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
September 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
September 30, December 31,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 33,681 $ 59,449
Accrued oil and gas sales 66,426 101,981
-------- --------
Total current assets $100,107 $161,430
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 206,031 241,255
DEFERRED CHARGE 50,957 50,957
-------- --------
$357,095 $453,642
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 3,842 $ 4,342
Gas imbalance payable 11,643 11,643
-------- --------
Total current liabilities $ 15,485 $ 15,985
ACCRUED LIABILITY 33,832 33,832
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 32 units 3,079 4,039
Limited Partners, issued and
outstanding, 3,140 units 304,699 399,786
-------- --------
Total Partners' capital $307,778 $403,825
-------- --------
$357,095 $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 SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $103,310 $102,237
Interest 595 662
-------- --------
$103,905 $102,899
COST AND EXPENSES:
Oil and gas production $ 19,363 $ 21,038
Depreciation, depletion, and
amortization of oil and gas
properties 7,925 14,235
General and administrative (Note 2) 12,806 12,359
-------- --------
$ 40,094 $ 47,632
-------- --------
NET INCOME $ 63,811 $ 55,267
======== ========
GENERAL PARTNER (1%) - net
income $ 638 $ 553
======== ========
LIMITED PARTNERS (99%) - net
income $ 63,173 $ 54,714
======== ========
NET INCOME PER UNIT $ 20.12 $ 17.42
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $341,272 $371,360
Interest 2,495 1,690
-------- --------
$343,767 $373,050
COST AND EXPENSES:
Oil and gas production $ 59,843 $ 70,043
Depreciation, depletion, and
amortization of oil and gas
properties 34,878 51,324
General and administrative (Note 2) 43,753 42,112
-------- --------
$138,474 $163,479
-------- --------
NET INCOME $205,293 $209,571
======== ========
GENERAL PARTNER (1%) - net
income $ 2,053 $ 2,096
======== ========
LIMITED PARTNERS (99%) - net
income $203,240 $207,475
======== ========
NET INCOME PER UNIT $ 64.72 $ 66.07
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $205,293 $209,571
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 34,878 51,324
Decrease in accrued oil and
gas sales 35,555 1,599
Decrease in accounts payable ( 500) ( 2,002)
-------- --------
Net cash provided by operating
activities $275,226 $260,492
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 346 $ 592
-------- --------
Net cash provided by investing
activities $ 346 $ 592
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($301,340) ($253,760)
-------- --------
Net cash used by financing
activities ($301,340) ($253,760)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 25,768) $ 7,324
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 59,449 32,509
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 33,681 $ 39,833
======== ========
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
September 30, December 31,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $177,160 $123,603
Accrued oil and gas sales 119,400 168,871
-------- --------
Total current assets $296,560 $292,474
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 279,319 366,631
DEFERRED CHARGE 50,557 50,557
-------- --------
$626,436 $709,662
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 5,660 $ 11,114
Gas imbalance payable 44,960 44,960
-------- --------
Total current liabilities $ 50,620 $ 56,074
ACCRUED LIABILITY 6,313 6,313
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 29 units 5,695 6,473
Limited Partners, issued and
outstanding, 2,860 units 563,808 640,802
-------- --------
Total Partners' capital $569,503 $647,275
-------- --------
$626,436 $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 SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $215,050 $163,074
Interest 2,690 1,525
-------- --------
$217,740 $164,599
COST AND EXPENSES:
Oil and gas production $ 32,415 $ 28,219
Depreciation, depletion, and
amortization of oil and gas
properties 26,887 28,573
General and administrative (Note 2) 9,330 8,903
-------- --------
$ 68,632 $ 65,695
-------- --------
NET INCOME $149,108 $ 98,904
======== ========
GENERAL PARTNER (1%) - net
income $ 1,491 $ 989
======== ========
LIMITED PARTNERS (99%) - net
income $147,617 $ 97,915
======== ========
NET INCOME PER UNIT $ 51.61 $ 34.23
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $574,303 $489,802
Interest 6,570 4,315
-------- --------
$580,873 $494,117
COST AND EXPENSES:
Oil and gas production $ 92,493 $ 82,649
Depreciation, depletion, and
amortization of oil and gas
properties 85,426 85,813
General and administrative (Note 2) 32,931 31,591
-------- --------
$210,850 $200,053
-------- --------
NET INCOME $370,023 $294,064
======== ========
GENERAL PARTNER (1%) - net
income $ 3,700 $ 2,941
======== ========
LIMITED PARTNERS (99%) - net
income $366,323 $291,123
======== ========
NET INCOME PER UNIT $ 128.08 $ 101.79
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $370,023 $294,064
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 85,426 85,813
(Increase) decrease in accrued oil
and gas sales 49,471 ( 6,736)
Increase (decrease) in accounts
payable ( 5,454) 15,256
-------- --------
Net cash provided by operating
activities $499,466 $388,397
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 1,970 $ 751
Additions to oil and gas properties ( 84) ( 863)
-------- --------
Net cash provided (used) by
investing activities $ 1,886 ($ 112)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($447,795) ($361,125)
-------- --------
Net cash used by financing
activities ($447,795) ($361,125)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 53,557 $ 27,160
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 123,603 105,766
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $177,160 $132,926
======== ========
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
SEPTEMBER 30, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 1997, statements of
operations for the three and nine months ended September 30, 1997
and 1996, and statements of cash flows for the nine months ended
September 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 September 30, 1997, results of operations for the three and
nine months ended September 30, 1997 and 1996 and changes in cash
flows for the nine months ended September 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 September 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 Programs' calculation
of depreciation, depletion, and amortization includes estimated
future expenditures to be incurred in developing proved reserves
and estimated dismantlement and abandonment costs, net of
estimated salvage values. In the event the unamortized cost of
oil and gas properties being amortized exceeds the full cost
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
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rate to the net remaining costs of oil and gas properties that
have been capitalized, plus estimated future development costs.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each 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 September 30, 1997 and 1996 the 1979-1
Program incurred such expenses totaling $12,806 and $12,359,
respectively, of which $11,130 was paid each period to Dyco and
its affiliates. During the nine months ended September 30, 1997
and 1996 the 1979-1 Program incurred such expenses totaling
$43,753 and $42,112, respectively, of which $33,390 was paid each
period to Dyco and its affiliates. During the three months ended
September 30, 1997 and 1996 the 1979-2 Program incurred such
expenses totaling $9,330 and $8,903, respectively, of which
$7,803 was paid each period to Dyco and its affiliates. During
the nine months ended September 30, 1997 and 1996 the 1979-2
Program incurred such expenses totaling $32,931 and $31,591,
respectively, of which $23,409 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 Programs.
Use of forward-looking statements and estimates and assumptions
involve risks and uncertainties which include, but are not
limited to, the volatility of oil and gas prices, the uncertainty
of reserve information, the operating risk associated with oil
and gas properties (including the risk of personal injury, death,
property damage, damage to the well or producing reservoir,
environmental contamination, and other operating risks), the
prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the
general economic climate, the supply and price of foreign imports
of oil and gas, the level of consumer product demand, and the
price and availability of alternative fuels. Should one or more
of these risks or uncertainties occur or should estimates or
underlying assumptions prove incorrect, actual conditions or
results may vary materially and adversely from those stated,
anticipated, believed, estimated, or otherwise indicated.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Net proceeds from the Programs' operations less necessary
operating capital are distributed to investors on a quarterly
basis. The net proceeds from production are not reinvested in
productive assets, except to the extent that producing wells are
improved, or where methods are employed to permit more efficient
recovery of the Programs' reserves which would result in a
positive economic impact.
The Programs' available capital from subscriptions has been spent
on oil and gas drilling activities. There should not be any
further material capital resource commitments in the future. The
Programs have no bank debt commitments. Cash for operational
purposes will be provided by current oil and gas production.
RESULTS OF OPERATIONS
- ---------------------
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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 Programs' revenues is the
prices received for the sale of oil and gas. Predicting future
prices is very difficult. Substantially all of the Programs' gas
reserves are being sold in the "spot market". Prices on the spot
market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot
market. In addition, such spot market sales are generally short-
term in nature and are dependent upon the obtaining of
transportation services provided by pipelines. Management is
unable to predict whether future oil and gas prices will (i)
stabilize, (ii) increase, or (iii) decrease.
1979-1 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $103,310 $102,237
Oil and gas production expenses $ 19,363 $ 21,038
Barrels produced 9 90
Mcf produced 50,334 52,417
Average price/Bbl $ 19.11 $ 23.21
Average price/Mcf $ 2.05 $ 1.91
As shown in the table above, total oil and gas sales increased
$1,073 (1.0%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
increase, approximately $7,000 was related to an increase in the
average price of gas sold, partially offset by decreases of
approximately $2,000 and $4,000, respectively, related to
decreases in volumes of oil and gas sold. Volumes of oil and gas
sold decreased 81 barrels and 2,083 Mcf, respectively, for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. Average oil prices decreased to
$19.11 per barrel for the three months ended September 30, 1997
from $23.21 per barrel for the three months ended September 30,
1996. Average gas prices increased to $2.05 per Mcf for the
three months ended September 30, 1997 from $1.91 per Mcf for the
three months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $1,675 (8.0%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This decrease resulted
primarily from (i) decreases in volumes of oil and gas sold for
the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996 and (ii) a decrease in
compression expenses on one well during the three months ended
September 30, 1997. As a percentage of oil and gas sales, these
expenses decreased to 18.7% for the three months ended September
30, 1997 from 20.6% for the three months ended September 30,
1996. This percentage decrease was primarily due to the increase
in the average price of gas sold during the three months ended
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September 30, 1997 as compared to the three months ended
September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $6,310 (44.3%) for the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996. This decrease resulted primarily from upward
revisions in the estimates of remaining oil and gas reserves at
December 31, 1996. As a percentage of oil and gas sales, this
expense decreased to 7.7% for the three months ended September
30, 1997 from 13.9% for the three months ended September 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above and the increase in the average price of gas sold during
the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. As a percentage of oil
and gas sales, these expenses also remained relatively constant
at 12.4% for the three months ended September 30, 1997 as
compared to 12.1% for the three months ended September 30, 1996.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
-------------------------------
1997 1996
-------- --------
Oil and gas sales $341,272 $371,360
Oil and gas production expenses $ 59,843 $ 70,043
Barrels produced 181 273
Mcf produced 155,711 191,979
Average price/Bbl $ 20.63 $ 20.57
Average price/Mcf $ 2.17 $ 1.91
As shown in the table above, total oil and gas sales decreased
$30,088 (8.1%) for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
decrease, approximately $69,000 was related to a decrease in
volumes of gas sold, partially offset by an increase of
approximately $40,000 related to the increase in the average
price of gas sold. Volumes of oil and gas sold decreased 92
barrels and 36,268 Mcf, respectively, for the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. The decrease in volumes of gas sold resulted primarily
from normal declines in production due to diminished gas reserves
on two wells. Average oil and gas prices increased to $20.63 per
barrel and $2.17 per Mcf, respectively, for the nine months ended
September 30, 1997 from $20.57 per barrel and $1.91 per Mcf,
respectively, for the nine months ended September 30, 1996.
Oil and gas production expenses (including lease operating
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expenses and production taxes) decreased $10,200 (14.6%) for the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. This decrease resulted
primarily from (i) decreases in volumes of oil and gas sold
during the nine months ended September 30, 1997 as compared to
the nine months ended September 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 17.5% for the nine
months ended September 30, 1997 as compared to 18.9% for the nine
months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $16,446 (32.0%) for the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. This decrease resulted primarily from (i) decreases in
volumes of oil and gas sold during the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996 and (ii) upward revisions in the estimates of remaining
oil and gas reserves at December 31, 1996. As a percentage of
oil and gas sales, this expense decreased to 10.2% for the nine
months ended September 30, 1997 from 13.8% for the nine months
ended September 30, 1996. This percentage decrease was primarily
due to the dollar decrease in depreciation, depletion, and
amortization discussed above and the increase in the average
price of gas sold during the nine months ended September 30, 1997
as compared to the nine months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses increased to 12.8% for the nine months
ended September 30, 1997 from 11.3% for the nine months ended
September 30, 1996. This percentage increase was primarily due
to the decrease in oil and gas sales discussed above.
1979-2 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $215,050 $163,074
Oil and gas production expenses $ 32,415 $ 28,219
Barrels produced 395 369
Mcf produced 90,213 75,405
Average price/Bbl $ 19.26 $ 22.39
Average price/Mcf $ 2.30 $ 2.05
As shown in the table above, total oil and gas sales increased
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$51,976 (31.9%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
increase, approximately $30,000 and $23,000, respectively, were
related to increases in both the volumes and average price of gas
sold. Volumes of oil and gas sold increased 26 barrels and
14,808 Mcf, respectively, for the three months ended September
30, 1997 as compared to the three months ended September 30,
1996. The increase in volumes of gas sold resulted primarily
from (i) a positive prior period volume adjustment made by the
purchaser on one well during the three months ended September 30,
1997 and (ii) increased production on another well due to the
installation of a new compressor during the three months ended
September 30, 1997. Average oil prices decreased to $19.26 per
barrel for the three months ended September 30, 1997 from $22.39
per barrel for the three months ended September 30, 1996.
Average gas prices increased to $2.30 per Mcf for the three
months ended September 30, 1997 from $2.05 per Mcf for the three
months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $4,196 (14.9%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This increase resulted
primarily from (i) increases in volumes of oil and gas sold for
the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996 and (ii) an increase in
production taxes associated with the increases in oil and gas
sales discussed above, partially offset by decreased compression
expenses on one well during the three months ended September 30,
1997. As a percentage of oil and gas sales, these expenses
decreased to 15.1% for the three months ended September 30, 1997
from 17.3% for the three months ended September 30, 1996. This
percentage decrease was primarily due to the increase in the
average price of gas sold during the three months ended September
30, 1997 as compared to the three months ended September 30,
1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $1,686 (5.9%) for the three months ended
September 30, 1997 as compared to the three months ended
September 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 increases in volumes of
oil and gas sold during the three months ended September 30, 1997
as compared to the three months ended September 30, 1996. As a
percentage of oil and gas sales, this expense decreased to 12.5%
for the three months ended September 30, 1997 from 17.5% for the
three months ended September 30, 1996. This percentage decrease
was primarily due to the increase in the average price of gas
sold during the three months ended September 30, 1997 as compared
to the three months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1997 as compared to the
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three months ended September 30, 1996. As a percentage of oil
and gas sales, these expenses decreased to 4.3% for the three
months ended September 30, 1997 from 5.5% for the three months
ended September 30, 1996. This percentage decrease was primarily
due to the increase in oil and gas sales discussed above.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
------------------------------
1997 1996
-------- --------
Oil and gas sales $574,303 $489,802
Oil and gas production expenses $ 92,493 $ 82,649
Barrels produced 957 1,034
Mcf produced 232,829 224,443
Average price/Bbl $ 20.75 $ 20.27
Average price/Mcf $ 2.38 $ 2.09
As shown in the table above, total oil and gas sales increased
$84,501 (17.3%) for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
increase, approximately $18,000 and $68,000, respectively, were
related to increases in both the volumes and average price of gas
sold. Volumes of oil sold decreased 77 barrels while volumes of
gas sold increased 8,386 Mcf for the nine months ended September
30, 1997 as compared to the nine months ended September 30, 1996.
Average oil and gas prices increased to $20.75 per barrel and
$2.38 per Mcf, respectively, for the nine months ended September
30, 1997 from $20.27 per barrel and $2.09 per Mcf, respectively,
for the nine months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $9,844 (11.9%) for the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. This increase resulted
primarily from (i) increases in volumes of gas sold during the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996 and (ii) an increase in
production taxes associated with the increase in oil and gas
sales discussed above. As a percentage of oil and gas sales,
these expenses remained relatively constant at 16.1% for the nine
months ended September 30, 1997 as compared to 16.9% for the nine
months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties remained relatively constant for the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. As a percentage of oil and gas sales, this expense
decreased to 14.9% for the nine months ended September 30, 1997
from 17.5% for the nine months ended September 30, 1996. This
percentage decrease was primarily due to the increases in the
average prices of oil and gas sold during the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
-17-
<PAGE>
<PAGE>
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses decreased to 5.7% for the nine months
ended September 30, 1997 from 6.4% for the nine months ended
September 30, 1996. This percentage decrease was primarily due
to the increase in oil and gas sales discussed above.
-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 1979-1
Program's financial statements as of September 30,
1997 and for the nine months ended September 30,
1997, filed herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the 1979-2
Program's financial statements as of September 30,
1997 and for the nine months ended September 30,
1997, filed herewith.
All other exhibits are omitted as inapplicable.
(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: November 4, 1997 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: November 4, 1997 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
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
September 30, 1997 and for the nine months ended September
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
September 30, 1997 and for the nine months ended September
30, 1997, 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 33,681
<SECURITIES> 0
<RECEIVABLES> 66,426
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 100,107
<PP&E> 20,435,166
<DEPRECIATION> 20,229,135
<TOTAL-ASSETS> 357,095
<CURRENT-LIABILITIES> 15,485
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 307,778
<TOTAL-LIABILITY-AND-EQUITY> 357,095
<SALES> 341,272
<TOTAL-REVENUES> 343,767
<CGS> 0
<TOTAL-COSTS> 138,474
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 205,293
<INCOME-TAX> 0
<INCOME-CONTINUING> 205,293
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 205,293
<EPS-PRIMARY> 64.72
<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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 177,160
<SECURITIES> 0
<RECEIVABLES> 119,400
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 296,560
<PP&E> 18,558,735
<DEPRECIATION> 18,279,416
<TOTAL-ASSETS> 626,436
<CURRENT-LIABILITIES> 50,620
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 569,503
<TOTAL-LIABILITY-AND-EQUITY> 626,436
<SALES> 574,303
<TOTAL-REVENUES> 580,873
<CGS> 0
<TOTAL-COSTS> 210,850
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 370,023
<INCOME-TAX> 0
<INCOME-CONTINUING> 370,023
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 370,023
<EPS-PRIMARY> 128.08
<EPS-DILUTED> 0
</TABLE>
