<PAGE>

               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q

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

               For the quarterly period ended SEPTEMBER 30, 2000
                                              -------------------

                                       OR

   [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
                             EXCHANGE ACT OF 1934

      For the transition period from ________________ to _______________

                        Commission File Number 0-22258


                             AVIVA PETROLEUM INC.
            (Exact name of registrant as specified in its charter)

Texas                                                          75-1432205
(State or other jurisdiction of                                (I.R.S. Employer
incorporation or organization)                                 Identification
                                                               Number)

8235 Douglas Avenue,                                           75225
Suite 400, Dallas, Texas                                       (Zip Code)
(Address of principal executive offices)

                                 (214) 691-3464
              (Registrant's telephone number, including area code)


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

                                                       Yes  X   No___
                                                           ---

Number of shares of Common Stock, no par value, outstanding at September 30,
2000, was 46,900,132 of which 25,486,690 shares of Common Stock were represented
by Depositary Shares. Each Depositary Share represents five shares of Common
Stock held by a Depositary.
<PAGE>

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.
----------------------------

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheet
                    (in thousands, except number of shares)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                            September 30,     December 31,
ASSETS                                                               2000             1999
                                                            -------------         --------
<S>                                                            <C>                <C>
Current assets:
    Cash and cash equivalents                                    $    760         $    846
    Restricted cash                                                    --                4
    Accounts receivable                                             1,031            1,650
    Inventories                                                       170              724
    Prepaid expenses and other                                         69              236
                                                                 --------         --------
       Total current assets                                         2,030            3,460
                                                                 --------         --------

Property and equipment, at cost (note 3):

    Oil and gas properties and equipment (full cost method)        25,869           68,462
    Other                                                             595              584
                                                                 --------         --------
                                                                   26,464           69,046
       Less accumulated depreciation, depletion
          and amortization                                        (25,904)         (65,081)
                                                                 --------         --------
                                                                      560            3,965
Other assets                                                        1,607            1,561
                                                                 --------         --------
                                                                 $  4,197         $  8,986
                                                                 ========         ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

Liabilities not subject to compromise
    Current liabilities:
       Current portion of long term debt (note 4)                $     --         $ 14,495
       Accounts payable                                             1,192            3,081
       Accrued liabilities                                            174            1,024
                                                                 --------         --------
          Total current liabilities                                 1,366           18,600
                                                                 --------         --------

    Gas balancing obligations and other                               373            1,869

Liabilities subject to compromise (notes 4 and 8)                   4,514               --

Stockholders' deficit:
    Common stock, no par value, authorized 348,500,000 shares;
       issued 46,900,132 shares                                     2,345            2,345
    Additional paid-in capital                                     34,855           34,855
    Accumulated deficit*                                          (39,256)         (48,683)
                                                                 --------         --------
       Total stockholders' deficit                                 (2,056)         (11,483)

Commitments and contingencies (notes 6 and 8)
                                                                 --------         --------
                                                                 $  4,197         $  8,986
                                                                 ========         ========
</TABLE>

* Accumulated deficit of $70,057 was eliminated at December 31, 1992 in
connection with a quasi-reorganization.

See accompanying notes to condensed consolidated financial statements.

                                       2
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
                Condensed Consolidated Statement of Operations
                     (in thousands, except per share data)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                          Three Months Ended      Nine Months Ended
                                                            September 30,            September 30,
                                                           2000        1999         2000       1999
                                                       -----------   ---------   ---------    --------
<S>                                                    <C>           <C>         <C>         <C>
Revenue:
    Oil and gas sales                                    $    741    $  1,955    $  5,054    $  4,714
    Service fees (note 2)                                     166          --         221          --
                                                         --------    --------    --------    --------
       Total revenue                                          907       1,955       5,275       4,714
                                                         --------    --------    --------    --------

Expense:
    Production                                                430         918       1,984       2,697
    Depreciation, depletion and amortization                   55         242         453         862
    General and administrative                                290         247         874         926
    Reorganization fees (note 8)                               35          --          35          --
    Provision for (recovery of) losses on accounts
       receivable                                            (111)        (13)       (221)       (105)
    Severance                                                  --          --          --          62
                                                         --------    --------    --------    --------
       Total expense                                          699       1,394       3,125       4,442
                                                         --------    --------    --------    --------
Other income (expense):
    Gain on transfer of partnership interests (note 2)         --          --       3,452          --
    Interest and other income (expense), net (note 5)          11         122         113         299
    Interest expense                                          (66)       (326)       (749)       (900)
                                                         --------    --------    --------    --------

       Total other income (expense)                           (55)       (204)      2,816        (601)
                                                         --------    --------    --------    --------

       Earnings (loss) before income taxes and
          extraordinary item                                  153         357       4,966        (329)

Income taxes                                                   19          54         212         181
                                                         --------    --------    --------    --------
       Earnings (loss) before extraordinary
          item                                                134         303       4,754        (510)

Extraordinary item - gain (loss) on extinguishment
   of debt (note 2)                                            (7)         --       4,673          --
                                                         --------    --------    --------    --------

       Net earnings (loss)                               $    127    $    303    $  9,427     $  (510)
                                                         ========    ========    ========    ========

Weighted average common shares outstanding -
    basic and diluted                                      46,900      46,900      46,900      46,784
                                                         ========    ========    ========    ========

Basic and diluted earnings (loss) per common share:
    Before extraordinary item                            $    .00    $    .01    $    .10    $   (.01)
    Extraordinary item                                        .00          --         .10          --
                                                         --------    --------    --------    --------
    Net earnings (loss)                                  $    .00    $    .01    $    .20    $   (.01)
                                                         ========    ========    ========    ========
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       3


<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
                Condensed Consolidated Statement of Cash Flows
                                (in thousands)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                                          Nine Months Ended
                                                                            September 30,

                                                                        2000             1999
                                                                    --------          -------
<S>                                                                 <C>               <C>
Net earnings (loss)                                                  $ 9,427          $  (510)
Adjustments to reconcile net earnings (loss) to net
   cash provided by (used in) operating activities
   before reorganization items:
    Depreciation, depletion and amortization                             453              862
    Gain on transfer of partnership interests                         (3,452)               -
    Gain on debt extinguishment                                       (4,673)               -
    Changes in working capital and other, net of effects
       of transfer of partnership interest                              (119)          (1,713)
                                                                     -------          -------

       Net cash provided by (used in) operating activities
           before reorganization items                                 1,636           (1,361)

       Net cash used by reorganization items - reorganization fees       (35)               -
                                                                     -------          -------

       Net cash provided by (used in) operating activities             1,601           (1,361)
                                                                     -------          -------
Cash flows from investing activities:
    Cash balances surrendered in transfer of
       partnership interests                                          (1,393)               -
    Property and equipment expenditures                                 (307)            (140)
    Other                                                                  -               38
                                                                     -------          -------

       Net cash used in investing activities                          (1,700)            (102)
                                                                     -------          -------

Cash flows from financing activities -
    Principal payments on long term debt                                   -             (300)
                                                                     -------          -------

Effect of exchange rate changes on cash and
    cash equivalents                                                      13              176
                                                                     -------          -------

Net decrease in cash and cash equivalents                                (86)          (1,587)
Cash and cash equivalents at beginning of the period                     846            1,712
                                                                     -------          -------

Cash and cash equivalents at end of the period                       $   760          $   125
                                                                     =======          =======
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       4
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
           Condensed Consolidated Statement of Stockholders' Deficit
                    (in thousands, except number of shares)
                                  (unaudited)

<TABLE>
<CAPTION>
                                                    Common Stock
                                          ------------------------------
                                                                               Additional                                Total
                                                 Number                           Paid-in       Accumulated      Stockholders'
                                              of Shares           Amount          Capital           Deficit            Deficit
                                          -------------     ------------     ------------     -------------    ---------------
<S>                                       <C>               <C>              <C>              <C>              <C>
Balances at December 31, 1999                46,900,132     $      2,345     $     34,855     $     (48,683)   $       (11,483)

Net earnings                                          -                -                -             9,427              9,427
                                          -------------     ------------     ------------     -------------    ---------------

Balances at September 30, 2000               46,900,132     $      2,345     $     34,855     $     (39,256)   $        (2,056)
                                          =============     ============     ============     =============    ===============
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       5
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
             Notes to Condensed Consolidated Financial Statements
                                  (unaudited)

1.   General

     The condensed consolidated financial statements of Aviva Petroleum Inc. and
     subsidiaries (the "Company" or "Aviva") included herein have been prepared
     by the Company without audit, pursuant to the rules and regulations of the
     Securities and Exchange Commission. Certain information and footnote
     disclosures normally included in financial statements prepared in
     accordance with generally accepted accounting principles have been
     condensed or omitted pursuant to such rules and regulations, although the
     Company believes that the disclosures contained herein are adequate to make
     the information presented not misleading. These condensed consolidated
     financial statements should be read in conjunction with the Company's prior
     audited yearly financial statements and the notes thereto, included in the
     Company's latest annual report on Form 10-K.

     In the opinion of the Company, all adjustments, consisting of normal
     recurring accruals, necessary to present fairly the information in the
     accompanying financial statements have been included. The results of
     operations for such interim periods are not necessarily indicative of the
     results for the full year.

     The Company's condensed consolidated financial statements have been
     presented on a going concern basis which contemplates the realization of
     assets and the satisfaction of liabilities in the normal course of
     business. As discussed in note 8 below, a significant subsidiary of the
     Company has filed a voluntary petition for reorganization under Chapter 11
     of the U.S. Bankruptcy Code. While the condensed consolidated balance sheet
     reflects the segregation of liabilities subject to compromise under the
     bankruptcy, the condensed consolidated financial statements do not include
     any adjustments relating to the recoverability and classification of asset
     carrying amounts or the amount and classification of liabilities that might
     result should this subsidiary, and the Company, be unable to continue as a
     going concern.

2.   Debt Restructuring and Transfer of Partnership Interests

     On June 8, 2000, the Company entered into agreements with the Company's
     senior secured lender, Crosby Capital, LLC ("Crosby"), in order to
     restructure the Company's senior debt which, including unpaid interest,
     aggregated $16,103,064 as of May 31, 2000. Crosby acquired the debt from
     ING Capital and OPIC on May 1, 2000 (see note 4). Pursuant to the
     agreements, Crosby canceled $13,353,064 of such debt and transferred to the
     Company warrants for 1,500,000 shares of the Company's common stock in
     exchange for the general partner rights and an initial 77.5% partnership
     interest in Argosy Energy International ("Argosy"), a Utah limited
     partnership, which holds the Company's Colombian properties. Following the
     transaction, Aviva Overseas Inc. ("Aviva Overseas"), a wholly owned
     subsidiary of the Company, owns a 22.1196% limited partnership interest in
     Argosy. An additional 7.5% limited partnership interest will be transferred
     from Crosby to Aviva Overseas when Crosby has received in distributions
     from Argosy an amount equal to $3,500,000 plus interest at the prime rate
     plus 1% on the outstanding balance thereof. As of September 30, 2000,
     Crosby had received approximately $1.7 million in distributions from
     Argosy.

     In order to assist Crosby in maximizing the value of its interest in
     Argosy, Crosby entered into a Service Agreement with Aviva Overseas
     pursuant to which Aviva Overseas will provide certain services in
     administering the Colombian assets in exchange for a monthly fee. The fee
     is $71,000

                                       6
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
             Notes to Condensed Consolidated Financial Statements
                            (unaudited) (continued)

     per month for the period June 1, 2000 through March 31, 2001, $46,000 per
     month for the period April 1, 2001 through March 31, 2002, and $21,000 per
     month thereafter as long as the contract is in effect. The Service
     Agreement provides for a term of 22 months and will continue thereafter
     from month to month unless terminated by 30-day written notice by either
     party.

     Crosby retains its interest as senior secured lender in respect of the
     Company's remaining debt of $2,750,000, which continues to be guaranteed by
     the Company and its subsidiaries, including Aviva America, Inc., a wholly
     owned subsidiary, which owns working interests in oil and gas properties at
     Main Pass Block 41 and Breton Sound Block 31 fields, offshore Louisiana.
     Such remaining debt accrues interest at 10% per annum, compounded annually,
     and is due and payable on December 31, 2001. The remaining debt, however,
     may be converted by the Company, under certain circumstances, into a 15%
     net profits interest payable to Crosby in any new production at Breton
     Sound Block 31 field.

     The Company recognized a gain of $3,452,000 on the transfer of the
     partnership interests to Crosby, representing the excess of the fair value
     over the book value of the interests transferred. The Company recognized an
     extraordinary gain of $4,673,000 on the extinguishment of the debt.

     In connection with the above-referenced transaction, 1,000,000 shares of
     the Company's common stock which were held by Crosby prior to the
     transaction, were transferred to members of management and the Board of
     Directors of the Company, effective June 8, 2000. As of such date, the
     aggregate market value of the common stock transferred to members of
     management and the Board of Directors was approximately $25,000 based on
     the last sale price on the OTC Bulletin Board of a depositary share
     representing five shares of the Company's common stock. Additionally,
     200,000 shares of the Company's common stock which were held by Crosby
     prior to the transaction were transferred to a consultant of the Company
     effective as of the same date.

3.   Property and Equipment

     Internal general and administrative costs directly associated with oil and
     gas property acquisition, exploration and development activities have been
     capitalized in accordance with the accounting policies of the Company. Such
     costs totaled $46,000 for the nine months ended September 30, 2000 and
     $31,000 for the nine months ended September 30, 1999.

     Unevaluated oil and gas properties totaling $271,000 and $553,000 at
     September 30, 2000 and December 31, 1999, respectively, have been excluded
     from costs subject to depletion. The Company capitalized interest costs of
     $37,000 and $36,000 for the nine-month periods ended September 30, 2000 and
     1999, respectively, on these properties.

4.   Long Term Debt

     On October 28, 1998, concurrently with the consummation of the merger with
     Garnet Resources Corporation ("Garnet Merger"), Neo Energy, Inc., an
     indirect subsidiary of the Company, and the Company entered into a Restated
     Credit Agreement with ING (U.S.) Capital Corporation ("ING Capital"). ING
     Capital, Chase Bank of Texas, N.A. ("Chase") and the U.S. Overseas Private
     Investment Corporation ("OPIC") also entered into a Joint Finance and
     Intercreditor Agreement (the "Intercreditor Agreement") with the Company.
     ING Capital agreed to loan Neo Energy, Inc. an additional $800,000,
     bringing the total outstanding balance due ING Capital to $9,000,000.

                                       7
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
             Notes to Condensed Consolidated Financial Statements
                            (unaudited) (continued)

     The outstanding balance due to Chase was paid down to $6,000,000 from the
     $6,350,000 balance owed by Garnet prior to the merger.

     The Chase loan was unconditionally guaranteed by OPIC. On September 1,
     1999, the Chase loan was assigned and transferred to OPIC pursuant to this
     guarantee.

     The ING Capital loan and the OPIC loan (the "Bank Credit Facilities") were
     guaranteed by the Company and its material domestic subsidiaries. Both
     loans were also secured by the Company's consolidated interest in the
     Santana contract and related assets in Colombia, a first mortgage on the
     United States oil and gas properties of the Company and its subsidiaries, a
     lien on accounts receivable of the Company and its subsidiaries, and a
     pledge of the capital stock of the Company's subsidiaries.

     Borrowings under the ING Capital loan were subject to interest at the prime
     rate (as defined in the Restated Credit Agreement) plus 3% per annum.
     Borrowings under the OPIC loan were subject to interest at 10.27% per
     annum.

     Borrowings under the Bank Credit Facilities were payable as follows:
     $5,700,000 in April 1999, and thereafter $281,250 per month until final
     maturity on December 31, 2001. The terms of the Bank Credit Facilities,
     among other things, prohibited the Company from merging with another
     company or paying dividends, limited additional indebtedness, general and
     administrative expense, sales of assets and investments and required the
     maintenance of certain minimum financial ratios.

     The Company was also required to maintain an escrow account pursuant to the
     Bank Credit Facilities. As of March 31, 1999 and thereafter, the escrow
     account was to contain the total of the following for the next succeeding
     three-month period: (i) the amount of the minimum monthly principal
     payments (as defined in the loan documents), plus (ii) the interest
     payments due on the combined loans, plus (iii) the amount of all fees due
     under the loan documents and under the Intercreditor Agreement.

     On May 1, 2000, ING Capital and OPIC sold their entire interests in the
     Bank Credit Facilities to Crosby Capital LLC. As more fully described in
     note 2, this debt was restructured on June 8, 2000. The remaining balance
     of $2,750,000 is due on December 31, 2001, and accrues interest at 10% per
     annum, compounded annually. The remaining debt, however, may be converted
     by the Company, under certain circumstances, into a 15% net profits
     interest payable to Crosby in any new production at Breton Sound Block 31
     field. The remaining debt has been included in liabilities subject to
     compromise because the conversion of such debt is anticipated as part of
     the bankruptcy.

                                       8
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
             Notes to Condensed Consolidated Financial Statements
                            (unaudited) (continued)

5.   Interest and Other Income (Expense)

     A summary of interest and other income (expense) follows (in thousands):

<TABLE>
<CAPTION>
                                                                            Nine Months Ended
                                                                              September 30,
                                                                            2000                   1999
                                                                ----------------       ----------------
              <S>                                               <C>                    <C>
              Interest income                                   $             78       $             70
              Foreign currency exchange gain                                   4                    234
              Other, net                                                      31                     (5)
                                                                ----------------       ----------------
                                                                $            113       $            299
                                                                ================       ================
</TABLE>

6.   Commitments and Contingencies

     The Company is engaged in ongoing operations on the Santana contract in
     Colombia. All contract obligations have been met; however, the Company
     plans to recomplete certain existing wells and engage in various other
     projects. The Company's share of the estimated future costs of these
     activities is approximately $150,000 at September 30, 2000.

     The Company expects to fund these activities using existing cash and cash
     provided from operations. Risks that could adversely affect funding of such
     activities include, among others, cost overruns, failure to produce the
     reserves as projected or a decline in the sales price of oil. Depending on
     the results of future exploration and development activities, substantial
     expenditures which have not been included in the Company's cash flow
     projections may be required.

     On August 3, 1998, leftist Colombian guerrillas inflicted significant
     damage on the Company's oil processing and storage facilities at the Mary
     field, and to a lesser extent, at the Linda facilities. Since that time the
     Company has been subject to lesser attacks on its pipelines and equipment
     resulting in only minor interruptions of oil sales. The Colombian army
     guards the Company's operations; however, there can be no assurance that
     the Company's operations will not be the target of additional guerrilla
     attacks in the future. The damages resulting from the above referenced
     attacks were covered by insurance. There can be no assurance that such
     coverage will remain available or affordable.

     On October 16, 2000, the Company issued a press release stating that the
     Trans-Andean pipeline, through which the Company's oil production is
     transported, had been rendered inoperable by attacks from leftist
     guerrillas operating in the southern provinces of Colombia. As a result,
     the Company's oil sales were suspended and its producing wells were being
     systematically shut-in as onsite storage capacity was filled. On October
     23, 2000, production and sales resumed following the completion of repairs
     to the pipeline. The guerrilla attacks are part of wide-spread political
     unrest and fighting affecting the southern regions of Colombia following
     the approval of "Plan Colombia", a $7.5 billion plan to eradicate coca
     cultivation and stimulate a legitimate economy. As a result of the
     political unrest in this area, the Company cannot predict that the
     Trans-Andean pipeline will continue to be operational or if the Company's
     oil sales will again be interrupted.

                                       9
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
             Notes to Condensed Consolidated Financial Statements
                            (unaudited) (continued)

     Under the terms of the contracts with Ecopetrol, a minimum of 25% of all
     revenues from oil sold to Ecopetrol is paid in Colombian pesos which may
     only be utilized in Colombia. To date, the Company has experienced no
     difficulty in repatriating the remaining 75% of such payments, which are
     payable in U.S. dollars.

     Activities of the Company with respect to the exploration, development and
     production of oil and natural gas are subject to stringent foreign,
     federal, state and local environmental laws and regulations, including but
     not limited to the Oil Pollution Act of 1990, the Outer Continental Shelf
     Lands Act, the Federal Water Pollution Control Act, the Resource
     Conservation and Recovery Act and the Comprehensive Environmental Response,
     Compensation, and Liability Act. Such laws and regulations have increased
     the cost of planning, designing, drilling, operating and abandoning wells.
     In most instances, the statutory and regulatory requirements relate to air
     and water pollution control procedures and the handling and disposal of
     drilling and production wastes. Although the Company believes that
     compliance with environmental laws and regulations will not have a material
     adverse effect on the Company's future operations or earnings, risks of
     substantial costs and liabilities are inherent in oil and gas operations
     and there can be no assurance that significant costs and liabilities,
     including civil or criminal penalties for violations of environmental laws
     and regulations, will not be incurred. Moreover, it is possible that other
     developments, such as stricter environmental laws and regulations or claims
     for damages to property or persons resulting from the Company's operations,
     could result in substantial costs and liabilities. For additional
     discussions on the applicability of environmental laws and regulations and
     other risks that may affect the Company's operations, see the Company's
     latest annual report on Form 10-K.

     The Company is involved in certain litigation involving its oil and gas
     activities. Management of the Company believes that these litigation
     matters will not have any material adverse effect on the Company's
     financial condition or results of operations.

                                       10
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
             Notes to Condensed Consolidated Financial Statements
                            (unaudited) (continued)

7.   Segment Information

     The following is a summary of segment information of the Company as of and
     for the nine-month periods ended September 30, 2000 and 1999 (in
     thousands):

<TABLE>
<CAPTION>
                                                                      United
                                                                      States              Colombia                 Total
                                                               -------------         -------------         -------------
     <S>                                                       <C>                   <C>                   <C>
     2000
     ----
     Revenue:
       Oil and gas sales                                        $      1,177          $      3,877          $      5,054
       Service fees                                                      221                     -                   221
                                                                ------------          ------------          ------------
                                                                       1,398                 3,877                 5,275
                                                                ------------          ------------          ------------
     Expense:
       Production                                                        853                 1,131                 1,984
       Depreciation, depletion and amortization                           94                   359                   453
       General and administrative                                        825                    49                   874
       Reorganization fees                                                35                     -                    35
       Recovery of losses on accounts receivable                        (221)                    -                  (221)
                                                                ------------          ------------          ------------
                                                                       1,586                 1,539                 3,125
                                                                ------------          ------------          ------------
     Gain on transfer of partnership interests                             -                 3,452                 3,452
     Interest and other income (expense), net                             (1)                  114                   113
     Interest expense                                                   (185)                 (564)                 (749)
                                                                ------------          ------------          ------------
     Earnings (loss) before income taxes and
         extraordinary item                                             (374)                5,340                 4,966

     Income taxes                                                          -                   212                   212
                                                                ------------          ------------          ------------
     Earnings (loss) before extraordinary
         item                                                           (374)                5,128                 4,754

     Extraordinary item - gain on
         extinguishment of debt                                            -                 4,673                 4,673
                                                                ------------          ------------          ------------
     Net earnings (loss)                                        $       (374)         $      9,801          $      9,427
                                                                ============          ============          ============
     Total assets                                               $      2,409          $      1,788          $      4,197
                                                                ============          ============          ============
</TABLE>

                                       11
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
             Notes to Condensed Consolidated Financial Statements
                            (unaudited) (continued)

<TABLE>
<CAPTION>
                                                                      United
                                                                      States              Colombia                 Total
                                                                ------------          ------------          ------------
     1999
     ----
     <S>                                                        <C>                   <C>                   <C>
     Oil and gas sales                                          $        773          $      3,941          $      4,714
                                                                ------------          ------------          ------------

     Expense:
       Production                                                        910                 1,787                 2,697
       Depreciation, depletion and amortization                          113                   749                   862
       General and administrative                                        864                    62                   926
       Recovery of losses on accounts receivable                        (105)                    -                  (105)
     Severance                                                             -                    62                    62
                                                                ------------          ------------          ------------
                                                                       1,782                 2,660                 4,442
                                                                ------------          ------------          ------------

     Interest and other income (expense), net                            133                   166                   299
     Interest expense                                                   (240)                 (660)                 (900)
                                                                ------------          ------------          ------------

     Earnings (loss) before income taxes                              (1,116)                  787                  (329)

     Income taxes                                                          -                   181                   181
                                                                ------------          ------------          ------------

     Net earnings (loss)                                        $     (1,116)         $        606          $       (510)
                                                                ============          ============          ============

     Total assets                                               $      1,675          $      6,774          $      8,449
                                                                ============          ============          ============
</TABLE>

8.   Subsidiary's Filing of Petition for Reorganization under Chapter 11

     On July 21, 2000, Aviva America, Inc. ("AAI"), a wholly-owned subsidiary of
     the Company, filed a voluntary petition for reorganization under Chapter 11
     of the U.S. Bankruptcy Code. AAI is a Delaware corporation which holds the
     Company's interests in oil and gas properties located offshore Louisiana.
     The filing, in the Northern District of Texas, was initiated in order to
     achieve a comprehensive restructuring of AAI's debts. Under Chapter 11,
     certain claims against AAI in existence prior to the filing of the petition
     are stayed while AAI continues business operations as Debtor-in-possession.
     These claims are reflected in the September 30, 2000 balance sheet as
     "liabilities subject to compromise." Additional claims (liabilities subject
     to compromise) may arise subsequent to the filing date resulting from
     rejection of executory contracts, including leases, and from the
     determination by the court (or agreed to by parties in interest) of allowed
     claims for contingencies and other disputed amounts. Claims secured against
     AAI's assets ("secured claims") also are stayed, although the holder of
     such claims (Crosby Capital LLC) had the right to move the court for relief
     from the stay. Secured claims against AAI are secured by blanket liens on
     AAI's assets.

     A summary of liabilities subject to compromise at September 30, 2000,
     follows (in thousands):

                  Long term debt (see note 4)            $       2,750
                  Gas imbalance payable                            721
                  Accounts payable                                 533
                  Abandonment fund payable                         414
                  Accrued liabilities                               96
                                                         -------------
                                                         $       4,514
                                                         =============

                                       12
<PAGE>

                     AVIVA PETROLEUM INC. AND SUBSIDIARIES
             Notes to Condensed Consolidated Financial Statements
                            (unaudited) (continued)

     On November 7, 2000, a portion of the above referenced liabilities subject
     to compromise aggregating $1,388,000 was extinguished in exchange for a
     cash payment of $225,000 and the assignment of non-cash assets with a net
     book value aggregating $331,000. The resulting gain of $832,000 will be
     recorded in the quarter ending December 31, 2000.

     The expenses related to the bankruptcy proceeding have been segregated on
     the condensed consolidated statement of operations under reorganization
     fees.

Item 2. Management's Discussion and Analysis of Financial Condition and Results
-------------------------------------------------------------------------------
of Operations.
-------------

Results of Operations
---------------------

Three Months Ended September 30, 2000 compared to Three Months Ended September
------------------------------------------------------------------------------
30, 1999
--------

<TABLE>
<CAPTION>
                                                   United States                Colombia
                                               Oil               Gas              Oil              Total
                                          -------------     -------------    -------------     -------------
<S>                                       <C>               <C>              <C>               <C>
              (Thousands)

              Revenue - 1999              $         326     $          20    $       1,609     $       1,955

              Volume variance                       (97)              (15)          (1,369)           (1,481)

              Price variance                        128                22              117               267
                                          -------------     -------------    -------------     -------------

              Revenue - 2000              $         357     $          27    $         357     $         741
                                          =============     =============    =============     =============
</TABLE>

Colombian oil volumes were 13,000 barrels in the third quarter of 2000, a
decrease of 74,000 barrels as compared to the third quarter of 1999. Such
decrease is due to a 45,000 barrel decrease resulting from the transfer of
partnership interests to Crosby and a 29,000 barrel decrease resulting from
normal production declines.

U.S. oil volumes were 12,000 barrels in 2000, down approximately 5,000 barrels
from 1999. Such decrease is primarily due to downtime resulting from adverse
weather and equipment failures. U.S. gas volumes before gas balancing
adjustments were 6,000 thousand cubic feet (MCF) in 2000, slightly higher than
1999.

Colombian oil prices averaged $27.63 per barrel during the third quarter of
2000. The average price for the same period of 1999 was $18.53 per barrel. The
Company's average U.S. oil price increased to $30.26 per barrel in 2000, up from
$19.42 per barrel in 1999. In 2000 prices have been higher than in the third
quarter of 1999 due to an increase in world oil prices. U.S. gas prices averaged
$4.43 per MCF in 2000 compared to $3.55 per MCF in 1999.

Service fees of $166,000 for administering the Colombian assets were received
pursuant to a Service Agreement with Crosby (see note 2 of the condensed
consolidated financial statements included elsewhere herein). This amount is net
of Aviva Overseas' 22.1196% share of the fee.

Operating costs decreased approximately 53%, or $488,000, primarily as a result
of the transfer of partnership interests to Crosby.

                                       13
<PAGE>

Depreciation, depletion and amortization ("DD&A") decreased by 77%, or $187,000,
primarily due to the transfer of partnership interests to Crosby.

General and administrative ("G&A") expense increased $43,000 mainly as a result
of higher employee related costs and legal fees, partially offset by lower fees
paid to consultants.

Reorganization fees of $35,000 were recorded in the third quarter of 2000. These
fees were related to the Aviva America, Inc. bankruptcy (see note 8 to the
condensed consolidated financial statements included elsewhere herein).

Interest and other income decreased $111,000 primarily due to a foreign currency
exchange gain of $116,000 in 1999. During the third quarter of 2000, the Company
had a foreign currency exchange loss of $6,000.

Interest expense decreased $260,000, primarily as a result of the extinguishment
of part of the Company's long term debt (see note 2 to the condensed
consolidated financial statements included elsewhere herein).

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

<TABLE>
<CAPTION>

                                                               United States               Colombia
                                                           Oil               Gas              Oil            Total
                                                     -------------     -------------    -------------     -------------
              <S>                                    <C>               <C>              <C>               <C>
              (Thousands)

              Revenue - 1999                         $         661     $         112    $       3,941     $       4,714

              Volume variance                                  (72)              (81)          (1,961)           (2,114)

              Price variance                                   517                43            1,897             2,457

              Other                                              -                (3)               -                (3)
                                                     -------------     -------------    -------------     -------------

              Revenue - 2000                         $       1,106     $          71    $       3,877     $       5,054
                                                     =============     =============    =============     =============
</TABLE>

Colombian oil volumes were 143,000 barrels in the first nine months of 2000, a
decrease of 142,000 barrels as compared to the first nine months of 1999. Such
decrease is due to a 63,000 barrel decrease resulting from the transfer of
partnership interests to Crosby and a 79,000 barrel decrease resulting from
production declines.

U.S. oil volumes were 39,000 barrels in 2000, a decrease of 5,000 from 1999.
Such decrease is primarily due to downtime resulting from adverse weather and
equipment failures. U.S. gas volumes before gas balancing adjustments were
19,000 MCF in 2000, down 26,000 MCF from 1999. Such decrease is due to a
significant decline in production from the Main Pass 41 field which may be
approaching the end of its economic life.

Colombian oil prices averaged $27.06 per barrel during the first nine months of
2000. The average price for the same period of 1999 was $13.82 per barrel. The
Company's average U.S. oil price increased to $28.38 per barrel in 2000, up from
$15.09 per barrel in 1999. U.S. gas prices averaged $3.49 per MCF in 2000
compared to $2.00 per MCF in 1999.

                                       14
<PAGE>

Service fees of $221,000 for administering the Colombian assets were received
pursuant to a Service Agreement with Crosby (see note 2 of the condensed
consolidated financial statements included elsewhere herein). This amount is net
of Aviva Overseas' 22.1196% share of the fee.

Operating costs decreased approximately 26%, or $713,000, primarily as a result
of the transfer of partnership interests to Crosby and due to lower Colombian
pipeline transportation costs resulting from lower volumes of oil produced.

DD&A decreased by 47%, or $409,000, primarily as a result of the transfer of
partnership interests to Crosby.

G&A expense decreased $52,000 mainly as a result of lower public ownership costs
and lower fees paid to consultants, partially offset by higher employee related
costs.

Reorganization fees of $35,000 were recorded in the third quarter of 2000. These
fees were related to the Aviva America, Inc. bankruptcy (see note 8 to the
condensed consolidated financial statements included elsewhere herein).

In connection with the restructuring of the Company's long term debt, the
Company realized a $3,452,000 gain on the transfer of partnership interests in
Argosy Energy International and a $4,673,000 extraordinary gain on the
extinguishment of a portion of the debt. For a more detailed explanation of the
transaction, see note 2 of the condensed consolidated financial statements
included elsewhere herein.

The Company incurred severance expense of $62,000 during the first nine months
of 1999 related to cost cutting measures in Colombia following the merger with
Garnet Resources Corporation. No such expenses were incurred during 2000.

Interest and other income decreased $186,000 primarily due to a foreign currency
exchange gain of $234,000 in 1999. During the first nine months of 2000, the
foreign currency exchange gain was only $4,000.

Interest expense decreased $151,000 in the first nine months of 2000, primarily
as a result of the extinguishment of part of the Company's long term debt (see
note 2 to the condensed consolidated financial statements included elsewhere
herein).

Income taxes were $31,000 higher in 2000 principally as a result of higher
Colombian earnings.

New Accounting Pronouncements
-----------------------------

The Company is assessing the reporting and disclosure requirements of SFAS No.
133, Accounting for Derivative Instruments and Hedging Activities. This
statement establishes accounting and reporting standards for derivative
instruments and hedging activities and will require the Company to recognize all
derivatives on its balance sheet at fair value. If the derivative is a hedge,
depending on the nature of the hedge, changes in the fair value of the
derivatives will either be offset against the change in fair value of the hedged
item through earnings, or recognized in other comprehensive income until the
hedged item is recognized in earnings. The Company will adopt SFAS No. 133, as
amended, in the first quarter of fiscal 2001. The adoption will not have a
material effect on the Company's results of operations or financial position.

                                       15
<PAGE>

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

Cash and cash equivalents totaled $760,000 and $846,000 at September 30, 2000,
and December 31, 1999, respectively. The decrease in cash and cash equivalents
resulted primarily from the surrender of $1,393,000 of cash balances in the
transfer of partnership interests in Argosy to Crosby, as described in note 2 of
the condensed consolidated financial statements, and property additions of
$307,000. Such decreases were partially offset by net cash provided by operating
activities.

Net cash provided by operating activities was $1,601,000 for the nine months
ended September 30, 2000, compared to $(1,361,000) net cash used in operating
activities for the same period in 1999. This improvement resulted primarily from
significantly higher oil prices during the 2000 period.

Although the Company surrendered significant partnership interests in Argosy in
connection with the aforementioned transaction with Crosby, the Company was able
to restructure its long term debt. As a result of the transaction, the Company's
long term debt and accrued interest, which aggregated $16,103,064 at May 31,
2000, was reduced to $2,750,000. This remaining balance, due December 31, 2001,
is convertible by the Company, under certain circumstances, into a 15% net
profits interest payable to Crosby in any new production at Breton Sound Block
31 field.

The Company's financial condition has improved as a result of the transaction
with Crosby, however, the Company's liabilities continue to exceed the carrying
amount of its consolidated assets. This is also the case for Aviva America, Inc.
("AAI"), a wholly owned subsidiary which holds the Company's interests in oil
and gas properties located offshore Louisiana. Accordingly, on July 21, 2000,
AAI filed a voluntary petition for reorganization under Chapter 11 of the U.S.
Bankruptcy Code. The filing, in the Northern District of Texas, was initiated in
order to achieve a comprehensive restructuring of AAI's debts. Management
believes that a successful reorganization of AAI's debts will improve the
liquidity of AAI and the Company through the reduction or dismissal of certain
of AAI's debts. Management, however, cannot predict with any degree of certainty
the amount of recorded liabilities that may be reduced or dismissed in
connection with this proceeding or the overall impact that it may have on the
Company.

With the exception of historical information, the matters discussed in this
quarterly report contain forward-looking statements that involve risks and
uncertainties. Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be
achieved. Important factors that could cause actual results to differ materially
from those in the forward-looking statements herein include, among other things,
general economic conditions, volatility of oil and gas prices, the impact of
possible geopolitical occurrences world-wide and in Colombia, imprecision of
reserve estimates, changes in laws and regulations, unforeseen engineering and
mechanical or technological difficulties in drilling, working-over and operating
wells during the periods covered by the forward-looking statements, as well as
other factors described in the Company's annual report on Form 10-K.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
-------------------------------------------------------------------

The Company is exposed to market risk from changes in interest rates on debt and
changes in commodity prices.

The Company produces and sells crude oil and natural gas. These commodities are
sold based on market prices established with the buyers. The Company does not
use financial instruments to hedge commodity prices.

                                       16
<PAGE>

PART II - OTHER INFORMATION

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

a)  Exhibits
------------

     *2.1       Loan, Settlement and Acquisition Agreement dated effective May
                31, 2000, by and among Crosby Capital, LLC, Aviva Petroleum
                Inc., Aviva America, Inc., Aviva Operating Company, Aviva
                Overseas, Inc., Neo Energy, Inc., Garnet Resources Corporation,
                Argosy Energy, Inc., and Argosy Energy International (filed as
                exhibit 2.1 to the Company's Form 8-K dated June 8, 2000, File
                No. 0-22258, and incorporated herein by reference).


   **27.1       Financial Data Schedule.


    __________________________________________
    *           Previously filed
    **          Filed herewith

b)  Reports on Form 8-K
-----------------------

The Company filed the following Current Reports on Form 8-K during and
subsequent to the end of the third quarter.

Date of 8-K/A              Description of 8-K/A
-------------              --------------------

June 8, 2000               The registrant filed an amendment on August 18, 2000
                           to the registrant's report on Form 8-K dated June 8,
                           2000, to include the pro forma financial information
                           required by Item 7 of Form 8-K.

                                       17
<PAGE>

                                   SIGNATURES
                                   ----------

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

                                           AVIVA PETROLEUM INC.



Date:  November 10, 2000       /s/ Ronald Suttill
                               ---------------------------------------------
                               Ronald Suttill
                               President and Chief Executive Officer



                               /s/  James L. Busby
                               ---------------------------------------------
                               James L. Busby
                               Secretary, Treasurer and Chief Financial Officer
                               (Principal Financial and Accounting Officer)

                                       18
<PAGE>

                               INDEX TO EXHIBITS

   Exhibit
    Number      Description of Exhibit
    ------      ----------------------

     *2.1       Loan, Settlement and Acquisition Agreement dated effective May
                31, 2000, by and among Crosby Capital, LLC, Aviva Petroleum
                Inc., Aviva America, Inc., Aviva Operating Company, Aviva
                Overseas, Inc., Neo Energy, Inc., Garnet Resources Corporation,
                Argosy Energy, Inc., and Argosy Energy International (filed as
                exhibit 2.1 to the Company's Form 8-K dated June 8, 2000, File
                No. 0-22258, and incorporated herein by reference).


   **27.1       Financial Data Schedule.


    _________________________________________
    *           Previously filed
    **          Filed herewith

                                       19