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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported): January 24, 1997
DYCO OIL AND GAS PROGRAM 1978-1
(A Limited Partnership)
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(Exact name of Registrant as specified in its Articles)
Minnesota 2-5976903 41-1343930
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(State or other (Commission (I.R.S. Employer
jurisdiction of File No.) Identification)
incorporation or
organization)
Two West Second Street, Tulsa, Oklahoma 74103
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (918) 583-1791
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ITEM 5: OTHER EVENTS
The General Partner and its affiliates are currently in the
process of evaluating certain oil and gas properties owned and/or
operated by the General Partner and the Dyco Oil and Gas Program 1978-
1 Limited Partnership (the "Partnership"). As a result of such
evaluation, it is expected that certain of these properties will be
placed in bid packages and offered for sale during the first half of
1997. It is likely that the Partnership will have an interest in some
of the properties being sold. It is currently estimated that the
value of such sales, as a percentage of total proved reserves of the
Partnership, will range from 1% to 10%.
The decision to accept any offer for the purchase of such
properties will be made by the General Partner after giving due
consideration to the offer price and the General Partner's estimate of
both the properties' remaining proved reserves and future operating
costs. Net proceeds from the sale of any such Partnership properties
will be distributed to the Partnership and will be included in the
calculation of the Partnership's cash distributions for the quarter
immediately following receipt by the Partnership of the proceeds.
Following completion of any sales the Partnership's quantity of
proved reserves will be reduced. It is also possible that the
Partnership's repurchase value and future cash distributions could
decline as a result of any reduced reserve base. On the other hand,
the General Partner believes that there will be beneficial operating
efficiencies related to the Partnership's remaining properties. This
is primarily due to the fact that the properties to be sold are more
likely to bear a higher ratio of operating expenses as compared to
reserves than the properties remaining in the Partnership. The net
effect of such property sales is difficult to predict as of the date
of this Current Report on Form 8-K.
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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 hereunto duly authorized.
DYCO OIL AND GAS PROGRAM 1978-1
LIMITED PARTNERSHIP
By: DYCO PETROLEUM CORPORATION
General Partner
DATE: January 24, 1997 //s// Dennis R. Neill
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Dennis R. Neill
President
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