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
March 31, 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.

                          116,666 as of March 31, 1997


<PAGE>



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


                                  BALANCE SHEET
                                   (unaudited)

                                              March 31,        December 31,
                                                1997              1996
                                              --------          --------
                                         


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                    10,496              10,496
                                         ---------------------------------



Stockholder's equity:

Common stock, $0.0001 stated                 84,230              84,230
value (Note C) Authorized
100,000,000 shares Issued and
outstanding 116,666 shares

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

Contributed capital                          24,842              24,842

Retained Earnings (deficit)                (119,568)           (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           Three Months
                                          Ending March 31,      Ending March 31,
                                               1997                   1996
                                          ----------------      ----------------

Revenue & interest                                 $0                    $0

Expenses, general                                  $0                $3,023
and administrative

Provision for income                              --                    --
taxes
                                           ---------------      ----------------
Net income (loss)                                 ($0)              $(3,023)
for period
                                           ===============      ================
Net income (loss)                                 $(-)                $(.03)
per share
                                           ===============      ================

Weighted average                              116,666               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 Months          Three Months
                                             Ending                Ending
                                            March 31,             March 31,
                                              1997                  1996
                                         -------------         -------------

Cash flows from
operating activities:
   
Net income (loss)                                $0              ($3,023)



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

Amortization                                     $0                   $0

Rent                                             $0                   $0

Changes in:

Accounts payable                                 $0               $3,023

Accounts payable -                               $0                   $0
related parties

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

Cash provided (used) by                          $0                   $0
operating activities
                                         =============         =============


Cash at beginning of                             $0                   $0
period
                                         =============         =============


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




    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)




<PAGE>



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


RESULTS OF OPERATIONS
---------------------

The Company had  experienced  expenses  for the three month period of $0 in 1997
and $3,023 in 1996.  The Company had no revenues for the period  totaled in 1996
or 1997.  The  Company  recorded  no income for the period in 1997 but had a net
loss of ($3,023) in the same period 1996. 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.

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

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.


<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