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 September 30, 1999
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
September 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 326,765 $ 212,695
Accounts receivable:
Oil and gas sales 402,205 282,108
---------- ----------
Total current assets $ 728,970 $ 494,803
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,885,707 2,222,673
DEFERRED CHARGE 266,532 266,532
---------- ----------
$2,881,209 $2,984,008
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 30,007 $ 62,011
Gas imbalance payable 30,903 30,903
---------- ----------
Total current liabilities $ 60,910 $ 92,914
ACCRUED LIABILITY $ 76,845 $ 76,845
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 191,228) ($ 197,325)
Limited Partners, issued and
outstanding, 263,976 units 2,934,682 3,011,574
---------- ----------
Total Partners' capital $2,743,454 $2,814,249
---------- ----------
$2,881,209 $2,984,008
========== ==========
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 SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Oil and gas sales $594,498 $428,407
Interest income 2,644 3,436
Loss on sale of oil and gas
properties - ( 81)
-------- --------
$597,142 $431,762
COSTS AND EXPENSES:
Lease operating $104,224 $103,106
Production tax 48,679 37,047
Depreciation, depletion, and
amortization of oil and gas
properties 106,766 113,924
General and administrative
(Note 2) 73,066 75,481
-------- --------
$332,735 $329,558
-------- --------
NET INCOME $264,407 $102,204
======== ========
GENERAL PARTNER - NET INCOME $ 17,358 $ 9,495
======== ========
LIMITED PARTNERS - NET INCOME $247,049 $ 92,709
======== ========
NET INCOME per unit $ .93 $ .35
======== ========
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 OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
----------- ----------
REVENUES:
Oil and gas sales $1,528,277 $1,573,580
Interest income 6,492 14,033
Gain on sale of oil and gas
properties 883 19,960
---------- ----------
$1,535,652 $1,607,573
COSTS AND EXPENSES:
Lease operating $ 304,775 $ 313,761
Production tax 115,105 125,983
Depreciation, depletion, and
amortization of oil and gas
properties 339,305 385,298
General and administrative
(Note 2) 239,251 239,914
---------- ----------
$ 998,436 $1,064,956
---------- ----------
NET INCOME $ 537,216 $ 542,617
========== ==========
GENERAL PARTNER - NET INCOME $ 40,108 $ 41,841
========== ==========
LIMITED PARTNERS - NET INCOME $ 497,108 $ 500,776
========== ==========
NET INCOME per unit $ 1.88 $ 1.90
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-4-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $537,216 $ 542,617
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 339,305 385,298
Gain on sale of oil and gas
properties ( 883) ( 19,960)
(Increase) decrease in accounts
receivable - oil and gas sales ( 120,097) 259,323
Decrease in accounts receivable -
other - 308
Decrease in accounts payable ( 32,004) ( 8,757)
-------- ----------
Net cash provided by operating
activities $723,537 $1,158,829
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 8,909) ($ 12,261)
Proceeds from sale of oil and
gas properties 7,453 23,397
-------- ----------
Net cash provided (used) by investing
activities ($ 1,456) $ 11,136
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($608,011) ($1,367,476)
-------- ----------
Net cash used by financing activities ($608,011) ($1,367,476)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $114,070 ($ 197,511)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 212,695 522,371
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $326,765 $ 324,860
======== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-5-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 178,239 $ 117,355
Accounts receivable:
Oil and gas sales 237,059 164,818
---------- ----------
Total current assets $ 415,298 $ 282,173
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,062,109 1,242,380
DEFERRED CHARGE 193,310 193,310
---------- ----------
$1,670,717 $1,717,863
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 19,201 $ 21,658
Gas imbalance payable 18,422 18,422
---------- ----------
Total current liabilities $ 37,623 $ 40,080
ACCRUED LIABILITY $ 41,436 $ 41,436
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 80,519) ($ 85,016)
Limited Partners, issued and
outstanding, 138,336 units 1,672,177 1,721,363
---------- ----------
Total Partners' capital $1,591,658 $1,636,347
---------- ----------
$1,670,717 $1,717,863
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-6-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Oil and gas sales $380,078 $267,275
Interest income 1,280 1,496
Gain on sale of oil and gas
properties - 32,404
-------- --------
$381,358 $301,175
COSTS AND EXPENSES:
Lease operating $ 67,324 $ 75,619
Production tax 29,970 22,144
Depreciation, depletion, and
amortization of oil and gas
properties 63,953 71,199
General and administrative
(Note 2) 38,292 39,561
-------- --------
$199,539 $208,523
-------- --------
NET INCOME $181,819 $ 92,652
======== ========
GENERAL PARTNER - NET INCOME $ 36,034 $ 23,641
======== ========
LIMITED PARTNERS - NET INCOME $145,785 $ 69,011
======== ========
NET INCOME per unit $ 1.05 $ .50
======== ========
UNITS OUTSTANDING 138,336 138,336
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-7-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Oil and gas sales $880,919 $957,758
Interest income 3,105 7,386
Gain on sale of oil and
gas properties 372 33,219
-------- --------
$884,396 $998,363
COSTS AND EXPENSES:
Lease operating $199,454 $206,566
Production tax 63,517 75,882
Depreciation, depletion, and
amortization of oil and gas
properties 183,044 234,406
General and administrative
(Note 2) 125,470 125,695
-------- --------
$571,485 $642,549
-------- --------
NET INCOME $312,911 $355,814
======== ========
GENERAL PARTNER - NET INCOME $ 72,097 $ 85,081
======== ========
LIMITED PARTNERS - NET INCOME $240,814 $270,733
======== ========
NET INCOME per unit $ 1.74 $ 1.96
======== ========
UNITS OUTSTANDING 138,336 138,336
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-8-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $312,911 $355,814
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 183,044 234,406
Gain on sale of oil and gas
properties ( 372) ( 33,219)
(Increase) decrease in accounts
receivable - oil and gas sales ( 72,241) 144,185
Decrease in accounts receivable -
other - 130
Increase (decrease) in accounts
payable ( 2,457) 3,476
-------- --------
Net cash provided by operating
activities $420,885 $704,792
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,916) ($ 15,746)
Proceeds from sale of oil and
gas properties 515 34,027
-------- --------
Net cash provided (used) by investing
activities ($ 2,401) $ 18,281
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($357,600) ($839,049)
-------- --------
Net cash used by financing activities ($357,600) ($839,049)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 60,884 ($115,976)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 117,355 305,288
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $178,239 $189,312
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-9-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 393,156 $ 340,720
Accounts receivable:
Oil and gas sales 482,445 380,975
---------- ----------
Total current assets $ 875,601 $ 721,695
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,434,807 2,779,845
DEFERRED CHARGE 70,849 70,849
---------- ----------
$3,381,257 $3,572,389
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 36,404 $ 42,712
Gas imbalance payable 25,479 25,479
---------- ----------
Total current liabilities $ 61,883 $ 68,191
ACCRUED LIABILITY $ 151,671 $ 151,671
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 169,910) ($ 179,285)
Limited Partners, issued and
outstanding, 244,536 units 3,337,613 3,531,812
---------- ----------
Total Partners' capital $3,167,703 $3,352,527
---------- ----------
$3,381,257 $3,572,389
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-10-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- --------
REVENUES:
Oil and gas sales $701,079 $580,014
Interest income 3,404 5,122
Gain on sale of oil and gas
properties - 34,561
-------- --------
$704,483 $619,697
COSTS AND EXPENSES:
Lease operating $125,300 $125,358
Production tax 50,422 44,123
Depreciation, depletion, and
amortization of oil and gas
properties 119,292 156,876
General and administrative
(Note 2) 67,671 69,936
-------- --------
$362,685 $396,293
-------- --------
NET INCOME $341,798 $223,404
======== ========
GENERAL PARTNER - NET INCOME $ 21,691 $ 17,189
======== ========
LIMITED PARTNERS - NET INCOME $320,107 $206,215
======== ========
NET INCOME per unit $ 1.31 $ .84
======== ========
UNITS OUTSTANDING 244,536 244,536
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-11-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $1,758,244 $1,814,170
Interest income 8,909 16,071
Gain on sale of oil and gas
properties 524 439,894
---------- ----------
$1,767,677 $2,270,135
COSTS AND EXPENSES:
Lease operating $ 347,245 $ 366,067
Production tax 121,441 132,826
Depreciation, depletion, and
amortization of oil and gas
properties 369,240 439,682
General and administrative
(Note 2) 222,251 222,389
---------- ----------
$1,060,177 $1,160,964
---------- ----------
NET INCOME $ 707,500 $1,109,171
========== ==========
GENERAL PARTNER - NET INCOME $ 49,699 $ 72,242
========== ==========
LIMITED PARTNERS - NET INCOME $ 657,801 $1,036,929
========== ==========
NET INCOME per unit $ 2.69 $ 4.24
========== ==========
UNITS OUTSTANDING 244,536 244,536
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-12-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $707,500 $1,109,171
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 369,240 439,682
Gain on sale of oil and gas
properties ( 524) ( 439,894)
(Increase) decrease in accounts
receivable - oil and gas sales ( 101,470) 180,052
Decrease in accounts receivable -
other - 54
Decrease in accounts payable ( 6,308) ( 10,020)
-------- ----------
Net cash provided by operating
activities $968,438 $1,279,045
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 24,202) ($ 118,032)
Proceeds from sale of oil and
gas properties 524 482,921
-------- ----------
Net cash provided (used) by
investing activities ($ 23,678) $ 364,889
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($892,324) ($1,734,315)
-------- ----------
Net cash used by financing activities ($892,324) ($1,734,315)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 52,436 ($ 90,381)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 340,720 540,911
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $393,156 $ 450,530
======== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-13-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 260,902 $ 172,776
Accounts receivable:
Oil and gas sales 381,737 268,703
---------- ----------
Total current assets $ 642,639 $ 441,479
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,037,632 1,236,882
DEFERRED CHARGE 9,462 9,462
---------- ----------
$1,689,733 $1,687,823
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 43,689 $ 55,996
Gas imbalance payable 4,454 4,454
---------- ----------
Total current liabilities $ 48,143 $ 60,450
ACCRUED LIABILITY $ 182,639 $ 182,639
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 66,586) ($ 73,501)
Limited Partners, issued and
outstanding, 131,008 units 1,525,537 1,518,235
---------- ----------
Total Partners' capital $1,458,951 $1,444,734
---------- ----------
$1,689,733 $1,687,823
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-14-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Oil and gas sales $543,247 $436,235
Interest income 2,242 2,462
Loss on sale of oil and
gas properties - ( 2,126)
-------- --------
$545,489 $436,571
COSTS AND EXPENSES:
Lease operating $138,654 $146,240
Production tax 38,299 29,981
Depreciation, depletion, and
amortization of oil and gas
properties 65,829 87,437
General and administrative
(Note 2) 36,252 37,465
-------- --------
$279,034 $301,123
-------- --------
NET INCOME $266,455 $135,448
======== ========
GENERAL PARTNER - NET INCOME $ 15,843 $ 10,147
======== ========
LIMITED PARTNERS - NET INCOME $250,612 $125,301
======== ========
NET INCOME per unit $ 1.91 $ .96
======== ========
UNITS OUTSTANDING 131,008 131,008
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-15-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- -----------
REVENUES:
Oil and gas sales $1,410,133 $1,348,399
Interest income 5,375 7,232
Gain on sale of oil and
gas properties - 56,646
---------- ----------
$1,415,508 $1,412,277
COSTS AND EXPENSES:
Lease operating $ 422,404 $ 424,713
Production tax 99,365 89,677
Depreciation, depletion, and
amortization of oil and gas
properties 215,966 245,005
General and administrative
(Note 2) 120,224 119,558
---------- ----------
$ 857,959 $ 878,953
---------- ----------
NET INCOME $ 557,549 $ 533,324
========== ==========
GENERAL PARTNER - NET INCOME $ 36,247 $ 36,105
========== ==========
LIMITED PARTNERS - NET INCOME $ 521,302 $ 497,219
========== ==========
NET INCOME per unit $ 3.98 $ 3.80
========== ==========
UNITS OUTSTANDING 131,008 131,008
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-16-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $557,549 $533,324
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 215,966 245,005
Gain on sale of oil and gas
properties - ( 56,646)
(Increase) decrease in accounts
receivable - oil and gas sales ( 113,034) 116,993
Decrease in accounts payable ( 12,307) ( 68,440)
-------- --------
Net cash provided by operating
activities $648,174 $770,236
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 16,716) ($ 58,841)
Proceeds from sale of oil and
gas properties - 64,520
-------- --------
Net cash provided (used) by
investing activities ($ 16,716) $ 5,679
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($543,332) ($817,678)
-------- --------
Net cash used by financing activities ($543,332) ($817,678)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 88,126 ($ 41,763)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 172,776 298,964
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $260,902 $257,201
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-17-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 764,655 $ 483,197
Accounts receivable:
Oil and gas sales 1,232,464 820,078
---------- ----------
Total current assets $1,997,119 $1,303,275
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,848,310 3,190,480
DEFERRED CHARGE 127,657 127,657
---------- ----------
$4,973,086 $4,621,412
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 243,021 $ 302,889
Gas imbalance payable 178,518 178,518
---------- ----------
Total current liabilities $ 421,539 $ 481,407
ACCRUED LIABILITY $ 298,486 $ 298,486
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 254,606) ($ 275,783)
Limited Partners, issued and
outstanding, 418,266 units 4,507,667 4,117,302
---------- ----------
Total Partners' capital $4,253,061 $3,841,519
---------- ----------
$4,973,086 $4,621,412
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-18-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $1,877,248 $1,373,883
Interest income 6,605 10,200
Loss on sale of oil and
gas properties - ( 1,063)
---------- ----------
$1,883,853 $1,383,020
COSTS AND EXPENSES:
Lease operating $ 764,530 $ 815,923
Production tax 126,105 88,476
Depreciation, depletion, and
amortization of oil and gas
properties 140,883 252,032
General and administrative
(Note 2) 115,744 119,580
---------- ----------
$1,147,262 $1,276,011
---------- ----------
NET INCOME $ 736,591 $ 107,009
========== ==========
GENERAL PARTNER - NET INCOME $ 42,135 $ 14,922
========== ==========
LIMITED PARTNERS - NET INCOME $ 694,456 $ 92,087
========== ==========
NET INCOME per unit $ 1.66 $ .22
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-19-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $4,559,288 $4,995,623
Interest income 14,557 34,228
Gain on sale of oil and
gas properties - 36,098
---------- ----------
$4,573,845 $5,065,949
COSTS AND EXPENSES:
Lease operating $2,346,380 $2,336,628
Production tax 306,609 339,339
Depreciation, depletion, and
amortization of oil and gas
properties 434,005 856,678
General and administrative
(Note 2) 383,696 386,625
---------- ----------
$3,470,690 $3,919,270
---------- ----------
NET INCOME $1,103,155 $1,146,679
========== ==========
GENERAL PARTNER - NET INCOME $ 71,790 $ 89,890
========== ==========
LIMITED PARTNERS - NET INCOME $1,031,365 $1,056,789
========== ==========
NET INCOME per unit $ 2.47 $ 2.53
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-20-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,103,155 $1,146,679
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 434,005 856,678
Gain on sale of oil and gas
properties - ( 36,098)
(Increase) decrease in accounts
receivable - oil and gas sales ( 412,386) 609,349
Decrease in accounts payable ( 59,868) ( 403,025)
---------- ----------
Net cash provided by operating
activities $1,064,906 $2,173,583
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 91,835) ($ 2,013)
Proceeds from sale of oil and
gas properties - 73,654
---------- ----------
Net cash provided (used) by
investing activities ($ 91,835) $ 71,641
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 691,613) ($2,515,560)
---------- ----------
Net cash used by financing activities ($ 691,613) ($2,515,560)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 281,458 ($ 270,336)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 483,197 1,114,574
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 764,655 $ 844,238
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-21-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 442,138 $ 316,761
Accounts receivable:
Oil and gas sales 414,358 279,590
Other - 9,631
---------- ----------
Total current assets $ 856,496 $ 605,982
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,520,867 2,848,735
DEFERRED CHARGE 79,097 79,097
---------- ----------
$3,456,460 $3,533,814
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 71,948 $ 133,841
Gas imbalance payable 123,641 123,641
---------- ----------
Total current liabilities $ 195,589 $ 257,482
ACCRUED LIABILITY $ 171,735 $ 171,735
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 153,831) ($ 164,221)
Limited Partners, issued and
outstanding, 221,484 units 3,242,967 3,268,818
---------- ----------
Total Partners' capital $3,089,136 $3,104,597
---------- ----------
$3,456,460 $3,533,814
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-22-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Oil and gas sales $698,626 $425,564
Interest income 3,219 4,484
Gain (loss) on sale of oil
and gas properties 18,316 ( 893)
-------- --------
$720,161 $429,155
COSTS AND EXPENSES:
Lease operating $199,551 $212,573
Production tax 32,383 27,874
Depreciation, depletion, and
amortization of oil and gas
properties 143,796 119,141
General and administrative
(Note 2) 61,302 63,330
-------- --------
$437,032 $422,918
-------- --------
NET INCOME $283,129 $ 6,237
======== ========
GENERAL PARTNER - NET INCOME $ 19,747 $ 4,853
======== ========
LIMITED PARTNERS - NET INCOME $263,382 $ 1,384
======== ========
NET INCOME per unit $ 1.19 $ .01
======== ========
UNITS OUTSTANDING 221,484 221,484
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-23-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $1,621,650 $1,660,573
Interest income 7,781 16,294
Gain on sale of oil and
gas properties 18,156 27,168
---------- ----------
$1,647,587 $1,704,035
COSTS AND EXPENSES:
Lease operating $ 675,905 $ 780,879
Production tax 76,164 119,269
Depreciation, depletion, and
amortization of oil and gas
properties 404,367 423,084
General and administrative
(Note 2) 201,746 201,107
---------- ----------
$1,358,182 $1,524,339
---------- ----------
NET INCOME $ 289,405 $ 179,696
========== ==========
GENERAL PARTNER - NET INCOME $ 30,256 $ 25,093
========== ==========
LIMITED PARTNERS - NET INCOME $ 259,149 $ 154,603
========== ==========
NET INCOME per unit $ 1.17 $ .70
========== ==========
UNITS OUTSTANDING 221,484 221,484
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-24-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $289,405 $ 179,696
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 404,367 423,084
Gain on sale of oil and gas
properties ( 18,156) ( 27,168)
(Increase) decrease in accounts
receivable - oil and gas sales ( 134,768) 240,163
Decrease in accounts receivable -
other 9,631 -
Decrease in accounts payable ( 61,893) ( 28,399)
-------- ----------
Net cash provided by operating
activities $488,586 $ 787,376
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 78,236) $ -
Proceeds from sale of oil and
gas properties 19,893 59,837
-------- ----------
Net cash provided (used) by
investing activities ($ 58,343) $ 59,837
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($304,866) ($1,028,256)
-------- ----------
Net cash used by financing activities ($304,866) ($1,028,256)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $125,377 ($ 181,043)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 316,761 541,382
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $442,138 $ 360,339
======== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-25-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 264,280 $ 169,558
Accounts receivable:
Oil and gas sales 254,743 163,801
Other - 6,369
---------- ----------
Total current assets $ 519,023 $ 339,728
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,221,654 1,427,362
DEFERRED CHARGE 50,380 50,380
---------- ----------
$1,791,057 $1,817,470
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 45,890 $ 73,835
Gas imbalance payable 60,315 60,315
---------- ----------
Total current liabilities $ 106,205 $ 134,150
ACCRUED LIABILITY $ 111,221 $ 111,221
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 93,594) ($ 99,974)
Limited Partners, issued and
outstanding, 121,925 units 1,667,225 1,672,073
---------- ----------
Total Partners' capital $1,573,631 $1,572,099
---------- ----------
$1,791,057 $1,817,470
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-26-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Oil and gas sales $440,935 $246,676
Interest income 1,924 2,339
Gain (loss) on sale of oil
and gas properties 13,109 ( 95)
-------- --------
$455,968 $248,920
COSTS AND EXPENSES:
Lease operating $124,379 $131,326
Production tax 19,702 15,587
Depreciation, depletion, and
amortization of oil and gas
properties 89,412 71,620
General and administrative
(Note 2) 33,766 34,867
-------- --------
$267,259 $253,400
-------- --------
NET INCOME (LOSS) $188,709 ($ 4,480)
======== ========
GENERAL PARTNER - NET INCOME $ 12,916 $ 2,524
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $175,793 ($ 7,004)
======== ========
NET INCOME (LOSS) per unit $ 1.44 ($ .06)
======== ========
UNITS OUTSTANDING 121,925 121,925
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-27-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- -----------
REVENUES:
Oil and gas sales $1,004,949 $ 992,166
Interest income 4,249 9,097
Gain on sale of oil and
gas properties 13,064 23,094
---------- ----------
$1,022,262 $1,024,357
COSTS AND EXPENSES:
Lease operating $ 449,999 $ 492,410
Production tax 46,104 67,892
Depreciation, depletion, and
amortization of oil and gas
properties 246,708 258,962
General and administrative
(Note 2) 111,232 110,743
---------- ----------
$ 854,043 $ 930,007
---------- ----------
NET INCOME $ 168,219 $ 94,350
========== ==========
GENERAL PARTNER - NET INCOME $ 18,067 $ 14,621
========== ==========
LIMITED PARTNERS - NET INCOME $ 150,152 $ 79,729
========== ==========
NET INCOME per unit $ 1.23 $ .65
========== ==========
UNITS OUTSTANDING 121,925 121,925
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-28-
<PAGE>
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $168,219 $ 94,350
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 246,708 258,962
Gain on sale of oil and gas
properties ( 13,064) ( 23,094)
Decrease in accounts receivable -
General Partner - 13,140
(Increase) decrease in accounts
receivable - oil and gas sales ( 90,942) 135,732
Decrease in accounts receivable -
other 6,369 -
Decrease in accounts payable ( 27,945) ( 21,723)
-------- --------
Net cash provided by operating
activities $289,345 $457,367
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 41,152) ($ 7,883)
Proceeds from sale of oil and
gas properties 13,216 33,722
-------- --------
Net cash provided (used) by
investing activities ($ 27,936) $ 25,839
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($166,687) ($646,417)
-------- --------
Net cash used by financing activities ($166,687) ($646,417)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 94,722 ($163,211)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 169,558 351,163
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $264,280 $187,952
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-29-
<PAGE>
GEODYNE ENERGY INCOME PROGRAM III LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 1999, statements of operations for
the three and nine months ended September 30, 1999 and 1998, and
statements of cash flows for the nine months ended September 30, 1999 and
1998 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 September 30, 1999, the results
of operations for the three and nine months ended September 30, 1999 and
1998, and the cash flows for the nine months ended September 30, 1999 and
1998.
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, 1998. The
results of operations for the period ended September 30, 1999 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
-30-
<PAGE>
operations, including interest incurred to finance the acquisition, for
the period of time the properties are held by the General Partner prior to
their transfer to the Partnerships. 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 proceeds are credited to oil and gas
properties.
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 September 30, 1999 the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
III-A $3,598 $ 69,468
III-B 1,887 36,405
III-C 3,318 64,353
III-D 1,776 34,476
III-E 5,674 110,070
III-F 3,018 58,284
III-G 1,681 32,085
-31-
<PAGE>
During the nine months ended September 30, 1999 the following payments
were made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
III-A $30,847 $208,404
III-B 16,255 109,215
III-C 29,192 193,059
III-D 16,796 103,428
III-E 53,486 330,210
III-F 26,894 174,852
III-G 14,977 96,255
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.
-32-
<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 Partnerships.
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 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.
-33-
<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 September 30, 1999 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
During the nine months ended September 30, 1999, capital expenditures
incurred by the III-E, III-F, and III-G Partnerships totaled $91,835,
$78,236, and $41,152, respectively. These expenditures resulted primarily
from participation in the successful drilling of the Hay Reservoir Unit
No. 67 and the Hay Reservoir Unit No. 74 development wells located in
Sweetwater County, Wyoming. The III-E, III-F, and III-G Partnerships have
a 5.3%, 4.4%, and 2.2% working interest, respectively, in both the Hay
Reservoir No. 67 and the Hay Reservoir No. 74 wells. These drilling
activities were conducted in order to improve the recovery of reserves.
-34-
<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. The General Partner has elected to extend the term of the III-A,
III-B, and III-C Partnerships for the first two-year extension period, but
has not determined whether it intends to (i) further extend the term of
such Partnerships or (ii) extend the term of any other 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. Due to the volatility of oil and gas prices,
forecasting future prices is subject to great uncertainty and inaccuracy.
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. Such spot market sales are generally short-term in nature and
are dependent upon the obtaining of transportation services provided by
pipelines. In addition, crude oil prices in 1998 and early 1999 were at or
near their lowest level in the past decade due primarily to the global
surplus of crude oil. Oil prices have since rebounded primarily due to a
decrease in the global oil surplus as a result of production curtailments
by several major oil producing nations. Management is unable to predict
whether future oil and gas prices will (i) stabilize, (ii) increase, or
(iii) decrease.
-35-
<PAGE>
III-A PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- --------
Oil and gas sales $594,498 $428,407
Oil and gas production expenses $152,903 $140,153
Barrels produced 9,173 7,908
Mcf produced 162,850 168,184
Average price/Bbl $ 20.02 $ 11.93
Average price/Mcf $ 2.52 $ 1.99
As shown in the table above, total oil and gas sales increased $166,091
(38.8%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this increase, approximately
$74,000 and $87,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil sold increased 1,265
barrels, while volumes of gas sold decreased 5,334 Mcf for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. The increase in volumes of oil sold was primarily due
to the successful workover of one significant well during the three months
ended September 30, 1999. Average oil and gas prices increased to $20.02
per barrel and $2.52 per Mcf, respectively, for the three months ended
September 30, 1999 from $11.93 per barrel and $1.99 per Mcf, respectively,
for the three months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $12,750 (9.1%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. As a percentage of oil and gas sales, these expenses decreased to
25.7% for the three months ended September 30, 1999 from 32.7% for the
three months ended September 30, 1998. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $7,158 (6.3%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. As a percentage of
oil and gas sales, this expense decreased to 18.0% for the three months
ended September 30, 1999 from 26.6% for the three months ended September
30, 1998. This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold.
-36-
<PAGE>
General and administrative expenses decreased $2,415 (3.2%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 12.3% for the three months ended September 30, 1999 from
17.6% for the three months ended September 30, 1998. This percentage
decrease was primarily due to the increase in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
---------- ----------
Oil and gas sales $1,528,277 $1,573,580
Oil and gas production expenses $ 419,880 $ 439,744
Barrels produced 27,420 27,025
Mcf produced 527,937 567,122
Average price/Bbl $ 15.31 $ 13.01
Average price/Mcf $ 2.10 $ 2.15
As shown in the table above, total oil and gas sales decreased $45,303
(2.9%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this decrease, approximately
$84,000 was related to a decrease in volumes of gas sold and approximately
$29,000 was related to a decrease in the average price of gas sold. These
decreases were partially offset by increases of approximately $63,000
related to an increase in the average price of oil sold and approximately
$5,000 related to an increase in volumes of oil sold. Volumes of oil sold
increased 395 barrels, while volumes of gas sold decreased 39,185 Mcf for
the nine months ended September 30, 1999 as compared to the nine months
ended September 30, 1998. Average oil prices increased to $15.31 per
barrel for the nine months ended September 30, 1999 from $13.01 per barrel
for the nine months ended September 30, 1998. Average gas prices decreased
to $2.10 per Mcf for the nine months ended September 30, 1999 from $2.15
per Mcf for the nine months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $19,864 (4.5%) for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. As a percentage of oil and gas sales, these expenses remained
relatively constant at 27.5% for the nine months ended September 30, 1999
and 27.9% for the nine months ended September 30, 1998.
-37-
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $45,993 (11.9%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. This decrease was
primarily due to (i) the decrease in volumes of gas sold and (ii) upward
revisions in the estimates of remaining oil and gas reserves at December
31, 1998. As a percentage of oil and gas sales, this expense decreased to
22.2% for the nine months ended September 30, 1999 from 24.5% for the nine
months ended September 30, 1998.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
remained relatively constant at 15.7% for the nine months ended September
30, 1999 and 15.2% for the nine months ended September 30, 1998.
The Limited Partners have received cash distributions through September
30, 1999 totaling $25,740,701 or 97.51% of the Limited Partners' capital
contributions.
III-B PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- --------
Oil and gas sales $380,078 $267,275
Oil and gas production expenses $ 97,294 $ 97,763
Barrels produced 9,039 7,848
Mcf produced 79,004 87,673
Average price/Bbl $ 19.96 $ 12.54
Average price/Mcf $ 2.53 $ 1.93
As shown in the table above, total oil and gas sales increased $112,803
(42.2%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this increase, approximately
$67,000 and $47,000, respectively, were related to increases in the
average prices of oil and gas sold and approximately $15,000 was related
to an increase in volumes of oil sold. These increases were partially
offset by a decrease of approximately $16,000 related to a decrease in
volumes of gas sold. Volumes of oil sold increased 1,191 barrels, while
volumes of gas sold decreased 8,669 Mcf for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. The increase in volumes of oil sold was primarily due to the
successful workover of one
-38-
<PAGE>
significant well during the three months ended September 30, 1999. The
decrease in volumes of gas sold was primarily due to (i) normal declines
in production and (ii) the sale of several wells during 1998. Average oil
and gas prices increased to $19.96 per barrel and $2.53 per Mcf,
respectively, for the three months ended September 30, 1999 from $12.54
per barrel and $1.93 per Mcf, respectively, for the three months ended
September 30, 1998.
The III-B Partnership sold certain oil and gas properties during the three
months ended September 30, 1998 and recognized a $32,404 gain on such
sales. No such sales occurred during the three months ended September 30,
1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. As a percentage of oil and gas sales, these expenses decreased to
25.6% for the three months ended September 30, 1999 from 36.6% for the
three months ended September 30, 1998. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $7,246 (10.2%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at December 31, 1998. As a percentage of oil and gas sales,
this expense decreased to 16.8% for the three months ended September 30,
1999 from 26.6% for the three months ended September 30, 1998. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
General and administrative expenses decreased $1,269 (3.2%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 10.1% for the three months ended September 30, 1999 from
14.8% for the three months ended September 30, 1998. This percentage
decrease was primarily due to the increase in oil and gas sales.
-39-
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
-------- --------
Oil and gas sales $880,919 $957,758
Oil and gas production expenses $262,971 $282,448
Barrels produced 24,565 26,493
Mcf produced 233,954 284,710
Average price/Bbl $ 15.82 $ 13.48
Average price/Mcf $ 2.10 $ 2.11
As shown in the table above, total oil and gas sales decreased $76,839
(8.0%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this decrease, approximately
$26,000 and $107,000, respectively, were related to decreases in volumes
of oil and gas sold. These decreases were partially offset by an increase
of approximately $57,000 related to an increase in the average price of
oil sold. Volumes of oil and gas sold decreased 1,928 barrels and 50,756
Mcf, respectively, for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. The decrease in
volumes of gas sold was primarily due to (i) normal declines in
production, (ii) the receipt of a reduced percentage of sales on one
significant well during the nine months ended September 30, 1999 due to
the III-B Partnership's overproduced gas balancing position in that well,
and (iii) the sale of several wells during 1998. Average oil prices
increased to $15.82 per barrel for the nine months ended September 30,
1999 from $13.48 per barrel for the nine months ended September 30, 1998.
Average gas prices remained relatively constant at $2.10 per Mcf for the
nine months ended September 30, 1999 and $2.11 per Mcf for the nine months
ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $19,477 (6.9%) for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. As a percentage of oil and gas sales, these expenses remained
relatively constant at 29.9% for the nine months ended September 30, 1999
and 29.5% for the nine months ended September 30, 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $51,362 (21.9%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining oil and gas reserves at
December 31, 1998. As a percentage of oil and
-40-
<PAGE>
gas sales, this expense decreased to 20.8% for the nine months ended
September 30, 1999 from 24.5% for the nine months ended September 30,
1998. This percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization and the increase in the average
price of oil sold.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 14.2% for the nine months ended September 30, 1999 from 13.1%
for the nine months ended September 30, 1998.
The Limited Partners have received cash distributions through September
30, 1999 totaling $14,952,353 or 108.09% of Limited Partners' capital
contributions.
III-C PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- --------
Oil and gas sales $701,079 $580,014
Oil and gas production expenses $175,722 $169,481
Barrels produced 5,559 5,424
Mcf produced 247,336 307,257
Average price/Bbl $ 20.69 $ 14.00
Average price/Mcf $ 2.37 $ 1.64
As shown in the table above, total oil and gas sales increased $121,065
(20.9%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this increase, approximately
$37,000 and $180,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $98,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 135 barrels, while volumes of gas
sold decreased 59,921 Mcf for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. The decrease in
volumes of gas sold was primarily due to (i) normal declines in
production, (ii) positive prior period volume adjustments made by the
purchasers on three significant wells during the three months ended
September 30, 1998, and (iii) the sale of several wells in 1998. Average
oil and gas prices increased to $20.69 per barrel and $2.37 per Mcf,
respectively, for the three months ended September 30, 1999 from $14.00
per barrel and $1.64 per Mcf, respectively, for the three months ended
September 30, 1998.
-41-
<PAGE>
The III-C Partnership sold certain oil and gas properties during the three
months ended September 30, 1998 and recognized a $34,561 gain on such
sales. No such sales occurred during the three months ended September 30,
1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $6,241 (3.7%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. As a percentage of oil and gas sales, these expenses decreased to
25.1% for the three months ended September 30, 1999 from 29.2% for the
three months ended September 30, 1998. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $37,584 (24.0%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. This decrease was
primarily due to (i) two significant wells being fully depleted in 1998
due to the lack of remaining reserves and (ii) the decrease in volumes of
gas sold. As a percentage of oil and gas sales, this expense decreased to
17.0% for the three months ended September 30, 1999 from 27.0% for the
three months ended September 30, 1998. This percentage decrease was
primarily due to the increases in average prices of oil and gas sold.
General and administrative expenses decreased $2,265 (3.2%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 9.7% for the three months ended September 30, 1999 from 12.1%
for the three months ended September 30, 1998. This percentage decrease
was primarily due to the increase in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
---------- ----------
Oil and gas sales $1,758,244 $1,814,170
Oil and gas production expenses $ 468,686 $ 498,893
Barrels produced 17,591 18,218
Mcf produced 763,256 843,070
Average price/Bbl $ 16.11 $ 14.38
Average price/Mcf $ 1.93 $ 1.84
As shown in the table above, total oil and gas sales decreased $55,926
(3.1%) for the nine months ended September
-42-
<PAGE>
30, 1999 as compared to the nine months ended September 30, 1998. Of this
decrease, approximately $9,000 and $147,000, respectively, were related to
decreases in volumes of oil and gas sold. These decreases were partially
offset by increases of approximately $30,000 and $70,000, respectively,
related to increases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 627 barrels and 79,814 Mcf, respectively, for
the nine months ended September 30, 1999 as compared to the nine months
ended September 30, 1998. Average oil and gas prices increased to $16.11
per barrel and $1.93 per Mcf, respectively, for the nine months ended
September 30, 1999 from $14.38 per barrel and $1.84 per Mcf, respectively,
for the nine months ended September 30, 1998.
The III-C Partnership sold certain oil and gas properties during the nine
months ended September 30, 1999 and recognized a $524 gain on such sales.
Sales of oil and gas properties during the nine months ended September 30,
1998 resulted in the III-C Partnership recognizing similar gains totaling
$439,894.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $30,207 (6.1%) for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. As a percentage of oil and gas sales, these expenses decreased to
26.7% for the nine months ended September 30, 1999 from 27.5% for the nine
months ended September 30, 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $70,442 (16.0%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. This decrease was
primarily due to (i) two significant wells being fully depleted in 1998
due to the lack of remaining reserves and (ii) the decreases in volumes of
oil and gas sold. As a percentage of oil and gas sales, this expense
decreased to 21.0% for the nine months ended September 30, 1999 from 24.2%
for the nine months ended September 30, 1998. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold
and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
remained relatively constant at 12.6% for the nine months ended September
30, 1999 and 12.3% for the nine months ended September 30, 1998.
-43-
<PAGE>
The Limited Partners have received cash distributions through September
30, 1999 totaling $18,071,795 or 73.90% of Limited Partners' capital
contributions.
III-D PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- --------
Oil and gas sales $543,247 $436,235
Oil and gas production expenses $176,953 $176,221
Barrels produced 7,591 8,152
Mcf produced 169,113 212,093
Average price/Bbl $ 18.60 $ 10.70
Average price/Mcf $ 2.38 $ 1.65
As shown in the table above, total oil and gas sales increased $107,012
(24.5%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this increase, approximately
$60,000 and $124,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $71,000 related to a decrease in volumes of
gas sold. Volumes of oil and gas sold decreased 561 barrels and 42,980
Mcf, respectively, for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. The decrease in
volumes of gas sold was primarily due to (i) normal declines in production
and (ii) positive prior period volume adjustments made by the purchasers
on two significant wells during the three months ended September 30, 1998.
Average oil and gas prices increased to $18.60 per barrel and $2.38 per
Mcf, respectively, for the three months ended September 30, 1999 from
$10.70 per barrel and $1.65 per Mcf, respectively, for the three months
ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. As a percentage of oil and gas sales, these expenses decreased to
32.6% for the three months ended September 30, 1999 from 40.4% for the
three months ended September 30, 1998. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $21,608 (24.7%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. This decrease was
primarily due
-44-
<PAGE>
to (i) the decreases in volumes of oil and gas sold and (ii) a reduction
in the depletable base of oil and gas properties due to an impairment
provision recorded during the fourth quarter of 1998. The impairment
provision was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at December 31, 1998.
As a percentage of oil and gas sales, this expense decreased to 12.1% for
the three months ended September 30, 1999 from 20.0% for the three months
ended September 30, 1998. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
General and administrative expenses decreased $1,213 (3.2%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 6.7% for the three months ended September 30, 1999 from 8.6%
for the three months ended September 30, 1998. This percentage decrease
was primarily due to the increase in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
---------- ----------
Oil and gas sales $1,410,133 $1,348,399
Oil and gas production expenses $ 521,769 $ 514,390
Barrels produced 27,307 28,444
Mcf produced 540,394 560,692
Average price/Bbl $ 13.76 $ 12.08
Average price/Mcf $ 1.91 $ 1.79
As shown in the table above, total oil and gas sales increased $61,734
(4.6%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this increase, approximately
$46,000 and $66,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $14,000 and $36,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 1,137 barrels and 20,298 Mcf, respectively, for the nine months
ended September 30, 1999 as compared to the nine months ended September
30, 1998. Average oil and gas prices increased to $13.76 per barrel and
$1.91 per Mcf, respectively, for the nine months ended September 30, 1999
from $12.08 per barrel and $1.79 per Mcf, respectively, for the nine
months ended September 30, 1998.
-45-
<PAGE>
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. As a percentage of oil and gas sales, these expenses decreased to
37.0% for the nine months ended September 30, 1999 from 38.1% for the nine
months ended September 30, 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $29,039 (11.9%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
a reduction in the depletable base of oil and gas properties due to an
impairment provision recorded during the fourth quarter of 1998. The
impairment provision was related to the decline in oil and gas prices used
to determine the recoverability of oil and gas reserves at December 31,
1998. As a percentage of oil and gas sales, this expense decreased to
15.3% for the nine months ended September 30, 1999 from 18.2% for the nine
months ended September 30, 1998. This percentage decrease was primarily
due to the dollar decrease in depreciation, depletion, and amortization
and the increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 8.5% for the nine months ended September 30, 1999 from 8.9%
for the nine months ended September 30, 1998.
The Limited Partners have received cash distributions through September
30, 1999 totaling $9,043,669 or 69.03% of the Limited Partners' capital
contributions.
III-E PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
---------- ----------
Oil and gas sales $1,877,248 $1,373,883
Oil and gas production expenses $ 890,635 $ 904,399
Barrels produced 44,634 50,991
Mcf produced 436,613 461,661
Average price/Bbl $ 17.85 $ 10.47
Average price/Mcf $ 2.47 $ 1.82
-46-
<PAGE>
As shown in the table above, total oil and gas sales increased $503,365
(36.6%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this increase, approximately
$329,000 and $286,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by a decrease of approximately $67,000 related to a decrease in volumes of
oil sold. Volumes of oil and gas sold decreased 6,357 barrels and 25,048
Mcf, respectively, for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. The decrease in
volumes of oil sold was primarily due to normal declines in production.
Average oil and gas prices increased to $17.85 per barrel and $2.47 per
Mcf, respectively, for the three months ended September 30, 1999 from
$10.47 per barrel and $1.82 per Mcf, respectively, for the three months
ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $13,764 (1.5%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. This decrease was primarily due to a decrease in lease operating
expenses associated with the decreases in volumes of oil and gas sold.
This decrease was partially offset by an increase primarily due to (i) an
increase in production taxes associated with the increase in oil and gas
sales and (ii) credits received during the three months ended September
30, 1998 from the operator on one significant well for prior period lease
operating expenses. As a percentage of oil and gas sales, these expenses
decreased to 47.4% for the three months ended September 30, 1999 from
65.8% for the three months ended September 30, 1998. This percentage
decrease was primarily due to the increases in the average prices of oil
and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $111,149 (44.1%) for the three months ended September 30, 1999
as compared to the three months ended September 30, 1998. This decrease
was primarily due to a reduction in the depletable base of oil and gas
properties due to an impairment provision recorded during the fourth
quarter of 1998. The impairment provision was related to a decline in oil
and gas prices used to determine the recoverability of oil and gas
reserves at December 31, 1998. As a percentage of oil and gas sales, this
expense decreased to 7.5% for the three months ended September 30, 1999
from 18.3% for the three months ended September 30, 1998. This percentage
decrease was primarily due to the dollar decrease in depreciation,
depletion, and amortization and the increases in the average prices of oil
and gas sold.
-47-
<PAGE>
General and administrative expenses decreased $3,836 (3.2%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 6.2% for the three months ended September 30, 1999 from 8.7%
for the three months ended September 30, 1998. This percentage decrease
was primarily due to the increase in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
---------- ----------
Oil and gas sales $4,559,288 $4,995,623
Oil and gas production expenses $2,652,989 $2,675,967
Barrels produced 152,375 170,935
Mcf produced 1,255,776 1,583,559
Average price/Bbl $ 13.43 $ 11.71
Average price/Mcf $ 2.00 $ 1.89
As shown in the table above, total oil and gas sales decreased $436,335
(8.7%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this decrease, approximately
$217,000 and $620,000, respectively, were related to decreases in volumes
of oil and gas sold. These decreases were partially offset by increases of
approximately $261,000 and $140,000, respectively, related to increases in
the average prices of oil and gas sold. Volumes of oil and gas sold
decreased 18,560 barrels and 327,783 Mcf, respectively, for the nine
months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. The decrease in volumes of oil sold was primarily due
to normal declines in production. The decrease in volumes of gas sold was
primarily due to (i) positive prior period volume adjustments made by the
purchasers on three significant wells during the nine months ended
September 30, 1998 and (ii) normal declines in production. Average oil and
gas prices increased to $13.43 per barrel and $2.00 per Mcf, respectively,
for the nine months ended September 30, 1999 from $11.71 per barrel and
$1.89 per Mcf, respectively, for the nine months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. Decreases primarily due to (i) a decrease in production taxes
associated with the decrease in oil and gas sales and (ii) a decrease in
lease operating expenses associated with the decreases in volumes of oil
and gas sold were significantly
-48-
<PAGE>
offset by an increase primarily due to a positive prior period lease
operating expense adjustment made by the operator on one significant well
during the nine months ended September 30, 1999. As a percentage of oil
and gas sales, these expenses increased to 58.2% for the nine months ended
September 30, 1999 from 53.6% for the nine months ended September 30,
1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $422,673 (49.3%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. This decrease was
primarily due to (i) a reduction in the depletable base of oil and gas
properties due to an impairment provision recorded during the fourth
quarter of 1998 and (ii) a decrease in volumes of oil and gas sold. The
impairment provision was related to the decline in oil and gas prices used
to determine the recoverability of oil and gas reserves at December 31,
1998. As a percentage of oil and gas sales, this expense decreased to 9.5%
for the nine months ended September 30, 1999 from 17.1% for the nine
months ended September 30, 1998. This percentage decrease was primarily
due to the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 8.4% for the nine months ended September 30, 1999 from 7.7%
for the nine months ended September 30, 1998.
The Limited Partners have received cash distributions through September
30, 1999 totaling $30,862,016 or 73.79% of the Limited Partners' capital
contributions.
III-F PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- --------
Oil and gas sales $698,626 $425,564
Oil and gas production expenses $231,934 $240,447
Barrels produced 12,820 11,651
Mcf produced 205,030 176,592
Average price/Bbl $ 19.22 $ 11.10
Average price/Mcf $ 2.21 $ 1.68
As shown in the table above, total oil and gas sales increased $273,062
(64.2%) for the three months ended September 30, 1999 as compared to the
three months ended
-49-
<PAGE>
September 30, 1998. Of this increase, approximately $104,000 and $108,000,
respectively, were related to increases in the average prices of oil and
gas sold, and approximately $48,000 was related to an increase in volumes
of gas sold. Volumes of oil and gas sold increased 1,169 barrels and
28,438 Mcf, respectively, for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. The increase in
volumes of oil sold was primarily due to a negative prior period volume
adjustment made by the operator on one significant well during the three
months ended September 30, 1998. The increase in volumes of gas sold was
primarily due to a positive prior period volume adjustment made by the
purchaser on one significant well during the three months ended September
30, 1999. Average oil and gas prices increased to $19.22 per barrel and
$2.21 per Mcf, respectively, for the three months ended September 30, 1999
from $11.10 per barrel and $1.68 per Mcf, respectively, for the three
months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $8,513 (3.5%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. As a percentage of oil and gas sales, these expenses decreased to
33.2% for the three months ended September 30, 1999 from 56.5% for the
three months ended September 30, 1998. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $24,655 (20.7%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. This increase was
primarily due to (i) the increases in volumes of oil and gas sold and (ii)
downward revisions in the estimates of remaining oil and gas reserves at
December 31, 1998. As a percentage of oil and gas sales, this expense
decreased to 20.6% for the three months ended September 30, 1999 from
28.0% for the three months ended September 30, 1998. This percentage
decrease was primarily due to the increases in the average prices of oil
and gas sold.
General and administrative expenses decreased $2,028 (3.2%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 8.8% for the three months ended September 30, 1999 from 14.9%
for the three months ended September 30, 1998. This percentage decrease
was primarily due to the increase in oil and gas sales.
-50-
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
---------- ----------
Oil and gas sales $1,621,650 $1,660,573
Oil and gas production expenses $ 752,069 $ 900,148
Barrels produced 42,836 42,624
Mcf produced 535,860 619,604
Average price/Bbl $ 14.66 $ 12.99
Average price/Mcf $ 1.85 $ 1.79
As shown in the table above, total oil and gas sales decreased $38,923
(2.3%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this decrease, approximately
$150,000 was related to a decrease in volumes of gas sold, which decrease
was partially offset by increases of approximately $72,000 and $36,000,
respectively, related to increases in the average prices of oil and gas
sold. Volumes of oil sold increased 212 barrels, while volumes of gas sold
decreased 83,744 Mcf for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. The decrease in
volumes of gas sold was primarily due to (i) positive prior period volume
adjustments made by the purchasers on three significant wells during the
nine months ended September 30, 1998, (ii) the shutting-in of one
significant well during the nine months ended September 30, 1999 following
an unsuccessful workover, and (iii) normal declines in production. These
decreases were partially offset by a positive prior period volume
adjustment made by the purchaser on one significant well during the nine
months ended September 30, 1999. Average oil and gas prices increased to
$14.66 per barrel and $1.85 per Mcf, respectively, for the nine months
ended September 30, 1999 from $12.99 per barrel and $1.79 per Mcf,
respectively, for the nine months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $148,079 (16.5%) for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. This decrease was primarily due to (i) the reversal during the nine
months ended September 30, 1999 of a litigation accrual no longer deemed
necessary by management, (ii) workover expenses incurred on two
significant wells during the nine months ended September 30, 1998 in order
to improve the recovery of reserves, (iii) positive prior period
production tax adjustments made by the purchaser on several wells during
the nine months ended September 30, 1998, and (iv) negative
-51-
<PAGE>
prior period production tax adjustments made by the purchaser on one
significant well during the nine months ended September 30, 1999. These
decreases were partially offset by a positive prior period adjustment of
lease operating expenses made by the operator on another significant well
during the nine months ended September 30, 1999. As a percentage of oil
and gas sales, these expenses decreased to 46.4% for the nine months ended
September 30, 1999 from 54.2% for the nine months ended September 30,
1998. This percentage decrease was primarily due to the dollar decrease in
oil and gas production expenses and the increases in the average prices of
oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $18,717 (4.4%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. As a percentage of
oil and gas sales, this expense decreased to 24.9% for the nine months
ended September 30, 1999 from 25.5% for the nine months ended September
30, 1998.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
remained relatively constant at 12.4% for the nine months ended September
30, 1999 and 12.1% for the nine months ended September 30, 1998.
The Limited Partners have received cash distributions through September
30, 1999 totaling $11,414,904 or 51.54% of Limited Partners' capital
contributions.
III-G PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 1998.
Three Months Ended September 30,
--------------------------------
1999 1998
-------- --------
Oil and gas sales $440,935 $246,676
Oil and gas production expenses $144,081 $146,913
Barrels produced 9,897 8,422
Mcf produced 114,797 92,235
Average price/Bbl $ 18.73 $ 11.17
Average price/Mcf $ 2.23 $ 1.65
As shown in the table above, total oil and gas sales increased $194,259
(78.8%) for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. Of this increase, approximately
$75,000 and $66,000, respectively, were related to increases in the
-52-
<PAGE>
average prices of oil and gas sold and approximately $37,000 was related
to an increase in volumes of gas sold. Volumes of oil and gas sold
increased 1,475 barrels and 22,562 Mcf, respectively, for the three months
ended September 30, 1999 as compared to the three months ended September
30, 1998. The increase in volumes of oil sold was primarily due to a
negative prior period volume adjustment made by the purchaser on one
significant well during the three months ended September 30, 1998. The
increase in volumes of gas sold was primarily due to a positive prior
period volume adjustment made by the purchaser on one significant well
during the three months ended September 30, 1999. Average oil and gas
prices increased to $18.73 per barrel and $2.23 per Mcf, respectively, for
the three months ended September 30, 1999 from $11.17 per barrel and $1.65
per Mcf, respectively, for the three months ended September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $2,832 (1.9%) for the three months ended
September 30, 1999 as compared to the three months ended September 30,
1998. As a percentage of oil and gas sales, these expenses decreased to
32.7% for the three months ended September 30, 1999 from 59.6% for the
three months ended September 30, 1998. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $17,792 (24.8%) for the three months ended September 30, 1999 as
compared to the three months ended September 30, 1998. This increase was
primarily due to the increases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 20.3% for the
three months ended September 30, 1999 from 29.0% for the three months
ended September 30, 1998. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
General and administrative expenses decreased $1,101 (3.2%) for the three
months ended September 30, 1999 as compared to the three months ended
September 30, 1998. As a percentage of oil and gas sales these expenses
decreased to 7.7% for the three months ended September 30, 1999 from 14.1%
for the three months ended September 30, 1998. This percentage decrease
was primarily due to the increase in oil and gas sales.
-53-
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1998.
Nine Months Ended September 30,
-------------------------------
1999 1998
---------- --------
Oil and gas sales $1,004,949 $992,166
Oil and gas production expenses $ 496,103 $560,302
Barrels produced 31,383 30,438
Mcf produced 292,301 333,578
Average price/Bbl $ 14.60 $ 12.97
Average price/Mcf $ 1.87 $ 1.79
As shown in the table above, total oil and gas sales increased $12,783
(1.3%) for the nine months ended September 30, 1999 as compared to the
nine months ended September 30, 1998. Of this increase, approximately
$51,000 and $23,000, respectively, were related to increases in the
average prices of oil and gas sold and approximately $12,000 was related
to an increase in volumes of oil sold. These increases were partially
offset by a decrease of approximately $74,000 related to a decrease in
volumes of gas sold. Volumes of oil sold increased 945 barrels, while
volumes of gas sold decreased 41,277 Mcf for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. The decrease in volumes of gas sold was primarily due to (i)
positive prior period volume adjustments made by the purchasers on three
significant wells during the nine months ended September 30, 1998, (ii)
the shutting-in of one significant well during the nine months ended
September 30, 1999 following an unsuccessful workover, and (iii) normal
declines in production. These decreases were partially offset by a
positive prior period volume adjustment made by the purchaser on one
significant well during the nine months ended September 30, 1999. Average
oil and gas prices increased to $14.60 per barrel and $1.87 per Mcf,
respectively, for the nine months ended September 30, 1999 from $12.97 per
barrel and $1.79 per Mcf, respectively, for the nine months ended
September 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $64,199 (11.5%) for the nine months ended
September 30, 1999 as compared to the nine months ended September 30,
1998. This decrease was primarily due to (i) the reversal during the nine
months ended September 30, 1999 of a litigation accrual no longer deemed
necessary by management, (ii) workover expenses incurred on two
significant wells during the nine months ended September 30, 1998 in order
to improve the recovery of reserves, (iii) positive prior period
production tax adjustments made by the purchasers on several wells during
-54-
<PAGE>
the nine months ended September 30, 1998, and (iv) negative prior period
production tax adjustments made by the purchaser on one significant well
during the nine months ended September 30, 1999. These decreases were
partially offset by a positive prior period adjustment of lease operating
expenses on another significant well during the nine months ended
September 30, 1999. As a percentage of oil and gas sales, these expenses
decreased to 49.4% for the nine months ended September 30, 1999 from 56.5%
for the nine months ended September 30, 1998. This percentage decrease was
primarily due to the dollar decrease in oil and gas production expenses
and the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $12,254 (4.7%) for the nine months ended September 30, 1999 as
compared to the nine months ended September 30, 1998. As a percentage of
oil and gas sales, this expense decreased to 24.5% for the nine months
ended September 30, 1999 from 26.1% for the nine months ended September
30, 1998.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 1999 as compared to the nine months ended
September 30, 1998. As a percentage of oil and gas sales, these expenses
remained relatively constant at 11.1% for the nine months ended September
30, 1999 and 11.2% for the nine months ended September 30, 1998.
The Limited Partners have received cash distributions through September
30, 1999 totaling $6,002,287 or 49.23% of Limited Partners' capital
contributions.
YEAR 2000 COMPUTER ISSUES
- -------------------------
IN GENERAL
The Year 2000 Issue ("Y2K") refers to the inability of computer and other
information technology systems to properly process date and time
information, stemming from the earlier programming practice of using two
digits rather than four to represent the year in a date. For example,
computer programs and imbedded chips that are date sensitive may recognize
a date using (00) as the year 1900 rather than the year 2000. The
consequence of Y2K is that computer and imbedded processing systems may be
at risk of malfunctioning, particularly during the transition from 1999 to
2000.
-55-
<PAGE>
The effects of Y2K are exacerbated by the interdependence of computer and
telecommunication systems throughout the world. This interdependence also
exists among the Partnerships, Samson Investment Company and its
affiliates ("Samson"), and their vendors, customers, and business
partners, as well as with regulators. The potential risks associated with
Y2K for an oil and gas production company fall into three general areas:
(i) financial, leasehold and administrative computer systems, (ii)
imbedded systems in field process control units, and (iii) third party
exposures. As discussed below, General Partner does not believe that these
risks will be material to the Partnerships' operations.
The Partnerships' business is producing oil and gas. The day-to-day
production of the Partnerships' oil and gas is not dependent on computers
or equipment with imbedded chips. As further discussed below, management
anticipates that the Partnerships' daily business activities will not be
materially affected by Y2K.
The Partnerships rely on Samson to provide all of their operational and
administrative services on either a direct or indirect basis. Samson has
addressed each of the three Y2K areas discussed above through a readiness
process that:
1. increased the awareness of the issue among key employees;
2. identified areas of potential risk;
3. assessed the relative impact of these risks and Samson's ability
to manage them; and
4. remediated the risks on a priority basis wherever possible.
One of Samson Investment Company's Executive Vice Presidents is
responsible for communicating to its Board of Directors Y2K actions and
for the ultimate implementation of its Y2K plan. He has delegated to
Samson Investment Company's Senior Vice President-Technology and
Administrative Services principal responsibility for ensuring Y2K
compliance within Samson.
Samson has been planning for the impact of Y2K on its information
technology systems since 1993. As of November 1, 1999, Samson is in the
final stages of implementation of a Y2K plan, as summarized below:
-56-
<PAGE>
FINANCIAL AND ADMINISTRATIVE SYSTEMS
1. Awareness. Samson has alerted its officers, managers and supervisors of
Y2K issues and asked them to have their employees participate in the
identification of potential Y2K risks which might otherwise go unnoticed
by higher level employees and officers. As a result, awareness of the
issue is considered high.
2. Risk Identification. Samson's most significant financial and
administrative systems exposure is the Y2K status of the accounting and
land administration system used to collect and manage data for internal
management decision making and for external revenue and accounts payable
purposes. Other concerns include network hardware and software, desktop
computing hardware and software, telecommunications, and office space
readiness.
3. Risk Assessment. The failure to identify and correct a material Y2K
problem could result in inaccurate or untimely financial information for
management decision-making or cash flow and payment purposes, including
maintaining oil and gas leases.
4. Remediation. Since 1993, Samson has been upgrading its accounting and
land administration software. All of the Y2K upgrades have been completed.
In addition, in 1997 and 1998 Samson replaced or applied software patches
to substantially all of its network and desktop software applications and
believes them to be currently Y2K compliant. The costs of all such risk
assessments and remediation were not material to the Partnerships.
5. Contingency Planning. Notwithstanding the foregoing, should there be
significant unanticipated disruptions in Samson's financial and
administrative systems, all of the accounting processes that are currently
automated will need to be performed manually. Samson has communicated to
its management team the importance of having adequate staff available to
manually perform necessary functions to minimize disruptions.
IMBEDDED SYSTEMS
1. Awareness. Samson's Y2K program has involved all levels of field
personnel from production foremen and higher. Employees at all levels of
the organization have been asked to participate in the identification of
potential Y2K risks, which might otherwise go unnoticed by higher level
employees and officers of Samson, and as a result, awareness of the issue
is considered high.
-57-
<PAGE>
2. Risk Identification. Samson has inventoried all possible exposures to
imbedded chips and systems. Such exposures can be classified as either (i)
oil and gas production and processing equipment or (ii) office machines
such as faxes, copiers, phones, etc.
With respect to oil and gas production and processing equipment, neither
Samson nor the Partnerships operate offshore wells, significant processing
plants, or wells with older electronic monitoring systems. As a result,
Samson's inventory identified less than 10 applications using imbedded
chips. All of these have been tested by the respective vendors and have
been found to be Y2K compliant or have been upgraded or replaced.
Office machines have been tested by Samson and vendors and are believed to
be compliant.
3. Risk Assessment and Remediation. The failure to identify and correct a
material Y2K problem in an imbedded system could result in outcomes
ranging from errors in data reporting to curtailments or shutdowns in
production. As noted above, Samson has identified less than 10 imbedded
system applications all of which have been made compliant or replaced.
None of these applications are believed to be material to Samson or the
Partnerships. Samson believes that sufficient manual processes are
available to minimize any field level risk and that there will be no
material impact on the Partnerships with respect to these applications.
4. Contingency Planning. Should material production disruptions occur as a
result of Y2K failures in field operations, Samson will utilize its
existing field personnel in an attempt to avoid any material impact on
operating cash flow. Samson is not able to quantify any potential exposure
in the event of systems failure or inadequate manual alternatives.
THIRD PARTY EXPOSURES
1. Awareness. Samson has advised management to consider Y2K implications
with its outside vendors, customers, and business partners. Management has
been asked to participate in the identification of potential third party
Y2K risks and, as a result, awareness of the issue is considered high.
2. Risk Identification. Samson's most significant third party Y2K exposure
is its dependence on third parties for the receipt of revenues from oil
and gas sales. However, virtually all of these purchasers are very large
and sophisticated companies. Other Y2K concerns include the availability
of electric power to Samson's field operations,
-58-
<PAGE>
the integrity of telecommunication systems, and the readiness of
commercial banks to execute electronic fund transfers.
3. Risk Assessment. Because of the high awareness of the Y2K problem in
the U.S., Samson has not undertaken and does not plan to undertake a
formal company wide plan to make inquiries of third parties on the subject
of Y2K readiness. If it did so, Samson has no ability to require responses
to such inquiries or to independently verify their accuracy. Samson has,
however, received oral assurances from its significant oil and gas
purchasers of Y2K compliance. If significant disruptions from major
purchasers were to occur, however, there could be a material and adverse
impact on the Partnerships' results of operations, liquidity, and
financial conditions.
It is important to note that third party oil and gas purchasers have
significant incentives to avoid disruptions arising from a Y2K failure.
For example, most of these parties are under contractual obligations to
purchase oil and gas or disperse revenues to Samson. The failure to do so
will result in contractual and statutory penalties. Therefore, Samson
believes that it is unlikely that there will be material third party
non-compliance with purchase and remittance obligations as a result of Y2K
issues.
4. Remediation. Where Samson perceived a significant risk of Y2k
non-compliance by banks and other significant vendors that would have had
a material impact on Samson's business, Samson undertook joint testing
during 1999, and any identified problems have been resolved.
5. Contingency Planning. In the unlikely event that material production
disruptions occur as a result of Y2K failures of third parties, the
Partnerships' operating cash flow could be impacted. This contingency will
be factored into deliberations on the level of quarterly cash
distributions paid out during any such period of cash flow disruption.
-59-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-60-
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial Data Schedule containing summary financial information extracted
from the III-A Partnership's financial statements as of September 30, 1999
and for the nine months ended September 30, 1999, filed herewith.
27.2 Financial Data Schedule containing summary financial information extracted
from the III-B Partnership's financial statements as of September 30, 1999
and for the nine months ended September 30, 1999, filed herewith.
27.3 Financial Data Schedule containing summary financial information extracted
from the III-C Partnership's financial statements as of September 30, 1999
and for the nine months ended September 30, 1999, filed herewith.
27.4 Financial Data Schedule containing summary financial information extracted
from the III-D Partnership's financial statements as of September 30, 1999
and for the nine months ended September 30, 1999, filed herewith.
27.5 Financial Data Schedule containing summary financial information extracted
from the III-E Partnership's financial statements as of September 30, 1999
and for the nine months ended September 30, 1999, filed herewith.
27.6 Financial Data Schedule containing summary financial information extracted
from the III-F Partnership's financial statements as of September 30, 1999
and for the nine months ended September 30, 1999, filed herewith.
27.7 Financial Data Schedule containing summary financial information extracted
from the III-G Partnership's financial statements as of September 30, 1999
and for the nine months ended September 30, 1999, filed herewith.
All other exhibits are omitted as inapplicable.
-61-
<PAGE>
(b) Reports on Form 8-K.
Current Report on Form 8-K filed during the third quarter of 1999:
Date of Event: September 27, 1999
Date filed with the SEC: September 27, 1999
Items Included: Item 5 - Other Events
Item 7 - Exhibits
-62-
<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: November 12, 1999 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: November 12, 1999 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-63-
<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 September 30, 1999 and for the nine
months ended September 30, 1999, 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 September 30, 1999 and for the nine
months ended September 30, 1999, 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 September 30, 1999 and for the nine
months ended September 30, 1999, 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 September 30, 1999 and for the nine
months ended September 30, 1999, 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 September 30, 1999 and for the nine
months ended September 30, 1999, 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 September 30, 1999 and for the nine
months ended September 30, 1999, 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 September 30, 1999 and for the nine
months ended September 30, 1999, filed herewith.
All other exhibits are omitted as inapplicable.
-64-
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000860745
<NAME> GEODYNE ENERGY INCOME LTD PSHIP III-A
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 326,765
<SECURITIES> 0
<RECEIVABLES> 402,205
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 728,970
<PP&E> 17,217,236
<DEPRECIATION> 15,331,529
<TOTAL-ASSETS> 2,881,209
<CURRENT-LIABILITIES> 60,910
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,743,454
<TOTAL-LIABILITY-AND-EQUITY> 2,881,209
<SALES> 1,528,277
<TOTAL-REVENUES> 1,535,652
<CGS> 0
<TOTAL-COSTS> 998,436
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 537,216
<INCOME-TAX> 0
<INCOME-CONTINUING> 537,216
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 537,216
<EPS-BASIC> 1.88
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000863835
<NAME> GEODYNE ENERGY INCOME LTD PSHIP III-B
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 178,239
<SECURITIES> 0
<RECEIVABLES> 237,059
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 415,298
<PP&E> 9,988,500
<DEPRECIATION> 8,926,391
<TOTAL-ASSETS> 1,670,717
<CURRENT-LIABILITIES> 37,623
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,591,658
<TOTAL-LIABILITY-AND-EQUITY> 1,670,717
<SALES> 880,919
<TOTAL-REVENUES> 884,396
<CGS> 0
<TOTAL-COSTS> 571,485
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 312,911
<INCOME-TAX> 0
<INCOME-CONTINUING> 312,911
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 312,911
<EPS-BASIC> 1.74
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000863837
<NAME> GEODYNE ENERGY INCOME LTD PSHIP III-C
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 393,156
<SECURITIES> 0
<RECEIVABLES> 482,445
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 875,601
<PP&E> 20,667,910
<DEPRECIATION> 18,233,103
<TOTAL-ASSETS> 3,381,257
<CURRENT-LIABILITIES> 61,883
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 3,167,703
<TOTAL-LIABILITY-AND-EQUITY> 3,381,257
<SALES> 1,758,244
<TOTAL-REVENUES> 1,767,677
<CGS> 0
<TOTAL-COSTS> 1,060,177
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 707,500
<INCOME-TAX> 0
<INCOME-CONTINUING> 707,500
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 707,500
<EPS-BASIC> 2.69
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000870229
<NAME> GEODYNE ENERGY INCOME LTD PSHIP III-D
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 260,902
<SECURITIES> 0
<RECEIVABLES> 381,737
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 642,639
<PP&E> 12,502,170
<DEPRECIATION> 11,464,538
<TOTAL-ASSETS> 1,689,733
<CURRENT-LIABILITIES> 48,143
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,458,951
<TOTAL-LIABILITY-AND-EQUITY> 1,689,733
<SALES> 1,410,133
<TOTAL-REVENUES> 1,415,508
<CGS> 0
<TOTAL-COSTS> 857,959
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
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