  between the two  quarterly
periods  because  of  additional  bank  debt  incurred  in  connection  with the
properties acquired from Questar Exploration and Production Company in November,
1999.

                                      -12-

<PAGE>



Nine Months Ended September 30, 2000 Compared to Nine Months Ended
------------------------------------------------------------------
September 30, 1999
------------------

         The  Company  reported  net  income of  $9,700,339,  or one  dollar and
ninety-nine  cents per share,  on  revenues of  $37,792,884  for the nine months
ended  September 30, 2000 compared with net income of  $2,232,506,  or forty-six
cents per share,  on  revenues  of  $15,483,530  for the same period a year ago.
Earnings for the current  period were  favorably  affected by operating  results
derived  from  producing  properties  acquired,   as  well  as  product  pricing
increases.

Revenues
--------

         Oil and gas  revenues  rose  $22,566,348  between  the two  nine  month
periods,  or  approximately  155%,  primarily  because of volume  increases from
producing  property  acquisitions.  Oil volumes rose  approximately  45% and gas
volumes were 109% higher than the prior period.  Significant price  realizations
also pushed  revenues higher - oil averaged $26.13 per barrel for the first nine
months of 2000  compared  with $15.80  during the prior year,  and gas  averaged
$3.45 per mcf compared  with $2.35 per mcf in 1999.  During the current  period,
revenues  were reduced by $62,955 due to a loss from property  sales,  while the
prior nine month period included a gain of $303,000 from property dispositions.

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

         Operating  expenses  increased $1.13 per NEB, primarily due to workover
activity levels and higher severance tax expense,  which relates  proportionally
to higher oil and gas revenues.

                                      -13-

<PAGE>



         Because  the  Company   follows  the   successful   efforts  method  of
accounting, the Company's results of operations may be adversely affected during
any accounting  period in which seismic costs,  exploratory dry hole costs,  and
unproved property costs are expensed.  However,  during the current period,  the
absence of most  exploratory  drilling  costs resulted in a decline of $465,498,
when compared to the same period last year.

         General and administrative (G&A) expenses increased $1,345,498, or 78%,
to  reflect  higher  phantom  stock  expense  as  discussed  in  Note  5 to  the
Consolidated Financial statements.

         Additionally,  depreciation and amortization expense rose approximately
73% during the  current  nine months  reflecting  the  increase  in  unamortized
property  balances  resulting from  producing  property  acquisitions.  Interest
expense increased $1,862,261 in the current period reflecting higher outstanding
bank debt due to last year's property acquisitions.

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

         Cash and cash  equivalents  totaled  $22.9 million and $12.9 million at
September 30, 2000,  and December 31, 1999,  respectively.  Working  capital was
$14.1 million at September 30, 2000,  compared with $8.3 million at December 31,
1999.

         The  following  summary  table  reflects cash flows for the nine months
ended September 30, 2000 (in thousands):

         Net cash provided by operating activities:                      $20,764
         Net cash used by investing activities:                            6,892
         Net cash used by financing activities:                            3,829




                                      -14-

<PAGE>



         At September 30, 2000, the Company's total debt was $34.4 million.  The
Company  believes  sufficient cash is being generated from operating  activities
plus cash currently in the bank, or additional  borrowing capacity,  to fund its
planned  development  and  exploratory  work  or  to  make  additional  property
acquisitions.  Subsequent to September 30, 2000, the Company spent an additional
$2.8 million on the acquisition of producing property.

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

                                      -15-

<PAGE>



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.

Recent Accounting Pronouncements
--------------------------------

         In June 1998, the Financial Accounting Standards Board issued Statement
No. 133  ("SFAS  133"),  "Accounting  for  Derivative  Instruments  and  Hedging
Activities."  This  statement,  as  amended  in  June  2000  by  SFAS  No.  138,
establishes  accounting and reporting  standards for derivative  instruments and
for hedging activities.  It requires enterprises to recognize all derivatives as
either assets or liabilities in the balance sheet and measure those  instruments
at fair  value.  The  requisite  accounting  for  changes in the fair value of a
derivative  will depend on the intended use of the  derivative and the resulting
designation.  The Company must adopt SFAS 133 and 138 effective January 1, 2001.
Based on the Company's outstanding  derivative  contracts,  the Company believes
that the impact of adopting those  standards  would not have a material  adverse
affect on the Company's operations or consolidated financial condition. However,
no assurances can be given with regard to the level of the Company's  derivative
activities  at the time of adoption  or the  resulting  effect on the  Company's
operations or consolidated financial condition.


                                      -16-

<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 1999, the Company entered into a derivative financial instrument
whereby the Company  hedged 2,500 barrels of daily  production  from November 1,
1999 through June 30, 2000 with a ceiling price of $23.90/bbl  and a floor price
of  $14.00/bbl.  The contracts  call for a monthly  settlement  such that if the
average WTI for the month is greater than $23.90/bbl,  the Company remits to the
counterparty  the excess  price  times the number of barrels  hedged  during the
month. Conversely, if the average WTI for the

                                      -17-

<PAGE>



month  is less  than  $14.00/bbl,  the  counterparty  pays the  Company  for the
difference  times the number of barrels hedged during the month.  If the average
WTI for the month falls  between  $14.00/bbl  and  $23.90/bbl,  no settlement is
made. As a result of this  arrangement,  the Company's oil and gas revenues were
reduced by approximately  $2,173,000  during the nine months ended September 30,
2000.

         A second derivative instrument was entered into effective March 1, 2000
through  June 30, 2000 which  mirrored  the first,  except the ceiling and floor
amounts were $28.30 and $25.00 per barrel, respectively.  This second instrument
was  cancelled  by the  Company  effective  April 1,  2000.  As a result of this
arrangement,  the Company's first quarter 2000 oil and gas revenues were reduced
approximately $146,000.

         Effective  September  1, 2000 the Company  entered  into an  additional
derivative  financial  instrument  in which the Company  hedged 1,000 barrels of
daily  production  for a period of six months.  This  agreement was identical to
those  described  above except for pricing.  The ceiling price under the current
agreement is $36.50/bbl  and the floor price  $24.00/bbl.  Since the average WTI
for September, 2000 was $30.86, no monies were due to either party.



                                      -18-

<PAGE>



                           PART II. OTHER INFORMATION

ITEM 6.       Exhibit and Reports on Form 8-K
              -------------------------------

                 (a)  Exhibits:

                      Exhibit 27 - Financial  Data  Schedule

                 (b)  No Reports on Form 8-K were filed during the quarter.


                                      -19-

<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: November 10, 2000







                                      -20-