<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, 1997 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,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 93,086 $ 227,376
Accrued oil and gas sales 95,189 156,135
-------- ----------
Total current assets $188,275 $ 383,511
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 487,148 578,468
DEFERRED CHARGE 100,640 100,640
-------- ----------
$776,063 $1,062,619
======== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 8,048 $ 7,876
Gas imbalance payable 1,034 1,034
-------- ----------
Total current liabilities $ 9,082 $ 8,910
ACCRUED LIABILITY 35,428 35,428
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 40 units 7,316 10,183
Limited Partners, issued and
outstanding, 4,000 units 724,237 1,008,098
-------- ----------
Total Partners' capital $731,553 $1,018,281
-------- ----------
$776,063 $1,062,619
======== ==========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $150,705 $181,262
Interest 1,312 3,436
-------- --------
$152,017 $184,698
COST AND EXPENSES:
Oil and gas production $ 42,212 $ 16,283
Depreciation, depletion, and
amortization of oil and gas
properties 19,345 37,903
General and administrative (Note 2) 16,157 15,270
-------- --------
$ 77,714 $ 69,456
-------- --------
NET INCOME $ 74,303 $115,242
======== ========
GENERAL PARTNER (1%) - net
income $ 743 $ 1,152
======== ========
LIMITED PARTNERS (99%) - net
income $ 73,560 $114,090
======== ========
NET INCOME PER UNIT $ 18.39 $ 28.53
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $525,961 $571,579
Interest 5,801 7,089
-------- --------
$531,762 $578,668
COST AND EXPENSES:
Oil and gas production $107,005 $115,605
Depreciation, depletion, and
amortization of oil and gas
properties 90,589 119,118
General and administrative (Note 2) 55,296 52,790
-------- --------
$252,890 $287,513
-------- --------
NET INCOME $278,872 $291,155
======== ========
GENERAL PARTNER (1%) - net
income $ 2,789 $ 2,912
======== ========
LIMITED PARTNERS (99%) - net
income $276,083 $288,243
======== ========
NET INCOME PER UNIT $ 69.03 $ 72.07
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $278,872 $291,155
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 90,589 119,118
Decrease in accrued oil and gas
sales 60,946 5,472
Increase in accounts payable 172 22,459
-------- --------
Net cash provided by operating
activities $430,579 $438,204
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 3,050 $ 10,804
Additions to oil and gas properties ( 2,319) ( 16,526)
-------- --------
Net cash provided (used) by
investing activities $ 731 ($ 5,722)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($565,600) ($282,800)
-------- --------
Net cash used by financing
activities ($565,600) ($282,800)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($134,290) $149,682
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 227,376 106,038
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 93,086 $255,720
======== ========
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,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $287,367 $ 369,731
Accrued oil and gas sales 111,318 177,467
-------- ----------
Total current assets $398,685 $ 547,198
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 299,101 389,863
DEFERRED CHARGE 72,884 72,884
-------- ----------
$770,670 $1,009,945
======== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 8,128 $ 11,033
Gas imbalance payable 64,761 64,761
-------- ----------
Total current liabilities $ 72,889 $ 75,794
ACCRUED LIABILITY 97,574 97,574
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 59 units 6,002 8,366
Limited Partners, issued and
outstanding, 5,000 units 594,205 828,211
-------- ----------
Total Partners' capital $600,207 $ 836,577
-------- ----------
$770,670 $1,009,945
======== ==========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- ---------
REVENUES:
Oil and gas sales $119,563 $225,719
Interest 3,063 5,557
-------- --------
$122,626 $231,276
COST AND EXPENSES:
Oil and gas production $ 33,644 $ 23,554
Depreciation, depletion, and
amortization of oil and gas
properties 9,131 34,077
General and administrative (Note 2) 24,077 23,366
-------- --------
$ 66,852 $ 80,997
-------- --------
NET INCOME $ 55,774 $150,279
======== ========
GENERAL PARTNER (1%) - net
income $ 558 $ 1,503
======== ========
LIMITED PARTNERS (99%) - net
income $ 55,216 $148,776
======== ========
NET INCOME PER UNIT $ 11.02 $ 29.71
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- ---------
REVENUES:
Oil and gas sales $612,959 $854,395
Interest 10,542 11,657
-------- --------
$623,501 $866,052
COST AND EXPENSES:
Oil and gas production $118,366 $141,190
Depreciation, depletion, and
amortization of oil and gas
properties 78,970 136,547
General and administrative (Note 2) 80,750 77,799
-------- --------
$278,086 $355,536
-------- --------
NET INCOME $345,415 $510,516
======== ========
GENERAL PARTNER (1%) - net
income $ 3,454 $ 5,105
======== ========
LIMITED PARTNERS (99%) - net
income $341,961 $505,411
======== ========
NET INCOME PER UNIT $ 68.28 $ 100.91
======== ========
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, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $345,415 $510,516
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 78,970 136,547
(Increase) decrease in accrued oil
and gas sales 66,149 ( 8,070)
Increase (decrease) in accounts
payable ( 2,905) 22,403
-------- --------
Net cash provided by operating
activities $487,629 $661,396
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 14,207 $ 21,812
Additions to oil and gas properties ( 2,415) ( 17,215)
-------- --------
Net cash provided by investing
activities $ 11,792 $ 4,597
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($581,785) ($657,670)
-------- --------
Net cash used by financing
activities ($581,785) ($657,670)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 82,364) $ 8,323
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 369,731 273,193
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $287,367 $281,516
======== ========
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, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 1997, statements of
operations for the three and nine months ended September 30, 1997
and 1996, and statements of cash flows for the nine months ended
September 30, 1997 and 1996 have been prepared by Dyco Petroleum
Corporation ("Dyco"), the General Partner of the Dyco Oil and Gas
Program 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, 1997, results of operations for the three and
nine months ended September 30, 1997 and 1996, and changes in
cash flows for the nine months ended September 30, 1997 and 1996
have been made.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto
included in the Programs' Annual Report on Form 10-K for the year
ended December 31, 1996. The results of operations for the
period ended September 30, 1997 are not necessarily indicative of
the results to be expected for the full year.
The limited partners' net income or loss per unit is based upon
each $5,000 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
Oil and gas operations are accounted for using the full cost
method of accounting. All productive and non-productive costs
associated with the acquisition, exploration and development of
oil and gas reserves are capitalized. The Programs' calculation
of depreciation, depletion, and amortization includes estimated
future expenditures to be incurred in developing proved reserves
and estimated dismantlement and abandonment costs, net of
estimated salvage values. In the event the unamortized cost of
oil and gas properties being amortized exceeds the full cost
ceiling (as defined by the Securities and Exchange Commission),
the excess is charged to expense in the period during which such
excess occurs. Sales and abandonments of properties are
accounted for as adjustments of capitalized costs with no gain or
loss recognized, unless such adjustments would significantly
alter the relationship between capitalized costs and proved oil
and gas reserves.
The provision for depreciation, depletion, and amortization of
oil and gas properties is calculated by dividing the oil and gas
sales dollars during the period by the estimated future gross
income from the oil and gas properties and applying the resulting
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rate to the net remaining costs of oil and gas properties that
have been capitalized, plus estimated future development costs.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
Under the terms of each of the Program's partnership agreement,
Dyco is entitled to receive a reimbursement for all direct
expenses and general and administrative, geological and
engineering expenses it incurs on behalf of the Program. During
the three months ended September 30, 1997 and 1996 the 1980-1
Program incurred such expenses totaling $16,156 and $15,270,
respectively, of which $14,022 was paid each period to Dyco and
its affiliates. During the nine months ended September 30, 1997
and 1996 the 1980-1 Program incurred such expenses totaling
$55,296 and $52,790, respectively, of which $42,066 was paid each
period to Dyco and its affiliates. During the three months ended
September 30, 1997 and 1996 the 1980-2 Program incurred such
expenses totaling $24,078 and $23,366, respectively, of which
$21,405 was paid each period to Dyco and its affiliates. During
the nine months ended September 30, 1997 and 1996 the 1980-2
Program incurred such expenses totaling $80,750 and $77,799,
respectively, of which $64,215 was paid each period to Dyco and
its affiliates.
Affiliates of the Programs operate certain of the Programs'
properties. Their policy is to bill the Programs for all
customary charges and cost reimbursements associated with these
activities.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking
statements. The words "anticipate," "believe," "expect," "plan,"
"intend," "estimate," "project," "could," "may," and similar
expressions are intended to identify forward-looking statements.
Such statements reflect management's current views with respect
to future events and financial performance. This Quarterly
Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions
are management's efforts to accurately reflect the condition and
operation of the Programs.
Use of forward-looking statements and estimates and assumptions
involve risks and uncertainties which include, but are not
limited to, the volatility of oil and gas prices, the uncertainty
of reserve information, the operating risk associated with oil
and gas properties (including the risk of personal injury, death,
property damage, damage to the well or producing reservoir,
environmental contamination, and other operating risks), the
prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the
general economic climate, the supply and price of foreign imports
of oil and gas, the level of consumer product demand, and the
price and availability of alternative fuels. Should one or more
of these risks or uncertainties occur or should estimates or
underlying assumptions prove incorrect, actual conditions or
results may vary materially and adversely from those stated,
anticipated, believed, estimated, or otherwise indicated.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Net proceeds from the Programs' operations less necessary
operating capital are distributed to investors on a quarterly
basis. The net proceeds from production are not reinvested in
productive assets, except to the extent that producing wells are
improved or where methods are employed to permit more efficient
recovery of the Programs' reserves which would result in a
positive economic impact.
The Programs' available capital from subscriptions has been spent
on oil and gas drilling activities. There should not be any
further material capital resource commitments in the future. The
Programs have no bank debt commitments. Cash for operational
purposes will be provided by current oil and gas production.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction
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with the analysis of results of operations provided below. The
most important variable affecting the Programs' revenues is the
prices received for the sale of oil and gas. Predicting future
prices is very difficult. Substantially all of the Programs' gas
reserves are being sold in the "spot market". Prices on the spot
market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot
market. In addition, such spot market sales are generally short-
term in nature and are dependent upon the obtaining of
transportation services provided by pipelines. Management is
unable to predict whether future oil and gas prices will (i)
stabilize, (ii) increase, or (iii) decrease.
1980-1 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $150,705 $181,262
Oil and gas production expenses $ 42,212 $ 16,283
Barrels produced 289 602
Mcf produced 66,111 75,826
Average price/Bbl $ 17.85 $ 22.03
Average price/Mcf $ 2.20 $ 2.22
As shown in the table above, total oil and gas sales decreased
$30,557 (16.9%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
decrease, approximately $7,000 and $22,000, respectively, were
related to decreases in volumes of oil and gas sold. Volumes of
oil and gas sold decreased 313 barrels and 9,715 Mcf,
respectively, for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. The
decrease in volumes of oil sold resulted primarily from (i) a
positive prior period volume adjustment made by the operator on
one well for the three months ended September 30, 1996 and (ii) a
negative prior period volume adjustment made by the operator on
another well for the three months ended September 30, 1997. The
decrease in volumes of gas sold resulted primarily from normal
declines in production due to diminished gas reserves on one
well. Average oil and gas prices decreased to $17.85 per barrel
and $2.20 per Mcf, respectively, for the three months ended
September 30, 1997 from $22.03 per barrel and $2.22 per Mcf,
respectively, for the three months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $25,929 (159.2%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This increase resulted
primarily from (i) site restoration expenses incurred on two
wells during the three months ended September 30, 1997 and (ii)
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 increased to 28.0% for the three months ended September
30, 1997 from 9.0% for the three months ended September 30, 1996.
This percentage increase was primarily due to the dollar increase
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in oil and gas production expenses discussed above.
Depreciation, depletion, and amortization of oil and gas
properties decreased $18,558 (49.0%) for the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996. This decrease resulted primarily from upward
revisions in the estimates of remaining oil and gas reserves at
December 31, 1996. As a percentage of oil and gas sales, this
expense decreased to 12.8% for the three months ended September
30, 1997 from 20.9% for the three months ended September 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above.
General and administrative expenses increased $887 (5.8%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This increase resulted
primarily from an increase in computer consulting fees during the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. As a percentage of oil and gas
sales, these expenses increased to 10.7% for the three months
ended September 30, 1997 from 8.4% for the three months ended
September 30, 1996. This percentage increase was primarily due
to the decrease in oil and gas sales discussed above.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
-------------------------------
1997 1996
-------- --------
Oil and gas sales $525,961 $571,579
Oil and gas production expenses $107,005 $115,605
Barrels produced 1,246 1,651
Mcf produced 218,463 271,632
Average price/Bbl $ 20.65 $ 19.79
Average price/Mcf $ 2.29 $ 1.98
As shown in the table above, total oil and gas sales decreased
$45,618 (8.0%) for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
decrease, approximately $8,000 and $105,000, respectively, were
related to decreases in volumes of oil and gas sold, partially
offset by an increase of approximately $67,000 related to the
increase in the average price of gas sold. Volumes of oil and
gas sold decreased 405 barrels and 53,169 Mcf, respectively, for
the nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. The decrease in volumes of oil
sold resulted primarily from (i) normal declines in production
due to diminished oil reserves on two wells and (ii) a positive
prior period volume adjustment made by the operator on one well
during the nine months ended September 30, 1996. The decrease in
volumes of gas sold resulted primarily from normal declines in
production due to diminished gas reserves on three wells.
Average oil and gas prices increased to $20.65 per barrel and
$2.29 per Mcf, respectively, for the nine months ended September
30, 1997 from $19.79 per barrel and $1.98 per Mcf, respectively,
for the nine months ended September 30, 1996.
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Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $8,600 (7.4%) for the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. This decrease resulted
primarily from (i) decreases in volumes of oil and gas sold
during the nine months ended September 30, 1997 as compared to
the nine months ended September 30, 1996, (ii) a decrease in
production taxes associated with the decrease in oil and gas
sales discussed above, (iii) workover expenses incurred on one
well during the nine months ended September 30, 1996 in order to
improve the recovery of reserves, and (iv) the sale of a well
during the third quarter of 1996, which decrease was partially
offset by 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 remained relatively constant at 20.3% for the nine
months ended September 30, 1997 as compared to 20.2% for the nine
months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $28,529 (24.0%) for the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. This decrease resulted primarily from (i) decreases in
volumes of oil and gas sold during the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996 and (ii) upward revisions in the estimates of remaining
oil and gas reserves at December 31, 1996. As a percentage of
oil and gas sales, this expense decreased to 17.2% for the nine
months ended September 30, 1997 from 20.8% for the nine months
ended September 30, 1996. This percentage decrease was primarily
due to the dollar decrease in depreciation, depletion, and
amortization discussed above and the increases in the average
prices of oil and gas sold during the nine months ended September
30, 1997 as compared to the nine months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses increased to 10.5% for the nine months
ended September 30, 1997 from 9.2% for the nine months ended
September 30, 1996. This percentage increase was primarily due
to the decrease in oil and gas sales discussed above.
1980-2 PROGRAM
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $119,563 $225,719
Oil and gas production expenses $ 33,644 $ 23,554
Barrels produced 102 509
Mcf produced 58,414 95,731
Average price/Bbl $ 16.33 $ 22.10
Average price/Mcf $ 2.02 $ 2.24
As shown in the table above, total oil and gas sales decreased
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$106,156 (47.0%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
decrease, approximately $84,000 and $13,000, respectively, were
related to decreases in both the volumes and average price of gas
sold. Volumes of oil and gas sold decreased 407 barrels and
37,317 Mcf, respectively, for the three months ended September
30, 1997 as compared to the three months ended September 30,
1996. The decrease in volumes of oil sold resulted primarily
from the normal decline in production due to diminished oil
reserves on one well. The decrease in volumes of gas sold
resulted primarily from negative prior period volume adjustments
made by the purchaser on two wells during the three months ended
September 30, 1997. Average oil and gas prices decreased to
$16.33 per barrel and $2.02 per Mcf, respectively, for the three
months ended September 30, 1997 from $22.10 per barrel and $2.24
per Mcf, respectively, for the three months ended September 30,
1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $10,090 (42.8%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This increase resulted
primarily from the reversal of a $20,000 accrual during the three
months ended September 30, 1996 due to the conclusion of a
certain legal contingency, partially offset by (i) decreases in
volumes of oil and gas sold during the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996 and (ii) a decrease in production taxes
associated with the decreases in oil and gas sales discussed
above. As a percentage of oil and gas sales, these expenses
increased to 28.1% for the three months ended September 30, 1997
from 10.4% for the three months ended September 30, 1996. This
percentage increase was primarily due to the dollar increase in
oil and gas production expenses discussed above.
Depreciation, depletion, and amortization of oil and gas
properties decreased $24,946 (73.2%) for the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996. This decrease resulted primarily from upward
revisions in the estimates of remaining oil and gas reserves at
December 31, 1996. As a percentage of oil and gas sales, this
expense decreased to 7.6% for the three months ended September
30, 1997 from 15.1% for the three months ended September 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. As a percentage of oil
and gas sales, these expenses increased to 20.1% for the three
months ended September 30, 1997 from 10.4% for the three months
ended September 30, 1996. This percentage increase was primarily
due to the decrease in oil and gas sales discussed above.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
-------------------------------
-16-
<PAGE>
<PAGE>
1997 1996
-------- --------
Oil and gas sales $612,959 $854,395
Oil and gas production expenses $118,366 $141,190
Barrels produced 830 1,406
Mcf produced 279,518 436,775
Average price/Bbl $ 20.95 $ 19.60
Average price/Mcf $ 2.13 $ 1.89
As shown in the table above, total oil and gas sales decreased
$241,436 (28.3%) for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
decrease, approximately $297,000 was related to a decrease in
volumes of gas sold, partially offset by an increase of
approximately $67,000 related to the increase in the average
price of gas sold. Volumes of oil and gas sold decreased 576
barrels and 157,257 Mcf, respectively, for the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. The decrease in volumes of oil sold resulted primarily
from (i) normal declines in production due to diminished oil
reserves on two wells and (ii) a positive prior period volume
adjustment made by the operator on one well during the nine
months ended September 30, 1996. The decrease in volumes of gas
sold resulted primarily from (i) negative prior period volume
adjustments made by the operator on one well during the nine
months ended September 30, 1997 and (ii) positive prior period
volume adjustments made by the operator of one well during the
nine months ended September 30, 1996. Average oil and gas prices
increased to $20.95 per barrel and $2.13 per Mcf, respectively,
for the nine months ended September 30, 1997 from $19.60 per
barrel and $1.89 per Mcf, respectively, for the nine months ended
September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $22,824 (16.2%) for the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. This decrease resulted
primarily from (i) decreases in volumes of oil and gas sold
during the nine months ended September 30, 1997 as compared to
the nine months ended September 30, 1996 and (ii) a decrease in
production taxes associated with the decrease in oil and gas
sales discussed above, which decrease was partially offset by 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 increased to 19.3% for the nine months ended September
30, 1997 from 16.5% for the nine months ended September 30, 1996.
This percentage increase was primarily due to the reversal of the
$20,000 legal accrual discussed above.
Depreciation, depletion, and amortization of oil and gas
properties decreased $57,577 (42.2%) for the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. This decrease resulted primarily from (i) decreases in
volumes of oil and gas sold during the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996 and (ii) upward revisions in the estimates of remaining
oil and gas reserves at December 31, 1996. As a percentage of
oil and gas sales, this expense decreased to 12.9% for the nine
months ended September 30, 1997 from 16.0% for the nine months
-17-
<PAGE>
<PAGE>
ended September 30, 1996. This percentage decrease was primarily
due to the dollar decrease in depreciation, depletion, and
amortization discussed above and the increases in the average
prices of oil and gas sold during the nine months ended September
30, 1997 as compared to the nine months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses increased to 13.2% for the nine months
ended September 30, 1997 from 9.1% for the nine months ended
September 30, 1996. This percentage increase was primarily due
to the decrease in oil and gas sales discussed above.
-18-
<PAGE>
<PAGE>
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary
financial information extracted from the 1980-1
Program's financial statements as of September 30,
1997 and for the nine months ended September 30,
1997, filed herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the 1980-2
Program's financial statements as of September 30,
1997 and for the nine months ended September 30,
1997, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K
None.
-19-
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
DYCO OIL AND GAS PROGRAM 1980-1 LIMITED
PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED
PARTNERSHIP
(Registrant)
By: DYCO PETROLEUM CORPORATION
General Partner
Date: November 3, 1997 By: /s/Dennis R. Neill
------------------------------
(Signature)
Dennis R. Neill
President
Date: November 3, 1997 By: /s/Patrick M. Hall
------------------------------
(Signature)
Patrick M. Hall
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
September 30, 1997 and for the nine months ended September
30, 1997, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1980-2 Limited Partnership's financial statements as of
September 30, 1997 and for the nine months ended September
30, 1997, filed herewith.
All other exhibits are omitted as inapplicable.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806576
<NAME> DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 93,086
<SECURITIES> 0
<RECEIVABLES> 95,189
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 188,275
<PP&E> 29,749,400
<DEPRECIATION> 29,262,252
<TOTAL-ASSETS> 776,063
<CURRENT-LIABILITIES> 9,082
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 731,553
<TOTAL-LIABILITY-AND-EQUITY> 776,063
<SALES> 525,961
<TOTAL-REVENUES> 531,762
<CGS> 0
<TOTAL-COSTS> 252,890
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 278,872
<INCOME-TAX> 0
<INCOME-CONTINUING> 278,872
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 278,872
<EPS-PRIMARY> 69.03
<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-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 287,367
<SECURITIES> 0
<RECEIVABLES> 111,318
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 398,685
<PP&E> 35,403,563
<DEPRECIATION> 35,104,462
<TOTAL-ASSETS> 770,670
<CURRENT-LIABILITIES> 72,889
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 600,207
<TOTAL-LIABILITY-AND-EQUITY> 770,670
<SALES> 612,959
<TOTAL-REVENUES> 623,501
<CGS> 0
<TOTAL-COSTS> 278,086
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 345,415
<INCOME-TAX> 0
<INCOME-CONTINUING> 345,415
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 345,415
<EPS-PRIMARY> 68.28
<EPS-DILUTED> 0
</TABLE>
