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  March  31,  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  March  31,  1998
-----------------------     --------------------------------------------
Common  Stock,  par
value  $.10  per  share                  7,002,964  shares

<PAGE>

                                    - INDEX -

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

ITEM  1.    Financial  Statements

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

            Condensed  Statements  of  Operations  (Unaudited)  -  Three
            Months  Ended  March  31,  1998  and  1997                        4.

            Condensed  Statements  of  Cash  Flows  (Unaudited)  -
            Three  Months  Ended  March  31,  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>
PART  I.     FINANCIAL  INFORMATION:

ITEM  I.     FINANCIAL  STATEMENTS:

<TABLE>
<CAPTION>


                            CHASE PACKAGING CORPORATION
                            ---------------------------
                             CONDENSED BALANCE SHEETS
                             ------------------------

                              -  ASSETS  -

                                                           March       December
                                                          31, 1998     31, 1997
                                                        -----------  ------------
(UNAUDITED)
<S>                                                          <C>           <C>
CURRENT ASSETS:
     Cash and cash equivalents                          $   164,046   $   126,408
     Accounts receivable                                      3,445        57,012
                                                        ------------  ------------
TOTAL ASSETS                                            $   167,491   $   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                                   (3,603,681)   (3,588,399)
                                                        ------------  ------------
                                                             10,822        26,104
                                                        ------------  ------------

                                                        $   167,491   $   183,420
                                                        ============  ============

</TABLE>


                       See notes to financial statements.
                                                                      Page  3.


<PAGE>



                           CHASE PACKAGING CORPORATION
                           ---------------------------
                            STATEMENTS OF OPERATIONS
                            ------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>



                                                             Three  Months  Ended
                                                                  March  31,
                                                          -------------------------

                                                              1998         1997
                                                          ------------  -----------
<S>                                                       <C>           <C>
NET SALES                                                 $      -      $2,167,355
                                                          ------------  -----------

COSTS AND EXPENSES:
Cost of sales                                                       -    2,177,228
Selling, general and administrative expense                    15,282      365,574
Interest expense                                                    -       68,841
                                                          ------------  -----------
TOTAL COSTS AND EXPENSES                                       15,282    2,611,643
                                                          ------------  -----------

(LOSS) BEFORE EXTRAORDINARY ITEM
  AND INCOME TAXES                                            (15,282)    (444,288)
   Income tax expense                                               -            -
                                                          ------------  -----------

(LOSS) BEFORE EXTRAORDINARY ITEM                              (15,282)    (444,288)
   Extraordinary item -gain from extinguishment of debt             -      173,893
                                                          ------------  -----------

NET (LOSS)                                                $   (15,282)  $ (270,395)
                                                          ============  ===========


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

(LOSS) PER COMMON SHARE
  (Loss) per share before extraordinary item              $         -   $     (.06)
  Extraordinary item                                                -          .02
                                                          ------------  -----------

(LOSS) PER SHARE                                          $         -   $     (.04)
                                                          ============  ===========


</TABLE>

                       See notes to financial statements.
                                                                     Page  4.
<PAGE>


                           CHASE PACKAGING CORPORATION
                           ---------------------------
                            STATEMENTS OF CASH FLOWS
                            ------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>


                                                                    Three  Months  Ended
                                                                          March  31,
                                                                         -----------

                                                                       1998        1997
                                                                     ---------  ----------
<S>                                                                       <C>        <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES:
 Net loss                                                             $(15,282)  $(270,395)
 Adjustments to reconcile net loss to net cash provided by operating
  activities:
 Gain on disposal of property and equipment                                  -     (71,241)
 Depreciation and amortization                                               -      96,287
 Gain from extinguishment of debt                                            -    (173,893)
 Non-cash expenses                                                           -      62,428
Change in assets and liabilities:
 Accounts receivable                                                    53,567     347,782
 Inventories                                                                 -     296,512
 Prepaid expenses                                                            -      23,847
 Accounts payable                                                         (647)   (304,596)
 Accrued liabilities                                                         -      16,788
 Advance billings                                                            -       6,647
                                                                      ---------  ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES                               37,638      30,166
                                                                      ---------  ----------


CASH FLOWS FROM INVESTING ACTIVITIES:
 Capital expenditures                                                        -     (43,876)
 Proceeds from sale of property and equipment                                -     886,250
 Other assets                                                                -         500
                                                                      ---------  ----------
NET CASH PROVIDED BY INVESTING ACTIVITIES                                    -     842,874
                                                                      ---------  ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
 Principal payments of debt obligations                                      -    (350,000)
 Net payments on line of credit                                              -    (535,310)
 Capital contributed                                                         -       9,318
                                                                      ---------  ----------
NET CASH (USED IN) FINANCING ACTIVITIES                                      -    (875,992)
                                                                      ---------  ----------

NET INCREASE (DECREASE) IN CASH                                         37,638      (2,952)
CASH AND CASH EQUIVALENTS, AT BEGINNING OF PERIOD                      126,408      21,378
                                                                      ---------  ----------
CASH AND CASH EQUIVALENTS, AT END OF PERIOD                           $164,046   $  18,426
                                                                      =========  ==========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the period for:
Interest                                                              $      -   $  48,831

</TABLE>


                       See notes to financial statements.
                                                                      Page  5.
<PAGE>

                           CHASE PACKAGING CORPORATION
                           ---------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                 MARCH 31, 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  March  31, 1998 and the results of its operations and cash flows for the
three  month  periods  ended  March  31,  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 three-month period ended March 31, 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
                          -----------------------------
                                 MARCH 31, 1998
                                 --------------
                                   (UNAUDITED)


NOTE   2   -     LOSS  PER  COMMON  SHARE:

Loss  per  common  share before and after extraordinary gain for the three month
periods  were  calculated  by  dividing net loss for the period by the number of
shares  outstanding  for  the  period  ended  March  31,  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 month period
ended  March  31,  1998.  Administrative  expenses  incurred  during the current
period  aggregated  $15,282 and the Company realized a net loss during the March
31, 1998 period of $15,282.  Revenues generated for the three month period ended
March  31,  1997  were  $2,167,355.  Total costs and expenses for the March 1997
period were $2,611,643.  During the three month period ended March 31, 1997, the
Company  recorded an extraordinary gain of $173,893 due to the extinguishment of
debt  and  reflected  a  net  loss  for  that  period  of  $270,395.


FINANCIAL  CONDITION:

As  a result of the liquidation completed in 1997, the Company's cash balance as
of  March  31,  1998  was  $164,046.  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


                                                                     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)