U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                FORM 10-QSB

(Mark One)
[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934

            For the quarterly period ended October 31, 1997



[  ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                    SECURITIES EXCHANGE ACT OF 1934

                     Commission file number 0-9800
                                    
                       LYRIC ENERGY, INC.
    (Exact name of small business issuer as specified in its Charter)
                                                                        
             Colorado                   75-1711324
  (State of Incorporation)     (I.R.S. Employer Identification Number)

                1013 West 8th Ave., Amarillo, Texas    79101
                  (Address of principal executive offices)

                           (806) 376-5088
           (Issuer's telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by
Sections 13 or 15(d) of the Securities Exchange Act during the past 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.         Yes...X...   No.......

             APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of
common equity as of the latest practicable date: 250,000,000 shares of common
stock as of August 31, 1997.

Transitional Small Business Disclosure Format (check one);

Yes.......   No...X....


                Index to Quarterly Report on Form 10Q-SB

PART I - FINANCIAL INFORMATION


Item 1.     Financial Statements.

            (a)   Financial Statements of Lyric Energy, Inc.
                  Report on Review by Independent Certified                    
                  Public Accountants

                  Balance Sheets as of October 31, 1997 and April              
                  30, 1997

                  Statements of Operations for the Three-Month                 
                  Periods ended  October 31, 1997 and 1996 and                 
                  Cumulative Period During the Development Stage

                  Statements of Cash Flows for the Six-Month                   
                  Periods ended October 31, 1997 and 1996 and                  
                  Cumulative Period During the Development Stage

                  Selected Information for Financial Statements,               
                  including Pro Forma Combined Financial                       
                  Information

           (b)    Consolidated Financial Statements of Natural                 
                  Gas Technologies, Inc.

                  Report on Review by Independent Certified                    
                  Public Accountants

                  Balance Sheets as of October 31, 1997 and April              
                  30, 1997

                  Statements of Operations for the Three and Six-              
                  Month Periods ended October 31, 1997 and 1996

                  Statements of Cash Flows for the Six-Month                   
                  Periods ended October 31, 1997 and 1996

                  Selected Information for Consolidated Financial              
                  Statements

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

                 Plan of Operation of Lyric Energy, Inc

                 Management's Discussion and Analysis of Financial Condition   
                 and Results of Operations of Natural Gas Technologies, Inc.





                         PART II - OTHER INFORMATION


Item 1.     Legal Proceedings.

Item 2.     Changes in Securities.

Item 3.     Defaults Upon Senior Securities.

Item 4.     Submission Of Matters To A Vote Of Security Holders.

Item 5.     Other Information.

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

SIGNATURES

                   PART I - FINANCIAL INFORMATION
 
Item 1.     Financial Statements.

           (a)   Financial Statements of Lyric Energy, Inc.


        REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 



Board of Directors
Lyric Energy, Inc.
Dallas, Texas

We have reviewed the accompanying balance sheet of Lyric Energy, Inc. as of
October 31, 1997, and the related statements of operations for three and six
months and cash flows for six months ended October 31, 1997 and 1996.  These
financial statements are the responsibility of the Company's management. 

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants.  A review of interim 
financial information consists principally of applying analytical review 
procedures to financial data and making inquiries of persons responsible for 
financial and accounting matters.  It is substantially less in scope than an 
audit conducted in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial 
statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements for them to be in 
conformity with generally accepted accounting principles. 

We have previously audited, in accordance with generally accepted auditing
standards, the balance sheet as of April 30, 1997, and the related statements
of operations, retained earnings and cash flows for the year then ended (not
presented herein); and in our report dated July 18, 1997, we expressed an
unqualified opinion on those financial statements.  In our opinion, the
information set forth in the accompanying condensed consolidated balance sheet
as of April 30, 1997 is fairly stated in all material respects in relation to
the consolidated balance sheet from which it has been derived.



                                                                               
 
Robert Early & Company, P.C.
Abilene, Texas

December 12, 1997


                               LYRIC ENERGY, INC.
                         (A Development Stage Enterprise)
                                Balance Sheets


<TABLE>
<CAPTION>
                               October 31,           April 30,  
                                     1997                 1997
                              ____________           __________
                               (Unaudited)
<S>                                <C>                 <C>
Assets
                                    None                None  
                              



                 Liabilities and Stockholders' Equity/(Deficiency)

Liabilities
     Payable to Natural Gas
      Technologies, Inc.       $   12,089                None  


Stockholders' Equity/(Deficiency)
     Common stock, $.01 stated
     value (250,000,000 shares     
     authorized, 250,000,000 
     outstanding)               2,500,000           2,500,000
     Additional paid-in 
     capital                      224,222             224,222
     Retained (deficit)        (2,736,311)         (2,724,222)
                              ____________        ____________
        Total Stockholders'
        Equity/(Deficiency)       (12,089)              - 
                              ____________        ____________        

        TOTAL LIABILITIES
        AND STOCKHOLDERS'
        EQUITY                 $     -             $    - 
                              ============        =============

</TABLE>

                               LYRIC ENERGY, INC.
                        (A Development Stage Enterprise)
                           Statements of Operations
               For Three Months Ended October 31, 1997 and 1996
                                (Unaudited)
<TABLE>
<CAPTION>

                              Cumulative
                              During the 
                              Development
                                 Stage               1997          1996   
                              ____________         _________      _______

<S>                          <C>               <C>              <C>    
General and 
administrative expenses       $  (47,625)       $  (12,089)      $  (593)

Interest expense to 
related parties                   (1,482)             -           (2,223)
     
     NET (LOSS)               $  (49,107)       $  (12,089)      $(2,816)
                             ============       ===========      =========

     
     Net loss per
     weighted average share   $   (0.00)        $   (0.00)       $ (0.00)
                             ============       ===========      =========
     Weighted average 
     shares outstanding     160,439,221       250,000,000     46,958,483
                             ============       ===========      =========

</TABLE>

                                LYRIC ENERGY, INC.
                           (A Development Stage Enterprise)
                              Statements of Cash Flows
                  For Six Months Ended October 31, 1997 and 1996
                                  (Unaudited)

<TABLE>
<CAPTION>
                                    Cumulative
                                    During the 
                                   Development
                                       Stage          1997               1996  

                                  ____________       _____              ______ 

<S>                                <C>             <C>          <C>
CASH FLOWS FROM OPERATING
 ACTIVITIES:
Net loss                            $  (49,107)     $ (12,089)   $    (2,816)
Adjustments to reconcile net
 income/(loss) to
 net cash provided by operations:

Increase/(decrease) in:  
     Accounts payable                 (52,398)        12,089             (837)
     Accrued expenses                   1,482            -              2,223
                                    __________     __________     ____________
     
NET CASH (USED) BY 
OPERATING ACTIVITIES                 (100,023)           -             (1,430)
                                    __________     __________    ____________


CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from note payable       100,000            -                - 
                                    __________     __________    ____________

     Increase/(decrease) in
     cash for period                     (23)            -            (1,430)

     Cash, Beginning of period            23             -             1,453
                                    __________     __________    ____________
     Cash, End of period           $    -          $     -          $     23
                                    ==========     ==========    ============

Supplemental Disclosures:

     Cash payments for:
       Interest                    $    -          $     -          $     - 
       Income taxes                     -                -                - 

     Cancellation of related 
     party and other
     indebtedness                  $ 458,166       $     -          $     - 

     Stock issued for
     conversion of note
     payable                       $ 100,000       $     -          $     - 

</TABLE>

                                LYRIC ENERGY, INC.
                       (A Development Stage Enterprise)
                 SELECTED INFORMATION FOR FINANCIAL STATEMENTS
                               October 31, 1997
                                 (Unaudited)


NOTE 1:   BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions of Regulation S-B.  They do not include
all information and footnotes required by generally accepted accounting 
principles for complete financial statements.  However, except as disclosed 
herein, there has been no material change in the information included in the 
Company's Annual Report on Form 10-KSB for the year ended April 30, 1997.  In
the opinion of Management, all adjustments (consisting of normal recurring 
accruals) considered necessary for a fair presentation have been included.  
The report of Robert Early & Company, P.C. commenting on their review 
accompanies the condensed financial statements included in Item 1 of Part 1. 
Operating results for the six month period ended October 31, 1997, are not 
necessarily indicative of the results that may be expected for the
year ending April 30, 1998.

Development Stage Enterprise -- The Company returned to the development stage
in November 1996 with the transfer of its final operating responsibility to
others and thereby reducing its activities to the sole pursuit of identifying,
evaluating, structuring, and completing a merger with or acquisition of a 
privately owned entity.

Going Concern Issues   The Company has been relatively inactive during the
past three years due to a shortage of operating assets and working capital.  The
Company has no assets (or credit) with which to initiate new business or to 
acquire an existing business  These factors raise substantial doubt about the 
Company's ability to continue as a going concern.  The Company reentered the 
development stage in November 1996 when it transferred its last operations to
another operator and reinforced its search for a merger or acquisition target
in order to carry on the operations of the target Company. The Company signed
a Letter of Intent to merge with Natural Gas Technologies, Inc. (NGT) in 
January 1997.  In April 1997, NGT acquired an 81% ownership interest in the 
Company in a first step toward a merger. The ability of the Company to 
continue as a going concern is dependent on the completion of this 
transaction.  There are no adjustments of financial statement information 
required should the Company be unable to continue as a going concern.


          NOTE 2:   MERGER AGREEMENT WITH NATURAL GAS TECHNOLOGIES, INC.

On January 2, 1997, the Company entered into a Letter of Intent (LOI), amended
subsequently via a supplemental letter dated March 17,1997, with Natural Gas
Technologies, Inc., a Texas corporation.  In accordance with the LOI, NGT
loaned the Company $100,000 pursuant to a non-interest bearing, convertible 
note dated February 4, 1997 (Note), and the loaned funds were placed in 
escrow.  The Note was converted on April 10, 1997 into 203,041,517 common 
shares, which were all of the remaining authorized but unissued common shares
of the Company.  Conversion occurred after the Company had filed all of the 
required reports pursuant to the Securities Exchange Act of 1934, as amended,
and after the Company had obtained a waiver from a bank of the Company's 
commitment in connection with a compromise and settlement agreement
related to a bank debt forgiveness in July 1991.  This commitment was the
maintenance of  the bank's ownership interest at a constant 8.9976% through
issuance of additional common stock as needed.  Upon conversion, loaned funds
were released from escrow to the Company for use in satisfying all existing 
debts and encumbrances and settling all claims against it.  

The LOI further provides for a share exchange transaction whereby the
shareholders of NGT are to be issued additional shares in the Company such that
the mutual interests of the two companies shareholders as of April 1997 would be
approximately 5% retained by the shareholders of the Company and shareholders of
NGT would own the remaining 95% of the total issued and outstanding common 
shares of the Company.  NGT would become a wholly owned subsidiary of the 
Company.  This ratio of ownership between NGT shareholders and the previous 
shareholders is for NGT shareholders and for transactions effective April 1, 
1997 and prior.  Subsequent transactions in NGT shares are not included in 
this ratio and must be approved as to value by the Board of Directors of the 
Company.  The share exchange will occur after the Company holds
a shareholder meeting for the purpose of (1) approving a reverse split of the
Company's common stock which will result in additional common shares being
made available in order to issue shares in the shares exchange; (2) authorizing
10,000,000 shares of no par value preferred stock (Approximately 75,000 of
these will be designated for exchange with NGT preferred shareholders in the 
share exchange and the remaining 9,925,000 will be reserved for future 
issuance at the discretion of the Board of Directors.); and (3) approving 
certain other amendments to the Company's Articles of Incorporation.  The 
Company has filed its information statement with the SEC and is awaiting 
their acceptance of that document in order to hold its shareholder meeting.


NOTE 3:  PRO FORMA COMBINED FINANCIAL INFORMATION

The following tables set forth the pro forma combined balance sheet at October
31, 1997 and results of combined operations of the Company and NGT as though the
entities had been combined for the year ended April 30, 1997 and the six
months ended October 31, 1997.  These combined statements presume that the 
Company will acquire 100% of the outstanding common and preferred shares of 
NGT in exchange for the issuance of previously unissued shares.  This 
issuance, coupled with the conversion of the note as described above into 
Company shares will cause NGT shareholders as of April 2, 1997 to own 95% of 
the Company.  NGT will dstribute the shares it received in the note 
conversion to NGT stockholders as part of the share exchange.  This 
transaction qualifies as a purchase for accounting purposes.  However, the 
transaction also is considered to be a reverse merger whereby NGT will
be considered to be the acquirer for accounting purposes.  As such, there are
no adjustments to the carrying value of NGT assets and liabilities to reflect
current fair values and the Company has no assets and liabilities that require
adjustment.

As mentioned above, a portion of the transaction agreement calls for the
Company to reverse split its outstanding shares after the note conversion by 
a factor of one share for 240.597 shares.  Table I presents summarized 
balance sheets for the two entities at October 31, 1997.  
Estimated adjustments to the balance sheet required as a direct result of the
acquisition plan and the transactions contemplated therein consist primarily 
of the adjustments required due to the reverse stock split and the
issuance of new shares by the Company to the NGT shareholders.  The balance
sheet eliminations consist of intercompany balances.

Tables II and III present pro forma results of operations for the combined
entities. Table II is for the year ended April 30, 1997 and Table III is for 
the six months ended October 31, 1997.  The adjustments in Table II consist 
of the elimination of the non-recurring transactions of the Company during 
the year. Adjustments required in Table III are described in the notes to the
pro forma financial statements.



                                    Table I
                        Pro Forma Combined Balance Sheet
                             As of October 31, 1997

<TABLE>
<CAPTION>
                     Lyric         NGT       Adjustments            Pro Forma
                                                                     Combined
                    ________     ______      ___________          ___________
<S>                <C>          <C>          <C>                   <C>  
      Assets                                 
Current assets      $    -       $377,527     $   -                 $377,527
Fixed assets (net 
 of depreciation and
 depletion               -     11,027,151         -               11,027,151
Other assets             -        296,069         -                  296,069
                   _________   __________     ________           _____________
    Total Assets    $    -    $11,700,747     $   -              $11,700,747
                   =========   ==========     ========           =============
                                   
                          Liabilities and Equity                      
          
Liabilities:                                 
Current 
liabilities        $12,089     $2,012,856     $(12,089)           $2,012,856
Notes payable           -       3,089,099         -                3,089,099
Redeemable 
Preferred A stock       -          38,388         -                   38,388
Minority interest 
in subsidiary           -          26,157      (26,157)                - 
                                   
Stockholders' equity:                                  
Preferred B stock       -         265,440         -                  265,440
Common stock     2,500,000          4,085   (2,463,728)               40,357
Additional paid 
in capital         224,222      8,458,788     (232,067)            8,450,943
Deferred services 
and stock 
receivable              -        (160,000)        -                 (160,000)
Retained 
(deficit)       (2,736,311)    (2,034,066)   2,734,041            (2,036,336)
                ___________   ____________   __________           ____________
  Total
  stockholders'
  equity          (12,089)      6,534,247       38,246             6,560,404
                ___________   ____________   __________           ____________
Total 
Liabilities
and Stockholders' 
Equity          $      -      $11,700,747    $    -              $11,700,747
                ===========   ============   ==========           ============

                                     Table II
                        Pro Forma Combined Results of Operations
                          For the Year Ended April 30, 1997

                    Lyric              NGT      Adjustments          Pro Forma
                                                                     Combined
                    _______          _______    ____________        __________
                                   
Revenues           $    -           $100,992    $     -               $100,992
                   ________         ________    ____________       ___________
                    
LOE and 
 production taxes       -            103,646            -              103,646
Depreciation, 
 depletion and
 amortization           -             50,394            -               50,394
Management and 
 consulting costs    35,000          115,000         (70,000)           80,000
Legal and 
 professional           -             44,816            -               44,816
Other expenses          593           43,688            (593)           43,688
                   ________       ________         ________          ________
  Total 
  operating
  expenses           35,593          357,544         (70,593)          322,544
                    ________       ________         _________         ________
(Loss from 
 Operations)        (35,593)        (256,552)         70,593         
(221,552)

                                   
Interest income        -                 715            -                  715
Interest expense     (5,928)         (49,786)          5,928          
(49,786)
                    _________      _________        _________        _________
                                   
Net (Loss)         $(41,521)       $(305,623)        $76,521        
$(270,623)
                   ==========    ===========       =========       ===========
Net (Loss) 
 per share                                                            $  (.07)
                                                                   ===========
                                  Table III
                       Pro Forma Combined Results of Operations
                     For the Six Months Ended October 31, 1997

                        Lyric       NGT        Adjustments        Pro Forma
                                                                 Combined
                       ______      _____      ____________        _________
                                   
Revenues              $   -       $172,255    $    -              $172,255
                      _______     ________    ____________        __________

LOE and 
 production taxes         -        271,041         -               271,041
Depreciation, 
 depletion and
 amortization             -        113,605         -               113,605
Management and 
 consulting costs         -         75,000         -                75,000
Legal and professional  12,089     114,337      (12,089)           114,337
Personnel costs           -        113,555         -               113,555
Extraordinary item        -        386,000     (386,000)              - 
Other expenses            -         51,689         -                51,689
                       _______    ________     _________         __________
   Total
   operating expenses   12,089   1,125,227     (398,089)           739,227
                       _______   _________     _________         __________
(Loss from 
 Operations)           (12,089)   (952,972)     398,089           (566,972)
                                   

Interest income           -          5,556          -                5,556
Interest expense          -       (167,818)         -             (167,818)
                                   
Net (Loss)           $ (12,089)$(1,115,234)    $398,089           $729,234
                      ========== ===========    ========        ==========
Net (Loss) per share                                               $ (0.14)
                                                                 ==========

</TABLE>

Notes to Pro Forma Financial Statements:

The adjustments to the pro forma balance sheet consist of eliminating an
intercompany payable of $12,089, eliminating the minority interest in Lyric
Energy included in NGT's consolidated statements, and giving effect to the 
reverse split and exchange of newly issued shares for NGT shares outstanding.

Adjustments to the pro forma results of operations for the year ended April
30, 1997 consist of elimination of non recurring costs incurred by Lyric.  The
elimation is doubled since these costs were also included in NGT's 
consolidated statements.

Adjustments to the proforma results of operations for the six months ended
October 31, 1997 consist of the elimination of costs incurred by Lyric which are
duplicated in NGT's consolidated statement and the elimination of the non-
recurring loss from abandonment of the blending license.


     (b)  Financial Statements of Natural Gas Technologies, Inc.


       REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS 


Board of Directors
Natural Gas Technologies, Inc.
Dallas, Texas

We have reviewed the accompanying consolidated balance sheet of Natural Gas
Technologies, Inc. and Subsidiaries as of October 31, 1997 and April 30, 1997,
and the related consolidated statements of operations for three and six 
months and cash flows for six months ended October 31, 1997 and 1996.  These 
financial statements are the responsibility of the Company's management. 

We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants.  A review of interim 
financial information consists principally of applying analytical review 
procedures to financial data and making inquiries of persons responsible for 
financial and accounting matters.  It is substantially less in scope than an 
audit conducted in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial 
statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements for them to be in 
conformity with generally accepted accounting principles. 




_____________________________
Robert Early & Company, P.C.
Abilene, Texas

December 10, 1997

                 NATURAL GAS TECHNOLOGIES, INC. & SUBSIDIARIES
                              Balance Sheets

<TABLE>
<CAPTION>
                                    October 31,             April 30,   
                                         1997                   1997
                                   ____________            __________     
                                   (Unaudited)             (Restated) 
<S>                               <C>                     <C> 

                            Assets
Current Assets:
Cash                               $ 340,283               $ 816,725
Accounts receivable                   37,244                   3,407
                                  ___________              __________
     Total Current Assets            377,527                 820,132
                              
Fixed Assets:
Oil & gas properties (full
 cost method, $637,496 has been
 excluded from amortization as
 an unproved cost)               11,221,546               8,682,579
Furniture & equipment 
 ($40,000 not in service)            11,096                  40,000
 Accumulated depreciation 
 & depletion                       (205,491)               (114,077)
                                  __________              __________
     Total fixed assets          11,027,151               8,408,502
                                  __________              _________
                              
Other Assets:
Patent & process license 
 (net of amortization of
 $2,000 at 4/30/97)                   -                     358,000
Investment in Kodiak
 Corporation                       190,000                     - 
Investment in Wagman 
 Petroleum, Inc. stock              14,464                   14,464
Deposits                             3,049                    3,049
Goodwill (net of 
 amortization of
 $16,667 & $1,667)                  88,333                   98,333
Organizational costs 
 (net of amortization
 of $1,687 & $1,496)                   223                      414
                                  _________                 ________
     Total Other Assets            296,069                  474,260
                                  _________                 ________
                              
     TOTAL ASSETS                $11,700,747               $9,702,894
                               ============              ===========

                    Liabilities and Stockholders' Equity
     Accounts payable 
     (primarily to
     related party)             $1,550,141                 $291,031
     Accrued interest            134,467                    40,109
     Advances and amounts
     due officers                201,136                     1,136
     Note payable and 
     advance from 
     related party               123,767                    79,067
     Current portion of
     notes payable                 3,345                    13,962
                              ___________                 _________
       Total Current
       Liabilities             2,012,856                   425,305

     Notes payable
     (net of current
     portion)                  3,089,099                 2,856,292
                             ____________               ___________

       TOTAL LIABILITIES       5,101,955                 3,281,597
                             ____________               ___________

Redeemable Preferred stock,
 Series 1994-A  $4.00 par
 value (500,000 shares 
 authorized, 9,597
 outstanding)                    38,388                    38,388
Minority interest in 
 consolidated subsidiary         26,157                    28,427

Stockholders's Equity                   
  Preferred stock, 
   Series 1994-B  
   $4.00 par value (500,000                  
   shares authorized,
   66,360 outstanding)          265,440                   265,440
  Common stock, $.001 
   par value (10,000,000 
   shares authorized,
   4,085,247 and 4,014,390
   outstanding)                   4,085                     4,014
  Additional paid-in capital  8,458,788                 7,322,860
  Deferred services            (160,000)                 (160,000)
  Receivable for stock
   issued to officers              -                     (159,000)
  Retained (deficit)         (2,034,066)                 (918,832)
                             ___________                __________
    Total Stockholders'
     Equity                   6,534,247                 6,354,482
                             ___________                __________
          
  TOTAL LIABILITIES AND
    STOCKHOLDERS' EQUITY    $11,700,747                $9,702,894


</TABLE>

                 NATURAL GAS TECHNOLOGIES, INC. & SUBSIDIARIES
                          Statements of Operations
             For Three and Six Months Ended October 31, 1997 and 1996

<TABLE>
<CAPTION>
                              (Unaudited)
                                Three Months               Six Months          
   
                              1997       1996             1997        1996   
                             _______    ______            _____      _______ 
<S>                         <C>        <C>             <C>          <C>
Oil and gas revenues        $105,794    $22,394         $172,052     $47,020
Other income                   -           -                 203           5
                             _______    _______          _______     _______
     Total Revenues          105,794     22,394          172,255      47,025
                             _______    _______          _______     _______

Expenses: 
     Production taxes          4,230      1,128            6,886       2,402
     Lease operating
      expenses               144,301     16,409          264,155      36,104
     Depreciation, 
      depletion and
      amortization            67,021     10,701          113,605      21,884
     Professional fees        67,985       -             114,337         - 
     Consulting fees          52,500       -              75,000         - 
     Personnel costs          63,948       -             113,555         - 
     Rent                       -         1,050            9,148       2,100
     Business promotion         -          (443)           3,315         - 
     Director's fees            -         8,333            -          20,833
     Taxes                      -         1,788            1,898       1,788
     Travel                   11,328         50           18,556         600
     Offering costs             -          -               -           3,000
     Other expenses            4,446      2,441           21,042       2,444
     Loss on abandoned 
      blending license       386,000       -             386,000         - 
     Minority interest
      in loss of
      consolidated 
      subsidiary             (2,270)       -              (2,270)        - 
                            ________    ________     ____________    _______
        Total Expenses      799,489      41,457        1,125,227     91,155
                            _______     ________     ____________    _______   
     
  

(Loss) from Operations     (693,695)    (19,063)        (952,972)   (44,130)
     
     Interest income          2,378        -               5,556       - 
     Interest expense       (86,853)      (784)         (167,818)    (1,917)
                           _________    ________     ____________    _______

NET (LOSS)                 (778,170)   (19,847)       (1,115,234)   (46,047)

   Less unpaid preferred
     stock dividend 
     claims for the year     (2,401)    (2,401)           (4,802)    (4,802)
                           ________    ________       __________    _______

Net (loss) attributable 
to common shareholders    $(780,571)  $(22,248)      $(1,120,036)   $(50,849)
                        =========== ==========      ============   =========
     
(Loss) per share data:
Primary                    $  (0.19)  $  (0.01)         $  (0.28)   $ (0.02)
                         =========== ==========       ===========   =========
Primary, attributable 
to common shares              (0.19)     (0.01)         $  (0.28)   $ (0.02)
                        =========== ==========       ===========   =========
Fully diluted              $  (0.19)  $  (0.01)         $  (0.28)   $ (0.02)
                         =========== ==========       ===========   =========
Fully diluted, 
 attributable to
 common shareholders          (0.19)     (0.01)         $  (0.28)   $ (0.02)
                         =========== ==========       ===========   =========
     
</TABLE>

                    NATURAL GAS TECHNOLOGIES, INC. & SUBSIDIARIES
                          Statements of Cash Flows
                     For Six Months Ended October 31, 1997 and 1996

<TABLE>
<CAPTION>
                                (Unaudited)

                                               1997                1996
                                            ________             ________   

<S>                                     <C>                   <C>           
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                 $(1,115,234)           $(46,047)
Adjustments to reconcile net 
  income/(loss) to
  net cash provided by operations:
  Depreciation, depletion and
  amortization                               146,302              21,884
  Amortization of directors fees               -                  20,833
  Amortization of deferred services           70,000                 - 
  Loss on impairment of assets               386,000                 - 
(Increase)/decrease in:
  Accounts receivable                        (33,837)            (14,083)
  Security deposit                            -                      - 
Increase/(decrease) in:  
  Accounts payable                         1,259,110              17,675
  Accrued expenses                            94,358                 - 
  Minority interests                          (2,270)                -
                                           __________            _________ 
NET CASH PROVIDED BY 
OPERATING ACTIVITIES                         804,429                 262
                                           __________            _________

CASH FLOWS FROM INVESTING ACTIVITIES:
  Payments for drilling costs
  and oil & gas leases                   (1,648,967)              (4,587)
  Purchase of lease and 
  well equipment                            (11,096)                 - 
  Investment in joint venture              (190,000)                 -
                                          ___________             _________ 
NET CASH (USED) BY 
INVESTING ACTIVITIES                     (1,850,063)              (4,587)
                                          ___________             _________

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from issuance of stock           385,000                  - 
  Advances from related parties             244,700               12,026
  Note payments                             (60,508)              (7,838)
                                        _____________             _________
NET CASH PROVIDED BY
FINANCING ACTIVITIES                        569,192                4,188
                                        _____________             _________

  Increase/(decrease)
  in cash for period                       (476,442)                (137)
    Cash, Beginning of period               816,725                  506
                                        _____________             _________
     Cash, End of period                  $340,283                 $369
                                        ===========             =========

Supplemental Disclosures:
   Cash payments for:
     Interest                              $40,874               $1,917
     Income taxes                            -                      - 

   Stock issued for prepaid
    professional services                   70,000                  - 
   Acquisition of oil and gas 
    assets for note payable                250,000                  - 
   Acquisition of oil and gas
    assets from related party for
    note payable and options:
        Note payable                       200,000                  - 
        Contributed capital                640,000                  - 


</TABLE>
                   NATURAL GAS TECHNOLOGIES, INC. & SUBSIDIARIES
             SELECTED INFORMATION FOR CONSOLIDATED FINANCIAL STATEMENTS
                                    (Unaudited)
                                   October 31, 1997


NOTE 1:   BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with instructions of Regulation S-B.  They do not include all
information and footnotes required by generally accepted accounting 
principles for complete financial statements.  However, except as disclosed 
herein, there has been no material change in the information included in 
Lyric Energy, Inc.'s Annual Report on Form 10-KSB for the year ended April 30
, 1997.  In the opinion of Management, all adjustments (consisting of normal 
recurring accruals) considered necessary for a fair presentation have been 
included.  The report of Robert Early & Company, P.C. commenting on their 
review accompanies the condensed financial statements included in Item 1 of 
Part 1.  Operating results for the six month period ended October 31, 1997, 
are not necessarily indicative of the results that may be expected for the 
year ending April 30, 1998.


NOTE 2:   RESTATED BALANCES AT APRIL 30, 1997

During the review process of the preliminary information statement for Lyric
Energy, Inc. by the Securities and Exchange Commission, it was pointed out
that the note payable to EXP, Inc for $3,000,000 should have been recorded at a
discount representing the fair value of the note at the time the Company
acquired Interior Energy, Inc. with the discount being amortized over the 
term of the note. This correction has been noted and will be corrected in 
revised audited financial statements to be filed with answers to the SEC's 
comments regarding that filing. The fair value of the note was $2,850,154.  
Through October 31, 1997, $38,835 of the discount has been amortized to 
interest expense.


NOTE 3:   ACQUISITION OF OIL AND GAS ASSETS

During the quarter ended July 31, 1997, the Company acquired four additional
interests and drilled on five properties.  The Touchstone lease was acquired
for a note payable of $250,000 and $100,000 cash.  This lease had two producing
wells. The Hutton lease was purchased for $33,900 cash and reworked, 
including new equipment, for approximately $14,000.  The Company's president 
transferred his 50% interest in the Norton prospect in exchange for a note of
$200,000 and options to purchase 100,000 shares of common stock at $7 per 
share over the next two years. The Company had purchased its original 50% 
from a third party for stock valued at $840,000 in April 1997.  The Company's
directors had approved its president's investment in this prospect in 
December 1996 when the Company did not have any cash to invest.  The Miller 
Ranch lease cost $164,868 and calls for initial drilling within three years. 
Other properties with significant activity included drilling five wells on 
the Norton prospect and approximately $242,000 spent on the East Milham Sand 
Unit as work continues toward revitalizing the production on that property.

In another venture, the Company paid $100,000 for an option to purchase of an
interest in a significant reworking project in Central West Texas.  After
results from initial work had been evaluated, management determined that this
project was not economically feasible at the total cost of the interest.  As 
a result of this decision, the Company abandoned its investment.  Also, the 
Company spent $24,000 on a well that turned out to be a dry hole.


NOTE 4:   NOTES PAYABLE

As mentioned above, the Company added two notes payable in its acquisitions of
assets during the first quarter.  The first is a note to EXP, Inc. for
$250,000, bearing interest at 8%, due in December 1998.  The second is a note
to Brent Wagman for $200,000, bearing interest at 5%, due in May 1999.


NOTE 5:   INVESTMENT IN KODIAK CORPORATION

During August 1997, the Company loaned $160,000 to Kodiak Corporation for
planned drilling activities.  Kodiak owned 60% of the working interest in 
various leases that the Company believed to have significant drilling 
potential.  It also owned interests in nine wells that had produced 
reasonable quantities of oil in the past.  The loan was to be used to drill 
on a prospect that Kodiak owned and was secured by a deed of trust covering 
the title to the proposed drilling tract. As additional inducement for the 
loan, the Company received the right to 40% of Kodiak's interest in future 
drilling activities on the leases which had not been developed.  

At the end of September 1997, Kodiak had not begun drilling and the Company
converted its loan to a 40% equity ownership interest in Kodiak.  This
entity's activities are recorded on the Company's books using the equity 
method since ownership is less than 50%.  However, Kodiak did not record any 
operating activities during October and had no effects on the Company's income
statement.  


NOTE 6:   DEFERRED SERVICES AND ABANDONMENT OF BLENDING LICENSE

During the quarter ended July 31, 1997, the Company issued 10,000 shares of
stock as an employment bonus to Terrance Huston.  These shares were issued 
pursuant to an employment contract with an eight month initial term.  Mr. 
Huston was expected to be significantly involved in initiating the gasoline 
blending operation and was employed to work out the details of this operation
and to promote sales and interest among gasoline vendors.  The value of these
shares, $70,000, was being amortized over the eight months of the contract.

During September 1997, it was determined that Mr. Huston's efforts to initiate
the business had failed.  Mr. Huston controlled the entity which sold the 
blending license and related assets to the Company. In light of these facts, the
Company has terminated its relationship with Mr. Huston. Due to the 
indications that these assets have little, if any, future value to the 
Company, the license, carried at $346,000, and the equipment, carried at 
$40,000, have been written off pending indication of future value.  
The Company has also expensed the remainder of Mr. Huston's deferred service 
cost.  


NOTE 7:   RELATED PARTY TRANSACTIONS

The accounts payable balance has significantly increased during the six months
ended October 31, 1997.  This is primarily due to drilling activities.  The
total accounts payable includes $1,498,959 payable to Wagman Petroleum, Inc. for
drilling and lease operating expenses incurred since February 1997.  At this
time, Wagman Petroleum, a related party due to common management, has 
indicated that it is content to wait for the Company to be able repay these 
costs. 

The Company's president and Wagman Petroleum have advanced or loaned a total
of $244,700 to the Company during the six months.  The Company's president has
also purchased 60,857 shares of common stock for $426,000.

Additionally, during the second quarter, Wagman Petroleum which shares an
office with the Company, agreed to increase its share of the office costs and
reimbursed the Company for one-half of the rent and telephone expenses.  This
increase was made effective back to April when the two companies moved to 
Dallas.  The effect of the reimbursement during the second quarter is the 
reporting of significantly lower costs for the current quarter in these 
categories.


NOTE 8: PLANNED FUNDING AND GOING CONCERN

The Company's drilling activities and operating expenses exceed its revenues. 
Without the related party cash flows indicated above, the Company cannot
continue its planned activities.  As a result of this, the Company has made 
plans to decrease its payables and increase its equity as described below.

The Company has acquired a public shell, Lyric Energy, Inc. and plans to
become a subsidiary of Lyric through a stock exchange.  The combined entity 
plans to have a public offering in order to raise funds for its planned 
activities and to repay Wagman Petroleum for the work already done. Timing 
for this offering is dependent on several factors including clearance of 
filed documents by the Securities and Exchange Commission.  There is no 
assurance that this method of funding will be successful in raising the 
capital necessary to repay past costs as well as to fund activities planned 
for the future.  Should the Company fail to raise the necessary
capital to fund its planned activities, cash flows are not expected to be
sufficient to fund them and portions of the assets would, in all likelihood,
not be realizable.  No adjustments have been made to reflect this outcome, which
is not anticipated.


NOTE 9: SUBSEQUENT EVENTS

Subsequent to the end of the second quarter, the Company has entered into a
joint venture with Trans Energy, Inc.  The terms of the joint venture call 
for the creation of a limited liability company, owned in equal shares, which
will drill on an oil and gas prospect in the Powder River Basin in Wyoming 
contributed by Trans Energy.  The Company has agreed to contribute cash of 
$700,000 for the drilling of two wells on this prospect.  In addition, Trans 
Energy has been given the right to require the Company to contribute one-half
of its Crockett County, Texas prospect to the LLC if matched by a $150,000 
cash contribution by Trans Energy.  The Company's management believes that 
the Powder River Basin contains significant reserves based on review of 
seismic studies and the relationship of the prospect to other producing wells
in the area.

In addition to the above, Kodiak has transferred the leases that the Company
had received rights to, along with certain other assets to a new entity.  The
Company has contributed its ownership interest in Kodiak to this new entity in
exchange for 40% ownership of the entity.  This entity plans to develop the 
properties contributed.


Item 2.  Plan of Operation of Lyric Energy, Inc.

     Lyric Energy, Inc. ("Lyric") is a development stage company that is
currently focusing on a proposed transaction with Natural Gas Technologies, Inc.
("NGT"), a Texas corporation engaged in the exploration, development and 
production of oil and gas properties, which proposed transaction is discussed
below under "Acquisition of Control and Share Exchange Transaction."  In the 
event that transaction is not completed, Lyric will focus on the 
identification and evaluation of other prospective merger or acquisition 
"target" entities including private companies, partnerships or sole 
proprietorships.

     Lyric has no capital with which to provide merger or acquisition
candidates with cash or other assets and in the absence of being able to 
complete a merger or acquisition or borrow money from related parties or some
other source, it is unlikely that Lyric will be able to continue as a going 
concern. However, management believes that Lyric offers potential merger or 
acquisition candidates the opportunity to acquire a controlling ownership 
interest in a public company at substantially less cost than is required to 
conduct an initial public offering.

Acquisition of Control and Share Exchange Transaction

     Lyric has entered into a letter of intent dated January 2, 1997 and
modified March 17, 1997 (the "Letter of Intent") with NGT for a share exchange
transaction ("Share Exchange").   The Letter of Intent became binding by the 
March 17, 1997 amendment.  The reason for the Share Exchange is to carry out 
Lyric's Plan of Operation to acquire an operating company.  Prior to entering
into the Letter of Intent, Lyric and NGT were unrelated and NGT held no 
shares of Lyric.

     Pursuant to the Letter of Intent, NGT loaned Lyric $100,000 pursuant to a
non-interest bearing Convertible Promissory Note (the "Note").  The Note had a
maturity date of December 31, 1997 and automatically converted into
203,041,517 shares of Lyric's Common Stock upon (i) Lyric coming into current
compliance with the Securities Exchange Act of 1934, as amended (the 
"Exchange Act"), and (ii) Lyric obtaining a waiver from the Bank of certain 
non-dilution rights in favor of the Bank.  The Note converted by its terms on
April 10, 1997, which resulted in NGT obtaining a controlling interest in 
Lyric.  Previously, no single person or voting group controlled Lyric.  G.E. 
Stahl was the sole Director and approved the transaction in that capacity.  
The source of the $100,000 was loans to NGT from Brent Wagman and Warren 
Donohue, both officers and directors of NGT.

     The Share Exchange will commence after the approval of the matters on the
agenda at a special meeting (the "Special Meeting") to be called for the
purpose of approving (i) a one share for 240.597 share (1 for 240.597) 
reverse stock split of Lyric's Common Stock; (ii) an amendment to Lyric's 
Articles of Incorporation to authorize 10,000,000 shares of no par value 
preferred stock, 9,597 of which will be designed as Series 1994-A Preferred 
Stock, 66,360 of which will be designated as Series 1994-B Preferred Stock 
and the remainder to be reserved for future issuance in the discretion of the
Board of Directors;  (iii) a change of the name of Lyric to Natural Gas 
Technologies, Inc.; (iv) an amendment to Lyric's Articles of Incorporation to
eliminate the liability of Directors and Officers in certain circumstances; 
(v) an amendment to Lyric's Articles of Incorporation to reduce the
voting requirement for certain fundamental corporate actions; and (vi) an
amendment to Lyric's Articles of Incorporation to reduce the quorum for
shareholders meetings to one third of all outstanding votes .  Each of these
actions is being taken in connection with the Share Exchange.  By virtue of
the shares acquired by NGT upon conversion of the Note, NGT holds sufficient 
votes to assure shareholder approval of all of the matters on the agenda.  
The Special Meeting will be called shortly after the Securities and Exchange 
Commission approves the Information Statement to be sent to shareholders in 
connection with the Special Meeting, which Information Statement has been 
filed with the Commission.

     The Share Exchange will take place in two stages.  The first stage will
occur immediately after the Special Meeting and will consist of the exchange of
approximately 2,671,000 shares of the authorized but unissued post-reverse
split shares of Lyric's Common Stock for 3,366,757 shares of NGT common 
stock, which constitutes approximately 82 percent of the equity interests in 
NGT.  The NGT shares to be exchanged in the first stage are held by certain 
officers, directors, affiliates and sophisticated investors.  Lyric will 
control NGT upon completion of the first stage.

     The second stage will occur upon the approval by NGT shareholders of the
exchange of the remaining NGT shares pursuant to an S-4 Registration Statement
and Proxy Statement which registers the exchange of all of the remaining equity
interests in NGT into shares of the authorized but unissued post-reverse split
Common Stock of Lyric and further provides for the distribution of the 843,908
post-reverse split shares of Common Stock issued to NGT upon conversion of the
Note to the shareholders of NGT immediately prior to the Share Exchange.  It
is also contemplated that the shares issued in the first stage of the Share
Exchange will be registered for resale by such registration statement.  NGT has
outstanding 9,597 shares of Series 1994-A Preferred Stock and 66,360 shares 
of Series 1994-B Preferred Stock.  These preferred shares are non-voting and 
will be converted upon the second stage of the Share Exchange into the same 
number of Series 1994-A and Series 1994-B preferred shares of Lyric.  
These shares are to be authorized and designated at the Special Meeting.  As 
of the date hereof, the Series 1994-A shares of NGT have accrued an aggregate
of $10,653 in dividends and the Series 1994-B shares of NGT have accrued an 
aggregate of $26,524 in dividends.  These amounts will become accumulated but
unpaid dividends of the respective series of preferred stock of Lyric to be 
issued in the exchange.  Lyric intends to surrender the NGT preferred shares 
it acquires in the Share Exchange.  Upon completion of the Share Exchange, 
the current shareholders of Lyric will hold approximately five
percent of the total outstanding shares of Lyric and the shareholders of NGT
will hold the remaining 95 percent, assuming conversion of the preferred 
shares to be issued in the Share Exchange to common shares.
  
     The material terms of the Note and the Share Exchange were negotiated and
agreed to by Lyric and NGT prior to NGT obtaining control of Lyric.  The terms
were the result of arms' length negotiations between Lyric and NGT.  In light
of the independence of the companies at the time of the negotiations and Lyric's
lack of assets and operations, the Board of Directors determined that an
independent valuation or fairness opinion would offer very little support to 
the valuation of the transaction.  Factors considered in determining the 
amount of the Note and the percentage of shares held by either party 
subsequent to all conversions were (i) funds necessary to pay off Lyric's 
debts, (ii) expenses to bring Lyric's reports current, (iii) the amount of 
debt to be forgiven, (iv) the market for Lyric's shares, (v) the inability of
NGT to utilize Lyric's loss carryforward, and (vi) the relative value of the 
two businesses as determined by each company's Board of Directors.

     The Share Exchange is expected to be accounted for as a purchase.  The
Share Exchange is structured as a tax-free reorganization and should not have 
any tax consequences for the shareholders of Lyric or NGT.

     Under Colorado law, the Share Exchange may be effected by resolution of
the Board of Directors of Lyric.  Approval of the shareholders of Lyric is not
required and Colorado law does not grant dissenter's rights to the
shareholders of Lyric.

     The Share Exchange remains conditional upon the completion of final
documentation therefor, but management currently expects that the Share
Exchange will be completed.

Liquidity and Capital Resources

     On October 31, 1997, Lyric had no assets.  Should the Share Exchange not
be completed and in the absence of being able to borrow money from related
parties or some other source, it is unlikely that Lyric will be able to 
continue as a going concern.

Management's Discussion and Analysis of Financial Condition and Results of
Operations of NGT

Overview
  
     The following discussion should be read in conjunction with the
disclosures concerning NGT contained in the Form 10-KSB for Lyric for the 
year ended April 30, 1997.  
     NGT uses the full cost method of accounting for its oil and gas producing
activities and, accordingly, capitalized all costs incurred in the
acquisition, exploration and development of proved oil and gas properties, 
including the costs of abandoned properties, dry holes, geophysical costs and
annual lease rentals. In general, sales or other dispositions of oil and gas 
properties are accounted for as adjustments to capitalized costs, with no 
gain or loss recorded.

     NGT entered into a letter of intent dated January 2, 1997, as modified on
March 17, 1997, whereby NGT obtained on April 10, 1997 a controlling interest
in Lyric, and pursuant to which Lyric will acquire NGT in a share exchange
transaction whereby the shareholders of NGT will upon completion of the
transaction hold approximately 95 percent of the total outstanding shares of
Lyric.  See  "Acquisition of Control and Share Exchange Transaction" discussed
in the Plan of Operation of Lyric above.

Results of Operations

The following tables set forth for the periods indicated the percentage of
total revenues represented by certain line items included in NGT's Statements of
Operations.

<TABLE>
<CAPTION>
                          Three Months Ended       Six Months Ended October
                          October 31               31
                          __________________      _________________________
                           1997       1996         1997           1996
                          _________________________________________________
<S>                       <C>         <C>          <C>           <C>
Total revenues             100%       100%         100%           100%
Total expenses             756        185          653            194
(Loss) from operations    (656)       (85)        (553)           (94)
Net interest income 
 (expense)                 (80)        (4)         (94)            (4)
Net (loss)                (736)       (89)        (647)           (98)

</TABLE>

     Oil and gas revenues.  Oil and gas revenues increased by $125,000, or 266
percent, to $172,052 for the six months ended October 31, 1997 compared with
$47,020 for the 1996 period.  Oil and gas revenues were $105,794 for the three
months ended October 31, 1997, which represents an increase of $83,400, or 372
percent, compared to $22,394 for the 1996 period.  These increases were
primarily attributable to new production from acquisitions and successful 
reworks of older wells, partially offset by lower sales prices of production.
The following table sets forth production and price information for the six 
months and three months ended October 31, 1997 and 1996.              

<TABLE>
<CAPTION>
                          Three Months Ended       Six Months Ended October
                          October 31               31
                          __________________      _________________________
                           1997       1996         1997           1996
                          _________________________________________________
<S>                    <C>        <C>          <C>            <C>
Net Bbls Oil             4,354        769        7,295          1,737
Avg. Price Bbl          $18.83     $22.33       $18.68         $21.02
Net Mcf Gas              4,585      3,046        8,249          6,163
Avg. Price per Mcf       $2.44      $1.94        $2.08          $1.91

</TABLE>

     Lease operating expenses.  Lease operating expenses increased by $228,051
to $264,155 for the six months ended October 31, 1997 compared with $36,104 for
the 1996 period.  Lease operating expenses for such period were 153 percent 
of oil and gas revenues compared with 77 percent of oil and gas revenues for 
the 1996 period. Lease operating expenses were $144,301 for the three months 
ended October 31, 1997, which represents an increase of $127,892 compared to 
$16,409 for the 1996 period.  Lease operating expenses for such period were 
136 percent of oil and gas revenues compared with 73 percent of oil and gas 
revenues for the 1996 period. The increases in lease operating expenses as a 
percentage of revenue were due to the implementation of a polymer water flood
on the East Milham Sand Unit and plugging costs for unprofitable wells.  NGT 
expects lease operating costs to decline substantially as a percentage of 
revenues in future periods because its planned reworks of East Milham Sand 
Unit and Waggoner M are complete.  NGT has commenced polymer injection in the
East Milham Sand Unit and is investigating water flood patterns on Waggoner M
in anticipation of commencing polymer injection.

     Depreciation, depletion and amortization.  Depreciation, depletion and
amortization ("DDA") increased by $91,721 to $113,605 for the six months ended
October 31, 1997 compared with $21,884 for the 1996 period.  DDA for such
period was 66 percent of oil and gas revenues compared with 47 percent of oil
and gas revenues for the 1996 period.  DDA was $67,021 for the three months 
ended October 31, 1997, which represents an increase of $56,320 compared to 
$10,701 for the 1996 period.  DDA for such period was 63 percent of oil and 
gas revenues compared with 48 percent of oil and gas revenues for the 1996 
period.  During all periods reported NGT recorded a depletion cost of $8.85 
per barrel, and the increases in DDA as a percentage of revenue for the 1997 
periods were due to lower market prices for oil during the 1997 periods, 
partially offset by higher market prices for gas.

     Professional fees.  Professional fees of $114,337 and $67,985 for the six
months and three months ended October 31, 1997, respectively, were primarily
due to legal and accounting services with respect to NGT's loan and pending 
share exchange with Lyric and the Information Statement for the Special 
Meeting to be held for Lyric shareholders to approve certain matters in 
connection with the Share Exchange.

     Consulting fees.  Consulting fees of $75,000 and $52,500 for the six
months and three months ended October 31, 1997, respectively, were 
attributable to financial advisory services rendered in connection with an 
employment contract with an officer of a subsidiary, which officer's 
employment with such subsidiary was terminated in September 1997, at which 
time the remaining unamortized portion of such fees was charged to expense.

     Personnel costs.  Personnel costs of $113,555 and $63,948 for the six
months and three months ended October 31, 1997 were attributable to the 
addition of approximately five employees in connection with the establishment
of new office headquarters in Dallas, Texas in April 1997.

     Rent.  NGT recorded zero rent expense for three months ended October 31,
1997 compared with $1,050 for the 1996 period.  Rent expense for the six months
ended October 31, 1997 was $9,148, which represents an increase of $7,048, or
336 percent, over the 1996 period.  Rent increased for the six month period 
due to NGT's relocation to larger offices in April 1997.  However, during the
second quarter, NGT reached an agreement with a related party with which it 
shares the Dallas office for the related party to reimburse one-half of the 
rent and telephone expenses retroactive to April 1997.  This retroactive 
reimbursement led to NGT recording no rent expense for the second quarter.

     Director Fees.  Director fees of $20,833 and $8,333 for the six months
and three months ended October 31, 1996, respectively, were attributable to the
amortization expense associated with the issuance of stock in October 1993 to
a Director as compensation for his services for three years.  Such fees were
fully amortized prior to fiscal 1998.

     Travel.  Travel expenses for the six months and three months ended
October 31, 1997 of $18,556 and $11,328 were attributable to management's 
meetings with business partners and professionals associated with capital 
raising efforts and increasing the asset base of the company.

     Other expenses.  Other expenses of $21,042 for the six months ended
October 31, 1997 were primarily attributable to the relocation to larger 
offices and public relations expenses.

     Loss on abandonment of assets.  In September 1997, NGT learned that its
purchase of a license to blend an alternative gasoline and related assets from
Mobile Americlean Ltd. had been induced by fraudulent misrepresentations on
the part of Mobile Americlean's principal, Terry Huston, concerning the 
prospects for establishing a blending operation in Mobile, Alabama based upon
the license agreement.  See further discussion under Part II, Item 1, "Legal 
Proceedings."  As a result of these discoveries, NGT determined to abandon 
its plans for establishing a fuel blending operation based upon the assets 
acquired from Mobile Americlean.  The license, which was carried at $346,000,
and the equipment, carried at $40,000, were therefore written off and 
expensed during the three months ended October 31, 1997.

     Interest expense.  Interest expense of $167,818 and $86,853,
respectively, for the six months and three months ended October 31, 1997 was 
primarily attributable to the assumption in April 1997 of the $3 million note in
connection with NGT's acquisition of Interior Energy, Inc.

     Net loss.  Net loss for the six months ended October 31, 1997 increased
$1,069,187, or 2322 percent, to $1,115,234 compared to $46,047 for the 1996
period.  Net loss was $778,170 for the three months ended October 31, 1997,
which represents an increase of $748,323, or 3821 percent, compared with 
$19,847 in the 1996 period.  The increases in net loss were primarily due to 
the abandonment of the fuel blending license and equipment, increased lease 
operating expenses, depreciation, depletion and amortization, professional 
fees, consulting fees, personnel costs, and interest expense partially offset
by increased oil and gas revenues and decreased director fees.

Liquidity and Capital Resources

     On October 31, 1997, NGT had $340,000 in cash on hand.  NGT's primary
sources of liquidity are proceeds from stock issuances, advances from related 
parties and borrowings.  NGT's principal cash needs are for the acquisition, 
exploration and development of oil and gas properties.
 
     Cash flow.  NGT's net cash provided by operating activities increased
$804,167 to $804,429 for the six months ended October 31, 1997 compared with
$262 in the 1996 period primarily due to much larger accounts payable financing
during the 1997 period, partially offset by the larger net loss for the 1997 
period. Net cash used in investing activities increased $1,845,476 to 
$1,850,063 for the six months ended October 31, 1997 compared to $4,587 in 
the 1996 period due to greatly increased lease and drilling costs for new 
wells and purchases of lease and well equipment during the 1997 period.

     Net cash provided by financing activities was $569,192 for the six months
ended October 31, 1997, consisting of proceeds from the issuance of stock and
advances from related parties, partially offset by note payments, compared
with net cash provided of $4,188 in the 1996 period attributable to advances 
from related parties less note payments.

     NGT's accounts payable balance significantly increased during the six
months ended October 31, 1997.  This is primarily due to drilling activities.
The total accounts payable includes $1,498,959 payable to Wagman Petroleum, 
Inc. ("WPI") for drilling and lease operating expenses incurred since 
February 1997.  At this time, WPI, a related party due to common management, 
is content to wait for NGT to be able repay these costs.  NGT plans to have a
public offering in order to fund its planned activities and to repay WPI for 
the work already done.  Timing for this offering is dependent on several 
factors.  There is no assurance that this method of funding will be 
successful in raising the capital necessary to repay past costs
as well as to fund activities planned for the future.  Should NGT fail to
raise the necessary capital to fund its planned activities, cash flows are not
expected to be sufficient to fund them and portions of the assets would, in all
likelihood, not be realizable.  No accounting adjustments have been made to 
reflect this outcome, which is not anticipated.

     Capital expenditures.  NGT's expenditures for the purchase of fixed
assets and oil and gas properties are the primary use of its capital 
resources.  NGT has committed to contribute up to $700,000 for the drilling 
of two wells on the Prima Prospect by Sundance Producers LLC, a limited 
liability company owned fifty percent by NGT and fifty percent by Trans 
Energy, Inc. (see discussion under "Material Events" below).  NGT's current 
business plan anticipates additional material capital expenditures during the
fiscal year ended April 30, 1998, subject to the availability of capital.  
NGT raised $385,000 through the sale of 55,000 shares of common stock to its 
president during the quarter ended October 31, 1997, and raised an additional
$1,000,000 through the sale of $166,667 shares of common stock to an 
unrelated party in December 1997.  This capital will be used to fund
operations, capital expenditures and to pay off some of NGT's debt.  NGT
anticipates raising additional capital in the next twelve months for
additional capital expenditures through a public or private sale of 
securities and/or through bank loans.  The amount of future capital 
expenditures will depend upon a number of factors including the impact of oil
and gas prices on investment opportunities, the availability of capital and 
the success of its development activity which could lead to funding 
requirements for further development.

Other Material Events

     During August 1997, NGT loaned $160,00 to Kodiak Corporation for planned
drilling activities.  At the end of September 1997, NGT converted its loan to
a forty percent equity ownership interest in Kodiak.  In November 1997, NGT
exchanged its equity interest in Kodiak for an equity interest in Mirae LLC,
which was formed to hold a royalty interest in some of Kodiak's production 
and some of Kodiak's oil and gas leases, as well as other leases.  Mirae 
currently holds the royalty interest and a number of leases in Wilbarger 
County, and has commenced drilling on one of the leases using funds loaned by
NGT.

     In December 1997, NGT entered into an agreement for a joint venture with
Trans Energy, Inc., a Nasdaq company engaged in oil and gas exploration and
distribution.  The agreement calls for the formation of a limited liability
company, called Sundance Producers LLC, to jointly own and develop oil and gas
properties.  Trans Energy will contribute to Sundance its fee ownership in
approximately 1,100 acres in Crook County, Wyoming.  NGT will contribute up to
$700,000 for the drilling of two wells on the property.  In addition, NGT
granted Trans Energy an option to require NGT to contribute to Sundance one 
half of its working interest in its lease for the Miller Ranch property in 
Crockett County, Texas if matched by a $150,000 cash contribution from Trans 
Energy. Sundance will be owned fifty percent by each of NGT and Trans Energy,
and will be managed jointly.

Effects of Inflation and Changing Prices

     NGT's results of operations and cash flows are affected by changing oil
and gas prices.  At present, NGT does not expect that changes in the rates of
overall economic growth or inflation will significantly impact product prices
in the short-term.  While gas prices seem most dependent on weather in North 
America and corresponding usage, oil prices are more subject to global 
economic forces and supply. NGT cannot predict the extent of any such effect.
If oil and gas prices increase, there could be a corresponding increase in 
the cost to NGT for drilling and related services as well as an increase in 
revenues.

Cautionary Statement with Regard to Forward Looking Information

     The matters discussed in the above Plan of Operation of Lyric and
Management's Discussion of Analysis of Financial Condition and Results of
Operations of NGT, when not historical matters, are forward looking statements
which involve a number of risks and uncertainties which could cause actual
events and results to differ materially from projected or anticipated events or
results. Such factors include, among other things, the speculative nature of 
oil and gas exploration, the volatile markets for oil and gas, uncertainties 
in production and reserve estimates, environmental and governmental 
regulations, the availability of financing, particularly equity financing, 
the ability of Lyric to establish a trading market for its stock, force 
majeure events and other risk factors as described from time to time in 
reports filed by Lyric with the Securities and Exchange Commission.


                       PART II - OTHER INFORMATION


Item 1.     Legal Proceedings

            See the Company's Annual Report on Form 10-KSB/A for the fiscal
            year ended April 30, 1997.

            On December 9, 1997, Terrence Huston, a former employee of NGT and
            its subsidiary, filed an action against NGT and Brent Wagman in 
            the Circuit Court of Baldwin County, Alabama, seeking unspecified
            compensatory and punitive damages for claims arising out of the
            termination of Mr. Huston's employment with NGT.  NGT is 
            considering its options with respect to this action, but believes
            the action has no merit and will not have a material adverse 
            effect on NGT.

Item 2.     Changes in Securities

            None.

Item 3.     Defaults Upon Senior Securities

            None.

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

            None.

Item 5.     Other Information

            See "Other Material Events" above.

Item 6.     Exhibits And Reports On Form 8-K

            (a)  Exhibits

            The exhibits included in the Company's Annual Report on Form
            10-KSB for the fiscal year ended April 30, 1997 are incorporated 
            herein by reference.

            10.24     Agreement between Natural Gas Technologies, Inc. and
                      Trans Energy, Inc. dated December 4, 1997

            27.1      Financial Data Schedule

            (b)  Reports On Form 8-K

            None.

                                   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.


                                     LYRIC ENERGY, INC.



Date:  December 22, 1997             By: /S/ BRENT WAGMAN
                                     ____________________
                                     Brent Wagman, Chairman of the Board

<PAGE>
                             Exhibit 10.24

                              AGREEMENT

     This Agreement is entered into this 4th day of December, 1997, by and
between Natural Gas Technologies, Inc., a Texas corporation ("NGT") and Trans
Energy, Inc., a Nevada corporation ("TEI").

   1.  Purpose of Agreement.  NGT and TEI shall cause the formation of a
Colorado Limited Liability Company ("LLC") for the purpose of jointly holding
and operating oil and gas properties.

   2.  TEI Capital Contribution.  TEI shall contribute to the LLC all of its
right, title and interest in and to the oil and gas prospect known as the
Prima Prospect located in the Powder River Basin in Wyoming (the "Prima 
Property") together with all of TEI's technical data concerning the Prima 
Property. TEI's interest in the Prima Property is more particularly described
on Exhibit A hereto.

   3.  NGT Capital Contribution.  NGT shall contribute to the LLC sufficient
cash for the drilling of two completed wells on the Prima Property, subject to
customary contingencies concerning abnormal drilling conditions and force
majeure occurrences.  The amount of NGT's cash contribution shall in no event
exceed $700,000.

   4.  Ownership Interests.  In return for their respective contributions,
each of NGT and TEI shall receive fifty percent of the total outstanding 
membership units in the LLC.

   5.  Management.  The LLC shall be managed by two managers.  Each of NGT and
TEI shall have the right to appoint one manager.  All actions of the LLC must be
approved by both managers.  All funds of the LLC shall be held in accounts in
the name of the LLC, and a separate account shall be established for each oil
and gas property of the LLC.  The signature of both managers shall be 
required to write checks from any account of the LLC in excess of $10,000.  
The compensation of the managers, if any, must be agreed to by both parties.

   6.  Bankruptcy or Receivership.  In the event that either NGT or TEI shall
be the subject of a petition for bankruptcy or receivership, which petition is
not discharged within thirty days, the party which is not the subject of the
petition shall have the right to immediately replace the manager appointed by
the other party, and shall thereafter have the right to appoint both 
managers.  The party subject to such petition shall thereafter have no right 
to management of the LLC except as may be required by applicable law, but 
shall continue to participate in distributions to the extent of its unit 
ownership in the LLC.

   7.  Disposition of Revenues.  Thirty percent of all revenues from the LLC
after payment of ordinary operating expenses shall be retained by the LLC for
capital expansion.  The remaining seventy percent of revenues shall be 
distributed monthly to the parties in accordance with their respective unit 
interests.  Any deviation from the foregoing shall require the consent of 
both parties.

   8.  Capital Contributions.  In the event that the LLC shall be required to
make a capital contribution to any oil and gas property in which it holds an
interest, or in the event that both parties deem it advisable to invest 
capital in such a property, the LLC shall use retained earnings to the extent
such earnings are available.  Any additional capital contributions shall be 
provided pro rata by the parties.  In the event one of the parties (the 
"Defaulting Party") is unwilling or unable to make its entire capital 
contribution within thirty days of the call, the other party (the "Paying 
Party") may make that portion of the contribution not made by the Defaulting 
Party (the "Excess Contribution").  In such case, notwithstanding the 
provisions of section 7, the Paying Party shall be entitled to
receive in addition to its ordinary share of revenues from the particular
capital project for which the contribution was made, an amount equal to three
times the Excess Contribution out of the share of revenues from such capital 
project which would otherwise be payable to the Defaulting Party. Thereafter,
the provisions of section 7 shall apply to all revenues from such projects.

   9.  Representations and Warranties.  TEI hereby represents and warrants to
NGT as a material inducement to NGT that it has good title free and clear of all
encumbrances or other agreements not disclosed on Exhibit A to all of the
rights specified on Exhibit A and has an AFE for the Prima Property.  TEI shall
supply evidence to NGT of the foregoing reasonably satisfactory to NGT within 
seven days after execution of this Agreement, and NGT shall not be obligated 
to make its capital contribution until it has received such evidence.

   10. Option to Purchase Miller Ranch.  TEI shall have the option to require
NGT to contribute one half of its current working interest in the Miller Ranch
property located in Crockett County, Texas (the "Miller Ranch Property") to
the LLC.  Such option may be exercised by TEI contributing $150,000 cash to the
LLC. Such option shall expire and be of no further force and effect on March 31,
1998. If such option is exercised, the LLC shall be entitled to all net revenues
received on such property between the date of this Agreement and the date of
exercise. 

   11. Right of First Refusal.  In the event one party shall receive a bona
fide offer to purchase any or all of its membership units from a person or 
entity other than a controlled subsidiary or affiliate of such party, the 
other party shall have thirty days to exercise a right of first refusal to 
purchase such units on the same terms as those offered by the bona fide offeree.

   12. Disputes.  Any disagreements of the parties which cannot be resolved
through negotiation or non-binding mediation shall be submitted to binding
arbitration in Dallas, Texas pursuant to the rules of the American Arbitration
Association.

   13. Special Provision for Prima Well Site.  NGT acknowledges that TEI has
been engaged in negotiations for the sublease of a 40-acre drill site on the 
Prima Property located on the Northeast of the Southeast of Section 8, 
Township 67 West, Range 54 North.  In the event TEI is able to consummate a 
sublease of such drill site on or before the date that the LLC penetrates the
target pay zone(s) of its first well, TEI shall be entitled to retain 100 
percent of the proceeds from such sublease.  Otherwise, such drill site shall
be contributed to the LLC.

   14. Special Provision for Miller Ranch.  TEI acknowledges that NGT is
engaged in negotiations for the sale of fifty percent of its current working 
interest in the Miller Ranch Property.  NGT shall have the right as part of 
such sale to obtain a commitment of the buyer to contribute up to $1,000,000 
for the drilling of wells which carries NGT's pro rata share of the expenses 
for such wells. NGT shall have exclusive rights to its retained fifty percent
working interest in any such wells drilled by March 31, 1998 notwithstanding 
the exercise by TEI of the option set forth in section 10.

   15. Articles of Organization; Operating Agreement.  The parties shall
diligently proceed to prepare and execute Articles of Organization and an
Operating Agreement for the LLC reflecting the foregoing terms and such other
terms as are customary for a limited liability company engaged in the business
of the LLC.  Each party shall negotiate in good faith toward the completion of
these documents without unreasonable delay.

   16. Other Provisions.

        a.  Successors and Assigns.  Subject to section 6, this Agreement
shall be binding upon and inure to the benefit of the parties and their 
respective successors and assigns.  Without limiting the generality of the 
foregoing, NGT's interests in this Agreement shall be succeeded to by Lyric 
Energy, Inc. upon consummation of a share exchange between NGT and Lyric 
Energy, Inc.

        b.  Cooperation.  Subject to the terms and conditions herein provided,
each of the parties hereto agrees to use all reasonable efforts to take, or
cause to be taken, all actions and to do, or cause to be done, all things 
necessary, proper or advisable under applicable laws and regulations to 
consummate the transactions contemplated by this Agreement.

        c.  Confidentiality; Public Statements.  The parties shall keep the
terms of this Agreement confidential except to the extent that each is 
required by applicable law to disclose such terms.  For any such disclosure, 
each party shall consult and cooperate with each other and agree upon the 
terms and substance of such disclosures.

        d.  Entire Agreement; Amendment.  This Agreement constitutes the
entire agreement between the parties with respect to the subject matter 
hereof, and supersedes all prior written or oral understandings between the 
parties.  Any amendment or waiver of this Agreement shall require the written
consent of the party to be charged.

        e.  No Assignment.  This Agreement may not be assigned without prior
consent of all parties hereto.

        f.  Headings.  The headings are included for convenience only and
shall not affect the construction or interpretation of this Agreement

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered
by the duly authorized officers of the parties hereto on the date first
hereinabove written.


                                     NATURAL GAS TECHNOLOGIES, INC.




                                     By:/s/ Brent Wagman              
                                     __________________________________
                                      Brent Wagman, President and Director

                                     By:/s/ Warren Donohue
                                     __________________________________        
  
                                      Warren Donohue, Vice President and
                                      Director


                                     TRANS ENERGY, INC.




                                    By: Loren E. Bagley
                                    ______________________________________     

                                    Loren E. Bagley, President and Director

                                    By: William F. Woodburn                  
                                    ______________________________________
                                    William F. Woodburn, Vice President 
                                    and Director