SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 1996
Commission File Number:
III-A: 0-18302 III-B: 0-18636 III-C: 0-18634
III-D: 0-18936 III-E: 0-19010 III-F: 0-19102
III-G: 0-19563
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
III-A 73-1352993
III-B 73-1358666
III-C 73-1356542
III-D 73-1357374
III-E 73-1367188
III-F 73-1377737
Oklahoma III-G 73-1377828
- ---------------------------- -----------------------------------
(State or other jurisdiction (I.R.S. Employer Identification 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 III-A
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
------------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 863,274 $ 560,906
Accounts receivable:
General Partner 8,471 -
Oil and gas sales, including
$349,181 due from related
parties in 1995 (Note 2) 546,371 639,787
---------- ----------
Total current assets $1,418,116 $1,200,693
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 5,522,263 6,874,396
DEFERRED CHARGE 278,829 278,829
---------- ----------
$7,219,208 $8,353,918
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 59,513 $ 90,496
Gas imbalance payable 43,854 43,854
---------- ----------
Total current liabilities $ 103,367 $ 134,350
ACCRUED LIABILITY $ 87,624 $ 87,624
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 199,711) ($ 143,923)
Limited Partners, issued and
outstanding, 263,976 units 7,227,928 8,275,867
---------- ----------
Total Partners' capital $7,028,217 $8,131,944
---------- ----------
$7,219,208 $8,353,918
========== ==========
The accompanying notes are an integral
part of these financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ------------
REVENUES:
Oil and gas sales, including
$446,961 of sales to related
parties in 1995 (Note 2) $811,194 $1,007,843
Interest and other income 6,108 5,825
Loss on sale of oil and gas
properties ( 91,366) ( 501)
-------- ----------
$725,936 $1,013,167
COSTS AND EXPENSES:
Lease operating $166,628 $ 192,884
Production tax 50,594 75,077
Depreciation, depletion, and
amortization of oil and gas
properties 295,530 795,268
General and administrative 81,200 74,612
-------- ----------
$593,952 $1,137,841
-------- ----------
NET INCOME (LOSS) $131,984 ($ 124,674)
======== ==========
GENERAL PARTNER - NET INCOME $ 18,115 $ 25,577
======== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $113,869 ($ 150,251)
======== ==========
NET INCOME (LOSS) per unit $ .43 ($ .57)
======== ==========
UNITS OUTSTANDING 263,976 263,976
======== ==========
The accompanying notes are an integral
part of these financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ------------
REVENUES:
Oil and gas sales, including
$1,278,131 of sales to related
parties in 1995 (Note 2) $2,718,110 $2,729,389
Interest and other income 15,928 17,829
Loss on sale of oil and gas
properties ( 91,216) ( 29,006)
---------- ----------
$2,642,822 $2,718,212
COSTS AND EXPENSES:
Lease operating $ 497,018 $ 599,308
Production tax 186,883 219,182
Depreciation, depletion, and
amortization of oil and gas
properties 1,002,017 2,071,245
Impairment provision - 170,000
General and administrative 246,014 238,487
---------- ----------
$1,931,932 $3,298,222
---------- ----------
NET INCOME (LOSS) $ 710,890 ($ 580,010)
========== ==========
GENERAL PARTNER - NET INCOME $ 74,829 $ 60,649
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 636,061 ($ 640,659)
========== ==========
NET INCOME (LOSS) per unit $ 2.41 ($ 2.43)
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying notes are an integral
part of these financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
----------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 710,890 ($ 580,010)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 1,002,017 2,071,245
Impairment provision - 170,000
Loss on sale of oil and gas
properties 91,216 29,006
Increase in accounts receivable -
General Partner ( 8,471) -
(Increase) decrease in accounts
receivable 93,416 ( 40,172)
Increase in deferred charge - ( 46,060)
Increase (decrease) in accounts
payable ( 30,983) 8,238
Increase in accrued liability - 12,375
---------- ----------
Net cash provided by operating
activities $1,858,085 $1,624,622
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 5,766) ($ 32,010)
Proceeds from sale of oil and
gas properties 264,666 20,618
---------- ----------
Net cash provided (used) by
investing activities $ 258,900 ($ 11,392)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,814,617) ($1,691,000)
---------- ----------
Net cash used by financing
activities ($1,814,617) ($1,691,000)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 302,368 ($ 77,770)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 560,906 715,050
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 863,274 $ 637,280
========== ==========
The accompanying notes are an integral
part of these financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 433,857 $ 311,585
Accounts receivable:
General Partner 23,982 -
Oil and gas sales, including
$169,725 due from related
parties in 1995 (Note 2) 316,902 373,676
---------- ----------
Total current assets $ 774,741 $ 685,261
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,937,536 3,648,394
DEFERRED CHARGE 169,089 169,089
---------- ----------
$3,881,366 $4,502,744
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 32,319 $ 49,382
Gas imbalance payable 6,202 6,202
---------- ----------
Total current liabilities $ 38,521 $ 55,584
ACCRUED LIABILITY $ 47,360 $ 47,360
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 98,070) ($ 66,996)
Limited Partners, issued and
outstanding, 138,336 units 3,893,555 4,466,796
---------- ----------
Total Partners' capital $3,795,485 $4,399,800
---------- ----------
$3,881,366 $4,502,744
========== ==========
The accompanying notes are an integral
part of these financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
--------- ----------
REVENUES:
Oil and gas sales, including
$215,953 of sales to related
parties in 1995 (Note 2) $473,499 $550,133
Interest and other income 3,035 2,949
Loss on sale of oil and gas
properties ( 53,397) ( 219)
-------- --------
$423,137 $552,863
COSTS AND EXPENSES:
Lease operating $ 92,928 $ 98,986
Production tax 30,780 41,411
Depreciation, depletion, and
amortization of oil and gas
properties 165,720 366,261
General and administrative 42,685 39,056
-------- --------
$332,113 $545,714
-------- --------
NET INCOME $ 91,024 $ 7,149
======== ========
GENERAL PARTNER - NET INCOME $ 11,028 $ 15,008
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $ 79,996 ($ 7,859)
======== ========
NET INCOME (LOSS) per unit $ .58 ($ .06)
======== ========
UNITS OUTSTANDING 138,336 138,336
======== ========
The accompanying notes are an integral
part of these financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ------------
REVENUES:
Oil and gas sales, including
$604,029 of sales to related
parties in 1995 (Note 2) $1,559,625 $1,518,951
Interest and other income 8,429 9,448
Loss on sale of oil and gas
properties ( 53,334) ( 12,461)
---------- ----------
$1,514,720 $1,515,938
COSTS AND EXPENSES:
Lease operating $ 265,622 $ 309,457
Production tax 110,478 121,939
Depreciation, depletion, and
amortization of oil and gas
properties 558,854 978,515
General and administrative 129,564 124,760
---------- ----------
$1,064,518 $1,534,671
---------- ----------
NET INCOME (LOSS) $ 450,202 ($ 18,733)
========== ==========
GENERAL PARTNER - NET INCOME $ 44,443 $ 38,204
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 405,759 ($ 56,937)
========== ==========
NET INCOME (LOSS) per unit $ 2.93 ($ .41)
========== ==========
UNITS OUTSTANDING 138,336 138,336
========== ==========
The accompanying notes are an integral
part of these financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 450,202 ($ 18,733)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 558,854 978,515
Loss on sale of oil and gas
properties 53,334 12,461
Increase in accounts receivable -
General Partner ( 23,982) -
(Increase) decrease in accounts
receivable 56,774 ( 27,025)
Increase in deferred charge - ( 25,040)
Increase (decrease) in accounts
payable ( 17,063) 4,619
Increase in accrued liability - 4,855
---------- --------
Net cash provided by operating
activities $1,078,119 $929,652
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 22,206) ($ 38,406)
Proceeds from sale of oil and
gas properties 120,876 8,661
---------- --------
Net cash provided (used) by
investing activities $ 98,670 ($ 29,745)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,054,517) ($962,000)
---------- --------
Net cash used by financing
activities ($1,054,517) ($962,000)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 122,272 ($ 62,093)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 311,585 404,255
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 433,857 $342,162
========== ========
The accompanying notes are an integral
part of these financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
------------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 599,115 $ 319,730
Accounts receivable:
General Partner 4,958 -
Oil and gas sales, including
$232,323 due from related
parties in 1995 (Note 2) 456,930 461,693
---------- ----------
Total current assets $1,061,003 $ 781,423
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 5,787,285 6,723,292
DEFERRED CHARGE 67,846 67,846
---------- ----------
$6,916,134 $7,572,561
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 44,570 $ 84,760
Gas imbalance payable 22,554 22,554
---------- ----------
Total current liabilities $ 67,124 $ 107,314
ACCRUED LIABILITY $ 139,809 $ 139,809
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 151,863)($ 125,913)
Limited Partners, issued and
outstanding, 244,536 units 6,861,064 7,451,351
---------- ----------
Total Partners' capital $6,709,201 $7,325,438
---------- ----------
$6,916,134 $7,572,561
========== ==========
The accompanying notes are an integral
part of these financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ----------
REVENUES:
Oil and gas sales, including
$312,531 of sales to related
parties in 1995 (Note 2) $694,017 $529,385
Interest and other income 4,680 4,169
Gain (loss) on sale of oil and
gas properties 31,285 187
-------- --------
$729,982 $533,741
COSTS AND EXPENSES:
Lease operating $123,204 $132,100
Production tax 50,332 32,341
Depreciation, depletion, and
amortization of oil and gas
properties 262,973 543,925
General and administrative 69,817 68,486
-------- --------
$506,326 $776,852
-------- --------
NET INCOME (LOSS) $223,656 ($243,111)
======== ========
GENERAL PARTNER - NET INCOME $ 21,468 $ 9,601
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $202,188 ($252,712)
======== ========
NET INCOME (LOSS) per unit $ .83 ($ 1.03)
======== ========
UNITS OUTSTANDING 244,536 244,536
======== ========
The accompanying notes are an integral
part of these financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ------------
REVENUES:
Oil and gas sales, including
$1,050,045 of sales to related
parties in 1995 (Note 2) $2,309,688 $1,936,797
Interest and other income 11,181 12,156
Gain (loss) on sale of oil and
gas properties 31,311 ( 12,842)
---------- ----------
$2,352,180 $1,936,111
COSTS AND EXPENSES:
Lease operating $ 404,017 $ 446,812
Production tax 166,832 142,738
Depreciation, depletion, and
amortization of oil and gas
properties 880,871 1,943,651
Impairment provision - 304,000
General and administrative 222,156 222,745
---------- ----------
$1,673,876 $3,059,946
---------- ----------
NET INCOME (LOSS) $ 678,304 ($1,123,835)
========== ==========
GENERAL PARTNER - NET INCOME $ 68,591 $ 33,714
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 609,713 ($1,157,549)
========== ==========
NET INCOME (LOSS) per unit $ 2.49 ($ 4.73)
========== ==========
UNITS OUTSTANDING 244,536 244,536
========== ==========
The accompanying notes are an integral
part of these financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
----------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 678,304 ($1,123,835)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 880,871 1,943,651
Impairment provision - 304,000
(Gain) loss on sale of oil and gas
properties ( 31,311) 12,842
Increase in accounts receivable -
General Partner ( 4,958) -
Decrease in accounts receivable 4,763 254,245
Decrease in deferred charge - 6,018
Decrease in accounts payable ( 40,190) ( 22,732)
Decrease in gas imbalance payable - ( 7,360)
Decrease in accrued liability - ( 15,752)
---------- ----------
Net cash provided by operating
activities $1,487,479 $1,351,077
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 13,053) ($ 53,024)
Proceeds from sale of oil and
gas properties 99,500 5,736
---------- ----------
Net cash provided (used) by
investing activities $ 86,447 ($ 47,288)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,294,541) ($1,156,000)
---------- ----------
Net cash used by financing
activities ($1,294,541) ($1,156,000)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 279,385 $ 147,789
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 319,730 216,565
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 599,115 $ 364,354
========== ==========
The accompanying notes are an integral
part of these financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 360,658 $ 169,395
Accounts receivable:
General Partner 3,020 -
Oil and gas sales, including
$186,231 due from related
parties in 1995 (Note 2) 334,581 365,008
---------- ----------
Total current assets $ 698,259 $ 534,403
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,494,305 3,887,916
DEFERRED CHARGE 41,578 41,578
---------- ----------
$4,234,142 $4,463,897
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 53,766 $ 67,198
Gas imbalance payable 9,437 9,437
---------- ----------
Total current liabilities $ 63,203 $ 76,635
ACCRUED LIABILITY $ 174,533 $ 174,533
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 48,572)($ 36,176)
Limited Partners, issued and
outstanding, 131,008 units 4,044,978 4,248,905
---------- ----------
Total Partners' capital $3,996,406 $4,212,729
---------- ----------
$4,234,142 $4,463,897
========== ==========
The accompanying notes are an integral
part of these financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- ----------
REVENUES:
Oil and gas sales, including
$192,355 of sales to related
parties in 1995 (Note 2) $567,772 $401,695
Interest and other income 2,658 3,222
Gain on sale of oil and
gas properties 36,370 75
-------- --------
$606,800 $404,992
COSTS AND EXPENSES:
Lease operating $166,278 $156,737
Production tax 41,391 28,307
Depreciation, depletion, and
amortization of oil and gas
properties 134,379 328,596
General and administrative 38,116 37,266
-------- --------
$380,164 $550,906
-------- --------
NET INCOME (LOSS) $226,636 ($145,914)
======== ========
GENERAL PARTNER - NET INCOME $ 16,574 $ 5,848
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $210,062 ($151,762)
======== ========
NET INCOME (LOSS) per unit $ 1.60 ($ 1.16)
======== ========
UNITS OUTSTANDING 131,008 131,008
======== ========
The accompanying notes are an integral
part of these financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- -----------
REVENUES:
Oil and gas sales, including
$611,001 of sales to related
parties in 1995 (Note 2) $1,665,188 $1,426,959
Interest and other income 6,531 7,324
Gain on sale of oil and
gas properties 36,370 75
---------- ----------
$1,708,089 $1,434,358
COSTS AND EXPENSES:
Lease operating $ 479,936 $ 473,183
Production tax 118,072 104,187
Depreciation, depletion, and
amortization of oil and gas
properties 407,855 1,108,886
General and administrative 120,057 123,193
---------- ----------
$1,125,920 $1,809,449
---------- ----------
NET INCOME (LOSS) $ 582,169 ($ 375,091)
========== ==========
GENERAL PARTNER - NET INCOME $ 45,096 $ 25,601
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 537,073 ($ 400,692)
========== ==========
NET INCOME (LOSS) per unit $ 4.10 ($ 3.06)
========== ==========
UNITS OUTSTANDING 131,008 131,008
========== ==========
The accompanying notes are an integral
part of these financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
-------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $582,169 ($ 375,091)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 407,855 1,108,886
Gain on sale of oil and gas
properties ( 36,370) ( 75)
Increase in accounts receivable -
General Partner ( 3,020) -
Decrease in accounts receivable 30,427 18,043
Decrease in deferred charge - 2,713
Decrease in accounts payable ( 13,432) ( 37,675)
Decrease in accrued liability - ( 26,778)
-------- ----------
Net cash provided by operating
activities $967,629 $ 690,023
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 15,057) ($ 7,622)
Proceeds from sale of oil and gas
properties 37,183 78
-------- ----------
Net cash provided (used) by
investing activities $ 22,126 ($ 7,544)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($798,492) ($ 663,000)
-------- ----------
Net cash used by financing
activities ($798,492) ($ 663,000)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $191,263 $ 19,479
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 169,395 215,899
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $360,658 $ 235,378
======== ==========
The accompanying notes are an integral
part of these financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,145,272 $ 665,050
Accounts receivable:
General Partner 18,745 -
Oil and gas sales, including
$574,916 due from related
parties in 1995 (Note 2) 1,365,550 1,574,465
----------- -----------
Total current assets $ 2,529,567 $ 2,239,515
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 13,016,180 14,521,982
DEFERRED CHARGE 351,769 351,769
----------- -----------
$15,897,516 $17,113,266
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 352,854 $ 388,772
Gas imbalance payable 120,272 120,272
----------- -----------
Total current liabilities $ 473,126 $ 509,044
ACCRUED LIABILITY $ 412,184 $ 412,184
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 179,610) ($ 127,750)
Limited Partners, issued and
outstanding, 418,266 units 15,191,816 16,319,788
----------- -----------
Total Partners' capital $15,012,206 $16,192,038
----------- -----------
$15,897,516 $17,113,266
=========== ===========
The accompanying notes are an integral
part of these financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ------------
REVENUES:
Oil and gas sales, including
$440,846 of sales to related
parties in 1995 (Note 2) $2,529,876 $1,952,443
Interest and other income 9,143 7,050
Gain on sale of oil and gas
properties 23,687 1,701
---------- ----------
$2,562,706 $1,961,194
COSTS AND EXPENSES:
Lease operating $ 936,336 $ 967,944
Production tax 183,359 139,189
Depreciation, depletion, and
amortization of oil and gas
properties 564,377 848,214
General and administrative 119,439 119,363
---------- ----------
$1,803,511 $2,074,710
---------- ----------
NET INCOME (LOSS) $ 759,195 ($ 113,516)
========== ==========
GENERAL PARTNER - NET INCOME $ 59,269 $ 28,253
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 699,926 ($ 141,769)
========== ==========
NET INCOME (LOSS) per unit $ 1.67 ($ .34)
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying notes are an integral
part of these financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ------------
REVENUES:
Oil and gas sales, including
$1,409,274 of sales to related
parties in 1995 (Note 2) $6,685,261 $6,527,606
Interest and other income 25,319 17,277
Gain (loss) on sale of oil and
gas properties 23,687 ( 11,717)
---------- ----------
$6,734,267 $6,533,166
COSTS AND EXPENSES:
Lease operating $2,707,858 $3,078,775
Production tax 465,768 490,690
Depreciation, depletion, and
amortization of oil and gas
properties 1,528,296 2,717,500
General and administrative 379,825 401,244
---------- ----------
$5,081,747 $6,688,209
---------- ----------
NET INCOME (LOSS) $1,652,520 ($ 155,043)
========== ==========
GENERAL PARTNER - NET INCOME $ 142,492 $ 100,948
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $1,510,028 ($ 255,991)
========== ==========
NET INCOME (LOSS) per unit $ 3.61 ($ 0.61)
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying notes are an integral
part of these financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $1,652,520 ($ 155,043)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 1,528,296 2,717,500
(Gain) loss on sale of oil and
gas properties ( 23,687) 11,717
Increase in accounts receivable -
General Partner ( 18,745) -
Decrease in accounts receivable 208,915 10,048
Decrease in deferred charge - 45,847
Decrease in accounts payable ( 35,918) ( 482,387)
Decrease in accrued liability - ( 60,174)
---------- ----------
Net cash provided by operating
activities $3,311,381 $2,087,508
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 26,766) ($ 342,725)
Proceeds from sale of oil and
gas properties 27,959 4,248
---------- ----------
Net cash provided (used) by
investing activities $ 1,193 ($ 338,477)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,832,352) ($2,287,000)
---------- ----------
Net cash used by financing
activities ($2,832,352) ($2,287,000)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 480,222 ($ 537,969)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 665,050 1,164,489
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,145,272 $ 626,520
========== ==========
The accompanying notes are an integral
part of these financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 536,595 $ 324,616
Accounts receivable:
General Partner 2,786 -
Oil and gas sales, including
$131,943 due from related
parties in 1995 (Note 2) 494,726 413,249
---------- ----------
Total current assets $1,034,107 $ 737,865
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 7,477,563 8,463,035
DEFERRED CHARGE 237,269 237,269
---------- ----------
$8,748,939 $9,438,169
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 137,266 $ 163,289
Gas imbalance payable 97,233 97,233
---------- ----------
Total current liabilities $ 234,499 $ 260,522
ACCRUED LIABILITY $ 261,411 $ 261,411
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 103,812)($ 70,576)
Limited Partners, issued and
outstanding, 221,484 units 8,356,841 8,986,812
---------- ----------
Total Partners' capital $8,253,029 $8,916,236
---------- ----------
$8,748,939 $9,438,169
========== ==========
The accompanying notes are an integral
part of these financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- -----------
REVENUES:
Oil and gas sales, including
$199,906 of sales to related
parties in 1995 (Note 2) $801,543 $651,456
Interest and other income 3,735 782
Gain on sale of oil and gas
properties 5,951 1,599
-------- --------
$811,229 $653,837
COSTS AND EXPENSES:
Lease operating $180,805 $328,231
Production tax 34,058 35,515
Depreciation, depletion, and
amortization of oil and gas
properties 307,634 502,929
General and administrative 63,302 63,044
-------- --------
$585,799 $929,719
-------- --------
NET INCOME (LOSS) $225,430 ($275,882)
======== ========
GENERAL PARTNER - NET INCOME $ 23,135 $ 6,323
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $202,295 ($282,205)
======== ========
NET INCOME (LOSS) per unit $ .91 ($ 1.27)
======== ========
UNITS OUTSTANDING 221,484 221,484
======== ========
The accompanying notes are an integral
part of these financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ------------
REVENUES:
Oil and gas sales, including
$680,953 of sales to related
parties in 1995 (Note 2) $2,257,857 $2,128,643
Interest and other income 8,839 3,096
Gain on sale of oil and gas
properties 5,951 11,302
---------- ----------
$2,272,647 $2,143,041
COSTS AND EXPENSES:
Lease operating $ 813,473 $1,096,332
Production tax 112,583 124,698
Depreciation, depletion, and
amortization of oil and gas
properties 957,920 1,573,454
Impairment provision - 219,000
General and administrative 201,404 205,636
---------- ----------
$2,085,380 $3,219,120
---------- ----------
NET INCOME (LOSS) $ 187,267 ($1,076,079)
========== ==========
GENERAL PARTNER - NET INCOME $ 47,238 $ 17,894
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 140,029 ($1,093,973)
========== ==========
NET INCOME (LOSS) per unit $ .63 ($ 4.94)
========== ==========
UNITS OUTSTANDING 221,484 221,484
========== ==========
The accompanying notes are an integral
part of these financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
----------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 187,267 ($1,076,079)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 957,920 1,573,454
Impairment provision - 219,000
Gain on sale of oil and gas
properties ( 5,951) ( 11,302)
Increase in accounts receivable -
General Partner ( 2,786) -
Increase in accounts receivable ( 81,477) ( 2,321)
Increase in deferred charge - ( 15,237)
Decrease in accounts payable ( 26,023) ( 172,154)
Increase in accrued liability - 20,385
---------- ----------
Net cash provided by operating
activities $1,028,950 $ 535,746
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 5,535) ($ 323,135)
Proceeds from sale of oil and
gas properties 39,038 26,900
---------- ----------
Net cash provided (used) by
investing activities $ 33,503 ($ 296,235)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 850,474) ($ 346,800)
---------- ----------
Net cash used by financing
activities ($ 850,474) ($ 346,800)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 211,979 ($ 107,289)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 324,616 302,171
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 536,595 $ 194,882
========== ==========
The accompanying notes are an integral
part of these financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1996 1995
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 338,773 $ 188,474
Accounts receivable:
General Partner 2,101 -
Oil and gas sales, including
$69,792 due from related
parties in 1995 (Note 2) 313,820 258,324
---------- ----------
Total current assets $ 654,694 $ 446,798
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 4,201,149 4,820,243
DEFERRED CHARGE 148,234 148,234
---------- ----------
$5,004,077 $5,415,275
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 83,200 $ 99,578
Gas imbalance payable 48,600 48,600
---------- ----------
Total current liabilities $ 131,800 $ 148,178
ACCRUED LIABILITY $ 157,334 $ 157,334
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 62,966) ($ 26,964)
Limited Partners, issued and
outstanding, 121,925 units 4,777,909 5,136,727
---------- ----------
Total Partners' capital $4,714,943 $5,109,763
---------- ----------
$5,004,077 $5,415,275
========== ==========
The accompanying notes are an integral
part of these financial statements.
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
--------- ----------
REVENUES:
Oil and gas sales, including
$105,353 of sales to related
parties in 1995 (Note 2) $506,885 $411,277
Interest and other income 2,212 820
Gain on sale of oil and gas
properties 6,500 2,080
-------- --------
$515,597 $414,177
COSTS AND EXPENSES:
Lease operating $123,955 $211,654
Production tax 20,931 22,057
Depreciation, depletion, and
amortization of oil and gas
properties 192,679 290,093
General and administrative 34,858 34,813
-------- --------
$372,423 $558,617
-------- --------
NET INCOME (LOSS) $143,174 ($144,440)
======== ========
GENERAL PARTNER - NET INCOME $ 14,623 $ 4,382
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $128,551 ($148,822)
======== ========
NET INCOME (LOSS) per unit $ 1.05 ($ 1.22)
======== ========
UNITS OUTSTANDING 121,925 121,925
======== ========
The accompanying notes are an integral
part of these financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
----------- -----------
REVENUES:
Oil and gas sales, including
$357,181 of sales to related
parties in 1995 (Note 2) $1,430,150 $1,334,086
Interest and other income 4,867 2,033
Gain on sale of oil and gas
properties 10,996 10,853
---------- ----------
$1,446,013 $1,346,972
COSTS AND EXPENSES:
Lease operating $ 539,372 $ 692,943
Production tax 70,037 74,756
Depreciation, depletion, and
amortization of oil and gas
properties 597,397 896,862
Impairment provision - 150,000
General and administrative 110,960 114,187
---------- ----------
$1,317,766 $1,928,748
---------- ----------
NET INCOME (LOSS) $ 128,247 ($ 581,776)
========== ==========
GENERAL PARTNER - NET INCOME $ 30,065 $ 12,786
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) $ 98,182 ($ 594,562)
========== ==========
NET INCOME (LOSS) per unit $ .81 ($ 4.88)
========== ==========
UNITS OUTSTANDING 121,925 121,925
========== ==========
The accompanying notes are an integral
part of these financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
1996 1995
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $128,247 ($581,776)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 597,397 896,862
Impairment provision - 150,000
Gain on sale of oil and gas
properties ( 10,996) ( 10,853)
Increase in accounts receivable -
General Partner ( 2,101) -
(Increase) decrease in accounts
receivable ( 55,496) 3,024
Increase in deferred charge - ( 13,021)
Decrease in accounts payable ( 16,378) ( 92,571)
Increase in accrued liability - 16,882
-------- --------
Net cash provided by operating
activities $640,673 $368,547
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 11,628) ($172,175)
Proceeds from sale of oil and
gas properties 44,321 20,007
-------- --------
Net cash provided (used) by
investing activities $ 32,693 ($152,168)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($523,067) ($210,000)
-------- --------
Net cash used by financing
activities ($523,067) ($210,000)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $150,299 $ 6,379
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 188,474 157,841
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $338,773 $164,220
======== ========
The accompanying notes are an integral
part of these financial statements.
-29-
GEODYNE ENERGY INCOME PROGRAM III LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 1996, statements of
operations for the three and nine months ended September 30, 1996
and 1995 and statements of cash flows for the nine months ended
September 30, 1996 and 1995 have been prepared by Geodyne
Resources, Inc., the general partner of the Partnerships (the
"General Partner"), without audit. In the opinion of management
the financial statements referred to above include all necessary
adjustments, consisting of normal recurring adjustments, to
present fairly the financial position at September 30, 1996, the
results of operations for the three and nine months ended
September 30, 1996 and 1995 and the cash flows for the nine
months ended September 30, 1996 and 1995.
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, 1995. The results of
operations for the period ended September 30, 1996 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. 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 are held by
-30-
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.
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 or
credited to accumulated depreciation.
Effective October 1, 1995, the Partnerships adopted the
requirements of Statement of Financial Accounting Standards
("SFAS") No. 121, "Accounting for the Impairment of Long Lived
Assets and Assets Held for Disposal". 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. Under the Partnerships' prior
impairment policy if the net oil and gas properties as a whole
exceeded the estimated undiscounted future net revenues of the
properties, a valuation allowance would be recorded for the
excess amount. The risk that the Partnerships will be required
to record such impairment provisions in the future increases when
oil and gas prices are depressed.
If net oil and gas properties recorded by a Partnership exceed
the estimated undiscounted future net revenues of the properties,
a provision to reduce the carrying value of oil and gas
properties is recorded for the excess amount. The III-A, III-C,
III-F and III-G Partnerships recorded such provisions in the
amounts of $170,000, $304,000, $219,000 and $150,000,
respectively, for the nine months ended September 30, 1995. No
other provisions to reduce the carrying value of oil and gas
properties were recorded during the three or nine months ended
September 30, 1996.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnership Agreements governing the Partnerships 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 three
-31-
months ended September 30, 1996 the following payments were made
to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ----------------- --------------
III-A $11,732 $ 69,468
III-B 6,280 36,405
III-C 5,464 64,353
III-D 3,640 34,476
III-E 9,369 110,070
III-F 5,018 58,284
III-G 2,773 32,085
During the nine months ended September 30, 1996 the following
payments were made to the General Partner or its affiliates by
the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ----------------- --------------
III-A $37,610 $208,404
III-B 20,349 109,215
III-C 29,097 193,059
III-D 16,629 103,428
III-E 49,615 330,210
III-F 26,552 174,852
III-G 14,705 96,255
Affiliated companies are the operator of certain of the
Partnerships' properties and their policy is to bill the
Partnerships for all customary charges and cost reimbursements
associated with their activities, together with any compressor
rentals, consulting, or other services provided.
During 1995, the Partnerships sold gas at market prices to
Premier Gas Company ("Premier") and Premier then resold such gas
to third parties at market prices. Premier was an affiliate of
the Partnerships until December 6, 1995. The following is a
summary of these sales during the three and nine months ended
September 30, 1995 and the amount of the Partnerships' accrued
gas sales due from Premier at December 31, 1995.
-32-
Gas Sales Gas Sales Accrued Gas Sales
------------------ ------------------ -----------------
3 Months Ended 9 Months Ended As of
September 30, 1995 September 30, 1995 December 31, 1995
------------------ ------------------ -----------------
III-A $446,961 $1,278,131 $349,181
III-B 215,953 604,029 169,725
III-C 312,531 1,050,045 232,323
III-D 192,355 611,001 186,231
III-E 440,846 1,409,274 574,916
III-F 199,906 680,953 131,943
III-G 105,353 357,181 69,792
-33-
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
GENERAL
- -------
The Partnerships are engaged in the business of owning interests
in producing oil and gas properties located in the continental
United States. In general, a Partnership acquired producing
properties and has not engaged in development drilling or
enhanced recovery projects, except as an incidental part of the
management of the producing properties acquired. Therefore, the
economic life of each Partnership is limited to the period of
time required to fully produce its acquired oil and gas reserves.
The net proceeds from the oil and gas operations are distributed
to the Limited Partners and the General Partner in accordance
with the terms of the Partnership Agreements governing the
Partnerships.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned
their rights as Limited Partners, having made capital
contributions in the amounts and on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
III-A November 21, 1989 $26,397,600
III-B January 24, 1990 13,833,600
III-C February 27, 1990 24,453,600
III-D September 5, 1990 13,100,800
III-E December 26, 1990 41,826,600
III-F March 7, 1991 22,148,400
III-G September 20, 1991 12,192,500
In general, the amount of funds available for acquisition of
producing properties was equal to the capital contributions of
the Limited Partners, less 15% for sales commissions and
organization and management fees. All of the Partnerships have
fully invested their capital contributions.
Net proceeds from the Partnerships' operations less necessary
operating capital are distributed to the Partnerships' 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. Over the last
several years, the domestic energy industry and the Partnerships
-34-
have contended with volatile, but generally low, oil and gas
prices. Over the last few years, the oil and gas market appears
to have moved from periods of relative stability in supply and
demand to excess supply or weakened demand. These trends have
led to the volatility in pricing and demand noted over the past
years. While the General Partner cannot predict future pricing
trends, it believes the working capital available as of September
30, 1996 and the net revenue generated from future operations
will provide sufficient working capital to meet current and
future obligations of the Partnerships.
During the nine months ended September 30, 1996 the following
Partnerships sold their interests in several oil and gas
properties. Proceeds from such sales were as follows:
Proceeds for
Nine Months Ended
Partnership September 30, 1996
III-A $264,666
III-B 120,876
III-C 99,500
III-D 37,183
III-F 39,038
III-G 44,321
Such proceeds will be included in the determination of the amount
of the cash distributions to be paid to the Limited Partners of
such Partnerships during November 1996.
RESULTS OF OPERATIONS
- ---------------------
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".
Generally, the Partnerships' operations during the nine months
ended September 30, 1996 reflect an increase in total revenues
compared to the same periods in 1995. Management believes this
increase generally resulted from an increase in oil and gas
prices. Refer to "Liquidity and Capital Resources" above for a
discussion of factors impacting prices.
-35-
PARTNERSHIP III-A
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
-------- ----------
Oil and gas sales $811,194 $1,007,843
Oil and gas production expenses $217,222 $ 267,961
Barrels produced 10,526 16,715
Mcf produced 310,142 517,793
Average price/Bbl $ 21.53 $ 17.74
Average price/Mcf $ 1.88 $ 1.37
As shown in the table above, total oil and gas sales decreased
$196,649 (19.5%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
decrease, $523,633 was related to the decreases in the volumes of
oil and natural gas sold, partially offset by a $327,424 increase
related to the increases in the average prices of oil and natural
gas sold. Volumes of oil and natural gas sold decreased by 6,189
barrels and 207,651 Mcf, respectively, for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. The decrease in the volumes of oil sold
resulted primarily from (i) the shutting-in of one well during
the three months ended September 30, 1996 due to a workover
performed in order to improve the recovery of reserves, (ii) the
normal declines in production due to diminished oil reserves on
three wells during the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995, and (iii)
a positive prior period volume adjustment made by the purchaser
on one well during the three months ended September 30, 1995.
The decrease in the volumes of natural gas sold resulted
primarily from (i) the normal declines in production due to
diminished natural gas reserves on several wells during the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995, (ii) a positive prior period volume
adjustment made by the purchaser on one well during the three
months ended September 30, 1995, and (iii) the sale of several
natural gas producing wells during 1996. Average oil and natural
gas prices increased to $21.53 per barrel and $1.88 per Mcf,
respectively, for the three months ended September 30, 1996 from
$17.74 per barrel and $1.37 per Mcf, respectively, for the three
months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $50,739 for the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. This decrease resulted primarily from
(i) the decreases in the volumes of oil and natural gas sold
-36-
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995 and (ii) the decrease
in lease operating expenses due to the sale of several wells
during 1996. As a percentage of oil and gas sales, these
expenses remained relatively constant at 26.8% for the three
months ended September 30, 1996 as compared to 26.6% for the
three months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $499,738 for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. This decrease resulted primarily from (i)
significant upward revisions in the estimates of remaining oil
and natural gas reserves at December 31, 1995, (ii) decreases in
the volumes of oil and natural gas sold during the three months
ended September 30, 1996 as compared to the three months ended
September 30, 1995, and (iii) a decrease in capitalized costs due
to an impairment provision recognized in the fourth quarter of
1995. As a percentage of oil and gas sales, this expense
decreased to 36.4% for the three months ended September 30, 1996
from 78.9% for the three months ended September 30, 1995. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization related to the upward
reserve revisions and impairment provision discussed above and
the increases in the average prices of oil and natural gas sold
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995.
General and administrative expenses increased $6,588 for the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995. This increase resulted
primarily from an increase in legal and other professional fees
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995. As a percentage of
oil and gas sales, these expenses increased to 10.0% for the
three months ended September 30, 1996 from 7.4% for the three
months ended September 30, 1995. This percentage increase was
primarily due to the decreases in the volumes of oil and natural
gas sold during the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995.
-37-
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
-------------------------------
1996 1995
---------- ----------
Oil and gas sales $2,718,110 $2,729,389
Oil and gas production expenses $ 683,901 $ 818,490
Barrels produced 35,808 44,684
Mcf produced 1,050,856 1,341,673
Average price/Bbl $ 20.22 $ 17.66
Average price/Mcf $ 1.90 $ 1.45
As shown in the table above, total oil and gas sales remained
relatively constant for the nine months ended September 30, 1996
as compared to the nine months ended September 30, 1995. While
the average prices of oil and natural gas sold increased for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995, any resulting increase in oil
and natural gas sales was offset by decreases in the volumes of
oil and natural gas sold. Volumes of oil and natural gas sold
decreased by 8,876 barrels and 290,817 Mcf, respectively, for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. The decrease in the volumes of
oil sold resulted primarily from (i) the shutting-in of one well
during the nine months ended September 30, 1996 due to a workover
performed in order to improve the recovery of reserves, (ii) the
normal declines in production due to diminished oil reserves on
three wells during the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995, and (iii) a
positive prior period volume adjustment made by the purchaser on
one well during the nine months ended September 30, 1995. The
decrease in the volumes of natural gas sold resulted primarily
from (i) the normal declines in production due to diminished
natural gas reserves on several wells during the nine months
ended September 30, 1996 as compared to the nine months ended
September 30, 1995, (ii) a positive prior period volume
adjustment made by the purchaser on one well during the nine
months ended September 30, 1995, and (iii) the sale of several
wells during the nine months ended September 30, 1996. Average
oil and natural gas prices increased to $20.22 per barrel and
$1.90 per Mcf, respectively, for the nine months ended September
30, 1996 from $17.66 per barrel and $1.45 per Mcf, respectively,
for the nine months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $134,589 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease was primarily due to the
decrease in lease operating expenses due to the sale of several
-38-
wells during the nine months ended September 30, 1996. As a
percentage of oil and gas sales, these expenses decreased to
25.2% for the nine months ended September 30, 1996 from 30.0% for
the nine months ended September 30, 1995. This percentage
decrease was primarily due to the increases in the average prices
of oil and natural gas sold during the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $1,069,228 for the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995. This decrease resulted primarily from (i) significant
upward revisions in the estimates of remaining oil and natural
gas reserves at December 31, 1995, (ii) decreases in the volumes
of oil and natural gas sold during the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995, and (iii) a decrease in capitalized costs due to an
impairment provision recognized in the fourth quarter of 1995.
As a percentage of oil and gas sales, this expense decreased to
36.9% for the nine months ended September 30, 1996 from 75.9% for
the nine months ended September 30, 1995. This percentage
decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization related to the reserve
revisions and impairment provision discussed above and the
increases in the average prices of oil and natural gas sold
during the nine months ended September 30, 1996 as compared to
the nine months ended September 30, 1995.
A provision to reduce the carrying value of the III-A
Partnership's oil and gas properties at September 30, 1995 was
necessary due to the unamortized costs of oil and gas properties
exceeding the undiscounted value of future net revenues from the
oil and gas properties. This provision was due to the declining
gas prices used in projecting future net revenues at September
30, 1995. No similar provision was necessary for the nine months
ended September 30, 1996.
General and administrative expenses increased $7,527 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This increase primarily resulted from
an increase in legal and other professional fees during the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. As a percentage of oil and gas sales,
these expenses remained relatively constant at 9.1% for the nine
months ended September 30, 1996 as compared to 8.7% for the nine
months ended September 30, 1995.
The Limited Partners have received cash distributions through
September 30, 1996 totaling $19,815,701 or 75.07% of Limited
Partners' capital contributions.
-39-
PARTNERSHIP III-B
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
-------- --------
Oil and gas sales $473,499 $550,133
Oil and gas production expenses $123,708 $140,397
Barrels produced 8,474 11,762
Mcf produced 156,741 249,303
Average price/Bbl $ 21.57 $ 17.59
Average price/Mcf $ 1.85 $ 1.38
As shown in the table above, total oil and gas sales decreased
$76,634 (13.9%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
decrease, $242,162 was related to the decreases in the volumes of
oil and natural gas sold, partially offset by a $163,985 increase
related to the increases in the average prices of oil and natural
gas sold. Volumes of oil and natural gas sold decreased by 3,288
barrels and 92,562 Mcf, respectively, for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. The decrease in the volumes of oil sold
resulted primarily from (i) the shutting-in of one well during
the three months ended September 30, 1996 due to a workover
performed in order to improve the recovery of reserves, (ii) the
normal declines in production due to diminished oil reserves on
several wells during the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995, and (iii)
a positive prior period volume adjustment made by the purchaser
on one well during the three months ended September 30, 1995.
The decrease in the volumes of natural gas sold resulted
primarily from (i) the normal declines in production due to
diminished natural gas reserves on several wells during the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995, (ii) a positive prior period volume
adjustment made by the purchaser on one well during the three
months ended September 30, 1995, and (iii) the sale of several
wells during 1996. Average oil and natural gas prices increased
to $21.57 per barrel and $1.85 per Mcf, respectively, for the
three months ended September 30, 1996 from $17.59 per barrel and
$1.38 per Mcf, respectively, for the three months ended September
30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $16,689 for the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. This decrease resulted primarily from
the decreases in the volumes of oil and natural gas sold during
-40-
the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses remained relatively constant at
26.1% for the three months ended September 30, 1996 as compared
to 25.5% for the three months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $200,541 for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. This decrease resulted primarily from (i)
significant upward revisions in the estimates of remaining oil
and natural gas reserves at December 31, 1995, (ii) decreases in
the volumes of oil and natural gas sold during the three months
ended September 30, 1996 as compared to the three months ended
September 30, 1995, and (iii) a decrease in capitalized costs due
to an impairment provision recognized in the fourth quarter of
1995. As a percentage of oil and gas sales, this expense
decreased to 35.0% for the three months ended September 30, 1996
from 66.6% for the three months ended September 30, 1995. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization related to the reserve
revisions and impairment provision discussed above and the
increases in the average prices of oil and natural gas sold
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995.
General and administrative expenses increased $3,629 for the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995. This increase resulted
primarily from an increase in legal and other professional fees
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995. As a percentage of
oil and gas sales, these expenses increased to 9.0% for the three
months ended September 30, 1996 from 7.1% for the three months
ended September 30, 1995. This percentage increase was primarily
due to the decreases in the volumes of oil and natural gas sold
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995.
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
-------------------------------
1996 1995
---------- ----------
Oil and gas sales $1,559,625 $1,518,951
Oil and gas production expenses $ 376,100 $ 431,396
Barrels produced 27,882 32,038
Mcf produced 532,735 662,367
Average price/Bbl $ 20.30 $ 17.70
Average price/Mcf $ 1.87 $ 1.44
-41-
As shown in the table above, total oil and gas sales increased
$40,675 (2.7%) for the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995. Of this
increase, $368,117 was related to the increases in the average
prices of oil and natural gas sold, partially offset by a
$326,779 decrease related to the decreases in the volumes of oil
and natural gas sold. Volumes of oil and natural gas sold
decreased by 4,156 barrels and 129,632 Mcf, respectively, for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. The decrease in the volumes of
natural gas sold resulted primarily from (i) the normal declines
in production due to diminished natural gas reserves on several
wells during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995, (ii) the sale of
several wells during the nine months ended September 30, 1996,
and (iii) positive prior period volume adjustments made by the
purchasers on two wells during the nine months ended September
30, 1995. Average oil and natural gas prices increased to $20.30
per barrel and $1.87 per Mcf, respectively, for the nine months
ended September 30, 1996 from $17.70 per barrel and $1.44 per
Mcf, respectively, for the nine months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $55,296 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease resulted primarily from
(i) a decrease in equipment rental charges on one well during the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995, and (ii) the decrease in lease
operating expenses due to the sale of several wells during the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses decreased to 24.1% for the nine months
ended September 30, 1996 from 28.4% for the nine months ended
September 30, 1995. This percentage decrease was primarily due
to the increases in the average prices of oil and natural gas
sold during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $419,661 for the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
This decrease resulted primarily from (i) significant upward
revisions in the estimates of remaining oil and natural gas
reserves at December 31, 1995, (ii) decreases in the volumes of
oil and natural gas sold during the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995,
and (iii) a decrease in capitalized costs due to an impairment
provision recognized in the fourth quarter of 1995. As a
percentage of oil and gas sales, this expense decreased to 35.8%
for the nine months ended September 30, 1996 from 64.4% for the
nine months ended September 30, 1995. This percentage decrease
was primarily due to the dollar decrease in depreciation,
-42-
depletion, and amortization related to the reserve revisions and
impairment provision discussed above and the increases in the
average prices of oil and natural gas sold during the nine months
ended September 30, 1996 as compared to the nine months ended
September 30, 1995.
General and administrative expenses increased by $4,804 for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. This increase resulted
primarily from an increase in legal and other professional fees
during the nine months ended September 30, 1996 as compared to
the nine months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses remained relatively constant at
8.3% for the nine months ended September 30, 1996 as compared to
8.2% for the nine months ended September 30, 1995.
The Limited Partners have received cash distributions through
September 30, 1996 totaling $11,585,353 or 83.75% of Limited
Partners' capital contributions.
PARTNERSHIP III-C
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
-------- --------
Oil and gas sales $694,017 $529,385
Oil and gas production expenses $173,536 $164,441
Barrels produced 3,938 6,523
Mcf produced 325,447 330,042
Average price/Bbl $ 22.23 $ 16.12
Average price/Mcf $ 1.86 $ 1.29
As shown in the table above, total oil and gas sales increased
$164,632 (31.1%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
increase, $227,980 was related to the increases in the average
prices of oil and natural gas sold, partially offset by a $57,465
decrease related to the decrease in the volumes of oil sold.
Volumes of oil and natural gas sold decreased by 2,585 barrels
and 4,595 Mcf, respectively, for the three months ended September
30, 1996 as compared to the three months ended September 30,
1995. The decrease in the volumes of oil sold resulted primarily
from the normal declines in production due to diminished oil
reserves on several wells during the three months ended September
30, 1996 as compared to the three months ended September 30,
1995. Average oil and natural gas prices increased to $22.23 per
barrel and $1.86 per Mcf, respectively, for the three months
-43-
ended September 30, 1996 from $16.12 per barrel and $1.29 per
Mcf, respectively, for the three months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $9,095 for the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. This increase resulted primarily from
increases in production taxes associated with the increases in
the average prices of oil and natural gas sold during the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. As a percentage of oil and gas sales,
these expenses decreased to 25.0% for the three months ended
September 30, 1996 from 31.1% for the three months ended
September 30, 1995. This percentage decrease was primarily due
to the increases in the average prices of oil and natural gas
sold during the three months ended September 30, 1996 as compared
to the three months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $280,952 for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. This decrease resulted primarily from (i)
significant upward revisions in the estimates of remaining oil
and natural gas reserves at December 31, 1995, (ii) decreases in
the volumes of oil and natural gas sold during the three months
ended September 30, 1996 as compared to the three months ended
September 30, 1995, and (iii) a decrease in capitalized costs due
to an impairment provision recognized in the fourth quarter of
1995. As a percentage of oil and gas sales, this expense
decreased to 37.9% for the three months ended September 30, 1996
from 102.7% for the three months ended September 30, 1995. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization related to the reserve
revisions and impairment provision discussed above and the
increases in the average prices of oil and natural gas sold
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses decreased to 10.1% for the three
months ended September 30, 1996 from 12.9% for the three months
ended September 30, 1995. This percentage decrease was primarily
due to the increases in the average prices of oil and natural gas
sold during the three months ended September 30, 1996 as compared
to the three months ended September 30, 1995.
-44-
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
-------------------------------
1996 1995
---------- ----------
Oil and gas sales $2,309,688 $1,936,797
Oil and gas production expenses $ 570,849 $ 589,550
Barrels produced 18,618 20,509
Mcf produced 1,057,587 1,196,163
Average price/Bbl $ 19.97 $ 17.28
Average price/Mcf $ 1.83 $ 1.32
As shown in the table above, total oil and gas sales increased
$372,891 (19.3%) for the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995. Of this
increase, $665,212 was related to the increases in the average
prices of oil and natural gas sold, partially offset by a
$291,357 decrease related to the decrease in the volumes of oil
sold. Volumes of oil and natural gas sold decreased by 1,891
barrels and 138,576 Mcf, respectively, for the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995. Average oil and natural gas prices increased to $19.97
per barrel and $1.83 per Mcf, respectively, for the nine months
ended September 30, 1996 from $17.28 per barrel and $1.32 per
Mcf, respectively, for the nine months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $18,701 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease resulted primarily from
(i) a decrease in equipment rental charges on one well during the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995, (ii) prior period adjustments
made by the operator during the nine months ended September 30,
1995 for compression expenses on several wells, and (iii) the
decrease in lease operating expenses due to the sale of three
wells during the nine months ended September 30, 1996. As a
percentage of oil and gas sales, these expenses decreased to
24.7% for the nine months ended September 30, 1996 as compared to
30.4% for the nine months ended September 30, 1995. This
percentage decrease was primarily due to the increases in the
average prices of oil and natural gas sold during the nine months
ended September 30, 1996 as compared to the nine months ended
September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $1,062,780 for the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995. This decrease resulted primarily from (i) significant
upward revisions in the estimates of remaining oil and natural
-45-
gas reserves at December 31, 1995, (ii) decreases in the volumes
of oil and natural gas sold during the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995, and (iii) a decrease in capitalized costs due to an
impairment provision recognized in the fourth quarter of 1995.
As a percentage of oil and gas sales, this expense decreased to
38.1% for the nine months ended September 30, 1996 from 100.4%
for the nine months ended September 30, 1995. This percentage
decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization related to the reserve
revisions and impairment provision discussed above and the
increases in the average prices of oil and natural gas sold
during the nine months ended September 30, 1996 as compared to
the nine months ended September 30, 1995.
A provision to reduce the carrying value of the III-C
Partnership's oil and gas properties at September 30, 1995 was
necessary due to the unamortized costs of oil and gas properties
exceeding the undiscounted value of future net revenues from the
oil and gas properties. This provision was due to the declining
gas prices used in projecting future net revenues at September
30, 1995. No similar provision was necessary for the nine months
ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1996 as compared to the
nine months ended September 30, 1995. As a percentage of oil and
gas sales, these expenses decreased to 9.6% for the nine months
ended September 30, 1996 from 11.5% for the nine months ended
September 30, 1995. This percentage decrease was primarily due
to increases in the average prices of oil and natural gas sold
during the nine months ended September 30, 1996 as compared to
the nine months ended September 30, 1995.
The Limited Partners have received cash distributions through
September 30, 1996 totaling $12,353,795 or 50.52% of Limited
Partners' capital contributions.
-46-
PARTNERSHIP III-D
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
-------- --------
Oil and gas sales $567,772 $401,695
Oil and gas production expenses $207,669 $185,044
Barrels produced 10,991 9,797
Mcf produced 186,913 202,006
Average price/Bbl $ 20.62 $ 15.85
Average price/Mcf $ 1.82 $ 1.22
As shown in the table above, total oil and gas sales increased
$166,077 (41.3%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
increase, $167,936 was related to the increases in the average
prices of oil and natural gas sold and $24,620 was related to the
increase in the volumes of oil sold, partially offset by a
$27,469 decrease related to the decrease in the volumes of
natural gas sold. Volumes of oil sold increased by 1,194
barrels, while volumes of natural gas sold decreased by 15,093
Mcf for the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995. Average oil and
natural gas prices increased to $20.62 per barrel and $1.82 per
Mcf, respectively, for the three months ended September 30, 1996
from $15.85 per barrel and $1.22 per Mcf, respectively, for the
three months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $22,625 for the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. This increase resulted primarily from
the increases in production taxes associated with the increases
in the average prices of oil and natural gas sold during the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995. As a percentage of oil and gas
sales, these expenses decreased to 36.6% for the three months
ended September 30, 1996 from 46.1% for the three months ended
September 30, 1995. This percentage decrease was primarily due
to the increases in the average prices of oil and natural gas
sold during the three months ended September 30, 1996 as compared
to the three months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $194,217 for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. This decrease resulted primarily from (i)
significant upward revisions in the estimate of remaining natural
-47-
gas reserves at December 31, 1995, (ii) the decrease in the
volumes of natural gas sold during the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995, and (iii) a decrease in capitalized costs due
to an impairment provision recognized in the fourth quarter of
1995. As a percentage of oil and gas sales, this expense
decreased to 23.7% for the three months ended September 30, 1996
as compared to 81.8% for the three months ended September 30,
1995. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization related to
the reserve revisions and impairment provision discussed above
and the increases in the average prices of oil and natural gas
sold during the three months ended September 30, 1996 as compared
to the three months ended September 30, 1995.
General and administrative expenses decreased $850 for the three
months ended September 30, 1996 as compared to three months ended
September 30, 1995. This decrease resulted primarily from a
decrease in professional fees during the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. As a percentage of oil and gas sales, these
expenses decreased to 6.7% for the three months ended September
30, 1996 from 9.3% for the three months ended September 30, 1995.
This percentage decrease was primarily due to the increases in
the average prices of oil and natural gas sold during the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995.
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
-------------------------------
1996 1995
---------- ----------
Oil and gas sales $1,665,188 $1,426,959
Oil and gas production expenses $ 598,008 $ 577,370
Barrels produced 33,069 31,639
Mcf produced 565,614 690,232
Average price/Bbl $ 19.47 $ 16.62
Average price/Mcf $ 1.81 $ 1.31
As shown in the table above, total oil and gas sales increased
$238,229 (16.7%) for the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995. Of this
increase, $435,287 was related to the increases in the average
prices of oil and natural gas sold and $27,842 was related to the
increase in the volumes of oil sold, partially offset by a
$225,559 decrease related to the decrease in the volumes of
natural gas sold. Volumes of oil sold increased by 1,430
barrels, while volumes of natural gas sold decreased by 124,618
Mcf for the nine months ended September 30, 1996 as compared to
-48-
the nine months ended September 30, 1995. The decrease in the
volumes of natural gas sold resulted primarily from (i) positive
prior period volume adjustments made by the purchasers on two
wells during the nine months ended September 30, 1995, and (ii)
the normal declines in production due to diminished natural gas
reserves on several wells during the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
Average oil and natural gas prices increased to $19.47 per barrel
and $1.81 per Mcf, respectively, for the nine months ended
September 30, 1996 from $16.62 per barrel and $1.31 per Mcf,
respectively, for the nine months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased by $20,638 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This increase resulted primarily from
the increases in production taxes associated with the increases
in the average prices of oil and natural gas sold during the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. As a percentage of oil and gas sales,
these expenses decreased to 35.9% for the nine months ended
September 30, 1996 from 40.5% for the nine months ended September
30, 1995. This percentage decrease was primarily due to the
increases in the average prices of oil and natural gas sold
during the nine months ended September 30, 1996 as compared to
the nine months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $701,031 during the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995. This decrease resulted primarily from (i) significant
upward revisions in the estimate of remaining natural gas
reserves at December 31, 1995, (ii) the decrease in the volumes
of natural gas sold during the nine months ended September 30,
1996 as compared to the nine months ended September 30, 1995, and
(iii) a decrease in capitalized costs due to an impairment
provision recognized in the fourth quarter of 1995. As a
percentage of oil and gas sales, this expense decreased to 24.5%
for the nine months ended September 30, 1996 as compared to 77.7%
for the nine months ended September 30, 1995. This percentage
decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization related to the reserve
revisions and impairment provision discussed above and the
increases in the average prices of oil and natural gas sold
during the nine months ended September 30, 1996 as compared to
the nine months ended September 30, 1995.
General and administrative expenses decreased $3,136 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease resulted primarily from
decreases in both printing and postage expenses and professional
fees during the nine months ended September 30, 1996 as compared
-49-
to the nine months ended September 30, 1995. As a percentage of
oil and gas sales, these expenses decreased to 7.2% for the nine
months ended September 30, 1996 from 8.6% for the nine months
ended September 30, 1995. This percentage decrease resulted
primarily from increases in the average prices of oil and natural
gas sold during the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995.
The Limited Partners have received cash distributions through
September 30, 1996 totaling $5,793,669 or 44.22% of Limited
Partners' capital contributions.
PARTNERSHIP III-E
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
---------- ----------
Oil and gas sales $2,529,876 $1,952,443
Oil and gas production expenses $1,119,695 $1,107,133
Barrels produced 65,854 62,129
Mcf produced 624,833 707,758
Average price/Bbl $ 20.33 $ 15.90
Average price/Mcf $ 1.91 $ 1.36
As shown in the table above, total oil and gas sales increased
$577,433 (29.6%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
increase, $664,498 was related to the increases in the average
prices of oil and natural gas sold and $75,729 was related to the
increase in the volumes of oil sold, partially offset by a
$158,387 decrease related to the decrease in the volumes of
natural gas sold. Volumes of oil sold increased by 3,725
barrels, while volumes of natural gas sold decreased by 82,925
Mcf for the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995. Average oil and
natural gas prices increased to $20.33 per barrel and $1.91 per
Mcf, respectively, for the three months ended September 30, 1996
from $15.90 per barrel and $1.36 per Mcf, respectively, for the
three months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant for
the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses decreased to 44.3% for the three
months ended September 30, 1996 from 56.7% for the three months
ended September 30, 1995. This percentage decrease was
primarily due to the increases in the average prices of oil and
-50-
natural gas sold during the three months ended September 30, 1996
as compared to the three months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $283,837 for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. This decrease resulted primarily from (i)
significant upward revisions in the estimate of remaining natural
gas reserves at December 31, 1995, (ii) the decrease in the
volumes of natural gas sold during the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995, and (iii) a decrease in capitalized costs due
to an impairment provision recognized in the fourth quarter of
1995. As a percentage of oil and gas sales, this expense
decreased to 22.3% for the three months ended September 30, 1996
from 43.4% for the three months ended September 30, 1995. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization related to the reserve
revision and impairment provision discussed above and the
increases in the average prices of oil and natural gas sold
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses decreased to 4.7% for the three
months ended September 30, 1996 from 6.1% for the three months
ended September 30, 1995. This percentage decrease resulted
primarily from increases in the average prices of oil and natural
gas sold during the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995.
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
-------------------------------
1996 1995
---------- ----------
Oil and gas sales $6,685,261 $6,527,606
Oil and gas production expenses $3,173,626 $3,569,465
Barrels produced 186,855 197,527
Mcf produced 1,640,848 2,276,624
Average price/Bbl $ 19.32 $ 16.52
Average price/Mcf $ 1.87 $ 1.43
As shown in the table above, total oil and gas sales increased
$157,655 (2.4%) for the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995. Of this
increase, $1,554,791 was related to the increases in the average
prices of oil and natural gas sold, partially offset by a
-51-
$1,395,084 decrease related to the decreases in the volumes of
oil and natural gas sold. Volumes of oil and natural gas sold
decreased by 10,672 barrels and 635,776 Mcf, respectively, for
the nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. The decrease in the volumes of
natural gas sold resulted primarily from significant positive
prior period volume adjustments made by the purchasers on two
wells during the nine months ended September 30, 1995. Average
oil and natural gas prices increased to $19.32 per barrel and
$1.87 per Mcf, respectively, for the nine months ended September
30, 1996 from $16.52 per barrel and $1.43 per Mcf, respectively,
for the nine months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $395,839 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease resulted primarily from
the decreases in the volumes of oil and natural gas sold during
the nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. As a percentage of oil and gas
sales, these expenses decreased to 47.5% for the nine months
ended September 30, 1996 from 54.7% for the nine months ended
September 30, 1995. This percentage decrease was primarily due
to the increases in the average prices of oil and natural gas
sold during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $1,189,204 for the nine months ended
September 30, 1996 as compared to the nine months ended September
30, 1995. This decrease resulted primarily from (i) significant
upward revisions in the estimate of remaining natural gas
reserves at December 31, 1995, (ii) decreases in the volumes of
oil and natural gas sold during the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995,
and (iii) a decrease in capitalized costs due to an impairment
provision recognized in the fourth quarter of 1995. As a
percentage of oil and gas sales, this expense decreased to 22.9%
for the nine months ended September 30, 1996 from 41.6% for the
nine months ended September 30, 1995. This percentage decrease
was primarily due to the dollar decrease in depreciation,
depletion, and amortization related to the reserve revision and
impairment provision discussed above and the increases in the
average prices of oil and natural gas sold during the nine months
ended September 30, 1996 as compared to the nine months ended
September 30, 1995.
General and administrative expenses decreased $21,419 for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. This decrease resulted
primarily from a decrease in both printing and postage expenses
and professional fees during the nine months ended September 30,
-52-
1996 as compared to the nine months ended September 30, 1995. As
a percentage of oil and gas sales, these expenses remained
relatively constant at 5.7% for the nine months ended September
30, 1996 as compared to 6.1% for the nine months ended September
30, 1995.
The Limited Partners have received cash distributions through
September 30, 1996 totaling $21,861,016 or 52.27% of Limited
Partners' capital contributions.
PARTNERSHIP III-F
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
-------- --------
Oil and gas sales $801,543 $651,456
Oil and gas production expenses $214,863 $363,746
Barrels produced 20,248 20,738
Mcf produced 221,599 268,999
Average price/Bbl $ 21.40 $ 15.13
Average price/Mcf $ 1.66 $ 1.26
As shown in the table above, total oil and gas sales increased
$150,087 (23.0%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
increase, $237,627 related to the increases in the average prices
of oil and natural gas sold, partially offset by a $78,684
decrease related to the decrease in the volumes of natural gas
sold. Volumes of oil and natural gas sold decreased by 490
barrels and 47,400 Mcf, respectively, for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. The decrease in the volumes of natural gas
sold resulted primarily from (i) the normal declines in
production due to diminished natural gas reserves on several
wells during the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995, (ii) the
shutting-in of one well during the three months ended September
30, 1996 due to mechanical difficulties, and (iii) the sale of
three natural gas producing wells during 1996 and the later part
of 1995. Average oil and natural gas prices increased to $21.40
per barrel and $1.66 per Mcf, respectively, for the three months
ended September 30, 1996 from $15.13 per barrel and $1.26 per
Mcf, respectively, for the three months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $148,883 for the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. This decrease resulted primarily from
-53-
(i) a downward ownership adjustment made by the operator on one
well during the nine months ended September 30, 1996, (ii) the
shutting-in of one well during the nine months ended September
30, 1996 due to mechanical difficulties, (iii) workover expenses
incurred during the nine months ended September 30, 1995 on three
wells in order to improve the recovery of reserves, and (iv) a
decrease in lease operating expenses due to the sale of several
wells during 1996 and the later part of 1995. As a percentage of
oil and gas sales, these expenses decreased to 26.8% for the
three months ended September 30, 1996 from 55.8% for the three
months ended September 30, 1995. This percentage increase was
primarily due to the dollar decrease in oil and gas production
expenses discussed above and the increases in the average prices
of oil and natural gas sold during the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $195,295 for the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995. This decrease resulted primarily from (i)
significant upward revisions in the estimate of remaining oil
reserves at December 31, 1995, (ii) decreases in the volumes of
oil and natural gas sold during the three months ended September
30, 1996 as compared to the three months ended September 30,
1995, and (iii) a decrease in capitalized costs due to an
impairment provision recognized in the fourth quarter of 1995.
As a percentage of oil and gas sales, this expense decreased to
38.4% for the three months ended September 30, 1996 from 77.2%
for the three months ended September 30, 1995. This percentage
decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization related to the reserve
revision and impairment provision discussed above and the
increases in the average prices of oil and natural gas sold
during the three months ended September 30, 1996 as compared to
the three months ended September 30, 1995.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses decreased to 7.9% for the three
months ended September 30, 1996 from 9.7% for the three months
ended September 30, 1995. This percentage decrease resulted
primarily from the increases in the average prices of oil and
natural gas sold during the three months ended September 30, 1996
as compared to the three months ended September 30, 1995.
-54-
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
-------------------------------
1996 1995
---------- ----------
Oil and gas sales $2,257,857 $2,128,643
Oil and gas production expenses $ 926,056 $1,221,030
Barrels produced 58,207 60,020
Mcf produced 719,068 870,742
Average price/Bbl $ 19.55 $ 16.82
Average price/Mcf $ 1.56 $ 1.28
As shown in the table above, total oil and gas sales increased
$129,214 (6.1%) for the nine months ended September 30, 1996 as
compared to the nine months ended September 30, 1995. Of this
increase, $407,663 was related to the increases in the average
prices of oil and natural gas sold, partially offset by a
$272,055 decrease related to the decreases in the volumes of oil
and natural gas sold. Volumes of oil and natural gas sold
decreased by 1,813 barrels and 151,674 Mcf, respectively, for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. The decrease in the volumes of
natural gas sold resulted primarily from (i) the normal declines
in production due to diminished natural gas reserves on several
wells during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995, (ii) a positive
prior period volume adjustment made by the purchaser on one well
during the nine months ended September 30, 1995, (iii) the
shutting-in of two wells during the nine months ended September
30, 1996 due to mechanical difficulties, and (iv) the sale of
three natural gas producing wells during 1996 and 1995. Average
oil and natural gas prices increased to $19.55 per barrel and
$1.56 per Mcf, respectively, for the nine months ended September
30, 1996 from $16.82 per barrel and $1.28 per Mcf, respectively,
for the nine months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $294,974 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease resulted primarily from
(i) a decrease in lease operating expenses due to the sale of
three wells during the fourth quarter of 1995, (ii) workover
expenses incurred during the nine months ended September 30, 1995
on three wells in order to improve the recovery of reserves,
(iii) a decrease in lease operating expenses due to the shutting-
in of one well during the nine months ended September 30, 1996
due to mechanical difficulties, and (iv) a downward ownership
adjustment made by the operator on one well during the nine
months ended September 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 41.0% for the nine months
-55-
ended September 30, 1996 from 57.4% for the nine months ended
September 30, 1995. This percentage decrease was primarily due
to the dollar decrease in oil and gas production expenses
discussed above and the increases in the average prices of oil
and natural gas sold during the nine months ended September 30,
1996 as compared to the nine months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $615,534 for the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
This decrease resulted primarily from (i) significant upward
revisions in the estimate of remaining oil reserves at December
31, 1995, (ii) decreases in the volumes of oil and natural gas
sold during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995, and (iii) a decrease
in capitalized costs due to an impairment provision recognized in
the fourth quarter of 1995. As a percentage of oil and gas
sales, this expense decreased to 42.4% for the nine months ended
September 30, 1996 from 73.9% for the nine months ended September
30, 1995. This percentage decrease was primarily due to the
dollar decrease in depreciation, depletion, and amortization
related to the reserve revision and impairment provision
discussed above and the increases in the average prices of oil
and natural gas sold during the nine months ended September 30,
1996 as compared to the nine months ended September 30, 1995.
A provision to reduce the carrying value of the III-F
Partnership's oil and gas properties at September 30, 1995 was
necessary due to the unamortized costs of oil and gas properties
exceeding the undiscounted value of future net revenues from the
oil and gas properties. This provision was due to the declining
gas prices used in projecting future net revenues at September
30, 1995. No similar provision was necessary for the nine months
ended September 30, 1996.
General and administrative expenses decreased $4,232 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease resulted primarily from
a decrease in both printing and postage expenses and professional
fees during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995. As a percentage of
oil and gas sales, these expenses remained relatively constant at
8.9% for the nine months ended September 30, 1996 as compared to
9.7% for the nine months ended September 30, 1995.
The Limited Partners have received cash distributions through
September 30, 1996 totaling $7,976,904 or 36.02% of Limited
Partners' capital contributions.
-56-
PARTNERSHIP III-G
THREE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1995.
Three months ended September 30,
--------------------------------
1996 1995
-------- --------
Oil and gas sales $506,885 $411,277
Oil and gas production expenses $144,886 $233,711
Barrels produced 14,165 14,935
Mcf produced 121,454 146,240
Average price/Bbl $ 21.50 $ 15.24
Average price/Mcf $ 1.67 $ 1.26
As shown in the table above, total oil and gas sales increased
$95,608 (23.3%) for the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995. Of this
increase, $153,451 was related to the increases in the average
prices of oil and natural gas sold, partially offset by a
decrease of $57,948 related to the decreases in the volumes of
oil and natural gas sold. Volumes of oil and natural gas sold
decreased by 770 barrels and 24,786 Mcf, respectively, for the
three months ended September 30, 1996 as compared to the three
months ended September 30, 1995. The decrease in the volumes of
natural gas sold resulted primarily from (i) the normal declines
in production due to diminished natural gas reserves on several
wells during the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995, (ii) the
shutting-in of one well during the three months ended September
30 1996 due to mechanical difficulties, and (iii) the sale of
four natural gas producing wells during 1996 and the later part
of 1995. Average oil and natural gas prices increased to $21.50
per barrel and $1.67 per Mcf, respectively, for the three months
ended September 30, 1996 from $15.24 per barrel and $1.26 per
Mcf, respectively, for the three months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $88,825 for the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995. This decrease resulted primarily from
(i) a downward ownership adjustment made by the operator on one
well during the nine months ended September 30, 1996, (ii) the
shutting-in of one well during the three months ended September
30, 1996 due to mechanical difficulties, (iii) workover expenses
incurred on three wells during the three months ended September
30, 1995 in order to improve the recovery of reserves, and (iv)
the decrease in lease operating expenses due to the sale of
several wells during 1996 and the later part of 1995. As a
percentage of oil and gas sales, these expenses decreased to
28.6% for the three months ended September 30, 1996 from 56.8%
-57-
for the three months ended September 30, 1995. This percentage
decrease was primarily due to the increases in the average prices
of oil and natural gas sold during the three months ended
September 30, 1996 as compared to the three months ended
September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $97,414 for the three months ended September
30, 1996 as compared to the three months ended September 30,
1995. This decrease resulted primarily from (i) significant
upward revisions in the estimate of remaining oil reserves at
December 31, 1995, (ii) decreases in the volumes of oil and
natural gas sold during the three months ended September 30, 1996
as compared to the three months ended September 30, 1995, and
(iii) a decrease in capitalized costs due to an impairment
provision recognized in the fourth quarter of 1995. As a
percentage of oil and gas sales, this expense decreased to 38.0%
for the three months ended September 30, 1996 from 70.5% for the
three months ended September 30, 1995. This percentage decrease
was primarily due to the dollar decrease in depreciation,
depletion, and amortization related to the reserve revision and
impairment provision discussed above and the increases in the
average prices of oil and natural gas sold during the three
months ended September 30, 1996 as compared to the three months
ended September 30, 1995.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1996 as compared to the
three months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses decreased to 6.9% for the three
months ended September 30, 1996 from 8.5% for the three months
ended September 30, 1995. This percentage decrease resulted
primarily from increases in the average prices of oil and natural
gas sold during the three months ended September 30, 1996 as
compared to the three months ended September 30, 1995.
NINE MONTHS ENDED SEPTEMBER 30, 1996 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1995.
Nine months ended September 30,
-------------------------------
1996 1995
---------- ----------
Oil and gas sales $1,430,150 $1,334,086
Oil and gas production expenses $ 609,409 $ 767,699
Barrels produced 41,945 43,318
Mcf produced 388,400 469,250
Average price/Bbl $ 19.58 $ 16.83
Average price/Mcf $ 1.57 $ 1.29
As shown in the table above, total oil and gas sales increased
$96,064 (7.2%) for the nine months ended September 30, 1996 as
-58-
compared to the nine months ended September 30, 1995. Of this
increase, $250,515 was related to the increases in the average
prices of oil and natural gas sold, partially offset by a
$153,818 decrease related to the decreases in the volumes of oil
and natural gas sold. Volumes of oil and natural gas sold
decreased by 1,373 barrels and 80,850 Mcf, respectively, for the
nine months ended September 30, 1996 as compared to the nine
months ended September 30, 1995. The decrease in the volumes of
natural gas sold resulted primarily from (i) the normal declines
in production due to diminished natural gas reserves on several
wells during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995, (ii) a positive
prior period adjustment made by the purchaser on one well during
the nine months ended September 30, 1995, (iii) the shutting-in
of two wells during the nine months ended September 30, 1996 due
to mechanical difficulties, and (iv) the sale of three natural
gas producing wells during 1996 and the later part of 1995.
Average oil and natural gas prices increased to $19.58 per barrel
and $1.57 per Mcf, respectively, for the nine months ended
September 30, 1996 from $16.83 per barrel and $1.29 per Mcf,
respectively, for the nine months ended September 30, 1995.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $158,290 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995 This decrease resulted primarily from
(i) the decrease in lease operating expenses due to the sale of
three wells during the fourth quarter of 1995, (ii) workover
expenses incurred on four wells during the nine months ended
September 30, 1995 in order to improve the recovery of reserves,
(iii) the shutting-in of one well during the nine months ended
September 30, 1996 due to mechanical difficulties, and (iv) a
downward ownership adjustment made by the operator on one well
during the nine months ended September 30, 1996. As a percentage
of oil and gas sales, these expenses decreased to 42.6% for the
nine months ended September 30, 1996 from 57.5% for the nine
months ended September 30, 1995. This percentage decrease was
primarily due to the decrease in oil and gas production expenses
discussed above and increases in the average prices of oil and
natural gas sold during the nine months ended September 30, 1996
as compared to the nine months ended September 30, 1995.
Depreciation, depletion, and amortization of oil and gas
properties decreased $299,465 for the nine months ended September
30, 1996 as compared to the nine months ended September 30, 1995.
This decrease resulted primarily from (i) significant upward
revisions in the estimate of remaining oil reserves at December
31, 1995, (ii) decreases in the volumes of oil and natural gas
sold during the nine months ended September 30, 1996 as compared
to the nine months ended September 30, 1995, and (iii) a decrease
in capitalized costs due to an impairment provision recognized in
the fourth quarter of 1995. As a percentage of oil and gas
-59-
sales, this expense decreased to 41.8% for the nine months ended
September 30, 1996 from 67.2% for the nine months ended September
30, 1995. This percentage decrease was primarily due to the
dollar decrease in depreciation, depletion, and amortization
related to the reserve revision and impairment provision
discussed above and the increases in the average prices of oil
and natural gas sold during the nine months ended September 30,
1996 as compared to the nine months ended September 30, 1995.
A provision to reduce the carrying value of the III-G
Partnership's oil and gas properties at September 30, 1995 was
necessary due to the unamortized costs of oil and gas properties
exceeding the undiscounted value of future net revenues from the
oil and gas properties. This provision was due to the declining
gas prices used in projecting future net revenues at September
30, 1995. No similar provision was necessary for the nine months
ended September 30, 1996.
General and administrative expenses decreased $3,227 for the nine
months ended September 30, 1996 as compared to the nine months
ended September 30, 1995. This decrease resulted primarily from
a decrease in both printing and postage fees and filing fees
during the nine months ended September 30, 1996 as compared to
the nine months ended September 30, 1995. As a percentage of oil
and gas sales, these expenses remained relatively constant at
7.8% for the nine months ended September 30, 1996 as compared to
8.6% for the nine months ended September 30, 1995.
The Limited Partners have received cash distributions through
September 30, 1996 totaling $3,905,287 or 32.03% of Limited
Partners' capital contributions.
-60-
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27.1 Financial Data Schedule containing summary financial
information extracted from the III-A Partnership's
financial statements as of September 30, 1996 and for
the nine months ended September 30, 1996, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the III-B Partnership's
financial statements as of September 30, 1996 and for
the nine months ended September 30, 1996, filed
herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the III-C Partnership's
financial statements as of September 30, 1996 and for
the nine months ended September 30, 1996, filed
herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the III-D Partnership's
financial statements as of September 30, 1996 and for
the nine months ended September 30, 1996, filed
herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the III-E Partnership's
financial statements as of September 30, 1996 and for
the nine months ended September 30, 1996, filed
herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the III-F Partnership's
financial statements as of September 30, 1996 and for
the nine months ended September 30, 1996, filed
herewith.
27.7 Financial Data Schedule containing summary financial
information extracted from the III-G Partnership's
financial statements as of September 30, 1996 and for
the nine months ended September 30, 1996, filed
herewith.
All other exhibits are omitted as inapplicable.
-61-
(b) Reports on Form 8-K:
Current Reports on Form 8-K filed during third quarter of
1996:
Date of event: July 1, 1996
Date filed with SEC: July 8, 1996
Item included:
Item 5 - Other Events
Date of event: July 17, 1996
Date filed with SEC: July 31, 1996
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 III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
(Registrant)
By: GEODYNE RESOURCES, INC.
General Partner
Date: November 14, 1996 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: November 14, 1996 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
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INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-A's financial statements as of September 30,
1996 and for the nine months ended September 30, 1996, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-B's financial statements as of September 30,
1996 and for the nine months ended September 30, 1996, filed
herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-C's financial statements as of September 30,
1996 and for the nine months ended September 30, 1996, filed
herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-D's financial statements as of September 30,
1996 and for the nine months ended September 30, 1996, filed
herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-E's financial statements as of September 30,
1996 and for the nine months ended September 30, 1996, filed
herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-F's financial statements as of September 30,
1996 and for the nine months ended September 30, 1996, filed
herewith.
27.7 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-G's financial statements as of September 30,
1996 and for the nine months ended September 30, 1996, filed
herewith.
All other exhibits are omitted as inapplicable.