==============================================================================

                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                           ------------------------
 
                                  FORM 10-Q
(MARK ONE)
 
[X]          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934
 
                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1995
 
                                       OR
 
[ ]          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D)
                    OF THE SECURITIES EXCHANGE ACT OF 1934
 
                         COMMISSION FILE NUMBER 1-11450
 
                            ------------------------
 
                              SANTA FE ENERGY TRUST
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 
                 TEXAS                                   76-6081498
(STATE OF INCORPORATION OR ORGANIZATION)   (I.R.S. EMPLOYER IDENTIFICATION NO.)
 
                    TEXAS COMMERCE BANK NATIONAL ASSOCIATION
                            CORPORATE TRUST DIVISION
                             600 TRAVIS, SUITE 1150
                              HOUSTON, TEXAS 77002
          (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE)
 
       REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 216-5100
 
                            ------------------------
 
     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
 
                                 Yes [X] No [ ]
 
         Depository Units outstanding at November 10, 1995 -- 6,300,000
 
==============================================================================
<PAGE>
                         PART I -- FINANCIAL INFORMATION
 
ITEM 1.  FINANCIAL STATEMENTS.
 
                              SANTA FE ENERGY TRUST
          STATEMENT OF CASH PROCEEDS AND DISTRIBUTABLE CASH (UNAUDITED)
                     (DOLLARS IN THOUSANDS, EXCEPT AS NOTED)
<TABLE>
<CAPTION>
                                          THREE MONTHS ENDED        NINE MONTHS ENDED
                                            SEPTEMBER 30,             SEPTEMBER 30,
                                       ------------------------  ------------------------
                                          1995         1994         1995         1994
                                       -----------  -----------  -----------  -----------
<S>                                    <C>          <C>          <C>          <C>        
Royalty Income
     ODC Royalty.....................  $     1,279  $       628  $     3,537  $     2,509
     Willard Royalty.................          497          526        1,349        1,314
     Net Profits Royalty.............          813        1,568        3,015        4,354
                                       -----------  -----------  -----------  -----------
Total Royalties......................        2,589        2,722        7,901        8,177
Administrative Fee to Santa Fe.......          (54)         (52)        (160)        (154)
Trust Formation Costs................           --           --           --         (108)
Advance from Santa Fe Energy
  Resources, Inc.....................           75           90          165          396
Repayment of Advance from Santa Fe
  Energy Resources, Inc. ............          (15)        (150)        (165)        (361)
Cash Withheld for Trust Expenses.....          (75)         (90)        (181)        (390)
                                       -----------  -----------  -----------  -----------
Distributable Cash...................  $     2,520  $     2,520  $     7,560  $     7,560
                                       ===========  ===========  ===========  ===========
Distributable Cash per Trust Unit
  (in dollars).......................      0.40000      0.40000      1.20000      1.20000
                                       ===========  ===========  ===========  ===========
Trust Units Outstanding
(thousands)..........................        6,300        6,300        6,300        6,300
                                       ===========  ===========  ===========  ===========
</TABLE>
                STATEMENT OF ASSETS, LIABILITIES AND TRUST CORPUS
                             (DOLLARS IN THOUSANDS)

                                        SEPTEMBER 30,     DECEMBER 31,
                                             1995             1994
                                        --------------    ------------
                                         (UNAUDITED)
                                ASSETS
Current Assets
  Cash...............................      $     33         $     90
                                           --------         --------  
Investment in Royalty Interests, at
  cost...............................        87,276           87,276
Less: Accumulated Amortization.......       (27,310)         (19,899)
                                           --------         --------  
                                             59,966           67,377
                                           --------         --------  
                                           $ 59,999         $ 67,467
                                           ========         ========  

                     LIABILITIES AND TRUST CORPUS
Advance from Santa Fe Energy
  Resources, Inc.....................      $     75         $     75
Trust Corpus (6,300,000 Trust Units
  issued and outstanding)............        59,924           67,392
                                           --------         --------  
                                           $ 59,999         $ 67,467
                                           ========         ========  
 
  The accompanying notes are an integral part of these financial statements.
 
                                      2
<PAGE>
                            SANTA FE ENERGY TRUST
               STATEMENT OF CHANGES IN TRUST CORPUS (UNAUDITED)
                          (IN THOUSANDS OF DOLLARS)
 
Balance at December 31, 1994.........  $   67,392
  Cash Proceeds......................       7,741
  Cash Distributions.................      (7,560)
  Trust Expenses.....................        (238)
  Amortization of Royalty
     Interests.......................      (7,411)
                                       ----------
Balance at September 30, 1995........  $   59,924
                                       ==========
Balance at December 31, 1993.........  $   77,301
  Cash Proceeds......................       7,915
  Cash Distributions.................      (7,560)
  Trust Expenses.....................        (339)
  Amortization of Royalty
     Interests.......................      (7,581)
                                       ----------
Balance at September 30, 1994........  $   69,736
                                       ==========
 
  The accompanying notes are an integral part of these financial statements.
 
                                      3
 
                            SANTA FE ENERGY TRUST
                  NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
 
(1)  THE TRUST
 
     Santa Fe Energy Trust (the 'Trust') was formed on October 22, 1992, with
Texas Commerce Bank National Association as trustee (the 'Trustee'), to
acquire and hold certain royalty interests (the 'Royalty Interests') in
certain properties (the 'Royalty Properties') conveyed to the Trust by Santa
Fe Energy Resources, Inc. ('Santa Fe'). The Royalty Interests consist of two
term royalty interests in two production units in the Wasson field in west
Texas (the 'Wasson Royalties') and a net profits royalty interest in certain
royalty and working interests in a diversified portfolio of properties located
in twelve states (the 'Net Profits Royalties'). The Royalty Interests are
passive in nature and the Trustee has no control over or responsibility
relating to the operation of the Royalty Properties. The Trust will be
liquidated on February 15, 2008 (the 'Liquidation Date').
 
     In November 1992, 5,725,000 Depositary Units, each consisting of
beneficial ownership of one unit of undivided beneficial interest in the Trust
('Trust Units') and a $20 face amount beneficial ownership interest in a
$1,000 face amount zero coupon United States Treasury obligation maturing on
or about February 15, 2008, were sold in a public offering for $20 per
Depositary Unit. A total of $114.5 million was received from public investors,
of which $38.7 million was used to purchase the Treasury obligations and $5.7
million was used to pay underwriting commissions and discounts. Santa Fe
received the remaining $70.1 million and 575,000 Depositary Units. In the
first quarter of 1994 Santa Fe sold in a public offering the 575,000
Depositary Units which it held.
 
     The trust agreement under which the Trust was formed (the 'Trust
Agreement') provides, among other things, that:

          o    the Trustee shall not engage in any business or commercial
               activity or acquire any asset other than the Royalty Interests
               initially conveyed to the Trust;
 
          o    the Trustee may not sell all or any portion of the Wasson
               Royalties or substantially all of the Net Profits Royalties
               without the prior consent of Santa Fe;
 
          o    Santa Fe may sell the Royalty Properties, subject to and
               burdened by the Royalty Interests, without consent of the
               holders of the Trust Units; following any such transfer, the
               Royalty Properties will continue to be burdened by the Royalty
               Interests and after any such transfer the royalty payment
               attributable to the transferred property will be calculated
               separately and paid by the transferee;
 
          o    the Trustee may establish a cash reserve for the payment of any
               liability which is contingent, uncertain in amount or that is
               not currently due and payable;

          o    the Trustee is authorized to borrow funds required to pay
               liabilities of the Trust, provided that such borrowings are
               repaid in full prior to further distributions to the holders of
               the Trust Units;
 
          o    the Trustee will make quarterly cash distributions to the
               holders of the Trust Units.
 
(2)  BASIS OF ACCOUNTING
 
     The financial statements of the Trust are prepared on the cash basis of
accounting for revenues and expenses. Royalty income is recorded when received
(generally during the quarter following the end of the quarter in which the
income from the Royalty Properties is received by Santa Fe) and is net
 
                                      4
 
                            SANTA FE ENERGY TRUST
           NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)

of any cash basis exploration and development expenditures and amounts
reserved for any future exploration and development costs. Expenses of the
Trust, which will include accounting, engineering, legal, and other
professional fees, Trustee fees, an administrative fee paid to Santa Fe and
out-of-pocket expenses, are recognized when paid. Under generally accepted
accounting principles, revenues and expenses would be recognized on an accrual
basis. Amortization of the Trust's investment in Royalty Interests is recorded
using the unit-of-production method in the period in which the cash is
received with respect to such production.
 
     The conveyance of the Royalty Interests to the Trust was accounted for as
a purchase transaction. The $87,276,000 reflected in the Statement of Assets
and Trust Corpus as Investment in Royalty Interests represents 6,300,000 Trust
Units valued at $20 per unit less the $38,724,000 paid for the Treasury
obligations. The carrying value of the Trust's investment in the Royalty
Interests is not necessarily indicative of the fair value of such Royalty
Interests.
 
     The Trust is a grantor trust and as such is not subject to income taxes
and accordingly no recognition has been given to income taxes in the Trust's
financial statements. The tax consequences of owning Trust Units are included
in the income tax returns of the individual Trust Unit holders.
 
     During 1994 net cash proceeds (before deducting Trust expenses) exceeded
cash distributions by $447,000, a portion of which was used to repay advances
received from Santa Fe in 1993. In order to pay current Trust expenses, during
1994 Santa Fe advanced the Trust $471,000, of which $75,000 was due to Santa
Fe at December 31, 1994. During the first nine months of 1995 net cash
proceeds (before deducting Trust expenses) exceeded cash distributions by
$181,000, a portion of which was used to repay advances received from Santa
Fe. In order to pay current Trust expenses, during the first nine months of
1995 Santa Fe advanced the Trust $165,000, $75,000 of which was due to Santa
Fe at September 30, 1995.
 
(3)  THE ROYALTY INTERESTS
 
     The Wasson Royalties consist of interests conveyed out of Santa Fe's
royalty interest in the Wasson ODC Unit (the 'ODC Royalty') and the Wasson
Willard Unit (the 'Willard Royalty'). The ODC Royalty entitles the Trust to
receive quarterly royalty payments with respect to 12.3934% of the actual
gross oil production from the Wasson ODC Unit, subject to certain quarterly
limitations set forth in the conveyance agreement, for the period from
November 1, 1992 to December 31, 2007. The Willard Royalty entitles the Trust
to receive quarterly royalty payments with respect to 6.8355% of the actual
gross oil production from the Wasson Willard Unit, subject to certain
quarterly limitations set forth in the conveyance agreement, for the period
from November 1, 1992 to December 31, 2003.
 
     The Net Profits Royalties entitle the Trust to receive, on a quarterly
basis, 90% of the net proceeds, as defined in the conveyance agreement, from
the sale of production from the properties subject to the conveyance
agreement. The Net Profits Royalties are not limited in term, although the
Trustee is required to sell such royalties prior to the Liquidation Date.

     For any calendar quarter ending on or prior to December 31, 2002, the
Trust will receive additional royalty payments ('Support Payments') to the
extent it needs such payments to distribute $0.40 per Trust Unit per quarter
(two-thirds of such amount for the period ended December 31,
 
                                      5
<PAGE>
                            SANTA FE ENERGY TRUST
           NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- (CONTINUED)

1992). Such Support Payments are limited to Santa Fe's remaining royalty
interest in the Wasson ODC Unit. If such Support Payments are received,
certain proceeds otherwise payable to the Trust in subsequent quarters may be
reduced to recoup the amount of such Support Payments. The aggregate of the
Support Payments, net of any amounts recouped, will be limited to $20,000,000
on a revolving basis. As of September 30, 1995 the Trust had received Support
Payments totalling $1,845,300.
 
(4)  DISTRIBUTIONS TO TRUST UNIT HOLDERS

     The Trust has received royalty payments and made distributions as follows
(in thousands of dollars, except as noted):

                                                          DISTRIBUTIONS
                                        ROYALTY     -------------------------
                                        PAYMENT                PER TRUST UNIT
                                        RECEIVED    AMOUNT      (IN DOLLARS)
                                        --------    -------    --------------
1994
     First quarter (a)...............     2,575       2,520        0.40000
     Second quarter(b)...............     2,670       2,520        0.40000
     Third quarter...................     2,670       2,520        0.40000
     Fourth quarter..................     2,612       2,520        0.40000
                                         ------      ------        -------
                                         10,527      10,080        1.60000
                                         ======      ======        =======
1995
     First quarter(c)................     2,600       2,520        0.40000
     Second quarter..................     2,606       2,520        0.40000
     Third quarter(d)................     2,535       2,520        0.40000

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

(a) Includes a Support Payment of $362,100, or $0.0575 per Trust Unit.

(b) Includes a Support Payment of $505,700, or $0.08027 per Trust Unit.

(c) Includes a Support Payment of $676,600, or $0.10740 per Trust Unit.

(d) Includes a Support Payment of $300,900 or $0.04776 per Trust Unit.

                                      6

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

GENERAL; LIQUIDITY AND CAPITAL RESOURCES

     Santa Fe Energy Trust (the 'Trust') was formed on October 22, 1992 with
Texas Commerce Bank National Association as trustee (the 'Trustee'), to
acquire and hold certain royalty interests (the 'Royalty Interests') in
certain properties (the 'Royalty Properties') conveyed to the Trust by Santa
Fe Energy Resources, Inc. ('Santa Fe'). The Trust is a passive entity with the
Trustee's primary responsibility being the collection and distribution of
proceeds from the Royalty Interests and the payment of Trust liabilities and
expenses (see Note 1 to the financial statements of the Trust). The Royalty
Interests consist of two term royalty interests in two production units (the
Wasson ODC Unit and the Wasson Willard Unit) in the Wasson field in west Texas
(the 'Wasson Royalties') and a net profits royalty interest (the 'Net Profits
Royalties') in certain royalty and working interest properties in a
diversified portfolio of properties located predominately in Texas, Louisiana
and Oklahoma (the 'Net Profits Properties'). Under the terms of the Trust
Agreement, the Trustee cannot engage in any other business or commercial
activity or acquire any asset other than the Royalty Interests initially
conveyed to the Trust. Therefore, the Royalty Interests are the sole source of
funds for the Trust from which to pay expenses and liabilities and make
distributions to the holders of the Trust Units. The Trust will be liquidated
on or before February 15, 2008 (the 'Liquidation Date').

     The Wasson Royalties are fixed percentage royalty interests in specified
levels of quarterly maximum production from the underlying properties in each
year during the term of the respective royalty. The Wasson ODC Royalty and the
Wasson Willard Royalty terminate on December 31, 2007 and December 31, 2003,
respectively. The Net Profits Royalties are life-of-property interests which
will be sold by the Trust prior to the Liquidation Date. The Net Profits
Royalties entitle the Trust to receive 90% of the net proceeds (after
deducting, among other things, the costs of production and marketing and
capital expenditures) from the sale of production from the Net Profits
Properties. The Net Profits Properties are generally mature producing oil and
gas properties and the production and reserves attributable to such properties
are expected to decline substantially over the life of the Trust. The Net
Profits Royalties are expected to have a relatively small liquidation value at
the Liquidation Date.

     For any calendar quarter ending on or prior to December 31, 2002, the
Trust will receive additional royalty payments ('Support Payments') to the
extent it needs such payments to distribute $0.40 per Trust Unit per quarter.
Such Support Payments are limited to Santa Fe's remaining royalty interest in
the Wasson ODC Unit. If Support Payments are received, certain proceeds
otherwise payable to the Trust in subsequent quarters may be reduced to recoup
the amount of such Support Payments. The aggregate amount of Support Payments,
net of any amounts recouped, is limited to $20.0 million on a revolving basis.
Through the end of the third quarter of 1995, Support Payments received by the
Trust totalled $1,845,000 and the cash proceeds to be received in the fourth
quarter of 1995 will include a Support Payment of $229,000 (see Results of
Operations). Depending on factors such as sales prices and volumes and the
level of operating costs and capital expenditures, Support Payments may be
required in subsequent quarters to allow the Trust to make distributions of
$0.40 per Trust Unit per quarter.
 
     Trust expenses include accounting, engineering, legal and other
professional fees, Trustee fees, an administrative fee paid to Santa Fe and
other out-of-pocket expenses. From time to time Santa Fe may, at its sole
discretion and without any obligation to do so, advance funds to the Trust for
the timely payment of such expenses and receive reimbursement therefore in
later periods. In addition,
 
                                      7
 
the Trustee is authorized to borrow funds required to pay liabilities of the
Trust, provided that such borrowings are repaid in full prior to making
further distributions to the holders of the Trust Units. Currently there are
no such borrowings outstanding or contemplated other than the above-described
advances which Santa Fe has made or may continue to make.
 
     The Trust's results of operations are dependent upon the sales prices and
quantities of oil and gas produced from the Royalty Properties, the costs of
producing such resources and the amount of capital expenditures made with
respect to such properties. Royalty income is recorded by the Trust when
received, generally during the quarter following the end of the quarter in
which revenues are received and costs and expenses are paid by Santa Fe. Cash
proceeds from the Royalty Properties may fluctuate from quarter to quarter due
to the timing of receipts and payments of revenues and expenses as well as
changes in prices and production volumes. In addition, amounts for future
exploration and development costs may be reserved from time to time.
 
     Since, on an equivalent basis, the majority of the Trust's proved
reserves are crude oil, even relatively modest changes in crude oil prices may
significantly affect the Trust's revenues and results of operations. Crude oil
prices are subject to significant changes in response to fluctuations in the
domestic and world supply and demand and other market conditions as well as
the world political situation as it affects OPEC, the Middle East and other
producing countries. In addition, a substantial portion of the Trust's
revenues come from properties which produce sour (i.e., high sulfur content)
crude oil which sells at prices lower than sweeter (i.e., low sulfur content)
crude oils. The sales price of crude oil, which showed improvement from
mid-1994 through the Trust's third quarter of 1995, declined in the fourth
quarter of 1995 (see Results of Operations).

     Natural gas prices fluctuate due to weather conditions, the level of
natural gas in storage, the relative balance between supply and demand and
other economic factors. The Trust's average price for natural gas in the third
quarter of 1995 was $1.30 per Mcf (excluding the effect of a gas balancing
arrangement settlement received during the period, see Results of Operations),
significantly lower than the Trust's average price of $1.84 per Mcf for the
third quarter of 1994. The Trust's average price for natural gas improved to
$1.46 per Mcf in the fourth quarter of 1995.

                                      8
<PAGE>
RESULTS OF OPERATIONS

     Royalty income is recorded by the Trust when received, generally during
the quarter following the end of the quarter in which revenues are received
and costs and expenses are paid by Santa Fe. Cash proceeds from the Royalty
Properties may fluctuate from quarter to quarter due to the timing of receipts
and payments of revenues and costs and expenses as well as changes in prices
and production volumes. The following table reflects pertinent information
with respect to the cash proceeds from the Royalty Properties and the net
distributable cash of the Trust. The information presented with respect to the
fourth quarter of 1995 reflects revenues received and costs and expenses paid
by Santa Fe in the third quarter of 1995. In the fourth quarter of 1995 the
Trust will receive a payment of $2,595,000 and on November 30, 1995 will make
a cash distribution of $2,520,000, or $0.40 per Trust Unit, to unitholders of
record an November 14, 1995.
<TABLE>
<CAPTION>
                                           THREE MONTHS            NINE MONTHS
                                       ENDED SEPTEMBER 30,     ENDED SEPTEMBER 30,      FOURTH
                                       --------------------  ------------------------   QUARTER
                                         1995       1994        1995         1994       1995(1)
                                       ---------  ---------  -----------  -----------  ---------
                                                (THOUSANDS OF DOLLARS, EXCEPT AS NOTED)
<S>                                      <C>        <C>        <C>          <C>          <C>    
VOLUMES AND PRICES
  Oil Volumes (Bbls)
    Wasson ODC Royalty...............     63,800     51,800      179,400      145,200     63,800
    Wasson Willard Royalty...........     33,800     35,100      102,700      105,700     33,800
    Net Profits Royalties............     73,511     85,613      227,201      255,009     77,448
    Support Payments.................     17,222       --         60,101       64,846     13,648
  Gas Volumes (Mcf)
    Net Profits Royalties............    795,705    774,139    2,122,230    2,235,406    605,167
  Oil Average Prices ($/Bbl)
    Wasson ODC Royalty...............      17.47      16.13        16.65        14.39      16.75
    Wasson Willard Royalty...........      17.47      16.13        16.59        14.35      16.75
    Net Profits Royalties............      16.46      12.93        15.41        12.93      15.72
    Support Payments.................      17.47       --          16.26        13.38      16.75
  Gas Average Prices ($/Mcf)
    Net Profits Royalties............       1.19       1.84         1.39         1.89       1.46
CASH PROCEEDS AND DISTRIBUTABLE CASH
  Wasson ODC Royalty
    Sales............................      1,115        835        2,987        2,089      1,069
    Operating Expenses...............       (137)      (207)        (428)        (448)       (73)
                                       ---------  ---------  -----------  -----------  ---------
                                             978        628        2,559        1,641        996
                                       ---------  ---------  -----------  -----------  ---------
  Wasson Willard Royalty
    Sales............................        591        566        1,704        1,516        566
    Operating Expenses...............        (94)       (40)        (355)        (202)       (24)
                                       ---------  ---------  -----------  -----------  ---------
                                             497        526        1,349        1,314        542
                                       ---------  ---------  -----------  -----------  ---------
  Net Profits Royalties
    Sales............................      2,180      2,530        6,528        7,529      2,055
    Operating Expenses...............       (747)      (764)      (2,182)      (2,393)      (783)
    Capital Expenditures.............       (620)      (198)      (1,331)        (782)      (390)
                                       ---------  ---------  -----------  -----------  ---------
                                             813      1,568        3,015        4,354        882
                                       ---------  ---------  -----------  -----------  ---------
  Support Payments...................        301       --            978          868        229
                                       ---------  ---------  -----------  -----------  ---------
  Total Royalties....................      2,589      2,722        7,901        8,177      2,649
  Administrative Fee to Santa Fe.....        (54)       (52)        (160)        (154)       (54)
  Trust Formation Costs..............       --         --          --            (108)      --
                                       ---------  ---------  -----------  -----------  ---------
  Payment Received...................      2,535      2,670        7,741        7,915      2,595
  Cash Advance From Santa Fe.........       --           90           90          396       --
  Repayment of Cash Advance from
    Santa Fe.........................        (15)      (150)        (165)        (361)       (75)
  Cash Withheld for Trust Expenses...       --          (90)        (106)        (390)      --
                                       ---------  ---------  -----------  -----------  ---------
  Distributable Cash.................      2,520      2,520        7,560        7,560      2,520
                                       =========  =========  ===========  ===========  =========
  Distributable Cash Per Trust Unit
    (in dollars).....................    0.40000    0.40000      1.20000      1.20000    0.40000
                                       =========  =========  ===========  ===========  =========
</TABLE>
------------
 
(1) Does not reflect any cash advances from Santa Fe which may be received by
    the Trust during the fourth quarter.
 
                                      9
 
     Oil prices improved in the third quarter of 1995, averaging $17.47 per
barrel for the Wasson Royalties and $16.46 per barrel for the Net Profits
Royalties compared to $16.13 per barrel and $12.93 per barrel, respectively,
in the third quarter of 1994. Oil prices declined in the fourth quarter of
1995, averaging $16.75 per barrel for the Wasson Royalties and $15.72 per
barrel for the Net Profits Royalties. Oil prices in the first nine months of
1995 averaged $16.63 per barrel for the Wasson Royalties and $15.41 per barrel
for the Net Profits Royalties compared to $14.37 per barrel and $12.93 per
barrel, respectively, in the first nine months of 1994.
 
     Natural gas prices declined in the third quarter of 1995 averaging $1.19
per Mcf compared to $1.84 per Mcf in the third quarter of 1994. Natural gas
revenues for the third quarter of 1995 include $135,400 attributable to the
settlement of a natural gas balancing arrangement and natural gas volumes
include 173,582 Mcf attributable to such settlement. Excluding the effect of
the settlement, the average sales price for natural gas in the third quarter
of 1995 was approximately $1.30 per Mcf. Natural gas sales prices improved to
an average of $1.46 per Mcf in the fourth quarter of 1995. Natural gas sales
prices averaged $1.39 per Mcf in the first nine months of 1995 ($1.44 per Mcf
excluding the gas balancing settlement) compared to $1.89 per Mcf in the first
nine months of 1994.
 
     Cash proceeds in the first and second quarters of 1994 included Support
Payments of $362,100 and $505,700, respectively, primarily resulting from
lower realized oil prices and increased capital expenditures principally
related to the drilling of new wells. Cash proceeds in the first and third
quarters of 1995 included Support Payments of $676,600 and $300,900,
respectively, primarily resulting from lower natural gas prices and a
continuation of drilling expenditures. Cash proceeds to be received in the
fourth quarter of 1995 will include a Support Payment of $229,000.
 
     Proceeds from the Net Profits Royalties are net of capital expenditures
with respect to the exploration and development of the Net Profits Properties.
Capital expenditures for 1995 total $1,721,000, including $390,000
attributable to the fourth quarter. Capital expenditures are expected to be
lower for the year 1996, totalling approximately $500,000. Operating expenses
for the Net Profits Royalties averaged $3.62 per barrel of oil equivalent
('BOE') in the third quarter of 1995 ($4.21 per BOE excluding the effect of
the volumes associated with the gas balancing settlement) and $3.76 per BOE in
the first nine months of 1995 compared to $3.56 per BOE and $3.82 per BOE,
respectively, in the comparable periods in 1994. Operating expenses averaged
$4.46 per BOE in the fourth quarter of 1995 ($4.19 per BOE excluding the
effect of certain remedial expenses related to a producing well).
 
                                      10
 
                                  SIGNATURES
 
     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
 
                                        SANTA FE ENERGY TRUST
 
                                        By  TEXAS COMMERCE BANK NATIONAL
                                             ASSOCIATION, TRUSTEE
 
                                        By  /s/    MICHAEL J. ULRICH
                                                   MICHAEL J. ULRICH
                                             SENIOR VICE PRESIDENT & TRUST
                                                        OFFICER
Date:  November 14, 1995
 
     The Registrant, Santa Fe Energy Trust, has no principal executive
officer, principal financial officer, controller or principal accounting
officer, board of directors or persons performing similar functions.
Accordingly, no additional signatures are available and none have been
provided.
 
                                      11