<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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
September 30, 1996 0-8881
DYCO OIL AND GAS PROGRAM 1978-1
(A LIMITED PARTNERSHIP)
(Exact Name of Registrant as specified in its charter)
Minnesota 41-1343930
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
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
----- -----
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<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 90,795 $ 29,217
Accrued oil and gas sales, including
$22,308 due from related parties
in 1995 (Note 2) 31,256 30,588
-------- --------
Total current assets $122,051 $ 59,805
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 169,591 220,435
DEFERRED CHARGE 43,371 43,371
-------- --------
$335,013 $323,611
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 2,979 $ 3,811
Gas imbalance payable 4,762 4,762
-------- --------
Total current liabilities $ 7,741 $ 8,573
ACCRUED LIABILITY 23,848 23,848
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 24 units 3,034 2,912
Limited Partners, issued and
outstanding, 2,400 units 300,390 288,278
-------- --------
Total Partners' capital $303,424 $291,190
-------- --------
$335,013 $323,611
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
------- --------
REVENUES:
Oil and gas sales, including
$73,913 of sales to related
parties in 1995 (Note 2) $61,485 $77,571
Interest 369 499
------- -------
$61,854 $78,070
COST AND EXPENSES:
Oil and gas production $23,989 $18,141
Depreciation, depletion, and
amortization of oil and gas
properties 7,623 27,104
Impairment provision (Note 1) - 13,949
General and administrative (Note 2) 7,171 7,011
------- -------
$38,783 $66,205
------- -------
NET INCOME $23,071 $11,865
======= =======
GENERAL PARTNER (1%) - net income $ 231 $ 119
======= =======
LIMITED PARTNERS (99%) - net income $22,840 $11,746
======= =======
NET INCOME PER UNIT $ 9.52 $ 4.89
======= =======
UNITS OUTSTANDING 2,424 2,424
======= =======
The accompanying condensed notes are an
integral part of these financial statements.
-3-
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<PAGE>
DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
REVENUES:
Oil and gas sales, including
$126,176 of sales to related
parties in 1995 (Note 2) $158,966 $143,435
Interest 1,160 1,432
-------- --------
$160,126 $144,867
COST AND EXPENSES:
Oil and gas production $ 48,825 $ 43,509
Depreciation, depletion, and
amortization of oil and gas
properties 24,920 50,394
Impairment provision (Note 1) - 13,949
General and administrative (Note 2) 25,667 25,717
-------- --------
$ 99,412 $133,569
-------- --------
NET INCOME $ 60,714 $ 11,298
======== ========
GENERAL PARTNER (1%) - net income $ 607 $ 113
======== ========
LIMITED PARTNERS (99%) - net income $ 60,107 $ 11,185
======== ========
NET INCOME PER UNIT $ 25.05 $ 4.66
======== ========
UNITS OUTSTANDING 2,424 2,424
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-4-
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<PAGE>
DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $60,714 $ 11,298
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 24,920 50,394
Impairment provision - 13,949
(Increase) decrease in accrued oil
and gas sales ( 668) 840
Decrease in accounts payable ( 832) ( 758)
------- --------
Net cash provided by operating
activities $84,134 $ 75,723
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties ($ 215) ($ 8,386)
Retirements of oil and gas
properties 26,139 546
------- --------
Net cash provided (used) by
investing activities $25,924 ($ 7,840)
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($48,480) $ -
------- --------
Net cash used by financing
activities ($48,480) $ -
------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $61,578 $ 67,833
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 29,217 35,769
------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $90,795 $103,652
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
-5-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheet as of September 30, 1996, statements of
operations for the three and nine months ended September 30, 1996
and 1995, and statements of cash flows for the nine months ended
September 30, 1996 and 1995 have been prepared by Dyco Petroleum
Corporation ("Dyco"), the General Partner of the Dyco Oil and Gas
Program 1978-1 Limited Partnership (the "Program"), without
audit. In the opinion of management all adjustments (which
include only normal recurring adjustments) necessary to present
fairly the financial position at September 30, 1996, results of
operations for the three and nine months ended September 30, 1996
and 1995, and changes in cash flows for the nine months ended
September 30, 1996 and 1995 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 Program's Annual Report on Form 10-K for the year
ended December 31, 1995. The results of operations for the
period ended September 30, 1996 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. In the event the
unamortized cost of oil and gas properties being amortized
exceeds the full cost ceiling (as defined by the Securities and
Exchange Commission), the excess is charged to expense in the
period during which such excess occurs. At September 30, 1995
the unamortized cost of oil and gas properties exceeded the full
cost pool by $13,949. This excess was charged to expense during
the three and nine months ended September 30, 1995. No such
provision was necessary for the three and nine months ended
September 30, 1996. 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
income from the oil and gas properties and applying the resulting
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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 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 September 30, 1996 and 1995 the Program incurred such
expenses totaling $7,171 and $7,011, respectively, of which
$6,219 and $6,219 were paid to Dyco. During the nine months
ended September 30, 1996 and 1995 the Program incurred such
expenses totaling $25,667 and $25,717, respectively, of which
$18,657 and $18,657 were paid to Dyco.
Affiliates of the Program are the operators of certain of the
Program's properties and their policy is to bill the Program for
all customary charges and cost reimbursements associated with
their activities, together with any compressor rentals,
consulting, or other services provided.
The Program sold gas at market prices to Premier Gas Company
("Premier") and Premier then resold such gas to third parties at
market prices. Premier was an affiliate of the Program until
December 6, 1995. During the three months ended September 30,
1995 these sales for the Program totaled $73,913. During the
nine months ended September 30, 1995 these sales for the Program
totaled $126,176. At December 31, 1995, accrued gas sales
included $22,308 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 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. Dyco has denied all of the plaintiffs'
allegations and limited discovery is proceeding in the matter.
Dyco intends to vigorously defend the lawsuit. On September 10,
1996 the Oklahoma Supreme Court ruled in a separate lawsuit that
owners of royalty interests in Oklahoma oil and gas properties do
not have the right to share in the proceeds of take-or-pay
settlements. Such ruling is not yet final. As of the date of
these financial statements, management cannot determine the
amount of any alleged damages which would be allocable to the
Program; however, it is possible that events could change in the
future resulting in a material liability to the Program.
-7-
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<PAGE>
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, 1993, Dyco's
motion to dismiss plaintiffs' claim for tortious breach of
contract was granted, thereby eliminating any punitive damages
claims. On September 10, 1996 the Oklahoma Supreme Court ruled
in a separate lawsuit that owners of royalty interests in
Oklahoma oil and gas properties do not have the right to share in
the proceeds of take-or-pay settlements. Such ruling is not yet
final. As of the date of these financial statements, management
cannot determine the amount of alleged damages which would be
allocable to the Program; however, it is possible that events
could change in the future resulting in a material liability to
the Program.
-8-
<PAGE>
<PAGE>
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Net proceeds from the Program's 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 Program's reserves which would result in a
positive economic impact. Over the last several years, the
domestic energy industry and the Program has contended with
volatile, but generally low, oil and gas prices. Over the past
few years, the oil and gas market appears to have moved from
periods of relative stability in supply and demand to excess
supply and weakened demand. These trends have led to the
volatility in pricing and demand noted over the past years.
The Program's 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
Program has no bank debt commitments. Cash for operational
purposes will be provided by current oil and gas production.
RESULTS OF OPERATIONS
- ---------------------
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
------- -------
Oil and gas sales $61,485 $77,571
Oil and gas production expenses $23,989 $18,141
Barrels produced 730 264
Mcf produced 25,691 47,685
Average price/Bbl $ 17.58 $ 13.86
Average price/Mcf $ 1.89 $ 1.55
As shown in the table above, oil and natural gas sales decreased
$16,086 (20.7%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
decrease, $41,569 was related to the decrease in the volumes of
natural gas sold, partially offset by an increase of $16,213
related to the increase in the average price of natural gas sold
and an increase of $8,192 related to the increase in the volumes
of oil sold. Volumes of natural gas sold decreased by 21,994 Mcf
for the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995, while volumes of oil sold
increased by 466 barrels for the three months ended September 30,
1996 as compared to the three months ended September 30, 1995.
The decrease in the volumes of natural gas sold resulted
primarily from a positive prior period volume adjustment made by
the purchaser on one well during the three months ended September
30, 1995 due to the well reaching payout status in December of
1993. The increase in the volumes of oil sold resulted primarily
from the release of previously withheld revenues by the operator
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<PAGE>
of one well due to a production tax adjustment settlement during
the three months ended September 30, 1996. Average oil and
natural gas prices increased to $17.58 per barrel and $1.89 per
Mcf, respectively, for the three months ended September 30, 1996
from $13.86 per barrel and $1.55 per Mcf, respectively, for the
three months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $5,848 for the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. This increase resulted primarily from
abandonment expenses incurred on one well during the three months
ended September 30, 1996. As a percentage of oil and gas sales,
these expenses increased to 39.0% for the three months ended
September 30, 1996 from 23.4% for the three months ended
September 30, 1995. This percentage increase resulted primarily
from the increase in abandonment expenses incurred during the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $19,481 for the three months ended September
30, 1996 as compared to the three months ended September 30,
1995. This decrease resulted primarily from a significant upward
revision in the estimate of the Program's remaining natural gas
reserves. As a percentage of oil and gas sales, this expense
decreased to 12.4% for the three months ended September 30, 1996
from 34.9% for the three months ended September 30, 1995. This
decrease was primarily a result of the increases in the average
prices of oil and natural gas sold during the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995.
As a result of declines in natural gas prices during the three
months ended September 30, 1995, the Program recognized a non-
cash charge against earnings of $13,949 during the three months
ended September 30, 1995. This impairment provision for oil and
gas properties during the three months ended September 30, 1995
was necessary due to the unamortized costs of oil and gas
properties exceeding the present value of the estimated future
net revenues from oil and gas properties. No similar charge was
necessary for the three months ended September 30, 1996.
General and administrative expenses increased by $160 for the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995. This increase resulted
primarily from an increase in printing and postage expenses
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995. As a percentage of
oil and gas sales, these expenses increased to 11.7% for the
three months ended September 30, 1996 from 9.0% for the three
months ended September 30, 1995. This percentage increase was
primarily due to the decrease in the volumes of natural gas sold
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995.
-10-
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<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
--------------------------------
1996 1995
-------- --------
Oil and gas sales $158,966 $143,435
Oil and gas production expenses $ 48,825 $ 43,509
Barrels produced 1,232 686
Mcf produced 72,374 93,334
Average price/Bbl $ 17.31 $ 14.77
Average price/Mcf $ 1.90 $ 1.43
As shown in the table above, oil and natural gas sales increased
$15,531 (10.8%) for the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995. Of this
increase, $45,609 was related to the increases in the average
prices of oil and natural gas sold and $9,451 was related to the
increase in the volumes of oil sold, partially offset by a
decrease of $39,824 related to the decrease in the volumes of
natural gas sold. Volumes of oil sold increased by 546 barrels,
while the volumes of natural gas sold decreased by 20,960 Mcf for
the nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. The decrease in the volumes of
natural gas sold resulted primarily from a positive prior period
volume adjustment made by the purchaser on one well during the
nine months ended September 30, 1995 due to the well reaching
payout status in December of 1993. The increase in the volumes
of oil sold resulted primarily from the release of previously
withheld revenues by the operator of one well due to a production
tax adjustment settlement during the nine months ended September
30, 1996. Average oil and natural gas prices increased to $17.31
per barrel and $1.90 per Mcf, respectively, for the nine months
ended September 30, 1996 from $14.77 per barrel and $1.43 per
Mcf, respectively, for the nine months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased by $5,316 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This increase resulted primarily from
(i) abandonment expenses incurred on one well during the nine
months ended September 30, 1996 and (ii) workover expenses
incurred on another well in order to improve the recovery of
reserves during the nine months ended September 30, 1996. As a
percentage of oil and gas sales, these expenses remained
relatively constant at 30.7% for the nine months ended September
30, 1996 as compared to 30.3% for the nine months ended September
30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $25,474 for the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
This decrease resulted primarily from a significant upward
revision in the estimate of the Program's remaining natural gas
reserves. As a percentage of oil and gas sales, this expense
decreased to 15.7% for the nine months ended September 30, 1996
from 35.1% for the nine months ended September 30, 1995. This
percentage decrease was primarily a result of the increases in
the average prices of oil and natural gas sold during the nine
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<PAGE>
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995.
As a result of declines in natural gas prices during the nine
months ended September 30, 1995, the Program recognized a non-
cash charge against earnings of $13,949 during the nine months
ended September 30, 1995. This impairment provision for oil and
gas properties during the nine months ended September 30, 1995
was necessary due to the unamortized costs of oil and gas
properties exceeding the present value of the estimated future
net revenues from oil and gas properties. No similar charge was
necessary for the nine months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1996 as compared to the
nine months ended September 30, 1995. As a percentage of oil and
gas sales, these expenses decreased to 16.1% for the nine months
ended September 30, 1996 from 17.9% for the nine months ended
September 30, 1995. This percentage decrease was primarily due
to the increases in the average prices of oil and natural gas
sold during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995.
-12-
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<PAGE>
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On November 12, 1993, two royalty owners filed a class action
lawsuit against Dyco Petroleum Corporation ("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 the
Spurlin Unit #1-23 well (Chandler, et al. v. Dyco, C-93-67,
District Court of Dewey County, Oklahoma). 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 (Chandler v. Dyco, C-91-55, District Court of Roger Mills
County, Oklahoma). The 1978-1 Program (the "Program") has an
approximate 8.7% working interest in the Spurlin Unit #1-23 well.
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 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. Dyco
has denied all of the plaintiffs' allegations and limited
discovery is proceeding in the matter. Dyco intends to
vigorously defend the lawsuit. On September 10, 1996 the
Oklahoma Supreme Court ruled in a separate lawsuit that owners of
royalty interests in Oklahoma oil and gas properties do not have
the right to share in the proceeds of take-or-pay settlements.
Such ruling is not yet final. 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 the Spurlin Unit #1-23 well, failed to respond to
their request for an accounting of production. (Spurlin, et al.
v. Dyco, et al., C-92-014, District Court of Rogers Mills County,
Oklahoma). The Program has an approximate 8.7% working interest
in the Spurlin Unit #1-23 well. 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 plaintiffs' claim for tortious breach of
contract was granted, thereby eliminating any punitive damages
claims. On September 10, 1996 the Oklahoma Supreme Court ruled
in a separate lawsuit that owners of royalty interests in
Oklahoma oil and gas properties do not have the right to share in
the proceeds of take-or-pay settlements. Such ruling is not yet
final. As of the date of these financial statements, management
cannot determine the amount of alleged damages which would be
allocable to the Program.
ITEM 5. OTHER INFORMATION
On October 1, 1996, Drew Phillips resigned as Chief Financial
Officer of Dyco. Mr. Phillips continues to serve as an
accounting officer of affiliates of Dyco.
-13-
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<PAGE>
On October 1, 1996, Patrick M. Hall was elected Chief Financial
Officer of Dyco. Mr. Hall joined affiliates of Dyco
(collectively, the "Samson Companies") in 1983. Prior to joining
the Samson Companies he was a senior accountant with Peat Marwick
Main & Co. in Tulsa. He holds a Bachelor of Science degree in
accounting from Oklahoma State University and is a Certified
Public Accountant. Mr. Hall is also Senior Vice President -
Controller of Samson Investment Company.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary
financial information extracted from the Dyco Oil
and Gas Program 1978-1 Limited Partnership's
financial statements as of September 30, 1996 and
for the nine months ended September 30, 1996,
filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K
Current Report on Form 8-K filed during third quarter of
1996:
Date of event: July 1, 1996
Date filed with SEC: July 8, 1996
Item Included:
Item 5 - Other Events
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<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
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: October 29, 1996 By: /s/Dennis R. Neill
---------------------------------
(Signature)
Dennis R. Neill
President
Date: October 29, 1996 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
-15-
<PAGE>
<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1978-1 Limited Partnership's financial statements as of
September 30, 1996 and for the nine months ended September
30, 1996, filed herewith.
All other exhibits are omitted as inapplicable.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000215718
<NAME> DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 90,795
<SECURITIES> 0
<RECEIVABLES> 31,256
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 122,051
<PP&E> 14,940,232
<DEPRECIATION> 14,770,641
<TOTAL-ASSETS> 335,013
<CURRENT-LIABILITIES> 7,741
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 303,424
<TOTAL-LIABILITY-AND-EQUITY> 335,013
<SALES> 158,966
<TOTAL-REVENUES> 160,126
<CGS> 0
<TOTAL-COSTS> 99,412
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 60,714
<INCOME-TAX> 0
<INCOME-CONTINUING> 60,714
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 60,714
<EPS-PRIMARY> 25.05
<EPS-DILUTED> 0
</TABLE>
