SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   Form 10-QSB

[X]   Quarterly report under Section 13 or 15(d) of the Securities  Exchange Act
      of 1934 for the quarterly period ended June 30, 2000
                                             -------------


[ ]   Transition  report under Section 13  or 15(d) of  the Securities  Exchange
      Act of 1934 for the quarterly period from _______ to _______.


                         Commission file number 1-13162

                              EMPIRIC ENERGY, INC.
             (Exact name of registrant as specified in its charter)



                   Texas                                   75-2455467
      (State or other jurisdiction of          (IRS Employer Identification No.)
       incorporation or organization)

        12750 Merit Drive, Suite 750
               Dallas, Texas                                    75251
  (Address of principal executive offices)                    (Zip Code)

                                 (972) 387-4100
              (Registrant's telephone number, including area code)


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.

                                                           Yes X   No
                                                              ---    ---


As of  August  10,  2000 the  aggregate  market  value of voting  stock  held by
non-affiliates,  computed by reference to the closing  price on the OTC Bulletin
Board was $3,972,917.  As of August 10, 2000 the number of shares outstanding of
the Registrant's common stock was 10,629,963.

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

Page 1 of 9 pages contained in the sequential  number system.  The Exhibit Index
is on Page 2 of the sequential numbering system.





<PAGE>




                              EMPIRIC ENERGY, INC.

                              INDEX TO FORM 10-QSB

PART I                                                                      PAGE

   Item 1.     Financial Statements........................................... 3

   Item 2.     Management's Discussion and Analysis of Financial Condition
                              and Results of Operations....................... 7

PART II

   Item 1.     Legal Proceedings.............................................. 9

   Item 2.     Changes in Securities.......................................... 9

   Item 3.     Defaults Upon Senior Securities................................ 9

   Item 4.     Submission of Matters to a Vote of Securities Holders.......... 9

   Item 5.     Other Information.............................................. 9

   Item 6.     Exhibits and Reports on Form 8-K............................... 9

SIGNATURE PAGE................................................................ 9


                                     Page 2


<PAGE>

<TABLE>

<CAPTION>






                                     PART I

ITEM 1.           FINANCIAL INFORMATION

           The financial  statements  included  herein have been prepared by the
Company,  without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission.  The financial statements reflect all adjustments which
are, in the opinion of management, necessary to fairly present such information.
Although  the Company  believes  that the  disclosures  are adequate to make the
information   presented  not  misleading,   certain   information  and  footnote
disclosure,  including  significant  accounting  policies,  normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles   have  been  condensed  or  omitted   pursuant  to  such  rules  and
regulations.  It is  suggested  that  these  financial  statements  be  read  in
conjunction with the financial  statements and the notes thereto included in the
Company's latest annual report on Form 10-K, dated December 31, 1999.




                              EMPIRIC ENERGY, INC.
                                  BALANCE SHEET

                                                                     June 30, 2000  December 31,
                                  ASSETS                              (Unaudited)       1999
                                  ------                              -----------    -----------
<S>                                                                   <C>            <C>
CURRENT ASSETS:

         Cash                                                         $     2,400    $    62,575

         Oil and gas sales receivable, net of allowance of doubtful
                  accounts of $24,244 and $24,244 respectively             41,629         45,047
                                                                      -----------    -----------
                  Total current assets                                     44,029        107,622

PROPERTY AND EQUIPMENT:


         Oil and gas properties (full cost method):

            Unproved leasehold costs                                      179,609        179,609

            Proved leasehold costs and well equipment                   4,687,288      4,658,398

         Less accumulated depletion, depreciation and impairment       (2,664,919)    (2,603,395)
                                                                      -----------    -----------
                  Net property and equipment                            2,201,978      2,234,612

OTHER FURNITURE AND EQUIPMENT, net of
accumulated depreciation of $29,107 and $26,861 respectively                5,403          7,649

DEPOSITS                                                                    3,281          3,281
                                                                      -----------    -----------
                           Total assets                               $ 2,254,691    $ 2,353,164
                                                                      ===========    ===========
</TABLE>




                                     Page 3


<PAGE>

<TABLE>

<CAPTION>





                   LIABILITIES AND STOCKHOLDER'S EQUITY
                   ------------------------------------                 June 30, 2000  December 31,
                                                                         (Unaudited)       1999
                                                                         -----------    -----------
<S>                                                                      <C>            <C>
CURRENT LIABILITIES

         Current portion of long-term debt, including related parties    $   273,673    $   371,602

         Accounts payable and accrued expenses                               317,294        298,250

         Accrued interest payable, including related parties                  24,906         29,486

         Oil and Gas revenues payable                                         14,251         11,962

         Due to related parties                                               50,988        114,540
                                                                         -----------    -----------
                                    Total current liabilities                681,112        825,840

LONG- TERM DEBT, net of current portion, including related parties              --          223,849



COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY

         Series A Convertible preferred stock, no par value, $575,000
                  liquidation preference                                      43,168         43,168

         Series B Convertible Preferred stock, $.05 par value, $50,000
                  liquidation preference                                         313           --

         Common stock, $.01 par value, 20,000,000 shares authorized;
                  10,130,563 and 9,046,027 issued and                        101,306         90,461
                  outstanding, respectively

         Common stock subscribed, 56,475 shares                                 --              469

         Additional paid-in capital                                        6,577,237      5,882,146

         Receivables                                                         (74,061)       (99,061)

         Obligation to repurchase treasury stock                             (11,875)       (11,875)

         Accumulated deficit                                              (5,062,509)    (4,601,833)
                                                                         -----------    -----------
                                    Total stockholders' equity             1,573,579      1,303,475
                                                                         -----------    -----------
                           Total liabilities and stockholders' equity    $ 2,254,691    $ 2,353,164
                                                                         ===========    ===========
</TABLE>



                                     Page 4


<PAGE>

<TABLE>

<CAPTION>





                              EMPIRIC ENERGY, INC.
                       CONDENSED STATEMENTS OF OPERATIONS

                                                   Six Months Ended           Three Months Ended

                                               June 30,       June 30,      June 30,       June 30,
                                                 2000           1999          2000           1999
                                             (Unaudited)    (Unaudited)    (Unaudited)   (Unaudited)
                                             -----------    -----------    -----------    -----------
<S>                                          <C>            <C>            <C>            <C>
REVENUE:

   Oil and gas sales                         $    83,508    $    88,249    $    51,688    $    41,873


COSTS AND EXPENSES:

         Production Expense                       68,470         32,368         48,220         11,718

         Depletion and Depreciation               63,770         89,668         31,885         44,885

         General and Administrative              380,475        231,095        277,282        124,437
                                             -----------    -----------    -----------    -----------
              Total Costs and Expenses           512,715        353,151        357,387        181,041



OTHER INCOME (EXPENSE):

         Consulting Income                           354            945            354              0

         Other Income                               --           25,148           --               30

         Interest Expense                        (31,822)       (39,560)       (12,555)       (16,885)
                                             -----------    -----------    -----------    -----------
              Total other income (expense)       (31,468)       (13,466)       (12,201)       (16,855)



NET LOSS                                     $  (460,675)   $  (278,349)   $  (317,900)   $  (156,023)
                                             ===========    ===========    ===========    ===========


BASIC AND DILUTED                            $     (0.05)   $      (.03)   $     (0.03)   $     (0.02)
NET LOSS PER SHARE
                                             ===========    ===========    ===========    ===========


WEIGHTED AVERAGE                               9,203,019      7,993,021      9,309,119      8,155,092
SHARES OUTSTANDING
                                             ===========    ===========    ===========    ===========
</TABLE>



                                     Page 5


<PAGE>

<TABLE>

<CAPTION>





                              EMPIRIC ENERGY, INC.
                             STATEMENT OF CASH FLOWS

                                                                                   Six Months Ended
                                                                           June 30, 2000   June 30, 1999
                                                                             (Unaudited)    (Unaudited)
                                                                             -----------    -----------
<S>                                                                          <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net loss                                                                 $  (460,675)   $  (278,349)
    Adjustments to reconcile net loss to net cash
    from operating activities:
        Depletion, depreciation and impairment                                    63,770         89,688
        Amortization of debt discount                                             11,782           --
        Common stock, warrants and options issued for services                   134,613         11,910
    Changes in assets and liabilities:
            Accounts receivable                                                    3,418         17,072
            Accounts payable and accrued expenses                                 73,420         81,649
            Oil and gas revenues payable                                           2,289          7,508
            Due to related parties                                                91,210         (3,750)
            Other                                                                   --          (18,226)
                                                                             -----------    -----------
                  Net cash used by operating activities                          (80,173)       (92,518)



CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of oil and gas properties                                           (28,990)      (233,599)


CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from long-term debt                                                    --          242,784
    Repayments of long-term debt                                                  (1,012)       (85,437)
    Proceeds from sales of common stock                                             --          170,356
    Proceeds from sales of preferred stock                                        50,000           --
                                                                             -----------    -----------
                  Net cash provided by financing activities                       48,988        327,703
                                                                             -----------    -----------

NET INCREASE (DECREASE) IN CASH                                                  (60,175)         1,586
CASH, beginning of the period                                                     62,575            721
                                                                             -----------    -----------
CASH, end of the period                                                      $     2,400    $     2,307
                                                                             ===========    ===========

SUPPLEMENTAL INFORMATION
    Cash paid during period for interest                                     $       197    $    38,622
                                                                             ===========    ===========
</TABLE>



NOTES TO FINANCIAL STATEMENTS

    See notes to  financial  statements  included in the  Company's  1999 Annual
Report on Form 10-KSB.



                                     Page 6


<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS.


COMPARISON OF JUNE 30, 2000 QUARTER TO JUNE 30, 1999 QUARTER

      Revenues of $51,688 were $9,815 or 23% higher than 1999.  The increase was
due to higher average oil and gas prices.

      Production  expense of $48,220 was  $36,502 or 311% higher than 1999.  The
production  expense  was higher  due to work being done on wells in South  Texas
that was expensed.

      Depletion and  depreciation  expenses of $31,885 were $13,000 or 29% lower
than 1999.  The  reduction  was due to an increase in  reserves  resulting  from
higher oil and gas prices.

         General and  Administrative  expense of $277,282  was  $152,845 or 122%
higher than 1999.  The  expenses  were higher due to issuing  stock and warrants
valued at $135,000 for financial services. Actual cash expenses for the quarters
were similar.

      Interest  expense  of  $12,555  was  $4,330 or 26% lower  than  1999.  The
difference was due to a lower level of debt in the 2000 quarter.

COMPARISON OF SIX MONTHS ENDED JUNE 30, 2000 TO JUNE 30, 1999

      Revenues of $83,508  were $4,741 or 5% lower than 1999.  The  decrease was
due to lower  production  from the South Texas  properties  in the first quarter
even with higher average oil and gas prices.

      Production  expense of $68,470 was  $36,102 or 115% higher than 1999.  The
production  expense  was higher  due to work being done on wells in South  Texas
that was expensed.

      Depletion and  depreciation  expenses of $63,770 were $25,898 or 29% lower
than  1999.  The  reduction  was due to lower  production  from the South  Texas
properties and an increase in reserves resulting from average higher prices.

         General  and  Administrative  expense of $380,475  was  $149,380 or 65%
higher than 1999. The expenses were higher due to issuing stock and warrants for
financial services. Actual cash expenses for the quarters were similar.

      Interest  expense  of  $31,822  was  $7,738 or 20% lower  than  1999.  The
difference was due to a lower level of debt in the 2000 quarter.

      As noted in the annual  financial  statements,  the Company  has  suffered
recurring losses from operations.  Future positive results are a function of the
Company's  ability to raise capital or utilize  securities to acquire  producing
properties or drill  developmental  wells in order to generate  profits.  In the
event the Company is not able to raise capital or acquire  properties,  there is
doubt about the Company's ability to continue as a going concern.

LIQUIDITY

      Cash flows provided a decrease of $60,175 leaving a cash balance of $2,400
at June  30,  2000.  Net cash  used by  operating  activities  was  $80,173  due
primarily  to the net loss of  $460,675,  offset  by non cash  expenses  and the
increases  in the  accruals of current  liabilities.  Net cash used by investing
activities was $28,890 which was primarily for the purpose of purchasing oil and
gas properties.  Financing  activities  provided  $48,988 which was repayment of
debt and sale of securities.

      During the six months ended June 30,  2000,  the Company  exchanged  debt,
accounts  payable and accrued  interest  totalling  approximately  $510,000  for
common stock.

      At June 30, 2000,  the Company had a working  capital  deficit of $637,082
and a debt to equity ratio of  approximately  .43 to 1. The Company needs and is
seeking the infusion of working capital for expanded  drilling and developmental
programs,   for  further  debt  reduction  and  for  acquisition  of  production
properties to obtain improved cash flow.



                                     Page 7


<PAGE>



SUBSEQUENT EVENTS

      The Company has continued its program of exchanging  securities  for  debt
and payables. Through August 14, 2000, an  additional 14,375 of debt and $80,451
in payables had been exchanged for equity.

      The Company  has also  entered  into a Security  Exchange  Agreement  with
Daedalus  Systems,  Inc. that involves the exchange of $1,500,000  face value of
Empiric convertible  preferred stock (convertible into 750,000 shares of Empiric
common stock) and 750,000  warrants to purchase a share of Empiric  common stock
for $2 for a period of three years to Daedalus in exchange for 1,500,000  common
shares of Daedalus and 750,000  Daedalus  warrants to purchase a share of common
stock  for $2  for a  period  of  three  years.  If the  exchange  agreement  is
consummated,  management of the company plans to distribute  the majority of the
Daedalus  common  shares  received  to its  shareholders  as a dividend  after a
registration statement becomes effective.


STRATEGY, BUSINESS PLANS AND NEED FOR THE INFUSION OF CAPITAL

      All of the Company's  plans to strengthen  its  financial  capability  for
development  and growth  involve  the need for the  infusion  of capital  funds.
Sources of financing,  involving  the issuance of debt and equity  securities as
well as  acquisitions  and business  combinations  with companies in the related
energy  business,   are  being   investigated.   The  Company  has  drafted  for
consideration  before formal  release a Private  Placement  Offering  Memorandum
involving the issuance of up to $3,000,000  in equity  securities  consisting of
Convertible  Preferred  Stock,  convertible  into  restricted  common stock.  No
minimums will be included if this  financing  plan is  activated.  None of these
securities have been issued through the date of the filing of this Form 10-QSB.



                                     Page 8


<PAGE>


                                    PART II.

ITEM 1.          LEGAL PROCEEDINGS

      The  Company is  involved  in  litigation  in the  ordinary  course of its
business and operations.  The Company does not expect the outcome of any current
litigation  to have a material  impact on its  financial  position or results of
operations.

ITEM 2.          CHANGES IN SECURITIES

      During the  Quarter  ended June 30,  2000,  the Company  issued  1,027,661
shares of common  stock,  $.01 par value and 6,250  shares of Series B preferred
stock, $.05 par value. None of the securities were registered.

ITEM 3.          DEFAULTS UPON SENIOR SECURITIES

      The Company was in default on $214,375  principal  value of notes  payable
and $20,451 in accrued interest on these notes payable as of June 30, 2000.

ITEM 4.          SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

      There were no matters submitted to a vote of security holders.

ITEM 5.          OTHER INFORMATION

      None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

      There were no reports filed on Forms 8-K.

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:  August 16, 2000
       ---------------
                                        EMPIRIC ENERGY, INC.

                                          By: /s/ Clyde E. Skeen
                                              ----------------------------------
                                           Clyde E. Skeen
                                           Chief Financial Officer


                                          By: /s/ James J. Ling
                                              ----------------------------------
                                           James J. Ling
                                           Chairman and Chief Executive Officer


                                          By: /s/ R. Renn Rothrock, Jr.
                                              ----------------------------------
                                           R. Renn Rothrock, Jr.
                                           President and Chief Operating Officer





                                     Page 9