<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, 1995 2-92702 (1985-1)
2-92702-01 (1985-2)
DYCO 1985 OIL AND GAS PROGRAMS
(TWO LIMITED PARTNERSHIPS)
(Exact Name of Registrant as specified in its charter)
41-1498087 (1985-1)
Minnesota 41-1498086 (1985-2)
(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 1985-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1995 1994
---------- -------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 82,268 $ 39,697
Accrued oil and gas sales, including
$37,424 and $18,859 due from
related parties (Note 2) . . . . . . 80,671 25,179
-------- --------
Total current assets . . . . . . . $162,939 $ 64,876
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 239,220 279,586
-------- --------
$402,159 $344,462
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 8,082 $ 8,155
-------- --------
Total current liabilities . . . . . $ 8,082 $ 8,155
ACCRUED LIABILITY . . . . . . . . . . . . 10,057 10,057
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
41 units . . . . . . . . . . . . . . 3,840 3,262
Limited Partners, issued and outstanding,
4,100 units . . . . . . . . . . . . 380,180 322,988
-------- --------
Total Partners' capital . . . . . . $384,020 $326,250
-------- --------
$402,159 $344,462
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-2-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ----------
REVENUES:
Oil and gas sales, including
$64,273 and $109,889 of sales
to related parties (Note 2) . . . . $122,488 $153,779
Interest . . . . . . . . . . . . . . . 720 1,135
-------- --------
$123,208 $154,914
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 33,521 $ 36,878
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 36,819 46,893
General and administrative (Note 2) . 15,106 11,765
-------- --------
$ 85,446 $ 95,536
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 37,762 $ 59,378
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 378 $ 593
======== ========
LIMITED PARTNERS (99%) - net income . . $ 37,384 $ 58,785
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 9 $ 14
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 4,141 4,141
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-3-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ----------
REVENUES:
Oil and gas sales, including
$123,981 and $205,957 of sales
to related parties (Note 2) . . . . $232,649 $339,851
Interest . . . . . . . . . . . . . . . 1,197 1,400
-------- --------
$233,846 $341,251
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 76,851 $ 77,695
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 67,734 93,786
General and administrative (Note 2) . 31,491 27,438
-------- --------
$176,076 $198,919
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 57,770 $142,332
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 578 $ 1,423
======== ========
LIMITED PARTNERS (99%) - net income . . $ 57,192 $140,909
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 14 $ 34
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 4,141 4,141
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-4-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . $57,770 $142,332
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 67,734 93,786
Increase in accrued oil and gas sales ( 55,492) ( 6,641)
Decrease in accounts payable . . . . ( 73) ( 2,435)
------- --------
Net cash provided by operating
activities . . . . . . . . . . . . $69,939 $227,042
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($27,368) ($ 3,321)
------- --------
Net cash used by investing activities ($27,368) ($ 3,321)
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . $ - ($207,050)
------- --------
Net cash used by financing activities $ - ($207,050)
------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS $42,571 $ 16,671
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD . . . . . . . . . . . . . . . . . 39,697 22,690
------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $82,268 $ 39,361
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
-5-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1995 1994
--------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 32,255 $ 5,733
Accounts receivable - Related party . 15,345 -
Accrued oil and gas sales, including
$11,157 and $12,688 due from
related parties (Note 2) . . . . . . 40,545 40,509
-------- --------
Total current assets . . . . . . . $ 88,145 $ 46,242
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 145,893 186,746
DEFERRED CHARGE . . . . . . . . . . . . . 21,036 21,036
-------- --------
$255,074 $254,024
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 8,163 $ 9,303
-------- --------
Total current liabilities . . . . . $ 8,163 $ 9,303
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
44 units . . . . . . . . . . . . . . 2,469 2,447
Limited Partners, issued and outstanding,
4,330 units . . . . . . . . . . . . 244,442 242,274
-------- --------
Total Partners' capital . . . . . . $246,911 $244,721
-------- --------
$255,074 $254,024
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-6-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
------ ------
REVENUES:
Oil and gas sales, including
$21,391 and $30,676 of sales
to related parties (Note 2) . . . . $62,851 $182,150
Interest . . . . . . . . . . . . . . . 49 454
------- --------
$62,900 $182,604
------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $27,823 $ 59,229
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 16,902 49,428
General and administrative (Note 2) . 14,693 11,072
------- --------
$59,418 $119,729
------- --------
NET INCOME . . . . . . . . . . . . . . . $ 3,482 $ 62,875
======= ========
GENERAL PARTNER (1%) - net income . . . . $ 35 $ 629
======= ========
LIMITED PARTNERS (99%) - net income . . . $ 3,447 $ 62,246
======= ========
NET INCOME PER UNIT . . . . . . . . . . . $ 1 $ 15
======= ========
UNITS OUTSTANDING . . . . . . . . . . . . 4,374 4,374
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
-7-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
------ ------
REVENUES:
Oil and gas sales, including
$38,168 and $50,574 of sales
to related parties (Note 2) . . . . $130,607 $252,882
Interest . . . . . . . . . . . . . . . 59 602
-------- --------
$130,666 $253,484
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 61,411 $ 95,418
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 35,927 67,147
General and administrative (Note 2) . 31,138 26,363
-------- --------
$128,476 $188,928
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 2,190 $ 64,556
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 22 $ 646
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 2,168 $ 63,910
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 1 $ 15
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 4,374 4,374
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-8-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . $ 2,190 $ 64,556
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 35,927 67,147
Increase in accounts receivable - Related
Party . . . . . . . . . . . . . . . ( 15,345) -
Increase in accrued oil and gas sales ( 36) ( 532)
Decrease in deferred charge . . . . - 24,817
Decrease in accounts payable . . . . ( 1,140) ( 721)
------- --------
Net cash provided by operating
activities . . . . . . . . . . . . $21,596 $155,267
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . $ - ($ 3,733)
Retirements of oil and gas properties 4,926 -
------- --------
Net cash provided (used) by investing
activities . . . . . . . . . . . $ 4,926 ($ 3,733)
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . $ - ($109,350)
------- --------
Net cash used by financing activities: $ - ($109,350)
------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS $26,522 $ 42,184
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD . . . . . . . . . . . . . . . . . 5,733 18,493
------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $32,255 $ 60,677
======= ========
The accompanying condensed notes are an
integral part of these financial statements.
-9-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1995, statements of operations
for the three and six months ended June 30, 1995 and 1994, and
statements of cash flows for the six months ended June 30, 1995
and 1994 have been prepared by Dyco Petroleum Corporation
("Dyco"), the General Partner of the Dyco Oil and Gas Program
1985-1 and 1985-2 Limited Partnerships (individually, the "1985-
1 Program" or the "1985-2 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, 1995, results of operations for the three and six
months ended June 30, 1995 and 1994 and changes in cash flows
for the six months ended June 30, 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 Programs' Annual Report on Form 10-K for the
year ended December 31, 1994. The results of operations for the
period ended June 30, 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
-10-
<PAGE>
<PAGE>
resulting 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 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 six months ended June 30, 1995 and 1994 the 1985-1 Program
incurred such expenses totaling $31,491 and $27,438,
respectively, of which $21,420 and $21,420 were paid to Dyco.
During the six months ended June 30, 1995 and 1994 the 1985-2
Program incurred such expenses totaling $31,138 and $26,363,
respectively, of which $20,136 and $20,136 were paid to Dyco.
The 1985-2 Program had a receivable from a related party at June
30, 1995 of $15,345. Any interest related to this receivable
for the six months ended June 30, 1995 would be insignificant
and has not been recorded.
Affiliates of the Program 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 sell 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 six
months ended June 30, 1995 and 1994 these sales for the 1985-1
Program totaled $123,981 and $205,957, respectively. At June
30, 1995 accrued oil and gas sales for the 1985-1 Program
included $37,424 due from Premier. During the six months ended
June 30, 1995 and 1994 these sales for the 1985-2 Program
totaled $38,168 and $50,574, respectively. At June 30, 1995
accrued oil and gas sales for the 1985-2 Program included
$11,157 due from Premier.
-11-
<PAGE>
<PAGE>
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.
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
---------------------
1985-1 Program
THREE MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED JUNE 30, 1994.
Three months ended June 30,
--------------------------
1995 1994
---- ----
Oil and gas sales $122,498 $153,779
Oil and gas production expenses $ 33,521 $ 36,878
Barrels produced 1,751 2,148
Mcf produced 67,099 67,237
Average price/Bbl $ 20.07 $ 17.36
Average price/Mcf $ 1.30 $ 1.73
As shown in the table above, oil and natural gas sales
decreased 20.3% for the three months ended June 30, 1995 as
compared to the three months ended June 30, 1994. This
decrease resulted primarily from the decrease in volumes of
oil sold and a decrease in the average price of natural gas
sold, partially offset by an increase in the average price
of oil sold during the three months ended June 30, 1995 as
compared to the three months ended June 30, 1994. Volumes
of oil sold decreased 397 barrels, while the volumes of
natural gas sold remained relatively constant for the three
months ended June 30, 1995 as compared to the three months
ended June 30, 1994. Average oil prices increased to $20.07
per barrel for the three months ended June 30, 1995 from
$17.36 per barrel for the three months ended June 30, 1994,
while natural gas prices decreased to an average of $1.30
per Mcf for the three months ended June 30, 1995 from an
-12-
<PAGE>
<PAGE>
average of $1.73 per Mcf for the three months ended June 30,
1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $3,357 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This decrease was primarily due
to a decrease in production taxes primarily from the
decrease in the average price of natural gas sold during the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. As a percentage of oil and gas
sales, these expenses increased to 27.4% for the three
months ended June 30, 1995 from 24.0% for the three months
ended June 30, 1994. This percentage increase was primarily
due to the decrease in the average price of natural gas sold
during the three months ended June 30, 1995 as compared to
the three months ended June 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $10,074 for the three months ended June
30, 1995 as compared to the three months ended June 30,
1994. This decrease was primarily a result of an upward
revision in the estimate of the 1985-1 Program's remaining
oil and natural gas reserves. As a percentage of oil and
gas sales, this expense remained relatively constant at
30.1% for the three months ended June 30, 1995 compared to
30.5% for the three months ended June 30, 1994.
General and administrative expenses increased $3,341 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. The dollar increase resulted
primarily from an increase in the 1985-1 Program's
professional fees during the three months ended June 30,
1995 as compared to the three months ended June 30, 1994.
As a percentage of oil and gas sales, these expenses
increased to 12.3% for the three months ended June 30, 1995
from 7.7% for the three months ended June 30, 1994. This
percentage increase was primarily due to the dollar increase
in general and administrative expenses as discussed above
and the decrease in the average price of natural gas sold
during the three months ended June 30, 1995 as compared to
the similar period in 1994.
SIX MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1994.
Six months ended June 30,
-------------------------
1995 1994
---- ----
Oil and gas sales $232,649 $339,851
Oil and gas production expenses $ 76,851 $ 77,695
Barrels produced 3,930 4,873
Mcf produced 118,634 138,812
Average price/Bbl $ 19.28 $ 16.90
Average price/Mcf $ 1.32 $ 1.86
-13-
<PAGE>
<PAGE>
As shown in the table above, oil and natural gas sales
decreased 31.5% for the six months ended June 30, 1995 as
compared to the six months ended June 30, 1994. This
decrease resulted from the decrease in the volumes of oil
and natural gas sold and a decrease in the average price of
natural gas sold, partially offset by an increase in the
average price of oil sold during the six months ended June
30, 1995 as compared to the six months ended June 30, 1994.
Volumes of oil and natural gas sold decreased 943 barrels
and 20,178 Mcf, respectively, for the six months ended June
30, 1995 as compared to the six months ended June 30, 1994.
The decrease in the volumes of natural gas sold was
primarily a result of a clerical error made by a purchaser
in a prior year which was recouped by the purchaser during
the six months ended June 30, 1995. Average oil prices
increased to $19.28 per barrel for the six months ended June
30, 1995 from $16.90 per barrel for the six months ended
June 30, 1994, while average natural gas prices decreased to
$1.32 per Mcf for the six months ended June 30, 1995 from
$1.86 per Mcf for the six months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant
for the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994. As a percentage of oil and
gas sales, these expenses increased to 33.0% for the six
months ended June 30, 1995 from 22.9% for the six months
ended June 30, 1994. This percentage increase was primarily
due to the decrease in the average price of natural gas sold
during the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $26,052 for the six months ended June
30, 1995 as compared to the six months ended June 30, 1994.
This decrease was primarily a result of an upward revision
in the estimate of the 1985-1 Program's remaining oil and
natural gas reserves and the decreases in the volumes of oil
and natural gas sold during the six months ended June 30,
1995 as compared to the six months ended June 30, 1994. As
a percentage of oil and gas sales, this expense increased
slightly to 29.1% for the six months ended June 30, 1995
from 27.6% for the six months ended June 30, 1994. This
percentage increase was primarily due to the decrease in the
average price of natural gas sold during the six months
ended June 30, 1995 as compared to the six months ended June
30, 1994.
General and administrative expenses increased $4,053 for the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. The dollar increase resulted primarily
from an increase in the 1985-1 Program's professional fees
-14-
<PAGE>
<PAGE>
during the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994. As a percentage of oil and
gas sales, these expenses increased to 13.5% for the six
months ended June 30, 1995 from 8.1% for the six months
ended June 30, 1994. This percentage increase was primarily
due to the dollar increase in general and administrative
expenses as discussed above and the decrease in the average
price of natural gas sold during the six months ended June
30, 1995 as compared to the similar period in 1994.
1985-2 Program
THREE MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED JUNE 30, 1994.
Three months ended June 30,
--------------------------
1995 1994
---- ----
Oil and gas sales $62,851 $182,150
Oil and gas production expenses $27,823 $ 59,229
Barrels produced 1,638 2,544
Mcf produced 24,628 64,879
Average price/Bbl $ 18.07 $ 16.11
Average price/Mcf $ 1.35 $ 2.18
As shown in the table above, oil and natural gas sales
decreased 65.5% for the three months ended June 30, 1995 as
compared to the three months ended June 30, 1994. The
decrease resulted primarily from the decrease in the volumes
of oil and natural gas sold and the decrease in the average
price of natural gas sold, partially offset by an increase
in the average price of oil sold during the three months
ended June 30, 1995 as compared to the three months ended
June 30, 1994. Volumes of oil and natural gas sold
decreased 906 barrels and 40,251 Mcf, respectively, for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. The decrease in volumes of
natural gas sold was primarily a result of a gas balancing
adjustment on one of the 1985-2 Program's wells during the
three months ended June 30, 1994. Average oil prices
increased to $18.07 per barrel for the three months ended
June 30, 1995 from $16.11 per barrel for the three months
ended June 30, 1994, while average natural gas prices
decreased to $1.35 per Mcf for the three months ended June
30, 1995 from $2.18 per Mcf for three months ended June 30,
1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $31,406 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This decrease resulted
primarily from the decrease in the volumes of oil and
natural gas sold during the three months ended June 30, 1995
as compared to the three months ended June 30, 1994. As a
percentage of oil and gas sales, these expenses increased to
-15-
<PAGE>
<PAGE>
44.3% for the three months ended June 30, 1995 from 32.5%
for the three months ended June 30, 1994. This percentage
increase was primarily due to the decrease in the average
price of natural gas sold during the three months ended June
30, 1995 as compared to the three months ended June 30,
1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $32,526 for the three months ended June
30, 1995 as compared to the three months ended June 30,
1994. This decrease was primarily due to an upward revision
in the estimate of the 1985-2 Program's remaining oil and
natural gas reserves and the decreases in the volumes of oil
and natural gas sold during the three months ended June 30,
1995 as compared to the three months ended June 30, 1994.
As a percentage of oil and gas sales, this expense remained
relatively constant at 26.9% for the three months ended June
30, 1995 as compared to 27.1% for the three months ended
June 30, 1994.
General and administrative expenses increased $3,621 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. The dollar increase resulted
primarily from an increase in the 1985-2 Program's
professional fees during the three months ended June 30,
1995 as compared to the three months ended June 30, 1994.
As a percentage of oil and gas sales, these expenses
increased to 23.4% for the three months ended June 30, 1995
from 6.1% for the three months ended June 30, 1994. This
percentage increase was primarily due to the dollar increase
in general and administrative expenses as discussed above
and the decreases in the volumes of oil and natural gas sold
and a decrease in the average price of natural gas sold
during the three months ended June 30, 1995 as compared to
the three months ended June 30, 1994.
SIX MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE SIX MONTHS
ENDED JUNE
30, 1994.
Six months ended June 30,
------------------------
1995 1994
---- ----
Oil and gas sales $130,607 $252,882
Oil and gas production expenses $ 61,411 $ 95,418
Barrels produced 4,068 5,134
Mcf produced 44,825 83,278
Average price/Bbl $ 17.64 $ 15.16
Average price/Mcf $ 1.31 $ 2.10
As shown in the table above, oil and natural gas sales
decreased 48.4% for the six months ended June 30, 1995 as
compared to the six months ended June 30, 1994. The
decrease resulted primarily from the decrease in the volumes
-16-
<PAGE>
<PAGE>
of oil and natural gas sold and the decrease in the average
price of natural gas sold, partially offset by an increase
in the average price of oil sold during the six months ended
June 30, 1995 as compared to the six months ended June 30,
1994. Volumes of oil and natural gas sold decreased 1,066
barrels and 38,453 Mcf, respectively, for the six months
ended June 30, 1995 as compared to the six months ended June
30, 1994. The decrease in volumes of natural gas sold was
primarily a result of a gas balancing adjustment on one of
the 1985-2 Program's wells during the six months ended June
30, 1994. Average oil prices increased to $17.64 per barrel
for the six months ended June 30, 1995 from $15.16 per
barrel for the six months ended June 30, 1994, while average
natural gas prices decreased to $1.31 per Mcf during the six
months ended June 30, 1995 from $2.10 per Mcf for the six
months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $34,007 for the six
months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This decrease resulted primarily from
the decrease in the volumes of oil and natural gas sold
during the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994. As a percentage of oil and
gas sales, these expenses increased to 47.0% for the six
months ended June 30, 1995 from 37.7% for the six months
ended June 30, 1994. This percentage increase was primarily
due to the decrease in the average price of natural gas sold
during the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $31,220 for the six months ended June
30, 1995 as compared to the six months ended June 30, 1994.
This decrease was primarily due to an upward revision in the
estimate of the 1985-2 Program's remaining oil and natural
gas reserves and the decrease in the volumes of oil and
natural gas sold during the six months ended June 30, 1995
as compared to the six months ended June 30, 1994. As a
percentage of oil and gas sales, this expense remained
relatively constant at 27.5% for the six months ended June
30, 1995 compared to 26.6% for the six months ended June 30,
1994.
General and administrative expenses increased $4,775 for the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. The dollar increase resulted primarily
from an increase in the 1985-2 Program's professional fees
during the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994. As a percentage of oil and
gas sales, these expenses increased to 23.8% for the six
months ended June 30, 1995 from 10.4% for the six months
ended June 30, 1994. This percentage increase was primarily
due to the dollar increase in general and administrative
expenses as discussed above and the decreases in the volumes
of oil and gas sold and a decrease in the average price of
-17-
<PAGE>
<PAGE>
natural gas sold during the six months ended June 30, 1995
as compared to the six months ended June 30, 1994.
-18-
<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
-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 1985-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: August 14, 1995 By: /s/Dennis R. Neill
---------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: August 14, 1995 By: /s/Patrick M. Hall
(Signature)
--------------------------
Patrick M. Hall
Senior Vice President -
Controller
Principal Accounting Officer
-20-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000751255
<NAME> DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 82,268
<SECURITIES> 0
<RECEIVABLES> 80,671
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 162,939
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 402,159
<CURRENT-LIABILITIES> 8,082
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 384,020
<TOTAL-LIABILITY-AND-EQUITY> 402,159
<SALES> 232,649
<TOTAL-REVENUES> 233,846
<CGS> 0
<TOTAL-COSTS> 176,076
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 57,770
<INCOME-TAX> 0
<INCOME-CONTINUING> 57,770
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 57,770
<EPS-PRIMARY> 14.00
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000751256
<NAME> DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 32,255
<SECURITIES> 0
<RECEIVABLES> 40,545
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 88,145
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 145,893
<CURRENT-LIABILITIES> 8,163
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 246,911
<TOTAL-LIABILITY-AND-EQUITY> 255,074
<SALES> 130,607
<TOTAL-REVENUES> 130,666
<CGS> 0
<TOTAL-COSTS> 128,476
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,190
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,190
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,190
<EPS-PRIMARY> 1.00
<EPS-DILUTED> 0
</TABLE>
