##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

[X] Quarterly Report
Pursuant To Section 13 Or 15 (d) Of The Securities Exchange Act Of 1934

For the quarterly period ended March 31, 2003

or

[  ]
Transition Report Pursuant To Section 13 Or 15 (d) Of The Securities Exchange Act Of 1934

For the transition period from ________________ to __________________

Commission file number 0-18691

NORTH COAST ENERGY, INC.(Exact name of Registrant as specified in its
charter)

|                                         |  |                                     
|---------------------------------------- |  | ------------------------------------
|Delaware                                 |  | 34-1594000                          
|(State of incorporation)                 |  | (I.R.S. Employer Identification No.)
|                                        
|1993 Case Parkway                        |  |                                     
|Twinsburg, Ohio                          |  | 44087-2343                          
|(Address of principal executive offices) |  | (Zip Code)                          

Registrants telephone number, including area code: (330) 425-2330

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
.

Indicate by a check mark whether the registrant is an accelerated filer (as
defined in Rule 12-b-2 of the Exchange Act).

Yes
.   No
X.

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuers classes of
Common Stock, as of the latest practicable date.

|                             |  |                              
|---------------------------- |  | -----------------------------
|Class                        |  | Outstanding at March 31, 2003
|                             |  |                              
|Common Stock, $.01 par value |  | 15,251,783                   





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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES

|                                                                                              |                                                      |                                                    |    |          |   | 
|--------------------------------------------------------------------------------------------- | ---------------------------------------------------- | -------------------------------------------------- | -- | -------- | - | 
|                                                                                              |                                                      |                                                    |    | Page No.
|                                                                                              |                                                      |                                                    |    |         
|PART I   FINANCIAL INFORMATION                                                               |                                                      |                                                    |    |         
|                                                                                             
|Item 1. Financial Statements                                                                  |                                                      |                                                    |    |         
|                                                                                             
|                                                                                              | Consolidated Balance Sheets -                        |                                                    |    |          |  
|                                                                                              |                                                      | March 31, 2003 (Unaudited) and December 31, 2002   |    |          | 3 | 
|                                                                                             
|                                                                                              | Unaudited Consolidated Statements of Income -        |                                                    |    |          |  
|                                                                                              |                                                      | For the Three Months Ended March 31, 2003 and 2002 |    |          | 5 | 
|                                                                                             
|                                                                                              | Unaudited Consolidated Statements of Cash Flows -    |                                                    |    |          |  
|                                                                                              |                                                      | For the Three Months Ended March 31, 2003 and 2002 |    |          | 6 | 
|                                                                                             
|                                                                                              | Unaudited Notes to Consolidated Financial Statements |                                                    |    | 7        |  
|                                                                                             
|Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations |                                                      |                                                    | 13 |         
|                                                                                             
|Item 3. Quantitative and Qualitative Disclosures About Market Risk                            |                                                      |                                                    | 18 |         
|                                                                                             
|Item 4. Controls and Procedures                                                               |                                                      |                                                    | 19 |         
|                                                                                             
|PART II  OTHER INFORMATION                                                                   |                                                      |                                                    | 20 |         
|                                                                                             
|CHIEF EXECUTIVE OFFICER CERTIFICATION                                                         |                                                      |                                                    | 22 |         
|                                                                                             
|CHIEF FINANCIAL OFFICER CERTIFICATION                                                         |                                                      |                                                    | 23 |         

2



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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2003 and December 31, 2002

|                                                          |                                             |                      |             |             |            |              |             |             |            | 
|--------------------------------------------------------- | ------------------------------------------- | -------------------- | ----------- | ----------- | ---------- | ------------ | ----------- | ----------- | ---------- | 
|                                                          |                                             |                      |             | March 31,   |            | December 31,
|ASSETS                                                    |                                             | 2003                 |             | 2002       
|                                                          |                                             |                      |             |            
|                                                          |                                             |                      |             | (Unaudited) |            |              |             |            
|CURRENT ASSETS                                            |                                             |                      |             |             |            |              |             |            
|                                                          | Cash and equivalents                        |                      | $           | 16,333,534  |            |              | $           | 14,711,205  |           
|                                                          | Accounts receivable                         |                      |             | 10,124,248  |            |              |             | 5,796,537   |           
|                                                          | Inventories                                 |                      |             | 267,104     |            |              |             | 353,722     |           
|                                                          | Prepaid expenses                            |                      |             | 306,985     |            |              |             | 404,726     |           
|                                                          |                                             |                      |             |             |            |              |             |            
|                                                          |                                             | Total current assets |             |             | 27,031,871 |              |             |             | 21,266,190 | 
|PROPERTY AND EQUIPMENT, at cost                           |                                             |                      |             |             |            |              |             |            
|                                                          | Land                                        |                      |             | 222,822     |            |              |             | 222,822     |           
|                                                          | Oil and gas properties (successful efforts) |                      |             | 145,398,951 |            |              |             | 143,952,276 |           
|                                                          | Gathering systems                           |                      |             | 17,311,950  |            |              |             | 17,137,184  |           
|                                                          | Vehicles                                    |                      |             | 2,480,995   |            |              |             | 2,288,388   |           
|                                                          | Furniture and fixtures                      |                      |             | 1,050,062   |            |              |             | 991,438     |           
|                                                          | Buildings and improvements                  |                      |             | 2,166,223   |            |              |             | 1,877,667   |           
|                                                          |                                             |                      |             |             |            |              |             |            
|                                                          |                                             |                      | 168,631,003 |             |            |              | 166,469,775 |            
|Less accumulated depreciation, depletion
and amortization |                                             |                      | 39,352,835  |             |            |              | 37,213,430  |            
|                                                          |                                             |                      |             |             |            |              |             |            
|                                                          |                                             |                      | 129,278,168 |             |            |              | 129,256,345 |            
|OTHER ASSETS, net                                         |                                             |                      | 1,033,493   |             |            |              | 1,328,595   |            
|                                                          |                                             |                      |             |             |            |              |             |            
|TOTAL ASSETS                                              |                                             | $                    | 157,343,532 |             |            | $            | 151,851,130 |            
|                                                          |                                             |                      |             |             |            |              |             |            

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

3



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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2003 and December 31, 2002

|                                                      |                                                                                                                                                                    |                            |             |             |            |              |             |            |            | 
|----------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------- | ----------- | ----------- | ---------- | ------------ | ----------- | ---------- | ---------- | 
|                                                      |                                                                                                                                                                    |                            |             | March 31,   |            | December 31,
|LIABILITIES
AND STOCKHOLDERS EQUITY                  |                                                                                                                                                                    | 2003                       |             | 2002       
|                                                      |                                                                                                                                                                    |                            |             |            
|                                                      |                                                                                                                                                                    |                            |             | (Unaudited) |            |              |             |           
|CURRENT LIABILITIES                                   |                                                                                                                                                                    |                            |             |             |            |              |             |           
|                                                      | Accounts payable                                                                                                                                                   |                            | $           | 3,261,725   |            |              | $           | 3,369,632  |           
|                                                      | Accrued expenses                                                                                                                                                   |                            |             | 7,726,160   |            |              |             | 7,077,717  |           
|                                                      |                                                                                                                                                                    |                            |             |             |            |              |             |           
|                                                      |                                                                                                                                                                    | Total current liabilities  |             |             | 10,987,885 |              |             |            | 10,447,349 | 
|                                                     
|LONG-TERM DEBT                                        |                                                                                                                                                                    |                            |             |             |            |              |             |           
|                                                      | Affiliates                                                                                                                                                         |                            |             | 10,000,000  |            |              |             | 10,000,000 |           
|                                                      | Non-affiliates                                                                                                                                                     |                            |             | 57,000,000  |            |              |             | 57,000,000 |           
|                                                      |                                                                                                                                                                    |                            |             |             |            |              |             |           
|                                                      |                                                                                                                                                                    |                            | 67,000,000  |             |            |              | 67,000,000  |           
|                                                     
|OTHER LONG-TERM LIABILITIES                           |                                                                                                                                                                    |                            | 1,201,316   |             |            |              | 208,456     |           
|                                                     
|DEFERRED INCOME TAXES                                 |                                                                                                                                                                    |                            | 10,796,918  |             |            |              | 9,458,421   |           
|                                                     
|COMMITMENTS AND CONTINGENCIES                         |                                                                                                                                                                    |                            |             |             |            |              |             |           
|                                                     
|STOCKHOLDERS EQUITY                                  |                                                                                                                                                                    |                            |             |             |            |              |             |           
|Series A, 6% Noncumulative Convertible Preferred      |                                                                                                                                                                    |                            | 721         |             |            |              | 723         |           
|                                                      | stock, par value $.01 per share; 563,270 shares
authorized; 72,111 and 72,336 shares issued and outstanding
(aggregate liquidation value of $721,110 and $723,360) |                            |             |             |            |              |             |            |           
|                                                     
|Series B, Cumulative Convertible Preferred stock, par |                                                                                                                                                                    |                            |            |             |            |              |            |           
|                                                      | value $.01 per share; 625,000 shares authorized;
no shares issued or outstanding                                                                                   |                            |             |             |            |              |             |            |           
|                                                     
|Undesignated Serial Preferred stock, par value $.01   |                                                                                                                                                                    |                            |            |             |            |              |            |           
|                                                      | per share; 811,730 shares authorized; no shares issued
or outstanding                                                                                              |                            |             |             |            |              |             |            |           
|                                                     
|Common Stock, par value $.01 per share; 60,000,000    |                                                                                                                                                                    |                            | 152,519     |             |            |              | 152,086     |           
|                                                      | shares authorized; 15,251,783 and 15,208,634 shares issued
and outstanding                                                                                         |                            |             |             |            |              |             |            |           
|Additional paid-in capital                            |                                                                                                                                                                    |                            | 48,042,871  |             |            |              | 47,889,111  |           
|Accumulated other comprehensive loss                  |                                                                                                                                                                    |                            | (2,968,847  | )           |            |              | (1,430,225  | )         
|Retained earnings                                     |                                                                                                                                                                    |                            | 22,130,149  |             |            |              | 18,125,209  |           
|                                                      |                                                                                                                                                                    |                            |             |             |            |              |             |           
|                                                      |                                                                                                                                                                    | Total stockholders equity |             |             | 67,357,413 |              |             |            | 64,736,904 | 
|                                                      |                                                                                                                                                                    |                            |             |             |            |              |             |           
|                                                     
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY            |                                                                                                                                                                    | $                          | 157,343,532 |             |            | $            | 151,851,130 |           
|                                                      |                                                                                                                                                                    |                            |             |             |            |              |             |           

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

4



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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended March 31, 2003 and 2002
(Unaudited)

|                                         |                                                                                                                                    |   |                              |            |      |   |            |           | 
|---------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | - | ---------------------------- | ---------- | ---- | - | ---------- | --------- | 
|                                         |                                                                                                                                    |   | Three Months Ended March 31,
|                                         |                                                                                                                                    |   |                             
|                                         |                                                                                                                                    |   | 2003                         |            | 2002
|                                         |                                                                                                                                    |   |                              |            |     
|REVENUE                                  |                                                                                                                                    |   |                              |            |      |   |            |          
|                                         | Oil and gas production                                                                                                             |   | $                            | 13,048,383 |      |   | $          | 8,388,115 | 
|                                         | Drilling revenues                                                                                                                  |   |                              |           |      |   |            | 2,082,351 | 
|                                         | Well operating, gathering and other                                                                                                |   |                              | 1,334,132  |      |   |            | 1,678,280 | 
|                                         |                                                                                                                                    |   |                              |            |      |   |            |          
|                                         |                                                                                                                                    |   | 14,382,515                   |            |      |   | 12,148,746 |          
|                                        
|COSTS AND EXPENSES                       |                                                                                                                                    |   |                              |            |      |   |            |          
|                                         | Oil and gas production expenses                                                                                                    |   |                              | 2,580,161  |      |   |            | 1,918,480 | 
|                                         | Drilling costs                                                                                                                     |   |                              |           |      |   |            | 1,752,455 | 
|                                         | Well operating, gathering and other                                                                                                |   |                              | 1,006,086  |      |   |            | 800,896   | 
|                                         | Exploration expense                                                                                                                |   |                              | 522,333    |      |   |            | 227,330   | 
|                                         | General and administrative expenses                                                                                                |   |                              | 1,288,552  |      |   |            | 909,733   | 
|                                         | Depreciation, depletion and amortization                                                                                           |   |                              | 2,209,514  |      |   |            | 2,105,976 | 
|                                         |                                                                                                                                    |   |                              |            |      |   |            |          
|                                         |                                                                                                                                    |   | 7,606,646                    |            |      |   | 7,714,870  |          
|                                         |                                                                                                                                    |   |                              |            |      |   |            |          
|                                        
|INCOME FROM OPERATIONS                   |                                                                                                                                    |   | 6,775,869                    |            |      |   | 4,433,876  |          
|                                        
|INTEREST EXPENSE, NET                    |                                                                                                                                    |   |                              |            |      |   |            |          
|                                         | Interest income                                                                                                                    |   |                              | 110,614    |      |   |            | 82,120    | 
|                                         | Interest expense                                                                                                                   |   |                              | 713,043    |      |   |            | 787,797   | 
|                                         |                                                                                                                                    |   |                              |            |      |   |            |          
|                                         |                                                                                                                                    |   | 602,429                      |            |      |   | 705,677    |          
|                                         |                                                                                                                                    |   |                              |            |      |   |            |          
|                                        
|INCOME BEFORE PROVISION
FOR INCOME TAXES |                                                                                                                                    |   | 6,173,440                    |            |      |   | 3,728,199  |          
|                                        
|PROVISION FOR INCOME TAXES               |                                                                                                                                    |   | 2,168,500                    |            |      |   | 1,268,209  |          
|                                         |                                                                                                                                    |   |                              |            |      |   |            |          
|                                        
|NET INCOME                               |                                                                                                                                    | $ | 4,004,940                    |            |      | $ | 2,459,990  |          
|                                         |                                                                                                                                    |   |                              |            |      |   |            |          
|                                        
|NET INCOME APPLICABLE TO COMMON STOCK    |                                                                                                                                    |   |                              |            |      |   |            |          
|                                         | (after dividends on Cumulative Preferred Stock of
$0 and $58,165 for the three months ended March 31,
2003 and 2002, respectively) |   | $                            | 4,004,940  |      |   | $          | 2,401,823 | 
|                                         |                                                                                                                                    |   |                              |            |      |   |            |          
|                                        
|NET INCOME PER SHARE                     |                                                                                                                                    |   |                              |            |      |   |            |          
|(basic and diluted)                      |                                                                                                                                    | $ | 0.26                         |            |      | $ | 0.16       |          
|                                         |                                                                                                                                    |   |                              |            |      |   |            |          

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

5



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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2003 and 2002
(Unaudited)

|                                                   |                                            |                                                                                   |                                          |                                                      |         |           |            |            |         |           |            |  
|-------------------------------------------------- | ------------------------------------------ | --------------------------------------------------------------------------------- | ---------------------------------------- | ---------------------------------------------------- | ------- | --------- | ---------- | ---------- | ------- | --------- | ---------- | -
|                                                   |                                            |                                                                                   |                                          |                                                      |         | March 31, |            | March 31, 
|                                                   |                                            |                                                                                   |                                          |                                                      |         | 2003      |            | 2002      
|                                                   |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|CASH FLOWS FROM OPERATING ACTIVITIES               |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                   | Net income                                 |                                                                                   | $                                        | 4,004,940                                            |         |           | $          | 2,459,990  |        
|                                                   |                                            | Adjustments to reconcile net income to net cash provided by operating activities: |                                          |                                                      |         |           |            |            |         |          
|                                                   |                                            |                                                                                   | Depreciation, depletion and amortization |                                                      |         | 2,209,514 |            |            |         | 2,105,976 |           
|                                                   |                                            |                                                                                   | Deferred income taxes                    |                                                      |         | 2,168,500 |            |            |         | 1,267,799 |           
|                                                   |                                            |                                                                                   | Gain on sale of property and equipment   |                                                      |         | (581      | )          |            |         |          |           
|                                                   |                                            |                                                                                   | Change in:                               |                                                      |         |           |            |            |         |           |           
|                                                   |                                            |                                                                                   |                                          | Accounts receivable                                  |         |           | (4,327,711 | )          |         |           | 480,747    |  
|                                                   |                                            |                                                                                   |                                          | Inventories and other current assets                 |         |           | 184,359    |            |         |           | (398,525   | )
|                                                   |                                            |                                                                                   |                                          | Other assets, net                                    |         |           | 253,704    |            |         |           | 372,486    |  
|                                                   |                                            |                                                                                   |                                          | Accounts payable and accrued expenses                |         |           | (759,337   | )          |         |           | (465,878   | )
|                                                   |                                            |                                                                                   |                                          | Billings in excess of costs on uncompleted contracts |         |           |           |            |         |           | (2,062,094 | )
|                                                   |                                            |                                                                                   |                                          | Other long term liabilities                          |         |           | (75,894    | )          |         |           |           |  
|                                                   |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                   |                                            |                                                                                   |                                          | Total adjustments                                    |         |           | (347,446   | )          |         |           | 1,300,511  |  
|                                                   |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                   |                                            |                                                                                   |                                          | Net cash provided by operating activities            |         |           | 3,657,494  |            |         |           | 3,760,501  |  
|                                                  
|CASH FLOWS FROM INVESTING ACTIVITIES               |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                   | Purchases of property and equipment        |                                                                                   |                                          | (2,192,356                                           | )       |           |            | (6,048,179 | )      
|                                                   | Proceeds on sale of property and equipment |                                                                                   |                                          | 3,000                                                |         |           |            |           |        
|                                                   |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                   |                                            |                                                                                   |                                          | Net cash used by investing activities                |         |           | (2,189,356 | )          |         |           | (6,048,177 | )
|                                                  
|CASH FLOWS FROM FINANCING ACTIVITIES               |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                   | Net proceeds from issuance of common stock |                                                                                   |                                          | 154,191                                              |         |           |            |           |        
|                                                   | Redemption of Preferred B stock            |                                                                                   |                                          |                                                     |         |           |            | (2,326,640 | )      
|                                                   | Dividends                                  |                                                                                   |                                          |                                                     |         |           |            | (58,165    | )      
|                                                   |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                   |                                            |                                                                                   |                                          | Net cash provided (used) by financing activities     |         |           | 154,191    |            |         |           | (2,384,807 | )
|                                                  
|INCREASE (DECREASE) IN CASH AND EQUIVALENTS        |                                            |                                                                                   | 1,622,329                                |                                                      |         |           | (4,672,483 | )         
|                                                  
|CASH AND EQUIVALENTS AT BEGINNING OF PERIOD        |                                            |                                                                                   | 14,711,205                               |                                                      |         |           | 22,035,924 |           
|                                                   |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                  
|CASH AND EQUIVALENTS AT END OF PERIOD              |                                            | $                                                                                 | 16,333,534                               |                                                      |         | $         | 17,363,441 |           
|                                                   |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                  
|Supplemental disclosures of cash flow information: |                                            |                                                                                   |                                          |                                                      |         |           |            |           
|                                                   | Cash paid during the period for:           |                                                                                   |                                          |                                                      |         |           |            |            |        
|                                                   |                                            | Interest                                                                          |                                          | $                                                    | 851,945 |           |            | $          | 666,187 |          
|                                                   |                                            | Income taxes                                                                      |                                          |                                                      |        |           |            |            | 32,012  |          

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

6



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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Summary of Accounting Policies



|A. |  | General                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | The accompanying unaudited consolidated financial statements included
herein, have been prepared by North Coast Energy, Inc. in accordance with
accounting principles generally accepted in the United States of America
for interim financial information and with instructions to Form 10-Q and
Article 10 of U.S. Securities and Exchange Commission (SEC) Regulation
S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary
for fair presentation have been included. These financial statements
should be read in conjunction with the financial statements and notes
thereto which are in the Companys Annual Report on Form 10-K for the
fiscal year ended December 31, 2002.
|  
|   |  | The balance sheet at December 31, 2002, presented in this report, has been
derived from the audited financial statements at that date but does not
include all of the information and footnotes included in the Companys
annual report on Form 10-K for the year ended December 31, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   |  | The results of the operations for the interim periods may not necessarily
be indicative of the results to be expected for the full year. In
addition, the preparation of these financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that effect the reported amounts of assets and
liabilities at the date of the consolidated financial statements and
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.                                                                                                                                                                                                                                                                                                                                              
|  
|   |  | The accompanying financial statements should be read in connection with
the Notes to Consolidated Financial Statements included in Item 8.
Financial Statements and Supplemental Data in the Companys 2002 Annual
Report on Form 10-K filed with the SEC. Following is a discussion of the
Companys most critical accounting policies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|  
|B. |  | Oil and Gas Investments and Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  
|   |  | The Company uses the successful efforts method of accounting for its oil
and gas producing activities. Under successful efforts, 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
developmental wells are capitalized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   |  | Costs to drill exploratory wells that do not find proved reserves, costs
of developmental wells on properties the Company has no further interest
in, geological and geophysical costs, and costs of carrying and retaining
unproved properties are expensed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|  
|C. |  | Oil and Gas Reserves                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   |  | The Companys proved developed and proved undeveloped reserves are all
located within the Appalachian and Illinois Basins in the United States.
The Company cautions that there are many uncertainties inherent in
estimating proved reserve quantities and in projecting future production
rates and the timing of development expenditures. In addition, estimates
of new discoveries are more imprecise than those of properties with a
production history. Accordingly, these estimates are expected to change
as future information becomes available.                                                                                                                                                                                                                                                                                                                                                     

7



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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  Continued



|   |  | Material revisions of reserve estimates may occur in the future,
development and production of the oil and gas reserves may not occur in
the periods assumed, actual prices realized and actual costs incurred may
very significantly from assumptions used. Proved reserves represent
estimated quantities of natural gas and oil that geological and
engineering data demonstrate with reasonable certainty, to be recoverable
in future years from known reservoirs under economic and operating
conditions existing at the time the estimates were made. Proved developed
reserves are expected to be recovered through wells and equipment in place
and under operating methods being utilized at the time the estimates were
made. The accuracy of a reserve estimate is a function of the quality and
quantity of available data, the accuracy of assumptions used and the
judgment of the persons preparing the estimate.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | The Companys proved reserve information is based on estimates it
prepared. Estimates prepared by others may be higher or lower than the
Companys estimates. The Companys estimates of proved reserves have been
reviewed by independent petroleum engineers at each fiscal year end, most
recently, December 31, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|  
|D. |  | Capitalization, Depreciation, Depletion and Impairment of
Long-Lived Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|   |  | When a property is determined to contain proved reserves, the capitalized
costs of such properties are transferred from unproved properties to
proved properties and are amortized on a group (pool) basis with proved
properties having similar characteristics, by the unit-of-production
method based upon estimated proved developed reserves. To the extent that
capitalized costs of each pool of proved properties exceed the estimated
future net cash flow from such pool, the excess capitalized costs are
written down to the present value of such amount. Estimated future net
cash flows are determined based primarily upon the estimate future proved
reserves related to the Companys current proved properties.                                                                                                                                                                                               
|  
|   |  | On sale or abandonment of an entire interest in an unproved property, gain
or loss is recognized, taking into consideration the amount of any
recorded impairment. 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. The carrying cost of unproved properties is
approximately $3,500,000 at March 31, 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  
|   |  | Unproved oil and gas properties that are 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 expensed when surrendered or expired.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  
|   |  | Property and equipment are stated at cost and are depreciated or depleted
principally on methods and at rates designed to amortize their costs over
their estimated useful lives (proved oil and gas properties using the
unit-of-production method based upon estimated proved developed oil and
gas reserves, gathering systems using the straight-line method over 10 to
25 years, vehicles, furniture and fixtures using various methods over 3 to
15 years and building and improvements using various methods over 7  31.5
years).                                                                                                                                                                                                                                                                                                                                                                                        
|  
|   |  | The Company follows Statement of Financial Accounting Standards (SFAS)
No. 144 which requires a review for impairment whenever circumstances
indicate that the carrying amount of an asset may not be recoverable.
Impairment is recorded as impaired properties are identified.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|E. |  | Derivatives and Hedging                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|  
|   |  | The hedging relationship between the hedging instruments and hedged item
must be highly effective. The Company measures effectiveness at least on
a monthly basis. Ineffective portions of a derivative instruments change
in fair value are immediately recognized in net income (loss). If there
is a discontinuance of a cash flow hedge because it is probable that the
original forecasted transaction would not occur, deferred gains or losses
are recognized in earnings immediately.                                                                                                                                                                                                                                                                                                                                                                                                                                   

8



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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  Continued

Revenue Recognition



|   |  | Gas production revenue is recognized as production takes place. Oil
production is recognized as oil is removed from the well site. Oil and
gas marketing revenues are recognized when title passes. Oilfield service
revenues are recognized when services have been provided.
|-- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|F. |  | Per Share Amounts                                                                                                                                                                                                                                                             
|  
|   |  | The average number of shares used in computing basic and diluted net
income per share was 15,251,783 and 15,342,543 and 15,208,269 and
15,241,859 for the three months ended March 31, 2003 and 2002,
respectively.                                                           
|  
|H. |  | Reclassifications                                                                                                                                                                                                                                                             
|  
|   |  | Certain reclassifications were made to prior period financial statement
presentations to conform with current period presentations.                                                                                                                                           

Note 2. Stock Options



| |  | The Company accounts for stock based compensation issued to its employees
and directors in accordance with Accounting Principles Board Opinion No.
25, Accounting for Stock Issued to Employees. Accordingly, no
compensation cost has been recognized for the stock option plans, as all
options granted under the plans have an exercise price equal to the market
value of the underlying common stock on the date of the grant. The fair
value of options granted was determined using the Black-Scholes option
pricing model, assuming no dividend yield, and weighted average: risk-free
interest rates of 3.1% and 4.6% for 2003 and 2002, respectively;
volatility of 67% and 52% for 2003 and 2002, respectively; and expected
life of 5 years.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | The following table illustrates the effect on net income and earnings per
share if the Company had applied the fair value recognition provisions of
FASB Statement No. 123, Accounting for Stock-based Compensation to
stock-based employee compensation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

|                                                                                                                                            |  |                    |           |      |  |   |           |  
|------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | --------- | ---- |  | - | --------- | -
|                                                                                                                                            |  | Three Months Ended
|                                                                                                                                            |  |                   
|                                                                                                                                            |  | March 31,         
|                                                                                                                                            |  |                   
|                                                                                                                                            |  | 2003               |           | 2002
|                                                                                                                                            |  |                    |           |     
|Net income, as reported                                                                                                                     |  | $                  | 4,004,940 |      |  | $ | 2,459,990 |  
|Deduct: Total stock-based employee compensation
expense determined under fair value based
method for all awards, net of related tax effects |  |                    | (286,500  | )    |  |   | (103,300  | )
|                                                                                                                                            |  |                    |           |      |  |   |           |  
|Pro forma net income                                                                                                                        |  |                    | 3,718,440 |      |  |   | 2,356,690 |  
|Earnings per share:                                                                                                                         |  |                    |           |      |  |   |           |  
|Basic and diluted  as reported                                                                                                             |  | $                  | 0.26      |      |  | $ | 0.16      |  
|                                                                                                                                            |  |                    |           |      |  |   |           |  
|Basic and diluted  pro forma                                                                                                               |  | $                  | 0.24      |      |  | $ | 0.15      |  
|                                                                                                                                            |  |                    |           |      |  |   |           |  

Note 3. Preferred Dividends



| |  | The Company paid a dividend of $58,165 on the Cumulative Convertible
Series B Preferred Stock during the three months ended March 31, 2002.
All shares of Series B Preferred Stock were redeemed March 31, 2002.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9



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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  Continued

Note 4. Related Party Transactions



| |  | Prior to January 2002, a large portion of the Companys revenues, other
than oil and gas production revenue, was generated from, or was a result
of, the organization and management of oil and gas drilling partnerships
sponsored by the Company. The Company ceased offering these partnerships
in 2002. The Company believes that the terms of any remaining related party
transactions involving the remaining partnerships are consistent with
terms that could have been obtained from unaffiliated third parties.                                                                                                                                                                                                                                                                                                                                                                                  
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Accounts receivable from affiliates amounted to $86,373 and $72,385 at
March 31, 2003, and December 31, 2002, respectively, consisting primarily
of receivables from the partnerships managed by the Company and are for
administrative fees charged to the partnerships and to reimburse the
Company for amounts paid on behalf of the partnerships.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | A Director of the Company, Garry Regan, serves as the President of Nornew,
Inc. (Nornew), an entity that controls South Jamestown Gathering System,
LLC (South Jamestown). Prior to Mr. Regans joining Nornew in July
2001, South Jamestown had entered into a gas purchase agreement with the
Company for the sale of production from certain wells located in Erie and
Warren Counties in Pennsylvania. In March 2002, South Jamestown cancelled
the agreement, and, at the time, was in arrears for the payment of natural
gas. The largest amount due from South Jamestown in 2002 was $285,322.
After making several payments, South Jamestown executed a cognovit
promissory note in September 2002 for the balance then due of $209,285
bearing interest at the rate of 6% per annum. The balance of this
indebtedness as of March 31, 2003 was $3,544. The last payment is due
April 30, 2003.

Note 5. Financial Instruments



| |  | Derivative Financial Instruments:The Company uses financial derivatives
solely for hedging purposes. The following is a summary of the Companys
risk management strategies and the effect of these strategies on the
Companys consolidated financial statements.                                                                                                                                                                                                                                                   
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Cash Flow Hedging Strategy:The Company is exposed to commodity price
risks related to natural gas and oil. The Companys financial results can
be significantly impacted by changes in commodity prices. Costless
collars are financial derivatives that consist of a sold call option and
a purchased put option such that the combined revenue and cost of these
individual transactions is equal to or near zero. As of March 31, 2003,
the Company has entered into the following costless collar arrangements:

|                                     |  |         |         |           |  |           |      |  |  |   |      | 
|------------------------------------ |  | ------- | ------- | --------- |  | --------- | ---- |  |  | - | ---- | 
|                                     |  | Monthly |         | Price Per |  | Price Per
|                                     |  | Volume  |         | MMBtu     |  | MMBtu    
|Term                                 |  | MMBtu   |         | Floor     |  | Ceiling  
|                                     |  |         |         |           |  |          
|January 1, 2003 to December 31, 2003 |  |         | 100,000 |           |  | $         | 3.25 |  |  | $ | 4.35 | 
|January 1, 2003 to December 31, 2003 |  |         | 150,000 |           |  |           | 3.00 |  |  |   | 4.45 | 
|April 1, 2003 to December 31, 2003   |  |         | 153,000 |           |  |           | 3.60 |  |  |   | 4.68 | 
|April 1, 2003 to December 31, 2003   |  |         | 153,000 |           |  |           | 3.65 |  |  |   | 4.40 | 
|January 1, 2004 to December 31, 2004 |  |         | 152,000 |           |  |           | 3.35 |  |  |   | 4.61 | 
|January 1, 2004 to December 31, 2004 |  |         | 152,000 |           |  |           | 3.50 |  |  |   | 5.30 | 



| |  | Gains or losses on the hedges relative to the market are recognized
monthly as additions to or subtractions from oil and gas sales. To lessen
its exposure to commodity price risk, the Company expects to continue to
sell natural gas under fixed price contracts, on the spot market and to
use financial hedging instruments to realize a fixed price on a portion of
its production. As a result of the costless collars revenues were
decreased by $3,029,000 for the three months ended March 31, 2003, and
increased by $774,000 the three months ended March 31, 2002. The
mark-to-market liability associated with the collars at March 31, 2003 is
$3,584,000.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10



---



##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  Continued



| |  | The following table reflects the natural gas volumes and the weighted
average prices under financial hedges and fixed price contracts at March
31, 2003. One MMBtu is approximately equal to one Mcf.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                   |  |                            |           |                       |  |                       |      |       |  |            |      |           |  |  |         |       |  |   |      |  |  |   |      | 
|------------------ |  | -------------------------- | --------- | --------------------- |  | --------------------- | ---- | ----- |  | ---------- | ---- | --------- |  |  | ------- | ----- |  | - | ---- |  |  | - | ---- | 
|                   |  | Financial Hedges (Collars) |           | Fixed Price Contracts |  |                       |      |      
|                   |  |                            |           |                       |  |                       |      |      
|                   |  |                            |           |                       |  | Est. Realizable Price |      |       |  |            |      |           |  |  |         |       |  |  
|                   |  |                            |           |                       |  |                       |      |       |  |            |      |           |  |  |         | NYMEX
|Quarter Ending     |  | MMBtu                      |           | Floor                 |  | Cap                   |      | MMBtu |  | Est. Price |      | @ 3/31/03
|                   |  |                            |           |                       |  |                       |      |       |  |            |      |          
|June 30, 2003      |  |                            | 1,660,000 |                       |  | $                     | 3.39 |       |  | $          | 4.48 |           |  |  | 589,000 |       |  | $ | 3.65 |  |  | $ | 5.11 | 
|September 30, 2003 |  |                            | 1,670,000 |                       |  |                       | 3.39 |       |  |            | 4.48 |           |  |  | 415,000 |       |  |   | 3.68 |  |  |   | 5.12 | 
|December 31, 2003  |  |                            | 1,670,000 |                       |  |                       | 3.39 |       |  |            | 4.48 |           |  |  | 248,000 |       |  |   | 3.42 |  |  |   | 5.19 | 
|March 31, 2004     |  |                            | 905,000   |                       |  |                       | 3.42 |       |  |            | 4.95 |           |  |  | 187,000 |       |  |   | 3.29 |  |  |   | 5.22 | 
|June 30, 2004      |  |                            | 910,000   |                       |  |                       | 3.43 |       |  |            | 4.96 |           |  |  | 162,000 |       |  |   | 3.06 |  |  |   | 4.44 | 
|September 30, 2004 |  |                            | 920,000   |                       |  |                       | 3.43 |       |  |            | 4.96 |           |  |  | 158,000 |       |  |   | 3.03 |  |  |   | 4.33 | 
|December 31, 2004  |  |                            | 920,000   |                       |  |                       | 3.43 |       |  |            | 4.96 |           |  |  | 137,000 |       |  |   | 2.87 |  |  |   | 4.52 | 



| |  | Interest Rate Swaps:During 2001, the Company entered into interest rate
swap agreements that effectively convert a portion of its
variable-rate-long-term-debt to fixed rate debt for periods of up to two
years, thus reducing the impact of interest rate changes on future income.
As a result of the swap agreements, interest expense was increased by
approximately $215,000 and $122,000 for the three months ended March 31,
2003 and 2002, respectively. At March 31, 2003 the following swap
agreements were outstanding:
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                     |  |          |            |            |  |               |     |   |  |  |     |  
|------------------------------------ |  | -------- | ---------- | ---------- |  | ------------- | --- | - |  |  | --- | -
|                                     |  | Notional |            | LIBOR      |  | NCE Effective
|Term                                 |  | Amount   |            | Rate Fixed |  | Fixed Rate   
|                                     |  |          |            |            |  |              
|January 1, 2003 to December 31, 2004 |  | $        | 20,000,000 |            |  |               | 3.2 | % |  |  | 4.9 | %
|January 1, 2003 to December 31, 2004 |  | $        | 20,000,000 |            |  |               | 3.0 | % |  |  | 4.6 | %



| |  | The mark-to-market liability associated with the two interest rate swap
contracts was $1,055,254 at March 31, 2003. In February 2003 the Company
extended the term of both swaps to December 31, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | The Company qualifies for special hedge accounting treatment under SFAS
133, whereby the fair value of the hedge is recorded in the balance sheet
as either an asset or liability and changes in fair value are recognized
in other comprehensive income (loss) until settled, when the resulting
gains and losses are recorded in earnings. The effect on earnings and
other comprehensive income as a result of SFAS 133 will vary from period
to period and will be dependent upon prevailing natural gas prices and
interest rates, the volatility of forward prices for such commodities, the
amount the Company hedges and the time periods covered by such hedges.
|
| |  | The following table summarizes other comprehensive income of the Company
for the three months ended March 31, 2003 and 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

|                                                                  |                     |   |                              |            |      |   |           |          |  
|----------------------------------------------------------------- | ------------------- | - | ---------------------------- | ---------- | ---- | - | --------- | -------- | -
|                                                                  |                     |   | Three Months Ended March 31,
|                                                                  |                     |   |                             
|                                                                  |                     |   | 2003                         |            | 2002
|                                                                  |                     |   |                              |            |     
|Net Income                                                        |                     | $ | 4,004,940                    |            |      | $ | 2,459,990 |         
|Change in mark-to-market (liability) asset
net of deferred taxes: |                     |   |                              |            |      |   |           |         
|                                                                  | Natural gas hedge   |   |                              | (1,477,080 | )    |   |           | (715,458 | )
|                                                                  | Interest rate swaps |   |                              | (61,542    | )    |   |           |         |  
|                                                                  |                     |   |                              |            |      |   |           |         
|Comprehensive Income                                              |                     | $ | 2,466,318                    |            |      | $ | 1,744,532 |         
|                                                                  |                     |   |                              |            |      |   |           |         

11



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##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS  Continued

Note 6. Accounting Standards



| |  | In June 2001, FASB issued SFAS No. 143, Accounting for Asset Retirement
Obligations which is effective the first quarter of fiscal year 2003.
SFAS 143 addresses financial accounting and reporting for obligations
associated with the retirement of long-lived assets and the associated
asset retirement cost. The adoption of this standard has not had a
material effect on the Companys financial position, results of operations
or cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | In June 2002, the FASB issued SFAS 146, Accounting for Costs Associated
with Exit or Disposal Activities. SFAS 146 will be effective for the
Company for disposal activities initiated after December 31, 2002. The
adoption of this standard has not had a material effect on the Companys
financial position, results of operations or cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | In December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based
Compensation Transition and Disclosure (SFAS 148) that amends SFAS No.
123, Accounting for Stock-Based Compensation, to provide alternative
methods of transition to Statement 123s fair value method of accounting
for stock-based employee compensation. SFAS 148 also amends the
disclosure provisions of SFAS 123 and APB Opinion No. 28, Interim
Financial Reporting, to require disclosure of the effects of an entitys
accounting policy with respect to stock-based employee compensation on
reported net income and earnings per share in annual and interim financial
statements. The Statement does not amend SFAS 123 to require companies to
account for employee stock options using the fair value method. The
Statement is effective for fiscal years beginning after December 15, 2002.
The adoption of SFAS 148 has not had a material effect on the Companys
results of operations.

Note 7. Commitments and Contingencies



| |  | The Company leases certain equipment used in its field operations under
non-cancellable operating leases. Rents under existing leases are
approximately $10,000 per month and continue in decreasing amounts until
2005.                                                                                                                                                                                                                        
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | The Company has unlimited liability to third parties with respect to the
operations of the partnerships it has sponsored and may be liable to
limited partners for losses attributable to breach of fiduciary
obligations. In certain partnerships, certain investors have participated
as co-general partners. All such general partner investors have
subsequently been converted to a limited partner status in all outstanding
partnerships.
|
| |  | From time to time and in the ordinary course of business, the Company may
be subject to various claims, charges, and litigation. In the opinion of
management, final judgments from such pending claims, charges, and
litigation, if any, against the Company would not have a material adverse
effect on its consolidated financial position, results of operations or
cash flows.                                                             

Note 8. Industry Segment Information



| |  | The Company operates in one reportable industry segment as an independent
energy company engaged in exploring for, developing and producing natural
gas and oil reserves, acquiring and enhancing existing reserves and
gathering and marketing natural gas and oil. The Companys operations are
entirely within the United States.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12



---



##### 



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations



| |  | Forward Looking Information
| |  | ---------------------------



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The information in this document includes forward-looking statements
that are made pursuant to Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are based on
current expectations and projections about future events. Forward-looking
statements, and the business prospects of the Company are subject to a
number of risks and uncertainties, which may cause the Companys actual
results in future periods to differ from the forward-looking statements
contained herein. These risks and uncertainties include, but are not
limited to, the Companys access to capital, the market demand for and
prices of oil and natural gas, the Companys oil and gas production and
costs of operation, the results of the Companys future drilling
activities, the uncertainties of reserve estimates, general economic
conditions, new legislation or regulation changes, changes in accounting
principles, policies or guidelines and environmental risks. These and
other risks are described in the Companys 10-K reports and other filings
with the SEC.

13



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##### 



General

North Coast Energy, Inc., a Delaware corporation (NCE or the Company),
is an affiliate of n.v. (NUON), a limited liability company organized under
the laws of the Netherlands. NCE and its subsidiaries, are engaged in the
acquisition and enhancement of developed producing natural gas and oil
properties and the exploration, development and production of undeveloped
natural gas and oil properties. NCE derives its revenues from its own oil and
gas production, well operations, gas gathering and gas marketing services it
provides for third parties.

The following table is a review of the results of operations of the
Company for the three months ended March 31, 2003 and 2002.

|                                  |                                          |   |                    |       |      |   |      |       | 
|--------------------------------- | ---------------------------------------- | - | ------------------ | ----- | ---- | - | ---- | ----- | 
|                                  |                                          |   | Three Months Ended
|                                  |                                          |   | March 31,         
|                                  |                                          |   |                   
|                                  |                                          |   | 2003               |       | 2002
|                                  |                                          |   |                    |       |     
|PRODUCTION                        |                                          |   |                    |       |      |   |      |      
|                                  | Oil production (MBbls)                   |   |                    | 23    |      |   |      | 28    | 
|                                  | Gas production (MMcf)                    |   |                    | 2,581 |      |   |      | 2,230 | 
|                                  | Total production (MMcfe)                 |   |                    | 2,722 |      |   |      | 2,396 | 
|                                 
|AVERAGE PRICES                    |                                          |   |                    |       |      |   |      |      
|                                  | Oil (per Bbl)                            |   | $                  | 29.72 |      |   | $    | 17.68 | 
|                                  | Gas (per Mcf)                            |   |                    | 4.79  |      |   |      | 3.54  | 
|                                  | Average price per Mcfe                   |   |                    | 4.79  |      |   |      | 3.50  | 
|                                 
|AVERAGE COSTS (per Mcfe)          |                                          |   |                    |       |      |   |      |      
|                                  | Production expense                       |   | $                  | 0.69  |      |   | $    | 0.62  | 
|                                  | Production taxes                         |   |                    | 0.26  |      |   |      | 0.18  | 
|                                  | Depreciation, depletion and amortization |   |                    | 0.81  |      |   |      | 0.88  | 
|                                  | General and administrative expenses      |   |                    | 0.47  |      |   |      | 0.38  | 
|GROSS OPERATING MARGIN (per Mcfe) |                                          | $ | 3.84               |       |      | $ | 2.70 |      

|                        |  |                          |  |        |  |                                             
|----------------------- |  | ------------------------ |  | ------ |  | --------------------------------------------
|Definitions:            |  |                          |  |        |  |                                             
|MBbls: thousand barrels |  | MMcf: million cubic feet |  | MMcfe: |  | million cubic feet of natural gas equivalent
|Bbl: barrel             |  | Mcf: thousand cubic feet |  | Mcfe:  |  | thousand cubic feet natural gas equivalent  

Gross Operating Margin (per Mcfe): Average Price less Production Expense
(including production taxes)

14



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##### 



All items in the table are calculated as a percentage of total revenues.

|                   |                                          |  |                    |    |      |  |     |    |  
|------------------ | ---------------------------------------- |  | ------------------ | -- | ---- |  | --- | -- | -
|                   |                                          |  | Three Months Ended
|                   |                                          |  | March 31,         
|                   |                                          |  |                   
|                   |                                          |  | 2003               |    | 2002
|                   |                                          |  |                    |    |     
|REVENUE            |                                          |  |                    |    |      |  |     |   
|                   | Oil and gas production                   |  |                    | 91 | %    |  |     | 69 | %
|                   | Drilling revenues                        |  |                    | 0  | %    |  |     | 17 | %
|                   | Well operating, gathering and other      |  |                    | 9  | %    |  |     | 14 | %
|                   |                                          |  |                    |    |      | 
|                   |                                          |  | 100                | %  |      |  | 100 | % 
|COSTS AND EXPENSES |                                          |  |                    |    |      |  |     |   
|                   | Oil and gas production expenses 18%      |  |                    | 18 | %    |  |     |    |  
|                   | Drilling costs                           |  |                    | 0  | %    |  |     | 15 | %
|                   | Well operating, gathering and other      |  |                    | 7  | %    |  |     | 6  | %
|                   | Exploration expense                      |  |                    | 4  | %    |  |     | 2  | %
|                   | General and administrative expenses      |  |                    | 9  | %    |  |     | 7  | %
|                   | Depreciation, depletion and amortization |  |                    | 15 | %    |  |     | 17 | %
|                   | Interest (net)                           |  |                    | 4  | %    |  |     | 6  | %
|                   | Income taxes                             |  |                    | 15 | %    |  |     | 10 | %
|                   |                                          |  |                    |    |      | 
|Total Expense      |                                          |  | 72                 | %  |      |  | 80  | % 
|                   |                                          |  |                    |    |      | 
|NET INCOME         |                                          |  | 28                 | %  |      |  | 20  | % 
|                   |                                          |  |                    |    |      | 

The following discussion and analysis reviews the results of operations
and the financial condition of the Company for the three months ended
March 31, 2003 and 2002. The review should be read in conjunction with
the financial information presented elsewhere herein.

15



---



##### 



Comparison of Three Months Ended March 31, 2003 to March 31, 2002

Revenues

Oil and gas revenues increased $4,660,268 (56%) to $13,048,383 for the
three months ended March 31, 2003, from $8,388,115 for the three months ended
March 31, 2002. The increase in oil and gas revenues primarily reflects higher
prices received for natural gas and oil and higher production volumes. The
Companys production volumes for the three months ended March 31, 2003, were
2,721,852 Mcfe (Mcf equivalents) of natural gas compared to 2,395,614 Mcfe for
the three months ended March 31, 2002. The Company recognizes a portion of the
wellhead price it receives as gas gathering and other revenues to offset a
portion of its costs related to its gathering systems and compression
facilities. Excluding the portion attributable to gas gathering and
compression revenues, the Company received an average price of $4.79 and $3.50
per Mcfe for oil and natural gas sold for the three months ended March 31, 2003
and 2002, respectively.

Drilling revenues decreased $2,082,351 (100%) to $0 for the three months
ended March 31, 2003, compared to $2,082,351 for the three months ended March
31, 2002. This decrease reflects the Companys decision to exit the drilling
fund business to focus on its core business of exploration and production. In
the three months ended March 31, 2002, 12.4 wells were drilled for third
parties.

Well operating, gathering and other revenue decreased $344,148 (21%) to
$1,334,132 for the three months ended March 31, 2003, compared to $1,678,280
for the three months ended March 31, 2002. This decrease results from the
Companys purchase of the outstanding interest in 14 of its drilling programs
that were the source of administrative fee revenue to the Company. Also, IRC
Section 29 credits in exchange for production payments that provided the
Company with revenue in 2002, expired on December 31, 2002.

Expenses

Oil and gas production expenses increased $661,681 (34%) to $2,580,161 for
the three months ended March 31, 2003, from $1,918,480 for the three months
ended March 31, 2002. This increase is partly due to an increase in production
taxes of approximately $300,000 caused by increased oil and gas prices combined
with higher production volumes. Also, the Company incurred approximately
$200,000 of clean-up costs due to late winter ice storms in March of 2003.

Drilling costs decreased $1,752,455 (100%) to $0 for the three months
ended March 31, 2003, compared to $1,752,455 at March 31, 2002, reflecting the
Companys shift to its core business of exploration and development.

Well operating, gathering, and other increased $205,190 (26%) for the
three months ended March 31, 2003 to $1,006,086 from $800,896 at March 31,
2002, primarily as a result of increased spot prices on the open market for
natural gas which has driven up the cost of the Companys purchased gas for
resale.

Exploration expense increased $295,003 (129%) for the three months ended
March 31, 2003 to $522,333 from $227,330 for the corresponding three months
ended March 31, 2002, which reflects an increase in the Companys exploration
activities (lease acquisition and seismic costs) and personnel.

General and administrative expenses increased $378,819 (42%) to $1,288,552
for the three months ended March 31, 2003, from $909,733 for the three months
ended March 31, 2002. This increase reflects the loss of administrative fee
income resulting from the termination of 14 partnerships in 2002.

The increase in depreciation, depletion and amortization (DD&A) of
$103,538 (5%) to $2,209,514 for the three months ended March 31, 2003, from
$2,105,976 for the three months ended March 31, 2002, is primarily the result
of higher production volumes for the three months ended March 21, 2003,
compared to the comparable period of 2002.

For the three months ended March 31, 2003, net interest expense decreased
$103,248 to $602,429 compared to $705,677 for the three months ended March 31,
2002. The decrease reflects lower interest rates on the Companys long-term
debt and higher interest income resulting from higher rates earned on higher
amounts invested in 2003 compared to 2002.

16



---



##### 



Net income for the three months ended March 31, 2003, increased $1,544,950
(63%) to $4,004,940 from $2,459,990 for the three months ended March 31, 2002,
due to increased production volumes coupled with a $1.29 increase in the
average price per Mcfe. The Companys net income attributable to common stock
was $4,004,940 ($.26/share) for the three months ended March 31, 2003, compared
to $2,401,823 ($.16/share) for the three months ended March 31, 2002.
Dividends of $58,167 were declared and paid on the Companys Series B
Cumulative Preferred Stock for the three months ended March 31, 2002. All
outstanding shares of the Companys Series B Cumulative Preferred stock were
redeemed on March 31, 2002.

Inflation and Changes in Prices

Inflation affects the Companys operating expenses as well as interest
rates, both of which may have an effect on the Companys profitability. Oil
and gas prices have not followed inflation and have fluctuated during recent
years as a result of other forces such as OPEC, economic factors, demand for
and supply of natural gas in the United States and within the Companys
regional area of operation. Oil prices have increased as a result of political
and labor unrest in Venezuela along with the conflict in Iraq. Natural gas
prices have increased for the three months ended March 31, 2003, compared to
natural gas prices for the three months ended March 31, 2002. The increase in
natural gas prices has been driven by a relatively cold winter causing greater
demand for natural gas coupled with high volatility in the future markets. As
a result of these market forces, the Company received an average price of
$29.72 per barrel of oil for the three months ended March 31, 2003, compared to
$17.68 for the three months ended March 31, 2002. The Company received an
average price after recognition of a portion of the wellhead price as gas
gathering revenues of $4.79 per MCF for its natural gas for the three months
ended March 31, 2003, compared to $3.54 for the three months ended March 31,
2002. The Company cannot predict the duration of the current strength of oil
and gas markets and prices, since those forces noted above as well as other
variables may change.

Liquidity and Capital Resources

The Companys working capital was $16,043,986 at March 31, 2003, compared
to $10,818,841 at December 31, 2002. The increase of $5,225,145 in working
capital at March 31, 2003, reflects the cash flow from operations and financing
offset by cash used for capital expenditures during the period. The following
table summarizes the Companys financial position at March 31, 2003, and
December 31, 2002:

|                                            |       |   |                               |         |                   |  |        |     |   |   |         |         |  |  |    |     | 
|------------------------------------------- | ----- | - | ----------------------------- | ------- | ----------------- |  | ------ | --- | - | - | ------- | ------- |  |  | -- | --- | 
|                                            |       |   | March 31, 2003                |         | December 31, 2002
|                                            |       |   |                               |         |                  
|                                            |       |   | Amount                        |         | %                 |  | Amount |     | %
|                                            |       |   |                               |         |                   |  |        |     |  
|                                            |       |   | (Dollar amounts in Thousands)
|Working capital                             |       | $ | 16,044                        |         |                   |  | 12     |     |   | $ | 10,819  |         |  |  | 8  |    
|Property and equipment (net)                |       |   | 129,278                       |         |                   |  | 87     |     |   |   | 129,256 |         |  |  | 91 |    
|Other                                       |       |   | 1,033                         |         |                   |  | 1      |     |   |   | 1,329   |         |  |  | 1  |    
|                                            |       |   |                               |         |                   |  |        |     |   |   |         |         |  |  |    |    
|                                            | Total |   | $                             | 146,355 |                   |  |        | 100 |   |   | $       | 141,404 |  |  |    | 100 | 
|                                            |       |   |                               |         |                   |  |        |     |   |   |         |         |  |  |    |    
|Long-term debt                              |       | $ | 67,000                        |         |                   |  | 45     |     |   | $ | 67,000  |         |  |  | 47 |    
|Deferred income taxes and other liabilities |       |   | 11,998                        |         |                   |  | 9      |     |   |   | 9,667   |         |  |  | 7  |    
|Stockholders equity                        |       |   | 67,357                        |         |                   |  | 46     |     |   |   | 64,737  |         |  |  | 46 |    
|                                            |       |   |                               |         |                   |  |        |     |   |   |         |         |  |  |    |    
|                                            | Total |   | $                             | 146,355 |                   |  |        | 100 |   |   | $       | 141,404 |  |  |    | 100 | 
|                                            |       |   |                               |         |                   |  |        |     |   |   |         |         |  |  |    |    

The oil and gas exploration and development activities of NCE historically
have been financed through internally generated funds and from bank and equity
financing.

17



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##### 



The following table summarizes the Companys Statements of Cash Flows for the
three months ended March 31, 2003 and 2002:

|                                                 |  |                               |        |           |  |   |        |  
|------------------------------------------------ |  | ----------------------------- | ------ | --------- |  | - | ------ | -
|                                                 |  | March 31,                     |        | March 31,
|                                                 |  | 2003                          |        | 2002     
|                                                 |  |                               |        |          
|                                                 |  | (Dollar amounts in Thousands)
|                                                
|Net cash provided by operating activities        |  | $                             | 3,657  |           |  | $ | 3,761  |  
|Net cash used by investing activities            |  |                               | (2,189 | )         |  |   | (6,048 | )
|Net cash provided (used) by financing activities |  |                               | 154    |           |  |   | (2,385 | )
|                                                 |  |                               |        |           |  |   |        |  
|Increase (decrease) in cash and equivalents      |  | $                             | 1,622  |           |  | $ | (4,672 | )
|                                                 |  |                               |        |           |  |   |        |  

As the above table indicates, the Companys cash provided by operating
activities was $3,657,494 and $3,760,501 for the three months ended March 31,
2003, and 2002, respectively. The increase in net income of $1,544,950 was
offset by a decrease in adjustments to net income of $1,647,957.

Net cash used for investing activities was $2,189,356 for the three months
ended March 31, 2003, compared to $6,048,177 for the three months ended March
31, 2002 reflecting the decision to concentrate the Companys drilling efforts
in the second and third quarters of calendar 2003 to coincide with more
favorable weather conditions.

Net cash provided by financing activities was $154,191 for the three
months ended March 31, 2003, due to the issuance of 43,045 shares of common
stock. For the three months ended March 31, 2002, net cash used by financing
activities was $2,384,807 primarily for the redemption of the Companys Series
B Cumulative Preferred Shares.

At March 31, 2003, the Company has $23,000,000 available on its revolving
line of credit and cash balances of $16,333,534. The Company believes that its
cash, cash flow from operations, and available borrowing capacity are adequate
to fund its planned capital expenditures and operations.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is exposed to commodity price, interest rate and credit risks.
The Companys primary interest rate risk exposure results from floating rate
debt including debt under the Companys revolving Credit Facility and the
Subordinated Promissory Note between the Company and NUON. The Company is
exposed to commodity price risks related to natural gas and oil. The Company
has entered into contracts to reduce its exposure to these risks, as discussed
in the Companys financial statements filed herein. In addition, quantitative
and qualitative disclosures about market risk were included in the Companys
Form 10-K (Item 7A) and the financial statements included therein for the
fiscal year ended December 31, 2002.

The Company is exposed to credit risk from its customers and
counterparties transactions. The Company has credit approval policies that
establish credit limits for its customers. These limits are closely monitored,
as are collections of accounts receivable. The Company generally does not
require collateral from its customers and counterparties. Historically, losses
from bad debt have been within managements expectations.

The Companys ability to collect for sales of natural gas and oil to its
customers is dependent on the payment ability of the Companys customer base.
The Company monitors the creditworthiness of its customers and, from time to
time, will demand adequate assurances of performance if the creditworthiness of
the customer is in question. If such assurances are not given to the Company,
an alternative purchaser may be sought. In recent months, a number of energy
marketing and trading companies have discontinued their marketing and trading
operations, which has significantly reduced the number of potential purchasers
for the Companys natural gas production. This reduction in potential
customers has reduced market liquidity and, in some cases, made it difficult
for the Company to identify creditworthy customers. The Company will continue
to monitor its customer base and to pursue alternative customers.

The Company sells approximately $1,000,000 per month of natural gas to a
major customer. Performance by this customer is guaranteed by an affiliate of
the customer.

18



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##### 



Item 4. Controls and Procedures

Evaluation of disclosure controls and procedures.The Companys Chief
Executive Officer and Chief Financial Officer, after evaluating the
effectiveness of the Companys disclosure controls and procedures (as defined
in Exchange Act Rule 13a-14) as of a date within 90 days prior to the filing
date of this quarterly report (the Evaluation Date) have concluded that as of
the Evaluation Date, the Companys disclosure controls and procedures were
effective in ensuring that information required to be disclosed by the Company
in the reports it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
Commissions rules and forms.

Changes in internal controls.There were no significant changes in the
Companys internal controls or in other factors that could significantly affect
these controls subsequent to the Evaluation Date.

19



---



##### 



NORTH COAST ENERGY, INC. AND SUBSIDIARIES
PART II
OTHER INFORMATION



|        |  |                                                     |                                                                                           
|------- |  | --------------------------------------------------- | ------------------------------------------------------------------------------------------
|Item 1. |  | Legal Proceedings                                  
|       
|        |  | Not applicable                                     
|       
|Item 2. |  | Changes in Securities and Use of Proceeds          
|       
|        |  | Not applicable                                     
|       
|Item 3. |  | Defaults Upon Senior Securities                    
|       
|        |  | Not applicable                                     
|       
|Item 4. |  | Submission of Matters to a Vote of Security Holders
|       
|        |  | Not applicable                                     
|       
|Item 5. |  | Other Information                                  
|       
|        |  | Not applicable                                     
|       
|Item 6. |  | Exhibits and Reports on Form 8-K                   
|       
|        |  | a.)                                                 | Exhibits                                                                                  
|       
|        |  |                                                     | See Exhibit Index                                                                         
|       
|        |  | b)                                                  | Reports on Form 8-K:                                                                      
|       
|        |  |                                                     | No reports on Form 8-K have been filed during the quarter for which
this report was filed.

20



---



##### 



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.



| | NORTH COAST ENERGY, INC.
| | ------------------------



|Date: May 8, 2003 | /s/ Gordon O.
Yonel                            
|----------------- | -----------------------------------------------
|                  | Gordon O. Yonel                                
|                  | President, Chief Executive Officer and Director



| | NORTH COAST ENERGY, INC.
| | ------------------------



|Date: May 8, 2003 | /s/ Dale E.
Stitt                                       
|----------------- | --------------------------------------------------------
|                  | Dale E. Stitt                                           
|                  | Chief Financial Officer and
Principal Accounting Officer

21



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##### 



CERTIFICATIONS

I, Gordon O. Yonel, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of North Coast Energy,
Inc.;

2.     Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrants disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the Evaluation Date); and

c) presented in this quarterly report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5.     The registrants other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrants auditors and the audit
committee of registrants board of directors (or persons performing the
equivalent function):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrants ability to record, process,
summarize and report financial data and have identified for the registrants
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrants internal controls;
and

6.     The registrants other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.



|Date: May 8, 2003 | Signed: /s/ Gordon O.
Yonel                                
|----------------- | -----------------------------------------------------------
|                  | Title:      President, Chief Executive Officer and Director

22



---



##### 



I, Dale E. Stitt, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of North Coast Energy,
Inc.;

2.     Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3.     Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.     The registrants other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrants disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the Evaluation Date); and

c) presented in this quarterly report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5.     The registrants other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrants auditors and the audit
committee of registrants board of directors (or persons performing the
equivalent function):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrants ability to record, process,
summarize and report financial data and have identified for the registrants
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrants internal controls;
and

6.     The registrants other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.



|Date: May 8, 2003 | Signed: /s/ Dale E.
Stitt
Title:      Chief Financial Officer and Principal Accounting Officer
|----------------- | ----------------------------------------------------------------------------------------------

23



---



##### 



Exhibit Index

|               |  |                                                                                                                  |  | 
|-------------- |  | ---------------------------------------------------------------------------------------------------------------- |  | 
|               |  |                                                                                                                  |  | 
|Exhibit Number |  | Description of Documents                                                                                         |  | 
|               |  |                                                                                                                  |  | 
|10.32          |  | Change In Control Protection Agreement dated
March 21, 2003 between North Coast Energy, Inc.
and Ömer Yonel*    
|              
|10.33          |  | Change In Control Protection Agreement dated
March 21, 2003 between North Coast Energy, Inc.
and Dale E. Stitt  
|              
|10.34          |  | Change In Control Protection Agreement dated
March 21, 2003 between North Coast Energy, Inc.
and Larry J. Risley
|              
|10.35          |  | Change In Control Protection Agreement dated
March 21, 2003 between North Coast Energy, Inc.
and Dean A. Swift  
|              
|10.36          |  | Management Retention Agreement dated March 21,
2003 between North Coast Energy, Inc. and Ömer
Yonel*            
|              
|10.37          |  | Management Retention Agreement dated March 21,
2003 between North Coast Energy, Inc. and Dale
E. Stitt          
|              
|10.38          |  | Management Retention Agreement dated March 21,
2003 between North Coast Energy, Inc. and Larry
J. Risley        
|              
|10.39          |  | Management Retention Agreement dated March 21,
2003 between North Coast Energy, Inc. and Dean
A. Swift          
|              
|               |  | * Mr. Yonel chaged his name to Gordon O. Yonel effective April 28, 2003.                                        

24