SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                   FORM 10-QSB

               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001

                           COMMISSION FILE NO. 0-09482

                        COLORADO WYOMING RESERVE COMPANY
        (Exact Name of Small Business Issuer as Specified in its Charter)

             WYOMING                                    83-0246080
 (State or other jurisdiction of                     (I.R.S. Employer
  incorporation or organization)                    Identification No.)

   751 HORIZON COURT, SUITE 205
     GRAND JUNCTION, COLORADO                              81506
 (Address of principal executive offices)                (Zip Code)

          (970) 255-9995
   (Issuer's telephone number)

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

                                                       Yes / /     No /X/

There were 10,607,694 shares of the Registrant's $.01 par value common stock
outstanding as of May 13, 2002.

Transitional Small Business Disclosure:                Yes / /     No /X/


<PAGE>


                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

<TABLE>
<CAPTION>
                        COLORADO WYOMING RESERVE COMPANY
                        (A DEVELOPMENT STAGE ENTERPRISE)
                           CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 2001


<S>                                                               <C>
CURRENT ASSETS:
    Cash and cash equivalents                                       $        --
    Accounts receivable                                                   1,656
                                                                    -----------
Total current assets                                                      1,656

PROPERTY AND EQUIPMENT:
    Unproved oil and gas properties                                      70,314
    Other property and equipment                                         14,914
                                                                    -----------
                                                                         85,228

    Less accumulated depreciation, other property and equipment         (14,526)
                                                                    -----------
        Net property and equipment                                       70,702

    Other                                                                 1,160
                                                                    -----------
Total assets                                                        $    73,518
                                                                    ===========

CURRENT LIABILITIES:
    Trade accounts payable                                          $    89,069
    Other accrued liabilities                                            19,735
    Related party payables:
      On account                                                        179,668
      Note payable to joint venture                                     116,000
                                                                    -----------
Total current liabilities                                               404,472


EQUITY
    Common Stock, $.01 par value: authorized-
      75,000,000 shares; issued and outstanding-
      10,607,694                                                        106,077
    Additional paid-in capital                                        5,336,976
    Warrants                                                            148,100
    Accumulated deficit:
      Before entering the development stage                          (4,441,242)
      After entering the development stage                           (1,480,865)
                                                                    -----------
                                                                     (5,922,107)
                                                                    -----------
                                                                       (330,954)
                                                                    -----------
Total liabilities and equity                                        $    73,518
                                                                    ===========
</TABLE>


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


                                       2


<PAGE>


<TABLE>
<CAPTION>
                                        COLORADO WYOMING RESERVE COMPANY
        `                               (A DEVELOPMENT STAGE ENTERPRISE)
                                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                                   (UNAUDITED)



                                                                  QUARTERS ENDED
                                                                   SEPTEMBER 30,               PERIOD FROM
                                                        ------------------------------      JANUARY 1, 1999 TO
                                                            2001             2000           SEPTEMBER 30, 2001
                                                        ------------      ------------      ------------------
<S>                                                     <C>               <C>               <C>
REVENUES                                                $         --      $         --      $               --

EXPENSES
    Exploration cost                                          44,099             5,623                 565,587
    Depreciation,
        depletion and amortization                               105               219                   6,005
    General and                                               40,192            73,955                 878,861
    administrative
                                                        ------------      ------------      ------------------
Total expenses                                                84,396            79,797               1,450,453
                                                        ------------      ------------      ------------------
Operating loss                                               (84,396)          (79,797)             (1,450,453)

OTHER INCOME (EXPENSE)
    Interest income (expense), net                            (2,025)               --                 (29,181)
    Loss on sale of assets                                        --                --                  (1,231)
                                                        ------------      ------------      ------------------
Loss before income taxes                                     (86,421)          (79,797)             (1,480,865)

Provision for income taxes                                        --                --                      --
                                                        ------------      ------------      ------------------
    Net loss                                            $    (86,421)     $    (79,797)     $       (1,480,865)
                                                        ============      ============      ==================
    Basic and diluted loss per share                    $      (0.01)     $      (0.01)
                                                        ============      ============
    Outstanding shares                                    10,607,694        10,607,694
                                                        ============      ============
</TABLE>



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


                                       3


<PAGE>


<TABLE>
<CAPTION>
                                      COLORADO WYOMING RESERVE COMPANY
                                      (A DEVELOPMENT STAGE ENTERPRISE)
                                      CONSOLIDATED CASH FLOW STATEMENTS


                                                                    QUARTERS ENDED
                                                                    SEPTEMBER 30,               PERIOD FROM
                                                            ----------------------------      JANUARY 1, 1999 TO
                                                                   2001             2000      SEPTEMBER 30, 2001
                                                            -----------      -----------      ------------------
<S>                                                         <C>              <C>              <C>
Cash flows from operating activities:
Net loss                                                    $   (86,419)     $   (79,797)     $      (1,480,863)
    Adjustments to reconcile net loss to net used
      in operating activities:
    Depletion, depreciation and amortization                        105              219                  6,005
    Loss on asset sale                                               --               --                  1,231
    Amortization of note payable discount                            --               --                 35,000
    Exploration cost paid by joint venture                       42,768               --                404,535
    Equity issued as compensation                                    --               --                 95,600

    Changes in current assets and liabilities:
      Receivables                                                   866          (17,495)                 1,470
      Payables                                                    8,556           77,097                 72,225
      Other                                                          --               --                  2,064
                                                            -----------      -----------      -----------------
Net cash (used in) operating activities                         (34,124)         (19,976)              (862,733)

Cash flows from investing activities:
    Additions to unproved properties                            (24,078)              --                (97,058)
    Unproved property cost recovery                                  --           15,768                189,767
    Asset purchases                                                  --               --                 (1,269)
    Proceeds from asset sale                                         --               --                 (2,354)
                                                            -----------      -----------      -----------------
Net cash (used in) provided by investing activities             (24,078)          15,768                 89,086

Cash flows from financing activities:
   Advances from shareholder, net                                    --            4,000                     --
   Sale of common stock                                              --               --                784,456
   Advances from joint venture                                       --               --                130,509
   Repayments of joint venture advances                         (14,509)              --                (14,509)
   Repayment of notes payable                                        --               --               (130,000)
                                                            -----------      -----------      -----------------
Net cash (used in) provided by financing activities             (14,509)           4,000                770,456
                                                            -----------      -----------      -----------------

Net (decrease) in cash and equivalents                          (72,711)            (208)                (3,191)
Cash and equivalents at beginning of period                      72,711              208                  3,191
                                                            -----------      -----------      -----------------

Cash and equivalents at end of period                       $        --      $        --      $              --
                                                            ===========      ===========      =================
</TABLE>



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


                                       4


<PAGE>


                        COLORADO WYOMING RESERVE COMPANY
                            ("CWYR" or the "Company")

                          NOTES TO FINANCIAL STATEMENTS
                                   (unaudited)

                    Periods Ended September 30, 2001 and 2000

1.    INTERIM FINANCIAL STATEMENTS

      The accompanying consolidated financial statements are unaudited. However,
      in the opinion of management, the accompanying financial statements
      reflect all adjustments necessary for a fair presentation.

      Certain information and footnote disclosures normally included in
      financial statements prepared in accordance with generally accepted
      accounting principles have been condensed or omitted pursuant to the
      Securities and Exchange Commission's rules and regulations. Management
      believes the disclosures made are adequate to make the information not
      misleading and suggests that these financial statements be read in
      conjunction with the Company's June 30, 2001 Form 10-KSB.

2.    DEVELOPMENT STAGE ENTERPRISE

      The Company has no operating revenues as a result of its December 1998
      sale of its producing properties. Accordingly, as of January 1, 1999, the
      Company has re-entered the development stage.

3.    COMMITMENTS AND CONTINGENCIES

      Effective January 1, 1998, the Company entered into an Agreement for
      Administrative Services (the "Trinity Agreement") with Trinity Petroleum
      Management LLC, a Colorado limited liability company ("Trinity"). Pursuant
      to the terms of the Trinity Agreement, Trinity performs certain management
      functions for the Company. Trinity bills for its services on an hourly
      basis, receives a flat fee of $1,100 per month and is reimbursed for third
      party expenses. The Trinity Agreement is on a month-to-month basis and may
      be terminated by either party upon written notice. J. Samuel Butler, a
      member of the Board of Directors of the Company, currently serves as
      President of Trinity and owns approximately 24 percent of Trinity through
      his ownership of Butler Resources, LLC. In connection with certain
      additional services provided to the Company by Trinity pursuant to the
      Company's merger with Shoreline Resource Company, on January 22, 1998 the
      Company issued to Trinity 25,000 restricted shares of Common Stock as well
      as an option to purchase up to 100,000 shares of the Company's Common
      Stock at an exercise price of $1.50 per share, subsequently repriced to
      $.10 per share in May 1999.

      The Company entered into an employment contract with Mr. Fuerst on October
      1, 1996 pursuant to which Mr. Fuerst received a salary of $10,000 per
      month and was granted incentive stock options to purchase up to 500,000
      shares of the Company's Common Stock at an exercise price of $1.00 per
      share (repriced to $.25 per share in May 1999). The contract had an
      initial term of three years commencing October 1, 1996 and is renewed
      automatically for succeeding periods of one year unless terminated. The
      Contract may be terminated by Mr. Fuerst upon 90-days prior written notice
      to the Company and by the Company without prior notice to Mr. Fuerst for
      cause


                                       5


<PAGE>


      (as defined in the contract). In May 1999, Mr. Fuerst's salary was
      reduced to $5,000 per month pursuant to an amendment to his employment
      agreement.

4.    LOSS PER SHARE

      Basic and diluted earnings per share are the same, as the effect of
      warrants and options is antidilutive.

5.    FARMOUT AGREEMENT

      On September 28, 2000, the Company entered into a Farmout Agreement,
      effective September 22, 2000, with the Farmees. Certain directors and
      stockholders of the Company are directors, officers and controlling
      stockholders of the Farmees.

      Pursuant to the terms of the Farmout Agreement, the Company assigned 50
      percent of its mineral working interests in and to certain oil and gas
      leases and seismic options covering approximately 64,000 gross leased
      acres (approximately 25,500 net leased acres) of land located in the
      Paradox Basin Project in San Juan County, Utah, to the Farmees. Prior to
      commencement of the Seismic Survey, the Company sold an additional 7.5
      percent of its mineral working interests to the Farmees in February 2001
      for $150,000. The purchase price was determined using the same valuation
      of the Paradox Basin Project as was used in the Farmout Agreement. The
      cost of completing, processing and interpreting the Seismic Survey of
      approximately $1.1 million was borne by the Farmees. The Farmout Agreement
      requires the Company to bear its 42.5 percent share of the costs of
      maintaining the Paradox Basin Project leasehold.

      The Farmout Agreement also establishes an area of mutual interest (the
      "AMI") for a term of ten years from the effective date of the Farmout
      Agreement. If during the ten-year term, any party to the Farmout Agreement
      acquires an oil or gas leasehold interest in the AMI, that party must give
      all other parties the opportunity to participate.

      In September 2000, the Company entered into a Credit Agreement with the
      Farmees. The Credit Agreement established an unsecured revolving line of
      credit for the Company in an aggregate principal amount of $110,000.
      Amounts borrowed under the Credit Agreement bear interest at the rate of 8
      percent per annum. At September 30, 2001, the Company had a balance owing
      the Farmees of $116,000. The note was due and payable in full on
      September 28, 2001, and remains unpaid as of May 13, 2002.

6.    RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS:

      In July 2001, the Financial Accounting Standards Board ("FASB") issued
      Statement of Financial Accounting Standards ("SFAS") No. 141, Business
      Combinations, and SFAS No. 142, Goodwill and Other Intangible Assets.
      SFAS No. 141 requires that the purchase method of accounting be used
      for all business combinations initiated after June 30, 2001. SFAS No.
      141 also specifies criteria intangible assets acquired in a purchase
      method business combination must meet to be recognized and reported
      apart from goodwill, and establishes that any purchase price allocable
      to an assembled workforce may not be accounted for separately. SFAS
      No. 142 requires that goodwill and intangible assets with indefinite
      useful lives no longer be amortized, but instead tested for impairment
      at least annually in accordance with the provisions of SFAS No. 142.
      SFAS No. 142 also requires that intangible assets with definite useful
      lives be amortized over their respective estimated useful lives to
      their estimated residual values, and reviewed for impairment in
      accordance with SFAS No. 121, Accounting for the Impairment of
      Long-Lived Assets and for


                                       6


<PAGE>


      Long-Lived Assets to Be Disposed Of. The Company does not expect to be
      affected by either SFAS Nos. 141 or 142.

      In June 2001, the FASB issued SFAS No. 143, Accounting for Asset
      Retirement Obligations, which addresses financial accounting and reporting
      for obligations associated with the retirement of tangible long-lived
      assets and the associated asset retirement costs. The standard applies to
      legal obligations associated with the retirement of long-lived assets that
      result from the acquisition, construction, development and/or normal use
      of the asset.

      SFAS No. 143 requires that the fair value of a liability for an asset
      retirement obligation be recognized in the period in which it is incurred
      if a reasonable estimate of fair value can be made. The fair value of the
      liability is added to the carrying amount of the associated asset and this
      additional carrying amount is depreciated over the life of the asset. The
      liability is accreted at the end of each period through charges to
      operating expense. If the obligation is settled for other than the
      carrying amount of the liability, the Company will recognize a gain or
      loss on settlement.

      While the Company presently has no assets that would be affected by SFAS
      No. 143, should producing wells be drilled on the Paradox Basin acreage,
      the estimated abandonment cost of such wells could be subject to SFAS No.
      143. However, the financial statement impact cannot be estimated at
      present.

      In August 2001, the FASB also approved SFAS 144, Accounting for the
      Impairment or Disposal of Long-Lived Assets. SFAS 144 replaces SFAS 121,
      Accounting for the Impairment of Long-Lived Assets and for Long-Lived
      Assets to Be Disposed Of. The new accounting model for long-lived assets
      to be disposed of by sale applies to all long-lived assets, including
      discontinued operations, and replaces the provisions of APB Opinion No.
      30, Reporting Results of Operations Reporting the Effects of Disposal of a
      Segment of a Business, for the disposal of segments of a business. SFAS
      144 requires that those long-lived assets be measured at the lower of
      carrying amount or fair value less cost to sell, whether reported in
      continuing operations or in discontinued operations. Therefore,
      discontinued operations will no longer be measured at net realizable value
      or include amounts for operating losses that have not yet occurred. SFAS
      144 also broadens the reporting of discontinued operations to include all
      components of an entity with operations that can be distinguished from the
      rest of the entity and that will be eliminated from the ongoing operations
      of the entity in a disposal transaction. The provisions of SFAS 144 are
      effective for financial statements issued for fiscal years beginning after
      December 15, 2001 and, generally, are to be applied prospectively. At this
      time, the Company cannot estimate the effect of this statement on its
      financial position, results of operations, or cash flows.

      Effective July 1, 2000 FASB Interpretation No. 44 (the "Interpretation"),
      Accounting for Certain Transactions Involving Stock Compensation, became
      effective. Pursuant to the Interpretation provisions, the Company's stock
      option plan, which had previously been defined as a "fixed plan", became a
      "variable plan" as a result of certain option repricings which occurred
      between December 15, 1998 and June 30, 2000. Variable plans are subject to
      the recognition of "mark-to-market" expense. While the Company has not
      recognized any mark-to-market expense (since the quoted prices for the
      Company's shares at the end of the respective quarters have always been
      under $1.00 per share, the quoted price at July 1, 2000) should the share
      price be higher at the end of a future quarter than it was at July 1,
      2000, the Company would recognize such expense.


                                       7


<PAGE>


Item 2.  Management's Discussion and Analysis or Plan of Operation.

UNCERTAINTY OF FORWARD-LOOKING INFORMATION

This quarterly report on Form 10-QSB includes statements that are not purely
historical and are "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ from projected results.
Such statements address activities, events or developments that the Company
expects, believes, projects, intends or anticipates will or may occur, including
such matters as its ability to raise capital sufficient enough to repay
outstanding indebtedness, to fund its share of maintaining and marketing the
Project and to participate in future Paradox Basin activities, the Company's use
of proceeds from any financing or sale of its interests, the Company's beliefs
regarding results of the Seismic survey and the next phase of development,
volatility of Common Stock prices, anticipated lack of revenues, anticipated
losses, plans to market the Project to third parties and the effect of the
application of certain accounting rules. Factors that could cause actual results
to differ materially ("Cautionary Disclosures") include, among others: general
economic conditions, the market price of oil and natural gas, concentration of
the Company's properties in a small area in the Paradox Basin, the timing and
results of the seismic shoot to be conducted under the farmout agreement, the
strength and financial resources of the Company's competitors, climatic
conditions, environmental risks, the results of financing efforts and regulatory
developments and the factors identified in the Company's Annual Report on Form
10-KSB for the fiscal year ended June 30, 2001, under the caption "Business-Risk
Factors." Many of such factors are beyond the Company's ability to control or
predict. All forward-looking statements included in this Form 10-QSB are based
on information available to the Company on the date hereof. Although the Company
believes that the assumptions and expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations will
prove to have been correct or that the Company will take any actions that may
presently be planned. All forward-looking statements attributable to the Company
or persons acting on its behalf are expressly qualified in their entirety by the
Cautionary Disclosures.

PLAN OF OPERATIONS

At September 30, 2001, the Company had no cash, no operations and no revenues.

In accordance with the terms of the Farmout Agreement, the Farmees have provided
interpreted seismic data to the Company, and the Company has, in turn, made
assignments of the respective leasehold ownership interests to the Farmees.
Based on the results of the Seismic Survey, the Company believes that
exploratory test wells are warranted on at least three prospects. As the Seismic
Survey covered less than one-third of CWYR's acreage position, the Company also
believes additional acreage should be surveyed. The Company and the Farmees have
presented the Paradox Basin Project to qualified industry companies for the
purpose of determining the market value of the project and the terms on which an
industry partner might be brought into the Project. The Company believes that
the next phase of Project development is the drilling of an exploratory well on
the Project and conducting a seismic shoot on prospects not included in the
first shoot. No decision can be made regarding the next phase of development of
the Paradox Basin Project without the approval of CWYR and the Farmees holding
an aggregate 80 percent interest in the Paradox Basin Project. In addition to
the implications of the Farmout Agreement on the decision, the Company's current
lack of capital limits the options available to it.

The Company and the Farmees may elect to sell the Paradox Basin Project for cash
and to retain an overriding royalty interest in the Project. This option would
require the Company to raise capital sufficient to fund its share of the costs
of maintaining and marketing the Project, to pay its existing creditors and to
run day-to-day operations until the Project is sold. Alternatively, the Company
and the


                                       8


<PAGE>


Farmees could enter into a farmout agreement with an industry partner whereby
the industry partner pays all the cost of one or more exploratory wells and
possibly a second seismic shoot. The Company would need to raise additional
capital sufficient to fund its share of the drilling of future exploratory and
development wells. Finally, the Company and the Farmees could decide to
participate in the drilling of the initial exploratory well and all future
drilling and seismic shoots. This third option would require extensive capital.

The Company plans to raise funds to meet its obligation to fund its 42.5 percent
share of the costs of maintaining the Paradox Basin Project leasehold (estimated
at $33,000 per year) and the costs of marketing the Project, to repay the
$116,000 borrowed under the Credit Agreement and due and payable in full on
September 28, 2001, and to pay existing accounts payable. If the Company is not
successful in raising additional capital to fund its short term needs, the
Company may have to liquidate and stockholders may suffer a complete loss of
their investment.

If the Company and the Farmees elect to sell the property, the Company intends
to use its share of the proceeds to pay outstanding obligations, including the
$116,000 due under the Credit Agreement and existing accounts payable. Remaining
proceeds, if any, may be used to purchase new oil and gas leases. If the joint
venture elects to enter into a farmout agreement with an industry partner or to
drill an exploratory well or wells, the Company would need significant
additional financing. If an industry partner is brought in to drill or if the
Company is not successful in raising additional capital, its interests in the
Project would be further reduced. The failure to raise additional capital could
also lead to forfeiture of the Company's interest in the Project.

As of May 13, 2002, CWYR and the Farmees have not reached agreement with any
third party industry partners for the drilling of the initial exploratory well.
Accordingly, the Company is currently discussing the possibility of farming out
the drilling of the initial well to the Farmees.

At May 13, 2002, the Company continues to have no cash, no operations and no
revenues. These factors raise substantial doubts about the Company's ability to
continue as a going concern without raising significant additional capital.


                                       9


<PAGE>


                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

         None.

Item 2.  Changes in Securities and Use of Proceeds.

         None.

Item 3.  Defaults Upon Senior Securities.

         None.

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

         None.

Item 5.  Other Information.

         None.

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

         (a)   Exhibits

               None.

         (b)   Reports on Form 8-K.

               None.


                                       10


<PAGE>


                                   SIGNATURES

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

                                    COLORADO WYOMING RESERVE COMPANY



Dated:  May 13, 2002                By:    /s/ KIM M. FUERST
                                       -----------------------------------------
                                       Kim M. Fuerst
                                       President, Chief Executive Officer and
                                       Treasurer
                                       (Principal Executive and Financial
                                       Officer)


                                       11