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, 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 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, 2001.


                4,880,368 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, 2001 and December 31, 2000
                                                                        3

         Consolidated Statements of Operations
                  Nine Months and Three Months ended
                  September 30, 2001 and 2000                           4

         Consolidated Statements of Shareholders' Equity
                  Nine Months ended September 30, 2001
                                                                        5

         Consolidated Statements of Cash Flows
                  Nine Months ended September 30, 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 5.           Other Events
         Item 6.           Exhibits and Reports on Form 8-K            16

Signatures                                                             18














                                       -2-

<PAGE>



                      MAYNARD OIL COMPANY AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)

                                                 September 30,      December 31,
                                                 -------------      ------------
                                                      2001              2000
                                                      ----              ----
ASSETS
Current assets:
   Cash and cash equivalents                      $ 17,999,580     $ 21,228,040
   Accounts receivable, trade                        6,816,533        8,773,669
   Income taxes receivable                           1,622,587        1,437,587
   Other current assets                                906,943          441,027
                                                    ----------      -----------
           Total current assets                     27,345,643       31,880,323
                                                    ----------      -----------

Property and equipment, at cost:
   Oil and gas properties, successful
     efforts method                                185,284,051      162,572,339
   Other property and equipment                        504,298          450,885
                                                   -----------      -----------
                                                   185,788,349      163,023,224
   Less accumulated depreciation and
    amortization                                   (97,678,692)     (87,045,360)
                                                   -----------      -----------
        Net property and equipment                  88,109,657       75,977,864
                                                   -----------      -----------

                                                  $115,455,300     $107,858,187
                                                   ===========      ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Current installments of long-term debt          $ 7,650,000      $ 7,650,000
   Accounts payable                                  8,762,976        8,350,643
   Accrued expenses                                  1,485,745          927,828
   Income taxes payable                                 62,799          800,799
                                                    ----------      -----------
           Total current liabilities                17,961,520       17,729,270
                                                    ----------      -----------

Deferred income taxes                                3,803,000        1,179,000

Long-term debt                                      19,125,000       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;
     4,880,368 and 4,880,516 shares
          issued and outstanding                       488,037          488,051
   Additional paid-in capital                       18,831,138       18,831,138
   Retained earnings                                55,246,605       44,768,228
                                                   -----------      -----------
           Total shareholders' equity               74,565,780       64,087,417
                                                   -----------      -----------

Contingencies and commitments
                                                  $115,455,300     $107,858,187
                                                   ===========      ===========

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,
                                                                        -----------------                       ------------------
                                                                2001               2000                 2001                2000
                                                                ----               ----                 ----                ----
<S>                                                         <C>                <C>                  <C>                 <C>
Revenues:
   Oil and gas sales                                        $43,955,544        $37,085,448          $12,690,820         $14,781,064
   Interest and other                                           576,264            770,391              156,271             299,827
   Gain (loss) on disposition
      of assets                                                  28,244            (62,955)               1,862             124,882
                                                             ----------         ----------           ----------          ----------
                                                             44,560,052         37,792,884           12,848,953          15,205,773
                                                             ----------         ----------           ----------          ----------
Costs and expenses:
   Operating expenses                                        13,587,928          9,972,575            4,649,601           3,539,492
   Exploration, dry holes and
       abandonments                                             245,091             21,222               88,922              16,681
   General and administrative, net                            2,708,285          3,071,408            1,105,453           1,191,842
   Depreciation and amortization                             10,664,881          7,972,946            3,654,828           2,744,766
   Interest and other                                         1,499,713          2,318,394              359,892             853,702
                                                             ----------         ----------           ----------          ----------
                                                             28,705,898         23,356,545            9,858,696           8,346,483
                                                             ----------         ----------           ----------          ----------

      Income before income taxes                             15,854,154         14,436,339            2,990,257           6,859,290

Income tax expense                                            5,373,057          4,736,000              986,000           2,236,000
                                                             ----------         ----------           ----------           ---------

      Net income                                            $10,481,097        $ 9,700,339          $ 2,004,257          $4,623,290
                                                             ==========         ==========           ==========           =========

Weighted average number of common
   shares outstanding                                         4,880,409          4,880,809            4,880,371           4,880,702
                                                              =========          =========            =========           =========

Net income per common share                                       $2.15              $1.99                $ .41               $ .95
  (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 September 30, 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                       10,481,097     $10,481,097     10,481,097
   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                               $10,481,097
                                                    ==========

Purchase and retirement
   of common stock                      (2,734)                        (2,720)      _______                         (14)       (148)
                                    ----------                      ---------                    ---------      -------   ---------

Balance at September 30, 2001      $74,565,780                    $55,246,605       $  --       $18,831,138    $488,037   4,880,368
                                    ==========                     ==========       =======      ==========     =======   =========



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,
                                                       -------------------------------
                                                          2001              2000
                                                          ----              ----

<S>                                                    <C>             <C>
Cash flows from operating activities:
     Net income                                        $ 10,481,097    $  9,700,339
     Adjustments to reconcile net income to net
         cash provided by operating activities:

         Depreciation and amortization                   10,664,881       7,972,946
         Deferred income taxes                            2,624,000         732,000
         Dry holes and abandonments                         201,670           1,377
         Current year costs of dry holes
           and abandonments                                (202,549)         (1,377)
         (Gain) loss on disposition of assets               (28,244)         62,955
         (Increase) decrease in current assets:
           Accounts receivable                            1,957,136        (496,900)
           Income taxes receivable                         (185,000)             --
           Other current assets                            (465,916)       (110,879)
         Increase (decrease) in current liabilities:
           Accounts payable                                 412,333        (127,316)
           Accrued expenses                                 557,917       2,211,874
           Income taxes payable                            (738,000)        819,000
                                                       ------------    ------------

           Net cash provided by operating
             activities                                  25,279,325      20,764,019
                                                       ------------    ------------

Cash flows from investing activities:
     Proceeds from disposition of assets                     28,244         735,646
     Additions to property and equipment                (22,795,795)     (7,627,365)
                                                       ------------    ------------

           Net cash used by investing
             activities                                 (22,767,551)     (6,891,719)
                                                       ------------    ------------
Cash flows from financing activities:
     Principal payments on long-term debt                (5,737,500)     (3,825,000)
     Purchase of common stock                                (2,734)         (4,630)
                                                       ------------    ------------

           Net cash used by financing
             activities                                  (5,740,234)     (3,829,630)
                                                       ------------    ------------

Net (decrease) increase in cash and cash
     equivalents                                         (3,228,460)     10,042,670

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

Cash and cash equivalents at end of period             $ 17,999,580    $ 22,952,991
                                                       ============    ============


See Accompanying Notes to Consolidated Financial Statements.

</TABLE>

                                       -6-

<PAGE>



                       MAYNARD OIL COMPANY AND SUBSIDIARY
                   Notes to Consolidated Financial Statements
                               September 30, 2001


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, 2001,  the results of  operations  for the
         nine  months and three  months  ended  September  30, 2001 and 2000 and
         changes  in cash  and  cash  equivalents  for  the  nine  months  ended
         September 30, 2001 and 2000. 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        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, 2001 and 2000,
         the Company had no potentially  dilutive common shares,  and therefore,
         basic and diluted earnings per common share were the same.

Note 3        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 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

                                       -7-

<PAGE>



         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 price
         received for West Texas  Intermediate  grade of crude oil (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.

         Another  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 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,
                              -----------------          ------------------
                              2001         2000           2001          2000
                              ----         ----           ----          ----
         Federal:
              Current       $2,765       $4,004          $ 116        $1,654
              Deferred       2,624          732            886           582
         State (refund)        (16)        -               (16)         -
                              -----        ----           -----         ----

                            $5,373       $4,736          $ 986        $2,236
                             =====        =====           ====         =====

Note 5        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 management's  knowledge,  the
         Company is in substantial compliance with such laws and regulations.



                                       -8-

<PAGE>



Note 6         Strategic Alternatives

         As  announced  on July 23,  2001,  the Company is  exploring  strategic
         alternatives  which include the possible sale or merger of the Company.
         In  connection  with  these  transactions,  the  Company  entered  into
         contracts  with its  personnel  which  provide  incentive  bonuses  and
         retention  arrangements that total approximately  $5,100,000 to be paid
         out within one year after a sale or merger agreement is signed.

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

Quarter Ended September 30, 2001 Compared to Quarter Ended September
--------------------------------------------------------------------
30, 2000
--------

         For the third quarter of 2001, the Company earned  forty-one  cents per
share on revenues of $12,848,953  compared to earnings of ninety- five cents per
share  during the third  quarter of 2000 on  revenues  of  $15,205,773.  Current
quarter  results  were  adversely  impacted by reduced  revenues in each revenue
category - oil and gas sales,  interest income and gains from the disposition of
assets.

Revenues
--------

         Oil and gas  revenues  declined  $2,090,244  between the two  quarterly
periods, or approximately 14%, due to price reductions for both oil and gas. Oil
and gas prices  were $4.71 per barrel and $1.85 per  thousand  cubic feet of gas
(mcf)  lower than the same  quarter a year ago.  Offsetting  oil and gas revenue
declines  were sales volume  increases  for both  products  resulting  from 2001
property  acquisitions.  Oil volumes  increased  almost 3% and gas volumes  rose
approximately 40% over prior year's third quarter.

                                       -9-

<PAGE>



         Interest income fell due to reductions in cash available for investment
purposes and lower interest rates. Total capital  expenditures for 2001 (through
the third quarter) have been $22.8 million with $6.5 million expended during the
third  quarter of 2001.  Additionally,  revenues  for the third  quarter of 2001
include  only a minimal  gain from the  disposition  of assets of  approximately
$2,000.

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

         On a net equivalent barrel basis (NEB),  lease operating  expenses were
$1.00 per NEB higher  than the third  quarter of 2000 as a result of  escalating
oil field expenses and additional workover projects.

         The exploration,  dry holes and abandonments category increased $72,241
between the 2000 and 2001  quarters as a result of the  impairment of an acreage
position acquired earlier this year.

    General and  administrative  expenses reflect a decrease of $86,389,  during
the third quarter of 2001, primarily related to the redemption of 84,500 phantom
stock units in third  quarter of 2000.  During third  quarter  2001,  there were
11,000 phantom stock units redeemed.

         Depreciation and amortization  expense rose $910,062,  or slightly over
33%,  between the third  quarters of 2000 and 2001. On a net  equivalent  barrel
basis,  this  category  of  expense  increased  from $5.40 per NEB to $6.26 as a
result of higher depletion rates on certain properties.

         Interest expense  decreased  $493,810 between the two quarterly periods
because  of  reductions  in the  outstanding  bank  debt due to  scheduled  loan
repayments and lower interest rates.

                                      -10-

<PAGE>



Nine Months Ended September 30, 2001 Compared to Nine Months Ended
------------------------------------------------------------------
September 30, 2000
------------------

         The  Company  reported  net income of  $10,481,097,  or two dollars and
fifteen cents per share,  on revenues of  $44,560,052  for the nine months ended
September  30, 2001 compared  with net income of  $9,700,339,  or one dollar and
ninety-nine  cents per share,  on revenues of $37,792,884  for the same period a
year ago.  Earnings for the current period were favorably  affected by operating
results derived from producing  properties  acquired last year and this year, as
well as average gas price increases.

Revenues
--------

         Oil and gas  revenues  rose  $6,870,096  between  the  two  nine  month
periods,  or  approximately  19%,  because of increased  production  volumes and
higher average gas prices.  Oil volumes rose  approximately  5%, and gas volumes
were 30%  higher  than the prior  period.  Gas price  realizations  also  pushed
revenues  higher,  averaging $4.47 per mcf during the current year compared with
$3.45 per mcf in 2000, thus helping offset the $1.30 per barrel reduction in oil
prices over this same period.

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

         On a net equivalent barrel basis (NEB),  operating  expenses  increased
$1.35 per NEB,  primarily due to workover  activity levels and higher  severance
tax expense, which relates proportionally to higher oil and gas revenues.

         During  the  current  period,  one  exploratory  well was  drilled  and
abandoned, the cost of which is reflected in the exploration, dry

                                      -11-

<PAGE>



holes and  abandonments  category along with the costs associated with acquiring
certain other oil and gas leases which were also abandoned.

         General and administrative (G&A) expenses decreased $363,123 to reflect
lower phantom stock expense. During the first nine months of 2000, approximately
$1,079,000 was accrued for 95,500  outstanding  phantom units.  In 2000, all but
11,000  phantom stock units were  redeemed,  which were settled in third quarter
2001.

       Depreciation and amortization expense rose during the current nine months
from $5.24 per NEB for the 2000  period to $6.21 per NEB  currently,  reflecting
higher  depletion  rates on  specific  properties.  Interest  expense  decreased
$818,681 in the  current  period  reflecting  lower  outstanding  bank debt from
scheduled loan repayments.

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

         Cash and cash  equivalents  totaled  $18.0 million and $21.2 million at
September 30, 2001,  and December 31, 2000,  respectively.  Working  capital was
$9.4 million at September 30, 2001,  compared with $14.2 million at December 31,
2000.

         The  following  summary  table  reflects cash flows for the nine months
ended September 30, 2001 (in thousands):

              Net cash provided by operating activities:      $25,279

              Net cash used by investing activities:           22,768

              Net cash used by financing activities:            5,740

         At September 30, 2001, the Company's total debt was $26.8 million.  The
Company  believes  sufficient cash is being generated from operating  activities
plus cash currently in the bank, or additional

                                      -12-

<PAGE>



borrowing capacity, to fund its planned development and exploratory
work or to make additional property acquisitions.

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 and
production  volumes,  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.


                                      -13-

<PAGE>



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

         In June 2001, the Financial  Accounting  Standards  Board (FASB) issued
Statement No. 141 (SFAS 141),  "Business  Combinations",  and also Statement No.
142 (SFAS 142), "Goodwill and Other Intangible Assets."

         SFAS  141  requires  all  business  combinations,  as  defined  by  the
standard,  initiated  after June 30, 2001 to be accounted for using the purchase
method.  Companies  may no longer use the  pooling  method to account for future
combinations.

         SFAS 142 is effective  for fiscal years  beginning  after  December 15,
2001 and will be adopted by the Company as of January 1, 2002. SFAS 142 requires
that goodwill no longer be amortized over an estimated useful life as previously
required. Instead, goodwill amounts will be subject to a fair-value-based annual
impairment assessment.  The standard also requires acquired intangible assets to
be recognized separately and amortized as appropriate.  The Company expects that
the  adoption of SFAS 142 will not have a  significant  impact on the  Company's
future financial statements.

         In July 2001,  the FASB issued  SFAS 143  "Accounting  for  Obligations
Associated with the Retirement of Long-Lived Assets".  SFAS 143 is effective for
fiscal years  beginning after January 15, 2002, and early adoption is permitted.
The Company is currently  assessing the new standard and has not  determined the
impact on its  consolidated  results  of  operations,  cash  flows or  financial
position.


                                      -14-

<PAGE>



         In  August,  2001,  the  FASB  issued  SFAS  144  "Accounting  for  the
Impairment  or Disposal of  Long-Lived  Assets".  SFAS No. 144 is effective  for
fiscal years beginning after December 15, 2001, and early adoption is permitted.
The Company is currently  assessing the new standard and has not  determined the
impact on its  consolidated  results of  operations,  cash flows,  or  financial
position.

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  and the ultimate  cash flow realized by the
Company.

         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

                                      -15-

<PAGE>



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.

       The Company is not currently a party to any derivative instrument.

                           PART II. OTHER INFORMATION

ITEM 5.       Other Events
              ------------

         On July 23, 2001  Registrant  reported the retention of William Blair &
Company  as its  financial  advisor  and  McDermott,  Will & Emery as its  legal
counsel to assist in evaluating strategic alternatives. The Company has provided
information  to a number of  parties  and is  assessing  interest  in a possible
business  combination  transaction,  including a potential merger or sale of the
Company.

         In  connection  with a possible  sale of the  Company,  the Company has
committed to pay  approximately  $5,100,000  in director and employee  retention
incentives,  pursuant  to the  forms  of  Retention  Incentive  Letter  and  the
Management  Retention  Agreement  filed as exhibits to this report on Form 10-Q.
The form of  Incentive  Bonus  Letter is  attached  hereto as  Exhibit  10.2 and
incorporated herein by reference.  The form of Management Retention Agreement is
attached hereto as Exhibit 10.3 and incorporated herein by reference.

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

                  (a)      Exhibits:

                           Exhibit 10.2 - Form of Retention Incentive Letter

                           Exhibit 10.3 - Form of Management Retention Agreement


                                      -16-

<PAGE>



                  (b)      Reports on Form 8-K:
                           On July 23, 2001,  the Company filed a report on Form
                           8-K  reporting  its  intention  to  pursue  strategic
                           alternatives.   A  copy  of  the  press  release  was
                           included with the report.



                                      -17-

<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 14, 2001






                                      -18-