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 March 31, 1998
Commission File Number:
III-A: 0-18302 III-B: 0-18636 III-C: 0-18634
III-D: 0-18936 III-E: 0-19010 III-F: 0-19102
III-G: 0-19563
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
---------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
III-A 73-1352993
III-B 73-1358666
III-C 73-1356542
III-D 73-1357374
III-E 73-1367188
III-F 73-1377737
Oklahoma III-G 73-1377828
- ---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
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
------ ------
1
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 564,915 $ 522,371
Accounts receivable:
Oil and gas sales 382,366 524,541
General Partner (Note 2) 10,146 -
Other - 308
---------- ----------
Total current assets $ 957,427 $1,047,220
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,520,685 2,669,949
DEFERRED CHARGE 199,722 199,722
---------- ----------
$3,677,834 $3,916,891
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 39,995 $ 39,622
Gas imbalance payable 38,418 38,418
---------- ----------
Total current liabilities $ 78,413 $ 78,040
ACCRUED LIABILITY $ 51,905 $ 51,905
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 206,468) ($ 198,271)
Limited Partners, issued and
outstanding, 263,976 units 3,753,984 3,985,217
---------- ----------
Total Partners' capital $3,547,516 $3,786,946
---------- ----------
$3,677,834 $3,916,891
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
2
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $616,201 $1,015,744
Interest income 5,963 5,277
Gain (loss) on sale of oil and
gas properties 8,114 ( 21,958)
-------- ----------
$630,278 $ 999,063
COST AND EXPENSES:
Lease operating $ 79,357 $ 130,632
Production tax 44,419 72,095
Depreciation, depletion, and
amortization of oil and gas
properties 143,569 247,976
Impairment provision - 1,617,006
General and administrative
(Note 2) 91,131 80,354
-------- ----------
$358,476 $2,148,063
-------- ----------
NET INCOME (LOSS) $271,802 ($1,149,000)
======== ==========
GENERAL PARTNER - NET INCOME $ 19,035 $ 16,885
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $252,767 ($1,165,885)
======== ==========
NET INCOME (LOSS) per unit $ .96 ($ 4.42)
======== ==========
UNITS OUTSTANDING 263,976 263,976
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
3
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $271,802 ($1,149,000)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 143,569 247,976
Impairment provision - 1,617,006
(Gain) loss on sale of oil and
gas properties ( 8,114) 21,958
Decrease in accounts receivable -
oil and gas sales 142,175 169,638
Increase in accounts receivable -
General Partner ( 10,146) ( 121,269)
Decrease in accounts receivable -
other 308 -
Increase (decrease) in accounts
payable 373 ( 7,903)
-------- ----------
Net cash provided by operating
activities $539,967 $ 778,406
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 733) $ -
Proceeds from sale of oil and
gas properties 14,542 121,737
-------- ----------
Net cash provided by investing
activities $ 13,809 $ 121,737
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($511,232) ($ 575,516)
-------- ----------
Net cash used by financing activities ($511,232) ($ 575,516)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 42,544 $ 324,627
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 522,371 610,116
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $564,915 $ 934,743
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
4
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 328,432 $ 305,288
Accounts receivable:
Oil and gas sales 233,532 307,724
General Partner (Note 2) 945 -
Other - 130
---------- ----------
Total current assets $ 562,909 $ 613,142
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,411,678 1,499,148
DEFERRED CHARGE 136,296 136,296
---------- ----------
$2,110,883 $2,248,586
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 22,252 $ 19,432
Gas imbalance payable 6,676 6,676
---------- ----------
Total current liabilities $ 28,928 $ 26,108
ACCRUED LIABILITY $ 28,494 $ 28,494
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 84,547) ($ 97,840)
Limited Partners, issued and
outstanding, 138,336 units 2,138,008 2,291,824
---------- ----------
Total Partners' capital $2,053,461 $2,193,984
---------- ----------
$2,110,883 $2,248,586
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
5
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $386,283 $ 593,107
Interest income 3,453 3,120
Gain (loss) on sale of oil
and gas properties 815 ( 10,193)
-------- ----------
$390,551 $ 586,034
COST AND EXPENSES:
Lease operating $ 43,410 $ 86,258
Production tax 28,250 42,026
Depreciation, depletion, and
amortization of oil and gas
properties 87,660 139,303
Impairment provision - 738,122
General and administrative
(Note 2) 47,774 42,227
-------- ----------
$207,094 $1,047,936
-------- ----------
NET INCOME (LOSS) $183,457 ($ 461,902)
======== ==========
GENERAL PARTNER - NET INCOME $ 39,273 $ 11,846
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $144,184 ($ 473,748)
======== ==========
NET INCOME (LOSS) per unit $ 1.04 ($ 3.42)
======== ==========
UNITS OUTSTANDING 138,336 138,336
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
6
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $183,457 ($461,902)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 87,660 139,303
Impairment provision - 738,122
(Gain) loss on sale of oil and
gas properties ( 815) 10,193
Decrease in accounts receivable -
oil and gas sales 74,192 92,050
Increase in accounts receivable -
General Partner ( 945) ( 84,276)
Decrease in accounts receivable -
other 130 -
Increase (decrease) in accounts
payable 2,820 ( 1,652)
-------- --------
Net cash provided by operating
activities $346,499 $431,838
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 342) $ -
Proceeds from sale of oil and
gas properties 967 84,276
-------- --------
Net cash provided by investing
activities $ 625 $ 84,276
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($323,980) ($369,580)
-------- --------
Net cash used by financing activities ($323,980) ($369,580)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 23,144 $146,534
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 305,288 376,603
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $328,432 $523,137
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
7
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 491,438 $ 540,911
Accounts receivable:
Oil and gas sales 423,244 497,683
General Partner (Note 2) 187,596 -
Other - 54
---------- ----------
Total current assets $1,102,278 $1,038,648
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,320,394 3,442,631
DEFERRED CHARGE 86,649 86,649
---------- ----------
$4,509,321 $4,567,928
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 52,757 $ 53,049
Gas imbalance payable 30,493 30,493
---------- ----------
Total current liabilities $ 83,250 $ 83,542
ACCRUED LIABILITY $ 142,828 $ 142,828
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 167,825) ($ 171,438)
Limited Partners, issued and
outstanding, 244,536 units 4,451,068 4,512,996
---------- ----------
Total Partners' capital $4,283,243 $4,341,558
---------- ----------
$4,509,321 $4,567,928
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
8
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
-------- ----------
REVENUES:
Oil and gas sales $680,865 $ 941,832
Interest income 5,748 4,537
Gain (loss) on sale of oil and
gas properties 166,701 ( 4,257)
-------- ----------
$853,314 $ 942,112
COST AND EXPENSES:
Lease operating $106,689 $ 146,837
Production tax 46,940 70,499
Depreciation, depletion, and
amortization of oil and gas
properties 138,087 206,438
Impairment provision - 1,696,418
General and administrative
(Note 2) 84,432 80,674
-------- ----------
$376,148 $2,200,866
-------- ----------
NET INCOME (LOSS) $477,166 ($1,258,754)
======== ==========
GENERAL PARTNER - NET INCOME $ 29,094 $ 12,950
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $448,072 ($1,271,704)
======== ==========
NET INCOME (LOSS) per unit $ 1.83 ($ 5.20)
======== ==========
UNITS OUTSTANDING 244,536 244,536
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
9
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $477,166 ($1,258,754)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 138,087 206,438
Impairment provision - 1,696,418
(Gain) loss on sale of oil and
gas properties ( 166,701) 4,257
Decrease in accounts receivable -
oil and gas sales 74,439 149,392
(Increase) decrease in accounts
receivable - General Partner ( 187,596) 40,940
Decrease in accounts receivable -
other 54 -
Increase in accounts payable -
General Partner - 1,931
Decrease in accounts payable ( 292) ( 10,921)
-------- ----------
Net cash provided by operating
activities $335,157 $ 829,701
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 36,691) ($ 378)
Proceeds from sale of oil and
gas properties 187,542 -
-------- ----------
Net cash provided (used) by
investing activities $150,851 ($ 378)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($535,481) ($ 543,128)
-------- ----------
Net cash used by financing activities ($535,481) ($ 543,128)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 49,473) $ 286,195
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 540,911 537,233
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $491,438 $ 823,428
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
10
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 218,520 $ 298,964
Accounts receivable:
Oil and gas sales 313,582 361,775
General Partner (Note 2) 26,040 -
---------- ----------
Total current assets $ 558,142 $ 660,739
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,163,339 2,211,248
DEFERRED CHARGE 18,875 18,875
---------- ----------
$2,740,356 $2,890,862
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 69,811 $ 114,286
---------- ----------
Total current liabilities $ 69,811 $ 114,286
ACCRUED LIABILITY $ 201,934 $ 201,934
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 61,530) ($ 62,091)
Limited Partners, issued and
outstanding, 131,008 units 2,530,141 2,636,733
---------- ----------
Total Partners' capital $2,468,611 $2,574,642
---------- ----------
$2,740,356 $2,890,862
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
11
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
-------- ----------
REVENUES:
Oil and gas sales $477,763 $ 771,050
Interest income 2,797 2,435
Gain on sale of oil and
gas properties 24,154 1,980
-------- ----------
$504,714 $ 775,465
COST AND EXPENSES:
Lease operating $148,237 $ 178,226
Production tax 29,531 56,556
Depreciation, depletion, and
amortization of oil and gas
properties 76,607 114,798
Impairment provision - 932,243
General and administrative
(Note 2) 45,779 43,344
-------- ----------
$300,154 $1,325,167
-------- ----------
NET INCOME (LOSS) $204,560 ($ 549,702)
======== ==========
GENERAL PARTNER - NET INCOME $ 13,152 $ 14,275
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $191,408 ($ 563,977)
======== ==========
NET INCOME (LOSS) per unit $ 1.46 ($ 4.30)
======== ==========
UNITS OUTSTANDING 131,008 131,008
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
12
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $204,560 ($549,702)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 76,607 114,798
Impairment provision - 932,243
Gain on sale of oil and gas
properties ( 24,154) ( 1,980)
Decrease in accounts receivable -
oil and gas sales 48,193 48,314
Increase in accounts receivable -
General Partner ( 26,040) ( 333)
Decrease in accounts payable ( 44,475) ( 48,121)
-------- --------
Net cash provided by operating
activities $234,691 $495,219
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 30,584) ($ 1,760)
Proceeds from sale of oil and
gas properties 26,040 2,313
-------- --------
Net cash provided (used) by investing
activities ($ 4,544) $ 553
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($310,591) ($326,746)
-------- --------
Net cash used by financing activities ($310,591) ($326,746)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 80,444) $169,026
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 298,964 319,245
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $218,520 $488,271
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
13
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,122,999 $ 1,114,574
Accounts receivable:
Oil and gas sales 1,085,812 1,361,797
General Partner (Note 2) 59,735 -
----------- -----------
Total current assets $ 2,268,546 $ 2,476,371
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 8,400,350 8,716,929
DEFERRED CHARGE 204,087 204,087
----------- -----------
$10,872,983 $11,397,387
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 387,231 $ 693,518
Gas imbalance payable 142,749 142,749
----------- -----------
Total current liabilities $ 529,980 $ 836,267
ACCRUED LIABILITY $ 320,943 $ 320,943
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 208,616) ($ 209,050)
Limited Partners, issued and
outstanding, 418,266 units 10,230,676 10,449,227
----------- -----------
Total Partners' capital $10,022,060 $10,240,177
----------- -----------
$10,872,983 $11,397,387
=========== ===========
The accompanying condensed notes are an integral part of
these financial statements.
14
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
---------- ----------
REVENUES:
Oil and gas sales $1,773,318 $2,929,978
Interest income 12,202 9,012
Gain on sale of oil and
gas properties 37,161 -
---------- ----------
$1,822,681 $2,938,990
COST AND EXPENSES:
Lease operating $ 733,211 $ 923,981
Production tax 114,231 208,474
Depreciation, depletion, and
amortization of oil and gas
properties 296,018 490,082
Impairment provision - 2,893,741
General and administrative
(Note 2) 151,137 137,045
---------- ----------
$1,294,597 $4,653,323
---------- ----------
NET INCOME (LOSS) $ 528,084 ($1,714,333)
========== ==========
GENERAL PARTNER - NET INCOME $ 37,635 $ 49,186
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 490,449 ($1,763,519)
========== ==========
NET INCOME (LOSS) per unit $ 1.17 ($ 4.22)
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
15
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 528,084 ($1,714,333)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 296,018 490,082
Impairment provision - 2,893,741
Gain on sale of oil and gas
properties ( 37,161) -
Decrease in accounts receivable -
oil and gas sales 275,985 194,769
Increase in accounts receivable -
General Partner ( 59,735) -
Decrease in accounts payable ( 306,287) ( 255,035)
---------- ----------
Net cash provided by operating
activities $ 696,904 $1,609,224
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,013) ($ 36,102)
Proceeds from sale of oil and
gas properties 59,735 -
---------- ----------
Net cash provided (used) by
investing activities $ 57,722 ($ 36,102)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 746,201) ($1,144,746)
---------- ----------
Net cash used by financing activities ($ 746,201) ($1,144,746)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 8,425 $ 428,376
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,114,574 1,243,143
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,122,999 $1,671,519
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
16
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 529,852 $ 541,382
Accounts receivable:
Oil and gas sales 384,099 472,746
General Partner (Note 2) 50,533 -
Other 9,631 9,631
---------- ----------
Total current assets $ 974,115 $1,023,759
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,437,144 3,604,665
DEFERRED CHARGE 124,393 124,393
---------- ----------
$4,535,652 $4,752,817
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 153,387 $ 165,963
Gas imbalance payable 119,864 119,864
---------- ----------
Total current liabilities $ 273,251 $ 285,827
ACCRUED LIABILITY $ 159,275 $ 159,275
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 150,534) ($ 146,427)
Limited Partners, issued and
outstanding, 221,484 units 4,253,660 4,454,142
---------- ----------
Total Partners' capital $4,103,126 $4,307,715
---------- ----------
$4,535,652 $4,752,817
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
17
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
-------- ----------
REVENUES:
Oil and gas sales $664,231 $ 933,987
Interest income 6,206 4,578
Gain on sale of oil and gas
properties 28,061 -
-------- ----------
$698,498 $ 938,565
COST AND EXPENSES:
Lease operating $247,027 $ 284,831
Production tax 42,453 46,857
Depreciation, depletion, and
amortization of oil and gas
properties 147,201 271,678
Impairment provision - 2,884,405
General and administrative
(Note 2) 76,453 72,181
-------- ----------
$513,134 $3,559,952
-------- ----------
NET INCOME (LOSS) $185,364 ($2,621,387)
======== ==========
GENERAL PARTNER - NET INCOME (LOSS) $ 14,846 ($ 5,055)
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $170,518 ($2,616,332)
======== ==========
NET INCOME (LOSS) per unit $ .77 ($ 11.81)
======== ==========
UNITS OUTSTANDING 221,484 221,484
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
18
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $185,364 ($2,621,387)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 147,201 271,678
Impairment provision - 2,884,405
Gain on sale of oil and gas
properties ( 28,061) -
Decrease in accounts receivable -
oil and gas sales 88,647 173,010
Increase in accounts receivable -
General Partner ( 50,533) -
Decrease in accounts payable ( 12,576) ( 13,026)
-------- ----------
Net cash provided by operating
activities $330,042 $ 694,680
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,152) ($ 3,327)
Proceeds from sale of oil and
gas properties 50,533 -
-------- ----------
Net cash provided (used) by
investing activities $ 48,381 ($ 3,327)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($389,953) ($ 378,532)
-------- ----------
Net cash used by financing activities ($389,953) ($ 378,532)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 11,530) $ 312,821
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 541,382 504,658
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $529,852 $ 817,479
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
19
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
1998 1997
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 290,510 $ 351,163
Accounts receivable:
Oil and gas sales 231,138 285,689
General Partner (Note 2) 32,345 13,140
Other 6,369 6,369
---------- ----------
Total current assets $ 560,362 $ 656,361
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,049,193 2,141,289
DEFERRED CHARGE 75,406 75,406
---------- ----------
$2,684,961 $2,873,056
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 91,628 $ 101,925
Gas imbalance payable 59,607 59,607
---------- ----------
Total current liabilities $ 151,235 $ 161,532
ACCRUED LIABILITY $ 89,310 $ 89,310
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 88,204) ($ 85,608)
Limited Partners, issued and
outstanding, 121,925 units 2,532,620 2,707,822
---------- ----------
Total Partners' capital $2,444,416 $2,622,214
---------- ----------
$2,684,961 $2,873,056
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
20
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
REVENUES:
Oil and gas sales $395,819 $ 573,117
Interest income 3,750 2,961
Gain on sale of oil and
gas properties 21,774 -
-------- ----------
$421,343 $ 576,078
COST AND EXPENSES:
Lease operating $164,664 $ 187,018
Production tax 24,545 28,167
Depreciation, depletion, and
amortization of oil and gas
properties 90,827 152,513
Impairment provision - 1,449,404
General and administrative
(Note 2) 42,103 39,760
-------- ----------
$322,139 $1,856,862
-------- ----------
NET INCOME (LOSS) $ 99,204 ($1,280,784)
======== ==========
GENERAL PARTNER - NET INCOME (LOSS) $ 8,406 ($ 111)
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 90,798 ($1,280,673)
======== ==========
NET INCOME (LOSS) per unit $ .74 ($ 10.50)
======== ==========
UNITS OUTSTANDING 121,925 121,925
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
21
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(Unaudited)
1998 1997
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 99,204 ($1,280,784)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 90,827 152,513
Impairment provision - 1,449,404
Gain on sale of oil and gas
properties ( 21,774) -
Decrease in accounts receivable -
oil and gas sales 54,551 101,195
Increase in accounts receivable -
General Partner ( 19,205) -
Decrease in accounts payable ( 10,297) ( 7,401)
-------- ----------
Net cash provided by operating
activities $193,306 $ 414,927
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 9,302) ($ 5,537)
Proceeds from sale of oil and
gas properties 32,345 -
-------- ----------
Net cash provided (used) by investing
activities $ 23,043 ($ 5,537)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($277,002) ($ 209,670)
-------- ----------
Net cash used by financing activities ($277,002) ($ 209,670)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 60,653) $ 199,720
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 351,163 315,955
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $290,510 $ 515,675
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
22
<PAGE>
GEODYNE ENERGY INCOME III LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 1998
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of March 31, 1998, statements of operations for the
three months ended March 31, 1998 and 1997, and statements of cash flows
for the three months ended March 31, 1998 and 1997 have been prepared by
Geodyne Resources, Inc., the General Partner of the Partnerships (the
"General Partner"), without audit. In the opinion of management the
financial statements referred to above include all necessary adjustments,
consisting of normal recurring adjustments, to present fairly the
financial position at March 31, 1998, the results of operations for the
three months ended March 31, 1998 and 1997, and the cash flows for the
three months ended March 31, 1998 and 1997.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The accompanying interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed for the year ended December 31, 1997. The
results of operations for the period ended March 31, 1998 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 $100
initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
23
<PAGE>
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. During the three
months ended March 31, 1998 capital expenditures incurred by the III-C and
III-D Partnerships totaled $36,691 and $30,584, respectively. These
expenditures resulted primarily from the recompletion attempt of the
Hefley No. 2-37 well located in Wheeler County, Texas. The III-C and III-D
Partnerships have a 17.1% interest and a 14.3% interest, respectively, in
the Hefley No. 2-37 well. Leasehold impairment is recognized based upon an
individual property assessment and exploratory experience. Upon discovery
of commercial reserves, leasehold costs are transferred to producing
properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the difference between asset cost and
salvage value is charged to accumulated depreciation.
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting
for the Impairment of Long Lived Assets and Assets Held for Disposal",
requires successful efforts companies, like the Partnerships, to evaluate
the recoverability of the carrying costs of their proved oil and gas
properties at the lowest level for which there are identifiable cash flows
that are largely independent of the cash flows of other groups of oil and
gas properties. With respect to the Partnerships' oil and gas properties,
this evaluation was performed for each field. SFAS No. 121, provides that
if the unamortized costs of oil and gas properties for each field exceed
the expected undiscounted future cash flows from such properties, the cost
of the properties is written down to fair value, which is determined by
using the discounted future cash flows from the properties. The
Partnerships recorded a non-cash charge against earnings (impairment
provision) during the three months ended March 31, 1997 pursuant to SFAS
No. 121 as follows:
24
<PAGE>
Partnership Amount
----------- -----------
III-A $1,617,006
III-B 738,122
III-C 1,696,418
III-D 932,243
III-E 2,893,741
III-F 2,884,405
III-G 1,449,404
No such charge was necessary for the three months ended March 31, 1998.
The risk that the Partnerships will be required to record such impairment
provisions in the future increases when oil and gas prices are depressed.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' partnership agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended March 31, 1998 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
III-A $21,663 $69,468
III-B 11,369 36,405
III-C 20,079 64,353
III-D 11,303 34,476
III-E 41,067 110,070
III-F 18,169 58,284
III-G 10,018 32,085
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
The receivables from the General Partner at March 31, 1998 for the
Partnerships represent proceeds due to the Partnerships from the sale of
oil and gas properties to third parties. Subsequent to March 31, 1998,
such receivables were collected by the Partnerships.
25
<PAGE>
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 Program.
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, and otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
26
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
III-A November 21, 1989 $26,397,600
III-B January 24, 1990 13,833,600
III-C February 27, 1990 24,453,600
III-D September 5, 1990 13,100,800
III-E December 26, 1990 41,826,600
III-F March 7, 1991 22,148,400
III-G September 20, 1991 12,192,500
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. Revenues and net
proceeds of a Partnership are largely dependent upon the volumes of oil
and gas sold and the prices received for such oil and gas. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of March 31, 1998 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
The Partnerships' Statements of Cash Flows for the first quarter of 1998
include proceeds from the sale of oil and gas properties during the three
months ended March 31, 1998. These proceeds will be reflected, as
applicable, in the Partnerships' cash distributions, if any, to be paid in
May 1998. It is possible that the Partnerships' repurchase values and
future cash distributions could decline as a result of the disposition of
these properties. On the other hand, the General Partner believes there
will be beneficial operating efficiencies related to the Partnerships'
remaining properties. This is primarily due to the fact that the
properties sold generally bore a higher ratio of operating expenses as
compared to reserves than the Partnerships' remaining properties.
27
<PAGE>
The Partnerships will terminate on the following dates in accordance with
their partnership agreements:
Partnership Termination Date
----------- ----------------
III-A November 28, 1999
III-B January 24, 2000
III-C February 28, 2000
III-D September 5, 2000
III-E December 26, 2000
III-F March 7, 2001
III-G September 20, 2001
However, the partnership agreements provide that the General Partner may
extend the term of each Partnership for up to five periods of two years
each. As of the date of this Quarterly Report, the General Partner has not
determined whether to extend the term of any Partnership.
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 Partnerships' revenues is the prices received for
the sale of oil and gas. Predicting future prices is very difficult.
Substantially all of the Partnerships' 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.
28
<PAGE>
III-A PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- ----------
Oil and gas sales $616,201 $1,015,744
Oil and gas production expenses $123,776 $ 202,727
Barrels produced 9,961 11,134
Mcf produced 211,971 285,768
Average price/Bbl $ 14.56 $ 21.73
Average price/Mcf $ 2.22 $ 2.71
As shown in the table above, total oil and gas sales decreased $399,543
(39.3%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $25,000 and
$200,000, respectively, were related to decreases in volumes of oil and
gas sold and approximately $71,000 and $103,000, respectively, were
related to decreases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 1,173 barrels and 73,797 Mcf, respectively, for
the three months ended March 31, 1998 as compared to the three months
ended March 31, 1997. The decrease in volumes of oil sold resulted
primarily from normal declines in production due to diminished reserves on
two significant wells during the three months ended March 31, 1998. The
decrease in volumes of gas sold resulted primarily from normal declines in
production due to diminished reserves on several wells during the three
months ended March 31, 1998. Average oil and gas prices decreased to
$14.56 per barrel and $2.22 per Mcf, respectively, for the three months
ended March 31, 1998 from $21.73 per barrel and $2.71 per Mcf,
respectively, for the three months ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $78,951 (38.9%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above and (ii)
the decreases in volumes of oil and gas sold during the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. As a
percentage of oil and gas sales, these expenses remained relatively
constant at 20.1% for the three months ended March 31, 1998 and 20.0% for
the three months ended March 31, 1997.
29
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $104,407 (42.1%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 and (ii) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1997. As a percentage of oil and gas
sales, this expense remained relatively constant at 23.3% for the three
months ended March 31, 1998 and 24.4% for the three months ended March 31,
1997.
The III-A Partnership recognized a non-cash charge against earnings of
$1,617,006 during the three months ended March 31, 1997. Of this amount,
$184,644 was related to a decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$1,432,362 was related to the writing-off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the III-A Partnership's partnership agreement which
limit the level of permissible drilling activity. No similar charges were
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $10,777 (13.4%) for the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997. This increase was primarily due to audit fees which were
paid during the three months ended March 31, 1998, whereas previous audit
fees were paid during the three months ended June 30, 1997 due to the
timing of the year end audit. As a percentage of oil and gas sales, these
expenses increased to 14.8% for the three months ended March 31, 1998 from
7.9% for the three months ended March 31, 1997. This percentage increase
was primarily due to the decrease in oil and gas sales discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $24,048,701 or 91.10% of Limited Partners' capital
contributions.
30
<PAGE>
III-B PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- ----------
Oil and gas sales $386,283 $593,107
Oil and gas production expenses $ 71,660 $128,284
Barrels produced 10,008 9,657
Mcf produced 105,871 142,015
Average price/Bbl $ 14.91 $ 21.81
Average price/Mcf $ 2.24 $ 2.69
As shown in the table above, total oil and gas sales decreased $206,824
(34.9%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $97,000 was
related to a decrease in volumes of gas sold and approximately $69,000 and
$48,000, respectively, were related to decreases in the average prices of
oil and gas sold, which amounts were partially offset by an increase of
approximately $8,000 related to an increase in the volumes of oil sold.
Volumes of oil sold increased 351 barrels, while volumes of gas sold
decreased 36,144 Mcf for the three months ended March 31, 1998 as compared
to the three months ended March 31, 1997. The decrease in volumes of gas
sold resulted primarily from normal declines in production due to
diminished reserves on several wells during the three months ended March
31, 1998. Average oil and gas prices decreased to $14.91 per barrel and
$2.24 per Mcf, respectively, for the three months ended March 31, 1998
from $21.81 per barrel and $2.69 per Mcf, respectively, for the three
months ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $56,624 (44.1%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above, (ii)
the decrease in volumes of gas sold during the three months ended March
31, 1998 as compared to the three months ended March 31, 1997, and (iii)
refunds of prior period lease operating expenses by the operators on two
significant wells during the three months ended March 31, 1998. As a
percentage of oil and gas sales, these expenses decreased to 18.6% for the
three months ended March 31, 1998 from 21.6% for the three months ended
March 31, 1997. This percentage decrease was primarily due to the dollar
decrease in production expenses discussed above.
31
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $51,643 (37.1%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decrease in volumes of gas sold during the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997 and (ii) upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1997. As a percentage of oil and gas sales,
this expense remained relatively constant at 22.7% for the three months
ended March 31, 1998 and 23.5% for the three months ended March 31, 1997.
The III-B Partnership recognized a non-cash charge against earnings of
$738,122 during the three months ended March 31, 1997. Of this amount,
$77,653 was related to a decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$660,469 was related to the writing-off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the III-B Partnership's partnership agreement which
limit the level of permissible drilling activity. No similar charges were
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $5,547 (13.1%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. This increase was primarily due to audit fees which were paid
during the three months ended March 31, 1998, whereas previous audit fees
were paid during the three months ended June 30, 1997 due to the timing of
the year end audit. As a percentage of oil and gas sales, these expenses
increased to 12.4% for the three months ended March 31, 1998 from 7.1% for
the three months ended March 31, 1997. This percentage increase was
primarily due to the decrease in oil and gas sales discussed above.
The III-B Partnership achieved payout during the three months ended March
31, 1998. After payout, operations and revenues for the III-B Partnership
have been and will be allocated using after payout percentages. After
payout percentages allocate operating income and expenses 15% to the
General Partner and 85% to the Limited Partners. (Before payout, operating
income and expenses were allocated 5% to the General Partner and 95% to
the Limited Partners.) See the Partnerships' Annual Report on Form 10-K
for the year ended December 31, 1997 for a further discussion of pre and
post payout allocations of income and expense.
32
<PAGE>
The Limited Partners have received cash distributions through March 31,
1998 totaling $14,015,353 or 101.31% of Limited Partners' capital
contributions. III-C PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- ----------
Oil and gas sales $680,865 $941,832
Oil and gas production expenses $153,629 $217,336
Barrels produced 6,907 6,734
Mcf produced 257,661 310,482
Average price/Bbl $ 15.85 $ 21.45
Average price/Mcf $ 2.22 $ 2.57
As shown in the table above, total oil and gas sales decreased $260,967
(27.7%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $136,000 was
related to a decrease in volumes of gas sold and approximately $39,000 and
$90,000, respectively, were related to decreases in the average prices of
oil and gas sold, which decreases were partially offset by an increase of
approximately $4,000 related to an increase in the volumes of oil sold.
Volumes of oil sold increased 173 barrels, while volumes of gas sold
decreased 52,821 Mcf for the three months ended March 31, 1998 compared to
the three months ended March 31, 1997. The decrease in volumes of gas sold
resulted primarily from (i) normal declines in production due to
diminished reserves on several wells during the three months ended March
31, 1998, (ii) a positive prior period volume adjustment by the purchaser
on one significant well during the three months ended March 31, 1997, and
(iii) the shutting-in of one significant well for part of the three months
ended March 31, 1998 in order to increase production capabilities. Average
oil and gas prices decreased to $15.85 per barrel and $2.22 per Mcf,
respectively, for the three months ended March 31, 1998 from $21.45 per
barrel and $2.57 per Mcf, respectively, for the three months ended March
31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $63,707 (29.3%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above, (ii)
the decrease in volumes of gas sold during the three months ended March
31, 1998 as compared to the three months ended March 31, 1997, (iii)
workover expenses incurred on one significant well during the three months
ended March 31,
33
<PAGE>
1997 in order to improve the recovery of reserves, and (iv) a refund of
prior period lease operating expenses by the operator on another
significant well during the three months ended March 31, 1998. As a
percentage of oil and gas sales, these expenses remained relatively
constant at 22.6% for the three months ended March 31, 1998 and 23.1% for
the three months ended March 31, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $68,351 (33.1%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decrease in volumes of gas sold during the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997 and (ii) upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1997. As a percentage of oil and gas sales,
this expense remained relatively constant at 20.3% for the three months
ended March 31, 1998 and 21.9% for the three months ended March 31, 1997.
The III-C Partnership recognized a non-cash charge against earnings of
$1,696,418 during the three months ended March 31, 1997. Of this amount,
$234,271 was related to a decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$1,462,147 was related to the writing-off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the III-C Partnership's partnership agreement which
limit the level of permissible drilling activity. No similar charges were
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $3,758 (4.7%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. As a percentage of oil and gas sales, these expenses increased
to 12.4% for the three months ended March 31, 1998 from 8.6% for the three
months ended March 31, 1997. This percentage increase was primarily due to
the decrease in oil and gas sales discussed above and the dollar increase
in general and administrative expense.
The Limited Partners have received cash distributions through March 31,
1998 totaling $15,653,795 or 64.01% of Limited Partners' capital
contributions.
34
<PAGE>
III-D PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- ----------
Oil and gas sales $477,763 $771,050
Oil and gas production expenses $177,768 $234,782
Barrels produced 11,883 12,442
Mcf produced 157,377 186,257
Average price/Bbl $ 13.57 $ 21.61
Average price/Mcf $ 2.01 $ 2.70
As shown in the table above, total oil and gas sales decreased $293,287
(38.0%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $78,000 was
related to a decrease in volumes of gas sold and approximately $96,000 and
$109,000, respectively, were related to decreases in the average prices of
oil and gas sold. Volumes of oil and gas sold decreased 559 barrels and
28,880 Mcf, respectively, for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. The decrease in volumes
of gas sold resulted primarily from (i) normal declines in production due
to diminished reserves on two significant wells during the three months
ended March 31, 1998, (ii) a positive prior period volume adjustment made
by the purchaser on one significant well during the three months ended
March 31, 1997, and (iii) the shutting-in of one significant well for a
portion of the three months ended March 31, 1998 in order to increase
production capabilities. Average oil and gas prices decreased to $13.57
per barrel and $2.01 per Mcf, respectively, for the three months ended
March 31, 1998 from $21.61 per barrel and $2.70 per Mcf, respectively, for
the three months ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $57,014 (24.3%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above and (ii)
the decreases in volumes of oil and gas sold during the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. As a
percentage of oil and gas sales, these expenses increased to 37.2% for the
three months ended March 31, 1998 from 30.4% for the three months ended
March 31, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil
35
<PAGE>
and gas sold during the three months ended March 31, 1998 as compared to
the three months ended March 31, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $38,191 (33.3%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 and (ii) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1997. As a percentage of oil and gas
sales, this expense remained relatively constant at 16.0% for the three
months ended March 31, 1998 and 14.9% for the three months ended March 31,
1997.
The III-D Partnership recognized a non-cash charge against earnings of
$932,243 during the three months ended March 31, 1997. Of this amount,
$485,820 was related to a decline in oil and gas prices used to determine
the recoverability of proved oil and gas reserves at March 31, 1997 and
$446,423 was related to the writing-off of unproved properties. These
unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the III-D Partnership's partnership agreement which
limit the level of permissible drilling activity. No similar charges were
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $2,435 (5.6%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. As a percentage of oil and gas sales, these expenses increased
to 9.6% for the three months ended March 31, 1998 from 5.6% for the three
months ended March 31, 1997. This percentage increase was primarily due to
the decrease in oil and gas sales discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $7,793,669 or 59.49% of Limited Partners' capital
contributions.
36
<PAGE>
III-E PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
---------- ----------
Oil and gas sales $1,773,318 $2,929,978
Oil and gas production expenses $ 847,442 $1,132,455
Barrels produced 64,696 73,819
Mcf produced 513,401 567,565
Average price/Bbl $ 13.24 $ 21.66
Average price/Mcf $ 1.79 $ 2.35
As shown in the table above, total oil and gas sales decreased $1,156,660
(39.5%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $198,000 and
$127,000, respectively, were related to decreases in volumes of oil and
gas sold and approximately $545,000 and $288,000, respectively, were
related to decreases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 9,123 barrels and 54,164 Mcf, respectively, for
the three months ended March 31, 1998 as compared to the three months
ended March 31, 1997. The decrease in volumes of oil sold resulted
primarily from a positive prior period volume adjustment made by the
purchaser on one significant well during the three months ended March 31,
1997. Average oil and gas prices decreased to $13.24 per barrel and $1.79
per Mcf, respectively, for the three months ended March 31, 1998 from
$21.66 per barrel and $2.35 per Mcf, respectively, for the three months
ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $285,013 (25.2%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above, (ii)
the decreases in volumes of oil and gas sold during the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997, (iii)
workover expenses incurred on three significant wells during the three
months ended March 31, 1997 in order to improve the recovery of reserves,
and (iv) the shutting-in of one significant well by the operator during
the three months ended March 31, 1998. As a percentage of oil and gas
sales, these expenses increased to 47.8% for the three months ended March
31, 1998 from 38.7% for the three months ended March 31, 1997. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold during the three
37
<PAGE>
months ended March 31, 1998 as compared to the three months ended March
31, 1997.
Depreciation, depletion, and amortization of oil and gas properties
decreased $194,064 (39.6%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 and (ii) upward revisions in the estimates of remaining oil
and gas reserves at December 31, 1997. As a percentage of oil and gas
sales, this expense remained constant at 16.7% for the three months ended
March 31, 1998 and the three months ended March 31, 1997.
The III-E Partnership recognized a non-cash charge against earnings of
$2,893,741 during the three months ended March 31, 1997. Of this amount,
$2,042,775 was related to a decline in oil and gas prices used to
determine the recoverability of proved oil and gas reserves at March 31,
1997 and $850,966 was related to the writing-off of unproved properties.
These unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the III-E Partnership's partnership agreement which
limit the level of permissible drilling activity. No similar charges were
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $14,092 (10.3%) for the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997. This increase resulted primarily from an increase in
professional fees during the three months ended March 31, 1998 as compared
to the three months ended March 31, 1997. As a percentage of oil and gas
sales, these expenses increased to 8.5% for the three months ended March
31, 1998 from 4.7% for the three months ended March 31, 1997. This
percentage increase was primarily due to the decrease in oil and gas sales
discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $27,859,016 or 66.61% of Limited Partners' capital
contributions.
38
<PAGE>
III-F PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- ----------
Oil and gas sales $664,231 $933,987
Oil and gas production expenses $289,480 $331,688
Barrels produced 15,962 16,395
Mcf produced 208,780 246,984
Average price/Bbl $ 15.16 $ 21.12
Average price/Mcf $ 2.02 $ 2.38
As shown in the table above, total oil and gas sales decreased $269,756
(28.9%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $9,000 and
$91,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $95,000 and $75,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 433 barrels and 38,204 Mcf, respectively, for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. The decrease in volumes of gas sold resulted primarily from (i)
normal declines in production due to diminished reserves on several wells
during the three months ended March 31, 1998 and (ii) a negative prior
period volume adjustment made by the purchaser on one significant well
during the three months ended March 31, 1998. Average oil and gas prices
decreased to $15.16 per barrel and $2.02 per Mcf, respectively, for the
three months ended March 31, 1998 from $21.12 per barrel and $2.38 per
Mcf, respectively, for the three months ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $42,208 (12.7%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above and (ii)
the decreases in volumes of oil and gas sold during the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. As a
percentage of oil and gas sales, these expenses increased to 43.6% for the
three months ended March 31, 1998 from 35.5% for the three months ended
March 31, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas
39
<PAGE>
sold during the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Depreciation, depletion, and amortization of
oil and gas properties decreased $124,477 (45.8%) for the three months
ended March 31, 1998 as compared to the three months ended March 31, 1997.
This decrease resulted primarily from (i) the decreases in volumes of oil
and gas sold during the three months ended March 31, 1998 as compared to
the three months ended March 31, 1997 and (ii) upward revisions in the
estimates of remaining gas reserves at December 31, 1997. As a percentage
of oil and gas sales, this expense decreased to 22.2% for the three months
ended March 31, 1998 from 29.1% for the three months ended March 31, 1997.
This percentage decrease was primarily related to the dollar decrease in
depreciation, depletion, and amortization discussed above.
The III-F Partnership recognized a non-cash charge against earnings of
$2,884,405 during the three months ended March 31, 1997. Of this amount,
$2,078,019 was related to a decline in oil and gas prices used to
determine the recoverability of proved oil and gas reserves at March 31,
1997 and $806,386 was related to the writing-off of unproved properties.
These unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the III-F Partnership's partnership agreement which
limit the level of permissible drilling activity. No similar charges were
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $4,272 (5.9%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. As a percentage of oil and gas sales, these expenses increased
to 11.5% for the three months ended March 31, 1998 from 7.7% for the three
months ended March 31, 1997. This percentage increase was primarily due to
the decrease in oil and gas sales discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $10,320,904 or 46.60% of Limited Partners' capital
contributions.
40
<PAGE>
III-G PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 1998 AS COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1997.
Three Months Ended March 31,
----------------------------
1998 1997
-------- ----------
Oil and gas sales $395,819 $573,117
Oil and gas production expenses $189,209 $215,185
Barrels produced 11,356 12,060
Mcf produced 112,915 131,897
Average price/Bbl $ 15.05 $ 21.13
Average price/Mcf $ 1.99 $ 2.41
As shown in the table above, total oil and gas sales decreased $177,298
(30.9%) for the three months ended March 31, 1998 as compared to the three
months ended March 31, 1997. Of this decrease, approximately $15,000 and
$46,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $69,000 and $47,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of oil and
gas sold decreased 704 barrels and 18,982 Mcf, respectively, for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. The decrease in volumes of gas sold resulted primarily from (i)
normal declines in production due to diminished reserves on several wells
during the three months ended March 31, 1998 and (ii) a negative prior
period volume adjustment made by the purchaser on one significant well
during the three months ended March 31, 1998. Average oil and gas prices
decreased to $15.05 per barrel and $1.99 per Mcf, respectively, for the
three months ended March 31, 1998 from $21.13 per barrel and $2.41 per
Mcf, respectively, for the three months ended March 31, 1997.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $25,976 (12.1%) for the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. This
decrease resulted primarily from (i) a decrease in production taxes
associated with the decrease in oil and gas sales discussed above and (ii)
the decreases in volumes of oil and gas sold during the three months ended
March 31, 1998 as compared to the three months ended March 31, 1997. As a
percentage of oil and gas sales, these expenses increased to 47.8% for the
three months ended March 31, 1998 from 37.5% for the three months ended
March 31, 1997. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold during the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997.
41
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $61,686 (40.4%) for the three months ended March 31, 1998 as
compared to the three months ended March 31, 1997. This decrease resulted
primarily from (i) the decreases in volumes of oil and gas sold during the
three months ended March 31, 1998 as compared to the three months ended
March 31, 1997 and (ii) upward revisions in the estimates of remaining gas
reserves at December 31, 1997. As a percentage of oil and gas sales, this
expense decreased to 22.9% for the three months ended March 31, 1998 from
26.6% for the three months ended March 31, 1997. This percentage decrease
was primarily related to the dollar decrease in depreciation, depletion,
and amortization discussed above.
The III-G Partnership recognized a non-cash charge against earnings of
$1,449,404 during the three months ended March 31, 1997. Of this amount,
$1,010,738 was related to a decline in oil and gas prices used to
determine the recoverability of proved oil and gas reserves at March 31,
1997 and $438,666 was related to the writing-off of unproved properties.
These unproved properties were written off based on the General Partner's
determination that it was unlikely that such properties would be developed
due to the low oil and gas prices received over the prior several years
and provisions in the III-G Partnership's partnership agreement which
limit the level of permissible drilling activity. No similar charges were
necessary during the three months ended March 31, 1998.
General and administrative expenses increased $2,343 (5.9%) for the three
months ended March 31, 1998 as compared to the three months ended March
31, 1997. As a percentage of oil and gas sales, these expenses increased
to 10.6% for the three months ended March 31, 1998 from 6.9% for the three
months ended March 31, 1997. This percentage increase was primarily due to
the decrease in oil and gas sales discussed above.
The Limited Partners have received cash distributions through March 31,
1998 totaling $5,386,287 or 44.18% of Limited Partners' capital
contributions.
42
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As further described in the Partnerships' Annual Report on Form 10-K for
the year ended December 31, 1997 (the "Form 10-K"), the Partnerships are
included in the subject matter of a class action lawsuit entitled "In Re:
PaineWebber Limited Partnerships' Litigation," Case No. 94-CIV-8558, U.S.
District Court, Southern District of New York.
In early 1996 PaineWebber Incorporated ("PaineWebber") reached settlements
with the class action plaintiffs and the Securities and Exchange
Commission (the "SEC") that resolved the above referenced litigation. As
part of the class settlement, PaineWebber paid $125 million (the "Class
Action Fund"), plus certain additional consideration to the class.
PaineWebber also paid $40 million to a capped claims fund to be
independently administered on behalf of the SEC (the "SEC Fund"). Both
settlement funds (in the case of the Class Action Fund, net of court
approved class counsel attorney's fees and disbursements) were to be
allocated among eligible limited partners whose claims were approved by
the respective Claims Administrators.
In late March 1998, the Court awarded attorney's fees and disbursements to
class counsel. On or about May 8, 1998, the Claims Administrator for the
Class Action Fund mailed to eligible class members the cash component of
their settlement benefits from the Class Action Fund. The General Partner
has been advised that in late May 1998 the SEC Claims Administrator
expects to mail to each eligible class member his or her claim
determination with the preliminary settlement amount, if any, from the SEC
Fund.
A further description of the settlement is included within the Form 10-K
referred to above.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary financial
information extracted from the III-A Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
43
<PAGE>
27.2 Financial Data Schedule containing summary financial
information extracted from the III-B Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the III-C Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the III-D Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the III-E Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the III-F Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
27.7 Financial Data Schedule containing summary financial
information extracted from the III-G Partnership's
financial statements as of March 31, 1998 and for the
three months ended March 31, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
Current reports on Form 8-K filed during the first quarter of 1998:
Date of event: January 29, 1998
Date filed with SEC: January 30, 1998
Items Included:
Item 5 - Other Events
Item 7 - Exhibits
44
<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.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: May 13, 1998 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: May 13, 1998 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
45
<PAGE>
INDEX TO EXHIBITS
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership III-A's
financial statements as of March 31, 1998 and for the three months
ended March 31, 1998, filed herewith.
27.2 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership III-B's
financial statements as of March 31, 1998 and for the three months
ended March 31, 1998, filed herewith.
27.3 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership III-C's
financial statements as of March 31, 1998 and for the three months
ended March 31, 1998, filed herewith.
27.4 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership III-D's
financial statements as of March 31, 1998 and for the three months
ended March 31, 1998, filed herewith.
27.5 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership III-E's
financial statements as of March 31, 1998 and for the three months
ended March 31, 1998, filed herewith.
27.6 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership III-F's
financial statements as of March 31, 1998 and for the three months
ended March 31, 1998, filed herewith.
27.7 Financial Data Schedule containing summary financial information
extracted from the Geodyne Energy Income Limited Partnership III-G's
financial statements as of March 31, 1998 and for the three months
ended March 31, 1998, filed herewith.
All other exhibits are omitted as inapplicable.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000860745
<NAME> GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 564,915
<SECURITIES> 0
<RECEIVABLES> 392,512
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 957,427
<PP&E> 17,313,056
<DEPRECIATION> 14,792,371
<TOTAL-ASSETS> 3,677,834
<CURRENT-LIABILITIES> 78,413
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,547,516
<TOTAL-LIABILITY-AND-EQUITY> 3,677,834
<SALES> 616,201
<TOTAL-REVENUES> 630,278
<CGS> 0
<TOTAL-COSTS> 358,476
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 271,802
<INCOME-TAX> 0
<INCOME-CONTINUING> 271,802
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 271,802
<EPS-PRIMARY> 0.96
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000863835
<NAME> GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 328,432
<SECURITIES> 0
<RECEIVABLES> 234,477
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 562,909
<PP&E> 10,061,123
<DEPRECIATION> 8,649,445
<TOTAL-ASSETS> 2,110,883
<CURRENT-LIABILITIES> 28,928
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,053,461
<TOTAL-LIABILITY-AND-EQUITY> 2,110,883
<SALES> 386,283
<TOTAL-REVENUES> 390,551
<CGS> 0
<TOTAL-COSTS> 207,094
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 183,457
<INCOME-TAX> 0
<INCOME-CONTINUING> 183,457
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 183,457
<EPS-PRIMARY> 1.04
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000863837
<NAME> GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 491,438
<SECURITIES> 0
<RECEIVABLES> 610,840
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,102,278
<PP&E> 20,988,844
<DEPRECIATION> 17,668,450
<TOTAL-ASSETS> 4,509,321
<CURRENT-LIABILITIES> 83,250
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,283,243
<TOTAL-LIABILITY-AND-EQUITY> 4,509,321
<SALES> 680,865
<TOTAL-REVENUES> 853,314
<CGS> 0
<TOTAL-COSTS> 376,148
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 477,166
<INCOME-TAX> 0
<INCOME-CONTINUING> 477,166
<DISCONTINUED> 0
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