SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
/X/ Quarterly Report Pursuant to Section 13 or 15(d)of the Securities
Exchange Act of 1934
For the Quarterly Period Ended June 30, 1995
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the Transition Period Ended______________________
Commission File Number 2-784441
STERLING GAS DRILLING FUND 1982
(Exact name of registrant as specified in charter)
New York
(State or other jurisdiction of incorporation or organization)
13-3147901
(IRS employer identification number)
One Landmark Square, Stamford Connecticut 06901
(Address and Zip Code of principal executive offices)
(203) 358-5700
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last
report)
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
PART I
Item 1. Financial Statements
The following Financial Statements are filed herewith:
Balance Sheets - June 30, 1995 and December 31, 1994.
Statements of Operations for the Six and the Three Months Ended June 30, 1995
and 1994.
Statements of Changes in Partners' Equity for the Six and the Three Months
Ended June 30, 1995.
Statements of Cash Flows for the Six Months Ended June 30, 1995 and 1994.
Note to Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
1. Liquidity -
The oil and gas industry is intensely competitive in all its phases. There
is also competition among this industry and other industries in supplying
energy and fuel requirements of industrial and individual consumers. It is
not possible for the Registrant to calculate its position in the industry
as Registrant competes with many other companies having substantially
greater financial and other resources. In accordance with the terms of the
Prospectus, the General Partners of the Registrant will make cash
distributions of as much of the Partnership cash, credited to the capital
accounts of the Partners, as the General Partners have determined is not
necessary or desirable for the payment of any contingent debts, liabilities
or expenses or for the conduct of the Partnership's business. As of June
30, 1995, the General Partners have distributed to the Limited Partners
$1,402,512 or 9.76% of total limited partner capital contributions to the
Limited Partners.
Columbia Gas Transmission Corp., a contract purchaser of the Registrant's
gas, filed a Chapter 11 petition in U.S. Bankruptcy Court in Wilmington
Delaware on July 31, 1991. At that time, the Bankruptcy Court released
Columbia from any current contracts. The Registrant has filed a claim with
the Bankruptcy Court to recover revenue suspended at the time bankruptcy
occurred. Such amounts were not recorded as revenue during the applicable
period, therefore, no loss contingency exists. The Registrant has reviewed
and accepted a tentative settlement offer made by Columbia. The Registrant
is hopeful that Columbia will make a final settlement within the next
twelve months.
The net proved oil and gas reserves of the Partnership are considered to be
a primary indicator of financial strength and future liquidity. The
present value of unescalated estimated future net revenues (SEC case)
associated with such reserves, discounted at 10% as of December 31, 1994
was approximately $415,000.
2. Capital Resources -
The Registrant was formed for the sole intention of drilling oil and gas
wells. The Registrant entered into a drilling contract with an independent
contractor in December 1982 for $11,400,000. Pursuant to the terms of this
contract, fifty-one wells have been drilled resulting in fifty producing
wells and one dry-hole. The Registrant has had a reserve report prepared
which details reserve value information, and such information is available
to the Limited Partners pursuant to the buy-out provisions of the
Prospectus as previously filed.
3. Results of Operations -
Operating revenues decreased from $169,399 in 1995 to $133,803 in 1995 .
The gas production declined from 54,527 MCF in 1994 to 51,678 MCF in 1995
combined with an average price decrease from $2.84 per MCF in 1995 to $2.21
per MCF in 1995 contributed to lower revenues. Production expenses
decreased from to $101,594 in 1995 to $63,901 in 1995. In 1994, additional
production expenses, for example location, line outages, roadway
maintenance and electrical repairs increased substantially due to severe
weather conditions. The current year production expenses incurred included
costs for general upkeep and repairs to wells.
General and administrative expenses have been segregated on the financial
statements to show expenses paid to PrimeEnergy Management Corporation, a
general partner. The expenses charged are in accordance with the
guidelines set forth in the Registrant's Management Agreement. PEMC is
reimbursed expenses attributable to the affairs and operations of the
Partnership. These costs shall not exceed an annual amount equal to 5% of
limited partner capital contributions. Amounts related to both 1995 and
1994 are substantially less than the amounts allocable to the Registrant
under the Partnership Agreement. PEMC continues to perform these
functions as cost effectively as possible either through efficient use of
in-house resources or using third parties when applicable.
The partnership records additional depreciation, depletion and amortization
to the extent that net capitalized costs exceed the undiscounted future net
cash flows attributable to the Partnership properties. No additional
depreciation, depletion and amortization was made in 1994.
4. Other-
In, March, the Financial Accounting Standards Board issued Statement of
Financial Standards No. 121, "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed of," (SFAS No. 121)
which is effective for the fiscal years beginning after December 15, 1995.
This statement establishes accounting standards for the impairment of long-
lived assets, requiring such assets to be reported at the lower of carrying
amount or fair value, less selling costs. The statement amends SFAS No.
19,
"Financial Accounting and Reporting by Oil and Gas Producing Companies"
by adding an impairment test for proved properties in accordance with
SFAS No. 121.
PART II
Items 1 through 5 have been omitted in that each item is either
inapplicable or the answer is negative.
Item 6: Exhibits and Reports on Form 8-K
The Partnership was not required to file any reports on Form 8-K and
no such form was filed during the period covered by this report.
Exhibit 27 - Financial Data Schedule is attached to the electronic
filing of this report.
S I G N A T U R E S
Pursuant to the requirements of Section 13 or 15 (d) of the Securities and
Exchange Act of 1934, Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
STERLING GAS DRILLING FUND 1982
(Registrant)
BY:/S/Charles E. Drimal, Jr.
Charles E. Drimal, Jr.
General Partner
August 10, 1995
(Date)
STERLING DRILLING FUND 1982
(a New York Limited Partnership)
Balance Sheets
(unaudited)
June 30, December 31,
1995 1994
Assets
Current Assets:
Cash and cash equivalents $ 117 $ 43
----------- -------------
Total current assets 117 43
Oil and Gas properties -
successful efforts method:
Leasehold costs 466,804 466,804
Well and related facilities 11,947,691 11,947,691
less accumulated depreciation,
depletion and amortization (11,624,866) (11,588,436)
----------- -------------
789,629 826,059
----------- -------------
Total assets $ 789,746 $ 826,102
=========== =============
Liabilities and Partners' Equity
Current liabilities:
Due to affiliates $ 549,753 $ 568,490
----------- -------------
Total current liabilities 549,753 568,490
----------- -------------
Partners' Equity
Limited partners 560,188 580,425
General partners (320,195) (322,813)
----------- -------------
Total partners' equity 239,993 257,612
----------- -------------
Total liabilities and
partners' equity $ 789,746 $ 826,102
=========== =============
STERLING DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Operations
(unaudited)
Six Months Ending
June 30, 1995
Limited General
Partners Partners Total
Revenue:
Operating revenue $ 112,595 $ 21,208 $ 133,803
-------- -------- -------
Total Revenue 112,595 21,208 133,803
-------- -------- -------
Costs and Expenses:
Production expense 53,773 10,128 63,901
General and administrative 31,556 5,944 37,500
to a related party
General and administrative 11,437 2,154 13,591
Depreciation, depletion 36,066 364 36,430
and amortization
-------- -------- -------
Total Costs and Expenses 132,832 18,590 151,422
-------- -------- -------
Net Income(loss) $ (20,237) $ 2,618 $ (17,619)
======== ======== =======
Net Income(loss)
per equity unit $ (1.41)
======
STERLING DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Operations
(unaudited)
Six Months Ending
June 30, 1994
Limited General
Partners Partners Total
Revenue:
Operating revenue $ 142,549 $ 26,850 $ 169,399
-------- ------- ----------
Total Revenue 142,549 26,850 169,399
-------- ------- ----------
Costs and Expenses:
Production expense 85,491 16,103 101,594
General and administrative 42,412 7,988 50,400
to a related party
General and administrative 9,326 1,759 11,082
Depreciation, depletion 23,096 233 23,329
and amortization
-------- ------- ----------
Total Costs and Expenses 160,325 26,080 186,405
-------- ------- ----------
Net Income(loss) $ (17,776) $ 770 $ (17,006)
======== ======= ==========
Net Income(loss)
per equity unit $ (1.24)
========
STERLING DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Operations
(unaudited)
Three Months Ending
June 30, 1995
Limited General
Partners Partners Total
Revenue:
Operating revenue $ 42,100 $ 7,930 $ 50,030
-------- -------- ---------
Total Revenue 42,100 7,930 50,030
-------- -------- ---------
Costs and Expenses:
Production expense 16,254 3,061 19,315
General and administrative
to a related party 15,778 2,972 18,750
General and administrative 7,353 1,385 8,738
Depreciation, depletion
and amortization 18,034 182 18,216
-------- -------- ---------
Total Costs and Expenses 57,419 7,600 65,019
-------- -------- ---------
Net Income(loss) $ (15,319) $ 330 $ (14,989)
======== ======== =========
Net Income(loss)
per equity unit $ (1.07)
========
STERLING DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Operations
(unaudited)
Three Months Ending
June 30, 1994
Limited General
Partners Partners Total
Revenue:
Operating revenue $ 68,473 $ 12,898 $ 81,371
-------- -------- -----------
Total Revenue 68,473 12,898 $ 81,371
-------- -------- -----------
Costs and Expenses:
Production expense 49,867 9,393 59,260
General and administrative
to a related party 21,206 3,994 25,200
General and administrative 5,456 1,026 6,482
Depreciation, depletion
and amortization 11,548 117 11,665
-------- -------- -----------
Total Costs and Expenses 88,077 14,530 102,607
-------- -------- -----------
Net Income(loss) $ (19,604) $ (1,632) $ (21,236)
======== ======== ===========
Net Income(loss)
per equity unit $ (1.36)
======
STERLING DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Changes in Partners' Equity
(unaudited)
Six Months Ended
June 30, 1995
Limited General
Partners Partners Total
Balance at beginning of
period $ 580,425 $ (322,813) $ 257,612
Net Income(Loss) (20,237) 2,618 (17,619)
-------- -------- -----------
Balance at end of period 560,188 (320,195) 239,993
======== ======== ===========
Six Months Ended
June 30, 1994
Limited General
Partners Partners Total
Balance at beginning of period $ 669,273 (320,179) 349,094
Net Income(Loss) (17,776) 770 (17,006)
-------- -------- ----------
Balance at end of period 651,497 (319,409) 332,088
======== ======== ==========
STERLING DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Changes in Partners' Equity
(unaudited)
Three Months Ended
June 30, 1995
Limited General
Partners Partners Total
Balance at beginning of
period $ 575,507 $ (320,525) $ 254,982
Net Income(Loss) (15,319) 330 (14,989)
-------- -------- -----------
Balance at end of period 560,188 (320,195) 239,993
======== ======== ===========
Three Months Ended
June 30, 1994
Limited General
Partners Partners Total
Balance at beginning of
period $ 671,101 $ (317,777) $ 353,324
Net Income(Loss) (19,604) (1,632) (21,236)
----------- --------- -----------
Balance at end of period 651,497 (319,409) 332,088
=========== ========= ===========
STERLING DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Cash Flows
(unaudited)
Six months Six months
ended ended
June 30, June 30, 1994
1995
Net cash provided by operating
activities $ 74 $ 33
---------- ----------
Net increase(decrease) in cash and
cash equivalents 74 33
Cash and cash equivalents at
beginning of period 43 46
---------- ----------
Cash and cash equivalents at end of
period $ 117 $ 79
========== ==========
see accompanying note to financials
STERLING GAS DRILLING FUND 1982
(a New York limited partnership)
Note to Financial Statements
June 30, 1995
1. The accompanying statements for the period ending June 30, 1995 are
unaudited, but reflect all adjustments necessary to present fairly the
results of operations. Certain reclassifications were made to the prior
period's financial statements to conform to the current period
presentation.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Sterling Gas Drilling Fund 1982 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 117
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 117
<PP&E> 12414495
<DEPRECIATION> 11624866
<TOTAL-ASSETS> 789746
<CURRENT-LIABILITIES> 549753
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 239993<F1>
<TOTAL-LIABILITY-AND-EQUITY> 789746
<SALES> 0
<TOTAL-REVENUES> 133803
<CGS> 0
<TOTAL-COSTS> 151422
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (17619)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>Field Other Se contains total partners equity.
</FN>
</TABLE>
