================================================================================

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

                                    FORM 10-K

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

                   FOR THE FISCAL YEAR ENDED DECEMBER 31, 2001
                                       OR
            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                             SECURITIES ACT OF 1934


         FOR THE TRANSITION PERIOD FROM _____________ TO ______________


                         COMMISSION FILE NUMBER 1-4673


                          WILSHIRE OIL COMPANY OF TEXAS
             ------------------------------------------------------
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


           DELAWARE                                        84-0513668
--------------------------------                      ---------------------
(STATE OR OTHER JURISDICTION OF                        (I.R.S. EMPLOYER
 INCORPORATION OR ORGANIZATION                        IDENTIFICATION NUMBER


          921 BERGEN AVENUE
      JERSEY CITY, NEW JERSEY`                                07306
----------------------------------------               ---------------------
(Address of principal executive offices)                    (Zip Code)


REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:  (201)  420-2796
                                                     ---------------

SECURITIES REGISTERED PURSUANT TO SECTION 12 (b) OF THE ACT:

                                                Name of each exchange
          (Title of each class)                  On which registered
          ---------------------                 ---------------------
      COMMON STOCK, $1 PAR VALUE                 AMERICAN  STOCK EXCHANGE


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 AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR
THE PAST 90 DAYS. YES  X   NO
                      ---      ---

INDICATE BY CHECK MARK IF DISCLOSURE OF DELINQUENT FILERS PURSUANT TO ITEM 405
OF REGULATION S-K IS NOT CONTAINED HEREIN, AND WILL NOT BE CONTAINED, TO THE
BEST OF REGISTRANT'S KNOWLEDGE, IN DEFINITIVE PROXY OR INFORMATION STATEMENTS
INCORPORATED BY REFERENCE IN PART III OF THIS FORM 10-K OR ANY AMENDMENT TO THIS
FORM 10-K. [ ]

THE AGGREGATE MARKET VALUE OF THE SHARES OF THE VOTING STOCK HELD BY
NON-AFFILIATES OF THE REGISTRANT WAS APPROXIMATELY $25,475,619 BASED UPON THE
CLOSING SALE PRICE OF THE STOCK, WHICH WAS $3.41 ON MARCH 15, 2002.

THE NUMBER OF SHARES OF THE REGISTRANT'S $1 PAR VALUE COMMON STOCK OUTSTANDING
AS OF MARCH 15, 2002 WAS 7,880,888.

                       DOCUMENTS INCORPORATED BY REFERENCE

THE INFORMATION CALLED FOR BY PART III IS INCORPORATED BY REFERENCE TO THE
DEFINITIVE PROXY STATEMENT FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD
JUNE 21, 2002.

================================================================================


<PAGE>


                                     PART I

ITEM 1. BUSINESS

                                   BACKGROUND

     Wilshire Oil Company of Texas (the "Company", "Registrant" or "Wilshire")
was incorporated under the laws of the State of Delaware on December 7, 1951.
The Company's principal executive offices are located at 921 Bergen Avenue,
Jersey City, New Jersey 07306, (201) 420-2796.

     The Company is engaged in the exploration and development of oil and gas,
both in its own name and through several wholly-owned subsidiaries in the United
States and Canada. The Company's real estate division owns investment real
estate properties in Arizona, Texas, Florida, Georgia and New Jersey. The
Company also holds investments in certain marketable securities.

     This Report on Form 10-K for the year ended December 31, 2001 contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
projected in such forward-looking statements. Certain factors which could
materially affect such results and the future performance of the Company are
described herein under Item 7., "Management's Discussion and Analysis of
Financial Condition and Results of Operations."

               FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS

     For financial segment information please see Note 9, "Segment Information"
of the "Notes to Consolidated Financial Statements", presented elsewhere herein.
The Company has no export sales or sales to affiliated customers.

                             DESCRIPTION OF BUSINESS

OIL AND GAS OPERATIONS

     For a glossary of oil and gas terms, see "Properties - Oil and Gas
Properties - Glossary."

     The Company conducts its oil and gas operations on the North American
continent. Oil and gas operations in the United States are located in Arkansas,
California, Kansas, Nebraska, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas,
Utah, West Virginia and Wyoming. In Canada, the Company conducts oil and gas
operations in the Provinces of Alberta, British Columbia and Saskatchewan.

     As of March 15, 2002, fifteen people are employed by the Company. Nine
employees are directly engaged in the search for new oil and gas properties. In
addition, the Company also has consultants.

                                        1

<PAGE>

Prospects for lease acquisitions are developed by staff geologists or acquired
from various co-venturers and/or consultants.

     Once a property is acquired, the Company subcontracts for surveying and
drilling operations. Many of the Company's present producing oil and gas
properties are operated by independent contractors or under operating agreements
with other companies pursuant to which the Company pays a proportionate share of
operating expenses based upon its interests. The Company also acts as operator
of various properties, charging joint venture partners for their proportionate
share of expenses.

     The Company does not engage in the refining of crude oil or the
distribution of petroleum products. Crude oil and natural gas productions are
sold to oil refineries and natural gas pipeline companies.

     The Company participated in the drilling of 15 wells (1.5 net) in 2001
compared to 13 (3.1 net) in 2000. The United States program in 2001 consisted of
the drilling of 8 development and 3 exploration wells (.2 net) and (.7 net).
Four of the wells (.7 net) were dry. The Canadian drilling program in 2001
consisted of the drilling of 4 development wells (.6 net), with three of these
wells successfully completed as gas wells. Overall, the Company's drilling
program had a success ratio of 66%.

     The Company's crude oil and condensate production is sold at posted field
prices, primarily to major crude oil and condensate purchasers. For average
posted field prices, for both oil and gas, see "Properties - Oil and Gas
Properties - Production." The Company has no one purchaser that purchased in
excess of 10% of its 2001 consolidated oil and gas revenues.

     The loss of any one customer in the domestic hydrocarbon market is not
considered material. The Company is not dependent on any patent, trademark or
license.

     The Company's oil and gas business is subject to all of the operating risks
normally associated with the exploration for and production of oil and gas. In
accordance with customary industry practices, the Company maintains insurance
coverage limiting financial loss resulting from certain of these operating
hazards.

COMPETITION

     The oil and gas industry is intensely competitive and competes with other
industries in supplying the energy and fuel requirements of industrial,
commercial and individual customers.

     The principal method of competition in the production of oil and gas is the
successful location and acquisition of properties which produce commercially
profitable quantities of oil and gas.

                                        2

<PAGE>

     The Company competes with many other companies in the search for and
acquisition of oil and gas properties and leases for exploration and
development. Many of these companies have substantially greater financial,
technical and other resources than the Company. Competition among petroleum
companies for favorable oil and gas prospects can be expected to continue. The
Company is not a significant factor in the oil and gas industry.

     The principal raw materials and resources necessary for the exploration
for, and the acquisition, development, production and sale of, crude oil and
natural gas are leasehold or freehold prospects under which oil and gas reserves
may be discovered, drilling rigs and related equipment to explore for and
develop such reserves, casing and other capital assets required for the
development and production of the reserves and knowledgeable personnel to
conduct all phases of oil and gas operations. The Company must compete for such
raw materials and resources with both major oil companies and independent
operators and also with other industries for certain personnel and materials.
Although the Company believes its current inventories of raw materials and
resources are adequate to preclude any significant disruption of operations in
the immediate future, the continued availability of such materials and resources
to the Company cannot be assured.

SEASONALITY

     The oil business is generally not seasonal in nature. Gas demand and prices
paid for gas have become seasonal, showing a decrease during the summer and
fall.

ENVIRONMENTAL MATTERS

     The petroleum industry is subject to numerous federal, state and provincial
environmental statutes, regulations and other pollution controls in both the
United States and Canada. In general, the Company is and will continue to be
subject to present and future environmental statutes and regulations.

     The Company's expenses relating to preserving the environment during 2001
were not significant in relation to operating costs and the Company expects no
material changes in 2002. Environmental regulations have had no materially
adverse effect on the Company's petroleum operations to date, but no assurance
can be given that environmental regulations will not, in the future, result in a
curtailment of production or otherwise have materially adverse effects on the
Company's operations or financial condition.

REGULATION - UNITED STATES OPERATIONS

     The Company's operations are affected from time to time, in varying
degrees, by political developments, laws and regulations. In particular, oil and
gas production operations are affected by changes in taxes and other laws
relating to the petroleum industry and by constantly changing administrative
regulations. The long-term effects of all the federal enactments and programs,
whether beneficial or detrimental to the future operations and income of the
Company, cannot be predicted at this time.

                                        3

<PAGE>

     Rates of production of oil and gas have for many years been subject to
conservation laws and regulations. State regulatory agencies set allowable rates
of production and limit the number of days a month a well can produce. The
petroleum industry has also been subject to tax laws dealing specifically with
it, such as the Crude Oil Windfall Profit Tax Act. In addition, oil and gas
operations are subject to extensive regulation or termination by government
authorities on account of ecological and other considerations. All of the
jurisdictions in which the Company operates have statutes and administrative
regulations governing the drilling and production of oil and gas.

REGULATION - CANADIAN OPERATIONS

     The Company's Canadian subsidiary, Wilshire Oil of Canada, Ltd., operates
primarily in the Province of Alberta, with some activity in the Province of
British Columbia and Saskatchewan.

     The petroleum and natural gas industry operates under federal and
provincial legislation and regulations which govern land tenure, royalties,
production rates, environmental protection, exports and other matters. Federal
legislation monitors the price of oil and gas in export trade and the quantities
of such products exportable from Canada. Provincial legislation has been enacted
for the purpose of regulating operations in the Provinces.

OIL PRICES

     Oil prices actually being paid by purchasers in the United States are
publicly announced throughout the country and vary depending on locality and
qualitative specifications of the crude oil.

INVESTMENT IN MARKETABLE SECURITIES

     The Company holds investments in certain marketable securities. From time
to time, the Company buys and sells securities in the open market. The Company
over the years has decreased its holdings in marketable securities and focused
its resources in the oil & gas and real estate divisions.

     Holdings of marketable securities, at market value, amounted to $10,358,000
at December 31, 2001 and $7,166,000 at December 31, 2000. There were no gains
from the sale of marketable securities in 2001. In 2001, the Company recorded a
one-time charge through its statement of income of $1,684,000 to reflect a
decline in the market price of a security it owns, which was determined to be
other than temporary.

                                        4


<PAGE>



REAL ESTATE OPERATIONS

     The Company's real estate operations are conducted, both in its own name
and through several wholly owned subsidiaries, in the states of Arizona, Texas,
Florida, Georgia and New Jersey. They are not seasonal in nature.

     The Company's Arizona properties include the following:

                        378 unit garden apartment complex
                        340 unit garden apartment complex
                       70 unit midrise apartment building
              53,000 sq. ft. multi-tenant two story office building
                    65,000 sq. ft. retail/medical use complex

     The Texas properties includes a 228 and 180 unit apartment complex in San
Antonio.

     The Company's operations in Florida consists of two office buildings having
a combined area of 28,000 square feet and apartment properties having 62 units.

     The Georgia property is a 72 unit apartment complex.

     The Company's properties in New Jersey consists of apartment properties
having 473 units. In addition, the Company holds various commercial/retail
properties, including a 75,000 sq. ft. office building and other undeveloped
investment properties.

     The Company utilizes property management companies to assist in the
management of its properties. Expenses incurred in operating the properties
include, among other things, administrative costs, utilities, repairs and
maintenance and property taxes.

     During the twelve months ended December 31, 2001, the Company sold one
condominium unit and two undeveloped properties in New Jersey and Arizona for a
profit of approximately $1,472,000. In addition, the Company purchased a 180
unit apartment complex in San Antonio, Texas at a cost of $5,250,000. The
purchase was funded by a $980,000 cash down payment and an assumable mortgage of
$4,270,000. Also, the Company purchased three condominium units in existing
properties at a cost of $258,000 and two investment properties in New Jersey for
$2,686,000. The condominium units and the smaller investment property were
funded entirely from operations in the amount of $344,000 and the larger
investment property was acquired by a $1,400,000 cash down payment and purchase
money mortgage in the amount of $1,200,000.

     The Company will explore other real estate acquisitions as they arise. The
timing of any such acquisition will depend on, among other things, economic
conditions and the favorable evaluation of specific opportunities presented to
the Company. The Company is currently planning further acquisitions of
investment properties during the next several months. Accordingly, while the
Company anticipates that it will actively explore these and other real estate
acquisition opportunities, no assurance can be given that any such acquisition
will occur.

     The real estate industry is intensely competitive in nature. The Company
competes with many other real estate operators and is not a significant factor
in the markets it operates in.

                                        5

<PAGE>

     The Company's real estate operations are subject to existing federal and
state laws regarding environmental quality and pollution control. Environmental
regulations had no materially adverse effect on the Company's real estate
operations during 2001, but no assurance can be given that environmental
regulations will not, in the future, have a materially adverse effect on the
Company's operations.

ITEM 1A - EXECUTIVE OFFICERS OF THE REGISTRANT

     The table below sets forth the names and ages of all executive officers of
the Registrant and the position(s) and offices with the Registrant presently
held by each and the periods during which each has served in such position(s)
and offices. There are no "family relationships" as defined in Item 401 (d) of
Regulation S-K between any of these persons and any other executive officer or
director of the Company.

     All executive officers have been elected or appointed to hold office until
their respective successors have been elected or appointed and qualified or
until their earlier resignation or removal.

Executive Officers of Registrant

Name                 Age               Position with Registrant
----                 ---               ------------------------
S. Wilzig Izak       43                Chairman of the Board,
                                       Chief Executive Officer and
                                       Chief Financial Officer

ITEM 2. PROPERTIES

Offices

     The executive and administrative office of the Company consists of
approximately 2,000 square feet, located at 921 Bergen Avenue, Jersey City, New
Jersey. This office is leased at a monthly rental of $2,683.

     The Company maintains its principal office for the United States oil and
gas operations in Oklahoma City, Oklahoma, leasing 3,618 square feet, at a
monthly cost of $2,345. The Company also owns a storage yard of approximately
five acres, situated near Will Rogers Airport in Oklahoma City.

     The Company's Canadian subsidiary maintains an exploration office in
Calgary, Alberta, Canada. The Company leases 1,583 square feet at a monthly
rental of $3,291 Canadian.

                                        6

<PAGE>

OIL AND GAS PROPERTIES

                                    GLOSSARY

     The terms defined in this section are used throughout this report.

     BBL. One stock tank barrel, or 42 U.S. gallons liquid volume, usually used
herein in reference to crude oil or other liquid hydrocarbons.

     BOE. Equivalent barrels of oil in reference to natural gas. Natural gas
equivalents are determined using the ratio of six Mcf of natural gas to one Bbl
of crude oil, condensate or natural gas liquids.

     DEVELOPED ACREAGE. The number of acres which are allocated or assignable to
producing wells or wells capable of production.

     DEVELOPMENT WELL. A well drilled as an additional well to the same
reservoir as other producing wells on a lease, or drilled on an offset Lease not
more than one location away from a well producing from the same reservoir.

     EXPLORATORY WELL. A well drilled in search of a new undiscovered pool of
oil or gas, or to extend the known limits of a field under development.

     GROSS ACRES OR WELLS. The total acres or wells, as the case may be, in
which an entity has an interest, either directly or through an affiliate.

     LEASE. Full or partial interests in an oil and gas lease, oil and gas
mineral rights, fee rights or other rights, authorizing the owner thereof to
drill for, reduce to possession and produce oil and gas upon payment of rentals,
bonuses and/or royalties. Oil and gas leases are generally acquired from private
landowners and federal, provincial and state governments.

     MCF. One thousand cubic feet. Expressed, where gas sales contracts are in
effect, in terms of contractual temperature and pressure bases and, where
contracts are nonexistent, at 60 degrees Fahrenheit and 14.65 pounds per square
inch absolute.

     MMCF. One million cubic feet. Expressed, where gas sales contracts are in
effect, in terms of contractual temperature and pressure bases and, where
contracts are nonexistent, at 60 degrees Fahrenheit and 14.65 pounds per square
inch absolute.

     NET ACRES OR WELLS. A party's interest in acres or a well calculated by
multiplying the number of gross acres or gross wells in which such party has an
interest by the fractional interest of such party in such acres or wells.

     PRODUCTION COSTS. The expenses of producing oil or gas from a formation,
consisting of the costs incurred to operate and maintain wells and related
equipment and facilities, including labor costs, repair and maintenance,
supplies, insurance, production, severance and other production excise taxes.

                                        7

<PAGE>

     PRODUCING PROPERTY. A property (or interest therein) producing oil and gas
in commercial quantities or that is shut-in but capable of producing oil and gas
in commercial quantities, to which Producing Reserves have been assigned by an
independent petroleum engineer. Interests in a property may include working
interests, production payments, royalty interests and other nonworking
interests.

     PRODUCING RESERVES. Proved Developed reserves expected to be produced from
existing completion intervals open for production in existing wells.

     PROSPECT. An area in which a party owns or intends to acquire one or more
oil and gas interests, which is geographically defined on the basis of
geological data and which is reasonably anticipated to contain at least one
reservoir of oil, gas or other hydrocarbons.

     PROVED DEVELOPED RESERVES. Proved Reserves which can be expected to be
recovered through existing wells with existing equipment and operating methods.

     PROVED RESERVES. The estimated quantities of crude oil, natural gas and
other hydrocarbons which, based upon geological and engineering data, are
expected to be produced from known oil and gas reservoirs under existing
economic and operating conditions, and the estimated present value thereof based
upon the prices and costs on the date that the estimate is made and any price
changes provided for by existing conditions.

     PROVED UNDEVELOPED RESERVES. Proved Reserves which can be expected to be
recovered from new wells on undeveloped acreage or from existing wells where a
relatively major expenditure is required for recompletion.

     UNDEVELOPED ACRES. Oil and gas acreage (including, in applicable instances,
rights in one or more horizons which may be penetrated by existing well bores,
but which have not been tested) to which proved reserves have not been assigned
by independent petroleum engineers.

     WORKING INTEREST. The operating interest under a lease which gives the
owner the rights to drill, produce and conduct operating activities on the
property ;and a share of production, subject to all royalty interests and other
burdens and to all costs of exploration, development and operations and all
risks in connection therewith.

                                      * * *

     Following are certain tables and other statistical data concerning the
Company's reserves, production, acreage and other information with regard to the
Company's oil and gas properties and operations.

     For information regarding costs incurred in 2001, please refer to the
"Segment Information" in Note 9 of the Notes to Consolidated Financial
Statements, presented elsewhere herein. For information regarding capitalized
costs relating to oil and gas producing activities, please refer to Note 9 of
the Notes to Consolidated Financial Statements, presented elsewhere herein.

                                        8

<PAGE>

     Future revenues, net of development and production expenditures (Net
Revenues), from estimated production of proved and proved developed reserves,
based on existing economic conditions for each of the next three succeeding
years, are estimated as follows:

                    United States                          Canada
                   (000's Omitted)                     (000's Omitted)
              -----------------------------        -----------------------------
               Proved        Proved                Proved         Proved
              Reserves   Developed Reserves        Reserves   Developed Reserves
              --------   ------------------        --------   ------------------
     2002    $ 1,450         $1,450                 $ 2,835       $ 2,835

     2003    $ 1,247                                $ 4,018       $ 3,528
                             $1,247

     2004    $ 1,117         $1,117                 $ 4,655       $ 3,630

Remainder    $15,135         $7,816                 $75,047       $57,604


RESERVES

     The quantities of natural gas and crude oil Proved and Proved Developed
Reserves presented herein include only those amounts which the Company
reasonably expects to recover in the future from known oil and gas reservoirs
under existing economic and operating conditions. Therefore, Proved and Proved
Developed Reserves are limited to those quantities which are recoverable
commercially at current prices and costs, under existing technology.
Accordingly, any changes in the future oil and gas prices, operating and
development costs, regulations, technology and other factors could significantly
increase or decrease estimates of Proved and Proved Developed Reserves.

     The Company's net Proved and Proved Developed Reserves of oil and gas and
the present values thereof at December 31, 1999 and 2000 and 2001 were estimated
by the independent professional engineering consultants referred to on page 28.
Such estimates were utilized in the preparation of the Company's consolidated
financial statements for the applicable fiscal years and for reporting purposes.

     Set forth below are estimates of the Company's Proved and Proved Developed
Reserves and the present value of estimated future net revenues from such
reserves based upon the standardized measure of discounted future net cash flows
relating to proved oil and gas reserves in accordance with the provisions of
Statement of Financial Accounting Standards No. 69, "Disclosures about Oil and
Gas Producing Activities" (SFAS No. 69). The standardized measure of discounted
future net cash flows is determined by using estimated quantities of Proved
Reserves and the periods in which they are expected to be developed and produced
based on period-end economic conditions. The estimated future production is
priced at period-end prices, except where fixed and determinable price
escalations are provided by contract.

                                        9

<PAGE>

The resulting estimated future cash inflows are reduced further by estimated
future costs to develop and produce reserves based on period-end cost levels. No
deduction has been made for depletion, depreciation or income taxes or for
indirect costs, such as general corporate overhead. Present values were computed
by discounting future net revenues by 10 percent per annum.

     The following table sets forth-summary information with respect to the
estimates of the Company's Proved and Proved Developed Reserves at December 31
of the years indicated:

<TABLE>
<CAPTION>

                                          United States                  Canada
                                     ----------------------        ---------------------
                                                  Proved                        Proved
                                     Proved       Developed        Proved      Developed
                                     ------       ---------        ------      ---------
                                         (000's  Omitted)             (000's  Omitted)
<S>                                  <C>           <C>            <C>           <C>
2001  Oil               (Bbls)         1,122           396             786          464
      Gas               (Mcf)          6,976         6,976          31,832       25,912
      Net present value @ 10%        $11,724       $ 6,624        $ 33,590      $25,493

2000   Oil              (Bbls)         1,268           482             870          552
       Gas              (Mcf)          9,592         9,592          28,900       23,075
       Net present value @ 10%       $28,582       $16,938        $115,744      $91,627

1999   Oil              (Bbls)         1,428           446             939          615
       Gas              (Mcf)          8,791         8,791          36,578       30,419
       Net present value @ 10%       $19,976       $ 9,584        $ 33,029      $26,153

</TABLE>


     The determination of oil and gas reserves is a complex and interpretive
process, which is subject to continued revisions as additional information
becomes available. Reserve estimates prepared by different engineers from the
same data can vary widely. Therefore, the reserve data presented herein should
not be construed as being exact. Any reserve estimate, especially when based
upon volummetric calculations, depends in part on the quality of available data,
engineering and geologic interpretation and judgment, and thus, represents only
an informed professional judgment. Subsequent reservoir performance may justify
upward or downward revision of the estimate.

     No Proved or Proved Developed Reserve estimates for oil and gas were filed
with or included in reports to any other federal or foreign governmental
authority or agency since the beginning of fiscal 2001 other than with the
Securities and Exchange Commission.

                                       10

<PAGE>

PRODUCTION WELLS

     The following tabulations indicate the number of productive wells (gross
and net) as of December 31, 2001:

                         Gas                 Oil              Developed Acreage
                    -------------        ------------        -------------------
                    Gross     Net        Gross     Net        Gross       Net
                    -----    ----        -----     ---       -------    --------
United States        551     73.3         293      59.8        48,723    19,228
Canada               326     69.4          26       3.6       168,540    26,909


PRODUCTION

     The following table shows the Company's net production in barrels ("Bbls")
of crude oil and in thousands of cubic feet ("Mcf") of natural gas (computed
after deducting all outstanding interests, including basic royalties and
overriding royalties) for the past three years (note - all $ dollar amounts
presented are in U.S. dollars).

              Oil and Condensate (Bbls)                  Gas (Mcf)
           -------------------------------        -----------------------------
           United States            Canada        United States        Canada
           -------------           -------        -------------       ---------
2001          56,000               53,000           1,437,000         750,000
2000          62,000               35,000             957,000         833,000
1999          68,000               46,000           1,048,000         921,000


     Average sales price per unit of oil or gas produced:

                      Oil                                Gas
            -----------------------            --------------------------
               U.S.        Canada               U.S.             Canada
            ---------      --------            -------          ---------
2001        $  22.82       $ 19.01             $  2.26          $   3.67
2000        $  25.69       $ 24.66             $  3.07          $   3.00
1999        $  16.61       $ 12.49             $  1.82          $   1.70


     Production as shown in the table, which is net after royalty interests due
others, is determined by multiplying the gross production volume of properties
in which the Company has an interest by the percentage of the leasehold or other
property interest owned by the Company.

     The relative energy content of oil and gas (six Mcf of gas equals one
barrel of oil) was used to obtain a conversion factor to convert natural gas
production into equivalent barrels of oils.

                                       11

<PAGE>

     There are no agreements with foreign governments.

Average Production Cost Per Equivalent Barrel
of Oil in the United States and Canada:
----------------------------------------

                                    2001             2000               1999
                                    ----             ----              -----
          United States             $6.25            $7.75             $6.31
          Canada                    $3.57            $4.09             $3.20

     Unit cost is computed on equivalent barrels of oil equating gas to oil
based on BTU content. This method is appropriate for the Registrant since
several properties produce both oil and gas and production costs are not
segregated.

     The components of production costs may vary substantially among wells
depending on the methods of recovery employed and other factors, but generally
include severance taxes, administrative overhead, maintenance and repair, labor
and utilities.

OIL AND GAS LEASES

     The following tabulation indicates the undeveloped acreage leased by the
Registrant as of December 31 of the years indicated:

                               2001                               2000
                      -----------------------              ------------------
                          Undeveloped Acres                Undeveloped Acres
                      -----------------------              ------------------
                       Gross             Net                Gross        Net
                      ------            -----              -------      -----
United States         18,115            4,913               17,930      5,186
Canada                21,768            3,784               21,128      3,592


     A "gross" acre is an acre in which the Company owns a working interest. A
"net" acre is deemed to exist when the sum of the fractional working interests
owned by the Company in gross acres equals one.

                                       12

<PAGE>

DRILLING

     The following table sets forth the results of the Registrant's drilling
programs for the years covered:

                 Exploratory Wells                   Development Wells
        -------------------------------    -------------------------------------
         Net Productive       Net Dry       Net Productive          Net Dry
        ---------------    ------------    ----------------      ---------------
        U.S.   Canada      U.S.  Canada    U.S.      Canada       U.S.   Canada
        ----   --------    ----  ------    -----     ------      -----   -------
2001     --      --        .7      --       .2         .3          --       .3
2000     --      --        --      --      0.5        2.6          --       --
1999     --      --       1.5      --       --        3.9          --       --
1998     --      --        --      --      0.6        6.0         1.5       --
1997     --      --        --      --      0.4        4.9          --       --

     A dry hole is an exploratory or development well which is found to be
incapable of producing oil or gas in sufficient quantities to justify
completion. A productive well is an exploratory or development well that is
capable of commercial production. The number of wells drilled refers to the
number of wells completed during the fiscal year, regardless of when drilling
was initiated.

REAL ESTATE PROPERTIES

     The following table sets forth the location and general character of the
principal physical properties owned by the Company as part of its real estate
operations. Most of the properties are subject to mortgages. For further
information with respect to these properties, see "Business - Real Estate
Operations."

     Location                                  General Character
     --------                                  ------------------
     Arizona                        378 Unit  Apartment Complex
     Arizona                        340 Unit Apartment Complex
     Arizona                        70 Unit Apartment Building
     Arizona                        53,000 Sq. ft. Office Building
     Arizona                        65,000 Sq. ft. Retail/Medical use Complex
     Texas                          228 Unit Apartment Complex
     Texas                          180 Unit Apartment Complex
     Florida                        28,000 Sq. ft. Office Building
     Florida                        Apartment Properties (62 units)
     Georgia                        72 Unit Apartment Complex
     New Jersey                     Apartment Properties (473 units),
                                      including a 132 unit apartment complex
     New Jersey                     Commercial/Retail Properties,
                                      including a 75,000 sq. ft. office building
     New Jersey                     Other undeveloped investment properties


                                       13

<PAGE>

     The Company considers all of its properties both owned and leased, together
with the related furniture, fixtures and equipment contained therein, to be well
maintained, in good operating condition, and adequate for its present and
foreseeable future needs.

ITEM 3. LEGAL PROCEEDINGS

     At December 31, 2001, the Company was not a party to any actions or
proceedings which management believes are reasonably likely to have a material
adverse effect upon the Company.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matter was submitted by the Company to a vote of its security holders
during the fourth quarter of the year ended December 31, 2001.

                                     PART II

ITEM 5.  MARKET PRICE OF THE REGISTRANT'S COMMON EQUITY AND RELATED
         STOCKHOLDER MATTERS

     The Company's Common Stock is traded on the American Stock Exchange. The
following table indicates the high and low sales prices of the Company's common
stock for the quarters indicated during the past two years:

                              (All in ($) Dollars)

<TABLE>
<CAPTION>

              Quarter 1          Quarter 2            Quarter 3          Quarter 4
         High   -   Low       High   -   Low       High  -   Low       High    -   Low
        ----------------      ---------------     ----------------    ----------------
<S>     <C>                   <C>                 <C>                 <C>
2001    4.00    -  3.00       4.22   -   2.50     4.48   -  3.05      3.60     -   2.91
2000    4-5/16  - 3-3/8       4-1/4  -  3-1/4     4      -  3-1/4     4-1/4    -   3

</TABLE>

     As of March 16, 2002 there were 7,821 common shareholders of record.

     The Company has not paid any dividends to shareholders in the past two
years as it has invested its' profits in oil & gas and real estate properties.
The Board of Directors will consider the payment of dividends from time to time
in the future based on the Company's results of operations and capital
requirements.

                                       14

<PAGE>

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

     The Company is engaged in the exploration and development of oil and gas,
both in its own name and through several wholly-owned subsidiaries, on the North
American continent. The Company also conducts real estate operations throughout
the United States.

OIL AND GAS -

     The Company conducts its oil and gas operations in the United States and
Canada. Oil and gas operations in the United States are located in Arkansas,
California, Kansas, Nebraska, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas,
Wyoming, Utah, and West Virgina. In Canada, the Company conducts oil and gas
operations in the Provinces of Alberta, British Columbia and Saskatchewan.

REAL ESTATE -

     The Company's real estate operations are conducted in the states of
Arizona, Texas, Florida, Georgia and New Jersey. The Company's properties
consist of apartment complexes as well as commercial and retail properties.

CORPORATE -

     The Company holds investments in certain marketable securities. From time
to time, the Company buys and sells securities in the open market. Over the
years, the Company has decreased its holdings in marketable securities and
focused its resources in its oil & gas and real estate divisions.

GENERAL - OIL AND GAS

     The Company's oil and gas operating performance is influenced by several
factors. The most significant are the prices received for the sale of oil and
gas and the sales volume. For 2001, the average price of oil that the Company
received was $20.97 compared to $25.32 for 2000, a price decrease of 17%.
Average gas prices received by the Company in 2001 were 4% lower than 2000
average gas prices. The average price of gas for 2001 was $2.89 compared to
$3.01 for 2000.

     The following table reflects the average prices received by the Company for
oil and gas, the average production cost per BOE, and the amount of the
Company's oil and gas production for the fiscal years presented:

                                             Fiscal Year Ended December 31
                                         ------------------------------------
Crude Oil and Natural Gas Production:        2001         2000        1999
                                         ----------    ---------   ----------
    Oil  (Bbls) ...................         109,000       97,000      114,000
    Gas (Mcf) .....................       2,187,000     1,790.00    1,970,000
Average sales prices:
    Oil  (per Bbl) ................      $    20.97    $   25.32   $    14.95
    Gas (per Mfc) .................      $     2.89    $    3.01   $     1.77
Average production costs per BOE: .      $     5.24    $    6.14   $     4.90


                                       15
<PAGE>

     Sales prices received by the Company for oil and gas have fluctuated
significantly from period to period. The fluctuations in oil prices during these
periods primarily reflected market uncertainty regarding the inability of the
Organization of Petroleum Exporting Countries ("OPEC") to control the production
of its member countries, as well as concerns related to global supply and demand
for crude oil. Gas prices received by the Company fluctuate generally with
changes in the spot market price for gas. It is impossible to predict future
price movements with certainty.

     The company follows the accounting policy, generally known in the oil and
gas industry as "full cost accounting". Under full cost accounting all oil and
gas related costs incurred are accumulated in separate cost centers and are
amortized to depletion expense using the gross revenue method based on total
future estimated recoverable oil and gas reserves. For non oil and gas producing
assets, the Company evaluates impairment in accordance with Financial Accounting
Standards Board (FASB) No. 121.

     The Company periodically reviews available for sale marketable securities
for other than temporary impairment in accordance with FASB No. 115, when the
cost basis of a security exceeds the market value.

RESULTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 2001 ("2001") COMPARED WITH YEAR ENDED DECEMBER 31,
     2000("2000")

     Net income for the year ended December 31, was $452,000 in 2001 or $0.06
per share, compared to $1,224,000 or $0.15 per share in 2000. Net income in 2001
includes a one-time charge of $1,684,000 ($1,111,000 net of tax impact) for
write down of a marketable security due to a decline in market price below cost
levels. Excluding the impact of the one time charge, net income for 2001 would
have been $1,563,000 or $0.20 per share compared with net income of $1,224,000
in 2000 or $0.15 per share. The market price of the specific security has risen
from $2.10 per share at December 31, 2001 (the determination date of the
writedown) to $2.50 per share as of March 28, 2002.

     Operating income in 2001 was $6,281,000 compared to $6,178,000 in 2000, an
increase of $103,000. This increase was due to higher revenue from oil & gas and
real estate operations, increased gains from sales of real estate assets
mitigated by higher deprecation, amortization and depletion charges.

     Oil and gas revenues increased from $7,875,000 in 2000 to $8,534,000 in
2001. This increase was attributable to an increase in the production of crude
oil and gas. Average oil prices decreased from $25.32 per BBL in 2000 to $20.97
in 2001. Average gas prices decreased from $3.01 per MCF in 2000 to $2.89 in
2001.

     Real estate revenues increased from $12,832,000 in 2000 to $14,095,000 in
2001. This increase was principally due to additional rental income resulting
from the purchase of additional properties in 2001.

     Oil and gas production expense was higher in 2001 than 2000. Oil and gas
production expense amounted to $2,555,000 in 2001 and $2,224,000 in 2000. The
increased 2001 expense was primarily a result of cost increases and engineering
operations to increase production.

     Depreciation, depletion and amortization of oil and gas assets amounted to
$2,894,000 in 2001 compared to $1,138,000 in 2000. This increase in depletion,
expense resulted from a decrease in value of the Company's reserves due to lower
oil and gas prices at December 31, 2001 versus December 31, 2000. Real estate
depreciation was $2,263,000 in 2001 compared to $2,126,000 in 2000.

                                       16
<PAGE>


     General and administrative expense was comparable in 2001 and 2000. General
and administrative expense amounted to $1,690,000 in 2001 compared to $1,689,000
in 2000.

     Interest expense increased from $4,419,000 in 2000 to $4,805,000 in 2001.
This increase is attributable to an increase in mortgage debt in 2001.

     The provision for income taxes includes Federal, State and Canadian taxes.
Differences between the effective tax rate and the statutory income tax rates
are primarily due to foreign resource tax credits in Canada, and the dividend
exclusion in the United States.

YEAR ENDED DECEMBER 31, 2000("2000") COMPARED WITH YEAR ENDED DECEMBER 31,
1999("1999")

     Net income for the year ended December 31 was $1,224,000 in 2000 as
compared to $614,000 in 1999.

     Operating income in 2000 was $6,178,000 compared to $4,461,000 in 1999, an
increase of 38%. This increase in operating income is due to higher energy
prices in 2000.

     Oil and gas revenues increased from $5,238,000 in 1999 to $7,875,000 in
2000. This increase was attributable to a sharp increase in the price of crude
oil in 2000. Average oil prices increased from $14.95 per BBL in 1999 to $25.32
in 2000. Average gas prices increased from $1.76 per MCF in 1999 to $3.01 in
2000.

     Real estate revenues increased from $12,484,000 in 1999 to $12,832,000 in
2000. This increase was principally due to higher rents.

     Oil and gas production expense was higher in 2000 than 1999. Oil and gas
production expense amounted to $2,224,000 in 2000 and $2,003,000 in 1999,
primarily as a result of cost increases.

     Depreciation, depletion and amortization of oil and gas assets amounted to
$1,138,000 in 2000 compared to $1,513,000 in 1999. This decrease in depletion
expense resulted from an increase in value of the Company's reserves due to
higher oil and gas prices. Real estate depreciation was $2,126,000 in 2000
compared to $2,073,000 in 1999.

     General and administrative expense was comparable in 2000 and 1999. General
and administrative expense amounted to $1,689,000 in 2000 compared to $1,646,000
in 1999.

     Interest expense increased from $3,944,000 in 1999 to $4,419,000 in 2000.
This increase is attributable to higher interest rates in 2000 and an increase
in short term loans.

     The provision for income taxes includes Federal, state and Canadian taxes.
Differences between the effective tax rate and the statutory income tax rates
are primarily due to foreign resource tax credits in Canada, and the dividend
exclusion in the United States.

EFFECTS OF INFLATION

     The effects of inflation on the Company's financial condition are not
considered to be material by management.

                                       17

<PAGE>



LIQUIDITY AND CAPITAL RESOURCES

     At December 31, 2001 the Company had approximately $8.4 million in
marketable securities at cost, with a market value of approximately $10.4
million. The current ratio at December 31, 2001 was 1.4 to 1 on a market basis
and the Company's working capital was $5.1 million at December 31, 2001.
Management considers these amounts adequate for the Company's current business.

     The Company anticipates that cash provided by operating activities and
investing activities will be sufficient to meet its capital requirements to
acquire oil and gas properties and to drill and evaluate these and other oil and
gas properties presently held by the Company. The level of oil and gas capital
expenditures will vary in future periods depending on market conditions,
including the price of oil and the demand for natural gas, and other related
factors. As the Company has no material long-term commitments with respect to
its oil and gas capital expenditure plans, the Company has a significant degree
of flexibility to adjust the level of its expenditures as circumstances warrant.

     The Company plans to actively continue its exploration and production
activities as well as search for the acquisition of oil and gas producing
properties and of companies with desirable oil and gas producing properties.
There can be no assurance that the Company will in fact locate any such
acquisitions.

     During the year ended December 31, 2001, the Company acquired additional
real estate properties. The Company will continue to explore real estate
acquisitions as they arise. The timing of any such acquisition will depend on,
among other things, economic conditions and the favorable evaluation of specific
opportunities presented to the Company. The Company is currently planning
further acquisitions of investment properties during the next year. Accordingly,
while the Company anticipates that it will actively explore these and other real
estate acquisition opportunities, no assurance can be given that any such
acquisition will occur.

     During the year ended December 31, 2000, the Company refinanced $4,200,000
long-term debt on an apartment complex. No refinancing occurred in 2001. These
funds were borrowed on a long-term basis at favorable rates. The proceeds of
this loan was used to pay off the original first-mortgage loan and for
investment and working capital purposes.

     Net cash provided by (used in) operating activities was $6,998,000,
$3,620,000 and $5,225,000 in 2001, 2000 and 1999, respectively. The variations
in the three years principally relate to changes in accounts receivable and
accounts payable and accrued liabilities.

     Net cash provided by (used in) investing activities was $(11,182,000),
$(10,767,000) and $(2,821,000) in 2001, 2000 and 1999, respectively. The
variations principally relate to purchases of real estate properties and
transactions in securities. Purchases of real estate properties amounted to
$8,194,000 in 2001. Proceeds from sales and redemptions of securities amounted
to $602,000 in 1999. Additionally, purchases of marketable securities amounted
to $5,000 in 2001, $4,355,000 in 2000 and $1,338,000 in 1999. Proceeds from
sales of real estate properties amounted to $1,602,000 in 1999, $691,000 in 2000
and $3,774,000 in 2001. The Company purchased $3,500,000 in mortgages notes in
2000. These mortgage notes were redeemed in 2001 and replaced by a new mortgage
note in the amount of $6,790,000 secured by 196 units in two contiguous
apartment complexes in Jersey City, New Jersey

     Net cash provided by (used in) financing activities was $6,376,000
$8,224,000, and $(5,094,000) in 2001, 2000 and 1999, respectively. The
variations principally relate to the issuance, refinance, and repayments of
long-term debt. The Company has mortgage notes payable, notes payable and
revolving lines of credit with maturity dates ranging from 2002 to 2010.. See
Footnote No. (4) to the consolidated financial statements for a schedule of
long-term debt.

     The Company believes it has adequate capital resources to fund operations
for the foreseeable future.

                                       18

<PAGE>


FORWARD-LOOKING STATEMENTS

     This Report on Form 10-K for the year ended December 31, 2001 contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. All statements included herein other than
statements of historical fact are forward-looking statements. Although the
Company believes that the underlying assumptions and expectations reflected in
such forward-looking statements are reasonable, it can give no assurance that
such expectations will prove to be correct. The Company's business and prospects
are subject to a number of risks which could cause actual results to differ
materially from those reflected in such forward-looking statements, including
volatility of oil & gas prices, the need to develop and replace reserves, risks
involved in exploration and drilling, uncertainties about estimates of reserves,
environmental risks relating to the Company's oil & gas and real estate
properties, competition, the substantial capital expenditures required to fund
the Company's oil & gas and real estate operations, market and economic changes
in areas where the Company holds real estate properties, interest rate
fluctuations, government regulation, and the ability of the Company to implement
its business strategy.

ITEM 7a QUALATATIVE AND QUANTATIVE DISCLOSURE ABOUT MARKET RISK

     The Company has investments in domestic equity securities for which the
Company has exposure to the risk of market loss. See Note 2 the Financial
Statements.

     The Company has long term mortgage notes payable which are subject to the
risk of market fluxuation in interest rates. See Note 3 to the Financial
Statements.

     The Company does not believe that it is subject to any other risk from
market sensitive instruments.

                                       19


<PAGE>


Financial Accounting Standards Board Statement No. 69 Disclosures

     The following disclosures are those required to be made by publicly traded
enterprises under Financial Accounting Standards Board Statement No. 69,
Disclosures About Oil and Gas Producing Activities.

     The SEC defines proved oil and gas reserves as those estimated quantities
of crude oil, natural gas and natural gas liquids which geological and
engineering data demonstrate with reasonable certainty to be recoverable in
future years from known reservoirs under existing economic and operating
conditions. Proved developed oil and gas reserves are those that can be
recovered through existing wells with existing equipment and operating methods.

                                       20


<PAGE>

                   Estimated quantities of proved oil and gas
                            reserves are as follows:

               Disclosures of Oil and Gas Producing Activities as
                   Required by Financial Accounting Standards
                             Board Statement No. 69
                                 (000's Omitted)

<TABLE>
<CAPTION>

                                         Crude Oil, Condensate and Natural Gas Liquids
                                                            (Barrels)
                                    --------------------------------------------------------
                                           United States                    Canada
                                    --------------------------    --------------------------
                                      2001     2000      1999      2001      2000      1999
                                    ------    ------    ------    ------    ------    ------
<S>                                 <C>       <C>       <C>       <C>       <C>       <C>
Proved Reserves-Beginning of Year    1,268     1,428     1,412       870       939     1,153
Revisions of previous estimates        (90)      (98)       84       (32)      (34)     (168)
Sales of minerals in place            --        --        --        --        --        --
Extensions and discoveries            --        --        --           1      --        --
Production                             (56)      (62)      (68)      (53)      (35)      (46)
                                    ------    ------    ------    ------    ------    ------
Proved Reserves-End of Year          1,122     1,268     1,428       786       870       939
                                    ------    ------    ------    ------    ------    ------
Proved Developed Reserves-
         Beginning of Year             482       447       430       552       615       755
                                    ------    ------    ------    ------    ------    ------
         End of Year                   396       482       447       464       552       615
                                    ======    ======    ======    ======    ======    ======
</TABLE>


<TABLE>
<CAPTION>

                                                             Natural Gas
                                                                (MFC)
                                    --------------------------------------------------------------
                                            United States                      Canada
                                    -----------------------------    -----------------------------
                                     2001       2000       1999       2001       2000       1999
                                    -------    -------    -------    -------    -------    -------
<S>                                 <C>        <C>        <C>        <C>        <C>        <C>
Proved Reserves-Beginning of Year     9,592      8,791      6,315     28,900     36,578     39,029
Revisions of previous estimates      (1,325)     1,728      3,524      3,437     (6,948)    (1,530)
Sales of minerals in place             --         --         --         --         --         --
Extensions and discoveries              146         30       --          245        103       --
Production                           (1,437)      (957)    (1,048)      (750)      (833)      (921)
                                    -------    -------    -------    -------    -------    -------
Proved Reserves-End of Year           6,976      9,592      8,791     31,832     28,900     36,578
                                    -------    -------    -------    -------    -------    -------
Proved Developed Reserves-
           Beginning of Year          9,592      8,791      6,315     23,075     30,419     32,799
                                    -------    -------    -------    -------    -------    -------
           End of Year                6,976      9,592      8,791     25,912     23,075     30,419
                                    =======    =======    =======    =======    =======    =======

</TABLE>



                                       21

<PAGE>

            Standardized Measure of Discounted Future Net Cash Flows
                     Related to Proved Oil and Gas Reserves

                         For The Years Ended December 31
                                 (000's Omitted)

                                   United States            Canada
                                -------------------   -------------------
                                  2001       2000       2001      2000
                                --------   --------   --------   --------
Future cash flows               $ 35,631   $ 78,112   $102,926   $310,836
                                --------   --------   --------   --------
Future costs:
   Production                     14,710     23,262     14,675     16,639
   Development, dismantlement
     & abandonment                 1,972      1,763      1,696      1,859
                                --------   --------   --------   --------
Total Future Costs                16,682     25,025     16,371     18,498
                                --------   --------   --------   --------
Future net inflows-Before
     income tax                   18,949     53,087     86,555    292,338
Future income taxes                4,625     14,066     29,309     97,640
                                --------   --------   --------   --------
Future net cash flows             14,324     39,021     57,246    194,698
10% Discount factor                6,166     20,852     35,030    117,612
                                --------   --------   --------   --------
Standardized measure of
     discounted future net
         cash flows             $  8,158   $ 18,169   $ 22,216   $ 77,086
                                --------   --------   --------   --------

     Estimated future cash inflows are computed by applying year-end prices of
oil and gas to year-end quantities of proved reserves. Future price changes are
considered only to the extent provided by contractual arrangements. Estimated
future development and production costs are determined by estimating the
expenditures to be incurred in developing and producing the proved oil and gas
reserves at the end of the year, based on year-end costs and assuming
continuation of existing economic conditions. Estimated future income tax
expenses are calculated by applying year-end statutory tax rates (adjusted for
permanent differences and tax credits) to estimated future pretax net cash flows
related to proved oil and gas reserves, less the tax basis of the properties
involved.

     These estimates are furnished and calculated in accordance with
requirements of the Financial Accounting Standards Board and the SEC. Due to
unpredictable variances in expenses and capital forecasts, crude oil and natural
gas price changes and the fact that the basis for such estimates vary
significantly, management believes the usefulness of these projections is
limited. Estimates of future net cash flows do not represent management's
assessment of future profitability or future cash flow to the Company.
Management's investment and operating decisions are based upon reserve estimates
that include proved reserves prescribed by the SEC as well as probable reserves,
and upon different price and cost assumptions from those used here. It should be
recognized that applying current costs and prices at a 10 percent standard
discount rate allows for comparability but does not convey absolute value. The
discounted amounts arrived at are only one measure of financial quantification
of proved reserves.

                                       22

<PAGE>

     There were no oil and gas estimates filed with or included in reports to
any other federal or foreign governmental authority or agency within the last
twelve months.

     Reserves in the United States were estimated by Ramsey Engineering Inc. and
the Company. Reserves in Canada were estimated by Citidal Engineering, Ltd.

     "Total Costs Both Capitalized and Expensed, Incurred in Oil and Gas
Producing Activities" (including capitalized interest), "Cost Incurred in
Property Acquisition, Exploration and Development Activities" and "Results of
Operations from Oil and Gas Producing Activities" during the three years ended
December 31, 2001, 2000 and 1999 are included in Note 9 of the Notes to
Consolidated Financial Statements, presented elsewhere herein.

     The standardized measure of discounted estimated future net cash flows and
changes therein related to proved oil and gas reserves is as follows:

                       Changes in Standardized Measure of

         Discounted Future Net Cash Flow from Proved Reserve Quantities

                                 (000's Omitted)

                                    2001        2000         1999
                                 ---------    ---------    ---------
Standardized Measure -           $  95,255    $  33,509    $  26,539
     Beginning of Year
Sales and transfers - Net
     of Production Costs            (6,055)      (7,848)      (3,018)
Extensions and discoveries             700          512         --
Net change in sales price          (26,255)     118,760       16,513
Revision of quantity estimates       1,510      (23,308)      (1,879)
Proceeds from sales of
       Minerals in Place               -0-          -0-          -0-
Accretion of discount               11,716        5,516        3,186
Net change in income taxes          31,894      (26,929)      (7,723)
Change in production rates-
     Other                         (78,391)      (4,957)        (109)
                                 ---------    ---------    ---------
Standardized measure -
     End of year                 $  30,374    $  95,255    $  33,509
                                 ---------    ---------    ---------



                                       23

<PAGE>

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE

     None

                                    PART III

ITEM 10. DIRECTORS OF THE REGISTRANT

     Information required under this Item with respect to Directors is
incorporated by reference from the Company's Definitive Proxy Statement for the
2002 Annual Meeting of Shareholders.

     Information regarding executive officers is found in Part I, Item 1 (a)

ITEM 11. EXECUTIVE COMPENSATION

     Information required under this Item is incorporated by reference from the
Company's Definitive Proxy Statement for the 2002 Annual Meeting of
Shareholders.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

     Information required under this Item is incorporated by reference from the
Company's Definitive Proxy Statement for the 2002 Annual Meeting of
Shareholders.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     Information required under this Item is incorporated by reference from the
Company's Definitive Proxy Statement for the 2002 Annual Meeting of
Shareholders.

                                       24

<PAGE>


                            QUARTERLY FINANCIAL DATA

                                   (Unaudited)

                    (In thousands $ except per share amounts)

                                                     2001
                                ------------------------------------------------
                                  1st       2nd       3rd       4th       Year
                                -------   -------   -------   -------    -------
Oil/Gas Revenues                $ 3,418   $ 2,397   $ 1,601   $ 1,118    $ 8,534
Real Estate Revenues            $ 3,289   $ 3,539   $ 3,617   $ 3,650    $14,095
                                -------   -------   -------   -------    -------
Total Revenues                  $ 6,707   $ 5,936   $ 5,218   $ 4,768    $22,629
                                -------   -------   -------   -------    -------
Gross Profit (loss)
   Oil/Gas (a)                  $ 2,354   $ 1,308   $    78   $  (655)   $ 3,085
Gross Profit
  Real Estate (b)               $   711   $   846   $   914   $   856    $ 3,327
                                -------   -------   -------   -------    -------
Total Gross Profit              $ 3,065   $ 2,154   $   992   $   201    $ 6,412
                                -------   -------   -------   -------    -------
Net Income (loss)               $ 1,037   $   767   $   541   $(1,893)   $   452
                                -------   -------   -------   -------    -------
Net Income (loss)
    Per Share                   $  0.13   $  0.10   $  0.07   $ (0.24)   $  0.06
                                -------   -------   -------   -------    -------
Cash Dividends
    Per Share                   $   .00   $   .00   $   .00   $   .00    $   .00
                                -------   -------   -------   -------    -------

---------

(a) - Gross profit relating to oil and gas represents oil and gas revenues less
production costs and related depreciation, depletion and amortization.

(b) - Gross profit relating to real estate represents total real estate revenues
less real estate operating costs and related depreciation.

                                       25

<PAGE>


                 WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

                            QUARTERLY FINANCIAL DATA

                                   (Unaudited)

                    (In thousands $ except per share amounts)


                                                      2000
                                 -----------------------------------------------
                                    1st       2nd       3rd       4th      Year
                                 -------   -------   -------   -------   -------
Oil/Gas Revenues                 $ 1,345   $ 2,015   $ 2,107   $ 2,408   $ 7,875
Real Estate Revenues             $ 3,225   $ 3,159   $ 3,167   $ 3,281   $12,832
                                 -------   -------   -------   -------   -------
Total Revenues                   $ 4,570   $ 5,174   $ 5,274   $ 5,689   $20,707
                                 -------   -------   -------   -------   -------
Gross Profit
   Oil/Gas (a)                   $   439   $   901   $ 1,282   $ 1,891   $,4,513
Gross Profit
  Real Estate (b)                $   919   $   630   $   737   $   763   $ 3,049
                                 -------   -------   -------   -------   -------
Total Gross Profit               $ 1,358   $ 1,531   $ 2,019   $ 2,654   $ 7,562
                                 -------   -------   -------   -------   -------
Net Income                       $   132   $    75   $   543   $   474   $ 1,224
                                 -------   -------   -------   -------   -------
Net Income
    Per Share                    $  0.02   $  0.01   $  0.06   $  0.06   $  0.15
                                 -------   -------   -------   -------   -------
Cash Dividends
    Per Share                    $   .00   $   .00   $   .00   $   .00   $   .00
                                 -------   -------   -------   -------   -------

----------

(a) - Gross profit relating to oil and gas represents oil and gas revenues less
production costs and related depreciation, depletion and amortization.

(b) - Gross profit relating to real estate represents total real estate revenues
less real estate operating costs and related depreciation.

                                       26

<PAGE>


SELECTED FINANCIAL DATA

            (Not covered by Report of Independent Public Accountants)

               (In thousands of dollars except per share amounts)
<TABLE>
<CAPTION>

                                             For the Year Ended December 31
                               --------------------------------------------------------------
                                 2001        2000         1999          1998           1997
                               --------    --------    ---------     ---------      ---------
<S>                            <C>         <C>         <C>           <C>            <C>
Oil/Gas Revenues               $  8,534    $  7,875    $   5,238     $   4,759      $   5,917
Real Estate Revenues             14,095      12,832       12,484        11,546          9,730
                               --------    --------    ---------     ---------      ---------
Total Revenues                 $ 22,629    $ 20,707    $  17,722     $  16,305      $  15,647
                               --------    --------    ---------     --------- -    ---------
Gross Profit (loss)
  Oil/Gas (a)                  $  3,085    $  4,513    $   1,722     $    (927)     $   1,316
                               --------    --------    ---------     ---------      ---------
Gross Profit
  Real Estate (b)              $  3,327     $ 3,049    $   3,684     $   2,684      $   2,420
                               --------     ------- -  ---------     ---------      ---------
Total Gross
  Profit                       $  6,412     $ 7,562    $  5,406      $   1,757      $   3,736
                               --------     -------    --------      ---------      ---------
Net Income                     $    452     $ 1,224    $    614      $   1,007      $   5,536
                               --------     -------    --------      ---------      ---------
Net income
  per share of
  common stock (c)             $   0.06    $   0.15    $   0.07      $    0.11      $    0.58
                               --------    --------    --------      ---------      ---------
Total assets at
  year-end                     $107,903    $ 98,541    $ 90,527      $  94,601      $ 102,029
                               --------    --------    ---------     ---------      ---------
Long-term
  obligations                  $ 60,661    $ 46,701    $ 46,935      $  47,764      $  51,587
                               --------    --------    ---------     ---------      ---------
Cash dividends
  per share                    $  --       $   --      $   --        $   -          $   --
                               --------    --------    ---------     ---------      ---------

</TABLE>

------------

a)   Gross profit relating to oil and gas represents oil and gas revenues less
     production costs and related depreciation, depletion and amortization.

b)   Gross profit relating to real estate represents total real estate revenues
     less real estate operating costs and related depreciation.

c)   Restated to give effect to stock dividends.


                               PRO FORMA RESULTS

                                  (Unaudited)

                                         Pro Forma
                                         Excluding
                                          Security
                                        Write Down            Actual
                                        -----------   --------------------------
                                        December 31         December 31
                                        -----------   --------------------------
                                            2001          2001          2000
                                        -----------   -----------    -----------
Revenues ............................   $22,629,000   $22,629,000    $20,707,000
Operating Income ....................   $ 6,281,000   $ 6,281,000    $ 6,178,000
Net Income ..........................   $ 1,563,000   $   452,000    $ 1,224,000
Earning Per Share ...................   $      0.20   $      0.06    $      0.15

     Net income for the year ended December 31, was $452,000 in 2001 or $0.06
per share, compared to $1,224,000 or $0.15 per share in 2000. Net income in 2001
includes a one-time charge of $1,684,000 ($1,111,000 net of tax impact) for
write down of a marketable security due to a decline in market price below cost
levels. Excluding the impact of the one time charge, net income for 2001 would
have been $1,563,000 or $0.20 per share compared with net income of $1,224,000
in 2000 or $0.15 per share. The market price of the specific security has risen
from $2.10 per share at December 31, 2001 (the determination date of the
writedown) to $2.50 per share as of March 28, 2002.

                                       27

<PAGE>



REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Shareholders and Board of Directors of
Wilshire Oil Company of Texas:

We have audited the accompanying consolidated balance sheets of Wilshire Oil
Company of Texas (a Delaware corporation) and subsidiaries as of December 31,
2001 and 2000, and the related consolidated statements of income, shareholders'
equity and cash flows for each of the three years in the period ended December
31, 2001. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Wilshire Oil Company of Texas
and subsidiaries as of December 31, 2001 and 2000, and the results of their
operations and their cash flows for each of the three years in the period ended
December 31, 2001, in conformity with accounting principles generally accepted
in the United States.



                                                ARTHUR ANDERSEN LLP



Roseland, New Jersey
March 22, 2002


<PAGE>




WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2001 AND 2000

<TABLE>
<CAPTION>

                                    ASSETS                                          2001              2000
                                    ------                                          ----              ----
<S>                                                                            <C>              <C>
CURRENT ASSETS:
    Cash and cash equivalents (Note 2) .....................................   $   4,984,000    $   2,925,000
    Marketable securities, available-for-sale, at fair value (Notes 2 and 3)      10,358,000        7,166,000
    Accounts receivable (Note 2) ...........................................         832,000        2,243,000
    Income taxes receivable (Note 7) .......................................            --            332,000
    Deferred income taxes (Notes 2 and 7) ..................................            --          1,295,000
    Prepaid expenses and other current assets ..............................       1,215,000        1,240,000
                                                                               -------------    -------------
                 Total current assets ......................................      17,389,000       15,201,000
                                                                               -------------    -------------
MORTGAGE NOTES RECEIVABLE (Note 4) .........................................       6,572,000        3,500,000
                                                                               -------------    -------------
PROPERTY AND EQUIPMENT (Notes 2, 3, 9 and 10):
    Oil and gas properties, using the full cost method of accounting .......     136,355,000      137,458,000
    Real estate properties .................................................      69,161,000       61,402,000
    Other property and equipment ...........................................         394,000          312,000
                                                                               -------------    -------------
                                                                                 205,910,000      199,172,000
    Less-Accumulated depreciation, depletion and amortization ..............     121,968,000      119,332,000
                                                                               -------------    -------------
                                                                                  83,942,000       79,840,000
                                                                               -------------    -------------
                                                                               $ 107,903,000    $  98,541,000
                                                                               =============    =============
                       LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
    Current portion of long-term debt (Note 3) .............................   $   7,287,000    $  14,842,000
    Loan payable to shareholder (Note 5) ...................................         700,000          400,000
    Accounts payable .......................................................       2,301,000        1,986,000
    Income taxes payable ...................................................          50,000             --
    Deferred income taxes (Note 2 and 7) ...................................         896,000             --
    Accrued liabilities (Note 8) ...........................................       1,028,000        1,159,000
                                                                               -------------    -------------
                 Total current liabilities .................................      12,262,000       18,387,000
                                                                               -------------    -------------
LONG-TERM DEBT, less current portion (Note 3) ..............................      60,661,000       46,701,000
                                                                               -------------    -------------
DEFERRED INCOME TAXES (Notes 2 and 7) ......................................      11,256,000       11,994,000
                                                                               -------------    -------------
OTHER LONG-TERM LIABILITIES ................................................          31,000           31,000
                                                                               -------------    -------------
COMMITMENTS AND CONTINGENCIES (Note 8)

SHAREHOLDERS' EQUITY (Notes 2 and 8):
    Preferred stock, $1 par value, 1,000,000 shares authorized;
       none issued and outstanding in 2001 and 2000 ........................            --               --
    Common stock, $1 par value, 15,000,000 shares authorized;
       issued 10,013,544 shares in 2001 and 2000 ...........................      10,014,000       10,014,000
    Capital in excess of par value .........................................       9,029,000        9,029,000
    Treasury stock, 2,132,656 and 2,037,556 shares in 2001
       and 2000, respectively, at cost .....................................     (10,179,000)      (9,850,000)
    Retained earnings ......................................................      17,564,000       17,112,000
    Accumulated other comprehensive loss ...................................      (2,735,000)      (4,877,000)
                                                                               -------------    -------------
                                                                                  23,693,000       21,428,000
                                                                               -------------    -------------
                                                                               $ 107,903,000    $  98,541,000
                                                                               =============    =============

</TABLE>

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


                                                                            F-2

<PAGE>



WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED DECEMBER 31, 2001, 2000 AND 1999

<TABLE>
<CAPTION>

                                                          2001           2000              1999
                                                      ------------    ------------    ------------
<S>                                                   <C>             <C>             <C>
REVENUES (Notes 2, 9 and 10):
    Oil and gas ...................................   $  8,534,000    $  7,875,000    $  5,238,000
    Real estate ...................................     14,095,000      12,832,000      12,484,000
                                                      ------------    ------------    ------------
                 Total revenues ...................     22,629,000      20,707,000      17,722,000
                                                      ------------    ------------    ------------
COSTS AND EXPENSES (Notes 2, 6, 9 and 10):
    Oil and gas production expenses ...............      2,555,000       2,224,000       2,003,000
    Real estate operating expenses ................      8,505,000       7,657,000       6,727,000
    Depreciation and amortization .................      2,263,000       2,126,000       2,073,000
    Depreciation, depletion and amortization of oil
       and gas properties .........................      2,894,000       1,138,000       1,513,000
    General and administrative ....................      1,690,000       1,689,000       1,646,000
    Gain on sales of real estate assets ...........     (1,559,000)       (305,000)       (701,000)
                                                      ------------    ------------    ------------
                 Total costs and expenses .........     16,348,000      14,529,000      13,261,000
                                                      ------------    ------------    ------------
                 Income from operations ...........      6,281,000       6,178,000       4,461,000

WRITE DOWN OF MARKETABLE SECURITIES (Note 2) ......     (1,684,000)           --              --

OTHER INCOME, net .................................        867,000         118,000         307,000

INTEREST EXPENSE (Note 3) .........................     (4,805,000)     (4,419,000)     (3,944,000)
                                                      ------------    ------------    ------------
     Income before provision for income taxes .....        659,000       1,877,000         824,000

PROVISION FOR INCOME TAXES (Note 7) ...............        207,000         653,000         210,000
                                                      ------------    ------------    ------------
                 Net income .......................   $    452,000    $  1,224,000    $    614,000
                                                      ============    ============    ============
BASIC AND DILUTED EARNINGS PER SHARE ..............   $       0.06    $       0.15    $       0.07
                                                      ============    ============    ============

</TABLE>


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


                                                                             F-3

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
DECEMBER 31, 2001, 2000 AND 1999
<TABLE>
<CAPTION>
                                                                      Preferred Stock        Common Stock
                                                                      ---------------    ---------------------     Capital in
                                                                      Shares             Shares                     Excess of
                                                                      Issued   Amount    Issued         Amount      Par Value
                                                                      ------   ------    ------      ---------     ------------
<S>                                                                   <C>    <C>      <C>           <C>            <C>
BALANCE, December 31, 1998 ..................................           --      $  --   10,013,544   $ 10,014,000  $  9,146,000
    Comprehensive income, year ended December 31, 1999-
       Net income ...........................................           --         --         --             --            --
       Other comprehensive income-
          Net translation adjustment ........................           --         --         --             --            --
          Change in unrealized loss on marketable
            securities, net of income tax benefit of $224,000           --         --         --             --            --

Comprehensive income ........................................           --         --         --             --            --

Amortization of deferred compensation (Note 6) ..............           --         --         --             --        (117,000)
Purchase of treasury stock ..................................           --         --         --             --            --
                                                                    ------      ------  ----------   ------------  ------------
BALANCE, December 31, 1999 ..................................           --         --   10,013,544     10,014,000     9,029,000
    Comprehensive income, year ended December 31, 2000-
       Net income ...........................................           --         --         --             --            --
       Other comprehensive income-
          Net translation adjustment ........................           --         --         --             --            --
          Change in unrealized loss on marketable securities,
            net of income tax benefit of $1,295,000 .........           --         --         --             --            --

Comprehensive loss ..........................................           --         --         --             --            --

Purchase of treasury stock ..................................           --         --         --             --            --
                                                                    ------      ------  ----------   ------------  ------------
BALANCE, December 31, 2000 ..................................           --         --   10,013,544     10,014,000     9,029,000
    Comprehensive income, year ended December 31, 2001-
       Net income ...........................................           --         --         --             --            --
       Other comprehensive income-
          Net translation adjustment ........................           --         --         --             --            --
          Change in unrealized gain on marketable securities,
            net of income tax expense of $896,000                       --         --         --             --            --

Comprehensive income ........................................

Purchase of treasury stock ..................................           --         --         --             --            --
                                                                    ------      ------  ----------   ------------  ------------
BALANCE, December 31, 2001 ..................................           --      $  --   10,013,544   $ 10,014,000  $  9,029,000
                                                                    ======      ======  ==========   ============  ============


<CAPTION>
                                                                                     Accumulated
                                                                       Other           Other
                                                                      Treasury       Comprehensive      Retained      Comprehensive
                                                                        Stock        Income (Loss)      Earnings      Income (Loss)
                                                                     ------------    -------------   ------------     -------------
<S>                                                                  <C>             <C>             <C>               <C>
BALANCE, December 31, 1998 ..................................        $ (5,303,000)   $ (3,397,000)   $ 15,274,000
    Comprehensive income, year ended December 31, 1999-
       Net income ...........................................                --              --           614,000       $  614,000
       Other comprehensive income-
          Net translation adjustment ........................                --           574,000            --            574,000
          Change in unrealized loss on marketable
            securities, net of income tax benefit of $224,000                --          (392,000)           --           (392,000)
                                                                                                                        ----------
Comprehensive income ........................................                --              --              --         $  796,000
                                                                                                                        ==========
Amortization of deferred compensation (Note 6) ..............                --              --              --
Purchase of treasury stock ..................................          (2,445,000)           --              --
                                                                     ------------    ------------    ------------
BALANCE, December 31, 1999 ..................................          (7,748,000)     (3,215,000)     15,888,000
    Comprehensive income, year ended December 31, 2000-
       Net income ...........................................                --              --         1,224,000       $ 1,224,000
       Other comprehensive income-
          Net translation adjustment ........................                --          (351,000)           --           (351,000)
          Change in unrealized loss on marketable securities,
            net of income tax benefit of $1,295,000 .........                --        (1,311,000)           --         (1,311,000)
                                                                                                                        ----------
Comprehensive loss ..........................................                --              --              --         $ (438,000)
                                                                                                                        ==========
Purchase of treasury stock ..................................          (2,102,000)           --              --              --
                                                                     ------------    ------------    ------------
BALANCE, December 31, 2000 ..................................          (9,850,000)     (4,877,000)     17,112,000
    Comprehensive income, year ended December 31, 2001-
       Net income ...........................................                --              --           452,000       $  452,000
       Other comprehensive income-
          Net translation adjustment ........................                --          (538,000)           --           (538,000)
          Change in unrealized gain on marketable securities,
            net of income tax expense of $896,000                            --         2,680,000            --          2,680,000
                                                                                                                        ----------
Comprehensive income ........................................                --              --              --         $2,594,000
                                                                                                                        ==========
Purchase of treasury stock ..................................            (329,000)           --              --
                                                                     ------------    ------------    ------------
BALANCE, December 31, 2001 ..................................        $(10,179,000)   $ (2,735,000)   $ 17,564,000
                                                                     ============    ============    ============

</TABLE>
          The accompanying notes to consolidated financial statements
                    are an integral part of these statements.


                                                                            F-4

<PAGE>



WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
DECEMBER 31, 2001, 2000 AND 1999

<TABLE>
<CAPTION>


                                                                         2001           2000            1999
                                                                    ------------    ------------    ------------
<S>                                                                 <C>             <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income ..................................................   $    452,000    $  1,224,000    $    614,000
    Adjustments to reconcile net income to net cash provided by
       operating activities-
          Depreciation, depletion and amortization ..............      5,157,000       3,264,000       3,586,000
          Write down of marketable securities ...................      1,684,000            --              --
          Deferred income tax (benefit) provision ...............       (738,000)         60,000         (96,000)
          Adjustment of deferred and unearned compensation in
              connection with nonqualified stock option plan, net
                                                                            --              --           (48,000)
    Gain on sales of marketable securities ......................           --              --           (24,000)
    Gain on sales of real estate assets .........................     (1,559,000)       (305,000)       (701,000)
    Changes in operating assets and liabilities-
       Decrease (increase) in accounts receivable ...............      1,411,000      (1,055,000)      1,327,000
       Decrease (increase) in income taxes receivable ...........        382,000         178,000         236,000
       Decrease (increase) in prepaid expenses and other
          current assets ........................................         25,000          86,000          33,000
       Increase in other liabilities ............................           --            31,000            --
       Increase (decrease) in accounts payable, accrued
          liabilities and taxes payable .........................        184,000         137,000         298,000
                                                                    ------------    ------------    ------------
                 Net cash provided by operating activities ......      6,998,000       3,620,000       5,225,000
                                                                    ------------    ------------    ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Capital expenditures, net ...................................    (11,879,000)     (3,622,000)     (3,687,000)
    Purchases of marketable securities ..........................         (5,000)     (4,355,000)     (1,338,000)
    Purchase of mortgage notes ..................................     (3,290,000)     (3,500,000)           --
    Proceeds from sales and redemptions of marketable
       securities ...............................................           --            19,000         602,000
    Proceeds on mortgage notes ..................................        218,000            --              --
    Proceeds from sales of real estate properties ...............      3,774,000         691,000       1,602,000
                                                                    ------------    ------------    ------------
                 Net cash used in investing activities ..........    (11,182,000)    (10,767,000)     (2,821,000)
                                                                    ------------    ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from issuance of debt ..............................     13,370,000      14,125,000       1,000,000
    Principal payments of long-term debt ........................     (6,965,000)     (4,199,000)     (3,649,000)
    Purchase of treasury stock ..................................       (329,000)     (2,102,000)     (2,445,000)
    Loan payable to shareholder .................................        300,000         400,000            --
                                                                    ------------    ------------    ------------
                 Net cash provided by (used in) financing
                    activities ..................................      6,376,000       8,224,000      (5,094,000)
                                                                    ------------    ------------    ------------

</TABLE>


                                                                            F-5

<PAGE>



WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
DECEMBER 31, 2001, 2000 AND 1999

<TABLE>
<CAPTION>

                                                               2001           2000          1999
                                                            -----------    -----------    -----------
<S>                                                         <C>            <C>            <C>
EFFECT OF EXCHANGE RATE CHANGES ON CASH .................   $  (133,000)   $   (39,000)   $   133,000
                                                            -----------    -----------    -----------
                 Net increase (decrease) in cash and cash
                    equivalents .........................     2,059,000      1,038,000     (2,557,000)

CASH AND CASH EQUIVALENTS, beginning of year ............     2,925,000      1,887,000      4,444,000
                                                            -----------    -----------    -----------
CASH AND CASH EQUIVALENTS, end of year ..................   $ 4,984,000    $ 2,925,000    $ 1,887,000
                                                            ===========    ===========    ===========
SUPPLEMENTAL DISCLOSURES TO THE STATEMENTS OF CASH FLOWS:
       Cash paid during the year for-
          Interest ......................................   $ 4,824,000    $ 4,258,000    $ 3,727,000
          Income taxes, net .............................       355,000        152,000         78,000
                                                            ===========    ===========    ===========

</TABLE>


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


                                                                             F-6

<PAGE>



WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1.   DESCRIPTION OF BUSINESS

Wilshire Oil Company of Texas (the Company) is a diversified corporation
primarily engaged in oil and gas exploration and production and real estate
operations. The Company's oil and gas operations are conducted, both in its own
name and through several wholly-owned subsidiaries, in the United States and
Canada. Oil and gas operations in the United States are located in Arkansas,
California, Kansas, Nebraska, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas,
Utah, West Virginia and Wyoming. In Canada, the Company conducts oil and gas
operations in the Provinces of Alberta, British Columbia and Saskatchewan. Crude
oil and natural gas production is sold to oil refineries and natural gas
pipeline companies. The Company's real estate holdings are located in the states
of Arizona, Florida, New Jersey, Georgia and Texas. The Company also maintains
investments in marketable securities, which are available-for-sale.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Significant accounting policies followed by the Company and its subsidiaries are
as follows-

Basis of Presentation

The consolidated financial statements include the accounts of the Company and
its wholly-owned subsidiaries. Significant intercompany account balances and
transactions among subsidiaries have been eliminated in consolidation.

Use of Estimates

The preparation of these financial statements in conformity with accounting
principals generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

Cash And Cash Equivalents

The Company considers cash and cash equivalents to include deposits with banks
having a maturity of three months or less from date of purchase.

Marketable Securities, Available-for-Sale

As of December 31, 2001 and 2000, the marketable securities of the Company
consist primarily of equity securities, all of which are classified as
available-for-sale. These securities are carried at fair value based upon quoted
market prices. Unrealized gains and losses, representing differences between an
investment's cost and its fair value, are charged (credited) directly to
shareholders' equity, net of related income taxes, as a component of accumulated
comprehensive income (loss). The cost of securities sold is determined on a
specific identification basis. The Company periodically reviews
available-for-sale securities for other than temporary impairment when the cost
basis of a security exceeds the market value.

In 2001, the Company wrote down a marketable security held as available-for-sale
to fair value by $1,684,000 since the market value decline was determined to be
other than temporary.



                                                                             F-7

<PAGE>


WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Property And Equipment

     Oil And Gas Properties

The Company follows the accounting policy, generally known in the oil and gas
industry as "full cost accounting". Under full cost accounting, the Company
capitalizes all costs, including interest costs, relating to the exploration for
and development of its mineral resources. Under this method, all costs incurred
in the United States and Canada are accumulated in separate cost centers and are
amortized using the gross revenue method based on total future estimated
recoverable oil and gas reserves.

Capitalized costs are subject to a "ceiling" test that limits such costs to the
aggregate of the estimated present value, using a discount rate of 10% of the
future net revenues of proved reserves and the lower of cost or fair value of
unproved properties. Management is of the opinion that, based on reserve reports
of petroleum engineers and geologists, the fair value of the estimated
recoverable oil and gas reserves exceeds the unamortized cost of oil and gas
properties at December 31, 2001 and 2000.

     Real Estate And Other Properties

Real estate properties and other property and equipment are stated at cost.
Depreciation is provided on the straight-line method using an estimated useful
life of 30 to 35 years for real estate buildings and at various rates based upon
the estimated useful lives of the other property and equipment.

As of December 31, 2001 and 2000, real estate properties consist of land with an
aggregate cost of $16,191,000 and $15,146,000, buildings with an aggregate cost
of $44,244,000 and $38,786,000 and furniture and fixtures with an aggregate cost
of $8,726,000 and $7,470,000, respectively.

Impairment of Property and Equipment

The Company follows Financial Accounting Standards Board (FASB) Statement of
Financial Accounting Standards No. 121, "Accounting for the Impairment of
Long-Lived Assets" (SFAS 121) for their non oil and gas producing assets. As of
December 31, 2001 and 2000, the Company has determined that no impairment has
occurred in accordance with the measurement criteria prescribed by SFAS 121.

Revenue Recognition

Revenue from oil and gas properties is recognized at the time these products are
delivered to third party purchasers. Revenue from real estate properties is
recognized during the period in which the premises are occupied and rent is due
from the tenant. Because revenues from both oil and gas and real estate
operations are collected in a relatively short period, no allowance is required
for uncollectible accounts.

Income Taxes

The Company accounts for income taxes using Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes" (SFAS 109). Under SFAS 109,
deferred taxes are provided for the net tax effect of temporary differences
between the carrying amounts of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. The primary temporary
differences are those related to tax over book depreciation, depletion, and
amortization and unrealized gains and losses on marketable securities (see
Note 7).


                                                                            F-8

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



Foreign Operations

The assets and liabilities of the Company's Canadian subsidiary have been
translated at year-end exchange rates, and the related revenues and expenses
have been translated at average annual exchange rates. The aggregate effect of
translation losses are reflected as a component of accumulated other
comprehensive income (loss) until the sale or liquidation of the underlying
foreign investment.

Unremitted earnings of the Canadian subsidiary are intended to be permanently
invested in Canada and are subject to foreign taxes substantially equivalent to
United States Federal income taxes. The unremitted earnings on which the Company
has not been required to provide Federal income taxes amounted to approximately
$19,702,000 and $17,613,000 at December 31, 2001 and 2000, respectively.

Accounting for Stock-Based Compensation

The Company has adopted the disclosure-only provisions of Statement of Financial
Accounting Standards No. 123, "Accounting for Stock-Based Compensation" (SFAS
123).

Net Income Per Common Share

Basic earnings per share are calculated based on the total weighted average
number of shares of common stock outstanding during the period and excludes any
dilutive effects of options, warrants and convertible securities. Diluted
earnings per share gives effect to all potentially dilutive common shares that
were outstanding during the period.

The following table sets forth the computation of basic and diluted earnings per
share-

<TABLE>
<CAPTION>

                                                           2001         2000        1999
                                                        ----------   ----------   ----------
<S>                                                     <C>          <C>          <C>
Numerator-
   Net income -
       Basic and Diluted ............................   $  452,000   $1,224,000   $  614,000
                                                        ==========   ==========   ==========
Denominator-
   Weighted average common shares
       outstanding - Basic ..........................    7,914,135    8,160,546    8,559,374
   Incremental shares from assumed conversions of
       stock options ................................         --           --           --
                                                        ----------   ----------   ----------
   Weighted average common shares outstanding -
       Diluted ......................................   $7,914,135    8,160,546    8,559,374
                                                        ==========   ==========   ==========
Basic earnings per share ............................   $     0.06   $     0.15   $      .07
Diluted earnings per share ..........................   $     0.06   $     0.15   $      .07

</TABLE>


                                                                            F-9

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) includes net income, unrealized gains or losses on
available-for-sale securities and foreign currency translation adjustments. The
Company has chosen to disclose comprehensive income (loss) in the Consolidated
Statements of Shareholders' Equity.

Changes in the components of Accumulated Other Comprehensive Income (Loss) for
the years 1999, 2000 and 2001 are as follows-

<TABLE>
<CAPTION>

                                     Unrealized Gains       Cumulative          Accumulated
                                       (Losses) on       Foreign Currency         Other
                                    Available-for-Sale     Translation         Comprehensive
                                        Securities          Adjustment          Income (Loss)
                                   -------------------   ----------------      --------------
<S>                                    <C>                 <C>                 <C>
BALANCE, December 31, 1998 ..........  $   118,000         $(3,515,000)        $(3,397,000)
   Change for the year 1999 .........     (392,000)            574,000             182,000
                                       -----------         -----------         -----------
BALANCE, December 31, 1999 ..........     (274,000)         (2,941,000)         (3,215,000)
   Change for the year 2000 .........   (1,311,000)           (351,000)         (1,662,000)
                                       -----------         -----------         -----------
BALANCE, December 31, 2000 ..........   (1,585,000)         (3,292,000)         (4,877,000)
   Change for the year 2001 .........    2,680,000            (538,000)          2,142,000
                                       -----------         -----------         -----------
BALANCE, December 31, 2001 ..........  $ 1,095,000         $(3,830,000)        $(2,735,000)
                                       ===========         ===========         ===========
</TABLE>


Reclassifications

Certain reclassifications have been made to the prior year's financial
information to conform to the current year presentation.

3.   LONG-TERM DEBT

Long-term debt as of December 31 consists of the following-

                                                     2001           2000
                                                ------------   ------------
       Mortgage notes payable (a) ...........   $ 26,464,000   $ 22,496,000
       Mortgage notes payable (b) ...........     16,868,000     17,062,000
       Mortgage notes payable (c) ...........      9,796,000      5,610,000
       Mortgage note payable (d) ............      4,145,000      4,200,000
       Note payable (e) .....................      4,575,000      6,075,000
       Revolving line of credit (f) .........      3,500,000      3,500,000
       Revolving line of credit (g) .........      2,600,000      2,600,000
                                                ------------   ------------
                                                  67,948,000     61,543,000
       Less-Current portion .................      7,287,000     14,842,000
                                                ------------   ------------
                                                $ 60,661,000   $ 46,701,000
                                                ============   ============

(a)  At December 31, 2001, the Company had mortgage notes payable to The Trust
     Company of New Jersey (The Trust Company) totaling $26,464,000 payable in
     monthly and quarterly installments, bearing interest at a weighted average
     effective interest rate of 7.53%. These mortgage notes are secured by a
     first mortgage interest in the Company's real estate properties and mature
     at various dates through 2010.


                                                                            F-10

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(b)  The Company has two mortgage notes payable to Criimi Mae/Citicorp Real
     Estate (Criimi Mae). The Criimi Mae notes at December 31, 2001 are payable
     in monthly installments, bear interest at a rate of 7.48% and mature in
     November 2007. In February 2002, Criimi Mae transferred servicing of the
     two mortgage notes payable to GMAC Commercial Mortgage Corporation.

(c)  In August 1999, Criimi Mae transferred servicing of two of the mortgage
     notes payable, to Orix Real Estate Capital Markets, LLC (ORIX). The Orix
     notes are payable in monthly installments, bearing a weighted average
     interest rate of 7.05% and mature in July 2008. In March 2001, the Company
     also obtained a mortgage note payable for $4,270,000 from ORIX. The
     mortgage note is payable in monthly installments, bearing interest at 7.9%,
     which matures in June 2009 and is secured by the property.

(d)  At December 31, 2001, the Company had a mortgage note payable for
     $4,145,000 from Columbia Savings Bank. The mortgage note is payable in
     monthly installments, bearing interest at a rate of 8.00%, which matures in
     January 2011 and is secured by the property.

(e)  In 1999, the Company had an outstanding note payable for $1,975,000 to The
     Trust Company. In August 2000, the Company renewed the note, which bore
     interest at the prime lending rate, matured in August 2001 and was secured
     by certain marketable securities. In August 2001, the Company renewed the
     note, bearing interest at the prime lending rate (4.75% at December 31,
     2001) which matures in January 2003.

     In addition, in June 2000, the Company obtained a partially secured note
     payable to The Trust Company for $2,100,000. This loan bore interest at the
     prime lending rate and matured in May 2001. The amount was paid in full in
     2001.

     The Company also obtained a note payable for $2,000,000 in December 2000,
     to The Trust Company. This loan bore interest at 6.5%, matured in March
     2001 and was secured by a certificate of deposit. The amount was paid in
     full in 2001. The Company obtained a note payable of $2,600,000 in December
     2001, to The Trust Company. This loan bore interest at the prime lending
     rate, matured in March 2002 and was secured by a certificate of deposit.
     The amount was paid in full in 2002.

(f)  In 1999, the Company had an unsecured $2,000,000 revolving line of credit
     from The Trust Company. In August 2000, the revolving line of credit was
     renewed. This loan bore interest at the prime lending rate and matured in
     August 2001. In August 2001, the line of credit was extended and matures in
     January 2003.

     In addition, the Company obtained an unsecured line of credit for
     $1,500,000 in December 2000, which bore interest at the prime lending rate
     and matured in March 2001. In March 2001, the line of credit was extended
     and matures in October 2002. The amount was paid in full in March 2002.

(g)  In June 2000, the Company obtained a revolving line of credit from the
     Provident Savings Bank for $2,600,000 all of which was outstanding at
     December 31, 2000. This loan bore interest at the prime lending rate and
     matured in June 2001. In June 2001 the line of credit was extended, bearing
     interest at the prime lending rate of 4.75% at December 31, 2001 and
     matures in July 2002.


                                                                            F-11

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The aggregate maturities of the long-term debt in each of the five years
subsequent to 2001 and thereafter are-

       2002 .......................................   $ 7,287,000
       2003 .......................................    10,508,000
       2004 .......................................     8,627,000
       2005 .......................................       685,000
       2006 .......................................       735,000
       Thereafter .................................    40,106,000
                                                      -----------
                                                      $67,948,000
                                                      ===========

4.   MORTGAGE NOTES RECEIVABLE

During June 2000, the Company acquired mortgage notes receivable secured by
underlying property from The Trust Company for a fair value price of $3,500,000.
This transaction was financed in part with the $2,100,000 note payable discussed
in Note 3 (e) above. In 2001, the Company entered into an agreement whereby they
borrowed $3,200,000 from The Trust Company (included in mortgage notes payable
discussed in Note 3 (a) above) which was issued to a third party and redeemed
the mortgage notes acquired in 2000 in exchange for $6,790,000 of mortgage notes
receivable. Under this agreement, the Company has the right to receive proceeds
from the sale of the underlying property for which they received $218,000 in
2001.

5.   LOAN PAYABLE TO SHAREHOLDER

During 2000, a shareholder loaned the Company $900,000, payable on demand at the
prime interest rate (4.75% at December 31, 2001). During 2001, the shareholder
loaned the Company an additional $300,000. At December 31, 2001, $700,000 was
outstanding under this loan. The Company repaid $200,000 to the shareholder in
January 2002.

6.   STOCK OPTIONS

Under various stock option plans adopted prior to 1995, stock options to
purchase an aggregate of 26,764 shares of common stock were outstanding to
officers, key consultants and employees at December 31, 2001. No additional
options may be granted under these plans.

In June 1995, the Company adopted two new stock-based compensation plans (1995
Stock Option and Incentive Plan "Incentive Plan"; and 1995 Non-employee Director
Stock Option Plan "Director Plan") under which, up to 450,000 and 150,000
shares, respectively, are available for grant. During 1999, the Company granted
5,000 options, to purchase common stock under the Director Plan. No options were
granted under either plan during 2000 and 2001. At December 31, 2001, 3,090 and
82,100 options were outstanding under the Incentive Plan and Director Plan,
respectively.

The number and terms of the options granted under these plans are determined by
the Company's Stock Option Committee (the Committee) based on the fair market
value of the Company's common stock on the date of grant. The period during
which an option may be exercised varies, but no option may be exercised after
ten years from the date of grant.

The Company has adopted the disclosure-only provisions of SFAS 123. As permitted
by the statement, the Company has chosen to continue to account for stock-based
compensation using the intrinsic value method. Accordingly, no compensation
expense has been recognized for its stock-based compensation plans. Had the


                                                                            F-12

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



fair value method of accounting been applied to the Company's stock option
plans, which requires recognition of compensation cost ratably over the vesting
period of the underlying equity instruments, net income would have been reduced
by $0 with no per share effect in 2001, $6,000 with no per share effect in 2000,
and $49,000 with no per share effect in 1999. This pro forma impact only takes
into account options granted since January 1, 1995 and is likely to increase in
future years as additional options are granted and amortized ratably over the
vesting period. The average fair value of options granted during 1999 was $2.09.

The fair value was estimated using the Black-Scholes option-pricing model based
on the weighted average market price at grant date of $3.94 per share in 1999
and the following weighted average assumptions; risk-free interest rate of 6.19%
for 1999, volatility of 25.94% for 1999, and no dividend yield for 1999.

The following table summarizes stock option activity for 2001 and 2000-

<TABLE>
<CAPTION>

                                                          2001                         2000
                                                  ----------------------       ----------------------
                                                                Price                        Price
                                                    Shares     Low-High          Shares     Low-High
                                                  ---------   ----------       ---------   ----------
<S>                                                 <C>       <C>                <C>       <C>
Options outstanding at beginning of year ........   174,372   $1.00-6.51         199,745   $1.00-6.51
Options granted .................................        --           --              --           --
Options exercised ...............................        --           --              --           --
Options terminated and expired ..................   (62,418)   5.09-6.51         (25,373)   3.87-5.53
                                                    -------   ----------         -------   ----------
Options outstanding at end of year (a) ..........   111,954   $1.00-6.51         174,372   $1.00-6.51
                                                    =======   ==========         =======   ==========
Options exercisable at end of year ..............   106,954   $1.00-6.51         160,162   $1.00-6.51
                                                    =======   ==========         =======   ==========

</TABLE>

---------

(a)  At December 31, 2001, options outstanding include options ($1.00 to $6.51
     per share) granted to certain employees and key consultants whereby the
     initial option price as determined by the Committee is subject to reduction
     (to a minimum of $1.00) by an amount equal to the increase in market value
     from the date of grant. At December 31, 2001, the lowest outstanding option
     price is $3.94 per share. Included in these options are options with
     attached stock appreciation rights, pursuant to which the Company may elect
     to grant cash, stock or a combination of cash and stock in lieu of the
     stock appreciation value. Additional compensation attributable to these
     options is charged to income or capitalized as exploration and development
     costs over calculated periods of employment based on the duties performed
     by the individuals awarded the options. During 2001, 2000 and 1999, $0, $0
     and $69,000, respectively, was charged to operations, and $0, $0 and
     $48,000, respectively, was charged to oil and gas properties relating to
     such options.

     As of December 31, 2001 and 2000, included in accrued liabilities is
     $31,000 payable to certain individuals for stock appreciation rights. These
     amounts are currently payable under certain conditions.


                                                                            F-13

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



7.   INCOME TAXES

Provision (benefit) for income taxes consist of the following-

                                     2001         2000            1999
                                 ----------    -----------    ----------
       Federal-
          Current ............   $   72,000    $  (164,000)   $  251,000
          Deferred ...........     (635,000)        84,000      (350,000)
                                 ----------    -----------    ----------
                                   (563,000)       (80,000)      (99,000)
                                 ----------    -----------    ----------
       Foreign-
          Current ............      933,000        767,000        63,000
          Deferred ...........     (103,000)       (24,000)      254,000
                                 ----------    -----------    ----------
                                    830,000        743,000       317,000
                                 ----------    -----------    ----------
       State .................      (60,000)       (10,000)       (8,000)
                                 ----------    -----------    ----------
                 Total .......   $  207,000    $   653,000    $  210,000
                                 ==========    ===========    ==========

A reconciliation of the differences between the effective tax rate and the
statutory U.S. income tax rate is as follows-

                                                 2001        2000        1999
                                               --------    --------    --------
       Federal income tax provision at
         statutory rate .....................  $224,000    $638,000    $280,000
       State income tax benefit, net of
         Federal impact .....................   (40,000)     (7,000)     (5,000)
       Impact of foreign operations .........   119,000     109,000     (20,000)
       Dividend exclusion ...................   (96,000)    (87,000)    (45,000)
                                               --------    --------    --------
                                               $207,000    $653,000    $210,000
                                               ========    ========    ========
       Effective tax rate                          31.4%       34.8%       25.5%
                                               ========    ========    ========

Significant components of deferred tax liabilities as of December 31, 2001 and
2000 were as follows-

<TABLE>
<CAPTION>

                                                                    2001           2000
                                                                 -----------    -----------
<S>                                                              <C>            <C>
Tax over book depreciation, depletion and amortization-
   Oil and gas and real estate properties -- U. S. ..........    $ 6,940,000    $ 7,575,000
   Oil and gas properties -- Canada .........................      4,316,000      4,419,000
Unrealized gain (loss) on marketable securities .............        896,000     (1,295,000)
                                                                 -----------    -----------
          Net deferred tax liability ........................     12,152,000     10,699,000

Deferred tax (liability) asset reclassified to current ......       (896,000)     1,295,000
                                                                 -----------    -----------
          Noncurrent deferred tax liability .................    $11,256,000    $11,994,000
                                                                 ===========    ===========

</TABLE>


                                                                            F-14

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



8.   COMMITMENTS AND CONTINGENCIES

The Company's income tax returns for the State of Arizona are currently under
review by the local tax authorities for the years 1993 through 1998. The Company
believes that final settlement of its state tax liability for those years will
not have a material impact on its consolidated financial position or results of
operations.

In June 1996 the Company's Board of Directors adopted the Stockholder Protection
Rights Plan (the Rights Plan). The Rights Plan provides for issuance of one
Right for each share of common stock outstanding as of July 6, 1996. The Rights
are separable from and exercisable upon the occurrence of certain triggering
events involving the acquisition of at least 15% (or, in the case of certain
existing stockholders, 25%) of the Company's common stock by an individual or
group, as defined in the Rights Plan (an Acquiring Person) and may be redeemed
by the Board of Directors at a redemption price of $0.01 per Right at any time
prior to the announcement by the Company that a person or group has become an
Acquiring Person.

As of December 31, 2001 and 2000, $7,880,888 and $7,975,988, respectively, of
Rights were outstanding. Each Right entitles the holder to purchase, for an
exercise price of $25, one one-hundredth of a share of Series A Participating
Preferred Stock. Each one one-hundredth share of Series A Participating
Preferred Stock is designed to have economic terms similar to those of one share
of common stock but will have one one-hundredth of a vote. Because the Rights
are only exercisable under certain conditions, none of which were in effect as
of December 31, 2001 and 2000, the outstanding Rights are not considered in the
computation of basic and diluted earnings per share.

The Company does not have significant lease commitments or post retirement
benefits.

9.   SEGMENT INFORMATION

The Company is engaged in the exploration and development of oil and gas, both
in its own name and through several wholly-owned subsidiaries, on the North
American continent. The Company also conducts real estate operations throughout
the United States.

Oil and Gas

The Company conducts its oil and gas operations in the United States and Canada.
Oil and gas operations in the United States are located in Arkansas, California,
Kansas, Nebraska, New Mexico, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West
Virginia and Wyoming. In Canada, the Company conducts oil and gas operations in
the Provinces of Alberta, British Columbia and Saskatchewan.

Real Estate

The Company's real estate operations are conducted in the states of Arizona,
Texas, Florida, Georgia and New Jersey. The Company's properties consist of
apartment complexes, as well as commercial and retail properties.

Corporate

The Company holds investments in certain marketable securities. From time to
time, the Company buys and sells securities in the open market. Over the years,
the Company has focused its resources in the oil and gas and real estate
divisions.


                                                                            F-15

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following segment data is presented based on the Company's internal
management reporting system-

<TABLE>
<CAPTION>

                                                              2001           2000          1999
                                                          ------------   -----------  -----------
<S>                                                       <C>            <C>          <C>
       Gross revenues-
          Oil and gas-United States ..................    $  4,796,000   $ 4,474,000  $ 3,071,000
          Oil and gas-Canada .........................       3,738,000     3,401,000    2,167,000
          Real estate ................................      14,095,000    12,832,000   12,484,000
                                                          ------------   -----------  -----------
                                                          $ 22,629,000   $20,707,000  $17,722,000
                                                          ============   ===========  ===========
       Income (loss) from operations-
          Oil and gas-United States (a) ..............    $   (348,000)  $   826,000  $  (680,000)
          Oil and gas-Canada (a) .....................       2,078,000     2,222,000      953,000
          Real estate (a) ............................       4,885,000     3,486,000    4,385,000
          Corporate (a) ..............................        (334,000)     (356,000)    (197,000)
                                                          ------------   -----------  -----------
                                                          $  6,281,000   $ 6,178,000  $ 4,461,000
                                                          ============   ===========  ===========
       Depreciation, depletion and amortization-
          Oil and gas-United States ..................    $  1,969,000   $   928,000  $ 1,160,000
          Oil and gas-Canada .........................         925,000       192,000      332,000
          Real estate ................................       2,263,000     2,126,000    2,073,000
          Corporate ..................................              --        18,000       21,000
                                                          ------------   -----------  -----------
                                                          $  5,157,000   $ 3,264,000  $ 3,586,000
                                                          ============   ===========  ===========
       Identifiable assets-
          Oil and gas-United States ..................    $ 14,993,000   $16,400,000  $16,418,000
          Oil and gas-Canada .........................      13,758,000    14,964,000   14,334,000
          Real estate ................................      58,344,000    36,698,000   40,367,000
          Corporate ..................................      20,808,000    30,479,000   19,408,000
                                                          ------------   -----------  -----------
                                                          $107,903,000   $98,541,000  $90,527,000
                                                          ============   ===========  ===========
       Capital expenditures-
          Oil and gas-United States ..................    $    980,000   $   864,000  $   821,000
          Oil and gas-Canada .........................         948,000       921,000    1,136,000
          Real estate ................................      10,140,000     2,186,000    1,870,000
          Corporate ..................................         112,000        27,000        6,000
                                                          ------------   -----------  -----------
                                                          $ 12,180,000   $ 3,998,000  $ 3,833,000
                                                          ============   ===========  ===========

</TABLE>

---------

(a)  Represents revenues less all operating costs, including depreciation,
     depletion and amortization.

                                                                           F-16

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



10.  GEOGRAPHIC INFORMATION

The following is a description by geographic location-

<TABLE>
<CAPTION>

                                                               2001         2000          1999
                                                          ------------   -----------  -----------
<S>                                                       <C>            <C>          <C>
       Gross revenues-
          United States ...............................   $ 18,891,000   $17,306,000  $15,555,000
          Canada ......................................      3,738,000     3,401,000    2,167,000
                                                          ------------   -----------  -----------
                                                          $ 22,629,000   $20,707,000  $17,722,000
                                                          ============   ===========  ===========
       Income (loss) from operations-
          United States ...............................   $  4,203,000   $ 3,956,000  $ 3,508,000
          Canada ......................................      2,078,000     2,222,000      953,000
                                                          ------------   -----------  -----------
                                                          $  6,281,000   $ 6,178,000  $ 4,461,000
                                                          ============   ===========  ===========
       Depreciation, depletion and amortization-
          United States ...............................   $  4,232,000   $ 3,072,000  $ 3,254,000
          Canada ......................................        925,000       192,000      332,000
                                                          ------------   -----------  -----------
                                                          $  5,157,000   $ 3,264,000  $ 3,586,000
                                                          ============   ===========  ===========
       Identifiable assets-
          United States ...............................   $ 94,145,000   $83,577,000  $76,193,000
          Canada ......................................     13,758,000    14,964,000   14,334,000
                                                          ------------   -----------  -----------
                                                          $107,903,000   $98,541,000  $90,527,000
                                                          ============   ===========  ===========
       Capital expenditures-
          United States ...............................   $ 11,232,000   $ 3,077,000  $ 2,697,000
          Canada ......................................        948,000       921,000    1,136,000
                                                          ------------   -----------  -----------
                                                          $ 12,180,000   $ 3,998,000  $ 3,833,000
                                                          ============   ===========  ===========
</TABLE>


11.  OIL AND GAS PRODUCING ACTIVITIES

The following data represents the Company's oil and gas producing activities for
2001 and 2000-

<TABLE>
<CAPTION>

                                                                            2001          2000
                                                                        ------------  ------------
<S>                                                                     <C>           <C>
       Capitalized costs (all being amortized)-
          Productive and nonproductive properties ...................   $130,891,000  $132,011,000
          Unevaluated properties ....................................      5,464,000     5,447,000
                                                                        ------------  ------------
                 Total capitalized costs being amortized ............    136,355,000   137,458,000

       Less-Accumulated depreciation, depletion and amortization ....    108,708,000   108,254,000
                                                                        ------------  ------------
                 Net capitalized costs ..............................   $ 27,647,000  $ 29,204,000
                                                                        ============  ============

</TABLE>


                                                                            F-17

<PAGE>

WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



The following data summarizes the costs incurred in property acquisition,
exploration and development activities and the results of operations from oil
and gas producing activities-

<TABLE>
<CAPTION>

                                                    United States                              Canada
                                      -------------------------------------    -------------------------------------
                                         2001          2000         1999          2001          2000         1999
                                      ----------    ----------   ----------    ----------    ----------   ----------
<S>                                   <C>           <C>          <C>           <C>           <C>          <C>
Acquisition of unproved
  properties .......................  $  102,000    $  194,000   $   82,000    $   91,000    $   83,000   $   84,000
Exploration ........................     554,000       148,000      441,000       113,000       325,000      109,000
Development ........................     681,000       549,000      306,000       995,000       206,000      593,000
                                      ----------    ----------   ----------    ----------    ----------   ----------
Total costs incurred ...............  $1,337,000    $  891,000   $  829,000    $1,199,000    $  614,000   $  786,000
                                      ==========    ==========   ==========    ==========    ==========   ==========
Revenues from oil and gas
  producing activities .............  $4,796,000    $4,474,000   $3,071,000    $3,738,000    $3,401,000   $2,167,000
                                      ----------    ----------   ----------    ----------    ----------   ----------
Production costs ...................   1,905,000     1,754,000    1,509,000       651,000       470,000      494,000
Technical support and other ........   1,270,000       948,000    1,061,000        84,000       517,000      388,000
Depreciation, depletion and
  amortization .....................   1,969,000       946,000    1,181,000       925,000       192,000      332,000
                                     ----------    ----------   ----------    ----------    ----------   ----------
Total expenses .....................   5,144,000     3,648,000    3,751,000     1,660,000     1,179,000    1,214,000
                                     ----------    ----------   ----------    ----------    ----------   ----------
Pretax income (loss) from oil
  and gas producing
  activities .......................    (348,000)      826,000     (680,000)    2,078,000     2,222,000      953,000

Income tax (provision) benefit .....     118,000      (280,000)     238,000      (830,000)     (743,000)    (317,000)
                                      ----------    ----------   ----------    ----------    ----------   ----------
Results of oil and gas
  producing activities .............  $ (230,000)   $  546,000   $ (442,000)   $1,248,000    $1,479,000   $  636,000
                                      ==========    ==========   ==========    ==========    ==========   ==========


</TABLE>

                                                                            F-18
<PAGE>

                                     PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT, SCHEDULES AND REPORTS ON FORM 8-K

     (a)  1. FINANCIAL STATEMENTS

             The Financial statements filed as part of this report are listed
             on the Index to Consolidated Financial Statements on page F-1.

     (a)  2. FINANCIAL STATEMENT SCHEDULES

             All schedules are omitted because they are not required,
             inapplicable or the information is otherwise shown in the financial
             statements or notes thereto.

     (a)  3. EXHIBITS

     Exhibit
Number   Description

     3.1     Restated Certificate of Incorporation of Wilshire Oil Company of
             Texas, as amended. (Incorporated by reference to Exhibit 3.1 of
             Item 14 of the Registrant's Annual Report on Form 10-K for the
             year ended December 31, 1992).

     3.2    Amended By-Laws, as of June 11, 1998, of Wilshire Oil Company of
            Texas (Incorporated by reference to Exhibit 3 of the Registrant's
            Quarterly Report on Form 10-Q for the quarter ended June 30,
            1998).

     4.1    Stockholder Protection Rights Agreement, dated as of June 21,
            1996, between Wilshire Oil Company of Texas and Continental Stock
            Transfer & Trust Company, as Rights Agent (Incorporated by
            reference to Exhibit 1 to the Company's current report on Form
            8-K dated June 21, 1996).



     4.2    Multifamily Deed of Trust, Assignment of Rents, Security
            Agreement and Fixture Filing between a subsidiary of Wilshire Oil
            Company of Texas and Criimi Mae, Inc. dated October 28, 1998.
            (Incorporated by reference to Item 14 of the Registrant's Annual
            Report on Form 10-K for the year ended December 31, 1998).

     4.3    Multifamily Promissory Note given by a subsidiary of Wilshire Oil
            Company Of Texas to Criimi Mae, Inc. dated October 28, 1997.
            (Incorporated by reference to Item 14 of the Registrant's Annual
            Report on Form 10-K for the year ended December 31, 1998).

     4.4    Multifamily Deed of Trust, Assignment of Rents, Security
            Agreement and Fixture Filing between a subsidiary of Wilshire Oil
            Company of Texas and Criimi Mae, Inc. dated October 28, 1998.
            (Incorporated by reference to Item 14 of the Registrant's Annual
            Report on Form 10-K for the year ended December 31, 1998).

                                       28

<PAGE>

     4.5    Multifamily Promissory Note given by a subsidiary of Wilshire Oil
            Company Of Texas to Criimi Mae, Inc. dated October 28, 1997.
            (Incorporated by reference to Item 14 of the Registrant's Annual
            Report on Form 10-K for the year ended December 31, 1998).



     4.6    The Company agrees to furnish to the Commission upon request any
            other agreements with respect to long term debt.

     10.1   General Assignments and Assignments of Leases dated March 31, 1992
            with respect to the purchase of income producing real estate
            properties (Incorporated by reference to Exhibit 1 and 2 of Form 8
            dated December 9, 1992, filed with the Commission).

    10.2    General Assignments, Assignments of Leases, and Escrow Agreements
            and Early Possession Agreements with respect to the purchase of
            four income producing real estate properties, (Incorporated by
            reference to Exhibits 1 (a) through 4(c) on the Company's Form
            8-K dated December 31, 1992 filed with the Commission).

    10.3    Wilshire Oil Company of Texas 1980 Stock Option Plan.
            (Incorporated by reference to Exhibit 10.4 of Item 14 of the
            Registrant's Annual Report on Form 10-K for the year ended
            December 31, 1992).

    10.4    Wilshire Oil Company of Texas 1984 Stock Option Plan.
            (Incorporated by reference to Exhibit 10.5 of Item 14 of the
            Registrant's Annual Report on Form 10-K for the year ended
            December 31, 1992).

    10.5    Wilshire Oil Company of Texas 1995 Stock Option and Incentive
            Plan. (Incorporated by reference to Exhibit A of the Registrant's
            Definitive Proxy Statement for its 1995 Annual Meeting of
            Stockholders).

    10.6   Wilshire Oil Company of Texas 1995 Non-Employee Director Stock
           Option Plan. ( Incorporated by reference to Exhibit B of the
           Registrant's Definitive Proxy Statement for its 1995 Annual
           Meeting of Stockholders).

    99.1   Letter to Commission Pursuant to Temporary Note 3T

    11.    Computation of Earnings Per Share

    21.    List of significant subsidiaries of the Registrant

    23.    Consent of Arthur Andersen LLP


                                       29
<PAGE>

14(b) REPORTS ON FORM 8

     There were no Form 8-K filings by the Company during the fourth quarter of
2001.


                                       30

<PAGE>

                               S I G N A T U R E S


     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused the report to be signed on
its behalf by the undersigned thereunto duly authorized.



                                         WILSHIRE OIL COMPANY OF TEXAS
                                         -----------------------------
                                                (Registrant)


                           Directors:


                                    By:  /s/   S. WILZIG IZAK
                                        ----------------------------------------
                                               S. Wilzig Izak


                                    By:  /s/   WILLIAM SCHWARTZ, M.D.
                                        ----------------------------------------
                                               William Schwartz, M.D., Director


                                    By:  /s/   MILTON DONNENBERG
                                        ----------------------------------------
                                               Milton Donnenberg


                                    By:  /s/   ERNEST WACHTEL
                                        ----------------------------------------
                                               Ernest Wachtel

                           Officers:

                                    By:  /s/    S. WILZIG IZAK
                                        ----------------------------------------
                                                S. Wilzig Izak
                                                Chairman of the Board and Chief
                                                Executive Officer
                                                (Duly Authorized Officer and
                                                Chief Financial Officer)

Date: March 30, 2002