<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 2-62275-03 (1979-1)
2-62275-04 (1979-2)
DYCO 1979 OIL AND GAS PROGRAMS
(TWO LIMITED PARTNERSHIPS)
(Exact Name of Registrant as specified in its charter)
41-1358013 (1979-1)
Minnesota 41-1358015 (1979-2)
(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
---- ---
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1979-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1995 1994
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 20,886 $ 83,662
Accounts receivable - Related party . - 13,447
Accrued oil and gas sales, including
$49,672 and $44,294 due from
related parties (Note 2) . . . . . . 57,375 45,523
-------- --------
Total current assets . . . . . . . $ 78,261 $142,632
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 228,420 266,548
DEFERRED CHARGE . . . . . . . . . . . . . 74,172 74,172
-------- --------
$380,853 $483,352
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 5,336 $ 3,603
-------- --------
Total current liabilities . . . . . $ 5,336 $ 3,603
ACCRUED LIABILITY . . . . . . . . . . . . 35,622 35,622
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
32 units . . . . . . . . . . . . . . 3,399 4,442
Limited Partners, issued and outstanding,
3,140 units . . . . . . . . . . . . 336,496 439,685
-------- --------
Total Partners' capital . . . . . . $339,895 $444,127
-------- --------
$380,853 $483,352
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1979-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
-------- ---------
REVENUES:
Oil and gas sales, including
$82,882 and $111,692 of sales
to related parties (Note 2) . . . . $135,329 $114,530
Interest . . . . . . . . . . . . . . . 641 540
-------- --------
$135,970 $115,070
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 23,525 $ 24,217
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . . 24,240 23,553
General and administrative (Note 2) . 14,568 12,239
-------- --------
$ 62,333 $ 60,009
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 73,637 $ 55,061
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 736 $ 550
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 72,901 $ 54,511
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 23 $ 17
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 3,172 3,172
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1979-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
-------- ---------
REVENUES:
Oil and gas sales, including
$161,419 and $216,301 of sales
to related parties (Note 2) . . . . $217,590 $221,842
Interest . . . . . . . . . . . . . . . 1,765 860
-------- --------
$219,355 $222,702
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 48,556 $ 46,642
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . 38,720 39,969
General and administrative (Note 2) . 30,131 27,254
-------- --------
$117,407 $113,865
-------- --------
NET INCOME . . . . . . . . . . . . . . . $101,948 $108,837
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 1,019 $ 1,088
======== ========
LIMITED PARTNERS (99%) - net income . . . $100,929 $107,749
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 32 $ 34
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 3,172 3,172
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1979-1 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 . . . . . . . . . . . . . . $101,948 $108,837
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . . 38,720 39,969
Decrease in accounts receivable - Related
party . . . . . . . . . . . . . . . 13,447 -
(Increase) decrease in accrued oil and
gas sales . . . . . . . . . . . . . (11,852) 22,937
Increase (decrease) in accounts payable 1,733 ( 1,034)
-------- --------
Net cash provided by operating
activities $143,996 $170,709
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($ 907) ($ 17,688)
Retirements of oil and gas properties 315 462
-------- --------
Net cash used by investing activities ($ 592) ($ 17,226)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . ($206,180) ($174,460)
-------- --------
Net cash used by financing
activities ($206,180) ($174,460)
-------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS ($ 62,776) ($ 20,977)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 83,662 33,773
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $ 20,886 $ 12,796
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1995 1994
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $101,907 $129,666
Accrued oil and gas sales, including
$51,338 and $125,752 due from
related parties (Note 2) . . . . . . 93,321 149,136
-------- --------
Total current assets . . . . . . . $195,228 $278,802
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 450,077 521,263
DEFERRED CHARGE . . . . . . . . . . . . . 57,442 57,442
-------- --------
$702,747 $857,507
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 6,340 $ 5,876
Gas imbalance payable . . . . . . . . 2,336 2,336
-------- --------
Total current liabilities . . . . . $ 8,676 $ 8,212
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
29 units . . . . . . . . . . . . . . 6,941 8,493
Limited Partners, issued and outstanding,
2,860 units . . . . . . . . . . . . 687,130 840,802
-------- --------
Total Partners' capital . . . . . . $694,071 $849,295
-------- --------
$702,747 $857,507
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ----------
REVENUES:
Oil and gas sales, including
$67,436 and $220,047 of sales
to related parties (Note 2) . . . . $129,189 $251,024
Interest . . . . . . . . . . . . . . . 1,909 1,517
-------- --------
$131,098 $252,541
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 28,900 $ 33,818
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . 29,728 66,712
General and administrative (Note 2) . 10,972 9,178
-------- --------
$ 69,600 $109,708
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 61,498 $142,833
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 615 $ 1,429
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 60,883 $141,404
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 21 $ 50
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 2,889 2,889
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ----------
REVENUES:
Oil and gas sales, including
$229,829 and $467,336 of sales
to related parties (Note 2) . . . . $298,128 $513,027
Interest . . . . . . . . . . . . . . . 4,138 3,931
-------- --------
$302,266 $516,958
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 59,762 $ 73,496
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . 71,186 117,754
General and administrative (Note 2) . 23,197 20,551
-------- --------
$154,145 $211,801
-------- --------
NET INCOME . . . . . . . . . . . . . . . $148,121 $305,157
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 1,481 $ 3,052
======== ========
LIMITED PARTNERS (99%) - net income . . . $146,640 $302,105
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 51 $ 106
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 2,889 2,889
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1979-2 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 . . . . . . . . . . . . . . $148,121 $305,157
Adjustments to reconcile net income to net
cash provided (used) by operating
activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . . 71,186 117,754
Decrease in accrued oil and gas sales 55,815 36,708
Increase in accounts payable . . . . 464 298
Decrease in related party payable . - ( 696,695)
-------- --------
Net cash provided (used) by operating
activities . . . . . . . . . . . $275,586 ($236,778)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used by investing activities $ - $ -
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . ($303,345) $ -
-------- --------
Net cash used by financing activities ($303,345) $ -
-------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS ($ 27,759) ($236,778)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 129,666 433,512
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $101,907 $196,734
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1979-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1979-2 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
1979-1 and 1979-2 Limited Partnerships (individually, the "1979-
1 Program" or the "1979-2 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
resulting rate to the net remaining costs of oil and gas
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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 1979-1 Program
incurred such expenses totaling $30,131 and $27,254,
respectively, of which $22,260 and $22,260 were paid to Dyco.
During the six months ended June 30, 1995 and 1994 the 1979-2
Program incurred such expenses totaling $23,197 and $20,551,
respectively, of which $15,606 and $15,606 were paid to Dyco.
Affiliates of the Programs 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 1979-1
Program totaled $161,419 and $216,301, respectively. At June
30, 1995 accrued oil and gas sales for the 1979-1 Program
included $49,672 due from Premier. During the six months ended
June 30, 1995 and 1994 these sales for the 1979-2 Program
totaled $229,829 and $467,336, respectively. At June 30, 1995
accrued oil and gas sales for the 1979-2 Program included
$51,338 due from Premier.
3. CONTINGENCIES
-------------
On October 26, 1993, certain royalty owners filed a class action
lawsuit against Dyco and another party in which they alleged
entitlement to a share of the proceeds from a gas contract
involving one of the 1979-2 Program's wells. The plaintiffs are
alleging claims based on breach of contract, breach of fiduciary
obligation, and unjust enrichment and are seeking an accounting
and declaration as a third party beneficiary under the gas
contract. The plaintiffs have not quantified the amount of
their damages, but they are seeking exemplary damages, unpaid
royalties, and interest. Dyco has filed its answer in the
matter in which it denied all of the plaintiffs' allegations and
discovery is proceeding in the matter. On January 18, 1994 the
district court certified the matter as a class action and on
November 29, 1994 the plaintiffs filed a motion for summary
judgment in the matter. Dyco intends to vigorously defend the
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lawsuit. As of the date of these financial statements,
management cannot determine the amount of any alleged damages
which would be allocable to the Program from this lawsuit.
On October 21, 1994 a royalty owner filed a class action lawsuit
against an affiliate of Dyco and other parties in which he
alleged entitlement to a share of the proceeds from a gas
contract involving one of the 1979-2 program's wells. The
plaintiffs are alleging claims based on unjust enrichment,
breach of contract and fiduciary obligation, and constructive
fraud, and are seeking an accounting. The plaintiffs have not
quantified the amount of their damages, but they are seeking
actual and punitive damages, interest and costs. On November
17, 1994 the defendants filed a special appearance and motion to
dismiss for lack of venue. The court then entered an order
transferring venue to Oklahoma District Court. Discovery is
proceeding and the affiliate intends to vigorously defend the
lawsuit. As of the date of these financial statements,
management cannot determine the amount of any alleged damages
which would be allocable to the 1979-2 Program from this
lawsuit.
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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
---------------------
1979-1 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 $135,329 $114,530
Oil and gas production expenses $ 23,525 $ 24,217
Barrels produced 463 184
Mcf produced 92,335 64,740
Average price/Bbl $ 18.59 $ 15.42
Average price/Mcf $ 1.37 $ 1.73
As shown in the table, oil and natural gas sales increased
by 18.2% for the three months ended June 30, 1995 as
compared to the three months ended June 30, 1994. This
increase resulted from the increases in the volumes of oil
and natural gas sold and the increase in the average price
of oil sold, partially offset by the decrease in the average
price of natural gas sold for the three months ended June
30, 1995 as compared to the three months ended June 30,
1994. Volumes of oil and natural gas sold increased 279
barrels and 27,595 Mcf, respectively, for the three months
ended June 30, 1995 as compared to the three months ended
June 30, 1994. The increase in the volumes of oil sold
resulted primarily from positive prior period volume
adjustments from a purchaser on one well during the three
months ended June 30, 1995. The increase in the volumes of
natural gas sold resulted primarily from positive prior
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period volume adjustments from a purchaser on another well
during the three months ended June 30, 1995. Average oil
prices increased to $18.59 per barrel for the three months
ended June 30, 1995 from $15.42 per barrel for the three
months ended June 30, 1994, while average natural gas prices
decreased to $1.37 per Mcf for the three months ended June
30, 1995 from $1.73 per Mcf for the three months ended June
30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant
for 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 decreased to 17.4% for the
three months ended June 30, 1995 from 21.1% for the three
months ended June 30, 1994. This percentage decrease was
primarily due to the increase in the volumes of oil and
natural gas sold as a result of the prior period oil and gas
volume adjustments discussed above, partially offset by 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 remained relatively constant for 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 decreased slightly to 17.9% for the three months
ended June 30, 1995 from 20.6% for the three months ended
June 30, 1994. This percentage decrease was primarily the
result of a significant upward revision in the estimate of
the 1979-1 Program's remaining natural gas reserves.
General and administrative expenses increased $2,239 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This increase resulted
primarily from an increase in the 1979-1 Program's
professional fees during the three months ended June 30,
1995 as compared to the similar period in 1994. As a
percentage of oil and gas sales, these expenses remained
relatively constant at 10.8% for the three months ended June
30, 1995 compared to 10.7% for 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 $217,590 $221,842
Oil and gas production expenses $ 48,556 $ 46,642
Barrels produced 591 369
Mcf produced 151,830 117,148
Average price/Bbl $ 18.27 $ 15.02
Average price/Mcf $ 1.36 $ 1.85
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As shown in the table, oil and natural gas sales decreased
slightly by 1.9% 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 average
price of natural gas sold, partially offset by the increase
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. Volumes of oil and natural gas sold
increased 222 barrels and 34,682 Mcf, respectively, for the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. The increase in the volumes of oil
sold resulted from positive prior period volume adjustments
from a purchaser on one well during the six months ended
June 30, 1995. The increase in the volumes of natural gas
sold resulted primarily from positive prior period volume
adjustments from a purchaser on another well during the six
months ended June 30, 1995. Average oil prices increased to
$18.27 per barrel for the six months ended June 30, 1995
from $15.02 per barrel for the six months ended June 30,
1994, while average natural gas prices decreased to $1.36
per Mcf for the six months ended June 30, 1995 from $1.85
per Mcf for the six months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased slightly by $1,914
for the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994. The increase resulted
primarily from an increase in the volumes of oil and 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 remained relatively
constant at 22.3% for the six months ended June 30, 1995
compared to 21.0% for the six months ended June 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased slightly by $1,249 for the six months
ended June 30, 1995 as compared to the six months ended June
30, 1994. This decrease resulted primarily from a
significant upward revision in the estimate of the 1979-1
Program's remaining natural gas reserves. As a percentage
of oil and gas sales, this expense remained relatively
constant at 17.8% for the six months ended June 30, 1995
compared to 18.0% for the six months ended June 30, 1994.
General and administrative expenses increased $2,877 for the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This increase resulted primarily from
the increase in the 1979-1 Program's professional fees
during the six months ended June 30, 1995 as compared to the
similar period in 1994. As a percentage of oil and gas
sales, these expenses increased slightly to 13.8% for the
six months ended June 30, 1995 from 12.3% for the six months
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ended June 30, 1994. This percentage increase was primarily
a result of 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.
1979-2 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 $129,189 $251,024
Oil and gas production expenses $ 28,900 $ 33,318
Barrels produced 393 656
Mcf produced 69,394 136,823
Average price/Bbl $ 16.66 $ 15.23
Average price/Mcf $ 1.77 $ 1.76
As shown in the table, oil and natural gas sales decreased
48.5% for the three months ended June 30, 1995 as compared
to the three months ended June 30, 1994. This decrease
resulted primarily from 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.
Volumes of oil and natural gas sold decreased 263 barrels
and 67,429 Mcf, respectively, for the three months ended
June 30, 1995 as compared to the three months ended June 30,
1994. The decrease in the volumes of oil sold was primarily
the result of a significant positive prior period volume
adjustment from a purchaser on one well during the three
months ended June 30, 1994. The decrease in the volumes of
natural gas sold resulted primarily from a negative prior
period volume adjustment from a purchaser on another well
during the three months ended June 30, 1995. Average
natural gas prices remained relatively constant at $1.77 per
Mcf for the three months ended June 30, 1995 as compared to
$1.76 per Mcf for the three months ended June 30, 1994,
while average oil prices increased to $16.66 per barrel for
the three months ended June 30, 1995 from $15.23 per barrel
for the three months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $4,418 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
22.4% for the three months ended June 30, 1995 from 13.3%
for the three months ended June 30, 1994. This percentage
increase was primarily a result of the fixed nature of a
majority of lease operating expenses incurred during the
-16-
<PAGE>
<PAGE>
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 $36,984 for the three months ended June
30, 1995 as compared to the three months ended June 30,
1994. This decrease was primarily the result of an upward
revision in the estimate of the 1979-2 Program's remaining
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 decreased
to 23.0% for the three months ended June 30, 1995 from 26.6%
for the three months ended June 30, 1994. This percentage
decrease was primarily a result of the dollar decrease in
depreciation, depletion, and amortization expense related to
the upward revision in the estimate of reserves as discussed
above.
General and administrative expenses increased $1,794 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This increase resulted
primarily from an increase in the 1979-2 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 8.5% for the three months ended June 30, 1995
from 3.7% for the three months ended June 30, 1994. This
percentage increase was primarily a result of 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.
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 $298,128 $513,027
Oil and gas production expenses $ 59,762 $ 73,496
Barrels produced 777 1,696
Mcf produced 197,284 259,365
Average price/Bbl $ 16.38 $ 14.87
Average price/Mcf $ 1.45 $ 1.88
As shown in the table, oil and natural gas sales decreased
by 41.9% for the six months ended June 30, 1995 as compared
to the six months ended June 30, 1994. This decrease
resulted from the decreases in the volumes of oil and
natural gas sold and the decrease in the average price of
natural gas sold, partially offset by the 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.
-17-
<PAGE>
<PAGE>
Volumes of oil and natural gas sold decreased 919 barrels
and 62,081 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 oil sold was primarily the
result of a significant positive prior period volume
adjustment from a purchaser on one well during the six
months ended June 30, 1994. The decrease in the volumes of
natural gas sold resulted primarily from a negative prior
period volume adjustment from a purchaser on another well
during the six months ended June 30, 1995. Average natural
gas prices decreased to $1.45 per Mcf for the six months
ended June 30, 1995 from $1.88 per Mcf for the six months
ended June 30, 1994, while average oil prices increased to
$16.38 per barrel for the six months ended June 30, 1994
from $14.87 per barrel for the six months ended June 30,
1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $13,734 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 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 20.0% for the six months ended
June 30, 1995 from 14.3% for the six months ended June 30,
1994. This percentage increase was primarily a result of
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 $46,568 for the six months ended June
30, 1995 as compared to the six months ended June 30, 1994.
This decrease was primarily the result of an upward revision
in the estimate of the 1979-2 Program's remaining 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 remained
relatively constant at 23.9% for the six months ended June
30, 1995 compared to 23.0% for the six months ended June 30,
1994.
General and administrative expenses increased $2,646 for the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This increase resulted primarily from
an increase in the 1979-2 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 7.8% for the six months
ended June 30, 1995 from 4.0% for the six months ended June
30, 1994. This percentage increase was primarily a result
of the decrease in the volumes of oil and natural gas sold
and the decrease in the average price of natural gas sold
-18-
<PAGE>
<PAGE>
during the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994.
-19-
<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
-20-
<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 1979-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: August 10, 1995 By: /s/Dennis R. Neill
-----------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: August 10, 1995 By: /s/Patrick M. Hall
------------------------------
(Signature)
Patrick M. Hall
Senior Vice President -
Controller
Principal Accounting Officer
-21-
<PAGE>
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<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 20,886
<SECURITIES> 0
<RECEIVABLES> 57,375
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 78,261
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 380,853
<CURRENT-LIABILITIES> 5,336
<BONDS> 0
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0
<OTHER-SE> 339,895
<TOTAL-LIABILITY-AND-EQUITY> 380,853
<SALES> 217,590
<TOTAL-REVENUES> 219,355
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<TOTAL-COSTS> 117,407
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<NET-INCOME> 101,948
<EPS-PRIMARY> 32.00
<EPS-DILUTED> 0
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<TABLE> <S> <C>
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<NAME> DYCO OIL AND GAS PROGRAM 1979-2 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> 101,907
<SECURITIES> 0
<RECEIVABLES> 93,321
<ALLOWANCES> 0
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