SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1997
Commission File Number:
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
June 30, December 31,
1997 1996
------------ -----------
CURRENT ASSETS:
Cash and cash equivalents $1,142,346 $ 610,116
Accounts receivable:
Oil and gas sales 505,201 680,167
---------- ----------
Total current assets $1,647,547 $1,290,283
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,733,840 5,360,656
DEFERRED CHARGE 244,220 244,220
---------- ----------
$4,625,607 $6,895,159
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 45,901 $ 50,726
Gas imbalance payable 76,797 76,797
---------- ----------
Total current liabilities $ 122,698 $ 127,523
ACCRUED LIABILITY $ 80,396 $ 80,396
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 225,906) ($ 198,911)
Limited Partners, issued and
outstanding, 263,976 units 4,648,419 6,886,151
---------- ----------
Total Partners' capital $4,422,513 $6,687,240
---------- ----------
$4,625,607 $6,895,159
========== ==========
The accompanying condensed 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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- -----------
REVENUES:
Oil and gas sales $850,857 $ 996,946
Interest and other income 8,201 5,088
Gain on sale of oil and gas
properties 11,503 -
-------- ----------
$870,561 $1,002,034
COSTS AND EXPENSES:
Lease operating $131,357 $ 185,960
Production tax 76,143 70,969
Depreciation, depletion, and
amortization of oil and gas
properties 237,375 357,281
General and administrative (Note 2) 84,383 78,431
-------- ----------
$529,258 $ 692,641
-------- ----------
NET INCOME $341,303 $ 309,393
======== ==========
GENERAL PARTNER - NET INCOME $ 26,150 $ 29,507
======== ==========
LIMITED PARTNERS - NET INCOME $315,153 $ 279,886
======== ==========
NET INCOME per unit $ 1.19 $ 1.06
======== ==========
UNITS OUTSTANDING 263,976 263,976
======== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- -----------
REVENUES:
Oil and gas sales $1,866,601 $1,906,916
Interest and other income 13,478 9,820
Gain (loss) on sale of oil and
gas properties ( 10,455) 150
---------- ----------
$1,869,624 $1,916,886
COSTS AND EXPENSES:
Lease operating $ 261,989 $ 330,390
Production tax 148,238 136,289
Depreciation, depletion, and
amortization of oil and gas
properties 485,351 706,487
Impairment provision 1,617,006 -
General and administrative (Note 2) 164,737 164,814
---------- ----------
$2,677,321 $1,337,980
---------- ----------
NET INCOME (LOSS) ($ 807,697) $ 578,906
========== ==========
GENERAL PARTNER - NET INCOME $ 43,035 $ 56,714
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 850,732) $ 522,192
========== ==========
NET INCOME (LOSS) per unit ($ 3.22) $ 1.98
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 807,697) $ 578,906
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 485,351 706,487
Impairment provision 1,617,006
(Gain) loss on sale of oil and
gas properties 10,455 ( 150)
Decrease in accounts receivable -
oil and gas sales 174,966 7,787
Decrease in accounts payable ( 4,825) ( 32,550)
---------- ----------
Net cash provided by operating
activities $1,475,256 $1,260,480
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 1,320)
Proceeds from sale of oil and
gas properties 514,004 150
---------- ----------
Net cash provided (used) by
investing activities $ 514,004 ($ 1,170)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,457,030) ($1,221,860)
---------- ----------
Net cash used by financing
activities ($1,457,030) ($1,221,860)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 532,230 $ 37,450
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 610,116 560,906
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,142,346 $ 598,356
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 617,289 $ 376,603
Accounts receivable:
Oil and gas sales 299,367 396,970
---------- ----------
Total current assets $ 916,656 $ 773,573
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,581,829 2,854,520
DEFERRED CHARGE 144,819 144,819
---------- ----------
$2,643,304 $3,772,912
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 26,824 $ 27,983
Gas imbalance payable 26,735 26,735
---------- ----------
Total current liabilities $ 53,559 $ 54,718
ACCRUED LIABILITY $ 38,690 $ 38,690
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 110,112) ($ 97,092)
Limited Partners, issued and
outstanding, 138,336 units 2,661,167 3,776,596
---------- ----------
Total Partners' capital $2,551,055 $3,679,504
---------- ----------
$2,643,304 $3,772,912
========== ==========
The accompanying condensed 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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- --------
REVENUES:
Oil and gas sales $501,249 $566,244
Interest and other income 4,541 2,787
Gain on sale of oil and gas
properties 2,520 -
-------- --------
$508,310 $569,031
COSTS AND EXPENSES:
Lease operating $ 72,004 $100,837
Production tax 43,524 41,189
Depreciation, depletion, and
amortization of oil and gas
properties 136,406 198,928
General and administrative (Note 2) 44,220 41,226
-------- --------
$296,154 $382,180
-------- --------
NET INCOME $212,156 $186,851
======== ========
GENERAL PARTNER - NET $ 15,837 $ 17,161
======== ========
LIMITED PARTNERS - NET INCOME $196,319 $169,690
======== ========
NET INCOME per unit $ 1.42 $ 1.23
======== ========
UNITS OUTSTANDING 138,336 138,336
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
REVENUES:
Oil and gas sales $1,094,356 $1,086,126
Interest and other income 7,661 5,394
Gain (loss) on sale of oil and
gas properties ( 7,673) 63
---------- ----------
$1,094,344 $1,091,583
COSTS AND EXPENSES:
Lease operating $ 158,262 $ 172,694
Production tax 85,550 79,698
Depreciation, depletion, and
amortization of oil and gas
properties 275,709 393,134
Impairment provision 738,122 -
General and administrative (Note 2) 86,447 86,879
---------- ----------
$1,344,090 $ 732,405
---------- ----------
NET INCOME (LOSS) ($ 249,746) $ 359,178
========== ==========
GENERAL PARTNER - NET INCOME $ 27,683 $ 33,415
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 277,429) $ 325,763
========== ==========
NET INCOME (LOSS) per unit ($ 2.01) $ 2.35
========== ==========
UNITS OUTSTANDING 138,336 138,336
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($249,746) $359,178
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 275,709 393,134
Impairment provision 738,122 -
(Gain) loss on sale of oil and
gas properties 7,673 ( 63)
Decrease in accounts receivable -
oil and gas sales 97,603 15,211
Decrease in accounts payable ( 1,159) ( 18,999)
-------- --------
Net cash provided by operating
activities $868,202 $748,461
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 19,329)
Proceeds from sale of oil and
gas properties 251,187 63
-------- --------
Net cash provided (used) by
investing activities $251,187 ($ 19,266)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($878,703) ($723,161)
-------- --------
Net cash used by financing
activities ($878,703) ($723,161)
-------- --------
NET INCREASE IN CASH AND CASH
CASH EQUIVALENTS $240,686 $ 6,034
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 376,603 311,585
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $617,289 $317,619
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 609,792 $ 537,233
Accounts receivable:
General Partner (Note 2) 5,854 40,940
Oil and gas sales 440,931 627,697
---------- ----------
Total current assets $1,056,577 $1,205,870
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,548,618 5,727,898
DEFERRED CHARGE 76,014 76,014
---------- ----------
$4,681,209 $7,009,782
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 41,976 $ 57,357
Gas imbalance payable 30,749 30,749
---------- ----------
Total current liabilities $ 72,725 $ 88,106
ACCRUED LIABILITY $ 141,394 $ 141,394
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 174,482)($ 143,741)
Limited Partners, issued and
outstanding, 244,536 units 4,641,572 6,924,023
---------- ----------
Total Partners' capital $4,467,090 $6,780,282
---------- ----------
$4,681,209 $7,009,782
========== ==========
The accompanying condensed 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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- --------
REVENUES:
Oil and gas sales $658,254 $799,897
Interest and other income 6,155 3,792
Gain on sale of oil and gas
properties 59,929 -
-------- --------
$724,338 $803,689
COSTS AND EXPENSES:
Lease operating $105,808 $135,484
Production tax 49,743 57,825
Depreciation, depletion, and
amortization of oil and gas
properties 180,778 297,995
General and administrative (Note 2) 77,297 72,668
-------- --------
$413,626 $563,972
-------- --------
NET INCOME $310,712 $239,717
======== ========
GENERAL PARTNER - NET INCOME $ 22,166 $ 23,716
======== ========
LIMITED PARTNERS - NET INCOME $288,546 $216,001
======== ========
NET INCOME per unit $ 1.18 $ .88
======== ========
UNITS OUTSTANDING 244,536 244,536
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
REVENUES:
Oil and gas sales $1,600,086 $1,615,671
Interest and other income 10,692 6,501
Gain on sale of oil and gas
properties 55,672 26
---------- ----------
$1,666,450 $1,622,198
COSTS AND EXPENSES:
Lease operating $ 252,645 $ 280,813
Production tax 120,242 116,500
Depreciation, depletion, and
amortization of oil and gas
properties 387,216 617,898
Impairment provision 1,696,418 -
General and administrative (Note 2) 157,971 152,339
---------- ----------
$2,614,492 $1,167,550
---------- ----------
NET INCOME (LOSS) ($ 948,042) $ 454,648
========== ==========
GENERAL PARTNER - NET INCOME $ 35,409 $ 47,123
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 983,451) $ 407,525
========== ==========
NET INCOME (LOSS) per unit ($ 4.02) $ 1.67
========== ==========
UNITS OUTSTANDING 244,536 244,536
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 948,042) $454,648
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 387,216 617,898
Impairment provision 1,696,418 -
Gain on sale of oil and gas
properties ( 55,672) ( 26)
Decrease in accounts receivable -
General Partner 35,086 -
(Increase) decrease in accounts
receivable - oil and gas sales 186,766 ( 50,992)
Decrease in accounts payable ( 15,381) ( 37,385)
---------- --------
Net cash provided by operating
activities $1,286,391 $984,143
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 15,098)
Proceeds from sale of oil and
gas properties 151,318 26
---------- --------
Net cash provided (used) by
investing activities $ 151,318 ($ 15,072)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,365,150) ($793,615)
---------- --------
Net cash used by financing
activities ($1,365,150) ($793,615)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 72,559 $175,456
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 537,233 319,730
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 609,792 $495,186
========== ========
The accompanying condensed notes are an integral
part of these financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 320,768 $ 319,245
Accounts receivable:
Oil and gas sales 329,700 425,312
---------- ----------
Total current assets $ 650,468 $ 744,557
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,322,692 3,470,494
DEFERRED CHARGE 26,139 26,139
---------- ----------
$2,999,299 $4,241,190
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 55,866 $ 112,221
Gas imbalance payable 5,694 5,694
---------- ----------
Total current liabilities $ 61,560 $ 117,915
ACCRUED LIABILITY $ 220,286 $ 220,286
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 63,091)($ 50,214)
Limited Partners, issued and
outstanding, 131,008 units 2,780,544 3,953,203
---------- ----------
Total Partners' capital $2,717,453 $3,902,989
---------- ----------
$2,999,299 $4,241,190
========== ==========
The accompanying condensed 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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $490,474 $562,880
Interest and other income 3,982 2,189
Gain on sale of oil and
gas properties 18,488 -
-------- --------
$512,944 $565,069
COSTS AND EXPENSES:
Lease operating $146,648 $152,858
Production tax 33,046 39,541
Depreciation, depletion, and
amortization of oil and gas
properties 102,659 104,074
General and administrative (Note 2) 41,933 39,041
-------- --------
$324,286 $335,514
-------- --------
NET INCOME $188,658 $229,555
======== ========
GENERAL PARTNER - NET INCOME $ 13,340 $ 15,531
======== ========
LIMITED PARTNERS - NET INCOME $175,318 $214,024
======== ========
NET INCOME per unit $ 1.34 $ 1.63
======== ========
UNITS OUTSTANDING 131,008 131,008
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $1,261,524 $1,097,416
Interest and other income 6,417 3,873
Gain on sale of oil and
gas properties 20,468 -
---------- ----------
$1,288,409 $1,101,289
COSTS AND EXPENSES:
Lease operating $ 324,874 $ 313,658
Production tax 89,602 76,681
Depreciation, depletion, and
amortization of oil and gas
properties 217,457 273,476
Impairment provision 932,243 -
General and administrative (Note 2) 85,277 81,941
---------- ----------
$1,649,453 $ 745,756
---------- ----------
NET INCOME (LOSS) ($ 361,044) $ 355,533
========== ==========
GENERAL PARTNER - NET INCOME $ 27,615 $ 28,522
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 388,659) $ 327,011
========== ==========
NET INCOME (LOSS) per unit ($ 2.97) $ 2.50
========== ==========
UNITS OUTSTANDING 131,008 131,008
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($361,044) $355,533
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 217,457 273,476
Impairment provision 932,243 -
Gain on sale of oil and gas
properties ( 20,468) -
Decrease in accounts receivable -
oil and gas sales 95,612 19,952
Decrease in accounts payable ( 56,355) ( 11,150)
-------- --------
Net cash provided by operating
activities $807,445 $637,811
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 3,630) ($ 16,005)
Proceeds from sale of oil and gas
properties 22,200 -
-------- --------
Net cash provided (used) by
investing activities $ 18,570 ($ 16,005)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($824,492) ($500,263)
-------- --------
Net cash used by financing
activities ($824,492) ($500,263)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 1,523 $121,543
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 319,245 169,395
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $320,768 $290,938
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 1,111,235 $ 1,243,143
Accounts receivable:
Oil and gas sales 1,301,477 1,554,748
----------- -----------
Total current assets $ 2,412,712 $ 2,797,891
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 9,047,695 12,822,109
DEFERRED CHARGE 298,358 298,358
----------- -----------
$11,758,765 $15,918,358
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 351,702 $ 623,087
Gas imbalance payable 156,497 156,497
----------- -----------
Total current liabilities $ 508,199 $ 779,584
ACCRUED LIABILITY $ 355,235 $ 355,235
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 224,834) ($ 187,947)
Limited Partners, issued and
outstanding, 418,266 units 11,120,165 14,971,486
----------- -----------
Total Partners' capital $10,895,331 $14,783,539
----------- -----------
$11,758,765 $15,918,358
=========== ===========
The accompanying condensed 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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $2,106,131 $2,123,185
Interest and other income 14,349 8,656
Loss on sale of oil and gas
properties ( 310) -
---------- ----------
$2,120,170 $2,131,841
COSTS AND EXPENSES:
Lease operating $ 878,585 $ 924,800
Production tax 146,797 146,665
Depreciation, depletion, and
amortization of oil and gas
properties 439,561 478,518
General and administrative (Note 2) 134,109 124,033
---------- ----------
$1,599,052 $1,674,016
---------- ----------
NET INCOME $ 521,118 $ 457,825
========== ==========
GENERAL PARTNER - NET INCOME $ 42,920 $ 42,032
========== ==========
LIMITED PARTNERS - NET INCOME $ 478,198 $ 415,793
========== ==========
NET INCOME per unit $ 1.14 $ .99
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $5,036,109 $4,155,385
Interest and other income 23,361 16,176
Loss on sale of oil and gas
properties ( 310) -
---------- ----------
$5,059,160 $4,171,561
COSTS AND EXPENSES:
Lease operating $1,802,566 $1,771,522
Production tax 355,271 282,409
Depreciation, depletion, and
amortization of oil and gas
properties 929,643 963,919
Impairment provision 2,893,741 -
General and administrative (Note 2) 271,154 260,386
---------- ----------
$6,252,375 $3,278,236
---------- ----------
NET INCOME (LOSS) ($1,193,215) $ 893,325
========== ==========
GENERAL PARTNER - NET INCOME $ 92,106 $ 83,223
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($1,285,321) $ 810,102
========== ==========
NET INCOME (LOSS) per unit ($ 3.07) $ 1.94
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($1,193,215) $ 893,325
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 929,643 963,919
Impairment provision 2,893,741 -
Loss on sale of oil and gas
properties 310 -
Decrease in accounts receivable -
oil and gas sales 253,271 314,992
Decrease in accounts payable ( 271,385) ( 31,713)
---------- ----------
Net cash provided by operating
activities $2,612,365 $2,140,523
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 55,330) ($ 23,615)
Proceeds from sale of oil and
gas properties 6,050 -
---------- ----------
Net cash used by investing
activities ($ 49,280) ($ 23,615)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,694,993) ($1,821,900)
---------- ----------
Net cash used by financing
activities ($2,694,993) ($1,821,900)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 131,908) $ 295,008
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,243,143 665,050
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,111,235 $ 960,058
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 487,228 $ 504,658
Accounts receivable:
Oil and gas sales 477,740 661,215
---------- ----------
Total current assets $ 964,968 $1,165,873
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 3,891,649 7,307,487
DEFERRED CHARGE 159,453 159,453
---------- ----------
$5,016,070 $8,632,813
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 149,586 $ 168,316
Gas imbalance payable 109,044 109,044
---------- ----------
Total current liabilities $ 258,630 $ 277,360
ACCRUED LIABILITY $ 142,686 $ 142,686
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 139,956)($ 97,523)
Limited Partners, issued and
outstanding, 221,484 units 4,754,710 8,310,290
---------- ----------
Total Partners' capital $4,614,754 $8,212,767
---------- ----------
$5,016,070 $8,632,813
========== ==========
The accompanying condensed 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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- --------
REVENUES:
Oil and gas sales $691,158 $736,246
Interest and other income 6,846 2,613
Loss on sale of oil and gas
properties ( 233) -
-------- --------
$697,771 $738,859
COSTS AND EXPENSES:
Lease operating $245,827 $362,323
Production tax 39,891 39,670
Depreciation, depletion, and
amortization of oil and gas
properties 263,240 340,183
General and administrative (Note 2) 70,982 65,817
-------- --------
$619,940 $807,993
-------- --------
NET INCOME (LOSS) $ 77,831 ($ 69,134)
======== ========
GENERAL PARTNER - NET INCOME $ 14,079 $ 10,150
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $ 63,752 ($ 79,284)
======== ========
NET INCOME (LOSS) per unit $ .29 ($ .36)
======== ========
UNITS OUTSTANDING 221,484 221,484
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $1,625,145 $1,456,314
Interest and other income 11,424 5,104
Loss on sale of oil and gas
properties ( 233) -
---------- ----------
$1,636,336 $1,461,418
COSTS AND EXPENSES:
Lease operating $ 530,658 $ 632,668
Production tax 86,748 78,525
Depreciation, depletion, and
amortization of oil and gas
properties 534,918 650,286
Impairment provision 2,884,405 -
General and administrative (Note 2) 143,163 138,102
---------- ----------
$4,179,892 $1,499,581
---------- ----------
NET LOSS ($2,543,556) ($ 38,163)
========== ==========
GENERAL PARTNER - NET INCOME $ 9,024 $ 24,103
========== ==========
LIMITED PARTNERS - NET LOSS ($2,552,580) ($ 62,266)
========== ==========
NET LOSS per unit ($ 11.52) ($ .28)
========== ==========
UNITS OUTSTANDING 221,484 221,484
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ($2,543,556) ($ 38,163)
Adjustments to reconcile net loss
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 534,918 650,286
Impairment provision 2,884,405 -
Loss on sale of oil and gas
properties 233 -
(Increase) decrease in accounts
receivable - oil and gas sales 183,475 ( 38,258)
Decrease in accounts payable ( 18,730) ( 3,792)
---------- --------
Net cash provided by operating
activities $1,040,745 $570,073
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 9,285) ($ 6,005)
Proceeds from sale of oil and
gas properties 5,567 6,307
---------- --------
Net cash provided (used) by
investing activities ($ 3,718) $ 302
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,054,457) ($556,824)
---------- --------
Net cash used by financing
activities ($1,054,457) ($556,824)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 17,430) $ 13,551
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 504,658 324,616
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 487,228 $338,167
========== ========
The accompanying condensed notes are an integral
part of these financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 345,153 $ 315,955
Accounts receivable:
Oil and gas sales 296,152 408,115
---------- ----------
Total current assets $ 641,305 $ 724,070
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,405,367 4,150,885
DEFERRED CHARGE 102,775 102,775
---------- ----------
$3,149,447 $4,977,730
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 88,503 $ 99,540
Gas imbalance payable 54,219 54,219
---------- ----------
Total current liabilities $ 142,722 $ 153,759
ACCRUED LIABILITY $ 86,853 $ 86,853
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 80,996) ($ 58,669)
Limited Partners, issued and
outstanding, 121,925 units 3,000,868 4,795,787
---------- ----------
Total Partners' capital $2,919,872 $4,737,118
---------- ----------
$3,149,447 $4,977,730
========== ==========
The accompanying condensed 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 JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- --------
REVENUES:
Oil and gas sales $434,013 $467,200
Interest and other income 4,431 1,359
Gain on sale of oil and gas
properties 4,943 4,260
-------- --------
$443,387 $472,819
COSTS AND EXPENSES:
Lease operating $158,170 $236,277
Production tax 24,255 24,777
Depreciation, depletion, and
amortization of oil and gas
properties 147,683 209,401
General and administrative (Note 2) 39,131 36,346
-------- --------
$369,239 $506,801
-------- --------
NET INCOME (LOSS) $ 74,148 ($ 33,982)
======== ========
GENERAL PARTNER - NET INCOME $ 9,394 $ 6,677
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) $ 64,754 ($ 40,659)
======== ========
NET INCOME (LOSS) per unit $ .53 ($ .33)
======== ========
UNITS OUTSTANDING 121,925 121,925
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ --------
REVENUES:
Oil and gas sales $1,007,130 $923,265
Interest and other income 7,392 2,655
Gain on sale of oil and gas
properties 4,943 4,496
---------- --------
$1,019,465 $930,416
COSTS AND EXPENSES:
Lease operating $ 345,188 $415,417
Production tax 52,422 49,106
Depreciation, depletion, and
amortization of oil and gas
properties 300,196 404,718
Impairment provision 1,449,404 -
General and administrative (Note 2) 78,891 76,102
---------- --------
$2,226,101 $945,343
---------- --------
NET LOSS ($1,206,636) ($ 14,927)
========== ========
GENERAL PARTNER - NET INCOME $ 9,283 $ 15,442
========== ========
LIMITED PARTNERS - NET LOSS ($1,215,919) ($ 30,369)
========== ========
NET LOSS per unit ($ 9.97) ($ .25)
========== ========
UNITS OUTSTANDING 121,925 121,925
========== ========
The accompanying condensed notes are an integral
part of these financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ($1,206,636) ($ 14,927)
Adjustments to reconcile net loss
to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 300,196 404,718
Impairment provision 1,449,404 -
Gain on sale of oil and gas
properties ( 4,943) ( 4,496)
(Increase) decrease in accounts
receivable - oil and gas sales 111,963 ( 27,805)
Decrease in accounts payable ( 11,037) ( 3,408)
---------- --------
Net cash provided by operating
activities $ 638,947 $354,082
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 11,956) ($ 5,439)
Proceeds from sale of oil and
gas properties 12,817 4,496
---------- --------
Net cash provided (used) by
investing activities $ 861 ($ 943)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 610,610) ($349,919)
---------- --------
Net cash used by financing
activities ($ 610,610) ($349,919)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 29,198 $ 3,220
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 315,955 188,474
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 345,153 $191,694
========== ========
The accompanying condensed notes are an integral
part of these financial statements.
-29-
GEODYNE ENERGY INCOME PROGRAM III LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 1997, statements of operations
for the three and six months ended June 30, 1997 and 1996 and
statements of cash flows for the six months ended June 30, 1997
and 1996 have been prepared by Geodyne Resources, Inc., the
general partner of the Partnerships (the "General Partner"),
without audit. In the opinion of management the financial
statements referred to above include all necessary adjustments,
consisting of normal recurring adjustments, to present fairly the
financial position at June 30, 1997, the results of operations
for the three and six months ended June 30, 1997 and 1996 and the
cash flows for the six months ended June 30, 1997 and 1996.
Information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
The accompanying interim financial statements should be read in
conjunction with the Partnerships' Annual Report on Form 10-K
filed for the year ended December 31, 1996. The results of
operations for the period ended June 30, 1997 are not necessarily
indicative of the results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon
each $100 initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of
accounting for their oil and gas properties. Under the
successful efforts method, the Partnerships capitalize all
property acquisition costs and development costs incurred in
connection with the further development of oil and gas reserves.
Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing
properties, including related title insurance or examination
costs, commissions, engineering, legal and accounting fees, and
similar costs directly related to the acquisitions, plus an
allocated portion, of the General Partner's property screening
costs. The acquisition cost to the Partnerships of properties
acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to
finance the acquisition, for the period of time the properties
are held by the General Partner. Leasehold impairment is
recognized based upon an individual property assessment and
exploratory experience. Upon discovery of commercial reserves,
leasehold costs are transferred to producing properties.
Depletion of the costs of producing oil and gas properties,
amortization of related intangible drilling and development
costs, and depreciation of tangible lease and well equipment are
computed on the unit-of-production method. The Partnerships'
depletion, depreciation, and amortization includes estimated
-30-
dismantlement and abandonment costs, net of estimated salvage
value.
When complete units of depreciable property are retired or sold,
the asset cost and related accumulated depreciation are
eliminated with any gain or loss reflected in income. When less
than complete units of depreciable property are retired or sold,
the difference between asset cost and salvage value is charged or
credited to accumulated depreciation.
Statement of Financial Accounting Standards ("SFAS") No. 121,
"Accounting for the Impairment of Long Lived Assets and Assets
Held for Disposal", requires successful efforts companies, like
the Partnerships, to evaluate the recoverability of the carrying
costs of their proved oil and gas properties at the lowest level
for which there are identifiable cash flows that are largely
independent of the cash flows of other groups of oil and gas
properties. With respect to the Partnerships' oil and gas
properties, this evaluation was performed for each field. SFAS
No. 121 provides that if the unamortized costs of oil and gas
properties for each field exceed the expected undiscounted future
cash flows from such properties, the cost of the properties is
written down to fair value, which is determined by using the
discounted future cash flows from the properties. The
Partnerships recorded a non-cash charge against earnings
(impairment provision) during the six months ended June 30, 1997
pursuant to SFAS No. 121 as follows:
Partnership Amount
----------- ------------
III-A $1,617,006
III-B 738,122
III-C 1,696,418
III-D 932,243
III-E 2,893,741
III-F 2,884,405
III-G 1,449,404
The risk that the Partnerships will be required to record such
impairment provisions in the future increases when oil and gas
prices are depressed.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The 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 six
months ended June 30, 1997 the following payments were made to
the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ----------------- --------------
III-A $25,801 $138,936
III-B 13,637 72,810
III-C 29,265 128,706
III-D 16,325 68,952
-31-
III-E 51,014 220,140
III-F 26,595 116,568
III-G 14,721 64,170
Affiliates of the Partnerships operate certain of the
Partnerships' properties and their policy is to bill the
Partnerships for all customary charges and cost reimbursements
associated with their activities.
The receivable from the General Partner at December 31, 1996 for
the III-C Partnership represented proceeds due to the III-C
Partnership for the sale of oil and gas properties during the
fourth quarter of 1996. Subsequent to December 31, 1996 such
receivable was collected by the III-C Partnership.
The receivable from the General Partner at June 30, 1997 for the
III-C Partnership represents credits due to the III-C Partnership
for general and administrative expenses. Subsequent to June 30,
1997 such receivable was collected by the III-C Partnership.
-32-
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking
statements. The words "anticipate," "believe," "expect," "plan,"
"intend," "estimate," "project," "could," "may," and similar
expressions are intended to identify forward-looking statements.
Such statements reflect management's current views with respect
to future events and financial performance. This Quarterly
Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions
are management's efforts to accurately reflect the condition and
operation of the Partnerships.
Use of forward-looking statements and estimates and assumptions
involve risks and uncertainties which include, but are not
limited to, the volatility of oil and gas prices, the uncertainty
of reserve information, the operating risk associated with oil
and gas properties (including the risk of personal injury, death,
property damage, damage to the well or producing reservoir,
environmental contamination, and other operating risks), the
prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the
general economic climate, the supply and price of foreign imports
of oil and gas, the level of consumer product demand, and the
price and availability of alternative fuels. Should one or more
of these risks or uncertainties occur or should estimates or
underlying assumptions prove incorrect, actual conditions or
results may vary materially and adversely from those stated,
anticipated, believed, estimated, or otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of 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:
-33-
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 operations less necessary operating capital are
distributed to Limited Partners on a quarterly basis. Revenues
and net proceeds of a Partnership are largely dependent upon the
volumes of oil and gas sold and the prices received for such oil
and gas. While the General Partner cannot predict future pricing
trends, it believes the working capital available as of June 30,
1997 and the net revenue generated from future operations will
provide sufficient working capital to meet current and future
obligations of the Partnerships.
The Partnerships' cash flows for the second quarter of 1997
included proceeds from the sale of oil and gas properties during
the three months ended June 30, 1997. These proceeds will be
reflected, as applicable, in the Partnerships' cash distributions
to be paid in mid-August 1997. It is possible that the
Partnerships' repurchase values and future cash distributions
could decline as a result of the disposition of these properties.
On the other hand, the General Partner believes there will be
beneficial operating efficiencies related to the Partnerships'
remaining properties. This is primarily due to the fact that the
properties sold generally bore a higher ratio of operating
expenses as compared to reserves than the Partnerships' remaining
properties.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction
with the analysis of results of operations provided below. The
most important variable affecting the Partnerships' revenues is
the prices received for the sale of oil and gas. Predicting
future prices is very difficult. Substantially all of the
Partnerships' gas reserves are being sold in the "spot market".
Prices on the spot market are subject to wide seasonal and
regional pricing fluctuations due to the highly competitive
nature of the spot market. In addition, such spot market sales
are generally short-term in nature and are dependent upon the
obtaining of transportation services provided by pipelines.
Management is unable to predict whether future oil and gas prices
will (i) stabilize, (ii) increase, or (iii) decrease.
-34-
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 six months
ended June 30, 1997 reflect an increase in total revenues
compared to the same periods in 1996. 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.
PARTNERSHIP III-A
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $850,857 $996,946
Oil and gas production expenses $207,500 $256,929
Barrels produced 10,493 12,660
Mcf produced 274,541 373,479
Average price/Bbl $ 18.88 $ 20.04
Average price/Mcf $ 2.38 $ 1.99
As shown in the above table, total oil and gas sales decreased
$146,089 (14.7%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $43,000 and $197,000, respectively, were
related to decreases in volumes of oil and gas sold and
approximately $12,000 was related to a decrease in the average
price of oil sold, partially offset by an increase of
approximately $107,000 related to an increase in the average
price of gas sold. Volumes of oil and gas sold decreased 2,167
barrels and 98,938 Mcf, respectively, for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. The decrease in volumes of oil sold resulted primarily
from normal declines in production due to diminished oil reserves
on two wells. The decrease in volumes of gas sold resulted
primarily from (i) normal declines in production due to
diminished gas reserves on several wells and (ii) the sale of
several gas producing wells during 1996. Average oil prices
decreased to $18.88 per barrel for the three months ended June
30, 1997 from $20.04 per barrel for the three months ended June
30, 1996, while average gas prices increased to $2.38 per Mcf for
the three months ended June 30, 1997 from $1.99 per Mcf for the
three months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $49,429 (19.2%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, these expenses
remained relatively constant at 24.4% for the three months ended
June 30, 1997 and 25.8% for the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $119,906 (33.6%) for the three months ended
-35-
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) upward revisions
in the estimates of remaining oil and gas reserves at December
31, 1996 and (ii) decreases in volumes of oil and gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 27.9% for the three months ended
June 30, 1997 from 35.8% for the three months ended June 30,
1996. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization discussed
above and the increase in the average price of gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996.
General and administrative expenses increased $5,952 (7.6%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from an increase in professional fees during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, these expenses
increased to 9.9% for the three months ended June 30, 1997 from
7.9% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $1,866,601 $1,906,916
Oil and gas production expenses $ 410,227 $ 466,679
Barrels produced 21,627 25,282
Mcf produced 560,309 740,714
Average price/Bbl $ 20.35 $ 19.67
Average price/Mcf $ 2.55 $ 1.90
As shown in the above table, total oil and gas sales decreased
$40,315 (2.1%) for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. Of this decrease,
approximately $72,000 and $343,000, respectively, were related to
decreases in volumes of oil and gas sold, partially offset by
increases of approximately $15,000 and $364,000, respectively,
related to increases in the average prices of oil and gas sold.
Volumes of oil and gas sold decreased 3,655 barrels and 180,405
Mcf, respectively, for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. The decrease in
volumes of gas sold resulted primarily from (i) normal declines
in production due to diminished gas reserves on several wells,
(ii) the sale of several gas producing wells during 1996, and
(iii) a positive gas balancing adjustment made by the operator on
one well during the six months ended June 30, 1996. Average oil
and gas prices increased to $20.35 per barrel and $2.55 per Mcf,
respectively, for the six months ended June 30, 1997 from $19.67
per barrel and $1.90 per Mcf, respectively, for the six months
ended June 30, 1996.
-36-
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $56,452 (12.1%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
decreased to 22.0% for the six months ended June 30, 1997 from
24.5% for the six months ended June 30, 1996. This percentage
decrease was primarily due to the increases in the average prices
of oil and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $221,136 (31.3%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 26.0% for the six months ended June 30, 1997
from 37.0% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The III-A Partnership recognized a non-cash charge against
earnings of $1,617,006 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the expected
undiscounted future net revenues from such oil and gas
properties, in accordance with the III-A Partnership's adoption
of SFAS No. 121. Of this amount, $184,644 was related to the
decline in oil and gas prices used to determine the
recoverability of oil and gas reserves at March 31, 1997 and
$1,432,362 was related to impairment of unproved properties. No
similar charge was necessary during the six months ended June 30,
1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses remained relatively constant at 8.8% for
the six months ended June 30, 1997 and 8.6% for the six months
ended June 30, 1996.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $22,017,701 or 83.41% of Limited Partners'
capital contributions.
PARTNERSHIP III-B
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
-37-
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $501,249 $566,244
Oil and gas production expenses $115,528 $142,026
Barrels produced 9,601 9,657
Mcf produced 138,193 191,237
Average price/Bbl $ 19.08 $ 20.22
Average price/Mcf $ 2.30 $ 1.94
As shown in the above table, total oil and gas sales decreased
$64,995 (11.5%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $103,000 was related to a decrease in
volumes of gas sold and approximately $11,000 was related to a
decrease in the average price of oil sold, partially offset by an
increase of approximately $50,000 related to an increase in the
average price of gas sold. Volumes of oil and gas sold decreased
56 barrels and 53,044 Mcf, respectively, for the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. The decrease in volumes of gas sold resulted primarily
from (i) normal declines in production due to diminished gas
reserves on several wells and (ii) the sale of several gas
producing wells during 1996. Average oil prices decreased to
$19.08 per barrel for the three months ended June 30, 1997 from
$20.22 per barrel for the three months ended June 30, 1996, while
average gas prices increased to $2.30 per Mcf for the three
months ended June 30, 1997 from $1.94 per Mcf for the three
months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $26,498 (18.7%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from the
decrease in volumes of gas sold during the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
decreased to 23.0% for the three months ended June 30, 1997 from
25.1% for the three months ended June 30, 1996. This percentage
decrease was primarily due to the increase in the average price
of gas sold during the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $62,522 (31.4%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) upward revisions
in the estimates of remaining oil and gas reserves at December
31, 1996 and (ii) the decrease in volumes of gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 27.2% for the three months ended June 30,
1997 from 35.1% for the three months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increase in the average price of gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996.
General and administrative expenses increased $2,994 (7.3%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from an increase in professional fees during the three months
-38-
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, these expenses
increased to 8.8% for the three months ended June 30, 1997 from
7.3% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $1,094,356 $1,086,126
Oil and gas production expenses $ 243,812 $ 252,392
Barrels produced 19,258 19,408
Mcf produced 280,208 375,994
Average price/Bbl $ 20.45 $ 19.75
Average price/Mcf $ 2.50 $ 1.87
As shown in the table above, total oil and gas sales remained
relatively constant for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. While the
average prices of oil and gas sold increased during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996, any resulting increase in oil and gas sales was
offset by decreases in volumes of oil and gas sold. Volumes of
oil and gas sold decreased 150 barrels and 95,786 Mcf,
respectively, for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. The decrease in volumes
of gas sold resulted primarily from (i) normal declines in
production due to diminished gas reserves on several wells, (ii)
the sale of several gas producing wells during 1996, and (iii) a
positive gas balancing adjustment made by the operator on one
well during the six months ended June 30, 1996. Average oil and
gas prices increased to $20.45 per barrel and $2.50 per Mcf,
respectively, for the six months ended June 30, 1997 from $19.75
per barrel and $1.87 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $8,580 (3.4%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from the
decrease in volumes of gas sold during the six months ended June
30, 1997 as compared to the six months ended June 30, 1996,
partially offset by credits issued on one well during the six
months ended June 30, 1996 for prior period rental expenses. As
a percentage of oil and gas sales, these expenses remained
relatively constant at 22.3% for the six months ended June 30,
1997 and 23.2% for the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $117,425 (29.9%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) the decrease in volumes of gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
-39-
expense decreased to 25.2% for the six months ended June 30, 1997
from 36.2% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The III-B Partnership recognized a non-cash charge against
earnings of $738,122 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the expected
undiscounted future net revenues from such oil and gas
properties, in accordance with the III-B Partnership's adoption
of SFAS No. 121. Of this amount, $77,653 was related to the
decline in oil and gas prices used to determine the
recoverability of oil and gas reserves at March 31, 1997 and
$660,469 was related to impairment of unproved properties. No
similar charge was necessary during the six months ended June 30,
1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses remained relatively constant at 7.9% for
the six months ended June 30, 1997 and 8.0% for the six months
ended June 30, 1996.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $12,847,353 or 92.87% of Limited Partners'
capital contributions.
PARTNERSHIP III-C
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $658,254 $799,897
Oil and gas production expenses $155,551 $193,309
Barrels produced 6,448 6,651
Mcf produced 268,585 355,664
Average price/Bbl $ 20.11 $ 20.60
Average price/Mcf $ 1.97 $ 1.86
As shown in the above table, total oil and gas sales decreased
$141,643 (17.7%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $162,000 was related to a decrease in
volumes of gas sold, partially offset by an increase of
approximately $30,000 related to an increase in the average price
of gas sold. Volumes of oil and gas sold decreased 203 barrels
and 87,079 Mcf, respectively, for the three months ended June 30,
1997 as compared to the three months ended June 30, 1996. The
decrease in volumes of gas sold resulted primarily from (i)
negative prior period volume adjustments made by the purchasers
on two wells during the three months ended June 30, 1997, (ii) a
positive prior period volume adjustment made by the purchaser on
-40-
one well during the three months ended June 30, 1996, and (iii)
normal declines in production due to diminished gas reserves on
several wells. Average oil prices decreased to $20.11 per barrel
for the three months ended June 30, 1997 from $20.60 per barrel
for the three months ended June 30, 1996, while average gas
prices increased to $1.97 per Mcf for the three months ended June
30, 1997 from $1.86 per Mcf for the three months ended June 30,
1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $37,758 (19.5%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from the
decrease in volumes of gas sold during the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
remained relatively constant at 23.6% for the three months ended
June 30, 1997 and 24.2% for the three months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $117,217 (39.3%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) upward revisions
in the estimates of remaining oil and gas reserves at December
31, 1996 and (ii) the decrease in volumes of gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 27.5% for the three months ended June 30,
1997 from 37.3% for the three months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increase in the average price of gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996.
General and administrative expenses increased $4,629 (6.4%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from an increase in professional fees during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, this expense
increased to 11.7% for the three months ended June 30, 1997 from
9.1% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $1,600,086 $1,615,671
Oil and gas production expenses $ 372,887 $ 397,313
Barrels produced 13,182 14,680
Mcf produced 579,067 732,140
Average price/Bbl $ 20.79 $ 19.36
Average price/Mcf $ 2.29 $ 1.82
-41-
As shown in the table above, total oil and gas sales remained
relatively constant for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. While the
volumes of oil and gas sold decreased during the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996,
any resulting decrease in oil and gas sales was offset by
increases in the average prices of oil and gas sold. Volumes of
oil and gas sold decreased 1,498 barrels and 153,073 Mcf,
respectively, for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. The decrease in volumes of
gas sold resulted primarily from (i) a negative prior period
volume adjustment made by the purchaser on one well during the
six months ended June 30, 1997, (ii) positive prior period volume
adjustments made by the purchasers on several wells during the
six months ended June 30, 1996, and (iii) normal declines in
production due to diminished gas reserves on several wells.
Average oil and gas prices increased to $20.79 per barrel and
$2.29 per Mcf, respectively, for the six months ended June 30,
1997 from $19.36 per barrel and $1.82 per Mcf, respectively, for
the six months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $24,426 (6.2%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from the
decrease in volumes of gas sold during the six months ended June
30, 1997 as compared to the six months ended June 30, 1996,
partially offset by credits issued on one well during the six
months ended June 30, 1996 for prior period rental expenses. As
a percentage of oil and gas sales, these expenses remained
relatively constant at 23.3% for the six months ended June 30,
1997 and 24.6% for the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $230,682 (37.3%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) the decrease in volumes of gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 24.2% for the six months ended June 30, 1997
from 38.2% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The III-C Partnership recognized a non-cash charge against
earnings of $1,696,418 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the expected
undiscounted future net revenues from such oil and gas
properties, in accordance with the III-C Partnership's adoption
of SFAS No. 121. Of this amount, $234,271 was related to the
decline in oil and gas prices used to determine the
recoverability of oil and gas reserves at March 31, 1997 and
$1,462,147 was related to impairment of unproved properties. No
similar charge was necessary during the six months ended June 30,
1996.
-42-
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses remained relatively constant at 9.9% for
the six months ended June 30, 1997 and 9.4% for the six months
ended June 30, 1996.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $14,227,795 or 58.18% of Limited Partners'
capital contributions.
PARTNERSHIP III-D
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $490,474 $562,880
Oil and gas production expenses $179,694 $192,399
Barrels produced 9,513 11,200
Mcf produced 176,235 175,787
Average price/Bbl $ 18.85 $ 19.68
Average price/Mcf $ 1.77 $ 1.95
As shown in the table above, total oil and gas sales decreased
$72,406 (12.9%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $8,000 and $32,000, respectively, were
related to decreases in the average prices of oil and gas sold
and approximately $33,000 was related to a decrease in volumes of
oil sold. Volumes of oil sold decreased 1,687 barrels, while
volumes of gas sold increased 448 Mcf for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. Average oil and gas prices decreased to $18.85 per barrel
and $1.77 per Mcf, respectively, for the three months ended June
30, 1997 from $19.68 per barrel and $1.95 per Mcf, respectively,
for the three months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $12,705 (6.6%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i)
the decrease in volumes of oil sold during the three months ended
June 30, 1997 as compared to the three months ended June 30, 1996
and (ii) a decrease in production taxes associated with the
decrease in oil and gas sales discussed above. As a percentage
of oil and gas sales this expense increased to 36.6% for the
three months ended June 30, 1997 from 34.2% for the three months
ended June 30, 1996. This percentage increase was primarily due
to the decreases in the average prices of oil and gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties remained relatively constant for the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996. As a percentage of oil and gas sales, this expense
increased to 20.9% for the three months ended June 30, 1997 from
-43-
18.5% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decreases in the average prices
of oil and gas sold during the three months ended June 30, 1997
as compared to the three months ended June 30, 1996.
General and administrative expenses increased $2,892 (7.4%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily from
an increase in professional fees during the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
increased to 8.5% for the three months ended June 30, 1997 from
6.9% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $1,261,524 $1,097,416
Oil and gas production expenses $ 414,476 $ 390,339
Barrels produced 21,955 22,078
Mcf produced 362,492 378,701
Average price/Bbl $ 20.42 $ 18.90
Average price/Mcf $ 2.24 $ 1.80
As shown in the table above, total oil and gas sales increased
$164,108 (15.0%) for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Of this
increase, approximately $33,000 and $159,000, respectively, were
related to increases in the average prices of oil and gas sold,
partially offset by a decrease of approximately $29,000 related
to a decrease in volumes of gas sold. Volumes of oil and gas
sold decreased 123 barrels and 16,209 Mcf, respectively, for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. Average oil and gas prices increased to
$20.42 per barrel and $2.24 per Mcf, respectively, for the six
months ended June 30, 1997 from $18.90 per barrel and $1.80 per
Mcf, respectively, for the six months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $24,137 (6.2%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This increase resulted primarily from (i)
an increase in production taxes associated with the increase in
oil and gas sales discussed above and (ii) workover expenses
incurred on one well during the six months ended June 30, 1997 in
order to improve the recovery of reserves, partially offset by
the decrease in volumes of gas sold during the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
As a percentage of oil and gas sales, these expenses decreased to
32.9% for the six months ended June 30, 1997 from 35.6% for the
six months ended June 30, 1996. This percentage decrease was
primarily due to the increases in the average prices of oil and
gas sold during the six months ended June 30, 1997 as compared to
six months ended June 30, 1996.
-44-
Depreciation, depletion, and amortization of oil and gas
properties decreased $56,019 (20.5%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) upward revisions in the
estimates of remaining oil and gas reserves at December 31, 1996
and (ii) the decrease in volumes of gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 17.2% for the six months ended June 30, 1997
from 24.9% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
The III-D Partnership recognized a non-cash charge against
earnings of $932,243 for the six months ended June 30, 1997.
This impairment provision was necessary due to the unamortized
costs of oil and gas properties exceeding the expected
undiscounted future net revenues from such oil and gas
properties, in accordance with the III-D Partnership's adoption
of SFAS No. 121. Of this amount, $485,820 was related to the
decline in oil and gas prices used to determine the
recoverability of oil and gas reserves at March 31, 1997 and
$446,423 was related to impairment of unproved properties. No
similar charge was necessary during the six months ended June 30,
1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 6.8% for the six months ended
June 30, 1997 from 7.5% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increase in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $6,927,669 or 52.88% of Limited Partners'
capital contributions.
PARTNERSHIP III-E
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
----------------------------
1997 1996
---------- ----------
Oil and gas sales $2,106,131 $2,123,185
Oil and gas production expenses $1,025,382 $1,071,465
Barrels produced 53,422 62,938
Mcf produced 585,780 487,162
Average price/Bbl $ 18.22 $ 19.38
Average price/Mcf $ 1.93 $ 1.85
As shown in the table above, total oil and gas sales remained
relatively constant for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Any decrease
in oil and gas sales related to the decreases in volumes and the
-45-
average price of oil sold during the three months ended June 30,
1997 as compared to the three months ended June 30, 1996 was
offset by increases related to increases in volumes and the
average price of gas sold. Volumes of oil sold decreased 9,516
barrels, while volumes of gas sold increased 98,618 Mcf,
respectively, for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. The increase
in volumes of gas sold resulted primarily from (i) a positive
prior period volume adjustment made by the purchaser on one well
during the three months ended June 30, 1997, (ii) a negative
prior period volume adjustment made by the purchaser on another
well during the three months ended June 30, 1996, and (iii)
increased production on one well due to a workover performed
during the last half of 1996 in order to improve the recovery of
reserves. Average oil prices decreased to $18.22 per barrel for
the three months ended June 30, 1997 from $19.38 per barrel for
the three months ended June 30, 1996. Average gas prices
increased to $1.93 per Mcf for the three months ended June 30,
1997 from $1.85 per Mcf for the three months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $46,083 (4.3%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i) a
positive prior period adjustment made by the operator of one well
during the three months ended June 30, 1997 related to ad valorem
taxes and (ii) overall decreases in general repairs and
maintenance expenses incurred on several wells during the three
months ended June 30, 1997 as compared to the three months ended
June 30, 1996, partially offset by the increase in volumes of gas
sold during the three months ended June 30, 1997 as compared to
the three months ended June 30, 1996. As a percentage of oil and
gas sales, these expenses decreased to 48.7% for the three months
ended June 30, 1997 from 50.5% for the three months ended June
30, 1996. This percentage decrease was primarily due to the
increase in the average price of gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $38,957 (8.1%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from an upward revision
in the estimate of remaining oil reserves at December 31, 1996,
partially offset by the increase in volumes of gas sold during
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 20.9% for the three months ended
June 30, 1997 from 22.5% for the three months ended June 30,
1996. This percentage decrease was primarily due to the increase
in the average price of gas sold during the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996.
General and administrative expenses increased $10,076 (8.1%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from an increase in professional fees and printing and postage
expenses during the three months ended June 30, 1997 as compared
to the three months ended June 30, 1996. As a percentage of oil
and gas sales, these expenses increased to 6.4% for the three
-46-
months ended June 30, 1997 from 5.8% for the three months ended
June 30, 1996. This percentage increase was primarily due to the
dollar increase in general and administrative expenses discussed
above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $5,036,109 $4,155,385
Oil and gas production expenses $2,157,837 $2,053,931
Barrels produced 127,241 121,001
Mcf produced 1,153,345 1,061,015
Average price/Bbl $ 20.22 $ 18.77
Average price/Mcf $ 2.14 $ 1.85
As shown in the table above, total oil and gas sales increased
$880,724 (21.2%) for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Of this
increase, approximately $184,000 and $334,000, respectively, were
related to increases in the average prices of oil and gas sold
and approximately $117,000 and $171,000, respectively, were
related to increases in volumes of oil and gas sold. Volumes of
oil and gas sold increased 6,240 barrels and 92,330 Mcf,
respectively, for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. Average oil and gas
prices increased to $20.22 per barrel and $2.14 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.77
per barrel and $1.85 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $103,906 (5.1%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This increase resulted primarily from
increases in volumes of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
decreased to 42.8% for the six months ended June 30, 1997 from
49.4% for the six months ended June 30, 1996. This percentage
decrease was primarily due to the increases in the average prices
of oil and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $34,276 (3.6%) for the six months ended June
30, 1997 as compared to the six months ended June 30, 1996. This
decrease resulted primarily from an upward revision in the
estimate of remaining oil reserves at December 31, 1996,
partially offset by increases in volumes of oil and gas sold
during the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 18.5% for the six months ended
June 30, 1997 from 23.2% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold during the six months
ended June 30, 1997 as compared to the six months ended June 30,
1996.
-47-
As set forth under "Results of Operations" above, the III-E
Partnership recognized a non-cash charge against earnings of
$2,893,741 for the six months ended June 30, 1997. This
impairment provision was necessary due to the unamortized costs
of oil and gas properties exceeding the expected undiscounted
future net revenues from such oil and gas properties, in
accordance with the III-E Partnership's adoption of SFAS No. 121.
Of this amount, $2,042,775 was related to the decline in oil and
gas prices used to determine the recoverability of oil and gas
reserves at March 31, 1997 and $850,966 was related to impairment
of unproved properties. No similar charge was necessary during
the six months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 5.4% for the six months ended
June 30, 1997 from 6.3% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increase in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $25,413,016 or 60.76% of Limited Partners'
capital contributions.
PARTNERSHIP III-F
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
----------------------------
1997 1996
-------- --------
Oil and gas sales $691,158 $736,245
Oil and gas production expenses $285,718 $401,993
Barrels produced 18,583 18,820
Mcf produced 223,129 266,461
Average price/Bbl $ 18.86 $ 19.16
Average price/Mcf $ 1.53 $ 1.41
As shown in the table above, total oil and gas sales decreased
$45,087 (6.1%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $5,000 and $61,000, respectively, were
related to decreases in volumes of oil and gas sold and
approximately $6,000 was related to a decrease in the average
price of oil sold, partially offset by an increase of
approximately $27,000 related to an increase in the average price
of gas sold. Volumes of oil and gas sold decreased 237 barrels
and 43,332 Mcf, respectively, for the three months ended June 30,
1997 as compared to the three months ended June 30, 1996. The
decrease in volumes of gas sold resulted primarily from (i) the
shutting-in of two wells during the three months ended June 30,
1997 to perform workovers in order to improve the recovery of
reserves, (ii) a normal decline in production due to diminished
gas reserves on one well, (iii) a negative prior period volume
adjustment made by the purchaser on one well during the three
months ended June 30, 1997, and (iv) the shutting-in of another
well during the three months ended June 30, 1997 due to
mechanical difficulties. Average oil prices decreased to $18.86
-48-
per barrel for the three months ended June 30, 1997 from $19.16
per barrel for the three months ended June 30, 1996. Average gas
prices increased to $1.53 per Mcf for the three months ended June
30, 1997 from $1.41 per Mcf for the three months ended June 30,
1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $116,275 (28.9%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i)
the sale of one well during 1996, (ii) decreases in surface
repair and maintenance expenses incurred on two wells during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996, and (iii) the decrease in volumes of gas
sold during the three months ended June 30, 1997 as compared to
the three months ended June 30, 1996. As a percentage of oil and
gas sales, these expenses decreased to 41.3% for the three months
ended June 30, 1997 from 54.6% for the three months ended June
30, 1996. This percentage decrease was primarily due to the
dollar decrease in production expenses discussed above and the
increase in the average price of gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $76,943 (22.6%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) an upward
revision in the estimate of remaining oil reserves at December
31, 1996 and (ii) the decrease in volumes of gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 38.1% for the three months ended June 30,
1997 from 46.2% for the three months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increase in the average price of gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996.
General and administrative expenses increased $5,165 (7.9%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from an increase in professional fees and printing and postage
expenses during the three months ended June 30, 1997 as compared
to the three months ended June 30, 1996. As a percentage of oil
and gas sales, these expenses increased to 10.3% for the three
months ended June 30, 1997 from 8.9% for the three months ended
June 30, 1996. This percentage increase was primarily due to the
decrease in oil and gas sales discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $1,625,145 $1,456,313
Oil and gas production expenses $ 617,406 $ 711,193
Barrels produced 34,978 37,959
-49-
Mcf produced 470,113 497,469
Average price/Bbl $ 19.92 $ 18.56
Average price/Mcf $ 1.98 $ 1.51
As shown in the table above, total oil and gas sales increased
$168,832 (11.6%) for the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. Of this
increase, approximately $48,000 and $221,000, respectively, were
related to increases in the average prices of oil and gas sold,
partially offset by decreases of approximately $55,000 and
$41,000, respectively, related to decreases in volumes of oil and
gas sold. Volumes of oil and gas sold decreased 2,981 barrels
and 27,356 Mcf, respectively, for the six months ended June 30,
1997 as compared to the six months ended June 30, 1996. Average
oil and gas prices increased to $19.92 per barrel and $1.98 per
Mcf, respectively, for the six months ended June 30, 1997 from
$18.56 per barrel and $1.51 per Mcf, respectively, for the six
months ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $93,787 (13.2%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
the sale of two wells during 1996, (ii) workover expenses
incurred on two wells during the six months ended June 30, 1996
in order to improve the recovery of reserves, (iii) a decrease in
general repairs and maintenance expenses incurred on one well
during the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996, and (iv) decreases in volumes of oil
and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. As a percentage
of oil and gas sales, these expenses decreased to 38.0% for the
six months ended June 30, 1997 from 44.7% for the six months
ended June 30, 1996. This percentage decrease was primarily due
to the increases in the average prices of oil and gas sold during
the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $115,368 (17.7%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) an upward revision in
the estimate of remaining oil reserves at December 31, 1996 and
(ii) decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 32.9% for the six months ended June 30, 1997
from 44.7% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
As set forth under "Results of Operations" above, the III-F
Partnership recognized a non-cash charge against earnings of
$2,884,405 for the six months ended June 30, 1997. This
impairment provision was necessary due to the unamortized costs
of oil and gas properties exceeding the expected undiscounted
future net revenues from such oil and gas properties, in
accordance with the III-F Partnership's adoption of SFAS No. 121.
-50-
Of this amount, $2,078,019 was related to the decline in oil and
gas prices used to determine the recoverability of oil and gas
reserves at March 31, 1997 and $806,386 was related to impairment
of unproved properties. No similar charge was necessary during
the six months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 8.8% for the six months ended
June 30, 1997 from 9.5% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increase in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $9,369,904 or 42.31% of Limited Partners'
capital contributions.
PARTNERSHIP III-G
THREE MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE THREE MONTHS
ENDED JUNE 30, 1996.
Three Months Ended June 30,
---------------------------
1997 1996
-------- --------
Oil and gas sales $434,013 $467,201
Oil and gas production expenses $182,425 $261,054
Barrels produced 13,330 13,704
Mcf produced 117,810 142,136
Average price/Bbl $ 18.99 $ 19.21
Average price/Mcf $ 1.54 $ 1.44
As shown in the table above, total oil and gas sales decreased
$33,188 (7.1%) for the three months ended June 30, 1997 as
compared to the three months ended June 30, 1996. Of this
decrease, approximately $7,000 and $35,000, respectively, were
related to decreases in volumes of oil and gas sold and
approximately $3,000 was related to a decrease in the average
price of oil sold, partially offset by an increase of
approximately $12,000 related to an increase in the average price
of gas sold. Volumes of oil and gas sold decreased 374 barrels
and 24,326 Mcf, respectively, for the three months ended June 30,
1997 as compared to the three months ended June 30, 1996. The
decrease in volumes of gas sold resulted primarily from (i) the
shutting-in of two wells during the three months ended June 30,
1997 to perform workovers in order to improve the recovery of
reserves, (ii) a normal decline in production due to diminished
gas reserves on one well, (iii) a negative prior period volume
adjustment made by the purchaser on one well during the three
months ended June 30, 1997, and (iv) the shutting-in of another
well during the three months ended June 30, 1997 due to
mechanical difficulties. Average oil prices decreased to $18.99
per barrel for the three months ended June 30, 1997 from $19.21
per barrel for the three months ended June 30,1996. Average gas
prices increased to $1.54 per Mcf for the three months ended June
30, 1997 from $1.44 per Mcf for the three months ended June 30,
1996.
-51-
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $78,629 (30.1%) for the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. This decrease resulted primarily from (i)
the sale of one well during 1996, (ii) decreases in surface
repair and maintenance expenses incurred on two wells during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996, (iii) workover expenses incurred on one well
during the three months ended June 30, 1996 in order to improve
the recovery of reserves, and (iv) decreases in volumes of gas
sold during the three months ended June 30, 1997 as compared to
the three months ended June 30, 1996. As a percentage of oil and
gas sales, these expenses decreased to 42.0% for the three months
ended June 30, 1997 from 55.9% for the three months ended June
30, 1996. This percentage decrease was primarily due to the
increase in the average price of gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $61,718 (29.5%) for the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. This decrease resulted primarily from (i) an upward
revision in the estimate of remaining oil reserves at December
31, 1996 and (ii) the decrease in volumes of gas sold during the
three months ended June 30, 1997 as compared to the three months
ended June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 34.0% for the three months ended June 30,
1997 from 44.8% for the three months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increase in the average price of gas sold during the three months
ended June 30, 1997 as compared to the three months ended June
30, 1996.
General and administrative expenses increased $2,785 (7.7%) for
the three months ended June 30, 1997 as compared to the three
months ended June 30, 1996. This increase resulted primarily
from increases in professional fees during the three months ended
June 30, 1997 as compared to the three months ended June 30,
1996. As a percentage of oil and gas sales, these expenses
increased to 9.0% for the three months ended June 30, 1997 from
7.8% for the three months ended June 30, 1996. This percentage
increase was primarily due to the decrease in oil and gas sales
discussed above.
SIX MONTHS ENDED JUNE 30, 1997 AS COMPARED TO THE SIX MONTHS
ENDED JUNE 30, 1996.
Six Months Ended June 30,
-------------------------
1997 1996
---------- --------
Oil and gas sales $1,007,130 $923,266
Oil and gas production expenses $ 397,610 $464,523
Barrels produced 25,390 27,780
Mcf produced 249,707 266,946
Average price/Bbl $ 20.01 $ 18.60
Average price/Mcf $ 2.00 $ 1.52
-52-
As shown in the table above, total oil and gas sales increased
$83,865 (9.1%) for the six months ended June 30, 1997 as compared
to the six months ended June 30, 1996. Of this increase,
approximately $36,000 and $120,000, respectively, were related to
increases in the average prices of oil and gas sold, partially
offset by decreases of approximately $44,000 and $26,000,
respectively, related to decreases in volumes of oil and gas
sold. Volumes of oil and gas sold decreased 2,390 barrels and
17,239 Mcf, respectively, for the six months ended June 30, 1997
as compared to the six months ended June 30, 1996. Average oil
and gas prices increased to $20.01 per barrel and $2.00 per Mcf,
respectively, for the six months ended June 30, 1997 from $18.60
per barrel and $1.52 per Mcf, respectively, for the six months
ended June 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $66,913 (14.4%) for the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996. This decrease resulted primarily from (i)
the sale of two wells during 1996, (ii) workover expenses
incurred on three wells during the six months ended June 30, 1996
in order to improve the recovery of reserves, (iii) a decrease in
general repairs and maintenance expenses incurred on one well
during the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996, and (iv) decreases in volumes of oil
and gas sold during the six months ended June 30, 1997 as
compared to the six months ended June 30, 1996. As a percentage
of oil and gas sales, these expenses decreased to 39.5% for the
six months ended June 30, 1997 from 50.3% for the six months
ended June 30, 1996. This percentage decrease was primarily due
to the increases in the average prices of oil and gas sold during
the six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $104,522 (25.8%) for the six months ended
June 30, 1997 as compared to the six months ended June 30, 1996.
This decrease resulted primarily from (i) an upward revision in
the estimate of remaining oil reserves at December 31, 1996 and
(ii) decreases in volumes of oil and gas sold during the six
months ended June 30, 1997 as compared to the six months ended
June 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 29.8% for the six months ended June 30, 1997
from 43.8% for the six months ended June 30, 1996. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization discussed above and the
increases in the average prices of oil and gas sold during the
six months ended June 30, 1997 as compared to the six months
ended June 30, 1996.
As set forth under "Results of Operations" above, the III-G
Partnership recognized a non-cash charge against earnings of
$1,449,404 for the six months ended June 30, 1997. This
impairment provision was necessary due to the unamortized costs
of oil and gas properties exceeding the expected undiscounted
future net revenues from such oil and gas properties, in
accordance with the III-G Partnership's adoption of SFAS No. 121.
Of this amount, $1,010,738 was related to the decline in oil and
gas prices used to determine the recoverability of oil and gas
reserves at March 31, 1997 and $438,666 was related to impairment
-53-
of unproved properties. No similar charge was necessary during
the six months ended June 30, 1996.
General and administrative expenses remained relatively constant
for the six months ended June 30, 1997 as compared to the six
months ended June 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 7.8% for the six months ended
June 30, 1997 from 8.2% for the six months ended June 30, 1996.
This percentage decrease was primarily due to the increase in oil
and gas sales discussed above.
The Limited Partners have received cash distributions through
June 30, 1997 totaling $4,748,287 or 38.94% of Limited Partners'
capital contributions.
-54-
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As further described in the Partnerships' Report on Form 8-K
filed April 2, 1997 (the "Form 8-K") the Partnerships are
included in the subject matter of a class action lawsuit entitled
"In Re: PaineWebber Limited Partnerships' Litigation", Case No.
94-CIV-8558, U.S. District Court, Southern District of New York.
On July 30, 1997 the United States Court of Appeals for the
Second Circuit issued an opinion affirming the terms of the
federal district court's order confirming the settlement of this
lawsuit. The terms of said settlement are described in the Form
8-K.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27.1 Financial Data Schedule containing summary financial
information extracted from the III-A Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the III-B Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the III-C Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the III-D Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the III-E Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the III-F Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
27.7 Financial Data Schedule containing summary financial
information extracted from the III-G Partnership's
financial statements as of June 30, 1997 and for the
six months ended June 30, 1997, filed herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K:
-55-
Current Reports on Form 8-K filed during second quarter of
1997:
Date of event: March 20, 1997
Date filed with SEC: April 2, 1997
Item included:
Item 5 - Other Events
-56-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
(Registrant)
By: GEODYNE RESOURCES, INC.
General Partner
Date: August 13, 1997 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: August 13, 1997 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-57-
INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-A's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-B's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-C's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-D's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-E's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-F's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
27.7 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-G's financial statements as of June 30, 1997
and for the six months ended June 30, 1997, filed herewith.
All other exhibits are omitted as inapplicable.