<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended Commission File Number
June 30, 1996 0-12261 (1982-1)
0-12262 (1982-2)
DYCO 1982 OIL AND GAS PROGRAMS
(TWO LIMITED PARTNERSHIPS)
(Exact Name of Registrant as specified in its charter)
41-1438430 (1982-1)
Minnesota 41-1438437 (1982-2)
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(918) 583-1791
-------------------------------------------------
(Registrant's telephone number, including area code)
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
---- ----
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1996 1995
-------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 64,810 $ 29,087
Accrued oil and gas sales, including
$33,654 due from related parties
in 1995 (Note 2) 51,104 46,151
-------- --------
Total current assets $115,914 $ 75,238
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 192,497 216,077
DEFERRED CHARGE 59,970 59,970
-------- --------
$368,381 $351,285
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 7,882 $ 6,648
-------- --------
Total current liabilities $ 7,882 $ 6,648
ACCRUED LIABILITY 55,380 55,380
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 100 units 3,051 2,892
Limited Partners, issued and
outstanding 10,000 units 302,068 286,365
-------- --------
Total Partners' capital $305,119 $289,257
-------- --------
$368,381 $351,285
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
REVENUES:
Oil and gas sales, including
$58,406 of sales to related
parties in 1995 (Note 2) $86,118 $69,390
Interest 412 11
------- -------
$86,530 $69,401
COST AND EXPENSES:
Oil and gas production $33,613 $24,950
Depreciation, depletion, and
amortization of oil and gas
properties 13,399 15,186
General and administrative (Note 2) 27,293 28,937
------- -------
$74,305 $69,073
------- -------
NET INCOME $12,225 $ 328
======= =======
GENERAL PARTNER (1%) - net
income $ 123 $ 3
======= =======
LIMITED PARTNERS (99%) - net
income $12,102 $ 325
======= =======
NET INCOME PER UNIT $ 1 $ -
======= =======
UNITS OUTSTANDING 10,100 10,100
======= =======
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
REVENUES:
Oil and gas sales, including
$112,608 of sales to related
parties in 1995 (Note 2) $161,672 $134,106
Interest 654 80
-------- --------
$162,326 $134,186
COST AND EXPENSES:
Oil and gas production $ 61,725 $ 61,159
Depreciation, depletion, and
amortization of oil and gas
properties 25,038 29,151
General and administrative (Note 2) 59,701 61,241
-------- --------
$146,464 $151,551
-------- --------
NET INCOME (LOSS) $ 15,862 ($ 17,365)
======== ========
GENERAL PARTNER (1%) - net
income (loss) $ 159 ($ 174)
======== ========
LIMITED PARTNERS (99%) - net
income (loss) $ 15,703 ($ 17,191)
======== ========
NET INCOME (LOSS) PER UNIT $ 2 ($ 2)
======== ========
UNITS OUTSTANDING 10,100 10,100
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $15,862 ($ 17,365)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 25,038 29,151
Increase in accrued oil and gas
sales ( 4,953) ( 26,112)
Increase in accounts payable 1,234 1,097
------- --------
Net cash provided (used) by
operating activities $37,181 ($ 13,229)
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties ($ 2,031) $ -
Retirements of oil and gas
properties 573 -
------- --------
Net cash used by investing
activities ($ 1,458) $ -
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net cash used by financing
activities $ - $ -
------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $35,723 ($ 13,229)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 29,087 16,790
------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $64,810 $ 3,561
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1996 1995
-------- ------------
CURRENT ASSETS:
Cash and cash equivalents $141,774 $160,547
Accrued oil and gas sales, including
$78,204 due from related parties
in 1995 (Note 2) 116,250 90,919
-------- --------
Total current assets $258,024 $251,466
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 262,689 340,653
DEFERRED CHARGE 24,820 24,820
-------- --------
$545,533 $616,939
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 28,814 $ 27,055
Gas imbalance payable 8,822 8,822
-------- --------
Total current liabilities $ 37,636 $ 35,877
ACCRUED LIABILITY 67,850 67,850
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 80 units 4,400 5,132
Limited Partners, issued and
outstanding 8,000 units 435,647 508,080
-------- --------
Total Partners' capital $440,047 $513,212
-------- --------
$545,533 $616,939
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
REVENUES:
Oil and gas sales, including
$137,274 of sales to related
parties in 1995 (Note 2) $202,973 $166,119
Interest 2,918 2,525
-------- --------
$205,891 $168,644
COST AND EXPENSES:
Oil and gas production $ 39,223 $ 37,239
Depreciation, depletion, and
amortization of oil and gas
properties 35,404 46,049
General and administrative (Note 2) 21,555 22,931
-------- --------
$ 96,182 $106,219
-------- --------
NET INCOME $109,709 $ 62,425
======== ========
GENERAL PARTNER (1%) - net
income $ 1,097 $ 625
======== ========
LIMITED PARTNERS (99%) - net
income $108,612 $ 61,800
======== ========
NET INCOME PER UNIT $ 14 $ 7
======== ========
UNITS OUTSTANDING 8,080 8,080
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
REVENUES:
Oil and gas sales, including
$262,901 of sales to related
parties in 1995 (Note 2) $365,408 $313,215
Interest 4,702 3,811
-------- --------
$370,110 $317,026
COST AND EXPENSES:
Oil and gas production $ 87,947 $ 83,636
Depreciation, depletion, and
amortization of oil and gas
properties 65,620 85,788
Valuation allowance - 14,169
General and administrative (Note 2) 47,308 49,369
-------- --------
$200,875 $232,962
-------- --------
NET INCOME $169,235 $ 84,064
======== ========
GENERAL PARTNER (1%) - net
income $ 1,692 $ 841
======== ========
LIMITED PARTNERS (99%) - net
income $167,543 $ 83,223
======== ========
NET INCOME PER UNIT $ 21 $ 10
======== ========
UNITS OUTSTANDING 8,080 8,080
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $169,235 $ 98,233
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 65,620 85,788
(Increase) decrease in accrued oil
and gas sales ( 25,331) 9,808
Increase in accounts payable 1,759 2,323
-------- --------
Net cash provided by operating
activities $211,283 $196,152
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties ($ 60) ($ 3,190)
Retirements of oil and gas
properties 12,404 -
-------- --------
Net cash provided (used) by
investing activities $ 12,344 ($ 3,190)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($242,400) $ -
-------- --------
Net cash used by financing
activities ($242,400) $ -
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 18,773) $192,962
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 160,547 59,881
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $141,774 $252,843
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1996, statements of operations
for the three and six months ended June 30, 1996 and 1995, and
statements of cash flows for the six months ended June 30, 1996
and 1995 have been prepared by Dyco Petroleum Corporation
("Dyco"), the General Partner of the Dyco Oil and Gas Program
1982-1 and 1982-2 Limited Partnerships (individually, the "1982-1
Program" or the "1982-2 Program", as the case may be, or,
collectively, the "Programs"), without audit. In the opinion of
management all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position
at June 30, 1996, results of operations for the three and six
months ended June 30, 1996 and 1995 and changes in cash flows for
the six months ended June 30, 1996 and 1995 have been made.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto
included in the Programs' Annual Report on Form 10-K for the year
ended December 31, 1995. The results of operations for the
period ended June 30, 1996 are not necessarily indicative of the
results to be expected for the full year.
The limited partners' net income or loss per unit is based upon
each $5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost
method of accounting. All productive and non-productive costs
associated with the acquisition, exploration and development of
oil and gas reserves are capitalized. In the event the
unamortized cost of oil and gas properties being amortized
exceeds the full cost ceiling (as defined by the Securities and
Exchange Commission), the excess is charged to expense in the
period during which such excess occurs. At June 30, 1995 the
unamortized cost of oil and gas properties exceeded the full cost
ceiling by $14,169. This excess was charged to expense during
the six months ended June 30, 1995. No such valuation allowance
was incurred during the six months ended June 30, 1996. Sales
and abandonments of properties are accounted for as adjustments
of capitalized costs with no gain or loss recognized, unless such
adjustments would significantly alter the relationship between
capitalized costs and proved oil and gas reserves.
The provision for depreciation, depletion, and amortization of
oil and gas properties is calculated by dividing the oil and gas
sales dollars during the year by the estimated future gross
income from the oil and gas properties and applying the resulting
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rate to the net remaining costs of oil and gas properties that
have been capitalized, plus estimated future development costs.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each Program's partnership agreement, Dyco is
entitled to receive a reimbursement for all direct expenses and
general and administrative, geological and engineering expenses
it incurs on behalf of the Program. During the three months
ended June 30, 1996 and 1995, the 1982-1 Program incurred such
expenses totaling $27,293 and $28,937, respectively, of which
$18,615 and $18,615 were paid to Dyco. During the six months
ended June 30, 1996 and 1995, the 1982-1 Program incurred such
expenses totaling $59,701 and $61,241, respectively, of which
$37,230 and $37,230 were paid to Dyco. During the three months
ended June 30, 1996 and 1995, the 1982-2 Program incurred such
expenses totaling $21,555 and $22,931, respectively, of which
$14,610 and $14,610 were paid to Dyco. During the six months
ended June 30, 1996 and 1995, the 1982-2 Program incurred such
expenses totaling $47,308 and $49,369, respectively, of which
$29,220 and $29,220 were paid to Dyco.
Affiliates of the Programs are the operators of certain of the
Programs' properties and their policy is to bill the Programs for
all customary charges and cost reimbursements associated with
their activities, together with any compressor rentals,
consulting, or other services provided.
The Programs sold gas at market prices to Premier Gas Company
("Premier") and Premier then resold such gas to third parties at
market prices. Premier was an affiliate of the Programs until
December 6, 1995. During the three months ended June 30, 1995
these sales for the 1982-1 Program totaled $58,406. During the
six months ended June 30, 1995 these sales for the 1982-1 Program
totaled $112,608. At December 31, 1995, accrued oil and gas
sales for the 1982-1 Program included $33,654 due from Premier.
During the three months ended June 30, 1995 these sales for the
1982-2 Program totaled $137,274. During the six months ended
June 30, 1995 these sales for the 1982-2 Program totaled
$262,901. At December 31, 1995, accrued oil and gas sales for
the 1982-2 Program included $78,204 due from Premier.
3. CONTINGENCY
-----------
On November 12, 1992, two individuals filed a lawsuit against
Dyco and others in which the plaintiffs alleged damages to their
land as a result of remediation operations conducted on one of
the 1982-2 Program's wells on an adjoining property. The lawsuit
alleged claims based on negligence, private nuisance, public
nuisance, trespass, unjust enrichment, constructive fraud, and
permanent injunctive relief, all in amounts to be determined at
trial. Dyco has filed an answer in the matter in which it
asserted a defense of failure to state a claim. A trial was
conducted in the matter on February 22, 1994 in which the jury
entered a verdict in favor of the plaintiffs in the amount of
approximately $5.5 million, consisting of approximately $2.75
million in actual damages and approximately $2.75 million in
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punitive damages. Dyco appealed the district court's verdict and
on March 5, 1996 the Oklahoma Court of Appeals reversed the
district court's verdict and ordered a new trial. Both Dyco and
the plaintiffs have filed petitions for certiorari with the
Supreme Court of Oklahoma seeking a further review of the Court
of Appeals' opinion. Included in these financial statements as
of December 31, 1995 and June 30, 1996 is an accrual by the
General Partner of $20,000 representing the 1982-2 Program's
share of estimated ultimate damages resulting from the above
mentioned contingency.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Net proceeds from the Programs' operations less necessary
operating capital are distributed to investors on a quarterly
basis. The net proceeds from production are not reinvested in
productive assets, except to the extent that producing wells are
improved, or where methods are employed to permit more efficient
recovery of the Programs' reserves which would result in a
positive economic impact. Over the last several years, the
domestic energy industry and the Programs have contended with
volatile, but generally low, oil and gas prices. Over the past
few years, the oil and gas market appears to have moved from
periods of relative stability in supply and demand to excess
supply or weakened demand. These trends have led to the
volatility in pricing and demand noted over the past years.
The Programs' available capital from subscriptions has been spent
on oil and gas drilling activities. There should not be any
further material capital resource commitments in the future. The
Programs have no bank debt commitments. Cash for operational
purposes will be provided by current oil and gas production.
RESULTS OF OPERATIONS
- ----------------------
1982-1 PROGRAM
THREE MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1995.
Three months ended June 30,
---------------------------
1996 1995
-------- ------
Oil and gas sales $86,118 $69,390
Oil and gas production expenses $33,613 $24,950
Barrels produced 633 621
Mcf produced 37,408 44,567
Average price/Bbl $ 19.85 $ 17.69
Average price/Mcf $ 1.97 $ 1.31
As shown in the table, oil and gas sales increased $16,728
(24.1%) for the three months ended June 30, 1996 as compared to
the three months ended June 30, 1995. Of this increase, $29,414
was related to the increase in the average price of natural gas
sold, partially offset by a $14,103 decrease related to the
decrease in the volumes of natural gas sold. Volumes of oil sold
increased 12 barrels, while volumes of natural gas sold decreased
7,159 Mcf for the three months ended June 30, 1996 as compared to
the three months ended June 30, 1995. The decrease in the
volumes of natural gas sold resulted primarily from positive
prior period volume adjustments from a purchaser on two wells
during the three months ended June 30, 1995 and the normal
declines in production from diminished natural gas reserves on
one well during the three months ended June 30, 1996 as compared
to the three months ended June 30, 1995. Average oil and natural
gas prices increased to $19.85 per barrel and $1.97 per Mcf,
respectively, for the three months ended June 30, 1996 from
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$17.69 per barrel and $1.31 per Mcf, respectively, for the three
months ended June 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $8,663 for the three
months ended June 30, 1996 as compared to the three months ended
June 30, 1995. This increase was primarily due to (i) workover
expenses on one well incurred during the three months ended June
30, 1996 in order to improve the recovery of reserves and (ii)
higher general repair and maintenance expenses incurred on two
wells during the three months ended June 30, 1996 as compared to
the three months ended June 30, 1995, partially offset by
workover expenses on one well incurred during the three months
ended June 30, 1995 in order to improve the recovery of reserves.
As a percentage of oil and gas sales, these expenses increased to
39.0% for the three months ended June 30, 1996 from 36.0% for the
three months ended June 30, 1995. This percentage increase was
primarily a result of the dollar increase in workover expenses
and repair and maintenance expenses discussed above, partially
offset by increases in the average prices of oil and natural gas
sold during the three months ended June 30, 1996 as compared to
the three months ended June 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $1,787 for the three months ended June 30,
1996 as compared to the three months ended June 30, 1995. This
decrease was primarily a result of an increase in the estimate of
the 1982-1 Program's remaining natural gas reserves at December
31, 1995. As a percentage of oil and gas sales, this expense
decreased to 15.6% for the three months ended June 30, 1996 from
21.9% for the three months ended June 30, 1995. This percentage
decrease was primarily the result of increases in the average
prices of oil and natural gas sold during the three months ended
June 30, 1996 as compared to the three months ended June 30,
1995.
General and administrative expenses decreased $1,644 for the
three months ended June 30, 1996 as compared to the three months
ended June 30, 1995. This decrease resulted primarily from a
decrease in printing and postage expenses during the three months
ended June 30, 1996 as compared to the three months ended June
30, 1995. As a percentage of oil and gas sales, these expenses
decreased to 31.7% for the three months ended June 30, 1996 from
41.7% for the three months ended June 30, 1995. This percentage
decrease was primarily a result of increases in the average
prices of oil and natural gas sold during the three months ended
June 30, 1996 as compared to the three months ended June 30,
1995.
SIX MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1995.
Six months ended June 30,
---------------------------
1996 1995
-------- ------
Oil and gas sales $161,672 $134,106
Oil and gas production expenses $ 61,725 $ 61,159
Barrels produced 1,033 1,188
Mcf produced 75,210 87,407
Average price/Bbl $ 19.30 $ 17.29
Average price/Mcf $ 1.88 $ 1.30
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As shown in the table, oil and gas sales increased $27,566
(20.6%) for the six months ended June 30, 1996 as compared to the
six months ended June 30, 1995. Of this increase, $50,696 was
related to the increase in the average price of natural gas sold,
partially offset by a $25,922 decrease related to the decreases
in the volumes of oil and natural gas sold. Volumes of oil and
natural gas sold decreased 155 barrels and 12,197 Mcf,
respectively, for the six months ended June 30, 1996 as compared
to the six months ended June 30, 1995. The decrease in the
volumes of oil sold resulted primarily from positive prior period
volume adjustments from a purchaser on one well during the six
months ended June 30, 1995. The decrease in the volumes of
natural gas sold resulted primarily from (i) positive prior
period volume adjustments from a purchaser on several wells
during the six months ended June 30, 1995 and (ii) the normal
declines in production from diminished natural gas reserves
during the six months ended June 30, 1996, partially offset by a
negative gas balancing adjustment on one well during the six
months ended June 30, 1995. Average oil and natural gas prices
increased to $19.30 per barrel and $1.88 per Mcf, respectively,
for the six months ended June 30, 1996 from $17.29 per barrel and
$1.30 per Mcf, respectively, for the six months ended June 30,
1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant for
the six months ended June 30, 1996 as compared to the six months
ended June 30, 1995. As a percentage of oil and gas sales, these
expenses decreased to 38.2% for the six months ended June 30,
1996 from 45.6% for the six months ended June 30, 1995. This
percentage decrease was primarily a result of increases in the
average prices of oil and natural gas sold during the six months
ended June 30, 1996 as compared to the six months ended June 30,
1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $4,113 for the six months ended June 30,
1996 as compared to the six months ended June 30, 1995. This
decrease was primarily a result of an increase in the estimate of
the 1982-1 Program's remaining natural gas reserves at December
31, 1995. As a percentage of oil and gas sales, this expense
decreased to 15.5% for the six months ended June 30, 1996 from
21.7% for the six months ended June 30, 1995. This percentage
decrease was primarily the result of increases in the average
prices of oil and natural gas sold during the six months ended
June 30, 1996 as compared to the six months ended June 30, 1995.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1996 as compared to the six
months ended June 30, 1995. As a percentage of oil and gas
sales, these expenses decreased to 36.9% for the six months ended
June 30, 1996 from 45.7% for the six months ended June 30, 1995.
This percentage decrease was primarily a result of increases in
the average prices of oil and natural gas sold during the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995.
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1982-2 PROGRAM
THREE MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1995.
Three months ended June 30,
---------------------------
1996 1995
-------- ------
Oil and gas sales $202,973 $166,119
Oil and gas production expenses $ 39,223 $ 37,239
Barrels produced 122 350
Mcf produced 102,012 120,031
Average price/Bbl $ 21.71 $ 11.54
Average price/Mcf $ 1.96 $ 1.35
As shown in the table, oil and natural gas sales increased
$36,854 (22.2%) for the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995. Of this
increase, $76,779 resulted from the increases in the average
prices of oil and natural gas sold, partially offset by a $40,267
decrease related to the decreases in the volumes of oil and
natural gas sold. Volumes of oil and natural gas sold decreased
228 barrels and 18,019 Mcf, respectively, for the three months
ended June 30, 1996 as compared to the three months ended June
30, 1995. The decrease in the volumes of oil sold during the
three months ended June 30, 1996 as compared to the three months
ended June 30, 1995 was primarily due to the sale of one well.
The decrease in the volumes of natural gas sold resulted
primarily from (i) a positive prior period adjustment from a
purchaser on one well during the three months ended June 30, 1995
and (ii) the normal declines in production from diminished
natural gas reserves on two wells during the three months ended
June 30, 1996 as compared to the three months ended June 30,
1995. Average oil and natural gas prices increased to $21.71 per
barrel and $1.96 per Mcf, respectively, for the three months
ended June 30, 1996 from $11.54 per barrel and $1.35 per Mcf,
respectively, for the three months ended June 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $1,984 for the three
months ended June 30, 1996 as compared to the three months ended
June 30, 1995. This increase was primarily due to higher general
repair and maintenance expenses incurred on several wells during
the three months ended June 30, 1996 as compared to the three
months ended June 30, 1995. As a percentage of oil and gas
sales, these expenses decreased to 19.3% for the three months
ended June 30, 1996 from 22.4% for the three months ended June
30, 1995. This percentage decrease was primarily a result of
increases in the average prices of oil and natural gas sold
during the three months ended June 30, 1996 as compared to the
three months ended June 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $10,645 for the three months ended June 30,
1996 as compared to the three months ended June 30, 1995. This
decrease was primarily the result of the decreases in the volumes
of oil and natural gas sold during the three months ended June
30, 1996 as compared to the three months ended June 30, 1995 and
an upward revision in the estimate of the 1982-2 Program's
remaining natural gas reserves at December 31, 1995. As a
percentage of oil and gas sales, this expense decreased to 17.4%
-16-
<PAGE>
<PAGE>
for the three months ended June 30, 1996 from 27.7% for the three
months ended June 30, 1995. This percentage decrease was
primarily due to increases in the average prices of oil and
natural gas sold during the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995.
General and administrative expenses decreased $1,376 for the
three months ended June 30, 1996 as compared to the three months
ended June 30, 1995. This decrease resulted primarily from a
decrease in printing and postage expenses during the three months
ended June 30, 1996 as compared to the three months ended June
30, 1995. As a percentage of oil and gas sales, these expenses
decreased to 10.6% for the three months ended June 30, 1996 from
13.8% for the three months ended June 30, 1995. This percentage
decrease was primarily the result of the increases in average
prices of oil and natural gas sold during the three months ended
June 30, 1996 as compared to the three months ended June 30,
1995.
SIX MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1995.
Six months ended June 30,
---------------------------
1996 1995
-------- ------
Oil and gas sales $365,408 $313,215
Oil and gas production expenses $ 87,947 $ 83,636
Barrels produced 168 432
Mcf produced 196,096 238,204
Average price/Bbl $ 21.38 $ 11.71
Average price/Mcf $ 1.85 $ 1.29
As shown in the table, oil and natural gas sales increased
$52,193 (16.7%) for the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995. Of this
increase, $137,571 was related to the increases in the average
prices of oil and natural gas sold, partially offset by a $83,544
decrease related to the decreases in the volumes of oil and
natural gas sold. Volumes of oil and natural gas sold decreased
264 barrels and 42,108 Mcf, respectively, for the six months
ended June 30, 1996 as compared to the six months ended June 30,
1995. The decrease in the volumes of oil sold during the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995 was primarily due to the sale of one well. The
decrease in the volumes of natural gas sold resulted primarily
from (i) a positive prior period adjustment from a purchaser on
one well during the six months ended June 30, 1995 and (ii) the
normal declines in production from diminished natural gas
reserves on two wells during the six months ended June 30, 1996
as compared to the six months ended June 30, 1995. Average oil
and natural gas prices increased to $21.38 per barrel and $1.85
per Mcf, respectively, for the six months ended June 30, 1996
from $11.71 per barrel and $1.29 per Mcf, respectively, for the
six months ended June 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $4,311 for the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995. This increase was primarily due to higher general
repair and maintenance expenses incurred on several wells during
the six months ended June 30, 1996 as compared to the six months
-17-
<PAGE>
<PAGE>
ended June 30, 1995. As a percentage of oil and gas sales, these
expenses decreased to 24.1% for the six months ended June 30,
1996 from 26.7% for the six months ended June 30, 1995. This
percentage decrease was primarily a result of increases in the
average prices of oil and natural gas sold during the six months
ended June 30, 1996 as compared to the six months ended June 30,
1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $20,168 for the six months ended June 30,
1996 as compared to the six months ended June 30, 1995. This
decrease was primarily the result of the decreases in the volumes
of oil and natural gas sold during the six months ended June 30,
1996 as compared to the six months ended June 30, 1995 and an
upward revision in the estimate of the 1982-2 Program's remaining
natural gas reserves at December 31, 1995. As a percentage of
oil and gas sales, this expense decreased to 18.0% for the six
months ended June 30, 1996 from 27.4% for the six months ended
June 30, 1995. This percentage decrease was primarily due to
increases in the average prices of oil and natural gas sold
during the six months ended June 30, 1996 as compared to the six
months ended June 30, 1995.
As a result of declines in natural gas prices during the first
quarter of 1995, the 1982-2 Program recognized a non-cash charge
against earnings of $14,169 during the six months ended June 30,
1995. This valuation allowance for oil and gas properties at
June 30, 1995 was necessary due to the unamortized costs of oil
and gas properties exceeding the present value of the estimated
future net revenues from the oil and gas properties. No similar
charge was necessary during the six months ended June 30, 1996.
General and administrative expenses decreased $2,061 for the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995. This decrease resulted primarily from a decrease
in printing and postage expenses during the six months ended June
30, 1996 as compared to the six months ended June 30, 1995. As a
percentage of oil and gas sales, these expenses decreased to
12.9% for the six months ended June 30, 1996 from 15.8% for the
six months ended June 30, 1995. This percentage decrease was
primarily the result of increases in the average prices of oil
and natural gas sold during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995.
-18-
<PAGE>
<PAGE>
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary
financial information extracted from the Dyco Oil
and Gas Program 1982-1 Limited Partnership's
financial statements as of June 30, 1996 and for
the six months ended June 30, 1996, filed
herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the Dyco Oil
and Gas Program 1982-2 Limited Partnership's
financial statements as of June 30, 1996 and for
the six months ended June 30, 1996, filed
herewith.
(b) Reports on Form 8-K
None
-19-
<PAGE>
<PAGE>
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, thereunto duly authorized.
DYCO OIL AND GAS PROGRAM 1982-1 LIMITED
PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1982-2 LIMITED
PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: August 6, 1996 By: /s/Dennis R. Neill
-----------------------------------
(Signature)
Dennis R. Neill
President
Date: August 6, 1996 By: /s/Drew S. Phillips
-----------------------------------
(Signature)
Drew S. Phillips
Chief Financial Officer
-20-
<PAGE>
<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1982-1 Limited Partnership's financial statements as of June
30, 1996 and for the six months ended June 30, 1996, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1982-2 Limited Partnership's financial statements as of June
30, 1996 and for the six months ended June 30, 1996, filed
herewith.
All other exhibits are omitted as inapplicable.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000718943
<NAME> DYCO OIL AND GAS PROGRAM 1982-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 64,810
<SECURITIES> 0
<RECEIVABLES> 51,104
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 115,914
<PP&E> 52,570,343
<DEPRECIATION> 52,377,846
<TOTAL-ASSETS> 368,381
<CURRENT-LIABILITIES> 7,882
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 305,119
<TOTAL-LIABILITY-AND-EQUITY> 368,381
<SALES> 161,672
<TOTAL-REVENUES> 162,326
<CGS> 0
<TOTAL-COSTS> 146,464
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 15,862
<INCOME-TAX> 0
<INCOME-CONTINUING> 15,862
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,862
<EPS-PRIMARY> 2
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000718944
<NAME> DYCO OIL AND GAS PROGRAM 1982-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 141,774
<SECURITIES> 0
<RECEIVABLES> 116,250
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 258,024
<PP&E> 38,320,435
<DEPRECIATION> 38,057,746
<TOTAL-ASSETS> 545,533
<CURRENT-LIABILITIES> 37,636
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 440,047
<TOTAL-LIABILITY-AND-EQUITY> 545,533
<SALES> 365,408
<TOTAL-REVENUES> 370,110
<CGS> 0
<TOTAL-COSTS> 200,875
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 169,235
<INCOME-TAX> 0
<INCOME-CONTINUING> 169,235
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 169,235
<EPS-PRIMARY> 21
<EPS-DILUTED> 0
</TABLE>
