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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

FORM 10-K

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

For the Fiscal Year Ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES ACT OF 1934 (NO FEE REQUIRED)

For the Transition Period from to
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Commission File Number 1-4673

WILSHIRE OIL COMPANY OF TEXAS

(exact name of registrant as specified in its charter)

Delaware 84-0513668
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)

921 Bergen Avenue
Jersey City, New Jersey 07306
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(Address of principal executive offices) (Zip code)


Registrant's telephone number, including area code: (201) 420-2796
--------------

Securities registered pursuant to Section 12(b) of the Act:


Name of each exchange
(Title of each class) On which registered
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Common Stock, $1 par value New York Stock Exchange
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Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days. Yes X No
------ ------

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. []

The aggregate market value of the shares of the voting stock held by non-
affiliates of the Registrant was approximately $50,425,000 based upon the
closing sale price of the stock, which was $5.625 on March 15, 1996.

The number of shares of the Registrant's $1 par value common stock outstanding
as of March 15, 1996 was 9,308,597.


Documents Incorporated by Reference

The information called for by Part III is incorporated by reference to the
definitive Proxy Statement for the Annual Meeting of Stockholders.

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WILSHIRE OIL COMPANY OF TEXAS


Annual Report on Form 10-K

December 31, 1995


TABLE OF CONTENTS


PART I
Page
----

Item 1. Business .......................................... 1
Item 1a. Executive Officers of the Registrant .............. 7
Item 2. Properties ........................................ 8
Item 3. Legal Proceedings ................................. 15
Item 4. Submission of Matters to a
Vote of Security Holders .......................... 15

PART II

Item 5. Market for the Registrant's Common Equity
and Related Stockholder Matters ................... 16
Item 6. Selected Financial Data ........................... 17
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations ............... 20
Item 8. Financial Statements .............................. F-1
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure ............... 29

PART III

Item 10. Directors of the Registrant ....................... 29
Item 11. Executive Compensation ............................ 29
Item 12. Security Ownership of Certain Beneficial
Owners and Management ............................. 29
Item 13. Certain Relationships and Related Transactions .... 29

PART IV

Item 14. Exhibits, Financial Statement Schedules and
Reports on Form 8-K ............................... 30





PART I

ITEM 1. BUSINESS

BACKGROUND

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

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


FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS

For financial segment information please see Note 8, "Segment
Information" of the "Notes to Consolidated Financial Statements", presented
elsewhere herein. The Company has no export sales or sales to affiliated
customers.

DESCRIPTION OF BUSINESS

OIL AND GAS OPERATIONS

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

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

As of March 15, 1996, 16 people are employed by the Company. Twelve
employees are directly engaged in the search for new oil and gas properties. In
addition, the Company also has consultants.

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


1




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

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

The Company participated in the drilling of 11 wells (1.3 net) in 1995
compared to 15 (2.7 net) in 1994.

The United States' program in 1995 consisted of the drilling of 8
development wells (1.0 net). All of these wells were successfully completed as
oil wells for a success ratio of 100%.

Two (.6 net) out of the eight wells drilled were in Wyoming, the
other six (.4 net) in Oklahoma. The two successful wells in Wyoming were the
Messenger #1-3H and the Elk Mountain 41-4 #1H. Both of these wells were oil
wells and used horizontal drilling, which enables the driller to laterally
intersect several vertical fractures, as distinguished from conventional
drilling methods which limit the number of vertical fractures intersected. The
six wells drilled in Oklahoma were conventional in nature. Of the six Oklahoma
wells, five were gas wells and one oil.

The Canadian drilling program in 1995 consisted of the drilling of 3
wells (0.3 net), 2 development and 1 exploration. The development wells (.02
net) were successfully completed as oil wells.

Overall, drilling activities added 257,000 barrels of oil and 118,000
MCF gas to proved reserves in 1995.

The Company's crude oil and condensate production is sold at posted
field prices, primarily to major crude oil and condensate purchasers. For
average posted field prices, for both oil and gas, see "Properties - Oil and Gas
Properties - Production." The Company has one purchaser, Amoco Production
Company that purchased in excess of 10% of its 1995 consolidated oil and gas
revenues. Amoco purchased 10.5%. Amoco is located in the United States.

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


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


2



COMPETITION

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

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

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

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


SEASONALITY

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


3



ENVIRONMENTAL MATTERS

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

The Company's expenses relating to preserving the environment during
1995 were not significant in relation to operating costs and the Company expects
no material changes in 1996. Environmental regulations have had no materially
adverse effect on the Company's petroleum operations to date, but no assurance
can be given that environmental regulations will not, in the future, result in a
curtailment of production or otherwise have materially adverse effects on the
Company's operations or financial condition.

REGULATION - UNITED STATES OPERATIONS

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

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

REGULATION - CANADIAN OPERATIONS

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

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


4



OIL PRICES

Oil prices actually being paid by purchasers in the United States are
publicly announced throughout the country and vary depending on locality and
qualitative specifications of the crude oil. All prices are subject to future
modification by appropriate agency action.



JACOBS ENGINEERING INVESTMENT

Wilshire made a significant investment in Jacobs Engineering Group,
Inc. ("Jacobs") initially during 1986 by purchasing 278,300 shares of common
stock at an average price of $7.25 per share. Subsequently, the Company
purchased additional shares, the stock split, stock dividends were received and
the Company sold certain shares. The Company realized gains on sales of common
shares of Jacobs of $9,182,000 in 1995 compared to $5,457,000 in 1994. On
December 31, 1995 Wilshire held 1,059,660 shares at an average cost of $8.26 per
share.

Jacobs, headquartered in Pasadena, California, is listed on the New
York Stock Exchange. It is a world-wide leader in engineering design,
construction management and operation of industrial facilities, plants and
governmental projects.

Jacobs reported record results for its fiscal year ended September 30,
1995. From 1994 to 1995, revenues increased from $1.2 billion to $1.7 billion,
net income increased from $19 million to $32 million, and net income per share
increased from $.75 to $1.27.

The closing price of Jacobs' common stock on the New York Stock
Exchange on March 15, 1996 was 3.4 times more than Wilshire's average cost of
the shares it currently holds. Wilshire's cost as of March 15, 1996 was
$8,756,000. The aggregate market value of the Jacobs common stock held by
Wilshire on March 15, 1996 (based on the closing price on that date) was
$30,068,000, or $21,312,000 in excess of Wilshire's cost basis.

The stock of Jacobs held by Wilshire continues to be important to
Wilshire as it broadens the Company's base and adds substantially to the value
of the Company's assets.


5



REAL ESTATE OPERATIONS

The Company's real estate operations are conducted in the states of
Arizona, Texas, Florida and New Jersey. They are not seasonal in nature.

The Company's Arizona properties include two garden apartment
complexes, a midrise apartment building, an office building, and a
retail/medical use complex. The garden apartment complexes consist of a 340
unit complex and a 378 unit complex. The midrise apartment building is a 70
unit, four story building. The office building is a 53,000 square foot multi-
tenant two story building. The retail/medical use property consists of 65,000
square feet.

The Texas property is a 228 unit apartment complex.

The Florida property consists of two office buildings having a
combined area of 28,000 square feet.

The Company's properties in New Jersey include apartment properties
having 274 units as well as various commercial/retail properties.

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

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

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

The Company's real estate operations are subject to existing federal
and state laws regarding environmental quality and pollution control.
Environmental regulations had no materially adverse effect on the Company's real
estate operations during 1995, but no assurance can be given that environmental
regulations will not, in the future, have a materially adverse effect on the
Company's operations.


6



ITEM 1A - EXECUTIVE OFFICERS OF THE REGISTRANT

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

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


EXECUTIVE OFFICERS OF REGISTRANT




Name Age Position with Registrant
- ---- --- ------------------------

S. Wilzig Izak (a) 37 Chairman of the Board and
Chief Executive Officer

Allen C. Knight (b) 71 Senior Vice President -Canada

Steven A. Gelman (c) 39 Vice President and Controller



a) Ms. Izak was appointed Chairman of the Board on September 20, 1990.
She served as Executive Vice President of the Company from
August 10, 1987 through September 20, 1990.

b) Mr. Knight was appointed Senior Vice President on May 2, 1985.

c) Mr. Gelman joined the Company April 26, 1993.


7



ITEM 2. PROPERTIES

OFFICES

The executive and administrative office of the Company consists of
approximately 2,000 square feet, located at 921 Bergen Avenue, Jersey City, New
Jersey. This office is leased at a monthly rental of $2,257.

The Company maintains its principal office for the United States oil
and gas operations in Oklahoma City, Oklahoma, leasing 3,618 square feet, at a
monthly cost of $2,111. The Company also owns a storage yard of approximately
five acres, situated near Will Rogers Airport in Oklahoma City.

The Company's Canadian subsidiary maintains an exploration office in
Calgary, Alberta, Canada. The Company leases 1,583 square feet at a monthly
rental of $1,373 Canadian.

OIL AND GAS PROPERTIES

GLOSSARY

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

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

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

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

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

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

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

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


8



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

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

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

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

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

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

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

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

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

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


9


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

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

* * *

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

For information regarding costs incurred in 1995, please refer to the
"Segment Information" in Note 8 of the Notes to Consolidated Financial
Statements, presented elsewhere herein. For information regarding capitalized
costs relating to oil and gas producing activities, please refer to Note 9 of
the Notes to Consolidated Financial Statements, presented elsewhere herein.

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




United States Canada
(000's Omitted) (000's Omitted)
------------- -------------
-----------------------------------------------------------
Proved Proved Proved Proved
Reserves Developed Reserves Reserves Developed Reserves
-------- ------------------ -------- ------------------

1996 $ 3,523 $ 3,523 $ 1,911 $ 1,698

1997 2,873 2,873 2,623 2,101

1998 2,181 2,181 3,088 2,455

Remainder $21,310 $ 9,311 $41,328 $34,721



10



RESERVES

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

The Company's net Proved and Proved Developed Reserves of oil and gas
and the present values thereof at December 31, 1993 and 1994 and 1995 were
estimated by the independent professional engineering consultants referred to on
page 28. Such estimates were utilized in the preparation of the Company's
consolidated financial statements for the applicable fiscal years and for
reporting purposes.

Set forth below are estimates of the Company's Proved and Proved
Developed Reserves and the present value of estimated future net revenues from
such reserves based upon the standardized measure of discounted future net cash
flows relating to proved oil and gas reserves in accordance with the provisions
of Statement of Financial Accounting Standards No. 69, "Disclosures about Oil
and Gas Producing Activities" (SFAS No. 69). The standardized measure of
discounted future net cash flows is determined by using estimated quantities of
Proved Reserves and the periods in which they are expected to be developed and
produced based on period-end economic conditions. The estimated future
production is priced at period-end prices, except where fixed and determinable
price escalations are provided by contract. The resulting estimated future cash
inflows are reduced further by estimated future costs to develop and produce
reserves based on period-end cost levels. No deduction has been made for
depletion, depreciation or income taxes or for indirect costs, such as general
corporate overhead. Present values were computed by discounting future net
revenues by 10 percent per annum.


11



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




United States Canada
------------- ------

Proved Proved
Proved Developed Proved Developed
------ --------- ------ ---------
(000's Omitted) (000's Omitted)

1995 Oil (Bbls) 1,803 855 1,296 915
Gas (Mcf) 6,778 6,778 26,212 24,819
Net present value @ 10% $20,592 $12,269 $21,074 $17,061

1994 Oil (Bbls) 2,113 1,165 1,267 893
Gas (Mcf) 7,050 7,050 25,002 23,622
Net present value @ 10% $23,154 $15,294 $20,081 $16,892


1993 Oil (Bbls) 1,709 1, 209 1,335 923
Gas (Mcf) 8,023 8,023 22,292 21,366
Net present value @ 10% $15,855 $14,960 $19,970 $16,788



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

No Proved or Proved Developed Reserve estimates for oil and gas were
filed with or included in reports to any other federal or foreign governmental
authority or agency since the beginning of fiscal 1995, other than with the
Securities and Exchange Commission.

PRODUCTION WELLS

The following tabulations indicate the number of productive wells
(gross and net) as of December 31, 1995.





Gas Oil Developed Acreage
----------- ------------- -------------------
Gross Net Gross Net Gross Net
----- --- ----- --- ----- ---

United States 641 84.6 529 79.1 53,993 22,292

Canada 205 50.7 66 9.4 163,980 26,308



12




PRODUCTION

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




Oil and Condensate (Bbls) Gas (Mcf)
United States Canada United States Canada
------------- ------ ------------- ------

1995 169,000 45,000 1,011,000 933,000
1994 277,000 46,000 1,238,000 822,000
1993 223,000 51,000 1,287,000 961,000


Average sales price per unit of oil or gas produced:




Oil Gas
-------------------- ------------------
U.S. Canada U.S. Canada
---- ------ ---- ------

1995 $16.06 $14.30 $1.48 $ .95
1994 $15.17 $12.79 $1.74 $1.36
1993 $16.47 $13.27 $1.79 $1.21



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

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

There are no agreements with foreign governments.


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




1995 1994 1993
---- ---- ----

United States $6.19 $4.99 $5.19
Canada $2.16 $2.38 $2.64


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


13



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

OIL AND GAS LEASES

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




1995 1994
---- ----
Undeveloped Acres Undeveloped Acres
Gross Net Gross Net
----- --- ----- ---

United States 7,138 3,487 7,645 2,854
Canada 23,368 3,920 26,760 4,522



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


DRILLING

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




Exploratory Wells Development Wells
-------------------------------------------- -------------------------------------------
Net Productive Net Dry Net Productive Net Dry
-------------- ------- -------------- -------
U.S. Canada U.S. Canada U.S. Canada U.S. Canada
---- ------ ---- ------ ---- ------ ---- ------

1995- - - - .3 1.0 - - -
1994- - .7 - .2 1.4 .4 - -
1993- - .2 - .1 1.9 .3 - -
1992- .5 .1 - .7 1.3 .2 - -
1991- .5 .6 .1 1.2 .8 - - -



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


14



REAL ESTATE PROPERTIES

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




Location General Character
-------- -----------------

Arizona 378 Unit Apartment Complex
Arizona 340 Unit Apartment Complex
Arizona 70 Unit Apartment Building
Arizona Office Building
Arizona Retail/Medical use Complex
Texas 228 Unit Apartment Complex
Florida Office Building
New Jersey Apartment Properties (274 units)
New Jersey Commercial/Retail Properties


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

ITEM 3. LEGAL PROCEEDINGS

At December 31, 1995, the Company was not a party to any actions or
proceedings which management believes are reasonably likely to have a material
adverse effect upon the Company.




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

No matter was submitted by the Company to a vote of its security
holders during the fourth quarter of the year ended December 31, 1995.


15



PART II

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

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




(All in ($) Dollars)

Quarter 1 Quarter 2 Quarter 3 Quarter 4
High - Low High - Low High - Low High - Low
-------------- -------------- ------------ --------------

1995 6-3/4 - 6 6-3/8 - 5-3/4 7 - 6-1/8 6-3/8 - 5-1/2
1994 7 - 6-3/8 7-1/8 - 6-3/8 7-1/4 - 6-1/8 7 - 6-1/4



As of March 15, 1996 there were 10,346 common shareholders of record.


The Company declared a $.07 per common share cash dividend on
June 29, 1995 to shareholders of record on July 28, 1995, payable on August 18,
1995. The Company declared a $.06 per common share cash dividend on June 17,
1994, to shareholders of record on July 29, 1994, payable on August 19, 1994.

The Company also declared a 3% stock dividend in 1994.


16




ITEM 6. SELECTED FINANCIAL DATA

(Not covered by Report of Independent Public Accountants)


(In thousands of dollars except per share amounts)




For the Year Ended December 31
-------------------------------------------------
1995(a) 1994(a) 1993(a) 1992(a) 1991
------- ------- ------- ------- ----

Oil/Gas Revenues $ 5,672 $ 7,926 $ 8,505 $ 8,803 $ 7,344
--------- -------- -------- ------- -------

Real Estate Revenues $ 8,600 $ 7,885 $ 6,526 $ 2,604 $ -
--------- -------- -------- ------- -------

Total Revenues $ 14,272 $ 15,811 $ 15,031 $11,407 $ 7,344
--------- -------- -------- ------- -------

Gross Profit
Oil/Gas (b) $ 747 $ 1,930 $ 1,740 $ 443 $(1,251)
--------- -------- -------- ------- -------

Gross Profit
Real Estate (c) $ 2,712 $ 2,415 $ 2,200 $ 832 $ -
--------- -------- -------- ------- -------

Total Gross
Profit (loss) $ 3,459 $ 4,345 $ 3,940 $ 1,275 $(1,251)
--------- -------- -------- ------- -------

Net Income (loss) $ 4,300 $ 3,577 $ 4,573 $ 3,523 $(3,409)e
--------- -------- -------- ------- -------
Net income (loss
per share of
common stock (d) $ .45 $ .36 $ .45 $ .35 ($ .34)
--------- -------- -------- ------- -------

Total assets at
year-end (f) $ 104,186 $103,198 $104,652 $68,527 $47,209
--------- -------- -------- ------- -------

Long-term
obligations $ 47,298 $ 50,160 $ 40,721 $39,634 $23,450
--------- -------- -------- ------- -------

Cash dividends
declared per share $ .07 $ .06 $ .05 $ - 0 - $ - 0 -
--------- -------- -------- ------- -------


a- 1995, 1994, 1993 and 1992 amounts reflect the acquisition and operations of
income producing real estate properties.

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

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

d- Restated to give effect to stock distributions.


17



e- The net loss in 1991 includes a pretax charge of $3,000,000 as additional
depreciation, depletion and amortization to reflect the effect of
substantial declines in the worldwide prices received for oil and gas,
coupled with the increased capitalized costs during this period. These
price declines also had a direct adverse impact on the Company's oil and
gas revenues in 1991 as compared to prior years. In addition, the
comparability of net income is affected by the Company's stock option
plan.

f- Total assets at December 31, 1995, 1994 and 1993 reflect investments in
equity securities stated at market value. See Note 1 to the consolidated
financial statements regarding this change in accounting.





WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

QUARTERLY FINANCIAL DATA

(Unaudited)

(In thousands $ except per share amounts)

1995

1st 2nd 3rd 4th Year
------------------------------------------------------------------

Oil/Gas Revenues $1,635 $1,378 $1,415 $1,244 $ 5,672
Real Estate
Revenues $2,084 $2,155 $2,164 $2,197 $ 8,600
------------------------------------------------------------------
Total Revenues $3,719 $3,533 $3,579 $3,441 $14,272
------------------------------------------------------------------

Gross Profit
Oil/Gas (a) $ 244 $ (122) $ (227) $ 852 $ 747
Gross Profit
Real Estate (b) $ 626 $ 693 $ 75 $ 818 $ 2,712
------------------------------------------------------------------
Total Gross
Profit $ 870 $ 571 $ 348 $1,670 $ 3,459
------------------------------------------------------------------

Net Income $1,330 $1,304 $ 217 $1,449 $ 4,300
------------------------------------------------------------------

Net Income
Per Share $ .14 $ .14 $ .02 $ .15 $ .45
------------------------------------------------------------------

Cash Dividends
Per Share $ -0- $ -0- $ .07 $ -0- $ .07
------------------------------------------------------------------



18



WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

QUARTERLY FINANCIAL DATA

(Unaudited)

(In thousands $ except per share amounts)




1994
----

1st 2nd 3rd 4th Year
------------------------------------------------------------------

Oil/Gas Revenues $1,842 $2,179 $2,201 $1,704 $ 7,926
Real Estate
Revenues $1,771 $2,014 $2,029 $2,071 $ 7,885
------------------------------------------------------------------
Total Revenues $3,613 $4,193 $4,230 $3,775 $15,811
------------------------------------------------------------------

Gross Profit
Oil/Gas (a) $ 234 $ 433 $ 367 $ 896 $ 1,930
Gross Profit
Real Estate (b) $ 616 $ 706 $ 642 $ 451 $ 2,415
------------------------------------------------------------------
Total Gross
Profit $ 850 $1,139 $1,009 $1,347 $ 4,345
------------------------------------------------------------------
Net Income $1,306 $1,263 $ 951 $ 57 $ 3,577
------------------------------------------------------------------
Net Income
Per Share $ .13 $ .13 $ .10 $ .01 $ .36
------------------------------------------------------------------
Cash Dividends
Per Share $ -0- $ -0- $ .06 $ -0- $ .06
------------------------------------------------------------------


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

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


19



ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS


GENERAL

The Company's oil and gas operating performance is influenced by several
factors. The most significant are the prices received for the sale of oil and
gas and the sales volume. For 1995, the average price of oil that the Company
received was $15.69 compared to $14.83 for 1994, a price increase of 5.8%.
Average gas prices received by the Company in 1995 were lower than 1994 average
gas prices. The average price of gas for 1995 was $1.23 compared to $1.59 for
1994.

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




Fiscal Year Ended December 31
-----------------------------
1995 1994 1993
---- ---- ----

Crude Oil and Natural Gas Production:
Oil (Bbls) . . . . . . . . . . . . . . . 214,000 323,000 274,000
Gas (Mcf). . . . . . . . . . . . . . . . 1,944,000 2,060,000 2,248,000
Average sales prices:
Oil (per Bbl). . . . . . . . . . . . . . $15.69 $14.83 $15.87
Gas (per MCF). . . . . . . . . . . . . . $ 1.23 $ 1.59 $ 1.54
Average production costs per BOE $ 4.69 $ 4.27 $ 4.36



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


20



RESULTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 1995 ("1995") COMPARED WITH YEAR ENDED
DECEMBER 31, 1994 ("1994").

Net income for the year ended December 31 increased from $3,577,000
in 1994 to $4,300,000 in 1995.

Oil and gas revenues were $5,672,000 in 1995 compared to $7,926,000 in
1994. This decrease was attributable to production declines from year to
year. Much of this decrease in production is typical of the natural decline
experienced in a "horizontal well" drilling program.

Real estate revenues increased from $7,885,000 in 1994 to $8,600,000
in 1995, an increase of $715,000. This increase was principally due to higher
rents and increased occupancy.

Oil and gas production expense decreased in 1995. Oil and gas
production expense decreased from $2,846,000 in 1994 to $2,524,000 in 1995.
Production expense decreased due to, among other things, lower production in
1995.

Depreciation, depletion and amortization of oil and gas assets
amounted to $2,401,000 in 1995 compared to $3,150,000 in 1994. This decrease is
principally attributable to a lower depletable pool and lower oil and gas
revenues in 1995. Real estate depreciation was $1,037,000 in 1995 compared to
$870,000 in 1994.

General and administrative expense was relatively stable, amounting to
$1,415,000 in 1995 compared to $1,386,000 in 1994.

The Company realized gains on sales of common shares of Jacobs
Engineering Group, Inc. ("Jacobs") of $9,182,000 in 1995 compared to $5,457,000
in 1994. As of December 31, 1995, the Company held 1,059,660 shares of Jacobs.

Interest expense increased from $3,638,000 in 1994 to $4,144,000 in
1995 due to higher interest rates in general in 1995.

The provision for income taxes includes Federal and Canadian taxes.
Differences between the effective tax rate and the statutory income tax rates
are due to foreign resource tax credits in Canada, additional provision to
cover the settlement of a tax examination, and the dividend exclusion in
the United States.


21



YEAR ENDED DECEMBER 31, 1994 ("1994") COMPARED WITH YEAR ENDED
DECEMBER 31, 1993 ("1993").

Net income was $3,577,000 in 1994 as compared with $4,573,000 in
1993. The 1994 operations included the revenues and expenses of real estate
properties acquired on March 31, 1994 and gains on the sales of marketable
securities. Gains on sales of marketable securities were $853,000 less in 1994
than in 1993.

Oil and gas revenues were $7,926,000 in 1994 compared to $8,055,000 in
1993. Despite a substantial increase (17.9%) in oil production from the
successful horizontal drilling program during 1994, revenues decreased slightly
due to a drop in the price of crude oil from $15.87 in 1993 to $14.83 in 1994.
Consolidated revenues in 1993 also included a non-recurring gas settlement of
$450,000.

Real estate revenues increased from $6,526,000 in 1993 to $7,885,000
in 1994, an increase of $1,359,000. This increase was principally due to the
acquisition of additional investment properties in March 1994 as well as
generally higher rents and increased occupancy.

Oil and gas production expense was comparable in 1994 and 1993. Oil
and gas production expense was $2,846,000 in 1994 compared with $2,829,000 in
1993. Average cost per BOE decreased by 2% in 1994.

Depreciation, depletion and amortization of oil and gas assets
amounted to $3,150,000 in 1994 compared to $3,936,000 in 1993. This decrease is
principally attributable to an increase in the estimated value of the Company's
oil and gas reserves. Real estate depreciation was $870,000 in 1994 compared to
$653,000 in 1993. This increase is principally attributable to the newly
acquired properties discussed above.

General and administrative expense was $1,386,000 in 1994 compared to
$1,097,000 in 1993. The increase is principally attributable to increased
charges in 1994 related to the Company's non-qualified stock option plan.

The Company realized gains on sales of common shares of Jacobs
Engineering Group, Inc. ("Jacobs") of $5,457,000 in 1994 compared to $6,256,000
in 1993. The Company sold less shares of Jacobs in 1994 than in 1993. As of
December 31, 1994, the Company held 1,412,960 shares of Jacobs.

Interest expense increased from $2,776,000 in 1993 to $3,638,000 in
1994 due to the addition of $8,704,000 of new financing related to the
acquisition of real estate properties in March 1994 as well as substantially
higher interest rates in general in 1994.

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


22



EFFECTS OF INFLATION

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

ACCOUNTING FOR INCOME TAXES

Statement of Finanancial Accounting Standard No. 109- "Accounting for
Income Taxes" became effective for the Company beginning in the first quarter of
1993. SFAS 109 requires, among other things, an asset and liability approach to
accounting for income taxes. SFAS 109 did not have a material impact on its
consolidated financial statements.

ACCOUNTING FOR CERTAIN INVESTMENTS IN DEBT AND EQUITY SECURITIES

On December 31, 1993 the Company adopted Statement of Financial
Accounting Standards No. 115 "Accounting for Certain Investments in Debt and
Equity Securities" (SFAS 115). The investments of the Company are principally
equity securities, held for indefinite periods of time. These securities are
carried at fair value and the difference between cost and fair value is
charged/credited directly to shareholders' equity net of income taxes. As of
December 31, 1995, the net unrealized gain on marketable securities was
$17,174,000. This amount, net of related deferred income taxes of $7,728,000, is
included as a credit to shareholders' equity in the Company's 1995 consolidated
financial statements.

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 1995 the Company had approximately $13.3 million in
marketable securities at cost, with a market value of approximately $30.5
million. The current ratio at December 31, 1995 was 3.4 to 1 on a market basis,
which management considers adequate for the Company's current business. The
Company's working capital was approximately $24 million at December 31, 1995.

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

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


23



Net cash provided by operating activities was $745,000, $4,446,000,
and $2,489,000 in 1995, 1994 and 1993, respectively. The variations in the three
years principally relate to changes in accounts receivable and accounts payable
and accrued liabilities.

Net cash provided by (used in) investing activities was $4,159,000,
$(12,266,000) and $(4,165,000) in 1995, 1994 and 1993, respectively. The
variations principally relate to purchases of real estate properties and
transactions in securities. Purchases of real estate properties amounted to
$10.2 million in 1994 and $3.8 million in 1993. Proceeds from sales of
marketable securities amounted to $10,501,000 in 1995, $6,710,000 in 1994 and
$6,730,000 in 1993. The Company acquired $3,000,000 of preferred stock of The
Trust Company of New Jersey in 1994. Additionally, purchases of marketable
securities amounted to $3,130,000 in 1995, $5,204,000 in 1994, and $2,170,000
in 1993.

Net cash provided by (used in) financing activities was ($4,215,000),
$7,167,000 and $233,000 in 1995, 1994 and 1993, respectively. The variations
principally relate to the issuance and renegotiation of long-term debt. In 1994
and 1993 the Company acquired real estate properties, which were financed with
long-term mortgage loans. Long-term mortgage loans incurred in connection with
these acquisitions amounted to approximately $8,704,000 in 1994 and $3,209,000
in 1993.

In 1994, the Company renegotiated all of its secured bank loans (other
than mortgage notes). Among other things, more favorable principal amortization
was obtained and the maturity dates of these loans were extended.

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


24



FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 69 DISCLOSURES

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

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


25



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





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

Crude Oil, Condensate and Natural Gas Liquids
---------------------------------------------
(Barrels)
---------
United States Canada
------------- ------

1995 1994 1993 1995 1994 1993
---- ---- ---- ---- ---- ----

Proved Reserves-Beginning of Year 2.113 1,709 1,096 1,267 1,335 1,112

Revisions of previous estimates (381) 465 327 57 (47) 46
Sale of minerals in place -0- -0- (1) -0- -0- -0-
Extensions and discoveries 240 216 510 17 25 228
Production (169) (277) (223) (45) ( 46) (51)
----- ----- ----- ----- ----- -----

Proved Reserves-End of Year 1,803 2,113 1,709 1,296 1,267 1,335
----- ----- ----- ----- ----- -----
Proved Developed Reserves-
Beginning of Year 1,165 1,209 955 893 923 803
----- ----- ----- ----- ----- -----

End of Year 855 1,165 1,209 915 893 923
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----


Natural Gas
-----------
(MCF)
---
United States Canada
------------- ------

1995 1994 1993 1995 1994 1993
---- ---- ---- ---- ---- ----

Proved Reserves-Beginning of Year 7,050 8,023 7,514 25,002 22,292 25,328
Revisions of previous estimates 630 75 1,814 2,134 2,324 (2,075)
Sale of minerals in place -0- -0- (111) -0- -0- -0-
Extensions and discoveries 109 190 93 9 1,208 -0-
Production (1,011) (1,238) (1,287) (933) (822) (961)
------ ------ ------ ------ ------ ------

Proved Reserves-End of Year 6,778 7,050 8,023 26,212 25,002 22,292
------ ------ ------ ------ ------ ------
Proved Developed Reserves-
Beginning of Year 7,050 8,023 6,759 23,622 21,366 24,411
------ ------ ------ ------ ------ ------

End of Year 6,778 7,050 8,023 24,819 23,622 21,366
------ ------ ------ ------ ------ ------
------ ------ ------ ------ ------ ------



26






Standardized Measure of Discounted Future Net Cash Flows

Related to Proved Oil and Gas Reserves

December 31, 1995
(000's Omitted)


United States Canada
------------- ------
1995 1994 1995 1994
---- ---- ---- ----

Future cash flows $44,955 $47,784 $67,510 $62,743
------- ------- ------- -------

Future costs:
Production 13,542 13,595 16,401 15,707
Development, dismantlement
& abandonment 1,526 1,526 2,159 2,053
------- ------- ------- -------

Total Future Costs $15,068 $15,121 $18,560 $17,760
------- ------- ------- -------

Future net inflows-Before
income tax $29,887 $32,663 $48,950 $44,983
Future income taxes $ 7,869 $ 9,298 $16,605 $16,218
------- ------- ------- -------

Future net cash flows $22,018 $23,365 $32,345 $28,765
10% Discount factor 6,848 6,802 18,420 15,924
------- ------- ------- -------
Standardized measure of
discounted future net
cash flows $15,170 $16,563 $13,925 $12,841
------- ------- ------- -------


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

These estimates are furnished and calculated in accordance with
requirements of the Financial Accounting Standards Board and the SEC. Due to
unpredictable variances in expenses and capital forecasts, crude oil and natural
gas price changes and the fact that the basis for such estimates vary
significantly, management believes the usefulness of these projections is
limited. Estimates of future net cash flows do not represent management's
assessment of future profitability or future cash flow to the Company.
Management's investment and operating decisions are based upon reserve estimates
that include proved reserves prescribed by the SEC as well as probable reserves,
and upon different price and cost assumptions from those used here. It should be
recognized that


27



applying current costs and prices at a 10 percent standard discount rate allows
for comparability but does not convey absolute value. The discounted amounts
arrived at are only one measure of financial quantification of proved reserves.

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

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

"Total Costs Both Capitalized and Expensed, Incurred in Oil and Gas
Producing Activities" (including capitalized interest), "Cost Incurred in
Property Acquisition, Exploration and Development Activities" and "Results of
Operations from Oil and Gas Producing Activities" during the three years ended
December 31, 1995, 1994 and 1993 are included in Note 9 of the Notes to
Consolidated Financial Statements, presented elsewhere herein.

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




Changes in Standardized Measure of

Discounted Future Net Cash Flow from Proved Reserve Quantities

(000's Omitted)


1995 1994 1993
---- ---- ----


Standardized Measure - $29,404 $24,015 $20,704
Beginning of Year
Sales and transfers - Net
of Production Costs and
Windfall Profit Tax (2,948) (5,556) (5,676)
Extensions and discoveries 3,304 2,517 5,734
Net change in sales price 425 1,199 525
Revision of quantity estimates (2,126) 7,956 2,864
Proceeds from Sales of
Minerals in Place -0- -0- ( 300)

Accretion of discount 3,011 2,794 3,197
Net change in income taxes 818 2,193 (2,056)
Change in production rates-
Other (2,793) $ (5,714) $( 977)
------- --------- --------
Standardized measure -
End of year $29,095 $29,404 $24,015
------- --------- --------



28



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

None

PART III

ITEM 10. DIRECTORS OF THE REGISTRANT

Information required under this Item with respect to Directors is
incorporated by reference from the Company's Definitive Proxy Statement for the
1996 Annual Meeting of Shareholders.

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

ITEM 11. EXECUTIVE COMPENSATION

Information required under this Item is incorporated by reference from
the Company's Definitive Proxy Statement for the 1996 Annual Meeting of
Shareholders.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

Information required under this Item is incorporated by reference from
the Company's Definitive Proxy Statement for the 1996 Annual Meeting of
Shareholders.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Information required under this Item is incorporated by reference from
the Company's Definitive Proxy Statement for the 1996 Annual Meeting of
Shareholders.


29



PART IV

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

(a) 1. FINANCIAL STATEMENTS

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

(a) 2. FINANCIAL STATEMENT SCHEDULES

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

(a) 3. EXHIBITS

Exhibit
Number Description
------ -----------

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

3.2 Amended By-Laws of Wilshire Oil Company of Texas (Incorporated by
reference to Exhibit (3)(ii) of Item 7 of the Registrant's
Current Report on Form 8-K dated February 13, 1996).

4.1 Oil and Gas Loan between Wilshire Oil Company of Texas and
Midlantic National Bank dated March 24, 1994 (Incorporated by
reference to Exhibit 4.2 of Item 14 of the Registrant's Annual
Report on Form 10-K for the year ended December 31, 1994).

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


30



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

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

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

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

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

11. Computation of Earnings Per Share

21. List of significant subsidiaries of the Registrant

23. Consent of Arthur Andersen LLP

27. Financial Data Schedule

14(b) REPORTS ON FORM 8

There were no Form 8-K filings by the Company during the fourth
quarter of 1995.


31


EXHIBIT 11 - STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS:

NET INCOME PER SHARE -

Net income per share is based upon the weighted average number of
shares outstanding during the year, after deduction of Treasury Stock, as well
as the dilutive effect of stock options, if material.





1995 1994

Shares -

Weighted average shares outstanding 9,594,040 9,925,307

Dilutive effect of stock options outstanding -0- -0-
---------- ----------
9,594,040 9,925,307

Net income $4,300,000 $3,577,000
---------- ----------

Net income per share $ .45 $ .36
---------- ----------



32



EXHIBIT 22 - LIST OF SUBSIDIARIES


Jurisdiction of
Incorporation
---------------

Wilshire Oil of Canada, Ltd. Alberta, Canada
Calgary, Alberta, Canada

Britalata Venezolano, Ltd. Alberta, Canada
Calgary, Alberta, Canada



33


S I G N A T U R E S


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


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


DIRECTORS:

By:

/s/S. Wilzig Izak
-----------------------------------
S. Wilzig Izak, Director

By:

/s/William Schwartz, M.D.
-----------------------------------
William Schwartz, M.D., Director

By:

/s/Joseph K. Schwartz
-----------------------------------
Joseph K. Schwartz, Director

By:

/s/Milton Donnenberg
-----------------------------------
Milton Donnenberg, Director

By:

/s/Ernest Wachtel
-----------------------------------
Ernest Wachtel, Director

Officers:

By:

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



Date: March 28, 1996



S I G N A T U R E S


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


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


DIRECTORS:

By:


-----------------------------------
S. Wilzig Izak, Director

By:


-----------------------------------
William Schwartz, M.D., Director

By:


-----------------------------------
Joseph K. Schwartz, Director

By:


-----------------------------------
Milton Donnenberg, Director

By:


-----------------------------------
Ernest Wachtel, Director

OFFICERS:

By:


-----------------------------------
S. Wilzig Izak
Chairman of the Board and Chief
Executive Officer
(Duly Authorized Officer and
Chief Financial Officer)



Date: March 28, 1996







ITEM 8 -- FINANCIAL STATEMENTS



WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES


INDEX TO CONSOLIDATED FINANCIAL STATEMENTS



PAGE
----
CONSOLIDATED FINANCIAL STATEMENTS:

Report of Independent Public Accountants F-2

Consolidated Balance Sheets as of December 31, 1995 and 1994 F-3

Consolidated Statements of Operations for the Years Ended
December 31, 1995, 1994 and 1993 F-4

Consolidated Statements of Shareholders' Equity for the
Years Ended December 31, 1995, 1994 and 1993 F-5

Consolidated Statements of Cash Flows for the Years Ended
December 31, 1995, 1994 and 1993 F-6

Notes to Consolidated Financial Statements F-8






F-1





REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS




To the Shareholders and
Board of Directors of

Wilshire Oil Company of Texas:

We have audited the accompanying consolidated balance sheets of Wilshire Oil
Company of Texas (a Delaware corporation) and subsidiaries as of December 31,
1995 and 1994, and the related consolidated statements of operations,
shareholders' equity and cash flows for each of the three years in the period
ended December 31, 1995. These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on
these financial statements based on our audits.

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

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Wilshire Oil Company of
Texas and subsidiaries as of December 31, 1995 and 1994, and the results of
their operations and their cash flows for each of the three years in the
period ended December 31, 1995, in conformity with generally accepted
accounting principles.


ARTHUR ANDERSEN LLP (Signature)

ARTHUR ANDERSEN LLP



Roseland, New Jersey
March 22, 1996




F-2





WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 1995 AND 1994

ASSETS



1995 1994
------------ ------------

CURRENT ASSETS:
Cash and cash equivalents............................................ $ 1,601,000 $ 907,000
Accounts receivable.................................................. 1,013,000 934,000
Marketable securities, at fair value (Notes 4 and 10)................ 30,521,000 29,989,000
Prepaid expenses and other current assets............................ 341,000 450,000
------------ ------------
Total current assets.............................................. 33,476,000 32,280,000
------------ ------------
INVESTMENT IN PREFERRED STOCK OF THE TRUST COMPANY OF NEW JERSEY
(Notes 3, 4 and 8)................................................... 6,000,000 6,000,000
------------ ------------

PROPERTY AND EQUIPMENT (Notes 2, 4, 8 and 9):
Oil and gas properties, using the full cost method of accounting.... 130,280,000 127,880,000
Real estate properties.............................................. 36,535,000 35,523,000
Other property and equipment........................................ 410,000 391,000
------------ ------------
167,225,000 163,794,000

Less- Accumulated depreciation, depletion and amortization.......... 102,515,000 98,876,000
------------ ------------

64,710,000 64,918,000
------------ ------------

$104,186,000 $103,198,000
------------ ------------
------------ ------------

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Current portion of long-term debt (Note 4).......................... $ 3,514,000 $ 2,484,000
Accounts payable.................................................... 2,042,000 2,853,000
Accrued liabilities (Note 7)........................................ 4,170,000 626,000
------------ ------------
Total current liabilities......................................... 9,726,000 5,963,000
------------ ------------

LONG-TERM DEBT, less current portion (Note 4)......................... 47,298,000 50,160,000

DEFERRED INCOME TAXES (Note 6)........................................ 17,688,000 18,636,000
------------ ------------
COMMITMENTS AND CONTINGENCIES (Note 7)

SHAREHOLDERS' EQUITY (Notes 2, 4 and 5):
Common stock, $1 par value, 15,000,000 shares authorized; issued
10,013,544 shares in 1995 and 1994................................. 10,014,000 10,014,000
Capital in excess of par value...................................... 9,925,000 10,399,000
Unrealized gain on marketable securities of $17,174,000 and
$18,487,000 in 1995 and 1994, respectively, net of income taxes.... 9,446,000 10,168,000
Accumulated earnings................................................ 6,459,000 2,822,000
------------ ------------
35,844,000 33,403,000
Less-
Treasury stock, 621,313 and 341,818 shares in 1995 and 1994, at
cost............................................................... 4,010,000 2,290,000
Cumulative foreign currency translation adjustment.................. 2,360,000 2,674,000
------------ ------------

29,474,000 28,439,000
------------ ------------
$104,186,000 $103,198,000
------------ ------------
------------ ------------


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


F-3





WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993



1995 1994 1993
----------- ----------- -----------

REVENUES (Notes 8 and 9):
Oil and gas......................................................... $ 5,672,000 $ 7,926,000 $ 8,055,000
Real estate......................................................... 8,600,000 7,885,000 6,526,000
Non-recurring gas settlement........................................ 0 0 450,000
----------- ----------- -----------
Total revenues.................................................... 14,272,000 15,811,000 15,031,000
----------- ----------- -----------
COSTS AND EXPENSES (Notes 5, 8 and 9):
Oil and gas production expenses..................................... 2,524,000 2,846,000 2,829,000
Real estate operating expenses...................................... 4,851,000 4,600,000 3,673,000
Depreciation, depletion and amortization............................ 3,451,000 4,041,000 4,608,000
General and administrative.......................................... 1,415,000 1,386,000 1,097,000
----------- ----------- -----------
Total costs and expenses.......................................... 12,241,000 12,873,000 12,207,000
----------- ----------- -----------
Income from operations............................................ 2,031,000 2,938,000 2,824,000
GAIN ON SALES OF MARKETABLE SECURITIES (Note 10)...................... 9,216,000 5,403,000 6,256,000
OTHER INCOME (Note 3)................................................. 766,000 435,000 413,000
INTEREST EXPENSE (Note 4)............................................. (4,144,000) (3,638,000) (2,776,000)
----------- ----------- -----------
Income before provision for income taxes.......................... 7,869,000 5,138,000 6,717,000
PROVISION FOR INCOME TAXES (Note 6)................................... 3,569,000 1,561,000 2,144,000
----------- ----------- -----------
Net income........................................................ $ 4,300,000 $ 3,577,000 $ 4,573,000
----------- ----------- -----------
----------- ----------- -----------
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING.................. 9,594,040 9,925,307 10,163,314
----------- ----------- -----------
----------- ----------- -----------
NET INCOME PER COMMON SHARE........................................... $ .45 $ .36 $ .45
----------- ----------- -----------
----------- ----------- -----------


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


F-4





WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993



UNREALIZED
GAIN
ON
MARKETABLE CUMULATIVE
SECURITIES, FOREIGN
COMMON STOCK CAPITAL IN NET OF ACCUMULATED CURRENCY
----------------------- EXCESS OF INCOME EARNINGS TREASURY TRANSLATION
SHARES AMOUNT PAR VALUE TAXES (DEFICIT) STOCK ADJUSTMENT
---------- ----------- ----------- ----------- ------------ ----------- -----------

BALANCE, December 31, 1992.............. 9,714,994 $ 9,715,000 $13,346,000 $ 0 $(4,279,000) $ (508,000) $(1,641,000)
Add (deduct):
Net income.......................... 0 0 0 0 4,573,000 0 0
Stock distribution (Note 5)......... 285,147 285,000 (316,000) 0 0 0 0
Amortization of deferred
compensation in connection with
nonqualified stock option plans
(Note 5)........................... 0 0 (535,000) 0 0 0 0
Exercise of stock options (Note
5)................................. 0 0 (3,000) 0 0 45,000 0
Issuance of shares in exchange for
6% Convertible Subordinated
Debentures......................... 41 0 0 0 0 0 0
Purchase of treasury stock.......... 0 0 0 0 0 (1,409,000) 0
Payment of cash dividends, $.05 per
common share....................... 0 0 0 0 (482,000) 0 0
Net translation adjustment, current
year............................... 0 0 0 0 0 0 (406,000)
Unrealized gain on marketable
securities, net of income taxes.... 0 0 0 17,537,000 0 0 0
---------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE, December 31, 1993.............. 10,000,182 10,000,000 12,492,000 17,537,000 (188,000) (1,872,000) (2,047,000)
Add (deduct):
Net income.......................... 0 0 0 0 3,577,000 0 0
Stock distribution (Note 5)......... 0 0 (1,958,000) 0 0 1,929,000 0
Amortization of deferred
compensation in connection with
nonqualified stock option plans
(Note 5)........................... 0 0 (175,000) 0 0 0 0
Exercise of stock options (Note
5)................................. 0 0 (5,000) 0 0 50,000 0
Issuance of shares in exchange for
6% Convertible Subordinated
Debentures......................... 13,362 14,000 45,000 0 0 0 0
Purchase of treasury stock.......... 0 0 0 0 0 (2,397,000) 0
Payment of cash dividends, $.06 per
common share....................... 0 0 0 0 (567,000) 0 0
Net translation adjustment, current
year............................... 0 0 0 0 0 0 (627,000)
Change in unrealized gain on
marketable securities, net of
income taxes....................... 0 0 0 (7,369,000) 0 0 0
---------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE, December 31, 1994.............. 10,013,544 10,014,000 10,399,000 10,168,000 2,822,000 (2,290,000) (2,674,000)
Add (deduct):
Net income.......................... 0 0 0 0 4,300,000 0 0
Amortization of deferred
compensation in connection with
nonqualified stock option plans
(Note 5)........................... 0 0 (474,000) 0 0 0 0
Purchase of treasury stock.......... 0 0 0 0 0 (1,720,000) 0
Payment of cash dividends, $.07 per
common share....................... 0 0 0 0 (663,000) 0 0
Net translation adjustment, current
year............................... 0 0 0 0 0 0 314,000
Change in unrealized gain on
marketable securities, net of
income taxes....................... 0 0 0 (722,000) 0 0 0
---------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE, December 31, 1995.............. 10,013,544 $10,014,000 $ 9,925,000 $ 9,446,000 $ 6,459,000 $(4,010,000) $(2,360,000)
---------- ----------- ----------- ----------- ----------- ----------- -----------
---------- ----------- ----------- ----------- ----------- ----------- -----------


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


F-5





WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993



1995 1994 1993
----------- ------------ -----------

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income.......................................................... $ 4,300,000 $ 3,577,000 $ 4,573,000
Adjustments to reconcile net income to net cash provided by
operating activities-
Depreciation, depletion and amortization.......................... 3,451,000 4,041,000 4,608,000
Deferred income tax (benefit) provision........................... (385,000) 1,156,000 1,526,000
Adjustment of deferred and unearned compensation in connection
with nonqualified stock option plan, net......................... (143,000) (49,000) (124,000)
Gain on sales of marketable securities............................ (9,216,000) (5,403,000) (6,256,000)
Foreign currency transactions..................................... (13,000) (18,000) (18,000)
Changes in operating assets and liabilities-
(Increase) decrease in accounts receivable...................... (73,000) 289,000 (931,000)
Decrease (increase) in prepaid expenses and other current
assets......................................................... 59,000 (231,000) 37,000
(Decrease) increase in accounts payable, accrued and other
liabilities.................................................... 2,765,000 1,084,000 (926,000)
----------- ------------ -----------
Net cash provided by operating activities..................... 745,000 4,446,000 2,489,000
----------- ------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures, net........................................... (3,212,000) (14,181,000) (8,725,000)
Purchases of marketable securities.................................. (3,130,000) (5,204,000) (2,170,000)
Proceeds from sales of marketable securities........................ 10,501,000 6,710,000 6,730,000
Decrease in receivables from securities sales....................... 0 3,409,000 0
Purchase of preferred stock of The Trust Company of New Jersey...... 0 (3,000,000) 0
----------- ------------ -----------
Net cash provided by (used in) investing activities........... 4,159,000 (12,266,000) (4,165,000)
----------- ------------ -----------




F-6







1995 1994 1993
----------- ------------ -----------


CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt............................ $ 650,000 $ 22,083,000 $ 3,209,000
Principal payments of long-term debt................................ (2,482,000) (11,997,000) (1,127,000)
Purchase of treasury stock.......................................... (1,720,000) (2,397,000) (1,409,000)
Payment of cash dividends........................................... (663,000) (567,000) (482,000)
Exercise of stock options........................................... 0 45,000 42,000
----------- ------------ -----------
Net cash (used in) provided by financing activities........... (4,215,000) 7,167,000 233,000
----------- ------------ -----------
EFFECT OF EXCHANGE RATE CHANGES ON CASH............................... 5,000 (6,000) (42,000)
----------- ------------ -----------
Net increase (decrease) in cash and cash equivalents.......... 694,000 (659,000) (1,485,000)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR........................ 907,000 1,566,000 3,051,000
----------- ------------ -----------
CASH AND CASH EQUIVALENTS AT END OF YEAR.............................. $ 1,601,000 $ 907,000 $ 1,566,000
----------- ------------ -----------
----------- ------------ -----------
SUPPLEMENTAL DISCLOSURES TO THE STATEMENTS OF CASH FLOWS:
Cash paid during the year for-
Interest.......................................................... $ 4,040,000 $ 3,594,000 $ 2,846,000
Income taxes, net................................................. 369,000 680,000 2,085,000
----------- ------------ -----------
----------- ------------ -----------


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


F-7





WILSHIRE OIL COMPANY OF TEXAS AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(1) DESCRIPTION OF BUSINESS:

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

(2) SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES:

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

PRINCIPLES OF CONSOLIDATION-

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

PERVASIVENESS OF ESTIMATES-

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

CASH AND CASH EQUIVALENTS-

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

MARKETABLE SECURITIES-

The Company has adopted Statement of Financial Accounting Standards No.
115, "Accounting for Certain Investments in Debt and Equity Securities"
(SFAS 115). As of December 31, 1995 and 1994, the marketable securities
of the Company subject to the provisions of SFAS 115 consist primarily of
equity securities. These securities are held for indefinite periods of
time and are thus carried at fair value in accordance with the standard.
Differences between an investment's cost and its fair value are charged
(credited) directly to shareholders' equity, net of related deferred
income taxes. The cost of securities sold is determined on a specific
identification basis.


F-8





As of December 31, 1995 and 1994, the net unrealized holding gains were
$17,174,000, and $18,487,000, respectively. The net unrealized holding
gains are included as a credit to shareholders' equity, net of deferred
income taxes of $7,728,000 and $8,319,000 for 1995 and 1994,
respectively.

PROPERTY AND EQUIPMENT-

OIL AND GAS PROPERTIES-

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

Capitalized costs are subject to a "ceiling" test that limits such costs
to the aggregate of the estimated present value of the future net
revenues of proved reserves and the lower of cost or fair value of
unproved properties. Management is of the opinion that, based on
reserve reports of petroleum engineers and geologists, the fair value of
the estimated recoverable oil and gas reserves exceeds the unamortized
cost of oil and gas properties at December 31, 1995 and 1994.

REAL ESTATE AND OTHER PROPERTIES-

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

As of December 31, 1995 and 1994, real estate properties consist of land
with an aggregate cost of $7,928,000 and $7,928,000, buildings with an
aggregate cost of $26,644,000 and $26,257,000 and furniture and fixtures
with an aggregate cost of $1,963,000 and $1,338,000, respectively.

IMPAIRMENT OF PROPERTY AND EQUIPMENT-

During 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 121, "Accounting for the
Impairment of Long-Lived Assets." The Company is required to adopt this
standard for the year ending December 31, 1996. The Company does not
expect that the adoption of this standard will have a material adverse
impact on its financial condition or results of operations.


F-9





DEFERRED INCOME TAXES-

Certain transactions are recorded in the accounts in a period different
from that in which these transactions are reported for income tax
purposes. These transactions, as well as other temporary differences
between the basis in assets and liabilities for financial reporting and
income tax purposes, result in deferred income taxes. The principal
transactions are those related to intangible drilling costs, exploration
costs, expired leases, depreciation and nonproducing well costs (see Note
6).

INCOME TAXES ON
UNREMITTED EARNINGS-

Unremitted earnings of the Canadian subsidiary are intended to be
permanently invested in Canada and are subject to foreign taxes
substantially equivalent to United States Federal income taxes. The
unremitted earnings on which the Company has not been required to provide
Federal income taxes amounted to approximately $14,628,000 at December
31, 1995.

ACCOUNTING FOR STOCK-BASED COMPENSATION-

The Financial Accounting Standards Board has issued Statement of
Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation." The Company is required to adopt this standard for the
year ending December 31, 1996. The adoption of this pronouncement will
have no impact on the Company's financial condition or results of
operations, however additional disclosures in the financial statements
will be required.

FOREIGN CURRENCY TRANSLATION-

The assets and liabilities of the Canadian subsidiary have been
translated at current exchange rates, and related revenues and expenses
have been translated at average annual exchange rates. The aggregate
effect of translation losses have been deferred as a separate component
of shareholders' equity until the sale or liquidation of the underlying
foreign investment.

NET INCOME PER COMMON SHARE-

Net income per common share is based upon the weighted average number of
shares outstanding during the year, after deduction of treasury stock, as
well as the dilutive effect of stock options, if material.

RECLASSIFICATIONS-

Certain reclassifications have been made to the 1994 and 1993 amounts in
order to conform with the 1995 presentation.


F-10





(3) INVESTMENT IN PREFERRED STOCK
OF THE TRUST COMPANY OF NEW JERSEY:

The Company owns 60,000 shares of The Trust Company of New Jersey's (The
Trust Company) 9-3/4% preferred stock, which is stated at its original cost.
Annual dividends of $585,000, $439,000 and $293,000 were received on the
preferred shares in 1995, 1994 and 1993, respectively. In accordance with
the agreements, the preferred shares are callable in whole or in part at the
option of The Trust Company and there are certain restrictions on the
payment and accumulation of dividends. In addition, the Company has agreed
to waive its voting rights with respect to these shares.

(4) LONG-TERM DEBT:

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

1995 1994
----------- -----------
Term loan payable (a) $ 3,500,000 $ 3,900,000
Note payable (b) 16,400,000 17,850,000
Term loans payable (c) 2,480,000 2,880,000
Mortgage notes payable (d) 27,782,000 28,014,000
Promissory Note (e) 650,000 0
----------- -----------
50,812,000 52,644,000
Less-Current portion 3,514,000 2,484,000
----------- -----------
$47,298,000 $50,160,000
----------- -----------
----------- -----------

(a) The term loan payable bears interest at the prime lending rate (8.5% at
December 31, 1995). The loan agreement provides for repayment of
principal in quarterly installments with the balance due in April, 1999.
It also limits the amount of new debt without the bank's approval. The
loan is secured by substantially all of the domestic oil and gas
producing properties as well as marketable securities with a market
value of approximately $2,000,000 at December 31, 1995.

(b) The note bears interest at the prime lending rate. The note is payable
in quarterly installments and matures in September, 1999 and is secured
by 30,000 shares of the preferred stock of The Trust Company and
marketable securities with a market value of approximately $22,980,000
at December 31, 1995.

(c) At December 31, 1995, the Company had a term loan payable to The Trust
Company totaling $2,480,000 payable in quarterly installments and
maturing in August, 1997. The term loan bears interest at the prime
lending rate and is collateralized by marketable securities with a
market value of approximately $3,267,000 at December 31, 1995.

(d) At December 31, 1995, the Company had mortgage notes payable to The
Trust Company totaling $27,782,000, payable in installments, bearing
interest at a weighted average effective interest rate of 7.1%. These
mortgage notes are secured by a first mortgage interest in the Company's
real estate properties.


F-11





(e) The promissory note bears interest at the bank's certificate of deposit
rate plus one percent (4.95% at December 31, 1995). The note plus
accrued interest was paid in full on March 18, 1996, maturity date.

The aggregate maturities of the long-term debt in each of the five years
subsequent to 1995 are-

1996 $ 3,514,000
1997 4,669,000
1998 2,928,000
1999 13,071,000
2000 261,000
Thereafter 26,369,000
-----------
$50,812,000
-----------
-----------

(5) STOCK OPTIONS:

Under various stock option plans adopted prior to 1995, stock options to
purchase an aggregate of 374,491 shares of common stock were outstanding to
officers, key consultants and employees at December 31, 1995.

In June, 1995, the Company adopted two new stock-based compensation plans
(1995 Stock Option and Incentive Plan "Incentive Plan"; and 1995 Non-
employee Director Stock Option Plan "Director Plan") under which up to
450,000 and 150,000 shares, respectively, are available for grant. During
1995, the Company granted 3,000 and 35,000 options to purchase future shares
of common stock under the Incentive Plan and Director Plan, respectively.

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

The following table summarizes stock option activity for 1995 and 1994-



1995 1994
---------------------- ----------------------
Price Price
Shares Low-High Shares Low-High
------- ----------- --------- -----------

Options outstanding at
beginning of year 374,491 $1.00-6.71 502,932 $1.00-$6.92
Adjustment for stock
dividend 0 0 10,895 0
Options granted 38,000 $6/13-$6.19 0 0
Options exercised 0 0 (5,983) $2.39-$5.34
Options terminated and
expired 0 0 (133,353) $1.00-$5.34
------- ----------- -------- -----------
Options outstanding at
end of year (a) 412,491 $1.00-$6.71 374,491 $1.00-$6.71
------- ----------- -------- -----------
------- ----------- -------- -----------
Options exercisable at
end of year 367,138 $1.00-$6.71 346,841 $1.00-$6.71
------- ----------- -------- -----------
------- ----------- -------- -----------




F-12





(a) At December 31, 1995, options outstanding include 236,667 options ($1.00
to $4.44 per share) granted to certain employees or key consultants
whereby the initial option price as determined by the Committee is
subject to reduction (to a minimum of $1) by an amount equal to the
increase in market value from the date of grant. Included in these
options are 212,841 options with attached stock appreciation rights,
pursuant to which the Company may elect to grant cash, stock or a
combination of cash and stock in lieu of the stock appreciation value.
Additional compensation attributable to these options is charged to
income or capitalized as exploration and development costs over
calculated periods of employment based on the duties performed by the
individuals awarded the options. During 1995, 1994 and 1993, $143,000,
$49,000 and $124,000, respectively, was credited to operations, and
$331,000, $113,000 and $379,000, respectively, was credited to oil and
gas properties relating to such options.

(6) INCOME TAXES:

Income taxes consist of the following-

1995 1994 1993
---------- ---------- ----------
Federal
Current $3,479,000 $ 333,000 $ 563,000
Deferred (463,000) 1,076,000 1,413,000
---------- ---------- ----------
3,016,000 1,409,000 1,976,000
---------- ---------- ----------
Foreign
Current 0 72,000 55,000
Deferred 78,000 80,000 113,000
---------- ---------- ----------
78,000 152,000 168,000
---------- ---------- ----------

State 475,000 0 0
---------- ---------- ----------
Total $3,569,000 $1,561,000 $2,144,000
---------- ---------- ----------
---------- ---------- ----------

Prior to 1995, no provision for state income taxes was necessary since the
Company had net operating loss carryforwards which were available to offset
taxable income.

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

1995 1994 1993
---------- ---------- ----------
Federal income tax provision
at statutory rate $2,754,000 $1,798,000 $2,351,000
State income tax provision, net of
Federal benefit 309,000 0 0
Foreign resource tax credits, net (129,000) (112,000) (170,000)
Dividend exclusion (185,000) (139,000) (86,000)
Provision for Internal Revenue Service
review (Note 7) 785,000 0 0
Other 35,000 14,000 49,000
---------- ---------- ----------

$3,569,000 $1,561,000 $2,144,000
---------- ---------- ----------
---------- ---------- ----------
Effective tax rate 45.4% 30.4% 31.9%
---------- ---------- ----------
---------- ---------- ----------


F-13





The deferred income tax (benefit) provision in 1995, 1994 and 1993 amounted
to ($385,000), $1,156,000, $1,526,000, respectively. Significant components
of deferred tax assets and liabilities as of December 31, 1994 and 1995 were
as follows-

1995 1994
----------- -----------
Deferred tax assets-
Tax credit carryforwards $ 259,000 $ 215,000
----------- -----------
----------- -----------
Deferred tax liabilities-
Tax over book depreciation, depletion and
amortization-
Oil and gas properties -- U. S. $ 5,081,000 $ 5,050,000
Oil and gas properties -- Canada 5,138,000 5,482,000
Unrealized gain on marketable securities 7,728,000 8,319,000
----------- -----------
17,947,000 18,851,000
----------- -----------
Total deferred tax liabilities, net $17,688,000 $18,636,000
----------- -----------
----------- -----------

(7) COMMITMENTS AND CONTINGENCIES:

Federal income tax returns of the Company and its subsidiaries for the years
1975 through 1983 are under review by the Internal Revenue Service. The
Company has received a notice of assessment from the Internal Revenue
Service and expects to complete final settlement of this Federal tax
liability during 1996. Included in accrued liabilities within the
consolidated balance sheet at December 31, 1995 is $3,129,000 which
management believes is adequate to cover the final settlement.

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

(8) SEGMENT INFORMATION:

Segment information by industry and geographic area is as follows-

1995 1994 1993
------------ ------------ ------------
Identifiable assets-
Oil and gas-United States $ 18,238,000 $ 18,559,000 $ 18,722,000
Oil and gas-Canada 13,333,000 13,164,000 13,274,000
Real estate 34,185,000 34,159,000 24,989,000
Corporate 38,481,000 37,316,000 47,667,000
------------ ------------ ------------
$104,237,000 $103,198,000 $104,652,000
------------ ------------ ------------
------------ ------------ ------------
Gross revenues-
Oil and gas-United States $ 4,216,000 $ 6,148,000 $ 6,579,000
Oil and gas-Canada 1,456,000 1,778,000 1,926,000
Real estate 8,600,000 7,885,000 6,526,000
------------ ------------ ------------
$ 14,272,000 $ 15,811,000 $ 15,031,000
------------ ------------ ------------
------------ ------------ ------------


F-14





1995 1994 1993
------------ ------------ ------------
Depreciation, depletion
and amortization-
Oil and gas-United States $ 1,930,000 $ 2,754,000 $ 3,613,000
Oil and gas-Canada 471,000 396,000 323,000
Real estate 1,037,000 870,000 653,000
Corporate 13,000 21,000 19,000
------------ ------------ ------------

$ 3,451,000 $ 4,041,000 $ 4,608,000
------------ ------------ ------------
------------ ------------ ------------
Capital expenditures-
Oil and gas-United States $ 1,786,000 $ 2,822,000 $ 2,760,000
Oil and gas-Canada 395,000 1,055,000 676,000
Real estate 1,012,000 11,162,000 5,150,000
Corporate 19,000 18,000 20,000
------------ ------------ ------------

$ 3,212,000 $ 15,057,000 $ 8,606,000
------------ ------------ ------------
------------ ------------ ------------
Income (loss) from operations-
Oil and gas-United States $ (578,000) $ 334,000 $ 330,000
Oil and gas-Canada 221,000 692,000 827,000
Real estate 2,712,000 2,415,000 2,200,000
Corporate (324,000) (503,000) (533,000)
------------ ------------ ------------
$ 2,031,000 $ 2,938,000 $ 2,824,000
------------ ------------ ------------
------------ ------------ ------------

All of the Company's investments in marketable securities and preferred
stock are held by the United States segment and are included as corporate
assets.

(9) OIL AND GAS PRODUCING ACTIVITIES:

The following data represents the Company's oil and gas producing activity
for 1995 and 1994-


1995 1994
------------ ------------
Capitalized costs (all being amortized)-
Productive and nonproductive properties $125,240,000 $122,980,000
Unevaluated properties 5,040,000 4,900,000
------------ ------------
Total capitalized costs being amortized 130,280,000 127,880,000
------------ ------------
Less- Accumulated depreciation,
depletion and amortization 99,460,000 96,820,000
------------ ------------
Net capitalized costs $ 30,820,000 $ 31,060,000
------------ ------------
------------ ------------


F-15





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




United States Canada
---------------------------------- ----------------------------------
1995 1994 1993 1995 1994 1993
---------- ---------- ---------- ---------- ---------- ----------

Acquisition of unproved
properties $ 153,000 $ 110,000 $ 425,000 $ 78,000 $ 147,000 $ 87,000
Exploration 614,000 654,000 287,000 111,000 108,000 136,000
Development 1,020,000 2,058,000 2,048,000 207,000 800,000 453,000
---------- ---------- ---------- ---------- ---------- ----------
Total costs incurred $1,787,000 $2,822,000 $2,760,000 $ 396,000 $1,055,000 $ 676,000
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
Revenues from oil and
gas producing activities $4,216,000 $6,148,000 $6,579,000 $1,456,000 $1,778,000 $1,926,000
Production costs 2,090,000 2,410,000 2,272,000 434,000 436,000 557,000
Technical support
and other 774,000 650,000 364,000 330,000 254,000 219,000
Depreciation, depletion
and amortization 1,930,000 2,754,000 3,613,000 471,000 396,000 323,000
---------- ---------- ---------- ---------- ---------- ----------
Total expenses 4,794,000 5,814,000 6,249,000 1,235,000 1,086,000 1,099,000
---------- ---------- ---------- ---------- ---------- ----------
Pretax income (loss)
from oil and gas
producing activities (578,000) 334,000 330,000 221,000 692,000 827,000
Income tax provision
(benefit) 202,000) 117,000 116,000 27,000 152,000 168,000
---------- ---------- ---------- ---------- ---------- ----------
Results of oil and gas
producing activities $ (376,000) $ 217,000 $ 214,000 $ 194,000 $ 540,000 $ 659,000
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------



(10) GAIN ON SALES OF MARKETABLE SECURITIES:

The Company realized gains from the sales of common shares of Jacobs
Engineering Group, Inc. (Jacobs) of $9,182,000 in 1995 and $5,457,000 in
1994. As of December 31, 1995 and 1994, the Company continued to hold
1,059,660 and 1,412,960 shares of Jacobs stock at an aggregate cost of
$8,756,000 and $7,587,000 and an aggregate market value of $26,492,000 and
$26,140,000, respectively.





F-16