<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO. 1 TO
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
March 31, 1995 0-12052
DYCO OIL AND GAS PROGRAM 1983-1
(A LIMITED PARTNERSHIP)
(Exact Name of Registrant as specified in its charter)
Minnesota 41-1451945
(State or other jurisdiction (I.R.S. Employer
Identification
of incorporation or organization) Number)
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
---- ----
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1995 1994
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 165,104 $ 59,992
Accrued oil and gas sales, including
$93,262 and $138,468 due from
related parties (Note 2) . . . . . . 125,700 158,161
---------- ----------
Total current assets . . . . . . . $ 290,804 $ 218,153
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 828,298 885,812
DEFERRED CHARGE . . . . . . . . . . . . . 51,707 51,707
---------- ----------
$1,170,809 $1,155,672
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 26,771 $ 39,425
Gas imbalance payable . . . . . . . . 9,893 9,893
---------- ----------
Total current liabilities . . . . . $ 36,664 $ 49,318
ACCRUED LIABILITY . . . . . . . . . . . . 127,160 127,160
CONTINGENCY (NOTE 3)
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
76 units . . . . . . . . . . . . . . 10,070 9,792
Limited Partners, issued and outstanding,
7,600 units . . . . . . . . . . . . 996,915 969,402
---------- ----------
Total Partners' capital . . . . . . $1,006,985 $ 979,194
---------- ----------
$1,170,809 $1,155,672
========== ==========
The accompanying condensed notes are an
integral part of these financial statements.
-2-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
1995 1994
--------- ----------
REVENUES:
Oil and gas sales, including
$157,623 and $319,534 of sales
to related parties (Note 2) . . . . $212,446 $323,723
Interest . . . . . . . . . . . . . . . 1,167 1,606
-------- --------
$213,613 $325,329
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $100,513 $ 55,133
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 57,514 72,196
General and administrative (Note 2) . 27,795 25,678
-------- --------
$185,822 $153,007
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 27,791 $172,322
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 278 $ 1,723
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 27,513 $170,599
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 4 $ 22
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 7,676 7,676
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-3-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(Unaudited)
1995 1994
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . $ 27,791 $172,322
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 57,514 72,196
Decrease in accrued oil and gas sales 32,461 57,954
Decrease in accounts payable . . . . ( 12,654) ( 42,221)
-------- --------
Net cash provided by operating
activities $105,112 $260,251
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used by investing activities $ - $ -
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . $ - ($307,040)
-------- --------
Net cash used by financing activities $ - ($307,040)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . $105,112 ($ 46,789)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 59,992 187,098
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIO $165,104 $140,309
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-4-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1995
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of March 31, 1995, statements of
operations for the three months ended March 31, 1995 and 1994,
and statements of cash flows for the three months ended March
31, 1995 and 1994 have been prepared by Dyco Petroleum
Corporation ("Dyco"), the General Partner of the Dyco Oil and
Gas Program 1983-1 Limited Partnership (the "Program"),
without audit. In the opinion of management all adjustments
(which include only normal recurring adjustments) necessary to
present fairly the financial position at March 31, 1995, and
results of operations and changes in cash flows for the three
months ended March 31, 1995 and 1994 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 Program's Annual Report on Form 10-K for the
year ended December 31, 1994. The results of operations for
the period ended March 31, 1995 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. 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 rate to the net remaining costs of oil and gas
properties that have been capitalized, plus estimated future
development costs.
-5-
<PAGE>
<PAGE>
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of the 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 March 31, 1995 and 1994 such expenses totaled
$27,795 and $25,678, respectively, of which $17,820 and
$17,820 were paid to Dyco.
Affiliates of the Program are the operators of certain of the
Program's properties and their policy is to bill the Program
for all customary charges and cost reimbursements associated
with their activities, together with any compressor rentals,
consulting, or other services provided.
The Program sells gas at market prices to Premier Gas Company
("Premier"), an affiliated company, and Premier may then
resell such gas to third parties at market prices. During the
three months ended March 31, 1995 and 1994 these sales totaled
$157,623 and $319,534, respectively. At March 31, 1995
accrued oil and gas sales included $93,262 due from Premier.
3. CONTINGENCY
-----------
On November 4, 1993, Brumark Corporation and certain related
parties filed a lawsuit against Dyco and its affiliates in
which the plaintiffs alleged that one of the Program's wells
is draining the reserves of the field in which it is located
and that Dyco and its affiliates have conducted manipulative
wellbore flow tests to create the illusion of higher capacity
in the field. The lawsuit asserts causes of action of
conversion and fraud and claims entitlement to approximately
$4.6 million attributable to gas sold from 1984 to 1992. On
February 25, 1994, the district court granted Dyco's motion to
dismiss the plaintiffs' complaint. Plaintiffs have appealed
the matter to the U.S. Tenth Circuit Court of Appeals, where
the parties are currently filing briefs in support of their
respective positions. As of the date of these financial
statements, management cannot determine the amount of any
alleged damages which would be allocable to the Program.
-6-
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Net proceeds from the Program's 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 Program's reserves
which would result in a positive economic impact.
The Program's 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 Program has no bank debt commitments. Cash for
operational purposes will be provided by current oil and gas
production.
RESULTS OF OPERATIONS
---------------------
THREE MONTHS ENDED MARCH 31, 1995 AS COMPARED TO THE THREE
MONTHS ENDED MARCH 31, 1994.
Three Months ended March 31,
---------------------------
1995 1994
---- ----
Oil and gas sales $212,446 $323,723
Oil and gas production expenses $100,513 $ 55,133
Barrels produced 227 309
Mcf produced 169,198 169,861
Average price/Bbl $ 18.07 $ 13.56
Average price/Mcf $ 1.23 $ 1.88
As shown in the table, oil and natural gas sales decreased
by 34.4% for the three months ended March 31, 1995 as
compared to the three months ended March 31, 1994. This
decrease was due primarily to a decrease in the average
price of natural gas sold, partially offset by an increase
in the average price of oil sold. Volumes of oil and
natural gas sold decreased slightly by 82 barrels and 663
Mcf, respectively, for the three months ended March 31, 1995
as compared to the three months ended March 31, 1994.
Average natural gas prices decreased to $1.23 per Mcf for
the three months ended March 31, 1995 from $1.88 per Mcf for
the three months ended March 31, 1994, while average oil
prices increased to $18.07 per barrel for the three months
ended March 31, 1995 from $13.56 per barrel for the similar
period in 1994.
Oil and gas production expenses (including lease operating
-7-
<PAGE>
<PAGE>
expenses and production taxes) increased $45,380 for the
three months ended March 31, 1995 as compared to the three
months ended March 31, 1994. This dollar increase was
primarily due to workover charges incurred on two wells
during the three months ended March 31, 1995 to improve the
recovery of reserves. As a percentage of oil and gas sales,
these expenses increased to 47.3% for the three months ended
March 31, 1995 from 17.0% for the three months ended March
31, 1994. This percentage increase resulted primarily from
the increase in production expenses related to workover
charges as discussed above and the decrease in the average
price of natural gas sold during the three months ended
March 31, 1995 as compared to the similar period in 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $14,682 for the three months ended
March 31, 1995 as compared to the three months ended March
31, 1994. This decrease was primarily due to a significant
increase in the estimate of the Program's remaining natural
gas reserves. As a percentage of oil and gas sales, this
expense increased 27.1% for the three months ended March 31,
1995 from 22.3% for the three months ended March 31, 1994.
This percentage increase was primarily due to the decrease
in the average price of natural gas sold, partially offset
by the dollar decrease in depreciation, depletion, and
amortization expense resulting from the increase in the
estimate of the Program's remaining natural gas reserves as
discussed above.
General and administrative expenses increased slightly by
$2,117 for the three months ended March 31, 1995 as compared
to the three months ended March 31, 1994. As a percentage
of oil and gas sales, these expenses increased to 13.1% for
the three months ended March 31, 1995 as compared to 7.9%
for the three months ended March 31, 1994. This percentage
increase was primarily due to the decrease in the average
price of natural gas sold.
-8-
<PAGE>
<PAGE>
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
-9-
<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 1983-1 LIMITED PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: August 24, 1995 By: /s/Dennis R. Neill
------------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: August 24, 1995 By: /s/Patrick M. Hall
------------------------------
(Signature)
Patrick M. Hall
Senior Vice President -
Controller
Principal Accounting Officer
-10-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000719958
<NAME> DYCO OIL AND GAS PROGRAM 1983-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 165,104
<SECURITIES> 0
<RECEIVABLES> 125,700
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 290,804
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,170,809
<CURRENT-LIABILITIES> 36,664
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 1,006,985
<TOTAL-LIABILITY-AND-EQUITY> 1,170,809
<SALES> 212,446
<TOTAL-REVENUES> 213,613
<CGS> 0
<TOTAL-COSTS> 185,822
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 27,791
<INCOME-TAX> 0
<INCOME-CONTINUING> 27,791
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 27,791
<EPS-PRIMARY> 4.00
<EPS-DILUTED> 0
</TABLE>
