<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
March 31, 1996 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
March 31, December 31,
1996 1995
---------- -------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 21,901 $ 58,496
Accrued oil and gas sales, including
$28,938 due from related parties
in 1995 (Note 2) . . . . . . . . . . 54,317 62,222
-------- --------
Total current assets . . . . . . . $ 76,218 $120,718
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 191,385 203,770
DEFERRED CHARGE . . . . . . . . . . . . . 4,741 4,741
-------- --------
$272,344 $329,229
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 6,033 $ 9,953
-------- --------
Total current liabilities . . . . . $ 6,033 $ 9,953
ACCRUED LIABILITY . . . . . . . . . . . . $ 28,432 $ 28,432
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
41 units . . . . . . . . . . . . . . $ 2,379 $ 2,908
Limited Partners, issued and outstanding,
4,100 units . . . . . . . . . . . . 235,500 287,936
-------- --------
Total Partners' capital . . . . . . $237,879 $290,844
-------- --------
$272,344 $329,229
======== ========
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 MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- ----------
REVENUES:
Oil and gas sales, including
$59,708 of sales to related
parties in 1995 (Note 2) . . . . . . $85,811 $110,161
Interest . . . . . . . . . . . . . . . 634 477
------- --------
$86,445 $110,638
------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $26,757 $ 43,330
Depreciation, depletion, and amortization of
oil and gas properties . . . . . . . 13,064 30,915
General and administrative (Note 2) . 16,769 16,385
------- --------
$56,590 $ 90,630
------- --------
NET INCOME . . . . . . . . . . . . . . . $29,855 $ 20,008
======= ========
GENERAL PARTNER (1%) - net income . . . . $ 299 $ 200
======= ========
LIMITED PARTNERS (99%) - net income . . $29,556 $ 19,808
======= ========
NET INCOME PER UNIT . . . . . . . . . . . $ 7 $ 5
======= ========
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 CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . $29,855 $20,008
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 13,064 30,915
(Increase) decrease in accrued oil and
gas sales . . . . . . . . . . . . . 7,905 ( 15,965)
Increase (decrease) in accounts payable ( 3,920) 1,090
------- -------
Net cash provided by operating
activities . . . . . . . . . . . . $46,904 $36,048
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($ 1,586) ($15,602)
Retirements of oil and gas properties 907 -
------- -------
Net cash used by investing
activities . . . . . . . . . . . . ($ 679) ($15,602)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . ($82,820) $ -
------- -------
Net cash used by financing activities ($82,820) $ -
------- -------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . ($36,595) $20,446
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . . 58,496 39,697
------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $21,901 $60,143
======= =======
The accompanying condensed notes are an
integral part of these financial statements.
-4-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1996 1995
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 10,934 $154,512
Accrued oil and gas sales, including
$12,336 due from related parties
in 1995 (Note 2) . . . . . . . . . . 31,115 41,489
-------- --------
Total current assets . . . . . . . $ 42,049 $196,001
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 82,872 82,060
DEFERRED CHARGE . . . . . . . . . . . . . 28,337 28,337
-------- --------
$153,258 $306,398
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 5,741 $ 9,025
-------- --------
Total current liabilities . . . . . $ 5,741 $ 9,025
ACCRUED LIABILITY . . . . . . . . . . . . $ 10,114 $ 10,114
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
44 units . . . . . . . . . . . . . . $ 1,373 $ 2,872
Limited Partners, issued and outstanding,
4,330 units . . . . . . . . . . . . 136,030 284,387
-------- --------
Total Partners' capital . . . . . . $137,403 $287,259
-------- --------
$153,258 $306,398
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-5-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
REVENUES:
Oil and gas sales, including
$16,777 of sales to related
parties in 1995 (Note 2) . . . . . . $45,624 $67,756
Interest . . . . . . . . . . . . . . . 1,125 10
------- -------
$46,749 $67,766
------- -------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $21,585 $33,588
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 5,526 19,025
General and administrative (Note 2) . 16,404 16,445
------- -------
$43,515 $69,058
------- -------
NET INCOME (LOSS) . . . . . . . . . . . $ 3,234 ($ 1,292)
======= =======
GENERAL PARTNER (1%) - net income (loss) $ 32 ($ 13)
======= =======
LIMITED PARTNERS (99%) - net income (loss) $ 3,202 ($ 1,279)
======= =======
NET INCOME (LOSS) PER UNIT . . . . . . . $ 1 $ -
======= =======
UNITS OUTSTANDING . . . . . . . . . . . . 4,374 4,374
======= =======
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 CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) . . . . . . . . . . $ 3,234 ($ 1,292)
Adjustments to reconcile net income
(loss) to net cash provided by operating
activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 5,526 19,025
(Increase) decrease in accrued oil and
gas sales . . . . . . . . . . . . . 10,374 ( 8,485)
Decrease in deferred charge . . . . - 1,596
Decrease in accounts payable . . . . ( 3,284) ( 131)
-------- -------
Net cash provided by operating
activities . . . . . . . . . . . . $ 15,850 $10,713
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($ 6,350) $ -
Retirements of oil and gas properties 12 -
-------- -------
Net cash used by investing activities ($ 6,338) $ -
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . ($153,090) $ -
-------- -------
Net cash used by financing
activities: . . . . . . . . . . . . ($153,090) $ -
-------- -------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . ($143,578) $10,713
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . . 154,512 5,733
-------- -------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . . $ 10,934 $16,446
======== =======
The accompanying condensed notes are an
integral part of these financial statements.
-7-
<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
MARCH 31, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of March 31, 1996, statements of operations
for the three months ended March 31, 1996 and 1995, and statements
of cash flows for the three months ended March 31, 1996 and 1995
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 March 31,
1996, results of operations for the three months ended March 31,
1996 and 1995 and changes in cash flows for the three months ended
March 31, 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 March 31,
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. 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
-8-
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<PAGE>
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.
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 three months ended
March 31, 1996 and 1995 the 1985-1 Program incurred such expenses
totaling $16,769 and $16,385, respectively, of which $10,710 and
$10,710 were paid to Dyco. During the three months ended March 31,
1996 and 1995 the 1985-2 Program incurred such expenses totaling
$16,404 and $16,445, respectively, of which $10,068 and $10,068
were paid to Dyco.
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 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 March 31, 1995
these sales for the 1985-1 Program totaled $59,708. At December
31, 1995, accrued oil and gas sales for the 1985-1 Program included
$28,938 due from Premier. During the three months ended March 31,
1995 these sales for the 1985-2 Program totaled $16,777. At
December 31, 1995, accrued oil and gas sales for the 1985-2 Program
included $12,336 due from Premier.
-9-
<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. 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
- ---------------------
1985-1 PROGRAM
THREE MONTHS ENDED MARCH 31, 1996 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1995.
Three months ended March 31,
--------------------------------
1996 1995
---- ----
Oil and gas sales $85,811 $110,161
Oil and gas production
expenses $26,757 $ 43,330
Barrels produced 52 2,179
Mcf produced 51,087 51,535
Average price/Bbl $ 18.63 $ 18.65
Average price/Mcf $ 1.66 $ 1.35
As shown in the table above, oil and gas sales decreased 22.1%
for the three months ended March 31, 1996 as compared to the
three months ended March 31, 1995. This decrease was primarily
due to a decrease in volumes of oil sold, partially offset by an
increase in the average price of natural gas sold during the
three months ended March 31, 1996 as compared to the three months
ended March 31, 1995. Volumes of oil and natural gas sold
-10-
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<PAGE>
decreased 2,127 barrels and 448 Mcf, respectively, for the three
months ended March 31, 1996 as compared to the three months ended
March 31, 1995. The decrease in volumes of oil sold was
primarily due to the sale of two of the 1985-1 Program's
significant oil producing wells. Average oil prices decreased
slightly to $18.63 per barrel for the three months ended March
31, 1996 from $18.65 per barrel for the three months ended March
31, 1995, while average natural gas prices increased to $1.66 per
Mcf for the three months ended March 31, 1996 from $1.35 per Mcf
for the three months ended March 31, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $16,573 for the three
months ended March 31, 1996 as compared to the three months ended
March 31, 1995. This decrease was primarily due to the decrease
in the volumes of oil sold during the three months ended March
31, 1996 as compared to the three months ended March 31, 1995.
As a percentage of oil and gas sales, these expenses decreased to
31.2% for the three months ended March 31, 1996 from 39.3% for
the three months ended March 31, 1995. This percentage decrease
was primarily due to the increase in the average price of natural
gas sold during the three months ended March 31, 1996 as compared
to the three months ended March 31, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $17,851 for the three months ended March 31,
1996 as compared to the three months ended March 31, 1995. This
decrease was primarily due to (i) a valuation allowance for oil
and gas properties recorded during 1995 which decreased the
amortizable capitalized costs of the oil and gas properties, (ii)
upward revisions of the 1985-1 Program's previous reserve
estimates at December 31, 1995, and (iii) the decrease in volumes
of oil sold during the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995. As a
percentage of oil and gas sales, this expense decreased to 15.2%
for the three months ended March 31, 1996 from 28.1% for the
three months ended March 31, 1995. This percentage decrease was
primarily due to the dollar decrease in depreciation, depletion,
and amortization of oil and gas properties and the increase in
the average price of natural gas sold during the three months
ended March 31, 1996 as compared to the three months ended March
31, 1995.
General and administrative expenses remained relatively constant
for the three months ended March 31, 1996 as compared to the
three months ended March 31, 1995. As a percentage of oil and
gas sales, these expenses increased to 19.5% for the three months
ended March 31, 1996 from 14.9% for the three months ended March
31, 1995. This percentage increase was primarily due to the
decrease in oil and gas sales during the three months ended March
31, 1996 as compared to the three months ended March 31, 1995.
-11-
<PAGE>
<PAGE>
1985-2 PROGRAM
THREE MONTHS ENDED MARCH 31, 1996 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1995.
Three months ended March 31,
--------------------------------
1996 1995
---- ----
Oil and gas sales $45,624 $67,756
Oil and gas production
expenses $21,585 $33,588
Barrels produced 1,088 2,430
Mcf produced 17,237 20,197
Average price/Bbl $ 17.75 $ 17.35
Average price/Mcf $ 1.53 $ 1.27
As shown in the table above, oil and gas sales decreased 32.7%
for the three months ended March 31, 1996 as compared to the
three months ended March 31, 1995. This decrease was primarily
due to decreases in the volumes of oil and natural gas sold,
partially offset by an increase in the average price of natural
gas sold during the three months ended March 31, 1996 as compared
to the three months ended March 31, 1995. Volumes of oil and
natural gas sold decreased 1,342 barrels and 2,960 Mcf,
respectively, for the three months ended March 31, 1996 as
compared to the three months ended March 31, 1995. The decrease
in volumes of oil sold was primarily due to the sale of several
of the 1985-2 Program's wells. The decrease in volumes of
natural gas sold was primarily due to downward prior period
volume adjustments during the three months ended March 31, 1996.
Average oil and natural gas prices increased to $17.75 per barrel
and $1.53 per Mcf for the three months ended March 31, 1996 from
$17.35 per barrel and $1.27 per Mcf for the three months ended
March 31, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $12,003 for the three
months ended March 31, 1996 as compared to the three months ended
March 31, 1995. This decrease was primarily due to the decrease
in the volumes of oil and natural gas sold during the three
months ended March 31, 1996 as compared to the three months ended
March 31, 1995. As a percentage of oil and gas sales, these
expenses decreased to 47.3% for the three months ended March 31,
1996 from 49.6% for the three months ended March 31, 1995. This
percentage decrease was primarily due to the increase in the
average price of natural gas sold during the three months ended
March 31, 1996 as compared to the three months ended March 31,
1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $13,499 for the three months ended March 31,
1996 as compared to the three months ended March 31, 1995. This
decrease was primarily due to upward revisions of previous
reserve estimates at December 31, 1995 and the decrease in the
-12-
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<PAGE>
volumes of oil and natural gas sold during the three months ended
March 31, 1996 as compared to the three months ended March 31,
1995. As a percentage of oil and gas sales, this expense
decreased to 12.1% for the three months ended March 31, 1996 from
28.1% for the three months ended March 31, 1995. This percentage
decrease was primarily due to the increase in the average price
of natural gas sold during the three months ended March 31, 1996
as compared to the three months ended March 31, 1995.
General and administrative expenses remained relatively constant
for the three months ended March 31, 1996 as compared to the
three months ended March 31, 1995. As a percentage of oil and
gas sales, these expenses increased to 36.0% for the three months
ended March 31, 1996 from 24.3% for the three months ended March
31, 1995. This percentage increase was primarily due to the
decrease in oil and gas sales during the three months ended March
31, 1996 as compared to the three months ended March 31, 1995.
-13-
<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 1985-1
Program's financial statements as of March 31,
1996 and for the three months ended March 31,
1996, filed herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the 1985-2
Program's financial statements as of March 31,
1996 and for the three months ended March 31,
1996, filed herewith.
(b) Reports on Form 8-K
None
-14-
<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: May 9, 1996 By: /s/Dennis R. Neill
-------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: May 9, 1996 By: /s/Patrick M. Hall
--------------------------
(Signature)
Patrick M. Hall
Senior Vice President - Controller
Principal Accounting Officer
-15-
<PAGE>
<PAGE>
INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1985-1 Limited Partnership's financial statements as of
March 31, 1996 and for the three months ended March 31,
1996, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1985-2 Limited Partnership's financial statements as of
March 31, 1996 and for the three months ended March 31,
1996, filed herewith.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000751255
<NAME> DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 21,901
<SECURITIES> 0
<RECEIVABLES> 54,317
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 76,218
<PP&E> 20,980,730
<DEPRECIATION> 20,789,345
<TOTAL-ASSETS> 272,344
<CURRENT-LIABILITIES> 6,033
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 237,879
<TOTAL-LIABILITY-AND-EQUITY> 272,344
<SALES> 85,811
<TOTAL-REVENUES> 86,445
<CGS> 0
<TOTAL-COSTS> 56,590
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 29,855
<INCOME-TAX> 0
<INCOME-CONTINUING> 29,855
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29,855
<EPS-PRIMARY> 7.00
<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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 10,934
<SECURITIES> 0
<RECEIVABLES> 31,115
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 42,049
<PP&E> 22,449,726
<DEPRECIATION> 22,366,854
<TOTAL-ASSETS> 153,258
<CURRENT-LIABILITIES> 5,741
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 137,403
<TOTAL-LIABILITY-AND-EQUITY> 153,258
<SALES> 45,624
<TOTAL-REVENUES> 46,749
<CGS> 0
<TOTAL-COSTS> 43,515
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,234
<INCOME-TAX> 0
<INCOME-CONTINUING> 3,234
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,234
<EPS-PRIMARY> 1.00
<EPS-DILUTED> 0
</TABLE>
