<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, 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
September 30, December 31,
1996 1995
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 255,720 $ 106,038
Accrued oil and gas sales, including
$92,090 due from related parties
in 1995 (Note 2) 104,219 109,691
---------- ----------
Total current assets $ 359,939 $ 215,729
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 557,674 671,070
DEFERRED CHARGE 147,056 147,056
---------- ----------
$1,064,669 $1,033,855
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 71,472 $ 49,013
Gas imbalance payable 1,434 1,434
---------- ----------
Total current liabilities $ 72,906 $ 50,447
ACCRUED LIABILITY 37,096 37,096
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 40 units 9,547 9,463
Limited Partners, issued and
outstanding, 4,000 units 945,120 936,849
---------- ----------
Total Partners' capital $ 954,667 $ 946,312
---------- ----------
$1,064,669 $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 SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
REVENUES:
Oil and gas sales, including
$72,017 of sales to related
parties in 1995 (Note 2) $181,262 $86,910
Interest 3,436 1,380
-------- -------
$184,698 $88,290
COST AND EXPENSES:
Oil and gas production $ 16,283 $35,996
Depreciation, depletion, and
amortization of oil and gas
properties 37,903 33,138
General and administrative (Note 2) 15,270 15,289
-------- -------
$ 69,456 $84,423
-------- -------
NET INCOME $115,242 $ 3,867
======== =======
GENERAL PARTNER (1%) - net
income $ 1,152 $ 38
======== =======
LIMITED PARTNERS (99%) - net
income $114,090 $ 3,829
======== =======
NET INCOME PER UNIT $ 28.53 $ .96
======== =======
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, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
REVENUES:
Oil and gas sales, including
$312,156 of sales to related
parties in 1995 (Note 2) $571,579 $374,716
Interest 7,089 4,483
-------- --------
$578,668 $379,199
COST AND EXPENSES:
Oil and gas production $115,605 $163,256
Depreciation, depletion, and
amortization of oil and gas
properties 119,118 113,810
General and administrative (Note 2) 52,790 53,707
-------- --------
$287,513 $330,773
-------- --------
NET INCOME $291,155 $ 48,426
======== ========
GENERAL PARTNER (1%) - net
income $ 2,912 $ 484
======== ========
LIMITED PARTNERS (99%) - net
income $288,243 $ 47,942
======== ========
NET INCOME PER UNIT $ 72.07 $ 11.99
======== ========
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, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $291,155 $ 48,426
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 119,118 113,810
Decrease in accrued oil and gas
sales 5,472 18,658
Increase in accounts payable 22,459 2,496
-------- --------
Net cash provided by operating
activities $438,204 $183,390
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties ($ 16,526) ($234,136)
Retirements of oil and gas
properties 10,804 -
-------- --------
Net cash used by investing
activities ($ 5,722) ($234,136)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($282,800) $ -
-------- --------
Net cash used by financing
activities ($282,800) $ -
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $149,682 ($ 50,746)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 106,038 71,555
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $255,720 $ 20,809
======== ========
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,
1996 1995
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $281,516 $ 273,193
Accrued oil and gas sales, including
$93,000 due from related parties
in 1995 (Note 2) 125,968 117,898
-------- ----------
Total current assets $407,484 $ 391,091
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 347,782 488,926
DEFERRED CHARGE 190,675 190,675
-------- ----------
$945,941 $1,070,692
======== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 74,410 $ 52,007
Gas imbalance payable 39,263 39,263
-------- ----------
Total current liabilities $113,673 $ 91,270
ACCRUED LIABILITY 154,526 154,526
CONTINGENCIES (Note 3)
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 59 units 6,777 8,249
Limited Partners, issued and
outstanding, 5,000 units 670,965 816,647
-------- ----------
Total Partners' capital $677,742 $ 824,896
-------- ----------
$945,941 $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 SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
REVENUES:
Oil and gas sales, including
$56,190 of sales to related
parties in 1995 (Note 2) $225,719 $256,894
Interest 5,557 1,139
-------- --------
$231,276 $258,033
COST AND EXPENSES:
Oil and gas production $ 23,554 $169,688
Depreciation, depletion, and
amortization of oil and gas
properties 34,077 62,819
General and administrative (Note 2) 23,366 22,993
-------- --------
$ 80,997 $255,500
-------- --------
NET INCOME $150,279 $ 2,533
======== ========
GENERAL PARTNER (1%) - net
income $ 1,503 $ 26
======== ========
LIMITED PARTNERS (99%) - net
income $148,776 $ 2,507
======== ========
NET INCOME PER UNIT $ 29.70 $ .50
======== ========
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, 1996 AND 1995
(Unaudited)
1996 1995
-------- ---------
REVENUES:
Oil and gas sales, including
$326,584 of sales to related
parties in 1995 (Note 2) $854,395 $632,869
Interest 11,657 5,196
-------- --------
$866,052 $638,065
COST AND EXPENSES:
Oil and gas production $141,190 $336,711
Depreciation, depletion, and
amortization of oil and gas
properties 136,547 165,407
General and administrative (Note 2) 77,799 78,681
-------- --------
$355,536 $580,799
-------- --------
NET INCOME $510,516 $ 57,266
======== ========
GENERAL PARTNER (1%) - net
income $ 5,105 $ 573
======== ========
LIMITED PARTNERS (99%) - net
income $505,411 $ 56,693
======== ========
NET INCOME PER UNIT $ 100.91 $ 11.32
======== ========
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, 1996 AND 1995
(Unaudited)
1996 1995
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $510,516 $ 57,266
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 136,547 165,407
Increase in accrued oil and gas
sales ( 8,070) ( 154,119)
Increase in accounts payable 22,403 2,139
-------- --------
Net cash provided by operating
activities $661,396 $ 70,693
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas properties ($ 17,215) ($ 48,248)
Retirements of oil and gas
properties 21,812 -
-------- --------
Net cash provided (used) by
investing activities $ 4,597 ($ 48,248)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($657,670) ($101,180)
-------- --------
Net cash used by financing
activities ($657,670) ($101,180)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 8,323 ($ 78,735)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 273,193 105,287
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $281,516 $ 26,552
======== ========
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, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 1996, statements of
operations for the three and nine months ended September 30, 1996
and 1995, and statements of cash flows for the nine months ended
September 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 September 30, 1996, results of operations for the three and
nine months ended September 30, 1996 and 1995, and changes in
cash flows for the nine months ended September 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 September 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 September 30, 1996 and 1995 the 1980-1
Program incurred such expenses totaling $15,270 and $15,289,
respectively, of which $14,022 and $14,022 were paid to Dyco.
During the nine months ended September 30, 1996 and 1995 the
1980-1 Program incurred such expenses totaling $52,790 and
$53,707, respectively, of which $42,066 and $42,066 were paid to
Dyco. During the three months ended September 30, 1996 and 1995
the 1980-2 Program incurred such expenses totaling $23,366 and
$22,993, respectively, of which $21,405 and $21,405 were paid to
Dyco. During the nine months ended September 30, 1996 and 1995
the 1980-2 Program incurred such expenses totaling $77,799 and
$78,681, 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 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 September 30,
1995 these sales for the 1980-1 Program totaled $72,017. During
the nine months ended September 30, 1995 these sales for the
1980-1 Program totaled $312,156. At December 31, 1995, accrued
gas sales for the 1980-1 Program included $92,090 due from
Premier. During the three months ended September 30, 1995
accrued gas sales for the 1980-2 Program totaled $56,190. During
the nine months ended September 30, 1995 accrued gas sales for
the 1980-2 Program totaled $326,584. At December 31, 1995,
accrued 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
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filed petitions for certiorari with the Supreme Court of Oklahoma
seeking a further review of the Court of Appeals' opinion, both
of which petitions for certiorari were denied on July 3, 1996.
The case has been remanded to the district court for a new trial.
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. On
September 10, 1996 the Oklahoma Supreme Court ruled in a separate
lawsuit that owners of royalty interests in Oklahoma oil and gas
properties do not have the right to share in the proceeds of
take-or-pay settlements. Such ruling is not yet final. 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. On
September 10, 1996 the Oklahoma Supreme Court ruled in a separate
lawsuit that owners of royalty interests in Oklahoma oil and gas
properties do not have the right to share in the proceeds of
take-or-pay settlements. Such ruling is not yet final. 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
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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
these financial statements, the district court has not ruled on
the motion. Dyco intends to vigorously defend the lawsuit. On
September 10, 1996 the Oklahoma Supreme Court ruled in a separate
lawsuit that owners of royalty interests in Oklahoma oil and gas
properties do not have the right to share in the proceeds of
take-or-pay settlements. Such ruling is not yet final. 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 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. On September 10, 1996 the Oklahoma Supreme Court
ruled in a separate lawsuit that owners of royalty interests in
Oklahoma oil and gas properties do not have the right to share in
the proceeds of take-or-pay settlements. Such ruling is not yet
final. 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 September 30, 1996 is an accrual by the General Partner of
$20,000 representing each Program's share of the estimated
ultimate damages resulting from the lawsuit filed on November 12,
1992. No accruals have been established for the other 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 SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
-------- -------
Oil and gas sales $181,262 $86,910
Oil and gas production expenses $ 16,283 $35,996
Barrels produced 602 817
Mcf produced 75,826 60,520
Average price/Bbl $ 22.03 $ 18.23
Average price/Mcf $ 2.22 $ 1.19
As shown in the table above, oil and natural gas sales increased
$94,352 (108.6%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
increase, $62,336 was related to the increase in the average
price of natural gas sold and $33,979 was related to the increase
in the volumes of natural gas sold. Volumes of oil sold
decreased by 215 barrels, while volumes of natural gas sold
increased by 15,306 Mcf during the three months ended September
30, 1996 as compared to the three months ended September 30,
1995. The increase in the volumes of natural gas sold was
primarily the result of (i) increased production on one well
during the three months ended September 30, 1996 as a result of
recent recompletion activities and (ii) negative prior period
adjustments made by the purchaser on one well during the three
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months ended September 30, 1995, partially offset by the normal
declines in production on three wells due to diminished natural
gas reserves during the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. The
decrease in the volumes of oil sold resulted primarily from the
normal declines in production on three wells due to diminished
oil reserves during the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Average
oil and natural gas prices increased to $22.03 per barrel and
$2.22 per Mcf, respectively, for the three months ended September
30, 1996 from averages of $18.23 per barrel and $1.19 per Mcf,
respectively, for the three months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $19,713 for the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. This decrease was primarily a result
of the reversal of a $20,000 accrual during the three months
ended September 30, 1996 due to the conclusion of a certain legal
contingency. As a percentage of oil and gas sales, these
expenses decreased to 9.0% for the three months ended September
30, 1996 from 41.4% for the three months ended September 30,
1995. This percentage decrease resulted primarily from the
accrual reversal discussed above and the increases in the average
prices of oil and natural gas sold during the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties increased by $4,765 for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. This increase resulted primarily from the
increase in the volumes of natural gas sold, partially offset by
an upward revision in the estimate of the remaining natural gas
reserves at December 31, 1995. As a percentage of oil and gas
sales, this expense decreased to 20.9% for the three months ended
September 30, 1996 from 38.1% for the three months ended
September 30, 1995. This percentage decrease resulted primarily
from the increases in the average prices of oil and natural gas
sold during the three months ended September 30, 1996 as compared
to the three months ended September 30, 1995.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses decreased to 8.4% for the three
months ended September 30, 1996 from 17.6% for the three months
ended September 30, 1995. This percentage decrease resulted
primarily from the increases in the average prices of oil and
natural gas sold during the three months ended September 30, 1996
as compared to the three months ended September 30, 1995.
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NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
-------------------------------
1996 1995
-------- --------
Oil and gas sales $571,579 $374,716
Oil and gas production expenses $115,605 $163,256
Barrels produced 1,651 2,155
Mcf produced 271,632 260,450
Average price/Bbl $ 19.79 $ 17.67
Average price/Mcf $ 1.98 $ 1.29
As shown in the table above, oil and natural gas sales increased
by $196,863 (52.5%) for the nine months ended September 30, 1996
as compared to the nine months ended September 30, 1995. Of this
increase, $179,711 was related to the increase in the average
price of natural gas sold and $22,140 was related to the increase
in the volumes of natural gas sold. Volumes of oil sold
decreased by 504 barrels, while volumes of natural gas sold
increased by 11,182 Mcf during the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
The decrease in the volumes of oil sold resulted primarily from
the normal declines in production due to diminished oil reserves
on five wells during the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995. Average
oil and natural gas prices increased to $19.79 per barrel and
$1.98 per Mcf, respectively, for the nine months ended September
30, 1996 from $17.67 per barrel and $1.29 per Mcf, respectively,
for the nine months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased by $47,651 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease was primarily due to the
reversal of a $20,000 accrual during the nine months ended
September 30, 1996 due to the conclusion of a certain legal
contingency and significant workover charges incurred on one well
during the nine months ended September 30, 1995 in order to
improve the recovery of reserves. As a percentage of oil and gas
sales, these expenses decreased to 20.2% for the nine months
ended September 30, 1996 from 43.6% for the nine months ended
September 30, 1995. This percentage decrease resulted primarily
from the accrual reversal discussed above and the increases in
the average prices of oil and natural gas sold during the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties increased $5,308 for the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
This increase resulted primarily from the increase in the volumes
of natural gas sold during the nine months ended September 30,
1996 as compared to the nine months ended September 30, 1995,
partially offset by an upward revision in the estimate of
remaining natural gas reserves at December 31, 1995. As a
percentage of oil and gas sales, this expense decreased to 20.8%
for the nine months ended September 30, 1996 from 30.4% for the
-16-
<PAGE>
<PAGE>
nine months ended September 30, 1995. This percentage decrease
resulted primarily from the increases in the average prices of
oil and natural gas sold during the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1996 as compared to the
nine months ended September 30, 1995. As a percentage of oil and
gas sales, these expenses decreased to 9.2% for the nine months
ended September 30, 1996 from 14.3% for the nine months ended
September 30, 1995. This percentage decrease resulted primarily
from the increases in the average prices of oil and natural gas
sold during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995.
1980-2 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
-------- --------
Oil and gas sales $225,719 $256,894
Oil and gas production expenses $ 23,554 $169,688
Barrels produced 509 546
Mcf produced 95,731 161,427
Average price/Bbl $ 22.10 $ 18.15
Average price/Mcf $ 2.24 $ 1.53
As shown in the table above, oil and natural gas sales decreased
$31,175 (12.1%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
decrease, $147,159 was related to the decrease in the volumes of
natural gas sold, partially offset by a $114,613 increase which
was related to the increase in the average price of natural gas
sold. Volumes of oil and natural gas sold decreased by 37
barrels and 65,696 Mcf, respectively, for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. The decrease in the volumes of natural gas
sold resulted primarily from a significant positive prior period
adjustment made by the purchaser on one well during the three
months ended September 30, 1995. Average oil and natural gas
prices increased to $22.10 per barrel and $2.24 per Mcf,
respectively, for the three months ended September 30, 1996 from
$18.15 per barrel and $1.53 per Mcf, respectively, for the three
months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $146,134 for the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. This decrease resulted primarily from
significant workover charges incurred on one well during the
three months ended September 30, 1995 in order to improve the
recovery of reserves and the reversal of a $20,000 accrual during
the three months ended September 30, 1996 due to the conclusion
of a certain legal contingency. As a percentage of oil and gas
sales, these expenses decreased to 10.4% for the three months
ended September 30, 1996 from 66.1% for the three months ended
-17-
<PAGE>
<PAGE>
September 30, 1995. This percentage decrease resulted primarily
from (i) the dollar decrease in production expenses related to
the workover charges and accrual reversal discussed above and
(ii) the increases in the average prices of oil and natural gas
sold during the three months ended September 30, 1996 as compared
to the three months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $28,742 for the three months ended September
30, 1996 as compared to the three months ended September 30,
1995. This decrease was primarily a result of (i) the decrease
in the volumes of oil and natural gas sold during the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995 and (ii) an upward revision in the
estimate of remaining natural gas reserves at December 31, 1995.
As a percentage of oil and gas sales, this expense decreased to
15.1% for the three months ended September 30, 1996 from 24.5%
for the three months ended September 30, 1995. This percentage
decrease resulted primarily from the increases in the average
prices of oil and natural gas sold during the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses remained relatively constant at
10.4% for the three months ended September 30, 1996 as compared
to 9.0% for the three months ended September 30, 1995.
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
-------------------------------
1996 1995
-------- --------
Oil and gas sales $854,395 $632,869
Oil and gas production expenses $141,190 $336,711
Barrels produced 1,406 1,646
Mcf produced 436,775 452,020
Average price/Bbl $ 19.60 $ 17.97
Average price/Mcf $ 1.89 $ 1.33
As shown in the table above, oil and natural gas sales increased
$221,526 (35.0%) for the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995. Of this
increase, $253,131 was related to the increase in the average
price of natural gas sold, partially offset by a $28,813 decrease
related to the decrease in the volumes of natural gas sold.
Volumes of oil and natural gas sold decreased by 240 barrels and
15,245 Mcf, respectively, during the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
The decrease in the volumes of oil sold resulted primarily from
the normal declines in production on several wells due to
diminished oil reserves during the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
The average prices of oil and natural gas sold increased to
$19.60 per barrel and $1.89 per Mcf, respectively, for the nine
months ended September 30, 1996 from $17.97 per barrel and $1.33
-18-
<PAGE>
<PAGE>
per Mcf, respectively, for the nine months ended September 30,
1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $195,521 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease resulted primarily from
significant workover charges incurred on one well during the nine
months ended September 30, 1995 in order to improve the recovery
of reserves and the reversal of a $20,000 accrual during the nine
months ended September 30, 1996 due to the conclusion of a
certain legal contingency. As a percentage of oil and gas sales,
these expenses decreased to 16.5% for the nine months ended
September 30, 1996 from 53.2% for the nine months ended September
30, 1995. This percentage decrease resulted primarily from (i)
the decrease in the workover charges and the accrual reversal
discussed above and (ii) the increases in the average prices of
oil and natural gas sold during the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased by $28,860 for the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995. This decrease was primarily the result of (i) an
upward revision in the estimate of remaining natural gas reserves
at December 31, 1995 and (ii) the decrease in the volumes of oil
and natural gas sold during the nine months ended September 30,
1996 as compared to the nine months ended September 30, 1995. As
a percentage of oil and gas sales, this expense decreased to
16.0% for the nine months ended September 30, 1996 from 26.1% for
the nine months ended September 30, 1995. This percentage
decrease resulted primarily from the increases in the average
prices of oil and natural gas sold during the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1996 as compared to the
nine months ended September 30, 1995. As a percentage of oil and
gas sales, these expenses decreased to 9.1% for the nine months
ended September 30, 1996 from 12.4% for the nine months ended
September 30, 1995. This percentage decrease resulted primarily
from the increases in the average prices of oil and natural gas
sold during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995.
-19-
<PAGE>
<PAGE>
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On November 12, 1992 Larry and Leona Beck filed a lawsuit against
Dyco Petroleum Corporation ("Dyco") and others in which the
plaintiffs alleged damages to their land as a result of
remediation operations conducted on the Paul King No. 1-7 well
(Beck v. Trigg Drilling Company, Inc., et al., C-92-227, District
Court of Beckham County, Oklahoma). The 1980-1 Program had an
approximate 4.6% working interest in the Paul King No. 1-7 well
at the time the lawsuit was filed and the 1980-2 Program had an
approximate 4.7% working interest in the Paul King #1-7 well at
the time the lawsuit was filed. 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 filed petitions for certiorari with the Supreme
Court of Oklahoma seeking a further review of the Court of
Appeals opinion, both of which petitions for certiorari were
denied on July 3, 1996. The case has been remanded to the
district court for a new trial.
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 the Thurmond Ranch #1-2 well. (John B. Thurmond,
Trustee v. Dyco, Case No. CS-93-10; District Court of Roger Mills
County, Oklahoma). The 1980-1 Program has an approximate 15%
working interest in the Thurmond Ranch #1-2 well. 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. On September 10, 1996 the Oklahoma Supreme Court ruled
in a separate lawsuit that owners of royalty interests in
Oklahoma oil and gas properties do not have the right to share in
the proceeds of take-or-pay settlements. Such ruling is not yet
final. 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.
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 the Marshall Young No. 2-4, Mikles No.
-20-
<PAGE>
<PAGE>
3-4, and Hunter-Ryan No. 1 wells (Tom Mikles, et al. v. Dyco
Petroleum Corporation, Case No. C-93-190, District Court of
Beckham County, Oklahoma). The 1980-1 Program has an approximate
1.2% working interest in the Marshall Young No. 2-4 well and an
approximate and an approximate 3.1% working interest in the
Mikles No. 3-4 and Hunter-Ryan No. 1 wells, while the 1908-2
Program has an approximate 1.3% working interest in the Marshall
Young No. 204 well and an approximate 3.2% working interest in
the Mikles No. 3-4 and Hunter-Ryan No. 1 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. On September 10, 1996
the Oklahoma Supreme Court ruled in a separate lawsuit that
owners of royalty interests in Oklahoma oil and gas properties do
not have the right to share in the proceeds of take-or-pay
settlements. Such ruling is not yet final. 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 the Kinney-Warren No. 3-10, Fender No.
4-10, Mikles No. 1-10, and Damron No. 1-10 wells (Gene Mikles, et
al. v. Dyco Petroleum Corporation, et al., District Court of
Beckham County, Oklahoma). The 1980-1 Program has an approximate
2.3% working interest in the Kinney-Warren No. 3-10 and Fender
No. 4-10 wells and an approximate 5.7% working interest in the
Mikles No. 1-10 and Damron No. 1-10 wells, while the 1980-2
Program has an approximate 2.4% working interest in the Kinney-
Warren No. 3-10 and Fender No. 4-10 wells and an approximate 5.9%
working interest in the MiKles No. 1-10 and Damron No. 1-10
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 these financial statements, the district court
has not ruled on the motion. Dyco intends to vigorously defend
-21-
<PAGE>
<PAGE>
the lawsuit. On September 10, 1996 the Oklahoma Supreme Court
ruled in a separate lawsuit that owners of royalty interests in
Oklahoma oil and gas properties do not have the right to share in
the proceeds of take-or-pay settlements. Such ruling is not yet
final. 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 Program
has an interest failed to exercise due diligence in locating the
owner while in the process of force pooling the drilling and
spacing unit (Merle McCollum, as Personal Representative of the
Estate of Jack McCollum, Deceased v. Apache Corporation, et al.,
District Court of Beckham County, Oklahoma). The wells in
question included the Kinney-Warren No. 3-10, Fender No. 4-10,
Mikles No. 1-10, and Damron No. 1-10. The 1980-1 Program has an
approximate 2.3% working interest in the Kinney-Warren No. 3-10
and Fender No. 4-10 wells and an approximate 5.7% working
interest in the Mikles No. 1-10 well and Damron No. 1-10 wells,
while the 1980-2 Program has an approximate 2.4% working interest
in the Kinney-Warren No. 3-10 and Fender No. 4-10 wells and an
approximate 5.9% working interest in the Mikles No. 1-10 and
Damron No. 1-10 wells. 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 well 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. Judgement 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. On
September 23, 1996 the plaintiffs entered into a settlement
agreement releasing the defendants from all remaining claims
under this lawsuit.
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 the Richmond No. 1-7 well. (Dolores
Wynn, Trustee of the Dolores Wynn Revocable Living Trust v. Dyco,
Case No. CJ-95-31, District Court of Dewey County, Oklahoma).
The 1980-1 Program has an approximate 5.12% working interest in
the Richmond No. 1-7 well. 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. On September 10, 1996 the Oklahoma Supreme Court ruled
in a separate lawsuit that owners of royalty interests in
Oklahoma oil and gas properties do not have the right to share in
the proceeds of take-or-pay settlements. Such ruling is not yet
final. As of the date of these financial statements, management
-22-
<PAGE>
<PAGE>
cannot determine the amount of any alleged damages which would be
allocable to the 1980-1 Program from this lawsuit.
ITEM 5. OTHER INFORMATION
On October 1, 1996, Drew Phillips resigned as Chief Financial
Officer of Dyco. Mr. Phillips continues to serve as an
accounting officer of affiliates of Dyco.
On October 1, 1996, Patrick M. Hall was elected Chief Financial
Officer of Dyco. Mr. Hall joined affiliates of Dyco
(collectively, the "Samson Companies") in 1983. Prior to joining
the Samson Companies he was a senior accountant with Peat Marwick
Main & Co. in Tulsa. He holds a Bachelor of Science degree in
accounting from Oklahoma State University and is a Certified
Public Accountant. Mr. Hall is also Senior Vice President -
Controller of Samson Investment Company.
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 September 30,
1996 and for the nine months ended September 30,
1996, filed herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the 1980-2
Program's financial statements as of September 30,
1996 and for the nine months ended September 30,
1996, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K
Current Reports on Form 8-K filed during third quarter of
1996:
Date of event: July 1, 1996
Date filed with SEC: July 8, 1996
Item Included:
Item 5 - Other Events
-23-
<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 6, 1996 By: /s/Dennis R. Neill
------------------------------
(Signature)
Dennis R. Neill
President
Date: November 6, 1996 By: /s/Patrick M. Hall
------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
-24-
<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
September 30, 1996 and for the nine months ended September
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
September 30, 1996 and for the nine months ended September
30, 1996, filed herewith.
All other exhibits are omitted as inapplicable.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806576
<NAME> DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 255,720
<SECURITIES> 0
<RECEIVABLES> 104,219
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 359,939
<PP&E> 29,760,408
<DEPRECIATION> 29,202,734
<TOTAL-ASSETS> 1,064,669
<CURRENT-LIABILITIES> 72,906
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 954,667
<TOTAL-LIABILITY-AND-EQUITY> 1,064,669
<SALES> 571,579
<TOTAL-REVENUES> 578,668
<CGS> 0
<TOTAL-COSTS> 287,513
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 291,155
<INCOME-TAX> 0
<INCOME-CONTINUING> 291,155
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 291,155
<EPS-PRIMARY> 72.07
<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-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 281,516
<SECURITIES> 0
<RECEIVABLES> 125,968
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 407,484
<PP&E> 35,421,390
<DEPRECIATION> 35,073,608
<TOTAL-ASSETS> 945,941
<CURRENT-LIABILITIES> 113,673
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 677,742
<TOTAL-LIABILITY-AND-EQUITY> 945,941
<SALES> 854,395
<TOTAL-REVENUES> 866,052
<CGS> 0
<TOTAL-COSTS> 355,536
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 510,516
<INCOME-TAX> 0
<INCOME-CONTINUING> 510,516
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 510,516
<EPS-PRIMARY> 100.91
<EPS-DILUTED> 0
</TABLE>
