<PAGE>




                    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, 2000

[ ]     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, 2000 -
$56,785.

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, 2001 -  $143,851.  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 $1.375

                   (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, 2001

                                     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 two 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 two
years to maintaining production from our one producing oil well in Grand County.
Revenue  from  oil  production  in  2000  and  1999  was  $56,785  and  $26,043,
respectively.  The increase in revenue from fiscal year 1999 to fiscal year 2000
is attributable primarily to rising 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.

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

          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, 2001, 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, 2000, the Company  received total
revenues of $56,785 up from $26,043 for the previous year.

        Depletion increased from $8,733 in 1999 to $14,732 in 2000.

        Total  costs and  expenses  increased  from $5,125 in 1999 to $21,373 in
2000. The Company also recorded a loss of extraordinary income from the judgment
as described in the section "Legal Proceedings".

           For the fiscal year ended December 31, 2000,  the Company  incurred a
net loss of $85,826  ($0.27 per share)  compared to net income of $4,775  ($0.05
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, 2000 and 1999

            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, 2000


<PAGE>








                            Source Energy Corporation

                                TABLE OF CONTENTS

                                                                         Page

Independent Auditors' Report                                              1

Balance Sheet -- December 31, 2000                                        2

Statements of Operations for the Years Ended December 31, 2000 and        3
1999.

Statements of Stockholders' Equity for the Years Ended December 31, 2000  4
and 1999.

Statements of Cash Flows for the Years Ended December 31, 2000 and        5
1999.

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, 2000, and
the related statements of operations,  stockholders'  equity, and cash flows for
the years ended December 31, 2000 and 1999.  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 generally accepted auditing standards.
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, 2000, and
the  results  of their  operations  and their  cash  flows  for the years  ended
December 31, 2000 and 1999 in  conformity  with  generally  accepted  accounting
principles.

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 the 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
March 2, 2001


<PAGE>
<TABLE>
<CAPTION>



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

                                  Balance Sheet
                                December 31, 2000

                                     ASSETS

<S>                                                                                              <C>
Current Assets

  Cash and cash equivalents                                                                      $                 23,223
  Accounts receivable                                                                                               5,674
                                                                                                    ----------------------
                          Total Current Assets                                                                     28,897

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                                                       (525,653)
                                                                                                    ----------------------
                       Net Property and Equipment                                                                  85,572
                                                                                                    ----------------------
                              Total Assets                                                       $                114,469
                                                                                                    ======================

                                       LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities
Current Liabilities

 Accrued liabilities                                                                        $                        446
 Other current liability (Note 6)                                                                                 75,000
                                                                                                   ---------------------
                       Total Current Liabilities                                                                  75,446
                                                                                                   ---------------------
                           Total Liabilities                                                                      75,446


Stockholders' Equity (Notes 1 & 8)
  Capital Stock -- 200,000,000  shares  authorized having a par value of $.00025
   per share; 329,451 shares

   issued and outstanding                                                                                            101
  Additional Paid-in Capital                                                                                   1,244,954
  Accumulated Deficit                                                                                        (1,206,032)
                                                                                                   ---------------------
                      Total Stockholders' Equity                                                                  39,023
                                                                                                   ---------------------
              Total Liabilities and Stockholders' Equity                                        $                114,469
                                                                                                   =====================

</TABLE>

                 See accompanying notes to financial statements.
<PAGE>
<TABLE>
<CAPTION>

                       SOURCE ENERGY CORPORATION Formerly
                     known as Parker Energy Technology, Inc.
                            Statements of Operations
                 For the Years Ended December 31, 2000 and 1999

                                                                                          2000                   1999
                                                                                          -----                  ----
<S>                                                                     <C>                        <C>
Revenues from Oil and Gas Activities                                    $               56,785     $          26,043

Oil and Gas Producing Expense:

  Production costs                                                                      16,468                 7,317
  Depletion (Note 2)                                                                    14,732                 8,733
                                                                              -----------------       ---------------
                  Total Oil and Gas Producing Expense                                    31,200                16,050

               Income/(Loss) from Oil and Gas Activities                                 25,585                 9,993

  General and administrative expense                                                   (21,373)               (5,125)

                                                                              -----------------       ---------------
                   Net Income/(loss) from Operations                                      4,212                 4,868
Other Income/(Expense):

  Interest income                                                                          101                     7
                                                                              -----------------       ---------------
                     Total Other Income/(Expense)                                          101                     7
Net Income/(Loss) before income tax                                                      4,313                 4,875
Provision for income tax (Notes 1 & 4)                                                    (100)                 (100)
Extraordinary income (Note 7)                                                          (90,039)                   -0-
                                                                              -----------------       ---------------
Net Income/(Loss)                                                       $              (85,826)    $            4,775
                                                                              =================       ===============


Profit/(Loss) per Share                                                     $            (0.27)    $             0.05
                                                                              =================       ===============

Weighted Average Shares Outstanding                                                     319,205               104,451
                                                                              =================       ===============
</TABLE>

                 See accompanying notes to financial statements.




<PAGE>
<TABLE>
<CAPTION>



                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                       Statements of Stockholders' Equity
                 For the Years Ended December 31, 2000 and 1999





                                                                              Additional                                    Net
                                        Common               Common             Paid-in            Accumulated         Stockholders'
                                        Shares                Stock             Capital              Deficit              Equity
                                    ---------------       ------------      --------------      -----------------  -----------------
<S>                                       <C>          <C>                <C>                 <C>                   <C>
Balance, December 31, 1998                4,088,981    $         1,022    $      1,226,929    $       (1,124,981)   $       102,970
Net Loss for the Year Ended
December 31, 1999                                                                                           4,775             4,775
                                    ---------------       ------------      --------------      -----------------    ---------------
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 Income 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
                                    ===============       ============      ==============      =================      =============

</TABLE>



                 See accompanying notes to financial statements.



<PAGE>
<TABLE>
<CAPTION>



                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                            Statements of Cash Flows
                 For the Years Ended December 31, 2000 and 1999

                                                                                               2000                 1999
                                                                                               ----                 ----
<S>                                                                                      <C>                  <C>
Cash Flows Provided by/(Used for) Operating Activities

Net loss                                                                                 $      (85,826)     $          4,775
Adjustments to reconcile net income to net cash provided by
 operating activities:
    Depreciation and depletion                                                                    14,872                8,732
    Legal services in acquisition of Newven                                                          565
    Issued common stock for professional services                                                  1,500
    Extraordinary loss on legal settlement                                                        90,039
    (Increase)/decrease in accounts receivable                                                     (590)              (5,084)
    Increase/(decrease) in current liabilities                                                       346                  100
                                                                                           -------------        -------------
Net Cash Used for Operating Activities                                                            20,906                8,523
                                                                                           -------------        -------------

Cash Flows Provided by/(Used for) Financing Activities

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

Net Increase/(Decrease) in Cash                                                                   12,510                8,523
Beginning Cash Balance                                                                            10,713                2,190
                                                                                           -------------        -------------

Ending Cash Balance                                                                      $        23,223     $         10,713
                                                                                           =============        =============


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.




<PAGE>


                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2000

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 judge's order.

                  The financial  statements of the Company have been prepared in
                  accordance with 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.

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




<PAGE>


                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2000

                  (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,  2000  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
                  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, 2000

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:

Proved Oil and Gas Properties                                         $  597,353
Accumulated Depletion ($14,732 during 2000 and
                       $8,732 during 1999)                   (520,038)
                                                                        --------
Net Capitalized Costs                                                $    77,315
                                                                        ========

Other Property and Equipment

Equipment at cost                                                    $    13,872
Accumulated depreciation($140 during 2000)                               (5,616)
                                                                         -------
   Net property and equipment                                       $      8,256
                                                                         =======


Note 3            LIQUIDITY

                  The Company has  accumulated  losses  from  inception  through
                  December  31, 2000  amounting  to  $1,206,032.  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  adopted the  provisions of Statement of Financial
                  Accounting  Standards No. 109 [the Statement],  Accounting for
                  Income Taxes,  during 1993. Prior years' financial  statements
                  have  not  been  restated  to  apply  the  provisions  of  the
                  Statement.  No provision has been made for income taxes in the
                  financial  statements  because  the  Company  has  accumulated
                  substantial losses since inception.




<PAGE>


                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2000

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,
                  2000 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
--------------------------------------------- ----------  -----------  --------
   Loss carryforward(expires through 2020)     $613,226    $239,158      39%
   Valuation allowance                                    ($239,158)
                                                          -----------
        Deferred tax asset                                       $0
                                                          ===========

                  The valuation allowance has increased $33,472 from $205,686 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.   Since  its
                  reorganization,  the  Company  seeks a worldwide  market.  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.

Note 7            LEGAL SETTLEMENT



<PAGE>


                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2000

                  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.

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.

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


<PAGE>


                            SOURCE ENERGY CORPORATION
                Formerly known as Parker Energy Technology, Inc.
                          Notes to Financial Statements
                                December 31, 2000

                  in the United States District Court, naming Source Energy
                  Corporation and Timothy R. Kraft, a former officer and
                  director of the Company, as defendants.

                  The SEC has  included  the Company in its lawsuit  against Mr.
                  Kraft,  apparently because press releases were issued with its
                  name on  them.  Under  these  circumstances,  the  Company  is
                  reviewing  its options  for filing an answer to the  complaint
                  filed by the SEC and defending  itself against the allegations
                  of the SEC.




<PAGE>


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

                                December 31, 2000

         Reserve Quantity Information (Unaudited)

         Proved Developed Reserves:
           Beginning of year                                          19,842
           Production                                                ( 3,176)
                                                                      -------
           End of  year                                               16,666
                                                                      ======

         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, 2000
         (Unaudited)
         -----------------------------------------------------

         Future cash inflows *                                    $   413,014
         Future production and development costs*                    (130,614)
         Future income tax expenses**                                      --
                                                                    ---------
         Future net cash flows                                        282,400

         10% annual discount for estimated timing of cash flows      (131,246)
                                                                     --------

         Standardized measure of discounted future net cash flows $   151,154
                                                                     ========


         Note:  There have been no principal sources of change for the year
         ended December 31, 2000.


         * 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.


<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.

Term of Office

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

         The term of office of the current directors shall continue until the



<PAGE>




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 57 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 50, 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 44, 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);

          (3)     Was the subject of any order, judgment or decree, not



<PAGE>




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               45,000            11.1
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: MARCH 29, 2001                           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: MARCH 29, 2001                          By /S/ CRAIG CARPENTER
     ----------------                           ---------------------------
                                                Craig Carpenter, President and
                                                Director

Date: MARCH 30, 2001                          By /S/ KATHLEEN L. MORRISON
     ----------------                           ---------------------------
                                                Kathleen L. Morrison, Secretary
                                                Director

Date: MARCH 30, 2001                          By /S/ HELEN G. CARPENTER
     ----------------                           ---------------------------
                                                Helen G. Carpenter, Vice
                                                President and Director