SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                  FORM 10-QSB

(X)     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
                        SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended June 30, 1998

                                       OR

( )     TRANSITION  REPORT  PURSUANT  TO  SECTION  13  OR  15(d)  OF  THE
                        SECURITIES EXCHANGE ACT OF 1934
              For the transition period from           to
                                             ---------    ---------

     Commission  File  Number:  0-21609
                                -------


                          CHASE PACKAGING CORPORATION
    -----------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

              Texas                                    93-1216127
--------------------------------            ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation  or  organization)

          c/o Ann W. Green, 26 Broadway, 8th Floor, New York, NY 10004
          ------------------------------------------------------------
              (Address of principal executive offices)   (Zip Code)

                                 (212) 510-0686
        ----------------------------------------------------------------
                (Issuer's telephone number, including area code)


Check  whether  the Issuer (1) filed all reports required to be filed by Section
13  or  15(d)  of  the  Securities  Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was required to file such
reports),  and  (2) has been subject to such filing requirements for the past 90
days.  YES    NO  X
          ---    ---

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


             Class                            Outstanding  at  June  30,  1998
--------------------------------------     -------------------------------------
Common Stock, par value $.10 per share                7,002,964 shares


<PAGE>
<TABLE>
<CAPTION>

                                    - INDEX -

                                                                             PAGE(S)
                                                                             -------
<S>         <C>                                                              <C>
PART I.     Financial Information:

ITEM 1.     Financial Statements

            Condensed Balance Sheets - June 30, 1998 (Unaudited)
            and December 31, 1997                                                 3.

            Condensed Statements of Operations (Unaudited) - Three and Six
            Months Ended June 30, 1998 and 1997                                   4.

            Condensed Statements of Cash Flows (Unaudited) -
            Six Months Ended June 30, 1998 and 1997.                              5.

            Notes to Interim Condensed Financial Statements (Unaudited)           6.


ITEM 2.     Management's Discussion and Analysis or Plan of Operation             8.


PART II.    Other Information                                                     9.


SIGNATURES                                                                       10.


EXHIBITS:   Exhibit 27 - Financial Data Schedule
</TABLE>


                                                                         Page 2.
<PAGE>
PART I.  FINANCIAL  INFORMATION:

ITEM I.  FINANCIAL  STATEMENTS:

<TABLE>
<CAPTION>
                          CHASE PACKAGING CORPORATION
                          ---------------------------
                            CONDENSED BALANCE SHEETS
                            ------------------------

                                   - ASSETS -

                                                          JUNE        December
                                                        30, 1998      31, 1997
                                                      ------------  ------------
                                                      (UNAUDITED)
<S>                                                   <C>           <C>
CURRENT ASSETS:
  Cash and cash equivalents                           $   163,929   $   126,408
  Accounts receivable                                           -        57,012
                                                      ------------  ------------
TOTAL ASSETS                                          $   163,929   $   183,420
                                                      ============  ============




                    - LIABILITIES AND SHAREHOLDERS' EQUITY -
CURRENT LIABILITIES:
  Accounts payable                                    $   133,390   $   134,037
  Accrued expenses                                         23,279        23,279
                                                      ------------  ------------
TOTAL CURRENT LIABILITIES                                 156,669       157,316
                                                      ------------  ------------




COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
  Preferred stock $1.00 par value; 4,000,000
    shares authorized, none issued                              -             -
  Common stock, $.10 par value 25,000,000 authorized
    7,002,964 issued in 1998 and 1997                     700,296       700,296
  Additional paid-in capital                            2,914,207     2,914,207
  Accumulated deficit                                  (3,607,243)   (3,588,399)
                                                      ------------  ------------
                                                            7,260        26,104
                                                      ------------  ------------

                                                      $   163,929   $   183,420
                                                      ============  ============
</TABLE>

                       See notes to financial statements.


                                                                         Page 3.
<PAGE>
<TABLE>
<CAPTION>

                                        CHASE PACKAGING CORPORATION
                                        ---------------------------
                                          STATEMENTS OF OPERATIONS
                                          ------------------------
                                                 (UNAUDITED)

                                                            THREE MONTHS ENDED         Six Months Ended
                                                                  JUNE 30,                  June 30,
                                                             1998         1997         1998         1997
                                                         -----------  -----------  -----------  -----------
<S>                                                      <C>          <C>          <C>          <C>
NET SALES                                                $        -   $1,638,161   $        -   $3,805,516
                                                         -----------  -----------  -----------  -----------

COSTS AND EXPENSES:
  Cost of sales                                                   -    1,811,689            -    3,988,917
  Selling, general and administrative expense                 3,562      336,726       18,844      702,300
  Interest expense                                                -       45,324            -      114,165
                                                         -----------  -----------  -----------  -----------
TOTAL COSTS AND EXPENSES                                      3,562    2,193,739       18,844    4,805,382
                                                         -----------  -----------  -----------  -----------

(LOSS) BEFORE EXTRAORDINARY ITEM
  AND INCOME TAXES                                           (3,562)    (555,578)     (18,844)    (999,866)
  Income tax expense                                              -            -            -            -
                                                         -----------  -----------  -----------  -----------

(LOSS) BEFORE EXTRAORDINARY ITEM                             (3,562)    (555,578)     (18,844)    (999,866)
  Extraordinary item -gain from extinguishment of debt            -            -            -      173,893
                                                         -----------  -----------  -----------  -----------

NET (LOSS)                                               $   (3,562)  $ (555,578)  $  (18,844)  $ (825,973)
                                                         ===========  ===========  ===========  ===========

WEIGHTED AVERAGE COMMON SHARES
  OUTSTANDING                                             7,002,964    7,002,964    7,002,964    7,002,964
                                                         ===========  ===========  ===========  ===========

(LOSS) PER COMMON SHARE
  (Loss) per share before extraordinary item             $        -   $     (.08)  $        -   $     (.14)
  Extraordinary item                                              -            -            -          .02
                                                         -----------  -----------  -----------  -----------

(LOSS) PER SHARE                                         $        -   $     (.08)  $        -   $     (.12)
                                                         ===========  ===========  ===========  ===========
</TABLE>

                       See notes to financial statements.


                                                                         Page 4.
<PAGE>
<TABLE>
<CAPTION>
                                 CHASE PACKAGING CORPORATION
                                 ---------------------------
                                  STATEMENTS OF CASH FLOWS
                                  ------------------------
                                         (UNAUDITED)

                                                                        Six  Months  Ended
                                                                             June 30,
                                                                       ---------------------
                                                                         1998        1997
                                                                       ---------  ----------
<S>                                                                    <C>        <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                             $(18,844)  $(825,973)
  Adjustments to reconcile net loss to net cash provided by operating
    activities:
      Gain on disposal of property and equipment                              -     (42,988)
      Depreciation and amortization                                           -     180,481
      Gain from extinguishment of debt                                        -    (173,893)
      Non-cash expenses                                                       -      62,428
  Change in assets and liabilities:
      Accounts receivable                                                57,012     499,413
      Inventories                                                             -     477,328
      Prepaid expenses                                                        -      66,225
      Accounts payable                                                     (647)   (161,906)
      Accrued liabilities                                                     -    (147,930)
      Advance billings                                                        -     (28,109)
                                                                       ---------  ----------
        NET CASH PROVIDED (UTILIZED) BY OPERATING ACTIVITIES             37,521     (94,924)
                                                                       ---------  ----------


CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital expenditures                                                        -    (113,360)
  Proceeds from sale of property and equipment                                -     886,250
  Other assets                                                                -         500
                                                                       ---------  ----------
        NET CASH PROVIDED BY INVESTING ACTIVITIES                             -     773,390
                                                                       ---------  ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Principal payments of debt obligations                                      -    (350,000)
  Net payments on line of credit                                              -    (348,187)
  Capital contributed                                                         -       9,318
                                                                       ---------  ----------
        NET CASH (USED IN) FINANCING ACTIVITIES                               -    (688,869)
                                                                       ---------  ----------

NET INCREASE (DECREASE) IN CASH                                          37,521     (10,403)
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD                       126,408      21,378
                                                                       ---------  ----------
CASH AND CASH EQUIVALENTS, AT END OF PERIOD                            $163,929   $  10,975
                                                                       =========  ==========
SUPPLEMENTAL CASH FLOW INFORMATION
  Cash paid during the period for:
    Interest                                                           $      -   $  94,156
</TABLE>

                       See notes to financial statements.


                                                                         Page 5.
<PAGE>

                           CHASE PACKAGING CORPORATION
                           ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 1998
                                  -------------
                                   (UNAUDITED)


NOTE 1  - BASIS  OF  PRESENTATION:

          On  June  25,  1997,  Chase  Packaging  Corporation  ("Chase"  or "the
          Company")  announced to employees and creditors that Chase would begin
          an orderly liquidation of all Chase's assets beginning at the close of
          business  on June 30, 1997. On July 25, 1997, the Company notified its
          creditors  by  mail  that  the  Company would commence with an orderly
          liquidation of all its remaining assets outside of a formal bankruptcy
          or  receivership  proceeding  in  a  manner intended to maximize asset
          values. The Company's Board of Directors determined that it was in the
          best  interest of the Company and all of its creditors to liquidate in
          an  orderly  fashion  and  this was completed as of December 31, 1997.

          As  previously  disclosed,  in  May 1996, a formal plan was adopted to
          reorganize TGC Industries, Inc. (TGC) and Chase. Pursuant to the plan,
          the  following  actions  were  taken:

          1.   TGC  liquidated  Chase  (Old Chase) with TGC receiving all of Old
               Chase's  assets  and liabilities in cancellation of the Old Chase
               stock  held by TGC. TGC formed a new wholly-owned subsidiary, New
               Chase,  and  transferred to it, all of the assets and liabilities
               received in the liquidation of Old Chase, except TGC retained the
               manufacturing  facility  located in Portland, Oregon and canceled
               Old  Chase's  note  payable  to  TGC.

          2.   TGC  contributed  $2,716,403  as additional capital to New Chase.

          3.   Effective  July  31,  1996,  TGC spun-off New Chase by a dividend
               distribution  to  the  stockholders  of  record of TGC common and
               preferred  stock. At the same time, the name was changed from New
               Chase  to  Chase  Packaging  Corporation.

          In  the  opinion  of  management,  the  accompanying unaudited interim
          condensed financial statements of the Company, contain all adjustments
          necessary (consisting of normal recurring accruals or adjustments only
          to present fairly the Company's financial position as of June 30, 1998
          and  the  results  of  its operations and cash flows for the six month
          periods  ended  June  30,  1998  and  1997.

          The  accounting policies followed by the Company are set forth in Note
          2  to the Company's financial statements included in its Annual Report
          on  Form  10-KSB  for  the  year  ended  December  31,  1997  which is
          incorporated  herein  by reference. Specific reference is made to this
          report  for a description of the Company's securities and the notes to
          consolidated  financial  statements.

          The results of operations for the six-month period ended June 30, 1998
          are  not  necessarily indicative of the results to be expected for the
          full  year.


                                                                         Page 6.
<PAGE>
                           CHASE PACKAGING CORPORATION
                           ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 1998
                                  -------------
                                   (UNAUDITED)


NOTE 2  - LOSS  PER  COMMON  SHARE:

          Loss  per  common  share  before  and after extraordinary gain for the
          three  and  six month periods were calculated by dividing net loss for
          the  period  by  the number of shares outstanding for the period ended
          June  30,  1998  and  1997.


NOTE 3  - EXTRAORDINARY  ITEM  -  GAIN  FROM  EXTINGUISHMENT  OF  DEBT:

          On  March  18,  1997,  TGC  sold  the  Portland,  Oregon  facility for
          $2,430,000  with  $1,780,000  of  the proceeds applied against Chase's
          outstanding  mortgage  indebtedness  to  Union  Camp  Corporation with
          respect  to  such facility. The $1,780,000 payment to Union Camp, when
          combined  with  a  principal payment of $350,000 made to Union Camp on
          January  7,  1997  from  the  sale  proceeds  of Chase's polypropylene
          weaving equipment, resulted in the Union Camp note being declared paid
          in  full  as  of  March  19, 1997. A gain from debt extinguishments of
          $173,893 was recognized in the 1997 first quarter as a result of these
          payments.  The  gain  consisted of $4,383 in principal and $169,510 in
          interest carried on the Company's financial statements and forgiven by
          Union  Camp. Due to the Company's net operating loss position there is
          no  income  tax  applicable  to  the  gain.


                                                                         Page 7.
<PAGE>
ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
          RESULTS  OF  OPERATIONS

          INTRODUCTION:

          Chase  Packaging Corporation (the Company) has experienced cash losses
          for  the  past  four  years  in spite of numerous infusions of working
          capital  and an aggressive program of inventory and expense reduction.
          During  1997,  the  Board  of  Directors  determined  that  an orderly
          liquidation  was  in  the  best interest of the Company and all of its
          creditors and retained the firm of Edward Hostmann, Inc. to assist the
          Company  in  such  liquidation.

          As  part  of  the  liquidation  progress, effective July 21, 1997, the
          Company  sold most of its assets in Idaho Falls, Idaho (excluding real
          estate)  to  Lockwood  Packaging Corporation for $330,000. The Company
          also sold the Idaho Falls real estate (land and building). During July
          and  August  of  1997  Chase sold most of its inventory in Portland to
          other  packaging  companies.  The  Company  also  sold  its band label
          extruder  for  $125,000  with  remaining  inventory  and machinery and
          equipment  sold  at  an  August  14  auction  for  gross  proceeds  of
          approximately  $340,000.  As  of  December  31,  1997, the Company had
          completed  the  liquidation  of  all  of  its  assets.


          RESULTS  OF  OPERATIONS:

          As  a result of the cessation of operations and the liquidation of its
          assets  as  discussed above, the Company generated no revenues for the
          three  and  six  month  periods  ended  June  30, 1998. Administrative
          expenses  incurred  during  the three and six month periods aggregated
          $3,562 and $18,844, respectively, which amounts represent the loss for
          the respective periods. Revenues generated for the three and six month
          periods  ended  June  30,  1997  were  $1,638,161  and  $3,805,516,
          respectively.  Total  costs  and  expenses  for the three month period
          ended June 30, 1997 was $2,193,739 and the Company reflected a loss of
          $555,578  for  that period. Total costs and expenses for the six month
          period  ended June 30, 1997 was $4,805,382 and the Company reflected a
          loss of $825,973 for that period after recording an extraordinary gain
          of  $173,893  due  to  the  extinguishment  of  debt.

          FINANCIAL  CONDITION:

          As  a  result of the liquidation completed in 1997, the Company's cash
          balance  as  of June 30, 1998 was $163,929. These remaining funds will
          be  used to pay continuing expenses, professional fees incurred by the
          trustee  and  any  remaining  unsecured  creditors.  Although  it  is
          difficult  to  determine  the final return to unsecured creditors from
          such  liquidation,  the  Company  estimates  at  the present time that
          general  creditors will receive a distribution equal to ten to fifteen
          percent  (10-15%)  of  each  creditor's  claim.


                                                                         Page 8.
<PAGE>
                           PART II. OTHER INFORMATION


Item  1.  Legal  Proceedings

          None

Item  2.  Changes  in  Securities

          None

Item  3.  Defaults  upon  Senior  Securities

          None

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

          None

Item  5.  Other  Information

          None

Item  6.  Exhibits  and  Reports

     (a)  Exhibits

          None


                                                                         Page 9.
<PAGE>
                                   SIGNATURES



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



                                        CHASE  PACKAGING  CORPORATION
                                        -----------------------------





                                        -----------------------------
Date:  May  6,  2002                    Ann  W.  Green
                                        (Assistant  Secretary
                                        and  Principal  Financial  and
                                        Accounting  Officer)


                                                                        Page 10.
<PAGE>