SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                   FORM 10QSB


                  Quarterly Report under Section 13 or 15(d) of
                       the Securities Exchange Act of 1934


For Quarter Ended                                    Commission File Number
------------------                                   ----------------------
June 30, 1998                                              33-28188


                     THE OHIO & SOUTHWESTERN ENERGY COMPANY
             (Exact name of registrant as specified in its charter)


             Colorado                                    84-1116458
    ------------------------                             -------------------
    (State of incorporation)                             (I.R.S. Employer
                                                         Identification No.)

           #450-650 W. Georgia Street, Vancouver, B.C. Canada V6B 4N8
          -------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (605) 684-8662


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 the  filing
requirements for at least the past 90 days.

                                 Yes  X       No      

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

                   9,116,695 common shares as of June 30, 1998


<PAGE>


Part I:  FINANCIAL INFORMATION
<TABLE>
<CAPTION>

                                      THE OHIO & SOUTHWESTERN ENERGY COMPANY
                                           (A Development Stage Company)


                                                  BALANCE  SHEETS  (Stated in US
                                              Dollars) (Unaudited--See Note 1)


                                                      ASSETS
                                                                June 30,                  December 31,
                                                                1998                      1997

                                                                 <S>                      <C>
Current

 Cash                                                            $212                      $212
                                                           -----------------------------------------------------------

                                                                 $212                      $212
                                                           ===========================================================

                                                       LIABILITIES

Current

  Accounts payable                                                -                     $11,069
                                                           -----------------------------------------------------------

                                                  STOCKHOLDERS' EQUITY

Preferred stock, no par value,
100,000,000 shares authorized,
none issued

Common stock, $0.01 par value
100,000,000 shares authorized;
9,116,695 issued & outstanding                               112,530                    105,530

Contributed capital                                           25,442                     25,442

Deficit accumulated during the
development stage                                          (137,760)                  (141,829)
                                                           -----------------------------------------------------------

                                                                 212                   (10,857)
                                                           -----------------------------------------------------------

                                                                $212                       $212
                                                           ===========================================================
</TABLE>



                                              SEE ACCOMPANYING NOTES
                                                        F-1


<PAGE>

<TABLE>
<CAPTION>


                                      THE OHIO & SOUTHWESTERN ENERGY COMPANY
                                           (A Development Stage Company)

                                              STATEMENT OF OPERATIONS
                         for the three and six month periods ended June 30, 1998 and 1997
                                              (Stated in US Dollars)
                                             (Unaudited - See Note 1)



                                                     Three months ending             Six months ending               Cumulative
                                                         June 30                         June 30,                    from Feb.
                                                     1998        1997                1998              1997          28, 1989
                                                     ----        ----                ----              ----          (Date of
                                                                                                                     Inception)
                                                                                                                     to June 30,
                                                                                                                       1998
                                                                                                                       ----
                                                     <S>             <C>           <C>                    <C>        <C>

Expenses

 Amortization                                            $-          $-                 $-                $-             $750

 General & Admin
Expenses                                                  -           -              4,395                 -           76,358

 Management fees                                     $7,000          $-             $7,000                $-            7,000
                                            -----------------------------------------------------------------------------------

Loss before the following:                         ($7,000)           -           (11,395)                 -         (84,108)
Unauthorized distribution                                 -           -                  -                 -         (69,116)
Gain on Settlement of debt                           15,464           -             15,464                 -           15,464
                                            -----------------------------------------------------------------------------------

Net income (loss) for the
period                                                8,464           -              4,069                 -        (137,760)
                                            ===================================================================================

Net income per share                                      -           -                  -                 -
                                            ===================================================================================

Weighted average number of
common shares outstanding                         8,501,310     116,666          5,344,473             116,666
                                            ===================================================================================
</TABLE>


                                              SEE ACCOMPANYING NOTES
                                                        F-2


<PAGE>

<TABLE>
<CAPTION>


                                               THE OHIO & SOUTHWESTERN ENERGY COMPANY
                                                    (A Development Stage Company)
                                       STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
                             for the period from February 28, 1989 (Date of Inception)t o June 30, 1998
                                                       (Stated in US Dollars)
                                                      (Unaudited - See Note 1)


                                                                                                    Deficit
                                                                                                  Accumulated
                                                                                                   During the
                                                    Common   Stock             Contributed        Development
                                               Shares            Amount          Capital             Stage            Total
                                         ------------------------------------------------------------------------------------
<S>                                            <C>              <C>                      <C>         <C>            <C>
Balance, February 28, 1989                          -       $        -           $       -        $       -         $     -
Issuance of stock to
insiders on March 7, 1989
- at $0.30 per share                           33,347           10,000                   -                -          10,000
                                         ------------------------------------------------------------------------------------

Balance, December 31, 1989                     33,347           10,000                   -                -          10,000
Issuance of stock during
Public offering for $3.00
per share, net of offering
costs of $27,270                               33,348           72,730                   -                -          72,730
Net loss                                            -                -                   -         (84,159)        (84,159)
                                         ------------------------------------------------------------------------------------

Balance, December 31, 1990                     66,695           82,730                   -          (84,159)        (1,429)
Net loss                                            -                -                   -           (3,416)        (3,416)
                                         ------------------------------------------------------------------------------------

Balance, December 31, 1991                     66,695           82,730                   -          (85,575)        (4,845)
Net loss                                            -                -                   -           (2,713)        (2,713)
                                         ------------------------------------------------------------------------------------

Balance, December 31, 1992                     66,695           82,730                   -          (90,288)        (7,558)
Net loss                                            -                -                   -           (1,614)        (1,614)
                                         ------------------------------------------------------------------------------------

Balance, December 31, 1993                     66,695           82,730                   -          (91,902)        (9,172)
Net loss                                            -                -                   -           (1,863)        (1,863)
                                         ------------------------------------------------------------------------------------

Balance, December 31, 1994                     66,695           82,730                   -          (93,765)       (11,035)

</TABLE>

                             SEE ACCOMPANYING NOTES
                                       F-3


<PAGE>

<TABLE>
<CAPTION>


                                               THE OHIO & SOUTHWESTERN ENERGY COMPANY            Continued
                                                    (A Development Stage Company)
                                       STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
                             for the period from February 28, 1989 (Date of Inception)t o June 30, 1998
                                                       (Stated in US Dollars)
                                                      (Unaudited - See Note 1)


                                                                                                 Deficit
                                                                                               Accumulated
                                                                                                During the
                                                      Common   Stock             Contrib       Development
                                                  Shares          Amount         -uted            Stage             Total
                                                                                 Capital
                                        ---------------------------------------------------------------------------------------
<S>                                             <C>                <C>           <C>            <C>                 <C>
Issuances of stock for services                 50,000         $    1,500      $      -        $       -         $     1,500
rendered at - $0.30 per share
Contributed capital
Net loss                                             -                  -        24,842                -              24,842
                                                     -                  -             -         (16,735)            (16,735)
                                        ---------------------------------------------------------------------------------------

Balance, December 31, 1995 Net                 116,695             84,230        24,842        (110,500)             (1,428)
loss                                                 -                  -             -          (9,068)             (9,068)
                                        ---------------------------------------------------------------------------------------

Balance, December 31, 1996                     116,895             84,230        24,842        (119,568)            (10,496)
Issuance of share for cash                   2,000,000             21,300             -                -              21,300
Contributed capital                                  -                  -           600                -                 600
Net loss                                             -                  -             -         (22,261)            (22,261)
                                        ---------------------------------------------------------------------------------------

Balance, December 31, 1997                   2,116,695            105,530        25,442        (141,829)            (10,857)
Issuance of shares for
Services rendered at $.001 per                                                                                 
share                                        7,000,000              7,000             -                -               7,000
Net income to 6/30/98                                -                  -             -            4,069               4,069
                                        ---------------------------------------------------------------------------------------

Balance, June 30, 1998                       9,116,695            112,530        25,442        (137,760)                 212
                                        =======================================================================================
</TABLE>


                                              SEE ACCOMPANYING NOTES
                                                        F-4


<PAGE>

<TABLE>
<CAPTION>


                                      THE OHIO & SOUTHWESTERN ENERGY COMPANY
                                           (A Development Stage Company)
                                              STATEMENT OF CASH FLOWS
                                  for the six months ended June 30, 1998 and 1997
                            and February 28, 1989 (Date of Inception) to June 30, 1998
                                              (Stated in US Dollars)
                                             (Unaudited - See Note 1)

                                                 Six months ended

                                             June 30, 1998       June 30, 1997           Cumulative
                                                                                         for February
                                                                                         28, 1989
                                                                                         (Date of
                                                                                         Inception) to
                                                                                         June 30, 1998
                                       --------------------------------------------------------------------
<S>                                            <C>                   <C>                    <C>
Cash flow to operating activities:
Net gain (loss)                                 $ 4,069            $ (6,046)              $ (137,760)

Adjustments to reconcile net
loss to net cash used in
operations
Accounts payable                               (15,464)                    -                  (2,895)
Management fees                                   7,000                    -                    7,000
Amortization                                          -                    -                      750
Changes in non-cash items:
Accounts payable                                  4,395                6,064                    4,395
                                       --------------------------------------------------------------------

Net cash used in operating
activities                                            -                    -                (128,510)
                                       --------------------------------------------------------------------

Cash flows to investing
activities                                            -                    -                    (750)
Organization costs
                                       --------------------------------------------------------------------

Net cash used in investing
activities:                                           -                    -                    (750)
                                       --------------------------------------------------------------------
Cash flows to financing
activities:
Proceeds from issuance of
common stock                                          -                    -                  131,300
Payment of offering costs                             -                    -                 (27,270)
Contributed capital                                   -                    -                   25,442
                                       --------------------------------------------------------------------

Net cash provided by
financing activities                                  -                    -                  129,472
                                       --------------------------------------------------------------------

Net increase in cash                                  -                    -                      212

Cash, beginning of period                           212                    -                        -
                                       --------------------------------------------------------------------

Cash, end of period                                $212                   $-                     $212
                                       ====================================================================

</TABLE>

                                                       SEE ACCOMPANYING NOTES
                                                                 F-5


<PAGE>



                                      THE OHIO & SOUTHWESTERN ENERGY COMPANY
                                           (A Development Stage Company)
                                           NOTES TO FINANCIAL STATEMENTS
                                                   June 30, 1998
                                              (Stated in US Dollars)
                                              (Unaudited-See Note 1)

NOTE 1 - INTERIM REPORTING

These  financial  statements  have not been  auditied or reviewed  and have been
prepared  on  a  compilation  basis  only.  Readers  are  cautioned  that  these
statements  may not be appropriate  for their  purposes.  While the  information
presented  in  the  accompanying  interim  six  month  financial  statements  is
unaudited,  it includes all adjustments which are, in the opinion of management,
necessary to present fairly the financial  position,  result of operations,  and
changes in cash flows for the interim  period  presented.  It is suggested  that
these  financial  statements be read in  conjunction  with the December 31, 1997
audited financial statements and notes thereon.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

History

Jefferson Capital  Corporation (the Company),  a development stage company,  was
organized  under the laws of the State of  Colorado on February  28,  1989.  The
Company is in the  development  stage as defined in  Financial  Standards  Board
Statement No. 7.

Effective June 13, 1990, the Company entered into a merger agreement with Ohio &
Southwestern  Energy Company (OSEC). The Company issued 80,000,000 shares of its
common stock in exchange for all of the  outstanding  shares of OSEC.  After the
exchange of shares, OSEC's sole shareholder,  Members Service Corporation (MSC),
owned 80% of the Company's issued and outstanding  common stock. The name of the
surviving corporation became Ohio & Southwestern Energy Company (OSEC).

The minority  shareholders  filed a complaint during April,  1991 alleging among
other  things  that the  majority  shareholder,  MSC,  failed  to  disclose  the
distribution  of corporate  funds,  failed to account for the  operations of the
corporation and transferred  assets of the  corporation  without  stockholder or
board meetings.

On  August  28,  1991,  a  Receiver  was  appointed  and the court  ordered  the
80,000,000  shares of common stock issued to MSC to be canceled.  On January 12,
1995,  the  minority   shareholders  filed  a  motion  for  supplemental  orders
requesting that the merger between  Jefferson  Capital  Corporation and Ohio and
Southwestern  Energy  Company be declared  null and void and a bar date of April
15, 1995, be set within which any and all creditors must file a claim.



<PAGE>



On May 23, 1995, the Receiver  issued his final report stating that no claims of
creditors had been filed by the bar date. The Receiver incurred $36,395 in costs
during  receivership.  Certain of the costs had been advanced by the Receiver in
the anticipation of issuance of shares of common stock by the Board of Directors
after the dismissal of the Receivership.

On June 21,  1995,  the Court  ordered  the merger null and void,  approved  the
Receiver's  final  report and  restored  the name of the  Company  to  Jefferson
Capital Corporation.

Going Concern

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of  liabilities  in  the  normal  course  of  business.  The  Company  is in the
development stage and has not earned any revenues from operations.

The Company is currently devoting its efforts to locating merger candidates. The
Company's  ability to continue as a going concern is dependent  upon its ability
to  develop  additional  sources  of  capital,  locate  a merger  candidate  and
ultimately,   achieve  profitable  operations.   The  accompanying  consolidated
financial  statements do not include any adjustments  that might result from the
outcome of these uncertainties.

Organization Costs

Organization  costs  are  being  amortized  over a  60-month  period  using  the
straight-line method.

Income (Loss) Per Share

Net income  (loss) per share is  calculated by dividing net income (loss) by the
weighted average number of shares of common stock outstanding during the period.
Fully  diluted and primary  earnings  per common  share are the same amounts for
each of the periods  presented.  Dilutive  common stock  equivalents  consist of
stock  warrants.  In loss periods  dilutive common stock  equivalent  shares are
excluded as the effect would be antidilutive.

NOTE 3 - STOCKHOLDERS' EQUITY (DEFICIT)

During  March 1989,  the Company  sold  10,000,000  units of no par value common
stock to its officers,  directors and private investors.  The offering price for
each unit was $.001.  Each unit  consisted of one share of the  Company's no par
value common stock and 25 common stock purchase  warrants.  Each warrant enables
its holder to purchase one share of  restricted  common stock at $.014 per share
for a period of 24 months  commencing  with the effective date of the prospectus
(October 30, 1989).  The Company  received  $10,000 in proceeds from the sale of
common stock to its officers, directors and private investors.


<PAGE>




On January 4, 1990,  the Company  sold  10,000,000  units of no par value common
stock in a public offering. The offering price for each unit was $.01. Each unit
consisted of one share of the Company's no par value common stock and 25 Class A
Common  Stock  Redeemable  Purchase  Warrants  (Class A  Warrants).  The Class A
Warrants  are  exercisable  for  24  months  from  the  effective  date  of  the
registration  statement  (October 30,  1989) and entitled the holder  thereof to
purchase  25 shares of common  stock at a price of $.01 per share.  The  Company
received  $72,730,  net of offering costs,  from the sale of common stock in the
public offering.

All warrants have expired unissued.

In September  1995 the Board of Directors  authorized a 1 for 300 reverse  stock
split of its common stock, after a shareholders vote.

On August 7, 1995, the Company issued 15 million (50,000  post-split)  shares of
common stock valued at $1,500 to seven unrelated entities who performed services
for the Company during the Receivership.

In 1997,  the  Company  issued 2 million  common  shares to certain  persons and
entities for cash consideration of $21,900.

NOTE 4 - RELATED PARTY TRANSACTION

On April 6, 1998,  the Company  issued seven million  shares of common stock for
$7,000 in  services  rendered to its  President,  Robert  Kropf,  who was also a
director.

The  Company  is not being  charged  office  rental  for space  provided  by its
president. Such amounts would be nominal.



<PAGE>



ITEM 2.           MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS FOR THREE MONTH PERIOD IN 1998 COMPARED TO
THE SAME PERIOD IN 1997.

The Company  experienced  expenses  for the three month period of $7,000 in 1998
and $0 in 1997.  The Company had no revenues for the period in 1998 or 1997. The
Company recorded no income for the period in 1997 but had a net income of $8,464
in the same period  1998 due to a gain on  settlement  of debt of  $15,464.  The
Company  losses may  continue  until  income can be  achieved  through  business
operations.  While the Company is seeking capital sources for investment;  there
is no assurance that sources can be found.

RESULTS OF  OPERATIONS  FOR THE SIX MONTHS ENDED JUNE 30, 1998,  COMPARED TO THE
SAME PERIOD IN 1997.

The Company had no revenues from  operations for the six month period in 1998 or
in 1997.  The Company  incurred  $11,395 in operating  expenses in the period in
1998,  resulting  in an operating  loss of ($11,395)  compared to no expenses in
1997 and no profit or loss.  The  expenses in the 1998 period were  incurred for
reporting costs and  investigation  services of the President related to seeking
an acquisition.  The Company had net income of $4,069 in the period in 1998 as a
result of the  settlement of $15,464 in debt. In the period in 1997, the Company
had no income or loss.

Losses on operations  may continue  until  business  revenues can be achieved of
which there is no assurance.

LIQUIDITY AND CAPITAL RESOURCES

The Company had no cash  capital at the end of the period.  The Company  will be
forced to either  borrow or make  private  placements  of stock in order to fund
operations.  No  assurance  exists as to the  ability to  achieve  loans or make
private placements of stock.


                           PART II - OTHER INFORMATION

ITEM 1.           LEGAL PROCEEDINGS

                  None

ITEM 2.           CHANGES IN SECURITIES

                  None

ITEM 3.           DEFAULT UPON SENIOR SECURITIES

                  None



<PAGE>


ITEM 4.           SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                  None

ITEM 5.           OTHER INFORMATION

                  None

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

          No reports on Form 8-K were made for the period for which this  report
is filed.


                                   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.

Date: _______________, 1999



                                     THE OHIO AND SOUTHWESTERN ENERGY COMPANY


                                     /s/ Ralph Shearing
                                     -----------------------------------------
                                     President