<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
September 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
September 30, December 31,
1995 1994
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 20,809 $ 71,555
Accrued oil and gas sales, including
$47,363 and $66,054 due from
related parties (Note 2) . . . . . . 56,858 75,516
-------- --------
Total current assets . . . . . . . $ 77,667 $147,071
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 662,381 542,055
DEFERRED CHARGE . . . . . . . . . . . . . 121,919 121,919
-------- --------
$861,967 $811,045
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 50,243 $ 47,747
Gas imbalance payable . . . . . . . . 15,866 15,866
-------- --------
Total current liabilities . . . . . $ 66,109 $ 63,613
ACCRUED LIABILITY . . . . . . . . . . . . 26,525 26,525
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
40 units . . . . . . . . . . . . . . 7,693 7,209
Limited Partners, issued and outstanding,
4,000 units . . . . . . . . . . . . 761,640 713,698
-------- --------
Total Partners' capital . . . . . . $769,333 $720,907
-------- --------
$861,967 $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 SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$72,017 and $126,860 of sales
to related parties (Note 2) . . . . $ 86,910 $130,432
Interest . . . . . . . . . . . . . . . 1,380 823
-------- --------
$ 88,290 $131,255
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $ 35,996 $ 58,737
Depreciation, depletion, and amortization
of oil and gas properties . . . . . . . 33,138 21,491
General and administrative (Note 2) . 15,289 15,854
-------- --------
$ 84,423 $ 96,082
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 3,867 $ 35,173
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 38 $ 352
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 3,829 $ 34,821
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 1 $ 9
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$312,156 and $458,480 of sales
to related parties (Note 2) . . . . $374,716 $483,502
Interest . . . . . . . . . . . . . . . 4,483 2,674
-------- --------
$379,199 $486,176
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $163,256 $156,483
Depreciation, depletion, and amortization
of oil and gas properties . . . . . . . 113,810 97,831
General and administrative (Note 2) . 53,707 50,205
-------- --------
$330,773 $304,519
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 48,426 $181,657
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 484 $ 1,817
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 47,942 $179,840
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 12 $ 45
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . $ 48,426 $181,657
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion, and amortization
of oil and gas properties . . . . . . 113,810 97,831
Decrease in accrued oil and gas sales 18,658 24,797
Increase in accounts payable . . . . 2,496 40,287
-------- --------
Net cash provided by operating
activities $183,390 $344,572
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($234,136) ($ 61,914)
-------- --------
Net cash used by investing activities ($234,136) ($ 61,914)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . $ - ($222,200)
-------- --------
Net cash used by financing activities $ - ($222,200)
-------- --------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS . . . . . . . . . . . . . ($ 50,746) $ 60,458
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . . 71,555 56,460
-------- --------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD . . . . . . . . . . . . . . . . . . $ 20,809 $116,918
======== ========
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
September 30, December 31,
1995 1994
--------------------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . $ 26,552 $105,287
Accrued oil and gas sales, including
$50,628 and $83,013 due from
related parties (Note 2) . . . . . . 244,155 90,036
-------- --------
Total current assets . . . . . . . $270,707 $195,323
NET OIL AND GAS PROPERTIES, utilizing
the full cost method . . . . . . . . . 454,347 571,506
DEFERRED CHARGE . . . . . . . . . . . . . 95,034 95,034
-------- --------
$820,088 $861,863
======== ========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . $ 50,967 $ 48,828
Gas imbalance payable . . . . . . . . 17,488 17,488
-------- --------
Total current liabilities . . . . . $ 68,455 $ 66,316
ACCRUED LIABILITY . . . . . . . . . . . . 48,916 48,916
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and outstanding,
59 units . . . . . . . . . . . . . . 7,028 7,467
Limited Partners, issued and outstanding,
5,000 units . . . . . . . . . . . . 695,689 739,164
-------- --------
Total Partners' capital . . . . . . $702,717 $746,631
-------- --------
$820,088 $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 SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$56,190 and $130,104 of sales
to related parties (Note 2) . . . . $256,894 $147,608
Interest . . . . . . . . . . . . . . . 1,139 1,393
-------- --------
$258,033 $149,001
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $169,688 $ 65,417
Depreciation, depletion, and amortization
of oil and gas properties . . . . . . . 62,819 25,781
General and administrative (Note 2) . 22,993 23,641
-------- --------
$255,500 $114,839
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 2,533 $ 34,162
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 26 $ 342
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 2,507 $ 33,820
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ - $ 7
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
REVENUES:
Oil and gas sales, including
$326,584 and $524,732 of sales
to related parties (Note 2) . . . . $632,869 $559,299
Interest . . . . . . . . . . . . . . . 5,196 4,399
-------- --------
$638,065 $563,698
-------- --------
COSTS AND EXPENSES:
Oil and gas production . . . . . . . . $336,711 $183,992
Depreciation, depletion, and amortization
of oil and gas properties . . . . . . . 165,407 114,561
General and administrative (Note 2) . 78,681 74,065
-------- --------
$580,799 $372,618
-------- --------
NET INCOME . . . . . . . . . . . . . . . $ 57,266 $191,080
======== ========
GENERAL PARTNER (1%) - net income . . . . $ 573 $ 1,911
======== ========
LIMITED PARTNERS (99%) - net income . . . $ 56,693 $189,169
======== ========
NET INCOME PER UNIT . . . . . . . . . . . $ 11 $ 38
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(Unaudited)
1995 1994
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . . . . $ 57,266 $191,080
Adjustments to reconcile net income to net
cash provided (used) by operating
activities:
Depreciation, depletion, and amortiza-
tion of oil and gas properties . . . . 165,407 114,561
(Increase) decrease in accrued oil and
gas sales . . . . . . . . . . . . . ( 154,119) 26,618
Increase in deferred charge . . . . - ( 1,049)
Increase in accounts payable . . . . 2,139 39,934
Decrease in related party payable . - ( 535,722)
Decrease in gas imbalance payable . - ( 7,180)
-------- --------
Net cash provided (used) by operating
activities . . . . . . . . . . . $ 70,693 ($171,758)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties . ($ 48,248) ($ 78,023)
Retirements of oil and gas properties - 364
-------- --------
Net cash used by investing activities ($ 48,248) ($ 77,659)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions . . . . . . . . . . ($101,180) ($303,540)
-------- --------
Net cash used by financing activities ($101,180) ($303,540)
-------- --------
NET DECREASE IN CASH AND CASH EQUIVALENTS ($ 78,735) ($552,957)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD . . . . . . . . . . . . . . . . 105,287 708,751
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 26,552 $155,794
======== ========
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
SEPTEMBER 30, 1995
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheet as of September 30, 1995, statements of
operations for the three and nine months ended September 30, 1995
and 1994, and statements of cash flows for the nine months ended
September 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
September 30, 1995, results of operations for the three and nine
months ended September 30, 1995 and 1994, and changes in cash flows
for the nine months ended September 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 September
30, 1995 are not necessarily indicative of the results to be
expected for the full year.
The limited partners' net income or loss per unit is based upon
each $5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost method
of accounting. All productive and non-productive costs associated
with the acquisition, exploration and development of oil and gas
reserves are capitalized. Sales and abandonments of properties are
accounted for as adjustments of capitalized costs with no gain or
loss recognized, unless such adjustments would significantly alter
the relationship between capitalized costs and proved oil and gas
reserves.
The provision for depreciation, depletion, and amortization of oil
and gas properties is calculated by dividing the oil and gas sales
dollars during the year by the estimated future gross income from
the oil and gas properties and applying the resulting rate to the
net remaining costs of oil and gas properties that have been
capitalized, plus estimated future development costs.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
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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, 1995 and 1994 the 1980-1 Program incurred such
expenses totaling $15,289 and $15,854, respectively, of which
$14,022 and $14,022 were paid to Dyco. During the nine months
ended September 30, 1995 and 1994 the 1980-1 Program incurred such
expenses totaling $53,707 and $50,205, respectively, of which
$42,066 and $42,066 were paid to Dyco. During the three months
ended September 30, 1995 and 1994 the 1980-2 Program incurred such
expenses totaling $22,993 and $23,641, respectively, of which
$21,405 and $21,405 were paid to Dyco. During the nine months
ended September 30, 1995 and 1994 the 1980-2 Program incurred such
expenses totaling $78,681 and $74,065, respectively, of which
$64,215 and $64,215 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 three
months ended September 30, 1995 and 1994 these sales for the 1980-1
Program totaled $72,017 and $126,860, respectively. During the
nine months ended September 30, 1995 and 1994 these sales for the
1980-1 Program totaled $312,156 and $458,480 respectively. At
September 30, 1995 accrued oil and gas sales for the 1980-1 Program
included $47,363 due from Premier. During the three months ended
September 30, 1995 and 1994 these sales for the 1980-2 Program
totaled $56,190 and $130,104, respectively. During the nine months
ended September 30, 1995 and 1994 these sales for the 1980-2
Program totaled $326,584 and $524,732, respectively. At September
30, 1995 accrued oil and gas sales for the 1980-2 Program included
$50,628 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. 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
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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.
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 have 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. Section 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
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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 September 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. Over the last several years, the
domestic energy industry and the Programs have contended with
volatile, but generally low, oil and gas prices. Over the past
few years, the oil and gas market appears to have moved from
periods of relative stability in supply and demand to excess
supply or weakened demand. These trends have led to the
volatility in pricing and demand noted over the past years.
The Programs' available capital from subscriptions has been spent
on oil and gas drilling activities. There should not be any
further material capital resource commitments in the future. The
Programs have no bank debt commitments. Cash for operational
purposes will be provided by current oil and gas production.
RESULTS OF OPERATIONS
- ---------------------
1980-1 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1994.
Three months ended September 30,
--------------------------------
1995 1994
---- ----
Oil and gas sales $86,910 $130,432
Oil and gas production
expenses $35,996 $ 58,737
Barrels produced 817 882
Mcf produced 60,520 73,211
Average price/Bbl $ 18.23 $ 18.82
Average price/Mcf $ 1.19 $ 1.55
As shown in the table, oil and natural gas sales decreased 33.4%
for the three months ended September 30, 1995 as compared to the
three months ended September 30, 1994. This decrease resulted
primarily from decreases in both the volumes and average price of
natural gas sold during the three months ended September 30, 1995
as compared to the three months ended September 30, 1994.
Volumes of oil and natural gas sold decreased 65 barrels and
12,691 Mcf, respectively, for the three months ended September
30, 1995 as compared to the three months ended September 30,
1994. The decrease in the volumes of natural gas sold was
primarily a result of (i) a positive prior period volume
adjustment from a purchaser on one of the 1980-1 Program's wells
during the three months ended September 30, 1994 and (ii) a
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negative prior period volume adjustment from a purchaser on
another well during the three months ended September 30, 1995.
Average natural gas prices decreased to $1.19 per Mcf for the
three months ended September 30, 1995 from $1.55 per Mcf for the
three months ended September 30, 1994, while average oil prices
remained relatively constant for the three months ended September
30, 1995 as compared to the three months ended September 30,
1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $22,741 for the three
months ended September 30, 1995 as compared to the three months
ended September 30, 1994. This decrease was primarily due to an
accrual for certain litigation costs during the three months
ended September 30, 1994. As a percentage of oil and gas sales,
these expenses decreased to 41.4% for the three months ended
September 30, 1995 from 45.0% for the three months ended
September 30, 1994. This percentage decrease resulted primarily
from the dollar decrease in production expenses as discussed
above, partially offset by the decreases in the average prices
and volumes of natural gas sold during the three months ended
September 30, 1995 as compared to the three months ended
September 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties increased $11,647 for the three months ended September
30, 1995 as compared to the three months ended September 30,
1994. This increase was primarily the result of an increase in
oil and gas properties subject to amortization due to recent
recompletion and workover activities on an existing well in order
to improve the future recovery of reserves. As a percentage of
oil and gas sales, this expense increased to 38.1% for the three
months ended September 30, 1995 as compared to 16.5% for the
three months ended September 30, 1994. This percentage increase
resulted primarily from (i) the dollar increase in depreciation,
depletion, and amortization expense as discussed above and (ii)
the decrease in the average price of natural gas sold for the
three months ended September 30, 1995 as compared to the three
months ended September 30, 1994.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1995 as compared to the
three months ended September 30, 1994. As a percentage of oil
and gas sales, these expenses increased to 17.6% for the three
months ended September 30, 1995 from 12.2% for the three months
ended September 30, 1994. This percentage increase was primarily
due to the decrease in the volumes and average price of natural
gas sold during the three months ended September 30, 1995 as
compared to the three months ended September 30, 1994.
NINE MONTHS ENDED SEPTEMBER 30, 1995 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1994.
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<PAGE>
<PAGE>
Nine months ended September 30,
-------------------------------
1995 1994
----- -----
Oil and gas sales $374,716 $483,502
Oil and gas production
expenses $163,256 $156,483
Barrels produced 2,155 2,274
Mcf produced 260,450 251,265
Average price/Bbl $ 17.67 $ 16.73
Average price/Mcf $ 1.29 $ 1.77
As shown in the table, oil and natural gas sales decreased 22.5%
for the nine months ended September 30, 1995 as compared to the
nine months ended September 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 during the nine months ended September 30, 1995 as
compared to the nine months ended September 30, 1994. Volumes of
natural gas sold increased 9,185 Mcf, while volumes of oil sold
decreased 119 barrels for the nine months ended September 30,
1995 as compared to the nine months ended September 30, 1994.
The increase in the volumes of natural gas sold was primarily due
to increased production on several wells during the nine months
ended September 30, 1995 as a result of workover and recompletion
activities during the nine months ended September 30, 1994.
Average natural gas prices decreased to $1.29 per Mcf for the
nine months ended September 30, 1995 from $1.77 per Mcf for the
nine months ended September 30, 1994, while average oil prices
increased to $17.67 per barrel for the nine months ended
September 30, 1995 from $16.73 per barrel for the nine months
ended September 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $6,773 for the nine
months ended September 30, 1995 as compared to the nine months
ended September 30, 1994. This increase was primarily due to
workover charges on one of the 1980-1 Program's wells during the
nine months ended September 30, 1995 to improve the recovery of
reserves and the increase in the volumes of natural gas sold
during the nine months ended September 30, 1995 as compared to
the nine months ended September 30, 1994, partially offset by an
accrual for certain litigation costs during the nine months ended
September 30, 1994. As a percentage of oil and gas sales, these
expenses increased to 43.6% for the nine months ended September
30, 1995 from 32.4% for the nine months ended September 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 nine months ended September 30, 1995 as
compared to the nine months ended September 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties increased $15,979 for the nine months ended September
30, 1995 as compared to the nine months ended September 30, 1994.
This increase was primarily a result of an increase in the
volumes of natural gas sold during the nine months ended
September 30, 1995 as compared to the nine months ended September
30, 1994 and the increase in oil and gas properties subject to
amortization due to recent recompletion and workover activities
-16-
<PAGE>
<PAGE>
on an existing well in order to improve the future recovery of
reserves. As a percentage of oil and gas sales, this expense
increased to 30.4% for the nine months ended September 30, 1995
compared to 20.2% for the nine months ended September 30, 1994.
This percentage increase was primarily due to the dollar increase
in depreciation, depletion, and amortization expense related to
the increase in the oil and gas properties subject to
amortization as discussed above and the decrease in the average
price of natural gas sold during the nine months ended September
30, 1995 as compared to the nine months ended September 30, 1994.
General and administrative expenses increased $3,502 for the nine
months ended September 30, 1995 as compared to the nine months
ended September 30, 1994. This increase resulted primarily from
an increase in the 1980-1 Program's professional fees during the
nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994. As a percentage of oil and gas
sales, these expenses increased to 14.3% for the nine months
ended September 30, 1995 from 10.4% for the nine months ended
September 30, 1994. This percentage increase was primarily due
to the decrease in the average price of natural gas sold during
the nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994, partially offset by an increase
in the volumes of natural gas sold for the nine months ended
September 30, 1995 as compared to the nine months ended September
30, 1994.
1980-2 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1995 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1994.
Three months ended September 30,
--------------------------------
1995 1994
---- -----
Oil and gas sales $256,894 $147,608
Oil and gas production
expenses $169,688 $ 65,417
Barrels produced 546 587
Mcf produced 161,427 103,565
Average price/Bbl $ 18.15 $ 17.59
Average price/Mcf $ 1.53 $ 1.33
As shown in the table, oil and natural gas sales increased 73.0%
for the three months ended September 30, 1995 as compared to the
three months ended September 30, 1994. This increase resulted
primarily from an increase in the volumes and average price of
natural gas sold during the three months ended September 30, 1995
as compared to the three months ended September 30, 1994.
Volumes of natural gas sold increased 57,862 Mcf, while the
volumes of oil sold decreased slightly by 41 barrels for the
three months ended September 30, 1995 as compared to the three
months ended September 30, 1994. The increase in the volumes of
natural gas sold resulted primarily from increased production on
several of the 1980-2 Program's wells during the three months
ended September 30, 1995 as a result of recompletions and
workover activities during 1994 and a significant positive prior
period volume adjustment from a purchaser on one of the 1980-2
Program's wells during the three months ended September 30, 1995.
Average oil and natural gas prices increased to $18.15 per barrel
and $1.53 per Mcf for the three months ended September 30, 1995
-17-
<PAGE>
<PAGE>
from $17.59 per barrel and $1.33 per Mcf for the three months
ended September 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $104,271 for the three
months ended September 30, 1995 as compared to the three months
ended September 30, 1994. This increase was primarily due to
significant recompletion charges on one of the 1980-2 Program's
wells during the three months ended September 30, 1995 to improve
recovery of reserves. As a percentage of oil and gas sales,
these expenses increased to 66.1% for the three months ended
September 30, 1995 from 44.3% for the three months ended
September 30, 1994. This percentage increase resulted primarily
from the dollar increase in production expenses related to the
recompletion charges as discussed above, partially offset by the
increase in the volumes and average price of natural gas sold
during the three months ended September 30, 1995 as compared to
the three months ended September 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties increased $37,038 for the three months ended September
30, 1995 as compared to the three months ended September 30,
1994. This increase was primarily the result of the increase in
the volumes of natural gas sold during the three months ended
September 30, 1995 as compared to the three months ended
September 30, 1994. As a percentage of oil and gas sales, this
expense increased to 24.5% for the three months ended September
30, 1995 compared to 17.5% for the three months ended September
30, 1994. This percentage increase was primarily due to the
decrease in the valuation of the 1980-2 Program's remaining
natural gas reserves during the three months ended September 30,
1995 as compared to the three months ended September 30, 1994.
General and administrative expenses decreased slightly by $648
for the three months ended September 30, 1995 as compared to the
three months ended September 30, 1994. As a percentage of oil
and gas sales, these expenses decreased to 9.0% for the three
months ended September 30, 1995 from 16.0% for the three months
ended September 30, 1994. This percentage decrease was primarily
due to the increases in the average price and volumes of natural
gas sold during the three months ended September 30, 1995 as
compared to the three months ended September 30, 1994.
NINE MONTHS ENDED SEPTEMBER 30, 1995 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1994.
Nine months ended September 30,
-------------------------------
1995 1994
---- ----
Oil and gas sales $632,869 $559,299
Oil and gas production
expenses $336,711 $183,992
Barrels produced 1,646 1,683
Mcf produced 452,020 330,259
Average price/Bbl $ 17.97 $ 16.27
Average price/Mcf $ 1.33 $ 1.61
-18-
<PAGE>
<PAGE>
As shown in the table, oil and natural gas sales increased 13.2%
for the nine months ended September 30, 1995 as compared to the
nine months ended September 30, 1994. This increase resulted
primarily from an increase in the volumes of natural gas sold,
partially offset by the decrease in the average price of natural
gas sold during the nine months ended September 30, 1995 as
compared to the nine months ended September 30, 1994. Volumes of
natural gas sold increased 121,761 Mcf, while the volumes of oil
sold remained relatively constant for the nine months ended
September 30, 1995 as compared to the nine months ended September
30, 1994. The increase in the volumes of natural gas sold was
primarily due to increased production on several of the 1980-2
Program's wells during the nine months ended September 30, 1995
as a result of workover and recompletion activities which
occurred during the nine months ended September 30, 1994 and a
significant prior period volume adjustment from a purchaser on
another of the 1980-2 Program's wells during the nine months
ended September 30, 1995. Average natural gas prices decreased
to $1.33 per Mcf for the nine months ended September 30, 1995
from $1.61 per Mcf for the nine months ended September 30, 1994,
while average oil prices increased to $17.97 per barrel for the
nine months ended September 30, 1995 from $16.27 per barrel for
the nine months ended September 30, 1994.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $152,719 for the nine
months ended September 30, 1995 as compared to the nine months
ended September 30, 1994. This increase was primarily due to
recompletion charges on one of the 1980-2 Program's wells during
the nine months ended September 30, 1995 to improve the recovery
of reserves and an increase in the volumes of natural gas sold
during the nine months ended September 30, 1995 as compared to
the nine months ended September 30, 1994. As a percentage of oil
and gas sales, these expenses increased to 53.2% for the nine
months ended September 30, 1995 from 32.9% for the nine months
ended September 30, 1994. This percentage increase resulted
primarily from the dollar increase in production expenses related
to the recompletion charges as discussed above and the decreases
in the average price of natural gas sold, partially offset by the
increase in the volumes of natural gas sold during the nine
months ended September 30, 1995 as compared to the nine months
ended September 30, 1994.
Depreciation, depletion, and amortization of oil and gas
properties increased $50,846 for the nine months ended September
30, 1995 as compared to the nine months ended September 30, 1994.
This increase was primarily a result of the increase in volumes
of natural gas sold during the nine months ended September 30,
1995 as compared to the nine months ended September 30, 1994. As
a percentage of oil and gas sales, this expense increased to
26.1% for the nine months ended September 30, 1995 from 20.5% for
the nine months ended September 30, 1994. This percentage
increase was primarily due to the decrease in the average price
of natural gas sold during the nine months ended September 30,
1995 as compared to the nine months ended September 30, 1994.
General and administrative expenses increased $4,616 for the nine
months ended September 30, 1995 as compared to the nine months
ended September 30, 1994. This increase resulted primarily from
an increase in the 1980-2 Program's professional fees during the
-19-
<PAGE>
<PAGE>
nine months ended September 30, 1995 as compared to the nine
months ended September 30, 1994. As a percentage of oil and gas
sales, these expenses remained relatively constant at 12.4% for
the nine months ended September 30, 1995 compared to 13.2% for
the nine months ended September 30, 1994.
-20-
<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
-21-
<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: November 13, 1995 By: /s/Dennis R. Neill
---------------------------
(Signature)
Dennis R. Neill
Senior Vice President
Date: November 13, 1995 By: /s/Patrick M. Hall
---------------------------
(Signature)
Patrick M. Hall
Senior Vice President - Controller
Principal Accounting Officer
-22-
<PAGE>
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<ARTICLE> 5
<CIK> 0000806576
<NAME> DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 20,809
<SECURITIES> 0
<RECEIVABLES> 56,858
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 77,667
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 861,967
<CURRENT-LIABILITIES> 66,109
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 769,333
<TOTAL-LIABILITY-AND-EQUITY> 861,967
<SALES> 374,716
<TOTAL-REVENUES> 379,199
<CGS> 0
<TOTAL-COSTS> 330,773
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 48,426
<INCOME-TAX> 0
<INCOME-CONTINUING> 48,426
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 48,426
<EPS-PRIMARY> 12.00
<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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 26,552
<SECURITIES> 0
<RECEIVABLES> 244,155
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 270,707
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 820,088
<CURRENT-LIABILITIES> 68,455
<BONDS> 0
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0
0
<OTHER-SE> 702,717
<TOTAL-LIABILITY-AND-EQUITY> 820,088
<SALES> 632,869
<TOTAL-REVENUES> 638,065
<CGS> 0
<TOTAL-COSTS> 580,799
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 57,266
<INCOME-TAX> 0
<INCOME-CONTINUING> 57,266
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<NET-INCOME> 57,266
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