<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended Commission File Number
June 30, 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
June 30, December 31,
1997 1996
--------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 80,240 $ 227,376
Accrued oil and gas sales 93,657 156,135
-------- ----------
Total current assets $173,897 $ 383,511
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 506,940 578,468
DEFERRED CHARGE 100,640 100,640
-------- ----------
$781,477 $1,062,619
======== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 6,965 $ 7,876
Gas imbalance payable 1,034 1,034
-------- ----------
Total current liabilities $ 7,999 $ 8,910
ACCRUED LIABILITY 35,428 35,428
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 40 units 7,381 10,183
Limited Partners, issued and
outstanding, 4,000 units 730,669 1,008,098
-------- ----------
Total Partners' capital $738,050 $1,018,281
-------- ----------
$781,477 $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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $149,689 $207,141
Interest 2,001 2,403
-------- --------
$151,690 $209,544
COST AND EXPENSES:
Oil and gas production $ 27,346 $ 35,628
Depreciation, depletion, and
amortization of oil and gas
properties 17,552 43,710
General and administrative (Note 2) 16,278 17,487
-------- --------
$ 61,176 $ 96,825
-------- --------
NET INCOME $ 90,514 $112,719
======== ========
GENERAL PARTNER (1%) - net
income $ 905 $ 1,127
======== ========
LIMITED PARTNERS (99%) - net
income $ 89,609 $111,592
======== ========
NET INCOME PER UNIT $ 22.40 $ 27.90
======== ========
UNITS OUTSTANDING 4,040 4,040
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $375,256 $390,317
Interest 4,489 3,653
-------- --------
$379,745 $393,970
COST AND EXPENSES:
Oil and gas production $ 64,793 $ 99,322
Depreciation, depletion, and
amortization of oil and gas
properties 71,244 81,215
General and administrative (Note 2) 39,139 37,520
-------- --------
$175,176 $218,057
-------- --------
NET INCOME $204,569 $175,913
======== ========
GENERAL PARTNER (1%) - net
income $ 2,046 $ 1,759
======== ========
LIMITED PARTNERS (99%) - net
income $202,523 $174,154
======== ========
NET INCOME PER UNIT $ 50.64 $ 43.54
======== ========
UNITS OUTSTANDING 4,040 4,040
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $204,569 $175,913
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 71,244 81,215
(Increase) decrease in accrued oil
and gas sales 62,478 ( 7,526)
Increase (decrease) in accounts
payable ( 911) 44,902
-------- --------
Net cash provided by operating
activities $337,380 $294,504
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 1,256 $ 6,342
Additions to oil and gas properties ( 972) ( 10,748)
-------- --------
Net cash provided (used) by
investing activities $ 284 ($ 4,406)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($484,800) ($101,000)
-------- --------
Net cash used by financing
activities ($484,800) ($101,000)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($147,136) $189,098
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 227,376 106,038
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 80,240 $295,136
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $209,008 $ 369,731
Accrued oil and gas sales 123,984 177,467
-------- ----------
Total current assets $332,992 $ 547,198
NET OIL AND GAS PROPERTIES, utilizing
the full cost method 309,413 389,863
DEFERRED CHARGE 72,884 72,884
-------- ----------
$715,289 $1,009,945
======== ==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 8,521 $ 11,033
Gas imbalance payable 64,761 64,761
-------- ----------
Total current liabilities $ 73,282 $ 75,794
ACCRUED LIABILITY 97,574 97,574
PARTNERS' CAPITAL:
General Partner, issued and
outstanding, 59 units 5,444 8,366
Limited Partners, issued and
outstanding, 5,000 units 538,989 828,211
-------- ----------
Total Partners' capital $544,433 $ 836,577
-------- ----------
$715,289 $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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- ---------
REVENUES:
Oil and gas sales $227,229 $437,007
Interest 3,621 3,201
-------- --------
$230,850 $440,208
COST AND EXPENSES:
Oil and gas production $ 41,963 $ 54,617
Depreciation, depletion, and
amortization of oil and gas
properties 22,344 71,812
General and administrative (Note 2) 24,199 25,760
-------- --------
$ 88,506 $152,189
-------- --------
NET INCOME $142,344 $288,019
======== ========
GENERAL PARTNER (1%) - net
income $ 1,423 $ 2,880
======== ========
LIMITED PARTNERS (99%) - net
income $140,921 $285,139
======== ========
NET INCOME PER UNIT $ 28.14 $ 56.93
======== ========
UNITS OUTSTANDING 5,059 5,059
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- ---------
REVENUES:
Oil and gas sales $493,396 $628,676
Interest 7,479 6,100
-------- --------
$500,875 $634,776
COST AND EXPENSES:
Oil and gas production $ 84,722 $117,636
Depreciation, depletion, and
amortization of oil and gas
properties 69,839 102,470
General and administrative (Note 2) 56,673 54,433
-------- --------
$211,234 $274,539
-------- --------
NET INCOME $289,641 $360,237
======== ========
GENERAL PARTNER (1%) - net
income $ 2,896 $ 3,602
======== ========
LIMITED PARTNERS (99%) - net
income $286,745 $356,635
======== ========
NET INCOME PER UNIT $ 57.25 $ 71.21
======== ========
UNITS OUTSTANDING 5,059 5,059
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $289,641 $360,237
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 69,839 102,470
(Increase) decrease in accrued oil
and gas sales 53,483 ( 7,173)
Increase (decrease) in accounts
payable ( 2,512) 44,627
-------- --------
Net cash provided by operating
activities $410,451 $500,161
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale of oil and
gas properties $ 11,623 $ 9,309
Additions to oil and gas properties ( 1,012) ( 11,196)
-------- --------
Net cash provided (used) by
investing activities $ 10,611 ($ 1,887)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($581,785) ($278,245)
-------- --------
Net cash used by financing
activities ($581,785) ($278,245)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($160,723) $220,029
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 369,731 273,193
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $209,008 $493,222
======== ========
The accompanying condensed notes are an
integral part of these financial statements.
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DYCO OIL AND GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
DYCO OIL AND GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
CONDENSED NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1997, statements of operations
for the three and six months ended June 30, 1997 and 1996, and
statements of cash flows for the six months ended June 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 June 30, 1997, results of operations for the three and six
months ended June 30, 1997 and 1996, and changes in cash flows
for the six months ended June 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 June 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 Program's 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
rate to the net remaining costs of oil and gas properties that
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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 June 30, 1997 and 1996 the 1980-1 Program
incurred such expenses totaling $16,278 and $17,487,
respectively, of which $14,022 was paid quarterly to Dyco and
each affiliates. During the six months ended June 30, 1997 and
1996 the 1980-1 Program incurred such expenses totaling $39,139
and $37,520, respectively, of which $28,044 was paid each period
to Dyco and each affiliates. During the three months ended June
30, 1997 and 1996 the 1980-2 Program incurred such expenses
totaling $24,199 and $25,760, respectively, of which $21,405 was
paid quarterly to Dyco and its affiliates. During the six months
ended June 30, 1997 and 1996 the 1980-2 Program incurred such
expenses totaling $56,673 and $54,433, respectively, of which
$42,810 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.
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RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction
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 JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three months ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $149,689 $207,141
Oil and gas production expenses $ 27,346 $ 35,628
Barrels produced 470 511
Mcf produced 57,368 105,948
Average price/Bbl $ 20.66 $ 18.55
Average price/Mcf $ 2.44 $ 1.87
As shown in the table above, total oil and gas sales decreased
$57,452 (27.7%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $91,000 was related to a decrease in
volumes of gas sold, partially offset by an increase of
approximately $33,000 related to the increase in the average
price of gas sold. Volumes of oil and gas sold decreased 41
barrels and 48,580 Mcf, respectively, for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. The decrease in volumes of gas sold resulted primarily
from positive gas balancing adjustments made by the operator on
two wells during the three months ended June 30, 1996. Average
oil and gas prices increased to $20.66 per barrel and $2.44 per
Mcf, respectively, for the three months ended June 30, 1997 from
$18.55 per barrel and $1.87 per Mcf, respectively, for the three
months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $8,282 (23.3%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, these expenses
remained relatively constant at 18.3% for the three months ended
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June 30, 1997 and 17.2% for the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $26,158 (59.8%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) decreases in
volumes of oil and gas sold during the three months ended June
30, 1997 as compared to the three months ended June 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 11.7% for the three months ended
June 30, 1997 from 21.1% for the three months ended June 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 three months ended June 30, 1997 as compared to the
three months ended June 30, 1996.
General and administrative expenses decreased $1,209 (6.9%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This decrease resulted primarily
from a decrease in professional fees during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, these expenses
increased to 10.9% for the three months ended June 30, 1997 from
8.4% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six months ended June 30,
-------------------------
1997 1996
-------- --------
Oil and gas sales $375,256 $390,317
Oil and gas production expenses $ 64,793 $ 99,322
Barrels produced 957 1,049
Mcf produced 152,352 195,806
Average price/Bbl $ 21.50 $ 18.51
Average price/Mcf $ 2.33 $ 1.89
As shown in the table above, total oil and gas sales decreased
$15,061 (3.9%) for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. Of this decrease,
approximately $2,000 and $82,000, respectively, were related to
decreases in volumes of oil and gas sold, partially offset by
increases of approximately $3,000 and $67,000, respectively,
related to increases in the average prices of oil and gas sold.
Volumes of oil and gas sold decreased 92 barrels and 43,454 Mcf,
respectively, for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. The decrease in volumes
of gas sold resulted primarily from (i) normal declines in
production due to diminished gas reserves on two wells and (ii) a
positive gas balancing adjustment made by the operator on one
well during the six months ended June 30, 1996. Average oil and
gas prices increased to $21.50 per barrel and $2.33 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.51
per barrel and $1.89 per Mcf, respectively, for the six months
ended June 30, 1996.
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Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $34,529 (34.8%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996, (ii) workover expenses incurred on one well during the six
months ended June 30, 1996 in order to improve the recovery of
reserves, (iii) the sale of another well during the third quarter
of 1996, and (iv) the shutting-in of one well during the six
months ended June 30, 1997 due to mechanical difficulties. As a
percentage of oil and gas sales, these expenses decreased to
17.3% for the six months ended June 30, 1997 from 25.4% for the
six months ended June 30, 1996. This percentage decrease was
primarily due to increases in the average prices of oil and gas
sold during the six months ended June 30, 1997 as compared to the
six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $9,971 (12.3%) for the six months ended June
30, 1997 as compared to the six months ended June 30, 1996. This
decrease resulted primarily from decreases in volumes of oil and
gas sold during the six months ended June 30, 1997 as compared to
the six months ended June 30, 1996. As a percentage of oil and
gas sales, this expense remained relatively constant at 19.0% as
compared to 20.8% for the six months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses remained relatively constant at 10.4% for
the six months ended June 30, 1997 as compared to 9.6% for the
six months ended June 30, 1996.
1980-2 PROGRAM
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three months ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $227,229 $437,007
Oil and gas production expenses $ 41,963 $ 54,617
Barrels produced 341 382
Mcf produced 110,765 245,349
Average price/Bbl $ 21.02 $ 17.88
Average price/Mcf $ 1.99 $ 1.75
As shown in the table above, total oil and gas sales decreased
$209,778 (48.0%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $236,000 was related to a decrease in
volumes of gas sold, partially offset by an increase of
approximately $27,000 related to the increase in the average
price of gas sold. Volumes of oil and gas sold decreased 41
barrels and 134,584 Mcf, respectively, for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. The decrease in volumes of gas sold resulted primarily
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from positive gas balancing adjustments made by the operator on
two wells during the three months ended June 30, 1996. Average
oil and gas prices increased to $21.02 per barrel and $1.99 per
Mcf, respectively, for the three months ended June 30, 1997 from
$17.88 per barrel and $1.75 per Mcf, respectively, for the three
months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $12,654 (23.2%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996 and (ii) a decrease in production taxes associated with
the decrease in oil and gas sales discussed above, partially
offset by an increase in lease operating expenses due to workover
expenses incurred on one well during the three months ended June
30, 1997 in order to improve the recovery of reserves. As a
percentage of oil and gas sales, these expenses increased to
18.5% for the three months ended June 30, 1997 from 12.5% for the
three months ended June 30, 1996. This percentage increase was
primarily due to the increase in workover expenses discussed
above.
Depreciation, depletion, and amortization of oil and gas
properties decreased $49,468 (68.9%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) decreases in
volumes of oil and gas sold during the three months ended June
30, 1997 as compared to the three months ended June 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 9.8% for the three months ended
June 30, 1997 from 16.4% for the three months ended June 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 three months ended June 30, 1997 as compared to the
three months ended June 30, 1996.
General and administrative expenses decreased $1,561 (6.1%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This decrease resulted primarily
from a decrease in professional fees during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, these expenses
increased to 10.6% for the three months ended June 30, 1997 from
5.9% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
-16-
<PAGE>
<PAGE>
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six months ended June 30,
-------------------------
1997 1996
-------- --------
Oil and gas sales $493,396 $628,676
Oil and gas production expenses $ 84,722 $117,636
Barrels produced 728 897
Mcf produced 221,104 341,044
Average price/Bbl $ 21.60 $ 18.19
Average price/Mcf $ 2.16 $ 1.80
As shown in the table above, total oil and gas sales decreased
$135,280 (21.5%) for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Of this
decrease, approximately $216,000 was related to a decrease in
volumes of gas sold, partially offset by an increase of
approximately $80,000 related to the increase in the average
price of gas sold. Volumes of oil and gas sold decreased 169
barrels and 119,940 Mcf, respectively, for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
The decrease in volumes of gas sold resulted primarily from a
positive gas balancing adjustment made by the operator on one
well during the six months ended June 30, 1996. Average oil and
gas prices increased to $21.60 per barrel and $2.16 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.19
per barrel and $1.80 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $32,914 (28.0%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996 and (ii) a decrease in production taxes associated with the
decrease in oil and gas sales discussed above. As a percentage
of oil and gas sales, these expenses remained relatively constant
at 17.2% for the six months ended June 30, 1997 and 18.7% for the
six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $32,631 (31.8%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from decreases in volumes of oil
and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. As a percentage
of oil and gas sales, this expense decreased to 14.2% for the six
months ended June 30, 1997 from 16.3% for the six months ended
June 30, 1996. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses increased to 11.5% for the six months ended
-17-
<PAGE>
<PAGE>
June 30, 1997 from 8.7% for the six months ended June 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 June 30, 1997
and for the six months ended June 30, 1997, filed
herewith.
27.2 Financial Data Schedule containing summary
financial information extracted from the 1980-2
Program's financial statements as of June 30, 1997
and for the six months ended June 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: August 6, 1997 By: /s/Dennis R. Neill
------------------------------
(Signature)
Dennis R. Neill
President
Date: August 6, 1997 By: /s/Patrick M. Hall
------------------------------
(Signature)
Patrick M. Hall
Chief Financial Officer
-20-
<PAGE>
<PAGE>
INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Dyco Oil and Gas Program
1980-1 Limited Partnership's financial statements as of June
30, 1997 and for the six months ended June 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 June
30, 1997 and for the six months ended June 30, 1997, filed
herewith.
All other exhibits are omitted as inapplicable.
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806576
<NAME> DYCO OIL & GAS PROGRAM 1980-1 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 80,240
<SECURITIES> 0
<RECEIVABLES> 93,657
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 173,897
<PP&E> 29,749,847
<DEPRECIATION> 29,242,907
<TOTAL-ASSETS> 781,477
<CURRENT-LIABILITIES> 7,999
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 738,050
<TOTAL-LIABILITY-AND-EQUITY> 781,477
<SALES> 375,256
<TOTAL-REVENUES> 379,745
<CGS> 0
<TOTAL-COSTS> 175,176
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 204,569
<INCOME-TAX> 0
<INCOME-CONTINUING> 204,569
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 204,569
<EPS-PRIMARY> 50.64
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000806577
<NAME> DYCO OIL & GAS PROGRAM 1980-2 LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 209,008
<SECURITIES> 0
<RECEIVABLES> 123,984
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 332,992
<PP&E> 35,404,744
<DEPRECIATION> 35,095,331
<TOTAL-ASSETS> 715,289
<CURRENT-LIABILITIES> 73,282
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 544,433
<TOTAL-LIABILITY-AND-EQUITY> 715,289
<SALES> 493,396
<TOTAL-REVENUES> 500,875
<CGS> 0
<TOTAL-COSTS> 211,234
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 289,641
<INCOME-TAX> 0
<INCOME-CONTINUING> 289,641
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 289,641
<EPS-PRIMARY> 57.25
<EPS-DILUTED> 0
</TABLE>
