<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, 1997 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
--- ---
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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,
1997 1996
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 28,530 $ 59,449
Accrued oil and gas sales 63,528 101,981
-------- --------
Total current assets $ 92,058 $161,430
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 213,956 241,255
DEFERRED CHARGE 50,957 50,957
-------- --------
$356,971 $453,642
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 4,089 $ 4,342
Gas imbalance payable 11,643 11,643
-------- --------
Total current liabilities $ 15,732 $ 15,985
ACCRUED LIABILITY 33,832 33,832
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 32 units 3,075 4,039
Limited Partners, issued and
outstanding, 3,140 units 304,332 399,786
-------- --------
Total Partners' capital $307,407 $403,825
-------- --------
$356,971 $453,642
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $91,069 $140,006
Interest 1,123 528
------- --------
$92,192 $140,534
COST AND EXPENSES:
Oil and gas production $16,866 $ 24,727
Depreciation, depletion, and
amortization of oil and gas
properties 5,667 19,338
General and administrative (Note 2) 12,879 13,850
------- --------
$35,412 $ 57,915
------- --------
NET INCOME $56,780 $ 82,619
======= ========
GENERAL PARTNER (1%) - net
income $ 568 $ 826
======= ========
LIMITED PARTNERS (99%) - net
income $56,212 $ 81,793
======= ========
NET INCOME PER UNIT $ 17.90 $ 26.05
======= ========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $237,962 $269,123
Interest 1,900 1,028
-------- --------
$239,862 $270,151
COST AND EXPENSES:
Oil and gas production $ 40,480 $ 49,005
Depreciation, depletion, and
amortization of oil and gas
properties 26,953 37,089
General and administrative (Note 2) 30,947 29,753
-------- --------
$ 98,380 $115,847
-------- --------
NET INCOME $141,482 $154,304
======== ========
GENERAL PARTNER (1%) - net
income $ 1,415 $ 1,543
======== ========
LIMITED PARTNERS (99%) - net
income $140,067 $152,761
======== ========
NET INCOME PER UNIT $ 44.60 $ 48.65
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $141,482 $154,304
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 26,953 37,089
(Increase) decrease in accrued oil
and gas sales 38,453 ( 10,239)
Decrease in accounts payable ( 253) ( 1,501)
-------- --------
Net cash provided by operating
activities $206,635 $179,653
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 346 $ 531
-------- --------
Net cash provided by investing
activities $ 346 $ 531
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($237,900) ($158,600)
-------- --------
Net cash used by financing
activities ($237,900) ($158,600)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 30,919) $ 21,584
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 59,449 32,509
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 28,530 $ 54,093
======== ========
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,
1997 1996
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $160,729 $123,603
Accrued oil and gas sales 103,134 168,871
-------- --------
Total current assets $263,863 $292,474
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 307,609 366,631
DEFERRED CHARGE 50,557 50,557
-------- --------
$622,029 $709,662
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 5,911 $ 11,114
Gas imbalance payable 44,960 44,960
-------- --------
Total current liabilities $ 50,871 $ 56,074
ACCRUED LIABILITY 6,313 6,313
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 29 units 5,649 6,473
Limited Partners, issued and
outstanding, 2,860 units 559,196 640,802
-------- --------
Total Partners' capital $564,845 $647,275
-------- --------
$622,029 $709,662
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $156,716 $152,245
Interest 2,310 1,465
-------- --------
$159,026 $153,710
COST AND EXPENSES:
Oil and gas production $ 27,702 $ 26,148
Depreciation, depletion, and
amortization of oil and gas
properties 17,976 26,609
General and administrative (Note 2) 9,480 10,296
-------- --------
$ 55,158 $ 63,053
-------- --------
NET INCOME $103,868 $ 90,657
======== ========
GENERAL PARTNER (1%) - net
income $ 1,039 $ 907
======== ========
LIMITED PARTNERS (99%) - net
income $102,829 $ 89,750
======== ========
NET INCOME PER UNIT $ 35.95 $ 31.38
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $359,253 $326,728
Interest 3,880 2,790
-------- --------
$363,133 $329,518
COST AND EXPENSES:
Oil and gas production $ 60,078 $ 54,430
Depreciation, depletion, and
amortization of oil and gas
properties 58,539 57,240
General and administrative (Note 2) 23,601 22,688
-------- --------
$142,218 $134,358
-------- --------
NET INCOME $220,915 $195,160
======== ========
GENERAL PARTNER (1%) - net
income $ 2,209 $ 1,952
======== ========
LIMITED PARTNERS (99%) - net
income $218,706 $193,208
======== ========
NET INCOME PER UNIT $ 76.47 $ 67.55
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $220,915 $195,160
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 58,539 57,240
(Increase) decrease in accrued oil
and gas sales 65,737 ( 11,429)
Decrease in accounts payable ( 5,203) ( 1,074)
-------- --------
Net cash provided by operating
activities $339,988 $239,897
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 567 $ -
Additions to oil and gas properties ( 84) ( 865)
-------- --------
Net cash provided (used) by
investing activities $ 483 ($ 865)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($303,345) ($231,120)
-------- --------
Net cash used by financing
activities ($303,345) ($231,120)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 37,126 $ 7,912
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 123,603 105,766
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $160,729 $113,678
======== ========
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, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1997, statements of operations
for the three and six months ended June 30, 1997 and 1996, and
statements of cash flows for the six months ended June 30, 1997
and 1996 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, 1997, results of operations for the three and six
months ended June 30, 1997 and 1996 and changes in cash flows for
the six months ended June 30, 1997 and 1996 have been made.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto
included in the Programs' Annual Report on Form 10-K for the year
ended December 31, 1996. The results of operations for the
period ended June 30, 1997 are not necessarily indicative of the
results to be expected for the full year.
The limited partners' net income or loss per unit is based upon
each $5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost
method of accounting. All productive and non-productive costs
associated with the acquisition, exploration, and development of
oil and gas reserves are capitalized. The Program's calculation
of depreciation, depletion, and amortization includes estimated
future expenditures to be incurred in developing proved reserves
and estimated dismantlement and abandonment costs, net of
estimated salvage values. In the event the unamortized cost of
oil and gas properties being amortized exceeds the full cost
ceiling (as defined by the Securities and Exchange Commission),
the excess is charged to expense in the period during which such
excess occurs. Sales and abandonments of properties are
accounted for as adjustments of capitalized costs with no gain or
loss recognized, unless such adjustments would significantly
alter the relationship between capitalized costs and proved oil
and gas reserves.
The provision for depreciation, depletion, and amortization of
oil and gas properties is calculated by dividing the oil and gas
sales dollars during the period by the estimated future gross
income from the oil and gas properties and applying the resulting
rate to the net remaining costs of oil and gas properties that
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have been capitalized, plus estimated future development costs.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each of the Program's partnership agreement,
Dyco is entitled to receive a reimbursement for all direct
expenses and general and administrative, geological and
engineering expenses it incurs on behalf of the Program. During
the three months ended June 30, 1997 and 1996 the 1979-1 Program
incurred such expenses totaling $12,879 and $13,850,
respectively, of which $11,130 was paid quarterly to Dyco and its
affiliates. During the six months ended June 30, 1997 and 1996
the 1979-1 Program incurred such expenses totaling $30,947 and
$29,753, respectively, of which $22,260 was paid each period to
Dyco and its affiliates. During the three months ended June 30,
1997 and 1996 the 1979-2 Program incurred such expenses totaling
$9,480 and $10,296, respectively, of which $7,803 was paid
quarterly to Dyco and its affiliates. During the six months
ended June 30, 1997 and 1996 the 1979-2 Program incurred such
expenses totaling $23,601 and $22,688, respectively, of which
$15,606 was 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.
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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 Program.
Use of forward-looking statements and estimates and assumptions
involve risks and uncertainties which include, but are not
limited to, the volatility of oil and gas prices, the uncertainty
of reserve information, the operating risk associated with oil
and gas properties (including the risk of personal injury, death,
property damage, damage to the well or producing reservoir,
environmental contamination, and other operating risks), the
prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the
general economic climate, the supply and price of foreign imports
of oil and gas, the level of consumer product demand, and the
price and availability of alternative fuels. Should one or more
of these risks or uncertainties occur or should estimates or
underlying assumptions prove incorrect, actual conditions or
results may vary materially and adversely from those stated,
anticipated, believed, estimated, or otherwise indicated.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Net proceeds from the Programs' operations less necessary
operating capital are distributed to investors on a quarterly
basis. The net proceeds from production are not reinvested in
productive assets, except to the extent that producing wells are
improved, or where methods are employed to permit more efficient
recovery of the Programs' reserves which would result in a
positive economic impact.
The Programs' available capital from subscriptions has been spent
on oil and gas drilling activities. There should not be any
further material capital resource commitments in the future. The
Programs have no bank debt commitments. Cash for operational
purposes will be provided by current oil and gas production.
RESULTS OF OPERATIONS
- ---------------------
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GENERAL DISCUSSION
The following general discussion should be read in conjunction
with the analysis of results of operations provided below. The
most important variable affecting the Program's revenues is the
prices received for the sale of oil and gas. Predicting future
prices is very difficult. Substantially all of the Program's gas
reserves are being sold in the "spot market". Prices on the spot
market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot
market. In addition, such spot market sales are generally short-
term in nature and are dependent upon the obtaining of
transportation services provided by pipelines. Management is
unable to predict whether future oil and gas prices will (i)
stabilize, (ii) increase, or (iii) decrease.
1979-1 PROGRAM
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three months ended June 30,
---------------------------
1997 1996
------- --------
Oil and gas sales $91,069 $140,006
Oil and gas production expenses $16,866 $ 24,727
Barrels produced 75 121
Mcf produced 47,242 69,842
Average price/Bbl $ 19.79 $ 19.09
Average price/Mcf $ 1.90 $ 1.97
As shown in the table above, total oil and gas sales decreased
$48,937 (35.0%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $45,000 was related to a decrease in
volumes of gas sold. Volumes of oil and gas sold decreased 46
barrels and 22,600 Mcf, respectively, for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. The decrease in volumes of gas sold resulted primarily
from (i) a normal decline in production due to diminished gas
reserves on one well and (ii) a positive prior period volume
adjustment made by the purchaser on another well during the three
months ended June 30, 1996. Average oil prices increased to
$19.79 per barrel for the three months ended June 30, 1997 from
$19.09 per barrel for the three months ended June 30, 1996.
Average gas prices decreased to $1.90 per Mcf for the three
months ended June 30, 1997 from $1.97 per Mcf for the three
months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $7,861 (31.8%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996 and (ii) a decrease in production taxes associated with
the decrease in oil and gas sales discussed above. As a
percentage of oil and gas sales, these expenses remained
relatively constant at 18.5% for the three months ended June 30,
1997 and 17.7% for the three months ended June 30, 1996.
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Depreciation, depletion, and amortization of oil and gas
properties decreased $13,671 (70.7%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) decreases in
volumes of oil and gas sold during the three months ended June
30, 1997 as compared to the three months ended June 30, 1996 and
(ii) an upward revision in the estimate of remaining gas reserves
at December 31, 1996. As a percentage of oil and gas sales, this
expense decreased to 6.2% for the three months ended June 30,
1997 from 13.8% for the three months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above.
General and administrative expenses decreased $971 (7.0%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from a
decrease in professional fees during the three months ended June
30, 1997 as compared to the three months ended June 30, 1996. As
a percentage of oil and gas sales, these expenses increased to
14.1% for the three months ended June 30, 1997 from 9.9% for the
three months ended June 30, 1996. This percentage increase was
primarily due to the decrease in oil and gas sales discussed
above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six months ended June 30,
-------------------------
1997 1996
-------- --------
Oil and gas sales $237,962 $269,123
Oil and gas production expenses $ 40,480 $ 49,005
Barrels produced 172 183
Mcf produced 105,377 139,562
Average price/Bbl $ 20.71 $ 19.27
Average price/Mcf $ 2.22 $ 1.90
As shown in the table above, total oil and gas sales decreased
$31,161 (11.6%) for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Of this
decrease, approximately $65,000 was related to a decrease in
volumes of gas sold, partially offset by an increase of
approximately $34,000 related to the increase in the average
price of gas sold. Volumes of oil and gas sold decreased 11
barrels and 34,185 Mcf, respectively, for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
The decrease in volumes of gas sold resulted primarily from (i)
normal declines in production due to diminished gas reserves on
two wells and (ii) a positive prior period volume adjustment made
by the purchaser on one well during the six months ended June 30,
1996. Average oil and gas prices increased to $20.71 per barrel
and $2.22 per Mcf, respectively, for the six months ended June
30, 1997 from $19.27 per barrel and $1.90 per Mcf, respectively,
for the six months ended June 30, 1996.
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Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $8,525 (17.4%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from the
decrease in volumes of gas sold during the six months ended June
30, 1997 as compared to the six months ended June 30, 1996. As a
percentage of oil and gas sales, these expenses decreased to
11.3% for the six months ended June 30, 1997 from 13.8% for the
six months ended June 30, 1996. This percentage decrease was
primarily due to the increases in the average prices of oil and
gas sold during the six months ended June 30, 1997 as compared to
the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $10,136 (27.3%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) the decrease in volumes
of gas sold during the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996 and (ii) an upward revision
in the estimate of remaining gas reserves at December 31, 1996.
As a percentage of oil and gas sales, this expense decreased to
11.3% for the six months ended June 30, 1997 from 13.8% for the
six months ended June 30, 1996. This percentage decrease was
primarily due to the increases in the average prices of oil and
gas sold during the six months ended June 30, 1997 as compared to
the six months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses increased to 13.0% for the six months ended
June 30, 1997 from 11.1% for the six months ended June 30, 1996.
This percentage increase was primarily due to the decrease in oil
and gas sales discussed above.
1979-2 PROGRAM
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three months ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $156,716 $152,245
Oil and gas production expenses $ 27,702 $ 26,148
Barrels produced 298 307
Mcf produced 72,529 66,333
Average price/Bbl $ 21.40 $ 19.57
Average price/Mcf $ 2.07 $ 2.20
As shown in the table above, total oil and gas sales increased
$4,471 (2.9%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
increase, approximately $14,000 was related to an increase in
volumes of gas sold, partially offset by a decrease of
approximately $9,000 related to the decrease in the average price
of gas sold. Volumes of oil sold decreased 9 barrels, while
volumes of gas sold increased 6,196 Mcf for the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. Average oil prices increased to $21.40 per barrel for
the three months ended June 30, 1997 from $19.57 per barrel for
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the three months ended June 30, 1996. Average gas prices
decreased to $2.07 per Mcf for the three months ended June 30,
1997 from $2.20 per Mcf for the three months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $1,554 (5.9%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This increase resulted primarily from an
increase in volumes of gas sold during the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
remained relatively constant at 17.7% for the three months ended
June 30, 1997 and 17.2% for the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $8,633 (32.4%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from upward revisions in
the estimates of remaining oil and gas reserves at December 31,
1996, partially offset by an increase in volumes of gas sold
during the three months ended June 30, 1997 as compared to the
three months ended June 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 11.5% for the three months ended
June 30, 1997 from 17.5% for the three months ended June 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above.
General and administrative expenses decreased $816 (7.9%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from a
decrease in professional fees during the three months ended June
30, 1997 as compared to the three months ended June 30, 1996. As
a percentage of oil and gas sales, these expenses remained
relatively constant at 6.0% for the three months ended June 30,
1997 and 6.8% for the three months ended June 30, 1996.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six months ended June 30,
-------------------------
1997 1996
-------- --------
Oil and gas sales $359,253 $326,728
Oil and gas production expenses $ 60,078 $ 54,430
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Barrels produced 562 665
Mcf produced 142,616 149,038
Average price/Bbl $ 21.80 $ 19.10
Average price/Mcf $ 2.43 $ 2.11
As shown in the table above, total oil and gas sales increased
$32,525 (10.0%) for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Of this
increase, approximately $46,000 was related to the increase in
the average price of gas sold, partially offset by a decrease of
approximately $14,000 related to the decrease in volumes of gas
sold. Volumes of oil and gas sold decreased 103 barrels and
6,422 Mcf, respectively, for the six months ended June 30, 1997
as compared to the six months ended June 30, 1996. Average oil
and gas prices increased to $21.80 per barrel and $2.43 per Mcf,
respectively, for the six months ended June 30, 1997 from $19.10
per barrel and $2.11 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $5,648 (10.4%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This increase resulted primarily from an
increase in compression expenses incurred on two wells during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. As a percentage of oil and gas sales, these
expenses remained constant at 16.7% for the six months ended June
30, 1997 and 1996.
Depreciation, depletion, and amortization of oil and gas
properties increased $1,299 (2.3%) for the six months ended June
30, 1997 as compared to the six months ended June 30, 1996. This
increase resulted primarily from a decrease in the oil price used
in the valuation of reserves at June 30, 1997. As a percentage
of oil and gas sales, this expense remained relatively constant
at 16.3% for the six months ended June 30, 1997 and 17.5% for the
six months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses remained relatively constant at 6.6% for
the six months ended June 30, 1997 and 6.9% for the six months
ended June 30, 1996.
-17-
<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 1979-1
Program's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed
herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the 1979-2
Program's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed
herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K
None.
-18-
<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 5, 1997 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: August 5, 1997 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
-21-
<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, 1997 and for the six months ended June 30, 1997, 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, 1997 and for the six months ended June 30, 1997, filed
herewith.
All other exhibits are omitted as inapplicable.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806573
<NAME> DYCO OIL & GAS PROGRAM 1979-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 28,530
<SECURITIES> 0
<RECEIVABLES> 63,528
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 92,058
<PP&E> 20,435,166
<DEPRECIATION> 20,221,210
<TOTAL-ASSETS> 356,971
<CURRENT-LIABILITIES> 15,732
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 307,407
<TOTAL-LIABILITY-AND-EQUITY> 356,971
<SALES> 237,962
<TOTAL-REVENUES> 239,862
<CGS> 0
<TOTAL-COSTS> 98,380
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 141,482
<INCOME-TAX> 0
<INCOME-CONTINUING> 141,482
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 141,482
<EPS-PRIMARY> 44.60
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806574
<NAME> DYCO OIL & GAS PROGRAM 1979-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 160,729
<SECURITIES> 0
<RECEIVABLES> 103,134
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 263,863
<PP&E> 18,560,138
<DEPRECIATION> 18,252,529
<TOTAL-ASSETS> 622,029
<CURRENT-LIABILITIES> 50,871
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 564,845
<TOTAL-LIABILITY-AND-EQUITY> 622,029
<SALES> 359,253
<TOTAL-REVENUES> 363,133
<CGS> 0
<TOTAL-COSTS> 142,218
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 220,915
<INCOME-TAX> 0
<INCOME-CONTINUING> 220,915
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 220,915
<EPS-PRIMARY> 76.47
<EPS-DILUTED> 0
</TABLE>
