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, 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.

                9,736,695 common shares as of September 30, 1998


<PAGE>



Part I:  FINANCIAL INFORMATION

<TABLE>
<CAPTION>


                                      THE OHIO & SOUTHWESTERN ENERGY COMPANY
                                           (A Development Stage Company)
                                                  BALANCE SHEETS
                                     September 30, 1998 and December 31, 1997
                                              (Stated in US Dollars)
                                             (Unaudited - See Note 1)


<S>                                                             <C>                               <C>
                                                             ASSETS

                                                                September 30,                     December 31,
                                                                1998                              1997

Current

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

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

                                                           LIABILITIES

Current

Accounts Payable                                                $     25,410                   $      11,069
                                                              ---------------------------------------------------

                                                      STOCKHOLDERS' EQUITY

Preferred stock $0.01 par value;
100,000,000 shares authorized;
none issued

Common stock no par value;
1,000,000,000 shares authorized;
9,736,695 issued and outstanding                                     118,730                         105,530

Contributed capital                                                   25,442                          25,442

Deficit accumulated during the
development stage                                                   (169,370)                       (141,829)
                                                              ---------------------------------------------------

                                                                     (25,198)                        (10,857)
                                                              ---------------------------------------------------

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



</TABLE>



                                               SEE ACCOMPANYING NOTE


<PAGE>

<TABLE>
<CAPTION>


                                                   THE OHIO & SOUTHWESTERN ENERGY COMPANY
                                                        (A Development Stage Company)
                                                           STATEMENT OF OPERATIONS
                                   for the three and nine month periods ended September 30, 1998 and 1997
                                                           (Stated in US Dollars)
                                                          (Unaudited - See Note 1)



<S>                                         <C>                                         <C>                           <C>
                                            Three months ended                          Nine months ended             Cumulative
                                               September 30,                              September 30                from February
                                                                                                                      28, 1989
                                                                                                                      (Date of
                                                                                                                      Inception) to
                                                                                                                      September 30,


                                       1998                1997                  1998                   1997               1998
                                       ----                ----                  ----                   ----               ----

Expenses
Amortization                         $       -         $         -            $         -           $         -         $      750
General and admini-strative
expenses                                   410              21,900                  4,805                21,900             76,768
Legal fees                              25,000                   -                 25,000                     -             25,000
Management fees                              -                   -                  7,000                     -              7,000
Consulting fees                          6,200                   -                  6,200                     -              6,200
                                ----------------------------------------------------------------------------------------------------

Loss before the following:
Unauthorized distribution              (31,610)            (21,900)               (43,005)              (21,900)          (115,718)
Gain on settlement of debt
                                             -                   -                      -                     -            (69,116)

                                             -                   -                 15,464                     -             15,464
                                ----------------------------------------------------------------------------------------------------

Net loss for the period               ($31,610)           ($21,900)              ($27,541)             ($21,900)         ($169,370)
                                ====================================================================================================

Net loss per share                           -             $(0.03)                      -               ($0.09)
                                ==========================================================================================

Weighted average number of
common shares outstanding
                                     9,550,695             705,555              6,694,695               235,185
                                ==========================================================================================



</TABLE>

                                               SEE ACCOMPANYING NOTE


<PAGE>

<TABLE>
<CAPTION>


                                                   THE OHIO & SOUTHWESTERN ENERGY COMPANY
                                                        (A Development Stage Company)
                                           STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
                               for the period from February 28, 1989 (Date of Inception to September 30, 1998
                                                           (Stated in US Dollars)
                                                          (Unaudited - See Note 1)


<S>                                            <C>                          <C>                  <C>
                                                                                                 Deficit
                                                                                                 Accumulated
                                                                                                 During the
                                              Common Stock                  Contributed          Development

                                      Shares               Amount           Capital              Stage                 Total
                                         -------------------------------------------------------------------------------------------

Balance, Feb. 28, 1989                       -         $        -          $        -          $          -            $       -
Issuance of stock to
insiders on March 7, 1989-
at $0.30 per share
                                        33,347             10,000                   -                     -               10,000
                                         -------------------------------------------------------------------------------------------

Balance, Dec. 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
Net loss                                33,348             72,730                   -                     -               72,730
                                             -                  -                   -               (84,159)             (84,159)
                                         -------------------------------------------------------------------------------------------

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

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

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

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

Balance, Dec. 31, 1994                  66,695             82,730                   -               (93,765)              (11,035)
Net loss                                     -                  -                   -



</TABLE>

                                               SEE ACCOMPANYING NOTE


<PAGE>

<TABLE>
<CAPTION>


                                                   THE OHIO & SOUTHWESTERN ENERGY COMPANY                 Continued
                                                        (A Development Stage Company)
                                           STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
                               for the period from February 28, 1989 (Date of Inception to September 30, 1998
                                                           (Stated in US Dollars)
                                                          (Unaudited - See Note 1)

<S>                                           <C>                         <C>                     <C>
                                                                                                  Deficit
                                                                                                  Accumulated
                                                                                                  During the
                                              Common Stock                Contributed             Development

                                      Shares               Amount         Capital                 Stage                  Total
                                ----------------------------------------------------------------------------------------------------

Issuances of stock for
services rendered at - $0.03
per share                               50,000               1,500                 -                     -                 1,500
Contributed capital                          -                   -            24,842                     -                24,842
Net loss                                     -                   -                 -               (16,735)              (16,735)
                                ----------------------------------------------------------------------------------------------------

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

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

Balance, Dec. 31, 1997               2,116,695             105,530            25,442              (141,829)              (10,857)
Issuance of shares for
services rendered at -
$.0.001 per share                    7,000,000               7,000                 -                     -                 7,000
Issuance of shares for
services rendered at - $0.01
Net loss to 9/30/98                    620,000               6,200                 -                     -                 6,200
                                             -                   -                 -               (27,541)              (27,541)
                                ----------------------------------------------------------------------------------------------------

Balance, Sept. 30, 1998
                                     9,736,695            $118,730           $25,442             ($169,370)             ($25,198)
                                ====================================================================================================


</TABLE>



                                               SEE ACCOMPANYING NOTE


<PAGE>

<TABLE>
<CAPTION>


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

                                                                  Nine months ended
                                                           --------------------------------------------------------------
<S>                                                <C>                            <C>                           <C>
                                                                                                                Cumulative
                                                                                                                from February
                                                                                                                28, 1989 (Date
                                                                                                                of Inception)
                                                   September 30,                  September 30,                 to September
                                                   1998                           1997                          30, 1998
                                            ----------------------------------------------------------------------------------------

Cash flows from operating
activities
Net loss                                              ($27,541)                     ($21,900)                      ($169,370)
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
Consulting fees                                          6,200                             -                          6,200
Changes in non-cash items:
Accounts payable                                        29,805                             -                         29,805
                                            ----------------------------------------------------------------------------------------

Net cash used in operating
activities                                                   -                       (21,900)                      (128,510)
                                            ----------------------------------------------------------------------------------------

Cash flows from investing activities:
Organization costs                                           -                             -                           (750)
                                            ----------------------------------------------------------------------------------------

Net cash used in investing
activities                                                   -                             -                           (750)
                                            ----------------------------------------------------------------------------------------

Cash flows from 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                             -                              -
Contributed capital                                          -                        21,900                              -
                                            ----------------------------------------------------------------------------------------

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


</TABLE>


                                               SEE ACCOMPANYING NOTE


<PAGE>




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

NOTE 1 - INTERIM REPORTING

These  financial  statements  have not been  audited 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 thereto.

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  had no  operations  in the  period  in 1998 or in 1997.
Although the Company contracted to acquire as a wholly owned subsidiary, CanArab
Technology, Inc., with the intent to enter the shrimp aquaculture and processing
business,  no operations in such subsidiary  have commenced,  and it is still in
the  organizational  and  business  plan  stage,  and  the  transaction  is  yet
incomplete.

The Company  underwent a change in control in July 1998,  and it incurred  legal
expenses in connection  therewith of $25,000,  and incurred  consulting  fees of
$6,200  relating  to  issuance  of shares  registered  on Form S-8 for  services
rendered.

The Company had expenses for the three month period of $31,610 in 1998  compared
to $21,900 in 1997.  The Company had no revenues for the period in 1998 or 1997.
The Company  recorded a ($31,610)  net loss for the period in 1998 and had a net
loss of  ($21,900)  in the same period 1997.  The Company  losses will  continue
until income can be achieved.  While the Company is seeking  capital sources for
investment;  there is no  assurance  that  sources  can be  found.  In the third
quarter,  the Company recognized $15,464 in extraordinary income from settlement
of debt.

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

In  1998  for  the  nine  month  period,   the  Company   incurred  general  and
administrative  expenses of $4,805,  legal fees of $25,000,  consulting  fees of
$6,200,  and manufacturing  fees of $7,000. In 1997, for the period, the Company
incurred $21,900 in general and administrative expenses. The loss for the period
in 1998 was  ($27,541) as compared to the loss on  operations  for the period in
1997 of  ($21,900).  In the third  quarter,  the Company  recognized  $15,464 in
extraordinary income from settlement of a debt.

LIQUIDITY AND CAPITAL RESOURCES

The Company had nominal 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. At period end current  liabilities  exceeded assets
by $25,198.



<PAGE>



                           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

                  None

ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

          Reports on Form 8-K were made for the period for which this  report is
filed as follows:

                  a.       8-K filed July 13, 1998
                  b.       8-K filed September 10, 1998



<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.

Date: _______________, 1999



                                     THE OHIO AND SOUTHWESTERN ENERGY COMPANY


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