FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
{X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1997
OR
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 0-10268
C&K 1981 FUND-A, LTD.
(Exact name of registrant as specified in its charter)
Texas 76-0307703
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7555 East Hampden Avenue, Suite 600
Denver, Colorado 80231
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 303-695-3600
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Name of Each Exchange
Title of Each Class Which Registered
None None
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.
X
Yes No
The C&K 1981 Fund-A, Ltd. is a Texas limited partnership.
<PAGE>
INDEX TO FORM 10-Q
C&K 1981 Fund-A, Ltd.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets
June 30, 1997 and December 31, 1996
Statements of Operations
Three months and six months ended June 30, 1997 and 1996
Statements of Changes in Partners' Capital (Deficit)
Six months ended June 30, 1997 and 1996
Statements of Cash Flows
Six months ended June 30, 1997 and 1996
Notes to the Financial Statements
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURE
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
<S> <C> <C>
Oil and gas properties and equipment,
at cost, using the full cost
method of accounting $21,894,867 $21,881,166
Less: Accumulated depreciation,
depletion and amortization (20,815,368) (20,632,021)
Total Assets $ 1,079,499 $ 1,249,145
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Accrued liabilities $ 6,188 $ 10,991
Current payable to General Partner 500,000 400,000
Long-term payable to General Partner 450,636 811,381
Total Liabilities 956,824 1,222,372
Partners' Capital (Deficit):
General Partner 181,336 211,117
Limited Partners (97,290) (229,536)
Combining adjustment 38,629 45,192
Total Partners' Capital (Deficit) 122,675 26,773
Total Liabilities and Partners'
Capital (Deficit) $ 1,079,499 $ 1,249,145
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Revenues:
Oil and gas sales $495,647 $445,968 $1,155,068 $834,435
Expenses:
Lease operating 114,876 111,871 226,363 151,286
Production tax 42,031 50,147 118,515 104,605
Marketing deductions 2,275 2,730 2,954 6,351
Depreciation, depletion
and amortization 78,676 87,932 183,347 120,860
General and administrative 65,213 65,963 130,425 128,125
Interest - affiliated 28,297 24,691 56,940 48,623
331,368 343,334 718,544 559,850
Net income $164,279 $102,634 $ 436,524 $274,585
Net income (loss) allocation:
General Partner $124,026 $ 94,624 $ 310,841 $200,084
Limited Partners 43,069 11,239 132,246 80,686
Combining adjustment (2,816) (3,229) (6,563) (6,185)
Net income $164,279 $102,634 $ 436,524 $274,585
Net income per limited
partnership unit
(3,302 outstanding) $ 13.04 $ 3.40 $ 40.05 $ 24.44
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
<TABLE>
<CAPTION>
Six months ended June 30, 1996
Combining
General Limited Adjustment
Partner Partners (Note 3) Total
<S> <C> <C> <C> <C>
Balance at
January 1, 1996 $ 184,921 $(453,932) $ 60,081 $(208,930)
Contributions 226,881 -- -- 226,881
Distributions (361,739) -- -- (361,739)
Net income (loss) 200,084 80,686 (6,185) 274,585
Balance at
June 30, 1996 $ 250,147 $(373,246) $ 53,896 $ (69,203)
Six months ended June 30, 1997
Combining
General Limited Adjustment
Partner Partners (Note 3) Total
Balance at
January 1, 1997 $ 211,117 $(229,536) $ 45,192 $ 26,773
Contributions 176,177 -- -- 176,177
Distributions (516,799) -- -- (516,799)
Net income (loss) 310,841 132,246 (6,563) 436,524
Balance at
June 30, 1997 $ 181,336 $ (97,290) $ 38,629 $ 122,675
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six months ended June 30,
1997 1996
<S> <C> <C>
Cash flows from operating activities:
Net income $ 436,524 $ 274,585
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation, depletion and amortization 183,347 120,860
Changes in operating assets and liabilities:
Decrease in accrued liabilities (4,803) (8,981)
(Decrease) increase in payable to
General Partner (260,745) 665,932
Net cash provided by operating activities 354,323 1,052,396
Cash flows from investing activities:
Additions to oil and gas
properties and equipment (13,701) (917,538)
Net cash used in investing activities (13,701) (917,538)
Cash flows from financing activities:
Distributions to General Partner (516,799) (361,739)
Contributions by General Partner 176,177 226,881
Net cash used in financing activities (340,622) (134,858)
Net increase (decrease) in cash -- --
Cash at beginning of period -- --
Cash at end of period $ -- $ --
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-A, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
The C&K 1981 Fund-A, Ltd. (the "Partnership"), a Texas Limited
Partnership, was organized on December 16, 1980 to acquire, explore,
develop and operate onshore oil and gas properties in the United States
and commenced operations on May 12, 1981. Total initial Limited Partner
contributions were $8,255,000, including $100,000 contributed by C&K
Petroleum, Inc. ("C&K"), the initial General Partner.
C&K, after several corporate reorganizations beginning in September
of 1984 and ending in December of 1991, was acquired by Ultramar Oil and
Gas Limited ("UOGL"), an indirect wholly-owned subsidiary of LASMO plc.
Effective November 18, 1992, UOGL was sold to Williams-Cody Limited
Liability Company ("WCLLC"), a Wyoming limited liability company owned by
Williams Gas Management Company ("WGMan") and Cody Resources, Inc.
On January 1, 1993, UOGL changed its name to Williams-Cody, Inc.
("Williams-Cody").
Effective May 1, 1993, Cody Company, a wholly owned subsidiary of The
Gates Corporation, purchased the units of WCLLC owned by WGMan. As a
result of this acquisition, the unit holders of WCLLC are Cody Company and
its wholly owned subsidiary, Cody Resources, Inc. Subsequently, effective
May 15, 1993, the name of Williams-Cody, Inc. was changed to CODY ENERGY,
INC. ("CODY"), and the name of Williams-Cody Limited Liability Company was
changed to Gates-Cody Energy Company ("GCEC"), a Limited Liability
Company. CODY was the surviving corporation and, pursuant to the
authority provided in the Partnership Agreement, managed and controlled
the Partnership's affairs and was responsible for the activities of the
Partnership.
On January 1, 1997, CODY created two new subsidiary companies to hold
its Texas assets. To the first company, CODY TEXAS, L.P., a Texas
limited partnership ("CODY TEXAS"), CODY transferred its interest in the
Partnership, with CODY TEXAS becoming the successor general partner of the
Partnership. The second company, Cody Oil and Gas, Inc., a wholly owned
subsidiary of CODY, serves as the general partner of CODY TEXAS.
Basis of Accounting
The accounts of the Partnership are maintained on the accrual basis
in accordance with accounting practices permitted for federal income tax
reporting purposes. In order to present the accompanying financial
statements on the basis of generally accepted accounting principles for
financial reporting purposes, adjustments have been made to account for
oil and gas properties under the full cost method of accounting.
Oil and Gas Properties
The Partnership uses the full cost method of accounting for oil and
gas properties in accordance with rules prescribed by the Securities and
Exchange Commission ("SEC"). Under this method, all costs incurred in
connection with the exploration for and development of oil and gas
reserves are capitalized. Such capitalized costs include lease
acquisition, geological and geophysical work, delay rentals, drilling,
completing and equipping oil and gas wells and other related costs,
together with costs applicable to CODY's technical personnel directly
engaged in evaluating and maintaining oil and gas prospects and drilling
oil and gas wells. Maintenance and repairs are charged against income
when incurred. Renewals and betterments which extend the useful life of
properties are capitalized.
The capitalized costs of all oil and gas properties are depleted on a
composite units-of-revenue method computed on a future gross revenue
basis. An additional depletion provision is made if the total capitalized
costs of oil and gas properties exceed the "capitalization ceiling", which
is calculated as the present value of future net revenues from estimated
production of the Partnership's proved oil and gas reserves as furnished
by independent petroleum engineers.
Future gross revenues have been estimated using rules prescribed by
the SEC. Under these rules, year-end prices are utilized in determining
future gross revenues.
New Accounting Standard
In March 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standard No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of" ("SFAS No. 121"), which requires impairment losses to be recorded on
long-lived assets used in operations when indications of impairment are
present. The Partnership adopted SFAS No. 121 during 1996, with no
impact on its financial statements.
Net Income (Loss) per Limited Partnership Unit
Net income (loss) per limited partnership unit is computed by
obtaining the Limited Partners' net income (loss) (see Statements of
Changes in Partners' Capital (Deficit)) and dividing by the total limited
partnership units outstanding.
Contributions and Distributions
Contributions by the General Partner, as presented in the Statements
of Changes in Partners' Capital (Deficit), represent amounts paid by the
General Partner for its allocated share of the Partnership's costs and
expenses. Distributions to the General Partner represent amounts
collected by the General Partner for its allocated share of the
Partnership's revenues.
Payable to the General Partner
The Partnership's payable to the General Partner is the Limited
Partners' obligation for their share of costs, arising from Partnership
operations, which are funded entirely by the General Partner. The current
portion of the liability is the amount estimated to be collectible from
the Limited Partners' net operating revenues over the current operating
cycle (one year).
Revenue Recognition
The Partnership recognizes oil and gas revenues for only its ownership
percentage of total production under the entitlement method. Purchase,
sale and transportation of natural gas and crude oil are recognized upon
completion of the sale and when transported volumes are delivered.
Concentration of Credit Risk
Financial instruments which subject the Partnership to concentrations
of credit risk consist principally of trade receivables. The
Partnership's policy is to evaluate, prior to entering agreements, each
purchaser's financial condition. The Partnership sells to purchasers
with different geographic and economic characteristics.
Use of Estimates
The preparation of the Partnership's financial statements in
conformity with generally accepted accounting principles necessarily
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 balance sheet dates and the reported
amounts of revenues and expenses during the reporting periods. Actual
results could differ from those estimates.
Reclassification
Certain amounts from prior years have been reclassified to be
consistent with the financial statement presentation for 1997. Such
reclassifications had no effect on net income.
NOTE 2 - GAS CONTRACT
Since June 1, 1993, Williams Gas Marketing has purchased all of the
Partnership's natural gas production under an agreement that calls for
market responsive prices which are tied to a published index. The
Partnership remains responsible for all costs related to production,
gathering, processing or severance of the gas prior to Delivery Point.
These costs have been recorded as marketing deductions in the financial
statements.
NOTE 3 - ALLOCATION OF PARTNERSHIP REVENUES, COSTS AND EXPENSES
The Partnership Agreement provides that revenues, costs and expenses
shall be allocated to the partners as follows:
Limited General
Partners Partner
REVENUES,
Sale of Production . . . . . . . . . . . . . . . . . . . 50% 50%
Sale of Equipment . . . . . . . . . . . . . . . . . . . . 50 50
Interest Income . . . . . . . . . . . . . . . . . . . . . 99 1
COSTS AND EXPENSES
Organization and Offering Expenses Other
than Sales Commissions . . . . . . . . . . . . . . . . . 0 100
Leasehold Acquisition Costs . . . . . . . . . . . . . . . 0 100
Subsequent Leasehold Acquisition Costs . . . . . . . . . 50 50
Intangible Drilling Costs . . . . . . . . . . . . . . . . 99 1
Tangible Drilling and Completion Costs Relating to
Commercially Productive Wells . . . . . . . . . . . . . 0 100
Post-Completion Costs . . . . . . . . . . . . . . . . . . 50 50
Operating Costs . . . . . . . . . . . . . . . . . . . . . 50 50
Special Costs . . . . . . . . . . . . . . . . . . . . . . 99 1
General and Administrative Expenses . . . . . . . . . . . 50 50
The depreciation, depletion and amortization provision is calculated
based on discrete calculations utilizing the Partnership's and the
partners' share of the related capital costs and estimated future net
revenues. For financial statement purposes, each partner's depreciation,
depletion and amortization provision has been increased by the amount that
his share of unamortized costs exceeded the capitalization ceiling.
During 1997 and 1996, the net capitalized costs of the Partnership's oil
and gas properties did not exceed the capitalization ceiling.
The combining adjustment included in partners' capital of $38,629 and
$53,896 at June 30, 1997 and 1996, respectively, represents the difference
resulting from computing the full cost ceiling test in prior years on the
total partnership basis, which is used for financial reporting purposes,
and the limited partners and general partner basis. The adjustment is an
allocation of partners' capital and does not affect net income.
NOTE 4 - PURCHASE OF LIMITED PARTNERS' INTERESTS
The Limited Partners may require the General Partner to purchase up to
ten percent of their interests annually. The purchase price is based on
the Limited Partners' proportionate share of the sum of (i) two-thirds of
the present worth of estimated future net revenues discounted at the prime
rate in effect on the applicable valuation date plus one percent, (ii) the
present value of the estimated salvage value of all production facilities
and tangible assets, and (iii) the net book value of all other assets and
liabilities.
In addition to the 40 units purchased by the General Partner for its
initial capital contribution, a total of 1,485.75 units have been
purchased from Limited Partners as of December 31, 1996. At January 1,
1997, the General Partner calculated a purchase price of $61.63 per
limited partner unit. Within the prescribed tender period, which ended
June 30, 1997, 76 Limited Partners tendered 229 units for a total
repurchase amount of $14,113.27. Effective with these repurchases, the
General Partner will own 1754.75 units.
NOTE 5 - SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
The General Partner is reimbursed for administrative and overhead
costs incurred in conducting the business of the Partnership. Such
reimbursements ($61,912.50 per quarter) have been the maximum allowed
under the terms of the Partnership Agreement.
During the first half of 1997 and 1996, the Partnership distributed
$516,799 and $361,739, respectively, to the General Partner for its
allocated share of net revenues, and the General Partner contributed
$176,177 and $226,881, respectively, for its allocated share of costs
and expenses.
After such time as total contributions from the Limited Partners have
been expended, the General Partner may advance funds to the Limited
Partners for their share of costs and expenses for continuing operations.
Interest was charged to the Limited Partners on such advances at a rate
which approximated 9.4% during both six month periods ended June 30,
1997 and 1996. The General Partner is reimbursed for funds advanced to
the Limited Partners from revenues otherwise allocable to the Limited
Partners.
NOTE 6 - INCOME TAXES
Income taxes are not levied at the Partnership level, but rather on
the individual partners; therefore, no provision for liability for
federal and state income taxes has been reflected in the accompanying
financial statements. The tax returns, the qualification of the
Partnership as a partnership for tax purposes, and the amount of the
Partnership's income or loss is subject to examination by federal and
state tax authorities. If such examinations result in changes with
respect to the Partnership's qualifications or in changes in the
Partnership's income or loss, the tax liability of the partners could be
changed accordingly.
NOTE 7 - CONTINGENCY
The Partnership has a working capital deficiency and a net capital
deficiency. As a result of the deficit capital position of the Limited
Partners' interests, all net cash flows attributable to the Limited
Partners' share of the Partnership's operations are presently applied
entirely against its indebtedness for past funds advanced by the General
Partner and are not available to fund Partnership needs. Funds required
by the Partnership in excess of those generated by operations will be
advanced by the General Partner.
The General Partner is currently considering either transferring its
limited partner and general partner interests in the Partnership,
withdrawing as general partner of the Partnership, or taking other actions
to reduce its responsibilities in the Partnership, which could lead to the
ultimate dissolution of the Partnership. These conditions raise
substantial doubt about the Partnership's ability to continue as a going
concern. As long as CODY TEXAS remains the General Partner of the
Partnership, GCEC intends to continue advancing funds required by the
Partnership in excess of those generated by operations, through CODY
TEXAS. The accompanying financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
<PAGE>
C&K 1981 FUND-A, LTD.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Net cash flow for the six months ended June 30, 1997 was applied to
the Limited Partners' debt to the General Partner, which was reduced by
$260,745 during this period. Consequently, the Partnership has no cash
on hand at June 30, 1997.
The Partnership's financing requirements for operating expenses and
capital expenditures are currently provided by revenues from its
producing operations. Any funds required by the Partnership in excess
of those generated by operating proceeds will continue to be advanced by
the General Partner.
Capital expenditures during the first six months of 1997 were $13,701,
primarily attributable to work performed on the McIlhenny #2 EA well in
an effort to increase the production and reserves for that well. The
Partnership has no plans for additional exploratory or developmental
capital programs, except those necessary to maintain well productivity
for 1997.
The Partnership cannot predict with any degree of certainty the prices
it will receive in the remainder of 1997 or in future years for its crude
oil and natural gas. The Partnership's financial condition, operating
results and liquidity will be materially affected by any significant
fluctuations in sales prices. The Limited Partners' ability to reimburse
funds advanced by the General Partner will be similarly affected.
RESULTS OF OPERATIONS
Three Months Ended June 30, 1997 vs. Three Months Ended June 30, 1996
Net income for the three months ended June 30, 1997 was $164,279, an
increase of $61,645, or 60%, from net income of $102,634 reported for the
same period in 1996. This increase resulted primarily from an increase
in net oil and gas revenues and a decrease in depreciation, depletion
and amortization expenses.
Crude oil and natural gas sales of $495,647 for the three months ended
June 30, 1997 increased $49,679, or 11%, compared to the same period in
1996. Crude oil production increased to 274 barrels per day, and natural
gas production and plant products decreased to 135 mcf and 37 equivalent
mcf per day, respectively, during the second quarter of 1997, compared to
the second quarter 1996 volumes of 205 barrels, 221 mcf, and 50
equivalent mcf, respectively, per day. Production enhancements on the
McIlhenny #2 EA well during the first quarter of 1997, offset by the
temporary abandonment of the McIlhenny #1-D well in 1996 added net crude
oil production of approximately 80 barrels per day for the second quarter
of 1997. Average sales prices were $18.68 per barrel for crude oil,
$2.07 per mcf for natural gas, and $1.04 per equivalent mcf for plant
products during the second quarter of 1997 compared to $20.66, $2.52 and
$2.09, respectively, for the same period in 1996. Non-recurring price
adjustments to prior period plant products accruals in 1997 caused this
price decrease for the second quarter.
Lease operating expense for the three months ended June 30, 1997
increased $3,005, or 3%, compared to the corresponding period in 1996.
Production tax expense for the second quarter of 1997 decreased $8,116,
or 16%, compared to the same period in 1996. The state of Louisiana
recently granted exempt status to the McIlhenny #1-Sidetrack #3 well, and
a refund of prior period severance taxes for that well was recorded
during this quarter, which offset the increase applicable to the increase
in sales. Marketing deductions were $2,275 for the three months ended
June 30, 1997, compared to $2,730 for the corresponding period in 1996, a
decrease of $455. The decline in gas production and plant products was
mainly responsible for this decrease.
Depreciation, depletion and amortization expense decreased by $9,256,
or 11%, in 1997 compared to the same period in 1996. This decrease is
the result of a natural decline in the depletion base of the properties,
offset slightly by the additional oil and gas revenues. General and
administrative expenses for the second quarter of 1997 decreased by $750,
or 1%, compared to the same period in 1996. Interest expense increased
by $3,606, or 15%, in the second quarter of 1997 compared to 1996,
primarily attributable to an increase in the prime interest rate in 1997.
Six Months Ended June 30, 1997 vs. Six Months Ended June 30, 1996
Net income for the six months ended June 30, 1997 was $436,524, an
increase of $161,939, or 59%, from net income of $274,585 reported for
the same period in 1996. This increase resulted primarily from an
increase in net oil and gas revenues offset by increases in lease
operating and depreciation, depletion and amortization expenses.
Crude oil and natural gas sales of $1,155,068 for the six months ended
June 30, 1997 was an increase of $320,633, or 38%, compared to the same
period in 1996. Crude oil production increased to 281 barrels per day,
natural gas production and plant products decreased to 168 mcf and 34
equivalent mcf per day, respectively, during the first half of 1997,
compared to the first half of 1996 volumes of 203 barrels, 211 mcf, and
44 equivalent mcf, respectively, per day. The completion of the
McIlhenny #1-Sidetrack #3 well in April, 1996 and production enhancements
on the McIlhenny #2 EA well during the first quarter of 1997 added crude
oil production of approximately 79 barrels per day for the first half of
1997. Average sales prices were $20.85 per barrel for crude oil, $2.68
per mcf for natural gas, and $1.98 per equivalent mcf for plant products
during the first half of 1997 compared to $19.60, $2.50 and $1.89,
respectively, for the same period in 1996.
Lease operating expense for the six months ended June 30, 1997
increased by $75,077, or 50%, compared to the corresponding period in
1996. The increase in lease operating expenses is due primarily to the
addition of normal operations for the McIlhenny #1-Sidetrack #3 well,
commencing with the second quarter of 1996 and includes approximately
$17,000 expended in 1997 for a workover to enhance production on this
well. Production tax expense for the first half of 1997 increased
$13,910, or 13%, compared to the same period in 1996, which relates to
the increase in crude oil production in 1997 offset by the decline in
natural gas production and plant products from the Texas wells.
Marketing deductions were $2,954 for the six months ended June 30, 1997
compared to $6,351 for the corresponding period in 1996, a decrease of
$3,397, or 53%. This decrease is a result of lower gathering and
transportation rates provided by a new transporter effective February 1,
1996, and the decline of available gas volumes to transport.
Depreciation, depletion and amortization expense increased by $62,487,
or 52%, for the first half of 1997 compared to the same period in 1996.
This increase is primarily the result of the increase in oil and gas
revenues. General and administrative expenses for the first six months
of 1997 were $130,425 compared to $128,125 for the corresponding period
in 1996, an increase of $2,300. Interest expense increased by $8,317, or
17%, in 1997, attributable to the additional funds advanced by the
General Partner for capital expenditures incurred in the completion of
the McIlhenny #1-Sidetrack #3 well.
<PAGE>
PART II - OTHER INFORMATION
C&K 1981 FUND-A, LTD.
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
<PAGE>
SIGNATURE
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.
C&K 1981 Fund-A, LTD.
(Registrant)
By: /s/ Dan R. Taylor
Dan R. Taylor
Vice President, Finance & Accounting
CODY TEXAS, L.P.
Successor General Partner
DATE: August 12, 1997
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997
<PERIOD-START> APR-01-1997 JAN-01-1997
<PERIOD-END> JUN-30-1997 JUN-30-1997
<CASH> 0 0
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 21,894,867 21,894,867
<DEPRECIATION> 20,815,368 20,815,368
<TOTAL-ASSETS> 1,079,499 1,079,499
<CURRENT-LIABILITIES> 506,188 506,188
<BONDS> 0 0
0 0
0 0
<COMMON> 0 0
<OTHER-SE> 122,675 122,675
<TOTAL-LIABILITY-AND-EQUITY> 1,079,499 1,079,499
<SALES> 495,647 1,155,068
<TOTAL-REVENUES> 495,647 1,155,068
<CGS> 0 0
<TOTAL-COSTS> 331,368 718,544
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 28,297 56,940
<INCOME-PRETAX> 164,279 436,524
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 164,279 436,524
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 164,279 436,524
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
