<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended Commission File Number
June 30, 1996 33-10346-09 (1980-1)
33-10346-10 (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 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 1980-1 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1996 1995
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 295,136 $ 106,038
Accrued oil and gas sales, including
$92,090 due from related parties
in 1995 (Note 2) 117,217 109,691
---------- ----------
Total current assets $ 412,353 $ 215,729
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 594,261 671,070
DEFERRED CHARGE 147,056 147,056
---------- ----------
$1,153,670 $1,033,855
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 93,915 $ 49,013
Gas imbalance payable 1,434 1,434
---------- ----------
Total current liabilities $ 95,349 $ 50,447
ACCRUED LIABILITY 37,096 37,096
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 40 units 10,212 9,463
Limited Partners, issued and
outstanding 4,000 units 1,011,013 936,849
---------- ----------
Total Partners' capital $1,021,225 $ 946,312
---------- ----------
$1,153,670 $1,033,855
========== ==========
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, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
REVENUES:
Oil and gas sales, including
$132,053 of sales to related
parties in 1995 (Note 2) $207,141 $149,300
Interest 2,403 1,905
-------- --------
$209,544 $151,205
COST AND EXPENSES:
Oil and gas production $ 35,628 $ 61,244
Depreciation, depletion, and
amortization of oil and gas
properties 43,710 42,551
General and administrative (Note 2) 17,487 18,333
-------- --------
$ 96,825 $122,128
-------- --------
NET INCOME $112,719 $ 29,077
======== ========
GENERAL PARTNER (1%) - net
income $ 1,127 $ 291
======== ========
LIMITED PARTNERS (99%) - net
income $111,592 $ 28,786
======== ========
NET INCOME PER UNIT $ 28 $ 7
======== ========
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, 1996 AND 1995
(Unaudited)
1996 1995
-------- -------
REVENUES:
Oil and gas sales, including
$240,139 of sales to related
parties in 1995 (Note 2) $390,317 $287,806
Interest 3,653 3,103
-------- --------
$393,970 $290,909
COST AND EXPENSES:
Oil and gas production $ 99,322 $127,260
Depreciation, depletion, and
amortization of oil and gas
properties 81,215 80,672
General and administrative (Note 2) 37,520 38,418
-------- --------
$218,057 $246,350
-------- --------
NET INCOME $175,913 $ 44,559
======== ========
GENERAL PARTNER (1%) - net
income $ 1,759 $ 446
======== ========
LIMITED PARTNERS (99%) - net
income $174,154 $ 44,113
======== ========
NET INCOME PER UNIT $ 44 $ 11
======== ========
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, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $175,913 $ 44,559
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 81,215 80,672
Increase in accrued oil and gas
sales ( 7,526) ( 9,673)
Increase in accounts payable 44,902 6,763
-------- --------
Net cash provided by operating
activities $294,504 $122,321
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties ($ 10,748) ($ 15,854)
Retirements of oil and gas
properties 6,342 -
-------- --------
Net cash used by investing
activities ($ 4,406) ($ 15,854)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($101,000) $ -
-------- --------
Net cash used by financing
activities ($101,000) $ -
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $189,098 $106,467
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 106,038 71,555
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $295,136 $178,022
======== ========
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,
1996 1995
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 493,222 $ 273,193
Accrued oil and gas sales, including
$93,000 due from related parties
in 1995 (Note 2) 125,071 117,898
---------- ----------
Total current assets $ 618,293 $ 391,091
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 388,343 488,926
DEFERRED CHARGE 190,675 190,675
---------- ----------
$1,197,311 $1,070,692
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 96,634 $ 52,007
Gas imbalance payable 39,263 39,263
---------- ----------
Total current liabilities $ 135,897 $ 91,270
ACCRUED LIABILITY 154,526 154,526
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 40 units 9,069 8,249
Limited Partners, issued and
outstanding 4,000 units 897,819 816,647
---------- ----------
Total Partners' capital $ 906,888 $ 824,896
---------- ----------
$1,197,311 $1,070,692
========== ==========
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, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
REVENUES:
Oil and gas sales, including
$137,899 of sales to related
parties in 1995 (Note 2) $437,007 $210,882
Interest 3,201 2,403
-------- --------
$440,208 $213,285
COST AND EXPENSES:
Oil and gas production $ 54,617 $ 91,377
Depreciation, depletion, and
amortization of oil and gas
properties 71,812 58,686
General and administrative (Note 2) 25,760 26,732
-------- --------
$152,189 $176,795
-------- --------
NET INCOME $288,019 $ 36,490
======== ========
GENERAL PARTNER (1%) - net
income $ 2,880 $ 365
======== ========
LIMITED PARTNERS (99%) - net
income $285,139 $ 36,125
======== ========
NET INCOME PER UNIT $ 57 $ 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 SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
REVENUES:
Oil and gas sales, including
$270,394 of sales to related
parties in 1995 (Note 2) $628,676 $375,975
Interest 6,100 4,057
-------- --------
$634,776 $380,032
COST AND EXPENSES:
Oil and gas production $117,636 $167,023
Depreciation, depletion, and
amortization of oil and gas
properties 102,470 102,588
General and administrative (Note 2) 54,433 55,688
-------- --------
$274,539 $325,299
-------- --------
NET INCOME $360,237 $ 54,733
======== ========
GENERAL PARTNER (1%) - net
income $ 3,602 $ 547
======== ========
LIMITED PARTNERS (99%) - net
income $356,635 $ 54,186
======== ========
NET INCOME PER UNIT $ 71 $ 11
======== ========
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, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $360,237 $ 54,733
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 102,470 102,588
Increase in accrued oil and gas
sales ( 7,173) ( 23,921)
Increase in accounts payable 44,627 11,554
-------- --------
Net cash provided by operating
activities $500,161 $144,954
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties ($ 11,196) ($ 17,747)
Retirements of oil and gas
properties 9,309 -
-------- --------
Net cash used by investing
activities ($ 1,887) ($ 17,747)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($278,245) ($101,180)
-------- --------
Net cash used by financing
activities ($278,245) ($101,180)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $220,029 $ 26,027
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 273,193 105,287
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $493,222 $131,314
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
-9-
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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, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1996, statements of operations
for the three and six months ended June 30, 1996 and 1995, and
statements of cash flows for the six months ended June 30, 1996
and 1995 have been prepared by Dyco Petroleum Corporation
("Dyco"), the General Partner of the Dyco Oil and Gas Program
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, 1996, results of operations for the three and six
months ended June 30, 1996 and 1995, and changes in cash flows
for the six months ended June 30, 1996 and 1995 have been made.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto
included in the Programs' Annual Report on Form 10-K for the year
ended December 31, 1995. The results of operations for the
period ended June 30, 1996 are not necessarily indicative of the
results to be expected for the full year.
The limited partners' net income or loss per unit is based upon
each $5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost
method of accounting. All productive and non-productive costs
associated with the acquisition, exploration and development of
oil and gas reserves are capitalized. In the event the
unamortized cost of oil and gas properties being amortized
exceeds the full cost ceiling (as defined by the Securities and
Exchange Commission), the excess is charged to expense in the
period during which such excess occurs. Sales and abandonments
of properties are accounted for as adjustments of capitalized
costs with no gain or loss recognized, unless such adjustments
would significantly alter the relationship between capitalized
costs and proved oil and gas reserves.
The provision for depreciation, depletion, and amortization of
oil and gas properties is calculated by dividing the oil and gas
sales dollars during the year by the estimated future gross
income from the oil and gas properties and applying the resulting
rate to the net remaining costs of oil and gas properties that
have been capitalized, plus estimated future development costs.
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2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each of the Program's partnership agreement,
Dyco is entitled to receive a reimbursement for all direct
expenses and general and administrative, geological and
engineering expenses it incurs on behalf of the Program. During
the three months ended June 30, 1996 and 1995 the 1980-1 Program
incurred such expenses totaling $17,487 and $18,333,
respectively, of which $14,022 and $14,022 were paid to Dyco.
During the six months ended June 30, 1996 and 1995 the 1980-1
Program incurred such expenses totaling $37,520 and $38,418,
respectively, of which $28,044 and $28,044 were paid to Dyco.
During the three months ended June 30, 1996 and 1995 the 1980-2
Program incurred such expenses totaling $25,760 and $26,732,
respectively, of which $21,405 and $21,405 were paid to Dyco.
During the six months ended June 30, 1996 and 1995 the 1980-2
Program incurred such expenses totaling $54,433 and $55,688,
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 sold gas at market prices to Premier Gas Company
("Premier") and Premier then resold such gas to third parties at
market prices. Premier was an affiliate of the Programs until
December 6, 1995. During the three months ended June 30, 1995
these sales for the 1980-1 Program totaled $132,053. During the
six months ended June 30, 1995 these sales for the 1980-1 Program
totaled $240,139. At December 31, 1995, accrued oil and gas
sales for the 1980-1 Program included $92,090 due from Premier.
During the three months ended June 30, 1995 these sales for the
1980-2 Program totaled $137,899. During the six months ended
June 30, 1995 these sales for the 1980-2 Program totaled
$270,394. At December 31, 1995, accrued oil and gas sales for
the 1980-2 Program included $93,000 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 Programs' 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 $2.75 million in actual
damages and approximately $2.75 million in punitive damages.
Dyco appealed the district court's verdict and on March 5, 1996
the Oklahoma Court of Appeals reversed the district court's
verdict and ordered a new trial. Both Dyco and the plaintiffs
have filed petitions for certiorari with the Supreme Court of
Oklahoma seeking a further review of the Court of Appeals'
opinion.
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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 in the matter. Oral arguments were heard on
the motion in January 1995, however, as of the date of these
financial statements, the district court has not ruled on the
motion. Dyco intends to vigorously defend the lawsuit. As of
the date of these financial statements, management cannot
determine the amount of any alleged damages which would be
allocable to the 1980-1 Program from this lawsuit; however, it is
reasonably possible that events could change in the future
resulting in a material liability to the 1980-1 Program.
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 Programs' 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 in the matter. Oral arguments were
heard on the motion in January 1995, however, as of the date of
these financial statements, the district court has not ruled on
the motion. Dyco intends to vigorously defend the lawsuit. As
of the date of these financial statements, management cannot
determine the amount of any alleged damages which would be
allocable to the Programs from this lawsuit; however it is
reasonably possible that events could change in the future
resulting in a material liability to the Programs.
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 Programs' 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 in the matter. Oral arguments were
heard on the motion in January 1995, however, as of the date of
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these financial statements, the district court has not ruled on
the motion. 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 Programs from this lawsuit; however it is
reasonably possible that events could change in the future
resulting in a material liability to the Programs.
On December 18, 1992, a royalty owner filed a quiet title action
alleging that the operator of certain wells in which the 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 appealed the district
court's verdict and on March 12, 1996 the Oklahoma Court of
Appeals reversed the district court's verdict. Plaintiff has
filed a petition for rehearing with the Oklahoma Court of
Appeals, which was denied on May 14, 1996. The plaintiffs then
filed on July 19, 1996 a writ for certiorari with the Oklahoma
Supreme Court seeking a further appeal of the matter.
On June 14, 1995, a royalty owner filed a class action 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. The
lawsuit also alleges claims based on unjust enrichment, breach of
contract and fiduciary obligation, and constructive fraud. The
plaintiff is seeking an accounting as a third party beneficiary
and a temporary restraining order, along with actual and punitive
damages, interest, and costs. 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;
however, it is reasonably possible that events could change in
the future resulting in a material liability to the 1980-1
Program.
Included in these financial statements as of December 31, 1995
and June 30, 1996 is an accrual by the General Partner of $40,000
representing each Program's share of estimated ultimate damages
resulting from the quiet title action and the lawsuit filed on
November 12, 1992. No accruals have been established for the
take-or-pay lawsuits.
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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 JUNE 30, 1996 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1995.
Three months ended June 30,
---------------------------
1996 1995
-------- --------
Oil and gas sales $207,141 $149,300
Oil and gas production expenses $ 35,628 $ 61,244
Barrels produced 511 667
Mcf produced 105,948 101,397
Average price/Bbl $ 18.55 $ 17.96
Average price/Mcf $ 1.87 $ 1.35
As shown in the table, oil and natural gas sales increased
$57,841 (38.7%) for three months ended June 30, 1996 as compared
to the three months ended June 30, 1995. Of this increase,
$52,726 was related to the increase in the average price of
natural gas sold and $8,510 was related to the increase in the
volumes of natural gas sold. Volumes of oil sold decreased by
156 barrels during the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995, while volumes
of natural gas sold increased by 4,551 Mcf during the three
months ended June 30, 1996 as compared to the three months ended
June 30, 1995. The increase in the volumes of natural gas sold
was primarily the result of increased production on one well
during the three months ended June 30, 1996 as compared to the
three months ended June 30, 1995 as a result of recent
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recompletion activities, partially offset by the normal decline
in production from diminished reserves on several wells. Average
oil and natural gas prices increased to $18.55 per barrel and
$1.87 per Mcf, respectively, for the three months ended June 30,
1996 from $17.96 per barrel and $1.35 per Mcf, respectively, for
the three months ended June 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased by $25,616 for the three
months ended June 30, 1996 as compared to the three months ended
June 30, 1995. This decrease 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
decreased to 17.2% for the three months ended June 30, 1996 from
41.0% for the three months ended June 30, 1995. This percentage
decrease resulted primarily from the decrease in production
expenses related to the workover charges as discussed above and
increases in the average prices of oil and natural gas sold
during the three months ended June 30, 1996 as compared to the
three months ended June 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties increased by $1,159 for the three months ended June
30, 1996 as compared to the three months ended June 30, 1995.
This increase resulted from the increase in the volumes of
natural gas sold during the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995. As a
percentage of oil and gas sales, this expense decreased to 21.1%
for the three months ended June 30, 1996 from 28.5% for the three
months ended June 30, 1995. This percentage decrease resulted
primarily from increases in the average prices of oil and natural
gas sold during the three months ended June 30, 1996 as compared
to the three months ended June 30, 1995.
General and administrative expenses decreased by $846 for the
three months ended June 30, 1996 as compared to the three months
ended June 30, 1995. This decrease resulted primarily from the
decrease in printing and postage fees for the three months ended
June 30, 1996 as compared to the three months ended June 30,
1995. As a percentage of oil and gas sales, these expenses
decreased to 8.4% for the three months ended June 30, 1996 from
12.3% for the three months ended June 30, 1995. This percentage
decrease was primarily due to increases in the average prices of
oil and natural gas sold during the three months ended June 30,
1996 as compared to the three months ended June 30, 1995.
SIX MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1995.
Six months ended June 30,
---------------------------
1996 1995
-------- --------
Oil and gas sales $390,317 $287,806
Oil and gas production expenses $ 99,322 $127,260
Barrels produced 1,049 1,338
Mcf produced 195,806 199,930
Average price/Bbl $ 18.51 $ 17.34
Average price/Mcf $ 1.89 $ 1.32
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As shown in the table, oil and natural gas sales increased
$102,511 (35.6%) for the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995. Of this
increase, $113,960 was related to the increase in the average
price of natural gas sold. Volumes of oil and natural gas sold
decreased by 289 barrels and 4,124 Mcf, respectively, during the
six months ended June 30, 1996 as compared to the six months
ended June 30, 1995. The decrease in the volumes of natural gas
sold was primarily the result of the normal decline in production
from diminished reserves on several wells, partially offset by
increased production on one well during the six months ended June
30, 1996 as a result of recent recompletion activities. Average
oil and natural gas prices increased to $18.51 per barrel and
$1.89 per Mcf, respectively, for the six months ended June 30,
1996 from averages of $17.34 per barrel and $1.32 per Mcf,
respectively, for the six months ended June 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased by $27,938 for the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995. This decrease 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 the recovery of
reserves. As a percentage of oil and gas sales, these expenses
decreased to 25.4% for the six months ended June 30, 1996 from
44.2% for the six months ended June 30, 1995. This percentage
decrease resulted primarily from the decrease in production
expenses related to the workover charges as discussed above and
increases in the average prices of oil and natural gas sold
during the six months ended June 30, 1996 as compared to the six
months ended June 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties remained relatively constant for the six months ended
June 30, 1996 as compared to the six months ended June 30, 1995.
As a percentage of oil and gas sales, this expense decreased to
20.8% for the six months ended June 30, 1996 from 28.0% for the
six months ended June 30, 1995. This percentage decrease
resulted primarily from increases in the average prices of oil
and natural gas sold during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995.
General and administrative expenses decreased by $898 for the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995. This decrease resulted primarily from a decrease
in printing and postage fees for the six months ended June 30,
1996 as compared to the six months ended June 30, 1995. As a
percentage of oil and gas sales, these expenses decreased to 9.6%
for the six months ended June 30, 1996 from 13.3% for the six
months ended June 30, 1995. This percentage decrease was
primarily due to increases in the average prices of oil and
natural gas sold during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995.
-16-
<PAGE>
<PAGE>
1980-2 PROGRAM
THREE MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1995.
Three months ended June 30,
---------------------------
1996 1995
-------- --------
Oil and gas sales $437,007 $210,882
Oil and gas production expenses $ 54,617 $ 91,377
Barrels produced 382 539
Mcf produced 245,349 154,732
Average price/Bbl $ 17.88 $ 18.32
Average price/Mcf $ 1.75 $ 1.30
As shown in the table, oil and natural gas sales increased
$226,125 (107.2%) for the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995. Of this
increase, $158,580 was related to the increase in the volumes of
natural gas sold and $69,629 was related to the increase in the
average price of natural gas sold. Volumes of oil sold decreased
by 157 barrels, while volumes of natural gas sold increased by
90,617 Mcf for the three months ended June 30, 1996 as compared
to the three months ended June 30, 1995. The increase in the
volumes of natural gas sold resulted primarily from positive
prior period adjustments made by the purchasers on two of the
1980-2 Program's wells during the three months ended June 30,
1996. Average oil prices decreased to $17.88 per barrel for the
three months ended June 30, 1996 from $18.32 per barrel for the
three months ended June 30, 1995, while average natural gas
prices increased to $1.75 per Mcf for the three months ended June
30, 1996 from $1.30 per Mcf for the three months ended June 30,
1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $36,760 for the three
months ended June 30, 1996 as compared to the three months ended
June 30, 1995. This decrease resulted primarily from workover
charges incurred on one well during the three months ended June
30, 1995 to improve the recovery of reserves. As a percentage of
oil and gas sales, these expenses decreased to 12.5% for the
three months ended June 30, 1996 from 43.3% for the three months
ended June 30, 1995. This percentage decrease resulted primarily
from (i) the decrease in production expenses related to the
workover charges as discussed above and (ii) the increase in the
average price of natural gas sold during the three months ended
June 30, 1996 as compared to the three months ended June 30,
1995.
Depreciation, depletion, and amortization of oil and gas
properties increased $13,126 for the three months ended June 30,
1996 as compared to the three months ended June 30, 1995. This
increase was primarily a result of the increase in the volumes of
natural gas sold during the three months ended June 30, 1996 as
compared to the three months ended June 30, 1995, partially
offset by an upward revision in the estimate of the 1980-1
Program's remaining natural gas reserves at December 31, 1995.
As a percentage of oil and gas sales, this expense decreased to
16.4% for the three months ended June 30, 1996 from 27.8% for the
-17-
<PAGE>
<PAGE>
three months ended June 30, 1995. This percentage decrease was
primarily due to the increase in the average price of natural gas
sold during the three months ended June 30, 1996 as compared to
the three months ended June 30, 1995.
General and administrative expenses decreased by $972 for the
three months ended June 30, 1996 as compared to the three months
ended June 30, 1995. This decrease resulted primarily from a
decrease in printing and postage fees for the three months ended
June 30, 1996 as compared to the three months ended June 30,
1995. As a percentage of oil and gas sales, these expenses
decreased to 5.9% for the three months ended June 30, 1996 from
12.7% for the three months ended June 30, 1995. This percentage
decrease resulted primarily from the increase in the average
price of natural gas sold during the three months ended June 30,
1996 as compared to the three months ended June 30, 1995.
SIX MONTHS ENDED JUNE 30, 1996 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1995.
Six months ended June 30,
--------------------------
1996 1995
-------- --------
Oil and gas sales $628,676 $375,975
Oil and gas production expenses $117,636 $167,023
Barrels produced 897 1,100
Mcf produced 341,044 290,593
Average price/Bbl $ 18.19 $ 17.89
Average price/Mcf $ 1.80 $ 1.23
As shown in the table, oil and natural gas sales increased
$252,701 (67.2%) for the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995. Of this
increase, $165,638 was related to the increase in the average
price of natural gas sold and $90,812 was related to the increase
in the volumes of natural gas sold. Volumes of oil sold
decreased by 203 barrels during the six months ended June 30,
1996 as compared to the six months ended June 30, 1995, while
volumes of natural gas sold increased by 50,451 Mcf for the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995. The increase in the volumes of natural gas sold
resulted primarily from significant positive prior period
adjustments made by the purchasers on two of the 1980-2 Program's
wells during the six months ended June 30, 1996. The average
prices of oil and natural gas sold increased to $18.19 per barrel
and $1.80 per Mcf, respectively, for the six months ended June
30, 1996 from $17.89 per barrel and $1.23 Mcf, respectively, for
the six months ended June 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $49,387 for the six
months ended June 30, 1996 as compared to the six months ended
June 30, 1995. This decrease resulted primarily from workover
charges incurred on one well during the six months ended June 30,
1995 to improve the recovery of reserves. As a percentage of oil
and gas sales, these expenses decreased to 18.7% for the six
months ended June 30, 1996 from 44.4% for the six months ended
June 30, 1995. This percentage decrease resulted primarily from
(i) the decrease in production expenses related to the workover
charges as discussed above and (ii) increases in the average
-18-
<PAGE>
<PAGE>
prices of oil and natural gas sold during the six months ended
June 30, 1996 as compared to the six months ended June 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties remained relatively constant for the six months ended
June 30, 1996 as compared to the six months ended June 30, 1995.
As a percentage of oil and gas sales, this expense decreased to
16.3% for the six months ended June 30, 1996 compared to 27.3%
for the six months ended June 30, 1995. This percentage decrease
was primarily due to increases in the average prices of oil and
natural gas sold during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995.
General and administrative expenses decreased by $1,255 for the
six months ended June 30, 1996 as compared to the six months
ended June 30, 1995. This decrease resulted primarily from a
decrease in printing and postage fees for the six months ended
June 30, 1996 as compared to the six months ended June 30, 1995.
As a percentage of oil and gas sales, these expenses decreased to
8.7% for the six months ended June 30, 1996 from 14.8% for the
six months ended June 30, 1995. This percentage decrease
resulted primarily from increases in the average prices of oil
and natural gas sold during the six months ended June 30, 1996 as
compared to the six months ended June 30, 1995.
-19-
<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 1980-1
Program's financial statements as of June 30, 1996
and for the six months ended June 30, 1996, filed
herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the 1980-2
Program's financial statements as of June 30, 1996
and for the six months ended June 30, 1996, filed
herewith.
(b) Reports on Form 8-K
None
-20-
<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 6, 1996 By: /s/Dennis R. Neill
-----------------------------------
(Signature)
Dennis R. Neill
President
Date: August 6, 1996 By: /s/Drew S. Phillips
-----------------------------------
(Signature)
Drew S. Phillips
Chief Financial Officer
-21-
<PAGE>
<PAGE>
INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1980-1 Limited Partnership's financial statements as of June
30, 1996 and for the six months ended June 30, 1996, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1980-2 Limited Partnership's financial statements as of June
30, 1996 and for the six months ended June 30, 1996, filed
herewith.
<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-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 295,136
<SECURITIES> 0
<RECEIVABLES> 117,217
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 412,353
<PP&E> 29,759,092
<DEPRECIATION> 29,164,831
<TOTAL-ASSETS> 1,153,670
<CURRENT-LIABILITIES> 95,349
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,021,225
<TOTAL-LIABILITY-AND-EQUITY> 1,153,670
<SALES> 390,317
<TOTAL-REVENUES> 393,970
<CGS> 0
<TOTAL-COSTS> 218,057
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 175,913
<INCOME-TAX> 0
<INCOME-CONTINUING> 175,913
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 175,913
<EPS-PRIMARY> 44.00
<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-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 493,222
<SECURITIES> 0
<RECEIVABLES> 125,071
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 618,293
<PP&E> 35,427,874
<DEPRECIATION> 35,039,531
<TOTAL-ASSETS> 1,197,311
<CURRENT-LIABILITIES> 135,897
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 906,888
<TOTAL-LIABILITY-AND-EQUITY> 1,197,311
<SALES> 628,676
<TOTAL-REVENUES> 634,776
<CGS> 0
<TOTAL-COSTS> 274,539
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 360,237
<INCOME-TAX> 0
<INCOME-CONTINUING> 360,237
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 360,237
<EPS-PRIMARY> 71
<EPS-DILUTED> 0
</TABLE>
