SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

[ X ]  QUARTERLY  REPORT  PURSUANT  TO  SECTION 13 OR 15 (D) OF THE SECURITIES
       EXCHANGE  ACT  OF  1934  FOR  THE  QUARTER  ENDED  DECEMBER  31,  1998

OR  [   ]  Transition  Report  Under  Section  13  or  15  (d) of the Securities
Exchange  Act  of  1934 For  the  transition  period  ________,

Commission  File  No.  0-17213

                                LOCH HARRIS, INC.
                                -----------------
        (Exact name of small business issuer as specified in its charter)

                   Nevada                                87-0418799
         -------------------------                    ----------------
      (State or other jurisdiction of                 (I.R.S.Employer
       incorporation or organization)                Identification No.)


                                14205 Burnet Rd.
                                ----------------
                    (Address of principal executive offices)

                               Austin, Texas 78728
                               -------------------
                     (Address of previous executive offices)

                                 (512) 328-7808
                                 --------------
                (Issuer's telephone number, including area code)

Securities  registered  pursuant  to  Section  12(b)  of  the  Act:  None
Securities  registered  pursuant  to  Section  12(g)  of  the  Act:

                          Common Stock $0.01 Par Value
                          ----------------------------
                                (Title of Class)

Indicate  by check mark whether the Issuer (1) has filed all reports required to
be  filed  by  Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements  for  the  past  90  days.   YES  [  ]  NO  [ X ]

The  aggregate  market  value of the voting common equity held by non-affiliates
computed  by  reference to average bid and asked price of such common equity, as
of  March 15, 1999 is $5,067,096.  On this date approximately 202,683,836 shares
were  held  by  non-affiliates.

 As  of March 15, 1999, the issuer had 232,183,836 shares of its $0.01 par value
common  stock  outstanding.

Transitional  Small  Business  Disclosure  Format:    YES[  ]    NO  [X]

                                      1
<PAGE>
                                   FORM 10-QSB

                                     PART I

ITEM  1  -  FINANCIAL  STATEMENTS

See  Exhibit  A.


ITEM  2  -  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION

Loch  Harris, Inc. (the "Company") currently operates free of any long-term debt
with minimal cash requirements. In order to continue development of its products
and  expansion  of  its  operations,  the  Company  will  be  required  to raise
additional  funds  during  the  next  twelve  months.  The  Company  anticipates
obtaining  operating  funds through additional significant capital contributions
by  interested  investors.  The Company plans to continue product development in
each  of its subsidiary companies and continuously searches for opportunities to
acquire  other  state-of-the-art-technologies.

During  1998,  Chemical  Detection Technology, Inc., a subsidiary established in
July  of  1997,  expanded  the  Company's  operations  into  chemical  detection
applications.  These  operations  are  based  upon the remote sensing technology
developed  by  Dr.  Henry  Blair.

Another  subsidiary  of  the  Company,  AgraTech  International, Inc., under the
direction  of its President Charles Blackwell, oversees the Tuli cattle breeding
program  and  development  and  marketing for the solar pumps.  During 1998, the
Company  obtained  36  head  of  Tuli  cattle  and  moved  them  to  a  ranch in
Fredericksburg,  Texas.  Also, the solar pump operation moved to Fredericksburg,
Texas  from  Phoenix, Arizona.  The Company currently contracts with Eply of San
Angelo,  Texas  to  build  the  solar  pump  prototypes.

InfoTech International Systems, Inc., a subsidiary established in April of 1997,
directs  development  of  the  Sentry  93000  Notification  System and InfoNotes
system.  PetroTech  Resources  International,  Inc., a subsidiary established in
July of 1997, manages the Oklahoma oil and gas operation acquired by the Company
in  May  of  1997.

Although  the Company's operations include significant costs related to research
and  development,  the  Company  did not capitalize any research and development
costs  during  the three months ended September 30, 1998.  During August of 1998
the Company moved its corporate office to its current location in Austin, Texas.
There  are  no  current  plans  to  increase or decrease the number of permanent
employees.

                                      2
<PAGE>
                                     PART II


ITEM  5  -  OTHER  INFORMATION

The  Company  announced,  during  the  final  quarter of 1998, the completion of
negotiations  related  to  non-disclosure  instruments with Computing Devices of
Canada,  a  subsidiary  of  General  Dynamics.

During  March of 1999, the Company expanded its cattle breeding program with the
acquisition  of  11  purebred  Tuli bulls and 13 heifers.  The cattle arrived in
Fredericksburg, Texas from Canada to join the existing herd of Tuli crossbreeds.
Charles Blackwell, President of AgraTech International, Inc., predicts that "the
Tuli  will eventually be prime prospects for a global export market that will be
important  for  the  state  [Texas]."

April  of 1999 brought an announcement by the Company of its relationship with a
private  Nevada  based capital investment fund, Coldwater Capital.  With this $1
million  investment, the Company intends to produce a working bench model of its
landmine  detector prototype.  The ELF (Eliminate Landmines Forever) unit is the
invention  of  noted  physicist  Dr.  Henry  Blair,  a  consultant  for Chemical
Detection  Technologies,  Inc.  (ChemTech).

                                      3
<PAGE>
ITEM  6  -  EXHIBITS  AND  REPORTS  ON  FORM  8-K


                                    EXHIBIT A


             INDEX TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


                                                                            Page

Consolidated Balance Sheet as of December 
31, 1998 and December 31, 1997                                                 5
 

Consolidated Statements of Operations for three months ended 
December 31, 1998 and three months ended December 31  1997                     6

Consolidated Statements of Shareholders' Equity for the three months
ended December 31, 1998 and three months ended December 31, 1997               7

Consolidated  Statement of Cash Flows for the three months ended
December 31, 1998 and three months ended December 31, 1997                     8

Notes  to  Consolidated  Financial  Statements                                 9

                                      4
<PAGE>
<TABLE>
<CAPTION>
                                 LOCH HARRIS, INC.
                      CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                      DECEMBER 31, 1998 AND DECEMBER 31, 1997

                    ASSETS                                   1998           1997
-----------------------------------------------------  -------------  -------------
<S>                                                    <C>            <C>
Current assets
   Cash                                                $     12,207   $        694 

Oil and gas properties, using successful efforts
   accounting, net of accumulated depreciation,
   amortization and impairment (Note 2):
      Proved undeveloped properties                         221,694        221,694 
Property and equipment, net of
   accumulated depreciation (Note 3)                         96,269        115,456 
Other assets (Note 4)                                        60,264         61,720 
                                                       -------------  -------------

    Total assets                                       $    390,434   $    399,564 
                                                       =============  =============


LIABILITIES AND SHAREHOLDERS' DEFICIT
-----------------------------------------------------                              
Current liabilities:
   Accounts payable                                    $     83,004   $     47,796 

Shareholders' equity:
   Common stock, $.01 par value;
      300,000,000 shares authorized;
      231,031,341 and 132,500,985 shares issued
       and outstanding, respectively (Note 5)             2,310,313      1,325,010 
   Additional paid in capital (Note 5)                   13,128,428     12,628,106 
   Retained deficit                                     (15,067,993)   (13,601,348)
   Treasury stock                                           (63,318)             - 
                                                       -------------  -------------

      Total shareholders' deficit                           307,430        351,768 
                                                       -------------  -------------

         Total liabilities and shareholders' deficit   $    390,434   $    399,564 
                                                       =============  =============
</TABLE>

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

                                      5
<PAGE>
<TABLE>
<CAPTION>
                     LOCH HARRIS, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 1998 AND DECEMBER 31, 1997

                                      1998         1997
                                  ------------  ----------
Revenues                          $         -   $       - 
                                  ------------  ----------
<S>                               <C>           <C>
Operating expenses:
   General and administrative          38,106      93,813 
   Consulting services                146,507     423,563 
   Salaries and benefits                  258      66,996 
   Depreciation and amortization        6,879       6,877 
                                  ------------  ----------

Total operating expenses              191,750     591,249 
                                  ------------  ----------

Net loss                          $(  191,750)  $(591,249)
                                  ============  ==========
</TABLE>

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

                                      6
<PAGE>
<TABLE>
<CAPTION>

                                                   LOCH HARRIS, INC.
                              CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
                               THREE MONTHS ENDED DECEMBER 31, 1998 AND DECEMBER 31, 1997

                                                                                   Retained
                                    Number of                   Additional         Earnings       Treasury
                                    Shares         Amount     Paid in Capital      (Deficit)       Stock       Total
                                                 ----------  -----------------  ---------------  ----------  ----------
<S>                            <C>               <C>         <C>                <C>              <C>         <C>
BALANCE AT SEPTEMBER 30, 1997       118,559,385  $1,185,594  $     12,244,949   $  (13,010,099)  $       -   $ 420,444 

Common stock issued for:
   Services                          13,941,600     139,416           383,157                -           -     522,573 

Net loss                                      -           -                 -    (    591,249 )          -    (591,249)
                               ----------------  ----------  -----------------  ---------------  ----------  ----------

BALANCE AT SEPTEMBER 30, 1997       132,500,985  $1,325,010  $     12,628,106   $  (13,601,348)  $       -   $ 351,768 
                               ================  ==========  =================  ===============  ==========  ==========

BALANCE AT SEPTEMBER 30, 1998       212,346,741  $2,123,467  $     13,178,491   $  (14,876,243)  $(109,538)  $ 316,177 

Common stock issued for:
   Services and/or cash              18,684,600     186,846           (50,063)               -           -     136,783 

Treasury Stock                                -           -                 -                -      46,220      46,220 

Net loss                                      -           -                 -    (     191,750)          -    (191,750)
                               ----------------  ----------  -----------------  ---------------  ----------  ----------

BALANCE AT SEPTEMBER 30, 1998       231,031,341  $2,310,313  $     13,128,428   $  (15,067,993)  $( 63,318)  $ 307,430 
                               ================  ==========  =================  ===============  ==========  ==========
</TABLE>


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

                                      7
<PAGE>
<TABLE>
<CAPTION>
                                      LOCH HARRIS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                 THREE MONTHS ENDED DECEMBER 31, 1998 AND DECEMBER 31, 1997


                                                                    1998           1997
                                                                -------------  -------------
<S>                                                             <C>            <C>
Cash flows from operating activities:
   Net loss                                                     $ (  191,750)  $  ( 591,249)
                                                                -------------  -------------
   Adjustments to reconcile net loss to net cash
     provided by operating activities:
        Depreciation and amortization                                  6,879          6,877 
        Common stock issued for services                             136,783        522,573 
        Increase in accounts payable                                   4,590         12,421 
                                                                -------------  -------------
          Total adjustments                                          148,252        541,871 
                                                                -------------  -------------

          Cash flows from operating activities                    (   43,498)    (   49,378)
                                                                -------------  -------------

Cash flows from investing activities:
      Cash payments for the purchase of property and equipment   (     2,288)   (     1,845)
      Cash payment for the purchase of other assets                        -    (     3,500)
                                                                -------------  -------------
         Cash flows from investing activities                    (     2,288)   (     5,345)
                                                                -------------  -------------

Cash flows from financing activities:
      Cash proceeds from the sale of treasury stock                   46,220              - 
                                                                -------------  -------------

Net increase (decrease) in cash                                          434        (54,723)

Cash and cash equivalents - beginning of three months                 11,773         55,417 
                                                                -------------  -------------

Cash and cash equivalents - end of three months                 $     12,207   $        694 
                                                                =============  =============

Supplemental disclosures of cash flow information:
    Common stock issued for services                            $    136,783   $    522,573 
                                                                =============  =============
</TABLE>
   The accompanying notes are an integral part of these financial statements.


                                       8
<PAGE>
                                LOCH HARRIS, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
           THREE MONTHS ENDED DECEMBER 31, 1998 AND DECEMBER 31, 1997

NOTE  1  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES
----------------------------------------------------------

NATURE  OF  BUSINESS  AND  ORGANIZATION:
Loch  Harris, Inc. (the "Company") (formerly Eclectix, Inc.) was organized under
the  laws of the State of Nevada on March 13, 1985.  On July 31, 1988, Eclectix,
Inc.  entered into an agreement and plan of reorganization with the shareholders
of Loch Harris Energy, Inc., in which Eclectix, Inc. acquired 100% of the common
stock of Loch Harris Energy, Inc.  As part of the reorganization, Eclectix, Inc.
changed  its  name  to Loch Harris, Inc.  During the period ended June 30, 1997,
the  Company  changed  its fiscal year to June 30 and filed a transition report.

Prior  to  1990,  the  Company was involved in the acquisition, development, and
production  of  oil  and  gas reserves.  During 1989, severe economic conditions
forced  the  Company  to  cease operations and the Company remained in a dormant
state  until  1993.  During  the  year  ended  December  31,  1993,  the Company
purchased  P.C.  Sentry,  Inc. which owned an advanced electronic monitoring and
notification  system  (Sentry  93000).  Also the Company purchased an electronic
telephone  message  software  program  (InfoNotes).  The  Company is involved in
research  and  development of the intellectual properties, particularly computer
software  solutions.

During  the  first  six  months of 1997, the Company purchased an interest in an
Oklahoma  oil  and  gas  operation  and  purchased  selected  assets,  including
technology,  designs  and  working  papers  for a solar pump.  Additionally, the
Company  entered  into  a  joint  venture  agreement to purchase Tuli Cattle for
development  and reproduction.  During 1998, the Company expanded its operations
to  include  chemical  detection  applications.

The Company purchased all of the common stock of AgraTech International, Inc. in
January  1997,  and  InfoTech International, Inc. in April 1997.  During July of
1997,  the  Company  purchased  all  of  the  common stock of US Aerodyne, Ltd.,
PetroTech  Resources International, Inc. and Chemical Detection Technology, Inc.

GOING  CONCERN:
As  shown  in  the  accompanying  consolidated financial statements, the Company
incurred net losses of $191,750 and $591,249 for the three months ended December
31,  1998  and  1997,  respectively.  For  the period subsequent to December 31,
1998,  the  Company  anticipates  contributions  by interested investors and the
issuance  of  additional  common stock to provide operating expenses and funding
for product development.  These funds will enable the Company to produce a level
of  revenue  necessary  to provide the Company with positive cash flow, adequate
working  capital  and  positive  earnings  during  the  next  fiscal  year.

The  financial statements do not include any adjustments that might be necessary
if  the  Company  is  unable  to  continue  as  a  going  concern.

PRINCIPLES  OF  CONSOLIDATION:
The  accompanying  consolidated financial statements include the accounts of the
Company  and  its  subsidiaries  US  Aerodyne,  Ltd.,  PetroTech  Resources
International,  Inc.,  Chemical  Detection  Technology,  Inc.,  AgraTech
International,  Inc.,  InfoTech International, Inc., P.C. Sentry, Inc., and Loch
Harris  Energy,  Inc.  All  significant  inter-company accounts and transactions
have  been  eliminated  in  consolidation.

CASH  AND  CASH  EQUIVALENTS:
For  purposes  of  the  Statement  of  Cash  Flows,  the  Company  considers all
investments  with  maturities  of three months or less when purchased to be cash
equivalents.  The  Company  has no investments classified as cash equivalents on
December  31,  1998  or  1997.

                                      9
<PAGE>
                                LOCH HARRIS, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
           THREE MONTHS ENDED DECEMBER 31, 1998 AND DECEMBER 31, 1997


NOTE  1  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  CONTINUED

EQUIPMENT:
Equipment is recorded at cost.  Depreciation is computed using the straight-line
method  over  the  estimated  useful lives of the assets of five to seven years.
Ordinary  maintenance  and  repairs  are  expensed  as  incurred.

OIL  AND  GAS  PROPERTIES:
The  Company  uses  the  successful efforts method of accounting for oil and gas
producing  activities.  Costs  to  acquire  mineral  interests  in  oil  and gas
properties,  to drill and equip exploratory wells that find proved reserves, and
to  drill  and  equip  development  wells  are  capitalized.  Costs  to  drill
exploratory  wells  that do not find proved reserves, geological and geophysical
costs,  and  costs  of  carrying and retaining unproved properties are expensed.

Unproved  oil  and  gas  properties  that  are  individually  significant  are
periodically  assessed  for impairment of value, and a loss is recognized at the
time  of  impairment  by  providing  an  impairment  allowance.  Other  unproved
properties  are  amortized  based  on  the  Company's  experience  of successful
drilling and average holding period.  Capitalized costs of producing oil and gas
properties,  after considering estimated dismantlement and abandonment costs and
estimated salvage values, are depreciated and depleted by the unit-of-production
method.  Support equipment and other property and equipment are depreciated over
their  estimated  useful  lives.

On the sale or retirement of a complete unit of a proved property, the costs and
related  accumulated  depreciation,  depletion,  and amortization are eliminated
from  the  property  accounts, and the resultant gain or loss is recognized.  On
the  retirement  or sale of partial unit of proved property, the cost is charged
to  accumulated  depreciation, depletion, and amortization with a resulting gain
or  loss  recognized  in  income.

On  the  sale  of  an  entire  interest in an unproved property for cash or cash
equivalents,  gain  or loss on the sale is recognized, taking into consideration
the  amount  of  any  recorded  impairment  if  the  property  had been assessed
individually.  If a partial interest in an unproved property is sold, the amount
received  is  treated  as  a  reduction  of  the  cost of the interest retained.

REVENUE  RECOGNITION:
Revenues  from the sale of the Company's products are recognized when persuasive
evidence  of  an  arrangement exists, delivery has occurred, the customer fee is
fixed  and collection is probable.   The Company recorded no revenues during the
three  months  ended  December  31,  1998  or  1997.

INCOME  TAXES:
The  Company accounts for income taxes using the liability method as required by
Statement  of Financial Accounting Standards No. 109 ("FAS 109"), Accounting for
Income  Taxes.  Deferred  tax  assets  and  liabilities  are determined based on
differences  between  the  financial  statement  and  tax  basis  of  assets and
liabilities  using  enacted  tax  rates expected to be in effect for the year in
which  the  differences  are  expected  to  reverse.  The net change, if any, in
deferred  tax asset and liabilities is reflected in the statement of operations.

                                      10
<PAGE>
                                LOCH HARRIS, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
           THREE MONTHS ENDED DECEMBER 31, 1998 AND DECEMBER 31, 1997

NOTE  1  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  CONTINUED
------------------------------------------------------------------------

USE  OF  ESTIMATES:
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  and  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  results.

TREASURY  STOCK:
Acquisitions  and sales of the Company's treasury shares are accounted for using
an  average  cost  method.

NOTE  2  -  OIL  AND  GAS  PROPERTIES
-------------------------------------

During  1997,  the  Company  purchased  for $100,000 and 4,000,000 shares of the
Company's common stock, an 80% interest in leasehold estates in Okmulgee County,
Oklahoma  including  existing  equipment.  Due to the restrictions on the common
stock  (Rule  144), the common stock was valued at 20% of the quoted stock price
of $0.57 on the date of the sale.  No value was assigned to the equipment due to
the  wells  requiring  substantial  workovers  to  be  productive.

Due  to  the  valuation  of  the  reserve  estimates,  the recoverability of the
carrying  amounts of these assets is questionable. As a result, pursuant to FASB
Statement  No.  121,  Accounting  for  Impairment  of  Long-Lived Assets and for
Long-Lived  Assets  to  be  Disposed  Of,  an  impairment  of  $338,318 has been
recognized  for  this  property.  In calculating the impairment loss, fair value
was  determined  by  reviewing  the  discounted  cash  flows  of  future  sales.

There has been no activity from the oil and gas property during the three months
ended  December  31,  1998  or  1997.

<TABLE>
<CAPTION>
                                                                  December 31,   December 31,
                                                                      1998           1997
                                                                  -------------  -------------
<S>                                                               <C>            <C>
Capitalized costs relating to oil and gas producing activities:
   Proved undeveloped oil and gas properties (at 80%)             $     221,694  $     221,694
   Less impairment                                                            -              -
                                                                  -------------  -------------
       Net capitalized costs                                      $     221,694  $     221,694
                                                                  =============  =============
</TABLE>

NOTE  3  -  PROPERTY  AND  EQUIPMENT
------------------------------------

Property and equipment at December 31, 1998 and 1997 consisted of the following:
<TABLE>
<CAPTION>
                                 1998       1997
                               ---------  ---------
<S>                            <C>        <C>

Office equipment               $ 53,757   $ 51,889 
Vehicles                         12,000     12,000 
Cattle breeding herd             75,000     75,000 
Less accumulated depreciation   (44,488)   (23,433)
Net property and equipment     $ 96,269   $115,456 
                               =========  =========
</TABLE>

Depreciation  expense,  which is calculated on a straight-line basis, was $5,265
and  $5,268 for the three months ended December 31, 1998 and 1997, respectively.

                                      11
<PAGE>
                                LOCH HARRIS, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
           THREE MONTHS ENDED DECEMBER 31, 1998 AND DECEMBER 31, 1997

NOTE  4  -  OTHER  ASSETS
-------------------------

Other  assets as of June 30, 1997, consisted of computer software and intangible
assets  including  an advanced electronic monitoring and notification system and
an  electronic  telephone  message  software program in the amount of $2,671,875
acquired  in  1993  and  other  intangibles  of  $14,775.

The  Company  determined  that  significant  cash  requirements  for  additional
research and development are required before the products would be available for
sale.  Due  to  the  need  for  significant  research and development, Company's
management  made  a  thorough  evaluation of the Company's operations, including
among  other things, the carrying value of long-lived assets. Effective December
31,  1996, management determined that based on the current market conditions and
an  analysis  of  the  projected  undiscounted  future  cash flows calculated in
accordance  with  the  provisions  of  SFAS  No. 121, the carrying amount of its
computer  software  and  intangibles  may  not  be  recoverable.  The  resultant
impairment  of  these long-lived assets necessitated a write-down of $930,439 of
the  assets  acquired  in 1993.  During the fiscal year ended June 30, 1998, the
Company  decreased  other  assets  and  the related accumulated amortization and
impairment  by  $2,686,650.

The  Company  patented  certain  technologies  related to an advanced electronic
monitoring and notification system and purchased technology, designs and working
papers for a solar pump. Amortization of capitalized costs is computed using the
straight-line  method  over the remaining estimated economic life of the product
of  5  years.  Other  assets  as  of December 31, 1998 and 1997 were as follows:

<TABLE>
<CAPTION>
                                 1998       1997
                               ---------  --------
<S>                            <C>        <C>
Solar pump technology          $ 42,500   $42,500 
Other intangible assets          28,500    23,500 
Less accumulated amortization   (10,736)   (4,280)
Other assets, net              $ 60,264   $61,720 
                               =========  ========
</TABLE>

NOTE  5  -  SHAREHOLDER  EQUITY
-------------------------------

During  the  three  months  ended December 31, 1998 and 1997, the Company issued
18,684,600 and 13,941,600 shares of common stock, respectively, (Subject to Rule
144)  for  employee  compensation, consultants and professional fees. The common
stock  was  recorded  as  a  charge  to  earnings  in the amount of $522,573 and
$136,783  for  the  respective  periods.


NOTE  6  -  STOCK  OPTIONS  AND  WARRANTS
-----------------------------------------

A  summary  of the status of the Company's stock options as of December 31, 1998
and  1997  is  presented  below:
<TABLE>
<CAPTION>
                                        1998        1997
                                     ----------  ----------
<S>                                  <C>         <C>
Options outstanding                  13,500,000  13,500,000
Options granted                               -           -
Options exercised                             -           -
Options canceled                              -           -
Options outstanding and exercisable  13,500,000  13,500,000
                                     ==========  ==========
</TABLE>

                                      12
<PAGE>
                                LOCH HARRIS, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
           THREE MONTHS ENDED DECEMBER 31, 1998 AND DECEMBER 31, 1997

NOTE  6  -  STOCK  OPTIONS  AND  WARRANTS  (CONTINUED)
------------------------------------------------------

The  following  table  summarizes  the  information  about  stock  options as of
December  31,  1998  and  1997:

<TABLE>
<CAPTION>
                                       Weighted
                                        Average          Weighted                            Weighted
 Range of                              Remaining          Average                             Average
 Exercise        Number       Date    Contractual     Exercise Price        Number        Exercise Price
   Price      outstanding  Granted      Life         (Total Shares)      Exercisable     (Exer. Shares)
------------  -----------  --------  -----------  ---------------------  -----------  ---------------------
<S>           <C>          <C>       <C>          <C>                    <C>          <C>
        .25     4,000,000  12/18/94      5 years  $                 .25    4,000,000  $                 .25
        .25     4,000,000    6/1/95      5 years                    .25    4,000,000                    .25
        .25     4,000,000    7/1/95      5 years                    .25    4,000,000                    .25
        .01     1,000,000   7/26/96      5 years                    .01    1,000,000                    .01
        .01       500,000   7/26/96      5 years                    .01      500,000                    .01
============  -----------  ========  ===========  =====================  -----------  =====================
        .01-
        .25   13,500,000                5 years  $                 .22   13,500,000  $                 .22
============  ===========            ===========  =====================  ===========  =====================

</TABLE>

All options were granted to consultants for services, which expire in years 1999
through  2001.   Each  stock  option  granted  can be exercised for one share of
common  stock.

NOTE  7  -  INCOME  TAXES
-------------------------

A  reconciliation of income tax at the statutory rate to the Company's effective
rate  follows:

<TABLE>
<CAPTION>
                                                      1998          1997
                                                  ------------  ------------
<S>                                               <C>           <C>
Computed at the expected statutory rate (credit)  $  (870,000)  $  (477,000)
Valuation allowance                                   870,000       477,000 
   Income tax                                     $         -   $         - 
                                                  ============  ============

Deferred tax assets are as follows:
  Net operating loss carryforward                 $(4,995,000)  $(4,125,000)
 Valuation allowance                                4,995,000     4,125,000 
                                                  $         -   $         - 
                                                  ============  ============
</TABLE>

The  Company  had  cumulative  net operating loss carryforwards of approximately
$14,690,000  and  $12,134,000  at  December 31, 1998 and 1997, respectively, for
federal  tax reporting purposes.  The net operating loss carryforwards expire in
varying  amounts  beginning in the year 2002 and may be limited due to the types
of  business  the  Company  may  engage.

                                      13
<PAGE>
                  SUPPLEMENTAL RESERVE INFORMATION (UNAUDITED)
                             AS OF DECEMBER 31, 1998


The  following  estimates  of  proved undeveloped reserve quantities and related
standardized  measure of discounted net cash flow are estimates only, and do not
purport  to  reflect  realizable  values  or fair market values of the Company's
reserves.  The  Company  emphasizes  that  reserve  estimates  are  inherently
imprecise and that estimates of new discoveries are more imprecise than those of
producing  oil and gas properties.  Accordingly, these estimates are expected to
change  as  future information becomes available.  All of the Company's reserves
are  located  in  the  United  States.

Proved  reserves  are  estimated reserves of crude oil (including condensate and
natural  gas  liquids)  and  natural  gas  that  geological and engineering data
demonstrate  with  reasonable  certainty  to be recoverable in future years from
known  reservoirs  under  existing  economic  and  operating conditions.  Proved
undeveloped  reserves are those expected to be recovered through existing wells,
equipment,  and  operating methods, but that require a major capital expenditure

The  standardized  measure  of  discounted  future net cash flows is computed by
applying  year-end  prices  of  oil and gas (with consideration of price changes
only to the extent provided by contractual arrangements) to the estimated future
production  of  proved  oil  and gas reserves, assuming continuation of existing
economic  conditions.  The  estimated  future net cash flows are then discounted
using a rate of 6.5 percent a year to reflect the estimated timing of the future
cash  flows.

<TABLE>
<CAPTION>

                                                                    Oil *(Bbls)   Gas (Mcf)
                                                                    ------------  ---------
Proved undeveloped reserves                                            26,866      267,247
<S>                                                                 <C>         <C>

Standardized measure of discounted future net cash flows
   at June 30, 1998:
      Future cash inflows                                                       $   856,884 
      Future production                                                           (252,090)
 Future development costs                                                         (294,420)
      Net cash flow undiscounted                                                   310,374 
      Future net cash flows 6.5% annual discount  for estimated
           timing of cash flows                                                    (88,680)
Standardized measures of discounted future net cash flows relating
   to proved undeveloped oil and gas reserves                                   $  221,694 
                                                                                ============

<FN>
*Oil  reserves  shown  include condensate only.  Oil volumes are expressed in barrels which
are  equivalent  to  42  United  States gallons.  Gas volumes are expressed in thousands of
standard  cubic  feet  (MCF)  at  the  contract  temperature  and  pressure  bases.
</TABLE>

                                      14
<PAGE>
                                   SIGNATURES

In  accordance  with the requirements of the Exchange Act, the registrant caused
this  report  to  be  signed  on  its  behalf by the undersigned, thereunto duly
authorized.


Date   April  5,  1999          By  /s/ Dr. R.B. Baker, Chairman of the Board
    ------------------              ---------------------------------------
                                     Dr. R.B. Baker, Chairman of the Board




Date   April  5,  1999          By  /s/ Mark E. Baker, Secretary/Treasurer
    ------------------              ---------------------------------------
                                    Mark  E.  Baker,  Secretary/Treasurer

                                      15
<PAGE>