<PAGE>   1


                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)

   [X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
            EXCHANGE ACT OF 1934
                  For the quarterly period ended June 30, 2001
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 0-20760

                            GREKA Energy Corporation
             (Exact name of registrant as specified in its charter)

           COLORADO                                      84-1091986
(State or other jurisdiction of                       (I.R.S. Employer
 incorporation or organization)                      Identification No)

                          630 Fifth Avenue, Suite 1501
                            New York, New York 10111
                                 (212) 218-4680
   (Address, including zip code, and telephone number, including area code, of
                   registrant's principal executive offices)


             (Former name, former address and former fiscal year, if
                           changed since last report)

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. [X] Yes  [ ] No

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. [X] Yes  [ ] No

                      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:

As of August 14, 2001, GREKA had 4,602,074 shares of Common Stock, no par value
per share, outstanding.



Page 1
<PAGE>   2


                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                     Page
<S>                                                                                                  <C>
PART I - FINANCIAL INFORMATION.........................................................................3
Item 1.  Financial Statements..........................................................................3
   Condensed Consolidated Balance Sheets as of June 30, 2001
     (Unaudited) and December 31, 2000 ................................................................3
   Condensed Consolidated Statements of Operations for the Six and
      Three Month Periods Ended June 30, 2001 and 2000 (Unaudited).....................................4
   Condensed Consolidated Statements of Cash Flows for the
      Six Month Periods Ended June 30, 2001 and 2000 (Unaudited).......................................5
   Notes to Condensed Consolidated Financial Statements (Unaudited)....................................6

Item 2.  Management's Discussion and Analysis of Financial
   Condition and Results of Operation.................................................................10

Item 3.  Quantitative and Qualitative Disclosures About Market Risk...................................14

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings............................................................................15
Item 2.  Changes in Securities and Use of Proceeds....................................................15
Item 3.  Defaults Upon Senior Securities..............................................................15
Item 4.  Submission of Matters to a Vote of Security Holders..........................................15
Item 5.  Other Information............................................................................15
Item 6.  Exhibits and Reports on Form 8-K.............................................................16
SIGNATURE.............................................................................................17
</TABLE>



Page 2
<PAGE>   3


                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

                    GREKA ENERGY CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                              FOR THE PERIODS ENDED

<TABLE>
<CAPTION>
                                                                         June 30,            December 31,
                                                                           2001                  2000
                                                                       -------------         -------------
                                                                        (Unaudited)
<S>                                                                    <C>                   <C>
Current Assets
                                                                       -------------         -------------

        Cash and cash equivalents .............................        $     311,970         $   4,837,699
        Accounts receivable trade, net of allowance for
          doubtful accounts of $938,472 (2001)
          and $827,144 (2000) .................................            7,022,334             5,951,051
        Inventories ...........................................            6,233,485             3,814,992
        Other current assets ..................................            1,654,902             5,160,062
                                                                       -------------         -------------
                 Total Current Assets .........................           15,222,691            19,763,804
                                                                       -------------         -------------
Property and Equipment

        Investment in limestone property, at cost .............            3,991,788             3,675,973
        Oil and gas properties (full cost method) .............           49,320,203            38,838,169
        Land ..................................................           17,247,744            17,247,744
        Plant and equipment ...................................           28,321,718            27,398,506
                                                                       -------------         -------------
                                                                          98,881,453            87,160,392
        Less accumulated depreciation, depletion and
          amortization ........................................          (11,767,838)           (9,978,770)
                                                                       -------------         -------------
Property and Equipment, net ...................................           87,113,615            77,181,622
Other Assets ..................................................            3,560,103             1,867,859
                                                                       -------------         -------------
                                                                         105,896,409         $  98,813,285
                                                                       =============         =============


                      LIABILITIES AND STOCKHOLDERS' EQUITY



Current Liabilities                                                         2001                 2000
                                                                       -------------         -------------

        Accounts payable and accrued expenses .................           12,107,911         $  13,742,245
        Current maturities of long term notes and notes payable            7,647,340             8,580,110
        Short term borrowing ..................................                   --               105,000
                                                                       -------------         -------------
                 Total Current Liabilities ....................           19,755,251            22,427,355

Long term debt, net of current portion ........................           34,991,399            28,206,771

Other Liabilities .............................................            7,772,245             7,967,941


Stockholders' Equity

        Common Stock, no par value, 50,000,000 shares
          authorized, 4,559,613 (2001) 4,523,273 (2000)
          shares issued and outstanding .......................           42,850,315            42,544,542
        Accumulated earnings (deficit) ........................              527,199            (2,333,324)
                                                                       -------------         -------------

        Total Stockholders' Equity ............................           43,377,514            40,211,218
                                                                       -------------         -------------
                                                                       $ 105,896,409         $  98,813,285
                                                                       =============         =============
</TABLE>



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



Page 3
<PAGE>   4


                    GREKA ENERGY CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                FOR THE SIX AND THREE MONTH PERIODS ENDED JUNE 30
                                    UNAUDITED

<TABLE>
<CAPTION>
                                                         Six Months Ended June 30,                Three Months Ended June 30,
                                                     ---------------------------------         ---------------------------------
                                                         2001                 2000                 2001                 2000
                                                     ------------         ------------         ------------         ------------
<S>                                                  <C>                  <C>                  <C>                  <C>
Revenues

                  Total Revenues ............        $ 18,612,722         $ 23,379,915         $ 11,622,892         $ 13,699,489

Expenses
        Production costs ....................           8,509,523           12,343,503            5,600,811            6,968,604
        General and administrative ..........           4,128,426            3,174,534            1,996,528            1,745,233
        Profit sharing plan .................             300,000              187,988              300,000              187,988
        Depletion, depreciation and
           Amortization .....................           1,789,069            1,865,425            1,079,881              692,255
        Other non-cash expense ..............                  --            1,070,863                   --              363,748
                                                     ------------         ------------         ------------         ------------
                  Total Expenses ............          14,727,018           18,642,313            8,977,220            9,957,828

Operating Income ............................           3,885,704            4,737,602            2,645,672            3,741,661

Other Income (Expense)
        Miscellaneous Income ................             893,362                   --              213,039                   --

        Interest (expense) ..................          (1,889,983)          (2,027,414)          (1,005,034)            (829,829)
                                                     ------------         ------------         ------------         ------------
                  Other Income (Expense), Net            (996,621)          (2,027,414)            (791,995)            (829,829)

Income before Income Tax and cumulative
    effect of change in accounting method ...           2,889,082            2,710,188            1,853,676            2,911,832

Provision for Income Tax ....................             (57,782)            (165,185)             (40,514)             (98,141)

Income before cumulative effect of change
    in accounting method ....................           2,831,300            2,545,003            1,813,162            2,813,691

Cumulative effect of change in accounting ...                  --             (853,109)                  --                   --
                                                     ------------         ------------         ------------         ------------

Net Income ..................................        $  2,831,300         $  1,691,894         $  1,813,162         $  2,813,691
                                                     ============         ============         ============         ============

Net Income  per Common Share - Basic


     Before cumulative effect of a change in
       accounting method ....................        $       0.62         $       0.59         $       0.40         $       0.65

     Cumulative effect of a change in
       accounting method ....................                  --         $      (0.20)                  --                   --

     Net Income .............................        $       0.62         $       0.39         $       0.40         $       0.65
                                                     ============         ============         ============         ============

    Basic Shares ............................           4,540,266            4,339,940            4,546,613            4,339,940
                                                     ============         ============         ============         ============
Net Income  per Common Share - Diluted


     Before cumulative effect of a change in
       accounting method ....................        $       0.58         $       0.57         $       0.37         $       0.64

     Cumulative effect of a change in
       accounting method ....................                  --         $      (0.19)                  --                   --

     Net Income .............................        $       0.58         $       0.38         $       0.37         $       0.64
                                                     ============         ============         ============         ============

    Diluted Shares ..........................           4,887,325            4,443,366            4,855,047            4,414,449
                                                     ============         ============         ============         ============
</TABLE>



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



Page 4
<PAGE>   5


                    GREKA ENERGY CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                    FOR THE SIX MONTH PERIODS ENDED JUNE 30,
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                2001                 2000
                                                            ------------         ------------
<S>                                                         <C>                  <C>
Cash flows from Operating Activities

        Net Income .................................        $  2,831,300         $  1,691,894
        Adjustments to reconcile net
           income to net cash provided by (used for)
           operating activities
        Depletion, depreciation and
        Amortization ...............................           1,789,068            1,865,425
        Loss Due to Accounting Change ..............                  --              853,109

        Changes in:

        Accounts receivable ........................          (1,071,283)          (1,762,973)
        Other current assets .......................           3,505,160              787,907
        Other assets ...............................          (1,692,244)            (404,545)
        Inventory ..................................          (2,418,493)            (130,607)
        Accounts payable and accrued
           Liabilities .............................          (1,935,030)             251,392
                                                            ------------         ------------
                  Net Cash Provided
                   in Operating Activities .........           1,008,478            3,151,602

Cash Flows from Investing Activities

        Expenditures for property and equipment ....         (11,721,106)            (913,451)
        Proceeds from sale of property .............                  --              120,000
                                                            ------------         ------------
        Net Cash Used in
           investing Activities ....................         (11,721,106)            (793,451)
                                                            ------------         ------------
Cash Flows from Financing Activities

        Proceeds from notes payable and
           long-term debt ..........................          13,269,530            3,904,617
        Principal payments on notes
           payable and long-term debt ..............         (10,343,007)          (5,381,696)
        Net increase in revolver loan ..............           2,935,043              335,560
        Proceeds from Conversion of debenture ......              50,000                   --
        Proceeds from exercise of stock options ....             275,333                   --
                                                            ------------         ------------
Net Cash Provided (Used) by Financing
        activities .................................           6,186,899           (1,141,519)
                                                            ------------         ------------
Net Increase (Decrease) in Cash and
        Cash Equivalents ...........................          (4,525,729)           1,216,632
Cash and Cash Equivalents at Beginning
        of Period ..................................           4,837,699               97,319
                                                            ------------         ------------
Cash and Cash Equivalents at End of Period .........        $    311,970         $  1,313,951
                                                            ============         ============
</TABLE>


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



Page 5
<PAGE>   6


                    GREKA ENERGY CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          The accompanying unaudited condensed consolidated financial statements
have been prepared on a basis consistent with the accounting principles and
policies reflected in the financial statements for the year ended December 31,
2000, and should be read in conjunction with the consolidated financial
statements and notes thereto included in the Company's 2000 Form 10-K/A. In the
opinion of management, the accompanying unaudited condensed consolidated
financial statements contain all adjustments (which, except as otherwise
disclosed herein, consist of normal recurring accruals only) necessary to
present fairly the Company's consolidated financial position as of June 30,
2001, and the consolidated results of operations for the six and three month
periods ended June 30, 2001 and 2000, and the consolidated cash flows for the
six month periods ended June 30, 2001 and 2000.

Oil and Gas Property

          The Company periodically reviews the carrying value of its oil and gas
properties in accordance with requirements of the full cost method of
accounting. Under these rules, capitalized costs of oil and gas properties may
not exceed the present value of estimated future net revenues from proved
reserves, discounted at 10%, plus the lower of cost or fair market value of
unproved properties ("ceiling"). Application of this ceiling test generally
requires pricing future revenue at the prices in effect as of the end of each
reporting period and requires a writedown for accounting purposes if the ceiling
is exceeded.

Business Segments

         The Company's operations are in three industry segments: Integrated
Operations (California asphalt plant and E&P), E&P Americas, and E&P
International. Information about the Company's operation by segment as of and
for the three and six month periods ended June 30, 2001 and 2000, is as follows:

<TABLE>
<CAPTION>
Three Months
Ended June 30, 2001                 Integrated        E&P          Corporate
(in thousands)                      Operations      Americas       and other         Total
------------------------------      ----------      --------       ---------        -------
<S>                                 <C>             <C>            <C>              <C>
Oil and Gas Revenue ..........        $ 2,788        $ 5,068        $(2,788)        $ 5,068
Asphalt Plant Revenue ........          6,554             --             --           6,554
Total Revenue ................          9,342          5,068         (2,788)         11,622
Oil Production Costs .........            694          1,223           (694)          1,223
Asphalt Plant Costs ..........          6,473             --         (2,094)          4,379
Gross Profit .................          2,175          3,845             --           6,020
Other Expenses ...............            470            537          1,290           2,297
DD&A Expenses ................            454            625             --           1,079
Miscellaneous Income .........             --            213             --             213
Interest and other expenses ..            608            291            105           1,004
Net income (loss) before Taxes            643          2,605         (1,395)          1,853
Provision for Taxes ..........             --             --             41              41
Net income (loss) ............        $   643        $ 2,605         (1,436)        $ 1,812
                                      =======        =======        =======         =======
Capital Expenditures .........        $   717        $ 5,649             --         $ 6,366
</TABLE>


Page 6
<PAGE>   7

<TABLE>
<CAPTION>
Six Months
Ended June 30, 2001                      Integrated          E&P            Corporate
(in thousands)                           Operations        Americas         and other           Total
----------------------------------       ----------        --------         ---------         ---------
<S>                                      <C>               <C>              <C>               <C>
Oil and Gas Revenue ..............        $   5,262        $   8,446        $  (5,262)        $   8,446
Asphalt Plant Revenue ............           10,167               --               --            10,167
Total Revenue ....................           15,429            8,446           (5,262)           18,613
Oil Production Costs .............            1,252            2,165           (1,252)            2,165
Asphalt Plant Costs ..............           10,354               --           (4,010)            6,344
Gross Profit .....................            3,823            6,281               --            10,104
Other Expenses ...................              995              969            2,464             4,428
DD&A Expenses ....................              822              967               --             1,789
Miscellaneous Income .............               --              893               --               893
Interest and other income expenses            1,184              546              160             1,890
Net income (loss) before Taxes ...              822            4,692           (2,625)            2,890
Provision for Taxes ..............               --               --               58                58
Net income (loss) ................        $     822        $   4,692        $  (2,682)        $   2,832
                                          =========        =========        =========         =========
Capital Expenditures .............        $   3,111        $   8,610               --         $  11,721

Identifiable Assets ..............        $  62,761        $  27,972        $  15,163         $ 105,896
</TABLE>


<TABLE>
<CAPTION>
Three Months                   Integrated        E&P             E&P          Corporate
Ended June 30, 2000            Operations      Americas      International    and other         Total
-------------------------      ----------      --------      -------------    ---------        -------
<S>                            <C>             <C>           <C>              <C>              <C>
Total Oil and Gas Revenue        $ 2,205        $ 3,428         $   170        $(2,262)        $ 3,541
Refinery Revenue ........         10,158              0               0              0          10,158
Total Revenue ...........         12,363          3,428             170         (2,262)         13,699
Production Costs ........            667            979              28              0           1,674
Refinery Costs ..........          7,556              0               0         (2,262)          5,294
Gross Profit ............          4,140          2,449             142              0           6,731
Other Expenses ..........            420            472              58            795           1,745
Net Profit Sharing Plan .              0              0               0            188             188
DD&A Expenses ...........            299            369              24              0             692
Other Expense ...........            364              0               0              0             364
EBITDA ..................          3,720          1,977              84           (983)          4,798
EBIT ....................          3,421          1,608              60           (983)          4,106
Interest and other
     (expenses) income ..            537            (15)             13            295             830
Provision for Taxes .....              0              0               0             98              98
Net income (loss) .......        $ 2,520        $ 1,623         $    47        $(1,376)        $ 2,814
                                 =======        =======         =======        =======         =======
</TABLE>


<TABLE>
<CAPTION>
Six Months                         Integrated        E&P             E&P          Corporate
Ended June 30, 2000                Operations      Americas     International     and other         Total
-----------------------------      ----------      --------     -------------     ---------        -------
<S>                                <C>             <C>          <C>               <C>              <C>
Total Oil and Gas Revenue ...        $ 4,157        $ 6,255        $   423         $(4,157)        $ 6,678
Refinery Revenue ............         16,702              0              0               0          16,702
Total Revenue ...............         20,859          6,255            423          (4,157)         23,380
Production Costs ............          1,372          1,719             84               0           3,175
Refinery Costs ..............         13,326              0              0          (4,157)          9,169
Gross Profit ................          6,161          4,535            339               0          11,035
Other Expenses ..............          1,166            870            104           1,034           3,174
Net Profit Sharing Plan .....              0              0              0             188             188
DD&A Expenses ...............          1,005            783             77               0           1,865
Other Non Cash Expense ......          1,071              0              0               0           1,071
EBITDA ......................          4,996          3,665            235          (1,222)          7,674
EBIT ........................          3,992          2,882            157          (1,222)          5,809
Interest and other
     (expenses) income ......          1,214             69             27             717           2,027
Loss Due to Accounting Change            853              0              0               0             853
Provision for Taxes .........              0              0              0             165             165
Net income (loss) ...........        $   853        $ 2,814        $   129          (2,104)        $ 1,692
                                     =======        =======        =======         =======         =======

Capital Expenditures ........        $   478        $   708        $  (419)        $   251         $ 1,018
Identifiable Assets .........        $58,241        $15,331        $ 7,622         $ 6,066         $87,260
</TABLE>



Page 7
<PAGE>   8


NOTE 2 - NET INCOME PER SHARE

         Basic earnings per share ("EPS") is calculated by dividing net income
by the weighted average number of shares of common stock outstanding during the
period. No dilution for any potentially dilutive securities is included. Diluted
EPS assumes the conversion of all potentially dilutive securities and is
calculated by dividing net income, as adjusted, by the weighted average number
of shares of common stock outstanding, plus all potentially dilutive securities.


<TABLE>
<CAPTION>
                                              Six Months Ended                         Three Months Ended
                                                  June 30,                                  June 30,
                                     ----------------------------------        ----------------------------------
                                          2001                 2000                 2001                 2000
                                     -------------        -------------        -------------        -------------
<S>                                  <C>                  <C>                  <C>                  <C>
Basic Earnings
  Net Income to Common Shares        $   2,831,300        $   1,691,894        $   1,813,162        $   2,813,691
                                     =============        =============        =============        =============
Weighted Average Shares
  outstanding ...............            4,540,266            4,339,940            4,546,613            4,339,940

Dilutive stock options ......              347,059              103,426              308,434               74,509


Fully diluted shares ........            4,887,325            4,443,366            4,855,047            4,414,449
                                     =============        =============        =============        =============


Basic EPS ...................        $        0.62        $        0.39        $        0.40        $        0.65
                                     =============        =============        =============        =============
Diluted EPS .................        $        0.58        $        0.38        $        0.37        $        0.64
                                     =============        =============        =============        =============
</TABLE>


The Company's convertible debt was anti-dilutive for the periods ending June 30,
2001 and 2000.

NOTE 3 - INVENTORY

         Inventory includes material, labor and manufacturing overhead costs.
Due to the continuous manufacturing process, there is no significant work in
process at any time. Inventory consists of the following at June 30, 2001:

<TABLE>
<S>                                  <C>
Raw Material ......................  $1,380,613
Finished goods ....................   4,852,872
                                     ----------
   Total ..........................  $6,233,485
                                     ==========
</TABLE>


Page 8
<PAGE>   9


NOTE 4 - STATEMENT OF CASH FLOWS

         Following is certain supplemental information regarding cash flows for
the six month periods ended June 30, 2001 and 2000:

<TABLE>
<CAPTION>
                                2001              2000
                             ----------        ----------
<S>                          <C>               <C>
Interest paid .......        $1,565,469        $1,701,984
Income taxes paid ...        $        0        $        0
</TABLE>


NOTE 5 - CONTINGENCIES

          In 1995, the Company's predecessor agreed to acquire an oil and gas
interest in California on which a number of out of production oil wells had been
drilled by the seller. The acquisition agreement required that the Company's
predecessor assume the obligation to abandon any wells that it did not return to
production, irrespective of whether certain consents of third parties necessary
to transfer the property to the Company were obtained. A third party whose
consent was required to transfer the property did not consent to the transfer.
The third party is holding the seller responsible for all remediation. The
Company believes it has no financial obligation to remediate this property
because it was never the owner of the property, never produced any oil or gas
from the property and was not associated with the site and the seller did not
give its predecessor any consideration to enter into the contract for the
property. Since May 2000, the Company commenced remediation on the subject
property as directed by the regulatory agency. Notwithstanding its compliance in
proceeding with any required remediation on seller's account, the Company is
committed to hold the seller accountable for the required obligations of the
property. Through June 30, 2001, the Company has remediated 26 of 72 wells and
related facilities on the property for a cost of $1,407,000. This amount is
recorded as a long-term receivable, as the Company believes it is probably that
such amount that will be recoverable from the seller. The Company has had
informal discussions with the seller, which to date have not produced positive
results. Therefore, the Company intends to pursue formal litigation for
recovery. Based on future developments with this litigation, it is reasonably
possible that the Company's estimate of recovery and ultimate liability could
change in the near term and such change could be material.

         GREKA's subsidiary owns an asphalt plant in Santa Maria, California,
with which environmental remediation obligations are associated. The party who
sold the asphalt plant to the Company's subsidiary performs all environmental
obligations that arose during and as a result of its operations of the plant
prior to the acquisition. There could be additional environmental issues which
may require material remediation efforts in the future.

         GREKA's subsidiaries, as is customary in the industry, are required to
plug and abandon wells and remediate facility sites on their properties after
production operations are completed. The cost of such operation may be
significant and will occur, from time to time, as properties are abandoned.

         There can be no assurance that material costs for remediation or other
environmental compliance will not be incurred in the future. The occurrence of
such environmental compliance costs could be materially adverse to the Company.
No assurance can be given that the costs of closure of any of the Company's
subsidiaries' other oil and gas properties would not have a material adverse
effect on the Company.


Page 9
<PAGE>   10


NOTE 6 - SUBSEQUENT EVENTS

         In July 2001, the Company announced a repurchase program to buy back up
to 10% of its outstanding common stock, which repurchase is subject to market
conditions and will occur through open market purchases or privately negotiated
transactions at prices and on terms acceptable to management.

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

Overview

         GREKA's predecessor was formed in 1988 and commenced oil and gas
operations in 1992 as Petro Union, Inc. Current management acquired control of
Petro Union in August 1997 and re-directed the company's operations to the
present strategy. Following the acquisition of Saba Petroleum Company in March
of 1999, the company changed its name to GREKA Energy Corporation.

         We are an independent integrated energy company focused on exploiting
oil and gas production, exploration and development activities. In addition to
owning and operating an asphalt plant in California, we have oil and gas
production, exploration and development activities in North America and the Far
East, with primary areas of activity in California, Louisiana and China. We
operate over 90% of our reserves with working interests varying from 75% to 100%
in most of the fields. The asphalt plant and all the heavy oil fields in the
Santa Maria Valley, California are wholly owned and the integration of
operations of these assets reduces our exposure to commodity price swings due to
the relative stability of asphalt prices. In addition, we have production
sharing contracts in China and Indonesia.

         Our asphalt plant ran at approximately 9,000 Bbls per day of throughput
as recently as 1992. We expect that our plant can attain its rated capacity of
10,000 Bbls per day of throughput. For the year ended December 31, 2000, we
utilized approximately 33% of this rated capacity. As a result of the
under-utilization of our plant's capacity, as well as favorable economics
attributable to increased equity throughput at the plant, we are the logical
buyer of heavy oil reserves in the central California region.

         During 2000, we were able to substantially increase natural gas
production at our Louisiana Fields as a result of our well reworking program.
During 2001, we plan to spend approximately $14 million on E&P Americas'
properties to further develop our oil and gas position in Louisiana. We intend
to continue to exploit and develop other existing low-cost, low-risk proved
reserves we own. In addition, we will seek to acquire similar properties.

         In 2001, we plan to spend $3 million to drill five wells to prove
reserves in connection with our production-sharing contract with the China
United Coalbed Methane Corporation Ltd. The Chinese Ministry of Foreign Trade
and Economic Cooperation approved this contract in which we have a 49% working
interest and that covers a total area of 380,534 acres. The 30-year contract
provides that we as operator will drill at least five coalbed methane wells over
a three-year term. Two production test wells have been drilled and both were
successful. We will continue to look for high potential international prospects
in areas with attractive terms that do not require significant capital
commitments by us.

         During 1999 and 2000, our capital expenditures on oil and gas
activities totaled approximately $2,092,000 and $13,602,000, respectively. The
discretionary capital expenditures are budgeted to be $30,000,000 during 2001 of
which $11,721,000 was spent as of June 30, 2001. Further spending, however, is
dependent upon market conditions, drilling results, and financing of which there
can be no assurance.

         We use the full cost method of accounting for oil and natural gas
property acquisition, exploration and development activities. Under this method,
all productive and non-productive costs incurred in connection with the
acquisition of, exploration for and development of oil and natural gas reserves
are capitalized. Capitalized costs included lease acquisitions, geological and
geophysical work, delayed rentals and the costs of drilling, completing and
equipping oil and gas wells. Gains or losses are recognized only




Page 10
<PAGE>   11


upon sales or dispositions of significant amounts of oil and gas reserves.
Proceeds from all other sales or dispositions are treated as reductions to
capitalized costs.

Cautionary Information About Forward-Looking Statements

          This document contains forward-looking statements within the meaning
of Section 27A of the Securities Act and Section 21E of the Exchange Act. All
statements, other than statements of historical facts, included in or
incorporated by reference into this Form 10-Q which address activities, events
or developments which the Company expects, believes or anticipates will or may
occur in the future are forward-looking statements. The words "believes,"
"intends," "expects," "anticipates," "projects," "estimates," "predicts" and
similar expressions are also intended to identify forward-looking statements.
These forward-looking statements include, among others, statements concerning:

*  the benefits expected to result from GREKA's 1999 acquisition of Saba
   discussed below, including
*  synergies in the form of increased revenues,
*  decreased expenses and avoided expenses and expenditures that are expected to
   be realized as a result of the Saba acquisition, and
*  the complementary nature of GREKA's horizontal drilling technology and
   certain oil reserves acquired with the acquisition of Saba, and other
   statements of:
*  expectations,
*  anticipations,
*  beliefs,
*  estimations,
*  projections, and

other similar matters that are not historical facts, including such matters as:

*  future capital,
*  development and exploration expenditures (including the timing, amount and
   nature thereof),
*  drilling and reworking of wells, reserve estimates (including estimates of
   future net revenues associated with such reserves and the present value of
   such future net revenues),
*  future production of oil and gas,
*  repayment of debt,
*  business strategies,
*  oil, gas and asphalt prices and demand,
*  exploitation and exploration prospects,
*  expansion and other development trends of the oil and gas industry, and
*  expansion and growth of business operations.

         These statements are based on certain assumptions and analyses made by
the management of GREKA in light of its experience and its perception of
historical trends, current conditions and expected future developments as well
as other factors it believes are appropriate in the circumstances.

         GREKA cautions the reader that these forward-looking statements are
subject to risks and uncertainties, including those associated with:

*  the financial environment,
*  general economic, market and business conditions,



Page 11
<PAGE>   12


*  the regulatory environment,
*  business opportunities that may be presented to and pursued by GREKA,
*  changes in laws or regulations
*  exploitation and exploration successes,
*  availability to obtain additional financing on favorable conditions,
*  trend projections, and
*  other factors, many of which are beyond GREKA's control that could cause
   actual events or results to differ materially from those expressed or implied
   by the statements. Such risks and uncertainties include those risks and
   uncertainties identified in the Description of the Business and Management's
   Discussion and Analysis sections of this document and risk factors discussed
   from time to time in the Company's filings with the Securities and Exchange
   Commission.

   Significant factors that could prevent GREKA from achieving its stated goals
   include:

*  the inability of GREKA to obtain financing for capital expenditures and
   acquisitions,
*  declines in the market prices for oil, gas and asphalt, and
*  adverse changes in the regulatory environment affecting GREKA.

         The cautionary statements contained or referred to in this document
should be considered in connection with any subsequent written or oral
forward-looking statements that may be issued by GREKA or persons acting on its
or their behalf. GREKA undertakes no obligation to release publicly any
revisions to any forward-looking statements to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.

Long-Term Potential

         Management believes that the results of operations for the three month
period ended June 30, 2001 and cash flows of GREKA reported herein are
reasonably indicative of the expected future quarterly results of operations and
cash flows of GREKA for similar three month periods, since the results of
operations of the Company's asphalt plant are somewhat seasonal due to seasonal
fluctuations in the asphalt market. Asphalt sales have been generally higher in
the third quarter and lower in the first quarter. Due to these seasonal
fluctuations, results of operations for interim quarterly periods may not be
indicative of results which may be realized on an annual basis. The results of
the Company as reported herein, and which are demonstrative of the successful
implementation of management's business plan, continue to reflect the long-term
potential of the Company.

Results of Operations

Comparison of Three Month Periods Ended June 30, 2001 and 2000

         Revenues decreased from $13,699,489 for the second quarter of 2000 to
$11,622,892 for the second quarter 2001. This 15% decrease is the net effect of
a decrease in the volume of sales from the asphalt plant by 45% or 226 MBOE at
$6.1 million compared to 308 MBOE in 2000, due to a weak demand for asphalt in
our market as result of inclement weather. This was offset by an increase of
volume gas sales by 44%, or 48 MBOE from 2000, coupled with a 59% improvement in
selling price from $3.21 per Mcf to $5.09 or a net improvement in revenue of
$1.7 million over 2000. Crude oil sales had practically no impact on revenue as
an increase in volume sales of 16% or 18 MBOE, was offset by a decrease of 43%
in the average price from $24.41 in 2000 to $20.90 in 2001.

         Production and product costs decreased from $6,968,604 for the second
quarter of 2000 to $5,600,811 for the second quarter of 2001 primarily as a
result of reduced crude oil purchases for our



Page 12
<PAGE>   13


asphalt plant due to weak demand for asphalt. Production cost per BOE dropped
from $15.22 in the second quarter of 2000 to $12.64 in 2001.

         General and administrative expenses increased from $745,233 for the
second quarter of 2000 to $1,996,528 for the second quarter of 2001 primarily as
a result of increase in number of personnel coupled with increase in legal and
audit fees.

         Net profit sharing accrued increased from $187,988 for the second
quarter of 2000 to $300,000 for the second quarter 2001. Decision on payment of
the net profit sharing plan is made by the Board of Directors during the fourth
quarter.

         The Company's operating income decreased from $3,741,661 in the second
quarter of 2000 to $2,645,672 in the second quarter of 2001 primarily as a
result of lower volume BOE of asphalt product sales.

         Depreciation, depletion and amortization increased from $692,255 for
the second quarter of 2000 to $1,079,881 for the second quarter of 2001
primarily as a result of higher depletion rate. The increase in the rate results
from a revision to both the full cost asset pool and the reserve estimates.

         Interest expense increased from $829,829 for the second quarter of 2000
to $1,005,034 for the second quarter of 2001 primarily as a result of increase
in the revolver loan.

         During the three months ended June 30, 2001, the Company had other
income of $213,035 of which $179,709 represents a revision of prior year
liabilities for items resolved to the Company's benefit in the current period.

         Net income decreased from $2,813,691 for the second quarter of 2000 to
$1,813,162 as a result of lower volume of sales of asphalt plant products
detailed above.

Comparison of Six Month Periods Ended June 30, 2001 and 2000

         Revenues decreased from $23,379,915 for the first half of 2000 to
$18,612,722 for the first half of 2001 primarily as a result of lower asphalt
product sales.

          Production and product costs decreased from $12,343,503 for the first
half of 2000 to $8,509,523 for the first half of 2001 primarily as a result of
lower volume of asphalt products coupled with crude prices. Production cost per
BOE dropped from $12.57 in the first half of 2000 to $10.89 in 2001.

         General and administrative expenses increased from $3,174,534 for the
first half of 2000 to $4,128,426 for the first half of 2001 primarily as a
result of increase in the number of personnel and legal and audit fees.

         The Company's operating income decreased from $4,737,602 in the first
half of 2000 to $3,885,704 in the first half of 2001 primarily as a result of
lower asphalt product sales due to first quarter six weeks shut down of the
asphalt plant for major maintenance coupled with a normal second quarter sales
trend compared to an unusual and an exceptional second quarter 2000 sales trend

         Depreciation, depletion and amortization decreased from $1,865,425 for
the first half of 2000 to $1,789,068 for the first half of 2001 primarily as a
result of lower production volume in the Integrated Operations division offset
by an increase in the rate of depreciation, depletion and amortization per
barrel.

         Interest expense decreased from $2,027,414 for the first half of 2000
to $1,889,983 for the first half of 2001 primarily as a result of lower interest
rates on the average outstanding balance interest bearing debt.

         Other income of $853,109 represents adjustments of $179,709 during the
current three months as previously discussed and adjustments of $671,000 during
the first quarter related to a recognition of income on the proposed settlement
of Manilla Village litigation. Currently litigating parties have agreed in
principal on the amounts and are in the process of devising acceptable
settlement procedures.

         Net income increased from $1,691,894 for the first half of 2000 to
$2,831,800 for the first half of 2001. The first half of 2000 was negatively
impacted by $1,923,972 relating to a noncash expense charge and cumulative
effect of change in accounting.

Liquidity and Capital Resources

         The working capital deficit at June 30, 2001 of $4,532,560 increased by
$1,574,709 from a


Page 13
<PAGE>   14


working capital deficit of $2,663,551 at December 31, 2000. Current assets
decreased by $4,541,113 from $19,763,804 at December 31, 2000 to $15,222,691 at
June 30, 2001 which includes a decrease of $4,525,729 in cash and cash
equivalents from $4,837,699 at December 31, 2000 to $311,970 at June 30, 2001
primarily as a result of normal cyclical variance in cash inflow produced by
operating activities. Operating activities at the integrated subsidiary results
in higher net cash flow in the fourth quarter when compared to the first
quarter. Approximately $6,233,485 of asphalt plant raw material and finished
product inventory resulted from asphalt plant operations at June 30, 2001.
Current liabilities decreased from $22,427,355 at December 31, 2000 to
$19,755,251 at June 30, 2001, a decrease of $2,966,404 principally as a result
of a concerted effort on Company management to reduce aged payables outstanding
at year-end.

Cash Flows

         Cash provided by or used in operations decreased from an inflow of
$3,151,602 for the six months ended June 30, 2000 to an inflow of $1,008,478 for
the six months ended June 30, 2001. Net income for the period provided
$2,831,300 of cash inflow.

         The Company's net cash flows used in investing activities increased
from a net outflow of $793,451 for the six months ended June 30, 2000 to a net
outflow of $11,721,106 for the six months ended June 30, 2001. This change was
primarily attributable to increased activity by the Company in its well workover
program.

         The Company's net cash used by financing activities was $1,141,519 for
the six months ended June 30, 2000 compared to net cash provided by financing
activities of $6,186,899 for the six months ended June 30, 2001.

         During the second quarter the company advanced $350,000 on a company
authorized loan of $500,000 due on April 30, 2002 to its Chairman.

Capital Expenditures

         Our growth is focused on acquisitions that are strategic and in
accordance with our business plan. It is intended that these acquisitions will
be achieved concurrent with the closing of adequate financing. Historically, we
have relied on cash flow from operations to finance discretionary capital
expenditures. For 2001, we have budgeted $30,000,000 for our capital expenditure
expenses to be funded by our cash flow and current credit facility. Almost all
the capital expenditures are discretionary and we intend to implement our
capital programs in the third and fourth quarters to capitalize on the increased
cash flows from the seasonality in asphalt sales.

         The Company is current on all its interest payments, and has sufficient
cash flow for all of its operating and foreseen capital requirements.

Financing and Debt Restructuring Activities

         No activities occurred in the three month period ending June 30, 2001.

Inflation

         GREKA does not believe that inflation will have a material impact on
GREKA's future operations.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk.

          To some extent, at June 30, 2001, the Company's operations were
exposed to market risks primarily as a result of changes in commodity prices and
interest rates. The Company does not use derivative financial instruments for
speculative or trading purposes.


Page 14
<PAGE>   15


                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

         The following material developments occurred during the quarter ended
June 30, 2001 with respect to the legal proceedings reported in the GREKA Annual
Report on Form 10-K/A for the fiscal year ended December 31, 2000:

         The matter previously reported in GREKA's 2000 Annual Report on
Form 10-K/A as Pembrooke Calox, Inc. v. GREKA Energy Corporation, et al. (Index
No. 604905/99, Supreme Court, New York County, October 1999) was tried in May
2001. The court ordered in favor of GREKA determining that there was no material
breach of the agreement whereby Pembrooke Calox, Inc. was not entitled to the
relief sought and, since Pembrooke Calox, Inc. did not pay GREKA the amount due,
the property was reconveyed to GREKA.

         The matter previously reported in GREKA's 2000 Annual Report on
Form 10-K/A as RGC International Investors, LDC v. GREKA Energy Corporation, et
al. (C.A. No. 17674NC, Delaware Chancery Court, December 1999) was tried in
April 2001 and following post-trial motions, a court order is expected.

          From time to time, the Company and its subsidiaries are a named party
in legal proceedings arising in the ordinary course of business. While the
outcome of such proceedings cannot be predicted with certainty, management does
not expect these matters to have a material adverse effect on the Company's
financial condition or results of operations.

Item 2.  Changes in Securities and Use of Proceeds.

         In May 2001, the Company's shareholder rights plan was amended to
reduce from 12% to 9.9% the minimum amount of GREKA common stock acquired or
offered to be acquired pursuant to an announced tender offer without the
approval of the Board of Directors which would effect the exercisable rights.

         In July 2001, the Company announced a repurchase program to buy back up
to 10% of its outstanding common stock, which repurchase is subject to market
conditions and will occur through open market purchases or privately negotiated
transactions at prices and on terms acceptable to management.

Item 3.  Defaults Upon Senior Securities.

         None

Item 4.  Submission of Matters to a Vote of Security Holders.

         None.

Item 5.  Other Information.

         In May 2001, the Company engaged Hein + Associates LLP to replace
Arthur Andersen LLP as



Page 15
<PAGE>   16


their independent public accountants to audit its consolidated financial
statements for the year ending December 31, 2001.

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

(a)      Exhibits.  The following exhibits are furnished as part of this report:
         None

(b)      During the quarter for which this report is filed, GREKA filed the
         following Reports on Form 8-K:

              Current Reports on Form 8-K and 8-K/A dated May 18, 2001 which
              reported events under Item 4, Changes in Registrant's Certifying
              Accountant.



Page 16
<PAGE>   17


                                    SIGNATURE

         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.


                                            GREKA ENERGY CORPORATION

Date: August 20, 2001                       By: /s/ Randeep S. Grewal
                                               ---------------------------------
                                               Randeep S. Grewal, Chairman and
                                               Chief Executive Officer


Date: August 20, 2001                       By: /s/ Max Elghandour
                                               ---------------------------------
                                               Max Elghandour,
                                               Chief Financial Officer


Page 17