<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/x/ Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1995, or
/ / Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from _______ to _______
Commission File No. 33-12244-1
PARKER & PARSLEY 87-A, LTD.
(Exact name of Registrant as specified in its charter)
Texas 75-2185148
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 West Wall, Suite 101,
Midland, Texas 79701
(Address of principal executive offices) (Zip code)
Registrant's Telephone Number, including area code: (915)683-4768
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
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 / /
Page 1 of 15 pages.
There are no exhibits.
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PARKER & PARSLEY 87-A, LTD.
(A Texas Limited Partnership)
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BALANCE SHEETS
June 30, December 31,
1995 1994
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents, including
interest bearing deposits of $376,871
at June 30 and $142,195 at December 31 $ 377,314 $ 142,638
Accounts receivable - oil and gas sales 269,602 271,715
----------- -----------
Total current assets 646,916 414,353
Oil and gas properties - at cost, based
on the successful efforts accounting
method 22,939,524 23,456,669
Accumulated depletion (15,059,275) (14,904,255)
----------- -----------
Net oil and gas properties 7,880,249 8,552,414
----------- -----------
$ 8,527,165 $ 8,966,767
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable - affiliate $ 200,941 $ 159,856
Accounts payable - other 10,188 -
----------- -----------
Total current liabilities 211,129 159,856
Partners' capital:
Limited partners (28,811 interests) 8,232,879 8,718,846
Managing general partner 83,157 88,065
----------- -----------
8,316,036 8,806,911
----------- -----------
$ 8,527,165 $ 8,966,767
=========== ===========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
2
<PAGE> 3
PARKER & PARSLEY 87-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
June 30, June 30,
1995 1994 1995 1994
---------- ---------- ---------- ----------
Revenues:
Oil and gas sales $ 628,516 $ 622,473 $1,227,819 $1,171,996
Interest income 3,540 2,368 6,453 3,446
Other income - 598 - 598
Gain on sale of assets 35,068 - 35,068 -
--------- --------- --------- ---------
Total revenues 667,124 625,439 1,269,340 1,176,040
Costs and expenses:
Production costs 311,662 386,005 644,386 704,481
General and adminis-
trative expenses 18,856 18,641 36,835 35,067
Depletion 263,430 177,264 546,212 438,235
Abandoned property costs 11,093 - 11,093 -
--------- --------- --------- ---------
Total costs and
expenses 605,041 581,910 1,238,526 1,177,783
--------- --------- --------- ---------
Net income (loss) $ 62,083 $ 43,529 $ 30,814 $ (1,743)
========= ========= ========= =========
Allocation of net
income (loss):
Managing general
partner $ 620 $ 436 $ 308 $ (17)
========= ========= ========= ========
Limited partners $ 61,463 $ 43,093 $ 30,506 $ (1,726)
========= ========= ========= ========
Net income (loss) per
limited partnership
interest $ 2.13 $ 1.50 $ 1.06 $ (.06)
========= ========= ========= ========
Distributions per limited
partnership interest $ 8.51 $ 9.00 $ 17.93 $ 15.90
========= ========= ========= ========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
3
<PAGE> 4
PARKER & PARSLEY 87-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF PARTNERS' CAPITAL
(Unaudited)
Managing
general Limited
partner partners Total
----------- ----------- -----------
Balance at January 1, 1994 $ 98,267 $ 9,728,729 $ 9,826,996
Distributions (4,627) (458,095) (462,722)
Net loss (17) (1,726) (1,743)
---------- ---------- ----------
Balance at June 30, 1994 $ 93,623 $ 9,268,908 $ 9,362,531
========== ========== ==========
Balance at January 1, 1995 $ 88,065 $ 8,718,846 $ 8,806,911
Distributions (5,216) (516,473) (521,689)
Net income 308 30,506 30,814
---------- ---------- ----------
Balance at June 30, 1995 $ 83,157 $ 8,232,879 $ 8,316,036
========== ========== ==========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
4
<PAGE> 5
PARKER & PARSLEY 87-A, LTD.
(A Texas Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
June 30,
1995 1994
---------- ----------
Cash flows from operating activities:
Net income (loss) $ 30,814 $ (1,743)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion 546,212 438,235
Gain on sale of assets (35,068) -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 2,113 (32,704)
Increase in accounts payable 20,541 9,273
--------- ---------
Net cash provided by operating
activities 564,612 413,061
Cash flows from investing activities:
Disposals (additions) to oil and gas
properties 35,183 (7,213)
Proceeds from sale of assets 156,570 -
--------- ---------
Net cash provided by (used in)
investing activities 191,753 (7,213)
Cash flows from financing activities:
Cash distributions to partners (521,689) (462,722)
--------- ---------
Net increase (decrease) in cash and
cash equivalents 234,676 (56,874)
Cash and cash equivalents at beginning
of period 142,638 242,119
--------- ---------
Cash and cash equivalents at end of period $ 377,314 $ 185,245
========= =========
The financial information included herein has been prepared by
management without audit by independent public accountants.
The accompanying notes are an integral part of these statements.
5
<PAGE> 6
PARKER & PARSLEY 87-A, LTD.
(A Texas Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
(Unaudited)
NOTE 1.
In the opinion of management, the unaudited financial statements as of
June 30, 1995 of Parker & Parsley 87-A, Ltd. (the "Registrant") include
all adjustments and accruals consisting only of normal recurring accrual
adjustments which are necessary for a fair presentation of the results
for the interim period. However, the results of operations for the six
months ended June 30, 1995 are not necessarily indicative of the results
for the full year ending December 31, 1995.
The financial statements should be read in conjunction with the
financial statements and the notes thereto contained in the Registrant's
Report on Form 10-K for the year ended December 31, 1994, as filed with
the Securities and Exchange Commission, a copy of which is available
upon request by writing to Steven L. Beal, Senior Vice President, 303
West Wall, Suite 101, Midland, Texas 79701.
NOTE 2.
On May 25, 1993, a final settlement agreement was negotiated, drafted
and finally executed, ending litigation which had begun on September 5,
1989, when the Registrant filed suit along with other parties against
Dresser Industries, Inc.; Titan Services, Inc.; BJ-Titan Services
Company; BJ-Hughes Holding Company; Hughes Tool Company; Baker Hughes
Production Tools, Inc.; and Baker Hughes Incorporated alleging that the
defendants had intentionally failed to provide the materials and
services ordered and paid for by the Registrant and other parties in
connection with the fracturing and acidizing of 523 wells, and then
fraudulently concealed the shorting practice from the managing general
partner, Parker & Parsley Development L.P. ("PPDLP") (see Item 2). The
May 25, 1993 settlement agreement called for a payment of $115 million
in cash by the defendants. The managing general partner received the
funds, deducted incurred legal expenses, accrued interest, determined
the general partner's portion of the funds and calculated any
inter-partnership allocations. A distribution of $91,000,000 was made
6
<PAGE> 7
to the working interest owners, including the Registrant, on July 30,
1993. The limited partners received their distribution of $8,257,794,
or $286.62 per limited partnership interest, in September 1993.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G.
"Zeke" Lancaster in the Federal Court lawsuit, filed suit in State Court
in Beaumont against all of the plaintiff partnerships, including the
Registrant and others, alleging his entitlement to 12% of the settlement
proceeds. Price's lawsuit claim for approximately $13.8 million is
predicated on a purported contract entered into with Southmark
Corporation in August 1988, in which he allegedly binds the Registrant
and the other defendants, as well as Southmark. Although PPDLP believes
the lawsuit is without merit and intends to vigorously defend it, PPDLP
is holding in reserve approximately 12.5% of the total settlement
pending final resolution of the litigation by the court. Trial is
currently scheduled for April 1996 and, assuming a successful defense,
upon payment of the costs associated with the litigation, a second
distribution will be made consisting of the balance of the settlement
funds, including any accrued interest.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Registrant was formed August 15, 1987. The managing general partner
of the Registrant at December 31, 1994 was Parker & Parsley Development
Company ("PPDC"). On January 1, 1995, PPDLP, a Texas limited
partnership, became the sole managing general partner of the Registrant,
by acquiring the rights and assuming the obligations of PPDC. PPDC was
merged into PPDLP on January 1, 1995. PPDLP acquired PPDC's rights and
obligations as managing general partner of the Registrant in connection
with the merger of PPDC, P&P Producing, Inc. and Spraberry Development
Corporation into MidPar L.P., which survived the merger with a change of
name to PPDLP. The sole general partner of PPDLP is Parker & Parsley
Petroleum USA, Inc. PPDLP has the power and authority to manage,
control and administer all Registrant affairs. The limited partners
contributed $28,811,000 representing 28,811 interests ($1,000 per
interest) sold to a total of 2,264 limited partners.
Since its formation, the Registrant invested $23,701,221 in various
prospects that were drilled in Texas and Colorado. At June 30, 1995,
the Registrant had 86 producing oil and gas wells. Two wells were
determined to be dry holes and two wells have been abandoned, one in a
prior period and one in 1995. In addition, six wells were sold during
1995.
7
<PAGE> 8
Results of Operations
Six months ended June 30, 1995 compared with six months ended
June 30, 1994
Revenues:
The Registrant's oil and gas revenues increased to $1,227,819 from
$1,171,996 for the six months ended June 30, 1995 and 1994,
respectively, an increase of 5%. The increase in revenues resulted from
increases in the average prices received per barrel of oil and mcf of
gas and a 4% increase in mcf of gas produced and sold, offset by an 11%
decline in barrels of oil produced and sold. For the six months ended
June 30, 1995, 52,819 barrels of oil were sold compared to 59,030 for
the same period in 1994, a decrease of 6,211 barrels. For the six
months ended June 30, 1995, 181,587 mcf of gas were sold compared to
174,121 for the same period in 1994, an increase of 7,466 mcf. The
decrease in oil production was due to the decline characteristics of the
Registrant's oil and gas properties. The increase in gas production was
the result of operational changes on several wells. Management expects
a certain amount of decline in production in the future until the
Registrant's economically recoverable reserves are fully depleted.
The average price received per barrel of oil increased $2.58 from $14.97
for the six months ended June 30, 1994 to $17.55 for the same period in
1995 while the average price received per mcf of gas increased from
$1.65 during the six months ended June 30, 1994 to $1.66 in 1995. The
market price for oil and gas has been extremely volatile in the past
decade, and management expects a certain amount of volatility to
continue in the foreseeable future. The Registrant may therefore sell
its future oil and gas production at average prices lower or higher than
that received during the six months ended June 30, 1995.
A gain of $35,068 on the sale of six wells was recognized during the six
months ended June 30, 1995, resulting from proceeds received of $156,570
less the write-off of remaining capitalized well costs of $111,314 and a
$10,188 payable due on the sale for post-closing adjustments.
Costs and Expenses:
Total costs and expenses increased to $1,238,526 for the six months
ended June 30, 1995 as compared to $1,177,783 for the same period ended
June 30, 1994, an increase of $60,743, or 5%. This increase was due to
increases in general and administrative expenses ("G&A"), abandoned
property costs and depletion, offset by a decline in production costs.
8
<PAGE> 9
Production costs were $644,386 for the six months ended June 30, 1995
and $704,481 for the same period in 1994 resulting in a decrease of
$60,095, or 9%. The decrease was primarily the result of a decline in
workover expense and lower ad valorem taxes.
G&A's components are independent accounting and engineering fees,
computer services, postage and managing general partner personnel costs.
During this period, G&A increased, in aggregate, 5% from $35,067 for the
six months ended June 30, 1994 to $36,835 for the same period in 1995.
The Partnership agreement limits G&A to 3% of gross oil and gas
revenues.
Depletion was $546,212 for the six months ended June 30, 1995 compared
to $438,235 for the same period in 1994. This represented an increase
in depletion of $107,977, or 25%. Depletion was calculated on a
property-by-property basis utilizing the unit-of-production method based
upon the dominant mineral produced, generally oil, and using oil prices
in effect at the end of the respective quarter. Oil production
decreased 6,211 barrels for the six months ended June 30, 1995 from the
same period in 1994. Depletion expense for the six months ended June
30, 1995 was calculated based on reserves computed utilizing an oil
price of $16.31 per barrel. Comparatively, depletion expense for the
three months ended June 30, 1994 was calculated based on reserves
computed utilizing an oil price of $18.25 per barrel while depletion
expense for the three months ended March 31, 1994 was calculated based
on reserves computed utilizing an oil price of $12.75 per barrel.
Abandoned property costs of $11,093 were incurred during the six months
ended June 30, 1995 from the plugging and abandonment of one
uneconomical well. There was no abandonment activity during the same
period in 1994.
On May 25, 1993, a final settlement agreement was negotiated, drafted
and finally executed, ending litigation which had begun on September 5,
1989, when the Registrant filed suit along with other parties against
Dresser Industries, Inc.; Titan Services, Inc.; BJ-Titan Services
Company; BJ-Hughes Holding Company; Hughes Tool Company; Baker Hughes
Production Tools, Inc.; and Baker Hughes Incorporated alleging that the
defendants had intentionally failed to provide the materials and
services ordered and paid for by the Registrant and other parties in
connection with the fracturing and acidizing of 523 wells, and then
fraudulently concealed the shorting practice from the managing general
partner. The May 25, 1993 settlement agreement called for a payment of
$115 million in cash by the defendants. PPDLP received the funds,
9
<PAGE> 10
deducted incurred legal expenses, accrued interest, determined the
general partner's portion of the funds and calculated any
inter-partnership allocations. A distribution of $91,000,000 was made
to the working interest owners, including the Registrant, on July 30,
1993. The limited partners received their distribution of $8,257,794,
or $286.62 per limited partnership interest, in September 1993.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G.
"Zeke" Lancaster in the Federal Court lawsuit, filed suit in State Court
in Beaumont against all of the plaintiff partnerships, including the
Registrant and others, alleging his entitlement to 12% of the settlement
proceeds. Price's lawsuit claim for approximately $13.8 million is
predicated on a purported contract entered into with Southmark
Corporation in August 1988, in which he allegedly binds the Registrant
and the other defendants, as well as Southmark. Although PPDLP believes
the lawsuit is without merit and intends to vigorously defend it, PPDLP
is holding in reserve approximately 12.5% of the total settlement
pending final resolution of the litigation by the court. Trial is
currently scheduled for April 1996, and assuming a successful defense,
upon payment of the costs associated with the litigation, a second
distribution will be made consisting of the balance of the settlement
funds, including any accrued interest.
Three months ended June 30, 1995 compared with three months ended
June 30, 1994
Revenues:
The Registrant's oil and gas revenues increased to $628,516 from
$622,473 for the three months ended June 30, 1995 and 1994,
respectively, an increase of $6,043. The increase in revenues resulted
from a 10% increase in mcf of gas produced and sold and an increase in
the average price received per barrel of oil, offset by an 8% decrease
in barrels of oil produced and sold and a decrease in the average price
received per mcf of gas. For the three months ended June 30, 1995,
26,488 barrels of oil were sold compared to 28,859 for the same period
in 1994, a decrease of 2,371 barrels. For the three months ended June
30, 1995, 99,999 mcf of gas were sold compared to 90,632 for the same
period in 1994, an increase of 9,367 mcf. The decrease in oil produced
and sold was due to the decline characteristics of the Registrant's oil
and gas properties, while the increase in gas produced and sold was the
result of operational changes on several wells.
10
<PAGE> 11
The average price received per barrel of oil increased $1.33 from $16.64
for the three months ended June 30, 1994 to $17.97 for the same period
in 1995 while the average price received per mcf of gas decreased from
$1.57 during the three months ended June 30, 1994 to $1.52 for the same
period in 1995.
A gain of $35,068 on the sale of six wells was recognized during the
three months ended June 30, 1995, resulting from proceeds received of
$156,570 less the write-off of remaining capitalized well costs of
$111,314 and a $10,188 payable due on the sale for post-closing
adjustments.
Costs and Expenses:
Total costs and expenses increased to $605,041 for the three months
ended June 30, 1995 as compared to $581,910 for the same period in 1994,
an increase of $23,131, or 4%. This increase was due to increases in
G&A, abandoned property costs and depletion, offset by a decline in
production costs.
Production costs were $311,662 for the three months ended June 30, 1995
and $386,005 for the same period in 1994 resulting in a $74,343
decrease, or 19%. This decrease was primarily the result of declines in
well repair and maintenance costs, workover expense and ad valorem
taxes.
G&A's components are independent accounting and engineering fees,
computer services, postage and managing general partner personnel costs.
During this period, G&A increased slightly from $18,641 for the three
months ended June 30, 1994 to $18,856 for the same period in 1995.
Depletion was $263,430 for the three months ended June 30, 1995 compared
to $177,264 for the same period in 1994. This represented an increase
in depletion of $86,166, or 49%. Depletion was calculated on a
property-by-property basis utilizing the unit-of-production method based
upon the dominant mineral produced, generally oil, and using oil prices
in effect at the end of the respective quarter. Oil production
decreased 2,371 barrels for the three months ended June 30, 1995 from
the same period in 1994. Depletion expense for the three months ended
June 30, 1995 was calculated based on reserves computed utilizing an oil
price of $16.31 per barrel. Comparatively, depletion expense for the
three months ended June 30, 1994 was calculated based on reserves
computed utilizing an oil price of $18.25 per barrel.
Abandoned property costs of $11,093 were incurred during the three
months ended June 30, 1995 from the plugging and abandonment of one
uneconomical well.
11
<PAGE> 12
Liquidity and Capital Resources
Net Cash Provided by Operating Activities
Net cash provided by operating activities increased to $564,612 during
the six months ended June 30, 1995, a 37% increase from the same period
ended June 30, 1994. This increase was due to an increase in oil and
gas sales and a decrease in production costs, offset by an increase in
abandoned property costs. The increase in oil and gas sales was due to
an increase in the average prices received for both oil and gas and an
increase in mcf of gas produced and sold. The decline in production
costs was primarily the result of a decrease in workover expense.
Abandoned property costs increased due to the abandonment of one well
during the six months ended June 30, 1995 as compared to no abandonment
activity for the same period in 1994.
Net Cash Provided by (Used in) Investing Activities
The Registrant's principal investing activities during the six months
ended June 30, 1995 resulted in proceeds received of $35,183 derived
from the disposal of oil and gas equipment on active properties. For
the six months ended June 30, 1994, investment activities were $7,213
for expenditures related to repair and maintenance activity on various
oil and gas properties.
Proceeds of $156,570 were received during the six months ended June 30,
1995 from the sale of six oil and gas wells.
Net Cash Used in Financing Activities
Cash was sufficient for the six months ended June 30, 1995 to cover
distributions to the partners of $521,689 of which $516,473 was
distributed to the limited partners and $5,216 to the managing general
partner. For the same period ended June 30, 1994, cash was sufficient
for distributions to the partners of $462,722 of which $458,095 was
distributed to the limited partners and $4,627 to the managing general
partner.
It is expected that future net cash provided by operating activities
will be sufficient for any capital expenditures and any distributions.
As the production from the properties declines, distributions are also
expected to decrease.
12
<PAGE> 13
Accounting Standard on Impairment of Long-Lived Assets
In March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 121 - Accounting for Impairment of
Long-lived Assets and for Long-lived Assets to Be Disposed Of ("FAS
121") regarding the impairment of long-lived assets, identifiable
intangibles and goodwill related to those assets. FAS 121 is effective
for financial statements for fiscal years beginning after December 15,
1995, although earlier adoption is encouraged. The application of FAS
121 to oil and gas companies utilizing the successful efforts method
(such as the Registrant) will require periodic determination of whether
the book value of long-lived assets exceeds the future cash flows
expected to result from the use of such assets and, if so, will require
reduction of the carrying amount of the "impaired" assets to their
estimated fair values. There is currently a great deal of uncertainty
as to how FAS 121 will apply to oil and gas companies using the
successful efforts method, including uncertainty regarding the
determination of expected future cash flows from the relevant assets
and, if an impairment is determined to exist, their estimated fair
value. There is also uncertainty regarding the level at which the test
might be applied. Given this uncertainty, the Registrant is currently
unable to estimate the effect that FAS 121 will have on the Registrant's
results of operations for the period in which it is adopted.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On May 25, 1993, a final settlement agreement was negotiated, drafted
and finally executed, ending litigation which had begun on September 5,
1989, when the Registrant filed suit along with other parties against
Dresser Industries, Inc.; Titan Services, Inc.; BJ-Titan Services
Company; BJ-Hughes Holding Company; Hughes Tool Company; Baker Hughes
Production Tools, Inc.; and Baker Hughes Incorporated alleging that the
defendants had intentionally failed to provide the materials and
services ordered and paid for by the Registrant and other parties in
connection with the fracturing and acidizing of 523 wells, and then
fraudulently concealed the shorting practice from PPDLP. The May 25,
1993 settlement agreement called for a payment of $115 million in cash
by the defendants. PPDLP received the funds, deducted incurred legal
expenses, accrued interest, determined the general partner's portion of
the funds and calculated any inter-partnership allocations. A
13
<PAGE> 14
distribution of $91,000,000 was made to the working interest owners,
including the Registrant, on July 30, 1993. The limited partners
received their distribution of $8,257,794, or $286.62 per limited
partnership interest, in September 1993.
On May 3, 1993, Jack N. Price, the attorney who represented Gary G.
"Zeke" Lancaster in the Federal Court lawsuit, filed suit in State Court
in Beaumont against all of the plaintiff partnerships, including the
Registrant and others, alleging his entitlement to 12% of the settlement
proceeds. Price's lawsuit claim for approximately $13.8 million is
predicated on a purported contract entered into with Southmark
Corporation in August 1988, in which he allegedly binds the Registrant
and the other defendants, as well as Southmark. Although PPDLP believes
the lawsuit is without merit and intends to vigorously defend it, PPDLP
is holding in reserve approximately 12.5% of the total settlement
pending final resolution of the litigation by the court. Trial is
currently scheduled for April 1996 and, assuming a successful defense,
upon payment of the costs associated with the litigation, a second
distribution will be made consisting of the balance of the settlement
funds, including any accrued interest.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - none
(b) Reports on Form 8-K - none
14
<PAGE> 15
PARKER & PARSLEY 87-A, LTD.
(A Texas Limited Partnership)
S I G N A T U R E S
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.
PARKER & PARSLEY 87-A, LTD.
By: Parker & Parsley Development L.P.,
Managing General Partner
By: Parker & Parsley Petroleum USA, Inc.
("PPUSA"), General Partner
Dated: August 9,1995 By: /s/ Steven L. Beal
---------------------------------------
Steven L. Beal, Senior Vice
President and Chief Financial
Officer of PPUSA
15
<PAGE> 16
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000810999
<NAME> 87A.FDS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 377,314
<SECURITIES> 0
<RECEIVABLES> 269,602
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 646,916
<PP&E> 22,939,524
<DEPRECIATION> 15,059,275
<TOTAL-ASSETS> 8,527,165
<CURRENT-LIABILITIES> 211,129
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 8,316,036
<TOTAL-LIABILITY-AND-EQUITY> 8,527,165
<SALES> 1,227,819
<TOTAL-REVENUES> 1,269,340
<CGS> 0
<TOTAL-COSTS> 1,238,526
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 30,814
<INCOME-TAX> 0
<INCOME-CONTINUING> 30,814
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 30,814
<EPS-PRIMARY> 1.06
<EPS-DILUTED> 0
</TABLE>
