<PAGE> 1
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 March 31, 2000
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
<PAGE> 2
PART I
Item 1. Financial Statements
The following Financial Statements are filed herewith:
Balance Sheets - March 31, 2000 and December 31, 1999.
Statements of Operations for the Three Months Ended March 31, 2000 and 1999.
Statements of Changes in Partners' Equity for the Year Ended
December 31,1999 and for the Three Months Ended March 31, 2000.
Statements of Cash Flows for the Three Months Ended March 31,2000 and 1999.
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 competitive in all its phases.
There is also competition between this industry and other industries in
supplying energy and fuel requirements of industrial and residential
consumers. It is not possible for the Registrant to calculate its position
in the industry as the Registrant competes with many other companies having
substantially greater financial and other resources. In accordance with
the terms of the Agreement of Limited Partnership of the Partnership, 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 for the conduct of
the Partnership business. As of March 31, 2000, the General Partners have
distributed to the Limited Partners $1,402,512 or 9.76% of the total
Limited Partner capital contributions.
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 future net revenue (S.E.C. case) associated
with such reserves, discounted at 10% as of December 31, 1999 was
approximately $936,729, as compared to December 31, 1998, of about
$768,500. Overall reservoir engineering is a subjective process of
estimating underground accumulations of gas and oil that can not be measure
in an exact manner. The accuracy of any reserve estimate is a function of
the quality of available data and of the engineering and geological
interpretation and judgment. Accordingly, reserve estimates are generally
different from the quantities of gas and oil that are ultimately recovered
and such differences may have a material impact on the Partnership's
financial results and future liquidity.
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.
<PAGE> 3
3. Results of Operations -
Overall operating revenues increased from $43,091 in 1999 to $81,212 in
2000 The partnership receives most of its income from gas producing wells.
The gas production and average price per mcf increased, the production
went from 19,347 MCF in 1999 to 21,722 MCF in 2000. The average price per
mcf changed from $2.68 in 1999 to $3.22 in 2000. Production expenses
increased slighty , from $30,877 in 1999 to $32,075 in 2000. These costs
include those associated with repairs needed for access to the wells and
well sites and the related labor costs. The production expenses incurred in
both 1999 and 2000 were typical and customary to the upkeep of the
Partnership's wells.
Overall general and administrative expenses remained stable in both 1999
and 2000. All related party expenses charged are in accordance with the
guidelines set forth in the Registrant's Management Agreement. PrimeEnergy
Management Corporation 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 1999 and 2000 are substantially less than the amounts
allocable to the Registrant under the Partnership Agreement. PrimeEnergy
Management Corporation 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 underdiscounted future
net cash flows attributable to the Partnership properties. The partnership
was not required to reduce the properties basis in either 1999 or first
quarter 2000. Depletion, depreciation and amortization expense was
consistent with the current property basis and the rates applied.
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.
<PAGE> 4
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
May 11, 2000
(Date)
<PAGE> 5
STERLING GAS DRILLING FUND 1982
(a New York Limited Partnership)
Balance Sheets
(unaudited)
March 31, December 31,
2000 1999
Assets
Current Assets:
Cash and cash equivalents $ 10 $ 4
Due from Others 36,575 0
------------ -----------
-
Total current assets 36,585 4
------------ -----------
-
Oil and Gas properties -
Successful efforts method:
Leasehold costs 466,804 466,804
Well and related facilities 11,970,091 11,970,091
Less accumulated depreciation,
depletion and amortization (11,794,774) (11,785,739)
------------ -------------
-
642,121 651,156
------------ -------------
-
Total assets $ 678,706 $ 651,160
======== ========
Liabilities and Partners' Equity
Current liabilities:
Due to affiliates $ 259,717 $ 245,150
----------- -----------
Total current liabilities 259,717 245,150
----------- -----------
Partners' Equity
Limited partners 685,585 676,005
General partners (266,596) (269,995)
----------- -----------
Total partners' equity 418,989 406,010
----------- -----------
Total liabilities and $ 678,706 $ 651,160
Partners' equity
======== ========
See accompanying note to the financial statements.
<PAGE> 6
STERLING GAS DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Operations
(unaudited)
Three Months Ended
March 31, 2000
Limited General
Partners Partners Total
Revenue:
Operating revenue $ 68,340 12,872 $ 81,212
-------- -------- -------
Total Revenue 68,340 12,872 81,212
-------- -------- -------
Costs and Expenses:
Production expense 26,991 5,084 32,075
General and administrative
to a related party 17,881 3,368 21,249
General and administrative 4,943 931 5,874
Depreciation, depletion
and amortization 8,945 90 9,035
-------- -------- -------
Total Costs and Expenses 58,760 9,473 68,233
-------- -------- -------
Net Income/(Loss) $ 9,580 3,399 $ 12,979
====== ===== ======
Net Income/(Loss) per equity $ 0.67
unit
======
See accompanying note to the financial statements.
<PAGE> 7
STERLING GAS DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Operations
(unaudited)
Three Months Ended
March 31, 1999
Limited General
Partners Partners Total
Revenue:
Operating revenue $ 36,261 6,829 $ 43,090
-------- -------- -------
Total Revenue 36,261 6,829 43,090
-------- -------- -------
Costs and Expenses:
Production expense 25,983 4,893 30,876
General and administrative
to a related party 17,884 3,369 21,253
General and administrative 3,809 718 4,527
Depreciation, depletion
and amortization 8,600 87 8,687
-------- -------- -------
Total Costs and Expenses 56,276 9,067 65,343
-------- -------- -------
Net Income/(Loss) $ (20,015) (2,238) $ (22,253)
======== ======== =======
Net Income/(Loss) per equity $ (1.55)
unit
======
See accompanying note to the financial statements.
<page > 8
STERLING GAS DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Changes in Partners' Equity
(unaudited)
Limited General
Partners Partners Total
Balance at December 31, 1998 $ 699,647 $ (272,291) $ 427,356
Net Income/(Loss) (23,642) 2,296 (21,346)
--------- ---------- --------
- -
Balance at December 31, 1999 $ 676,005 (269,995) 406,010
Net Income/(Loss) 9,580 3,399 12,979
--------- --------- --------
- -
Balance at March 31, 2000 $ 685,585 (266,596) 418,989
====== ====== ======
See accompanying note to the financial statements.
<PAGE> 9
STERLING GAS DRILLING FUND 1982
(a New York Limited Partnership)
Statement of Cash Flows
(unaudited)
Three months Three months
ended March ended March
31,2000 31,1999
Net cash provided by/(used in)
operating activities $ 6 $ 8
------------ ----------
Net increase(decrease) in cash and cash 6 8
equivalents
Cash and cash equivalents at beginning 4 20
of period
------------ ------------
Cash and cash equivalents at end of $ 10 $ 12
period
======= =======
See accompanying note to the financial statements.
<PAGE> 10
STERLING GAS DRILLING FUND 1982
(a New York limited partnership)
Note to Financial Statements
March 31, 2000
1. The accompanying statements for the period ending March 31,
2000 are unaudited, but reflect all adjustments necessary to
present fairly the results of operations
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Sterling Gas Drilling Fund 1982 first quarter 2000 10Q and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 10
<SECURITIES> 0
<RECEIVABLES> 36,575
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 36,585
<PP&E> 12,436,895
<DEPRECIATION> (11,794,774)
<TOTAL-ASSETS> 678,706
<CURRENT-LIABILITIES> 259,717
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 418,989<F1>
<TOTAL-LIABILITY-AND-EQUITY> 678,706
<SALES> 81,212
<TOTAL-REVENUES> 81,212
<CGS> 68,233
<TOTAL-COSTS> 68,233
<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> 12,979
<EPS-BASIC> 0.67<F2>
<EPS-DILUTED> 0
<FN>
<F1>Other-se includes total partners' equity.
<F2>The limited partnerhip net income was allocated by catagory of partner.
The limited partner's class was divided bby the total number of
limited partner units of 14,370.
</FN>
</TABLE>
