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
September 30, 1997                                               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.)

                7535 E. Hampden Ave., Ste. 600, Denver, CO 80231
                -------------------------------------------------
               (Address of principal executive offices) (Zip Code)

            Registrant's telephone number, including area code: None


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         No  X 
                                               -----      -----

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

                       2,116,666 as of September 30, 1997


<PAGE>



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


                                  BALANCE SHEET
                                   (unaudited)

                                             September              December 31,
                                             30, 1997                  1997
                                           -------------          -------------
Current Assets:

Cash and cash equivalents                          $0                     $0

Total current assets                               $0                     $0

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

TOTAL ASSETS                                       $0                     $0
                                           =============          =============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

Current liabilities:

Accounts payable                              $10,496                $10,496

Accounts payable, related parties                  $0                     $0
                                           -------------          -------------

Total current liabilities                     $10,491                $10,496
                                           -------------          -------------

Stockholder's equity:

Common stock, $0.01 stated value               84,230                 84,230
(Note C) Authorized 100,000,000
shares Issued and outstanding
2,116,666 shares

Preferred stock, no par value,
100,000,000 shares authorized, no
shares outstanding

Contributed capital                            46,742                 24,842

Retained Earnings (deficit)                  (141,468)              (119,568)
                                           -------------          -------------

Total Stockholders' equity                   ($10,496)              ($10,496)
                                           -------------          -------------

TOTAL LIABILITIES & STOCKHOLDERS'                  $0                     $0
EQUITY
                                           =============          =============



    The accompanying notes are an integral part of the financial statements.

                                       F-1


<PAGE>



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


                             STATEMENT OF OPERATIONS
                                   (unaudited)

                          Three months ending          Nine months ending
                              September 30                 September 30,
                              ------------                 -------------
                          1997          1996           1997             1996
                          ----          ----           ----             ----

Revenue & interest           $0            $0              $0              $0
                       -------------------------------------------------------

Expenses, general       $21,900        $3,022         $21,900          $9,068
and administrative

Provision for income        --            --              --              --
taxes
                      --------------------------------------------------------

Net income (loss)      ($21,900)      ($3,022)       ($21,900)        ($9,068)
for period
                      ========================================================

Net income (loss)         $(.19)        $(.03)          $(.19)          $(.08)
per share
                      ========================================================

Weighted average        705,555       116,666         235,185         116,666
number of common
shares








    The accompanying notes are an integral part of the financial statements.

                                       F-2


<PAGE>



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


                             STATEMENT OF CASH FLOWS
                                   (unaudited)


                         Three          Three            Nine          Nine
                         Months         Months           Months        Months
                         Ending         Ending           Ending        Ending
                         September      September        September     September
                         30, 1997       30, 1996         30, 1997      30, 1996
                         ------------------------       ------------------------
Cash flows from
operating
activities:

Net income (loss)         ($21,900)           $0          ($21,900)     $(9,068)

Adjustments to
reconcile net income
(loss) to net cash
provided (used) by
operating
activities:

Amortization                    $0            $0                $0           $0

Rent                            $0            $0                $0           $0

Changes in:

Accounts payable           $10,496        $3,022          *$10,496      $(9,068)

Accounts payable -              $0            $0                $0           $0
related parties
                           ----------------------         ----------------------
Cash provided (used)            $0            $0                $0           $0
by operating
activities
                           ======================         ======================

Cash at beginning of       $(21,900)          $0                $0           $0
period
                           ======================         ======================

Contributed Capital          21,900            0             21,900           0

Cash at end of                   $0           $0                 $0          $0
period
                           ======================         ======================

    The accompanying notes are an integral part of the financial statements.

                                       F-3



<PAGE>




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


                          NOTES TO FINANCIAL STATEMENTS
                                   (unaudited)

NOTE 1 - 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.
(See Note 5)

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.

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

<PAGE>




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 Taxes
------------

Effective January 1, 1990 the Company adopted the liability method of accounting
for income taxes  pursuant to Statement of Financial  Accounting  Standards  No.
109.  Under this method,  deferred  income taxes are recorded to reflect the tax
consequences in future years of temporary  differences  between the tax basis of
the assets and liabilities and their financial amounts at year end.

For federal  income tax  purposes,  substantially  all expenses must be deferred
until the  Company  commences  business  and may be written  off over a 60-month
period.  The Company is not in business at this date.  Therefore  $93,765 of net
losses  incurred to date have not been deducted for tax purposes and represent a
deferred tax asset at this date. The Company is providing a valuation  allowance
in the full amount of the  deferred  tax asset since  there is no  assurance  of
future taxable income.

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 2 - 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



<PAGE>


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.

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 (150,000 post- split) shares of
common  stock  valued at  $15,000  to seven  unrelated  entities  who  performed
services for the Company during the Receivership.

NOTE 3 - RELATED PARTY TRANSACTION

Outside legal counsel for the Company is also a stockholder.

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

NOTE 4 - EXTRAORDINARY ITEM

The majority  stockholder,  MSC, failed to disclose to the minority stockholders
the  distribution  of corporate  funds  during the year ended 1990.  The Company
recorded  an  extraordinary  loss in the  amount of  $69,116  as a result of the
unauthorized distribution of corporate funds. (See Note 1)



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


RESULTS OF OPERATIONS FOR THREE MONTH PERIOD ENDED SEPTEMBER 30, 1997
---------------------------------------------------------------------

The  Company  had  expenses  for the three  month  period of $21,900 for 1997 as
compared to $3,022 in expenses in the 1996  period.  There were no revenues  for
the period in 1997 or 1996. The Company recorded a net loss of ($21,900) for the



<PAGE>


period in 1997 and a net loss of ($3,022) in the 1996 period. The Company losses
may continue until income can be achieved.  While the Company is seeking capital
sources for investment; there is no assurance that sources can be found.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

The Company had  inadequate  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.

RESULTS OF OPERATIONS FOR NINE MONTH PERIOD ENDED SEPTEMBER 30, 1997
--------------------------------------------------------------------

The Company had no  revenues  for the nine month  period in either 1996 or 1997.
The Company had general and administrative  expenses in 1996 of $9,068 resulting
in a net loss of ($9,068)  for the period.  In the 1997 nine month  period,  the
Company  had $21,900 in general and  administrative  expenses  and a net loss of
($21,900).

                           PART II - OTHER INFORMATION
                           ---------------------------

ITEM 1. LEGAL PROCEEDINGS
-------------------------

     None

ITEM 2. CHANGES IN SECURITIES
-----------------------------

     None

ITEM 3. DEFAULT UPON SENIOR SECURITIES
--------------------------------------

     None

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

     None

ITEM 5. OTHER INFORMATION
-------------------------

     The Company  issued 2 million  common shares to Exchange Place Partners LLC
for cash  consideration  of $21,900.  Such shares  constitute 94.4% of the total
outstanding stock of the Company.

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.


<PAGE>


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


                                   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.



                                        THE OHIO AND SOUTHWESTERN ENERGY COMPANY



Date: November 13, 1997                 /s/ Kevin D. Geiss
                                        ----------------------------------------
                                        President