<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 JUNE 30, 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 June 30, 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>
                                                                                 June 30,           December 31,
                                                                                    2002                   2001
                                                                               ----------           -----------
<S>                                                                             <C>                  <C>
ASSETS

Current assets:
    Cash and cash equivalents                                                   $    629              $  1,010
    Accounts receivable                                                              327                   187
    Inventories                                                                      202                   209
    Prepaid expenses and other                                                        81                   140
                                                                                --------              --------
       Total current assets                                                        1,239                 1,546
                                                                                --------              --------

Property and equipment, at cost (note 3):
    Oil and gas properties and equipment (full cost method)                       20,299                20,244
    Other                                                                            334                   334
                                                                                --------              --------
                                                                                  20,633                20,578
       Less accumulated depreciation, depletion
          and amortization                                                       (20,129)              (19,981)
                                                                                --------              --------
                                                                                     504                   597
Other assets                                                                       1,009                   991
                                                                                --------              --------
                                                                                $  2,752              $  3,134
                                                                                ========              ========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Accounts payable                                                            $    550              $    776
    Accrued liabilities                                                               71                    37
                                                                                --------              --------
       Total current liabilities                                                     621                   813
                                                                                --------              --------

Other liabilities                                                                    366                   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*                                                         (38,290)              (38,102)
                                                                                --------              --------
       Total stockholders' equity                                                  1,765                 1,953

Commitments and contingencies (note 4)
                                                                                --------              --------
                                                                                $  2,752              $  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      Six Months Ended
                                                       June 30,                June 30,

                                                    2002        2001        2002        2001
                                                --------   ---------    --------   ---------
<S>                                             <C>        <C>          <C>        <C>
Revenue:
    Oil and gas sales                           $    534    $    575    $    897    $  1,175
    Service fees                                      --         107          97         273
                                                --------   -----------   --------   ---------
       Total revenue                                 534         682         994       1,448
                                                --------   -----------   --------   ---------

Expense:
    Production                                       331         357         598         715
    Depreciation, depletion and amortization          86          65         148         131
    General and administrative                       218         290         485         580
    Recovery of losses on accounts receivable         --         (4)          --         (29)
                                                --------   -----------   --------   ---------

       Total expense                                 635         708       1,231       1,397
                                                --------   -----------   --------   ---------

Other income (expense):
    Interest and other income (expense), net          37           2          90         173
    Interest expense                                  (2)         (1)         (2)         (2)
                                                --------   -----------   --------   ---------

       Total other income (expense)                   35           1          88         171
                                                --------   -----------   --------   ---------

       Earnings (loss) before income taxes           (66)        (25)       (149)        222

Income taxes                                         (22)        (19)        (39)        (36)
                                                --------   -----------   --------   ---------

       Net earnings (loss)                      $    (88)   $    (44)   $   (188)   $    186
                                                ========   ===========   ========   =========

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

Basic and diluted net earnings (loss) per
  common share                                  $   (.00)  $    (.00)   $   (.00)   $    .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>
                                                                        Six Months Ended
                                                                              June 30,

                                                                        2002                   2001
                                                            ----------------        ---------------
<S>                                                         <C>                     <C>
Net earnings (loss)                                         $           (188)       $           186
Adjustments to reconcile net earnings (loss) to net
   cash used in operating activities:
    Depreciation, depletion and amortization                             148                    131
    Changes in working capital and other                                (290)                  (469)
                                                            ----------------        ---------------

       Net cash used in operating activities                            (330)                  (152)
                                                            ----------------        ---------------

Cash flows from investing activities:
    Property and equipment expenditures                                  (55)                   (97)
    Proceeds from sale of assets                                           -                      4
                                                            ----------------        ---------------

       Net cash used in investing activities                             (55)                   (93)
                                                            ----------------        ---------------

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

Effect of exchange rate changes on cash and
    cash equivalents                                                       4                     12
                                                            ----------------        ---------------

Net decrease in cash and cash equivalents                               (381)                  (233)
Cash and cash equivalents at beginning of the period                   1,010                    820
                                                            ----------------        ---------------

Cash and cash equivalents at end of the period              $            629        $           587
                                                            ================        ===============
</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                                              -                -                -              (188)              (188)
                                          -------------     ------------     ------------     -------------    ---------------

Balances at June 30, 2002                    46,900,132     $      2,345     $     37,710     $     (38,290)   $         1,765
                                          =============     ============     ============     =============    ===============
</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 $48,000 for the six months ended June 30, 2002 and $31,000
     for the six months ended June 30, 2001.

     Unevaluated oil and gas properties totaling $313,000 and $303,000 at June
     30, 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. Although such operator decided not to
     participate in prospects located on Aviva's acreage,

                                       6

<PAGE>


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

     management of the Company is continuing its efforts with 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 June 30, 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 June
     30, 2002. Additional expenditures will be required should Argosy decide to
     enter into the second phase of the contract.

     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 in Colombia and cash provided from Colombian
     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.

     The contract obligations of the Guayuyaco contract (signed August 2, 2002)
     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 plans to involve industry and
     service company partners to reduce the cost exposure of the first
     exploratory well. A letter of intent has already been signed with
     Schlumberger Surenco, S.A. to participate, through provision of services
     and materials, in the drilling of an exploratory well on our Inchiyaco
     prospect (formerly Mary East). This well, the Inchiyaco #1, is expected to
     be an 8,100 foot exploration test of the Villeta U, T, N and Caballos sands
     in the Inchiyaco structure approximately 500 meters east of the Mary field.
     Depending on definitive service agreements, rig availability and other
     contingencies, drilling could commence as early as the fourth quarter of
     2002.

     Failure by Argosy to meet the obligations under the Guayuyaco contract will
     result in the loss of the proposed contract terms. The existing Santana
     production 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.

     In order to accumulate the funds necessary to drill the Inchiyaco #1,
     management of Argosy has decided to suspend cash distributions from Argosy
     to its partners (including Aviva) beginning in June 2002. Accordingly,
     Aviva cannot expect to receive cash distributions from Argosy during

                                       7

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

     the foreseeable future. Even if such an exploratory well were successful,
     additional funds may be required to equip and complete such a well prior to
     the resumption of cash distributions.

     As of June 30, 2002, approximately $261,000 of cash and cash equivalents
     included in the Company's consolidated cash and cash equivalents balance
     was held by Argosy and is not available to the Company for use outside of
     Colombia. The remaining balance of $368,000 is under the direct control of
     Aviva and is available for its U.S. operations. As indicated in note 5 to
     the condensed consolidated financial statements, the U.S. operations have
     suffered a net operating loss of approximately $423,000 for the six-month
     period ended June 30, 2002, and are expected to continue to have operating
     losses in the foreseeable future. Although the Company is currently
     receiving a higher price ($25.02 per barrel) for its Breton Sound oil
     production ($22.36 per barrel during the first six months of 2002), it is
     unlikely that such improvement in price will result in a significant
     improvement in the results of operations for the U.S. Accordingly, if
     management is unable to successfully implement its plans as set forth below
     or if distributions from Argosy do not resume, the Company's liquidity will
     continue to deteriorate and at some point, possibly as early as mid-2003,
     the Company may be unable to continue as a going concern.

     In order to improve the Company's liquidity, management of the Company is
     working to raise additional capital through equity issues, incurring debt
     or by sales of assets. Although the ultimate outcome of these matters
     cannot be projected with certainty, management believes that the Company's
     existing capital resources plus the capital that management expects to
     raise, will be adequate to fund the Company's current obligations. There
     can be no assurance, however, that such attempts to raise additional
     capital will 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

                                       8

<PAGE>



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

     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.

                                       9

<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 six-month periods ended June 30, 2002 and 2001 (in thousands):

                                             United
                                             States    Colombia      Total
                                             ------    --------      -----

2002
----
Revenue:
  Oil and gas sales                          $   339    $   558    $   897
  Service fees                                    97         --         97
                                             -------    -------    -------
                                                 436        558        994
                                             -------    -------    -------

Expense:
  Production                                     355        243        598
  Depreciation, depletion and amortization        99         49        148
  General and administrative                     428         57        485
                                             -------    -------    -------
                                                 882        349      1,231
                                             -------    -------    -------

Interest and other income (expense), net          25         65         90
Interest expense                                  (2)        --         (2)
                                             -------    -------    -------

Net earnings (loss) before income taxes         (423)       274       (149)

Income taxes                                      --        (39)       (39)
                                             -------    -------    -------

Net earnings (loss)                          $  (423)   $   235    $  (188)
                                             =======    =======    =======

Total assets                                 $ 1,351    $ 1,401    $ 2,752
                                             =======    =======    =======

                                       10

<PAGE>

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

                                              United
                                              States    Colombia     Total
                                              ------    --------     -----

2001
----
Revenue:
  Oil and gas sales                           $   546    $   629    $ 1,175
  Service fees                                    273         --        273
                                              -------    -------    -------
                                                  819        629      1,448
                                              -------    -------    -------

Expense:
  Production                                      432        283        715
  Depreciation, depletion and amortization         73         58        131
  General and administrative                      527         53        580
  Recovery of losses on accounts receivable       (29)        --        (29)
                                              -------    -------    -------
                                                1,003        394      1,397
                                              -------    -------    -------

Interest and other income (expense), net           36        137        173
Interest expense                                   (2)        --         (2)
                                              -------    -------    -------

Earnings (loss) before income taxes              (150)       372        222

Income taxes                                       --        (36)       (36)
                                              -------    -------    -------

Net earnings (loss)                           $  (150)   $   336    $   186
                                              =======    =======    =======

Total assets                                  $ 1,724    $ 1,417    $ 3,141
                                              =======    =======    =======

                                       11


<PAGE>

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

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

Three Months Ended June 30, 2002 compared to Three Months Ended June 30, 2001
-----------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                               United States               Colombia
                                                           Oil               Gas              Oil             Total
                                                     -------------     -------------    -------------     -------------
              (Thousands)
              <S>                                    <C>               <C>              <C>               <C>
              Oil and gas sales - 2001               $         228     $          32    $         315     $         575

              Volume variance                                   (7)               (4)              40                29

              Price variance                                    (9)               (8)             (53)              (70)
                                                     -------------     -------------    -------------     -------------

              Oil and gas sales - 2002               $         212     $          20    $         302     $         534
                                                     =============     =============    =============     =============
</TABLE>


Colombian oil volumes were 15,000 barrels in the second quarter of 2002, an
increase of 2,000 barrels as compared to the second 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 normal production declines.

U.S. oil volumes were 9,000 barrels in 2002, approximately the same as 2001.
U.S. gas volumes were 6,000 thousand cubic feet (MCF) in 2002, down 1,000 MCF
from 2001.

Colombian oil prices averaged $19.88 per barrel during the second quarter of
2002. The average price for the same period of 2001 was $23.38 per barrel. The
Company's average U.S. oil price decreased to $24.19 per barrel in 2002, down
from $25.12 per barrel in 2001. U.S. gas prices averaged $3.45 per MCF in 2002
compared to $4.85 per MCF in 2001.

Service fees of $107,000 for administering the Colombian assets were received in
2001. The 2001 amount covers three months at a monthly rate of $46,000, net of
Aviva Overseas' 22.1196% (29.6196% after August 14, 2001) share of the fees. No
service fees were recorded in the second quarter of 2002 because the service
contract was cancelled effective March 31, 2002.

Operating costs decreased approximately 7%, or $26,000, primarily as a result of
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.

Depreciation, depletion and amortization ("DD&A") increased by 32%, or $21,000,
due to an increase in the U.S. DD&A rate per barrel that resulted from a
decrease in the U.S. proved reserves.

General and administrative ("G&A") expense decreased $72,000 or 25% primarily
due to lower public ownership costs, lower insurance costs, and an increase in
the amount of G&A expense capitalized for Colombian activities.

                                       12

<PAGE>

Six Months Ended June 30, 2002 compared to Six Months Ended June 30, 2001
-------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                United States              Colombia
                                                           Oil               Gas              Oil             Total
                                                     -------------     -------------    -------------     -------------
              (Thousands)
              <S>                                    <C>               <C>              <C>               <C>
              Oil and gas sales - 2001               $         478     $          68    $         629     $       1,175

              Volume variance                                 (119)               (9)              66               (62)

              Price variance                                   (50)              (29)            (137)             (216)
                                                     -------------     -------------    -------------     -------------

              Oil and gas sales - 2002               $         309     $          30    $         558     $         897
                                                     =============     =============    =============     =============
</TABLE>

Colombian oil volumes were 31,000 barrels in the first half of 2002, an increase
of 3,000 barrels as compared to the first half of 2001. Such increase is due to
an 8,000 barrel increase resulting from the transfer of a 7.5% partnership
interest to Aviva from Crosby (see note 2 to the condensed consolidated
financial statements) offset partially by a 5,000 barrel decrease resulting from
production declines.

U.S. oil volumes were 14,000 barrels in 2002, down approximately 4,000 barrels
from 2001. Such decrease is primarily due to the Company's Breton Sound 31
field, and certain wells therein, being shut-in for various periods during the
first half of 2002 as a result of equipment failures. U.S. gas volumes were
10,000 MCF in 2002, down 2,000 MCF from 2001 as a result of the aforementioned
equipment failures.

Colombian oil prices averaged $18.10 per barrel during the first half of 2002.
The average price for the same period of 2001 was $22.58 per barrel. The
Company's average U.S. oil price decreased to $22.36 per barrel in 2002, down
from $25.97 per barrel in 2001. U.S. gas prices averaged $2.96 per MCF in 2002
compared to $5.70 per MCF in 2001.

Service fees of $97,000 for administering the Colombian assets were received in
2002 compared to $273,000 in 2001. The 2002 amount covered three months at an
average monthly rate of $46,000, whereas the 2001 amount covered six months,
three months at a monthly rate of $71,000 and three months at a monthly rate of
$46,000. These amounts are net of Aviva Overseas' 22.1196% (29.6196% after
August 14, 2001) share of the fees. The service contract was cancelled effective
March 31, 2002.

Operating costs decreased approximately 16%, or $117,000, 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.

DD&A increased by 13%, or $17,000, due to an increase in the U.S. DD&A rate per
barrel that resulted from a decrease in the U.S. proved reserves.

G&A expenses decreased $95,000, or 16%, primarily due to lower public ownership
costs, lower insurance costs, and an increase in the amount of G&A expense
capitalized for Colombian activities.

                                       13

<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 $629,000 and $1,010,000 at June 30, 2002 and
December 31, 2001, respectively, a portion of which is only available for
Colombian operations as discussed below. The decrease in cash and cash
equivalents resulted primarily from net cash used in operating activities
($330,000) and property additions ($55,000).

Net cash used in operating activities was ($330,000) in 2002, compared to
($152,000) 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 during
the first half of 2002. 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. Although such operator decided not to
participate in prospects located on Aviva's acreage, management of the Company
is continuing its efforts with 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 June 30, 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 June 30, 2002. Additional
expenditures will be required should Argosy decide to enter into the second
phase of the contract.

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 in Colombia and cash provided from Colombian 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

                                       14

<PAGE>

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.

The contract obligations of the Guayuyaco contract (signed August 2, 2002)
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 plans to involve industry and service company partners
to reduce the cost exposure of the first exploratory well. A letter of intent
has already been signed with Schlumberger Surenco, S.A. to participate, through
provision of services and materials, in the drilling of an exploratory well on
our Inchiyaco prospect (formerly Mary East). This well, the Inchiyaco #1, is
expected to be an 8,100 foot exploration test of the Villeta U, T, N and
Caballos sands in the Inchiyaco structure approximately 500 meters east of the
Mary field. Depending on definitive service agreements, rig availability and
other contingencies, drilling could commence as early as the fourth quarter of
2002.

Failure by Argosy to meet the obligations under the Guayuyaco contract will
result in the loss of the proposed contract terms. The existing Santana
production 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.

In order to accumulate the funds necessary to drill the Inchiyaco #1, management
of Argosy has decided to suspend cash distributions from Argosy to its partners
(including Aviva) beginning in June 2002. Accordingly, Aviva cannot expect to
receive cash distributions from Argosy during the foreseeable future. Even if
such an exploratory well were successful, additional funds may be required to
equip and complete such a well prior to the resumption of cash distributions.

As of June 30, 2002, approximately $261,000 of cash and cash equivalents
included in the Company's consolidated cash and cash equivalents balance was
held by Argosy and is not available to the Company for use outside of Colombia.
The remaining balance of $368,000 is under the direct control of Aviva and is
available for its U.S. operations. As indicated in note 5 to the condensed
consolidated financial statements, the U.S. operations have suffered a net
operating loss of approximately $423,000 for the six-month period ended June 30,
2002, and are expected to continue to have operating losses in the foreseeable
future. Although the Company is currently receiving a higher price ($25.02 per
barrel) for its Breton Sound oil production ($22.36 per barrel during the first
six months of 2002), it is unlikely that such improvement in price will result
in a significant improvement in the results of operations for the U.S.
Accordingly, if management is unable to successfully implement its plans as set
forth below or if distributions from Argosy do not resume, the Company's
liquidity will continue to deteriorate and at some point, possibly as early as
mid-2003, the Company may be unable to continue as a going concern.

In order to improve the Company's liquidity, management of the Company is
working to raise additional capital through equity issues, incurring debt or by
sales of assets. Although the ultimate outcome of these matters cannot be
projected with certainty, management believes that the Company's existing
capital resources plus the capital that management expects to raise, will be
adequate to fund the Company's current obligations. There can be no assurance,
however, that such attempts to raise additional capital will 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

                                       15

<PAGE>

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.

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 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
------------

    **99.1      Certification of Chief Executive Officer.
    **99.2      Certification of Chief Financial Officer.

    ----------
    **   Filed herewith

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 second quarter of 2002.

                                       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:  August 9, 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)

                                       18

<PAGE>

                                INDEX TO EXHIBITS

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

 **99.1      Certification of Chief Executive Officer.
 **99.2      Certification of Chief Financial Officer.

----------
 **   Filed herewith

                                       19