<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, 1997 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 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
---- -----
<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,
1997 1996
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 66,225 $ 86,724
Accrued oil and gas sales 85,241 95,458
-------- --------
Total current assets $151,466 $182,182
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 156,112 177,707
DEFERRED CHARGE 15,519 15,519
-------- --------
$323,097 $375,408
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 5,987 $ 5,916
-------- --------
Total current liabilities $ 5,987 $ 5,916
ACCRUED LIABILITY 29,702 29,702
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 41 units 2,875 3,398
Limited Partners, issued and
outstanding, 4,100 units 284,533 336,392
-------- --------
Total Partners' capital $287,408 $339,790
-------- --------
$323,097 $375,408
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-2-
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<PAGE>
DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
-------- -------
REVENUES:
Oil and gas sales $149,957 $85,811
Interest 1,033 634
-------- -------
$150,990 $86,445
COST AND EXPENSES:
Oil and gas production $ 17,072 $26,757
Depreciation, depletion, and
amortization of oil and gas
properties 21,595 13,064
General and administrative (Note 2) 19,770 16,769
-------- -------
$ 58,437 $56,590
-------- -------
NET INCOME $ 92,553 $29,855
======== =======
GENERAL PARTNER (1%) - net
income $ 926 $ 299
======== =======
LIMITED PARTNERS (99%) - net
income $ 91,627 $29,556
======== =======
NET INCOME PER UNIT $ 22.35 $ 7.21
======== =======
UNITS OUTSTANDING 4,141 4,141
======== =======
The accompanying condensed notes are an
integral part of these financial statements.
-3-
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<PAGE>
DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 92,553 $29,855
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 21,595 13,064
Decrease in accrued oil and gas
sales 10,217 7,905
Increase (decrease) in accounts
payable 71 ( 3,920)
-------- -------
Net cash provided by operating
activities $124,436 $46,904
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ - $ 907
Additions to oil and gas properties - ( 1,586)
-------- -------
Net cash used by investing
activities $ - ($ 679)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($144,935) ($82,820)
-------- -------
Net cash used by financing
activities ($144,935) ($82,820)
-------- -------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 20,499) ($36,595)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 86,724 58,496
-------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 66,225 $21,901
======== =======
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,
1997 1996
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 11,977 $ 86,273
Accrued oil and gas sales 28,222 46,545
-------- --------
Total current assets $ 40,199 $132,818
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 68,034 72,216
DEFERRED CHARGE 39,527 39,527
-------- --------
$147,760 $244,561
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 4,437 $ 6,198
-------- --------
Total current liabilities $ 4,437 $ 6,198
ACCRUED LIABILITY 12,899 12,899
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 44 units 1,304 2,254
Limited Partners, issued and
outstanding, 4,330 units 129,120 223,210
-------- --------
Total Partners' capital $130,424 $225,464
-------- --------
$147,760 $244,561
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
------- -------
REVENUES:
Oil and gas sales $39,596 $45,624
Interest 851 1,125
------- -------
$40,447 $46,749
COST AND EXPENSES:
Oil and gas production $ 3,428 $21,585
Depreciation, depletion, and
amortization of oil and gas
properties 3,071 5,526
General and administrative (Note 2) 19,638 16,404
------- -------
$26,137 $43,515
------- -------
NET INCOME $14,310 $ 3,234
======= =======
GENERAL PARTNER (1%) - net
income $ 143 $ 32
======= =======
LIMITED PARTNERS (99%) - net
income $14,167 $ 3,202
======= =======
NET INCOME PER UNIT $ 3.27 $ .74
======= =======
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, 1997 AND 1996
(Unaudited)
1997 1996
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 14,310 $ 3,234
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 3,071 5,526
Decrease in accrued oil and gas
sales 18,323 10,374
Decrease in accounts payable ( 1,761) ( 3,284)
-------- --------
Net cash provided by operating
activities $ 33,943 $ 15,850
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 1,111 $ 12
Additions to oil and gas properties - ( 6,350)
-------- --------
Net cash provided (used) by
investing activities $ 1,111 ($ 6,338)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($109,350) ($153,090)
-------- --------
Net cash used by financing
activities ($109,350) ($153,090)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 74,296) ($143,578)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 86,273 154,512
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 11,977 $ 10,934
======== ========
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, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of March 31, 1997, statements of operations
for the three months ended March 31, 1997 and 1996, and
statements of cash flows for the three months ended March 31,
1997 and 1996 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, 1997, results of operations for the three months
ended March 31, 1997 and 1996 and changes in cash flows for the
three months ended March 31, 1997 and 1996 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, 1996. The results of operations for the
period ended March 31, 1997 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. The Program's calculation
of depreciation, depletion, and amortization includes estimated
future expenditures to be incurred in developing proved reserves
and estimated dismantlement and abandonment costs, net of
estimated salvage values. 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 and gas properties is calculated by dividing the oil and gas
sales dollars during the period 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
-8-
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<PAGE>
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, 1997 and 1996 the 1985-1 Program
incurred such expenses totaling $19,770 and $16,769,
respectively, of which $10,710 was paid each quarter to Dyco and
its affiliates. During the three months ended March 31, 1997 and
1996 the 1985-2 Program incurred such expenses totaling $19,638
and $16,404, respectively, of which $10,068 was paid each quarter
to Dyco and its affiliates.
Affiliates of the Program operate certain of the Programs'
properties. Their policy is to bill the Programs for all
customary charges and cost reimbursements associated with these
activities.
-9-
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<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking
statements. The words "anticipate," "believe," "expect," "plan,"
"intend," "estimate," "project," "could," "may," and similar
expressions are intended to identify forward-looking statements.
Such statements reflect management's current views with respect
to future events and financial performance. This Quarterly
Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions
are management's efforts to accurately reflect the condition and
operation of the Programs.
Use of forward-looking statements and estimates and assumptions
involve risks and uncertainties which include, but are not
limited to, the volatility of oil and gas prices, the uncertainty
of reserve information, the operating risk associated with oil
and gas properties (including the risk of personal injury, death,
property damage, damage to the well or producing reservoir,
environmental contamination, and other operating risks), the
prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the
general economic climate, the supply and price of foreign imports
of oil and gas, the level of consumer product demand, and the
price and availability of alternative fuels. Should one or more
of these risks or uncertainties occur or should estimates or
underlying assumptions prove incorrect, actual conditions or
results may vary materially and adversely from those stated,
anticipated, believed, estimated, or otherwise indicated.
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
- ---------------------
-10-
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<PAGE>
GENERAL DISCUSSION
The following general discussion should be read in conjunction
with the analysis of results of operations provided below. The
most important variable affecting the Programs' revenues is the
prices received for the sale of oil and gas. Predicting future
prices is very difficult. Substantially all of the Programs' gas
reserves are being sold in the "spot market". Prices on the spot
market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot
market. In addition, such spot market sales are generally short-
term in nature and are dependent upon the obtaining of
transportation services provided by pipelines. Management is
unable to predict whether future oil and gas prices will (i)
stabilize, (ii) increase, or (iii) decrease.
1985-1 PROGRAM
THREE MONTHS ENDED MARCH 31, 1997 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1996.
Three months ended March 31,
-----------------------------
1997 1996
-------- -------
Oil and gas sales $149,957 $85,811
Oil and gas production expenses $ 17,072 $26,757
Barrels produced - 52
Mcf produced 70,625 51,087
Average price/Bbl $ - $ 18.63
Average price/Mcf $ 2.12 $ 1.66
As shown in the table above, oil and gas sales increased $64,146
(74.8%) for the three months ended March 31, 1997 as compared to
the three months ended March 31, 1996. Of this increase,
approximately $32,000 was related to an increase in the average
price of gas sold and $32,000 was related to an increase in
volumes of gas sold. Volumes of oil sold decreased 52 barrels,
while volumes of gas sold increased 19,538 Mcf for the three
months ended March 31, 1997 as compared to the three months ended
March 31, 1996. The increase in volumes of gas sold resulted
primarily from positive prior period adjustments made by the
purchaser on several wells during the three months ended March
31, 1997. Average gas prices increased to $2.12 per Mcf for the
three months ended March 31, 1997 from $1.66 per Mcf for the
three months ended March 31, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $9,685 (36.2%) for the
three months ended March 31, 1997 as compared to the three months
ended March 31, 1996. This decrease resulted primarily from
credits received from the operators on two wells during the three
months ended March 31, 1997 for prior period lease operating
expenses, partially offset by an increase in production taxes
associated with the increase in gas sales discussed above. As a
percentage of oil and gas sales, these expenses decreased to
11.4% for the three months ended March 31, 1997 from 31.2% for
the three months ended March 31, 1996. This percentage decrease
was primarily due to the dollar decrease in production expenses
discussed above and increase in the average price of gas sold
during the three months ended March 31, 1997 as compared to the
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<PAGE>
three months ended March 31, 1996.
Depreciation, depletion, and amortization of oil and gas
properties increased $8,531 (65.3%) for the three months ended
March 31, 1997 as compared to the three months ended March 31,
1996. This increase resulted primarily from (i) the increase in
volumes of gas sold during the three months ended March 31, 1997
as compared to the three months ended March 31, 1996 and (ii) a
decrease in the gas price used in the valuation of reserves at
March 31, 1997. As a percentage of oil and gas sales, this
expense decreased to 14.4% for the three months ended March 31,
1997 from 15.2% for the three months ended March 31, 1996. This
percentage decrease was primarily due to the increase in the
average price of gas sold during the three months ended March 31,
1997 as compared to the three months ended March 31, 1996.
General and administrative expenses increased $3,001 (17.9%) for
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996. This increase resulted primarily
from an increase in professional fees during the three months
ended March 31, 1997 as compared to the three months ended March
31, 1996. As a percentage of oil and gas sales, these expenses
decreased to 13.5% for the three months ended March 31, 1997 from
19.5% for the three months ended March 31, 1996. This percentage
decrease was primarily due to the increase in gas sales discussed
above.
1985-2 PROGRAM
THREE MONTHS ENDED MARCH 31, 1997 AS COMPARED TO THE THREE MONTHS
ENDED MARCH 31, 1996.
Three months ended March 31,
----------------------------
1997 1996
------- -------
Oil and gas sales $39,596 $45,624
Oil and gas production expenses $ 3,428 $21,585
Barrels produced 141 1,088
Mcf produced 17,200 17,237
Average price/Bbl $ 19.57 $ 17.75
Average price/Mcf $ 2.14 $ 1.53
As shown in the table above, oil and gas sales decreased $6,028
(13.2%) for the three months ended March 31, 1997 as compared to
the three months ended March 31, 1996. Of this decrease,
approximately $17,000 was related to the decrease in volumes of
oil sold, partially offset by an increase of approximately
$10,000 related to the increase in the average price of gas sold.
-12-
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<PAGE>
Volumes of oil and gas sold decreased 947 barrels and 37 Mcf,
respectively, for the three months ended March 31, 1997 as
compared to the three months ended March 31, 1996. The decrease
in volumes of oil sold resulted primarily from (i) a negative
prior period adjustment made by the purchaser on one well during
the three months ended March 31, 1997 and (ii) normal declines in
production from diminished oil reserves on two wells. Average
oil and gas prices increased to $19.57 per barrel and $2.14 per
Mcf, respectively, for the three months ended March 31, 1997 from
$17.75 per barrel and $1.53 per Mcf, respectively, for the three
months ended March 31, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $18,157 (84.1%) for the
three months ended March 31, 1997 as compared to the three months
ended March 31, 1996. This decrease resulted primarily from (i)
credits received from the operator on one well during the three
months ended March 31, 1997 for prior period lease operating
expenses, (ii) a decrease in production taxes associated with the
decrease in oil and gas sales discussed above, and (iii) a
decrease in the general repair and maintenance expenses incurred
on one well during the three months ended March 31, 1997 as
compared to the three months ended March 31, 1996. As a
percentage of oil and gas sales, these expenses decreased to 8.7%
for the three months ended March 31, 1997 from 47.3% for the
three months ended March 31, 1996. This percentage decrease was
primarily due to the dollar decrease in production expenses
discussed above and increases in the average prices of oil and
gas sold during the three months ended March 31, 1997 as compared
to the three months ended March 31, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $2,455 (44.4%) for the three months ended
March 31, 1997 as compared to the three months ended March 31,
1996. This decrease resulted primarily from (i) a decrease in
volumes of oil sold and (ii) upward revisions of previous oil and
gas reserve estimates at December 31, 1996. As a percentage of
oil and gas sales, this expense decreased to 7.8% for the three
months ended March 31, 1997 from 12.1% for the three months ended
March 31, 1996. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold during
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996.
General and administrative expenses increased $3,234 (19.7%) for
the three months ended March 31, 1997 as compared to the three
months ended March 31, 1996. This increase resulted primarily
from the increase in professional fees during the three months
ended March 31, 1997 as compared to the three months ended March
31, 1996. As a percentage of oil and gas sales, these expenses
increased to 49.6% for the three months ended March 31, 1997 from
36.0% for the three months ended March 31, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
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<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,
1997 and for the three months ended March 31,
1997, filed herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the 1985-2
Program's financial statements as of March 31,
1997 and for the three months ended March 31,
1997, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K for the first quarter of 1997.
Date of Event: January 24, 1997
Date filed with SEC: January 24, 1997
Item Included:
Item 5 - Other Events
-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 6, 1997 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: May 6, 1997 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
-15-
<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 6, 1997 By:
-------------------------------
(Signature)
Dennis R. Neill
President
Date: May 6, 1997 By:
-------------------------------
(Signature)
Patrick M. Hall
Chief Financial 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, 1997 and for the three months ended March 31,
1997, 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, 1997 and for the three months ended March 31,
1997, filed herewith.
All other exhibits are omitted as inapplicable.
<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-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 66,225
<SECURITIES> 0
<RECEIVABLES> 85,241
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 151,466
<PP&E> 20,981,357
<DEPRECIATION> 20,825,245
<TOTAL-ASSETS> 323,097
<CURRENT-LIABILITIES> 5,987
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 287,408
<TOTAL-LIABILITY-AND-EQUITY> 323,097
<SALES> 149,957
<TOTAL-REVENUES> 150,990
<CGS> 0
<TOTAL-COSTS> 58,437
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 92,553
<INCOME-TAX> 0
<INCOME-CONTINUING> 92,553
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 92,553
<EPS-PRIMARY> 22.35
<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-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 11,977
<SECURITIES> 0
<RECEIVABLES> 28,222
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 40,199
<PP&E> 22,442,344
<DEPRECIATION> 22,374,310
<TOTAL-ASSETS> 147,760
<CURRENT-LIABILITIES> 4,437
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 130,424
<TOTAL-LIABILITY-AND-EQUITY> 147,760
<SALES> 39,596
<TOTAL-REVENUES> 40,447
<CGS> 0
<TOTAL-COSTS> 26,137
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 14,310
<INCOME-TAX> 0
<INCOME-CONTINUING> 14,310
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,310
<EPS-PRIMARY> 3.27
<EPS-DILUTED> 0
</TABLE>
