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

                                FORM 10-QSB

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

       For the quarterly period ended        September 30, 1996   

                                    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  0-8609

                     Future Petroleum Corporation     
    (Exact name of small business issuer as specified in charter)

         Utah                                      87-0239185    


(State or other jurisdiction of              (I.R.S. Employer 
incorporation or organization)               Identification No.) 

    
2351 West Northwest Highway, Suite 2130, Dallas, Texas     75220 
(Address of principal executive offices)               (Zip Code)
                                               
Registrant's telephone number, including area code:214/350-7602

       Check whether the issuer (1) filed all reports required to
be filed by section 13 or 15(d) of the Securities Exchange Act of
1934 during the past 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   [ ]

                   APPLICABLE ONLY TO CORPORATE ISSUERS:

       The Company had approximately 3,486,779 shares of common
stock, par value $0.01 per share, issued and outstanding as of
November 14, 1996.

Transitional Small Business Disclosure Format (Check One):      
Yes [ ]           No  [X] 

<PAGE>


                                  PART I
                           FINANCIAL INFORMATION


                       ITEM 1. FINANCIAL STATEMENTS





       The condensed consolidated financial statements 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.  However, in the opinion of
management, all adjustments (which consist only of normal recurring
adjustments) necessary to present fairly the financial position and results
of operations for the periods presented have been made.  These condensed
consolidated financial statements should be read in conjunction with
financial statements and the notes thereto included in the Company's Form
10-KSB filing for the year ended December 31, 1995.
<TABLE>
                                FUTURE PETROLEUM CORPORATION

                                Balance Sheets
                                SEPTEMBER 30, 1996

                                 ASSETS

<S>                                                    <C>
CURRENT ASSETS:
      Cash and interest-bearing deposits             $  122,949
     Current portion of notes receivable             $  101,404
     Trade accounts receivable:
     Joint interest billings                             93,152
     Accrued oil and gas sales                          146,843
                                                       _________
              Total Current Assets                      464,348

PROPERTY AND EQUIPMENT:
     Proved oil and gas properties, using 
     the full cost method of accounting                 239,781 
     Other                                               49,024
                                                       _________
                                                        288,805

     Less accumulated depletion, depreciation, 
     amortization and impairment                        (78,095)
                                                       _________
              Net Property and Equipment                210,710

OTHER ASSETS:
     Investment in partnership                        		732,687
     Mining properties held for sale                     39,977
     Other                                                1,306
                                                       _________
              TOTAL OTHER ASSETS                        773,970

TOTAL ASSETS                                        $ 1,449,028
</TABLE>
<PAGE>
<TABLE>
                                FUTURE PETROLEUM CORPORATION

                                Balance Sheets
                                SEPTEMBER 30, 1996

                             LIABILITIES AND STOCKHOLDERS' EQUITY

<S>                                                     <C>
CURRENT LIABILITIES:
     Trade accounts payable                         $   182,620
     Advances from shareholder                            6,000
     Accrued oil and gas proceeds payable               196,837
                                                       __________
              Total Current Liabilities                 385,458

DEFERRED GAIN ON SALE                                    13,777

LONG TERM NOTES PAYABLE                                  29,982

STOCKHOLDERS' EQUITY:
     Preferred stock, $.01 par value, 200,000 shares 
     authorized, no shares issued                           --
     Common stock, $.01 par value, 30,000,000 
     shares authorized, shares issued and 
     outstanding; 3,486,779 at September 30, 1996 and 
     3,376,903 at September 30, 1995                     34,868
     Additional paid-in capital                       1,031,209
     Accumulated deficit                                (46,266)
                                                       __________
              Total Stockholders' Equity              1,019,811

Total Liabilities and Stockholders' Equity          $ 1,449,028
</TABLE>
<PAGE>
<TABLE>
                                FUTURE PETROLEUM CORPORATION

                   Statement of Operations and Accumulated Deficit

                                               Three Months Ended
                                                    September 30,
                                             ____________________
                                               1996        1995
                                             ____________________
<S>                                            <C>         <C>
REVENUES:
     Oil and gas sales                   $    14,200 $    37,475
     Well operation fees                      43,704      10,197
     Other                                     1,685      34,847
                                            ____________________
              Total Revenues                  59,589      82,519

COSTS AND EXPENSES:
     Lease operations and production taxes    32,003      34,165
     General and administrative               24,121      43,264
     Depletion, depreciation and 
     amortization                              3,238      10,346
     Interest                                    648        --
                                             ___________________
              Total Expenses                  60,010      87,775

OTHER INCOME:                                
     Gain on sale of assets                   30,095      28,702
     Income from equity investment             5,333        --
     Interest income                           1,452      11,598
                                             ___________________
           Total Other Income                 36,880      40,300
                                             
NET INCOME                                    36,459      35,044

BEGINNING ACCUMULATED DEFICIT                (82,725)   (204,879)
                                             ___________________ 
ENDING ACCUMULATED DEFICIT                 $ (46,266) $ (169,835)


NET INCOME PER COMMON SHARE               $     0.01  $     0.01

WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING                         3,487,000   3,377,000
</TABLE>
<PAGE>
<TABLE>

                                FUTURE PETROLEUM CORPORATION

                                Statements of Cash Flows

                                               Nine Months Ended
                                                 September 30,
                                             ___________________ 
                                               1996        1995
                                             ____________________
<S>                                             <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITES:
     Net Income                          $    125,301 $   59,481
     Adjustments to reconcile to net 
     cash used in continuing operations:
     Depreciation, depletion, and amortization  9,739     31,037
     Gain on sale of assets                  (101,803)   (59,671)
     Decrease (increase) in receivables      (112,310)     1,612
     (Decrease) increase in accounts payable
     and accrued expenses                      76,126    (17,733)
     Other assets                               --          (702)
     Current notes receivable                 264,997    162,503
                                             ____________________

          Net cash provided by (used in)
          operations                          262,051    176,527 

CASH FLOWS FROM INVESTING ACTIVITIES:
     Additions to property and equipment     (135,577)  (221,528)
     Distribution from partnerships            20,945       --
     Proceeds from sale of oil and gas             
     and mining properties                      4,100       --
                                             ____________________
          Net cash provided by (used in)    
          investing activities               (110,533)   (221,528)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from sale of stock               14,550       --
     Collection of notes receivable            (9,485)      --
     Additions to long-term debt                 --	     	45,000
                                              -------------------
     Net cash provided by financing           
     activities                                 5,065     45,000
                                             ____________________

NET INCREASE (DECREASE) IN CASH               156,582     --
     AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS, beginning of
     period                               $   (33,634)  $ --

CASH AND CASH EQUIVALENTS, end of period  $   122,949   $ --
</TABLE>
<PAGE>
                   ITEM 2. MANAGEMENT'S DISCUSSION AND 
                      ANALYSIS OR PLAN OF OPERATIONS

General

Prior to August 1993, the Company was engaged primarily in the business of 
mining for gold, silver, lead, zinc and gypsum and held several mining 
properties.  In August 1993, the Company acquired all of the issued and 
outstanding stock of Future Petroleum Corporation ("Future"), which was 
engaged in the acquisition and production of oil and gas reserves.  
Management of the Company has determined to dispose of most of its mining 
properties and concentrate on the oil and gas business previously conducted by
Future.  The historical financial statements are those of Future combined with
Intermountain beginning in August 1993.
	
During 1995 the Company concentrated on acquiring oil and gas leases and 
performing seismic surveys and geological evaluations covering acreage that
was to be acquired or contributed to Future Acquisition 1995, Ltd.
	
Geological evaluations were performed on the Azalea Field in anticipation of
drilling two wells.  These wells have been drilled as of May 14, 1996, and 
now have been completed in the Grayburg and San Andres Formations as producers.

Strategic Developments

In December 1995, the Company's subsidiary Future Petroleum Corporation, a 
Texas corporation ("Future-Texas"), contributed a substantial portion of its
oil and gas properties to Future Acquisition 1995, Ltd., a limited 
partnership in which Future-Texas is the general partner.  The partnership 
has two limited partners, which contributed cash to the partnership to be 
used in the acquisition and development of oil and gas properties.  Revenues,
costs and expenses are generally allocated 15% to the general partner and 85%
to the limited partners until the limited partners have recovered their 
investment and a 20% return as defined in the agreement.  After that point, the
general partner is allocated 75% of revenues, costs and expenses.  Certain
acquisition and development costs are allocated 100% to the limited partners.
As operator of the properties the general partner is entitled to receive copas
overhead charges which will generate income to the general partner in addition
to the 15% of revenues reserved until the 20% rate of return has been generated
to the limited partners, at which time the general partner will be allocated
75% of revenues.

Business Strategy
	
Operating Strategy.  The Company's business strategy is to increase 
its proved producing reserves by continuing its drilling activities in Texas
and Oklahoma and by pursuing acquisitions of proved oil and gas properties,
either in the form of asset purchases or mergers with other companies.  The 
Company will focus on producing properties with additional development
potential to augment existing production while also expanding and 
diversifying its reserve base.  Acquisition criteria will include reserve life,
development opportunity, profit enhancement potential, geographic
concentration and ownership levels permitting operation of acquired
properties.  Under this strategy, the Company will initially seek to increase
its concentration in Texas and eventually diversify its interests outside
this core area.  As of the date of this Report, the Company has no
acquisition commitments but has implemented an active program
for ongoing evaluation of opportunities meeting its acquisition
criteria.

Because of the nature of the Company's business, the results of
operations for any interim period are not necessarily indicative of the
results of operations that may be expected for an entire fiscal year.

Financial Condition

Liquidity and Capital Resources

General. The Company incurred consolidated net income of 
$36,459, and of $35,044, for the three months ended September 30, 1996 and 
1995, respectively.  At September 30, 1996, the Company had  working 
capital of approximately $65,112, which was a $118,721 reduction from 
the $183,833 working capital that the Company had as of September 30, 1995.
This reduction in working capital was due primarily to the contribution 
of oil and gas properties to Future Acquisition 1995, Ltd., which the 
Company's subsidiary Future-Texas 

The Company requires capital to continue with its acquisition 
of producing oil and gas properties and drilling prospects as well as to 
complete drilling on existing properties and to earn an interest in 
prospects developed by others under standard industry farmout 
arrangements.  The Company has established a financial relationship 
through the limited partnership it has formed through its subsidiary 
Future-Texas.  The Company believes that through the limited partnership 
it now has the ability to acquire producing oil and gas properties as well
as fund development drilling and uphole recompletions as required.

The Company anticipates completing a drilling prospect and/or 
other explorations during the next 12 months as well as acquiring 
additional producing oil and gas properties.  The Company believes that 
these projects will be funded through the limited partnership it has formed 
through its subsidiary Future-Texas. This included 2D seismic acquisition 
on the Price Ranch Prospect in anticipation of the drilling of the Marty A-1 
well which has been drilled and completed in the Brown Dolomite Formation.
The well is waiting on pipeline connection.  The Company has also 
completed the drilling of two development wells that have been
completed as producers in the Grayburg and the San Andres formations in
the Azalea Field, located in Midland County, Texas.  The Company is 
currently preparing to drill three (3) additional well in the Azalea Field.

During the three months ended September 30, 1996, operating activities 
required net cash of approximately $56,771 which, when offset by non-cash 
expenses for depreciation, depletion, and amortization, increases in accounts 
payable and increases in receivables, resulted in net income of approximately 
$36,459 for the period.  In the same period during 1995, operations required
 net cash of approximately $77,000, which resulted in a net profit from 
operations of $35,044.  Investing activities required approximately $14,000
and required $112,000 for the three month period ended September 30, 1996,
and 1995, respectively.


Results of Operations

Total revenues for the nine months ended September 30, 1996, increased 
8% over revenues for the preceding year, and well operation fees increased by 
340% and other income increased by $24,904.

Lease operations and production expenses were lower for the nine months 
interim period ended September 30, 1996, as compared to the corresponding period
a year earlier.  General and administrative expenses decreased by 5% in the nine
month interim period during 1996, as compared to a year earlier as a result of
the Company's cost cutting efforts.  



<PAGE>

                                  PART II
                             OTHER INFORMATION

                 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K


a.            Exhibits.

None.

b.            Reports on Form 8-K.

None.

During the quarter ended September 30, 1996, the Company did not file
any report on Form 8-K.
<PAGE>


                                SIGNATURES


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

              FUTURE PETROLEUM CORPORATION
              Registrant                                         


Dated: November 14, 1996      By: /s/ B. Carl Price               

                               B. Carl Price, President,
                               Principal Financial and Accounting Officer
                               (Signature)

Dated:  November 14, 1996      By: /s/ Christine J. Sirera              

                               Christine J. Sirera
                               Secretary
                               (Signature)