<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 MARCH 31, 2002
                                                 --------------

                                       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 March 31, 2002,
was 46,900,132.

<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>

                                                                           March 31,  December 31,
                                                                               2002          2001
                                                                           --------    ----------
<S>                                                                        <C>         <C>
ASSETS

Current assets:
    Cash and cash equivalents                                              $    795      $  1,010
    Accounts receivable                                                         303           187
    Inventories                                                                 208           209
    Prepaid expenses and other                                                  114           140
                                                                           --------      --------
       Total current assets                                                   1,420         1,546
                                                                           --------      --------

Property and equipment, at cost (note 3):

    Oil and gas properties and equipment (full cost method)                  20,265        20,244
    Other                                                                       334           334
                                                                           --------      --------
                                                                             20,599        20,578
       Less accumulated depreciation, depletion
          and amortization                                                  (20,043)      (19,981)
                                                                           --------      --------
                                                                                556           597
Other assets                                                                  1,001           991
                                                                           --------      --------
                                                                           $  2,977      $  3,134
                                                                           ========      ========
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Accounts payable                                                       $    699      $    776
    Accrued liabilities                                                          55            37
                                                                           --------      --------
       Total current liabilities                                                754           813
                                                                           --------      --------

Other liabilities                                                               370           368

Stockholders' equity:
    Common stock, no par value, authorized 348,500,000 shares;
       issued 46,900,132 shares                                               2,345         2,345
    Additional paid-in capital                                               37,710        37,710
    Accumulated deficit*                                                    (38,202)      (38,102)
                                                                           --------      --------
       Total stockholders' equity                                             1,853         1,953

Commitments and contingencies (note 4)
                                                                           --------      --------
                                                                           $  2,977      $  3,134
                                                                           ========      ========
</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
                                                                   March 31,

                                                                2002             2001
                                                         -----------     ------------
<S>                                                      <C>             <C>
Revenue:
    Oil and gas sales                                    $       363     $        600
    Service fees                                                  97              166
                                                         -----------     ------------
       Total revenue                                             460              766
                                                         -----------     ------------

Expense:
    Production                                                   267              358
    Depreciation, depletion and amortization                      62               67
    General and administrative                                   267              289
    Recovery of losses on accounts receivable                      -              (25)
                                                         -----------     ------------

       Total expense                                             596              689
                                                         -----------     ------------

Other income (expense):
    Interest and other income (expense), net                      53              170
    Interest expense                                               -               (1)
                                                         -----------     ------------

       Total other income (expense)                               53              169
                                                         -----------     ------------

Earnings (loss) before income taxes                              (83)             246

Income taxes                                                     (17)             (17)
                                                         -----------     ------------

          Net earnings (loss)                            $      (100)    $        229
                                                         ===========     ============


Weighted average common shares outstanding                    46,900           46,900
                                                         ===========     ============

Basic and diluted net earnings per common share          $     (0.00)    $       0.00
                                                         ===========     ============
</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>
                                                                                              Three Months Ended
                                                                                                       March 31,

                                                                                               2002                  2001
                                                                                      -------------         -------------
<S>                                                                                   <C>                   <C>
Net earnings (loss)                                                                   $        (100)        $         229
Adjustments to reconcile net earnings (loss) to
   net cash used in operating activities:
    Depreciation, depletion and amortization                                                     62                    67
    Changes in working capital and other                                                       (154)                 (420)
                                                                                      -------------         -------------

       Net cash used in operating activities                                                   (192)                 (124)
                                                                                      -------------         -------------

Cash flows from investing activities:

    Property and equipment expenditures                                                         (22)                  (86)
    Proceeds from sale of assets                                                                  -                     4
                                                                                      -------------         -------------

       Net cash used in investing activities                                                    (22)                  (82)
                                                                                      -------------         -------------

Cash flows from financing activities                                                              -                     -
                                                                                      -------------         -------------

Effect of exchange rate changes on cash and
    cash equivalents                                                                             (1)                    9
                                                                                      -------------         -------------

Net decrease in cash and cash equivalents                                                      (215)                 (197)
Cash and cash equivalents at beginning of the period                                          1,010                   820
                                                                                      -------------         -------------

Cash and cash equivalents at end of the period                                        $         795         $         623
                                                                                      =============         =============

</TABLE>



See accompanying notes to condensed consolidated financial statements.

                                       4

<PAGE>

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

<TABLE>
<CAPTION>
                                            Common Stock
                                      -----------------------
                                                                  Additional                        Total
                                        Number                     Paid-in      Accumulated     Stockholders'
                                      of Shares      Amount        Capital        Deficit          Equity
                                      ----------    ---------     ----------    -----------     ------------
<S>                                   <C>           <C>           <C>           <C>             <C>
Balances at December 31, 2001         46,900,132    $   2,345     $   37,710    $   (38,102)    $      1,953
Net loss                                       -            -              -           (100)            (100)
                                      ----------    ---------     ----------    -----------     ------------

Balances at March 31, 2002            46,900,132    $   2,345     $   37,710    $   (38,202)    $      1,853
                                      ==========    =========     ==========    ===========     ============
</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 accounting principles generally accepted in the United
     States of America 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.

2.   Transfer of Partnership Interest

     Pursuant to the June 8, 2000 agreements with Crosby Capital L.L.C.
     ("Crosby"), an additional 7.5% limited partnership interest was transferred
     from Crosby to Aviva effective August 14, 2001, when Crosby received in
     distributions from Argosy Energy International ("Argosy") an amount equal
     to $3,500,000 plus interest at the prime rate plus 1%. Argosy is the Utah
     limited partnership that holds the Company's Colombian properties. The
     Company's interest in Argosy is 29.6196% after the transfer.

     The Company proportionately consolidates its interest in Argosy. The excess
     of net assets over the net liabilities of Argosy attributable to the
     additional 7.5% partnership interest transferred to the Company effective
     August 14, 2001 equaled approximately $340,000. Such amount has been
     credited to the Company's Colombian cost center in accordance with the full
     cost method of accounting.

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 $18,000 for the three months ended March 31, 2002 and $20,000
     for the three months ended March 31, 2001.

     Unevaluated oil and gas properties totaling $310,000 and $303,000 at March
     31, 2002 and December 31, 2001, respectively, have been excluded from costs
     subject to depletion.

4.   Commitments and Contingencies

     During the latter part of 2001, an offset operator drilled a successful
     exploratory well approximately 4,000 feet from the eastern boundary of the
     Company's Breton Sound acreage. Management of the Company is currently in
     discussions with such operator, and other interested parties, with a view
     towards negotiating an arrangement to explore the Company's Breton Sound

                                       6

<PAGE>

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

     prospects. At this time it is not possible to predict the cost, if any, net
     to the Company, that may arise should management successfully negotiate
     such an arrangement.

     The Company is also engaged in ongoing operations in Colombia. The
     obligations under the Santana contract have been met; however, Argosy plans
     to recomplete certain existing wells and engage in various other projects.
     The first of these recompletions is scheduled during 2003, and the majority
     of the remaining recompletions are scheduled during 2004. The Company's
     share of the estimated future costs of these activities is approximately
     $0.2 million at March 31, 2002.

     The contract obligations of the Rio Magdalena contract require Argosy and
     its co-owner to perform 40 kilometers of 2D seismic during the initial
     18-month exploration phase of the contract. The Company's current share of
     the estimated future costs of this phase is approximately $74,000 at March
     31, 2002. Additional expenditures will be required should Argosy decide to
     enter into the second phase of the contract.

     The proposed obligations of the Guayuyaco contract (now expected to be
     signed in May 2002) will require Argosy to drill one exploratory well
     during the initial 12-month exploration phase of the contract. Upon
     completion of the initial exploration phase, Argosy may relinquish the
     contract or proceed to the following 18-month exploration phase, whereunder
     Argosy will be obligated to drill a second exploratory well. Argosy is
     continuing its efforts to secure an industry partner to farm-in to this
     acreage and expects to drill the first exploratory well during the second
     quarter of 2003.

     Failure by Argosy to meet the obligations under the proposed Guayuyaco
     contract will result in the loss of the proposed contract terms. The
     existing Santana production and acreage will not be affected. Failure by
     the Company to fund its share of Argosy's obligations, assuming Argosy
     funds the obligation, could result in a decrease in the Company's ownership
     interest in Argosy.

     The Company expects to fund its share of the cost of the recompletions on
     the Santana contract and the seismic commitments on the Rio Magdalena
     contract using existing cash and cash provided from operations. Any
     substantial increase in the amount of the above referenced expenditures
     could adversely affect the Company's ability to fund these activities.
     Risks that could adversely affect funding of such activities include, among
     others, delays in obtaining any required environmental permits, 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 projections may be required.

     Although the ultimate outcome of these matters cannot be projected with
     certainty, management believes that the Company's existing capital
     resources are adequate to fund its current obligations. If, however, the
     Company enters into an arrangement to explore its Breton Sound acreage, the
     Company's existing capital resources may be inadequate to fund the
     Company's share, if any, of the exploration program. Accordingly, the
     Company may be required to raise additional capital through equity issues,
     incurring debt or by sales of assets. There can be no assurance that such
     attempts to raise additional capital would be successful.

                                       7

<PAGE>

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

     During 1998, leftist Colombian guerrillas inflicted significant damage on
     Argosy's oil processing and storage facilities. Since that time Argosy 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 such
     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. During 2001 the cost of such insurance became
     prohibitively high and, accordingly, Argosy has elected to no longer
     maintain terrorism insurance.

     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.

                                       8

<PAGE>

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

5.  Segment Information

     The following is a summary of segment information of the Company as of and
     for the three-month periods ended March 31, 2002 and 2001 (in thousands):
<TABLE>
<CAPTION>


                                                                      United
                                                                      States              Colombia                 Total
                                                                ------------          ------------          ------------
     <S>                                                        <C>                   <C>                   <C>
     2002
     ----
     Revenue:

       Oil and gas sales                                        $        107          $        256          $        363
       Service fees                                                       97                     -                    97
                                                                ------------          ------------          ------------
                                                                         204                   256                   460
                                                                ------------          ------------          ------------
     Expense:
       Production                                                        144                   123                   267
       Depreciation, depletion and amortization                           38                    24                    62
       General and administrative                                        229                    38                   267
                                                                ------------          ------------          ------------
                                                                         411                   185                   596
                                                                ------------          ------------          ------------

     Interest and other income (expense), net                             23                    30                    53
     Interest expense                                                      -                     -                     -
                                                                ------------          ------------          ------------

     Earnings (loss) before income taxes                                (184)                  101                   (83)
     Income taxes                                                          -                   (17)                  (17)
                                                                ------------          ------------          ------------

     Net earnings (loss)                                        $       (184)         $         84          $       (100)
                                                                ============          ============          ============

     Total assets                                               $      1,583          $      1,394          $      2,977
                                                                ============          ============          ============


     2001
     ----
     Revenue:

       Oil and gas sales                                        $        286          $        314          $        600
       Service fees                                                      166                     -                   166
                                                                ------------          ------------          ------------
                                                                         452                   314                   766
                                                                ------------          ------------          ------------
     Expense:
       Production                                                        214                   144                   358
       Depreciation, depletion and amortization                           37                    30                    67
       General and administrative                                        268                    21                   289
       Recovery of losses on accounts receivable                         (25)                    -                   (25)
                                                                ------------          ------------          ------------
                                                                         494                   195                   689
                                                                ------------          ------------          ------------

     Interest and other income (expense), net                             18                   152                   170
     Interest expense                                                     (1)                    -                    (1)
                                                                ------------          ------------          ------------

     Earnings (loss) before income taxes                                 (25)                  271                   246
     Income taxes                                                          -                   (17)                  (17)
                                                                ------------          ------------          ------------

     Net earnings (loss)                                        $        (25)         $        254          $        229
                                                                ============          ============          ============

     Total assets                                               $      1,705          $      1,540          $      3,245
                                                                ============          ============          ============
</TABLE>



                                       9

<PAGE>

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

Results of Operations
----------------------
Three Months Ended March 31, 2002 compared to Three Months Ended March 31, 2001
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                                                      United States          Colombia
                                                    Oil           Gas          Oil             Total
                                                 ---------     ---------    ----------     -------------
          (Thousands)

          <S>                                    <C>           <C>          <C>            <C>
          Oil and gas sales - 2001               $     250     $      36    $      314     $         600

          Volume variance                             (116)           (5)           26               (95)
          Price variance                               (38)          (20)          (84)             (142)
                                                 ---------     ---------    ----------     -------------

          Oil and gas sales - 2002               $      96     $      11    $      256     $         363
                                                 =========     =========    ==========     =============
</TABLE>


Colombian oil volumes were 16,000 barrels in the first quarter of 2002, an
increase of 2,000 barrels as compared to the first quarter of 2001. Such
increase is due to a 4,000 barrel increase resulting from the transfer of a 7.5%
partnership interest to Aviva from Crosby Capital L.L.C. ("Crosby") (see note 2
to the condensed consolidated financial statements) offset partially by a 2,000
barrel decrease resulting from production declines.

U.S. oil volumes were 5,000 barrels in 2002, down approximately 4,000 barrels
from 2001. Such decrease is due to the Company's Breton Sound 31 field, and
certain wells therein, being shut-in during the first quarter of 2002 as a
result of equipment failures. U.S. gas volumes were maintained at 5,000 thousand
cubic feet (MCF) in 2002, the same level as 2001.

Colombian oil prices averaged $16.37 per barrel during the first quarter of
2002. The average price for the same period of 2001 was $21.83 per barrel. The
Company's average U.S. oil price decreased to $19.17 per barrel in 2002, down
from $26.80 per barrel in 2001. U.S. gas prices averaged $2.34 per MCF in 2002
compared to $6.77 per MCF in 2001.

Service fees of $97,000 for administering the Colombian assets were received in
2002 compared to $166,000 in 2001. The 2002 amount covers three months at a
monthly rate of $46,000. The 2001 amount covered three months at a monthly rate
of $71,000. The recorded amounts are net of Aviva Overseas' share of the fees.

Operating costs decreased approximately 25%, or $91,000, primarily as a result
of a decrease in the cost of lease fuel in the U.S. due to lower gas prices and
the absence of Colombian crude oil transportation charges in 2002. Such
transportation charges (approximately $1.82 per barrel in 2001) are included as
a deduction to the oil sales price in 2002 pursuant to the latest oil sales
agreement with Ecopetrol.

General and administrative expense decreased $22,000 primarily as a result of a
decrease in public ownership costs and legal fees.

Interest and other income decreased $117,000 mainly due to a $119,000 gain on
the settlement of a disputed payable recorded in 2001. There was no similar item
during 2002.

                                       10

<PAGE>

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

In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 143 "Accounting for Asset
Retirement Obligations" which establishes requirements for the accounting of
removal-type costs associated with asset retirements. The standard is effective
for fiscal years beginning after June 15, 2002, with earlier application
encouraged. The Company is currently assessing the impact on its financial
statements.

On October 3, 2001, the FASB issued SFAS No. 144 "Accounting for the Impairment
or Disposal of Long-Lived Assets" which addresses financial accounting and
reporting for the impairment or disposal of long-lived assets. SFAS No. 144 is
effective for fiscal years beginning after December 15, 2001 and interim periods
within those fiscal years. The Company adopted SFAS No. 144 in the first quarter
of 2002. The adoption had no material impact on the Company's financial
statements.

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

Cash and cash equivalents totaled $795,000 and $1,010,000 at March 31, 2002 and
December 31, 2001, respectively. The decrease in cash and cash equivalents
resulted primarily from net cash used in operating activities ($192,000) and
property additions ($22,000).

Net cash used in operating activities was ($192,000) in 2002, compared to
($124,000) net cash used in operating activities for 2001. This decrease
resulted primarily from lower oil and gas prices received for the Company's
production and lower U.S. oil volumes resulting from equipment failures. These
decreases were partially offset by a smaller change in working capital.

During the latter part of 2001, an offset operator drilled a successful
exploratory well approximately 4,000 feet from the eastern boundary of the
Company's Breton Sound acreage. Management of the Company is currently in
discussions with such operator, and other interested parties, with a view
towards negotiating an arrangement to explore the Company's Breton Sound
prospects. At this time it is not possible to predict the cost, if any, net to
the Company, that may arise should management successfully negotiate such an
arrangement.

The Company is also engaged in ongoing operations in Colombia. The obligations
under the Santana contract have been met; however, Argosy plans to recomplete
certain existing wells and engage in various other projects. The first of these
recompletions is scheduled during 2003, and the majority of the remaining
recompletions are scheduled during 2004. The Company's share of the estimated
future costs of these activities is approximately $0.2 million at March 31,
2002.

The contract obligations of the Rio Magdalena contract require Argosy and its
co-owner to perform 40 kilometers of 2D seismic during the initial 18-month
exploration phase of the contract. The Company's current share of the estimated
future costs of this phase is approximately $74,000 at March 31, 2002.
Additional expenditures will be required should Argosy decide to enter into the
second phase of the contract.

The proposed obligations of the Guayuyaco contract (now expected to be signed in
May 2002) will require Argosy to drill one exploratory well during the initial
12-month exploration phase of the contract. Upon completion of the initial
exploration phase, Argosy may relinquish the contract or proceed to the
following 18-month exploration phase, whereunder Argosy will be obligated to
drill a second exploratory well. Argosy is continuing its efforts to secure an
industry partner to farm-in to this acreage and expects to drill the first
exploratory well during the second quarter of 2003.

                                       11

<PAGE>

Failure by Argosy to meet the obligations under the proposed Guayuyaco contract
will result in the loss of the proposed contract terms. The existing Santana
production and acreage will not be affected. Failure by the Company to fund its
share of Argosy's obligations, assuming Argosy funds the obligation, could
result in a decrease in the Company's ownership interest in Argosy.

The Company expects to fund its share of the cost of the recompletions on the
Santana contract and the seismic commitments on the Rio Magdalena contract using
existing cash and cash provided from operations. Any substantial increase in the
amount of the above referenced expenditures could adversely affect the Company's
ability to fund these activities. Risks that could adversely affect funding of
such activities include, among others, delays in obtaining any required
environmental permits, 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 projections may be required.

Although the ultimate outcome of these matters cannot be projected with
certainty, management believes that the Company's existing capital resources are
adequate to fund its current obligations. If, however, the Company enters into
an arrangement to explore its Breton Sound acreage, the Company's existing
capital resources may be inadequate to fund the Company's share, if any, of the
exploration program. Accordingly, the Company may be required to raise
additional capital through equity issues, incurring debt or by sales of assets.
There can be no assurance that such attempts to raise additional capital would
be successful.

During 1998, leftist Colombian guerrillas inflicted significant damage on
Argosy's oil processing and storage facilities. Since that time Argosy 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 such 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. During 2001 the cost of such
insurance became prohibitively high and, accordingly, Argosy has elected to no
longer maintain terrorism insurance.

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.

                                       12

<PAGE>

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.

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.

                                       13

<PAGE>

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

The Company is exposed to market risk from 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.

PART II - OTHER INFORMATION

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

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

None

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

The Company did not file any Current Reports on Form 8-K during or subsequent to
the end of the first quarter of 2002.

                                       14

<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:  May 10, 2002                 /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)



                                       15

<PAGE>

                                INDEX TO EXHIBITS

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

   None

                                       16