U.S. 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 or

Transition report pursuant to section 13 or 15(d) or the Securities Exchange Act of 1934

FOR THE QUARTER ENDED SEPTEMBER 30, 2001

Commission File Number 0-6580
(Exact name of small business issuer as specified in its charter)

Nevada
(State or other jurisdiction of
incorporation or organization)

87-0285520
(I.R.S. Employer
Identification Number)

743 Horizon Court, Suite 333
Grand Junction, Colorado 81506
(Address of Principal executive offices)

          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 past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.    Yes   X   No

          As of November 19, 2001 the registrant had 2,939,815 shares of its $0.10 par value Common
Stock issued and outstanding.

TABLE OF CONTENTS

PART I - Financial Information	Page Number
Item 1. Unaudited Financial Statements
Consolidated Balance Sheets as of September 30, 2001 and December 31, 2000	3
Consolidated Statements of Operations For the Three And Nine Months Ended September 30, 2001 and 2000	4
Consolidated Statements of Cash Flows For the Three and Nine Months Ended September 30, 2001 and 2000	5
Notes to Consolidated Financial Statements	6-8
Item 2. Mgt's Discussion & Analysis of Financial Condition & Results of Operations
Liquidity, Capital Expenditures and Capital Resources	9
Results of Operations	10
Overview	10
Oil and Gas	10-12
General and Administrative	12
Depreciation, Depletion and Amortization	12-13
Impairment of Oil and Gas Properties	13
Interest Expense	13
Disclosure Regarding Forward-Looking Statements	14
PART II - Other Information
Item 1. Legal Proceedings	14
Item 2. Changes in Securities	14
Item 3. Defaults Upon Senior Securities	15
Item 4. Submission of Matters to a Vote of Security Holders	15
Item 5. Other Information	15
Item 6. Exhibits and Reports on Form 8-K	16
PART III - Signatures	16

	September 30,	December 31,
ASSETS	2001	2000
CURRENT ASSETS:
Cash and equivalents	$ 862,872	$ 1,407,769
Trade receivables, net	265,540	634,107
Prepaid expenses and other	76,625	60,144
Total current assets	1,205,037	2,102,020
OIL AND GAS PROPERTIES, at cost (full cost method):
Unevaluated properties	2,072,559	2,600,657
Costs being amortized	22,328,580	19,539,376
Total oil and gas properties	24,401,139	22,140,033
Less accumulated amortization	(17,577,607)	(15,866,536)
Net oil and gas properties	6,823,532	6,273,497
OTHER ASSETS:
Office equipment and vehicle	112,575	230,624
Less accumulated depreciation	(94,525)	(195,508)
Net office equipment and vehicle	18,050	35,116
Note receivable, net	-	90,000
Debt issuance and debt restructuring costs	72,868	46,079
Deposits	300	4,995
Total other assets	91,218	176,190
TOTAL ASSETS	$ 8,119,787	$ 8,551,707


LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt:
Convertible Debenture, net	$ -	$ 308,387
Other	7,395	6,873
Accounts payable, trade	169,250	328,744
Accrued preferred stock dividends	77,737	-
Accrued expenses	85,442	77,882
Total current liabilities	339,824	721,886
LONG-TERM DEBT, less current maturities:	2,649,373	2,410,525
Total liabilities	2,989,197	3,132,411
REDEEMABLE PREFERRED STOCK:
Series C Preferred Stock, par value $0.01 per share, 99,503 shares
authorized, issued and outstanding (redeemable for $3,316,767
and a Liquidation Preference of $5,037,339 at September 30, 2001).	4,975,150	4,975,150
OTHER STOCKHOLDERS' EQUITY:
Undesignated Preferred Stock, par value $0.01 per share, 2.0 million
shares authorized, of which 1,395,000 have been retired,
and 99,503 have been designated as Series C.	-	-
Common Stock, par value $0.10 per share, 4,000,000 shares
authorized, 2,939,815 and 1,924,398 shares issued and
outstanding, respectively.	293,981	192,440
Additional paid-in capital	32,925,946	32,519,779
Accumulated deficit	(33,064,487)	(32,268,073)
Total Other Stockholders' Equity	155,440	444,146
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 8,119,787	$ 8,551,707

	For the Three Months		For the Nine Months
	Ended September 30,		Ended September 30,
	2001	2000	2001	2000
REVENUE:
Oil and gas sales	$ 487,289	$ 1,005,474	$ 2,080,301	$ 2,633,412
OPERATING COSTS AND EXPENSES:
Oil and gas production costs	100,241	79,050	349,214	397,949
General and administrative	183,732	130,950	555,393	476,421
Depreciation, depletion and	288,219	255,592	795,359	763,380
Impairment of oil and gas properties	928,000	-	928,000	-
Total operating costs and expenses	1,500,192	465,592	2,627,966	1,637,750
INCOME (LOSS) FROM OPERATIONS	(1,012,903)	539,882	(547,665)	995,662
OTHER INCOME (EXPENSES):
Loss on sale of assets	(4,223)	-	(4,223)	-
Interest and other income	6,725	18,592	34,658	39,359
Interest expense	(11,217)	(89,788)	(139,258)	(269,718)
NET INCOME (LOSS)	(1,021,618)	468,686	(656,488)	765,303
PREFERRED STOCK DIVIDEND CHARGES	(46,642)	(66,504)	(139,926)	(198,066)
NET INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS	$(1,068,260)	$ 402,182	$ (796,414)	$ 567,237
BASIC:
Earnings Per Share	$ ( 0.36)	$ 0.23	$ (0.34)	$ 0.33
Weighted Average Shares Outstanding	2,938,619	1,731,398	2,341,358	1,731,398
DILUTED:
Earnings Per Share	$ (0.36)	$ 0.03	$ (0.34)	$ 0.04
Weighted Average Shares Outstanding	2,938,619	17,264,316	2,341,358	17,264,316

	For the Nine Months
	Ended September 30,
	2001	2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss)	$ (656,488)	$ 765,303
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	795,359	763,380
Impairment of oil and gas properties	928,000	-
Amortization of debt discount and issuance costs	138,368	268,181
Loss on sale of assets	4,223	-
Changes in operating assets and liabilities:
(Increase) decrease in:
Trade receivables	368,567	11,844
Prepaid expenses and other assets	(11,786)	2,257
Increase (decrease) in:
Accounts payable	(25,205)	(19,974)
Accrued expenses	7,560	(36,273)
Net cash provided by operating activities	1,548,598	1,754,718
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures for property, plant and equipment	(2,394,841)	(885,809)
Proceeds from redemption of Certificate of Deposit	-	15,000
Net cash used in investing activities	(2,394,841)	(870,809)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants	502,709	-
Proceeds from exercise of options	5,000	-
Proceeds from note receivable	90,000	-
Repayment of long-term debt	(142,130)	(4,483)
Deferred debt restructuring costs	(92,044)	-
Payment of preferred stock dividends	(62,189)	-
Net cash provided by (used in) financing activities	301,346	(4,483)
INCREASE (DECREASE) IN CASH AND EQUIVALENTS	(544,897)	879,426
CASH AND EQUIVALENTS, beginning of period	1,407,769	724,354
CASH AND EQUIVALENTS, end of period	$ 862,872	$ 1,603,780
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest	$ 148,646	$ 209,846
Cash paid for income taxes	$ -	$ -
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
(Decrease) increase in accounts payable for oil & gas activities	$ (133,736)	$ 114,497

Effective July 11, 2001, the Company's stockholders approved, among other things, a change in the
Company's name from Pease Oil and Gas Company to Republic Resources, Inc. (hereafter referred
to as the "Company").

Note 2 - Basis of Presentation:

The accompanying unaudited condensed consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial information.  They do
not include all information and notes required by generally accepted accounting principles for complete
financial statements.  However, except as disclosed herein, there has been no material change in the
information disclosed in the notes to consolidated financial statements included in our Annual Report
on Form 10-KSB for the year ended December 31, 2000.  In our opinion, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have been included.
Operating results for the periods presented are not necessarily indicative of the results that may be
expected for the full year.

The accounting policies we followed are set forth in Note 1 to our financial statements in Form 10-KSB
for the year ended December 31, 2000.  We suggest that these financial statements be read in
conjunction with the financial statements and notes included in the Form 10-KSB.

Note 3 - Debt Financing Arrangements:

          Long-Term Debt - Long-term debt consists of the following:

	September 30,	December 31,
	2001	2000
Convertible debentures, interest at 11%, Original maturity April 2001, senior and unsecured	$ 2,645,500	$ 2,782,500
Less unamortized discount	-	(73,113)
Net carrying value	2,645,500	2,709,387
Note payable to bank, interest at 8.5%, monthly payments of $669, due March 2003, collateralized by a vehicle	11,268	16,398
Total long-term debt	2,656,768	2,725,785
Less current maturities, net of unamortized discount	(7,395)	(315,260)
Long-term debt, less current maturities	$ 2,649,373	$ 2,410,525

When the Company filed its Annual Report on Form 10-KSB on April 16, 2001, we had reported
that approximately 86%, or $2,401,000, of the outstanding debentures had been restructured.  These
debenture holders agreed to extend their maturity date for two years, from April 15, 2001 to April
15, 2003, in exchange for: a) lowering the conversion rate from $30.00 to $1.75 per share; and b)
increasing the interest rate from 10% to 11% per annum.  Subsequent to April 16, 2001, an additional
$244,500 of the debentures were restructured under the same terms and the remaining balance of
$137,000 was paid in full.  Interest  will continue to be due and payable on the restructured debenture
on a quarterly basis.  The new conversion rate of $1.75 represented the current market rate of the
Company's common stock on the date the restructuring plan was accepted by the majority of the
debenture holders and formally committed to by the Board of Directors.  In addition, the Company
agreed that, subject to certain exceptions, it is prohibited from incurring indebtedness that is senior to
the Debentures so long as they are outstanding.

The balance of the debentures that were restructured have been classified as long-term debt on the
December 31, 2000 and September 30, 2001 balance sheets in accordance with SFAS No. 6 titled
"Classification of Short-Term Obligations Expected to be Refinanced".

Note 4 - Preferred Stock:

The Company was authorized to issue up to 2,000,000 shares of Preferred Stock of which 1,395,000
shares were retired as of September 30, 2001.  The remaining 605,000 shares of Preferred Stock may
be issued in such series and with such preferences as determined by the Board of Directors.

In December 1997, the Board of Directors "designated" 145,300 shares as the Series B 5% PIK
Cumulative Convertible Preferred Stock (the "Series B Preferred Stock") and on December 31, 1997,
the Company issued 113,333 shares of Series B Preferred Stock for $5,666,650.

The Series B Preferred Stock was convertible into common stock at a 25% discount to the market price.
This discount feature became hyper-dilutive when the common stock price decreased beginning shortly
after its issuance in December 1997. Based on the average price of the common stock during the first six
months of 2000, the outstanding Series B could have been converted into approximately 16.4 million
shares of common, or over 90% of the common equity after a conversion.

In November 2000, six institutional holders, holding approximately 94% of the Series B preferred stock
with a stated value of over $4.97 million, exchanged their Series B for a new class of non-voting,
non-convertible, preferred stock designated as the "Series C" Preferred stock. The Series C Preferred
must be redeemed, at its stated value, on December 31, 2005. However, the Company may, at its
election, redeem the Series C at a 33% discount (or approximately $3.31 million if all of it is redeemed),
either in whole or in part, through December 31, 2003. The Company redeemed the remaining 6% of the
Series B Preferred at a 33% discount, or $210,833.  Therefore, as of the date of this report, there is no
outstanding hyper-dilutive Series B Preferred Stock.

In connection with this restructuring, all the holders of the Series B Preferred stock waived all of the
dividends in arrears (the Company had not paid any dividends on the Series B Preferred stock since
September 1, 1999). The Series C Preferred Stock will receive dividends at a rate of 5% per annum.
These dividends started to accrue on April 1, 2001 and the first dividend was paid in July 2001.

In November 2001, with the unanimous approval of all the Preferred Stockholders, the Series C
Certificate of Designation was amended to provide for the deferment of any future dividend payment
until such time the Preferred Stock is redeemed.  Accordingly, the dividend for the period ending
September 30, 2001 was not paid but has been accrued as a liability in the accompanying financial
statements.  The Company does not expect to declare and pay any of the Series C Preferred Stock
dividends in the foreseeable future but will continue to accrue them on a quarterly basis.

As an inducement for the Series B Preferred stockholders to restructure their investment and grant a
discounted redemption feature, the Company issued warrants to acquire up to 1,763,800 shares of
common stock exercisable at $0.50 per share. During the second quarter of 2001, warrants to acquire
1,005,417 of these shares were exercised generating proceeds of $502,709.  The remaining unexercised
warrants will expire on December 31, 2003.

Note 5 - Net Income Available to Common Stockholders:

The net income available to common stockholders is determined by deducting any dividends accruing to
the benefit of the preferred stockholders from our net income.  Accordingly, a reconciliation of net
income available to common stockholders is as follows:

	For the Three Months		For the Nine Months
	Ended September 30,		Ended September 30,
	2001	2000	2001	2000
Net Income (Loss)	$(1,021,618)	$468,686	$(656,488)	$ 765,303
Dividends Paid for the Series C Pfd Stock	-	-	(62,189)	-
Dividends in Arrears for the Series C Pfd Stock	(46,642)	-	(77,737)	-
Dividends in Arrears for the Series B Pfd Stock	-	(66,504)	-	(198,066)
Net Income (Loss) Available to Common Stockholders	$(1,068,260)	$402,182	$(796,414)	$ 567,237

The dividends in arrears at September 30, 2000 have been included for purposes of determining the net
income available to common stockholders for those periods presented even though they were
subsequently waived in connection with the preferred stock restructuring discussed in Note 4.

Note 6 - Earnings Per Common Share:

The Company follows SFAS No. 128 "Earnings Per Share". Accordingly, "basic" earnings per common
share is computed by dividing income available to common stockholders (the "numerator") by the
weighted-average number of common shares outstanding (the "denominator") during the periods
presented. "Diluted" earnings per common share reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or converted into common stock.
A reconciliation of the components of basic and diluted net income per common share for the periods
presented is as follows:

For the three and nine months ending September 30, 2000, the "diluted" earnings per common share
assumes that the Series B preferred stock, which was restructured in November 2000, was converted into
common stock using an assumed conversion price of $0.3281 per share (this represents the price the
Series B preferred stock could have been converted into using the market price of the common stock on
September 30, 2000).

None of the Company's potential dilutive options or warrants are included for purposes of calculating
"diluted" earnings per share in 2001 since the affect of including them would have been anti-dilutive.

The Company's Debentures outstanding at September 30, 2001, are convertible into approximately 1.5
million common shares at a price of $1.75 per share. However, those shares have been excluded from
the calculation of "diluted" earnings per share since the affect of including them would have been
anti-dilutive.

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

LIQUIDITY, CAPITAL EXPENDITURES AND CAPITAL RESOURCES

At September 30, 2001, our cash balance was $862,872 with a positive working capital position of
$865,213, compared to a cash balance of $1,407,769 and a positive working capital position of
$1,380,134 at December 31, 2000. The change in our cash balance is summarized as follows:

We were able to generate positive cash flow from operating activities of $1,548,598 during the first nine
months of 2001 principally due to the favorable oil and gas prices being enjoyed this year. As discussed
more thoroughly later in the Results of Operations section under the caption "Oil and Gas", the average
prices received by the Company during the first nine months of 2001 were $26.49 per bbl of oil and
$5.09 per Mcf of natural gas. In addition, the Company received proceeds aggregating $507,709 when
warrants and options to exercise approximately 1.0 million shares of common stock were exercised
during the second and third quarters of 2001. As a word of caution, the oil and gas prices being
received by the Company as of the date of this report (which is approximately $17.00 per bbl of oil and
$2.50 per Mcf of gas) is significantly lower than those received during the first nine months of 2001.
Accordingly, we expect our future cash flows, at least in the near term, to be significantly lower than the
monthly average was for the first nine months of 2001.

The costs incurred for our oil and gas activities for the first nine months of 2001 are summarized as follows
(the $133,736 difference between the total cash paid for exploration activities in the above table and the
amount presented below, represents the net decrease in accounts payable for the exploration activities
between December 31, 2000 and September 30, 2001):

				Internal
Category:	Program Operator			& Other
Category:	NEG	Parallel	AHC	Costs	Total	%
Acquisition of unproved properties	$ 3,727	$ 105,149	$ 11,297	$104,851	$ 225,024	10%
Exploration costs	-	1,001,734	442,204	127,844	1,571,782	70%
Development & workovers	242,661	7,651	-	-	250,312	11%
Capitalized interest	-	-	-	213,987	213,987	9%
Total	$246,388	$1,114,534	$453,501	$446,682	$2,261,105	100%
Percent	11%	49%	20%	20%	100%

A description of the areas we have an oil and gas interest in are more thoroughly discussed in our 2000
Annual Report on Form 10-KSB.  In addition to those properties, in 2001 the Company acquired certain
interests in approximately 26,000 gross undeveloped acres (9,000 net) in three separate prospect areas
in the state of Utah.  These prospects target various oil and gas objectives ranging in depth from 4,800 ft.
to 15,000 ft.  The Company expects to drill at least one exploratory well on this acreage, targeting a
shallow oil objective, sometime during the fourth quarter of 2001.  Regarding the deeper more
expensive objectives, the Company will attempt to farm-out, or otherwise promote, those prospects to
other parties in order to mitigate the corresponding financial risk associated with exploration activities.

With the exception of the prospects located in Utah, we are a non-operator in the areas in which we hold
an oil and gas interest.  Accordingly, we do not control the timing of any development or exploration
activities and therefore have little control over the corresponding required cash outlays.  However, we
currently expect the expenditures that will be proposed by the respective operators and by ourselves for
the new Utah properties to be within the following ranges through the first quarter of 2002:

		Estimated Investment
Area	Operator	Minimum	Maximum
Formosa, Texana, & Ganado	Parallel Petroleum, Inc. ("Parallel")	$ 350,000	$ 700,000
East Bayou Sorrel	National Energy Group, Inc. ("NEG")	150,000	400,000
Maurice Prospect	Amerada Hess Corporation ("AHC")	-	100,000
Utah Prospects	Republic Resources, Inc. (the "Company")	100,000	400,000
Total		$ 600,000	$ 1,600,000

In addition, the Company is currently evaluating other prospects and exploration opportunities which,
if pursued, would require even more capital. The Company's future success will depend upon its ability
to continually find or acquire additional oil and natural gas reserves.  Consequently, the pursuit of
additional reserves will require the Company to make substantial capital expenditures.  Currently, the
only source of capital the Company has to fund any of its oil and gas activities is through the existing
working capital and future operating cash flows.  The Company does not believe these resources alone
will be sufficient to fund all of the necessary and anticipated future oil and gas activities.  Should this be
the case, we may: a) seek additional financing, the source or terms which is currently unknown; b)
pursue a merger acquisition or other business combination transaction; c) sell existing assets; or d) elect other alternatives including: farming out of specific projects to another party, establishing a joint venture for a particular project, or opting out of a proposed operation or activity.

RESULTS OF OPERATIONS

Overview

Our largest source of operating revenue is from the sale of produced oil, natural gas, and natural gas
liquids. The level of our revenues and earnings are affected by prices at which natural gas, oil and
natural gas liquids are sold. Therefore, our operating results for any prior period are not necessarily
indicative of future operating results because of the fluctuations in price and production levels.

Oil and Gas

Operating statistics for oil and gas production for the periods presented are as follows:

Production:	For the Three Months		For the Nine Months
	Ended September 30,		Ended September 30,
	2001	2000	2001	2000
Oil (bbls)	10,300	21,200	29,000	67,100
Gas (Mcf)	68,700	81,800	258,000	183,800
BOE (6:1)	21,800	34,900	72,000	97,800

Average Sales Price:
Oil (per bbl)	$ 25.29	$ 30.36	$ 26.49	$ 28.70
Gas (per Mcf)	3.30	4.42	5.09	3.84
Per BOE (6:1)	22.35	28.81	28.89	26.93

Operating Margins:
Revenue -
Oil	$ 260,534	$ 643,788	$ 768,181	$1,927,011
Gas	226,755	361,686	1,312,120	706,401
Total Revenue	$ 487,289	$1,005,474	$2,080,301	$2,633,412

Costs -
Lifting Costs	(55,316)	(67,309)	(183,044)	(208,086)
Production taxes	(44,925)	(11,741)	(166,170)	(189,863)
Total Costs	(100,241)	(79,050)	(349,214)	(397,949)
Operating Margin	$ 387,048	$ 926,424	$1,731,087	$2,235,463
Operating Margin Percent	79%	92%	83%	85%

Production Costs per BOE before DD&A	$ 4.60	$ 2.27	$ 4.85	$ 4.07

Change in Revenue Attributable to :
Production	$ (388,826)		$ (808,572)
Price	(129,359)		255,431
Net Decrease in Revenue	$ (518,185)		$ (553,141)

Comparison of Oil and Gas Production for the Three Months Ended September 30, 2001 & 2000:

The Company's oil production decreased by 10,900 bbls and the Company's gas production
decreased 13,100 Mcf for the three months ended September 30, 2001, when compared to the
same period in 2000, primarily because: a) the Schwing # 1 well, located in the East Bayou Sorrel
field, has not produced since December 2000; and b) the R. Trahan #1, located in the Maurice field,
is experiencing a natural decline in production.  The R. Trahan #1 produced, net to the Company,
36,435 Mcf for the three months ended September 30, 2000 compared to 8,774 Mcf for the same
period in 2001.  For the three months ended September 30, 2000, the Company's proportionate share
of production from the Schwing # 1 was 11,388 bbls of oil and 11,598 Mcf of gas - representing 54%
of the Company's oil production and 14% of the Company's total gas production for that quarter.
The Schwing # 1 has been shut in due to apparent formation problems that started in September 2000,
when sand began showing up in the production fluids.  At that time, in order to mitigate the sand, NEG
(the operator of the well) cut the production rate back to approximately 500 bbls per day and 500 Mcf
per day.  The well produced at that level until late December 2000 when the sand emulsion reappeared
and production ceased.  Remedial efforts, utilizing coiled tubing, were attempted to clean out the well
bore and restore production, however, those efforts failed.

The Company believes the well should be sidetracked to an up-dip location in the productive reservoir.
This procedure, if successful, would accomplish two objectives: 1) it would place the new bottom hole
location away from the apparently damaged producing interval; and 2) it would relocate the "take point"
of this reservoir to an up-dip location to recover the "attic" oil that could not have been recovered from
the present bottom hole location even if the well bore had not sanded up.  However, NEG proposed
another procedure that the Company disagreed with, and as a result, we elected not to participate in
that particular procedure.  That procedure is currently underway, and if successful, the Company would
incur a 400% penalty of the costs incurred to perform that procedure prior to being able to participate
in future production.  However, should the current procedure fail and should NEG propose another
remedial procedure, such as sidetracking to an up-dip location, the Company would have the right to
participate on a heads-up basis and would not be obligated for, or penalized for, any of the costs
incurred on the previous procedure.

Some of the net gas production lost from the Schwing #1 and the R. Trahan #1 has been offset by the
discovery wells in Jackson County, Texas.  These wells were completed during the last half of 2000 and
the first half of 2001 and collectively produced over 37,268 net Mcf during the third quarter of 2001.

Comparison of Oil and Gas Production for the Nine Months Ended September 30, 2001 & 2000:

The Company's oil production decreased by 38,100 bbls for the nine months ended September 30,
2001, when compared to the same period in 2000, primarily because the Schwing # 1 has been shut
in for all of 2001. During the first nine months of 2000, the  Schwing # 1 produced 38,041 net bbls
of oil and 38,136 net Mcf of gas representing 57%of the Company's oil production and 21% of
the Company's gas production for that period.

The Company's net gas production increased 74,200 Mcf for the nine months ended September 30,
2001, when compared to the same period in 2000, as a result of the discovery wells in Jackson County,
Texas, that have been completed since the third quarter of last year. These wells collectively produced
over 171,889 net Mcf during the first nine months of 2001 representing over 67% of the Company's
net gas production this year.

Comparison of Oil and Gas Revenue for the Three Months Ended September 30, 2001 & 2000:

Oil and gas revenue for the three months ended September 30, 2001, when compared to the same
period in 2000, decreased by $518,185.  This change in total revenue is attributable to a $388,826
decrease associated with a loss of production, as discussed above, and a decrease of $129,355
associated with lower oil and gas prices in 2001.  We received an average price of $3.30  per Mcf
of gas during the third quarter of 2001 compared to $4.42 per Mcf for the same period in 2000 -
representing a $1.12, or 25%, decrease per Mcf in 2001.  We received  an average price of $25.29
per bbl of oil during the third quarter of 2001 compared to $30.36 for the same period in 2000 -
representing a $5.07, or 17% decrease per bbl in 2001.

Comparison of Oil and Gas Revenue for the Nine Months Ended September 30, 2001 & 2000:

Oil and gas revenue for the nine months ended September 30, 2001, when compared to the same
period in 2000, decreased by $553,111.  This change in total revenue is attributable to a $808,542
decrease associated with loss of production, as discussed above, that was largely offset by a price
increase of $255,431 primarily associated with higher natural gas prices received in 2001.  We
received an average price of $5.09 per Mcf of gas during the first nine months of 2001 compared to
$3.84 for the same period in 2000 - representing a $1.25, or 34%, increase per Mcf in 2001.  We
received an average price of $26.49 per bbl of oil during the first nine months of 2001 compared to
$28.70 for the same period in 2000 - representing $2.21, or 8%, decrease per bbl in 2001.

Drilling Results in 2001:

An exploratory well that commenced drilling in October 2000 in our Maurice prospect area, located
in Lafayette Parish, Louisiana, logged more than 67-ft of apparent net pay in five sand intervals. During
the second quarter of 2001, this well was completed and tested at an initial rate of 7,200 Mcf and 300
bbls of condensate per day. However, shortly after the well was placed on production, the flowing
tubing pressure began rapidly declining and indicating either a smaller than anticipated reservoir and/or
possible depletion in that sand interval.  In addition, the well began producing heavy volumes of water
indicating a potential faulty completion.  This well is currently being evaluated and it cannot be
determined at this time what future economic benefit, if any, this well will ultimately provide.  The
Company has a 9.5% working interest in this well.  The Company incurred over $440,000 in costs in
this well during 2001 through September 30^th.

This year, through the date of this report, we have participated in the drilling of eight (8) exploratory
wells located in or around Jackson County, Texas, within the prospect areas operated by Parallel. Of
these eight(8)  wells, two (2) have been deemed commercially productive with economic reserves,
and six (6) wereessentially dry.  The costs incurred by the Company this year for all these wells has
been approximately $1.0 million through September 30, 2001.

Comparison of Production Costs for the Three Months Ended September 30, 2001 and 2000:

Lifting costs decreased by $11,993 during the three months ended September 30, 2001, when compared
to the same period in 2000, primarily because the Schwing #1 was shut-in during 2001 and the
corresponding production costs were not incurred.

Production taxes increased $33,184 during the three months ended September 30, 2001, when compared
to the same period in 2000, primarily because the Company received a one time credit in the third
quarter of 2000 on accrued but unpaid taxes from the State of Louisiana (through AHC, the operator).
This credit was for $59,848 representing severance tax relief associated with the wells located in the
Maurice field. Without this one time credit to offset the third quarters production taxes in 2000, the
overall costs incurred would have been higher when compared to the same period in 2001 because a
substantial portion of the production taxes are based on the revenue generated and not on volume
produced.

Comparison of Production Costs for the Nine Months Ended September 30, 2001 and 2000:

Lifting costs decreased by $25,042 during the nine months ended September 30, 2001, when compared
to the same period in 2000, primarily because the Schwing #1 was shut-in during 2001 and the
corresponding production costs were not incurred.

Production taxes decreased $23,693 during the first nine months of 2001, when compared to the same
period in 2000, primarily because the total severance tax for our oil revenue was less in 2001 because of
the net decrease in oil production.  Our average severance tax burden is approximately 12% for oil
revenue and approximately 6% for gas revenue.  Accordingly, since our oil revenue, which has the
higher severance tax burden, was down during 2001, the corresponding severance tax liability was also
down.

General and Administrative

Total general and administrative ("G&A") expenses increased $52,782 for the three months ended
September 30, 2001 when compared to the same period in 2000 and increased $78,972 for the nine
months ended September 30, 2001 when compared to the same period in 2000. This increase is
substantially attributable to costs incurred for: a) the Annual Meeting of Stockholders (e.g. mailing, printing
etc.) held on July 11, 2001 - the Company did not hold an Annual Meeting in 2000; and b) legal and
other incidental costs associated with the Company's name change.

Depreciation, Depletion and Amortization

Depreciation, Depletion and Amortization ("DD&A") for the periods presented consisted of the
following:

	For the Three Months		For the Nine Months
	Ended September 30,		Ended September 30,
	2001	2000	2001	2000
Oil and Gas Properties	$ 284,745	$ 250,695	$ 783,071	$ 748,649
Furniture, Fixtures and Equipment	3,474	4,898	12,288	14,732
Total	$ 288,219	$ 255,593	$ 795,359	$ 763,381
DD&A for the oil and gas properties, per BOE:	$ 13.06	$ 7.19	$ 10.88	$ 7.66

The DD&A for oil and gas properties is computed using the units-of-production method utilizing only
proved reserves at the end of the respective period.  The DD&A rate increased $5.87 per BOE for the
three months ended September 30, 2001, and $3.22 per BOE for the nine months ended September 30,
2001 when compared to the same periods in 2000, as a result of the total costs subject to amortization
increased by approximately $3.2 million between September 30, 2000 and September 30, 2001.  This
increase is attributable to the costs of new wells drilled, including direct drilling costs and allocated
seismic costs, that were added to the costs subject to amortization during that period.

Impairment of Oil and Gas Properties

The Company incurred a non-cash impairment charge of $928,000 during the third quarter of 2001
associated with a "ceiling test" write-down pursuant to Regulation S-X, Rule 4-10(e)(4).  According to
the authoritative accounting literature, the Company is required to calculate the "ceiling" on a quarterly
basis and expense any of the net costs accumulated in the full cost pool that exceed that "ceiling".  The
"ceiling" at September 30, 2001 is substantially lower than previous periods (no impairment charges
have been incurred for previous periods presented) primarily because of the decrease in oil and gas
prices that have occurred since the beginning of the year and in particular subsequent to September 11,
2001.  The terrorist attacks, recent actions taken by OPEC, unexpected weather patterns, and other
factors, have recently created an extremely volatile oil and gas price environment.  These factors, along
with the ultimate successor failure of future exploration and development activities, will affect future
ceiling calculations and may ultimately lead to additional impairment charges, the extent can not be
determined at this time.

Interest Expense

Total interest incurred, and its allocation, for the periods presented is as follows:

	For the Three Months		For the Nine Months
	Ended September		Ended September 30,
	2001	2000	2001	2000
Interest paid or accrued	$ 73,567	$ 70,337	$ 214,878	$ 209,845
Amortization of debt discount	-	54,834	73,113	164,503
Amortization of debt issuance costs	-	34,559	19,176	103,677
Amortization of debt restructuring costs	11,000	-	46,078	-
Total interest incurred	84,567	159,730	353,245	478,025
Interest capitalized for exploration activities	(73,350)	(69,942)	(213,987)	(208,307)
Interest expense	$ 11,217	$ 89,788	$ 139,258	$ 269,718

As discussed in the Company's Annual Report on Form 10-KSB and Footnote 2 on page 6 of this
report, the Company's convertible debentures, with an aggregate balance of $2,782,500, had an
original maturity of April 16, 2001.  Approximately 95%, or $2,695,500, of the debenture holders
agreed to extend the maturity for 2 years in exchange for: a) lowering the conversion rate from $30.00
to $1.75: and b) increasing the interest rate from 10% to 11% per annum.  Accordingly, the total interest
paid and accrued increased slightly for the periods presented in 2001, when compared to 2000 as a
result of the higher interest rate.  Total interest incurred decreased in 2001 primarily as a result of the
original debt discount and issuance costs incurred in 1997 (which aggregated over $1.6 million) became
fully amortized in April 2001.  Total costs incurred to restructure the debenture this year totaled $92,044
and are being amortized over the new term of two years.

The total interest capitalized for exploration activities has remained relatively constant when comparing
the periods presented since we have, and will continue to, incur costs on our unevaluated oil and gas
properties. Interest is being capitalized in accordance with FAS 34 and FASB Interpretation No. 33,
on the unevaluated oil and gas costs.  Interest capitalization on the unevaluated oil and gas costs ceases
when the corresponding asset has become evaluated and is ready for its intended use.

Disclosure Regarding Forward-Looking Statements

This report on Form 10-QSB includes "forward-looking statements" within the meaning of Section 27A
of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act").  All statements other than statements of
historical facts included in this report, including, without limitation, statements under "Management's
Discussion and Analysis of Financial Condition and Results of Operations" regarding our financial
position, reserve quantities, plans and objectives of the Company's management for future operations
and capital expenditures are forward-looking statements and the assumptions upon which such forward-
looking statements are based are believed to be reasonable.  We can give no assurance that such
expectations and assumptions will prove to be correct.  Reserve estimates of oil and gas properties are
generally different from the quantities of oil and natural gas that are ultimately recovered or found.  This
is particularly true for estimates applied to exploratory prospects. Additionally, any statements
contained in this report regarding forward-looking statements are subject to various known and
unknown risks, uncertainties and contingencies, many of which are beyond our control.  Such risks and
uncertainties may cause actual results, performance, achievements or expectations to differ materially
from the anticipated results, performance, achievements or expectations.  Factors that may affect such
forward-looking statements include, but are not limited to: our ability to generate sufficient cash flow
from operations to complete our planned drilling and exploration activities; risks inherent in oil and gas
acquisitions, exploration, drilling, development and production; price volatility of oil and gas;
competition; shortages of equipment, services and supplies; government regulation; environmental
matters; financial condition of the other companies participating in the exploration, development and
production of oil and gas programs; and other matters beyond our control.  In addition, since all of the
prospects in the Gulf Coast are currently operated by another party, we may not be in a position to
control costs, safety and timeliness of work as well as other critical factors affecting a producing well
or exploration and development activities. All written and oral forward-looking statements
attributable to our Company or persons acting on our behalf subsequent to the date of this report are
expressly qualified in their entirety by this disclosure.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We may from time to time be involved in various claims, lawsuits disputes with third parties, actions
involving allegations of discrimination, or breach of contract incidental to the operation of its business.
At September 30, 2001 and as of the date of this report, we were not involved in any litigation which
we believe could have a materially adverse effect on our financial condition or results of operations.

Item 2. Change in Securities.

     (a)     Recent Sales of Unregistered Securities.  The Company sold the following securities without
registration under the Securities Act of 1933, as amended ("Securities Act") during the quarter
ended September 30, 2001 and through the date of this report:

          1. On May 17, 2001, two entities, Ramat Securities, Ltd. and Tamar Securities, Inc., purchased
55,417 shares of the Company's common stock.  On May 17, 2001, one entity , Howard Amster, IRA,
purchased 16,667 shares of the Company's common stock.  On June 7, 2001, BellSouth Master Pension
Trust purchased 233,333 shares of the Company's common stock and Metropolitan Life Insurance
Company Separate Acct EN purchased 433,333 shares.  On June 21, 2001 Arbco Associates, L.P.
purchased 266,667 shares common stock.  All these purchases were at $0.50 per share resulting from
the exercise of outstanding warrants and generated proceeds of $502,708.50.  Certificates, representing
the shares issued upon exercise, were restricted and each included a restrictive legend prohibiting
transfer without registration under the Securities Act.  The Company relied upon Section 4(2) of the
Securities Act in issuing the securities without registration.  The institutions to whom the securities were
issued had full information concerning the business and affairs of the Company.  No underwriter
or other sales agent participated in the exercise of the warrants.  The shares issued upon exercise of the
warrants were registered by the Company for resale by the holders in registration No.333-59188.

          2. On July 11, 2001 the Company issued 5,000 shares of common stock to Clemons F. "Bud"
Walker and on July 12, 2001 the Company issued 5,000 shares to James C. Ruane.  Messrs. Walker
and Ruane exercised vested stock options held by them at the time they left the Company's Board of
Directors following the Annual Meeting of Stockholders.  The exercise price was $0.50 per share and
the Company received proceeds totaling $5,000.00 upon issuance of the securities.  The Company
relied upon Section 4(2) of the Securities Act in issuing the securities without registration.  The two
persons to whom the securities were issued were formerly directors and had full information concerning
the business and affairs of the Company and acquired the shares for investment purposes.  Certificates
representing the securities issued bear a restrictive legend and stop transfer instruction have been entered
prohibiting transfer of the securities except in compliance with applicable securities laws.

Item 3. Defaults Upon Senior Securities

     (a) There has been no material default in the payment of principal, interest, or any other material default,
with respect to any indebtedness of the small business issuer during the period covered by this report.

     (b) There has been no material default in the payment of dividends for any class of preferred stock
during the period covered by this report.

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

     (a) The Company held its Annual Meeting of Stockholders in Grand Junction, Colorado on July 11,
2001.  The following matters were considered and voted upon at the meeting.

          1. The following directors were elected for the terms indicated:

Name of Director	Terms Expires At Annual Meeting In
Steve A. Antry	2002
J. Peter Koonce	2002
David A. Melman	2003
Homer C. Osborne	2003
Patrick J. Duncan	2004

No. of Votes	No. of Votes Received	Withheld
Patrick J. Duncan	2,033,291	21,833
David A. Melman	2,020,962	34,162
Homer C. Osborne	2,046,412	8,712
J. Peter Koonce	2,020,962	34,162
Steve A. Antry	2,033,741	21,383

          2. Stockholders approved Restated and Amended Articles of Incorporation for the Company
which provided for:

               (a) The Company's name to be changed from "Pease Oil and Gas Company" to "Republic
Resources,  Inc."; and

               (b) an increase in the number of authorized common shares from 4.0 million to 10.0 million.

Votes In Favor:	1,995,669
Votes Opposed:	57,332
Votes Abstained and Broker Non-votes:	2,123

Item 5. Other Information

There is no information reportable under this item for the period covered by this report.

Item 6. Exhibits and Reports on Form 8-K

(a) The following exhibit is filed with this report.

(1) Exhibit 4.1, "Certificate of Amendment to the Certificate of Designation of Series C Redeemable 5% Cumulative Preferred Stock".

(b) We have not filed any reports on Form 8-K for the period covered by this report.

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

Date: November 19, 2001                               By: /s/ Patrick J. Duncan
                                                                        Patrick J. Duncan
                                                                        Principal Executive Officer and
                                                                          Principal Accounting Officer

	For the Three Months Ended September 30,
	2001			2000
Basic	Income	Shares	Per Share	Income	Shares	Per Share
Income (Loss) available to common stockholders	$(1,068,260)	2,938,619	$(0.36)	$402,182	1,731,398	$0.23
Effect of Dilutive Securities
Assumed exercise of dilutive options and warrants	-	-	-	-	-	-
Assumed conversion of debt	-	-	-	-	-	-
Assumed conversion of the Series B preferred stock	-	-	-	66,504	15,532,918	(0.20)
Diluted
Income (Loss) available to common stock including assumed conversions	$(1,068,260)	2,938,619	$(0.36)	$468,686	17,264,316	$0.03
	For the Nine Months Ended September 30,
	2001			2000
Basic	Income	Shares	Per Share	Income	Shares	Per Share
Income (Loss) available to common stockholders	$ (796,414)	2,341,358	$(0.34)	$567,237	1,731,398	$0.33
Effect of Dilutive Securities
Assumed exercise of dilutive options and warrants	-	-	-	-	-	-
Assumed conversion of debt	-	-	-	-	-	-
Assumed conversion of the Series B preferred stock	-	-	-	198,066	15,532,918	(0.29)
Diluted
Income available to common stock including assumed conversions	$ (796,414)	2,341,358	$(0.34)	$765,303	17,264,316	$0.04

Cash balance at December 31, 2000	$ 1,407,769
Sources of Cash:
Cash provided by operating activities	1,548,598
Proceeds from exercise of warrants and options	507,709
Proceeds from note receivable	90,000
Total sources of cash during the period	2,146,307
Uses of Cash:
Capital expenditures for oil and gas activities	(2,394,841)
Repayment of long-term debt	(142,130)
Debt restructuring costs	(92,044)
Payment of preferred stock dividends	(62,189)
Total uses of cash during the period	(2,691,204)
Cash balance at September 30, 2001	$ 862,872