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

                                    FORM 10-Q

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

For the quarterly period ended      February 29, 2000
                               -------------------------
                                       or

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

For the transition period from                to
                               ---------------   ----------------

Commission File Number:        001-9872
                        ----------------------



                              COLUMBUS ENERGY CORP.
                   ------------------------------------------
             (Exact name of registrant as specified in its charter)

              Colorado                                 84-0891713
     -------------------------------------------------------------------
     (State or other jurisdiction of                  (I.R.S. Employer
     incorporation or organization)                  Identification No.)

         1660 Lincoln St., Denver, CO                      80264
     -------------------------------------------------------------------
    (Address of principal executive offices)             (Zip Code)

                                 (303) 861-5252
              ---------------------------------------------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
             -------------------------------------------------------
             (Former name, former address and former fiscal year, if
                           changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.     Yes _X_     No ____

  Indicate the number of shares  outstanding of each of the issuer's  classes of
common stock, as of the latest practicable date.

            Class                   Outstanding at April 13, 2000
-----------------------------       -----------------------------
Common stock, $.20 par value                  3,744,374




                                       1
<PAGE>


                              COLUMBUS ENERGY CORP.

                                      INDEX

                                                                          PAGE

PART I.  FINANCIAL INFORMATION

     Item 1.  Financial Statements

              Consolidated Balance Sheets -
                February 29, 2000 and
                November 30, 1999                                          3

              Consolidated Statements of Operations -
                Three Months Ended February 29, 2000
                and February 28, 1999                                      5

              Consolidated Statement of
                Stockholders' Equity -
                Three Months Ended February 29, 2000                       6

              Consolidated Statements of Cash Flows -
                Three Months Ended February 29, 2000
                and February 28, 1999                                      7

              Notes to the Financial Statements                            9

     Item 2.  Management's Discussion and Analysis
                of Financial Condition and
                Results of Operations                                     15

PART II.  OTHER INFORMATION

     Item 1.     Legal Proceedings                                        25

     Items 2-5.  Not Applicable

     Item 6.     Exhibits and Reports
                   on Form 8-K                                            25

     Signatures                                                           26














                                       2
<PAGE>



                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                              COLUMBUS ENERGY CORP.

                           CONSOLIDATED BALANCE SHEETS


                                     ASSETS

                                                February 29,       November 30,
                                                     2000              1999
                                                 -----------       ------------
                                                 (unaudited)
                                                       (in thousands)

Current assets:
  Cash and cash equivalents                       $  1,284           $  1,850
  Accounts receivable:
    Joint interest partners                          1,245              1,780
    Oil and gas sales                                1,319              1,501
    Allowance for doubtful accounts                   (116)              (116)
  Deferred income taxes (Note 3)                       160                200
  Inventory of oil field equipment,
    at lower of average cost or market                  97                106
  Other                                                 61                 80
                                                   -------            -------

        Total current assets                         4,050              5,401
                                                   -------            -------

Deferred income taxes (Note 3)                       1,212                937

Property and equipment:
  Oil and gas assets, successful efforts
    method (Note 2)                                 36,656             36,862
  Other property and equipment                       1,843              1,836
                                                   -------            -------

                                                    38,499             38,698
  Less:  Accumulated depreciation,
     depletion and amortization
     and valuation allowance                       (23,231)           (22,506)
                                                   -------            -------

        Net property and equipment                  15,268             16,192
                                                   -------            -------

                                                  $ 20,530           $ 22,530
                                                  ========           ========

                                   (continued)







                                       3
<PAGE>



                              COLUMBUS ENERGY CORP.

                    CONSOLIDATED BALANCE SHEETS - (continued)


                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

                                                February 29,       November 30,
                                                     2000              1999
                                                 -----------       ------------
                                                 (unaudited)
                                                       (in thousands)

Current liabilities:
  Accounts payable                              $   1,348            $   2,352
  Undistributed oil and gas
   production receipts                                425                  386
  Accrued production and property taxes               309                  738
  Prepayments from joint interest owners              175                  200
  Accrued expenses                                    472                  494
  Income taxes payable (Note 3)                         3                   30
  Other                                                13                   32
                                                   ------               ------

        Total current liabilities                   2,745                4,232
                                                   ------               ------

Long-term bank debt (Note 2)                        5,700                5,500

Commitments and contingent liabilities
  (Notes 4 and 5)

Stockholders' equity:
  Preferred stock authorized 5,000,000
    shares, no par value, none issued                   -                    -
  Common stock authorized 20,000,000
    shares of $.20 par value; shares issued
    4,650,748 in 2000, and 4,645,303 in 1999
    (outstanding 3,753,374 in 2000 and
    3,800,558 in 1999)                                930                  929
  Additional paid-in capital                       20,097               20,069
  Accumulated deficit                              (3,099)              (2,655)
                                                   ------               ------
                                                   17,928               18,343
  Less: Treasury stock at cost
          897,374 shares in 2000 and
          844,745 shares in 1999                   (5,843)              (5,545)
                                                   ------               ------
        Total stockholders' equity                 12,085               12,798
                                                   ------               ------
                                                $  20,530            $  22,530
                                                   ======               ======


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



                                       4
<PAGE>


                              COLUMBUS ENERGY CORP.

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                               Three Months Ended
                                                     ---------------------------------------
                                                     February 29, 2000     February 28, 1999
                                                     -----------------     -----------------
                                                     (in thousands, except per share data)
<S>                                                       <C>                    <C>
Revenues:
  Oil and gas sales                                       $  2,740               $  2,033
  Operating and management
    services                                                   370                    336
  Interest and other income                                     33                     27
                                                          --------               --------
       Total revenues                                        3,143                  2,396
                                                          --------               --------
Costs and expenses:
  Lease operating expenses                                     545                    422
  Property and production taxes                                284                    244
  Operating and management
    services                                                   231                    251
  General and administrative                                   328                    336
  Depreciation, depletion and
    amortization                                               751                    890
  Exploration expense                                        1,412                    119
  Litigation expense (Note 4)                                  158                      4
                                                          --------               --------
      Total costs and expenses                               3,709                  2,266
                                                          --------               --------
      Operating income (loss)                                 (566)                   130
                                                          --------               --------

Other expenses (income):
  Interest                                                     107                     84
  Other                                                          -                      1
                                                          --------               --------
                                                               107                     85
                                                          --------               --------
      Earnings (loss) before
        income taxes                                          (673)                    45

Provision (benefit) for income
  taxes (Note 3)                                              (229)                    17
                                                          --------               --------
      Net earnings (loss)                                 $   (444)              $     28
                                                          ========               ========

Earnings (loss) per share (Note 7):
  Basic                                                   $   (.12)              $    .01
                                                          ========               ========
  Diluted                                                 $   (.12)              $    .01
                                                          ========               ========

Average number of common shares and
 common equivalent shares outstanding:
  Basic                                                      3,773                  4,009
                                                          ========               ========
  Diluted                                                    3,773                  4,039
                                                          ========               ========
</TABLE>


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



                                       5
<PAGE>

                              COLUMBUS ENERGY CORP.
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                  For the Three Months Ended February 29, 2000
                                   (Unaudited)



<TABLE>
<CAPTION>

                                           Common Stock            Additional                    Treasury Stock
                                    --------------------------      Paid-in    Accumulated    ---------------------
                                         Shares        Amount       Capital     Deficit         Shares       Amount
                                    -------------  -----------    ----------  -----------     ----------    -------
                                                  (dollar amounts in thousands)
<S>                                   <C>             <C>            <C>         <C>            <C>          <C>
Balances,
  December 1, 1999                    4,645,303       $   929        $20,069     $(2,655)       844,745      $(5,545)

Purchase of shares                            -             -              -           -         54,000         (307)
Shares issued for Stock
  Purchase Plan                           5,445             1             28           -         (1,371)           9
Net loss                                      -             -              -        (444)             -            -
                                      ---------       -------        -------     --------       -------      -------

Balances,
  February 29, 2000                   4,650,748       $   930        $20,097     $(3,099)       897,374      $(5,843)
                                     ==========       =======        =======     =======        =======       ======
</TABLE>



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



                                       6
<PAGE>



                              COLUMBUS ENERGY CORP.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                               Three Months Ended
                                                     ---------------------------------------
                                                     February 29, 2000     February 28, 1999
                                                     -----------------     -----------------
                                                                  (in thousands)

<S>                                                        <C>                    <C>
Net earnings (loss)                                        $  (444)               $    28

Adjustments to reconcile  net earnings  (loss)
  to net cash  provided by operating activities:

    Depreciation, depletion, and
      amortization                                             751                    890
    Deferred income tax provision (benefit)                   (235)                    (3)
    Exploration expense, noncash portion                         -                     40
    Other                                                       22                     30
Net change in operating assets and
  liabilities                                                 (435)                  (369)
                                                           -------                -------
        Net cash provided by (used
          in) operating activities                            (341)                   616
                                                           -------                -------

Cash flows from investing activities:

  Proceeds from sale of assets                                  66                      -
  Additions to oil and gas properties                         (205)                (1,085)
  Additions to other assets                                     (8)                   (10)
                                                           -------                -------
        Net cash used in
          investing activities                                (147)                (1,095)
                                                           -------                -------

Cash flows from financing activities:

  Proceeds from long-term debt                                 300                    300
  Reduction in long-term debt                                 (100)                  (200)
  Proceeds from issuance of
    common stock                                                29                     35
  Purchase of treasury stock                                  (307)                  (743)
                                                           -------                -------
        Net cash used in financing
          activities                                           (78)                  (608)
                                                           -------                -------

Net decrease in cash and
  cash equivalents                                            (566)                (1,087)
Cash and cash equivalents at
  beginning of period                                        1,850                  2,003
                                                            ------                -------
Cash and cash equivalents at
  end of period                                            $ 1,284               $    916
                                                            ======                =======
</TABLE>


                                   (continued)



                                       7
<PAGE>

                              COLUMBUS ENERGY CORP.

               CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                               Three Months Ended
                                                     ---------------------------------------
                                                     February 29, 2000     February 28, 1999
                                                     -----------------     -----------------
                                                                  (in thousands)

<S>                                                        <C>                    <C>
Supplemental disclosure of cash flow information:
    Cash paid (received) during the period for:
      Interest                                             $    95                $     85
                                                            ======                 =======
      Income taxes, net of refunds                         $    33                $    (23)
                                                            ======                 =======

Supplemental disclosure of non-cash investing
  and financing activities:
    Non-cash compensation expense
      related to common stock                              $    22                $     30
                                                            ======                 =======
</TABLE>



























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


                                       8
<PAGE>


                              COLUMBUS ENERGY CORP.

                        NOTES TO THE FINANCIAL STATEMENTS
                                   (Unaudited)


(1)  BASIS OF PRESENTATION

         The accompanying consolidated financial statements include the accounts
of  Columbus  Energy  Corp.  ("Columbus")  and  its  wholly-owned  subsidiaries,
Columbus Gas Services,  Inc.  ("CGSI") and Columbus Texas, Inc.  ("Texas").  All
significant  intercompany  balances have been eliminated in  consolidation.  The
term "Company" as used herein includes Columbus and its subsidiaries.

          The  consolidated  financial  statements  of  the  Company  have  been
prepared in accordance with generally accepted accounting principles and require
the  use  of  management's  estimates.  The  financial  statements  contain  all
adjustments (consisting only of normal recurring accruals) which, in the opinion
of  management,  are necessary to present  fairly the financial  position of the
Company as of February 29, 2000 and  November  30, 1999,  and the results of its
operations and cash flows for the periods  presented.  The results of operations
for such  interim  periods  are not  necessarily  indicative  of  results  to be
expected for the full year.

          The accounting  policies followed by the Company are set forth in Note
2 to the  Company's  consolidated  financial  statements in the Annual Report on
Form 10-K for the year ended November 30, 1999.  These  accounting  policies and
other footnote  disclosures  previously made have been omitted in this report so
long as the interim  information  presented is not  misleading.  These quarterly
financial  statements  should  be  read in  conjunction  with  the  consolidated
financial statements and notes included in the 1999 Form 10-K.

(2)  LONG-TERM DEBT

     The Company has a credit agreement with Norwest Bank Denver,  N.A. ("Bank")
that was amended on May 12, 1999 to extend the revolving  period to July 1, 2001
when it entirely converts to an amortizing term loan which matures July 1, 2005.
The  credit is  collateralized  by a first lien on oil and gas  properties.  The
interest rate options are the Bank's prime rate or LIBOR plus 1.50%.

     The borrowing  base is limited to  $10,000,000  and subject to  semi-annual
redetermination  for any increase or decrease.  At February 29, 2000 outstanding
borrowings  on the  revolving  line of credit  were  $5,700,000  and the  unused
borrowing base available was  $4,300,000.  A commitment fee of 1/4 of 1% for any
unused portion of the amount which is the difference  between the borrowing base
and the outstanding borrowings is payable quarterly.


                                       9
<PAGE>



                              COLUMBUS ENERGY CORP.

                 NOTES TO THE FINANCIAL STATEMENTS - (continued)
                                   (Unaudited)


(3)  INCOME TAXES

          The provision (benefit) for income taxes consists of the following (in
thousands):

                                                  Three Months Ended
                                         -------------------------------------
                                         February 29, 2000   February 28, 1999
                                         -----------------   -----------------
Current:
          Federal                             $    1               $    8
          State                                    5                   12
                                               -----                -----
                                                   6                   20
                                               -----                -----

Deferred:
          Federal                               (226)                  (9)
          Use of loss carryforwards                -                    6
          State                                   (9)                   -
                                               -----                -----
                                                (235)                  (3)
                                               -----                -----

  Total income tax (benefit) expense          $ (229)              $   17
                                               =====                =====

          During the three months of fiscal 2000,  certain tax assets  (shown in
the  table  below)  were  utilized.  The tax  effect  of  significant  temporary
differences  representing  deferred tax assets and  liabilities and changes were
estimated as follows (in thousands):
<TABLE>
<CAPTION>

                                                                          Current Year
                                                                     --------------------------
                                                      December 1,    Operations/   February 29,
                                                          1999          Other          2000
                                                        --------        -----         -----
     <S>                                                <C>          <C>             <C>
     Deferred tax assets:
       Pre-1987 loss carryforwards                      $  440       $     -         $  440
       Post-1987 loss carryforward                         617             -            617
       Percentage depletion
         carryforwards                                   1,650             -          1,650
       State income tax loss
         carryforwards                                     124             -            124
       Other                                               387             6            393
                                                       -------        ------         ------
                 Total                                   3,218             6          3,224
          Valuation allowance
            (long-term)                                 (1,286)            -         (1,286)
                                                        ------        ------         ------
          Deferred tax assets                            1,932             6          1,938
                                                       -------        ------         ------

     Deferred tax liabilities-
       Depreciation, depletion and
         amortization and other                           (795)          229           (566)
                                                       -------        ------         ------
         Net tax asset (liability)                     $ 1,137       $   235        $ 1,372
                                                       =======       =======        =======
</TABLE>



                                       10
<PAGE>


                              COLUMBUS ENERGY CORP.

                 NOTES TO THE FINANCIAL STATEMENTS - (continued)
                                   (Unaudited)


(4)  LITIGATION

     On October 7, 1998,  Columbus  was  served  with a  complaint  in a lawsuit
styled Maris E. Penn,  Michael  Mattalino,  Bruce Davis, and Benjamin T. Willey,
Jr. vs. Columbus Energy Corp.,  Cause No. 98-44940 in the 55th District Court of
Harris County,  Texas. The plaintiffs are parties to a September 1994 settlement
agreement  that provided for the conveyance of overriding  royalty  interests in
leases  acquired by Columbus in certain  portions of Harris  County.  Plaintiffs
claim Columbus is obligated under the settlement agreement to acquire all leases
available  within a described  portion of Harris  County and that  Columbus  has
failed to develop those leases as a reasonably prudent operator.  Plaintiffs are
claiming  damages  based upon their  alleged  right to a 3%  overriding  royalty
interest in leases taken and drilled by third parties within the described area.
Discovery is ongoing.  Columbus denies all allegations of failure to develop and
instructed  counsel to  vigorously  defend  this  lawsuit.  The  parties met for
mediation  on April 11,  2000 with no  resolution.  The trial is set for May 22,
2000.

(5)     COMMITMENTS AND CONTINGENT LIABILITIES

        The Company's  natural gas and crude oil swaps are considered  financial
instruments  with  off-balance  sheet risk which are entered  into in the normal
course of business to partially reduce its exposure to fluctuations in the price
of crude oil and natural gas. Those  instruments  involved,  to varying degrees,
elements  of market and credit  risk in excess of the amount  recognized  in the
balance sheets.

        The  Company's  crude oil hedge  outstanding  as of  February  29,  2000
consists of a costless  "collar"  for 7,500  barrels per month for the 12 months
from September 1, 1999 through August 31, 2000. This "collar" is settled monthly
against the calendar monthly average price on the NYMEX with a $17.50 per barrel
floor and $22.25 per barrel ceiling.  For any average price below or above those
prices Columbus  receives or pays the difference  which increases or reduces oil
revenues each month in which this occurs.  During the first quarter of 2000, oil
sales would have been $117,000 higher had this hedge not been in place since oil
prices  exceeded the $22.25  ceiling  price for each month.  During the month of
March 2000,  oil sales were reduced by $57,000  because of the hedge.  If during
the remaining  period of April through August 2000 NYMEX prices equal the prices
quoted  as of  March  31,  2000 as an  average  for each of  those  months,  the
settlement  value would be $141,000 and would further  reduce crude oil sales by
such an amount.


                                       11
<PAGE>

                              COLUMBUS ENERGY CORP.

                 NOTES TO THE FINANCIAL STATEMENTS - (continued)
                                   (Unaudited)


        Two of the Company's  working  interest  owners in the Long #4 well near
Beeville,  Texas initially  refused to pay for all of their 25% working interest
participation after paying $90,000 of approximately  $300,000 for their share of
drilling  costs by claiming  imprudent  conduct of operations  subsequent to the
well being determined to be a dry hole. During March 2000, those two owners paid
the amounts due under  protest  after the Company had filed liens  against their
interests.  One of the  working  interest  owners,  who also is the  lessor  and
royalty  owner,  has since  notified the Company that there has been a breach of
lease obligations and that he apparently plans to file suit against Columbus. In
the Company's opinion, such claims of a breach are unfounded and without merit.

        The  Company  is  not  aware  of  any  events  of  noncompliance  in its
operations  with  environmental  laws  and  regulations  nor of any  potentially
material  contingencies  related  to  environmental  issues.  There  is  no  way
management can predict what future environmental control problems may arise. The
continually  changing  character of  environmental  regulations and requirements
that might be enacted by jurisdictional authorities in various operational areas
defies forecasting.

(6)     RELATED PARTY TRANSACTIONS

        CEC  Resources  Ltd.  ("Resources")  was a  wholly-owned  subsidiary  of
Columbus prior to its divestiture on February 24, 1995.  Reimbursement  was made
by Resources to Columbus for services provided by its officers and employees for
managing  Resources in the past which effectively  reduced Columbus' general and
administrative expense. Such reimbursement totaled $22,000 for the first quarter
of 1999. On March 31, 1999,  the agreement was  terminated  pursuant to a 90 day
notice period.

        The  Company  has  been a party  to an  arrangement  with  Mark  Butler,
geologist and 50% owner of Trumark  Production  Company  ("TPC"),  during fiscal
1999 and 2000 whereby Mr. Butler would provide  Columbus with 70 hours per month
of  geological  and  geophysical  consulting  services  (including  related work
station usage) at a rate of $170 per hour. John B.  Trueblood,  son of Columbus'
CEO Harry A.  Trueblood,  Jr., owns the other 50% of TPC. The retainer fees paid
to  TPC  were  $50,000  and  $36,000   during  first   quarter  2000  and  1999,
respectively.


                                       12
<PAGE>

                              COLUMBUS ENERGY CORP.

                 NOTES TO THE FINANCIAL STATEMENTS - (continued)
                                   (Unaudited)


(7)     EARNINGS PER SHARE

        The  following  table  provides a  reconciliation  of basic and  diluted
earnings per share (EPS):
<TABLE>
<CAPTION>

                                                                   Three Months Ended
                                                       ---------------------------------------------
                                                       February 29, 2000           February 28, 1999
                                                       -----------------           -----------------
                                                           (in thousands, except per share data)
<S>                                                          <C>                         <C>
Reconciliation of basic and diluted
  EPS share computations:
  Income (loss) available to common
    shareholders - basic and
    diluted EPS (numerator)                                  $  (444)                    $    28
                                                              ======                       =====

Shares (denominator):
  Basic EPS                                                    3,773                       4,009
  Effect of dilutive option shares                                 -                          30
                                                              ------                       -----
  Diluted EPS                                                  3,773                       4,039
                                                              ======                       =====

Per share amount:
  Basic EPS                                                  $  (.12)                     $  .01
                                                              ======                       =====
  Diluted EPS                                                $  (.12)                     $  .01
                                                              ======                       =====

Number of shares not included in dilutive EPS that
  would have been  antidilutive because exercise
  price of options was greater than the average market
  price of the common shares                                     646                         325
                                                              ======                       =====

</TABLE>




                                       13
<PAGE>

                              COLUMBUS ENERGY CORP.

                 NOTES TO THE FINANCIAL STATEMENTS - (continued)
                                   (Unaudited)


(8)     INDUSTRY SEGMENTS

        The Company operates  primarily in two business  segments of (1) oil and
gas  exploration  and  development,  and (2) providing  services as an operator,
manager and gas marketing advisor.

        Summarized financial information  concerning the business segments is as
follows:

<TABLE>
<CAPTION>
                                                                    Three Months Ended
                                                   ----------------------------------------------------
                                                   February 29, 2000                  February 28, 1999
                                                   -----------------                  -----------------
                                                                      (in thousands)
<S>                                                       <C>                               <C>
Operating revenues from unaffiliated services:
    Oil and gas                                           $ 2,743                           $ 2,058
    Services                                                  400                               338
                                                          -------                           -------
         Total                                            $ 3,143                           $ 2,396
                                                          =======                           =======
Depreciation, depletion
  and amortization:
    Oil and gas                                           $   735                           $   875
    Services                                                   16                                15
                                                          -------                           -------
         Total                                            $   751                           $   890
                                                          =======                           =======
Operating income (loss):
    Oil and gas                                           $  (234)                          $   398
    Services                                                   (4)                               68
    General corporate
         expense                                             (328)                             (336)
                                                          -------                           -------
      Total operating income                                 (566)                              130
Interest expense and other                                   (107)                              (85)
                                                          -------                           -------
  Earnings (loss) before
    income taxes                                          $  (673)                          $    45
                                                          =======                           =======

</TABLE>


                                       14
<PAGE>

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

          The following summarizes the Company's financial condition and results
of operations and should be read in conjunction with the consolidated  financial
statements and related notes.

Liquidity and Capital Resources

          As previously  announced,  the Directors have selected Arthur Andersen
LLP's Global Energy Corporate  Finance team to assist them in exploring  various
strategic  alternatives that could maximize  shareholder value. While management
had  previously  indicated  that  several  major  shareholders  had  expressed a
preference  for a tax free  swap  versus a cash  sale,  the  Board of  Directors
proposes to consider all offers submitted following an appropriate review by its
financial  advisors.  Meantime,  the  advisory  team  has  prepared  a  detailed
informational report about Columbus' assets as well as its field, administrative
and technical  personnel which will be available for interested parties who sign
a  confidentiality  agreement  and submit an  indication  of their  interest  in
pursuing an acquisition.  It is believed this procedure will  eventually  narrow
prospective  suitors to a manageable  number  following  discussions and intense
screening of such proposals by the financial advisors. An initial target date is
early summer for  completing  negotiations  that might lead to a sale or merger.
Completion of a transaction by early fall, while desirable, is certainly not set
in  concrete  and  there  is no  assurance  that a  satisfactory  offer  will be
forthcoming  from  this  undertaking.  Based on the  current  activity  level of
mergers  and  acquisitions  in  the  domestic  energy  industry,  management  is
optimistic  that  a  deal  can  be  consummated  which  shareholders  will  find
satisfactory.

          During  first  quarter of 2000,  oil and gas sales  were  considerably
improved over 1999 as natural gas prices were strong and crude oil prices surged
to near record levels. The Company's natural gas prices averaged 34% higher than
1999's first  quarter and crude oil prices were 126%  higher.  These prices were
partially  offset by declines in natural gas  production and the crude oil hedge
which reduced the full effect of increased oil and gas sales. First quarter 2000
had substantially  higher exploration  expenses of $1,412,000 which, after being
tax effected,  reduced earnings by $932,000, or $.25 per share. This generated a
net loss for the first  quarter 2000 of $444,000,  or $0.12 per share,  compared
with last year's first quarter net earnings of $28,000, or $0.01 per share.

          As of  February  29,  2000,  stockholders'  equity  had  decreased  to
$12,085,000  from $12,798,000 at November 30, 1999 primarily the result of those
exploration charges along with a repurchase of 54,000 treasury shares.


                                       15
<PAGE>

          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                    AND RESULTS OF OPERATIONS - (Continued)


          Positive working capital combined with the Company's  anticipated cash
flow for the  remainder of the year is expected to provide more than  sufficient
funds for the fiscal 2000 capital expenditure program. The unused portion of the
$10,000,000  bank credit facility has previously been targeted by management for
acquisitions of oil and gas properties,  but can be used for any legal corporate
purpose and also would be available should unforeseen capital expenditures arise
during the remainder of 2000 as a result of drilling successes.

          Generally accepted  accounting  principles ("GAAP") require cash flows
from  operating  activities  to be  determined  after  giving  effect to working
capital changes. Accordingly, GAAP's net cash provided from operating activities
can fluctuate widely. Net cash used by operating activities was $341,000 for the
first three months of 2000,  which compares with $616,000  provided by operating
activities  for the same period last year.  The current  quarter's  GAAP defined
operating  cash flow was  adversely  affected by the  unusually  large  expenses
attributed to exploratory dry holes near Beeville, Texas.

          As  regularly  noted  in  prior  reports,  management  places  greater
reliance upon an important  alternative  method of computing  cash flow which is
generally  known as  Discretionary  Cash Flow ("DCF").  DCF is not in accordance
with GAAP but is commonly  used in the industry as this method  calculates  cash
flow before working capital  changes or deduction of exploration  expenses since
the latter can be  increased or decreased  at  management's  discretion.  DCF is
often used by  successful  efforts  companies to compare their cash flow results
with those independent  energy companies who use the full cost accounting method
whereby  exploration  expenses are capitalized and do not immediately  adversely
affect either  operating cash flow or net earnings.  Columbus' DCF for the first
quarter of fiscal 2000 was  $1,506,000 up 42% from 1999's  quarter of $1,064,000
when more shares were  outstanding.  DCF is calculated  without debt  retirement
being considered but in Columbus' case this does not matter as current bank debt
requires no principal payments before August 1, 2001. Interest expense is always
deducted before arriving at DCF.

          Management  notes in each of its public filings and reports its strong
exception  to the  Statement  of  Financial  Accounting  Standards  No. 95 as it
applies  to  Columbus  which  directs  that  operating  cash  flow  must only be
determined after  consideration of working capital changes.  Management believes
such a  requirement  by GAAP ignores  entirely the  significant  impact that the
timing of income received


                                       16
<PAGE>

          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                    AND RESULTS OF OPERATIONS - (Continued)


for, and expenses  incurred on behalf of, third party owners in  properties  may
have on working capital.  This is particularly  significant  where Columbus owns
only a small working interest but is the operator.

          Neither DCF nor operating cash flow before working  capital changes is
allowed to be substituted  for net income or for cash available from  operations
as defined by GAAP. Furthermore, currently reported cash flows, however defined,
are not  necessarily  indicative  that  there will be  sufficient  funds for all
future cash requirements. For both the first quarters of 2000 and 1999 GAAP cash
flow was lower than DCF.

          As previously  indicated,  the Company  partially hedged its crude oil
prices  while the  Company's  natural gas  revenues  are fully  exposed to price
fluctuations. The remaining portion of its crude oil revenues might be subjected
to the very low prices such as existed  during fiscal 1998 and 1999's first half
although thus far in fiscal 2000 it appears such a risk is minimal.

          The Company's natural gas and crude oil swaps are considered financial
instruments  with  off-balance  sheet risk which are entered  into in the normal
course of business to partially reduce its exposure to fluctuations in the price
of crude oil and natural gas. Those  instruments  involved,  to varying degrees,
elements  of market and credit  risk in excess of the amount  recognized  in the
balance sheets.

          The  Company's  crude oil hedge  outstanding  as of February  29, 2000
consists of a costless  "collar"  for 7,500  barrels per month for the 12 months
from  September  1, 1999  through  August  31,  2000.  This  hedge is more fully
described in Note 5, "Commitments and Contingent  Liabilities",  in the Notes of
the Financial statements.

          Columbus had outstanding  bank borrowings of $5,700,000 as of February
29, 2000 against its $10,000,000  line of credit with Norwest Bank Denver,  N.A.
which is  collateralized  by its oil and gas properties.  On that same date, the
ratio of net  long-term  debt (debt less  working  capital) to total  assets was
0.21. The outstanding  debt used a LIBOR option with an average interest rate of
7.4%.  Subsequent  to the end of the first  quarter and through the date of this
report,  long-term  debt has been  reduced by  $300,000.  The net  increase  (or
decrease)  in  long-term  debt  directly   affects  cash  flows  from  financing
activities as do the purchase of treasury  shares.  For the  Company's  floating
rate debt,  interest rate changes  generally do not affect its fair market value
but does impact future  results of  operations  and cash flows,  assuming  other
factors remain constant.  The carrying amount of the Company's debt approximates
its fair value.


                                       17
<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (Continued)


          Working  capital at February 29, 2000 remained  positive at $1,305,000
up from  $1,169,000  at November 30, 1999.  This  increase was achieved  despite
$146,000 spent for additions to oil and gas properties,  a significant  increase
in exploration expenditures along with the purchase of 54,000 shares of treasury
stock for $307,000 during the first quarter.

          The Company has been  authorized by its Board of Directors  during the
last several  years to  repurchase  its common shares from the market at various
"not to exceed" price  levels.  As of February 29, 2000 a total of 69,384 shares
remained to be  purchased  from the most  recent  authorizations  to  repurchase
shares at a price not to exceed  $6.00 per  share.  A total of 9,000  additional
shares  have been  acquired  subsequent  to the end of the quarter at an average
price of $5.63 per share.

          During first quarter 2000, capital expenditures  actually incurred for
oil and gas  properties  totaled  $146,000  (amount  excludes  $1.4  million for
exploratory dry holes and other exploration  expenses) which amount differs from
the capital  expenditure shown in the Consolidated  Statement of Cash Flows. The
latter also  includes  cash  payments  made  during  2000 for 1999  expenditures
incurred  but  not  yet  paid as of  1999's  year  end.  Similarly,  there  were
expenditures  accrued  during fiscal 2000's first quarter that were not actually
paid until subsequent to the end of the quarter.


                                       18
<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (Continued)


RESULTS OF OPERATIONS

          Gross revenues  increased by 31% over last year's period but operating
income showed a loss of $566,000  primarily because of an exploration  charge of
$1,412,000  whereas  there was  income of  $130,000  in 1999  with  $119,000  of
exploration expense.  Other comparisons for the 2000 quarter versus 1999 related
to prices, production and oil and gas sales appear in tabular form below.

          During  2000's  first  quarter  four  gross  wells  (1.94 net WI) were
drilled.  These included one (.04 net WI) gas  development  well in Webb County,
Texas, and two (1.85 net WI) wildcat wells located in the El Squared prospect in
Bee County,  Texas which were  abandoned.  One development gas well (.05 net WI)
which was actually  drilled during 1999 and was in progress at the 1999 year end
in the Laredo, Texas operational area was plugged and abandoned during the first
quarter.

     Oil and Gas Revenues and Operating Costs

          The  following  table  shows  comparative  crude oil and  natural  gas
revenues,  sales  volumes,  average prices and  percentage  changes  between the
periods presented as follows:

                                           First Quarter
                                 ---------------------------------
                                  2000         1999         Change
                                 ------       ------        ------
Natural gas revenues M$          $1,775       $1,640          8 %

Oil revenue M$                   $  965       $  393        146 %
Natural gas sales volumes:
  Millions of cubic feet (MMCF)     707          876        (19)%
  MCF/day                         7,765        9,738

Oil sales volumes:
  Barrels                        41,263       37,945          9 %
  Barrels/day                       453          422

Average price received:
  Natural gas - $/MCF            $ 2.51       $ 1.87         34 %
  Oil - $/BBL                    $23.40       $10.35        126 %


                                       19
<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (Continued)


          Natural gas revenues  increased only 8% in 2000's first quarter versus
1999's  because 34% higher prices were  significantly  offset by 19% lower sales
volumes.  Average gas prices  improved  from a fairly  depressed  level for 1999
prices which resulted from a warm winter and a high level of storage  inventory.
Last summer's  strong demand for cooling load and storage  refill  combined with
lower supply contributed to improved gas prices.  Comparable quarters showed 19%
lower sales volumes in 2000 as a result of normal production declines not offset
by newly  completed  development  wells  production  since these were limited in
number or from any exploratory well successes.

          Oil  revenues  for  2000's  first  quarter  rose by 146% over the 1999
quarter  because  average  prices rose by 126% and sales volumes were 9% higher.
Generally, oil production had declined steadily in prior years commensurate with
a lack of development  drilling  activity due to the  uncertainty of oil prices.
However, one exploratory oil well in Harris County, Texas, drilled during fiscal
1998, was connected to a gas line and commenced flowing 200 barrels per day with
associated gas during June 1999.  Columbus owns a 19.5% working interest.  Crude
oil prices  continued  to move  upwards due to strong  demand and a  restrictive
production  program adhered to by OPEC. This was recently loosened by that group
with the objective being prices around $25 per barrel worldwide.

          Columbus'  2000 first  quarter  sales  volumes of natural gas averaged
7,765 Mcfd while oil and liquids sales were 461 barrels per day. This equates to
a daily sales volume of 10,528 MCF  equivalent  (Mcfe)  compared to 1999's first
quarter rate of 12,300 Mcfe, a 14% decrease.  This reduction was attributable to
the lack of gas production being  supplemented by new development wells drilled,
as well as a lack of exploratory success at its El Squared prospect.

          Lease operating expenses for the first quarter of 2000 were 29% higher
than in 1999. Most of the increase was in the Williston Basin in Montana and the
Sralla Road field in Texas where  certain  wells had  workover  costs along with
repairs and  replacements of equipment.  Expensive  workovers and replacement of
downhole and surface equipment on older wells is expected to occur  periodically
but several of those older  Williston  Basin wells were  shut-in  during  1999's
first half which accounts for lower costs last year. Lease operating costs on an
Mcfe  basis were $0.57 in the first  quarter of 2000  compared  to $0.38 in 1999
while operating costs as a percentage of revenues were 20% in 2000 versus 21% in
1999 with its lower prices.


                                       20
<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (Continued)


          Production and property taxes approximated 10% of revenues in 2000 and
12% in 1999. These vary based on Texas' percentage share of the total production
where oil tax rates are lower than gas tax rates.  The relationship of taxes and
revenue  is  not  always   directly   proportional   since  most  of  the  local
jurisdiction's  property  taxes in Texas are based upon reserve  evaluations  as
opposed to revenues received or production rates for a given tax period.

          Operating and Management Services

          This segment of the Company's business is comprised of opera tions and
services  conducted  on  behalf  of  third  parties  which  includes  compressor
operations and salt water disposal facilities.

          Operating and  management  services  gross profit was $139,000  during
first quarter 2000 compared to an $85,000 profit in the 1999 comparable  period.
In 1999,  sizable  compressor  repairs  occurred.  Effective  March 1, 2000, the
Company no longer will serve as contract  operator for wells in the Berry R. Cox
field in South Texas,  which  generated  $23,000 of profit  during  2000's first
quarter.

          Interest Income

          Interest income is earned primarily from short-term invest ments whose
rates  fluctuate with changes in the commercial  paper rates and the prime rate.
Interest  income  increased in the first quarter of 2000 to $33,000 from $27,000
in 1999's  first  quarter  as a result of a higher  amount  of  investments  and
short-term interest rates.

          General and Administrative Expenses

          General and  administrative  expenses are considered to be those which
relate to the direct costs of the Company which do not originate  from operation
of properties  or providing of services.  Corporate  expense  represents a major
part of this category.

          The  Company's  general  and  administrative  expenses  for the  first
quarter of 2000 were 2% less than last year  despite  the  previously  disclosed
total phase out of  reimbursement  for management  services  provided  Resources
during 1999's first quarter of $22,000.  Salary increases were granted effective
December 1, 1999 for  non-officer  employees  while  officer  salaries  remained
unchanged  from May 1998.  However,  officer  and  directors'  expense was lower
because there was one less officer and one less director


                                       21
<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (Continued)


for the latest  quarter.  Medical claims under the Company's  self- insured plan
were lower for 2000's  first  quarter  while  office rent was higher but will be
reduced in future as a result of a sublease of a portion of the leased space.

     Depreciation, Depletion and Amortization

     Depreciation,  depletion  and  amortization  of  oil  and  gas  assets  are
calculated  based upon the units of production for the period compared to proved
reserves of each  successful  efforts  property  pool.  This expense is not only
directly  related to the level of  production,  but is also  dependent upon past
costs to find,  develop,  and recover related reserves in each of the cost pools
or fields.  Depreciation  and  amortization  of office  equipment  and  computer
software is also included in the total charge.

          Charges for this expense  item  decreased  from 1999's  first  quarter
commensurate  with  decreased  production  even  though  there  were  additional
development  expenditures  incurred in the  intervening  period.  Reduced proved
reserves last year which  resulted from lower crude oil prices were  responsible
for a higher depletion rate in 1999's quarter for some  properties,  but because
production  was  curtailed  the rise in overall  depletion  expense for 1999 was
somewhat reduced.  Despite the depreciation  expense being lower in 2000's first
quarter, the depletion rate of $.76 per Mcfe was identical to 1999's like period
rate.

     Exploration Expense

          In general,  the  exploration  expense  category  includes the cost of
Company-wide   efforts  to  acquire  and  explore  new  prospective  areas.  The
successful  efforts  method of accounting  for oil and gas  properties  requires
expensing  the costs of  unsuccessful  exploratory  wells  including  associated
leaseholds.  Other  exploratory  charges such as seismic and geologic costs must
also be  immediately  expensed  regardless  of whether a prospect is  ultimately
proved to be  successful.  All such  exploration  charges not only  decrease net
earnings but also reduce  reported  GAAP cash flow from  operations  even though
they are  discretionary  expenses;  however,  such  charges  are added  back for
purposes  of  determining  DCF  which is why it more  nearly  tracks  cash  flow
reported by full cost accounting companies which capitalize such costs.


                                       22
<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (Continued)


          Exploration  charges of $1,412,000 for 2000 were up significantly over
1999's $119,000.  Costs for the first quarter included $476,000 to sidetrack the
Long #3 which was under way over the expiration of the primary term of the lease
but had its  operations  ceased  when it was  learned  that the Long #4 well had
failed to find commercial  natural gas reserves in the upper Massive zone of the
middle Wilcox.  For the Long #4 well, its dry hole costs totaled $805,000 during
the quarter. An additional $60,000 was accrued in the quarter for abandonment of
the Long #3 and #4 wells.  During  1999's  quarter,  $47,000  was  expensed  for
undeveloped leases in Texas as a result of an offset dry hole being drilled.

          Whenever a company using the  successful  efforts method of accounting
is involved in an exploratory program which represents a significant part of its
budget,  that  company  is  automatically  subjected  to the  risk  that its net
earnings for any given  quarter or year will be impacted  negatively  by wildcat
dry holes. The numerous  exploratory well bores involved at Columbus' El Squared
prospect  that have already been or required to be drilled to properly  evaluate
the various fault blocks and/or potential  producing horizons certainly fit that
circumstance.  Shareholders have been forewarned that net earnings and GAAP cash
flow may not be truly indicative of the Company's operational activity.  This is
why  management  has  suggested  that  shareholders  may wish to follow  its own
program of placing  more  emphasis  on DCF from  period to period and ignore net
earnings  results.  Comparing  EGY's  results with net earnings or cash flows of
other companies who use the full cost  accounting  method is unrealistic and ill
advised since they capitalize exploratory costs.

          Impairments

          No impairment loss was necessary for either of the first quarters. The
price  recovery  of both  natural gas and crude oil has  further  increased  the
current fair market value of reserves  above  remaining  book value of each cost
pool.

          Litigation Expense

          The  litigation  expense  relates to the Maris E. Penn,  et al lawsuit
described in Note 4 of the Notes to the Financial Statements.


                                       23
<PAGE>

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                     AND RESULTS OF OPERATIONS - (Continued)


          Interest Expense

         Interest expense varies in direct proportion to the amount of bank debt
and the level of bank interest rates. The average level of bank debt outstanding
has been higher during the 2000 quarter than in 1999.  The average bank interest
rate paid this latest quarter was 7.5% which compares to 6.7% in 1999.

          Income Taxes

          During the first quarter of 2000, the net deferred tax asset increased
to  $1,372,000.  The  asset is  comprised  of a  $160,000  current  portion  and
$1,212,000  long-term asset.  The estimated  increase in deferred tax assets was
$235,000  during  the  first  quarter.  The  valuation  allowance  has  remained
unchanged  thus far in 2000.  The effective tax rate for 2000 is 34%. See Note 3
to the  consolidated  financial  statements  for further  explanation  of income
taxes.

          Statement Pursuant to Safe Harbor Provision of the Private
          Securities Litigation Reform Act of 1995

          This report may contain certain "forward-looking statements" that have
been based on imprecise  assumptions  with regard to  production  levels,  price
realizations,  and  expenditures for exploration and development and anticipated
results  therefrom.  Such statements are subject to risks and uncertainties that
could cause actual results to differ  materially from those expressed  herein or
implied by such statements.


                                       24
<PAGE>

                           PART II - OTHER INFORMATION


Item 1.  LEGAL PROCEEDINGS

          Management  is  unaware  of  any  asserted  or  unasserted  claims  or
assessments  against the Company  which would  materially  affect the  Company's
future financial position or results of operations. See Notes (4) and (5) of the
Notes to the Financial Statements regarding the Maris E. Penn, et al lawsuit and
alleged breach of lease obligation.

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

              (a)    Exhibits

                     27 - Financial data schedule - February 29, 2000.

             (b)     Reports on Form 8-K

                     Report  filed on March 1,  2000  related  to press
                     release dated February 23, 2000.


                                       25
<PAGE>

                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                       COLUMBUS ENERGY CORP.
                                                           (Registrant)

DATE:    April 13, 2000                            /s/ Harry A. Trueblood, Jr.
     -----------------------------                 ---------------------------
                                                   Harry A. Trueblood, Jr.
                                                   Chairman, President and
                                                   Chief Executive Officer
                                                   (a duly authorized officer)



DATE:    April 13, 2000                            /s/ Ronald H. Beck
     -----------------------------                 ------------------
                                                   Ronald H. Beck
                                                   Vice President
                                                   (Chief Accounting Officer)









                                       26