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, 1997
Commission File Number:
II-A: 0-16388 II-C: 0-16981 II-E: 0-17320 II-G: 0-17802
II-B: 0-16405 II-D: 0-16980 II-F: 0-17799 II-H: 0-18305
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
-------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
II-A 73-1295505
II-B 73-1303341
II-C 73-1308986
II-D 73-1329761
II-E 73-1324751
II-F 73-1330632
II-G 73-1336572
Oklahoma II-H 73-1342476
- --------------------------- -----------------------------------
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or
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 the filing requirements for the past 90
days.
Yes X No
----- -----
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 831,101 $ 875,918
Accounts receivable:
General Partner (Note 2) 45,411 -
Oil and gas sales 842,811 1,073,459
---------- ----------
Total current assets $1,719,323 $1,949,377
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 5,165,069 6,170,793
DEFERRED CHARGE 948,217 948,217
---------- ----------
$7,832,609 $9,068,387
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 129,991 $ 212,801
Gas imbalance payable 101,493 101,493
---------- ----------
Total current liabilities $ 231,484 $ 314,294
ACCRUED LIABILITY $ 158,683 $ 158,683
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 357,058) ($ 342,481)
Limited Partners, issued and
outstanding, 484,283 units 7,799,500 8,937,891
---------- ----------
Total Partners' capital $7,442,442 $8,595,410
---------- ----------
$7,832,609 $9,068,387
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $1,508,683 $1,286,587
Interest income 10,074 4,336
Gain (loss) on sale of oil and
gas properties 57,024 ( 6,798)
---------- ----------
$1,575,781 $1,284,125
COSTS AND EXPENSES:
Lease operating $ 431,151 $ 369,872
Production tax 83,728 71,136
Depreciation, depletion, and
amortization of oil and gas
properties 192,985 272,557
General and administrative (Note 2) 163,724 161,785
---------- ----------
$ 871,588 $ 875,350
---------- ----------
NET INCOME $ 704,193 $ 408,775
========== ==========
GENERAL PARTNER - NET INCOME $ 42,425 $ 31,124
========== ==========
LIMITED PARTNERS - NET INCOME $ 661,768 $ 377,651
========== ==========
NET INCOME per unit $ 1.37 $ .78
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $3,023,880 $2,629,889
Interest income 17,027 8,096
Gain (loss) on sale of oil and
gas properties 57,024 ( 6,640)
---------- ----------
$3,097,931 $2,631,345
COSTS AND EXPENSES:
Lease operating $ 726,363 $ 781,386
Production tax 180,088 147,414
Depreciation, depletion, and
amortization of oil and gas
properties 389,667 568,384
Impairment provision 684,276 -
General and administrative (Note 2) 327,310 323,535
---------- ----------
$2,307,704 $1,820,719
---------- ----------
NET INCOME $ 790,227 $ 810,626
========== ==========
GENERAL PARTNER - NET INCOME $ 81,618 $ 62,862
========== ==========
LIMITED PARTNERS - NET INCOME $ 708,609 $ 747,764
========== ==========
NET INCOME per unit $ 1.46 $ 1.54
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 790,227 $ 810,626
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 389,667 568,384
Impairment provision 684,276 -
(Gain) loss on sale of oil and
gas properties ( 57,024) 6,640
Increase in accounts receivable -
General Partner ( 45,411) -
(Increase) decrease in accounts
receivable - oil and gas sales 230,648 ( 79,328)
Decrease in accounts payable ( 82,810) ( 80,198)
---------- ----------
Net cash provided by operating
activities $1,909,573 $1,226,124
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 75,753) ($ 21,605)
Proceeds from sale of oil and
gas properties 64,558 23,337
---------- ----------
Net cash provided (used) by
investing activities ($ 11,195) $ 1,732
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,943,195) ($1,027,029)
---------- ----------
Net cash used by financing
activities ($1,943,195) ($1,027,029)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 44,817) $ 200,827
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 875,918 508,024
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 831,101 $ 708,851
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 481,884 $ 569,257
Accounts receivable:
General Partner (Note 2) 50,278 -
Oil and gas sales 561,504 710,208
---------- ----------
Total current assets $1,093,666 $1,279,465
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,347,643 4,140,409
DEFERRED CHARGE 160,103 160,103
---------- ----------
$4,601,412 $5,579,977
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 86,958 $ 189,245
Gas imbalance payable 17,055 17,055
---------- ----------
Total current liabilities $ 104,013 $ 206,300
ACCRUED LIABILITY $ 86,198 $ 86,198
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 307,151) ($ 265,183)
Limited Partners, issued and
outstanding, 361,719 units 4,718,352 5,552,662
---------- ----------
Total Partners' capital $4,411,201 $5,287,479
---------- ----------
$4,601,412 $5,579,977
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ---------
REVENUES:
Oil and gas sales $ 980,036 $917,850
Interest income 5,927 2,885
Gain on sale of oil and gas
properties 50,476 685
---------- --------
$1,036,439 $921,420
COSTS AND EXPENSES:
Lease operating $ 271,921 $250,709
Production tax 57,004 49,596
Depreciation, depletion, and
amortization of oil and gas
properties 122,525 211,033
General and administrative (Note 2) 130,090 136,395
---------- --------
$ 581,540 $647,733
---------- --------
NET INCOME $ 454,899 $273,687
========== ========
GENERAL PARTNER - NET INCOME $ 27,350 $ 21,981
========== ========
LIMITED PARTNERS - NET INCOME $ 427,549 $251,706
========== ========
NET INCOME per unit $ 1.18 $ .70
========== ========
UNITS OUTSTANDING 361,719 361,719
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $2,059,385 $1,949,372
Interest income 9,991 4,395
Gain on sale of oil and gas
properties 50,476 1,648
---------- ----------
$2,119,852 $1,955,415
COSTS AND EXPENSES:
Lease operating $ 479,879 $ 551,572
Production tax 129,692 108,280
Depreciation, depletion, and
amortization of oil and gas
properties 261,856 464,121
Impairment provision 530,988 -
General and administrative (Note 2) 257,538 261,182
---------- ----------
$1,659,953 $1,385,155
---------- ----------
NET INCOME $ 459,899 $ 570,260
========== ==========
GENERAL PARTNER - NET INCOME $ 54,209 $ 46,858
========== ==========
LIMITED PARTNERS - NET INCOME $ 405,690 $ 523,402
========== ==========
NET INCOME per unit $ 1.12 $ 1.45
========== ==========
UNITS OUTSTANDING 361,719 361,719
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 459,899 $570,260
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 261,856 464,121
Impairment provision 530,988 -
Gain on sale of oil and gas
properties ( 50,476) ( 1,648)
Increase in accounts receivable -
General Partner ( 50,278) -
(Increase) decrease in accounts
receivable 148,704 ( 41,330)
Decrease in accounts payable ( 102,287) ( 113,535)
---------- --------
Net cash provided by operating
activities $1,198,406 $877,868
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 1,043) ($ 46,535)
Proceeds from sale of oil and
gas properties 51,441 19,177
---------- --------
Net cash provided (used) by
investing activities $ 50,398 ($ 27,358)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,336,177) ($534,067)
---------- --------
Net cash used by financing
activities ($1,336,177) ($534,067)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 87,373) $316,443
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 569,257 168,239
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 481,884 $484,682
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 348,041 $ 387,334
Accounts receivable:
General Partner (Note 2) 32,946 -
Oil and gas sales 249,628 340,182
---------- ----------
Total current assets $ 630,615 $ 727,516
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,837,938 2,048,879
DEFERRED CHARGE 164,953 164,953
---------- ----------
$2,633,506 $2,941,348
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 34,038 $ 69,727
Gas imbalance payable 10,386 10,386
---------- ----------
Total current liabilities $ 44,424 $ 80,113
ACCRUED LIABILITY $ 69,148 $ 69,148
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 115,350) ($ 115,619)
Limited Partners, issued and
outstanding, 154,621 units 2,635,284 2,907,706
---------- ----------
Total Partners' capital $2,519,934 $2,792,087
---------- ----------
$2,633,506 $2,941,348
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $427,984 $428,354
Interest income 3,155 1,710
Gain on sale of oil and gas
properties 90,348 1,152
-------- --------
$521,487 $431,216
COSTS AND EXPENSES:
Lease operating $106,476 $115,174
Production tax 28,957 26,747
Depreciation, depletion, and
amortization of oil and gas
properties 50,034 99,777
General and administrative (Note 2) 56,221 58,916
-------- --------
$241,688 $300,614
-------- --------
NET INCOME $279,799 $130,602
======== ========
GENERAL PARTNER - NET INCOME $ 15,834 $ 10,436
======== ========
LIMITED PARTNERS - NET INCOME $263,965 $120,166
======== ========
NET INCOME per unit $ 1.71 $ .78
======== ========
UNITS OUTSTANDING 154,621 154,621
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Oil and gas sales $ 942,166 $896,703
Interest income 5,771 2,588
Gain on sale of oil and gas
properties 90,348 1,295
---------- --------
$1,038,285 $900,586
COSTS AND EXPENSES:
Lease operating $ 198,414 $240,177
Production tax 64,823 54,570
Depreciation, depletion, and
amortization of oil and gas
properties 106,929 213,310
Impairment provision 66,617 -
General and administrative (Note 2) 110,732 112,374
---------- --------
$ 547,515 $620,431
---------- --------
NET INCOME $ 490,770 $280,155
========== ========
GENERAL PARTNER - NET INCOME $ 31,192 $ 22,411
========== ========
LIMITED PARTNERS - NET INCOME $ 459,578 $257,744
========== ========
NET INCOME per unit $ 2.97 $ 1.67
========== ========
UNITS OUTSTANDING 154,621 154,621
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $490,770 $280,155
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 106,929 213,310
Impairment provision 66,617 -
Gain on sale of oil and gas
properties ( 90,348) ( 1,295)
Increase in accounts receivable -
General Partner ( 32,946) -
(Increase) decrease in accounts
receivable - oil and gas sales 90,554 1,808
Decrease in accounts payable ( 35,689) ( 25,512)
-------- --------
Net cash provided by operating
activities $595,887 $468,466
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,567) $ -
Proceeds from sale of oil and
gas properties 130,310 15,267
-------- --------
Net cash provided by investing
activities $127,743 $ 15,267
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($762,923) ($341,056)
-------- --------
Net cash used by financing
activities ($762,923) ($341,056)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 39,293) $142,677
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 387,334 82,353
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $348,041 $225,030
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 818,799 $ 906,737
Accounts receivable:
General Partner (Note 2) 71,625 -
Oil and gas sales 610,229 793,183
---------- ----------
Total current assets $1,500,653 $1,699,920
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,837,014 4,390,791
DEFERRED CHARGE 863,139 863,139
---------- ----------
$6,200,806 $6,953,850
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 93,816 $ 159,967
Gas imbalance payable 118,313 118,313
---------- ----------
Total current liabilities $ 212,129 $ 278,280
ACCRUED LIABILITY $ 266,782 $ 266,782
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 225,590) ($ 218,956)
Limited Partners, issued and
outstanding, 314,878 units 5,947,485 6,627,744
---------- ----------
Total Partners' capital $5,721,895 $6,408,788
---------- ----------
$6,200,806 $6,953,850
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $1,069,055 $1,021,696
Interest income 8,552 2,751
Gain on sale of oil and gas
properties 75,486 1,250
---------- ----------
$1,153,093 $1,025,697
COSTS AND EXPENSES:
Lease operating $ 292,478 $ 467,151
Production tax 82,708 69,915
Depreciation, depletion, and
amortization of oil and gas
properties 144,252 175,011
General and administrative (Note 2) 116,802 125,143
---------- ----------
$ 636,240 $ 837,220
---------- ----------
NET INCOME $ 516,853 $ 188,477
========== ==========
GENERAL PARTNER - NET INCOME $ 31,185 $ 16,287
========== ==========
LIMITED PARTNERS - NET INCOME $ 485,668 $ 172,190
========== ==========
NET INCOME per unit $ 1.54 $ .55
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $2,279,952 $2,079,944
Interest income 15,122 5,297
Gain on sale of oil and gas
properties 85,390 1,250
---------- ----------
$2,380,464 $2,086,491
COSTS AND EXPENSES:
Lease operating $ 529,080 $ 847,833
Production tax 166,451 140,485
Depreciation, depletion, and
amortization of oil and gas
properties 308,735 375,341
Impairment provision 143,957 -
General and administrative (Note 2) 230,038 235,431
---------- ----------
$1,378,261 $1,599,090
---------- ----------
NET INCOME $1,002,203 $ 487,401
========== ==========
GENERAL PARTNER - NET INCOME $ 67,462 $ 39,119
========== ==========
LIMITED PARTNERS - NET INCOME $ 934,741 $ 448,282
========== ==========
NET INCOME per unit $ 2.97 $ 1.42
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,002,203 $487,401
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 308,735 375,341
Impairment provision 143,957 -
Gain on sale of oil and gas
properties ( 85,390) ( 1,250)
Increase in accounts receivable -
General Partner ( 71,625) -
(Increase) decrease in accounts
receivable - oil and gas sales 182,954 ( 62,546)
Decrease in accounts payable ( 66,151) ( 6,071)
---------- --------
Net cash provided by operating
activities $1,414,683 $792,875
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 4,402) $ -
Proceeds from sale of oil and
gas properties 190,877 8,404
---------- --------
Net cash provided by investing
activities $ 186,475 $ 8,404
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,689,096) ($802,946)
---------- --------
Net cash used by financing
activities ($1,689,096) ($802,946)
---------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 87,938) ($ 1,667)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 906,737 317,368
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 818,799 $315,701
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 687,107 $ 528,765
Accounts receivable:
General Partner (Note 2) 1,275 -
Oil and gas sales 370,941 512,573
---------- ----------
Total current assets $1,059,323 $1,041,338
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,082,195 4,579,160
DEFERRED CHARGE 355,647 355,647
---------- ----------
$4,497,165 $5,976,145
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 62,434 $ 133,181
Gas imbalance payable 161,181 161,181
---------- ----------
Total current liabilities $ 223,615 $ 294,362
ACCRUED LIABILITY $ 59,234 $ 59,234
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 162,082) ($ 147,595)
Limited Partners, issued and
outstanding, 228,821 units 4,376,398 5,770,144
---------- ----------
Total Partners' capital $4,214,316 $5,622,549
---------- ----------
$4,497,165 $5,976,145
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- --------
REVENUES:
Oil and gas sales $599,676 $676,499
Interest income 5,426 1,940
Gain on sale of oil and gas
properties 51,772 2,537
-------- --------
$656,874 $680,976
COSTS AND EXPENSES:
Lease operating $222,653 $225,613
Production tax 49,992 45,525
Depreciation, depletion, and
amortization of oil and gas
properties 152,599 215,802
General and administrative (Note 2) 105,103 131,448
-------- --------
$530,347 $618,388
-------- --------
NET INCOME $126,527 $ 62,588
======== ========
GENERAL PARTNER - NET INCOME $ 12,159 $ 11,664
======== ========
LIMITED PARTNERS - NET INCOME $114,368 $ 50,924
======== ========
NET INCOME per unit $ .50 $ .22
======== ========
UNITS OUTSTANDING 228,821 228,821
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
REVENUES:
Oil and gas sales $1,379,969 $1,373,418
Interest income 9,637 3,680
Gain on sale of oil and gas
properties 51,772 2,939
---------- ----------
$1,441,378 $1,380,037
COSTS AND EXPENSES:
Lease operating $ 394,560 $ 440,368
Production tax 114,409 94,329
Depreciation, depletion, and
amortization of oil and gas
properties 316,037 473,205
Impairment provision 992,851 -
General and administrative (Note 2) 201,281 222,021
---------- ----------
$2,019,138 $1,229,923
---------- ----------
NET INCOME (LOSS) ($ 577,760) $ 150,114
========== ==========
GENERAL PARTNER - NET INCOME $ 22,986 $ 26,250
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 600,746) $ 123,864
========== ==========
NET INCOME (LOSS) per unit ($ 2.63) $ .54
========== ==========
UNITS OUTSTANDING 228,821 228,821
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($577,760) $150,114
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 316,037 473,205
Impairment provision 992,851 -
Gain on sale of oil and gas
properties ( 51,772) ( 2,939)
Increase in accounts receivable -
General Partner ( 1,275) -
(Increase) decrease in accounts
receivable - oil and gas sales 141,632 ( 32,932)
Decrease in accounts payable ( 70,747) ( 16,210)
-------- --------
Net cash provided by operating
activities $748,966 $571,238
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 5,629) ($ 12,344)
Proceeds from sale of oil and
gas properties 245,478 2,939
-------- --------
Net cash provided (used) by
investing activities $239,849 ($ 9,405)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($830,473) ($512,775)
-------- --------
Net cash used by financing
activities ($830,473) ($512,775)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $158,342 $ 49,058
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 528,765 201,042
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $687,107 $250,100
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 710,290 $ 441,903
Accounts receivable:
General Partner (Note 2) 3,116 15,285
Oil and gas sales 325,473 429,839
---------- ----------
Total current assets $1,038,879 $ 887,027
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,655,821 4,353,347
DEFERRED CHARGE 71,703 71,703
---------- ----------
$3,766,403 $5,312,077
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 31,377 $ 42,918
Gas imbalance payable 31,577 31,577
---------- ----------
Total current liabilities $ 62,954 $ 74,495
ACCRUED LIABILITY $ 28,322 $ 28,322
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 118,649) ($ 105,914)
Limited Partners, issued and
outstanding, 171,400 units 3,793,776 5,315,174
---------- ----------
Total Partners' capital $3,675,127 $5,209,260
---------- ----------
$3,766,403 $5,312,077
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $447,250 $612,423
Interest income 4,571 2,894
Gain on sale of oil and gas
properties 166,768 -
-------- --------
$618,589 $615,317
COSTS AND EXPENSES:
Lease operating $ 72,158 $111,976
Production tax 30,708 39,691
Depreciation, depletion, and
amortization of oil and gas
properties 103,640 153,094
General and administrative (Note 2) 54,812 51,013
-------- --------
$261,318 $355,774
-------- --------
NET INCOME $357,271 $259,543
======== ========
GENERAL PARTNER - NET INCOME $ 21,781 $ 18,956
======== ========
LIMITED PARTNERS - NET INCOME $335,490 $240,587
======== ========
NET INCOME per unit $ 1.96 $ 1.40
======== ========
UNITS OUTSTANDING 171,400 171,400
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $1,176,415 $1,231,441
Interest income 8,090 5,356
Gain on sale of oil and gas
properties 166,768 873
---------- ----------
$1,351,273 $1,237,670
COSTS AND EXPENSES:
Lease operating $ 177,618 $ 224,404
Production tax 84,878 79,300
Depreciation, depletion, and
amortization of oil and gas
properties 205,539 321,435
Impairment provision 1,377,160 -
General and administrative (Note 2) 109,756 106,707
---------- ----------
$1,954,951 $ 731,846
---------- ----------
NET INCOME (LOSS) ($ 603,678) $ 505,824
========== ==========
GENERAL PARTNER - NET INCOME $ 32,720 $ 37,881
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 636,398) $ 467,943
========== ==========
NET INCOME (LOSS) per unit ($ 3.71) $ 2.73
========== ==========
UNITS OUTSTANDING 171,400 171,400
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 603,678) $505,824
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 205,539 321,435
Impairment provision 1,377,160 -
Gain on sale of oil and gas
properties ( 166,768) ( 873)
Decrease in accounts receivable -
General Partner 12,169 -
(Increase) decrease in accounts
receivable - oil and gas sales 104,366 ( 42,308)
Decrease in accounts payable ( 11,541) ( 40,460)
---------- --------
Net cash provided by operating
activities $ 917,247 $743,618
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 17,239) $ -
Proceeds from sale of oil and
gas properties 298,834 3,435
---------- --------
Net cash provided by investing
activities $ 281,595 $ 3,435
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 930,455) ($649,523)
---------- --------
Net cash used by financing
activities ($ 930,455) ($649,523)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 268,387 $ 97,530
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 441,903 325,816
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 710,290 $423,346
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,571,348 $ 932,165
Accounts receivable:
General Partner (Note 2) 6,516 34,620
Oil and gas sales 695,856 911,439
---------- -----------
Total current assets $2,273,720 $ 1,878,224
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 5,663,974 9,542,790
DEFERRED CHARGE 155,718 155,718
---------- -----------
$8,093,412 $11,576,732
========== ===========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 68,617 $ 93,647
Gas imbalance payable 71,995 71,995
---------- -----------
Total current liabilities $ 140,612 $ 165,642
ACCRUED LIABILITY $ 56,912 $ 56,912
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 274,270)($ 244,312)
Limited Partners, issued and
outstanding, 372,189 units 8,170,158 11,598,490
---------- -----------
Total Partners' capital $7,895,888 $11,354,178
---------- -----------
$8,093,412 $11,576,732
========== ===========
The accompanying condensed notes are an integral part of
these combined financial statements.
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $ 981,156 $1,302,851
Interest income 9,799 5,939
Gain on sale of oil and gas
properties 329,485 -
---------- ----------
$1,320,440 $1,308,790
COSTS AND EXPENSES:
Lease operating $ 159,418 $ 244,856
Production tax 69,927 84,960
Depreciation, depletion, and
amortization of oil and gas
properties 227,148 350,026
General and administrative (Note 2) 118,908 110,440
---------- ----------
$ 575,401 $ 790,282
---------- ----------
NET INCOME $ 745,039 $ 518,508
========== ==========
GENERAL PARTNER - NET INCOME $ 45,848 $ 39,629
========== ==========
LIMITED PARTNERS - NET INCOME $ 699,191 $ 478,879
========== ==========
NET INCOME per unit $ 1.88 $ 1.29
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $2,517,489 $2,616,899
Interest income 17,231 10,961
Gain on sale of oil and gas
properties 329,485 1,852
---------- ----------
$2,864,205 $2,629,712
COSTS AND EXPENSES:
Lease operating $ 387,582 $ 490,970
Production tax 186,021 169,736
Depreciation, depletion, and
amortization of oil and gas
properties 449,874 735,808
Impairment provision 3,101,656 -
General and administrative (Note 2) 238,159 231,325
---------- ----------
$4,363,292 $1,627,839
---------- ----------
NET INCOME (LOSS) ($1,499,087) $1,001,873
========== ==========
GENERAL PARTNER - NET INCOME $ 66,245 $ 78,978
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($1,565,332) $ 922,895
========== ==========
NET INCOME (LOSS) per unit ($ 4.21) $ 2.48
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($1,499,087) $1,001,873
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 449,874 735,808
Impairment provision 3,101,656 -
Gain on sale of oil and gas
properties ( 329,485) ( 1,852)
Decrease in accounts receivable -
General Partner 28,104 -
(Increase) decrease in accounts
receivable - oil and gas sales 215,583 ( 91,875)
Decrease in accounts payable ( 25,030) ( 91,187)
---------- ----------
Net cash provided by operating
activities $1,941,615 $1,552,767
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 35,916) $ -
Proceeds from sale of oil and
gas properties 692,687 3,685
---------- ----------
Net cash provided by investing
activities $ 656,771 $ 3,685
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,959,203) ($1,348,278)
---------- ----------
Net cash used by financing
activities ($1,959,203) ($1,348,278)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 639,183 $ 208,174
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 932,165 661,921
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,571,348 $ 870,095
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-29-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 399,740 $ 221,484
Accounts receivable:
General Partner (Note 2) 1,507 9,151
Oil and gas sales 167,986 216,574
---------- ----------
Total current assets $ 569,233 $ 447,209
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,305,032 2,304,814
DEFERRED CHARGE 38,222 38,222
---------- ----------
$1,912,487 $2,790,245
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 17,298 $ 23,354
Gas imbalance payable 16,547 16,547
---------- ----------
Total current liabilities $ 33,845 $ 39,901
ACCRUED LIABILITY $ 14,139 $ 14,139
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 66,500) ($ 58,835)
Limited Partners, issued and
outstanding, 91,711 units 1,931,003 2,795,040
---------- ----------
Total Partners' capital $1,864,503 $2,736,205
---------- ----------
$1,912,487 $2,790,245
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-30-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $249,219 $310,430
Interest income 2,247 1,321
Gain on sale of oil and gas
properties 75,503 -
-------- --------
$326,969 $311,751
COSTS AND EXPENSES:
Lease operating $ 40,901 $ 61,400
Production tax 18,796 20,522
Depreciation, depletion, and
amortization of oil and gas
properties 54,935 86,269
General and administrative (Note 2) 29,264 27,400
-------- --------
$143,896 $195,591
-------- --------
NET INCOME $183,073 $116,160
======== ========
GENERAL PARTNER - NET INCOME $ 11,239 $ 9,193
======== ========
LIMITED PARTNERS - NET INCOME $171,834 $106,967
======== ========
NET INCOME per unit $ 1.87 $ 1.17
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-31-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Oil and gas sales $ 610,033 $626,799
Interest income 3,956 2,444
Gain on sale of oil and gas
properties 75,503 440
---------- --------
$ 689,492 $629,683
COSTS AND EXPENSES:
Lease operating $ 97,304 $123,094
Production tax 46,827 41,129
Depreciation, depletion, and
amortization of oil and gas
properties 108,330 181,611
Impairment provision 785,220 -
General and administrative (Note 2) 58,645 57,180
---------- --------
$1,096,326 $403,014
---------- --------
NET INCOME (LOSS) ($ 406,834) $226,669
========== ========
GENERAL PARTNER - NET INCOME $ 15,203 $ 18,476
========== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 422,037) $208,193
========== ========
NET INCOME (LOSS) per unit ($ 4.60) $ 2.27
========== ========
UNITS OUTSTANDING 91,711 91,711
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-32-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($406,834) $226,669
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 108,330 181,611
Impairment provision 785,220 -
Gain on sale of oil and gas
properties ( 75,503) ( 440)
Decrease in accounts receivable -
General Partner 7,644 -
(Increase) decrease in accounts
receivable - oil and gas sales 48,588 ( 22,032)
Decrease in accounts payable ( 6,056) ( 24,196)
-------- --------
Net cash provided by operating
activities $461,389 $361,612
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 8,251) $ -
Proceeds from sale of oil and
gas properties 189,986 952
-------- --------
Net cash provided by investing
activities $181,735 $ 952
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($464,868) ($319,040)
-------- --------
Net cash used by financing
activities ($464,868) ($319,040)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $178,256 $ 43,524
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 221,484 158,812
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $399,740 $202,336
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-33-
GEODYNE ENERGY INCOME II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 1997, combined
statements of operations for the three and six months ended June
30, 1997 and 1996 and combined statements of cash flows for the
six months ended June 30, 1997 and 1996 have been prepared by
Geodyne Resources, Inc., the general partner of the limited
partnerships, without audit. Each limited partnership is a
general partner in the related Geodyne Energy Income Production
Partnership (the "Production Partnership") in which Geodyne
Resources, Inc. serves as the managing partner. Unless the
context indicates otherwise, all references to a "Partnership" or
the "Partnerships" are references to the limited partnerships and
their related Production Partnerships, collectively, and all
references to the "General Partner" are references to the general
partner of the limited partnerships and the managing partner of
the Production Partnerships, collectively. In the opinion of
management the financial statements referred to above include all
necessary adjustments, consisting of normal recurring
adjustments, to present fairly the combined financial position at
June 30, 1997, the combined results of operations for the three
and six months ended June 30, 1997 and 1996 and the combined cash
flows for the six months ended June 30, 1997 and 1996.
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, 1996. The results of
operations for the period ended June 30, 1997 are not necessarily
indicative of the results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon
each $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 acquisition, for the period of time the properties
-34-
are held by the General Partner. 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 dismantlement
and abandonment costs, net of estimated salvage value.
When complete units of depreciable property are retired or sold,
the asset cost and related accumulated depreciation are
eliminated with any gain or loss reflected in income. When less
than complete units of depreciable property are retired or sold,
the difference between asset cost and salvage value is charged to
accumulated depreciation.
Statement of Financial Accounting Standards ("SFAS") No. 121,
"Accounting for the Impairment of Long Lived Assets and Assets
Held for Disposal", requires successful efforts companies, like
the Partnerships, to evaluate the recoverability of the carrying
costs of their proved oil and gas properties at the lowest level
for which there are identifiable cash flows that are largely
independent of the cash flows of other groups of oil and gas
properties. With respect to the Partnerships' oil and gas
properties, this evaluation was performed for each field. SFAS
No. 121 provides that if the unamortized costs of oil and gas
properties for each field exceed the expected undiscounted future
cash flows from such properties, the cost of the properties is
written down to fair value, which is determined by using the
discounted future cash flows from the properties. The
Partnerships recorded a non-cash charge against earnings
(impairment provision) during the six months ended June 30, 1997
pursuant to SFAS No. 121 as follows:
Partnership Amount
----------- ------------
II-A $ 684,276
II-B 530,988
II-C 66,617
II-D 143,957
II-E 992,851
II-F 1,377,160
II-G 3,101,656
II-H 785,220
The risk that the Partnerships will be required to record such
impairment provisions in the future increases when oil and gas
prices are depressed.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' Partnership Agreements provide for
reimbursement to the General Partner for all direct general and
administrative expenses and for the general and administrative
overhead applicable to the Partnerships based on an allocation of
actual costs incurred by the General Partner. During the six
-35-
months ended June 30, 1997 the following payments were made to
the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
II-A $72,424 $254,886
II-B 67,158 190,380
II-C 29,354 81,378
II-D 64,312 165,726
II-E 80,849 120,432
II-F 19,546 90,210
II-G 42,271 195,888
II-H 10,375 48,270
Affiliates of the Partnership's operate certain of the
Partnerships' properties and their policy is to bill the
Partnerships for all customary charges and cost reimbursements
associated with their activities.
The receivable from the General Partner at December 31, 1996 for
the II-F, II-G, and II-H Partnerships represented proceeds due to
such Partnerships for the sale of oil and gas properties during
the fourth quarter of 1996. Subsequent to December 31, 1996 such
receivable was collected by the II-F, II-G, and II-H
Partnerships.
The receivable from the General Partner at June 30, 1997 for the
Partnerships represents proceeds due to the Partnerships for the
sale of oil and gas properties during the second quarter of 1997.
Subsequent to June 30, 1997 such receivable was collected by the
Partnerships.
-36-
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, or 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 General Partner in accordance with
the terms of the Partnerships' Partnership Agreements.
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
----------- ------------------ ---------------
-37-
II-A July 22, 1987 $48,428,300
II-B October 14, 1987 36,171,900
II-C January 14, 1988 15,462,100
II-D May 10, 1988 31,487,800
II-E September 27, 1988 22,882,100
II-F January 5, 1989 17,140,000
II-G April 10, 1989 37,218,900
II-H May 17, 1989 9,171,100
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 operations less necessary operating capital are
distributed to 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,
1997 and the net revenue generated from future operations will
provide sufficient working capital to meet current and future
obligations of the Partnerships.
The Partnerships' cash flows for the second quarter of 1997
included proceeds from the sale of oil and gas properties during
the three months ended June 30, 1997. These proceeds will be
reflected, as applicable, in the Partnerships' cash distributions
to be paid in mid-August 1997. It is possible that the
Partnerships' repurchase values and future cash distributions
could decline as a result of the disposition of these properties.
On the other hand, the General Partner believes there will be
beneficial operating efficiencies related to the Partnerships'
remaining properties. This is primarily due to the fact that the
properties sold generally bore a higher ratio of operating
expenses as compared to reserves than the Partnerships' remaining
properties.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction
with the analysis of results of operations provided below. The
most important variable affecting the Partnerships' revenues is
the prices received for the sale of oil and gas. Predicting
future prices is very difficult. Substantially all of the
Partnerships' gas reserves are being sold in the "spot market".
Prices on the spot market are subject to wide seasonal and
regional pricing fluctuations due to the highly competitive
nature of the spot market. In addition, such spot market sales
are generally short-term in nature and are dependent upon the
obtaining of transportation services provided by pipelines.
Management is unable to predict whether future oil and gas prices
will (i) stabilize, (ii) increase, or (iii) decrease.
An analysis of the change in net oil and gas operations (oil and
gas sales, less lease operating expenses and production taxes),
is presented in the tables within "Results of Operations".
-38-
Generally, the Partnerships' operations during the six months
ended June 30, 1997 reflected a decrease in production of oil and
gas and an increase in the average prices of oil and gas sold by
the Partnerships. Refer to "Liquidity and Capital Resources"
above for a discussion of factors impacting prices.
II-A PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
---------- ----------
Oil and gas sales $1,508,683 $1,286,587
Oil and gas production expenses $ 514,879 $ 441,008
Barrels produced 26,766 27,526
Mcf produced 373,003 364,081
Average price/Bbl $ 19.74 $ 18.98
Average price/Mcf $ 2.63 $ 2.10
As shown in the above table, total oil and gas sales increased
$222,096 (17.3%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
increase, approximately $20,000 and $198,000, respectively, were
related to increases in the average prices of oil and gas sold.
Volumes of oil sold decreased 760 barrels, while volumes of gas
sold increased 8,922 Mcf for the three months ended June 30, 1997
as compared to the three months ended June 30, 1996. Average oil
and gas prices increased to $19.74 per barrel and $2.63 per Mcf,
respectively, for the three months ended June 30, 1997 from
$18.98 per barrel and $2.10 per Mcf, respectively, for the three
months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $73,871 (16.8%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This increase resulted primarily from (i)
workover expenses incurred on two wells during the three months
ended June 30, 1997 in order to improve the recovery of reserves
and (ii) an increase in production taxes associated with the
increase in oil and gas sales discussed above. As a percentage
of oil and gas sales, these expenses remained relatively constant
at 34.1% for the three months ended June 30, 1997 and 34.3% the
three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $79,572 (29.2%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from upward revisions in
the estimates of remaining oil and gas reserves at December 31,
1996. As a percentage of oil and gas sales, this expense
decreased to 12.8% for the three months ended June 30, 1997 from
21.2% for the three months ended June 30, 1996. This percentage
decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996.
-39-
General and administrative expenses remained relatively constant
for the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 10.9% for the three months
ended June 30, 1997 from 12.6% for the three months ended June
30, 1996. This percentage decrease was primarily due to the
increase in oil and gas sales discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $3,023,880 $2,629,889
Oil and gas production expenses $ 906,451 $ 928,800
Barrels produced 51,281 58,616
Mcf produced 769,733 751,963
Average price/Bbl $ 20.70 $ 18.61
Average price/Mcf $ 2.55 $ 2.05
As shown in the above table, total oil and gas sales increased
$393,991 (15.0%) for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Of this
increase, approximately $107,000 and $385,000, respectively, were
related to increases in the average prices of oil and gas sold
and approximately $36,000 was related to an increase in volumes
of gas sold, partially offset by a decrease of approximately
$137,000 related to a decrease in volumes of oil sold. Volumes
of oil sold decreased 7,335 barrels, while volumes of gas sold
increased 17,770 Mcf for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Average oil and
gas prices increased to $20.70 per barrel and $2.55 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.61
per barrel and $2.05 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $22,349 (2.4%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil sold during the six months ended June
30, 1997 as compared to the six months ended June 30, 1996. As a
percentage of oil and gas sales, these expenses decreased to
30.0% for the six months ended June 30, 1997 from 35.3% for the
six months ended June 30, 1996. This percentage decrease was
primarily due to the increases in the average prices of oil and
gas sold during the six months ended June 30, 1997 as compared to
the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $178,717 (31.4%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) a decrease in volumes of oil sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996. As a percentage of oil and gas sales, this expense
decreased to 12.9% for the six months ended June 30, 1997 from
21.6% for the six months ended June 30, 1996. This percentage
-40-
decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The II-A Partnership recognized a non-cash charge against
earnings of $684,276 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the undiscounted future
net revenues from such oil and gas properties, in accordance with
the II-A Partnership's adoption of SFAS No. 121. Of this amount,
$223,943 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $460,333 was related to impairment of unproved
properties. No similar charge was necessary during the six
months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 10.8% for the six months ended
June 30, 1997 from 12.3% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increase in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $40,673,357 or 83.99% of Limited Partners'
capital contributions.
II-B PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $980,036 $917,850
Oil and gas production expenses $328,925 $300,305
Barrels produced 19,038 20,790
Mcf produced 224,547 238,069
Average price/Bbl $ 20.07 $ 19.26
Average price/Mcf $ 2.66 $ 2.17
As shown in the above table, total oil and gas sales increased
$62,186 (6.8%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
increase, approximately $15,000 and $110,000, respectively, were
related to increases in the average prices of oil and gas sold,
partially offset by decreases of approximately $34,000 and
$29,000, respectively, related to decreases in volumes of oil and
gas sold. Volumes of oil and gas sold decreased 1,752 barrels
and 13,522 Mcf, respectively, for the three months ended June 30,
1997 as compared to the three months ended June 30, 1996.
Average oil and gas prices increased to $20.07 per barrel and
$2.66 per Mcf, respectively, for the three months ended June 30,
1997 from $19.26 per barrel and $2.17 per Mcf, respectively, for
the three months ended June 30, 1996.
-41-
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $28,620 (9.5%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This increase resulted primarily from
workover expenses incurred on two wells during the three months
ended June 30, 1997 in order to improve the recovery of reserves,
partially offset by decreases in volumes of oil and gas sold
during the three months ended June 30, 1997 as compared to the
three months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses remained relatively constant at 33.6% for
the three months ended June 30, 1997 as compared to 32.7% for the
three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $88,508 (41.9%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) upward revisions
in the estimates of remaining oil and gas reserves at December
31, 1996 and (ii) decreases in volumes of oil and gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 12.5% for the three months ended
June 30, 1997 from 23.0% for the three months ended June 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above and the increases in the average prices of oil and gas sold
during the three months ended June 30, 1997 as compared to the
three months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 13.3% for the three months
ended June 30, 1997 from 14.9% for the three months ended June
30, 1996. This percentage decrease was primarily due to the
increase in oil and gas sales discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $2,059,385 $1,949,372
Oil and gas production expenses $ 609,571 $ 659,852
Barrels produced 34,469 46,884
Mcf produced 517,211 516,613
Average price/Bbl $ 20.88 $ 18.77
Average price/Mcf $ 2.59 $ 2.07
As shown in the above table, total oil and gas sales increased
$110,013 (5.6%) for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Of this
increase, approximately $73,000 and $269,000, respectively, were
related to increases in the average prices of oil and gas sold,
partially offset by a decrease of approximately $233,000 related
to a decrease in volumes of oil sold. Volumes of oil sold
decreased 12,415 barrels, while volumes of gas sold increased 598
Mcf for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. The decrease in volumes of oil sold
resulted primarily from (i) the sale of several oil producing
-42-
wells during 1996 and (ii) positive prior period volume
adjustments made by the purchasers on several wells during the
six months ended June 30, 1996. Average oil and gas prices
increased to $20.88 per barrel and $2.59 per Mcf, respectively,
for the six months ended June 30, 1997 from $18.77 per barrel and
$2.07 per Mcf, respectively, for the six months ended June 30,
1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $50,281 (7.6%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil sold during the six months ended June
30, 1997 as compared to the six months ended June 30, 1996. As a
percentage of oil and gas sales, these expenses decreased to
29.6% for the six months ended June 30, 1997 from 33.8% for the
six months ended June 30, 1996. This percentage decrease was
primarily due to the increases in the average prices of oil and
gas sold during the six months ended June 30, 1997 as compared to
the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $202,265 (43.6%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) a decrease in volumes of oil sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996. As a percentage of oil and gas sales, this expense
decreased to 12.7% for the six months ended June 30, 1997 from
23.8% for the six months ended June 30, 1996. This percentage
decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The II-B Partnership recognized a non-cash charge against
earnings of $530,988 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the undiscounted future
net revenues from such oil and gas properties, in accordance with
the II-B Partnership's adoption of SFAS No. 121. Of this amount,
$134,003 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $396,985 was related to impairment of unproved
properties. No similar charge was necessary during the six
months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 12.5% for the six months ended
June 30, 1997 from 13.4% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increase in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $28,873,916 or 79.82% of Limited Partners'
capital contributions.
-43-
II-C PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $427,984 $428,354
Oil and gas production expenses $135,433 $141,921
Barrels produced 6,259 7,168
Mcf produced 130,154 147,645
Average price/Bbl $ 19.36 $ 19.80
Average price/Mcf $ 2.36 $ 1.94
As shown in the table above, total oil and gas sales remained
relatively constant for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. While volumes
of oil and gas sold decreased and the average price of oil sold
decreased during the three months ended June 30, 1997 as compared
to the three months ended June 30, 1996, any resulting decrease
in oil and gas sales was offset by an increase in the average
price of gas sold. Volumes of oil and gas sold decreased 909
barrels and 17,491 Mcf, respectively, for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. Average oil prices decreased to $19.36 per barrel for the
three months ended June 30, 1997 from $19.80 per barrel for the
three months ended June 30, 1996, while average gas prices
increased to $2.36 per Mcf for the three months ended June 30,
1997 from $1.94 per Mcf for the three months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $6,488 (4.6%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, these expenses
remained relatively constant at 31.6% for the three months ended
June 30, 1997 and 33.1% for the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $49,743 (49.9%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) upward revisions
in the estimates of remaining oil and gas reserves at December
31, 1996 and (ii) decreases in volumes of oil and gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 11.7% for the three months ended
June 30, 1997 from 23.3% for the three months ended June 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above and the increase in the average price of gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the three months ended June 30, 1997 as compared to the three
-44-
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses remained relatively constant at 13.1% for
the three months ended June 30, 1997 and 13.8% for the three
months ended June 30, 1996.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
-------- --------
Oil and gas sales $942,166 $896,703
Oil and gas production expenses $263,237 $294,747
Barrels produced 11,332 16,152
Mcf produced 290,427 310,683
Average price/Bbl $ 20.74 $ 19.07
Average price/Mcf $ 2.43 $ 1.89
As shown in the above table, total oil and gas sales increased
$45,463 (5.1%) for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. Of this increase,
approximately $19,000 and $157,000, respectively, were related to
increases in the average prices of oil and gas sold, partially
offset by decreases of approximately $92,000 and $38,000,
respectively, related to decreases in volumes of oil and gas
sold. Volumes of oil and gas sold decreased 4,820 barrels and
20,256 Mcf, respectively, for the six months ended June 30, 1997
as compared to the six months ended June 30, 1996. The decrease
in volumes of oil sold resulted primarily from positive prior
period volume adjustments made by the purchasers on several wells
during the six months ended June 30, 1996. Average oil and gas
prices increased to $20.74 per barrel and $2.43 per Mcf,
respectively, for the six months ended June 30, 1997 from $19.07
per barrel and $1.89 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $31,510 (10.7%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
decreased to 27.9% for the six months ended June 30, 1997 from
32.9% for the six months ended June 30, 1996. This percentage
decrease was primarily due to the increases in the average prices
of oil and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $106,381 (49.9%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 11.3% for the six months ended June 30, 1997
from 23.8% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
-45-
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The II-C Partnership recognized a non-cash charge against
earnings of $66,617 for the six months ended June 30, 1997. This
impairment provision was necessary due to the unamortized costs
of oil and gas properties exceeding the undiscounted future net
revenues from such oil and gas properties, in accordance with the
II-C Partnership's adoption of SFAS No. 121. Of this amount,
$36,163 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $30,454 was related to impairment of unproved
properties. No similar charge was necessary during the six
months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 11.8% for the six months ended
June 30, 1997 from 12.5% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increase in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $12,654,686 or 81.84% of Limited Partners'
capital contributions.
II-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
---------- ----------
Oil and gas sales $1,069,055 $1,021,696
Oil and gas production expenses $ 375,186 $ 537,066
Barrels produced 12,836 17,112
Mcf produced 349,345 404,552
Average price/Bbl $ 16.86 $ 19.20
Average price/Mcf $ 2.44 $ 1.71
As shown in the above table, total oil and gas sales increased
$47,359 (4.6%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
increase, approximately $255,000 was related to an increase in
the average price of gas sold, partially offset by decreases of
approximately $82,000 and $94,000, respectively, related to
decreases in volumes of oil and gas sold and a decrease of
approximately $30,000 related to a decrease in the average price
of oil sold. Volumes of oil and gas sold decreased 4,276 barrels
and 55,207 Mcf, respectively, for the three months ended June 30,
1997 as compared to the three months ended June 30, 1996. The
decrease in volumes of oil sold resulted primarily from the sale
of one oil producing well during 1996. Average oil prices
decreased to $16.86 per barrel for the three months ended June
30, 1997 from $19.20 per barrel for the three months ended June
30, 1996, while average gas prices increased to $2.44 per Mcf for
-46-
the three months ended June 30, 1997 from $1.71 per Mcf for the
three months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $161,880 (30.1%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i) a
decrease in production expenses due to the sale of one well
during 1996 and (ii) decreases in volumes of oil and gas sold
during the three months ended June 30, 1997 as compared to the
three months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 35.1% for the three months
ended June 30, 1997 from 52.6% for the three months ended June
30, 1996. This percentage decrease was primarily due to the
dollar decrease in production expenses discussed above and the
increase in the average price of gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $30,759 (17.6%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from decreases in volumes
of oil and gas sold during the three months ended June 30, 1997
as compared to the three months ended June 30, 1996. As a
percentage of oil and gas sales, this expense decreased to 13.5%
for the three months ended June 30, 1997 from 17.1% for the three
months ended June 30, 1996. This percentage decrease was
primarily due to the increase in the average price of gas sold
during the three months ended June 30, 1997 as compared to the
three months ended June 30, 1996.
General and administrative expenses decreased $8,341 (6.7%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This decrease resulted primarily
from a decrease in legal fees during the three months ended June
30, 1997 as compared to the three months ended June 30, 1996. As
a percentage of oil and gas sales, these expenses decreased to
10.9% for the three months ended June 30, 1997 from 12.2% for the
three months ended June 30, 1996. This percentage decrease was
primarily due to the dollar decrease in general and
administrative expenses discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $2,279,952 $2,079,944
Oil and gas production expenses $ 695,531 $ 988,318
Barrels produced 25,538 35,294
Mcf produced 759,290 832,055
Average price/Bbl $ 20.24 $ 18.62
Average price/Mcf $ 2.32 $ 1.71
As shown in the above table, total oil and gas sales increased
$200,008 (9.6%) for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Of this
increase, approximately $41,000 and $463,000, respectively, were
related to increases in the average prices of oil and gas sold,
-47-
partially offset by decreases of approximately $182,000 and
$124,000, respectively, related to decreases in volumes of oil
and gas sold. Volumes of oil and gas sold decreased 9,756
barrels and 72,765 Mcf, respectively, for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
The decrease in volumes of oil sold resulted primarily from the
sale of one oil producing well during 1996. Average oil and gas
prices increased to $20.24 per barrel and $2.32 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.62
per barrel and $1.71 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $292,787 (29.6%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i) a
decrease in production expenses due to the sale of one well
during 1996 and (ii) decreases in volumes of oil and gas sold
during the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 30.5% for the six months ended
June 30, 1997 from 47.5% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the dollar decrease
in production expenses discussed above and the increases in the
average prices of oil and gas sold during the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $66,606 (17.7%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from decreases in volumes of oil
and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. As a percentage
of oil and gas sales, this expense decreased to 13.5% for the six
months ended June 30, 1997 from 18.0% for the six months ended
June 30, 1996. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The II-D Partnership recognized a non-cash charge against
earnings of $143,957 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the undiscounted future
net revenues from such oil and gas properties, in accordance with
the II-D Partnership's adoption of SFAS No. 121. No similar
charge was necessary during the six months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 10.1% for the six months ended
June 30, 1997 from 11.3% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increase in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $24,352,903 or 77.34% of Limited Partners'
capital contributions.
II-E PARTNERSHIP
-48-
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $599,676 $676,499
Oil and gas production expenses $272,645 $271,138
Barrels produced 11,099 14,313
Mcf produced 192,047 207,065
Average price/Bbl $ 18.84 $ 20.01
Average price/Mcf $ 2.03 $ 1.88
As shown in the above table, total oil and gas sales decreased
$76,823 (11.4%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $64,000 and $28,000, respectively, were
related to decreases in volumes of oil and gas sold and
approximately $13,000 was related to a decrease in the average
price of oil sold, partially offset by an increase of
approximately $29,000 related to an increase in the average price
of gas sold. Volumes of oil and gas sold decreased 3,214 barrels
and 15,018 Mcf, respectively, for the three months ended June 30,
1997 as compared to the three months ended June 30, 1996. The
decrease in volumes of oil sold resulted primarily from the sale
of one oil producing well during 1996. Average oil prices
decreased to $18.84 per barrel for the three months ended June
30, 1997 from $20.01 per barrel for the three months ended June
30, 1996, while average gas prices increased to $2.03 per Mcf for
the three months ended June 30, 1997 from $1.88 per Mcf for the
three months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas sales,
these expenses increased to 45.5% for the three months ended June
30, 1997 from 40.1% for the three months ended June 30, 1996.
This percentage increase was primarily due to the decrease in the
average price of oil sold during the three months ended June 30,
1997 as compared to the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $63,203 (29.3%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) upward revisions
in the estimates of remaining oil and gas reserves at December
31, 1996 and (ii) decreases in volumes of oil and gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 25.4% for the three months ended
June 30, 1997 from 31.9% for the three months ended June 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above and the increase in the average price of gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996.
General and administrative expenses decreased $26,345 (20.0%) for
the three months ended June 30, 1997 as compared to the three
-49-
months ended June 30, 1996. This decrease resulted primarily
from a decrease in legal fees during the three months ended June
30, 1997 as compared to the three months ended June 30, 1996. As
a percentage of oil and gas sales, these expenses decreased to
17.5% for the three months ended June 30, 1997 from 19.4% for the
three months ended June 30, 1996. This percentage decrease was
primarily due to the dollar decrease in general and
administrative expenses discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $1,379,969 $1,373,418
Oil and gas production expenses $ 508,969 $ 534,697
Barrels produced 23,160 29,282
Mcf produced 396,698 466,666
Average price/Bbl $ 20.08 $ 19.15
Average price/Mcf $ 2.31 $ 1.74
As shown in the table above, total oil and gas sales remained
relatively constant for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. While the
average prices of oil and gas sold increased during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996, any resulting increase in oil and gas sales was
offset by decreases in the volumes of oil and gas sold. Volumes
of oil and gas sold decreased 6,122 barrels and 69,968 Mcf,
respectively, for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. The decrease in volumes
of oil sold resulted primarily from the sale of one oil producing
well during 1996. Average oil and gas prices increased to $20.08
per barrel and $2.31 per Mcf, respectively, for the six months
ended June 30, 1997 from $19.15 per barrel and $1.74 per Mcf,
respectively, for the six months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $25,728 (4.8%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
remained relatively constant at 36.9% for the six months ended
June 30, 1997 and 38.9% for the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $157,168 (33.2%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 22.9% for the six months ended June 30, 1997
from 34.5% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
-50-
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The II-E Partnership recognized a non-cash charge against
earnings of $992,851 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the undiscounted future
net revenues from such oil and gas properties, in accordance with
the II-E Partnership's adoption of SFAS No. 121. Of this amount,
$317,979 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $674,872 was related to impairment of unproved
properties. No similar charge was necessary during the six
months ended June 30, 1996.
General and administrative expenses decreased $20,740 (9.3%) for
the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from a
decrease in legal fees during the six months ended June 30, 1997
as compared to the six months ended June 30, 1996. As a
percentage of oil and gas sales, these expenses decreased to
14.6% for the six months ended June 30, 1997 from 16.2% for the
six months ended June 30, 1996. This percentage decrease was
primarily due to the dollar decrease in general and
administrative expenses discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $14,218,574 or 62.14% of Limited Partners'
capital contributions.
II-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $447,250 $612,423
Oil and gas production expenses $102,866 $151,667
Barrels produced 11,858 12,902
Mcf produced 147,808 194,355
Average price/Bbl $ 18.11 $ 19.35
Average price/Mcf $ 1.57 $ 1.87
As shown in the above table, total oil and gas sales decreased
$165,173 (27.0%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $20,000 and $87,000, respectively, were
related to decreases in volumes of oil and gas sold and
approximately $15,000 and $44,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 1,044 barrels and 46,547 Mcf,
respectively, for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. The decrease
in volumes of gas sold resulted primarily from (i) a positive
prior period volume adjustment made by the purchaser on one well
during the three months ended June 30, 1996, (ii) negative prior
period volume adjustments made by the purchasers on two wells
-51-
during the three months ended June 30, 1997 and (iii) a normal
decline in production due to diminished gas reserves on one well.
Average oil and gas prices decreased to $18.11 per barrel and
$1.57 per Mcf, respectively, for the three months ended June 30,
1997 from $19.35 per barrel and $1.87 per Mcf, respectively, for
the three months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $48,801 (32.2%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996 and (ii) a decrease in production taxes associated with
the decrease in oil and gas sales discussed above. As a
percentage of oil and gas sales, these expenses remained
relatively constant at 23.0% for the three months ended June 30,
1997 and 24.8% for the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $49,454 (32.3%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) upward revisions
in the estimates of remaining oil and gas reserves at December
31, 1996 and (ii) decreases in volumes of oil and gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, this expense remained relatively constant at 23.2% for the
three months ended June 30, 1997 and 25.0% for the three months
ended June 30, 1996.
General and administrative expenses increased $3,799 (7.5%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from an increase in professional fees during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, these expenses
increased to 12.3% for the three months ended June 30, 1997 from
8.3% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $1,176,415 $1,231,441
Oil and gas production expenses $ 262,496 $ 303,704
Barrels produced 23,870 26,237
Mcf produced 291,017 413,172
Average price/Bbl $ 19.51 $ 18.44
Average price/Mcf $ 2.44 $ 1.81
As shown in the above table, total oil and gas sales decreased
$55,026 (4.5%) for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. Of this decrease,
approximately $44,000 and $221,000, respectively, were related to
decreases in volumes of oil and gas sold, partially offset by
-52-
increases of approximately $26,000 and $183,000, respectively,
related to increases in the average prices of oil and gas sold.
Volumes of oil and gas sold decreased 2,367 barrels and 122,155
Mcf, respectively, for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. The decrease in
volumes of gas sold resulted primarily from (i) positive prior
period volume adjustments made by the purchasers on two wells
during the six months ended June 30, 1996 and (ii) a negative
prior period volume adjustment made by the purchaser on one well
during the six months ended June 30, 1997. Average oil and gas
prices increased to $19.51 per barrel and $2.44 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.44
per barrel and $1.81 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $41,208 (13.6%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
decreased to 22.3% for the six months ended June 30, 1997 from
24.7% for the six months ended June 30, 1996. This percentage
decrease was primarily due to the increases in the average prices
of oil and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $115,896 (36.1%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 17.5% for the six months ended June 30, 1997
from 26.1% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The II-F Partnership recognized a non-cash charge against
earnings of $1,377,160 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the undiscounted future
net revenues from such oil and gas properties, in accordance with
the II-F Partnership's adoption of SFAS No. 121. Of this amount,
$208,255 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $1,168,905 was related to impairment of unproved
properties. No similar charge was necessary during the six
months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses increased to 9.3% for the six months ended
June 30, 1997 from 8.7% for the six months ended June 30, 1996.
-53-
This percentage increase was primarily due to the decrease in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $13,927,051 or 81.25% of Limited Partners'
capital contributions.
II-G PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- ----------
Oil and gas sales $981,156 $1,302,851
Oil and gas production expenses $229,345 $ 329,816
Barrels produced 24,902 27,148
Mcf produced 318,934 415,669
Average price/Bbl $ 18.11 $ 19.36
Average price/Mcf $ 1.66 $ 1.87
As shown in the above table, total oil and gas sales decreased
$321,695 (24.7%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $43,000 and $181,000, respectively, were
related to decreases in volumes of oil and gas sold and
approximately $31,000 and $67,000, respectively, were related to
decreases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 2,246 barrels and 96,735 Mcf,
respectively, for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. The decrease
in volumes of gas sold resulted primarily from (i) a positive
prior period volume adjustment made by the purchaser on one well
during the three months ended June 30, 1996, (ii) negative prior
period volume adjustments made by the purchaser on two wells
during the three months ended June 30, 1997, and (iii) a normal
decline in production due to diminished gas reserves on one well.
Average oil and gas prices decreased to $18.11 per barrel and
$1.66 per Mcf, respectively, for the three months ended June 30,
1997 from $19.36 per barrel and $1.87 per Mcf, respectively, for
the three months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $100,471 (30.5%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996 and (ii) a decrease in production taxes associated with
the decrease in oil and gas sales discussed above. As a
percentage of oil and gas sales, these expenses remained
relatively constant at 23.4% for the three months ended June 30,
1997 and 25.3% for the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $122,878 (35.1%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) upward revisions
in the estimates of remaining oil and gas reserves at December
-54-
31, 1996 and (ii) decreases in volumes of oil and gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 23.2% for the three months ended
June 30, 1997 from 26.9% for the three months ended June 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above, partially offset by the decreases in the average prices of
oil and gas sold during the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996.
General and administrative expenses increased $8,468 (7.7%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from an increase in professional fees during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, these expenses
increased to 12.1% for the three months ended June 30, 1997 from
8.5% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
----------------------------
1997 1996
---------- ----------
Oil and gas sales $2,517,489 $2,616,899
Oil and gas production expenses $ 573,603 $ 660,706
Barrels produced 50,149 55,190
Mcf produced 626,682 885,073
Average price/Bbl $ 19.51 $ 18.45
Average price/Mcf $ 2.46 $ 1.81
As shown in the above table, total oil and gas sales decreased
$99,410 (3.8%) for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. Of this decrease,
approximately $93,000 and $468,000, respectively, were related to
decreases in volumes of oil and gas sold, partially offset by
increases of approximately $53,000 and $407,000, respectively,
related to increases in the average prices of oil and gas sold.
Volumes of oil and gas sold decreased 5,041 barrels and 258,391
Mcf, respectively, for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. The decrease in
volumes of gas sold resulted primarily from (i) positive prior
period volume adjustments made by the purchaser on two wells
during the six months ended June 30, 1996 and (ii) a negative
prior period volume adjustment made by the purchaser on one well
during the six months ended June 30, 1997. Average oil and gas
prices increased to $19.51 per barrel and $2.46 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.45
per barrel and $1.81 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $87,103 (13.2%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the six months
-55-
ended June 30, 1997 as compared to the six months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
decreased to 22.8% for the six months ended June 30, 1997 from
25.2% for the six months ended June 30, 1996. This percentage
decrease was primarily due to the increases in the average prices
of oil and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $285,934 (38.9%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 17.9% for the six months ended June 30, 1997
from 28.1% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The II-G Partnership recognized a non-cash charge against
earnings of $3,101,656 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the undiscounted future
net revenues from such oil and gas properties, in accordance with
the II-G Partnership's adoption of SFAS No. 121. Of this amount,
$489,672 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $2,611,984 was related to impairment of unproved
properties. No similar charge was necessary during the six
months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses increased to 9.5% for the six months ended
June 30, 1997 from 8.8% for the six months ended June 30, 1996.
This percentage increase was primarily due to the decrease in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $28,501,371 or 76.58% of Limited Partners'
capital contributions.
II-H PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $249,219 $310,430
Oil and gas production expenses $ 59,697 $ 81,922
Barrels produced 5,785 6,333
Mcf produced 78,951 102,277
-56-
Average price/Bbl $ 18.10 $ 19.41
Average price/Mcf $ 1.83 $ 1.83
As shown in the above table, total oil and gas sales decreased
$61,211 (19.7%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $11,000 and $43,000, respectively, were
related to decreases in volumes of oil and gas sold and
approximately $8,000 was related to a decrease in the average
price of oil sold. Volumes of oil and gas sold decreased 548
barrels and 23,326 Mcf, respectively, for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. The decrease in volumes of gas sold resulted primarily
from (i) a positive prior period volume adjustment made by the
purchaser on one well during the three months ended June 30,
1996, (ii) negative prior period volume adjustments made by the
purchasers on two wells during the three months ended June 30,
1997, and (iii) a normal decline in production due to diminished
gas reserves on one well. Average oil prices decreased to $18.10
per barrel for the three months ended June 30, 1997 from $19.41
per barrel for the three months ended June 30, 1996. Average gas
prices remained constant at $1.83 per Mcf for the three months
ended June 30, 1997 and 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $22,225 (27.1%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i)
decreases in volumes of oil and gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996 and (ii) a decrease in production taxes associated with
the decrease in oil and gas sales discussed above. As a
percentage of oil and gas sales, these expenses decreased to
24.0% for the three months ended June 30, 1997 from 26.4% for the
three months ended June 30, 1996. This percentage decrease was
primarily due to the dollar decrease in production expenses
discussed above, partially offset by the decrease in the average
price of oil sold during the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $31,334 (36.3%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) upward revisions
in the estimates of remaining oil and gas reserves at December
31, 1996 and (ii) decreases in volumes of oil and gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 22.0% for the three months ended
June 30, 1997 from 27.8% for the three months ended June 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above, partially offset by the decrease in the average price of
oil sold during the three months ended June 30, 1997 as compared
to the three months ended June 30, 1996.
General and administrative expenses increased $1,864 (6.8%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from an increase in professional fees during the three months
ended June 30, 1997 as compared to the three months ended June
-57-
30, 1996. As a percentage of oil and gas sales, these expenses
increased to 11.7% for the three months ended June 30, 1997 from
8.8% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
-------- --------
Oil and gas sales $610,033 $626,799
Oil and gas production expenses $144,131 $164,223
Barrels produced 11,666 12,856
Mcf produced 154,134 218,168
Average price/Bbl $ 19.51 $ 18.48
Average price/Mcf $ 2.48 $ 1.78
As shown in the above table, total oil and gas sales decreased
$16,766 (2.7%) for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. Of this decrease,
approximately $22,000 and $114,000, respectively, were related to
decreases in volumes of oil and gas sold, partially offset by
increases of approximately $12,000 and $108,000, respectively,
related to increases in the average prices of oil and gas sold.
Volumes of oil and gas sold decreased 1,190 barrels and 64,034
Mcf, respectively, for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. The decrease in
volumes of gas sold resulted primarily from (i) positive prior
period volume adjustments made by the purchasers on two wells
during the six months ended June 30, 1996 and (ii) a negative
prior period volume adjustment made by the purchaser on one well
during the six months ended June 30, 1997. Average oil and gas
prices increased to $19.51 per barrel and $2.48 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.48
per barrel and $1.78 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $20,092 (12.2%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
decreased to 23.6% for the six months ended June 30, 1997 from
26.2% for the six months ended June 30, 1996. This percentage
decrease was primarily due to the increases in the average prices
of oil and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $73,281 (40.4%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
-58-
expense decreased to 17.8% for the six months ended June 30, 1997
from 29.0% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The II-H Partnership recognized a non-cash charge against
earnings of $785,220 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the undiscounted future
net revenues from such oil and gas properties, in accordance with
the II-H Partnership's adoption of SFAS No. 121. Of this amount,
$125,223 was related to the decline in oil and gas prices used to
determine the recoverability of oil and gas reserves at March 31,
1997 and $659,997 was related to impairment of unproved
properties. No similar charge was necessary during the six
months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses remained relatively constant at 9.6% for
the six months ended June 30, 1997 and 9.1% for the six months
ended June 30, 1996.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $6,605,364 or 72.02% of Limited Partners'
capital contributions.
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PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As further described in the Partnerships' Report on Form 8-K
filed April 2, 1997 (the "Form 8-K") the Partnerships are
included in the subject matter of a class action lawsuit entitled
"In Re: PaineWebber Limited Partnerships' Litigation", Case No.
94-CIV-8558, U.S. District Court, Southern District of New York.
On July 30, 1997 the United States Court of Appeals for the
Second Circuit issued an opinion affirming the terms of the
federal district court's order confirming the settlement of this
lawsuit. The terms of said settlement are described in the Form
8-K.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27.1 Financial Data Schedule containing summary financial
information extracted from the II-A Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the II-B Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the II-C Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the II-D Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the II-E Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the II-F Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.7 Financial Data Schedule containing summary financial
information extracted from the II-G Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.8 Financial Data Schedule containing summary financial
information extracted from the II-H Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
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All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K:
Current Reports on Form 8-K filed during second quarter of
1997:
Date of event: March 20, 1997
Date filed with SEC: April 2, 1997
Item Included:
Item 5 - Other Events
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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 II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
(Registrant)
By: GEODYNE RESOURCES, INC.
General Partner
Date: August 13, 1997 By: /s/Dennis R. Neill
------------------------------
(Signature)
Dennis R. Neill
President
Date: August 13, 1997 By: /s/Patrick M. Hall
-------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-62-
INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership II-A's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership II-B's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership II-C's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership II-D's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership II-E's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership II-F's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.7 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership II-G's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.8 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership II-H's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
All other exhibits are omitted as inapplicable.