<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, 1996 33-10346-07 (1979-1)
33-10346-08 (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 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 1979-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1996 1995
-------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 54,093 $ 32,509
Accrued oil and gas sales, including
$64,832 due from related parties
in 1995 (Note 2) 84,420 74,181
-------- --------
Total current assets $138,513 $106,690
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 254,097 291,717
DEFERRED CHARGE 69,409 69,409
-------- --------
$462,019 $467,816
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 5,301 $ 6,802
Gas imbalance payable 13,323 13,323
-------- --------
Total current liabilities $ 18,624 $ 20,125
ACCRUED LIABILITY 38,124 38,124
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 32 units 4,053 4,096
Limited Partners, issued and
outstanding 3,140 units 401,218 405,471
-------- --------
Total Partners' capital $405,271 $409,567
-------- --------
$462,019 $467,816
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-2-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1979-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
REVENUES:
Oil and gas sales, including
$82,882 of sales to related
parties in 1995 (Note 2) $140,006 $135,329
Interest 528 641
-------- --------
$140,534 $135,970
COST AND EXPENSES:
Oil and gas production $ 24,727 $ 23,525
Depreciation, depletion, and
amortization of oil and gas
properties 19,338 24,240
General and administrative (Note 2) 13,850 14,568
-------- --------
$ 57,916 $ 62,333
-------- --------
NET INCOME $ 82,619 $ 73,637
======== ========
GENERAL PARTNER (1%) - net
income $ 826 $ 736
======== ========
LIMITED PARTNERS (99%) - net
income $ 81,793 $ 72,901
======== ========
NET INCOME PER UNIT $ 26 $ 23
======== ========
UNITS OUTSTANDING 3,172 3,172
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-3-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1979-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
REVENUES:
Oil and gas sales, including
$161,419 of sales to related
parties in 1995 (Note 2) $269,123 $217,590
Interest 1,028 1,765
-------- --------
$270,151 $219,355
COST AND EXPENSES:
Oil and gas production $ 49,005 $ 48,556
Depreciation, depletion, and
amortization of oil and gas
properties 37,089 38,720
General and administrative (Note 2) 29,753 30,131
-------- --------
$115,847 $117,407
-------- --------
NET INCOME $154,304 $101,948
======== ========
GENERAL PARTNER (1%) - net
income $ 1,543 $ 1,019
======== ========
LIMITED PARTNERS (99%) - net
income $152,761 $100,929
======== ========
NET INCOME PER UNIT $ 49 $ 32
======== ========
UNITS OUTSTANDING 3,172 3,172
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-4-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1979-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $154,304 $101,948
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 37,089 38,720
Decrease in accounts receivable -
related party - 13,447
Increase in accrued oil and gas
sales ( 10,239) ( 11,852)
Increase (decrease) in accounts
payable ( 1,501) 1,733
-------- --------
Net cash provided by operating
activities $179,653 $143,996
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties $ - ($ 907)
Retirement of oil and gas properties 531 315
-------- --------
Net cash provided (used) by
investing activities $ 531 ($ 592)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($158,600) ($206,180)
-------- --------
Net cash used by financing
activities ($158,600) ($206,180)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 21,584 ($ 62,776)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 32,509 83,662
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 54,093 $ 20,886
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-5-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1996 1995
-------- ------------
CURRENT ASSETS:
Cash and cash equivalents $113,678 $105,766
Accrued oil and gas sales, including
$71,862 due from related parties
in 1995 (Note 2) 103,052 91,623
-------- --------
Total current assets $216,730 $197,389
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 383,986 440,361
DEFERRED CHARGE 67,617 67,617
-------- --------
$668,333 $705,367
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 5,343 $ 6,417
Gas imbalance payable 36,359 36,359
-------- --------
Total current liabilities $ 41,702 $ 42,776
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 29 units 6,267 6,626
Limited Partners, issued and
outstanding 2,860 units 620,364 655,965
-------- --------
Total Partners' capital $626,631 $662,591
-------- --------
$668,333 $705,367
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-6-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
REVENUES:
Oil and gas sales, including
$67,436 of sales to related
parties in 1995 (Note 2) $152,245 $129,189
Interest 1,465 1,909
-------- --------
$153,710 $131,098
COST AND EXPENSES:
Oil and gas production $ 26,148 $ 28,900
Depreciation, depletion, and
amortization of oil and gas
properties 26,609 29,728
General and administrative (Note 2) 10,296 10,972
-------- --------
$ 63,053 $ 69,600
-------- --------
NET INCOME $ 90,657 $ 61,498
======== ========
GENERAL PARTNER (1%) - net
income $ 907 $ 615
======== ========
LIMITED PARTNERS (99%) - net
income $ 89,750 $ 60,883
======== ========
NET INCOME PER UNIT $ 31 $ 21
======== ========
UNITS OUTSTANDING 2,889 2,889
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-7-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
REVENUES:
Oil and gas sales, including
$229,829 of sales to related
parties in 1995 (Note 2) $326,728 $298,128
Interest 2,790 4,138
-------- --------
$329,518 $302,266
COST AND EXPENSES:
Oil and gas production $ 54,430 $ 59,762
Depreciation, depletion, and
amortization of oil and gas
properties 57,240 71,186
General and administrative (Note 2) 22,688 23,197
-------- --------
$134,358 $154,145
-------- --------
NET INCOME $195,160 $148,121
======== ========
GENERAL PARTNER (1%) - net
income $ 1,952 $ 1,481
======== ========
LIMITED PARTNERS (99%) - net
income $193,208 $146,640
======== ========
NET INCOME PER UNIT $ 68 $ 51
======== ========
UNITS OUTSTANDING 2,889 2,889
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-8-
<PAGE>
<PAGE>
DYCO OIL AND GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $195,160 $148,121
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 57,240 71,186
(Increase) decrease in accrued oil
and gas sales ( 11,429) 55,815
Increase (decrease) in accounts
payable ( 1,074) 464
-------- --------
Net cash provided by operating
activities $239,897 $275,586
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties ($ 865) $ -
-------- --------
Net cash used by investing
activities ($ 865) $ -
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($231,120) ($303,345)
-------- --------
Net cash used by financing
activities ($231,120) ($303,345)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 7,912 ($ 27,759)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 105,766 129,666
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $113,678 $101,907
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-9-
<PAGE>
<PAGE>
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, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1996, statements of operations
for the three and six months ended June 30, 1996 and 1995, and
statements of cash flows for the six months ended June 30, 1996
and 1995 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, 1996, results of operations for the three and six
months ended June 30, 1996 and 1995 and changes in cash flows for
the six months ended June 30, 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 June 30, 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 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.
-10-
<PAGE>
<PAGE>
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 June 30, 1996 and 1995 the 1979-1 Program
incurred such expenses totaling $13,850 and $14,568,
respectively, of which $11,130 and $11,130 were paid to Dyco.
During the six months ended June 30, 1996 and 1995 the 1979-1
Program incurred such expenses totaling $29,753 and $30,131,
respectively, of which $22,260 and $22,260 were paid to Dyco.
During the three months ended June 30, 1996 and 1995 the 1979-2
Program incurred such expenses totaling $10,296 and $10,972,
respectively, of which $7,803 and $7,803 were paid to Dyco.
During the six months ended June 30, 1996 and 1995 the 1979-2
Program incurred such expenses totaling $22,688 and $23,197,
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 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 June 30, 1995
these sales for the 1979-1 Program totaled $82,882. During the
six months ended June 30, 1995 these sales for the 1979-1 Program
totaled $161,419. At December 31, 1995, accrued oil and gas
sales for the 1979-1 Program included $64,832 due from Premier.
During the three months ended June 30, 1995 these sales for the
1979-2 Program totaled $67,436. During the six months ended June
30, 1995 these sales for the 1979-2 Program totaled $229,829. At
December 31, 1995, accrued oil and gas sales for the 1979-2
Program included $71,862 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. Oral arguments were heard on the motion
in January 1995, however, as of the date of these financial
statements, the district court has not ruled on the motion. Dyco
intends to vigorously defend the lawsuit. As of the date of
-11-
<PAGE>
<PAGE>
these financial statements, management cannot determine the
amount of any alleged damages which would be allocable to the
1979-2 Program from this lawsuit; however, it is reasonably
possible that events could change in the future resulting in a
material liability to the 1979-2 Program.
On October 21, 1994 a royalty owner filed a class action lawsuit
against Samson Resources Company 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 County District Court. Discovery is proceeding
and Samson Resources Company 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;
however, it is reasonably possible that events could change in
the future resulting in a material liability to the Program.
-12-
<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
- ---------------------
1979-1 PROGRAM
THREE MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1995.
Three months ended June 30,
---------------------------
1996 1995
-------- --------
Oil and gas sales $140,006 $135,329
Oil and gas production expenses $ 24,727 $ 23,525
Barrels produced 121 463
Mcf produced 69,842 92,335
Average price/Bbl $ 19.09 $ 18.59
Average price/Mcf $ 1.97 $ 1.37
As shown in the table, oil and natural gas sales increased $4,677
(3.5%) for the three months ended June 30, 1996 as compared to
the three months ended June 30, 1995. Of this increase $55,401
was related to the increase in the average price of natural gas
sold, partially offset by a $50,840 decrease related to the
decrease in the volumes of oil and natural gas sold. Volumes of
oil and natural gas sold decreased by 342 barrels and 22,493 Mcf,
respectively, for the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995. The decrease in
the volumes of oil sold resulted primarily from positive prior
period adjustments made by a purchaser on one well during the
three months ended June 30, 1995. The decrease in the volumes of
natural gas sold resulted primarily from positive prior period
adjustments made by a purchaser on another well during the three
-13-
<PAGE>
<PAGE>
months ended June 30, 1995. Average oil and natural gas prices
increased to $19.09 per barrel and $1.97 per Mcf, respectively,
for the three months ended June 30, 1996 from $18.59 per barrel
and $1.37 per Mcf, respectively, for the three months ended June
30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased by $1,202 for the three
months ended June 30, 1996 as compared to the three months ended
June 30, 1995. This increase was primarily a result of prior
period adjustments by the operator on one of the 1979-1 Program's
wells during the three months ended June 30, 1995. As a
percentage of oil and gas sales, these expenses remained
relatively constant at 17.7% for the three months ended June 30,
1996 compared to 17.4% for the three months ended June 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $4,902 for the three months ended June 30,
1996 as compared to the three months ended June 30, 1995. This
decrease was due primarily to the decrease in volumes of oil and
natural gas sold during the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995. As a
percentage of oil and gas sales, this expense decreased to 13.8%
for the three months ended June 30, 1996 from 17.9% for the three
months ended June 30, 1995. This percentage decrease was
primarily a result of increases in the average prices of oil and
natural gas sold during the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995.
General and administrative expenses decreased by $718 for the
three months ended June 30, 1996 as compared to the three months
ended June 30, 1995. This decrease resulted primarily from a
decrease in printing and postage fees during the three months
ended June 30, 1996 as compared to the three months ended June
30, 1995. As a percentage of oil and gas sales, these expenses
decreased slightly to 9.9% for the three months ended June 30,
1996 from 10.8% for the three months ended June 30, 1995. This
percentage decrease was primarily a result of increases in the
average prices of oil and natural gas sold during the three
months ended June 30, 1996 as compared to the three months ended
June 30, 1995.
SIX MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1995.
Six months ended June 30,
---------------------------
1996 1995
-------- --------
Oil and gas sales $269,123 $217,590
Oil and gas production expenses $ 49,005 $ 48,556
Barrels produced 183 591
Mcf produced 139,562 151,830
Average price/Bbl $ 19.27 $ 18.27
Average price/Mcf $ 1.90 $ 1.36
As shown in the table, oil and natural gas sales increased
$51,533 (23.7%) for the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995. Of this increase
$81,988 was related to the increase in the average price of
natural gas sold, partially offset by a $31,171 decrease related
to the decrease in the volumes of oil and natural gas sold.
-14-
<PAGE>
<PAGE>
Volumes of oil and natural gas sold decreased 408 barrels and
12,268 Mcf, respectively, for the six months ended June 30, 1996
as compared to the six months ended June 30, 1995. The decrease
in the volumes of oil sold resulted primarily from positive prior
period adjustments made by a purchaser on one well during the six
months ended June 30, 1995. The decrease in the volumes of
natural gas sold was primarily the result of positive prior
period adjustments made by a purchaser on one well during the six
months ended June 30, 1995, partially offset by increased
production on another well during the six months ended June 30,
1996 as compared to the six months ended June 30, 1995 as a
result of recent recompletion activities. Average oil and
natural gas prices increased to $19.27 per barrel and $1.90 per
Mcf, respectively, for the six months ended June 30, 1996 from
$18.27 per barrel and $1.36 per Mcf, respectively, for the six
months ended June 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant for
the six months ended June 30, 1996 as compared to the six months
ended June 30, 1995. As a percentage of oil and gas sales, these
expenses decreased to 18.2% for the six months ended June 30,
1996 from 22.3% for the six months ended June 30, 1995. This
percentage decrease was primarily a result of increases in the
average prices of oil and natural gas sold during the six months
ended June 30, 1996 as compared to the six months ended June 30,
1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $1,631 for the six months ended June 30,
1996 as compared to the six months ended June 30, 1995. This
decrease was due primarily to the decreases in volumes of oil and
natural gas sold during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995. As a percentage
of oil and gas sales, this expense decreased to 13.8% for the six
months ended June 30, 1996 from 17.8% for the six months ended
June 30, 1995. This percentage decrease was primarily a result
of increases in the average prices of oil and natural gas sold
during the six months ended June 30, 1996 as compared to the six
months ended June 30, 1995.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1996 as compared to the six
months ended June 30, 1995. As a percentage of oil and gas
sales, these expenses decreased to 11.1% for the six months ended
June 30, 1996 from 13.8% for the six months ended June 30, 1995.
This percentage decrease was primarily due to increases in the
average prices of oil and natural gas sold during the six months
ended June 30, 1996 as compared to the six months ended June 30,
1995.
-15-
<PAGE>
<PAGE>
1979-2 PROGRAM
THREE MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1995.
Three months ended June 30,
---------------------------
1996 1995
-------- --------
Oil and gas sales $152,245 $129,189
Oil and gas production expenses $ 26,148 $ 28,900
Barrels produced 307 393
Mcf produced 66,333 69,394
Average price/Bbl $ 19.57 $ 16.66
Average price/Mcf $ 2.20 $ 1.77
As shown in the table, oil and natural gas sales increased by
$23,056 (17.8%) for the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995. Of this
increase, $29,839 related to the increase in the average price of
natural gas sold, partially offset by a $6,734 decrease related
to the decrease in the volumes of natural gas sold. Volumes of
oil and natural gas sold decreased 86 barrels and 3,061 Mcf,
respectively, for the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995. The decrease
in the volumes of natural gas sold resulted primarily from gas
balancing adjustments made by the operator on a well because of
revisions in the estimate of the remaining natural gas reserves
at December 31, 1995. Average oil and natural gas prices
increased to $19.57 per barrel and $2.20 per Mcf, respectively,
for the three months ended June 30, 1996 from $16.66 per barrel
and $1.77 per Mcf, respectively, for the three months ended June
30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased by $2,752 for the three
months ended June 30, 1996 as compared to the three months ended
June 30, 1995. This decrease was primarily a result of (i)
workover charges incurred on one well during the three months
ended June 30, 1995 and (ii) an increase in salt water disposal
income on another well during the three months ended June 30,
1996 as compared to the three months ended June 30, 1995. As a
percentage of oil and gas sales, these expenses decreased to
17.2% for the three months ended June 30, 1996 from 22.4% for the
three months ended June 30, 1995. This percentage decrease was
primarily a result of the increases in the average prices of oil
and natural gas sold during the three months ended June 30, 1996
as compared to the three months ended June 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $3,119 for the three months ended June 30,
1996 as compared to the three months ended June 30, 1995. This
decrease was primarily a result of the decreases in the volumes
of oil and natural gas sold during the three months ended June
30, 1996 as compared to the three months ended June 30, 1995 and
an upward revision in the estimate of the 1979-2 Program's
remaining natural gas reserves at December 31, 1995. As a
percentage of oil and gas sales, this expense decreased to 17.5%
for the three months ended June 30, 1996 from 23.0% for the
three months ended June 30, 1995. This percentage decrease was
primarily a result of increases in the average prices of oil and
-16-
<PAGE>
<PAGE>
natural gas sold during the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995.
General and administrative expenses decreased $676 for the three
months ended June 30, 1996 as compared to the three months ended
June 30, 1995. This decrease resulted primarily from a decrease
in printing and postage fees during the three months ended June
30, 1996 as compared to the three months ended June 30, 1995. As
a percentage of oil and gas sales, these expenses decreased to
6.8% for the three months ended June 30, 1996 from 8.5% for the
three months ended June 30, 1995. This percentage decrease was
primarily a result of increases in the average prices of oil and
natural gas sold during the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995.
SIX MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1995.
Six months ended June 30,
---------------------------
1996 1995
-------- --------
Oil and gas sales $326,728 $298,128
Oil and gas production expenses $ 54,430 $ 59,762
Barrels produced 665 777
Mcf produced 149,038 197,284
Average price/Bbl $ 19.10 $ 16.38
Average price/Mcf $ 2.11 $ 1.45
As shown in the table, oil and natural gas sales increased by
$28,600 (9.6%) for the six months ended June 30, 1996 as compared
to the six months ended June 30, 1995. Of this increase,
$130,207 was related to the increase in the average price of
natural gas sold, partially offset by a $101,799 decrease related
to the decrease in the volumes of natural gas sold. Volumes of
oil and natural gas sold decreased 112 barrels and 48,246 Mcf,
respectively, for the six months ended June 30, 1996 as compared
to the six months ended June 30, 1995. The decrease in the
volume of oil sold was primarily a result of the normal decline
in production from diminished reserves on one well during the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995. The decrease in the volumes of natural gas sold
resulted primarily from gas balancing adjustments during the six
months ended June 30, 1995 made by the operator on a well because
of revisions in the estimate of the remaining natural gas
reserves at December 31, 1995. Average oil and natural gas
prices increased to $19.10 per barrel and $2.11 per Mcf,
respectively, for the six months ended June 30, 1996 from $16.38
per barrel and $1.45 per Mcf, respectively, for the six months
ended June 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased by $5,332 for the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995. This decrease was primarily a result of (i)
workover charges incurred on one well during the six months ended
June 30, 1995 and (ii) an increase in salt water disposal income
on another well during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995. As a percentage
of oil and gas sales, these expenses decreased to 16.7% for the
six months ended June 30, 1996 from 20.0% for the six months
ended June 30, 1995. This percentage decrease was primarily a
-17-
<PAGE>
<PAGE>
result of increases in the average prices of oil and natural gas
sold during the six months ended June 30, 1996 as compared to the
six months ended June 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $13,946 for the six months ended June 30,
1996 as compared to the six months ended June 30, 1995. This
dollar decrease was primarily a result of the decreases in the
volumes of oil and natural gas sold during the six months ended
June 30, 1996 as compared to the six months ended June 30, 1995
and an upward revision in the estimate of the 1979-2 Program's
remaining natural gas reserves at December 31, 1995. As a
percentage of oil and gas sales, this expense decreased to 17.5%
for the six months ended June 30, 1996 from 23.9% for the six
months ended June 30, 1995. This percentage decrease was
primarily a result of increases in the average prices of oil and
natural gas sold during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995.
General and administrative expenses decreased $509 for the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995. This decrease resulted primarily from a decrease
in printing and postage fees during the six months ended June 30,
1996 as compared to the six months ended June 30, 1995. As a
percentage of oil and gas sales, these expenses decreased
slightly to 6.9% for the six months ended June 30, 1996 from 7.8%
for the six months ended June 30, 1995. This percentage decrease
was primarily a result of increases in the average prices of oil
and natural gas sold during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995.
-18-
<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 Dyco Oil
and Gas Program 1979-1 Limited Partnership's
financial statements as of June 30, 1996 and for
the six months ended June 30, 1996, filed
herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the Dyco Oil
and Gas Program 1979-2 Limited Partnership's
financial statements as of June 30, 1996 and for
the six months ended June 30, 1996, filed
herewith.
(b) Reports on Form 8-K
None
-19-
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
DYCO OIL AND GAS PROGRAM 1979-1 LIMITED
PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1979-2 LIMITED
PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: August 6, 1996 By: /s/Dennis R. Neill
------------------------------------
(Signature)
Dennis R. Neill
President
Date: August 6, 1996 By: /s/Drew S. Phillips
-----------------------------------
(Signature)
Drew S. Phillips
Chief Financial Officer
-20-
<PAGE>
<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1979-1 Limited Partnership's financial statements as of June
30, 1996 and for the six months ended June 30, 1996, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1979-2 Limited Partnership's financial statements as of June
30, 1996 and for the six months ended June 30, 1996, filed
herewith.
All other exhibits are omitted as inapplicable.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806573
<NAME> DYCO OIL AND GAS PROGRAM 1979-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 54,093
<SECURITIES> 0
<RECEIVABLES> 84,420
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 138,513
<PP&E> 20,451,753
<DEPRECIATION> 20,197,656
<TOTAL-ASSETS> 462,019
<CURRENT-LIABILITIES> 18,624
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 405,271
<TOTAL-LIABILITY-AND-EQUITY> 462,019
<SALES> 269,123
<TOTAL-REVENUES> 270,151
<CGS> 0
<TOTAL-COSTS> 115,847
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 154,304
<INCOME-TAX> 0
<INCOME-CONTINUING> 154,304
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 154,304
<EPS-PRIMARY> 49.00
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806574
<NAME> DYCO OIL AND GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 113,678
<SECURITIES> 0
<RECEIVABLES> 103,052
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 216,730
<PP&E> 18,563,409
<DEPRECIATION> 18,179,423
<TOTAL-ASSETS> 668,333
<CURRENT-LIABILITIES> 41,702
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 626,631
<TOTAL-LIABILITY-AND-EQUITY> 668,333
<SALES> 326,728
<TOTAL-REVENUES> 329,518
<CGS> 0
<TOTAL-COSTS> 134,358
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 195,160
<INCOME-TAX> 0
<INCOME-CONTINUING> 195,160
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 195,160
<EPS-PRIMARY> 68.00
<EPS-DILUTED> 0
</TABLE>
