<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO. 1 TO
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended Commission File Number
March 31, 1995 2-59769-03 (1978-1)
2-59769-04 (1978-2)
DYCO 1978 OIL AND GAS PROGRAMS
(TWO LIMITED PARTNERSHIPS)
(Exact Name of Registrant as specified in its charter)
41-1343930 (1978-1)
Minnesota 41-1343935 (1978-2)
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or organization) Number)
Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103
-------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(918) 583-1791
---------------------------------------------------
(Registrant's telephone number, including area code)
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 (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
----- -----
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1995 1994
--------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 52,177 $ 35,769
Accrued oil and gas sales, including
$16,546 and $22,230 due from
related parties (Note 2) . . . . . . 20,755 26,596
-------- --------
Total current assets . . . . . . . $ 72,932 $ 62,365
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 248,873 259,917
DEFERRED CHARGE . . . . . . . . . . . . . 43,290 43,290
-------- --------
$365,095 $365,572
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 2,618 $ 2,781
-------- --------
Total current liabilities . . . . . . $ 2,618 $ 2,781
ACCRUED LIABILITY . . . . . . . . . . . . 22,425 22,425
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
24 units . . . . . . . . . . . . . . 3,401 3,404
Limited Partners, issued and outstanding,
2,400 units . . . . . . . . . . . . 336,651 336,962
-------- --------
Total Partners' capital . . . . . . $340,052 $340,366
-------- --------
$365,095 $365,572
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-2-
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<PAGE>
DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
1995 1994
--------- ----------
REVENUES:
Oil and gas sales, including
$27,291 and $80,858 of sales
to related parties (Note 2) . . . . $32,288 $94,098
Interest . . . . . . . . . . . . . . . 413 564
------- -------
$32,701 $94,662
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $12,171 $17,709
Depreciation, depletion, and amortization of
oil and gas properties . . . . . . . 11,044 24,198
General and administrative (Note 2) . 9,800 9,270
------- -------
$33,015 $51,177
------- -------
NET (LOSS) INCOME . . . . . . . . . . . . ($ 314) $43,485
======= =======
GENERAL PARTNER (1%) - net (loss) income ($ 3) $ 435
======= =======
LIMITED PARTNERS (99%) - net (loss) income ($ 311) $43,050
======= =======
NET (LOSS) INCOME PER UNIT . . . . . . . ($ .13) $ 18
======= =======
UNITS OUTSTANDING . . . . . . . . . . . . 2,424 2,424
======= =======
The accompanying condensed notes are an
integral part of these financial statements.
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<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
1995 1994
---------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income . . . . . . . . . . ($ 314) $ 43,485
Adjustments to reconcile net (loss)
income to net cash provided (used) by
operating activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . . 11,044 24,198
Decrease (increase) in accrued oil
gas sales . . . . . . . . . . . . 5,841 ( 11,432)
Decrease in accounts payable . . . . ( 163) ( 133)
Decrease in related party payable . - ( 171,055)
------- --------
Net cash provided (used) by operating
activities . . . . . . . . . . . . $16,408 ($114,937)
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . $ - ($ 131)
------- --------
Net cash used by investing activities $ - ($ 131)
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . $ - ($ 60,600)
------- --------
Net cash used by financing activities $ - ($ 60,600)
------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS . . . . . . . . . . . $16,408 ($175,668)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 35,769 234,274
------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $52,177 $ 58,606
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
-4-
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<PAGE>
DYCO OIL AND GAS PROGRAM 1978-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1995 1994
------------------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 27,382 $ 7,831
Accrued oil and gas sales, including
$11,398 and $17,560 due from
related parties (Note 2) . . . . . . 20,704 27,923
-------- --------
Total current assets . . . . . . . $ 48,086 $ 35,754
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 73,311 80,941
DEFERRED CHARGE . . . . . . . . . . . . . 10,687 10,687
-------- --------
$132,084 $127,382
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 3,012 $ 3,111
-------- --------
Total current liabilities . . . . . $ 3,012 $ 3,111
ACCRUED LIABILITY . . . . . . . . . . . . 12,878 12,878
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
16 units . . . . . . . . . . . . . . 1,162 1,114
Limited Partners, issued and outstanding,
1,600 units . . . . . . . . . . . . 115,032 110,279
-------- --------
Total Partners' capital . . . . . . $116,194 $111,393
-------- --------
$132,084 $127,382
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-5-
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<PAGE>
DYCO OIL AND GAS PROGRAM 1978-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$19,865 and $33,428 of sales
to related parties (Note 2) . . . . $30,771 $94,227
Interest . . . . . . . . . . . . . . . 74 255
------- -------
$30,845 $94,482
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $10,560 $21,469
Depreciation, depletion, and amortization
of oil and gas properties . . . . . . 7,630 18,243
General and administrative (Note 2) . 7,854 7,623
------- -------
$26,044 $47,335
------- -------
NET INCOME . . . . . . . . . . . . . . . $ 4,801 $47,147
======= =======
GENERAL PARTNER (1%) - net income . . . . $ 48 $ 471
======= =======
LIMITED PARTNERS (99%) - net income . . . $ 4,753 $46,676
======= =======
NET INCOME PER UNIT . . . . . . . . . . . $ 3 $ 29
======= =======
UNITS OUTSTANDING . . . . . . . . . . . . 1,616 1,616
======= =======
The accompanying condensed notes are an
integral part of these financial statements.
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<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1978-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
1995 1994
-------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . $ 4,801 $47,147
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . 7,630 18,243
Decrease in accrued oil and gas sales 7,219 4,328
Decrease in payable to General Partner - ( 6,900)
(Decrease) increase in accounts payable ( 99) 568
------- -------
Net cash provided by operating activities $19,551 $63,386
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used by investing activities $ - $ -
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . $ - ($80,800)
------- -------
Net cash used by financing activities $ - ($80,000)
------- -------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . $19,551 ($17,414)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 7,831 24,573
------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $27,382 $ 7,159
======= =======
The accompanying condensed notes are an
integral part of these financial statements.
-7-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1978-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of March 31, 1995, statements of
operations for the three months ended March 31, 1995 and 1994,
and statements of cash flows for the three months ended March
31, 1995 and 1994 have been prepared by Dyco Petroleum
Corporation ("Dyco"), the General Partner of the Dyco Oil and
Gas Program 1978-1 and 1978-2 Limited Partnerships
(individually, the "1978-1 Program" or the "1978-2 Program", as
the case may be, or, collectively, the "Programs"), without
audit. In the opinion of management all adjustments (which
include only normal recurring adjustments) necessary to present
fairly the financial position at March 31, 1995, and results of
operations and changes in cash flows for the three months ended
March 31, 1995 and 1994 have been made.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto
included in the Programs' Annual Report on Form 10-K for the
year ended December 31, 1994. The results of operations for the
period ended March 31, 1995 are not necessarily indicative of
the results to be expected for the full year.
The limited partners' net income or loss per unit is based upon
each $5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost
method of accounting. All productive and non-productive costs
associated with the acquisition, exploration and development of
oil and gas reserves are capitalized. Sales and abandonments of
properties are accounted for as adjustments of capitalized costs
with no gain or loss recognized, unless such adjustments would
significantly alter the relationship between capitalized costs
and proved oil and gas reserves.
The provision for depreciation, depletion, and amortization of
oil and gas properties is calculated by dividing the oil and gas
sales dollars during the year by the estimated future gross
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income from the oil and gas properties and applying the
resulting rate to the net remaining costs of oil and gas
properties that have been capitalized, plus estimated future
development costs.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each of the Program's partnership agreement,
Dyco is entitled to receive a reimbursement for all direct
expenses and general and administrative, geological and
engineering expenses it incurs on behalf of the Program. During
the three months ended March 31, 1995 and 1994 the 1978-1
Program incurred such expenses totaling $9,800 and $9,270,
respectively, of which $6,219 and $6,219 were paid to Dyco.
During the three months ended March 31, 1995 and 1994 the 1978-2
Program incurred such expenses totaling $7,854 and $7,623,
respectively, of which $5,472 and $5,472 were paid to Dyco.
Affiliates of the Programs are the operators of certain of the
Programs' properties and their policy is to bill the Programs
for all customary charges and cost reimbursements associated
with their activities, together with any compressor rentals,
consulting, or other services provided.
The Programs sell gas at market prices to Premier Gas Company
("Premier"), an affiliated company, and Premier may then resell
such gas to third parties at market prices. During the three
months ended March 31, 1995 and 1994 these sales for the 1978-1
Program totaled $27,291 and $80,858, respectively. At March 31,
1995 accrued oil and gas sales for the 1978-1 Program included
$16,546 due from Premier. During the three months ended March
31, 1995 and 1994 these sales for the 1978-2 Program totaled
$19,865 and $33,428, respectively. At March 31, 1995 accrued
oil and gas sales for the 1978-2 Program included $11,398 due
from Premier.
3. CONTINGENCIES
-------------
On November 12, 1993, two royalty owners filed a class action
lawsuit against Dyco in which the plaintiffs alleged entitlement
to a share of the proceeds of a take-or-pay settlement with a
gas purchaser which involved one of the Program's wells. This
lawsuit is a successor lawsuit to a suit that was filed in 1991
and dismissed in 1993 following a district court's failure to
certify a class action. The lawsuit also alleged claims based
on breach of contract, bad faith breach of contract, breach of
an implied covenant to market, unjust enrichment, and
-9-
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<PAGE>
constructive fraud and requested an accounting and a temporary
restraining order. The plaintiffs have not quantified the
amount of their alleged damages. The district court has
certified the matter as a class action and Dyco has appealed the
court's order. Dyco's appeal is currently pending. Dyco has
also filed its answer in the mater in which it denied all of the
plaintiffs' allegations. Discovery is proceeding in the matter
and Dyco intends to vigorously defend the lawsuit. As of the
date of these financial statements, management cannot determine
the amount of any alleged damages which would be allocable to
the Program.
On March 5, 1992 Walter K. Spurlin, et al. filed a lawsuit
against Dyco in which the plaintiffs alleged that Dyco, as
operator of one of the Program's wells, failed to respond to
their request for an accounting of production. The plaintiffs
are seeking a full accounting of all production from the well
and judgment for breach of contract and their alleged share of
the proceeds from certain gas contract settlements. The
plaintiffs have not quantified the amount of their alleged
damages. Dyco has filed its answer in the matter in which it
denied all of the plaintiffs' allegations and discovery is
ongoing. Dyco intends to vigorously defend the lawsuit. On
April 21, 1992, Dyco's motion to dismiss plaintiff's claim for
tortious breach of contract was granted, thereby eliminating any
punitive damages claims. As of the date of these financial
statements, management cannot determine the amount of alleged
damages which would be allocable to the Program.
-10-
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<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Net proceeds from the Programs' operations less necessary
operating capital are distributed to investors on a quarterly
basis. The net proceeds from production are not reinvested in
productive assets, except to the extent that producing wells
are improved or where methods are employed to permit more
efficient recovery of the Programs' reserves which would
result in a positive economic impact.
The Programs' available capital from subscriptions has been
spent on oil and gas drilling activities. There should not be
any further material capital resource commitments in the
future. The Programs' have no bank debt commitments. Cash
for operational purposes will be provided by current oil and
gas production.
RESULTS OF OPERATIONS
---------------------
1978-1 PROGRAM
THREE MONTHS ENDED MARCH 31, 1995 AS COMPARED TO THE THREE
MONTHS ENDED MARCH 31, 1994.
Three Months ended March 31,
----------------------------
1995 1994
---- ----
Oil and gas sales $32,288 $94,098
Oil and gas production expenses $12,171 $17,709
Barrels produced 167 285
Mcf produced 24,645 64,468
Average price/Bbl $ 10.68 $ 15.16
Average price/Mcf $ 1.24 $ 1.39
As shown in the table, oil and natural gas sales decreased
65.7% for the three months ended March 31, 1995 as compared to
the three months ended March 31, 1994. This decrease resulted
from the decreases in the volumes and average prices of oil
and natural gas sold. Volumes of oil and natural gas sold
decreased 118 barrels and 39,823 Mcf, respectively, for the
three months ended March 31, 1995 as compared to the three
months ended March 31, 1994. The decrease in the volumes of
natural gas sold was primarily the result of significant
positive 1991 volume adjustments from a purchaser on a certain
well during the three months ended March 31, 1994. Average
oil and natural gas prices decreased to $10.68 per barrel and
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<PAGE>
$1.24 per Mcf for the three months ended March 31, 1995 from
$15.16 per barrel and $1.39 per Mcf for the three months ended
March 31, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $5,538 for the three
months ended March 31, 1995 as compared to the three months
ended March 31, 1994. This decrease was consistent with the
decreases in the volumes of oil and natural gas sold during
the three months ended March 31, 1995 as compared to the three
months ended March 31, 1994. As a percentage of oil and gas
sales, these expenses increased to 37.7% for the three months
ended March 31, 1995 from 18.8% for the three months ended
March 31, 1994. This percentage increase was primarily a
result of the decreases in the volumes and average prices of
oil and natural gas sold during the three months ended March
31, 1995 as compared to the similar period in 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $13,154 for the three months ended March
31, 1995 as compared to the three months ended March 31, 1994.
This decrease was consistent with the decreases in the volumes
of oil and natural gas sold during the three months ended
March 31, 1995 as compared to the three months ended March 31,
1994. As a percentage of oil and gas sales, this expense
increased to 34.2% for the three months ended March 31, 1995
from 25.7% for the three months ended March 31, 1994. This
percentage increase was primarily due to the decreases in the
average prices oil and natural gas sold during the three
months ended March 31, 1995 as compared to the similar period
in 1994.
General and administrative expenses remained relatively
constant for the three months ended March 31, 1995 as compared
to the three months ended March 31, 1994. As a percentage of
oil and gas sales, these expenses increased to 30.4% for the
three months ended March 31, 1995 from 9.9% for the three
months ended March 31, 1994. This percentage increase was
primarily due to decreases in the volumes and average prices
of oil and natural gas sold during the three months ended
March 31, 1995 as compared to the similar period in 1994.
1978-2 PROGRAM
THREE MONTHS ENDED MARCH 31, 1995 AS COMPARED TO THE THREE
MONTHS ENDED MARCH 31, 1994.
-12-
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<PAGE>
Three Months ended March 31,
----------------------------
1995 1994
---- ----
Oil and gas sales $30,771 $94,227
Oil and gas production expenses $10,560 $21,469
Barrels produced 490 1,082
Mcf produced 19,024 54,056
Average price/Bbl $ 16.59 $ 17.13
Average price/Mcf $ 1.19 $ 1.40
As shown in the table, oil and natural gas sales decreased
67.3% for the three months ended March 31, 1995 as compared to
the three months ended March 31, 1994. This decrease resulted
from the decreases in the volumes and average prices of oil
and natural gas sold. Volumes of oil and natural gas sold
decreased 592 barrels and 35,032 Mcf, respectively, for the
three months ended March 31, 1995 as compared to the three
months ended March 31, 1994. The decrease in the volumes of
natural gas sold was primarily the result of significant
positive 1991 volume adjustments from a purchaser on a certain
well during the three months ended March 31, 1994. Average
oil and natural gas prices decreased to $16.59 per barrel and
$1.19 per Mcf for the three months ended March 31, 1995 from
$17.13 per barrel and $1.40 per Mcf for the three months ended
March 31, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $10,909 for the three
months ended March 31, 1995 as compared to the three months
ended March 31, 1994. This decrease was consistent with the
decrease in volumes of oil and natural gas sold during the
three months ended March 31, 1995 as compared to the three
months ended March 31, 1994. As a percentage of oil and gas
sales, these expenses increased to 34.3% for the three months
ended March 31, 1995 from 22.8% for the three months ended
March 31, 1994. This percentage increase was primarily a
result of the decreases in the volumes and average prices of
oil and natural gas sold during the three months ended March
31, 1995 as compared to the three months ended March 31, 1994.
Depreciation, depletion and amortization of oil and gas
properties decreased $10,613 for the three months ended March
31, 1995 as compared to the three months ended March 31, 1994.
This decrease was consistent with the decreases in volumes of
oil and natural gas sold during the three months ended March
31, 1995 as compared to the three months ended March 31, 1994.
As a percentage of oil and gas sales, this expense increased
to 24.8% for the three months ended March 31, 1995 from 19.4%
for the three months ended March 31, 1994. This percentage
increase was primarily due to the decreases in the average
prices of oil and natural gas sold during the three months
ended March 31, 1995 as compared to the three months ended
March 31, 1994.
General and administrative expenses remained relatively
constant for the three months ended March 31, 1995 as compared
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<PAGE>
to the three months ended March 31, 1994. As a percentage of
oil and gas sales, these expenses increased to 25.5% for the
three months ended March 31, 1995 from 8.1% for the three
months ended March 31, 1994. This percentage increase was
primarily the result of the decreases in the volumes and
average prices of oil and natural gas sold during the three
months ended March 31, 1995 as compared to the three months
ended March 31, 1994.
-14-
<PAGE>
<PAGE>
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
-15-
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1978-2 LIMITED PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: August 24, 1995 By: /s/Dennis R. Neill
---------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: August 24, 1995 By: /s/Patrick M. Hall
------------------------------
(Signature)
Patrick M. Hall
Senior Vice President -
Controller
Principal Accounting Officer
-16-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000215718
<NAME> DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 52,177
<SECURITIES> 0
<RECEIVABLES> 20,755
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 72,932
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 365,095
<CURRENT-LIABILITIES> 2,618
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 340,052
<TOTAL-LIABILITY-AND-EQUITY> 365,095
<SALES> 32,288
<TOTAL-REVENUES> 32,701
<CGS> 0
<TOTAL-COSTS> 33,015
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (314)
<INCOME-TAX> 0
<INCOME-CONTINUING> (314)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (314)
<EPS-PRIMARY> (0.13)
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806572
<NAME> DYCO OIL AND GAS PROGRAM 1978-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 27,382
<SECURITIES> 0
<RECEIVABLES> 20,704
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 48,086
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 132,084
<CURRENT-LIABILITIES> 3,012
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 116,194
<TOTAL-LIABILITY-AND-EQUITY> 132,084
<SALES> 30,771
<TOTAL-REVENUES> 30,845
<CGS> 0
<TOTAL-COSTS> 26,044
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 4,801
<INCOME-TAX> 0
<INCOME-CONTINUING> 4,801
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,801
<EPS-PRIMARY> 3.00
<EPS-DILUTED> 0
</TABLE>
