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 June 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
June 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 241,168 $ 212,695
Accounts receivable:
Oil and gas sales 346,277 282,108
---------- ----------
Total current assets $ 587,445 $ 494,803
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,989,376 2,222,673
DEFERRED CHARGE 266,532 266,532
---------- ----------
$2,843,353 $2,984,008
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 31,917 $ 62,011
Gas imbalance payable 30,903 30,903
---------- ----------
Total current liabilities $ 62,820 $ 92,914
ACCRUED LIABILITY $ 76,845 $ 76,845
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 194,945) ($ 197,325)
Limited Partners, issued and
outstanding, 263,976 units 2,898,633 3,011,574
---------- ----------
Total Partners' capital $2,703,688 $2,814,249
---------- ----------
$2,843,353 $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 JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Oil and gas sales $513,083 $528,972
Interest income 1,863 4,634
Gain on sale of oil and gas
properties 883 11,927
-------- --------
$515,829 $545,533
COSTS AND EXPENSES:
Lease operating $ 77,313 $131,298
Production tax 38,166 44,517
Depreciation, depletion, and
amortization of oil and gas
properties 111,617 127,805
General and administrative
(Note 2) 73,129 73,302
-------- --------
$300,225 $376,922
-------- --------
NET INCOME $215,604 $168,611
======== ========
GENERAL PARTNER - NET INCOME $ 15,152 $ 13,311
======== ========
LIMITED PARTNERS - NET INCOME $200,452 $155,300
======== ========
NET INCOME per unit $ .76 $ .59
======== ========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ----------
REVENUES:
Oil and gas sales $933,779 $1,145,173
Interest income 3,848 10,597
Gain on sale of oil and gas
properties 883 20,041
-------- ----------
$938,510 $1,175,811
COSTS AND EXPENSES:
Lease operating $200,551 $ 210,655
Production tax 66,426 88,936
Depreciation, depletion, and
amortization of oil and gas
properties 232,539 271,374
General and administrative
(Note 2) 166,185 164,433
-------- ----------
$665,701 $ 735,398
-------- ----------
NET INCOME $272,809 $ 440,413
======== ==========
GENERAL PARTNER - NET INCOME $ 22,750 $ 32,346
======== ==========
LIMITED PARTNERS - NET INCOME $250,059 $ 408,067
======== ==========
NET INCOME per unit $ .95 $ 1.55
======== ==========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $272,809 $ 440,413
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 232,539 271,374
Gain on sale of oil and gas
properties ( 883) ( 20,041)
(Increase) decrease in accounts
receivable - oil and gas sales ( 64,169) 176,776
Decrease in accounts receivable -
other - 308
Decrease in accounts payable ( 30,094) ( 6,265)
-------- ----------
Net cash provided by operating
activities $410,202 $ 862,565
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 8,914) ($ 12,009)
Proceeds from sale of oil and
gas properties 10,555 21,802
-------- ----------
Net cash provided by investing
activities $ 1,641 $ 9,793
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($383,370) ($1,064,568)
-------- ----------
Net cash used by financing activities ($383,370) ($1,064,568)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 28,473 ($ 192,210)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 212,695 522,371
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $241,168 $ 330,161
======== ==========
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
June 30, December 31,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 121,121 $ 117,355
Accounts receivable:
Oil and gas sales 190,140 164,818
---------- ----------
Total current assets $ 311,261 $ 282,173
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,124,178 1,242,380
DEFERRED CHARGE 193,310 193,310
---------- ----------
$1,628,749 $1,717,863
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 19,587 $ 21,658
Gas imbalance payable 18,422 18,422
---------- ----------
Total current liabilities $ 38,009 $ 40,080
ACCRUED LIABILITY $ 41,436 $ 41,436
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 82,088) ($ 85,016)
Limited Partners, issued and
outstanding, 138,336 units 1,631,392 1,721,363
---------- ----------
Total Partners' capital $1,549,304 $1,636,347
---------- ----------
$1,628,749 $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 JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Oil and gas sales $278,640 $304,200
Interest income 837 2,437
Gain on sale of oil and gas
properties 372 -
-------- --------
$279,849 $306,637
COSTS AND EXPENSES:
Lease operating $ 47,177 $ 87,537
Production tax 19,223 25,488
Depreciation, depletion, and
amortization of oil and gas
properties 58,392 75,547
General and administrative
(Note 2) 38,359 38,360
-------- --------
$163,151 $226,932
-------- --------
NET INCOME $116,698 $ 79,705
======== ========
GENERAL PARTNER - NET INCOME $ 25,554 $ 22,167
======== ========
LIMITED PARTNERS - NET INCOME $ 91,144 $ 57,538
======== ========
NET INCOME per unit $ .66 $ .42
======== ========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
REVENUES:
Oil and gas sales $500,841 $690,483
Interest income 1,825 5,890
Gain on sale of oil and
gas properties 372 815
-------- --------
$503,038 $697,188
COSTS AND EXPENSES:
Lease operating $132,130 $130,947
Production tax 33,547 53,738
Depreciation, depletion, and
amortization of oil and gas
properties 119,091 163,207
General and administrative
(Note 2) 87,178 86,134
-------- --------
$371,946 $434,026
-------- --------
NET INCOME $131,092 $263,162
======== ========
GENERAL PARTNER - NET INCOME $ 36,063 $ 61,440
======== ========
LIMITED PARTNERS - NET INCOME $ 95,029 $201,722
======== ========
NET INCOME per unit $ .69 $ 1.46
======== ========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $131,092 $263,162
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 119,091 163,207
Gain on sale of oil and gas
properties ( 372) ( 815)
(Increase) decrease in accounts
receivable - oil and gas sales ( 25,322) 103,082
Decrease in accounts receivable -
other - 130
Increase (decrease) in accounts
payable ( 2,071) 341
-------- --------
Net cash provided by operating
activities $222,418 $529,107
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 1,029) ($ 13,772)
Proceeds from sale of oil and
gas properties 512 815
-------- --------
Net cash used by investing
activities ($ 517) ($ 12,957)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($218,135) ($673,870)
-------- --------
Net cash used by financing activities ($218,135) ($673,870)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 3,766 ($157,720)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 117,355 305,288
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $121,121 $147,568
======== ========
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
June 30, December 31,
1999 1998
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 311,346 $ 340,720
Accounts receivable:
Oil and gas sales 401,992 380,975
---------- ----------
Total current assets $ 713,338 $ 721,695
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,554,228 2,779,845
DEFERRED CHARGE 70,849 70,849
---------- ----------
$3,338,415 $3,572,389
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 36,961 $ 42,712
Gas imbalance payable 25,479 25,479
---------- ----------
Total current liabilities $ 62,440 $ 68,191
ACCRUED LIABILITY $ 151,671 $ 151,671
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 180,202) ($ 179,285)
Limited Partners, issued and
outstanding, 244,536 units 3,304,506 3,531,812
---------- ----------
Total Partners' capital $3,124,304 $3,352,527
---------- ----------
$3,338,415 $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 JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- --------
REVENUES:
Oil and gas sales $587,401 $553,291
Interest income 2,630 5,201
Gain on sale of oil and gas
properties 524 238,632
-------- --------
$590,555 $797,124
COSTS AND EXPENSES:
Lease operating $ 95,551 $134,020
Production tax 37,872 41,763
Depreciation, depletion, and
amortization of oil and gas
properties 120,329 144,719
General and administrative
(Note 2) 68,360 68,021
-------- --------
$322,112 $388,523
-------- --------
NET INCOME $268,443 $408,601
======== ========
GENERAL PARTNER - NET INCOME $ 18,104 $ 25,959
======== ========
LIMITED PARTNERS - NET INCOME $250,339 $382,642
======== ========
NET INCOME per unit $ 1.02 $ 1.57
======== ========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $1,057,165 $1,234,156
Interest income 5,505 10,949
Gain on sale of oil and gas
properties 524 405,333
---------- ----------
$1,063,194 $1,650,438
COSTS AND EXPENSES:
Lease operating $ 221,945 $ 240,709
Production tax 71,019 88,703
Depreciation, depletion, and
amortization of oil and gas
properties 249,948 282,806
General and administrative
(Note 2) 154,580 152,453
---------- ----------
$ 697,492 $ 764,671
---------- ----------
NET INCOME $ 365,702 $ 885,767
========== ==========
GENERAL PARTNER - NET INCOME $ 28,008 $ 55,053
========== ==========
LIMITED PARTNERS - NET INCOME $ 337,694 $ 830,714
========== ==========
NET INCOME per unit $ 1.38 $ 3.40
========== ==========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $365,702 $ 885,767
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 249,948 282,806
Gain on sale of oil and gas
properties ( 524) ( 405,333)
(Increase) decrease in accounts
receivable - oil and gas sales ( 21,017) 124,101
Decrease in accounts receivable -
other - 54
Decrease in accounts payable ( 5,751) ( 8,917)
-------- ----------
Net cash provided by operating
activities $588,358 $ 878,478
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 24,331) ($ 114,444)
Proceeds from sale of oil and
gas properties 524 443,992
-------- ----------
Net cash provided (used) by
investing activities ($ 23,807) $ 329,548
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($593,925) ($1,214,432)
-------- ----------
Net cash used by financing activities ($593,925) ($1,214,432)
-------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 29,374) ($ 6,406)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 340,720 540,911
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $311,346 $ 534,505
======== ==========
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
June 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 197,832 $ 172,776
Accounts receivable:
Oil and gas sales 321,010 268,703
---------- ----------
Total current assets $ 518,842 $ 441,479
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,103,461 1,236,882
DEFERRED CHARGE 9,462 9,462
---------- ----------
$1,631,765 $1,687,823
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 48,597 $ 55,996
Gas imbalance payable 4,454 4,454
---------- ----------
Total current liabilities $ 53,051 $ 60,450
ACCRUED LIABILITY $ 182,639 $ 182,639
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 71,850) ($ 73,501)
Limited Partners, issued and
outstanding, 131,008 units 1,467,925 1,518,235
---------- ----------
Total Partners' capital $1,396,075 $1,444,734
---------- ----------
$1,631,765 $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 JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Oil and gas sales $473,492 $434,401
Interest income 1,529 1,973
Gain on sale of oil and
gas properties - 34,618
-------- --------
$475,021 $470,992
COSTS AND EXPENSES:
Lease operating $116,538 $130,236
Production tax 32,160 30,165
Depreciation, depletion, and
amortization of oil and gas
properties 72,033 80,961
General and administrative
(Note 2) 37,173 36,314
-------- --------
$257,904 $277,676
-------- --------
NET INCOME $217,117 $193,316
======== ========
GENERAL PARTNER - NET INCOME $ 13,661 $ 12,806
======== ========
LIMITED PARTNERS - NET INCOME $203,456 $180,510
======== ========
NET INCOME per unit $ 1.56 $ 1.38
======== ========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Oil and gas sales $866,886 $912,164
Interest income 3,133 4,770
Gain on sale of oil and
gas properties - 58,772
-------- --------
$870,019 $975,706
COSTS AND EXPENSES:
Lease operating $283,750 $278,473
Production tax 61,066 59,696
Depreciation, depletion, and
amortization of oil and gas
properties 150,137 157,568
General and administrative
(Note 2) 83,972 82,093
-------- --------
$578,925 $577,830
-------- --------
NET INCOME $291,094 $397,876
======== ========
GENERAL PARTNER - NET INCOME $ 20,404 $ 25,958
======== ========
LIMITED PARTNERS - NET INCOME $270,690 $371,918
======== ========
NET INCOME per unit $ 2.07 $ 2.84
======== ========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $291,094 $397,876
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 150,137 157,568
Gain on sale of oil and gas
properties - ( 58,772)
(Increase) decrease in accounts
receivable - oil and gas sales ( 52,307) 54,223
Decrease in accounts payable ( 7,399) ( 49,012)
-------- --------
Net cash provided by operating
activities $381,525 $501,883
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 16,716) ($ 58,992)
Proceeds from sale of oil and
gas properties - 62,771
-------- --------
Net cash provided (used) by
investing activities ($ 16,716) $ 3,779
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($339,753) ($568,405)
-------- --------
Net cash used by financing activities ($339,753) ($568,405)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 25,056 ($ 62,743)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 172,776 298,964
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $197,832 $236,221
======== ========
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
June 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 512,204 $ 483,197
Accounts receivable:
Oil and gas sales 997,694 820,078
---------- ----------
Total current assets $1,509,898 $1,303,275
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,985,489 3,190,480
DEFERRED CHARGE 127,657 127,657
---------- ----------
$4,623,044 $4,621,412
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 257,512 $ 302,889
Gas imbalance payable 178,518 178,518
---------- ----------
Total current liabilities $ 436,030 $ 481,407
ACCRUED LIABILITY $ 298,486 $ 298,486
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 266,683) ($ 275,783)
Limited Partners, issued and
outstanding, 418,266 units 4,155,211 4,117,302
---------- ----------
Total Partners' capital $3,888,528 $3,841,519
---------- ----------
$4,623,044 $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 JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $1,510,547 $1,848,422
Interest income 3,330 11,826
---------- ----------
$1,513,877 $1,860,248
COSTS AND EXPENSES:
Lease operating $ 663,632 $ 787,494
Production tax 105,227 136,632
Depreciation, depletion, and
amortization of oil and gas
properties 144,100 308,628
General and administrative
(Note 2) 120,050 115,908
---------- ----------
$1,033,009 $1,348,662
---------- ----------
NET INCOME $ 480,868 $ 511,586
========== ==========
GENERAL PARTNER - NET
INCOME $ 29,640 $ 37,333
========== ==========
LIMITED PARTNERS - NET
INCOME $ 451,228 $ 474,253
========== ==========
NET INCOME per unit $ 1.08 $ 1.14
========== ==========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
REVENUES:
Oil and gas sales $2,682,040 $3,621,740
Interest income 7,952 24,028
Gain on sale of oil and
gas properties - 37,161
---------- ----------
$2,689,992 $3,682,929
COSTS AND EXPENSES:
Lease operating $1,581,850 $1,520,705
Production tax 180,504 250,863
Depreciation, depletion, and
amortization of oil and gas
properties 293,122 604,646
General and administrative
(Note 2) 267,952 267,045
---------- ----------
$2,323,428 $2,643,259
---------- ----------
NET INCOME $ 366,564 $1,039,670
========== ==========
GENERAL PARTNER - NET
INCOME $ 29,655 $ 74,968
========== ==========
LIMITED PARTNERS - NET
INCOME $ 336,909 $ 964,702
========== ==========
NET INCOME per unit $ .81 $ 2.31
========== ==========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $366,564 $1,039,670
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 293,122 604,646
Gain on sale of oil and gas
properties - ( 37,161)
(Increase) decrease in accounts
receivable - oil and gas sales ( 177,616) 148,688
Decrease in accounts payable ( 45,377) ( 275,998)
-------- ----------
Net cash provided by operating
activities $436,693 $1,479,845
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 83,131) ($ 2,013)
Proceeds from sale of oil and
gas properties - 70,783
-------- ----------
Net cash provided (used) by
investing activities ($ 83,131) $ 68,770
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($319,555) ($1,687,867)
-------- ----------
Net cash used by financing activities ($319,555) ($1,687,867)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 29,007 ($ 139,252)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 483,197 1,114,574
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $512,204 $ 975,322
======== ==========
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
June 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 157,341 $ 316,761
Accounts receivable:
Oil and gas sales 336,506 279,590
Other - 9,631
---------- ----------
Total current assets $ 493,847 $ 605,982
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,663,299 2,848,735
DEFERRED CHARGE 79,097 79,097
---------- ----------
$3,236,243 $3,533,814
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 83,304 $ 133,841
Gas imbalance payable 123,641 123,641
---------- ----------
Total current liabilities $ 206,945 $ 257,482
ACCRUED LIABILITY $ 171,735 $ 171,735
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 161,022) ($ 164,221)
Limited Partners, issued and
outstanding, 221,484 units 3,018,585 3,268,818
---------- ----------
Total Partners' capital $2,857,563 $3,104,597
---------- ----------
$3,236,243 $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 JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Oil and gas sales $484,427 $570,778
Interest income 1,405 5,604
Gain on sale of oil and
gas properties 136 -
-------- --------
$485,968 $576,382
COSTS AND EXPENSES:
Lease operating $278,383 $321,279
Production tax 24,000 48,942
Depreciation, depletion, and
amortization of oil and gas
properties 123,214 156,742
General and administrative
(Note 2) 62,368 61,324
-------- --------
$487,965 $588,287
-------- --------
NET LOSS ($ 1,997) ($ 11,905)
======== ========
GENERAL PARTNER - NET
INCOME $ 4,759 $ 5,394
======== ========
LIMITED PARTNERS - NET LOSS ($ 6,756) ($ 17,299)
======== ========
NET LOSS per unit ($ .03) ($ .08)
======== ========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- ----------
REVENUES:
Oil and gas sales $923,024 $1,235,009
Interest income 4,562 11,810
Gain (loss) on sale of oil
and gas properties ( 160) 28,061
-------- ----------
$927,426 $1,274,880
COSTS AND EXPENSES:
Lease operating $476,354 $ 568,306
Production tax 43,781 91,395
Depreciation, depletion, and
amortization of oil and gas
properties 260,571 303,943
General and administrative
(Note 2) 140,444 137,777
-------- ----------
$921,150 $1,101,421
-------- ----------
NET INCOME $ 6,276 $ 173,459
======== ==========
GENERAL PARTNER - NET
INCOME $ 10,509 $ 20,240
======== ==========
LIMITED PARTNERS - NET
INCOME (LOSS) ($ 4,233) $ 153,219
======== ==========
NET INCOME (LOSS) per unit ($ .02) $ .69
======== ==========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 6,276 $173,459
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 260,571 303,943
(Gain) loss on sale of oil and
gas properties 160 ( 28,061)
(Increase) decrease in accounts
receivable - oil and gas sales ( 56,916) 158,726
Decrease in accounts receivable -
other 9,631 -
Decrease in accounts payable ( 50,537) ( 18,915)
-------- --------
Net cash provided by operating
activities $169,185 $589,152
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 75,295) ($ 9)
Proceeds from sale of oil and
gas properties - 57,409
-------- --------
Net cash provided (used) by
investing activities ($ 75,295) $ 57,400
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($253,310) ($811,718)
-------- --------
Net cash used by financing activities ($253,310) ($811,718)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($159,420) ($165,166)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 316,761 541,382
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $157,341 $376,216
======== ========
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
June 30, December 31,
1999 1998
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 103,103 $ 169,558
Accounts receivable:
Oil and gas sales 202,645 163,801
Other - 6,369
---------- ----------
Total current assets $ 305,748 $ 339,728
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,308,022 1,427,362
DEFERRED CHARGE 50,380 50,380
---------- ----------
$1,664,150 $1,817,470
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 54,563 $ 73,835
Gas imbalance payable 60,315 60,315
---------- ----------
Total current liabilities $ 114,878 $ 134,150
ACCRUED LIABILITY $ 111,221 $ 111,221
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 98,381) ($ 99,974)
Limited Partners, issued and
outstanding, 121,925 units 1,536,432 1,672,073
---------- ----------
Total Partners' capital $1,438,051 $1,572,099
---------- ----------
$1,664,150 $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 JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Oil and gas sales $297,533 $349,671
Interest income 733 3,008
Gain on sale of oil and
gas properties 151 1,415
-------- --------
$298,417 $354,094
COSTS AND EXPENSES:
Lease operating $183,236 $196,420
Production tax 14,333 27,760
Depreciation, depletion, and
amortization of oil and gas
properties 74,050 96,515
General and administrative
(Note 2) 34,445 33,773
-------- --------
$306,064 $354,468
-------- --------
NET LOSS ($ 7,647) ($ 374)
======== ========
GENERAL PARTNER - NET INCOME $ 2,543 $ 3,691
======== ========
LIMITED PARTNERS - NET LOSS ($ 10,190) ($ 4,065)
======== ========
NET LOSS per unit ($ .08) ($ .03)
======== ========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
-------- ---------
REVENUES:
Oil and gas sales $564,014 $745,490
Interest income 2,325 6,758
Gain (loss) on sale of oil
and gas properties ( 45) 23,189
-------- --------
$566,294 $775,437
COSTS AND EXPENSES:
Lease operating $325,620 $361,084
Production tax 26,402 52,305
Depreciation, depletion, and
amortization of oil and gas
properties 157,296 187,342
General and administrative
(Note 2) 77,466 75,876
-------- --------
$586,784 $676,607
-------- --------
NET INCOME (LOSS) ($ 20,490) $ 98,830
======== ========
GENERAL PARTNER - NET INCOME $ 5,151 $ 12,097
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 25,641) $ 86,733
======== ========
NET INCOME (LOSS) per unit ($ .21) $ .71
======== ========
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 SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
1999 1998
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 20,490) $ 98,830
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 157,296 187,342
(Gain) loss on sale of oil and
gas properties 45 ( 23,189)
(Increase) decrease in accounts
receivable - oil and gas sales ( 38,844) 85,029
Decrease in accounts receivable -
General Partner - 13,140
Decrease in accounts receivable -
other 6,369 -
Decrease in accounts payable ( 19,272) ( 13,190)
-------- --------
Net cash provided by operating
activities $ 85,104 $347,962
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 38,001) ($ 7,543)
Proceeds from sale of oil and
gas properties - 33,818
-------- --------
Net cash provided (used) by
investing activities ($ 38,001) $ 26,275
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($113,558) ($521,676)
-------- --------
Net cash used by financing activities ($113,558) ($521,676)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 66,455) ($147,439)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 169,558 351,163
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $103,103 $203,724
======== ========
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
JUNE 30, 1999
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1999, statements of operations for the
three and six months ended June 30, 1999 and 1998, and statements of cash
flows for the six months ended June 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 June 30, 1999, the results of operations for the
three and six months ended June 30, 1999 and 1998, and the cash flows for
the six months ended June 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 June 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 operations, including interest incurred to finance the
-30-
<PAGE>
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 June 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 $3,661 $ 69,468
III-B 1,954 36,405
III-C 4,007 64,353
III-D 2,697 34,476
III-E 9,980 110,070
III-F 4,084 58,284
III-G 2,360 32,085
-31-
<PAGE>
During the six months ended June 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 $27,249 $138,936
III-B 14,368 72,810
III-C 25,874 128,706
III-D 15,020 68,952
III-E 47,812 220,140
III-F 23,876 116,568
III-G 13,296 64,170
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 June 30, 1999 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
During the six months ended June 30, 1999, capital expenditures incurred
by the III-E, III-F, and III-G Partnerships totaled $88,131, $75,295, and
$38,001, 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. As of the date of this Quarterly Report, the General Partner intends
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 were recently at or near their
lowest level in the past decade due primarily to the global surplus of
crude oil. However, as of the date of this Quarterly Report oil prices
have 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 JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Oil and gas sales $513,083 $528,972
Oil and gas production expenses $115,479 $175,815
Barrels produced 8,992 9,156
Mcf produced 173,837 186,967
Average price/Bbl $ 15.04 $ 12.26
Average price/Mcf $ 2.17 $ 2.23
As shown in the table above, total oil and gas sales decreased $15,889
(3.0%) for the three months ended June 30, 1999 as compared to the three
months ended June 30, 1998. Of this decrease, approximately $2,000 and
$29,000, respectively, were related to decreases in volumes of oil and gas
sold and approximately $10,000 was related to a decrease in the average
price of gas sold. These decreases were partially offset by an increase of
approximately $25,000 related to an increase in the average price of oil
sold. Volumes of oil and gas sold decreased 164 barrels and 13,130 Mcf,
respectively, for the three months ended June 30, 1999 as compared to the
three months ended June 30, 1998. Average oil prices increased to $15.04
per barrel for the three months ended June 30, 1999 from $12.26 per barrel
for the three months ended June 30, 1998. Average gas prices decreased to
$2.17 per Mcf for the three months ended June 30, 1999 from $2.23 per Mcf
for the three months ended June 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $60,336 (34.3%) for the three months ended
June 30, 1999 as compared to the three months ended June 30, 1998. This
decrease was primarily due to (i) positive prior period ad valorem tax
adjustments made by the operator on several wells during the three months
ended June 30, 1998, (ii) workover expenses incurred on two significant
wells during the three months ended June 30, 1998 in order to improve the
recovery of reserves, and (iii) positive prior period adjustments of lease
operating expenses made by the operator on several wells during the three
months ended June 30, 1998. As a percentage of oil and gas sales, these
expenses decreased to 22.5% for the three months ended June 30, 1999 from
33.2% for the three months ended June 30, 1998. This percentage decrease
was primarily due to the dollar decrease in oil and gas production
expenses.
-36-
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $16,188 (12.7%) for the three months ended June 30, 1999 as
compared to the three months ended June 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 gas sales, this expense
decreased to 21.8% for the three months ended June 30, 1999 from 24.2% for
the three months ended June 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
three months ended June 30, 1999 as compared to the three months ended
June 30, 1998. As a percentage of oil and gas sales, these expenses
increased to 14.3% for the three months ended June 30, 1999 from 13.9% for
the three months ended June 30, 1998.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- ----------
Oil and gas sales $933,779 $1,145,173
Oil and gas production expenses $266,977 $ 299,591
Barrels produced 18,247 19,117
Mcf produced 365,087 398,938
Average price/Bbl $ 12.93 $ 13.46
Average price/Mcf $ 1.91 $ 2.23
As shown in the table above, total oil and gas sales decreased $211,394
(18.5%) for the six months ended June 30, 1999 as compared to the six
months ended June 30, 1998. Of this decrease, approximately $115,000 was
related to a decrease in the average price of gas sold and approximately
$75,000 was related to a decrease in volumes of gas sold. Volumes of oil
and gas sold decreased 870 barrels and 33,851 Mcf, respectively, for the
six months ended June 30, 1999 as compared to the six months ended June
30, 1998. Average oil and gas prices decreased to $12.93 per barrel and
$1.91 per Mcf, respectively, for the six months ended June 30, 1999 from
$13.46 per barrel and $2.23 per Mcf, respectively, for the six months
ended June 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $32,614 (10.9%) for the six months ended June
30, 1999 as compared to the six months ended June 30, 1998. This decrease
was primarily due to (i) a decrease in production taxes associated with
-37-
<PAGE>
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. As
a percentage of oil and gas sales, these expenses increased to 28.6% for
the six months ended June 30, 1999 from 26.2% for the six months ended
June 30, 1998. This percentage increase was primarily due to the decreases
in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $38,835 (14.3%) for the six months ended June 30, 1999 as
compared to the six months ended June 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 gas sales, this expense
increased to 24.9% for the six months ended June 30, 1999 from 23.7% for
the six months ended June 30, 1998.
General and administrative expenses increased $1,752 (1.1%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of oil and gas sales, these expenses increased to
17.8% for the six months ended June 30, 1999 from 14.4% for the six months
ended June 30, 1998. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
1999 totaling $25,529,701 or 96.71% of the Limited Partners' capital
contributions.
III-B PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Oil and gas sales $278,640 $304,200
Oil and gas production expenses $ 66,400 $113,025
Barrels produced 7,565 8,637
Mcf produced 76,259 91,166
Average price/Bbl $ 15.62 $ 12.68
Average price/Mcf $ 2.10 $ 2.14
As shown in the table above, total oil and gas sales decreased $25,560
(8.4%) for the three months ended June 30, 1999 as compared to the three
months ended June 30, 1998. Of this decrease, approximately $14,000 and
$32,000, respectively, were related to decreases in volumes of oil and gas
sold. These decreases were partially offset by an increase of
approximately $22,000 related to an increase in
-38-
<PAGE>
the average price of oil sold. Volumes of oil and gas sold decreased 1,072
barrels and 14,907 Mcf, respectively, for the three months ended June 30,
1999 as compared to the three months ended June 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) normal
declines in production, (ii) receipt of a reduced percentage of sales on
one significant well during the three months ended June 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 $15.62 per barrel for the three months ended June 30, 1999
from $12.68 per barrel for the three months ended June 30, 1998. Average
gas prices decreased to $2.10 per Mcf for the three months ended June 30,
1999 from $2.14 per Mcf for the three months ended June 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $46,625 (41.3%) for the three months ended
June 30, 1999 as compared to the three months ended June 30, 1998. This
decrease was primarily due to (i) a decrease in lease operating expenses
associated with the decreases in volumes of oil and gas sold, (ii)
workover expenses incurred on several wells during the three months ended
June 30, 1998 in order to improve the recovery of reserves, and (iii)
positive prior period ad valorem tax adjustments made by the operator on
several wells during the three months ended June 30, 1998. As a percentage
of oil and gas sales, these expenses decreased to 23.8% for the three
months ended June 30, 1999 from 37.2% for the three months ended June 30,
1998. This percentage decrease was primarily due to the dollar decrease in
oil and gas production expenses and the increase in the average price of
oil sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $17,155 (22.7%) for the three months ended June 30, 1999 as
compared to the three months ended June 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 gas sales, this expense
decreased to 21.0% for the three months ended June 30, 1999 from 24.8% for
the three months ended June 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
three months ended June 30, 1999 as compared to the three months ended
June 30, 1998. As a percentage of oil and gas sales, these expenses
increased to
-39-
<PAGE>
13.8% for the three months ended June 30, 1999 from 12.6% for the three
months ended June 30, 1998.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- --------
Oil and gas sales $500,841 $690,483
Oil and gas production expenses $165,677 $184,685
Barrels produced 15,526 18,645
Mcf produced 154,950 197,037
Average price/Bbl $ 13.40 $ 13.88
Average price/Mcf $ 1.89 $ 2.19
As shown in the table above, total oil and gas sales decreased $189,642
(27.5%) for the six months ended June 30, 1999 as compared to the six
months ended June 30, 1998. Of this decrease, approximately $47,000 was
related to a decrease in the average price of gas sold and approximately
$43,000 and $92,000, respectively, were related to decreases in volumes of
oil and gas sold. Volumes of oil and gas sold decreased 3,119 barrels and
42,087 Mcf, respectively, for the six months ended June 30, 1999 as
compared to the six months ended June 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) normal declines in
production, (ii) receipt of a reduced percentage of sales on one
significant well during the six months ended June 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 and gas prices
decreased to $13.40 per barrel and $1.89 per Mcf, respectively, for the
six months ended June 30, 1999 from $13.88 per barrel and $2.19 per Mcf,
respectively, for the six months ended June 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $19,008 (10.3%) for the six months ended June
30, 1999 as compared to the six months ended June 30, 1998. This decrease
was 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.
These decreases were partially offset by (i) workover expenses incurred on
one significant well during the six months ended June 30, 1999 in order to
improve the recovery of reserves and (ii) the refund of prior period lease
operating expenses by the operator on one significant well during the six
months ended June 30, 1998. As a percentage of oil and gas sales, these
expenses increased to 33.1% for the six months ended June 30, 1999
-40-
<PAGE>
from 26.7% for the six months ended June 30, 1998. This percentage
increase was primarily due to the 1999 workover expenses, the 1998 refund
of lease operating expenses, and the decreases in the average prices of
oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $44,116 (27.0%) for the six months ended June 30, 1999 as
compared to the six months ended June 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 gas sales, this expense
remained relatively constant at 23.8% for the six months ended June 30,
1999 and 23.6% for the six months ended June 30, 1998.
General and administrative expenses increased $1,044 (1.2%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of oil and gas sales, these expenses increased to
17.4% for the six months ended June 30, 1999 from 12.5% for the six months
ended June 30, 1998. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
1999 totaling $14,847,353 or 107.33% of Limited Partners' capital
contributions.
III-C PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Oil and gas sales $587,401 $553,291
Oil and gas production expenses $133,423 $175,783
Barrels produced 6,615 5,887
Mcf produced 243,439 278,152
Average price/Bbl $ 15.75 $ 13.01
Average price/Mcf $ 1.98 $ 1.71
As shown in the table above, total oil and gas sales increased $34,110
(6.2%) for the three months ended June 30, 1999 as compared to the three
months ended June 30, 1998. Of this increase, approximately $9,000 was
related to an increase in volumes of oil sold and approximately $18,000
and $66,000, respectively, were related to increases in the average prices
of oil and gas sold. These increases were partially offset by a decrease
of approximately $59,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 728 barrels, while volumes of gas sold
-41-
<PAGE>
decreased 34,713 Mcf for the three months ended June 30, 1999 as compared
to the three months ended June 30, 1998. The increase in volumes of oil
sold was primarily due to positive prior period volume adjustments made by
the purchasers on two significant wells during the three months ended June
30, 1999. The decrease in volumes of gas sold was primarily due to (i)
normal declines in production and (ii) a positive prior period volume
adjustment made by the purchaser on one significant well during the three
months ended June 30, 1998. Average oil and gas prices increased to $15.75
per barrel and $1.98 per Mcf, respectively, for the three months ended
June 30, 1999 from $13.01 per barrel and $1.71 per Mcf, respectively, for
the three months ended June 30, 1998.
The III-C Partnership sold certain oil and gas properties during the three
months ended June 30, 1999 and recognized a $524 gain on such sales.
Similar sales during the three months ended June 30, 1998 resulted in the
III-C Partnership recognizing similar gains totaling $238,632.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $42,360 (24.1%) for the three months ended
June 30, 1999 as compared to the three months ended June 30, 1998. This
decrease was primarily due to (i) a decrease in lease operating expenses
associated with the decrease in volumes of gas sold, (ii) a decrease in
repair and maintenance expenses on one significant well during the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998, and (iii) positive prior period ad valorem tax adjustments made by
the operator on several wells during the three months ended June 30, 1998.
As a percentage of oil and gas sales, these expenses decreased to 22.7%
for the three months ended June 30, 1999 from 31.8% for the three months
ended June 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 $24,390 (16.9%) for the three months ended June 30, 1999 as
compared to the three months ended June 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
20.5% for the three months ended June 30, 1999 from 26.2% for the three
months ended June 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.
-42-
<PAGE>
General and administrative expenses remained relatively constant for the
three months ended June 30, 1999 as compared to the three months ended
June 30, 1998. As a percentage of oil and gas sales, these expenses
decreased to 11.6% for the three months ended June 30, 1999 from 12.3% for
the three months ended June 30, 1998.
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
---------- ----------
Oil and gas sales $1,057,165 $1,234,156
Oil and gas production expenses $ 292,964 $ 329,412
Barrels produced 12,032 12,794
Mcf produced 515,920 535,813
Average price/Bbl $ 14.00 $ 14.55
Average price/Mcf $ 1.72 $ 1.96
As shown in the table above, total oil and gas sales decreased $176,991
(14.3%) for the six months ended June 30, 1999 as compared to the six
months ended June 30, 1998. Of this decrease, approximately $120,000 was
related to a decrease in the average price of gas sold and approximately
$39,000 was related to a decrease in volumes of gas sold. Volumes of oil
and gas sold decreased 762 barrels and 19,893 Mcf, respectively, for the
six months ended June 30, 1999 as compared to the six months ended June
30, 1998. Average oil and gas prices decreased to $14.00 per barrel and
$1.72 per Mcf, respectively, for the six months ended June 30, 1999 from
$14.55 per barrel and $1.96 per Mcf, respectively, for the six months
ended June 30, 1998.
The III-C Partnership sold certain oil and gas properties during the six
months ended June 30, 1999 and recognized a $524 gain on such sales.
Similar sales during the six months ended June 30, 1998 resulted in the
III-C Partnership recognizing similar gains totaling $405,333.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $36,448 (11.1%) for the six months ended June
30, 1999 as compared to the six months ended June 30, 1998. This decrease
was primarily due to (i) a decrease in production taxes associated with
the decrease in oil and gas sales, (ii) a decrease in lease operating
expenses associated with the decreases in volumes of oil and gas sold, and
(iii) positive prior period ad valorem tax adjustments made by the
operator on several wells during the six months ended June 30, 1998. As a
percentage of oil and gas sales, these expenses increased to
-43-
<PAGE>
27.7% for the six months ended June 30, 1999 from 26.7% for the six months
ended June 30, 1998. Depreciation, depletion, and amortization of oil and
gas properties decreased $32,858 (11.6%) for the six months ended June 30,
1999 as compared to the six months ended June 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) decreases in volumes of oil
and gas sold. As a percentage of oil and gas sales, this expense increased
to 23.6% for the six months ended June 30, 1999 from 22.9% for the six
months ended June 30, 1998.
General and administrative expenses increased $2,127 (1.4%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of oil and gas sales, these expenses increased to
14.6% for the six months ended June 30, 1999 from 12.4% for the six months
ended June 30, 1998. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
1999 totaling $17,784,795 or 72.73% of Limited Partners' capital
contributions.
III-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Oil and gas sales $473,492 $434,401
Oil and gas production expenses $148,698 $160,401
Barrels produced 10,238 8,409
Mcf produced 173,461 191,222
Average price/Bbl $ 14.12 $ 11.29
Average price/Mcf $ 1.90 $ 1.78
As shown in the table above, total oil and gas sales increased $39,091
(9.0%) for the three months ended June 30, 1999 as compared to the three
months ended June 30, 1998. Of this increase, approximately $29,000 and
$21,000, respectively, were related to increases in the average prices of
oil and gas sold and approximately $21,000 was related to an increase in
volumes of oil sold. These increases were partially offset by a decrease
of approximately $32,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 1,829 barrels, while volumes of gas sold
decreased 17,761 Mcf for the three months ended June 30, 1999 as compared
to the three months ended June 30, 1998. The increase in volumes of oil
sold
-44-
<PAGE>
was primarily due to (i) prior period volume adjustments made by the
purchaser on two significant wells during the three months ended June 30,
1999 and (ii) the sale of oil on several wells which had previously been
curtailed due to low oil prices. Average oil and gas prices increased to
$14.12 per barrel and $1.90 per Mcf, respectively, for the three months
ended June 30, 1999 from $11.29 per barrel and $1.78 per Mcf,
respectively, for the three months ended June 30, 1998.
The III-D Partnership sold certain oil and gas properties during the three
months ended June 30, 1998 and recognized a $34,618 gain on such sales. No
such sales occurred during the three months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $11,703 (7.3%) for the three months ended June
30, 1999 as compared to the three months ended June 30, 1998. As a
percentage of oil and gas sales, these expenses decreased to 31.4% for the
three months ended June 30, 1999 from 36.9% for the three months ended
June 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 $8,928 (11.0%) for the three months ended June 30, 1999 as
compared to the three months ended June 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) the decrease in volumes of 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
15.2% for the three months ended June 30, 1999 from 18.6% for the three
months ended June 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 increased $859 (2.4%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of oil and gas sales, these expenses decreased to
7.9% for the three months ended June 30, 1999 from 8.4% for the three
months ended June 30, 1998.
-45-
<PAGE>
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- --------
Oil and gas sales $866,886 $912,164
Oil and gas production expenses $344,816 $338,169
Barrels produced 19,716 20,292
Mcf produced 371,281 348,599
Average price/Bbl $ 11.90 $ 12.63
Average price/Mcf $ 1.70 $ 1.88
As shown in the table above, total oil and gas sales decreased $45,278
(5.0%) for the six months ended June 30, 1999 as compared to the six
months ended June 30, 1998. Of this decrease, approximately $14,000 and
$66,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $7,000 was related to a decrease in
volumes of oil sold. These decreases were partially offset by an increase
of approximately $42,000 related to an increase in volumes of gas sold.
Volumes of oil sold decreased 576 barrels, while volumes of gas sold
increased 22,682 Mcf for the six months ended June 30, 1999 as compared to
the six months ended June 30, 1998. Average oil and gas prices decreased
to $11.90 per barrel and $1.70 per Mcf, respectively, for the six months
ended June 30, 1999 from $12.63 per barrel and $1.88 per Mcf,
respectively, for the six months ended June 30, 1998.
The III-D Partnership sold certain oil and gas properties during the six
months ended June 30, 1998 and recognized a $58,772 gain on such sales. No
such sales occurred during the six months ended June 30, 1999.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $6,647 (2.0%) for the six months ended June
30, 1999 as compared to the six months ended June 30, 1998. This increase
was primarily due to a positive prior period adjustment of lease operating
expenses made by the operator on one significant well during the six
months ended June 30, 1999. As a percentage of oil and gas sales, these
expenses increased to 39.8% for the six months ended June 30, 1999 from
37.1% for the six months ended June 30, 1998. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold.
-46-
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $7,431 (4.7%) for the six months ended June 30, 1999 as compared
to the six months ended June 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, which
decrease was partially offset by the increase in volumes of 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 remained constant
at 17.3% for the six months ended June 30, 1999 and for the six months
ended June 30, 1998.
General and administrative expenses increased $1,879 (2.3%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of oil and gas sales, these expenses increased to
9.7% for the six months ended June 30, 1999 from 9.0% for the six months
ended June 30, 1998.
The Limited Partners have received cash distributions through June 30,
1999 totaling $8,850,669 or 67.56% of the Limited Partners' capital
contributions.
III-E PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
---------- ----------
Oil and gas sales $1,510,547 $1,848,422
Oil and gas production expenses $ 768,859 $ 924,126
Barrels produced 52,353 55,248
Mcf produced 406,383 608,497
Average price/Bbl $ 14.10 $ 11.07
Average price/Mcf $ 1.90 $ 2.03
As shown in the table above, total oil and gas sales decreased $337,875
(18.3%) for the three months ended June 30, 1999 as compared to the three
months ended June 30, 1998. Of this decrease, approximately $54,000 was
related to a decrease in the average price of gas sold and approximately
$32,000 and $411,000, respectively, were related to decreases in volumes
of oil and gas sold. These decreases were partially offset by an increase
of approximately $159,000 related to an increase in the average price of
oil sold. Volumes of oil and gas sold decreased 2,895 barrels and 202,114
Mcf, respectively, for the three months ended June 30, 1999 as compared to
the three months
-47-
<PAGE>
ended June 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 three months ended June 30, 1998 and
(ii) normal declines in production. Average oil prices increased to $14.10
per barrel for the three months ended June 30, 1999 from $11.07 per barrel
for the three months ended June 30, 1998. Average gas prices decreased to
$1.90 per Mcf for the three months ended June 30, 1999 from $2.03 per Mcf
for the three months ended June 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $155,267 (16.8%) for the three months ended
June 30, 1999 as compared to the three months ended June 30,1998. This
decrease was primarily due to (i) a decrease in lease operating expenses
associated with the decreases in volumes of oil and gas sold, (ii) a
decrease in production taxes associated with the decrease in oil and gas
sales, (iii) workover expenses incurred on one significant well during the
three months ended June 30, 1998, and (iv) positive prior period
adjustments of lease operating expenses made by the operator on two
significant wells during the three months ended June 30, 1998. As a
percentage of oil and gas sales, these expenses remained relatively
constant at 50.9% for the three months ended June 30, 1999 and 50.0% for
the three months ended June 30, 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $164,528 (53.3%) for the three months ended June 30, 1999 as
compared to the three months ended June 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) the 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 three months ended June 30, 1999 from 16.7% for the three months
ended June 30, 1998. This percentage decrease was primarily due to the
dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $4,142 (3.6%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of oil and gas sales, these expenses increased to
7.9% for the three months ended June 30, 1999 from 6.3% for the three
months ended June 30, 1998. This percentage increase was primarily due to
the decrease in oil and gas sales.
-48-
<PAGE>
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
---------------------------
1999 1998
---------- ----------
Oil and gas sales $2,682,040 $3,621,740
Oil and gas production expenses $1,762,354 $1,771,568
Barrels produced 107,741 119,944
Mcf produced 819,163 1,121,898
Average price/Bbl $ 11.59 $ 12.24
Average price/Mcf $ 1.75 $ 1.92
As shown in the table above, total oil and gas sales decreased $939,700
(25.9%) for the six months ended June 30, 1999 as compared to the six
months ended June 30, 1998. Of this decrease, approximately $70,000 and
$139,000, respectively, were related to decreases in the average prices of
oil and gas sold and approximately $149,000 and $581,000, respectively,
were related to decreases in the volumes of oil and gas sold. Volumes of
oil and gas sold decreased 12,203 barrels and 302,735 Mcf, respectively,
for the six months ended June 30, 1999 as compared to the six months ended
June 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 six months ended June 30,
1998 and (ii) normal declines in production. Average oil and gas prices
decreased to $11.59 per barrel and $1.75 per Mcf, respectively, for the
six months ended June 30, 1999 from $12.24 per barrel and $1.92 per Mcf,
respectively, for the six months ended June 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the six months ended
June 30, 1999 as compared to the six months ended June 30,1998. A decrease
primarily due to a decrease in production taxes associated with the
decrease in oil and gas sales was substantially offset by an increase in
lease operating expenses primarily due to a positive prior period
adjustment made by the operator on one significant well during the six
months ended June 30, 1999. As a percentage of oil and gas sales, these
expenses increased to 65.7% for the six months ended June 30, 1999 from
48.9% for the six months ended June 30, 1998. This percentage increase was
primarily due to the increase in lease operating expenses and the
decreases in the average prices of oil and gas sold.
-49-
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $311,524 (51.5%) for the six months ended June 30, 1999 as
compared to the six months ended June 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 the 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
10.9% for the six months ended June 30, 1999 from 16.7% for the six months
ended June 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
six months ended June 30, 1999 as compared to the six months ended June
30, 1998. As a percentage of oil and gas sales, these expenses increased
to 10.0% for the six months ended June 30, 1999 from 7.4% for the six
months ended June 30, 1998. This percentage increase was primarily due to
the decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
1999 totaling $30,520,016 or 72.97% of the Limited Partners' capital
contributions.
III-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Oil and gas sales $484,427 $570,778
Oil and gas production expenses $302,383 $370,221
Barrels produced 15,144 15,011
Mcf produced 150,735 234,242
Average price/Bbl $ 14.73 $ 12.14
Average price/Mcf $ 1.73 $ 1.66
As shown in the table above, total oil and gas sales decreased $86,351
(15.1%) for the three months ended June 30, 1999 as compared to the three
months ended June 30, 1998. Of this decrease, approximately $139,000 was
related to a decrease in volumes of gas sold, which decrease was partially
offset by increases of approximately $39,000 and $11,000, respectively,
related to increases in the average prices of oil and gas sold. Volumes of
oil sold increased 133 barrels, while volumes of gas sold decreased 83,507
Mcf
-50-
<PAGE>
for the three months ended June 30, 1999 as compared to the three months
ended June 30, 1998. The decrease in volumes of gas sold was primarily due
to (i) positive prior period volume adjustments made by the purchaser on
two significant wells during the three months ended June 30, 1998 and (ii)
normal declines in production. Average oil and gas prices increased to
$14.73 per barrel and $1.73 per Mcf, respectively, for the three months
ended June 30, 1999 from $12.14 per barrel and $1.66 per Mcf,
respectively, for the three months ended June 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $67,838 (18.3%) for the three months ended
June 30, 1999 as compared to the three months ended June 30, 1998. This
decrease was primarily due to (i) a decrease in production taxes
associated with the decrease in oil and gas sales, (ii) a decrease in ad
valorem taxes paid during the three months ended June 30, 1999, and (iii)
workover expenses incurred on two significant wells during the three
months ended June 30, 1998 in order to improve the recovery of reserves.
These decreases were partially offset by a positive prior period
adjustment of lease operating expenses on another significant well during
the three months ended June 30, 1999. As a percentage of oil and gas
sales, these expenses decreased to 62.4% for the three months ended June
30, 1999 from 64.9% for the three months ended June 30, 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $33,528 (21.4%) for the three months ended June 30, 1999 as
compared to the three months ended June 30, 1998. This decrease was
primarily due to the decrease in volumes of gas sold. As a percentage of
oil and gas sales, this expense decreased to 25.4% for the three months
ended June 30, 1999 from 27.5% for the three months ended June 30, 1998.
General and administrative expenses increased $1,044 (1.7%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of oil and gas sales, these expenses increased to
12.9% for the three months ended June 30, 1999 from 10.7% for the three
months ended June 30, 1998. This percentage increase was primarily due to
the decrease in oil and gas sales.
-51-
<PAGE>
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- ----------
Oil and gas sales $923,024 $1,235,009
Oil and gas production expenses $520,135 $ 659,701
Barrels produced 30,016 30,973
Mcf produced 330,830 443,012
Average price/Bbl $ 12.71 $ 13.70
Average price/Mcf $ 1.64 $ 1.83
As shown in the table above, total oil and gas sales decreased $311,985
(25.3%) for the six months ended June 30, 1999 as compared to the six
months ended June 30, 1998. Of this decrease, approximately $205,000 was
related to a decrease in volumes of gas sold and approximately $64,000 was
related to a decrease in the average price of gas sold. Volumes of oil and
gas sold decreased 957 barrels and 112,182 Mcf, respectively, for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. The decrease in volumes of gas sold was primarily due to (i)
positive prior period volume adjustments made by the purchaser on two
significant wells during the six months ended June 30, 1998, (ii) the
shutting-in of one significant well during the six months ended June 30,
1999 and (iii) normal declines in production. Average oil and gas prices
decreased to $12.71 per barrel and $1.64 per Mcf, respectively, for the
six months ended June 30, 1999 from $13.70 per barrel and $1.83 per Mcf,
respectively, for the six months ended June 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $139,566 (21.2%) for the six months ended June
30, 1999 as compared to the six months ended June 30, 1998. This decrease
was primarily due to (i) a decrease in lease operating expenses primarily
due to the reversal of a litigation accrual no longer deemed necessary by
management, (ii) workover expenses incurred on two significant wells
during the six months ended June 30, 1998 in order to improve the recovery
of reserves, and (iii) a decrease in production taxes associated with the
decrease in oil and gas sales. These decreases were partially offset by a
positive prior period adjustment of lease operating expenses on another
significant well during the six months ended June 30, 1999. As a
percentage of oil and gas sales, these expenses increased to 56.4% for the
six months ended June 30, 1999 from 53.4% for the six months ended June
30, 1998.
-52-
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $43,372 (14.3%) for the six months ended June 30, 1999 as
compared to the six months ended June 30, 1998. This decrease was
primarily due to the decrease in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 28.2% for the
six months ended June 30, 1999 from 24.6% for the six months ended June
30, 1998. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
General and administrative expenses increased $2,667 (1.9%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of oil and gas sales, these expenses increased to
15.2% for the six months ended June 30, 1999 from 11.2% for the six months
ended June 30, 1998. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
1999 totaling $11,375,904 or 51.36% of Limited Partners' capital
contributions.
III-G PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1999 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 1998.
Three Months Ended June 30,
---------------------------
1999 1998
-------- --------
Oil and gas sales $297,533 $349,671
Oil and gas production expenses $197,569 $224,180
Barrels produced 10,549 10,660
Mcf produced 80,960 128,428
Average price/Bbl $ 14.77 $ 12.17
Average price/Mcf $ 1.75 $ 1.71
As shown in the table above, total oil and gas sales decreased $52,138
(14.9%) for the three months ended June 30, 1999 as compared to the three
months ended June 30, 1998. Of this decrease, approximately $81,000 was
related to a decrease in volumes of gas sold, which decrease was partially
offset by an increase of approximately $27,000 related to an increase in
the average price of oil sold. Volumes of oil and gas sold decreased 111
barrels and 47,468 Mcf, respectively, for the three months ended June 30,
1999 as compared to the three months ended June 30, 1998. The decrease in
volumes of gas sold was primarily due to (i) positive prior period volume
adjustments made by the purchaser on two significant wells during the
three months ended June 30, 1998 and (ii) normal declines in production.
-53-
<PAGE>
Average oil and gas prices increased to $14.77 per barrel and $1.75 per
Mcf, respectively, for the three months ended June 30, 1999 from $12.17
per barrel and $1.71 per Mcf, respectively, for the three months ended
June 30, 1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $26,611 (11.9%) for the three months ended
June 30, 1999 as compared to the three months ended June 30, 1998. This
decrease was primarily due to (i) a decrease in production taxes
associated with the decrease in oil and gas sales, (ii) a decrease in ad
valorem taxes paid during the three months ended June 30, 1999, and (iii)
workover expenses incurred on two significant wells during the three
months ended June 30, 1998 in order to improve the recovery of reserves.
These decreases were partially offset by a positive prior period
adjustment of lease operating expenses on another significant well during
the three months ended June 30, 1999. As a percentage of oil and gas
sales, these expenses increased to 66.4% for the three months ended June
30, 1999 from 64.1% for the three months ended June 30, 1998.
Depreciation, depletion, and amortization of oil and gas properties
decreased $22,465 (23.3%) for the three months ended June 30, 1999 as
compared to the three months ended June 30, 1998. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense decreased to 24.9% for the
three months ended June 30, 1999 from 27.6% for the three months ended
June 30, 1998.
General and administrative expenses increased $672 (2.0%) for the three
months ended June 30, 1999 as compared to the three months ended June 30,
1998. As a percentage of oil and gas sales, these expenses increased to
11.6% for the three months ended June 30, 1999 from 9.7% for the three
months ended June 30, 1998. This percentage increase was primarily due to
the decrease in oil and gas sales.
-54-
<PAGE>
SIX MONTHS ENDED JUNE 30, 1999 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
1998.
Six Months Ended June 30,
-------------------------
1999 1998
-------- --------
Oil and gas sales $564,014 $745,490
Oil and gas production expenses $352,022 $413,389
Barrels produced 21,486 22,016
Mcf produced 177,504 241,343
Average price/Bbl $ 12.69 $ 13.66
Average price/Mcf $ 1.64 $ 1.84
As shown in the table above, total oil and gas sales decreased $181,476
(24.3%) for the six months ended June 30, 1999 as compared to the six
months ended June 30, 1998. Of this decrease, approximately $118,000 was
related to a decrease in volumes of gas sold and approximately $21,000 and
$36,000, respectively, were related to decreases in the average prices of
oil and gas sold. Volumes of oil and gas sold decreased 530 barrels and
63,839 Mcf, respectively, for the six months ended June 30, 1999 as
compared to the six months ended June 30, 1998. The decrease in volumes of
gas sold was primarily due to (i) positive prior period volume adjustments
made by the purchaser on two significant wells during the six months ended
June 30, 1998, (ii) the shutting-in of one significant well during the six
months ended June 30, 1999, and (iii) normal declines in production.
Average oil and gas prices decreased to $12.69 per barrel and $1.64 per
Mcf, respectively, for the six months ended June 30, 1999 from $13.66 per
barrel and $1.84 per Mcf, respectively, for the six months ended June 30,
1998.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $61,367 (14.8%) for the six months ended June
30, 1999 as compared to the six months ended June 30, 1998. This decrease
was primarily due to (i) a decrease in lease operating expenses primarily
due to the reversal of a litigation accrual no longer deemed necessary by
management, (ii) workover expenses incurred on two significant wells
during the six months ended June 30, 1998 in order to improve the recovery
of reserves, and (iii) a decrease in production taxes associated with the
decrease in oil and gas sales. These decreases were partially offset by a
positive prior period adjustment of lease operating expenses on another
significant well during the six months ended June 30, 1999. As a
percentage of oil and gas sales, these expenses increased to 62.4% for the
six months ended June 30, 1999 from 55.5% for the six months ended June
30, 1998. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
-55-
<PAGE>
Depreciation, depletion, and amortization of oil and gas properties
decreased $30,046 (16.0%) for the six months ended June 30, 1999 as
compared to the six months ended June 30, 1998. This decrease was
primarily due to the decreases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 27.9% for the
six months ended June 30, 1999 from 25.1% for the six months ended June
30, 1998. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
General and administrative expenses increased $1,590 (2.1%) for the six
months ended June 30, 1999 as compared to the six months ended June 30,
1998. As a percentage of oil and gas sales, these expenses increased to
13.7% for the six months ended June 30, 1999 from 10.2% for the six months
ended June 30, 1998. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
1999 totaling $5,957,287 or 48.86% 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.
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.
-56-
<PAGE>
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 is
addressing each of the three Y2K areas discussed above through a readiness
process that seeks to:
1. increase the awareness of the issue among key employees;
2. identify areas of potential risk;
3. assess the relative impact of these risks and Samson's ability to
manage them;and
4. remediate these 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 July 15, 1999, Samson is in the final
stages of implementation of a Y2K plan, as summarized below:
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.
-57-
<PAGE>
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. Substantially all of the Y2K upgrades have
been completed, with the remainder scheduled to be completed during the
3rd quarter of 1999. 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 generally Y2K compliant.
Additional patches or software upgrades will be applied no later than
September 30, 1999 to complete this process. The costs of all such risk
assessments and remediation are not expected to be 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.
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.
-58-
<PAGE>
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, the integrity of
telecommunication systems, and the readiness of commercial banks to
execute electronic fund transfers.
-59-
<PAGE>
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 perceives significant risk of Y2K
non-compliance that may have a material impact on it, and where the
relationship between Samson and a vendor, customer, or business partner
permits, joint testing may be undertaken during the remainder of 1999 to
further identify these risks.
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.
-60-
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-61-
<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
June 30, 1999 and for the six months ended June 30, 1999, filed
herewith.
27.2 Financial Data Schedule containing summary financial information
extracted from the III-B Partnership's financial statements as of
June 30, 1999 and for the six months ended June 30, 1999, filed
herewith.
27.3 Financial Data Schedule containing summary financial information
extracted from the III-C Partnership's financial statements as of
June 30, 1999 and for the six months ended June 30, 1999, filed
herewith.
27.4 Financial Data Schedule containing summary financial information
extracted from the III-D Partnership's financial statements as of
June 30, 1999 and for the six months ended June 30, 1999, filed
herewith.
27.5 Financial Data Schedule containing summary financial information
extracted from the III-E Partnership's financial statements as of
June 30, 1999 and for the six months ended June 30, 1999, filed
herewith.
27.6 Financial Data Schedule containing summary financial information
extracted from the III-F Partnership's financial statements as of
June 30, 1999 and for the six months ended June 30, 1999, filed
herewith.
27.7 Financial Data Schedule containing summary financial information
extracted from the III-G Partnership's financial statements as of
June 30, 1999 and for the six months ended June 30, 1999, filed
herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K.
None.
-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: August 12, 1999 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 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 June 30, 1999 and for the six months
ended June 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 June 30, 1999 and for the six months
ended June 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 June 30, 1999 and for the six months
ended June 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 June 30, 1999 and for the six months
ended June 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 June 30, 1999 and for the six months
ended June 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 June 30, 1999 and for the six months
ended June 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 June 30, 1999 and for the six months
ended June 30, 1999, filed herewith.
All other exhibits are omitted as inapplicable.
-64-
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000860745
<NAME> GEODYNE ENERGY INCOME LTD PARTNERSHIP III-A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 241,168
<SECURITIES> 0
<RECEIVABLES> 346,277
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 587,445
<PP&E> 17,223,871
<DEPRECIATION> 15,234,495
<TOTAL-ASSETS> 2,843,353
<CURRENT-LIABILITIES> 62,820
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,703,688
<TOTAL-LIABILITY-AND-EQUITY> 2,843,353
<SALES> 933,779
<TOTAL-REVENUES> 938,510
<CGS> 0
<TOTAL-COSTS> 665,701
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 272,809
<INCOME-TAX> 0
<INCOME-CONTINUING> 272,809
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 272,809
<EPS-BASIC> 0.95
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000863835
<NAME> GEODYNE ENERGY INCOME LTD PARTNERSHIP III-B
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 121,121
<SECURITIES> 0
<RECEIVABLES> 190,140
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 311,261
<PP&E> 9,986,739
<DEPRECIATION> 8,862,561
<TOTAL-ASSETS> 1,628,749
<CURRENT-LIABILITIES> 38,009
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,549,304
<TOTAL-LIABILITY-AND-EQUITY> 1,628,749
<SALES> 500,841
<TOTAL-REVENUES> 503,038
<CGS> 0
<TOTAL-COSTS> 371,946
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 131,092
<INCOME-TAX> 0
<INCOME-CONTINUING> 131,092
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 131,092
<EPS-BASIC> 0.69
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000863837
<NAME> GEODYNE ENERGY INCOME LTD PARTNERSHIP III-C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 311,346
<SECURITIES> 0
<RECEIVABLES> 401,992
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 713,338
<PP&E> 20,668,039
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