U. S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                  FORM 10-KSB

[X]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]

      For the Fiscal Year ended:  March 31, 2001

                                      OR

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

      For the transition period from ___________ to __________

                        Commission File No.  0-17204

                                 INFINITY, INC.
       (Exact Name of Small Business Issuer as Specified in its Charter)

             Colorado                               81-1070066
(State or Other Jurisdiction of             (I.R.S. Employer Identi-
Incorporation or Organization)                   fication Number)

                 211 West 14th Street, Chanute, Kansas 66720
         (Address of Principal Executive Offices, Including Zip Code)

Issuer's telephone number, including area code:  (620) 431-6200

Securities registered pursuant to Section 12(b) of the Act: None

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

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section13 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 [ ]

Check if there is no disclosure of delinquent filers in response to item 405
of Regulation S-B contained in this form, and no disclosure will 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-KSB or any
amendment to this Form 10-KSB. [  ]

State Issuer's revenues for its most recent fiscal year:  $8,860,269

As of June 7, 2001, 3,248,237 Shares of the Registrant's $0.0001 Par Value
Common Stock were outstanding. The aggregate market value of voting stock held
by nonaffiliates of the Registrant was approximately $34,779,852.

Documents incorporated by reference: Proxy statement for the Annual Meeting of
Shareholders to be held on July 19, 2001



                                     PART I

ITEM 1. DESCRIPTION OF BUSINESS

BUSINESS DEVELOPMENT

     Infinity, Inc. ("Infinity" or the "Company") was organized as a Colorado
corporation on April 2, 1987.

     On January 21, 1994, Consolidated Industrial Services, Inc.
("Consolidated"), a newly-formed, wholly-owned subsidiary of the Company,
acquired substantially all of the assets and operations, and assumed certain
liabilities, of Consolidated Oil Well Services, Inc. ("COWS") pursuant to an
Asset Purchase Agreement dated January 7, 1994 ("Agreement"), among the
Company, Consolidated, COWS and Edsel E. Noland, the President and sole
shareholder of COWS, for consideration valued at $5,000,000.

     COWS was established in 1957 by Edsel E. Noland, and has been engaged in
providing services to the oil and gas well industry in Kansas and portions of
surrounding states. This business has included providing fracturing,
cementing, acidizing, and nitrogen services as well as trucking of fluids.

     On September 9, 2000 the articles of incorporation of Consolidated
Industrial Services, Inc. were amended in order to change the name of the
subsidiary to Consolidated Oil Well Services, Inc.

     In September 1995, Infinity Oil and Gas, Inc. ("IOG") was created to
pursue exploration and development opportunities in the oil and gas industry.
The Company owned 55% of the common shares of IOG for which it paid $550 and
during the year ended March 31, 1996, invested $120,000 in preferred stock of
IOG. From April 1, 1996 through February 1997, the Company invested an
additional $59,000 in IOG's preferred stock.

     During February 1997, the Company and IOG agreed to the cancellation of
the Company's preferred stock and a portion of its Common Stock, reducing the
Company's ownership in IOG to 10% of its Common Stock. In exchange for such
cancellation, the Company received a promissory note in the amount of $50,000
that was subsequently repaid. In addition, the Company will receive an
overriding royalty on certain oil and gas leases held by IOG known as the
"Redstone Project." The amount of the overriding royalty will be based on the
terms of the sale of the Redstone Project by IOG. During July 1997, the
Company agreed to cancel the remaining 10% common stock interest in IOG in
conjunction with the acquisition of a gas development property.

     In November 1995, CIS Oil and Gas, Inc. ("COG"), a wholly owned
subsidiary, was created to acquire mineral rights and to develop and operate
properties. During the year ended March 31, 1996 COG acquired rights to
approximately 24,000 acres of land in the Raton Basin in Southeastern
Colorado, and drilled fifteen wells to produce coal bed methane gas from this
property. During the year ended March 31, 1997, the Company drilled an
additional five wells and built a pipeline system on the property to connect
the wells to the Colorado Interstate Gas pipeline. During the year ended March
31, 1998, the Company drilled an additional ten wells and began commercial gas
production, and also acquired development rights to approximately 17,000
additional acres of land in the Raton Basin. During the summer of 1998, the


                                       2


Company entered into joint venture agreements with Evergreen Resources, Inc.
("Evergreen") concerning the development of these properties, and then,
effective December 31, 1998, the Company sold all of its interest in these
properties to Evergreen. As a result of this sale, COG is now inactive.

     In January 1997, Consolidated Pipeline, Inc. ("CPI"), a wholly owned
subsidiary, was reorganized to operate the Company's gas gathering pipeline
system constructed to connect the wells on the Raton property to the Colorado
Interstate Gas pipeline. The pipeline system was sold to Evergreen during
1998. As a result, this subsidiary is now also inactive.

     At the close of business on March 24, 1999, the Company effected a
1-for-4 reverse split of its outstanding Common Stock. All share numbers and
per share amounts in this report give effect to this reverse split.

     Effective August 16, 1999 CIS and Infinity acquired Powder River
Cementers, LLC, a well cementing company located in Gillette, Wyoming for
$394,638 including acquisition costs, and 100,000 shares of Infinity common
stock were placed in escrow contingent on certain performance levels being
reached by the business that was acquired. On March 20, 2000 as final
settlement on the acquisition, the Company paid an additional $200,000 to the
former owners of Powder River Cementers, LLC. With this payment, the Company
settled all outstanding issues related to receivables and payables associated
with the acquisition and the shares in escrow were returned to the Company.
Assets of this company included a cement pump truck, bulk cement truck and a
bulk cement blending and storage facility. In addition to the physical assets,
the Company acquired the rights to an agreement to provide cementing services
for up to 1,000 wells being drilled by a major operator in the basin.

     Infinity Oil and Gas of Kansas, Inc. ("IOG-KS"), a wholly owned
subsidiary of the Company, incorporated in February 2000, acquired a working
interest in the Cherokee Basin of Eastern Kansas through the signing of a
joint venture with Verde Oil Company ("Verde") during the fiscal year ended
March 31, 2000. IOG-KS acquired a 100% working interest until payout, 80% net
revenue interest, in an 80-acre lease to be developed as an enhanced oil
recovery project. IOG-KS, with Verde as the operator, has drilled 33 wells and
currently has production flowing from sixteen of the wells. Sixteen of the
wells will be utilized as injection wells for a polymer injection enhanced oil
recovery project, with the remaining well being a water supply well for the
injection facility. IOG-KS also has the option to drill 88 additional and
recomplete 83 existing wells on offsetting acreage in conjunction with the
project. A 50% working interest, 40% net revenue interest in the property,
will revert to Verde when the costs of project development have been
recovered. Reserve reports prepared by independent petroleum engineers show
estimated proved reserves of 299,588 barrels of oil with a discounted pretax
future net cash flow of $3,963,023 for the conventional water flood
development that is in place.  A director of the Company is a partner and
Operations Manager for Verde.

     In September 2000 IOG-KS expanded its oil production operations with the
acquisition of sixteen active oil producing leases which encompass
approximately 2,000 acres located in the Owl Creek Field, Woodson County,
Kansas.  The Company owns a 100% working interest and 87.5% revenue interest
in the property.  The reserve reports prepared by independent petroleum
engineers show proved reserves of 144,986 barrels of oil with a discounted
pretax future net cash flow of $3,823,279.

                                       3



     Infinity Oil and Gas of Wyoming, Inc. ("IOG-WY"), a wholly owned
subsidiary of the Company was incorporated in January 2000 for the purpose of
acquiring leasehold with the intent of exploring for and developing coal bed
methane reserves.  To date IOG-WY has acquired leases on three projects that
include 66,500 acres.  IOG-WY acquired a working interest in a coal bed
methane property known as "Labarge" that contains 24,500 gross acres in the
Green River Basin of Wyoming. The lease on approximately 19,500 acres of the
property is subject to 30% participation election by the original lessor of
the acreage. If the party chooses not to participate in the drilling and
completion of a well, then the 100% working interest and the approximately 80%
associated revenue interest is retained by IOG-WY until the individual well
has generated earnings to recover the cost of the well plus the 300%
non-consent penalty. The Company has acquired a 100% working interest, with no
working interest provisions, and an approximate 80% net revenue interest on
the remaining 5,000 acres of the property. IOG-WY has drilled one coal bed
methane gas well and expects to drill four additional wells by the end of the
second quarter of fiscal year 2002 on the Labarge acreage. Reserve reports
prepared by independent petroleum engineers show total proved undeveloped
reserves of 699 Billion cubic feet ("BCF") of gas, 559 BCF net to the
Company's interest, with discounted (10%) future net cash flows before income
taxes of $374,407,259.  An additional prospect know as "Pipeline" was acquired
in July of 2000 with the acquisition of 15,000 acres of leasehold.  This
acreage is also in the Greater Green River Basin of Wyoming, but is separate
from the Company's Labarge acreage.  The Company acquired an initial 100%
working interest and an 82.5% net revenue interest in the property.  The
original owner of the lease has the option to elect to participate as a 25%
working interest owner with a 20.625% net revenue interest.  Through Federal
and State lease auctions the Company has expanded its acreage position in the
project by 13,000 acres, bringing its total acreage in the project to 28,000
acres.  The Company has permitted ten gas wells and two saltwater disposal
wells on the Pipeline project and has drilled and completed five of the gas
wells and one of the disposal wells.  Production testing and dewatering
continue on the five completed wells and the Company expects to have the wells
connected to commercial pipeline facilities by June 30, 2001.  Surface casing
has been set on the additional five gas wells that have been permitted and
these wells should be completed during the second quarter of fiscal year 2002.
Both saltwater disposal wells are expected to be operational within that same
time frame.  Reserve reports prepared by independent petroleum engineers show
total proved not producing reserves of 4,129,933 MCF net to the Company's
interest, with discounted future net cash flow before income taxes of
$6,897,242.  In addition to the proved not producing reserves, the Company
will receive credit for four offset locations classified as proved undeveloped
reserves.  These four locations are estimated to have reserves of 5,014,828
MCF net to the Company's interest, with discounted future net cash flow before
income taxes of $7,501,402.

     IOG-WY acquired leases on 16,000 acres of coal bed methane property in
the Piceance Basin in Northwestern Colorado in November 2000.  The Company
acquired a 100% working interest in the property.  Under the terms of the
lease agreement the Company must drill a total of five wells within the first
five years of the lease.

     On October 31, 1999, CIS-Oklahoma, Inc. ("CIS-OK"), a wholly owned
subsidiary of the Company acquired the real property and facilities that the
Company was leasing and occupying in Chanute and Ottawa, Kansas and
Bartlesville, Oklahoma from Consolidated Oil Well Services, Inc. ("COWS") for

                                       4



$210,000. COWS is the former owner of the oil and gas well service assets
purchased by Consolidated Industrial Services, Inc. ("CIS") in January of
1994.

     Unless the context otherwise requires, Infinity, Inc. and its
subsidiaries, Consolidated, IOG-KS, IOG-WY, CIS-OK and the inactive
subsidiaries; Infinity Research and Development, Inc. ("IRD"), L.D.C. Food
Systems, Inc. ("LDC"), COG, and CPI are referred to herein collectively as the
"Company".

BUSINESS ACTIVITIES

     The Company is primarily engaged in providing oil and gas well services
through Consolidated and in the identification, acquisition, and development
of oil and gas properties through IOG-KS and IOG-WY. The Company also operates
a wastewater treatment facility on a limited basis.

     The Company's Consolidated subsidiary provides services associated with
drilling and completion of oil and gas wells, including cementing, acidizing,
fracturing, nitrogen pumping and water hauling. Consolidated previously
provided on-site remediation services for hazardous and non-hazardous waste,
and operated a centralized water treatment facility and facilities to treat
brine water produced by oil and gas wells. In 1996, these facilities were
leased to and operated by an unrelated environmental services company. In
August 1998, the environmental services company abandoned these facilities
(See "Legal Proceedings") and the Company resumed operations. The Company
immediately shut down the facility in Chanute, Kansas and has dismantled that
facility.  The Cheyenne, Wyoming facility operates on a limited basis.

     The Company's IOG-KS and IOG-WY subsidiaries are engaged in the
acquisition and development of oil and gas properties. The activities of these
companies focus on the acquisition of interests that allow the company to
utilize its experience gained and assets owned as the largest oil and gas well
service provider in Eastern Kansas and Northeastern Oklahoma. IOG-KS current
interest focuses on the production of oil from an enhanced oil recovery
project in the Cherokee Basin of Eastern Kansas. IOG-WY has acquired an
interest in the Green River Basin of South West Wyoming for the purpose of
producing Coal Bed Methane Gas. For a complete description of the properties
and the activities related to these properties see "Item 2. Description of
Property   Oil and Gas Interest in Leasehold Acreage".

COMPETITION

     In the oil field services division the Company has limited competition in
Eastern Kansas. In Northeastern Oklahoma the Company competes with
Halliburton, a major oil field service company, and several small local
companies. The Company's bulk materials facilities, experienced work force,
and well maintained fleet of service vehicles puts it at an advantage and the
Company expects to see revenues to continue to improve in these locations.

     The Company continues to see competition from three major service
companies: Halliburton, BJ Services, and Dowell; and multiple smaller
cementing companies in Northeastern Wyoming. The Company may be at a
competitive disadvantage when compared to the major companies that are well
established with substantial financial resources. These companies can redirect

                                       5



assets and manpower, much like CIS has done, to insure that resources to meet
the growing demand are available. Some of the exploration and development
companies in this area also have the resources available to develop their own
service providers. The Company's ability to provide cementing services that
meet the market demand in a timely manner while providing quality service to
the wells will be crucial to the Company's ability to compete in this
extremely active market.

     Infinity's growth strategy includes the acquisition of oil and gas
properties. There can be no assurance, however, that the Company will be able
to successfully acquire identified targets, or have the financing available
for the acquisitions. Many companies are now focusing on the same types of
acquisitions that IOG-KS and IOG-WY are trying to make and many of these
companies have greater financial resources available for acquiring the
properties.

MAJOR CUSTOMERS

     The Company provided oil field services to over 450 customers through its
subsidiary, Consolidated Oil Well Services, Inc. during the fiscal year ended
March 31, 2001.  Prima Oil and Gas and Eakin Exploration purchased $644,925
and $616,139 in services, respectively, or about 7.3% and 7.0% respectively of
the Company's total revenue.

     Consolidated provided services to over 150 customers during the fiscal
year ended March 31, 2000.  Consolidated billed Pennaco Energy approximately
$630,000 and Black Rain/Spartain approximately $620,000 for services
accounting for approximately 12% each of the total revenues generated by the
Company during the fiscal year ended March 31, 2000.

EMPLOYEES

     The Company and its subsidiaries currently have approximately 95
employees. The Company intends to hire additional employees as the development
of its business require.

ITEM 2. DESCRIPTION OF PROPERY

BUSINESS PROPERTIES

     The Company's headquarters are located at 211 West 14th Street, Chanute,
Kansas 66720, along with the operating facilities of Consolidated's oil well
services business. This facility was originally leased from Consolidated Oil
Well Services, Inc. ("COWS"), the former owner of the business of
Consolidated, but was purchased from COWS in November of 1999. Funds for the
acquisition were obtained through a loan from a local bank, secured by the
properties.

     Consolidated is based on the business and operations acquired from COWS
in January of 1994 and Powder River Cementers, LLC in August of 1999. This
subsidiary provides numerous services associated with drilling and completion
of oil and gas wells, including cementing, acidizing, fracturing, nitrogen
pumping and water hauling. Consolidated provides these services out of service
facilities it owns in Chanute and Ottawa, Kansas; Bartlesville, Oklahoma; and
Gillette and Rock Springs, Wyoming utilizing a fleet of approximately 117

                                       6



vehicles. These vehicles were specifically designed to provide service to oil
and gas well operators working at depths ranging from 100 to 4,000 feet as is
usually the case in Eastern Kansas, Northeastern Oklahoma, and the coal bed
methane development of the Powder River and Green River Basins of Wyoming.

     The Company leases property near Cheyenne, Wyoming, which is the site of
the brine water treatment facility. Rent on this land lease is $1,000 per year
for a term of up to twenty-five years beginning July, 1994.

OIL AND GAS INTEREST IN LEASEHOLD ACREAGE

     In February of 2000 IOG-KS acquired, through a joint venture with Verde
Oil Company ("Verde"), a 100% working interest before payout in an 80-acre,
Verde operated lease in the Cherokee Field in Southeast Kansas known as the
Manson Lease. As a 100% working interest owner, IOG-KS is responsible for all
costs associated with the development of the property as a polymer augmented
water flood project. Total capital costs of this enhanced oil recovery project
were approximately $1,100,000 for the drilling of 16 injection wells, 16
producing wells and 1 water supply well, installation of oil gathering
facilities, and installation of the injection facilities on the property.

     The working interest acquired by IOG-KS is subject to a 20% royalty on
revenue generated and 50% working interest back-in provision held by Verde.
The joint venture agreement will allow IOG-KS to recover 100% of its
development costs prior to Verde regaining a 50% working interest in the
property. After payout, IOG-KS will have a 50% working interest and a 40% net
revenue interest. With the acquisition of the Manson Lease, IOG-KS also
received the option to drill an additional 88 wells and rework 83 wells on
offsetting properties under the same working interest provisions as were
utilized for the Manson Lease.

     In September 2000 IOG-KS expanded its oil production operations with the
acquisition of sixteen active oil producing leases which encompass
approximately 2,000 acres located in the Owl Creek Field, Woodson County,
Kansas.  The Company acquired the property for $510,000 through a public
auction and has invested an additional $17,400 to enhance the property's
production capabilities.  There are over 135 wells on the property including
over 105 wells drilled for oil production, eighteen wells for water injection
in order to provide reservoir enhancement, nine water supply wells and three
salt-water disposal wells.  The Company also acquired 80 acres of land on
which oil tank batteries and a production field office are located.  Total
cost of the land acquisition was $100,000.  The Company owns a 100% working
interest in all of the acreage and a 100% revenue interest in the land
purchased.  The remaining acreage is subject to a 12.5% royalty, giving the
Company an 87.5% net revenue interest.

     IOG-WY acquired a working interest in approximately 24,500 acres of Coal
Bed Methane mineral leases in the Labarge area of the Green River Basin of
South Central Wyoming in March 2000. IOG-WY acquired the leasehold for $1.1
million, or approximately $45.50 per acre and has spent an additional $234,420
in fees associated with perfecting the leases and lease rental and bonus
payments for a total leasehold investment of $1,263,741, or approximately
$51.58 per acre.  The lease on approximately 19,500 acres of the property is
subject to 30% participation election by the original lessor of the acreage.
If the party chooses not to participate in the drilling and completion of a

                                       7



well, then the 100% working interest and the approximately 80% associated
revenue interest is retained by IOG-WY until the individual well has generated
earnings to recover the cost of the well plus the 300% non-consent penalty.
The Company acquired a 100% working interest, with no working interest
provisions, and an approximate 80% net revenue interest on the remaining 5,000
acres of the property.   The Company has incurred $723,348 in cost to drill
one production well and reenter an existing well bore for evaluation as a
water disposal well. In addition to the direct cost incurred, the Company has
capitalized $310,974 in interest to the property as of March 31, 2001.
Drilling permits have been granted on three additional wells and the Company
expects the permitting for a fourth well to be completed by June 30 in order
for drilling activities to commence in the third quarter of fiscal 2002.

     The Pipeline prospect was acquired in July of 2000 with the acquisition
of approximately 15,000 acres of leasehold for $298,800, or about $20 per
acre.  This acreage is also in the Greater Green River Basin of Wyoming, but
is separate from the Company's Labarge acreage.  The Company acquired an
initial 100% working interest and an 82.5% net revenue interest in the
property.  The original owner of the lease has the option to elect to
participate as a 25% working interest owner with a 20.625% net revenue
interest.  Through Federal and State lease auctions the Company has expanded
its acreage position in the project by 14,400 acres, bringing its total
acreage in the project to 29,400 acres.  Including legal fees, permitting,
lease bonus payments and acquisition fees the Company has invested $1,267,609,
or $43.12 per acre in the project.  The Company has permitted ten gas wells
and two saltwater disposal wells on the Pipeline project and has drilled and
completed five of the gas wells and one of the disposal wells. The Company has
incurred costs of $2,255,198 as of March 31, 2001 to develop the property.
Production testing and dewatering continue on the five completed wells and the
Company expects to have the wells connected to commercial pipeline facilities
by June 30, 2001.  Surface casing has been set on the additional five gas
wells that have been permitted and these wells should be completed during the
second quarter of fiscal year 2002.  The two saltwater disposal wells are
expected to be operational within that same time frame.  In addition to the
direct cost incurred on the property, the Company has capitalized interest and
financing costs of $71,931 to the property.

     IOG-WY acquired leases on 16,237 acres of coal bed methane property in
the Antelope field of the Piceance Basin in Northwestern Colorado in November
2000 for the equivalent of approximately $36.00 per acre in cash and stock and
has capitalized $15,858 in interest to the property.  The Company acquired a
100% working interest and a 81.5% net revenue interest in the property.  Under
the terms of the lease agreement the Company must drill a total of five wells
within the first five years of the lease.

     The following table set forth the Company's oil and gas lease acreage and
the number of wells producing and drilled as of March 31, 2000 and 2001.
There was no acreage owned or wells producing or drilled as of March 31, 1999.







                                       8




                                            2000                2001
                                      Gross      Net      Gross      Net
                                      ------    ------    ------    ------
Labarge Undeveloped Acres             24,500    19,600    24,500    19,600
Labarge Developed Acres                 -         -         -         -
Labarge Producing Wells                 -         -         -         -
Labarge Exploratory Wells Drilled          1         1         1         1
Labarge Development Wells Drilled       -         -         -         -

Pipeline Undeveloped Acres              -         -       29,404    24,865
Pipeline Developed Acres                -         -         -         -
Pipeline Producing Wells                -         -         -         -
Pipeline Exploratory Wells Drilled      -         -            5         4
Pipeline Development Wells Drilled      -         -            1         1

Antelope Undeveloped Acres              -         -       16,237    13,233
Antelope Developed Acres                -         -         -         -
Antelope Producing Wells                -         -         -         -
Antelope Exploratory Wells Drilled      -         -         -         -
Antelope Development Wells Drilled      -         -         -         -

Cherokee Undeveloped Acres              -         -         -         -
Cherokee Developed Acres                  80        64        80        64
Cherokee Producing Wells                   2         2        21        17
Cherokee Exploratory Wells Drilled      -         -         -         -
Cherokee Development Wells Drilled        17        14        16        13

Owl Creek Undeveloped Acres             -         -         -         -
Owl Creek Developed Acres               -         -        2,000     1,750
Owl Creek Producing Wells               -         -          109        95
Owl Creek Exploratory Wells Drilled     -         -         -         -
Owl Creek Development Wells Drilled     -         -         -         -

OIL AND GAS RESERVES

     The table below sets forth the Company's quantities of proved reserves as
determined by independent petroleum engineers Fairchild and Wells, Inc. All of
these proved reserves were located in the continental U.S., and the present
value of estimated future net revenues from these reserves is on a
non-escalated basis discounted at 10 percent per year as of period indicated.
There has been no major discovery or other favorable or adverse event that is
believed to have caused a significant change in estimated proved reserves
subsequent to March 31, 2001.

                                       March 31, 2000     March 31, 2001

Estimated Proved Gas Reserves (MCF)     558,953,000         568,097,761
Estimated Proved Oil Reserves (BLS)         110,500             444,572
Present Value of Future Net Revenues
  (before future income tax expense)   $376,091,403        $395,653,569

     Reference should be made to Note 17 (Supplemental Oil and Gas Information
- Unaudited) to the consolidated financial statements for additional
information pertaining to the Company's proved oil and gas reserves. During
the fiscal year ended March 31, 2001, the Company did not file any reports
that include estimates of total proved net oil or gas reserves with any
federal agency.

                                       9



PRODUCTION, PRICE AND COST DATA

     During the fiscal year ended March 31, 2001 the Company received an
average selling price of $27.72 per barrel for the 13,561 barrels of oil sold
from the Owl Creek and Cherokee fields of Eastern Kansas.  The Company
incurred $16.28 per barrel, or $220,839, in operating expenses and taxes to
produce the oil.  As the effect of the tertiary recovery project continues to
increase production from the Cherokee field, the Company expects operating
expense per barrel to decrease to the $12.00 range.

     The Company began acquisition and development activities relating to the
Green River Basin and Cherokee Basin in the fiscal year ended March 31, 2000.
Prior to yearend, insufficient operating activities and production had
occurred for the Company to determine average production costs and average
selling prices for the year from the Cherokee Basin Property.

     During the year ended March 31, 1999, prior to the sale of the Company's
gas properties in the Raton Basin, the Company received an average selling
price of $1.12 per Mcf of gas sold.  Production costs were $1.63 per Mcf, or
$174,160 during this production period.

DELIVERY COMMITMENTS

     The Company presently has no agreements or commitments to provide
quantities of oil or gas in the future. The Company has not reported
information on oil or gas reserves to any federal agency or authority.

ITEM 3. LEGAL PROCEEDINGS

Great Plains Environmental, Inc. Lawsuit

     On November 4, 1998, the Company's Consolidated subsidiary filed a
lawsuit in the District Court of Neosho County, Kansas against Great Plains
Environmental, Inc. ("GPE") and its principals in connection with the
termination of GPE's lease of Consolidated's wastewater treatment facilities
in Cheyenne, Wyoming and Chanute, Kansas. Consolidated was seeking damages in
excess of $500,000 for unpaid rent, costs related to Consolidated regaining
control of the facilities, missing equipment and tools, and attorneys' fees.
Consolidated was also seeking damages from certain principals of GPE under
personal guarantees from such persons, and for other reasons.

     In January 1999, GPE and the other defendants filed an answer generally
denying the claims of Consolidated, and filed a counter-claim alleging that
Consolidated had locked GPE out of the facilities and misrepresented the
condition of the equipment at these facilities. GPE was seeking damages in
excess of $500,000 from Consolidated.

     The court ordered that all claims and defenses in this case be handled
through arbitration. Prior to the arbitration trial, Consolidated was notified
that GPE had filed bankruptcy in the State of Colorado. The case was presented
to arbitration in March of 2000. The claims against Consolidated were
dismissed by the arbitrator when the defendants failed to appear at the
arbitration trial and present evidence. The arbitrator ruled in favor of
Consolidated on its claims and in April of 2000 awarded Consolidated claims


                                       10


and damages of $890,000. Subsequent to the arbitration ruling the principals
of GPE also filed for Bankruptcy protection in the State of Colorado. The
Company does not believe it will collect any claims or damages related to this
lawsuit.

Blue Green Corporation of the Rockies Lawsuit

     In March 1999, Bluegreen Corporation of the Rockies ("Bluegreen") filed a
complaint against the Company's subsidiary, COG and H. Huffman and Company
("Huffman") in the U. S. District Court for the District of Colorado. The
subsidiary was served on June 29, 1999. The gas development property that the
Company sold effective December 31, 1998 was subleased from Huffman who had
leased the property from Bluegreen. Bluegreen alleges breaches by Huffman and
COG under this lease and claims damages and other relief. COG answered the
complaint and filed counterclaims against Bluegreen for damages related to
breaches of the same lease. COG also filed a third party complaint for
indemnification against Evergreen Resources, Inc. based upon their assumptions
of rights and responsibilities under this lease pursuant to the sale agreement
effective December 31, 1998. The case was dismissed without prejudice by
consent of all parties in October 1999. In order to eliminate the statute of
limitations associated with these claims, the parties have put in place a
tolling agreement and any party may re-file their claims at any time. However,
the Company believes that it still has no liability in relation to the claims
and that the claims will not have an impact on the liquidity of the Company.

Weatherford Enterra Compression Co. Lawsuit

     Weatherford Enterra Compression Co. ("Weatherford") filed a complaint
against the Company's subsidiary, COG in the Nueces County (Texas) County
Court. The subsidiary was served with a copy of the Texas lawsuit in January
1999. According to documents received from the Company's legal counsel,
Weatherford is seeking damages of between $100,000 and $135,000 in rental
payments and reimbursement for interest, court costs and attorney fees. COG
contracted with Weatherford to rent a natural gas compressor as part of its
natural gas gathering system in the Raton Basin of Colorado. The compressor
broke down frequently and a dispute arose as to the amounts due Weatherford
under the lease. Potential damages are not covered by insurance. But, in a
Purchase and Sale Agreement between COG and Evergreen executed in January
1999, Evergreen assumed all responsibility for resolving all claims made by
Weatherford. The Company believes it has no liability in relation to the
claims and that the claims will not have an impact on the liquidity of the
Company.   In June 2000 Evergreen agreed to settle Wetherford's claims against
COG but no formal settlement agreement has been executed as of the date of
this report.

     There are no other pending material legal proceedings to which the
Company is a party.

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

     No matters were submitted to a vote of the Company's shareholders during
the fourth quarter of the fiscal year covered in this Report.




                                       11



<PAGE>
                                    PART II

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

     Principal Market or Markets. The Company's Common Stock began trading on
the Nasdaq Small-Cap Market on June 29, 1994, under the symbol "IFNY." The
following table sets forth the high and low closing sale prices for the
Company's securities as reported by the Nasdaq Stock Market.

     Quarter Ended                         High         Low

     June 30, 1999                        $ 3.38      $ 1.06
     September 30, 1999                     2.69        1.56
     December 31, 1999                      2.69        1.63
     March 31, 1999                         8.56        1.63

     June 30, 2000                          7.13        5.25
     September 30, 2000                    10.00        5.63
     December 31, 2000                      9.00        4.25
     March 31, 2001                        10.19        6.19

     Approximate Number of Holders of Common Stock. The number of record
holders of the Company's $0.0001 par value common stock at June 1, 2001, was
228 and the Company believes it has over 1,500 beneficial owners of such
stock.

     Dividends. Holders of common stock are entitled to receive such dividends
as may be declared by the Company's Board of Directors. No dividends have been
paid with respect to the Company's common stock and no dividends are
anticipated in the foreseeable future. Pursuant to the terms of the Loan
Agreement with CIT Group/Credit Finance, Inc., the Company's Consolidated Oil
Well Services, Inc. subsidiary is prohibited from paying any dividends to the
Company during the term of that agreement. (See "Item 6.   Liquidity and
Capital Resources")

     Sales of Unregistered Securities. During the quarter ended March 31,
2001, the Company did not issue any securities that were not registered under
the Securities Act of 1933, as amended.

ITEM 6. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

     Infinity, Inc. and its subsidiaries IOG-WY, IOG-KS and Consolidated are
engaged in identifying and acquiring oil and gas acreage, exploring and
developing acquired acreage, and providing oil and gas well services. The
Company's acquisition strategy focuses on acreage or strategic alliances that
allow the Company to utilize its service equipment and the experience gained
as the Company became the largest oilfield service company in Eastern Kansas
and Northeast Oklahoma while developing the acreage. Infinity's primary focus
is on the development of its coal bed methane properties located on 54,000
gross acres in the Green River Basin of Wyoming and 16,000 gross acres in the
Piceance Basin of Colorado, the development of an enhanced oil recovery
project located on 80 acres in the Cherokee Basin of Eastern Kansas and on
providing oil and gas well service in Eastern Kansas, Northeast Oklahoma, and
in the Powder River Basin of Wyoming. The Company's involvement in the
wastewater disposal industry through its wastewater division has been scaled
back significantly with only limited operations occurring at the Cheyenne,
Wyoming facility.

                                       12



RESULTS OF OPERATIONS

     The Company's operations have been focused on providing oil field
services to customers in Eastern Kansas, Northeast Oklahoma, and Northeast
Wyoming while it evaluated and acquired leasehold acreage that it could
explore for oil and gas reserves.  Beginning in fiscal year ended March 31,
2000 the Company began oil and gas exploration, development and production
activities in Kansas and Wyoming and expects to expand these activities during
the next fiscal year with the drilling of 40   50 coal bed methane gas wells
in Wyoming.

Oil Field Operations

     During the fiscal year ended March 31, 2001 Consolidated, the oil field
services segment of the Company, generated $8,476,385 in revenue and
$4,665,781 in cost of sales compared to revenues of $5,122,404 and cost of
sales of $3,026,821 generated in the fiscal year ended March 31, 2000.  The
increase in revenues in the year ended March 31, 2001 was due to increased
activity in all of the Company's service areas and in all of the types of
service work performed.

     Revenues from well stimulation services performed from facilities in
Bartlesville, Oklahoma and Chanute, Kansas and sales of the materials related
to these services increased to $3,189,007, or 39%, from $2,289,603 in revenue
for the fiscal year ended March 31, 2000.  The number of service calls that
the Company made in the fiscal year ended March 31, 2001 increased by
approximately 6% when compared to the fiscal year ended March 31, 2000 while
the revenue per service call increased 34%.  The costs of materials associated
with well stimulation services increased to $590,217, or 27%, from $463,376.
This $126,841 increase in materials costs was mainly due to an $116,362
increase in the cost of sand, a $67,652 increase in the cost of acid and
fracturing chemicals and a $76,970 decrease in the cost of nitrogen used in
the fracturing services.

     Consolidated's other main service activity is providing cementing
services for the cementing of production casing when wells are drilled or the
plugging of abandoned wells.  These services are provided from all of the
Company's service locations and generated revenue of $4,509,080 during the
fiscal year ended March 31, 2001 compared to revenue of $2,339,991 generated
from cementing services during the previous fiscal year.  The average revenue
per well cemented rose 56% to $2,058 per well in fiscal year 2001 compared to
$1,318 per well in the prior fiscal year.  The increase of $2,169,089, or 93%,
in sales of cementing services was the result of several factors including the
company providing cementing services on 432 more wells during the fiscal year
ended March 31, 2001 compared to the previous fiscal year.  Approximately 380
of the additional wells cemented were serviced from the Company's Gillette,
Wyoming facility where it had its first full year of operations, compared to 7
months of operations in the fiscal year ended March 31, 2000.  The increase in
cementing activity in the Powder River Basin of Wyoming from the Company's
Gillette, Wyoming facility, resulted in revenues of $2,079,034 during the
fiscal year ended March 31, 2001 compared to revenue of $900,121 in the same
period of 2000. The Bartlesville service facility in Northeast Oklahoma also
saw a significant increase to 843 wells cemented, which generated $1,393,451
of revenue in the fiscal year ended March 31, 2001 compared to cementing 489
wells which generated $539,879 in revenue in the fiscal year ended March 31,

                                       13



2000.  Revenue generated from cementing services provided from the Company's
Chanute, Kansas facility fell from $589,784 in fiscal year 2000 to $447,725 in
fiscal year 2001 as a result of a reduction to 279 wells cemented in fiscal
year 2001 from 626 wells cemented from the facility in fiscal year 2000.
Revenues from the Ottawa, Kansas service camp increased to $425,405 for
cementing services in fiscal year 2001 compared to revenues of $310,207 for
the fiscal year ended March 31, 2000.  This 37% increase in revenue was
achieved on only a 5% increase in the number of wells cemented from the
facility.  The Company has also established a facility in Rock Springs,
Wyoming in order to serve its future needs for oil field services and to
expand the Company's service area.  The Company recognized cementing sales of
$163,465 in the fiscal year ended March 31, 2001 from this facility.

     The cost of materials used in performing cementing services increased to
$1,111,382 in the fiscal year ended March 31, 2001 compared to cost of
materials of $596,376 incurred in the fiscal year ended March 31, 2000.  This
increase in cost was the result of the increased use of materials due to the
larger number of jobs performed, the increased cost of the cement and
additives as supplies tightened due to increased construction activity drawing
from the suppliers, and an increase of 10% to 15% for delivery of the
materials to the Company's bulk facilities due to fuel surcharges put in place
by the transporters.

     The Company's revenue from other services provided by the oil field
service segment increased to $778,298 in the fiscal year ended March 31, 2001
from $492,810 incurred in the fiscal year ended March 31, 2000.  Many of the
additional services that the Company provides its customers are directly
related to well stimulation activities and well cementing activities.  These
services include water transportation to the well stimulation or well
cementing job sites using the Company's fleet of tractor/trailers and vacuum
trucks as well as spill containment and cleanup for pipeline, refining, and
industrial customers using the Company's Hazardous Materials certified 80
barrel vacuum trucks.

     During the fiscal year ended March 31, 2001 the Company's direct costs of
providing oil field services, excluding materials, increased to $2,964,182
compared to $1,967,069 in expenses incurred in the previous fiscal period.  A
$459,716 increase in drivers' salaries to $1,423,879 in the most recent fiscal
year from $964,163 paid in the prior fiscal year was the result of increased
staffing levels and increased overtime costs due to the additional service
work performed by the Company.  Consolidated also incurred a large increase in
maintenance costs on its fleet due to the significant increase is service work
performed during the fiscal year ended March 31, 2001.  Vehicle maintenance
costs increased from $576,631in the fiscal year ended March 31, 2000 to
$903,370 in the fiscal year ended March 31, 2000.  Fuel costs to operate the
Company's fleet of service vehicles also incurred an approximate 74% increase
from $222,255 in the fiscal year ended March 31, 2000 to $385,960 in the
fiscal year ended March 31, 2001.

     Gross profit for the oil field service segment of the Company increased
82% to $3,810,604 in the fiscal year ended March 31, 2001 from $2,095,583 of
gross profit for the fiscal year ended March 31, 2000.



                                       14



     Operating expenses incurred by the oilfield services segment of the
Company increased to $2,336,748 in the fiscal period ended March 31, 2001 from
$1,936,381 of expense in the fiscal year ended March 31, 2000.  Employee costs
associated with the addition of staffing to service the demand for the
Company's oil field services increased by approximately $231,000 while
depreciation expense increased by approximately $112,000 due to the higher
depreciable base of Consolidated's assets due to the acquisitions of several
new service vehicles.  General office expenses such as utilities, postage,
safety programs and computer support also increased by approximately $75,000
during the fiscal year ended March 31, 2001.

     Other income and expenses for the oilfield service segment decreased from
a net expense of $246,676 for the fiscal year ended March 31, 2000 to a net
expense of $133,138 for fiscal year ended March 31, 2001.  The decrease in net
expense was mainly due to the gain recognized on the sale of rolling stock
from the Company's fleet.  Because of a decrease in demand for its nitrogen
pumping services and a decrease in cost associated with contracting for those
services when they are needed, the Company disposed of its nitrogen pump
truck, nitrogen transport and nitrogen bulk storage facility for a net gain of
approximately $148,000.  The Company incurred losses on the sale of other oil
field service assets of approximately $12,000 during the fiscal year ended
March 31, 2001 compared to a loss of approximately $4,500 during the fiscal
year ended March 31, 2000.

     Net income for the oil field service segment of the Company increased to
$1,340,718 for the fiscal year ended March 31, 2001 compared to a net loss of
$87,474 for the prior year.

Oil and Gas Production

     During the year ended March 31, 2001 the oil and gas production segment
of the Company recorded revenue of $375,978 from the sale of oil from the
Cherokee Basin and Owl Creek Field and incurred $220,839 of lease operating
expense to produce the oil from these properties.  The Company also recognized
depreciation and depletion expense of $64,860 associated with the investment
in the oil producing properties.  When it began setting up administrative
functions associated with the development of its coal bed methane properties
in Wyoming the Company incurred additional expense of $50,484 for salaries and
general office expenses, including $4,018 in depreciation expense, associated
with the Denver, Colorado office of IOG-WY.  The net income from the oil and
gas producing activities increased to $39,795 for the fiscal year ended March
31, 2001 compared to a net loss from oil and gas producing activities of
$93,374 for the fiscal year ended March 31, 2000.  The Company had revenue
from oil production activities of $7,556 and lease operating expenses of
$6,966 for the fiscal year ending March 31, 2000.  Depreciation expense of
$16,357 was also recognized in the fiscal year ended March 31, 2000.  As was
discussed in Section 3., Legal Proceedings, the Company continues to be named
as a plaintiff in several cases related to the gas property that was owned in
the Raton Basin.  The Company has incurred $3,459 in legal fees during the
period ended March 31, 2001 and incurred legal expenses of $77,607 during the
period ended March 31, 2000.  The legal expenses incurred were associated with
issues that occurred prior to the sale of the Company's gas properties in the
Raton Basin in January 1999.



                                       15



Environmental Services

     The environmental services segment of the Company generated revenue of
$7,906 and incurred $92,275 in costs of goods sold during the fiscal year
ended March 31, 2001 compared to $42,838 in revenue and  $79,271 in cost of
goods sold in the year ended March 31, 2000.  Operating expenses of $108,381
were incurred in the year ended March 31, 2001 and $142,197 in the year ended
March 31, 2000 including $41,016 and $63,767 of depreciation expense for each
year respectively.

Corporate Activities

     Expenses incurred in corporate activities were $821,829 in the period
ended March 31, 2001 compared to corporate expenses of $917,249 incurred in
the period ended March 31, 2000.  Expenses related to Stockholder matters
increased $92,122, and corporate salaries and benefits increased $66,939 while
consulting fees decreased $32,786, legal and accounting fees decreased $66,680
and travel and entertainment expense decreased $140,948 during the period
ended March 31, 2001 compared to the period ended March 31, 2000.

     During the period ended March 31, 2001 the Company recognized a gain of
$2,780,044 on the sale of 225,000 shares of the Evergreen Resources securities
that it held.  The average net sales price on 125,000 shares of securities was
$27.19 per share and the average net sales price for 100,000 shares of the
stock was $31.24 per share.

Net Income

     The Company experienced net income before taxes of $2,477,344 for the
fiscal year ended March 31, 2001 compared to a net loss before taxes of
$($1,393,362).  Deferred income tax expense of $710,000 was recognized in the
period ended March 31, 2001 compared to a deferred income tax benefit as a
result of net operating loss carry-forward of $640,764 recognized in the
period ended March 31, 2000. Net income after taxes for the period ended March
31, 2001 was $1,767,344 compared to a net loss after taxes of ($752,598).

LIQUIDITY AND CAPITAL RESOURCES

     As of March 31, 2001, the Company had a working capital surplus of
$105,793 compared to a working capital deficit of $1,111,106 at March 31,
2000. The increase in working capital when compared to the prior year is
mainly due to the increase in the current assets that matches the securities
held for resale with the current portion of long-term debt that is secured by
the securities.

     During the year ended March 31, 2001, cash provided by operating
activities was $1,157,379 compared to cash used by operating activity of
$995,878 for the year ended March 31, 2000. The primary reason for the
increase in operating cash flow was the increase in net income to  $1,767,344
for the fiscal year ended March 31, 2001 from a net loss of ($752,598) during
the fiscal year ended March 31, 2000.

     Direct net cash provided by the operation of the oilfield services
segment and the oil and gas production segments of the Company was $2,298,414
and $108,133 respectively for the year ended March 31, 2001. Net cash used in
the operation of the environmental services segment, and for corporate
activities was $151,734, and $767,390 respectively during this same period.

                                       16



     Cash used in investing activities during the year ended March 31, 2001
was $715,454 compared to $3,690,751 used in the year ended March 31, 1999. The
decrease in cash used in investing activities during the year ended March 31,
2001 was the result of the Company being able to liquidate a portion of its
investments in marketable securities in order to purchase oil and gas
properties and begin development of those properties with the proceeds from
the sales.

     The Company acquired the Labarge property, 24,500 acres of leasehold in
the Green River Basin of Wyoming, and drilled one test well for a total cost
of $1,445,423 in the fiscal year ended March 31, 2000.  The Company has
incurred $852,640 in capital expenditures associated with the development of
the property and the addition of adjacent leasehold during the fiscal year
ended March 31, 2001. The Company expects to drill an additional 4 wells on
the acreage, equip the 5 wells for production, and install gathering and water
disposal facilities associated with operating the properties during the third
quarter of fiscal year 2002 at an estimated additional cost of $2,000,000.

     The Company also increased its investment in oil and gas properties with
the purchase of the Pipeline Prospect, also located in the Greater Green River
Basin of Wyoming.  The Pipeline prospect was acquired in July of 2000 with the
acquisition of approximately 15,000 acres of leasehold for $298,800, or about
$20.00 per acre.  Through Federal and State lease auctions the Company has
expanded its acreage position in the project by 14,400 acres, bringing its
total acreage in the project to 29,400 acres.  Including legal fees,
permitting, lease bonus payments and acquisition fees the Company has invested
$1,267,609, or $43.12 per acre in the project.  The Company has permitted ten
gas wells and two saltwater disposal wells on the Pipeline project and has
drilled and completed five of the gas wells and one of the disposal wells.
The Company has incurred costs of $2,255,198 as of March 31, 2001 to develop
the property.  In addition to the direct cost incurred on the property, the
Company has capitalized interest and financing costs of $71,931 to the
property.  The Company expects to drill forty additional wells on the property
before the end of the current fiscal year at an estimated total cost of
$5,000,000.

     Through the purchase of the Antelope prospect, the company acquired an
additional 16,237 gross acres of coal-bed methane properties in the Piceance
Basin of Colorado.  The Company utilized a combination of a $366,621 cash
payment and the issuance of Company stock valued at $225,673 to acquire the
property.  The Company is committed to drill five wells on the property during
the remaining five years of the lease.

     The Company continued the development of the Manson Lease in the Cherokee
Basin of Eastern Kansas through a joint venture agreement with Verde. The
original capital costs incurred with this acquisition were $150,000 associated
with the lease acreage and $254,163 in development costs. During the fiscal
year ended March 31, 2001 the joint venture operator completed drilling the 16
production wells, 16 injection wells, a water supply well and the installation
of the associated production, gathering, and injection facilities. The Company
incurred total costs of approximately $1.1 MM on this project.  In addition to
the development of the Manson Lease, the Company acquired developed oil
producing leases in the Owl Creek Field of Eastern Kansas for $527,400.



                                       17



     The Company also acquired $1,158,223 in other oil field service equipment
during the year ended March 31, 2001.  The Company borrowed $542,929 through
various credit arrangements and utilized approximately $500,000 received from
the refinancing completed with The CIT Group.  The Company also invested
approximately $1,703,756 in other assets, including $1,650,000 in aviation
assets that were fully funded by the seller.

     During the fiscal year ended March 31, 2001 the Company received proceeds
of  $704,291 from the issuance of 233,576 shares of the Company's common
stock.  The Company also purchased a leasehold in the Antelope prospect
through the issuance of 40,800 shares of Company stock at a value of $225,673.

     On February 6, 1998, the Company's Consolidated subsidiary obtained a
credit facility for a total of $4,000,000. This facility provided $2,7000,000
of immediate equipment financing requiring payments of $45,000 per month until
maturity at February 6, 2001. In addition, the facility provides $1,000,000
availability for additional equipment purchases and a revolving credit line
based on 80% of current accounts receivable. The Company took an advance of
$100,000 on this availability during the year ended March 31, 2000. The
proceeds from this advance were used to finance a portion of the Powder River
Cementers, LLC acquisition. Interest on this facility is payable monthly at a
rate of prime plus 2%. This facility is secured by substantially all oilfield
service equipment and other assets of the oil field service subsidiary.
Further security is provided by the personal guaranty of the Company's
President secured by the pledge of a portion of the President's stock in the
Company.  Effective January 22, 2001 the $4,000,000 credit facility due to
mature on February 6,2001 was extended for a period of one year and amended to
reflect an interest rate of prime rate plus 1.75% on the term loan and prime
rate plus 1.5% on the revolving credit balance.  The new loan balance of
$1,669,000 which included $500,000 in proceeds requires payments of $46,361.11
per month until February 2002.  The lender is discontinuing the business of
servicing facilities that are written for less than $10,000,000 and is
assisting the Company in obtaining a new credit facility through a different
lender.  The Company is currently discussing refinancing this facility with
several lenders.  The additional proceeds of $500,000 received from the
refinancing were immediately used for the purchase of other oil field service
assets.

     In April 1999, the Company entered into a financing agreement
collateralized by 125,000 shares of the Evergreen stock held by it with a fair
value of $2,500,000 at that time. Under the agreement, the Company borrowed
$2,035,950 with borrowings due April 2000. The Company was obligated to pay
back an amount equal to $2,181,250 so long as the Evergreen stock was trading
between $17.25 and $22.59 per share. This equated to an approximate 7%
effective interest rate and the Company recorded $141,980 in interest expense
related to these borrowings during the year ended March 31, 2000. Subsequent
to March 31, 2000, on the closing date of the financing agreement, the Company
entered into a new financing agreement secured by the same 125,000 shares of
Evergreen stock to fund the payment of the original note. Due to the $24.50
price of the Evergreen stock on the April 13 settlement date the Company was
obligated to pay back $2,420,547 which was funded by the proceeds of the new
financing agreement and with $70,393 of cash on hand. The additional cost
associated with the settlement of the original financing was $238,750. The
Company had accrued $132,270 in additional expense associated with this issue
in the year ended March 31, 2000. The $106,480 in additional settlement costs

                                       18



will be recognized as interest expense in the future period. Under the terms
of the new financing agreement with an effective date of April 18, 2000 the
Company received $2,350,154 that was used to settle the original financing
agreement. The Company is obligated to pay back $2,742,500 on the termination
date of April 15, 2002 as long as the price of the Evergreen stock is between
a floor price of $21.94 and a ceiling price of $32.91 per share. If the price
of the stock is less than the floor price of $21.94 on the termination date
then the Company will only be obligated to pay back an amount equal to the
price of the stock multiplied by the number of shares. If the price of the
stock exceeds the ceiling price of $32.91 per share on the termination date
then the company will incur additional costs in the settlement by the amount
that the price exceeds the ceiling price multiplied by the number of shares.
Subsequent to March 31, 2001 the Company sold the 125,000 shares for
approximately $5,175,000, terminated the financing agreement and paid all
obligations associated with the financing agreement.  The termination of the
financing agreement and sale of the Evergreen stock generated net proceeds of
$992,168.

     Effective November 12, 1999 the Company entered into a financing
agreement collateralized by 100,000 shares of the Evergreen stock held by it
with a fair value of $1,950,000 at that time. Under the agreement, the Company
borrowed $1,652,596 with borrowings due November 7, 2001. The Company was
obligated to pay back an amount equal to $1,904,000 so long as the Evergreen
stock is trading between $19.04 and $27.51 per share. This equates to an
approximate 7.1% effective interest rate and the Company recorded $113,368 in
interest expense related to these borrowings during the year ended March 31,
2001.  During March 2001 the Company sold the 100,000 shares for approximately
$3,120,000, terminated the financing agreement and paid all obligations
associated with the agreement.  The termination of the contract and the sale
of the Evergreen stock generated net proceeds of $557,114.

     During the fiscal year ended March 31, 2001 the Company sold 125,000
shares of Evergreen Stock for $3,400,000, resulting in a gain on the sale of
securities of approximately $1,323,000.

     Effective March 7, 2000 the Company entered into a financing agreement
collateralized by 100,000 shares of the Evergreen stock held by it with a fair
value of $2,450,000 at that time. Under the agreement, the Company borrowed
$1,713,454 with borrowings due March 4, 2001. The Company was obligated to pay
back an amount equal to $2,021,000 so long as the Evergreen stock is trading
between $20.21 and $30.31 per share.  This equates to an approximate 7.8%
effective interest rate and the Company recorded $148,226 in interest expense
related to these borrowings during the year ended March 31, 2001. Subsequent
to March 31, 2001 the Company sold the 100,000 shares, terminated the
financing agreement and paid all obligations associated with the agreement.
The termination of the contract and sale of the Evergreen stock generated net
proceeds of $714,237.

     During the year ended March 31, 2000, the Company entered into an
agreement to purchase the facilities that it currently occupies in Chanute and
Ottawa, Kansas and Bartlesville, Oklahoma for $210,000. The Company also
entered into an agreement to purchase additional facilities in Gillette,
Wyoming for $140,000. Financing for the purchases was arranged through local
sources at a rate of 8.5% for 84 months and closings on the purchases occurred
on November 15th and November 18th respectively.

                                       19



     Subsequent to March 31, 2001 the Company issued $6,475,000 in 8%
convertible notes through a private placement.  These notes mature in 5 years
and are convertible into common stock at a price of $10.00 per share.  The
Company has agreed to register the shares to be issued upon the conversion of
the notes under the Securities Act of 1933.  Net offering proceeds of
$6,089,500 from the offering were received on June 13, 2001.  The Company
intends to use the proceeds of this placement to develop its coal bed methane
properties.

     Management believes that the cash flow generated by the increase in oil
field service sales, generated by crude oil sales, through borrowings secured
by Company assets, and from the proceeds generated by the note offering will
provide sufficient liquidity to meet the capital and operating needs for the
remainder of the fiscal year ended March 31, 2002. The ability of the Company
to finance future projects will be dependent on Company's ability to
successfully develop the Pipeline property and generate revenue through gas
sales from the property and economically generate oil sales from the Owl Creek
and Manson properties, and generate positive cash flow from its oilfield
service segment.

ITEM 7. FINANCIAL STATEMENTS.

     Please see pages F-1 through F-27.

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.

     Not applicable.



























                                       20




                                   PART III

ITEM 9, 10, 11, 12. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
PERSONS; COMPLIANCE WITH SECTION 16(A) FO THE EXCHANGE ACT; EXECUTIVE
COMPENSATION; SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT;
AND CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

     The information required by these Items is incorporated herein by
reference to the Company's definitive Proxy Statement relating to the Annual
Meeting of Shareholders to be held July 19, 2001.

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K.

     (a) EXHIBITS.

EXHIBIT
NUMBER     DESCRIPTION                   LOCATION

   3       Articles of Incorporation     Incorporated by reference to
           and Bylaws                    Exhibit No. 3 to the Registrant's
                                         Registration Statement (No.
                                         33-17416-D)

   3.1     Articles and Amendment to     Incorporated by reference to
           Articles of Incorporation     Exhibit No. 3.1 to the Registrant's
                                         Annual Report on Form 10-K for
                                         the fiscal year ended March 31,
                                         1992 (File No. 33-17416-D)

  10.1     Stock Option Plan             Incorporated by reference to
                                         Exhibit No. 10.1 to the Registrant's
                                         Annual Report on Form 10-K for the
                                         fiscal year ended March 31, 1992
                                         (File No. 33-17416-D)

  10.2     1999 Stock Option Plan        Incorporated by reference to
                                         Exhibit No. 10.2 to Registrant's
                                         Annual Report on Form 10-K for the
                                         fiscal year ended March 31, 2000

  10.3     Agreement Concerning the      Incorporated by reference to
           Exchange of Common Stock      Exhibit No. 10 to Registrant's
                                         Report on Form 8-K dated March
                                         10, 1992

  10.4     Employment Agreement          Incorporated by reference to
           with Stanton E. Ross          Exhibit No. 10.4 to the Registrant's
                                         Annual Report on Form 10-K for the
                                         fiscal year ended March 31, 1992
                                         (File No. 33-17416-D)






                                       21



  10.5     Asset Purchase Agreement      Incorporated by reference to
           dated January 7, 1994,        Exhibit No. 2 to the Registrant's
           among Infinity, Inc. Con-     Current Report on Form 8-K dated
           solidated Industrial Ser-     January 21, 1994
           vices, Inc., Consolidated
           Oil Well Services, Inc.
           and Edsel E. Noland

  10.6     Operating Lease with Great    Incorporated by reference to
           Plains Environmental, Inc.    Exhibit 10.17 to Registrant's
                                         Annual Report on Form 10-K
                                         for the fiscal year ended
                                         March 31, 1997

  10.7     Purchase and Sale Agreement   Incorporated by reference to
           dated January 12, 1999,       Exhibit 10.1 to Registrant's
           between Evergreen Resources,  Current Report on Form 8-K
           Inc. and CIS Oil & Gas, Inc.  dated January 13, 1999

  10.8     Assignment of Participation   Incorporated by reference to
           Agreement, Conveyance, and    Exhibit 10.8 to the Registrant's
           Bill of Sale between          Annual Report on Form 10-KSB
           Infinity Oil and Gas, Inc.    for the fiscal year ended
           and Infinity Oil and Gas of   March 31, 2000.
           Wyoming, Inc.

  10.9     Participation Agreement       Incorporated by reference to
           between Wold Oil Properties,  Exhibit 10.9 to the Registrant's
           Inc. and Infinity Oil and     Annual Report on Form 10-KSB
           Gas, Inc.                     for the fiscal year ended
                                         March 31, 2000.

  10.10    Assignment of Oil and Gas     Incorporated by reference to
           Leases, Operating Rights      Exhibit 10.10 to the Registrant's
           and Record Title, Conveyance  Annual Report on Form 10-KSB
           and Bill of Sale between      for the fiscal year ended
           Infinity Oil and Gas, Inc.    March 31, 2000.
           and Infinity Oil and Gas of
           Wyoming, Inc.

  10.11    Joint Operating Agreement,    Incorporated by reference to
           Manson Lease, between         Exhibit 10.11 to the Registrant's
           Verde Oil Company and         Annual Report on Form 10-KSB
           Infinity Oil and Gas of       for the fiscal year ended
           Kansas, Inc.                  March 31, 2000.

  10.12    2000 Stock Option Plan        Filed electronically herewith

  10.13    2001 Stock Option Plan        Filed electronically herewith

  10.14    Form of 8% Convertible        Filed electronically herewith
           Subordinated Notes




                                       22



  10.15    Purchase and Sale Agreement   Filed electronically herewith
           dated November 3, 2000
           between Antelope Energy
           Company, LLC, Coyote
           Exploration Company and
           Melange Associates, Inc.
           and Infinity Oil and Gas of
           Wyoming, Inc.

   21      Subsidiaries of the           Filed electronically herewith
           Registrant

   23      Consent of Sartain,           Filed electronically herewith
           Fischbein & Co.


     (b) REPORTS ON FORM 8-K. None.








































                                       23



                         INFINITY INC. AND SUBSIDIARIES
                                TABLE OF CONTENTS

Independent Auditors' Report                                    F-2

Financial Statements:

    Consolidated Balance Sheet - March 31, 2001                 F-3

    Consolidated Statements of Operations -
         Years Ended March 31, 2001 and 2000                    F-4

    Consolidated Statements Changes in Stockholders' Equity -
         Years Ended March 31, 2001 and 2000                    F-5

    Consolidated Statements of Cash Flows -
         Years Ended March 31, 2001 and 2000                    F-6 - F-7

    Notes to Consolidated Financial Statements                  F-8 - F-27





































                                   F-1



                        INDEPENDENT AUDITORS' REPORT



To the Board of Directors and Shareholders
Infinity, Inc.


We have audited the consolidated balance sheet of Infinity, Inc. and
Subsidiaries as of March 31, 2001 and the consolidated statements of
operations, changes in stockholders' equity and cash flows for the years ended
March 31, 2001 and 2000.  These consolidated financial statements are the
responsibility of the Company's management.  Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America.  Those standards require that we
plan and perform the audits to obtain reasonable assurance about whether the
consolidated financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated financial statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall consolidated financial statement
presentation.  We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Infinity,
Inc. and Subsidiaries, as of March 31, 2001, and the results of their
operations and their cash flows for the years ended March 31, 2001 and 2000,
in conformity with accounting principles generally accepted in the United
States of America.


                                 /s/ Sartain Fischbein & Co.



May 8, 2001, except for Note 16,
as to which the date is June 14, 2001
Tulsa, Oklahoma















                                   F-2




                    INFINITY, INC. AND SUBSIDIARIES
                      CONSOLIDATED BALANCE SHEET
                            MARCH 31, 2001

                                ASSETS

CURRENT ASSETS
    Cash                                                        155,358
    Accounts Receivable, less allowance for doubtful
     accounts of $10,000                                      1,488,490
    Inventories                                                 264,249
    Investment securities                                     3,781,000
    Prepaid Expenses                                            108,636
                                                            -----------
     TOTAL CURRENT ASSETS                                     5,797,733

PROPERTY AND EQUIPMENT, at cost, less
    accumulated depreciation and impairment                   6,107,385
INVESTMENT SECURITIES                                         4,727,740
OIL AND GAS PROPERTIES, using full cost accounting
    net of accumulated depreciation, depletion, and
     amortization:
      Subject to amortization                                 5,458,165
      Not subject to amortization                             2,668,998
INTANGIBLE ASSETS, at cost, less accumulated amortization       304,837
OTHER ASSETS                                                    949,066
                                                            -----------
     TOTAL ASSETS                                           $26,013,924
                                                            ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
    Current portion of long-term debt                       $ 3,519,623
    Accounts Payable                                          1,878,572
    Accrued Expenses                                            293,745
                                                            -----------
     TOTAL CURRENT LIABILITIES                                5,691,940

LONG-TERM LIABILITIES
    Deferred income taxes                                     1,174,000
    Long-term debt, less current portion                      5,551,586
                                                            -----------
     TOTAL LIABILITIES                                       12,417,526
                                                            -----------
STOCKHOLDERS' EQUITY
    Common stock, par value $.0001, authorized 300,000,000
     shares, issued and outstanding 3,224,937 shares                322
    Additional paid-in-capital                               11,417,042
    Accumulated other comprehensive income:
       Unrealized gain on securities available for sale,
        net of deferred income taxes of $1,622,140            3,145,975
    Accumulated deficit                                        (966,941)
                                                            -----------
     TOTAL STOCKHOLDERS' EQUITY                              13,596,398
                                                            -----------
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $26,013,924
                                                            ===========

The accompanying notes are an integral part of the consolidated financial
statements.
                                      F-3


                         INFINITY, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                                 Years Ended March 31,
                                                   2001         2000
                                               -----------    -----------
REVENUES:
  Oil and Gas Service Operations               $ 8,476,385    $ 5,122,404
  Waste Water Treatment                              7,906         42,838
  Oil and Gas Sales                                375,978          7,556
                                               -----------    -----------
TOTAL REVENUES                                   8,860,269      5,172,798
                                               -----------    -----------

COST OF SALES:
  Oil and Gas Service Operations                 4,665,781      3,026,821
  Waste Water Treatment Facilities                  92,275         79,271
  Oil and Gas Production Expenses and Taxes        220,839          6,966
                                               -----------    -----------
COST OF SALES                                    4,978,895      3,113,058
                                               -----------    -----------
     GROSS PROFIT                                3,881,374      2,059,740

OPERATING EXPENSES                               3,382,302      3,012,184
                                               -----------    -----------
     OPERATING INCOME / (LOSS)                     499,072       (952,444)
                                               -----------    -----------
OTHER INCOME (EXPENSE)
  Interest Income and Other Income                 123,910         48,336
  Interest Expense                              (1,062,300)      (517,153)
  Gain on Sale of Investments                    2,780,044            --
  Gain on Sale of Other Assets                     136,618         27,899
                                               -----------    -----------
TOTAL OTHER INCOME (EXPENSE)                     1,978,272       (440,918)
                                               -----------    -----------
NET INCOME (LOSS) BEFORE INCOME TAXES            2,477,344     (1,393,362)

INCOME TAX (EXPENSE) BENEFIT                      (710,000)       640,764
                                               -----------    -----------
NET INCOME (LOSS)                              $ 1,767,344    $  (752,598)
                                               ===========    ===========

BASIC EARNINGS (LOSS) PER SHARE                $      0.58    $     (0.25)
DILUTED EARNINGS (LOSS) PER SHARE              $      0.54    $     (0.25)
                                               -----------    -----------

Weighted Average Basic Shares Outstanding        3,066,027      2,954,474
                                               ===========    ===========
Weighted Average Diluted Shares Outstanding      3,256,939      2,954,474
                                               ===========    ===========



The accompanying notes are an integral part of the consolidated financial
statements.

                                    F-4



                        INFINITY, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                      YEARS ENDED MARCH 31, 2001 AND 2000
<TABLE>
<CAPTION>
                                                                        Accumulated
                                                                        Other         Total
                              Common Stock   Additional                 Compre-       Compre-       Stock-
                          Shares             Paid-in      Accumulated   hensive       hensive       holders'
                          Issued     Amount  Capital      Deficit       Income        Income        Equity
                          ---------  ------  -----------  ------------  ------------  ------------  -----------
<S>                       <C>        <C>     <C>          <C>           <C>           <C>           <C>
Balance,
  March 31, 1999          2,953,011  $295    $10,478,630  $(1,981,687)  $1,002,375                  $ 9,499,613
Issuance of Common
  Stock for services
  at $1.50 per share         12,500     1         18,749                                                 18,750
Repurchase and cancellation
  of Common Stock           (14,950)   (1)       (27,274)                                               (27,275)
Comprehensive Income
  Net Loss                     -        -           -         (752,598)   $(752,598)         -         (752,598)
Other Comprehensive
  income; unrealized
  holding gains on securities
  during period, net of
  income taxes of
  $640,764 in 2000             -        -           -              -      1,243,836     1,243,836     1,243,836
                          ---------  -----   -----------  ------------  -----------   ------------  -----------
Comprehensive Income                                                    $   491,238
                                                                        ===========
Balance,
  March 31, 2000          2,950,561    295    10,470,105    (2,734,285)                 2,246,211     9,982,326
Issuance of Common
  Stock for cash            233,576     23       704,268                                                704,291
Issuance of Common
  Stock for Oil and Gas
  Properties at $5.53 per
  share                      40,800      4       225,669                                                225,673
Stock-based compensation       -        -         17,000                                                 17,000
Comprehensive Income
     Net Income                                              1,767,344    1,767,344          -        1,767,344

Other comprehensive
  income; unrealized
  holding gains on
  securities during
  period, net of
  income taxes of
  $1,408,730 in 2001           -        -           -             -       2,734,593     2,734,593     2,734,593
Reclassification
  gains on sales of
  securities, net
  of taxes of $(945,215)       -        -           -             -      (1,834,829)   (1,834,829)   (1,834,829)
                          ---------  ----    -----------  ------------  -----------   -----------   -----------
Comprehensive
  Income                                                                $ 2,667,108
                                                                        ===========
Balance,
  March 31, 2001          3,224,937  $322    $11,417,042  $   (966,941)               $ 3,145,975   $13,596,398
                          =========  ====    ===========  ============                ===========   ===========

</TABLE>

The accompanying notes are an integral part of the consolidated financial
statements.



                                      F-5



                       INFINITY, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                  Years Ended March, 31,
                                                   2001           2000
                                                -----------    ----------
CASH FLOWS FROM OPERATING ACTIVITIES
    Net Income (Loss)                           $ 1,767,344    $ (752,598)
    Adjustments to reconcile net income
     (loss) to net cash provided by/(used in)
     operating activities:
      Depreciation, depletion and amortization      922,104       781,023
      Stock issued for services and stock-based
       compensation                                  17,000        18,750
      Deferred income taxes                         710,000      (640,764)
      Gain on sale of investments                (2,780,044)         -
      Gain on sale of other assets                 (136,618)      (27,899)
      (Increase) decrease in assets:
        Accounts receivable                        (900,581)      (39,153)
        Inventories                                 (60,251)      (59,904)
        Prepaid expenses                            257,645      (285,925)
      Increase (decrease) in liabilities:
        Accounts payable                          1,368,235        (3,354)
        Accrued expenses                             (7,455)       13,946
                                                -----------    ----------
NET CASH PROVIDED BY (USED IN) OPERATING
  ACTIVITIES                                      1,157,379      (995,878)
                                                -----------    ----------
CASH FLOWS FROM INVESTING ACTIVITIES
    Purchase of property, equipment, and
     intangibles                                   (766,283)   (1,738,577)
    Proceeds from the sale of investments         6,519,668          -
    Proceeds from sale of other assets              405,609        30,134
    Investment in oil and gas properties         (6,058,104)   (1,849,586)
    Increase in other assets                       (816,344)     (132,722)
                                                -----------    ----------
NET CASH USED IN INVESTING ACTIVITIES              (715,454)   (3,690,751)
                                                -----------    ----------
CASH FLOWS FROM FINANCING ACTIVITIES
    Proceeds from notes payable                        -        2,270,160
    Principal payments on notes payable                -         (300,000)
    Proceeds from borrowings on long-term debt    1,288,468     4,102,070
    Sale(Repurchase) of Common Stock                704,291       (27,275)
    Principal payments on long-term debt         (2,995,635)     (677,491)
                                                -----------    ----------
    NET CASH PROVIDED BY (USED IN) FINANCING
      ACTIVITIES                                 (1,002,876)    5,367,464
                                                -----------    ----------
NET INCREASE (DECREASE) IN CASH                    (560,951)      680,835
CASH, BEGINNING OF PERIOD                           716,309        35,474
                                                -----------    ----------
CASH, END OF PERIOD                             $   155,358    $  716,309
                                                ===========    ==========

The accompanying notes are an integral part of the consolidated financial
statements.

                                      F-6



                        INFINITY, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

                                                  Year Ended March 31,
                                                   2001          2000
                                                -----------    ----------
SUPPLEMENTAL CASH FLOW DISCLOSURES

    Cash paid for interest, net of amounts
      capitalized                               $   757,426    $  302,787

    Non-cash investment in oil and gas
      properties                                    275,271          -

    Prepaid costs reclassed to Oil and
      Gas Property                                     -           30,000

    Property and equipment acquired through
      capital leases or seller financed debt      2,192,929       239,692

    Property and equipment exchanged for
      settlement of debt                               -            4,959

    Notes Payable refinanced into long term debt       -        2,270,160

    Change in Accumulated other Comprehensive
      Income, net of Income Taxes                   899,764     1,243,836


























The accompanying notes are an integral part of the consolidated financial
statements.

                                       F-7



                        INFINITY, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       YEARS ENDED MARCH 31, 2001 AND 2000

(1) ORGANIZATION

The Company and its subsidiaries are engaged in providing oil and gas
production enhancement services in Northeastern Oklahoma, Eastern Kansas, and
the Powder River Basin of Wyoming and in oil and gas exploration, development
and production activities in Southeast Kansas and South Central Wyoming.

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements include the accounts of Infinity, Inc.
and its wholly owned subsidiaries.  All significant intercompany balances and
transactions have been eliminated in consolidation.

Accounts Receivable

Revenue producing activities are conducted primarily in Kansas, Oklahoma, and
Wyoming.  The Company grants credit to all qualified customers which
potentially subjects the Company to credit risk resulting from, among other
factors, adverse changes in the industries in which the Company operates and
the financial condition of its customers.  However, management regularly
monitors its credit relationships and provides adequate allowances for
potential losses.

Revenue

Sales are recognized when products are delivered or services are rendered.

Environmental Costs

The Company expenses, on a current basis, recurring costs associated with
managing hazardous substances and pollution in ongoing operations.  The
Company also accrues for costs associated with the remediation of
environmental pollution when it becomes probable that a liability has been
incurred and its proportionate share of the amount can be reasonably
estimated.

Management Estimates

The preparation of consolidated 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
consolidated financial statements, and the reported accounts of revenues and
expenses during the reporting period.  Actual results could differ from those
estimates.

Inventories

Inventories, consisting primarily of cement mix, sand, fuel and chemicals, are
stated at the lower of cost or market. Cost has been determined on the
first-in, first-out method.

                                       F-8


                          INFINITY, INC. AND SUBSIDIARIES
                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                        YEARS ENDED MARCH 31, 2001 AND 2000

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Property and Equipment

Depreciation and amortization are computed using the straight-line method over
the following estimated useful lives:

    Assets                                       Useful Lives
    ------                                       ------------
    Buildings                                    30 years
    Site improvements                            15 years
    Machinery, equipment and vehicles            5 - 10 years
    Office furniture and equipment               5 - 10 years

Oil and Gas Properties

The Company follows the full cost method of accounting for oil and gas
properties.  Accordingly, all costs associated with acquisition, exploration,
and development of oil and gas reserves, including directly related overhead
costs are capitalized.  The Company capitalized $584,380 of direct overhead
costs during fiscal 2001.

All capitalized costs of oil and gas properties, including the estimated
future costs to develop proved reserves, are amortized on the
unit-of-production method using estimates of proved reserves.  Investments in
unproved properties and major development projects are not amortized until
proved reserves associated with the projects can be determined or until
impairment occurs.  If the results of an assessment indicate that the
properties are impaired, the amount of the impairment is added to the
capitalized costs to be amortized.

In addition, the capitalized costs are subject to a "ceiling test," which
basically limits such costs to the aggregate of the "estimated present value,"
discounted at a 10-percent interest rate of future net revenues from proved
reserves, based on current economic and operating conditions, plus the lower
of cost or fair market value of unproved properties.

Sales of proved and unproved properties are accounted for as adjustments of
capitalized costs with no gain or loss recognized, unless such adjustments
would significantly alter the relationship between capitalized costs and
proved reserves of oil and gas, in which case the gain or loss is recognized
in income.  Abandonments of properties are accounted for as adjustments of
capitalized costs with no loss recognized.

Capitalized Interest

The Company capitalizes interest on expenditures made in connection with
exploration and development projects that are not subject to current
amortization. Interest is capitalized only for the period that activities are
in progress to bring these projects to their intended use.  Total interest
costs incurred for the year ended March 31, 2001 and 2000 was $1,375,866 and
$602,350, respectively.  Interest costs capitalized were $313,566 and $85,197
for the years ended March 31, 2001 and 2000, respectively.

                                         F-9


                         INFINITY, INC. AND SUBSIDIARIES
                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       YEARS ENDED MARCH 31, 2001 AND 2000

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Impairment of Long-lived Assets

Long-lived assets to be held and used in the Company's business are reviewed
for impairment whenever events or changes in circumstances indicate that the
related carrying amount may not be recoverable.  When required, impairment
losses on assets to be held and used are recognized based on the fair value of
the assets.  No impairment was recorded during the years ended March 31, 2001
or 2000.

Intangible Assets

The excess of the purchase price over net assets acquired for businesses
purchased by the Company from unrelated third parties is recorded as goodwill
and is amortized over 20 years.

Other intangibles are recorded at cost and are amortized on the straight-line
basis over the contractual or estimated useful life of the asset.

Per Share Information

Basic earnings (loss) per common share is computed as net income (loss)
divided by the weighted average number of common shares outstanding during the
period.  Diluted earnings (loss) per common shares is computed as net income
(loss) divided by the weighted average number of common shares and potential
common shares, using the treasury stock method, outstanding during the period.

Cash

For purposes of reporting cash flows, cash generally consists of cash on hand
and demand deposits with financial institutions.  At times, the Company
maintains deposits in financial institutions in excess of federally insured
limits.  Management monitors the soundness of the financial institutions and
feels the Company's risk is negligible.

Investment Securities

Investment securities that are held for short-term resale are classified as
trading securities and carried at fair value.  Debt securities that management
has the ability and intent to hold to maturity are classified as
held-to-maturity and carried at cost, adjusted for amortization of premium and
accretion of discounts using methods approximating the interest method.  Other
marketable securities are classified as available-for-sale and are carried at
fair value, based on quoted market prices.  Unrealized gains and losses on
securities available-for-sale are reported as a component of comprehensive
income, net of applicable income taxes.  Costs of securities sold are
recognized using the specific identification method.

Common Stock Issued for Services

Common Stock issued for services is valued at the fair value of the services
performed or the stock issued, whichever is more readily determinable.

                                      F-10



                        INFINITY, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                      YEARS ENDED MARCH 31, 2001 AND 2000

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Income Taxes

Income taxes are provided for the tax effects of the transactions reported in
the consolidated financial statements and consist of taxes currently due plus
deferred taxes related primarily to differences between the tax and financial
basis of available-for-sale securities, property and equipment and other
assets, oil and gas properties, and net operating loss carry forwards.

The deferred tax assets and liabilities represent the future tax return
consequences of those differences, which will either be taxable or deductible
when the assets and liabilities are recovered or settled.

Recently Issued Accounting Pronouncements

In June of 1998, the FASB issued Statement of Financial Accounting Standards
No. 133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS
No. 133).  SFAS No. 133 addresses the accounting for derivative instruments
embedded in other contracts and hedging activities.  SFAS No. 133 was
effective for all fiscal quarters of all fiscal years beginning after June 15,
1999.  However, in June of 1999 the FASB issued SFAS No. 137 which deferred
the effective date from June 15, 1999 to June 15, 2000.  Additionally, in June
of 2000 the FASB issued SFAS No. 138, which amended the accounting for certain
derivative instrument and hedging activities under SFAS No. 133.  Initial
application of SFAS No. 133 and SFAS No. 138 shall be as of the beginning of
the entity's fiscal quarter starting April 1, 2001.  Hedging relationships
shall be designated and documented under the provisions of these statements.
The Company has not yet determined the impact of the adoption of these
statements.

(3) PROPERTY AND EQUIPMENT

Property and equipment consists of the following:

    Cost:

         Site cost improvements             $  1,836,658
         Machinery, equipment and vehicles     9,052,065
         Office furniture and equipment          191,478
                                            ------------
    Total cost                                11,080,201

    Less accumulated depreciation             (4,972,816)
                                            ------------
    Net property and equipment              $  6,107,385
                                            ============





                                       F-11



                          INFINITY, INC. AND SUBSIDIARIES
                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                       YEARS ENDED MARCH 31, 2001 AND 2000

(4) INVESTMENT IN SECURITIES

In 1998, the Company received 450,000 shares of common stock in Evergreen
Resources, Inc. ("Evergreen") as part of the payment for the sale of gas
production properties.  This stock is carried on the balance sheet as an
available-for-sale security at its current market value.  When the transaction
was completed the value of this stock was approximately $7.5 million.  During
fiscal 2001, the Company sold 225,000 shares of Evergreen stock for proceeds
of approximately $6,520,000 resulting in a gain of approximately $2,780,000.
The remaining 225,000 shares held by the Company are summarized as follows:

                                              March 31, 2001
                                              --------------
Marketable equity securities, at cost          $  3,740,625
Unrealized holding gain                           4,768,115
                                               ------------
Investment Securities                          $  8,508,740
                                               ============

The remaining 225,000 shares are collateralized on certain long-term debt.  Of
the 225,000 shares, 100,000 shares are collateralized on debt due in fiscal
2001 and are therefore, included in current assets in the accompanying
consolidated balance sheet.

Subsequent to fiscal year ending March 31, 2001, the Company sold the
remaining 225,000 shares of Evergreen stock for proceeds of approximately
$8,869,000 resulting in a gain of approximately $5,128,000.  A portion of the
net proceeds were used to pay off long-term debt (See Note 6).

(5) OIL AND GAS PROPERTIES

Properties Subject to Amortization

In February 2000, the Company acquired a 100% working interest of a property
in eastern Kansas, through a joint venture with an operator in which a
director of the Company is a partner and operations manager.  The Company will
have a 100% working interest and an 80% net revenue interest.  The property
currently has 21 producing wells.  Another 16 wells will be utilized for a
polymer injection enhanced oil recovery project with one additional well being
a water supply well.  Upon completion and recovery of the Company's cost, a
50% working interest and a 40% net revenue interest in the property will
revert to the operator.  The Company has the option to lease additional
acreage for $300,000 on which it could drill an additional 88 wells and rework
83 others as part of the polymer augmented water flood.

In July 2000, the Company acquired a 100% working interest and an 82.5% net
revenue interest in leaseholds in the Green River Basin of Wyoming.  The
original owner has the option to participate as a 25% working interest and a
20.625% net revenue interest owner.  The Company has drilled 5 wells, which
will begin production in the second quarter of fiscal 2002.  Based on reserve
analysis performed by a independent petroleum engineer the acquisition costs

                                    F-12




                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(5) OIL AND GAS PROPERTIES (CONTINUED)

associated with 1,280 acres and all exploration costs incurred to date are
subject to amortization.  Proceeds from the sale of investments and from the
Company's subsequent sale of debt instruments will be used to continue to
develop the property (see notes 4 and 6).

In September 2000, the Company acquired an active oil lease in the Owl Creek
Field in Woodson County, Kansas for $510,000.  The property has 16 producing
leases.

Properties Subject to Amortization (Continued)

The Company has acquired a working interest in a coal bed methane property in
the Green River Basin of Wyoming.  The property is subject to a 30%
participation election by the original lessor.  If the original lessor chooses
not to participate in the drilling and completion of a well, then the 100%
working interest and the approximately 80% associated net revenue interest
will remain with the Company until the well has generated earnings to recover
the well costs plus 300% non-consent penalty.  In addition, the Company
acquired an additional a 100% working interest and an 80% net revenue interest
in an additional 5,000 acres on the property.  The Company has completed one
gas well and plans to complete an additional 4 wells in the second quarter of
fiscal 2002 with the proceeds from the Company's sale of debt instruments (see
note 6).  Based on the reserve analysis performed by an independent petroleum
engineer, the acquisition costs on 11,360 acres of this property and all
exploration costs incurred to date are subject to amortization.

Properties Not Subject to Amortization

The Company acquired a 100% working interest in a coal bed methane property in
Northwestern Colorado for 40,800 shares of the Company's common stock and
$366,621.  The shares were valued at approximately $5.53 per share based on
the market value of the common stock on the date of purchase.  The lease
requires the Company to drill a total of 5 wells within the first 5 years of
the lease.

This property, and the remaining leaseholds on the Wyoming properties that are
not subject to amortization, are being, or will be developed, completed and
put into production when gas is located in apparent reasonable quantities.
The geological structures on the Wyoming properties are such that the amount
of reserves cannot be evaluated with the engineering certainty necessary to be
judged proven reserves.  As drilling of a specific well is finished, a
determination is made to complete the well and begin production or treat the
well as unsuccessful.  Costs of successful wells are added to the full cost
amortization calculation when the property is proven.  Costs of unsuccessful
wells are added to the full cost amortization calculation when that
determination is made.  Proceeds from the sale of investments and from the
Company's subsequent sale of debt instruments will be used to continue to
develop the properties (see notes 4 and 6).


                                    F-13




                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(5) OIL AND GAS PROPERTIES (CONTINUED)

The Company reviews unproved properties for impairment on at least an annual
basis.  Upon impairment, the Company adds the amount of the impairment to the
full cost amortization calculation.  No impairment has been recorded in fiscal
2001 or 2000.  Any cost related to exploratory dry wells are included in the
full cost amortization base when that determination is made.  Any costs
associated with geophysical and geological costs that are not associated with
specific unproven properties are included in the full cost amortization base
as incurred.

The per barrel amount of depreciation, depletion and amortization incurred in
fiscal 2001 and 2000, was $4.78 and $56.40, respectively based on Company
sales of $375,978 and $7,556, respectively from 13,561 and 290 barrels of oil,
respectively.

Oil and gas properties consist of the following:

                                       Subject to            Not Subject
                                      Amortization         to Amortization

    Acquisition costs                  $1,340,793             $2,668,998
    Development costs                   1,151,126                   -
    Exploration costs                   3,059,710                   -
                                       ----------             ----------
         Total Cost                     5,551,629             $2,668,998
                                                              ==========
    Less accumulated depreciation,
      amortization, depletion and
      impairment                          (93,464)
                                       ----------
                                       $5,458,165
                                       ==========

Recovery of the above acquisition and development costs is dependent on a
variety of factors including actual production results and market conditions.

(6) LONG TERM DEBT

The Company borrowed $1,652,596 collateralized by 100,000 shares of Evergreen
stock.  The Company was obligated to pay back an amount equal to $1,904,000 in
November 2001 so long as the collateralized marketable equity securities were
trading between $19.04 and $27.51 per share at maturity.  This equated to an
approximate 7.1% effective interest rate.  Should the price of the Evergreen
stock exceed $27.51 per share, the price per share in excess of $27.51, times
the 100,000 collateralized shares was to be additional cost to the Company.
The Company sold the underlying marketable securities in fiscal 2001 and paid
off the debt early.  Total payments to satisfy the note were $2,567,000
including prepayment costs of approximately $260,000.



                                    F-14




                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(6) LONG TERM DEBT (CONTINUED)

The Company entered into two additional financing agreements, collateralized
by 225,000 shares of Evergreen stock.  Under the agreements, the Company may
borrow up to $4,063,608.  Borrowings are due March of 2002 and April 2002.
The Company is obligated to pay back an amount equal to $2,021,000 and
$2,742,500, respectively so long as the collateralized marketable equity
securities are trading between $20.21 and $30.31 and $21.94 and $32.91 per
share, respectively.  These equate to an approximate 7.8% and 8.3% effective
interest rate, respectively.  Should the price of the Evergreen stock fall
below $20.21 or $21.94, respectively, the Company will repay the loan at the
collateral's trading price times the 225,000 collateral shares.  If the price
exceed $30.31 and $32.91, respectively, the price per share in excess of
$30.31 and $32.91 respectively, times the 225,000 collateralized shares will
be an additional cost.  The Company sold the underlying 225,000 shares of
Evergreen stock in April 2001 (see note 4) and paid $7,162,500, including
additional costs and prepayment penalties of approximately $2,830,000, to
satisfy both notes.

Long-term obligations consist of the following:

Financing agreements noted above with individual payments
including interest due between March 2002 and April 2002;
collateralized by 225,000 shares of Evergreen stock with
effective interest rates between 7.8% and 8.3% depending
on the price of the Evergreen Stock at the maturity date.
Paid off subsequent to March 31, 2001.                          $4,332,576

Term note; payable in monthly principal installments of
$46,361 plus interest of 1.75% above prime (9.75% at
March 31, 2001) until maturity, April 1, 2002; collateral-
ized by substantially all of the assets of the oilfield
service division and is partially guaranteed by an officer
of the Company.  Additionally, the lender made available
a $1,000,000 credit facility for future equipment
purchases (see below).                                           1,440,311

Note payable to seller (for a 50% interest in an airplane),
with interest at Wall Street prime due on a quarterly
basis.  The Company is required to make annual principal
payments of $82,500 until paid in full.  The seller can
call the note if the bank calls their note for the original
purchase of the airplane.  The note is collateralized by the
50% interest in the airplane.                                    1,567,500

Various fixed rate notes collateralized by vehicles and
equipment with interest rates ranging from 8.55% to 16%;
payable in monthly installments of principal and interest,
with final payments due between January 2003 and March 2004.       328,697



                                    F-15



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(6) LONG TERM DEBT (CONTINUED)

Note payable to a bank with interest at Wall Street Prime
plus .25% (9.75% at March 31, 2001); payable in monthly
installments of $6,394 including interest through November
2006; collateralized by the real property.                         332,120

$1,000,000 revolving credit note collateralized by eligible
accounts receivable, equipment and capital expenditures.
Interest is payable monthly at 1.50% above prime(9.50% at
March 31, 2001), with principal due February 2002.                 610,561

Various capital leases, with monthly installments totaling
$12,352, including interest and expiring through May 2005,         459,444
                                                                ----------

Total long-term obligations                                      9,071,209
Less current portion                                             3,519,623
                                                                ----------
                                                                $5,551,586
                                                                ==========

Maturities of long-term obligations are as follows:

                                         Long Term     Capital
Years Ending March 31,                     Debt        Leases      Total
----------------------                   ----------   --------   ----------
    2002                                 $3,374,115   $148,224   $3,522,339
    2003                                  3,501,195    143,238    3,644,433
    2004                                    233,876    112,498      346,374
    2005                                    148,186     83,499      231,685
    2006                                    150,688      9,743      160,431
    Thereafter                            1,203,709          -    1,203,709
                                         ----------   --------   ----------
  Less amount representing interest               -    (37,762)     (37,762)
                                         ----------   --------   ----------
  Total Principal                         8,611,769    459,440    9,071,209
  Less current portion                    3,374,115    145,508    3,519,623
                                         ----------   --------   ----------
                                         $5,237,654   $313,932   $5,551,586
                                         ==========   ========   ==========

Included in equipment in the accompanying consolidated balance sheet are
assets held under capital leases in the amount of $579,034 net of accumulated
amortization of $86,127.








                                    F-16



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(7) PROPERTY ACQUISITIONS

Effective August 16, 1999 the Company acquired the net operating assets of
Powder River Cementers, LLC ("Powder River"), a well cementing company located
in Gillette, Wyoming for $394,638,including acquisition costs.  In addition,
the Company was required to place 100,000 shares of its common stock in escrow
to be issued to the seller upon the Company obtaining certain operating
results with Powder River. In March 2000, in order to complete the
acquisition, the Company paid an additional $200,000 to the seller and the
100,000 shares of common stock in escrow were returned to the Company.

(8) COMMON STOCK

Warrants - The Company, in conjunction with a public stock offering, issued
Class A, Class B and underwriter warrants to purchase 212,959 shares of common
stock.  The Class A warrants have expired.  The 101,211 Class B warrants
expire in September 2001.

The Company issued warrants to purchase 225,000 shares of Infinity common
stock during the year ended March 31, 1997 (1997 Warrants).  During the years
ended March 31, 1999 and 1998, 37,500 and 175,000 warrants were exercised,
respectively.  The remaining 12,500 warrants outstanding under this issue
expire August 1, 2001.

During the year ended March 31, 1998, in conjunction with a 1998 financing
arrangement, the Company issued warrants to purchase 37,500 shares of the
Company's common stock.  The warrants, none of which were exercised, expired
on December 15, 2000.

Options   The Company has adopted stock option plans containing both incentive
and non-statutory stock options. All options allow for the purchase of common
stock at prices not less than the fair market value of such stock at the date
of grant. The option price under the incentive stock option provisions of the
plans, if the optionee owns more than 10% of the total combined voting power
of all classes of the Company's stock, will not be less than 110% of the fair
market value of such stock at the date of grant.

Options granted under the plans become exercisable immediately or as directed
by the Board of Directors and generally expire five or ten years after the
date of grant, unless the employee owns more than 10% of the total combined
voting power of all classes of the Company's stock, in which case they must be
exercised within five years of the date of grant. Pursuant to the plans, an
aggregate of 648,333 shares of common stock are available for issuance upon
the exercise of such options.  The Company granted 176,200 and 299,000 to
employees under the Plans during the years ended March 31, 2001 and 2000,
respectively.

The Company granted 20,000 five-year options to an entity in connection with
an agreement.  The options have an exercise price of $6.44 per share.  The
Company recorded $17,000 of compensation expense related to the options based
on the fair value of the services provided.

                                    F-17



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(8) COMMON STOCK (CONTINUED)

A summary of stock option and warrant activity is as follows:

                                            Option/Warrant      Weighted
                                Number of       Price         Average Price
                                  Shares      Per Share         Per Share
                                ---------   --------------    -------------
Outstanding, March 31, 1999       611,558    $2.40-$15.36*        $8.26
Granted                           299,000            3.00          3.00
Canceled or Forfeited            (118,378)    2.40- 11.52          7.09
Exercised                               -               -             -
                                 --------    ------------         -----
Outstanding, March 31, 2000       792,180    $3.00-$15.36         $6.50

Granted                           196,200     6.00-  7.63          7.37
Canceled or Forfeited            (136,218)      40- 15.36          8.83
Exercised                        (233,576)    3.00-  8.00          6.56
                                 --------    ------------         -----
Outstanding, March 31, 2001       618,586    $3.00-$12.00         $6.24
                                 ========    ============         =====

* In May 1999, the exercise price of 175,000 options was reduced from $8.00
per share to $3.00 per share.
<TABLE>
<CAPTION>
                               Weighted
                               Average       Weighted                    Weighted
Range of      Number           Remaining     Average    Number           Average
Exercise      Outstanding at   Contractual   Exercise   Exercisable at   Exercise
Prices        March 31, 2001   Life          Price      March 31, 2001   Price
------------  --------------   -----------   --------   --------------   ---------
<S>           <C>              <C>           <C>        <C>              <C>
$3.52-$12.00    153,136          1 year       $9.57         153,136       $9.57
 3.00-  8.00     51,250          2 years       5.71          51,250        5.71
 3.00            83,050          4 years       3.00          83,050        3.00
 3.00-  7.63    331,150          5 years       5.59         171,150        3.68
</TABLE>

The Company applies Accounting Principles Board Opinion No. 25 "Accounting for
Stock Issued to Employees," and related interpretations in accounting for its
plan. Accordingly, no compensation cost has been recognized for options
granted to employees under the stock option plan.  Had compensation costs for
employee options under the Company's plan been determined based upon the fair
value at the grant date for awards under the plan consistent with the
methodology prescribed under Statement Of Financial Accounting Standards No.
123, "Accounting for Stock-Based Compensation", the Company's net income and
earnings per share would have been as follows:






                                    F-18



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(8) COMMON STOCK (CONTINUED)

                                                 Year Ended March 31,
                                                2001           2000
                                             ----------     -----------
    Net income (loss) as reported            $1,767,344     $  (752,598)
                                             ==========     ===========
    Proforma net income (loss)               $  704,153     $(1,350,259)
                                             ==========     ===========
    Basic income (loss) per share as
     reported                                      $.58           $(.25)
     Diluted income (loss) per share as
       reported                                    $.54           $(.25)
     Basic income (loss) per share-proforma        $.23           $(.46)
     Diluted income (loss) per share on
       proforma                                    $.22           $(.46)

For options granted during the year ended March 31, 2001 and 2000, the
estimated fair value of the options granted utilizing the Black-Scholes
pricing model under the Company's plan was based on a weighted average
risk-free interest rate of 9.5%, expected option life of 4.87 years, expected
volatility of 100.85% and no expected dividends.

Stock issued  - During the year ended March 31, 2000, the Company issued
12,500 shares of common stock with a fair value of $18,750 for service. In
addition, the Company acquired and cancelled 14,950 shares of common stock for
$27,275.

During the year ended March 31, 2001, the Company acquired an undeveloped
coalbed methane lease for 40,800 shares of common stock with a market value of
approximately $5.53 per share or $225,673 and $366,621 of cash.

(9) INCOME TAXES

The provision for income taxes for the years ended March 31, 2001 and 2000
consists of the following:

                                               2001           2000
                                            ----------     -----------
Current income tax expense                  $     -        $      -
Deferred income tax expense (benefit)          856,000        (456,012)
Change in deferred tax asset valuation
  allowance                                   (146,000)       (184,752)
                                            ----------     -----------
Total income tax expense (benefit)          $  710,000     $  (640,764)
                                            ==========     ===========







                                    F-19



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(9) INCOME TAXES (CONTINUED)

The effective income tax rate varies from the statutory federal income tax
rate as follows:

                                               2001            2000
                                               ----            ----

Federal income tax rate                         34%             34%
Net operating losses                             -              12
Change in valuation allowance                   (5)              -
                                                ---             ---
Effective tax rate                              29%             46%
                                                ===             ===

The significant temporary differences and carry forwards and their related
deferred tax asset (liability) and deferred tax asset valuation allowance
balances as of March 31, 2001 are as follows:

   Deferred tax assets:
    Accruals and impairment                         $   199,000
    Net operating loss carry forward                  2,006,000
    Other                                                 4,000
                                                    -----------
   Gross deferred tax assets                          2,209,000
                                                    -----------
   Deferred tax liabilities:
    Intangible drilling costs                        (1,160,000)
    Property and equipment                             (602,000)
    Unrealized holding gains on available
     for sale securities                             (1,621,000)
                                                    -----------
   Gross deferred tax liabilities                    (3,383,000)
                                                    -----------
   Deferred tax asset valuation allowance                     -
   Net deferred taxes                               $(1,174,000)
                                                    ===========

For income tax purposes, the Company has approximately $5,900,000 of net
operating loss carry forwards expiring in various years through 2021.












                                    F-20



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(10) RETIREMENT PLAN

The Company has a 401(k) plan covering substantially all of the employees of
the oil and gas production enhancement service division.  There were no
Company contributions made to the plan during the years ended March 31, 2001
and 2000.

(11) INDUSTRY SEGMENTS

The Company reports segment information in accordance with Financial
Accounting Standards Board Statement No. 131.  This Statement requires
disclosure of information related to certain operating segments of the Company
and also requires restatement of segment information for prior periods.

The Company's operations have been classified into three industry segments:
(i) Oil Field Services; (ii) Oil and Gas Production; and, (iii) Environmental
Services.  The Oil Field Services segment of the Company is directed at
maintaining and enhancing production obtained from oil and gas wells and
currently has operations in Kansas, Oklahoma, and Wyoming.  The Oil and Gas
Production segment of the Company has acquired interest in producing
properties in Kansas and undeveloped leasehold in Wyoming.  The Environmental
Services segment of the Company was established to develop wastewater
treatment technologies and apply them to the treatment of industrial
wastewater and disposal of solid waste byproducts.  This segment of the
Company has mothballed facilities in Kansas and facilities with limited
operations in Wyoming, and is not separately disclosed in fiscal 2001 as it is
immaterial to the other segments.
<TABLE>
<CAPTION
                                               Environ-   Corporate
                     Oil Field    Oil & Gas    mental     and
                     Services     Production   Services   Other         Consolidated
                     ----------   ----------   --------   ------------  ------------
<S>                  <C>          <C>          <C>        <C>           <C>
Net Sales:
2001                 $8,476,385   $  375,978     N/A      $      7,906  $ 8,860,269
2000                  5,122,404        7,556   $  42,838             -    5,172,798

Depreciation, Amortization,
 and Depletion:
2001                    809,857       64,860     N/A            47,387      922,104
2000                    697,957       16,357      63,767         2,941      781,023

Operating Income (Loss):
2001                  1,473,856       39,255     N/A        (1,014,039)     499,072
2000                    167,364      (94,367)   (178,631)     (846,811)    (952,444)

Identifiable Assets, Net:
2001                  6,068,312    8,446,840     N/A        11,498,772   26,013,924
2000                  5,346,668    2,257,304      41,016    11,734,320   19,379,308

Capital Expenditures:
2001                    615,294    6,155,337     N/A            53,756    6,824,387
2000                  1,727,317    1,849,586      -             11,260    3,588,163

</TABLE>
                                      F-21



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(12) SIGNIFICANT CUSTOMERS

During the year ended March 31, 2000, the Company had sales to two unrelated
third parties of approximately $1,250,000, representing approximately 24% of
net sales.  During the year ended March 31, 2001, the Company had no
significant customers.  Receivables outstanding from the fiscal 2000
significant customer sales was approximately $43,000.

(13) FAIR VALUE OF FINANCIAL INSTRUMENTS

The following assumptions were used in estimating the fair value of the
Company's financial instruments:

The carrying value of the Company's cash balance, accounts receivable,
accounts payable and accrued expenses represents the fair value of the
accounts as of March 31, 2001.  The fair value of the Company's long-term debt
is estimated based on the present value of estimated future cash flows using a
discount rate commensurate with the risks involved and the fair value of the
additional cost, if any, associated with the price of the Evergreen stock (see
Note 6).  The estimated fair value of long-term debt is approximately
$12,000,000 at March 31, 2001.

(14) LITIGATION

The Company is involved in several legal matters that have arisen during the
normal course of the Company's business, and the outcome is not readily
determinable.  Management believes that losses, if any, from such matters
would not have a material impact on the Company's consolidated financial
statements.

(15) EARNINGS PER SHARE

The following shows the amounts used in computing earnings per share and the
effects on income and the weighted average number of shares of dilutive
potential common stock:

                                              Weighted Average
                                  Income       Common Shares     Earnings
                                 Numerator      Denominator      Per Share
                                 ---------    ----------------   ---------
Basic earnings per share (2000):
  Loss available to common
    stockholders                 $ (752,598)      2,954,474       $(0.25)
                                 ==========       =========       ======









                                    F-22



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000


(15) EARNINGS PER SHARE (CONTINUED)

All dilutive potential common shares are antidilutive in the year ended March
31, 2000.

Basic earnings per share (2001):
  Income available to common
   stockholders                  $1,767,344       3,066,027       $ 0.58
                                                                  ======
Plus:  Impact of assumed con-
  versions of warrants and
  options                                 -         190,912
                                 ----------       ---------

Diluted earnings per share:
 Income available to common
   shareholders after assumed
   conversions of dilutive
   securities                    $1,767,344       3,256,939       $ 0.54
                                 ==========       =========       ======

(16) SUBSEQUENT EVENTS

Subsequent to March 31, 2001, the Company contracted to have a new facility
built at it Oklahoma camp for approximately $354,000.  In connection with the
commitment, the Company obtained a new $360,000 construction loan with
interest at 9.25%.  The construction loan is due in October 2001 and is
collateralized by the underlying real property.

Subsequent to March 31, 2001, the Company borrowed $202,439 from an unrelated
third party to purchase 6 new oil and gas leases in Wyoming.  The note bears
interest at 8% and gives the Company two repayment options, one of which is to
pay back all principal and interest and the other to pay back reduced
principal and transfer an undivided 12.5% working interest to satisfy the
remaining principal.

In June 2001, the Company sold $6,475,000 of convertible subordinated notes.
The notes bear interest at 8% and are due in June 2006.  The holders can
convert the notes into Company common stock at $10.00 per share.  In
connection with the offering, the Company paid the placement agent a fee equal
to 6% of the gross proceeds and granted 100,000 five year warrants to purchase
the Company's common stock at $12.44 per share.









                                    F-23



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000


(17) SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED)

Proved Oil and Gas Reserves (Unaudited)

The following information was developed from reserve reports as of April 1,
2001 and May 1, 2000 which were prepared by independent reserve engineers:

                                               Natural Gas      Crude Oil
                                                 (MCF)          (BARRELS)
                                               -----------      ---------
Proved Reserves as of March 31, 1999               --                 -
Extensions, discoveries and other additions    558,953,000        110,500
                                               -----------        -------
Proved Reserves as of March 31, 2000           558,953,000        110,500
Extensions, discoveries and other additions      9,144,761        196,022
Purchase of minerals in place                       --            151,612
Production                                          --            (13,561)
                                               -----------        -------
Proved Reserves as of March 31, 2001           568,097,761        444,573
                                               ===========        =======

Proved reserves are estimated quantities of crude oil, natural gas and natural
gas liquids which geological and engineering data demonstrate with reasonable
certainty to be recoverable in future years from known reservoirs under
existing economic and operating conditions.

There are numerous uncertainties inherent in estimating quantities of proved
oil and gas reserves.  Oil and gas reserve engineering is a subjective process
of estimating underground accumulations of oil and gas that cannot be
precisely measured, and estimates of engineers other than the Company's might
differ materially from the estimates set forth herein.  The accuracy of any
reserve estimate is a function of the quality of available data and of
engineering and geological interpretation and judgment.  Results of drilling,
testing and  production subsequent to the date of the estimate may justify
revision of such estimate.  Accordingly, reserve estimates are often different
from the quantities of oil and gas that are ultimately recovered.

Proved Developed Oil and Gas Reserves

    The following reserve information was developed by the Company and sets
forth the estimated quantities of proved developed oil and gas reserves of the
Company as of the beginning of each year.

                                                            Crude Oil and
                                           Natural Gas       Condensate
    Proved Developed Reserves                (MCF)            (Barrels)
    -------------------------              -----------      -------------
        March 31, 2000                         --              110,500
        March 31, 2001                      4,129,933          444,572


                                    F-24



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000


(17) SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (CONTINUED)

Costs Incurred in Oil and Gas Activities

Costs incurred in connection with the Company's oil and gas acquisition,
exploration and development activities during the year ended March 31, 2001
and 2000 are shown below.

                                               2001          2000
                                            ----------     ----------
    Property acquisition costs:
      Proved                                $  674,021     $  666,772
      Unproved                               2,041,252        627,746
                                            ----------     ----------
       Total Property Acquisition Costs      2,715,273      1,294,518

    Exploration costs                        2,728,805        330,905
    Development costs                          789,297        254,163
                                            ----------     ----------
    Total costs                             $6,233,375     $1,879,586
                                            ==========     ==========

Aggregate Capitalized Costs

Aggregate capitalized costs relating to the Company's oil and gas producing
activities, and related accumulated DD&A, as of March 31, 2001 and 2000:

                                               2001           2000
                                            ----------     ----------
Proved oil and gas properties               $5,551,629     $1,359,506
Unproved oil and gas properties              2,668,998        627,746
                                            ----------     ----------
     Total                                   8,220,627      1,987,252
Less-Accumulated depreciation, depletion,
 amortization and impairment                    93,464         28,604
                                            ----------     ----------
Net capitalized costs                       $8,127,163     $1,958,648
                                            ==========     ==========














                                    F-25



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000

(17) SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (CONTINUED)

Oil and Gas Operations

Aggregate results of operations for each period ended March 31, 2001 and 2000,
in connection with the Company's oil producing activities are shown below:

                                               2001           2000
                                            ----------     ----------
Revenues                                    $  375,978     $    7,556
Production Costs                               220,839          6,966
DD&A                                            64,860         16,357
                                            ----------     ----------
Results of operations from producing
 activities (excluding corporate
 overhead and interest costs)               $   90,279     $  (15,767)
                                            ==========     ==========

Standardized Measure of Discounted Future Net Cash Flows Relating to Proved
Oil and Gas Reserves (Unaudited)

The following information is based on the Company's best estimate of the
required data for the Standardized Measure of Discounted Future Net Cash Flows
as of March 31, 2001 as required by Financial Accounting Standards Board's
Statement of Financial Accounting Standards No. 69.  The Standard requires the
use of a 10 percent discount rate.  This information is not the fair market
value nor does it represent the expected present value of future cash flows of
the Company's proved oil and gas reserves.

                                                2001              2000
                                           --------------    --------------
Future cash inflows                        $1,551,917,272    $1,506,692,108
Future production and development costs      (749,405,828)     (734,944,794)
Future Income Tax Expense                    (272,853,890)     (262,707,256)
                                           --------------    --------------
Future Net cash flows                         529,657,554       509,040,058
10% annual discount for estimated timing
 on cash flows                               (257,320,471)     (262,539,904)
                                           --------------    --------------
Standardized measure of discounted future
 cash flows                                $  272,337,083    $  246,500,154
                                           ==============    ==============

Future cash inflows for the year ended March 31, 2001 are computed by applying
a weighted average spot market gas price for the areas of production of $2.71
per MCF and a year-end weighted average oil price of $26.37 per barrel.
Future cash inflows for the year ended March 31, 2000 are computed by applying
a May 1, 2000 spot gas price of $2.69 per MCF of gas and $28.13 per bbl of oil
to the May 1, 2000 estimated quantities of the reserves.  Future production
and development costs are computed by estimating the expenditures to be
incurred in developing and producing the Company's proved oil and gas reserves
at March 31, 2001 and May 1, 2000 assuming continuation of existing economic
conditions.

                                     F-26



                      INFINITY, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     YEARS ENDED MARCH 31, 2001 AND 2000


(17) SUPPLEMENTAL OIL AND GAS INFORMATION (UNAUDITED) (CONTINUED)

Future production and development costs, which include dismantlement and
restoration expense, are computed by estimating the expenditures to be
incurred in developing and producing the Company's proved oil and gas reserves
at the end of the year, based on year-end costs, and assuming continuation of
existing economic conditions.

Future income tax expenses at March 31, 2000 and 2001 were computed by
applying the appropriate year-end statutory tax rates to the future pretax net
cash flows relating to the Company's proved oil and gas reserves, less the tax
basis of the properties involved.

The following reconciles the change in the standardized measure of discounted
future net cash flow during the years ended March 31, 2001 and 2000:

                                                        March 31,
                                                   2001           2000
                                               ------------   ------------

Beginning of year                              $246,500,154   $    --
Extensions, discoveries and other additions      23,989,849    246,500,154
Development costs incurred during the period        683,291         -
Sales of Oil produced, net of production costs      (55,139)        -
Purchase of minerals in place                     1,318,928        --
                                               ------------   ------------
End of the year                                $272,337,083   $246,500,154
                                               ============   ============

Future income tax expenses are computed by applying the appropriate year-end
statutory tax rates to the future pretax net cash flow relating to the
Company's proved oil and gas reserves, less the tax basis of the properties
involved.  Tax depreciation is calculated on the capitalization of
approximately 40% of the development costs of the Green River Basin leasehold
and approximately 60% of the development costs of the Cherokee Basin property
as tangible investment and uses MACRS depreciation for a 7-year life.  The
future income tax expenses do not give effect to tax credits, allowances, or
the impact of general and administrative costs of ongoing operations relating
to the Company's proved oil and gas reserves.












                                        F-27






<PAGE>
                                  SIGNATURES

     In accordance with the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Company has duly caused this Report to be
signed on its behalf by the undersigned thereunto duly authorized.

                                   INFINITY, INC.


Dated: June 22, 2001               By/s/ Stanton E. Ross
                                     Stanton E. Ross, President

     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 Company
and in the capacities and on the dates indicated:

       SIGNATURE                      CAPACITY                DATE



/s/ Stanton E. Ross             President, Treasurer,       June 22, 2001
Stanton E. Ross                 (Principal Accounting
                                Officer) and Director


/s/ Jon D. Klugh                Chief Financial             June 22, 2001
Jon D. Klugh                    Officer and Secretary



/s/ Jeffrey L. Dale             Director                    June 22, 2001
Jeffrey L. Dale



/s/ George R. Jones             Director                    June 22, 2001
George R. Jones



/s/ Leroy C. Richie             Director                    June 22, 2001
Leroy C. Richie