U. S. Securities and Exchange Commission
                             Washington, D. C. 20549

                                   FORM 10-KSB

[X]     ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

        For the fiscal year ended December 31, 2001

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

        For the transition period from           to
                                       ---------    ---------

                           Commission File No. 0-29129

                            SOURCE ENERGY CORPORATION
               (Name of Small Business Issuer in its Charter)

           UTAH                                      87-0370820
        ---------                                     ----------
State or Other Jurisdiction of               (I.R.S. Employer I.D. No.)
incorporation or organization)

                   3040 Granite Meadow Lane, Sandy Utah 84092
                          ----------------------------
                    (Address of Principal Executive Offices)

                    Issuer's Telephone Number: (801) 943-5490


                                       N/A

                                       ---
          (Former Name or Former Address, if changed since last Report)


Securities Registered under Section 12(b) of the Exchange Act: None.

Securities Registered under Section 12(g) of the Exchange Act: Common

Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

(1)   Yes X    No     (2)   Yes X    No
         ---     ---           ---      ---

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]


<PAGE>



State Issuer's revenues for its most recent fiscal year: December 31, 2001 -
$41,833.

State the aggregate market value of the common voting stock held by
non-affiliates computed by reference to the price at which the stock was sold,
or the average bid and asked prices of such stock, as of a specified date within
the past 60 days.

March 1, 2002 - $40,278. There are approximately 104,619 shares of common voting
stock of the Registrant held by non-affiliates. On March 1, 2001 the average bid
price was $0.385

                   (ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
                          DURING THE PAST FIVE YEARS)

Not Applicable.


                    (APPLICABLE ONLY TO CORPORATE REGISTRANTS)

State the number of shares outstanding of each of the Issuer's classes of common
equity, as of the latest practicable date:

                                  March 1, 2002

                                     404,451

                                   ---------

DOCUMENTS INCORPORATED BY REFERENCE

A description of "Documents Incorporated by Reference" is contained in Item 13
of this Report.

Transitional Small Business Issuer Format   Yes     No  X
                                                ---     ---

                                     PART I

Item 1.  Description of Business.

Business Development

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

         Source was originally incorporated under the name Exit, Inc. in
accordance with the laws of the State of Utah on January 30, 1981. In April of
1984, the Company changed its name to Parker Energy Technology, Inc. From its
inception until May 20, 1997, the Company had been in the business of oil and
gas exploration and production activities. Currently, the Company has one
producing well, located in Grand County, Utah.

     On May 20, 1997, the Company effected a reverse split of its outstanding
shares from 81,637,100 to 1,632,742. Simultaneous thereto, the Company entered
into an agreement with a T.R. Kraft and Point Source Energy ("Point") to engage
in the business of distillate fuel systems process plants, issued 12,305,800
shares of common stock in connection with the transaction and changed its name
to Source Energy Corporation.


<PAGE>




     Subsequently, Craig Carpenter, a former officer and director of Source and
a stockholder, filed a shareholder derivative suit in the United States District
Court, District of Utah, case no. 2:99CV0332K, against T.R. Kraft, Point, and
Source alleging that Kraft and Point committed fraud to induce plaintiffs to
enter into the original transaction.

     On March 10, 2000 the District Court issued a judgment and order rescinding
the May 20, 1997 transaction. The judgment states that Source be returned, as
nearly as possible, to its status prior to consummation of said transaction.
This included canceling 12,305,800 shares of common stock issued in the
transaction to Kraft by Source, reinstating Craig Carpenter, Helen G. Carpenter,
and Kathy Morrison as officers and directors of Source, and the return of
182,852 shares of Common Stock from Kraft to Carpenter, which were originally
sold directly by Carpenter to Kraft. Craig Carpenter was granted an award
against Source in the amount of $75,000 to compensate him for the benefit he
conferred on the stockholders of Source by prosecuting the action against Kraft
and Point. Source was awarded damages against Kraft in the amount of $75,000. In
addition, Source is liable for legal fees and expenses of the suit in the amount
of $15,039. To settle the legal fees and expenses, Source issued 200,000 shares
of its Common Stock to Mr. Carpenter. Source intends to pursue its damage award
against T.R. Kraft, but cannot predict at this time whether it will be
successful in collecting.

     On April 10, 2000, Source effected a 1 for 40 reverse split in its issued
and outstanding Common Stock.

     On April 13, 2000, Source Energy Corporation, a Utah corporation ("Source")
acquired Newven Acquisition Corporation, a Nevada corporation ("Newven") as a
wholly owned subsidiary through a stock for stock exchange. Immediately
following the exchange, Source and Newven entered into a Plan of Merger pursuant
to which Newven was merged with and into Source. See the exhibit index for the
Current Report on Form 8-K as filed with the Securities and Exchange Commission.

     Prior to the transaction, Newven had 500,000 shares of common stock
outstanding, which were exchanged for 25,000 shares of the restricted common
stock of Source.

Business
--------

     Existing operations and plan of operation

     In 1981, Source purchased a working interest in, and became the operator
of, the property known as Bureau of Land Management Federal Oil and Gas Lease
No. U-14654 consisting of 480 acres. Located in Grand County, Utah, this is
Source's only oil and gas property. The Company has one producing well on this
lease. At the present time the Company maintains a 68.78% working interest in
the property.

     Source has previously drilled two other dry holes on the lease. We intend
to evaluate the lease for new sites that show a reasonable chance of success in
drilling producing wells. We will also look for opportunities to acquire
additional oil and gas properties for development in the states of Utah and
Wyoming.


<PAGE>



     Source has been unable pursue any meaningful business operations during the
past three years because of the litigation resulting from the transaction with
T.R. Kraft and Point. The litigation was resolved by a judgment entered in March
2000. On September 22, 2000, the Securities and Exchange Commission ("SEC")
filed a complaint in the United States District Court, case no. 2:00CV 0757B,
naming Source and Timothy R. Kraft, a former officer and director of Source, as
defendants. Source believes this complaint will have to be rectified before it
will be in a position to pursue more active business operations.

     As a result of these circumstances, operations were limited in the past
three years to maintaining production from our one producing oil well in Grand
County. Revenue from oil production in 2001 and 2000 was $41,833 and $56,785,
respectively. The decrease in revenue from fiscal year 2000 to fiscal year 2001
is attributable primarily to falling oil prices.

     However, these resources are not sufficient to embark on new drilling
activity on our existing lease or to acquire and develop any other oil and gas
properties. Consequently, we intend to seek additional debt or equity financing
over the next year to fund expansion of our operations. However, there can be no
assurance that additional funding will be available or, if available, that it
will be available on acceptable terms or in required amounts. If we do find
financing, there is no assurance that we will succeed in expanding our
operations or remain profitable.

Principal Products or Services and Markets

          The Company will continue to produce and market oil. The demand for
this product continues to increase as population and industry conversions
expand.

Reserve Analyses

          The Company has not had an outside consultant perform a certified
reserve analysis on the Company's leases. For more information see the Notes to
Financials Statements, attached hereto.

          Reserve analyses are at best speculative, especially when based upon
limited production and limited access to production records; no assurance can be
given that the reserves attribute to these leases exist or will be economically
recoverable. See the Risk Factor entitled "Uncertainty of Reserve Estimates,"
herein.

Distribution Methods of Products or Services.
--------------------------------------------

         We sell all of our oil production to Giant Industries at spot prices.
Emerging from a two-year downturn, oil prices reached their highest level since
the Gulf War and have continued to rise. Giant Industries will take all of the
oil that we can produce.

     Prices for oil and gas are driven strictly by supply and demand. We can
sell our products to any one of five local distributors. Prices among the five
distributors are nearly equal. We decided to sell to Giant Industries based on
quality of service and proximity of their delivery point to our lease. We do not
use commodity futures contracts or price swaps in marketing our crude oil.
<PAGE>

Status of Any Publicly Announced New Product or Service

          The Company does not have any publicly announced new product or
service; nor does it anticipate any in the foreseeable future.

Competitive Business Conditions, Competitive Position in the Industry and
Methods of Competition

     The oil and gas industry is highly competitive in all phases. We will
encounter strong competition from other independent oil companies in all areas
of our business including marketing, production and obtaining external
financing. Most of our competitors have financial resources, personnel, and
facilities substantially greater than ours. However, unless there is a
substantial drop in the market for oil and natural gas, we can sell our products
at daily spot prices.

          The prices of the Company's products are controlled by the world oil
market and the United States natural gas market; thus, competitive pricing
behaviors in this regard are considered unlikely; however, competition in the
oil and gas exploration industry exists in the form of competition to acquire
the most promising acreage blocks and obtaining the most favorable prices for
transporting the product.

Sources and Availability of Raw Materials and Names of Principal Suppliers

          The Company's operations are not dependent on the acquisition of any
raw materials. See the caption "Competitive Business Conditions, Competitive
Position in the Industry and Methods of Competition," above.

Dependence on One or a Few Major Customers

     Prices for oil and gas are driven strictly by supply and demand. We can
sell our products to any one of five local distributors.

Patents, Trademarks, Licenses, Franchises, Concessions, Royalty Agreements or
Labor Contracts, including Duration

     As is customary in the oil and gas industry, only a perfunctory title
examination is conducted at the time oil and gas leases are acquired. Prior to
the commencement of drilling operations, a thorough title examination is
conducted. We believe the title to our lease is good and indefeasible in
accordance with standards generally accepted in the oil and gas industry. Our
existing and future leases may be burdened by customary royalty interests, liens
incident to oil and gas operations, and liens for taxes and other governmental
charges as well as encumbrances, easements and restrictions. We do not believe
that any of these burdens will materially interfere with the use of the
property.

          Royalty agreements relating to oil and gas production are standard in
the industry. See the caption "Business," above for the amounts of the royalties
on the Company's lease.

<PAGE>


Need for Governmental Approval of Principal Products or Services

          None of the principal products or services offered by the Company
require governmental approval. See the caption "Effect of Existing or Probable
Governmental Regulations on Business," below.

Effect of Existing or Probable Governmental Regulations on Business

     All aspects of the oil and gas industry are extensively regulated by
federal, state, and local governments. Regulations govern such things as
drilling permits, production rates, environmental protection and pollution
control, royalty rates, and taxation rates. These regulations may substantially
increase the cost of doing business and sometimes prevent or delay the start or
continuation of any given exploration or development project. Regulations are
subject to future changes by legislative and administrative action and by
judicial decisions, which may adversely affect the petroleum industry.

     We believe our operations comply with all applicable legislation and
regulations in all material respects and that the existence of such regulations
has had no more restrictive effect on our method of operations than other
similar companies in the industry. Although we do not believe our business
operations presently impair environmental quality, compliance wit federal, state
and local regulations which have been enacted or adopted regulating the
discharge of materials into the environment could have an adverse effect upon
our capital expenditures, earnings and competitive position.

     In the areas which we conduct our operations, there are statutory
provisions regulating the production of oil and natural gas. These rules may
restrict the oil and gas production rate to below the rate our existing and
future wells can produce. We are also subject to numerous laws and regulations
governing the discharge of materials into the environment or otherwise relating
to environmental protection. We may be required to obtain permits before
drilling and operating our wells. Also, we may be subject to liability for
pollution that results from our operations. It is impossible to predict if and
to what extent these regulations may impact our operations.

     State regulatory authorities have established rules and regulations
requiring permits for drilling operations, drilling bonds and/or reports
concerning operations. The state regulatory authorities may also have statutes
and regulations concerning the spacing of wells, environmental matters and
conservation.

     We intend to comply with all regulations pertaining to our operations.
However, future legislation and regulation may have an adverse impact on our
business.

          Exploration and production activities relating to oil and gas leases
are subject to numerous environmental laws, rules and regulations. The federal
Clean Water Act requires the Company to construct a fresh water containment
barrier between the surface of each drilling site and the underlying water
table. This involves the insertion of a seven-inch diameter steel casing into
each well, with cement on the outside of the casing. The cost of compliance with
this environmental regulation is approximately $10,000 per well.

        The Company's operations are also subject to laws and regulations
requiring removal and cleanup of environmental damages under certain


<PAGE>



circumstances. Laws and regulations protecting the environment have generally
become more stringent in recent years, and may in certain circumstances impose
"strict liability," rendering a corporation liable for environmental damages
without regard to negligence or fault on the part of such corporation. Such laws
and regulations may expose the Company to liability for the conduct of
operations or conditions caused by others, or for acts of the Company which were
in compliance with all applicable laws at the time such acts were performed. The
modification of existing laws or regulations or the adoption of new laws or
regulations relating to environmental matters could have a material adverse
effect on the Company's operations. In addition, the Company's existing and
proposed operations could result in liability for fires, blowouts, oil spills,
discharge of hazardous materials into surface and subsurface aquifers and other
environmental damage, any one of which could result in personal injury, loss of
life, property damage or destruction or suspension of operations.

          The Company believes it is presently in compliance with all applicable
federal, state and local environmental laws, rules and regulations; however,
continued compliance (or failure to comply) and future legislation may have an
adverse impact on the Company's present and contemplated business operations.

          The foregoing is only a brief summary of some of the existing
environmental laws, rules and regulations to which the Company's business
operations are subject, and there are many others, the effects of which could
have an adverse impact on the Company. Future legislation in this area will no
doubt be enacted and revisions will be made in current laws. No assurance can be
given as to what effect these present and future laws, rules and regulations
will have on the Company's current future operations.

Research and Development

     The Company has not expended any amount in research and development
activities during the last fiscal year.

Cost and Effects of Compliance with Environmental Laws

     See the caption "Effect of Existing or Probable Governmental Regulations on
Business" of this Report.

Number of Total Employees and Number of Full-Time Employees

     Source has no employees. It relies on independent contractors to perform
the services required to maintain its producing well.

Risk Factors

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

                  Limited Market for Common Stock; Although the Company's common
stock is quoted on the OTC Bulletin Board of the National Association of
Securities Dealers, Inc. (the "NASD"), the market is very limited; there can be
no assurance that it will continue or be maintained. Any market price for shares
of common stock of the Company is likely to be very volatile, and factors such
as competition, governmental regulation and fluctuations in operating results
may all have a significant effect. In addition, the stock markets generally have
experienced, and continue to experience, extreme price and volume fluctuations
which have affected the market price of many small


<PAGE>



capital companies and which have often been unrelated to the operating
performance of these companies. These broad market fluctuations, as well as
general economic and political conditions, may adversely affect the market price
of the Company's common stock. See the caption "Market Price of and Dividends on
the Company's Common Equity and Other Stockholder Matters," herein.

          Future Capital Requirements; Uncertainty of Future Funding. The
Company presently has limited operating capital. It will require substantial
additional funding in order to pursue any operations outside of operating the
one existing location. The Company would need to raise these funds through
equity or debt financings, which may be very difficult for such a highly
speculative enterprise. There can be no assurance that such additional funding
will be made available to the Company, or if made available, that the terms
thereof will be satisfactory to the Company. Furthermore, any equity funding
will cause a substantial decrease in the proportional ownership interests of
existing stockholders. If such funding is not made available to the Company, it
is doubtful that the Company would be able to expand operations outside of its
presently limited scope. See the caption "Business" and the heading "Plan of
Operation" of the caption "Management's Discussion and Analysis or Plan of
Operation," herein.

          Substantial Capital Requirements. If revenues were to decrease as a
result of lower oil and gas prices, decreased production or otherwise, the
Company may have limited ability to continue production, resulting in a further
decrease in production and revenues. If the Company's cash flow from operations
is not sufficient to satisfy its capital expenditure requirements, there can be
no assurance that additional debt or equity financing will be available to meet
these requirements.

          Replacement of Reserves. The Company's future success will depend upon
its ability to find, acquire and develop additional oil and gas reserves that
are economically recoverable. The proved reserves of the Company will generally
decline as they are produced, except to the extent that the Company conducts
revitalization activities, or acquires properties containing proved reserves, or
both. The Company currently does not have a plan to increase its reserve base.

          Uncertainty of Reserve Estimates. Oil and gas reserve estimates and
the present value estimates associated therewith are derived from limited data.
As a result, oil and gas reserve estimates and present value estimates are
frequently revised in subsequent periods to reflect production data obtained
after the date of the original estimate. If reserve estimates are inaccurate,
production rates may decline more rapidly than anticipated, and future
production revenues may be less than estimated. Moreover, significant downward
revisions of reserve estimates may adversely affect the Company's ability to
borrow funds in the future or have an adverse impact on other financing
arrangements.

          Operating Hazards. Oil and gas operations involve a high degree of
risk. Natural hazards, such as excessive underground pressures, may cause costly
and dangerous blowouts or make further operations on a well financially or
physically impractical. Any of the foregoing hazards may result in substantial
losses or liabilities to third parties, including claims for bodily injuries,
reservoir damage, loss of reserves, environmental damage and other damages to
persons or property.


<PAGE>



         Future Sales of Common Stock. Craig Carpenter, President and Director
beneficially owns 209,832 shares of the common stock of the Company or
approximately 52% of its outstanding voting securities. All of his shares Will
have been beneficially owned for one year on April 16, 2001, and subject to
compliance with the applicable provisions of Rule 144 of the Securities and
Exchange Commission, Mr. Carpenter may then commence to sell his "restricted
securities" in an amount equal to up to 1% of the then outstanding securities of
the Company, in any three month period. Such sales could have a substantial
adverse effect on any public market that may then exist in the Company's common
stock. Sales of any of these shares by Mr. Carpenter could severely affect the
ability of the Company to secure the necessary debt or equity funding for the
Company's proposed business operations. Sales of restricted securities by others
could also have an adverse effect on any market in the common stock of the
Company. See the caption "Recent Sales of Unregistered Securities." For
additional information concerning the present market for shares of common stock
of the Company, see the caption "Market Price of and Dividends on the Company's
Common Equity and Other Stockholder Matters," herein. For information regarding
common stock ownership of Mr. Carpenter, see the caption "Security Ownership of
Certain Beneficial Owners and Management," herein.

     Voting Control.  By virtue of Craig Carpenter's  ownership of approximately
52% of the  Company's  outstanding  voting  securities,  Mr.  Carpenter  has the
ability to elect all of the Company's directors, who in turn elect all executive
officers,  without regard to the votes of other stockholders.  Mr. Carpenter may
be deemed to have  absolute  control  over the  management  and  affairs  of the
Company.  See the caption "Security  Ownership of Certain  Beneficial Owners and
Management," of this Report.

          Competition. The Company's oil and gas exploration activities are
centered in a highly competitive field. In seeking any other suitable oil and
gas properties for acquisition, or drilling rig operators and related personnel
and equipment, the Company will be competing with a number of other companies,
including large oil and gas companies and other independent operators with
greater financial resources. Management does not believe that the Company's
initial competitive position in the oil and gas industry will be significant.
See the caption "Competition" under the heading "Business," herein.

          Dependence on Key Employees and Technical Personnel. The Company is
substantially dependent upon the continued services of Craig Carpenter its
President and Director. Mr. Carpenter is in good health; however, his
retirement, disability or death would have a significant adverse impact on the
Company's business operations. To the extent that his services become
unavailable, the Company will be required to retain other qualified personnel;
there can be no assurance that it will be able to recruit and hire qualified
persons upon acceptable terms. See the caption "Directors, Executive Officers,
Promoters and Control Persons," herein.

          Similarly, the oil and gas exploration industry requires the use of
personnel with substantial technical expertise. In the event that the services
of its current technical personnel become unavailable, the Company will need to
hire qualified personnel to take their place; no assurance can be given that it
will be able to recruit and hire such persons on mutually acceptable terms.

<PAGE>

     Governmental Regulations. The Company is subject to numerous state and
federal regulations, environmental and otherwise, that may have a substantial
negative effect on its ability to operate at a profit. See the captions "Effect
of Existing or Probable Governmental Regulations on Business" and "Costs and
Effects of Compliance with Environmental Laws," herein.

          General Economic Risks/Potential Volatility of Stock Price. The
Company's current and future business plans are dependent, in large part, on the
state of the general economy. Adverse changes in general and local economic
conditions may cause high volatility in the market price of the Company's
securities and may adversely affect an investment in these securities. Oil and
gas prices are extremely volatile and are subject to substantial seasonal,
political and other fluctuations, all of which are beyond the Company's control.

Indemnification of Officers and Directors

     Section 16-10a-902 of the Utah Code Annotated provides in relevant part as
follows:

     (1) Except as provided in Subsection (4), a corporation may indemnify an
individual made a party to a proceeding because he is or was a director, against
liability incurred in the proceeding if:

     (a) his conduct was in good faith; and

     (b) he reasonably believed that his conduct was in, or not opposed to,
the corporation's best interests;  and

     (c) in the case of any criminal proceeding, he had no reasonable cause to
believe his conduct was unlawful.

     (4) A corporation may not indemnify a director under this section:

     (a) in connection with a proceeding by or in the right of the corporation
in which the director was adjudged liable to the corporation; or

     (b) in connection with any other proceeding charging that the director
derived an improper personal benefit, whether or not involving action in his
official capacity, in which proceeding he was adjudged liable on the basis that
he derived an improper personal benefit.

     (5) Indemnification permitted under this section in connection with a
proceeding by or in the right of the corporation is limited to reasonable
expenses incurred in connection with the proceeding.

     Section 16-10a-903 of the Utah Code Annotated provides in relevant part as
follows:

     Unless limited by its articles of incorporation, a corporation shall
indemnify a director who was successful, on the merits or otherwise, in the
defense of any proceeding, or in the defense of any claim, issue, or matter in
the proceeding, to which he was a party because he is or was a director of the
corporation, against reasonable expenses incurred by him in connection with the
proceeding or claim with respect to which he has been successful.

<PAGE>


     Section 16-10a-907 of the Utah Code Annotated provides in relevant part as
follows:

     Unless a corporation's articles of incorporation provide otherwise:

     (1) an officer of the corporation is entitled to mandatory indemnification
under Section 16-10a-903, and is entitled to apply for court- ordered
indemnification under Section 16-10a-905, in each case to the same extent as a
director;

     (2) the  corporation  may  indemnify  and  advance  expenses to an officer,
employee,  fiduciary,  or agent of the  corporation  to the same  extent as to a
director; and

     (3) a corporation may also indemnify and advance expenses to an officer,
employee, fiduciary, or agent who is not a director to a greater extent, if not
inconsistent with public policy, and if provided for by its articles of
incorporation, bylaws, general or specific action of its board of directors, or
contract.

     Source's by-laws provide that it shall indemnify to the full extent of its
power to do so under Utah law, all directors and officers for any liability
including costs of defense reasonably incurred in connection with any action,
suit, or proceeding to which such person may be a party by reason of such
person's position with Source, if the officer or director acted in good faith
and in a manner the officer or director reasonably believed to be in, or not
opposed to, the best interests of the corporation. Consequently, Source intends
to indemnify its officers and directors to the full extent permitted by the
statute noted above.

Item 2.  Description of Property.
---------------------------------

     In 1981, Source purchased a working interest in, and became the operator
of, the property known as Bureau of Land Management Federal Oil and Gas Lease
No. U-14654 consisting of 480 acres. Located in Grand County, Utah, this is
Source's only oil and gas property. The Company has one producing well on this
lease. At the present time the Company maintains a 68.78% working interest in
the property.

     The Company utilizes the office of its President, Craig Carpenter, at no
expense.

Item 3.  Legal Proceedings.
---------------------------

     On September 22, 2000, the Securities and Exchange Commission ("SEC") filed
a complaint in the United States District Court, case no. 2:00CV 0757B, naming
Source and Timothy R. Kraft, a former officer and director of Source, as
defendants.

     On May 20, 1997, Source entered into an agreement with Timothy R. Kraft and
Point Source Energy ("Point") to engage in the business of distillate fuel
systems process plants, and in connection with that transaction issued
12,305,800 shares of common stock.

     Subsequently, Craig Carpenter, a former officer and director of Source and
a stockholder, filed a shareholder derivative suit in the United States


<PAGE>



District Court, District of Utah, case no. 2:99CV0332K, against Mr. Kraft,
Point, and Source alleging that Kraft and Point committed fraud to induce
plaintiffs to enter into the original transaction ("Carpenter Suit").

     On March 10, 2000 the District Court issued a judgment and order in the
Carpenter Suit rescinding the May 20, 1997 transaction. The judgment states that
Source be returned, as nearly as possible, to its status prior to consummation
of said transaction. This included canceling 12,305,800 shares of common stock
issued in the transaction to Kraft by Source, reinstating Craig Carpenter, Helen
G. Carpenter, and Kathy Morrison as officers and directors of Source, and the
return of 182,852 shares of Common Stock from Kraft to Carpenter, which were
originally sold directly by Carpenter to Kraft. Craig Carpenter was granted an
award against Source in the amount of $75,000 to compensate him for the benefit
he conferred on the stockholders of Source by prosecuting the action against
Kraft and Point. Source was awarded damages against Kraft in the amount of
$75,000.

     During his tenure as an officer and director of Source, Mr. Kraft issued
two press releases that the SEC alleges are false and misleading. The SEC
further alleges that the press releases were issued by Kraft in an effort to
manipulate the public market price for Source common stock in violation of
Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated
thereunder. The SEC is seeking an order enjoining Source from violating these
provisions of the Securities Exchange Act of 1934 in the future.

     In the course of the Carpenter Suit, Mr. Carpenter informed the SEC of the
conduct of Mr. Kraft, and regularly kept the SEC informed of the progress of the
case and his efforts to remove Mr. Kraft. Although Source received no monetary
or other benefit from Mr. Kraft's alleged fraud, Mr. Kraft was removed from any
position of control over Source by order of the District Court in the Carpenter
Suit, Mr. Carpenter was reinstated as an officer and director, and Mr. Carpenter
cooperated fully with the SEC in providing to it information on the Carpenter
Suit, the SEC still included Source in its lawsuit against Mr. Kraft apparently
because the press releases were issued with Source's name on them. Under these
circumstances, Source is reviewing its options for filing an answer to the
complaint filed by the SEC and defending itself against the allegations of the
SEC.

     On April 4, 2001 the Company  requested  a waiver of the  disqualifications
from the  availability  of  Regulations  A and D of the SEC in settlement of the
civil action brought by the SEC.  Subject to the grant of this requested  waiver
by the Commission under Rule 262, Source has executed and delivered a Consent to
Injunction in settlement of the  Commission's  action.  To date, the Company has
received no response from the SEC.

Item 4.  Submission of Matters to a Vote of Security Holders.
-------------------------------------------------------------

         None;

                                     PART II

Item 5.  Market for Common Equity and Related Stockholder Matters.

Market Information

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

     The Company's common stock is traded on the OTC Bulletin Board of the
National Association of Securities Dealers, Inc. ("NASD"); however, the market
for shares of the Company's common stock is extremely limited. No assurance can
be given that the present market for the Company's common stock


<PAGE>



will continue or will be maintained, and the sale of the Company's
"unregistered" and "restricted" common stock pursuant to Rule 144 as outlined
under the caption "Recent Sales of Unregistered Securities" of this Report may
have a substantial adverse impact on any such public market. See the Risk Factor
entitled "Future Sales of Common Stock," herein.

     The high and low bid prices for these shares of common stock of the Company
since that period are as follows:

                                                 Bid

Quarter ending:                         High                Low

December 31, 1999                      $0.03                $0.01

March 31, 2000                         $0.125               $0.025

April 3, thru
April 7, 2000                          $0.05                $0.025

April 10, thru
June 30, 2000                          $2.9375              $0.10
(after a 1 for 40 reverse split)

September 29, 2000                     $3.5625              $2.50

December 29, 2000                      $2.75                $2.50

March 30, 2001                         $2.50                $1.375

June 29, 2001                          $1.375               $0.90

September 38, 2001                     $1.01                $0.45

December 31, 2001                      $0.45                $0.32

          These bid prices were obtained from the National Quotation Bureau,
Inc. ("NQB") and do not necessarily reflect actual transactions, retail markups,
mark downs or commissions.

Holders
-------

          The number of record holders of the Company's common stock as of the
year ended March 1, 2002, was approximately 2,992; this number does not include
an indeterminate number of stockholders whose shares are held by brokers in
street name.

Dividends
---------

          There are no present material restrictions that limit the ability of
the Company to pay dividends on common stock or that are likely to do so in the
future. The Company has not paid any dividends with respect to its common stock,
and does not intend to pay dividends in the foreseeable future.

Recent Sales of Unregistered Securities
---------------------------------------

     Source settled its legal cost obligation to Craig Carpenter on April 13,
2000 by issuing to him 200,000 shares of restricted common stock to cancel the
$15,039 obligation.


<PAGE>



     Also on April 13, 2000 Source issued 12,500 "unregistered" and "restricted"
shares to Cletha A. Walstrand and 12,500 shares to MRF Investment & Consulting
for the acquisition of Newven Acquisition Corporation.

     On April 20, 2000 Source issued a total of 75,000 shares of "unregistered"
and "restricted" shares of common stock to Cletha A. Walstrand, MRF Investment &
Consulting and Paul Hickey for the completion of the Company's Current Report on
Form 8-K.

Item 6.  Management's Discussion and Analysis or Plan of Operation.
-------------------------------------------------------------------

     Source has been unable pursue any meaningful business operations during the
past three years because of the litigation resulting from the transaction with
T.R. Kraft and Point. The litigation was resolved by a judgment entered in March
2000. On September 22, 2000, the Securities and Exchange Commission ("SEC")
filed a complaint in the United States District Court, case no. 2:00CV 0757B,
naming Source and Timothy R. Kraft, a former officer and director of Source, as
defendants. Source believes this complaint will have to be rectified before it
will be in a position to pursue more active business operations. Currently the
Company is seeking to resolve this issue with the Securities and Exchange
Commission.

Results of Operations
---------------------

     For the fiscal year ended December 31, 2001, the Company received total
revenues of $41,833 down from $56,785 for the previous year.

     Depletion increased from $12,375 in 2001 to $14,732 in 2000.

     Total costs and expenses decreased from $21,373 in 2000 to $8,488 in 2001.
During 2000, the Company had also recorded a loss of extraordinary income from
the judgment as described in the section "Legal Proceedings".

     For the fiscal year ended December 31, 2001, the Company realized net
income of $12,160 ($0.03 per share) compared to net loss of $85,826 ($0.27 per
share) in the preceding year.

Liquidity
---------

     The Company estimates that it will be able to adequately fund the
above-referenced development and production plans, with the exception of the
acquisition of additional properties, for the next 12 months. Sources of funds
for the Company will be revenue from operations, private placement of the
Company's unregistered and restricted securities, and loans. At this time, the
Company is in contact with several funding sources. However, this plan of
operation is based upon many variables and estimates, all of which may change or
prove to be other than or different from information relied upon.

<PAGE>

Item 7.  Financial Statements.
------------------------------

            Financial Statements for the years ended December 31, 2001 and 2000

            Report of Independent Certified Public
            Accountants

            Balance Sheet
            Statements of Operations

            Statements of Stockholders' Equity

            Statements of Cash Flows

            Notes to the Consolidated Financial
            Statements


<PAGE>











                  SOURCE ENERGY CORPORATION (Formerly known as
                         Parker Energy Technology, Inc.)

                          Independent Auditors' Report
                                       and
                              Financial Statements

                                December 31, 2001












<PAGE>








                            Source Energy Corporation

                                TABLE OF CONTENTS


                                                                            Page
Independent Auditors' Report                                                 1

Balance Sheet -- December 31, 2001                                           2

Statements of Operations for the Years Ended December 31, 2001 and 2000      3

Statements of Stockholders' Equity for the Years Ended December 31, 2001     4
and 2000

Statements of Cash Flows for the Years Ended December 31, 2001 and 2000      5

Notes to  Financial Statements                                           6 -- 11

Unaudited Supplemental Information Concerning Oil and Gas Producing          12
Properties






<PAGE>










                                 INDEPENDENT AUDITORS' REPORT



The Board of Directors and Shareholders
Source Energy Corporation

We have audited the accompanying balance sheet of Source Energy Corporation,
formerly known as Parker Energy Technology, Inc. as of December 31, 2001, and
the related statements of operations, stockholders' equity, and cash flows for
the years ended December 31, 2001 and 2000. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Source Energy Corporation,
formerly known as Parker Energy Technology, Inc., as of December 31, 2001, and
the results of their operations and their cash flows for the years ended
December 31, 2001 and 2000 in conformity with accounting principles generally
accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 3 to the
financial statements, the Company has experienced losses from operations since
its inception and has not yet begun generating significant revenue which raises
substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these matters are also described in Note 3. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.



                                                              Mantyla McReynolds


Salt Lake City, Utah
Febuary 22, 2002


<PAGE>
<TABLE>
<CAPTION>



                   SOURCE ENERGY CORPORATION Formerly known as
                         Parker Energy Technology, Inc.
                                  Balance Sheet
                                December 31, 2001

                                     ASSETS

Current Assets
<S>                                                                             <C>
  Cash and cash equivalents                                                     $             49,038
  Accounts receivable                                                                          3,825
  Tax refund receivable                                                                        2,100
                                                                                  ------------------
                   Total Current Assets                                                       54,963

Property and Equipment (Note 2)
  Equipment                                                                                   13,872
  Proved oil and gas properties                                                              597,353
                                                                                  ------------------
               Total Property and Equipment                                                  611,225
       Less: Accumulated Depreciation and Depletion                                         (539,708)
                                                                                  ------------------
                Net Property and Equipment                                                    71,517
                                                                                  ------------------
                       Total Assets                                             $            126,480
                                                                                  ==================

                             LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
Current Liabilities
 Accrued liabilities                                                        $                   297
 Other current liability (Note 6)                                                            75,000
                                                                                 ------------------
                 Total Current Liabilities                                                   75,297
                                                                                 ------------------
                     Total Liabilities                                                       75,297


Stockholders' Equity (Notes 1 & 8)
  Capital Stock -- 200,000,000 shares authorized having a par value of $.00025
   per share; 404,451 shares
   issued and outstanding                                                                       101
  Additional Paid-in Capital                                                              1,244,954
  Accumulated Deficit                                                                   (1,193,872)
                                                                                 ------------------
                Total Stockholders' Equity                                                   51,183
                                                                                 ------------------
        Total Liabilities and Stockholders' Equity                             $            126,480
                                                                                 ==================
</TABLE>


                       See accompanying notes to financial statements.

                                              2

<PAGE>
<TABLE>
<CAPTION>



                   SOURCE ENERGY CORPORATION Formerly known as
                         Parker Energy Technology, Inc.
                            Statements of Operations
                 For the Years Ended December 31, 2001 and 2000



                                                                     2001               2000
                                                                     ----               ----

<S>                                                        <C>                   <C>
Revenues from Oil and Gas Activities                       $            41,833   $        56,785

Oil and Gas Producing Expense:
  Production costs                                                      16,662            16,468
  Depletion (Note 2)                                                    12,375            14,732
                                                                --------------      ------------
            Total Oil and Gas Producing Expense                         29,037            31,200

        Income/(Loss) from Oil and Gas Activities                       12,796            25,585

  General and administrative expense                                    (8,488)          (21,373)

                                                                --------------      ------------
            Net Income/(loss) from Operations                            4,308             4,212
Other Income/(Expense):
  Interest income                                                          912               101
                                                                --------------      ------------
               Total Other Income/(Expense)                                912               101
Net Income/(Loss) before income tax                                      5,220             4,313
Provision for income tax (Notes 1 & 4)                                    (100)             (100)
Extraordinary income (Note 7)                                            7,040           (90,039)
                                                                --------------      ------------
Net Income/(Loss)                                          $            12,160   $      (85,826)
                                                                ==============      ============


Profit/(Loss) per Share                                       $           0.03   $        (0.27)
                                                                ==============      ============

Weighted Average Shares Outstanding                                    404,451           319,205
                                                                ==============      ============
</TABLE>

                       See accompanying notes to financial statements.

                                              3

<PAGE>
<TABLE>
<CAPTION>



                    SOURCE ENERGY CORPORATION Formerly known
                        as Parker Energy Technology, Inc.
                       Statements of Stockholders' Equity
                 For the Years Ended December 31, 2001 and 2000





                                                               Additional                              Net
                                 Common          Common          Paid-in        Accumulated       Stockholders'
                                 Shares          Stock           Capital          Deficit            Equity
                              ------------     ----------      -----------     --------------    ---------------
<S>                              <C>         <C>            <C>              <C>              <C>
Balance, December 31, 1999       4,088,981   $      1,022   $    1,226,929   $     (1,120,206)$          107,745
Reverse split 1:40, April 10,
2000                            (3,984,530)          (996)             996                                     0
Issued common share to settle
legal fee debt, April 13, 2000     200,000             50           14,989                                15,039
Issued common shares to
acquire Newven, April 13,
2000                                25,000              6              559                                   565
Issued common shares for
services, April 20, 2000            75,000             19            1,481                                 1,500
Net Loss for the Year Ended
December 31, 2000                                                                     (85,826)           (85,826)
                              ------------                     -----------     --------------    ---------------
Balance, December 31, 2000         404,451            101        1,244,954         (1,206,032)            39,023

Net Income for the Year Ended
December 31, 2001                                                                      12,160             12,160
Balance, December 31, 2001         404,451 $          101  $     1,244,954 $       (1,193,872)$           51,183
                              ============     ==========      ===========     ==============    ===============

</TABLE>



                 See accompanying notes to financial statements.



                                        4

<PAGE>
<TABLE>
<CAPTION>



                    SOURCE ENERGY CORPORATION Formerly known
                        as Parker Energy Technology, Inc.
                            Statements of Cash Flows
                 For the Years Ended December 31, 2001 and 2000






                                                                                  2001         2000
                                                                                -------       ------
<S>                                                                      <C>             <C>
Cash Flows Provided by/(Used for) Operating Activities
Net profit/(loss)                                                        $      12,160   $     (85,826)
Adjustments to reconcile net income to net cash provided by
 operating activities:
    Depreciation and depletion                                                  14,055          14,872
    Legal services in acquisition of Newven                                          0             565
    Issued common stock for professional services                                    0           1,500
    Extraordinary loss on legal settlement                                           0          90,039
    (Increase)/decrease in accounts receivable                                   1,849            (590)
    (Increase)/decrease in tax refund receivable                                (2,100)              0
    Increase/(decrease) in current liabilities                                    (149)            346
                                                                           -----------      ----------
Net Cash Used for Operating Activities                                          25,815          20,906
                                                                           -----------      ----------

Cash Flows Provided by/(Used for) Financing Activities
  Purchase of fixed assets                                                           0          (8,396)
                                                                           -----------      ----------
Net Cash Provided by Financing Activities                                            0          (8,396)
                                                                           -----------      ----------

Net Increase/(Decrease) in Cash                                                 25,815          12,510
Beginning Cash Balance                                                          23,223          10,713
                                                                           -----------      ----------

Ending Cash Balance                                                      $      49,038   $      23,223
                                                                           ===========      ==========


Supplemental Disclosure of Cash Flow Information:
  Cash paid during the year for income taxes                             $        100  $           100
  Cash paid during the year for interest                                           -0-             -0-


</TABLE>


                 See accompanying notes to financial statements.

                                        5

<PAGE>


                    SOURCE ENERGY CORPORATION Formerly known
                        as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2001

Note 1         ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
               ------------------------------------------------------------

               (a)    Organization

               The Company was originally incorporated under the name Exit, Inc.
               in accordance with the laws of the State of Utah on January 30,
               1981. In April of 1984, the Company changed its name to Parker
               Energy Technology, Inc. From its inception until May 20, 1997,
               the Company had been in the business of oil and gas exploration
               and production activities. Currently, the Company has one
               producing well, located in Grand County, Utah. On May 20, 1997,
               the Company effected a reverse split of its outstanding shares
               from 81,637,100 to 1,632,742. Simultaneous thereto, the Company
               entered into an agreement with an individual to engage in the
               business of distillate fuel systems process plants and changed
               its name to Source Energy Corporation (Source). On March 10, 2000
               a U.S. district court judge rescinded the May 20, 1997 agreement
               and ordered that the Company be returned, as nearly as possible,
               to its status prior to consummation of said agreement. This
               included cancelling 12,305,800 shares of common stock issued in
               the transaction. As nearly as possible, these financial
               statements have been prepared in accordance with the court's
               order.

               The financial statements of the Company have been prepared in
               accordance with U.S. generally accepted accounting principles.
               The following summarizes the more significant of such policies.

               (b)    Proved Oil and Gas Properties

               The Company utilizes the successful efforts method of accounting
               for its oil and gas producing activities. This method of
               accounting requires the capitalization of exploration and
               development activities related to the discovery of producing
               properties and the expensing of costs related to the discovery of
               unsuccessful exploration efforts.

               Depletion of oil and gas properties is provided by utilizing the
               units of production method. The cost of the property ($597,353)
               is divided by the total estimated reserves (128,740 barrels)
               resulting in a unit depletion amount of $4.64.

               (c)    Property and Equipment

               Equipment is stated at cost. Depreciation is provided using the
               straight-line method over a five year period. Maintenance and
               repair costs are charged to expense as incurred.

                                        6

<PAGE>


                    SOURCE ENERGY CORPORATION Formerly known
                        as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2001

Note 1  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  [continued]
        ------------------------------------------------------------------------

               (d)    Income Taxes

               The Company applies the provisions of Statement of Financial
               Accounting Standards No. 109 [the Statement], Accounting for
               Income Taxes. The Statement requires an asset and liability
               approach for financial accounting and reporting for income taxes,
               and the recognition of deferred tax assets and liabilities for
               the temporary differences between the financial reporting basis
               and tax basis of the Company's assets and liabilities at enacted
               tax rates expected to be in effect when such amounts are realized
               or settled. The cumulative effect of this change in accounting
               for income taxes as of December 31, 2001 is $0 due to the
               valuation allowance established as described in Note 4.

               (e)    Net Income Per Common Share

               In accordance with Financial Accounting Standards No. 128,
               "Earnings Per Share," basic loss per common share is computed
               using the weighted average number of common shares outstanding.

               (f)    Cash and Cash Equivalents

               For purposes of the statements of cash flows, the Company
               considers cash on deposit in the bank and in its money market
               account to be cash.

               (g)    Use of Estimates in Preparation of Financial Statements

               The preparation of financial statements in conformity with U.S.
               generally accepted accounting principles requires management to
               make estimates and assumptions that affect the reported amounts
               of assets and liabilities, disclosure of contingent assets and
               liabilities at the date of the financial statements, and the
               reported amounts of revenues and expenses during the reporting
               period. Actual results could differ from those estimates.



                                        7

<PAGE>


                    SOURCE ENERGY CORPORATION Formerly known
                        as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2001

Note 2         PROPERTY AND EQUIPMENT
               ----------------------

               Oil and Gas Producing Activities

               During 1981, the Company purchased a working interest in, and
               became the operator of, the property known as Bureau of Land
               Management Federal Oil and Gas Lease No. U-14654 consisting of
               480 acres. Located in Grand County, Utah, this is the Company's
               only oil and gas property. The Company has one producing well on
               this lease. At the present time the Company maintains a 68.78%
               working interest in the property.

               Information on capitalized costs relating to oil and gas
               producing activities is presented below:
<TABLE>

<S>                                                                             <C>
                      Proved Oil and Gas Properties                             $  597,353
                      Accumulated Depletion ($12,375 during 2001 and
                                                   $14,732 during 2000)           (532,413)
                                                                                   --------
                      Net Capitalized Costs                                     $   64,940
                                                                                   =========

               Other Property and Equipment
                      Equipment at cost                                         $   13,872
                      Accumulated depreciation($1,680 during 2001 and
                                                    $140 during 2000)               (7,295)
                                                                                   -------
                      Net property and equipment                                $    6,577
                                                                                   ========
</TABLE>


Note 3         LIQUIDITY

               The Company has accumulated losses from inception through
               December 31, 2001 amounting to $1,193,872. The Company's ability
               to achieve a level of consistent profitable operations and/or
               additional financing may impact the Company's ability to continue
               as it is presently organized. Management intends to raise
               additional capital through private or registered placement, debt
               or other offerings.


Note 4         INCOME TAXES

               The Company complies with the provisions of Statement of
               Financial Accounting Standards No. 109 [the Statement],
               Accounting for Income Taxes. No provision has been made for
               income taxes in the financial statements because the Company has
               accumulated substantial losses since inception.

                                                  8

<PAGE>


                    SOURCE ENERGY CORPORATION Formerly known
                        as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2001

Note 4         INCOME TAXES [continued]
               -------------

               The tax effects of temporary differences that give rise to
               significant portions of the deferred tax asset at December 31,
               2001 have no impact on the financial position of the Company. A
               valuation allowance is provided when it is more likely than not
               that some portion of the deferred tax asset will not be realized.
               Because of the lack of taxable earnings history, the Company has
               established a valuation allowance for all future deductible
               temporary differences.

Deferred tax assets                               Balance          Tax      Rate
---------------------------------------------  ------------- --------------- ---
   Federal loss carryforward (expires through 2021) $540,021        $183,607 34%
   State loss carryforward (expires through 2016)   $267,492         $13,375 5%
   Valuation allowance                                            ($196,982)
                                                             ---------------
        Deferred tax asset                                                $0
                                                             ===============

               The valuation allowance has decreased $42,176 from $239,158 in
               the prior year. The current year provision for income tax
               represents the minimum franchise tax due to the State of Utah.


Note 5         SIGNIFICANT CONCENTRATIONS OF CREDIT RISK
               -----------------------------------------

               The Company's primary operations have been located in the
               geographic region of Grand County, Utah. The accounts receivable
               of the Company are unsecured. Should the primary customer of the
               Company, a wholesale oil purchaser, default on its payment, the
               Company would be required to seek relief as an unsecured
               creditor. If the current purchaser of the Company's oil
               production were to cease to do business with the Company, it is
               reasonably certain that other purchasers would be readily
               available in the market place.


Note 6         RELATED-PARTY TRANSACTIONS

               The president of the Company (also a shareholder) is also a 16.9%
               working interest owner in the Company's lease located in Grand
               County, Utah.

               The Company has recorded a liability as part of a legal
               settlement (see Note 7). The $75,000 is due to a shareholder and
               officer of the Company. The balance is non-interest bearing and
               payable on demand.



                                        9

<PAGE>


                    SOURCE ENERGY CORPORATION Formerly known
                        as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2001

Note 7         LEGAL SETTLEMENT

               On March 10, 2000, a U.S. district court judge rescinded the May
               20, 1997 agreement referenced in Note 1, and ordered that the
               Company be returned, as nearly as possible, to its status prior
               to consummation of said agreement. The Court further ordered that
               the Company pay the plaintiff in the legal action his attorneys
               fees in the amount of $15,039 and an award of $75,000 to
               compensate him for the benefit conferred on Source Energy
               Corporation shareholders in prosecuting this action. The
               plaintiff in this case was returned by the Court to the
               presidency of Source Energy Corporation, a position he held prior
               to the May 20, 1997 agreement.

               The Court also ordered that the other defendants in the case,
               T.R. Kraft, and Point Source Energy Corporation, an Oregon
               corporation, to pay an award to the Company in the amount of
               $225,000. The Company does not intend to record this amount as a
               receivable on its books because the defendants' whereabouts are
               unknown and ability to collect from them is in question.

               During 2001 the Company received a refund from the Utah State Tax
               Commission for severance taxes previously overpaid. The refund
               amounted to $7,040 and is presented as extraordinary income due
               its unusual and infrequent nature.


Note 8         COMMON STOCK

               The Company effected a 1 for 40 reverse split, which became
               effective April 10, 2000.

               On April 13, 2000, the Company issued 200,000 shares to its
               President, who is also a shareholder, in exchange for a debt
               reduction of $15,039.

               On April 20, 2000, the Company issued 75,000 shares of common
               stock for professional services, valued at $1,500.

                                       10

<PAGE>


                    SOURCE ENERGY CORPORATION Formerly known
                        as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2001

Note 9                ACQUISITION/MERGER

               On April 13, 2000, the Company acquired Newven Acquisition
               Corporation, A Nevada Corporation ("Newven"), as a wholly owned
               subsidiary through a stock for stock exchange. Immediately
               following the exchange, the Company and Newven entered into a
               Plan of Merger pursuant to which Newven was merged with the
               Company. All of Newven's outstanding stock (500,000 shares) was
               exchanged for 25,000 shares of the Company's restricted common
               stock. Newven's assets at the time of the merger were $565 in
               cash; there were no liabilities. The acquisition has been
               accounted for as a purchase. Newven has had minimal operations;
               all activity has been combined and presented since the
               acquisition date.


Note 10        OTHER LEGAL MATTER
               ------------------

               On September 22, 2000, the Securities and Exchange Commission
               ("SEC") filed a complaint in the United States District Court,
               naming Source Energy Corporation, with the intent of
               disqualifying the Company from the availability of Regulations A
               and D. The Company has responded to the SEC opposing the
               complaint. As of the completion of these financial statements, no
               formal resolution has been reached.







                                       11

<PAGE>


                    SOURCE ENERGY CORPORATION Formerly known
                        as Parker Energy Technology, Inc.
                       Unaudited Supplemental Information
                        Oil and Gas Producing Activities
                                December 31, 2001


        Reserve Quantity Information (Unaudited)

        Proved Developed Reserves:
          Beginning of year                                        16,666
          Production                                              ( 2,667)
                                                                   -------
          End of  year                                             13,999
                                                                   ======

        Note: The Company has previously drilled two other dry holes on the
        lease where these proved reserves are located. Since there are no
        additional known reserves, the Company has not estimated proved
        undeveloped reserves.


        Standardized Measure of Discounted Future Net Cash Flows and Changes
        Therein Relating to Proved
        --------------------------
        Oil and Gas Reserves at December 31, 2001 (Unaudited)

        Future cash inflows *                                      $   157,489
        Future production and development costs*                     (  87,494)
        Future income tax expenses**                                        --
                                                                     -----------
        Future net cash flows                                           69,995

        10% annual discount for estimated timing of cash flows       (  32,530)
                                                                     -----------

        Standardized measure of discounted future net cash flows   $    37,465
                                                                     ===========


        Note:  There have been no principal sources of change for the year
        ended December 31, 2001.


        * Future net cash flows were computed using year-end prices and costs,
        and year-end statutory tax rates that related to existing proved oil and
        gas reserves in which the Company has mineral interests.

        ** Due to large net operating loss carry forwards, the Company (under
        its present organizational structure) does not anticipate paying income
        taxes on the subject reserves.



                                       12

<PAGE>

Item 8.  Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
---------------------

          None; the Company continues to use Mantyla McReynolds as the auditor
for the Company and audited the financial statements that accompany this Report.

                                    PART III

Item 9.  Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act.


Identification of Directors and Executive Officers

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

           The following table sets forth the names of all current directors and
executive officers of the Company. These persons will serve until the next
annual meeting of stockholders (to be held at such time as the Board of
Directors shall determine) or until their successors are elected or appointed
and qualified, or their prior resignation or termination.

<TABLE>
<CAPTION>
                                              Date of         Date of
                             Positions        Election or     Termination
  Name                        Held            Designation (1) or Designation

<S>                           <C>               <C>               <C>

Craig Carpenter               Director,         3/10/00           *
3040 Granite Meadow Lane,     President
Sandy Utah 84092

Helen Carpenter               Director,         3/10/00           *
3040 Granite Meadow Lane      Vice President
Sandy Utah 84092

Kathleen L. Morrison          Director,         3/10/00           *
5525 S. 900 E. #110           Secretary
Salt Lake City, UT  84117

</TABLE>

     *  These persons presently serve in the capacities indicated opposite their
        respective names.
<PAGE>

Term of Office
--------------

         The term of office of the current directors shall continue until the
annual meeting of stockholders, which is to be held at such time as the Board of
Directors shall determine. The annual meeting of the Board of Directors
immediately follows the annual meeting of stockholders, at which officers for
the coming year are elected.

Business Experience
-------------------

      Craig Carpenter, Director and President, age 58 was born and raised in
Salt Lake City, Utah, where he attended East High School. Aside from his
involvement in Source, Mr. Carpenter has been retired for the past seven years.

      Helen G. Carpenter, Director and Vice President, age 51, recently retired
after 30 years at US West Communications. The last position she held at US West
was Manager of Computer Operations.

      Kathleen L. Morrison, Director and Secretary, age 45, has spent the past
eight years as the office manger for two entities. For seven years, she was
the editor of "Super Group," a vertical market computer magazine targeting
HP3000 users.  Mrs. Morrison received a B.A. degree from Colorado State
University in 1978.

     The directors of Source hold no other directorship in any other reporting
company, except for Kathleen L. Morrison who has served since March 1999 as a
director and secretary of Cardiff International, a Colorado corporation. All
directors hold office until the next annual meeting of stockholders and until
their successors are duly elected and qualified.

Committees

          There are no established committees.

Family Relationships

          Helen Carpenter and Craig Carpenter are Husband and Wife.


Involvement in Certain Legal Proceedings
----------------------------------------

          Except as indicated below and to the knowledge of management, during
the past five years, no present or former director, person nominated to become a
director, executive officer, promoter or control person of the Company:

          (1) Was a general partner or executive officer of any business by or
against which any bankruptcy petition was filed, whether at the time of such
filing or two years prior thereto;

          (2)     Was convicted in a criminal proceeding or named the subject
of a pending criminal proceeding (excluding traffic violations and other minor
offenses);
<PAGE>

          (3)     Was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent
jurisdiction, permanently or temporarily enjoining him from or otherwise
limiting, the following activities:

               (i)     Acting as a futures commission merchant, introducing
                       broker, commodity trading advisor, commodity pool
                       operator, floor broker, leverage transaction merchant,
                       associated person of any of the foregoing, or as an
                       investment adviser, underwriter, broker or dealer in
                       securities, or as an affiliated person, director or
                       employee of any investment company, bank, savings and
                       loan association or insurance company, or engaging in
                       or continuing any conduct or practice in connection
                       with such activity;

              (ii)     Engaging in any type of business practice; or

             (iii)     Engaging in any activity in connection with the purchase
                       or sale of any security or commodity or in connection
                       with any violation of federal or state securities laws or
                       federal commodities laws;

          (4) Was the subject of any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any federal or state authority barring,
suspending or otherwise limiting for more than 60 days the right of such person
to engage in any activity described above under this Item, or to be associated
with persons engaged in any such activity;

          (5) Was found by a court of competent jurisdiction in a civil action
or by the Securities and Exchange Commission to have violated any federal or
state securities law, and the judgment in such civil action or finding by the
Securities and Exchange Commission has not been subsequently reversed,
suspended, or vacated; or

          (6) Was found by a court of competent jurisdiction in a civil action
or by the Commodity Futures Trading Commission to have violated any federal
commodities law, and the judgment in such civil action or finding by the
Commodity Futures Trading Commission has not been subsequently reversed,
suspended or vacated.

Compliance with Section 16(a) of the Exchange Act
-------------------------------------------------

          The Company's directors, executive officers and 10% stockholders have
filed statements of beneficial ownership of securities under Section 16(a) of
the Exchange Act.

Item 10. Executive Compensation.

Cash Compensation
-----------------

          None of the current Officers and Directors received any compensation
during the year ended December 31, 2000.


<PAGE>

Employment Contracts
--------------------

          There are presently no employment contracts relating to any member of
management; however, depending upon the Company's operations and requirements,
the Company may offer long term contracts to directors, executive officers or
key employees in the future.

Termination of Employment and Change of Control Arrangement
------------------------------------------------------------

          None; not applicable.

Item 11. Security Ownership of Certain Beneficial Owners and Management.
------------------------------------------------------------------------

Security Ownership of Certain Beneficial Owners
-----------------------------------------------

          The following tables set forth the share holdings of the Company's
directors and executive officers and those persons who own more than 5% of the
Company's common stock as of the date hereof, with these computations being
based upon 404,451 shares of common stock being outstanding.

                 Directors and Executive Officers

<TABLE>
<CAPTION>

                                                                    Number of Shares                 Percent
Name and Address(1)                          Title                                         Beneficially Owned  of Class

<S>                                         <C>                     <C>                         <C>
Craig Carpenter                             President                       209,832             51.8
3040 Granite Meadow Lane                    and Director
Sandy Utah 84092


Helen G. Carpenter                          Vice President                      -0- (1)           -0-
3040 Granite Meadow Lane                    and Director
Sandy Utah 84092

Kathleen L. Morrison                        Secretary                           -0-               -0-
5525 S. 900 East, Ste.                      and Director
110
Salt Lake City, UT
84117

All Officers &                                                              209,832              51.8
Directors
as a group
beneficially
own

</TABLE>

(1) Helen Carpenter is the spouse of Craig Carpenter, so she may be deemed to
have shared voting and investment control with respect to the shares of Common
Stock owned by Craig Carpenter.
<PAGE>

                    Five Percent Stockholders

<TABLE>
<CAPTION>

                                                         Number of Shares        Percent
Name and Address                        Title           Beneficially Owned      of Class
<S>                                     <C>              <C>                      <C>

Craig Carpenter                         President                209,831           51.8
3040 Granite Meadow Lane                and Director
Sandy, Utah  84092


Cletha Walstrand                        Shareholder               45,000           11.1
8 East Broadway, Suite 620
Salt Lake City, UT  84111

MRF Investment Consultants              Shareholder               41,000           10.1
8 East Broadway, Suite 620
Salt Lake City, UT  84111


</TABLE>

Changes in Control

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

         To the knowledge of the Company's management, there are no present
arrangements or pledges of the Company's securities which may result in a change
in control of the Company. See the foregoing tables regarding "Directors and
Executive Officers" and "Five Percent Stockholders."

Item 12. Certain Relationships and Related Transactions.
--------------------------------------------------------

Transactions with Management and Others

         The Company has recorded a liability as part of a legal settlement for
$75,000, which is due to a Mr. Craig Carpenter, a shareholder and officer of the
Company. The balance is non-interest bearing and payable on demand.


<PAGE>




         The Court further ordered that the Company pay the plaintiff in the
legal action his attorneys fees in the amount of $15,039 and an award of $75,000
to compensate him for the benefit conferred on Source Energy Corporation
shareholders in prosecuting this action.

Certain Business Relationships

         Other than the transactions disclosed in the previous section, there
have been no material transactions, series of similar transactions or currently
proposed transactions, to which the Company or any of its subsidiaries was or is
to be a party, in which the amount involved exceeds $60,000 and in which any
director or executive officer or any security holder who is known to the Company
to own of record or beneficially more than 5% of the Company's common stock, or
any member of the immediate family of any of the foregoing persons, had a
material interest.

Indebtedness of Management

         Other than the transactions disclosed in the previous section, there
have been no material transactions, series of similar transactions or currently
proposed transactions, to which the Company or any of its subsidiaries was or is
to be a party, in which the amount involved exceeds $60,000 and in which any
director or executive officer or any security holder who is known to the Company
to own of record or beneficially more than 5%of the Company's common stock, or
any member of the immediate family of any of the foregoing persons, had a
material interest.

Parents of the Issuer

         Except to the extent that Craig Carpenter may be deemed to be a parent
of the Company by virtue of his ownership of a majority of its issued and
outstanding shares, the Company has no parents.

Transactions with Promoters

         Other than the Note, there have been no material transactions, series
of similar transactions, currently proposed transactions, or series of similar
transactions, to which the Company or any of its subsidiaries was or is to be a
party, in which the amount involved exceeds $60,000 and in which any promoter or
founder or any member of the immediate family of any of the foregoing persons,
had a material interest.

Item 13. Exhibits and Reports on Form 8-K.

Reports on Form 8-K

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

          None

<TABLE>
<CAPTION>
                                                                 Exhibit
Exhibits*                                                        Number
--------                                                         -------


<S>                                                             <C>

(i)

Financial Data Schedule                                           27

(ii)                                                       Where Incorporated
                                                            In This Report
                                                           ------------------
None.
</TABLE>
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

                                             SOURCE ENERGY CORPORATION

Date: /S/ 3/9/02                                By /S/ CRAIG CARPENTER
     ----------------                           ---------------------------
                                                Craig Carpenter, President and
                                                Director

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
this Report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated:

                                             SOURCE ENERGY CORPORATION


Date: /S/ 3/9/02                              By /S/ CRAIG CARPENTER
     ----------------                           ---------------------------
                                                Craig Carpenter, President and
                                                Director

Date: /S/ 3/12/02                             By /S/ KATHLEEN L. MORRISON
     ----------------                           ---------------------------
                                                Kathleen L. Morrison, Secretary
                                                Director