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 March 31, 1997
OR
{ } TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 0-10269
C&K 1981 FUND-B, LTD.
(Exact name of registrant as specified in its charter)
Texas 76-0307699
(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)
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:
Name of Each Exchange
Tile of Each Class Which Registered
None None
Registrant's telephone number, including area code: 303-695-3600
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-B, Ltd. is a Texas limited partnership.
<PAGE>
INDEX TO FORM 10-Q
C&K 1981 Fund-B, Ltd.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets
March 31, 1997 and December 31, 1996
Statements of Operations
Three months ended March 31, 1997 and 1996
Statements of Changes in Partners' Capital (Deficit)
Three months ended March 31, 1997 and 1996
Statements of Cash Flows
Three months ended March 31, 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-B, LTD.
(A Texas Limited Partnership)
BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
<S> <C> <C>
Current Assets:
Cash $ 72,227 $ 71,783
Total Current Assets 72,227 71,783
Oil and gas properties and equipment,
at cost, using the full cost
method of accounting 22,973,603 22,969,498
Less: Accumulated depreciation,
depletion and amortization (22,452,090) (22,415,798)
521,513 553,700
Total Assets $ 593,740 $ 625,483
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Accrued liabilities $ 11,896 $ 14,833
Long-term payable to General Partner 2,454,785 2,435,366
Total Liabilities 2,466,681 2,450,199
Partners' Capital (Deficit):
General Partner 152,002 160,388
Consenting Limited Partners 222,469 210,434
Nonconsenting Limited Partners (2,247,314) (2,195,062)
Combining adjustment (98) (476)
Total Partners' Capital (Deficit) (1,872,941) (1,824,716)
Total Liabilities and
Partners' Capital (Deficit) $ 593,740 $ 625,483
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
1997 1996
<S> <C> <C>
Revenues:
Oil and gas sales $219,212 $135,600
Interest income 444 572
219,656 136,172
Expenses:
Lease operating 36,920 15,902
Production tax 24,405 17,445
Marketing deductions 679 3,621
Depreciation, depletion and
amortization 36,292 18,444
General and administrative 74,063 70,252
Interest - Affiliated 52,251 48,330
224,610 173,994
Net loss $ (4,954) $(37,822)
Net income (loss) allocation:
General Partner $ 34,885 $ 6,519
Consenting Limited Partners 12,035 3,132
Nonconsenting Limited Partners (52,252) (47,365)
Combining adjustment 378 (108)
Net loss $ (4,954) $(37,822)
Net income per consenting limited
partnership unit (2,751 outstanding) $ 4.37 $ 1.14
Net loss per nonconsenting limited
partnership unit (982 outstanding) $ (53.21) $ (48.23)
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31, 1996
Non-
Consenting Consenting Combining
General Limited Limited Adjustment
Partner Partners Partners (Note 3) Total
<S> <C> <C> <C> <C> <C>
Balance at
January 1, 1996 $178,807 $206,681 $(1,992,702) $1,130 $(1,606,084)
Contributions 42,349 -- -- -- 42,349
Distributions (57,272) -- -- -- (57,272)
Net income (loss) 6,519 3,132 (47,365) (108) (37,822)
Balance at
March 31, 1996 $170,403 $209,813 $(2,040,067) $1,022 $(1,658,829)
Three months ended March 31, 1997
Non-
Consenting Consenting Combining
General Limited Limited Adjustment
Partner Partners Partners (Note 3) Total
<S> <C> <C> <C> <C> <C>
Balance at
January 1, 1997 $160,388 $210,434 $(2,195,062) $ (476) $(1,824,716)
Contributions 53,798 -- -- -- 53,798
Distributions (97,069) -- -- -- (97,069)
Net income (loss) 34,885 12,035 (52,252) 378 (4,954)
Balance at
March 31, 1997 $152,002 $222,469 $(2,247,314) $ (98) $(1,872,941)
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-B, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended March 31,
1997 1996
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (4,954) $(37,822)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation, depletion
and amortization 36,292 18,444
Changes in operating assets
and liabilities:
Increase in payable to General Partner 19,419 42,578
Decrease in accrued liabilities (2,937) (9,301)
Net cash provided by operating activities 47,820 13,899
Cash flows from investing activities:
Retirements of (additions to) oil and gas
properties and equipment (4,105) 1,596
Net cash provided by (used in)
investing activities (4,105) 1,596
Cash flows from financing activities:
Distributions to General Partner (97,069) (57,272)
Contributions by General Partner 53,798 42,349
Net cash used in financing activities (43,271) (14,923)
Net increase in cash 444 572
Cash at beginning of period 71,783 69,600
Cash at end of period $ 72,227 $ 70,172
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
<PAGE>
C&K 1981 FUND-B, 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-B, 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 June 1, 1981. Total initial Limited Partner
contributions were $9,332,500 including $100,000 contributed by C&K
Petroleum, Inc. ("C&K"), the initial General Partner. On September 15,
1982, C&K requested the Limited Partners to pay an additional assessment
of $2,333,125, or 25% of their initial contributions. Of this amount,
C&K paid $613,750 for 209 Limited Partners who declined to pay their
share of the additional assessment (Nonconsenting Limited Partners).
Nonconsenting Limited Partners are subject to a penalty in an amount
equal to 300% of the additional assessment paid by the 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, a Wyoming limited liability company ("WCLLC"), owned by
Williams Gas Management Company ("WGMan") and Cody Resources, Inc. ("CRI").
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 is the surviving corporation and, pursuant to the authority provided
in the Partnership Agreement, manages and controls the Partnership's
affairs and is 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. Distributions to Limited Partners represent periodic payments of
available cash, as determined in accordance with the terms of the
Partnership Agreement.
Payable to the General Partner
The long-term payable to the General Partner is the Nonconsenting
Limited Partners' obligation to the General Partner for their share of
costs, arising from Partnership operations, which are funded entirely by
the General Partner. The current portion of the liability includes the
amount estimated to be collectible from the Nonconsenting Limited
Partners' net operating revenues over the current operating cycle (one
year) and certain other amounts due from the Consenting Limited Partners.
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:
<TABLE>
<CAPTION>
Limited General
Partners Partner
<S> <C> <C>
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
As discussed in Note 1, the General Partner paid $613,750 of the
additional assessment for 209 Limited Partners (the Nonconsenting Limited
Partners) who declined to pay their share of the additional assessment.
Each such Nonconsenting Limited Partner's interest in the costs and
revenues of the Assessment Operations was suspended and accrues to the
benefit of the General Partner until Partnership revenues, less expenses,
related to the production of such revenues attributable to the Assessment
Operations, in an amount equal to 300% ($1,841,250) of the additional
assessment have been credited to the General Partner. As of March 31,
1997, $1,008,307 of revenue in excess of expenses has been allocated to
the General Partner.
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 provision has
been increased by the amount that his share of unamortized costs exceeded
the capitalization ceiling. At March 31, 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 $(98) and
$1,022 at March 31, 1997 and 1996, respectively, represents the difference
resulting from computing the full cost ceiling test 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 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 1,475.50 units had been purchased
from Limited Partners as of December 31, 1996. At January 1, 1997, the
General Partner calculated a purchase price of $134.03 per unit for those
Limited Partners who paid the additional assessment ( Consenting Limited
Partners ). The purchase price calculations for the Nonconsenting Limited
Partners did not result in a positive amount per unit and, therefore, the
General Partner has not offered to purchase such units during 1997. The
General Partner will, however, accept assignment of any nonconsenting
units that the Nonconsenting Limited Partners wish to transer to the
General Partner. Both partner groups have until June 30, 1997 to tender
units. At March 31, 1997, the General Partner owned a total of 1,515.50
Consenting Limited Partner 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 have been the maximum allowed under the terms of the
Partnership Agreement and were $69,994 for each three month period ended
March 31, 1997 and 1996.
During the first three months of 1997 and 1996, the Partnership
distributed $97,069 and $57,272, respectively, to the General Partner for
its allocated share of net revenues, and the General Partner contributed
$53,798 and $42,349, respectively, for its 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 9.3% and 9.4% during the three months ended March 31,
1997 and 1996, respectively. 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 - CONTINGENCIES
The Partnership has a net capital deficiency. As a result of the
deficit capital position of the Nonconsenting Limited Partners, all net
cash flows attributable to the Nonconsenting Limited Partners' share of
the Partnership's operations are presently applied entirely against their
indebtedness for past advances by the General Partner and are not available
to fund Partnership needs. Funds required by the Partnership in excess of
those generated by the operations attributable to different partner
interests 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.
C&K 1981 FUND-B, LTD.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities for the three months ended
March 31, 1997 was $47,820, compared to $13,899 for the corresponding
period in 1996. This increase was primarily the result of increased
oil and gas revenues in 1997.
The Partnership has made no immediate plans for additional exploratory
or developmental capital programs in 1997, except those necessary for
maintaining well productivity.
The Consenting Limited Partners' financing requirements for operating
expenses and capital projects are currently provided by revenues from their
share of the Partnership's operations. The Partnership does not consider
long-term financing arrangements on behalf of the Consenting Limited
Partners, from the General Partner or other sources, as necessary at this
time.
As a result of the deficit capital position of the Nonconsenting Limited
Partners, all net cash flows attributable to the Nonconsenting Limited
Partners' share of the Partnership's operations are presently applied
entirely against their indebtedness for past advances by the General
Partner and are not available to fund Partnership needs. Funds required by
the Partnership in excess of those generated by operations attributable to
the different partner interests will be advanced by the General Partner.
The Partnership cannot predict with any degree of certainty the prices
it will receive in the remainder of 1997 and future years for its crude oil
and natural gas. The Partnership's financial condition, operating results
and liquidity will continue to be materially affected by any significant
fluctuations in sales prices. The Partnership's ability to internally
generate funds for capital expenditures and the Nonconsenting Partners'
ability to reimburse funds advanced by the General Partner will be
similarly affected.
RESULTS OF OPERATIONS
The Partnership reported a net loss of $4,954 for the three months
ended March 31, 1997, compared to a net loss of $37,822 reported for the
same period in 1996. This positive variance was primarily attributable to
increased oil and gas revenues.
Crude oil and natural gas sales for the three months ended March 31,
1997 were $219,212, an increase of $83,612, or 62% compared to the same
period in 1996. Crude oil production increased to 88 barrels per day
while natural gas and plant products decreased to 90 thousand cubic feet
("mcf") and 32 equivalent mcf per day, respectively, during the first
quarter of 1997, compared to the 1996 level of 63 barrels, 115 mcf, and 39
equivalent mcf, respectively. During the first quarter of 1997, average
sales prices were $22.91 per barrel for crude oil, $2.88 per mcf for
natural gas, and $3.07 per equivalent mcf for plant products, compared to
$18.53 per barrel, $2.31 per mcf, and $1.64 per equivalent mcf,
respectively, for the same period in 1996.
Lease operating expense for the three months ended March 31, 1997
increased $21,018 or 132% compared to the corresponding period in 1996.
This increase is partially do to a timing difference for right-of-way
charges on the McIlhenny wells in Louisiana, which were expensed in the
second quarter of 1996. Lease operating expenses also increased due to
approximately $5,100 spent on a workover to enhance production on the
McIlhenny #1-Sidetrack #3 well, in addition to the normal monthly
operating expenses on that well. Production tax expense for the first
quarter of 1997 increased $6,960 or 40% compared to the same period
in 1996, which related primarily to the increase in crude oil production.
Marketing deductions were $679 for the three months ended March 31, 1997
compared to $3,621 for the three months ended March 31, 1996.
Depreciation, depletion and amortization expense increased $17,848 or
97% compared to the corresponding period in 1996. This increase
is the result of increases in oil and gas revenues and additions to the
depletion base and reserves assigned to the properties by independent
reserve engineers, effective January 1, 1997. General and administrative
expenses for the first quarter of 1997 increased $3,811 or 5% compared to
the same period in 1996. Interest expense increased $3,921 or 8%
compared to the corresponding period in 1996, resulting from an increase
in the payable to the General Partner since the first quarter of 1996.
<PAGE>
PART II - OTHER INFORMATION
C&K 1981 FUND-B, 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-B, LTD.
(Registrant)
By: /s/ Dan R. Taylor
Dan R. Taylor
Vice President, Finance & Accounting
CODY TEXAS, L.P.
Successor General Partner
Date: May 13, 1997
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 72,227
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 72,227
<PP&E> 22,973,603
<DEPRECIATION> 22,452,090
<TOTAL-ASSETS> 593,740
<CURRENT-LIABILITIES> 11,896
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> (1,872,941)
<TOTAL-LIABILITY-AND-EQUITY> 593,740
<SALES> 219,212
<TOTAL-REVENUES> 219,656
<CGS> 0
<TOTAL-COSTS> 224,610
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 52,251
<INCOME-PRETAX> (4,954)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,954)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,954)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
