<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended Commission File Number
June 30, 1995 2-65186-03 (1980-1)
2-65186-04 (1980-2)
DYCO 1980 OIL AND GAS PROGRAMS
(TWO LIMITED PARTNERSHIPS)
(Exact Name of Registrant as specified in its charter)
41-1378908 (1980-1)
Minnesota 41-1385165 (1980-2)
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or organization) Number)
Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103
-------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(918) 583-1791
--------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
----- -----
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1995 1994
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $178,022 $ 71,555
Accrued oil and gas sales, including
$72,969 and $66,054 due from
related parties (Note 2) . . . . . . 85,189 75,516
-------- --------
Total current assets . . . . . . . $263,211 $147,071
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 477,237 542,055
DEFERRED CHARGE . . . . . . . . . . . . . 121,919 121,919
-------- --------
$862,367 $811,045
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 54,510 $ 47,747
Gas imbalance payable . . . . . . . . 15,866 15,866
-------- --------
Total current liabilities . . . . . $ 70,376 $ 63,613
ACCRUED LIABILITY . . . . . . . . . . . . 26,525 26,525
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
40 units . . . . . . . . . . . . . . 7,655 7,209
Limited Partners, issued and outstanding,
4,000 units . . . . . . . . . . . . 757,811 713,698
-------- --------
Total Partners' capital . . . . . . $765,466 $720,907
-------- --------
$862,367 $811,045
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$132,053 and $204,186 of sales
to related parties (Note 2) . . . . $149,300 $213,733
Interest . . . . . . . . . . . . . . . 1,905 1,330
-------- --------
$151,205 $215,063
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 61,244 $ 39,179
Depreciation, depletion, and amortization
of oil and gas properties . . . . . 42,551 49,981
General and administrative (Note 2) . 18,333 15,475
-------- --------
$122,128 $104,635
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 29,077 $110,428
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 291 $ 1,104
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 28,786 $109,324
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 7 $ 27
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 4,040 4,040
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$240,139 and $331,620 of sales
to related parties (Note 2) . . . . $287,806 $353,070
Interest . . . . . . . . . . . . . . . 3,103 1,851
-------- --------
$290,909 $354,921
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $127,260 $ 97,746
Depreciation, depletion, and amortization of
oil and gas properties . . . . . . . 80,672 76,340
General and administrative (Note 2) . 38,418 34,351
-------- --------
$246,350 $208,437
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 44,559 $146,484
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 446 $ 1,465
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 44,113 $145,019
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 11 $ 36
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 4,040 4,040
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . $ 44,559 $146,484
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . . 80,672 76,340
(Increase) decrease in accrued oil and
gas sales . . . . . . . . . . . . . ( 9,673) 17,593
Increase in accounts payable . . . . 6,763 19,665
-------- --------
Net cash provided by operating
activities $122,321 $260,082
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($ 15,854) ($ 17,540)
-------- --------
Net cash used by investing activities ($ 15,854) ($ 17,540)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . $ - ($222,200)
-------- --------
Net cash used by financing activities $ - ($222,200)
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS $106,467 $ 20,342
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 71,555 56,460
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $178,022 $ 76,802
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1995 1994
-----------------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $131,314 $105,287
Accrued oil and gas sales, including
$68,344 and $83,013 due from
related parties (Note 2) . . . . . . 113,957 90,036
-------- --------
Total current assets . . . . . . . $245,271 $195,323
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 486,665 571,506
DEFERRED CHARGE . . . . . . . . . . . . . 95,034 95,034
-------- --------
$826,970 $861,863
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 60,382 $ 48,828
Gas imbalance payable . . . . . . . . 17,488 17,488
-------- --------
Total current liabilities . . . . . $ 77,870 $ 66,316
ACCRUED LIABILITY . . . . . . . . . . . . 48,916 48,916
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
59 units . . . . . . . . . . . . . . 7,002 7,467
Limited Partners, issued and outstanding,
5,000 units . . . . . . . . . . . . 693,182 739,164
-------- --------
Total Partners' capital . . . . . . $700,184 $746,631
-------- --------
$826,970 $861,863
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$137,899 and $234,331 of sales
to related parties (Note 2) . . . . $210,882 $243,917
Interest . . . . . . . . . . . . . . . 2,403 1,403
-------- --------
$213,285 $245,320
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 91,377 $ 47,694
Depreciation, depletion, and amortization of
oil and gas properties . . . . . . . 58,686 56,713
General and administrative (Note 2) . 26,732 23,030
-------- --------
$176,795 $127,437
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 36,490 $117,883
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 365 $ 1,179
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 36,125 $116,704
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 7 $ 23
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 5,059 5,059
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$270,394 and $394,628 of sales
to related parties (Note 2) . . . . $375,975 $411,691
Interest . . . . . . . . . . . . . . . 4,057 3,006
-------- --------
$380,032 $414,697
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $167,023 $118,575
Depreciation, depletion, and amortization
of oil and gas properties . . . . . . 102,588 88,780
General and administrative (Note 2) . 55,688 50,424
-------- --------
$325,299 $257,779
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 54,733 $156,918
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 547 $ 1,569
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 54,186 $155,349
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 11 $ 31
======== ========
UNITS OUTSTANDING . . . . . . . . . . . . 5,059 5,059
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . $ 54,733 $156,918
Adjustments to reconcile net income to
net cash provided (used) by operating
activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . 102,588 88,780
(Increase) decrease in accrued oil and
gas sales . . . . . . . . . . . . . ( 23,921) 10,823
Increase in accounts payable . . . . 11,554 19,913
Decrease in related party payable . - ( 535,722)
-------- --------
Net cash provided (used) by operating
activities . . . . . . . . . . . $144,954 ($259,288)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($ 17,747) ($ 18,270)
Retirements of oil and gas properties - 364
-------- --------
Net cash used by investing activities ($ 17,747) ($ 17,906)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . ($101,180) ($303,540)
-------- --------
Net cash used by financing activities ($101,180) ($303,540)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . $ 26,027 ($580,734)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 105,287 708,751
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $131,314 $128,017
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1995, statements of
operations for the three and six months ended June 30, 1995
and 1994, and statements of cash flows for the six months
ended June 30, 1995 and 1994 have been prepared by Dyco
Petroleum Corporation ("Dyco"), the General Partner of the
Dyco Oil and Gas Program 1980-1 and 1980-2 Limited
Partnerships (individually, the "1980-1 Program" or the "1980-
2 Program", as the case may be, or, collectively the
"Programs"), without audit. In the opinion of management all
adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position at June 30,
1995, results of operations for the three and six months ended
June 30, 1995 and 1994, and changes in cash flows for the six
months ended June 30, 1995 and 1994 have been made.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto
included in the Programs' Annual Report on Form 10-K for the
year ended December 31, 1994. The results of operations for
the period ended June 30, 1995 are not necessarily indicative
of the results to be expected for the full year.
The limited partners' net income or loss per unit is based
upon each $5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost
method of accounting. All productive and non-productive costs
associated with the acquisition, exploration and development
of oil and gas reserves are capitalized. Sales and
abandonments of properties are accounted for as adjustments of
capitalized costs with no gain or loss recognized, unless such
adjustments would significantly alter the relationship between
capitalized costs and proved oil and gas reserves.
The provision for depreciation, depletion, and amortization of
oil and gas properties is calculated by dividing the oil and
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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.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each of the Program's partnership
agreement, Dyco is entitled to receive a reimbursement for all
direct expenses and general and administrative, geological and
engineering expenses it incurs on behalf of the Program.
During the six months ended June 30, 1995 and 1994 the 1980-1
Program incurred such expenses totaling $38,418 and $34,351,
respectively, of which $28,044 and $28,044 were paid to Dyco.
During the six months ended June 30, 1995 and 1994 the 1980-2
Program incurred such expenses totaling $55,688 and $50,424,
respectively, of which $42,810 and $42,810 were paid to Dyco.
Affiliates of the Programs are the operators of certain of the
Programs' properties and their policy is to bill the Programs
for all customary charges and cost reimbursements associated
with their activities, together with any compressor rentals,
consulting, or other services provided.
The Programs sell gas at market prices to Premier Gas Company
("Premier"), an affiliated company, and Premier may then
resell such gas to third parties at market prices. During the
six months ended June 30, 1995 and 1994 these sales for the
1980-1 Program totaled $240,139 and $331,620 respectively. At
June 30, 1995 accrued oil and gas sales for the 1980-1 Program
included $72,969 due from Premier. During the six months
ended June 30, 1995 and 1994 these sales for the 1980-2
Program totaled $270,394 and $394,628, respectively. At June
30, 1995 accrued oil and gas sales for the 1980-2 Program
included $68,344 due from Premier.
3. CONTINGENCIES
-------------
On November 12, 1992, certain adjacent landowners filed a
lawsuit against Dyco and others in which the plaintiffs
alleged damages to their land as a result of remediation
operations conducted on one of the 1980-1 and the 1980-2
Program's wells. The lawsuit alleged claims based on
negligence, private nuisance, public nuisance, trespass,
unjust enrichment, constructive fraud, and permanent
injunctive relief, all in amounts to be determined at trial.
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A trial was conducted in the matter on February 22, 1994 in
which the jury entered a verdict in favor of the plaintiffs in
the amount of approximately $5.5 million, consisting of
approximately $2.7 million in actual damages and approximately
$2.7 million in punitive damages. The 1980-1 and 1980-2
Program's share of such verdict is approximately $123,000 and
$128,000, respectively, in actual damages and approximately
$23,000 and $23,500, respectively, in punitive damages. Dyco
is presently appealing the matter.
On October 15, 1993, certain royalty owners filed a class
action lawsuit against Dyco in which the plaintiffs alleged
entitlement to a share of the proceeds of a take-or-pay
settlement with a gas purchaser which involved three of the
1980-1 and 1980-2 Program's wells. The lawsuit also alleges
claims based on unjust enrichment, breach of contract, and
breach of fiduciary obligations and seeks an accounting and
declaration that the plaintiffs are third party beneficiaries
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. The district court certified the matter as a
class action on January 21, 1994 and discovery is proceeding
in the matter. On November 29, 1994, the plaintiffs filed a
motion for summary judgment. Dyco 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 1980-1 and
1980-2 Programs from this lawsuit.
On October 26, 1993, certain royalty owners filed a class
action lawsuit against Dyco in which the plaintiffs alleged
entitlement to a share of the proceeds of a take-or-pay
settlement with a gas purchaser which involved four of the
1980-1 and 1980-2 Program's wells. The lawsuit also alleges
claims based on unjust enrichment, breach of contract, and
breach of fiduciary obligations and seeks an accounting and
declaration that the plaintiffs are third party beneficiaries
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. The district court certified the matter as a
class action on January 18, 1994 and discovery is proceeding
in the matter. On November 29, 1994, the plaintiffs filed a
motion for summary judgment. Dyco 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 1980-1 and
1980-2 Programs from this lawsuit.
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On December 18, 1992, a royalty owner filed a quiet title
action alleging that the operator of certain wells in which
the 1980-1 and 1980-2 Programs has an interest failed to
exercise due diligence in locating the owner while in the
process of force pooling the drilling and spacing unit.
Plaintiff claimed a right to revenues attributable to
production from said wells in an amount in excess of $500,000
and further alleged conversion and claimed a right to
"interest" on the proceeds from production on the four wells
pursuant to 52 O.S. Sec. 540. The defendants filed a counterclaim
for quiet title and asserted various defenses. A trial was
held in the matter on March 3 and 4, 1994 in which the
district court ruled against all defendants and specifically
found that the operator, Apache Corporation, did not exercise
due diligence in the pooling proceedings. Judgment was
entered on June 15, 1994 in the amount of $550,000 plus
interest. The defendants have appealed the district court's
ruling, which appeal is currently pending.
On March 18, 1993, a royalty owner filed a lawsuit against
Dyco in which the plaintiff alleged entitlement to a share of
the proceeds of a take-or-pay settlement with a gas purchaser
which involved one of the 1980-1 Program's wells. Plaintiff
is seeking a full accounting, unpaid royalties, and his share
of benefits from the gas purchase contract as a third party
beneficiary. The plaintiff has not quantified the amount of
his alleged damages. Dyco has filed its answer in the matter
in which it denied all of the Plaintiff's allegations.
Discovery is proceeding in the matter. The plaintiffs filed a
motion for summary judgment on November 29, 1994 which is
currently pending before the court. Dyco 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 1980-1
Program from this lawsuit.
Included in these financial statements as of June 30, 1995 is
an accrual by the General Partner of $40,000 representing the
Program's share of estimated ultimate damages resulting from
the above mentioned contingencies.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
Net proceeds from the Programs' operations less necessary
operating capital are distributed to investors on a
quarterly basis. The net proceeds from production are not
reinvested in productive assets, except to the extent that
producing wells are improved or where methods are employed
to permit more efficient recovery of the Programs' reserves
which would result in a positive economic impact.
The Programs' available capital from subscriptions has been
spent on oil and gas drilling activities. There should not
be any further material capital resource commitments in the
future. The Programs have no bank debt commitments. Cash
for operational purposes will be provided by current oil and
gas production.
RESULTS OF OPERATIONS
---------------------
1980-1 PROGRAM
THREE MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED JUNE 30, 1994.
Three months ended June 30,
---------------------------
1995 1994
---- ----
Oil and gas sales $149,300 $213,733
Oil and gas production expenses $ 61,244 $ 39,179
Barrels produced 667 604
Mcf produced 101,397 114,222
Average price/Bbl $ 17.96 $ 15.81
Average price/Mcf $ 1.35 $ 1.79
As shown in the table, oil and natural gas sales decreased
30.1% for the three months ended June 30, 1995 as compared
to the three months ended June 30, 1994. This decrease
resulted primarily from a decrease in the volumes of natural
gas sold and a decrease in the average price of natural gas
sold, partially offset by an increase in the average price
of oil sold. Volumes of natural gas sold decreased 12,825
Mcf while volumes of oil sold increased slightly by 63
barrels for the three months ended June 30, 1995 as compared
to the three months ended June 30, 1994. This decrease in
the volumes of natural gas sold was primarily a result of
positive prior period volume adjustments from purchasers on
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two of the 1980-1 Program's wells during the three months
ended June 30, 1994. Average natural gas prices decreased
to $1.35 per Mcf for the three months ended June 30, 1995
from $1.79 per Mcf for the three months ended June 30, 1994,
while average oil prices increased to $17.96 per barrel for
the three months ended June 30, 1995 from $15.81 per barrel
for the three months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $22,065 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This increase was primarily due
to significant workover charges on one of the 1980-1
Program's wells during the three months ended June 30, 1995
to improve the recovery of reserves. As a percentage of oil
and gas sales, these expenses increased to 41.0% for the
three months ended June 30, 1995 from 18.3% for the three
months ended June 30, 1994. This percentage increase
resulted primarily from the dollar increase in production
expenses related to workover charges as discussed above and
the decrease in the average price of natural gas sold during
the three months ended June 30, 1995 as compared to the
three months ended June 30, 1994, partially offset by an
increase in the average price of oil sold for the three
months ended June 30, 1995 as compared to the similar period
in 1994.
Depreciation, depletion, and amortization of oil and gas
properties decreased $7,430 for the three months ended June
30, 1995 as compared to the three months ended June 30,
1994. This decrease was consistent with the decrease in the
volumes of natural gas sold during the three months ended
June 30, 1995 as compared to the three months ended June 30,
1994. As a percentage of oil and gas sales, this expense
increased to 28.5% for the three months ended June 30, 1995
compared to 23.4% for the three months ended June 30, 1994.
This percentage increase was primarily due to the decrease
in the average price of natural gas sold, partially offset
by an increase in the average price of oil sold for the
three months ended June 30, 1995 as compared to the similar
period in 1994.
General and administrative expenses increased $2,858 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This dollar increase resulted
primarily from an increase in the 1980-1 Program's
professional fees during the three months ended June 30,
1995 as compared to the three months ended June 30, 1994.
As a percentage of oil and gas sales, these expenses
increased to 12.3% for the three months ended June 30, 1995
from 7.2% for the three months ended June 30, 1994. This
percentage increase was primarily due to the decrease in the
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average price of natural gas sold during the three months
ended June 30, 1995 as compared to the three months ended
June 30, 1994, partially offset by an increase in the
average price of oil sold for the three months ended June
30, 1995 as compared to the similar period in 1994.
SIX MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1994.
Six months ended June 30,
--------------------------
1995 1994
----- -----
Oil and gas sales $287,806 $353,070
Oil and gas production expenses $127,260 $ 97,746
Barrels produced 1,338 1,392
Mcf produced 199,930 178,054
Average price/Bbl $ 17.34 $ 15.41
Average price/Mcf $ 1.32 $ 1.86
As shown in the table, oil and natural gas sales decreased
18.5% for the six months ended June 30, 1995 as compared to
the six months ended June 30, 1994. This decrease resulted
primarily from a decrease in the average price of natural
gas sold, partially offset by an increase in the volumes of
natural gas sold and an increase in the average price of oil
sold. Volumes of natural gas sold increased 21,876 Mcf
while volumes of oil sold remained relatively constant
during the six months ended June 30, 1995 as compared to the
six months ended June 30, 1994. The increase in the volumes
of natural gas sold was primarily due to workovers in the
prior year on several of the 1980-1 Program's wells which
significantly increased the production capabilities on each
of these wells during the six months ended June 30, 1995 as
compared to the six months ended June 30, 1994. Average
natural gas prices decreased to $1.32 per Mcf for the six
months ended June 30, 1995 from $1.86 per Mcf for the six
months ended June 30, 1994, while average oil prices
increased to $17.34 per barrel for the six months ended June
30, 1995 from $15.41 per barrel for the six months ended
-16-
<PAGE>
<PAGE>
June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $29,514 for the six
months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This increase was primarily due to
significant workover charges on one of the 1980-1 Program's
wells during the six months ended June 30, 1995 to improve
recovery of reserves and an accrual for certain litigation
costs during the six months ended June 30, 1994. As a
percentage of oil and gas sales, these expenses increased to
44.2% for the six months ended June 30, 1995 from 27.7% for
the six months ended June 30, 1994. This percentage
increase resulted primarily from the decrease in the average
price of natural gas sold, partially offset by the increase
in the average price of oil sold during the six months ended
June 30, 1995 as compared to the six months ended June 30,
1994.
Depreciation, depletion, and amortization of oil and gas
properties increased $4,332 for the six months ended June
30, 1995 as compared to the six months ended June 30, 1994.
This increase was consistent with the increase in volumes of
natural gas sold during the six months ended June 30, 1995
as compared to the six months ended June 30, 1994. As a
percentage of oil and gas sales, this expense increased to
28.0% for the six months ended June 30, 1995 compared to
21.6% for the six months ended June 30, 1994. This
percentage increase was primarily due to the decrease in the
average price of natural gas sold, partially offset by an
increase in the average price of oil sold for the six months
ended June 30, 1995 as compared to the similar period in
1994.
General and administrative expenses increased $4,067 for the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This dollar increase resulted
primarily from an increase in the 1980-1 Program's
professional fees during the six months ended June 30, 1995
as compared to the six months ended June 30, 1994. As a
percentage of oil and gas sales, these expenses increased to
13.3% for the six months ended June 30, 1995 from 9.7% for
the six months ended June 30, 1994. This percentage
-17-
<PAGE>
<PAGE>
increase was primarily due to the decrease in the average
price of natural gas sold, partially offset by an increase
in the average price of oil sold for the six months ended
June 30, 1995 as compared to the six months ended June 30,
1994.
1980-2 PROGRAM
THREE MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED JUNE 30, 1994.
Three months ended June 30,
---------------------------
1995 1994
---- -----
Oil and gas sales $210,882 $243,917
Oil and gas production expenses $ 91,377 $ 47,694
Barrels produced 539 628
Mcf produced 154,732 140,173
Average price/Bbl $ 18.32 $ 15.26
Average price/Mcf $ 1.30 $ 1.67
As shown in the table, oil and natural gas sales decreased
13.5% for the three months ended June 30, 1995 as compared
to the three months ended June 30, 1994. This decrease
resulted from a decrease in the average price of natural gas
sold and a decrease in the barrels of oil sold, partially
offset by an increase in the volumes of natural gas sold and
an increase in the average price of oil sold for the three
months ended June 30, 1995 as compared to the three months
ended June 30, 1994. Volumes of natural gas sold increased
14,559 Mcf while volumes of oil sold decreased 89 barrels
for the three months ended June 30, 1995 as compared to the
three months ended June 30, 1994. This increase in the
volumes of natural gas sold was primarily due to workovers
in the prior year on several of the 1980-2 Program's wells
which significantly increased the production capabilities on
each of these wells during the three months ended June 30,
1995. Average natural gas prices decreased to $1.30 per Mcf
for the three months ended June 30, 1995 from $1.67 per Mcf
for the three months ended June 30, 1994, while average oil
prices increased to $18.32 per barrel for the three months
ended June 30, 1995 from $15.26 per barrel for the three
months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $43,683 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This increase was primarily due
to significant workover charges on two of the 1980-2
Program's wells during the three months ended June 30, 1995
to improve the recovery of reserves. As a percentage of oil
and gas sales, these expenses increased to 43.3% for the
-18-
<PAGE>
<PAGE>
three months ended June 30, 1995 from 20.0% for the three
months ended June 30, 1994. This percentage increase
resulted primarily from the dollar increase in production
expenses related to workover charges as discussed above and
the decrease in the average price of natural gas sold,
partially offset by an increase in the average price of oil
sold for the three months ended June 30, 1995 as compared to
the three months ended June 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties increased slightly by $1,973 for the three months
ended June 30, 1995 as compared to the three months ended
June 30, 1994. This increase was consistent with the
increase in the volume of natural gas sold during the three
months ended June 30, 1995 as compared to the three months
ended June 30, 1994. As a percentage of oil and gas sales,
this expense increased to 27.8% for the three months ended
June 30, 1995 compared to 23.3% for the three months ended
June 30, 1994. This percentage increase was primarily due
to the decrease in the average price of natural gas sold,
partially offset by the increase in the average price of oil
sold during the three months ended June 30, 1995 as compared
to the three months ended June 30, 1994.
General and administrative expenses increased $3,702 for the
three months ended June 30, 1995 as compared to the three
months ended June 30, 1994. This dollar increase resulted
primarily from an increase in the 1980-2 Program's
professional fees during the three months ended June 30,
1995 as compared to the three months ended June 30, 1994.
As a percentage of oil and gas sales, these expenses
increased to 12.7% for the three months ended June 30, 1995
from 9.4% for the three months ended June 30, 1994. This
percentage increase was primarily due to the decrease in the
average price of natural gas sold, partially offset by an
increase in the average price of oil sold for the three
months ended June 30, 1995 as compared to the three months
ended June 30, 1994.
-19-
<PAGE>
<PAGE>
SIX MONTHS ENDED JUNE 30, 1995 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1994.
Six months ended June 30
-------------------------
1995 1994
---- ----
Oil and gas sales $375,975 $411,691
Oil and gas production expenses $167,023 $118,575
Barrels produced 1,100 1,096
Mcf produced 290,593 226,694
Average price/Bbl $ 17.89 $ 15.57
Average price/Mcf $ 1.23 $ 1.74
As shown in the table, oil and natural gas sales decreased
8.7% for the six months ended June 30, 1995 as compared to
the six months ended June 30, 1994. This decrease resulted
primarily from a decrease in the average price of natural
gas sold, partially offset by an increase in the volumes of
natural gas sold and an increase in the average price of oil
sold during the six months ended June 30, 1995 as compared
to the six months ended June 30, 1994. Volumes of natural
gas sold increased 63,899 Mcf while barrels of oil sold
remained relatively constant during the six months ended
June 30, 1995 as compared to the six months ended June 30,
1994. This increase in the volumes of natural gas sold was
primarily due to workovers in the prior year on several of
the 1980-2 Program's wells which significantly increased the
production capabilities on each of these wells during the
six months ended June 30, 1995. Average natural gas prices
decreased to $1.23 per Mcf for the six months ended June 30,
1995 from $1.74 per Mcf for the six months ended June 30,
1994, while average oil prices increased to $17.89 per
barrel for the six months ended June 30, 1995 from $15.57
per barrel for the six months ended June 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $48,448 for the six
months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This increase was primarily due to
significant workover charges on two of the 1980-2 Program's
wells during the six months ended June 30, 1995 to improve
recovery of reserves and an accrual for certain litigation
costs during the six months ended June 30, 1994. As a
percentage of oil and gas sales, these expenses increased to
44.4% for the six months ended June 30, 1995 from 28.8% for
the six months ended June 30, 1994. This percentage
increase resulted primarily from the dollar increase in
production expenses related to workover charges as discussed
above and the decrease in the average price of natural gas
sold during the six months ended June 30, 1995 as compared
to the six months ended June 30, 1994.
-20-
<PAGE>
<PAGE>
Depreciation, depletion, and amortization of oil and gas
properties increased $13,808 for the six months ended June
30, 1995 as compared to the six months ended June 30, 1994.
This increase was consistent with the increase in volumes of
natural gas sold during the six months ended June 30, 1995
as compared to the six months ended June 30, 1994. As a
percentage of oil and gas sales, this expense increased to
27.3% for the six months ended June 30, 1995 compared to
21.6% for the six months ended June 30, 1994. This
percentage increase was primarily due to the decrease in the
average price of natural gas sold during the six months
ended June 30, 1995 as compared to the similar period in
1994.
General and administrative expenses increased $5,264 for the
six months ended June 30, 1995 as compared to the six months
ended June 30, 1994. This dollar increase resulted
primarily from an increase in the 1980-2 Program's
professional fees during the six months ended June 30, 1995
as compared to the six months ended June 30, 1994. As a
percentage of oil and gas sales, these expenses increased to
14.8% for the six months ended June 30, 1995 from 12.2% for
the six months ended June 30, 1994. This percentage
increase was primarily due to the decrease in the average
price of natural gas sold, partially offset by an increase
in the volumes of natural gas sold during the six months
ended June 30, 1995 as compared to the six months ended June
30, 1994.
-21-
<PAGE>
<PAGE>
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
-22-
<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 1980-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: August 10, 1995 By: /s/Dennis R. Neill
-------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: August 10, 1995 By: /s/Patrick M. Hall
----------------------------
(Signature)
Patrick M. Hall
Senior Vice President -
Controller; Principal
Accounting Officer
-23-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806576
<NAME> DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 178,022
<SECURITIES> 0
<RECEIVABLES> 85,189
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 263,211
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 862,367
<CURRENT-LIABILITIES> 70,376
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 765,466
<TOTAL-LIABILITY-AND-EQUITY> 862,367
<SALES> 287,806
<TOTAL-REVENUES> 290,909
<CGS> 0
<TOTAL-COSTS> 246,350
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 44,559
<INCOME-TAX> 0
<INCOME-CONTINUING> 44,559
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 44,559
<EPS-PRIMARY> 11.00
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806577
<NAME> DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 131,314
<SECURITIES> 0
<RECEIVABLES> 113,957
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 245,271
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 826,970
<CURRENT-LIABILITIES> 77,870
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 700,184
<TOTAL-LIABILITY-AND-EQUITY> 826,970
<SALES> 375,975
<TOTAL-REVENUES> 380,032
<CGS> 0
<TOTAL-COSTS> 325,299
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 54,733
<INCOME-TAX> 0
<INCOME-CONTINUING> 54,733
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 54,733
<EPS-PRIMARY> 11.00
<EPS-DILUTED> 0
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