UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                    FORM 10-K
    (Mark One)
                |X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
            OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

                   For the fiscal year ended December 31, 2000

                                       OR

              |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
            OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

                          Commission file number 0-610
                               EQUITY OIL COMPANY
             [Exact name of registrant as specified in its charter]

                    Colorado                             87-0129795
         (State or other jurisdiction of              (I.R.S. Employer
          incorporation or organization)            Identification Number)

      10 West Broadway, Suite 806                          84101
          Salt Lake City, Utah                          (Zip Code)
    (Address of principal executive offices)

       Registrant's telephone number, including area code: (801) 521-3515

           Securities registered pursuant to Section 12(b) of the Act:

     Title of each class          Name of each exchange on which registered
     -------------------          -----------------------------------------

          None                                         None

           Securities registered pursuant to Section 12(g) of the Act:

                     Common Stock (par value, $1 per share)
                                [Title of class]

     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  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes X No

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation  S-K is not contained  herein and will not be contained to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ X ]

     As of February 13, 2001, 12,654,612 common shares were outstanding, and the
aggregate market value of voting stock held by  non-affiliates of the registrant
was approximately $49,300,000.

                       Documents Incorporated by Reference

     1.  Definitive  proxy  statement to be filed in  connection  with  Issuer's
Annual Stockholders' Meeting to be held on May 9, 2001 and more particularly the
information  contained on pages 2 through 6 are  incorporated  by reference into
Part III of this report.



<PAGE>



                                     PART I
ITEM 1. BUSINESS

GENERAL

     Equity Oil Company ("Equity" or "the Company") was originally  incorporated
in the state of Utah in 1923. In 1958, it was merged into its subsidiary,  Weber
Oil Company,  a Colorado  corporation.  The surviving  company  adopted the name
Equity Oil Company.

     Equity is an independent oil and gas  exploration  and production  company,
currently  conducting  its business in seven states and two Canadian  provinces.
Equity  is  also a 50%  shareholder  in  Symskaya  Exploration,  Inc.,  a  Texas
corporation (Symskaya) which is licensed to operate in Russia.  Headquartered in
Salt Lake City,  Utah, the Company  maintains an  exploration  office in Denver,
Colorado,  and field offices in Cody, Wyoming and Vernal,  Utah. The Company has
23 full-time employees.

     The executive  office in Salt Lake City is  responsible  for conducting all
administrative functions of the Company, including strategic planning, direction
of exploration and development activities,  shareholder relations, and financial
and legal activities.

     The  Company's   exploration  office  in  Denver  is  responsible  for  the
generation  and  review  of  exploration  prospects,  and  participates  in  the
planning,  where  necessary,  to drill the  prospects.  These include  prospects
developed in-house, as well as those presented by independent third parties.

     All operated  production  activities of the Company are coordinated through
the Company's field office in Cody, Wyoming. The office was opened on January 1,
2000,  as a result of a property  exchange  in the Big Horn Basin of Wyoming and
Montana.  Further  information  concerning  the exchange can be found in Item 2.
PROPERTIES, under the caption PRESENT ACTIVITY.

BUSINESS STRATEGY

     The  Company's  business  strategy  is  to  enhance  shareholder  value  by
increasing the net asset value of the Company  through the growth of its oil and
gas  reserves  and  production  base.  This is  accomplished  through a balanced
program of focused exploration drilling,  development drilling, the exploitation
of existing  reserves and the acquisition of proved oil and gas reserves.  These
activities  are conducted in a limited  number of core  geographic  areas.  Each
project in this program is independently  evaluated to ensure that the estimated
rate of return from the project is  commensurate  with the risk  associated with
the individual project.



                                        2

<PAGE>

     The Company is continuing to refine its geographic focus,  concentrating on
areas where its technical staff has the necessary skill and expertise to compete
successfully.  The  Company's  core  areas  include  the  Rocky  Mountains,  the
Sacramento Basin of Northern California,  and Alberta,  Canada. In addition, the
Company has other non-core production located in Texas.


     When conducting its  exploration  activities,  the general  practice of the
Company is to  participate in projects on a 25% to 50% working  interest  basis.
Participation  varies with each prospect depending on location and the attendant
financial and technical risk.

     In addition to its exploration  ventures,  the Company works in conjunction
with other working interest owners in producing  properties to identify projects
that will develop and exploit the  productive  capacities of existing  wells and
fields.  These projects include development  drilling,  production  enhancement,
operating cost reductions and other types of activities.

     The  Company  also  investigates  opportunities  to purchase  interests  in
properties with existing production. During the last five years, the Company has
replaced  a  significant  amount  of its  production  through  the  purchase  of
producing  properties.  These  purchases  have,  in  turn,  produced  additional
developmental  and  enhancement   projects,   as  well  as  numerous   operating
efficiencies.

     The Company has conducted  international  exploration in Russia through its
50%  ownership  of  Symskaya.  Symskaya's  operations  during 2000 were  limited
primarily to maintaining  its license.  Similar  operations will be conducted in
2001.  Further  discussion of this venture and other Company activities is found
in ITEM 2. PROPERTIES, under the caption PRESENT ACTIVITY.

PRINCIPAL PRODUCTS AND MARKETS

     The Company produces crude oil and natural gas. During the last five years,
revenues from the sales of these  products  have  accounted for more than 90% of
the total  revenues  of the  Company.  Remaining  revenues  have come from other
sources,  including  interest  income  on  invested  funds,  operating  overhead
reimbursements, and the sales of various developed and undeveloped properties.

     The majority of the  Company's  oil  production  occurs in Colorado,  other
Rocky  Mountain  states,  and the  Canadian  provinces  of Alberta  and  British
Columbia.  The Company's crude oil production is sold under short-term contracts
at current  posted prices for each  geographic  area,  less  applicable  quality
adjustments,  plus negotiated  bonuses.  Prices are set by oil purchasers,  and,
while  their  methods of  determining  prices are not within the  control of the
Company,   it  is  assumed  they  are  influenced  by  regional,   national  and
international  factors  relating to oil supply and demand (see discussion  under
MAJOR CUSTOMERS).


                                        3

<PAGE>




     The  bulk of the  Company's  natural  gas  production  occurs  in  Wyoming,
California and the Canadian  province of Alberta.  During 1999, the Company sold
all of its gas producing  properties that were located in Texas. While the areas
where the Company has its major gas reserves are characterized by large reserves
of other companies,  the Company has  historically  been able to sell all of its
productive  capacity,  and  expects to be able to  continue to do so in the near
future.  The  majority of gas sold is marketed  under  contracts at index prices
that change  monthly.  The contracts are subject to  renegotiation  on an annual
basis.

     The Company  periodically  enters into hedging activities with a portion of
its oil  production  which are  intended  to comply with the terms of its credit
facility,  to  support  its oil price at  targeted  levels,  and to  manage  the
Company's  exposure  to  oil  price  fluctuations.  Further  discussion  of  the
Company's  hedging  activities  can be  found  in  Footnote  1 to the  financial
statements.

SEASONALITY

     The Company  experiences  some  seasonality in gas sales revenues.  Net gas
sales prices and  production  tend to rise during the winter months  compared to
the rest of the  year.  However,  since  over 70% of the  Company's  oil and gas
revenues  come from the sale of oil,  the  seasonal  impact on total oil and gas
sales is not significant.

MAJOR CUSTOMERS

     All oil and gas  produced  in the U.S.  or Canada  is sold to  unaffiliated
pipeline, refining or crude oil purchasing companies. These companies may be the
operators of the fields where the product is produced,  owners of the  pipelines
which transport the products,  or other  third-party  purchasers.  While certain
entities  purchase  more  than  10% of the  Company's  oil and  gas  production,
previous  changes  in  purchasers  have  not  resulted  in  an  interruption  of
production or  transportation,  and consequently have not had a material adverse
effect on the business of the Company.

COMPETITION

     Equity is part of a highly competitive  industry composed of many companies
that are  significantly  larger and possess greater  resources than the Company.
These include major oil companies as well as large  independent  exploration and
production  companies.  Their  size and  resources  may allow  these  parties to
operate at a greater competitive advantage than Equity. During 2000, the Company
did not experience any competitive factors which impaired its production or sale
of oil and gas, nor did it experience  significant  difficulties  in contracting
for drilling and related equipment.


                                        4

<PAGE>

GOVERNMENT REGULATION

     Drilling  activities of the Company are  regulated by several  governmental
agencies  in  the  United  States,   both  federal  and  state,   including  the
Environmental  Protection  Agency,  Forest  Service,  Department of Wildlife and
Bureau of Land  Management,  as well as state oil and gas  commissions for those
states in which the Company has operations.  Canadian and Russian operations are
subject to similar requirements.

     The Company  believes that it is currently in compliance  with all federal,
state  and  local  environmental  regulations,  both  domestically  and  abroad.
Further, the Company does not believe that any current environmental regulations
will have a material impact on its capital  expenditures  or earnings,  nor will
they result in any competitive disadvantage to the Company.

FINANCIAL INFORMATION ABOUT FOREIGN OPERATIONS

     Foreign  operations of the Company are currently  conducted in the Canadian
provinces  of Alberta and British  Columbia.  Financial  information  concerning
these operations can be found in Footnotes 5 and 9 to the financial  statements.
For financial reporting purposes,  the Company does not allocate any general and
administrative  expenses to its Canadian operations,  nor are they burdened with
indirect exploration overhead expenses.  Direct exploration expenses are charged
to the  geographic  area in  which  they  occur.  Because  the  majority  of the
Company's   exploration   efforts  occur  in  the  United  States,  very  little
exploration  expenses are allocated to the Canadian  operations.  As a result of
these and other  factors,  the  operating  profit of the Canadian  operations is
significantly  greater  than the  operating  profit in the  United  States.  The
Company does not believe that its Canadian operations are attended with any more
risk than those in the United States.

     The Company owns a 50%  interest in Symskaya,  which is licensed to operate
in Russia.  Further  discussion of this venture is found in ITEM 2.  PROPERTIES,
under the caption  PRESENT  ACTIVITY,  and in Footnotes 6 and 9 in the financial
statements.

ITEM 2. PROPERTIES

     The  principal   properties  of  the  Company   consist  of  developed  and
undeveloped oil and gas leasehold  interests.  Developed leases are comprised of
properties with existing  production,  where lease terms continue as long as oil
and/or gas is produced.  Undeveloped  leases  include  unproven  acreage on both
public and private  lands.  The leases have set terms and  terminate at the time
specified  in each lease  unless oil and/or  gas in  commercial  quantities  are
discovered prior to that time.

     The Company  also has a fee  interest in 6,996 net acres of oil shale lands
in Colorado.  These  properties have not generated  significant  revenue for the
Company.

                                        5

<PAGE>




RESERVES

     The information found in Footnote 9 to the financial statements  concerning
proved  reserves  represents the Company's  best estimate of product  quantities
expected to be produced from its  properties  based on geologic and  engineering
data, as well as current economic and operating conditions.  The presentation is
made in accordance with Securities and Exchange  Commission  guidelines,  and is
based on prices  and costs in effect on  December  31,  2000.  No  estimates  of
reserves  have been filed with or  included  in any report to any other  federal
agency during 2000.

PRODUCTION

     The  following  table sets forth the  Company's  production,  average sales
prices and average lifting costs by geographic area for 2000, 1999 and 1998:


<TABLE>
<CAPTION>

                                             2000       1999      1998      2000      1999      1998
                                             Oil        Oil       Oil       Gas       Gas       Gas
Area                                        (Bbls)     (Bbls)    (Bbls)    (MMCF)    (MMCF)    (MMCF)
----------------------------------------   -------    -------   -------   -------   -------   -------
Production
<S>                                        <C>        <C>       <C>        <C>        <C>      <C>
 Colorado ..............................   272,855    298,507   332,230        76        76       117
 Texas .................................    13,879     18,433    22,291      --          85       145
 Montana ...............................    21,590     19,650    20,434        32        28        34
 Utah ..................................    18,194     13,120    20,658      --        --        --
 Wyoming ...............................   174,556    130,453   131,943       557       601       733
 North Dakota ..........................    92,744     96,068    67,906        64        55        31
 California ............................      --         --        --         732       923     1,032
 Other .................................      --            4         5      --        --        --
                                           -------    -------   -------   -------   -------   -------
 Total U.S. ............................   593,818    576,235   595,467     1,461     1,768     2,092

 Alberta ...............................    61,732     74,257    75,015       186       245       277
 B.C ...................................    10,300     11,898    21,352        14        20        69
                                           -------    -------   -------   -------   -------   -------
 Total Canada ..........................    72,032     86,155    96,367       200       265       346

Grand Total ............................   665,850    662,390   691,834     1,661     2,033     2,438
                                           =======    =======   =======   =======   =======   =======

Average Price

  U.S ..................................   $ 26.55*   $ 17.44   $ 12.28   $  4.02   $  2.11   $  1.95
  Canada ...............................   $ 26.29    $ 17.12   $ 11.43   $  3.51   $  1.57   $  1.15
                                           -------    -------   -------   -------   -------   -------
  Total                                    $ 26.52    $ 17.40   $ 12.16   $  3.96   $  2.04   $  1.83
                                           =======    =======   =======   =======   =======   =======

Lifting Costs
  U.S ..................................   $  7.51    $  6.86   $  6.11   $  1.14   $   .83   $   .97
  Canada ...............................   $  6.12    $  4.87   $  4.48   $   .82   $   .40   $   .40
                                           -------    -------   -------   -------   -------   -------
  Total                                    $  7.36    $  6.60   $  5.88   $  1.10   $   .77   $   .89
                                           =======    =======   =======   =======   =======   =======

* -includes the effect of hedging costs.

</TABLE>

                                        6

<PAGE>


PRODUCTIVE WELLS AND ACREAGE

The  location  and  quantity  of  Equity's  productive  wells and  acreage as of
December 31, 2000 are as follows:


 Productive Wells:                      Gross            Net
 -----------------                      -----            ---
    Oil:
        United States                     646            86.621
        Canada                            333            14.666
    Gas:
        United States                      67            20.332
        Canada                              7             1.576
                                      -------           -------
    Total Productive Wells              1,053           123.195
                                      =======           =======

    Developed Acreage
        United States                 112,960            12,423
        Canada                        126,440             2,701
                                      -------           -------
    Total Developed Acreage           239,400            15,124
                                      =======           =======


                                        7

<PAGE>




UNDEVELOPED LEASEHOLD ACREAGE

     The  following  table  sets  forth the  Company's  undeveloped  oil and gas
leasehold acreage as of December 31, 2000 by geographic area:



                                         Gross                    Net
Area                                    Acreage                 Acreage
----                                    -------                 -------
Colorado                                 18,561                 13,719
Texas                                     2,157                    331
Montana                                  22,271                  5,748
Utah                                     26,451                 11,927
Wyoming                                  43,015                 17,041
California                               23,537                 10,642
North Dakota                             14,451                  5,742
                                        -------                 ------
Total U.S.                              150,443                 65,150
                                        -------                 ------
Alberta                                  12,595                  4,317
                                        -------                 ------
Total Canada                             12,595                  4,317
                                        -------                 ------
Grand Total                             163,038                 69,467
                                        =======                 ======


     Through its 50% ownership in Symskaya, the Company also has an indirect 50%
interest in an additional 1,100,000 gross acres in Russia. Further discussion of
this venture is found in ITEM 2. PROPERTIES, under the caption PRESENT ACTIVITY,
and in Footnotes 6 and 9 to the financial statements.


                                        8

<PAGE>




DRILLING ACTIVITY

     During 2000, the Company participated in the drilling of 18 gross wells. Of
this total,  12 were completed as producing oil and gas wells and 6 were plugged
and  abandoned  as dry holes.  In  addition  one well was in process at year-end
2000.



Gross exploratory wells
drilled:                      Status            2000         1999        1998
-----------------------       ------            ----         ----        ----

     United States            Productive         3             5           6
                              Dry                6             5           5
     Canada                   Productive         -             -           -
                              Dry                -             -           -
Gross development wells
drilled:
-----------------------
     United States            Productive         1             -           1
                              Dry                -             -           -
     Canada                   Productive         8             -           -
                              Dry                -             -           -



Net exploratory wells
drilled:                      Status            2000         1999        1998
---------------------         ------            ----         ----        ----

     United States            Productive         .75         1.74        2.18
                              Dry               3.35         2.25        2.10
     Canada                   Productive           -            -           -
                              Dry                  -            -           -
Net development wells
drilled:
-----------------------
     United States            Productive         .30            -         .40
                              Dry                  -            -           -
     Canada                   Productive        3.19            -           -
                              Dry                  -            -           -




                                        9

<PAGE>


PRESENT ACTIVITY

ACQUISITIONS/DIVESTITURES:

     In early  January of 2001,  the Company  agreed to purchase a 100%  working
interest in several  producing oil wells in Utah. The wells are located adjacent
to the Company's  Ashley Valley field,  where the Company  discovered  the first
commercial oil well in Utah in 1948,  and is still  actively  producing oil. The
proximity  of the wells to  existing  production  will allow the Company to take
advantage of operating efficiencies.

     The acquired wells have  estimated  recoverable  reserves of  approximately
250,000 barrels of oil at a total  acquisition  cost to the Company of $610,000.
While the effective date of this  acquisition  was December 1, 2000, no reserves
are included in year- end 2000 figures as the acquisition was closed in 2001.

     In addition,  the Company acquired a small,  producing property adjacent to
one of its Big Horn Basin  properties  during  2000.  The  Company  is  likewise
attempting  to take  advantage  of its new operated  production  office in Cody,
Wyoming, by identifying and acquiring other properties that fit with its current
production base.

EXPLORATION

     While all 2000  exploration  drilling took place in  California,  important
progress was made in developing new exploration  projects in the Rocky Mountains
for 2001 and beyond. The Company recently completed a 20 square mile 3-D seismic
survey in North  Dakota,  which  includes the prolific  Beaver Creek #24-15 well
completed  in the Nisku  formation  in 1998.  At  year-end  2000,  this well has
recorded  cumulative gross production of 906,000  barrels,  while  maintaining a
flow rate of 700 barrels and 440 mcf per day. The objective of the survey was to
identify  possible drill sites on the 3,520 acre Northwest Beaver Creek prospect
which are similar to the #24-15 well. The Company's  2001 budget  includes funds
for three new exploratory wells in this area.

     Significant  progress was also made in  assembling  the acreage for two new
oil  exploration  projects  in Utah.  Initial  test wells on both  projects  are
scheduled for the first half of 2001.

     During  2000,  the  Company  completed  a 25 square  mile 3-D survey at its
Rancho Colusa prospect in the Sacramento Basin. With a 55% working interest, the
Company  drilled three test wells,  all of which were dry holes.  In response to
these results,  the Company has assigned its working  interest in the project to
its partner to avoid the payment of  $150,000  in rental  payments in 2001.  The
Company also drilled two dry holes at its Davis Ranch prospect.

                                       10

<PAGE>



     The Company and its partners successfully completed two non- operated wells
in the Sacramento  Basin.  One additional  re-entry project was also successful,
and one well was in process at year-end.

     As a result of the dry holes at Rancho Colusa and Davis Ranch,  the Company
is reevaluating its strategy of exploring in less mature areas of the Sacramento
Basin.  The Company is currently  planning to shift the bulk of its  exploration
spending  to the Rocky  Mountains.  Consequently,  drilling  will  continue at a
slower  pace in  California,  while  the  Company  and its  partners  drill  the
remaining prospective locations on existing surveys. 2001 plans contemplate four
to eight new wells and several  recompletions  on  existing  wells in new zones,
capitalizing on the multiple anomaly feature of many wells in the area.


DEVELOPMENT/EXPLOITATION

     Using data  obtained  from a 3-D seismic  survey shot in 1998,  the Company
successfully  drilled six low-cost  development  wells at its Cessford  field in
western  Alberta,  Canada.  The survey  enabled  the  Company and its partner to
highgrade  drilling  locations at this field, which has been producing since the
late 1970's.  2001 plans include up to five additional wells at the field. Total
daily producing  capacity from the six new wells is approximately 50 net barrels
of oil and 500 MCF per day.

     Subsequent  to  obtaining   operational  control  of  its  Big  Horn  Basin
properties at the beginning of 2000, the Company initiated an extensive workover
program, directing more than 15 separate activities during the year. Included in
the  workovers  are  recompletions,   stimulations,   polymer  treatments,   and
production  restoration  at formerly  shut-in  wells.  The workover  program has
increased net daily production by 85 barrels of oil and 530 MCF per day.

     In addition to its Big Horn Basin activities,  the Company has participated
in 20  additional  projects  at other  properties.  Included  in this  count are
several  gas  recompletions  in the  Sacramento  Basin,  where  the  Company  is
exploiting the multiple anomaly characteristics of the wells in that region.

     Additional  development  drilling  in 2001 is  scheduled  at the  Company's
Siberia Ridge field in Sweetwater County,  Wyoming. The Company first discovered
gas in this area in 1974.  The Company will propose  three 50% working  interest
wells and one 100% working interest well in early 2001.



                                       11

<PAGE>

SYMSKAYA EXPLORATION

     Equity continues to hold its 50% ownership position in Symskaya Exploration
Inc.  Symskaya  was issued a 25 year,  1 million acre License in 1993 to explore
for, develop and produce  hydrocarbons in the Krasnoyarsk Krai in Russia. As oil
prices  have  improved,  and  interest in the region by other oil  companies  is
beginning to increase,  the Company believes that it continues to be in the best
interest of its  shareholders  for Symskaya to hold the License at minimum cost.

     Drilling   and  testing   operations   were   recently   completed  at  the
Averinskaya-150  well,  a well  drilled by a local  government  entity  close to
Symskaya's  license area.  The drilling  contractor is evaluating  data obtained
from the well.  Copies of this data along with the evaluation  will be furnished
to the  Company.  During  2000,  the  Company  made its final  payments  under a
bottom-hole agreement with the drilling contractor.

     Subsequent to year-end,  Symskaya was notified by local authorities that it
must either  increase  the level of its  operations  in the License area or face
possible termination of its License. There is no provision in Symskaya's License
for termination on the grounds suggested by the local authorities. Barring major
developments  from the Averinskaya well and changes in Russian federal and local
policies  regarding  production  sharing,  further  attempts to drill Symskaya's
prospect or to resist governmental termination of is License is unlikely without
additional  outside  financing.  Symskaya  has  been  unable  thus  far to  find
additional  partners  and/or  financing.  Further  discussion of this venture is
found in Footnotes 6 and 9 in the financial statements.




DELIVERY COMMITMENTS

     The Company is not obligated to provide any fixed or determinable  quantity
of oil or gas in the future under any existing contracts or agreements.

ITEM 3. LEGAL PROCEEDINGS

     No material legal proceedings are pending.

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

     During the fourth  quarter of the fiscal year  covered by this  report,  no
matters were  submitted to the security  holders for a vote, and no proxies were
solicited.



                                       12

<PAGE>



                                     PART II

ITEM 5. MARKET FOR THE COMPANY'S COMMON STOCK AND RELATED MATTERS

     The  Company's  stock is traded on the  over-the-counter  market and quoted
over the NASDAQ  National  Market  System  using the symbol  EQTY.  High and low
closing prices for 2000 and 1999 are as follows:



Quarter                                      High                   Low
-------                                      ----                   ---
2000 - 4th                                  $3.50                  $2.28
       3rd                                  $3.66                  $2.19
       2nd                                  $2.94                  $1.50
       1st                                  $2.13                  $1.25

1999 - 4th                                  $1.53                  $1.00
       3rd                                  $1.50                  $1.13
       2nd                                  $1.63                  $1.00
       1st                                  $1.56                  $0.91


     The  approximate  number of  registered  stockholders  of the Company as of
January 31, 2001 is 1,500.

     No unregistered  equity  securities of the registrant have been sold during
the period covered by this report.


                                       13

<PAGE>




ITEM 6. Selected Financial Data
<TABLE>
<CAPTION>

                                   2000           1999           1998            1997            1996
                                   ----           ----           ----            ----            ----

<S>                          <C>            <C>            <C>             <C>             <C>
Oil and Gas Sales ........   $ 24,316,369   $ 15,434,537   $ 12,720,876    $ 16,457,048    $ 16,115,125

Other Income .............      1,082,653        334,980        377,282       1,023,037         312,759

Lease Operating
Costs ....................      6,726,769      5,948,055      6,233,955       5,940,808       5,912,128

Depreciation, Depletion
and Amortization .........      3,808,777      4,072,278      5,029,119       4,675,411       4,292,237

Impairment of
Proved Oil and
Gas Properties ...........        368,543        313,751      4,015,158         411,894         237,279

Equity Loss and Impairment
of Investment in Symskaya
Exploration, Inc. ........        174,432        169,933        446,758         356,661       9,204,394

3-D Seismic ..............        979,028         35,200        431,075         626,525         757,964

Exploration
Expense ..................      2,513,916      1,566,521      2,383,163       3,026,550       2,336,405

General and
Administrative ...........      1,897,190      1,743,590      1,914,590       2,048,194       2,030,811

Net Income (Loss) ........      5,164,071        403,521     (5,814,884)       (211,156)     (5,502,646)

Basic
Net Income (Loss)
Per Common Share .........   $        .41   $        .03   $       (.46)   $       (.02)   $       (.43)
                             ============   ============   ============    ============    ============

Diluted
Net Income (Loss)
Per Common Share .........   $        .40   $        .03   $       (.46)   $       (.02)   $       (.43)
                             ============   ============   ============    ============    ============


Total Assets .............   $ 47,797,711   $ 46,117,335   $ 47,271,168    $ 53,541,639    $ 50,181,437

Long-Term Debt ...........   $  8,500,000   $ 15,000,000   $ 16,500,000    $ 13,978,830    $  8,878,830

</TABLE>



                                       14

<PAGE>



ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

     GENERAL.  The  profitability of the Company's  operations in any particular
accounting period will be directly related to the average realized prices of oil
and gas sold, the volume of oil and gas produced and the results of acquisition,
development and exploration  activities.  The average realized prices of oil and
gas will  fluctuate  from one period to another  due to market  conditions.  The
aggregate  amount of oil and gas produced may fluctuate based on development and
exploitation  of oil and gas  reserves  and  other  factors.  Production  rates,
value-based  production taxes, labor and maintenance expenses are expected to be
the  principal  influences  on  operating  costs.  Accordingly,  the  results of
operations of the Company may fluctuate from period to period.

     OIL AND GAS RESERVES.  Estimates of reserve  quantities  and related future
net cash flows are calculated using unescalated  year-end oil and gas prices and
operating  costs,  and may be subject to substantial  fluctuations  based on the
prices in effect at the end of each  year.  The  following  table  sets  forth a
comparison  of  year-  end  reserves,   the  weighted  average  prices  used  in
calculating  estimated  reserve  quantities  and future net cash flows,  pre-tax
future  net cash  flows  discounted  at 10%,  and per  barrel of oil  equivalent
discounted  cash  flows  at the  end of  2000,  1999  and  1998  (quantities  in
thousands, except for pricing and per barrel of oil equivalent amounts):


                      Year-end                                          SEC-10
                   proved reserves             Year-end        SEC-10   pre-tax
               Oil      Gas                     prices         pre-tax  values
             (MMBLS)   (MMCF)     BOE*       Oil       Gas     values   per BOE
             -------   ------     ----       ---       ---     ------   -------

12/31/00      9,129    16,991    11,961     $23.78   $10.39   $121,890   $10.19

12/31/99      9,293    16,331    12,015     $22.99   $ 1.93   $ 63,366   $ 5.27

12/31/98      6,193    19,010     9,361     $10.80   $ 1.95   $ 25,210   $ 2.69

* - gas converted at 6,000 Mcf per barrel.



                                       15

<PAGE>



     Reserve revisions occur when the economic limit of a property is lengthened
or shortened due to changes in commodity pricing. The following excerpt from the
footnotes to the Company's financial statements shows the effect of changing oil
prices on the volume of oil reserves (shown in thousands of barrels):

                                                   Year ended December 31,
                                              2000         1999         1998
                                              ----         ----         ----

Proved oil reserves (000's):
Beginning of year                            9,293        6,193        8,420
Revisions of previous estimates                203        3,442       (1,896)
Extensions and discoveries                     503            6          361
Improved recovery                              190            -            -
Acquisition of minerals in place                46          563            -
Sales of minerals in place                    (440)        (249)           -
Production                                    (666)        (662)        (692)
                                             -----        -----        -----
End of year                                  9,129        9,293        6,193
                                             =====        =====        =====

     As oil prices  increased only slightly from year-end 1999 to year- end 2000
($22.99 vs.  $23.78,  respectively),  revisions due to price changes during 2000
were lower than in previous  years.  The revisions of 3,442,000 and  (1,896,000)
barrels in 1999 and 1998, respectively, were primarily price-related.

     During the early winter of 2000-2001,  gas prices reached record highs. The
average index price for the Company's gas reserves was $10.39 per Mcf at the end
of 2000, compared to $1.93 per Mcf at the end of 1999. Accordingly, the majority
of the Company's upward revision of gas volumes at year-end 2000 of 1.28 Bcf was
due primarily to higher year-end prices.

     Excluding revisions to previous estimates,  the Company's 2000 drilling and
acquisition  activities added 913,000 barrels of oil equivalent reserves, 97% of
2000 total oil and gas  production.  Subsequent  to year-end  2000,  the Company
entered into an agreement to acquire approximately 250,000 barrels of proved oil
reserves,  with  an  effective  date of  December  1,  2000.  The  reserves  are
associated with several producing wells located adjacent to the Company's Ashley
Valley  field  in  Utah.  The  Company  has a 100%  working  interest  in  these
properties.  The  reserves  acquired  have not been  included in  year-end  2000
reserve figures.

     1999 drilling and acquisition activities,  which were curtailed for much of
the year,  added  663,000  barrels of oil  equivalent  to the  Company's  proved
reserve  base,  replacing  66% of 1999  production.  In 1998,  the Company added
779,000 barrels of oil equivalent,  equal to 71% of 1998 oil and gas production.
Further  information  concerning the Company's reserve volumes and values can be
found in Footnote 9 to the financial statements.


                                       16

<PAGE>



     IMPAIRMENT  OF  PROVED  OIL  AND GAS  PROPERTIES.  Statement  of  Financial
Accounting Standards No. 121, Accounting for the Impairment of Long Lived Assets
and for Assets Held for  Disposal,  requires  successful  efforts  companies  to
evaluate the  recoverability  of the carrying  costs of their proved oil and gas
properties by comparing the expected  undiscounted future net revenues from each
producing  field  with  the  related  net  capitalized  costs at the end of each
period.  When the net  capitalized  costs  exceed  the  undiscounted  future net
revenues,  the cost of the  property  is written  down to fair  value,  which is
determined using discounted future net revenues from the producing field.

     During  2000,  the  Company  recorded an  impairment  of proved oil and gas
properties of $368,543  ($230,339 net of tax) associated with certain properties
that  experienced  increased  operating  costs,  declining  production,  reduced
prospectivity due to unsuccessful  drilling,  and other technical  problems that
reduced their economic  reserves or value.  During 1999, the Company recorded an
impairment of proved oil and gas  properties of $313,751  ($196,094 net of tax).
Primarily as a result of depressed  year-end  oil prices,  the Company  recorded
proved property impairment charges of $4,015,158 in 1998.

RESULTS OF OPERATIONS

COMPARISON OF 2000 WITH 1999

     OIL AND GAS PRODUCTION  AND SALES.  Year-long  higher oil prices,  combined
with  record  gas prices  during the early  winter of 2000-  2001,  enabled  the
Company to recognize  record revenues in 2000. Oil and gas sales for the year of
$24,316,369  were 58% higher than those recorded in 1999, as average oil and gas
prices were 52% and 94% higher, respectively.

     Revenues were reduced by $1,048,018  in 2000 by costs  associated  with the
Company's hedging program,  which was instituted in 1999 as a requirement of its
bank  financing  arrangement.  The Company had 400 barrels of oil per day hedged
under a costless collar,  with a floor of $18.00 and a ceiling of $25.30,  which
terminated on September 30, 2000.  The Company had an additional  500 barrels of
oil per day hedged under a second costless collar,  with a floor of $18.00 and a
ceiling of $27.22.  This collar  terminated on December 31, 2000.  The floor and
ceilings  were  based  on the  average  near  month  WTI  price  on the New York
Mercantile Exchange (NYMEX).

     While the Company  may hedge  future  volumes as a means to mitigate  price
risk and/or to ensure the availability of capital to fund its drilling programs,
there are no further  requirements  to hedge under its bank  arrangement.  As of
January 1, 2001,  the  Company  had no volumes of oil or gas  subject to hedging
arrangements.

                                       17

<PAGE>



     After taking into consideration the hedging costs discussed above,  average
oil prices  received  in 2000 were  $26.52 per  barrel,  up 52% from  $17.40 per
barrel in 1999.  Gas prices  were also up  sharply,  averaging  $3.96 per Mcf in
2000,compared  to $2.04  per Mcf in 1999.  Oil  production  rose  slightly  from
662,000  barrels in 1999 to 666,000  barrels in 2000. Gas production in 2000 was
1,661,000  Mcf  compared  to  2,033,000  Mcf last  year.  The  reduction  in gas
production was due in part to the Company's reduced drilling program and reduced
drilling  success in  California  during 2000 and 1999.  Due to some  unexpected
lengthy  repair work on a 14 mile section of a PG&E main line,  the Company also
had  approximately  1 MMCFD  shut-in for most of the third  quarter of 2000.  In
addition, the Company sold all of its gas producing properties that were located
in Texas in 1999.

     OTHER  INCOME.  Included in 2000  revenues  is  $506,000 in non-  recurring
property  sales  recognized in the first  quarter of the year.  The Company also
recognized gains on the sale of securities and revenue from property  promotions
that were non-recurring.

     LEASE OPERATING COSTS.  Operating costs rose 13% from 1999 levels on a cost
basis, and 20% on a barrel of oil equivalent basis. The most significant  factor
leading to this  increase was a function of higher oil and gas prices  resulting
in higher value-based  production taxes. In addition, the Company's higher-cost,
lower- margin oil properties were on production the entire year 2000,  whereas a
portion of these properties were shut-in during part of 1999.

     DEPRECIATION,  DEPLETION  AND  AMORTIZATION  (DD&A).  DD&A per unit charges
decreased slightly from $4.07 per BOE in 1999 to $4.04 per BOE in 2000.

     IMPAIRMENT  OF PROVED  OIL AND GAS  PROPERTIES.  As  discussed  previously,
included in the statement of operations  for 2000 and 1999 are non-cash  charges
for the  impairment  of proved oil and gas  properties in the amount of $368,543
and $313,751, respectively.

     3-D SEISMIC AND EXPLORATION  EXPENSES.  The Company participated in two new
3-D seismic surveys during 2000. The first was a 25 mile survey at the Company's
Rancho Colusa prospect in the Sacramento  Basin of California.  The second was a
20 mile survey at the Company's Beaver Creek prospect in North Dakota. The costs
of both surveys were charged to expense during the year.  The Company  curtailed
its use of 3-D seismic in 1999 in  response  to low oil prices  during the first
part of the year.

     Higher  exploration  costs in 2000 reflected higher dry hole costs incurred
during the year.  While the Company  drilled only one more dry hole in 2000 than
in 1999, the wells drilled in 2000 carried a higher working  interest than those
of the previous year. Dry hole costs in 2000 were approximately  $800,000 higher
than the amount recorded in 1999.


                                       18

<PAGE>




     GENERAL AND ADMINISTRATIVE  EXPENSES.  General and administrative  expenses
increased  9% from 1999 levels.  The  increase  was due to higher  compensation,
employee  relocation,  and  shareholder  expenses.  During  the  low  oil  price
environment  of  early  1999,  the  Company  froze  salaries,  reduced  employee
benefits, and made other compensation reductions.  As oil prices have increased,
the Company has restored some of these  previous  reductions.  In addition,  the
Company recorded overhead expenses associated with its new Cody, Wyoming office.

     INTEREST AND INCOME  TAXES.  Lower  interest  costs in 2000  reflect  lower
balances  outstanding  under the Company's  credit  facility.  During 2000,  the
Company  reduced  its credit  facility  debt by  $6,500,000.  Income tax expense
recorded for both periods reflect the results of operations,  as well as various
credits available to the Company.  Details  concerning the components of the tax
provision can be found in Footnote 3 to the financial statements.

COMPARISON OF 1999 WITH 1998

     OIL AND GAS PRODUCTION AND SALES. Oil and gas sales increased more than 20%
in 1999 over 1998  levels.  Higher oil and gas prices  were  offset  somewhat by
decreases in both oil and gas production. Total revenues increased 20% from 1998
to 1999.

     Oil  production  decreased  4%  in  1999,  as a  number  of  the  Company's
high-cost,  low-margin oil wells were shut-in during the first several months of
the year.  Oil production was 662,000  barrels,  compared to 692,000  barrels in
1998. Gas production  decreased 17% to 2.0 Bcf in 1999 from 2.4 Bcf in 1998. Gas
production  declined  primarily  as a result of reduced  drilling in  California
during 1998 and 1999, as well as the sale of the Company's  Texas gas properties
during the fourth quarter of 1999.

     While  average  year-end  oil prices in 1999 were more than double those of
year-end  1998,  the average price received for the entire year increased a more
modest 43%.  Higher second half prices were offset by  abnormally  low prices in
the first half of the year. The Company's average oil price for the full year of
1999 was $17.40  compared to $12.16 per barrel  realized during 1998. Gas prices
were also higher,  averaging  $2.04 per Mcf in 1999 compared to $1.83 per Mcf in
1998.

     LEASE  OPERATING  COSTS.  Lease operating costs decreased 5% over the prior
year. Higher per unit costs were offset by reduced volumes.  Per unit costs rose
as the Company  recorded higher  value-based  production  taxes  associated with
higher oil prices.


                                       19

<PAGE>



     DEPRECIATION,  DEPLETION  AND  AMORTIZATION  (DD&A).  DD&A per unit charges
decreased  from  $4.58  per BOE in 1998 to $4.07  per BOE in 1999.  The  primary
reason for the per unit decrease was the elimination of approximately $4 million
from the Company's  depletable base through a property  impairment charge in the
fourth  quarter of 1998. In addition,  higher oil prices  enabled the Company to
record positive reserve  revisions,  which in turn decreased DD&A rates for many
of the Company's oil properties.

     IMPAIRMENT  OF PROVED  OIL AND GAS  PROPERTIES.  As  discussed  previously,
included in the statement of operations  for 1999 and 1998 are non-cash  charges
for the  impairment  of proved oil and gas  properties in the amount of $313,751
and $4,015,158, respectively.

     EQUITY  LOSS IN  SYMSKAYA  EXPLORATION,  INCORPORATED.  The equity  loss in
Symskaya  Exploration  decreased by $276,825 during 1999. As operations continue
to be curtailed at the project,  Symskaya terminated its only domestic employee,
and further  reduced  administrative  expenses in 1999.  The 1998 loss  included
$125,000 of accrued  interest  income on a senior note between  Symskaya and the
Company that had been recognized in prior periods. The 1998 amount also included
the Company's share of a bottom hole contribution that was not repeated in 1999.

     3-D SEISMIC  AND  EXPLORATION  EXPENSES.  Lower  exploration  costs in 1999
resulted from the Company's reduced drilling  program.  During 1999, the Company
incurred  approximately  $470,000 in dry hole costs  compared  to  approximately
$875,000  in 1998.  In  addition,  as a result  of the  Company's  cost  cutting
measures  in  1999,  the  Company  reduced  other  exploratory   geological  and
administrative costs by 23%.

     In 1998, the Company incurred 3-D seismic charges in the amount of $431,000
associated with its Sequoia  prospect in California.  The Company  curtailed its
use of 3-D seismic in 1999 in  response to low oil prices  during the first part
of the year.

     GENERAL  AND  ADMINISTRATIVE  EXPENSES.  The  Company  cut its  general and
administrative  expenses by $171,000,  or 9%, from 1998  levels.  In response to
abnormally low oil prices in the beginning of 1998, the Company made a concerted
effort to reduce  overhead costs through staff  reductions,  lower  compensation
costs, reduced employee benefits and other costs.

     INTEREST AND INCOME  TAXES.  Lower  interest  costs in 1999  reflect  lower
average  interest  rates on the debt  outstanding  under  the  Company's  credit
facility.  The income tax expense  (benefits)  recorded for both periods reflect
the results of operations,  as well as various credits available to the Company.
Details  concerning the components of the tax provision can be found in Footnote
3 to the financial statements.

                                       20

<PAGE>



LIQUIDITY AND CAPITAL RESOURCES

     The Company  took  advantage of higher oil and gas prices,  increased  cash
flows,  and positive  financial  results in 2000, to continue to strengthen  its
balance sheet and improve its financial flexibility. The Company's cash balances
increased by 118% from December 31, 1999.  Working  capital at December 31, 2000
was 67% higher than that at December 31, 1999.  The  Company's  ratio of current
assets to current liabilities also improved,  reaching 2.53 to 1 at December 31,
2000  compared  to 2.40 to 1 at the end of 1999.  As cash  flow  from  operating
activities more than doubled in 2000, the Company  reduced its outstanding  debt
by 43%.

     Higher  cash flows also  enabled  the  Company to expand its  drilling  and
workover programs in 2000. Capital expenditures  increased 31% over 1999 levels,
reaching  approximately  $3.1  million  in  2000.  The  Company's  2000  capital
expenditures were partially offset by proceeds from the sale of certain non-core
oil and gas properties.

     In September of 1999, the Company obtained a $50 million reducing revolving
credit facility with Bank One Texas, N.A. The facility has an initial commitment
of $17  million,  and the  maturity  date of the  facility is September 9, 2002,
three years from the date of closing.  The new  facility  has a LIBOR or a prime
interest rate option;  the weighted average interest rate on debt outstanding at
December 31, 2000 was 8.57 percent.

     The  Company's  commitment  under  its  credit  facility  is  subject  to a
redetermination  as of May 1 and November 1 of each year, with estimated  future
oil and gas prices used in the evaluation determined by the Company's lender. As
of  December  31,  2000,  the  Company  had  $8,500,000,  or 50%,  of  remaining
availability on the facility. The Company is in compliance with all its facility
covenants.

     The Company  utilized its higher cash flows in 2000 to reduce the amount of
debt  outstanding,  making principal  reductions of $6,500,000  during the year.
Excess  cash flows in 1999  enabled the  Company to make  principal  payments of
$1,500,000 during that year. Should the Company have cash flows in excess of its
capital requirements for 2001,  additional reductions of outstanding debt during
the year may occur.

     Cash flow from operating activities of $10,319,912 was 135% higher than the
amount recorded  during 1999.  While increased net income was the primary driver
for the increase, the following items impacted the amount as well.

     At the end of 1999,  the  Company  had  approximately  $5.8  million in net
operating loss  carryforwards,  all of which was utilized  during 2000 to offset
taxable income.  As a result,  deferred income taxes increased by  approximately
$1.9 million year-to-year.


                                       21

<PAGE>




     As gas prices  reached  record  levels in  November  and  December of 2000,
resulting in higher  accrued  revenues,  the  Company's  accounts  receivable at
year-end  were  approximately  $2.1 million  higher than at year-end  1999.  The
increase in accounts payable was primarily due to the timing of invoice payments
by the Company. In addition,  the assumption of operations in the Big Horn Basin
led to  increases  in both  receivables  and  payables  as the  Company  assumed
responsibilities for the payment of invoices on behalf of its partners.

     The Company believes that existing cash balances,  cash flow from operating
activities, and funds available under the Company's credit facility will provide
adequate resources to meet its capital and exploration  spending  objectives for
2001.  The Company has adequate  liquidity to maintain  its  operations  as they
currently exist.

     COMMITMENTS.  Under the terms of Symskaya's  License and Production Sharing
Agreement  (PSA),  Equity  was  committed  to  advance  Symskaya a minimum of $6
million  during  the first 5 contract  years,  representing  50% of the  minimum
expenditures  called for in the License and PSC, with the remainder being funded
by Leucadia National  Corporation,  Symskaya's other 50% shareholder.  The first
contract year began  November 15, 1993.  The amounts spent through  November 14,
1998, the end of the fifth contract year, have satisfied all minimum commitments
required.  Further  discussion  of this venture is found in ITEM 2.  PROPERTIES,
under the caption  PRESENT  ACTIVITY,  and in Footnotes 6 and 9 to the financial
statements.

     OTHER ITEMS.  The Company has reviewed  all  recently  issued,  but not yet
adopted accounting standards in order to determine their effects, if any, on the
results of  operations  or  financial  position  of the  Company.  Based on that
review,  the Company  believes that none of these  pronouncements  will have any
significant effects on current or future earnings or operations.


                                       22

<PAGE>


FORWARD LOOKING STATEMENTS

     The preceding  discussion and analysis  should be read in conjunction  with
the consolidated  financial statements,  including the notes thereto,  appearing
elsewhere  in  this  annual  report  on Form  10-K.  Except  for the  historical
information  contained  herein,  the matters  discussed  in this  annual  report
contain  forward-looking  statements  within the  meaning of Section  27a of the
Securities Act of 1933, as amended,  and Section 21e of the Securities  Exchange
Act of 1934, as amended, that are based on management's beliefs and assumptions,
current  expectations,  estimates,  and  projections.  Statements  that  are not
historical facts, including without limitation statements which are preceded by,
followed by or include the words "believes,"  "anticipates," "plans," "expects,"
"may," "should" or similar expressions are forward-looking  statements.  Many of
the factors that will  determine  the  Company's  future  results are beyond the
ability of the Company to control or predict.  These  statements  are subject to
risks and uncertainties  and,  therefore,  actual results may differ materially.
All subsequent written and oral forward- looking statements  attributable to the
Company,  or persons  acting on its behalf,  are  expressly  qualified  in their
entirety by these cautionary statements. The Company disclaims any obligation to
update any  forward-looking  statements  whether as a result of new information,
future events or otherwise.

     Important  factors  that may affect  future  results  include,  but are not
limited to: drilling success,  the risk of a significant  natural disaster,  the
inability  of the  Company to insure  against  certain  risks,  fluctuations  in
commodity  prices,  the inherent  limitations in the ability to estimate oil and
gas  reserves,  changing  government  regulations,  as  well as  general  market
conditions,  competition and pricing, and other risks detailed from time to time
in the  Company's SEC reports,  copies of which are available  upon request from
the Company's investor relations department.


     ITEM 7(a).  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. The
answers to items listed under Item 7(a) are inapplicable or negative.



                                       23

<PAGE>









ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                        Report of Independent Accountants

To the Stockholders and Board of
Directors of Equity Oil Company:

     In our opinion,  the financial  statements as listed in Item 14 (a) of this
Form 10-K, present fairly, in all material  respects,  the financial position of
Equity Oil  Company  (the  "Company")  at December  31,  2000 and 1999,  and the
results of its  operations and its cash flows for each of the three years in the
period  ended  December 31,  2000,  in  conformity  with  accounting  principles
generally accepted in the United States of America.  These financial  statements
are the  responsibility of the Company's  management;  our  responsibility is to
express  an  opinion  on these  financial  statements  based on our  audits.  We
conducted our audits of these  statements in accordance with auditing  standards
generally  accepted in the United  States of America  which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements,  assessing the accounting  principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.



                                    PricewaterhouseCoopers LLP
                                    January 30, 2001

                                       24

<PAGE>

<TABLE>
<CAPTION>



                               EQUITY OIL COMPANY
                                 BALANCE SHEETS
                           December 31, 2000 and 1999



        ASSETS
                                                                        2000             1999
                                                               -------------    -------------
<S>                                                            <C>              <C>
Current assets:
   Cash and cash equivalents ...............................   $   2,190,548    $   1,006,602
   Accounts receivable .....................................       5,012,331        2,896,558
   Operator advances .......................................         459,606          485,803
   Federal, state and foreign income
     taxes receivable ......................................         107,490          221,199
   Deferred income taxes ...................................          79,896           19,632
   Other current assets ....................................          58,667          277,595
                                                               -------------    -------------
           Total current assets ............................       7,908,538        4,907,389
                                                               -------------    -------------

Property and equipment, at cost (successful efforts method):
   Unproved oil and gas properties .........................       2,601,314        2,388,819
   Proved oil and gas properties:
     Developed leaseholds ..................................      10,209,296       10,265,095
     Intangible drilling costs .............................      65,676,544       64,282,028
     Equipment .............................................      26,433,032       25,671,687
   Other property and equipment ............................       1,111,619          966,997
                                                               -------------    -------------
                                                                 106,031,805      103,574,626
        Less accumulated depreciation,
           depletion and amortization ......................     (66,509,569)     (62,800,100)
                                                               -------------    -------------
                                                                  39,522,236       40,774,526
                                                               -------------    -------------

Other assets ...............................................         366,937          435,420
                                                               -------------    -------------

           Total assets ....................................   $  47,797,711    $  46,117,335
                                                               =============    =============
   LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable ........................................   $   2,303,102    $   1,541,834
   Accrued liabilities .....................................         189,912          177,550
   Federal, state and foreign income
     taxes payable .........................................         632,435          321,981
                                                               -------------    -------------
           Total current liabilities .......................       3,125,449        2,041,365
                                                               -------------    -------------


Revolving credit facility ..................................       8,500,000       15,000,000
Deferred income taxes ......................................       3,588,575        1,667,648
                                                               -------------    -------------
                                                                  12,088,575       16,667,648
                                                               -------------    -------------
Commitments (Note 6)

Stockholders' equity:
   Common stock, $1 par value:
     Authorized: 25,000,000 shares
     Issued: 12,819,212 shares in 2000
        and 12,808,040 shares in 1999 ......................      12,819,212       12,808,040
   Paid in capital .........................................       3,719,865        3,719,743
   Retained earnings .......................................      16,572,912       11,408,841
                                                               -------------    -------------
                                                                  33,111,989       27,936,624
   Less treasury stock, at cost ............................        (528,302)        (528,302)
                                                               -------------    -------------
                                                                  32,583,687       27,408,322
                                                               -------------    -------------
        Total liabilities and
           stockholders' equity ............................   $  47,797,711    $  46,117,335
                                                               =============    =============

</TABLE>

     The accompanying notes are an integral part of the financial statements

                                       25


<PAGE>


<TABLE>
<CAPTION>


                               EQUITY OIL COMPANY
                            STATEMENTS OF OPERATIONS
              for the years ended December 31, 2000, 1999 and 1998




                                                       2000          1999           1998
                                                  ------------   ------------   ------------

<S>                                               <C>            <C>            <C>
Revenues:
    Oil and gas sales .........................   $ 24,316,369   $ 15,434,537   $ 12,720,876
    Other income ..............................      1,082,653        334,980        457,107
                                                  ------------   ------------   ------------
                                                    25,399,022     15,769,517     13,177,983
                                                  ------------   ------------   ------------

Expenses:
    Leasehold operating costs .................      6,726,769      5,948,055      6,233,955
    Depreciation, depletion and amortization ..      3,808,777      4,072,278      5,029,119
    Impairment of proved oil and gas properties        368,543        313,751      4,015,158
    Equity loss in Symskaya Exploration, Inc. .        174,432        169,933        446,758
    Leasehold abandonments ....................         14,820         68,965        162,754
    3-D seismic ...............................        979,028         35,200        431,075
    Exploration ...............................      2,513,917      1,566,521      2,383,163
    General and administrative ................      1,897,190      1,743,590      1,914,590
    Interest ..................................      1,110,062      1,214,600      1,298,061
                                                  ------------   ------------   ------------
                                                    17,593,538     15,132,893     21,914,633
                                                  ------------   ------------   ------------

         Income (loss) before income taxes ....      7,805,484        636,624     (8,736,650)

Provision for (benefit from) income taxes .....      2,641,413        233,103     (2,921,766)
                                                  ------------   ------------   ------------

         Net income (loss) ....................   $  5,164,071   $    403,521   $ (5,814,884)
                                                  ============   ============   ============

Basic net income (loss)
   per common share ...........................   $        .41   $        .03   $       (.46)
                                                  ============   ============   ============

Basic weighted
   average shares outstanding .................     12,646,101     12,638,377     12,623,041
                                                  ============   ============   ============

Diluted net income (loss)
   per common share ...........................   $        .40   $        .03   $       (.46)
                                                  ============   ============   ============

Diluted weighted
   average shares outstanding .................     12,875,750     12,638,377     12,623,041
                                                  ============   ============   ============

</TABLE>



     The accompanying notes are an integral part of the financial statements

                                       26

<PAGE>


<TABLE>
<CAPTION>


                               EQUITY OIL COMPANY
                  STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
              for the years ended December 31, 2000, 1999 and 1998


                                                   Common Stock           Paid in       Retained           Treasury Stock
                                               Shares        Amount       Capital       Earnings         Shares         Cost
                                               ------        ------       -------       --------         ------         ----

<S>                                         <C>           <C>           <C>            <C>               <C>       <C>
Balance at January 1, 1998 .............    12,761,100    $12,761,100   $ 3,667,707    $16,820,204       164,600   $  (528,302)
Net (loss) .............................                                                (5,814,884)
Common stock issued for
      services, $2.42 per share ........        32,940         32,940        46,786
                                            ----------    -----------   -----------    -----------   -----------   -----------

Balance at December 31, 1998 ...........    12,794,040    $12,794,040   $ 3,714,493    $11,005,320       164,600   $  (528,302)
Net income .............................                                                   403,521
Common stock issued for
      services, $1.38 per share ........        14,000         14,000         5,250
                                           -----------    -----------   -----------    -----------   -----------   -----------

Balance at December 31, 1999 ...........    12,808,040    $12,808,040   $ 3,719,743    $11,408,841       164,600   $  (528,302)
Net income .............................                                                 5,164,071
Common stock issued on
      exercise of stock option .........        11,172         11,172        (3,731)
Income tax benefit from exercise
      of stock options .................                                      3,853
                                           -----------    -----------   -----------    -----------   -----------   -----------

Balance at December 31, 2000 ...........    12,819,212    $12,819,212   $ 3,719,865    $16,572,912       164,600   $  (528,302)
                                           ===========    ===========   ===========    ===========   ===========   ===========

</TABLE>



     The accompanying notes are an integral part of the financial statements
                                       27

<PAGE>


<TABLE>
<CAPTION>

                               EQUITY OIL COMPANY
                            STATEMENTS OF CASH FLOWS
              for the years ended December 31, 2000, 1999 and 1998

                                                             2000            1999           1998
                                                             ----            ----           ----
Cash flows from operating activities:
<S>                                                    <C>             <C>             <C>
Net income (loss) ..................................   $  5,164,071    $    403,521    $ (5,814,884)
Adjustments to reconcile net income (loss)
     to net cash provided by operating activities:
       Depreciation, depletion and amortization ....      3,808,777       4,072,278       5,029,119
       Impairment of proved oil and gas properties .        368,543         313,751       4,015,158
       Equity loss in Symskaya Exploration, Inc. ...        174,432         169,933         446,758
       (Gain) loss on property dispositions ........       (482,191)        (12,343)        325,558
       Change in other assets ......................         94,619          71,151          89,938
       Deferred income tax expense (benefit) .......      1,860,663          24,733      (3,209,749)
       Common stock issued for services ............           --            19,250          79,726
                                                       ------------    ------------    ------------
                                                         10,988,914       5,062,274         961,624
       Increase (decrease) from changes in:
          Accounts receivable and operator advances      (2,089,576)       (686,201)        817,827
          Other current assets .....................        218,928          41,309         195,809
          Accounts payable and accrued liabilities .        773,630        (210,950)        294,202
          Income taxes payable/receivable ..........        428,016         179,796        (344,842)
                                                       ------------    ------------    ------------
           Net cash provided by operating activities     10,319,912       4,386,228       1,924,620
                                                       ------------    ------------    ------------

Cash flows from investing activities:
Advances to Symskaya Exploration, Inc. .............       (174,432)       (169,933)       (319,210)
Capital expenditures ...............................     (3,145,188)     (2,406,251)     (4,126,630)
Proceeds from sale of oil and gas properties .......        702,349         474,486          65,725
                                                       ------------    ------------    ------------
           Net cash used in investing activities ...     (2,617,271)     (2,101,698)     (4,380,115)
                                                       ------------    ------------    ------------
Cash flows from financing activities:
Payments on revolving credit facility ..............     (6,500,000)    (18,000,000)           --
Borrowings under revolving credit facility .........           --        16,500,000       2,521,170
Payment of revolving credit facility fees ..........        (26,136)       (222,404)           --
Proceeds from stock option exercises ...............          7,441            --              --
                                                       ------------    ------------    ------------
           Net cash provided by (used in)
               financing activities ................     (6,518,695)     (1,722,404)      2,521,170
                                                       ------------    ------------    ------------

Net increase in cash and cash equivalents ..........      1,183,946         562,126          65,675

Cash and cash equivalents at beginning of year .....      1,006,602         444,476         378,801
                                                       ------------    ------------    ------------
Cash and cash equivalents at end of year ...........   $  2,190,548    $  1,006,602    $    444,476
                                                       ============    ============    ============


Supplemental  disclosures  of cash flow  information:

Cash paid during the year for:
     Income taxes ..................................    $   334,796    $    148,938    $     495,882
     Interest  .....................................    $ 1,110,062    $  1,214,600    $   1,298,061

Supplemental disclosures on
   non-cash investing activities:

Non-cash proceeds from oil and gas property exchange    $         -    $    366,699    $           -

</TABLE>


     The accompanying notes are an integral part of the financial statements

                                       28

<PAGE>



                          NOTES TO FINANCIAL STATEMENTS

1.       Significant Accounting Policies:
         -------------------------------

         A.    The Company:
               -----------

               Equity  Oil  Company  (the  Company)  is a  Colorado  corporation
               engaged in oil and gas exploration, development and production in
               the United States, Canada and Russia.

         B.    Cash and Cash Equivalents:
               -------------------------

               The  Company   considers  all  highly  liquid  debt   instruments
               purchased with an original maturity of three months or less to be
               cash equivalents.

         C.    Accounting for Oil and Gas Operations:
               -------------------------------------

               The Company  reports  using the  "successful  efforts"  method of
               accounting  for oil and gas  operations.  The use of this  method
               results in  capitalization  of those  costs  identified  with the
               acquisition,  exploration  and  development  of  properties  that
               produce revenue or, if in the development  stage, are anticipated
               to produce  future  revenue.  Costs of  unsuccessful  exploration
               efforts are expensed in the period in which it is determined that
               such  costs  are  not   recoverable   through  future   revenues.
               Exploratory  geological  and  geophysical  costs are  expensed as
               incurred.  The costs of development wells are capitalized whether
               productive or nonproductive.

               The Company annually assesses  undeveloped oil and gas properties
               for impairment.  Any impairment recorded represents  management's
               estimate of the decline in realizable  value  experienced  during
               the  year.  The  unamortized  costs of  proved  properties  which
               management  determines are not recoverable are written off in the
               period such  determination is made. The net capitalized  costs of
               proved oil and gas  properties  are  measured for  impairment  in
               accordance  with  Statement  of  Financial  Accounting  Standards
               (SFAS) No. 121. (See Note 2).

               The provision for  depreciation,  depletion and  amortization  of
               proved  oil and gas  properties  is  computed  using the units of
               production  method,   based  on  proved  oil  and  gas  reserves.
               Estimated  dismantlement,  restoration and abandonment  costs are
               expected to be offset by estimated  residual  values of lease and
               well  equipment.  Thus,  no  accrual  for  such  costs  has  been
               recorded.



                                    Continued

                                       29

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


1.       Significant Accounting Policies, Continued:
         -------------------------------

         D.    Concentration of Credit Risk:
               ----------------------------

               Substantially all of the Company's accounts receivable are within
               the oil and gas industry,  primarily  from  purchasers of oil and
               gas (see Note 5).  Although  diversified  within many  companies,
               collectibility is dependent upon the general economic  conditions
               of the industry.  The receivables are not collateralized  and, to
               date, the Company has experienced minimal bad debts. The majority
               of the  Company's  cash  and  cash  equivalents  is  held  by one
               financial institution located in Salt Lake City, Utah, and by one
               financial institution in Calgary, Alberta.

         E.    Equipment:
               ---------

               The provision for  depreciation of equipment  (other than oil and
               gas equipment) is based on the  straight-line  method using asset
               lives as follows:

                        Office equipment                   10 years
                        Automobiles                         3 years

               When equipment is retired or otherwise  disposed of, the cost and
               accumulated  depreciation  are removed  from the accounts and any
               resulting   gain  or  loss  is  included  in  the   statement  of
               operations.

         F.    Foreign Operations:
               ------------------

               Operations and  investments in Canada have been  translated  into
               U.S. dollar equivalents at the average rate of exchange in effect
               at the transaction date.  Foreign exchange gains or losses during
               2000, 1999 and 1998 were not material.


                                    Continued

                                       30

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


1.       Significant Accounting Policies, Continued:
         -------------------------------

         G.    Net Income (Loss) Per Common Share:
               ----------------------------------

               Basic earnings  per share  is computed by dividing the net income
               (loss)by the weighted average number of common shares outstanding
               Diluted earnings per share is computed by dividing the net income
               (loss) by the sum of the weighted average number of common shares
               and the effect of dilutive  unexercised  stock options.  Dilutive
               options to purchase  approximately 536,500 shares of common stock
               at  prices  of $1.06 to  $1.71  per  share  were  outstanding  at
               December 31, 2000 and were included in the computation of diluted
               net income per share.  Options to purchase 1,052,000,  1,434,000,
               and 1,203,000 shares of common stock at prices ranging from $1.06
               to $5.50 per share were  outstanding  at December 31, 2000,  1999
               and 1998, respectively,  but were not included in the computation
               of diluted  earnings per share because the effect would have been
               antidilutive.

         H.    Estimates:
               ---------

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

               Significant  estimates with regard to these financial  statements
               include the  estimates of proved oil and gas reserve  volumes and
               future  dismantlement  and abandonment  costs used in determining
               amortization and impairment provisions.

         I.    Hedging:
               -------

               The Company  enters  into  futures  contracts  to hedge the price
               risks  associated with oil and gas sales.  The Company defers the
               impact of changes in the market  value of these  contracts  until
               such time as the hedged  transaction is completed.  At that time,
               the impact of the changes in the fair value of these contracts is
               recognized in income.  Periodic gains or losses  associated  with
               hedges are included in income as they occur.

               To  qualify  as a hedge,  the item to be hedged  must  expose the
               Company to oil and gas price risk and the hedging instrument must
               reduce that  exposure.  Any contracts held or issued that did not
               meet the  requirements of a hedge would be recorded at fair value
               in  the  balance  sheet  and  any  changes  in  that  fair  value
               recognized in income. If a contract designated as

                                    Continued

                                       31

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


1.       Significant Accounting Policies, Continued:
         -------------------------------

          a hedge of price risk is terminated,  the  associated  gain or loss is
          deferred  and  recognized  in income in the same  manner as the hedged
          item.  Also,  a  contract  designated  as a  hedge  of an  anticipated
          transaction  that is no longer  likely to occur  would be  recorded at
          fair value and the  associated  changes in fair  value  recognized  in
          income.

          Under the terms of its  revolving  credit  facility,  the  Company was
          required  to hedge at least 50%,  but not more than 75%,  of its daily
          oil  production at a price not lower than the lowest price used in the
          bank's price deck,  for a period  between 12 and 18 months  commencing
          with the effective date of the facility,  which was September 9, 1999.
          The Company had 120 days after the closing date in  September  1999 to
          have the hedge or hedges in place. The Company entered into one collar
          agreement  for 12 months  effective  October  1,  1999,  covering  400
          barrels  per day with a floor at $18.00  per  barrel  and a ceiling at
          $25.30 per barrel.  The Company entered into a second collar agreement
          for 12 months effective January 1, 2000,  covering 500 barrels per day
          with a floor at $18.00 per barrel and a ceiling at $27.22 per barrel.

          As a result of these  hedges,  revenues  were reduced by $1,048,018 in
          2000 and $9,784 in 1999. No hedging transactions occurred in 1998. The
          Company  has  satisfied  all  hedging  requirements  under the  credit
          facility, and had no hedges in place as of January 1, 2001.

2.        Impairment of Proved Oil and Gas Properties:
          -------------------------------------------

     SFAS No.121,  Accounting  for the  Impairment  of Long Lived Assets and for
Assets Held for Disposal,  requires successful efforts companies to evaluate the
recoverability  of the  net  capitalized  costs  of  their  proved  oil  and gas
properties  at a field  level.  The SFAS No.121  impairment  test  compares  the
expected  undiscounted  future net revenues  from each property with the related
net capitalized costs at the end of each period.  When the net capitalized costs
exceed the undiscounted future net revenues,  the carrying value of the property
is written down to fair value,  which is determined using discounted  future net
revenues from the property.

     The Company recorded SFAS No. 121 non-cash  impairment charges of $368,543,
$313,751 and $4,015,158 for 2000, 1999 and 1998, respectively.


                                    Continued

                                       32

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


3.        Income Taxes:
          ------------

     The Company  accounts  for income  taxes in  accordance  with SFAS No. 109,
Accounting  for Income Taxes.  Deferred  income taxes are provided using enacted
tax  rates  applied  to the  difference  between  the tax  basis  of an asset or
liability and its reported  amount in the financial  statements that will result
in taxable or deductible amounts in future years when the reported amount of the
asset or liability is recovered or settled, respectively.

     The provision for (benefit from) income taxes consists of the following:

<TABLE>
<CAPTION>

          Currently payable (receivable):               2000                 1999                1998
                                                        ----                 ----                ----
           <S>                                    <C>                  <C>               <C>
           U.S. income taxes (including
              alternative minimum tax) ......     $    14,924          $      719        $          -
           State income taxes ...............         158,582               5,000               6,500
           Canadian income taxes ............         605,725             336,167             208,046
           Changes in prior years' taxes ....           1,519             (84,050)             73,437
           Deferred tax (benefit) expense ...       1,860,663             (24,733)         (3,209,749)
                                                 ------------          ----------          ----------

                                                   $2,641,413            $233,103         $(2,921,766)
                                                 ============          ==========          ===========

</TABLE>


                                    Continued

                                       33

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued



         3.   Income Taxes, Continued:
              ------------

     The  components  of the net deferred tax  liability as of December 31, 2000
and 1999 were as follows:

                                                  2000            1999
                                                  ----            ----

Deferred tax assets:
  AMT credit carryforward ................   $   269,221    $   312,650
  State income taxes .....................        58,628          1,849
  Deferred compensation ..................        21,268         17,783
  Geological and geophysical costs .......       342,624        600,923
  Accrued interest .......................     1,154,134        893,755
  Foreign tax credit carryforward ........       358,507        491,862
  Equity loss and impairment of investment
    in Symskaya Exploration, Inc. ........     2,909,230      2,844,742
  Net operating loss carryforward ........          --        2,104,119
                                             -----------    -----------
                                               5,113,612      7,267,683
  Valuation allowance ....................      (358,507)      (491,862)
                                             -----------    -----------
  Total deferred tax asset ...............     4,755,105      6,775,821
                                             -----------    -----------

Deferred tax liabilities:
  Deferred income ........................          --           42,719
  Property and equipment .................     8,227,404      8,342,487
  Other assets ...........................        36,380         38,631
                                             -----------    -----------
  Total deferred tax liability ...........     8,263,784      8,423,837
                                             -----------    -----------

Net deferred tax liability ...............   $ 3,508,679    $ 1,648,016
                                             ===========    ===========


     The net  deferred  tax  liability  as of  December  31,  2000  and  1999 is
reflected in the balance sheet as follows:

Current deferred tax asset ...............   $   (79,896)   $   (19,632)
Long-term deferred tax liability .........     3,588,575      1,667,648
                                             -----------    -----------

                                             $ 3,508,679    $ 1,648,016
                                             ===========    ===========





                                    Continued

                                       34

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


3.       Income Taxes, Continued:
         ------------

     The provision for (benefit  from) income taxes differs from the amount that
would be provided by applying the statutory U.S.  Federal income tax rate to the
income (loss) before income taxes for the following reasons:

<TABLE>
<CAPTION>
                                                   2000           1999           1998
                                            -----------    -----------    -----------

<S>                                         <C>            <C>            <C>
Expected federal statutory
   tax expense (benefit) ................   $ 2,653,323    $   216,452    $(2,970,461)
Increase (reduction) in taxes
  resulting from:
     State taxes (net of federal
      benefit) ..........................       211,225          6,733       (255,742)
     Canadian taxes (net of foreign
        tax credits) ....................       136,988        221,870        208,046
     Excess allowable percentage
      depletion .........................      (319,803)      (124,638)       (54,059)
     Investment tax and other credits ...       (31,000)          --             --
     Changes in prior years' taxes ......        (9,320)       (87,314)       150,450
                                            -----------    -----------    -----------

Provision for (benefit from) income taxes   $ 2,641,413    $   233,103    $(2,921,766)
                                            ===========    ===========    ===========
</TABLE>


     At December 31, 2000, the Company had approximately $269,221 of alternative
minimum tax credit carryforwards which can be carried forward indefinitely,  and
approximately $358,507 of foreign tax credit carryforwards which begin to expire
in 2001.


                                    Continued

                                       35

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


4.       Stock-Based Compensation Plan:
         -----------------------------

     At December 31, 2000, the Company had two stock-based  compensation  plans,
which are described  below.  The Company  applies APB Opinion No. 25 and related
Interpretations in accounting for these plans. Accordingly, no compensation cost
has been  recognized  for  options  granted to  employees  under its fixed stock
option plans. Had compensation cost for the Company's stock- based  compensation
plan been determined  based on the fair value at the grant dates consistent with
the  method of SFAS No.  123,  Accounting  for  Stock  Based  Compensation,  the
Company's  net income  (loss) and net  income  (loss) per share  would have been
changed to the pro forma amounts indicated below:


                                        2000            1999            1998
                                     ----------       --------      -----------

Net income (loss)     As reported    $5,164,071       $403,521      $(5,814,884)
                      Pro forma      $4,966,286       $239,924      $(5,991,191)

Net income (loss)
  per share           As reported         $ .41          $ .03           $ (.46)
                      Pro forma           $ .39          $ .02           $ (.47)


     Under the 2000 and 1993 Equity Oil Company  Incentive  Stock Option  Plans,
the Company  may grant  options to its  employees  for up to 1.2 million and 1.4
million shares, respectively,  of common stock. The options may take the form of
incentive stock options,  non-qualified  stock options,  and non-qualified stock
options with tandem stock appreciation rights. The exercise price of each option
equals  the market  price of the  Company's  stock on the date of grant,  and an
option's maximum term is 10 years.  Options are granted from time to time at the
discretion of the Board of Directors, and vest over periods of one to five years
from the grant date.

     The fair value of each option grant is estimated on the date of grant using
the  Black-Scholes  option-pricing  model  with the  following  weighted-average
assumptions  used for  grants  in 2000,  1999  and 1998  respectively:  expected
volatility of 95, 112 and 138 percent,  risk-free interest rates of 6.8, 5.1 and
5.5 percent;  expected  life of 5 to 7 years and dividend  yield of zero for all
three years.

                                    Continued

                                       36

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued



4.      Stock-Based Compensation Plan, Continued:
        -----------------------------

<TABLE>
<CAPTION>

                                                  2000                        1999                          1998
                                       -------------------------    -------------------------     -------------------------
                                       Shares   Weighted-Average    Shares   Weighted-Average     Shares   Weighted-Average
Fixed Options                          (000)     Exercise Price     (000)     Exercise Price      (000)     Exercise Price
-------------                          ------   ----------------    ------   ----------------     ------   ----------------
<S>                                     <C>            <C>            <C>          <C>              <C>          <C>
Outstanding at beginning of year        1,434          $3.45          1,203        $4.14            1,141        $4.33
Granted                                   219           1.55            323         1.06              150         2.50
Exercised                                 (15)          1.06              -            -                -            -
Forfeited                                 (49)          5.66            (92)        4.08              (88)        3.87
                                        -----                         -----                         -----
Outstanding at end of  year             1,589           3.14          1,434         3.45            1,203         4.14
                                        =====                         =====                         =====

Options exercisable at year-end         1,149                           973                           900
                                        =====                         =====                         =====
Weighted-average fair value of
   options granted during the year                     $1.18                        $.88                         $2.21

</TABLE>
<TABLE>
<CAPTION>

     The  following  table  summarizes  information  about fixed  stock  options
outstanding at December 31, 2000:

                                                    Options Outstanding                          Options Exercisable
                             ----------------------------------------------------      --------------------------------------
                          Number           Weighted-Average                                Number
    Range of            Outstanding            Remaining        Weighted-Average         Exercisable        Weighted-Average
  Exercise Prices       at 12/31/00        Contractual Life      Exercise Price          at 12/31/00          Exercise Price
-------------------   ---------------    --------------------  ------------------      ---------------      -----------------
<S>                       <C>                    <C>                 <C>                   <C>                   <C>
$1.063-$1.063             307,600                8.25                $1.063                170,800               $1.063
$1.500-$2.500             355,000                8.35                $1.914                 92,000               $2.500
$3.563-$3.875             306,500                3.83                $3.621                282,500               $3.626
$4.000-$4.250             304,000                2.05                $4.127                304,000               $4.127
$5.000-$5.500             315,500                3.85                $5.127                299,300               $5.127
                          -------                ----                ------                -------               ------
                        1,588,600                5.36                $3.140              1,148,600               $3.678

</TABLE>


5.      Geographic Segment Information:
        ------------------------------

     The  Company  follows  SFAS  No.  131,  Disclosure  about  Segments  of  an
Enterprise and Related Information.  The Company operates in the exploration and
production  segment of the oil and gas industry.  The Company's  operations  are
located in the following geographical areas.
<TABLE>
<CAPTION>

                                         Revenues                                                 Long-lived Assets
                              for the years ended December 31,                                    as of December 31,
                              -------------------------------                                     -----------------

                            2000               1999              1998                   2000               1999             1998
                            ----               ----              ----                   ----               ----             ----
<S>                       <C>               <C>                <C>                   <C>               <C>              <C>
United States             $21,746,294       $13,625,811        $11,199,836           $ 96,017,461      $ 94,104,683     $ 95,009,887
Canada                      2,570,075         1,808,726          1,521,040             10,014,344         9,469,943        9,397,928
                          -----------       -----------        -----------           ------------      ------------     ------------
Total                     $24,316,369       $15,434,537        $12,720,876           $106,031,805      $103,574,626     $104,407,815
                          ===========       ===========        ===========           ============      ============     ============

</TABLE>

                                    Continued

                                       37

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


5.       Geographic Segment Information, Continued:
         ------------------------------

     Revenue  from a major U.S.  oil  company  accounted  for  approximately  47
percent of total  revenues in 2000, 31 percent of total  revenues in 1999 and 32
percent of total revenues in 1998. The Company  believes this purchaser could be
replaced, if necessary, without a loss in revenue.

6.       Symskaya Exploration:
         --------------------

     Symskaya Exploration,  Incorporated, a company in the development stage and
a Texas corporation (Symskaya),  was formed on November 25, 1991, and is engaged
in oil and  gas  exploration  in  Russia.  Symskaya  holds  a  Combined  License
(License)  which grants it the exclusive  right to explore,  develop and produce
hydrocarbons  on a contract area totaling  approximately  1,100,000 acres in the
Yenisysk District of the Krasnoyarsk Krai in the Russian Federation. The License
has a primary term of 25 years from November 15, 1993.

     The work to be performed and the obligations and rights of Symskaya are set
forth in the  License  and a  Production  Sharing  Agreement  (PSA)  which is an
integral part of the License.  Under the License and PSA,  Symskaya will provide
funding for all  exploration  and  development and will recover these costs from
80% of hydrocarbon  production after payment of an 8% royalty. The remaining 20%
of any hydrocarbon  production,  net of royalty,  will be shared by Symskaya and
the Russian government based on the rate of production. As of December 31, 2000,
the Symskaya area had not received approval by the Russian federal government as
a production sharing area.

     Minimum  expenditures  required under the License and PSA total $12,000,000
during the first five years of the License  term,  which  began on November  15,
1993.  Symskaya  satisfied all of the minimum  expenditures in the time required
under the license.

     Symskaya  is owned 50% each by Equity Oil  Company  (Equity)  and  Leucadia
National Corporation, (Leucadia). Leucadia acquired 50% of the stock of Symskaya
effective  January 1, 1994,  in  exchange  for their  commitment  to spend up to
$6,000,000,  in an amount  equal to that spent by Equity,  towards the  Symskaya
project through the drilling,  completion and/or plugging and abandonment of the
initial test well, the Lemok #1. Pursuant to a Shareholders' Agreement, Leucadia
was not  required to pay any part of the amounts  previously  advanced by Equity
under a Loan Agreement  with  Symskaya,  with the exception of one-half (1/2) of
the interest on a $1,740,519 loan between Equity and Symskaya. The loan reflects
the initial investment by Equity in Symskaya prior to Leucadia's ownership.





                                    Continued

                                       38

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued



6.       Symskaya Exploration, Continued:
         --------------------

     Amounts  advanced by Equity and Leucadia  after January 1, 1994 are treated
as  interest-bearing  notes  payable or equity,  as mutually  agreed upon by the
respective companies. The Shareholder Agreement with Leucadia also requires that
Leucadia share equally in the payment of the one (1%) percent royalty obligation
in favor of Coastline  Exploration,  Inc. on future  revenues  from the Symskaya
project. The Company's President serves on Leucadia's Board of Directors.

     The  Company's  investment  in  Symskaya is being  accounted  for using the
equity method of accounting.

     In 1996,  Symskaya plugged and abandoned the Lemok #1 well, and charged all
capitalized  costs to expense.  Subsequent to the plugging of the Lemok #1 well,
the Company and Leucadia agreed to suspend interest payments on Symskaya's notes
with the Company.  The Company has no current  plans to fund future  exploratory
drilling by Symskaya.  The Company's 50% share of Symskaya's net loss, excluding
losses related to interest  payable to the Company,  was $174,432,  $169,933 and
$446,758 in 2000, 1999 and 1998, respectively.

7.       Note Payable:
         ------------

     In September of 1999, the Company obtained a $50 million Reducing Revolving
Credit Facility (the Facility),  with a commitment of $17 million as of December
31, 2000,  which replaced its prior credit  facility.  The terms of the Facility
call for  interest  payments  only,  at the lower of prime or LIBOR plus  2.00%,
until  September 9, 2002,  at which time the  principal  amount  becomes due. An
unused  commitment  fee of 1/2%  will be  charged  to the  Company  based on the
average daily unused portion of the Facility.  The Facility is collateralized by
essentially all oil and gas assets of the Company.  As of December 31, 2000, the
outstanding  balance  under the Facility was  $8,500,000  at a weighted  average
interest rate of 8.57%.

     The  Facility  contains  provisions  relating  to  maintenance  of  certain
financial  ratios,  as well as  restrictions  governing its use. Under covenants
contained in the Facility,  the Company has agreed,  among other things,  not to
advance any proceeds from the Facility to Symskaya,  not to pay  dividends,  and
not to merge with or acquire any other company without the prior approval of the
bank. As of December 31, 2000, the Company was in compliance  with all covenants
in the  Facility.  Facility  fees,  which are  reflected  as other assets in the
accompanying  balance sheet,  are being  amortized on a straight line basis over
the original 36 month term of the agreement.

                                    Continued

                                       39

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued





8.      Quarterly Financial Data (Unaudited):
        -----------------------------------

     Quarterly  financial  information for the years ended December 31, 2000 and
1999 is as follows:

<TABLE>
<CAPTION>

2000 Quarter Ended: .......   December 31   September 30      June 30      March 31
                              -----------   -----------   -----------   -----------

<S>                           <C>           <C>           <C>           <C>
Net revenues ..............   $ 7,497,944   $ 6,027,006   $ 5,403,396   $ 5,388,023

Gross margin ..............     4,626,159     3,279,220     2,786,801     2,720,100

Net income ................     1,588,512     1,214,027     1,108,782     1,252,750

Basic income
    per common share ......   $       .13   $       .10   $       .09   $       .10
                              ===========   ===========   ===========   ===========

Diluted income
    per common share ......   $       .12   $       .09   $       .09   $       .10
                              ===========   ===========   ===========   ===========


1999 Quarter Ended: .......   December 31   September 30      June 30      March 31
                              -----------   -----------   -----------   -----------

Net revenues ..............   $ 4,995,330   $ 4,311,235   $ 3,515,233   $ 2,618,352

Gross margin ..............     2,032,571     1,645,306     1,195,995       232,194

Net income (loss) .........       441,743       422,532       111,945      (572,699)

Basic and diluted income
    (loss) per common share   $       .03   $       .03   $       .01   $      (.05)
                              ===========   ===========   ===========   ===========
</TABLE>



                                    Continued

                                       40

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


9.      Disclosures About Oil and Gas Producing Activities:
        --------------------------------------------------

<TABLE>
<CAPTION>
           Capitalized Costs:
           -----------------
                                                       United States       Canada            Total
                                                       -------------    -------------    -------------
2000:

<S>                                                    <C>              <C>              <C>
Unproved oil and gas
   properties ......................................   $   2,571,276    $      30,038    $   2,601,314
Proved oil and gas
   properties ......................................      92,334,569        9,984,303      102,318,872
                                                       -------------    -------------    -------------
                                                          94,905,845       10,014,341      104,920,186
Accumulated depreciation,
   depletion and amortization ......................     (59,502,298)      (7,007,271)     (66,509,569)
                                                       -------------    -------------    -------------

Net capitalized costs ..............................   $  35,403,547    $   3,007,070    $  38,410,617
                                                       =============    =============    =============


 1999:

Unproved oil and gas
   properties ......................................   $   2,358,084    $      30,735    $   2,388,819
Proved oil and gas
   properties ......................................      90,779,602        9,439,208      100,218,810
                                                       -------------    -------------    -------------
                                                          93,137,686        9,469,943      102,607,629
Accumulated depreciation,
   depletion and amortization ......................     (56,070,950)      (6,729,150)     (62,800,100)
                                                       -------------    -------------    -------------

Net capitalized costs ..............................   $  37,066,736    $   2,740,793    $  39,807,529
                                                       =============    =============    =============

1998:

Unproved oil and gas
   properties ......................................   $   2,969,999    $      33,224    $   3,003,223
Proved oil and gas
   properties ......................................      91,206,116        9,364,704      100,570,820
                                                       -------------    -------------    -------------
                                                          94,176,115        9,397,928      103,574,043
Accumulated depreciation,
   depletion and amortization ......................     (54,247,539)      (6,418,467)     (60,666,006)
                                                       -------------    -------------    -------------

Net capitalized costs ..............................   $  39,928,576    $   2,979,461    $  42,908,037
                                                       =============    =============    =============


</TABLE>


                                    Continued

                                       41

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


9.      Disclosures About Oil and Gas Producing Activities, Continued:
        --------------------------------------------------

        Costs Incurred in Oil and Gas Property Acquisition, Exploration
        and Development Activities:
        ---------------------------------------------------------------

2000:                      United States    Canada     Russia        Total
                             ----------   ----------   ------   ----------
Acquisition of properties:
   Proved ................   $    0,500                         $   20,500
   Unproved ..............      519,660                            519,660
Exploration costs ........    3,447,209   $   17,924             3,465,133
Development costs ........    1,793,824      679,736             2,473,560
Symskaya, equity method ..                            $174,432     174,432

1999:

Acquisition of properties:
   Proved ................   $  946,665                         $  946,665
   Unproved ..............      200,541                            200,541
Exploration costs ........    1,863,875   $   30,073             1,893,948
Development costs ........    1,062,408      110,521             1,172,929
Symskaya, equity method ..                            $169,933     169,933

1998:

Acquisition of properties:
   Proved ................
   Unproved ..............   $  124,066                         $  124,066
Exploration costs ........    4,423,128   $   27,529             4,450,657
Development costs ........    2,270,849      267,392             2,538,241
Symskaya, equity method ..                            $446,758     446,758



                                    Continued
                                       42

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


9.      Disclosures About Oil and Gas Producing Activities, Continued:
        --------------------------------------------------
<TABLE>
<CAPTION>

        Results of Operations (Unaudited):
        ---------------------------------

2000:                                            United States       Canada         Russia            Total
                                                  ------------    ------------    ------------    ------------
<S>                                               <C>             <C>             <C>             <C>
Oil and gas sales .............................   $ 21,746,294    $  2,570,075                    $ 24,316,369
Production costs ..............................     (6,122,894)       (603,875)                     (6,726,769)
Exploration expenses ..........................     (3,493,390)        (14,374)                     (3,507,764)
Depreciation, depletion and amortization ......     (3,684,117)       (124,661)                     (3,808,778)
Impairment of proved
    oil and gas properties ....................       (368,543)           --                          (368,543)
Equity loss in Symskaya Exploration, Inc. .....           --              --      $   (174,432)       (174,432)
                                                  ------------    ------------    ------------    ------------
                                                     8,077,350       1,827,165        (174,432)      9,730,083
Imputed income tax benefit (expense) ..........     (2,604,092)       (344,352)         65,412      (2,883,032)
                                                  ------------    ------------    ------------    ------------
Results of operations from producing activities   $  5,473,258    $  1,482,813    $   (109,020)   $  6,847,051
                                                  ============    ============    ============    ============

1999:

Oil and gas sales .............................   $ 13,625,811    $  1,808,726                    $ 15,434,537
Production costs ..............................     (5,422,811)       (525,244)                     (5,948,055)
Exploration expenses ..........................     (1,650,413)        (20,273)                     (1,670,686)
Depreciation, depletion and amortization ......     (3,761,339)       (310,939)                     (4,072,278)
Impairment of proved
    oil and gas properties ....................       (313,751)           --                          (313,751)
Equity loss in Symskaya Exploration, Inc. .....           --              --      $   (169,933)       (169,933)
                                                  ------------    ------------    ------------    ------------
                                                     2,477,497         952,270        (169,933)      3,259,834
Imputed income tax benefit (expense) ..........       (677,741)       (423,760)         63,725      (1,037,776)
                                                  ------------    ------------    ------------    ------------
Results of operations from producing activities   $  1,799,756    $    528,510    $   (106,208)   $  2,222,058
                                                  ============    ============    ============    ============

1998:

Oil and gas sales .............................   $ 11,199,836    $  1,521,040                    $ 12,720,876
Production costs ..............................     (5,665,047)       (568,908)                     (6,233,955)
Exploration expenses ..........................     (2,954,780)        (22,212)                     (2,976,992)
Depreciation, depletion and amortization ......     (4,720,913)       (308,206)                     (5,029,119)
Impairment of proved
    oil and gas properties ....................     (4,015,158)           --                        (4,015,158)
Equity loss in Symskaya Exploration, Inc. .....           --              --      $   (446,758)       (446,758)
                                                  ------------    ------------    ------------    ------------
                                                    (6,156,062)        621,714        (446,758)     (5,981,106)
Imputed income tax benefit (expense) ..........      2,308,523        (276,663)        167,534       2,199,394
                                                  ------------    ------------    ------------    ------------
Results of operations from producing activities   $ (3,847,539)   $    345,051    $   (279,224)   $ (3,781,712)
                                                  ============    ============    ============    ============
</TABLE>



     The imputed  income tax benefit  (expense) is  hypothetical  and determined
without  regard to the Company's  deduction for general and  administrative  and
interest expense.




                                    Continued

                                       43

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


9.              Disclosures About Oil and Gas Producing Activities, Continued:
                --------------------------------------------------

                Reserves and Future Net Cash Flows (Unaudited):
                ----------------------------------------------

     Estimates  of  reserve  quantities  and  related  future net cash flows are
calculated  using  unescalated  year-end oil and gas prices and operating costs,
and may be subject to substantial  fluctuations based on the prices in effect at
the end of each  year.  Reserve  revisions  occur when the  economic  limit of a
property is  lengthened or shortened  due to changes in commodity  pricing.  The
following  table sets forth the  weighted  average  prices  used in  calculating
estimated reserve  quantities and future net cash flows at the end of 2000, 1999
and 1998:

<TABLE>
<CAPTION>

                         United States                Canada                    Total
                         -------------            --------------           ---------------
                       Oil          Gas          Oil           Gas       Oil            Gas
                      -----        -----        -----         -----     -----          -----

<S>                   <C>          <C>         <C>          <C>         <C>            <C>
December 31, 2000     $24.41       $10.42      $19.40       $10.18      $23.78         $10.39

December 31, 1999     $23.28       $ 1.95      $20.40       $ 1.71      $22.99         $ 1.93

December 31, 1998     $10.97       $ 2.06      $ 9.92       $ 1.49      $10.80         $ 1.95

</TABLE>


        Estimates of Proved Oil and Gas Reserves(Unaudited):
        ---------------------------------------------------

     The following tables present the Company's  estimates of its proved oil and
gas reserves.  The Company  emphasizes  that reserve  estimates  are  inherently
imprecise and that estimates of new discoveries are more imprecise than those of
producing  oil and gas  properties.  Accordingly,  the estimates are expected to
change as future information  becomes available.  Reserve estimates are prepared
by the Company  and audited by the  Company's  independent  petroleum  reservoir
engineers, Fred S. Reynolds and Associates,  who have issued a report expressing
their opinion that the reserve information in the following tables complies with
the applicable rules  promulgated by the Securities and Exchange  Commission and
the Financial Accounting Standards Board. The volumes presented on the following
pages are in thousands of barrels for oil and thousands of mcf for gas.






                                    Continued

                                       44

<PAGE>


                                                EQUITY OIL COMPANY

                                     NOTES TO FINANCIAL STATEMENTS, Continued


9.      Estimates of Proved Oil and Gas Reserves, Continued:
        ----------------------------------------
<TABLE>
<CAPTION>

        Reserves and Future Net Cash Flows (Unaudited):
        ----------------------------------------------

                                                             United States           Canada                  Total
                                                           -----------------     -----------------     -----------------
December 31, 2000:                                           Oil        Gas        Oil       Gas        Oil        Gas
-------------------------------------------------------    ------     ------     ------    -------     ------    -------
   <S>                                                      <C>       <C>         <C>        <C>        <C>       <C>
   Proved developed and undeveloped reserves:
   Beginning of year ..................................     8,042     13,838      1,251      2,493      9,293     16,331
   Revisions of previous estimates ....................       450      1,014       (247)       265        203      1,279
   Extensions and discoveries .........................       154        819        349        223        503      1,042
   Acquisition of minerals in place ...................        46       --         --         --           46       --
   Sales of minerals in place .........................      (440)      --         --         --         (440)      --
   Improved Recovery ..................................       174       --           16       --          190       --
   Production .........................................      (590)    (1,456)       (76)      (205)      (666)    (1,661)
                                                          -------    -------    -------    -------    -------    -------
   End of year ........................................     7,836     14,215      1,293      2,776      9,129     16,991
                                                          =======    =======    =======    =======    =======    =======

Proved developed reserves:
   Beginning of year ..................................     7,808     13,663      1,017      2,318      8,825     15,981
   End of year ........................................     7,439     11,285      1,104      2,776      8,543     14,061


                                                             United States           Canada                  Total
                                                           -----------------     -----------------     -----------------
December 31, 1999:                                           Oil        Gas        Oil       Gas        Oil        Gas
-------------------------------------------------------   -------    -------    -------    -------    -------    -------
   Proved developed and undeveloped reserves:
   Beginning of year ..................................     5,117     15,411      1,076      3,599      6,193     19,010
   Revisions of previous estimates ....................     3,181        274        261       (841)     3,442       (567)
   Extensions and discoveries .........................         6        529       --         --            6        529
   Acquisition of minerals in place ...................       563         34       --         --          563         34
   Sales of minerals in place .........................      (249)      (642)      --         --         (249)      (642)
   Production .........................................      (576)    (1,768)       (86)      (265)      (662)    (2,033)
                                                          -------    -------    -------    -------    -------    -------
   End of year ........................................     8,042     13,838      1,251      2,493      9,293     16,331
                                                          =======    =======    =======    =======    =======    =======

Proved developed reserves:
   Beginning of year ..................................     4,870     12,683      1,076      3,599      5,946     16,282
   End of year ........................................     7,808     13,663      1,017      2,318      8,825     15,981


                                                             United States           Canada                  Total
                                                           -----------------     -----------------     -----------------
December 31, 1998:                                           Oil        Gas        Oil       Gas        Oil        Gas
-------------------------------------------------------   -------    -------    -------    -------    -------    -------
   Proved developed and undeveloped reserves:
   Beginning of year ..................................     7,168     15,457      1,252      3,452      8,420     18,909
   Revisions of previous estimates ....................    (1,817)      (459)       (79)       494     (1,896)        35
   Extensions and discoveries .........................       361      2,505       --         --          361      2,505
   Production .........................................      (595)    (2,092)       (97)      (347)      (692)    (2,439)
                                                          -------    -------    -------    -------    -------    -------
   End of year ........................................     5,117     15,411      1,076      3,599      6,193     19,010
                                                          =======    =======    =======    =======    =======    =======

Proved developed reserves:
   Beginning of year ..................................     6,972     11,932      1,252      3,452      8,224     15,384
   End of year ........................................     4,870     12,683      1,076      3,599      5,946     16,282

</TABLE>


                                    Continued
                                       45

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued


9.      Disclosures About Oil and Gas Producing Activities, Continued:
        --------------------------------------------------

<TABLE>
<CAPTION>
        Standardized  Measure of  Discounted  Future Net Cash Flows and  Changes
        Therein Relating to Proved Oil and Gas Reserves (Unaudited):
        ------------------------------------------------------------

                                                          Thousands of Dollars

                                                United States    Canada        Total
2000:                                             ---------     ---------    ---------

<S>                                               <C>          <C>          <C>
Future cash inflows ...........................   $ 334,675    $  52,295    $ 386,970
Future production and development costs .......    (126,556)     (15,400)    (141,956)
                                                  ---------    ---------    ---------
Future net cash flows before income taxes .....     208,119       36,895      245,014
10% annual discount for estimated timing
   of cash flows ..............................    (103,691)     (19,454)    (123,145)
                                                  ---------    ---------    ---------
Standardized measure of discounted future
   net cash flows before income taxes .........     104,428       17,441      121,869
Future income taxes, net of 10% annual discount     (32,374)      (7,251)     (39,625)
                                                  ---------    ---------    ---------
Standardized measure of discounted future
   net cash flows .............................   $  72,054    $  10,190    $  82,244
                                                  =========    =========    =========

1999:

Future cash inflows ...........................   $ 215,342    $  27,122    $ 242,464
Future production and development costs .......    (108,395)     (12,147)    (120,542)
                                                  ---------    ---------    ---------
Future net cash flows before income taxes .....     106,947       14,975      121,922
10% annual discount for estimated timing
   of cash flows ..............................     (51,627)      (6,929)     (58,556)
                                                  ---------    ---------    ---------
Standardized measure of discounted future
   net cash flows before income taxes .........      55,320        8,046       63,366
Future income taxes, net of 10% annual discount     (13,951)      (2,629)     (16,580)
                                                  ---------    ---------    ---------
Standardized measure of discounted future
   net cash flows .............................   $  41,369    $   5,417    $  46,786
                                                  =========    =========    =========

1998:

Future cash inflows ...........................   $  88,549    $  15,442    $ 103,991
Future production and development costs .......     (54,825)      (7,811)     (62,636)
                                                  ---------    ---------    ---------
Future net cash flows before income taxes .....      33,724        7,631       41,355
10% annual discount for estimated timing
   of cash flows ..............................     (13,176)      (2,969)     (16,145)
                                                  ---------    ---------    ---------
Standardized measure of discounted future
   net cash flows before income taxes .........      20,548        4,662       25,210
Future income taxes, net of 10% annual discount      (1,479)        (929)      (2,408)
                                                  ---------    ---------    ---------
Standardized measure of discounted future
   net cash flows .............................   $  19,069    $   3,733    $  22,802
                                                  =========    =========    =========

</TABLE>








                                    Continued

                                       46

<PAGE>


                               EQUITY OIL COMPANY

                    NOTES TO FINANCIAL STATEMENTS, Continued




9.       Disclosures About Oil and Gas Producing Activities, Continued:
         --------------------------------------------------

         Standardized  Measure of  Discounted  Future Net Cash Flows and Changes
         Therein Relating to Proved Oil and Gas Reserves (Unaudited), Continued:
         -----------------------------------------------------------------------


     Future net cash flows were computed  using year-end  prices and costs,  and
year-end  statutory  tax rates with  consideration  of future tax rates  already
legislated  (adjusted for permanent  differences  that related to proved oil and
gas reserves).

<TABLE>
<CAPTION>

     Principal  sources  of change in the  standardized  measure  of  discounted
future net cash flow are as follows:

                              Thousands of Dollars
                                                   2000        1999        1998
                                                 --------    --------    --------

<S>                                              <C>         <C>         <C>
Sales and transfers of oil and gas produced,
   net of production costs ...................   $(17,590)   $ (9,486)   $ (6,487)
Net changes in prices and production costs ...     58,959      29,172     (10,019)
Extensions, discoveries and improved recovery
   Less related costs ........................      8,474         294       2,098
Purchases of minerals in place ...............        345       3,373        --
Sales of minerals in place ...................     (2,623)       (959)       --
Changes in estimated future development costs        (484)     (3,033)      2,630
Revisions of previous quantity estimates .....      5,792      23,747      (4,495)
Accretion of discount ........................      6,337       2,521       3,558
Net change in income taxes ...................    (21,573)    (15,204)      3,315
Changes in production rates (timing) and other     (2,179)     (6,441)      3,303
                                                 --------    --------    --------

                                                 $ 35,458    $ 23,984    $ (6,097)
                                                 ========    ========    ========

</TABLE>


















                                       47

<PAGE>





ITEM 9.  DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURES:

None.
                                    PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF COMPANY

     The  information  contained  under the headings  Election of Directors  and
Continuing  Directors and Executive  Officers  contained on pages 2 and 4 in the
definitive  proxy statement to be filed in connection with the Company's  annual
meeting on May 9, 2001 is  incorporated  herein by  reference  in answer to this
item.

ITEM 11.  EXECUTIVE COMPENSATION

     The information contained under the heading Executive Compensation on pages
7 through 10 in the definitive  proxy  statement to be filed in connection  with
the Company's annual meeting on May 9, 2001 is incorporated  herein by reference
in answer to this item.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     The  information   contained  under  the  headings  Security  Ownership  of
Management and Voting Securities & Principal Holders Thereof, contained on pages
5 and 12 in the definitive  proxy  statement to be filed in connection  with the
Company's  annual meeting on May 9, 2001 is incorporated  herein by reference in
answer to this item.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

None.



                                       48

<PAGE>

                                     PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON
          FORM 8-K:

                                                                     Page:
(a) (1)  Financial Statements:

   Report of Independent Accountants                                  24
   Financial Statements:

     Balance Sheets as of December 31, 2000 and 1999                  25

     Statements of Operations for the years ended
       December 31, 2000, 1999 and 1998                               26

     Statements of Changes in Stockholders' Equity
       for the years ended December 31, 2000, 1999 and 1998           27

     Statements of Cash Flows for the years ended
       December 31, 2000, 1999 and 1998                               28

     Notes to Financial Statements                                    29

  (3) Exhibits

   (3) (i) Restated Articles of Incorporation. Incorporated by reference
           from the annual  report on Form 10-K for the year ended  December
           31, 1995.

      (ii) Amended By-Laws. Incorporated by reference from the annual report
           on Form 10-K for the year ended December 31, 1997.

  (10) Material Contracts

      (i)  Change in Control Compensation Agreements for Russell V. Florence.
           Change in Control Compensation Agreements for Paul M. Dougan, James
           B. Larson, and Clay Newton, Incorporated by reference from the
           annual report on Form 10-K for the year ended December 31, 1997.

     (ii)  Loan agreement between Equity Oil Company and Bank One Texas, N.A.
           Incorporated by reference from the quarterly report on Form 10-Q
           for the period ended September 30, 1999.

  (21)     Subsidiaries.  Incorporated by reference from the annual report on
           Form 10-K for the year ended December 31, 1995.

  (23)     Consent of Independent Accountants. Consent of PricewaterhouseCoopers
           LLP regarding Form S-8 Registrations.

(b)Reports on Form 8-K

           None.

                                       49

<PAGE>


                                   SIGNATURES

     Pursuant  to the  requirements  of  Section  13 or 15(d) of the  Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

         EQUITY OIL COMPANY


         By  Paul M. Dougan
             -------------------
             President
             Chief Executive Officer


         By  Clay Newton
             --------------------
             Treasurer
             Chief Financial Officer
             Principal Accounting Officer

Date:    January 31, 2001
         --------------------

     Pursuant to the  requirements of the Securities  Exchange Act of 1934, this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
Registrant and in the capacities and on the dates indicated.



   Douglas W. Brandrup                       Joseph C. Bennett
--------------------------              -------------------------
         Director                                Director

    January 31, 2001                         January 31, 2001
--------------------------              -------------------------
          Date                                     Date

    William D. Forster                      Philip J. Bernhisel
--------------------------              -------------------------
         Director                                Director

    January 31, 2001                         January 31, 2001
--------------------------              -------------------------
          Date                                     Date

     Randolph G. Abood                       W. Durand Eppler
--------------------------              -------------------------
         Director                                Director

    January 31, 2001                         January 31, 2001
--------------------------              -------------------------
          Date                                     Date

     William P. Hartl
--------------------------
        Director

    January 31, 2001
--------------------------
          Date



                                       50