For the Quarter Ended		Commission File Number
September 30, 2002		0-23431

Delaware		38-3379776
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification No.)
3104 Logan Valley Road
Traverse City, Michigan		49685-0348
(Address of Principal Executive Offices)		(Zip Code)

Class		Outstanding at November 14, 2002
Common stock, $.01 par value		1,992,159 shares

				Page No.
PART I.    FINANCIAL INFORMATION
Item 1.		Financial Statements		3
		Consolidated Statements of Operations—
		Three Months and Nine Months Ended September 30, 2002 and 2001		3
		Consolidated Balance Sheets—
		September 30, 2002 and December 31, 2001		4
		Consolidated Statement of Equity—
		Nine Months Ended September 30, 2002		5
		Consolidated Statements of Cash Flows—
		Nine Months Ended September 30, 2002 and 2001		6
		Notes to Consolidated Financial Statements		7
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		25
Item 4.		Controls and Procedures
PART II.    OTHER INFORMATION
Item 1.		Legal Proceedings		26
Item 2.		Changes in Securities and Use of Proceeds		27
Item 3.		Defaults Upon Senior Securities		27
Item 4.		Submission of Matters to a Vote of Security Holders		27
Item 5.		Other Information		28
Item 6.		Exhibits and Reports on Form 8-K		28

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2002				2001				2002				2001
REVENUES:
Natural gas		$	1,501				2,695			$	5,299			$	12,072
Crude oil and condensate			548				795				2,330				2,621
Other operating revenues			37				65				142				234
Total operating revenues			2,086				3,555				7,771				14,927
OPERATING EXPENSES:
Lease operating expenses and production taxes			425				655				1,353				2,418
Depreciation, depletion and amortization			1,415				2,793				5,929				10,505
General and administrative			389				383				1,554				1,459
Cost ceiling writedown			—				1,000				7,000				8,500
Total operating expenses			2,229				4,831				15,836				22,882
OPERATING INCOME (LOSS)			(143	)			(1,276	)			(8,065	)			(7,955	)
INTEREST EXPENSE			(145	)			(241	)			(547	)			(829	)
INCOME (LOSS) BEFORE INCOME TAXES			(288	)			(1,517	)			(8,612	)			(8,784	)
INCOME TAX PROVISION (CREDIT) (Note 2)			—				(176	)			(5,743	)			(97	)
NET INCOME (LOSS)		$	(288	)		$	(1,341	)		$	(2,869	)		$	(8,687	)
EARNINGS (LOSS) PER SHARE (Note 3)
Basic		$	(0.01	)		$	(0.07	)		$	(0.15	)		$	(0.45	)
Diluted		$	(0.01	)		$	(0.07	)		$	(0.15	)		$	(0.45	)

		As of September 30, 2002				As of December 31, 2001
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	355			$	201
Accounts receivable			2,602				3,076
Inventories, prepaids and advances to other operators			621				523
Total current assets			3,578				3,800
OIL AND GAS PROPERTIES—at cost (full cost method):
Proved oil and gas properties			151,916				146,649
Unproved oil and gas properties			4,532				11,244
Less-Accumulated depreciation, depletion and amortization			(137,363	)			(124,618	)
Net oil and gas properties			19,085				33,275
OTHER ASSETS			367				512
Total assets		$	23,030			$	37,587
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Notes payable		$	2,684			$	—
Current maturities of long-term debt			1,800				—
Accounts payable			534				2,767
Accrued expenses and other current liabilities			3,446				4,974
Total current liabilities			8,464				7,741
LONG-TERM DEBT			—				6,696
DEFERRED INCOME TAXES (Note 2)			—				5,743
COMMITMENTS AND CONTINGENCIES (Note 8)
EQUITY:
Common stock warrants, 13,350,498 outstanding at September 30, 2002 and December 31, 2001			860				860
Preferred stock, $0.01 par value; 2,000,000 shares authorized; none outstanding							—
Common stock, $0.01 par value; 40,000,000 shares authorized; 19,921,590 shares and 19,478,853 shares outstanding at September 30, 2002 and December 31, 2001, respectively			199				195
Accumulated other comprehensive income (loss)			(83	)			89
Additional paid in capital			77,447				77,251
Retained deficit			(63,857	)			(60,988	)
Total equity			14,566				17,407
Total liabilities and equity		$	23,030			$	37,587

		Common Stock Warrants			Preferred Stock			Common Stock			Accumulated Other Comprehensive Income (Loss)				Additional Paid In Capital			Retained Deficit
BALANCE-December 31, 2001		$	860		$	—		$	195		$	89			$	77,251		$	(60,988	)
Issuance of benefit plan shares			—			—			2			—				74			—
Issuance of non-employee directors’ shares			—			—			2			—				122			—
Change in unrealized (losses)			—			—			—			(172	)			—			—
Net (loss)			—			—			—			—				—			(2,869	)
BALANCE-September 30, 2002		$