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, 2000 2-92702 (1985-1)
2-92702-01 (1985-2)
DYCO 1985 OIL AND GAS PROGRAM
(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
------ ------
-1-
<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,
2000 1999
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 20,663 $ 68,872
Accrued oil and gas sales 55,722 55,595
-------- --------
Total current assets $ 76,385 $124,467
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 93,372 98,289
DEFERRED CHARGE 9,627 9,627
-------- --------
$179,384 $232,383
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 5,887 $ 5,053
Payable to General Partner (Note 2) 2,000 -
-------- --------
Total current liabilities $ 7,887 $ 5,053
ACCRUED LIABILITY $ 33,938 $ 33,938
PARTNERS' CAPITAL:
General Partner, 41 general
partner units $ 1,376 $ 1,934
Limited Partners, issued and
outstanding, 4,100 Units 136,183 191,458
-------- --------
Total Partners' capital $137,559 $193,392
-------- --------
$179,384 $232,383
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-2-
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
2000 1999
-------- --------
REVENUES:
Oil and gas sales $93,479 $52,963
Interest 1,032 433
------- -------
$94,511 $53,396
COSTS AND EXPENSES:
Oil and gas production $24,856 $18,155
Depreciation, depletion, and
amortization of oil and gas
properties 4,917 5,689
General and administrative
(Note 2) 17,046 18,140
------- -------
$46,819 $41,984
------- -------
NET INCOME $47,692 $11,412
======= =======
GENERAL PARTNER (1%) - net income $ 477 $ 114
======= =======
LIMITED PARTNERS (99%) - net income $47,215 $11,298
======= =======
NET INCOME PER UNIT $ 11.52 $ 2.76
======= =======
UNITS OUTSTANDING 4,141 4,141
======= =======
The accompanying condensed notes are an integral part of
these financial statements.
-3-
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
2000 1999
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 47,692 $11,412
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 4,917 5,689
(Increase) decrease in accrued
oil and gas sales ( 127) 6,761
Increase in payable to General
Partner 2,000 -
Increase (decrease) in accounts
payable 834 ( 1,375)
-------- -------
Net cash provided by operating
activities $ 55,316 $22,487
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash provided by investing
activities $ - $ -
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($103,525) $ -
-------- -------
Net cash used by financing
activities ($103,525) $ -
-------- -------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 48,209) $22,487
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 68,872 31,245
-------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 20,663 $53,732
======== =======
The accompanying condensed notes are an integral part of
these financial statements.
-4-
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2000 1999
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $24,173 $ 40,962
Accrued oil and gas sales 23,931 82,496
------- --------
Total current assets $48,104 $123,458
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 32,170 33,173
DEFERRED CHARGE 16,256 16,256
------- --------
$96,530 $172,887
======= ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 4,147 $ 4,647
Payable to General Partner (Note 2) 2,000 -
------- --------
Total current liabilities $ 6,147 $ 4,647
ACCRUED LIABILITY $ 3,227 $ 3,227
PARTNERS' CAPITAL:
General Partner, 44 general
partner units $ 871 $ 1,650
Limited Partners, issued and
outstanding, 4,330 Units 86,285 163,363
------- --------
Total Partners' capital $87,156 $165,013
------- --------
$96,530 $172,887
======= ========
The accompanying condensed notes are an integral part of
these financial statements.
-5-
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
2000 1999
------- -------
REVENUES:
Oil and gas sales $36,102 $24,917
Interest 712 230
------- -------
$36,814 $25,147
COSTS AND EXPENSES:
Oil and gas production $12,608 $18,561
Depreciation, depletion, and
amortization of oil and gas
properties 1,003 2,008
General and administrative
(Note 2) 13,580 17,677
------- -------
$27,191 $38,246
------- -------
NET INCOME (LOSS) $ 9,623 ($13,099)
======= =======
GENERAL PARTNER (1%) - net
income (loss) $ 96 ($ 131)
======= =======
LIMITED PARTNERS (99%) - net
income (loss) $ 9,527 ($12,968)
======= =======
NET INCOME (LOSS) PER UNIT $ 2.20 ($ 2.99)
======= =======
UNITS OUTSTANDING 4,374 4,374
======= =======
The accompanying condensed notes are an integral part of
these financial statements.
-6-
<PAGE>
DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(Unaudited)
2000 1999
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 9,623 ($13,099)
Adjustments to reconcile net income
(loss) to net cash provided (used)
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 1,003 2,008
(Increase) decrease in accrued oil
and gas sales 58,565 ( 2,369)
Increase (decrease) in accounts
payable ( 500) 977
Increase in payable to General
Partner 2,000 -
------- -------
Net cash provided (used) by
operating activities $70,691 ($12,483)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash provided by investing
activities $ - $ -
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($87,480) $ -
------- -------
Net cash used by financing
activities ($87,480) $ -
------- -------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($16,789) ($12,483)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 40,962 26,412
------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $24,173 $13,929
======= =======
The accompanying condensed notes are an integral part of
these financial statements.
-7-
<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, 2000
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of March 31, 2000, statements of operations for the
three months ended March 31, 2000 and 1999, and statements of cash flows
for the three months ended March 31, 2000 and 1999 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, 2000,
results of operations for the three months ended March 31, 2000 and 1999,
and changes in cash flows for the three months ended March 31, 2000 and
1999 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, 1999. The results of operations for the period
ended March 31, 2000 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 Programs' 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
-8-
<PAGE>
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 have been capitalized, plus estimated future
development costs.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each Program's partnership agreement, Dyco is entitled
to receive a reimbursement for all direct expenses and general and
administrative, geological and engineering expenses it incurs on behalf of
the Program. During the three months ended March 31, 2000 and 1999 the
1985-1 Program incurred such expenses totaling $17,046 and $18,140,
respectively, of which $8,661 and $10,710, respectively, were paid each
period to Dyco and its affiliates. During the three months ended March 31,
2000 and 1999 the 1985-2 Program incurred such expenses totaling $13,580
and $17,677, respectively, of which $5,142 and $10,068, respectively, were
paid each period to Dyco and its affiliates.
Affiliates of the Programs operate certain of the Programs' properties.
Their policy is to bill the Programs for all customary charges and cost
reimbursements associated with these activities.
The payables to General Partner at March 31, 2000 represent audit fees by
the General Partner on behalf of the Programs. These amounts were
reimbursed to the General Partner in April 2000.
-9-
<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, and 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.
-10-
<PAGE>
The Programs' available capital from subscriptions has been spent on oil
and gas drilling activities. There should be no further material capital
resource commitments in the future. The Programs have no debt commitments.
Management believes that cash for ordinary operational purposes will be
provided by current oil and gas production.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below. The most important
variables affecting the Programs' revenues are the prices received for the
sale of oil and gas and the volumes of oil and gas produced. The Program's
production is mainly natural gas, so such pricing and volumes are the most
significant factors.
Due to the volatility of oil and gas prices, forecasting future prices is
subject to great uncertainty and inaccuracy. Substantially all of the
Programs' gas reserves are being sold on 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. Such spot market
sales are generally short-term in nature and are dependent upon the
obtaining of transportation services provided by pipelines. It is likewise
difficult to predict production volumes. However, oil and gas are
depleting assets, so it can be expected that production levels will
decline over time. Recent gas prices have been higher than the Program's
historical average. This is attributable to the higher prices for crude
oil, a substitute fuel in some markets, and reduced production due to low
prices in 1998.
-11-
<PAGE>
1985-1 PROGRAM
THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 1999.
Three Months Ended March 31,
----------------------------
2000 1999
------- -------
Oil and gas sales $93,479 $52,963
Oil and gas production expenses $24,856 $18,155
Barrels produced 25 51
Mcf produced 39,935 33,939
Average price/Bbl $ 28.76 $ 10.73
Average price/Mcf $ 2.32 $ 1.54
As shown in the table above, total oil and gas sales increased $40,516
(76.5%) for the three months ended March 31, 2000 as compared to the three
months ended March 31, 1999. Of this increase, approximately $31,000 was
related to an increase in the average price of gas sold and approximately
$9,000 was related to an increase in the volumes of gas sold. Volumes of
oil sold decreased 26 barrels, while volumes of gas sold increased 5,996
Mcf for the three months ended March 31, 2000 as compared to the three
months ended March 31, 1999. The increase in the volumes of gas sold was
primarily due to (i) the 1985-1 Program receiving a reduced percentage of
sales on one well during the three months ended March 31, 1999 due to its
overproduced gas balancing position in that well and (ii) a negative prior
period volume adjustment made by the operator on another well during the
three months ended March 31, 1999. Average oil and gas prices increased to
$28.76 per barrel and $2.32 per Mcf, respectively, for the three months
ended March 31, 2000 from $10.73 per barrel and $1.54 per Mcf,
respectively, for the three months ended March 31, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $6,701 (36.9%) for the three months ended
March 31, 2000 as compared to the three months ended March 31, 1999. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales, (ii) workover expenses
incurred on one well during the three months ended March 31, 2000 in order
to improve the recovery of reserves, and (iii) a positive prior period
lease operating expense adjustment made by the operator on one well during
the three months ended March 31, 2000. As a percentage of oil and gas
sales, these expenses decreased to 26.6% for the three months ended March
31, 2000 from 34.3% for the three months ended March 31, 1999. This
percentage
-12-
<PAGE>
decrease was primarily due to the increases in the average prices of
oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $772 (13.6%) for the three months ended March 31, 2000 as
compared to the three months ended March 31, 1999. This decrease was
primarily due to an upward revision in the estimate of remaining gas
reserves at December 31, 1999. This decrease was partially offset by an
increase in volumes of gas sold. As a percentage of oil and gas sales,
this expense decreased to 5.3% for the three months ended March 31, 2000
from 10.7% for the three months ended March 31, 1999. This percentage
decrease was primarily due to the increases in the average prices of oil
and gas sold.
General and administrative expenses decreased $1,094 (6.0%) for the three
months ended March 31, 2000 as compared to the three months ended March
31, 1999. As a percentage of oil and gas sales, these expenses decreased
to 18.2% for the three months ended March 31, 2000 from 34.3% for the
three months ended March 31, 1999. This percentage decrease was primarily
due to the increase in oil and gas sales.
1985-2 PROGRAM
THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 1999.
Three Months Ended March 31,
----------------------------
2000 1999
------- -------
Oil and gas sales $36,102 $24,917
Oil and gas production expenses $12,608 $18,561
Barrels produced 485 568
Mcf produced 9,935 11,551
Average price/Bbl $ 26.95 $ 10.76
Average price/Mcf $ 2.32 $ 1.63
As shown in the table above, total oil and gas sales increased $11,185
(44.9%) for the three months ended March 31, 2000 as compared to the three
months ended March 31, 1999. Of this increase, approximately $8,000 and
$7,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by a decrease of
approximately $3,000 related to a decrease in volumes of gas sold. Volumes
of oil and gas sold decreased 83 barrels and 1,616 Mcf, respectively, for
the three months ended March 31, 2000 as compared to the three months
ended March 31, 1999. The decrease in volumes of gas sold was primarily
due to the 1985-2 Program receiving a reduced percentage of sales on one
well during the three months ended March 31, 2000. Average oil and gas
-13-
<PAGE>
prices increased to $26.95 per barrel and $2.32 per Mcf, respectively, for
the three months ended March 31, 2000 from $10.76 per barrel and $1.63 per
Mcf, respectively, for the three months ended March 31, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $5,953 (32.1%) for the three months ended
March 31, 2000 as compared to the three months ended March 31, 1999. This
decrease was primarily due to a decrease in repair and maintenance
expenses and compression expenses on one well during the three months
ended March 31, 2000 as compared to the three months ended March 31, 1999.
As a percentage of oil and gas sales, these expenses decreased to 34.9%
for the three months ended March 31, 2000 from 74.5% for the three months
ended March 31, 1999. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold and the dollar
decrease in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $1,005 (50.0%) for the three months ended March 31, 2000 as
compared to the three months ended March 31, 1999. This decrease was
primarily due to (i) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1999 and (ii) an increase in the gas
price used in the valuation of reserves at March 31, 2000 as compared to
March 31, 1999. As a percentage of oil and gas sales, this expense
decreased to 2.8% for the three months ended March 31, 2000 from 8.1% for
the three months ended March 31, 1999. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold
and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses decreased $4,097 (23.2%) for the three
months ended March 31, 2000 as compared to the three months ended March
31, 1999. This decrease was primarily due to a decrease in indirect
general and administrative expenses reimbursed to the General Partner. As
a percentage of oil and gas sales, these expenses decreased to 37.6% for
the three months ended March 31, 2000 from 70.9% for the three months
ended March 31, 1999. This percentage decrease was primarily due to the
increase in oil and gas sales.
-14-
<PAGE>
YEAR 2000 COMPUTER ISSUES
- -------------------------
The year 2000 issue refers to the inability of computer and other
information technology systems to properly process date and time
information, stemming from the earlier programming practice of using two
digits rather than four to represent the year in a date. To the knowledge
of the General Partner, the Programs have not experienced any material
effects from the year 2000 issue. Costs incurred by the Programs in order
to ensure year 2000 compatibility were not material to the Programs.
-15-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Programs do not hold any market risk sensitive instruments.
-16-
<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, 2000 and for the three months
ended March 31, 2000, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the 1985-2 Program's financial
statements as of March 31, 2000 and for the three months
ended March 31, 2000, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
-17-
<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 2, 2000 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: May 2, 2000 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
-------------------------------
-18-
<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, 2000 and for the
three months ended March 31, 2000, 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, 2000 and for the
three months ended March 31, 2000, filed herewith.
All other exhibits are omitted as inapplicable.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000751255
<NAME> DYCO OIL AND GAS 85-1 PROGRAM
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 20,663
<SECURITIES> 0
<RECEIVABLES> 55,722
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 76,385
<PP&E> 20,981,447
<DEPRECIATION> 20,888,075
<TOTAL-ASSETS> 179,384
<CURRENT-LIABILITIES> 7,887
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 137,559
<TOTAL-LIABILITY-AND-EQUITY> 179,384
<SALES> 93,479
<TOTAL-REVENUES> 94,511
<CGS> 0
<TOTAL-COSTS> 46,819
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 47,692
<INCOME-TAX> 0
<INCOME-CONTINUING> 47,692
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 47,692
<EPS-BASIC> 11.52
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000751256
<NAME> DYCO OIL AND GAS 1985-2 PROGRAM
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 24,173
<SECURITIES> 0
<RECEIVABLES> 23,931
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 48,104
<PP&E> 22,431,141
<DEPRECIATION> 22,398,971
<TOTAL-ASSETS> 96,530
<CURRENT-LIABILITIES> 6,147
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 87,156
<TOTAL-LIABILITY-AND-EQUITY> 96,530
<SALES> 36,102
<TOTAL-REVENUES> 36,814
<CGS> 0
<TOTAL-COSTS> 27,191
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 9,623
<INCOME-TAX> 0
<INCOME-CONTINUING> 9,623
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,623
<EPS-BASIC> 2.20
<EPS-DILUTED> 0
</TABLE>
