<PAGE>

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


                                   FORM 10-Q


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

           For the quarterly period ended     SEPTEMBER 30, 2001
                                          ---------------------------

                                       OR

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

                For the transition period from _______ to_____

                        Commission File Number  0-22258


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

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

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

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


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                                      Yes  X     No
                                                          ---       ---

Number of shares of Common Stock, no par value, outstanding at September 30,
2001, was 46,900,132.  On April 30, 2001, the Company discontinued trading of
the Depositary Shares, each of which represented five shares of Common Stock.
On May 16, 2001, the Common Stock resumed trading on the OTC Bulletin Board
under the symbol AVVP.
<PAGE>

PART I - FINANCIAL INFORMATION

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

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

<TABLE>
<CAPTION>
                                                               September 30,   December 31,
                                                                        2001           2000
                                                               -------------   ------------
<S>                                                            <C>             <C>
ASSETS

Current assets:
 Cash and cash equivalents                                          $    775       $    820
 Accounts receivable                                                     346            237
 Inventories                                                             222            161
 Prepaid expenses and other                                               62            187
                                                               -------------   ------------
   Total current assets                                                1,405          1,405
                                                               -------------   ------------

Property and equipment, at cost (notes 2 and 3):
 Oil and gas properties and equipment (full cost method)              20,304         16,414
 Other                                                                   335            333
                                                               -------------   ------------
                                                                      20,639         16,747
   Less accumulated depreciation, depletion
     and amortization                                                (19,861)       (15,791)
                                                               -------------   ------------
                                                                         778            956
Other assets                                                           1,032            950
                                                               -------------   ------------
                                                                    $  3,215       $  3,311
                                                               =============   ============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable                                                   $    601       $    945
 Accrued liabilities                                                     103            115
                                                               -------------   ------------
   Total current liabilities                                             704          1,060
                                                               -------------   ------------

Other liabilities                                                        409            375

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/*/                                              (37,953)       (38,179)
                                                               -------------   ------------
   Total stockholders' equity                                          2,102          1,876

Commitments and contingencies (note 4)
                                                               -------------   ------------
                                                                    $  3,215       $  3,311
                                                               =============   ============
</TABLE>

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

See accompanying notes to condensed consolidated financial statements.

                                       2
<PAGE>

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

<TABLE>
<CAPTION>
                                                             Three Months Ended               Nine Months Ended
                                                                September 30,                   September 30,
                                                              2001                2000            2001      2000
                                                            -------             -------         -------   -------
<S>                                                        <C>                 <C>             <C>        <C>
Revenue:
 Oil and gas sales                                          $   552             $   741         $ 1,727   $ 5,054
 Service fees                                                   102                 166             376       221
                                                            -------             -------         -------   -------
   Total revenue                                                654                 907           2,103     5,275
                                                            -------             -------         -------   -------

Expense:
 Production                                                     322                 430           1,037     1,984
 Depreciation, depletion and amortization                        64                  55             196       453
 General and administrative                                     251                 290             831       874
 Reorganization fees                                              -                  35               -        35
 Recovery of losses on accounts receivable                      (18)               (111)            (47)     (221)
                                                            -------             -------         -------   -------

   Total expense                                                619                 699           2,017     3,125
                                                            -------             -------         -------   -------

Other income (expense):
 Gain on transfer of partnership interests                        -                   -               -     3,452
 Interest and other income (expense), net                        26                  11             199       113
 Interest expense                                                (1)                (66)             (3)     (749)
                                                            -------             -------         -------   -------

   Total other income (expense)                                  25                 (55)            196     2,816
                                                            -------             -------         -------   -------

   Earnings before income taxes and
     extraordinary item                                          60                 153             282     4,966

Income taxes                                                     20                  19              56       212
                                                            -------             -------         -------   -------

   Earnings before extraordinary item                            40                 134             226     4,754

Extraordinary item - debt extinguishment, net
 of income taxes of $1,589                                        -                  (5)              -     3,084
                                                            -------             -------         -------   -------

   Net earnings                                             $    40             $   129         $   226   $ 7,838
                                                            =======             =======         =======   =======

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

Basic and diluted earnings (loss) per
 common share:
 Before extraordinary item                                  $   .00             $   .00         $   .00   $   .10
 Extraordinary item                                               -                (.00)              -       .07
                                                            -------             -------         -------   -------
 Net earnings                                               $   .00             $   .00         $   .00   $   .17
                                                            =======             =======         =======   =======
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>

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

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

                                                          2001      2000
                                                         -----   -------


<S>                                                      <C>     <C>
Net earnings                                             $ 226   $ 7,838
Adjustments to reconcile net earnings to net
 cash provided by (used in) operating activities:
 Depreciation, depletion and amortization                  196       453
 Gain on transfer of partnership interests                   -    (3,452)
 Gain on debt extinguishment                                 -    (3,084)
 Changes in working capital and other, net of effects
   of transfer of partnership interest                    (412)     (119)
                                                         -----   -------

   Net cash provided by operating activities
     before reorganization items                            10     1,636
   Net cash used by reorganization items -
     reorganization fees                                     -       (35)
                                                         -----   -------
   Net cash provided by operating activities                10     1,601
                                                         -----   -------

Cash flows from investing activities:
 Cash balances acquired (surrendered) in transfer of
   partnership interests                                    41    (1,393)
 Property and equipment expenditures                      (113)     (307)
 Proceeds from sale of assets                                4         -
                                                         -----   -------

   Net cash used in investing activities                   (68)   (1,700)
                                                         -----   -------

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


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

Net decrease in cash and cash equivalents                  (45)      (86)
Cash and cash equivalents at beginning of the period       820       846
                                                         -----   -------

Cash and cash equivalents at end of the period           $ 775   $   760
                                                         =====   =======
</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, 2000     46,900,132  $2,345     $37,710     $(38,179)         $1,876

Net earnings                               -       -           -          226             226
                                  ----------  ------  ----------     --------          ------

Balances at September 30, 2001    46,900,132  $2,345     $37,710     $(37,953)         $2,102
                                  ==========  ======  ==========     ========          ======
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       5
<PAGE>

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

1.   General

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

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

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 $46,000 for the nine months ended September 30, 2001 and
     $46,000 for the nine months ended September 30, 2000.

     Unevaluated oil and gas properties totaling $303,000 and $272,000 at
     September 30, 2001 and December 31, 2000, respectively, have been excluded
     from costs subject to depletion. The Company capitalized interest costs of
     $37,000 for the nine-month period ended September 30, 2000 on these
     properties.

                                       6
<PAGE>

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

4.   Commitments and Contingencies

     The Company is engaged in ongoing operations on the Santana contract in
     Colombia. The contract obligations have been met; however, the Company
     plans to recomplete certain existing wells and engage in various other
     projects. The Company's current share of the estimated future costs of
     these activities is approximately $0.3 million at September 30, 2001. Any
     substantial increase in the amount of the above referenced expenditures
     could adversely affect the Company's ability to meet these obligations.

     The Company expects to fund these activities using existing cash and cash
     provided from operations. Risks that could adversely affect funding of such
     activities include, among others, delays in obtaining any required
     environmental approvals and 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 cash flow
     projections may be required. Failure to fund certain expenditures could
     result in a decrease in the Company's ownership interest in Argosy.

     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 Argosy'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

                                       7
<PAGE>

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

     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.

5.   Segment Information

     The following is a summary of segment information of the Company as of and
     for the nine-month periods ended September 30, 2001 and 2000 (in
     thousands):

<TABLE>
<CAPTION>
                                                   United
                                                   States     Colombia    Total
                                                   -------    --------   -------
<S>                                             <C>          <C>         <C>
     2001
     ----
     Revenue:
       Oil and gas sales                            $  739     $  988     $1,727
       Service fees                                    376          -        376
                                                    ------     ------     ------
                                                     1,115        988      2,103
                                                    ------     ------     ------

     Expense:
       Production                                      602        435      1,037
       Depreciation, depletion and amortization        105         91        196
       General and administrative                      755         76        831
       Recovery of losses on accounts receivable       (47)         -        (47)
                                                    ------     ------     ------
                                                     1,415        602      2,017
                                                    ------     ------     ------

     Interest and other income (expense), net           46        153        199
     Interest expense                                   (3)         -         (3)
                                                    ------     ------     ------

     Earnings (loss) before income taxes              (257)       539        282

     Income taxes                                        -         56         56
                                                    ------     ------     ------

     Net earnings (loss)                            $ (257)    $  483     $  226
                                                    ======     ======     ======

     Total assets                                   $1,693     $1,522     $3,215
                                                    ======     ======     ======
</TABLE>

                                       8
<PAGE>

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

<TABLE>
<CAPTION>
                                                    United
                                                    States   Colombia    Total
                                                    -------  ---------  -------
<S>                                                 <C>      <C>        <C>
     2000
     ----
     Revenue:
       Oil and gas sales                            $1,177     $3,877   $5,054
       Service fees                                    221          -      221
                                                    ------     ------   ------
                                                     1,398      3,877    5,275
                                                    ------     ------   ------

     Expense:
       Production                                      853      1,131    1,984
       Depreciation, depletion and amortization         94        359      453
       General and administrative                      825         49      874
       Reorganization fees                              35          -       35
       Recovery of losses on accounts receivable      (221)         -     (221)
                                                    ------     ------   ------
                                                     1,586      1,539    3,125
                                                    ------     ------   ------

     Gain on transfer of partnership interests           -      3,452    3,452
     Interest and other income (expense), net           (1)       114      113
     Interest expense                                 (185)      (564)    (749)
                                                    ------     ------   ------

     Earnings (loss) before income taxes and
       extraordinary item                             (374)     5,340    4,966

     Income taxes                                        -        212      212
                                                    ------     ------   ------

     Earnings (loss) before extraordinary
       item                                           (374)     5,128    4,754

     Extraordinary item - debt
       extinguishment                                    -      3,084    3,084
                                                    ------     ------   ------

     Net earnings (loss)                            $ (374)    $8,212   $7,838
                                                    ======     ======   ======

     Total assets                                   $2,409     $1,788   $4,197
                                                    ======     ======   ======
</TABLE>

                                       9
<PAGE>

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

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

Three Months Ended September 30, 2001 compared to Three Months Ended September
------------------------------------------------------------------------------
30, 2000
--------

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

       Revenue - 2000             $ 357   $27       $357   $ 741

       Volume variance             (143)   (1)        92     (52)
       Price variance               (39)   (8)       (90)   (137)
                                  -----   ---       ----   -----

       Revenue - 2001             $ 175   $18       $359   $ 552
                                  =====   ===       ====   =====
</TABLE>

Colombian oil volumes were 16,000 barrels in the third quarter of 2001, an
increase of 3,000 barrels as compared to the third quarter of 2000.  Such
increase is mainly due to 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 included elsewhere herein).

U.S. oil volumes were 7,000 barrels in 2001, down approximately 5,000 barrels
from 2000.  Such decrease is primarily due to the relinquishment of Main Pass 41
effective November 7, 2000.  U.S. gas volumes were 6,000 thousand cubic feet
(MCF) in 2001, approximately the same as in 2000.

Colombian oil prices averaged $22.40 per barrel during the third quarter of
2001. The average price for the same period of 2000 was $27.63 per barrel.  The
Company's average U.S. oil price decreased to $24.72 per barrel in 2001, down
from $30.26 per barrel in 2000.  U.S. gas prices averaged $3.04 per MCF in 2001
compared to $4.43 per MCF in 2000.

Service fees of $102,000 for administering the Colombian assets were received in
2001 compared to $166,000 in 2000.  The 2001 amount covers three months at a
monthly rate of $46,000.  The 2000 amount covers three months at a monthly rate
of $71,000.  The recorded amounts are net of Aviva Overseas' 22.1196% (29.6196%
after August 14, 2001) share of the fees.

Operating costs decreased approximately 25%, or $108,000, primarily as a result
of the relinquishment of Main Pass 41 effective November 7, 2000.

General and administration ("G&A") expenses decreased $39,000 or 13% primarily
as a result of lower public ownership costs and lower legal fees.

Interest expense decreased $65,000 in 2001 due to the extinguishment of the
Company's long-term debt in 2000.

                                       10
<PAGE>

Nine Months Ended September 30, 2001 compared to Nine Months Ended September 30,
--------------------------------------------------------------------------------
2000
----

<TABLE>
<CAPTION>

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

       Revenue - 2000            $1,106   $71    $ 3,877   $ 5,054

       Volume variance             (383)   (8)    (2,670)   (3,061)
       Price variance               (70)   23       (219)     (266)
                                 ------   ---    -------   -------

       Revenue - 2001            $  653   $86    $   988   $ 1,727
                                 ======   ===    =======   =======
</TABLE>

Colombian oil volumes were 44,000 barrels in the first nine months of 2001, a
decrease of 99,000 barrels as compared to the first nine months of 2000.  Such
decrease is due to an 84,000 barrel decrease resulting from the transfer of
partnership interests to Crosby on June 8, 2000 and a 17,000 barrel decrease
resulting from production declines, partially offset by a 2,000 barrel increase
due to the transfer of a 7.5% partnership interest to Aviva from Crosby on
August 14, 2001 (see note 2 to the condensed consolidated financial statements
included elsewhere herein).

U.S. oil volumes were 25,000 barrels in 2001, down approximately 14,000 barrels
from 2000.  Such decrease is primarily due to the relinquishment of Main Pass 41
effective November 7, 2000.  U.S. gas volumes were 18,000 MCF in 2001, down
1,000 MCF from 2000. Such decrease is due to the relinquishment of Main Pass 41
effective November 7, 2000.

Colombian oil prices averaged $22.52 per barrel during the first nine months of
2001.  The average price for the same period of 2000 was $27.06 per barrel.  The
Company's average U.S. oil price decreased to $25.63 per barrel in 2001, down
from $28.38 per barrel in 2000.  U.S. gas prices averaged $4.81 per MCF in 2001
compared to $3.49 per MCF in 2000.

Service fees of $376,000 for administering the Colombian assets were received in
2001 compared to $221,000 in 2000.  The 2001 amount covers nine months, whereas
the 2000 amount covers only four months.  These amounts are net of Aviva
Overseas' 22.1196% (29.6196% after August 14, 2001) share of the fees.

Operating costs decreased approximately 48%, or $947,000, primarily as a result
of the transfer of partnership interests to Crosby.

Depreciation, depletion and amortization decreased by 57%, or $257,000,
primarily as a result of the transfer of partnership interests to Crosby and a
decrease in the amount of oil produced.

G&A expenses decreased $43,000 or 5% primarily as a result of lower state
franchise taxes and lower legal fees.

During 2000, in connection with the restructuring of the Company's long term
debt, the Company realized a $3,452,000 gain on the transfer of partnership
interests to Crosby and an extraordinary gain of $3,084,000, net of income taxes
of $1,589,000, on the extinguishment of a portion of the debt.  There were no
similar gains during 2001.

Interest expense decreased $746,000 in 2001 due to the extinguishment of the
Company's long-term debt in 2000.

                                       11
<PAGE>

Income taxes were $156,000 lower in 2001 principally as a result of the transfer
of partnership interests to Crosby.

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

In July 2001 the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 141 "Business Combinations" and
SFAS No. 142 "Goodwill and Other Intangible Assets." SFAS No. 141 requires that
all business combinations initiated after June 30, 2001 be accounted for under
the purchase method, and SFAS No. 142 requires that goodwill no longer be
amortized to earnings, but instead be reviewed for impairment. As of September
30, 2001 there is no impact on the Company's financial statements as we have not
entered into any business combinations and have not acquired goodwill.

Also, the FASB issued 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 with earlier application encouraged. The Company is
currently assessing the impact on its financial statements.

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

Cash and cash equivalents totaled $775,000 and $820,000 at September 30, 2001
and December 31, 2000, respectively.  The decrease in cash and cash equivalents
resulted primarily from net cash used in investing activities ($68,000)
partially offset by net cash provided by operating activities ($10,000) and
effect of exchange rate changes on cash ($13,000).

Net cash used in investing activities was $68,000 in 2001.  This decrease
resulted primarily from property and equipment expenditures of $113,000
resulting principally from the acquisition of additional interests in the
company's Breton Sound leases.

The Company plans to recomplete certain existing wells and engage in various
other projects in Colombia.  The Company's current share of the estimated future
costs of these development activities is approximately $0.3 million at September
30, 2001.  Any substantial increase in the amount of the above referenced
expenditures could adversely affect the Company's ability to meet these
obligations.

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

                                       12
<PAGE>

result in a decrease in the Company's ownership interest in Argosy. The outcome
of these matters cannot be projected with certainty.

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, the assessment of geological and geophysical
data, 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.



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 third quarter of 2001.

                                       13
<PAGE>

                                  SIGNATURES
                                  ----------

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

                                    AVIVA PETROLEUM INC.



Date:  November 13, 2001            /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)

                                       14
<PAGE>

                               INDEX TO EXHIBITS

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

None

                                       15