SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 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
September 30, December 31,
1997 1996
------------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 536,791 $ 610,116
Accounts receivable:
Oil and gas sales 496,457 680,167
---------- ----------
Total current assets $1,033,248 $1,290,283
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method $2,557,658 $5,360,656
DEFERRED CHARGE $ 244,220 $ 244,220
---------- ----------
$3,835,126 $6,895,159
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 34,556 $ 50,726
Gas imbalance payable 76,797 76,797
---------- ----------
Total current liabilities $ 111,353 $ 127,523
ACCRUED LIABILITY $ 80,396 $ 80,396
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 205,964) ($ 198,911)
Limited Partners, issued and
outstanding, 263,976 units 3,849,341 6,886,151
---------- ----------
Total Partners' capital $3,643,377 $6,687,240
---------- ----------
$3,835,126 $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 SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- ----------
REVENUES:
Oil and gas sales $712,026 $811,194
Interest and other income 9,002 6,108
Loss on sale of oil and gas
properties ( 387) ( 91,366)
-------- --------
$720,641 $725,936
COSTS AND EXPENSES:
Lease operating $ 76,887 $166,628
Production tax 54,458 50,594
Depreciation, depletion, and
amortization of oil and gas
properties 205,936 295,530
General and administrative (Note 2) 74,192 81,200
-------- --------
$411,473 $593,952
-------- --------
NET INCOME $309,168 $131,984
======== ========
GENERAL PARTNER - NET INCOME $ 23,246 $ 18,115
======== ========
LIMITED PARTNERS - NET INCOME $285,922 $113,869
======== ========
NET INCOME per unit $ 1.08 $ .43
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- -----------
REVENUES:
Oil and gas sales $2,578,627 $2,718,110
Interest and other income 22,480 15,928
Loss on sale of oil and gas
properties ( 10,842) ( 91,216)
---------- ----------
$2,590,265 $2,642,822
COSTS AND EXPENSES:
Lease operating $ 338,876 $ 497,018
Production tax 202,696 186,883
Depreciation, depletion, and
amortization of oil and gas
properties 691,287 1,002,017
Impairment provision 1,617,006 -
General and administrative (Note 2) 238,929 246,014
---------- ----------
$3,088,794 $1,931,932
---------- ----------
NET INCOME (LOSS) ($ 498,529) $ 710,890
========== ==========
GENERAL PARTNER - NET INCOME $ 66,281 $ 74,829
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 564,810) $ 636,061
========== ==========
NET INCOME (LOSS) per unit ($ 2.14) $ 2.41
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 498,529) $ 710,890
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 691,287 1,002,017
Impairment provision 1,617,006 -
Loss on sale of oil and gas
properties 10,842 91,216
Increase in accounts receivable -
General Partner - ( 8,471)
Decrease in accounts receivable -
oil and gas sales 183,710 93,416
Decrease in accounts payable ( 16,170) ( 30,983)
---------- ----------
Net cash provided by operating
activities $1,988,146 $1,858,085
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 36,054) ($ 5,766)
Proceeds from sale of oil and
gas properties 519,917 264,666
---------- ----------
Net cash provided by investing
activities $ 483,863 $ 258,900
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,545,334) ($1,814,617)
---------- ----------
Net cash used by financing
activities ($2,545,334) ($1,814,617)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 73,325) $ 302,368
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 610,116 560,906
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 536,791 $ 863,274
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 298,551 $ 376,603
Accounts receivable:
Oil and gas sales 294,179 396,970
---------- ----------
Total current assets $ 592,730 $ 773,573
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method $1,503,478 $2,854,520
DEFERRED CHARGE $ 144,819 $ 144,819
---------- ----------
$2,241,027 $3,772,912
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 37,720 $ 27,983
Gas imbalance payable 26,735 26,735
---------- ----------
Total current liabilities $ 64,455 $ 54,718
ACCRUED LIABILITY $ 38,690 $ 38,690
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 101,600) ($ 97,092)
Limited Partners, issued and
outstanding, 138,336 units 2,239,482 3,776,596
---------- ----------
Total Partners' capital $2,137,882 $3,679,504
---------- ----------
$2,241,027 $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 SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- --------
REVENUES:
Oil and gas sales $428,266 $473,499
Interest and other income 4,890 3,035
Loss on sale of oil and gas
properties ( 159) ( 53,397)
-------- --------
$432,997 $423,137
COSTS AND EXPENSES:
Lease operating $ 52,059 $ 92,928
Production tax 32,868 30,780
Depreciation, depletion, and
amortization of oil and gas
properties 118,845 165,720
General and administrative (Note 2) 38,884 42,685
-------- --------
$242,656 $332,113
-------- --------
NET INCOME $190,341 $ 91,024
======== ========
GENERAL PARTNER - NET $ 14,026 $ 11,028
======== ========
LIMITED PARTNERS - NET INCOME $176,315 $ 79,996
======== ========
NET INCOME per unit $ 1.27 $ .58
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
REVENUES:
Oil and gas sales $1,522,622 $1,559,625
Interest and other income 12,551 8,429
Loss on sale of oil and gas
properties ( 7,832) ( 53,334)
---------- ----------
$1,527,341 $1,514,720
COSTS AND EXPENSES:
Lease operating $ 210,321 $ 265,622
Production tax 118,418 110,478
Depreciation, depletion, and
amortization of oil and gas
properties 394,554 558,854
Impairment provision 738,122 -
General and administrative (Note 2) 125,331 129,564
---------- ----------
$1,586,746 $1,064,518
---------- ----------
NET INCOME (LOSS) ($ 59,405) $ 450,202
========== ==========
GENERAL PARTNER - NET INCOME $ 41,709 $ 44,443
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 101,114) $ 405,759
========== ==========
NET INCOME (LOSS) per unit ($ .73) $ 2.93
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 59,405) $ 450,202
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 394,554 558,854
Impairment provision 738,122 -
Loss on sale of oil and gas
properties 7,832 53,334
Increase in accounts receivable -
General Partner - ( 23,982)
Decrease in accounts receivable -
oil and gas sales 102,791 56,774
Increase (decrease) in accounts
payable 9,737 ( 17,063)
---------- ----------
Net cash provided by operating
activities $1,193,631 $1,078,119
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 41,925) ($ 22,206)
Proceeds from sale of oil and
gas properties 252,459 120,876
---------- ----------
Net cash provided by investing
activities $ 210,534 $ 98,670
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,482,217) ($1,054,517)
---------- ----------
Net cash used by financing
activities ($1,482,217) ($1,054,517)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 78,052) $ 122,272
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 376,603 311,585
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 298,551 $ 433,857
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1997 1996
------------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 359,586 $ 537,233
Accounts receivable:
General Partner (Note 2) 9,176 40,940
Oil and gas sales 445,290 627,697
---------- ----------
Total current assets $ 814,052 $1,205,870
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method $3,443,731 $5,727,898
DEFERRED CHARGE $ 76,014 $ 76,014
---------- ----------
$4,333,797 $7,009,782
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 35,965 $ 57,357
Gas imbalance payable 30,749 30,749
---------- ----------
Total current liabilities $ 66,714 $ 88,106
ACCRUED LIABILITY $ 141,394 $ 141,394
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 174,245)($ 143,741)
Limited Partners, issued and
outstanding, 244,536 units 4,299,934 6,924,023
---------- ----------
Total Partners' capital $4,125,689 $6,780,282
---------- ----------
$4,333,797 $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 SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- --------
REVENUES:
Oil and gas sales $633,934 $694,017
Interest and other income 5,071 4,680
Gain on sale of oil and gas
properties 17,697 31,285
-------- --------
$656,702 $729,982
COSTS AND EXPENSES:
Lease operating $102,256 $123,204
Production tax 46,589 50,332
Depreciation, depletion, and
amortization of oil and gas
properties 176,829 262,973
General and administrative (Note 2) 68,732 69,817
-------- --------
$394,406 $506,326
-------- --------
NET INCOME $262,296 $223,656
======== ========
GENERAL PARTNER - NET INCOME $ 19,934 $ 21,468
======== ========
LIMITED PARTNERS - NET INCOME $242,362 $202,188
======== ========
NET INCOME per unit $ .99 $ .83
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
----------- ----------
REVENUES:
Oil and gas sales $2,234,020 $2,309,688
Interest and other income 15,763 11,181
Gain on sale of oil and gas
properties 73,369 31,311
---------- ----------
$2,323,152 $2,352,180
COSTS AND EXPENSES:
Lease operating $ 354,901 $ 404,017
Production tax 166,831 166,832
Depreciation, depletion, and
amortization of oil and gas
properties 564,045 880,871
Impairment provision 1,696,418 -
General and administrative (Note 2) 226,703 222,156
---------- ----------
$3,008,898 $1,673,876
---------- ----------
NET INCOME (LOSS) ($ 685,746) $ 678,304
========== ==========
GENERAL PARTNER - NET INCOME $ 55,343 $ 68,591
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 741,089) $ 609,713
========== ==========
NET INCOME (LOSS) per unit ($ 3.03) $ 2.49
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 685,746) $ 678,304
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 564,045 880,871
Impairment provision 1,696,418 -
Gain on sale of oil and gas
properties ( 73,369) ( 31,311)
Increase (decrease) in accounts
receivable - General Partner 31,764 ( 4,958)
Decrease in accounts receivable -
oil and gas sales 182,407 4,763
Decrease in accounts payable ( 21,392) ( 40,190)
---------- ----------
Net cash provided by operating
activities $1,694,127 $1,487,479
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 69,357) ($ 13,053)
Proceeds from sale of oil and
gas properties 166,430 99,500
---------- ----------
Net cash provided by investing
activities $ 97,073 $ 86,447
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,968,847) ($1,294,541)
---------- ----------
Net cash used by financing
activities ($1,968,847) ($1,294,541)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 177,647) $ 279,385
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 537,233 319,730
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 359,586 $ 599,115
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 257,226 $ 319,245
Accounts receivable:
General Partner (Note 2) 1,314 -
Oil and gas sales 318,724 425,312
---------- ----------
Total current assets $ 577,264 $ 744,557
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method $2,220,218 $3,470,494
DEFERRED CHARGE $ 26,139 $ 26,139
---------- ----------
$2,823,621 $4,241,190
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 50,062 $ 112,221
Gas imbalance payable 5,694 5,694
---------- ----------
Total current liabilities $ 55,756 $ 117,915
ACCRUED LIABILITY $ 220,286 $ 220,286
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 61,725)($ 50,214)
Limited Partners, issued and
outstanding, 131,008 units 2,609,304 3,953,203
---------- ----------
Total Partners' capital $2,547,579 $3,902,989
---------- ----------
$2,823,621 $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 SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
-------- --------
REVENUES:
Oil and gas sales $472,603 $567,772
Interest and other income 3,042 2,658
Gain on sale of oil and
gas properties 3,234 36,370
-------- --------
$478,879 $606,800
COSTS AND EXPENSES:
Lease operating $149,391 $166,278
Production tax 35,345 41,391
Depreciation, depletion, and
amortization of oil and gas
properties 99,845 134,379
General and administrative (Note 2) 36,823 38,116
-------- --------
$321,404 $380,164
-------- --------
NET INCOME $157,475 $226,636
======== ========
GENERAL PARTNER - NET INCOME $ 11,715 $ 16,574
======== ========
LIMITED PARTNERS - NET INCOME $145,760 $210,062
======== ========
NET INCOME per unit $ 1.11 $ 1.60
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $1,734,127 $1,665,188
Interest and other income 9,459 6,531
Gain on sale of oil and
gas properties 23,702 36,370
---------- ----------
$1,767,288 $1,708,089
COSTS AND EXPENSES:
Lease operating $ 474,265 $ 479,936
Production tax 124,947 118,072
Depreciation, depletion, and
amortization of oil and gas
properties 317,302 407,855
Impairment provision 932,243 -
General and administrative (Note 2) 122,100 120,057
---------- ----------
$1,970,857 $1,125,920
---------- ----------
NET INCOME (LOSS) ($ 203,569) $ 582,169
========== ==========
GENERAL PARTNER - NET INCOME $ 39,330 $ 45,096
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 242,899) $ 537,073
========== ==========
NET INCOME (LOSS) per unit ($ 1.85) $ 4.10
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 203,569) $582,169
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 317,302 407,855
Impairment provision 932,243 -
Gain on sale of oil and gas
properties ( 23,702) ( 36,370)
Increase in accounts receivable -
General Partner ( 1,314) ( 3,020)
Decrease in accounts receivable -
oil and gas sales 106,588 30,427
Decrease in accounts payable ( 62,159) ( 13,432)
---------- --------
Net cash provided by operating
activities $1,065,389 $967,629
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 670) ($ 15,057)
Proceeds from sale of oil and gas
properties 25,103 37,183
---------- --------
Net cash provided by investing
activities $ 24,433 $ 22,126
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,151,841) ($798,492)
---------- --------
Net cash used by financing
activities ($1,151,841) ($798,492)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 62,019) $191,263
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 319,245 169,395
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 257,226 $360,658
========== ========
The accompanying condensed notes are an integral
part of these financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 930,517 $ 1,243,143
Accounts receivable:
Oil and gas sales 1,216,977 1,554,748
----------- -----------
Total current assets $ 2,147,494 $ 2,797,891
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method $ 8,635,548 $12,822,109
DEFERRED CHARGE $ 298,358 $ 298,358
----------- -----------
$11,081,400 $15,918,358
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 348,127 $ 623,087
Gas imbalance payable 156,497 156,497
----------- -----------
Total current liabilities $ 504,624 $ 779,584
ACCRUED LIABILITY $ 355,235 $ 355,235
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 194,628) ($ 187,947)
Limited Partners, issued and
outstanding, 418,266 units 10,416,169 14,971,486
----------- -----------
Total Partners' capital $10,221,541 $14,783,539
----------- -----------
$11,081,400 $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 SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $1,878,608 $2,529,876
Interest and other income 11,414 9,143
Gain on sale of oil and gas
properties 136 23,687
---------- ----------
$1,890,158 $2,562,706
COSTS AND EXPENSES:
Lease operating $ 901,133 $ 936,336
Production tax 137,778 183,359
Depreciation, depletion, and
amortization of oil and gas
properties 426,859 564,377
General and administrative (Note 2) 117,537 119,439
---------- ----------
$1,583,307 $1,803,511
---------- ----------
NET INCOME $ 306,851 $ 759,195
========== ==========
GENERAL PARTNER - NET INCOME $ 31,846 $ 59,269
========== ==========
LIMITED PARTNERS - NET INCOME $ 275,005 $ 699,926
========== ==========
NET INCOME per unit $ .66 $ 1.67
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $6,914,717 $6,685,261
Interest and other income 34,775 25,319
Gain (loss) on sale of oil and
gas properties ( 174) 23,687
---------- ----------
$6,949,318 $6,734,267
COSTS AND EXPENSES:
Lease operating $2,703,699 $2,707,858
Production tax 493,049 465,768
Depreciation, depletion, and
amortization of oil and gas
properties 1,356,502 1,528,296
Impairment provision 2,893,741 -
General and administrative (Note 2) 388,691 379,825
---------- ----------
$7,835,682 $5,081,747
---------- ----------
NET INCOME (LOSS) ($ 886,364) $1,652,520
========== ==========
GENERAL PARTNER - NET INCOME $ 123,953 $ 142,492
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($1,010,317) $1,510,028
========== ==========
NET INCOME (LOSS) per unit ($ 2.42) $ 3.61
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($ 886,364) $1,652,520
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 1,356,502 1,528,296
Impairment provision 2,893,741 -
(Gain) loss on sale of oil and
gas properties 174 ( 23,687)
Increase in accounts receivable -
General Partner - ( 18,745)
Decrease in accounts receivable -
oil and gas sales 337,771 208,915
Decrease in accounts payable ( 274,960) ( 35,918)
---------- ----------
Net cash provided by operating
activities $3,426,864 $3,311,381
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 70,042) ($ 26,766)
Proceeds from sale of oil and
gas properties 6,186 27,959
---------- ----------
Net cash provided (used) by
investing activities ($ 63,856) $ 1,193
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($3,675,634) ($2,832,352)
---------- ----------
Net cash used by financing
activities ($3,675,634) ($2,832,352)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 312,626) $ 480,222
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,243,143 665,050
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 930,517 $1,145,272
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 405,896 $ 504,658
Accounts receivable:
Oil and gas sales 456,349 661,215
---------- ----------
Total current assets $ 862,245 $1,165,873
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method $3,645,290 $7,307,487
DEFERRED CHARGE $ 159,453 $ 159,453
---------- ----------
$4,666,988 $8,632,813
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 145,802 $ 168,316
Gas imbalance payable 109,044 109,044
---------- ----------
Total current liabilities $ 254,846 $ 277,360
ACCRUED LIABILITY $ 142,686 $ 142,686
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 139,777)($ 97,523)
Limited Partners, issued and
outstanding, 221,484 units 4,409,233 8,310,290
---------- ----------
Total Partners' capital $4,269,456 $8,212,767
---------- ----------
$4,666,988 $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 SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- ---------
REVENUES:
Oil and gas sales $656,490 $801,543
Interest and other income 5,029 3,735
Gain on sale of oil and gas
properties 113 5,951
-------- --------
$661,632 $811,229
COSTS AND EXPENSES:
Lease operating $295,930 $180,805
Production tax 37,135 34,058
Depreciation, depletion, and
amortization of oil and gas
properties 268,417 307,634
General and administrative (Note 2) 62,247 63,302
-------- --------
$663,729 $585,799
-------- --------
NET INCOME (LOSS) ($ 2,097) $225,430
======== ========
GENERAL PARTNER - NET INCOME $ 10,380 $ 23,135
======== ========
LIMITED PARTNERS - NET INCOME (LOSS) ($ 12,477) $202,295
======== ========
NET INCOME (LOSS) per unit ($ .06) $ .91
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
---------- ----------
REVENUES:
Oil and gas sales $2,281,635 $2,257,857
Interest and other income 16,453 8,839
Gain (loss) on sale of oil and
gas properties ( 120) 5,951
---------- ----------
$2,297,968 $2,272,647
COSTS AND EXPENSES:
Lease operating $ 826,588 $ 813,473
Production tax 123,883 112,583
Depreciation, depletion, and
amortization of oil and gas
properties 803,335 957,920
Impairment provision 2,884,405 -
General and administrative (Note 2) 205,410 201,404
---------- ----------
$4,843,621 $2,085,380
---------- ----------
NET INCOME (LOSS) ($2,545,653) $ 187,267
========== ==========
GENERAL PARTNER - NET INCOME $ 19,404 $ 47,238
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($2,565,057) $ 140,029
========== ==========
NET INCOME (LOSS) per unit ($ 11.58) $ .63
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($2,545,653) $ 187,267
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 803,335 957,920
Impairment provision 2,884,405 -
(Gain) loss on sale of oil and
gas properties 120 ( 5,951)
Increase in accounts receivable -
General Partner - ( 2,786)
(Increase) decrease in accounts
receivable - oil and gas sales 204,866 ( 81,477)
Decrease in accounts payable ( 22,514) ( 26,023)
---------- ----------
Net cash provided by operating
activities $1,324,559 $1,028,950
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 31,343) ($ 5,535)
Proceeds from sale of oil and
gas properties 5,680 39,038
---------- ----------
Net cash provided (used) by
investing activities ($ 25,663) $ 33,503
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,397,658) ($ 850,474)
---------- ----------
Net cash used by financing
activities ($1,397,658) ($ 850,474)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 98,762) $ 211,979
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 504,658 324,616
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 405,896 $ 536,595
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 276,403 $ 315,955
Accounts receivable:
Oil and gas sales 278,512 408,115
---------- ----------
Total current assets $ 554,915 $ 724,070
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method $2,272,475 $4,150,885
DEFERRED CHARGE $ 102,775 $ 102,775
---------- ----------
$2,930,165 $4,977,730
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 85,118 $ 99,540
Gas imbalance payable 54,219 54,219
---------- ----------
Total current liabilities $ 139,337 $ 153,759
ACCRUED LIABILITY $ 86,853 $ 86,853
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 80,924) ($ 58,669)
Limited Partners, issued and
outstanding, 121,925 units 2,784,899 4,795,787
---------- ----------
Total Partners' capital $2,703,975 $4,737,118
---------- ----------
$2,930,165 $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 SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
--------- ---------
REVENUES:
Oil and gas sales $398,505 $506,885
Interest and other income 3,501 2,212
Gain on sale of oil and gas
properties 31 6,500
-------- --------
$402,037 $515,597
COSTS AND EXPENSES:
Lease operating $186,212 $123,955
Production tax 21,738 20,931
Depreciation, depletion, and
amortization of oil and gas
properties 147,446 192,679
General and administrative (Note 2) 34,269 34,858
-------- --------
$389,665 $372,423
-------- --------
NET INCOME $ 12,372 $143,174
======== ========
GENERAL PARTNER - NET INCOME $ 6,341 $ 14,623
======== ========
LIMITED PARTNERS - NET INCOME $ 6,031 $128,551
======== ========
NET INCOME per unit $ 0.05 $ 1.05
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ ----------
REVENUES:
Oil and gas sales $1,405,635 $1,430,150
Interest and other income 10,893 4,867
Gain on sale of oil and gas
properties 4,974 10,996
---------- ----------
$1,421,502 $1,446,013
COSTS AND EXPENSES:
Lease operating $ 531,400 $ 539,372
Production tax 74,160 70,037
Depreciation, depletion, and
amortization of oil and gas
properties 447,642 597,397
Impairment provision 1,449,404 -
General and administrative (Note 2) 113,160 110,960
---------- ----------
$2,615,766 $1,317,766
---------- ----------
NET INCOME (LOSS) ($1,194,264) $ 128,247
========== ==========
GENERAL PARTNER - NET INCOME $ 15,624 $ 30,065
========== ==========
LIMITED PARTNERS - NET INCOME (LOSS) ($1,209,888) $ 98,182
========== ==========
NET INCOME (LOSS) per unit ($ 9.92) $ .81
========== ==========
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 NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
1997 1996
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ($1,194,264) $128,247
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 447,642 597,397
Impairment provision 1,449,404 -
Gain on sale of oil and gas
properties ( 4,974) ( 10,996)
Increase in accounts receivable -
General Partner - ( 2,101)
(Increase) decrease in accounts
receivable - oil and gas sales 129,603 ( 55,496)
Decrease in accounts payable ( 14,422) ( 16,378)
---------- --------
Net cash provided by operating
activities $ 812,989 $640,673
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 26,510) ($ 11,628)
Proceeds from sale of oil and
gas properties 12,848 44,321
---------- --------
Net cash provided (used) by
investing activities ($ 13,662) $ 32,693
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 838,879) ($523,067)
---------- --------
Net cash used by financing
activities ($ 838,879) ($523,067)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 39,552) $150,299
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 315,955 188,474
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 276,403 $338,773
========== ========
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
SEPTEMBER 30, 1997
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 1997, statements of
operations for the three and nine months ended September 30, 1997
and 1996 and statements of cash flows for the nine months ended
September 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 September 30, 1997, the
results of operations for the three and nine months ended
September 30, 1997 and 1996 and the cash flows for the nine
months ended September 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 September 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
-30-
computed on the unit-of-production method. The Partnerships'
depletion, depreciation, and amortization includes estimated
dismantlement and abandonment costs, net of estimated salvage
value.
When complete units of depreciable property are retired or sold,
the asset cost and related accumulated depreciation are
eliminated with any gain or loss reflected in income. When less
than complete units of depreciable property are retired or sold,
the 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 nine months ended September 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 three
months ended September 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 $4,724 $ 69,468
III-B 2,479 36,405
-31-
III-C 4,379 64,353
III-D 2,347 34,476
III-E 7,467 110,070
III-F 3,963 58,284
III-G 2,184 32,085
During the nine months ended September 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 $30,525 $208,404
III-B 16,116 109,215
III-C 33,644 193,059
III-D 18,672 103,428
III-E 58,481 330,210
III-F 30,558 174,852
III-G 16,905 96,255
Affiliates of the Partnerships operate certain of the
Partnerships' properties and their policy is to bill the
Partnerships for all customary charges and cost reimbursements
associated with their activities.
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 September 30, 1997 for
the III-C and III-D Partnerships represents proceeds due to such
Partnerships for the sale of oil and gas properties during the
third quarter of 1997. Subsequent to September 30, 1997 such
receivable was collected by the III-C and III-D Partnerships.
-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:
Limited
Date of Partner Capital
Partnership Activation Contributions
-33-
----------- ------------------ ---------------
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 September
30, 1997 and the net revenue generated from future operations
will provide sufficient working capital to meet current and
future obligations of the Partnerships.
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.
PARTNERSHIP III-A
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $712,026 $811,194
Oil and gas production expenses $131,345 $217,222
Barrels produced 9,074 10,526
Mcf produced 238,355 310,142
Average price/Bbl $ 19.21 $ 21.53
Average price/Mcf $ 2.26 $ 1.88
-34-
As shown in the above table, total oil and gas sales decreased
$99,168 (12.2%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
decrease, approximately $31,000 and $135,000, respectively, were
related to decreases in volumes of oil and gas sold and a
decrease of approximately $21,000 was related to a decrease in
the average price of oil sold, which decreases were partially
offset by an increase of approximately $91,000 related to an
increase in the average price of gas sold. Volumes of oil and
gas sold decreased 1,452 barrels and 71,787 Mcf, respectively,
for the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. The decrease in volumes of
oil sold resulted from a negative prior period volume adjustment
made by the purchaser on one well during the three months ended
September 30, 1997. The decrease in volumes of gas sold resulted
primarily from (i) normal declines in production due to
diminished reserves on several wells and (ii) a positive prior
period volume adjustment made by the purchaser on one well during
the three months ended September 30, 1996. Average oil prices
decreased to $19.21 per barrel for the three months ended
September 30, 1997 from $21.53 per barrel for the three months
ended September 30, 1996, while average gas prices increased to
$2.26 per Mcf for the three months ended September 30, 1997 from
$1.88 per Mcf for the three months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $85,877 (39.5%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This decrease resulted
primarily from (i) workover expenses incurred on two wells during
the three months ended September 30, 1996 in order to improve the
recovery of reserves and (ii) decreases in volumes of oil and gas
sold during the three months ended September 30, 1997 as compared
to the three months ended September 30, 1996. As a percentage of
oil and gas sales, these expenses decreased to 18.4% for the
three months ended September 30, 1997 from 26.8% for the three
months ended September 30, 1996. This percentage decrease was
primarily due to the dollar decrease in oil and gas production
expenses discussed above and the increase in the average price of
gas sold during the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $89,594 (30.3%) for the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996. This decrease resulted primarily from
decreases in volumes of oil and gas sold during the three months
ended September 30, 1997 as compared to the three months ended
September 30, 1996. As a percentage of oil and gas sales, this
expense decreased to 28.9% for the three months ended September
30, 1997 from 36.4% for the three months ended September 30,
1996. This percentage decrease was primarily due to the increase
in the average price of gas sold during the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996.
General and administrative expenses decreased $7,008 (8.6%) for
the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. This decrease resulted
-35-
primarily from a decrease in professional fees and printing and
postage expenses during the three months ended September 30, 1997
as compared to the three months ended September 30, 1996. As a
percentage of oil and gas sales, these expenses remained
relatively constant at 10.4% for the three months ended September
30, 1997 and 10.0% for the three months ended September 30, 1996.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
-------------------------------
1997 1996
---------- ----------
Oil and gas sales $2,578,627 $2,718,110
Oil and gas production expenses $ 541,572 $ 683,901
Barrels produced 30,701 35,808
Mcf produced 798,664 1,050,856
Average price/Bbl $ 20.01 $ 20.22
Average price/Mcf $ 2.46 $ 1.90
As shown in the above table, total oil and gas sales decreased
$139,483 (5.1%) for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
decrease, approximately $103,000 and $479,000, respectively, were
related to decreases in volumes of oil and gas sold, which
decrease was partially offset by an increase of approximately
$447,000 related to an increase in the average price of gas sold.
Volumes of oil and gas sold decreased 5,107 barrels and 252,192
Mcf, respectively, for the nine months ended September 30, 1997
as compared to the nine months ended September 30, 1996. The
decrease in volumes of oil sold resulted primarily from (i)
normal declines in production due to diminished reserves on two
wells and (ii) a negative prior period volume adjustment made by
the purchaser on one well during the nine months ended September
30, 1997. The decrease in volumes of gas sold resulted primarily
from (i) normal declines in production due to diminished reserves
on several wells and (ii) a positive prior period volume
adjustment made by the purchaser on one well during the nine
months ended September 30, 1996. Average oil prices decreased to
$20.01 per barrel for the nine months ended September 30, 1997
from $20.22 per barrel for the nine months ended September 30,
1996, while average gas prices increased to $2.46 per Mcf for the
nine months ended September 30, 1997 from $1.90 per Mcf for the
nine months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $142,329 (20.8%) for the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. This decrease resulted
primarily from decreases in volumes of oil and gas sold during
the nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 21.0% for the nine months
ended September 30, 1997 from 25.2% for the nine months ended
September 30, 1996. This percentage decrease was primarily due
to the increase in the average price of gas sold during the nine
months ended September 30, 1997 as compared to the nine months
ended September 30, 1996.
-36-
Depreciation, depletion, and amortization of oil and gas
properties decreased $310,730 (31.0%) for the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. This decrease resulted primarily from decreases in
volumes of oil and gas sold during the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. As a percentage of oil and gas sales, this expense
decreased to 26.8% for the nine months ended September 30, 1997
from 36.9% for the nine months ended September 30, 1996. This
percentage decrease was primarily due to the increase in the
average price of gas sold during the nine months ended September
30, 1997 as compared to the nine months ended September 30, 1996.
As set forth under "Results of Operations" above, the III-A
Partnership recognized a non-cash charge against earnings of
$1,617,006 for the nine months ended September 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 nine months ended September 30, 1996 under
SFAS No. 121.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses remained relatively constant at 9.3%
for the nine months ended September 30, 1997 and 9.1% for the
nine months ended September 30, 1996.
The Limited Partners have received cash distributions through
September 30, 1997 totaling $23,102,701 or 87.52% of Limited
Partners' capital contributions.
PARTNERSHIP III-B
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $428,266 $473,499
Oil and gas production expenses $ 84,927 $123,708
Barrels produced 8,405 8,474
Mcf produced 120,161 156,741
Average price/Bbl $ 19.16 $ 21.57
Average price/Mcf $ 2.22 $ 1.85
As shown in the above table, total oil and gas sales decreased
$45,233 (9.6%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
decrease, approximately $68,000 was related to a decrease in
volumes of gas sold and approximately $20,000 was related to a
decrease in the average price of oil sold, which decreases were
partially offset by an increase of approximately $44,000 related
-37-
to an increase in the average price of gas sold. Volumes of oil
and gas sold decreased 69 barrels and 36,580 Mcf, respectively,
for the three months ended September 30, 1997 as compared to the
three months ended September 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) a positive prior period volume adjustment made by the
purchaser on one well during the three months ended September 30,
1996. Average oil prices decreased to $19.16 per barrel for the
three months ended September 30, 1997 from $21.57 per barrel for
the three months ended September 30, 1996, while average gas
prices increased to $2.22 per Mcf for the three months ended
September 30, 1997 from $1.85 per Mcf for the three months ended
September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $38,781 (31.3%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This decrease resulted
primarily from (i) workover expenses incurred on two wells during
the three months ended September 30, 1996 in order to improve the
recovery of reserves and (ii) decreases in volumes of oil and gas
sold during the three months ended September 30, 1997 as compared
to the three months ended September 30, 1996. As a percentage of
oil and gas sales, these expenses decreased to 19.8% for the
three months ended September 30, 1997 from 26.1% for the three
months ended September 30, 1996. This percentage decrease was
primarily due to the dollar decrease in oil and gas production
expenses discussed above and the increase in the average price of
gas sold during the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $46,875 (28.3%) for the three months ended
September 30, 1997 as compared to the three months ended
September 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 September 30, 1997
as compared to the three months ended September 30, 1996. As a
percentage of oil and gas sales, this expense decreased to 27.8%
for the three months ended September 30, 1997 from 35.0% for the
three months ended September 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
September 30, 1997 as compared to the three months ended
September 30, 1996.
General and administrative expenses decreased $3,801 (8.9%) for
the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. This decrease resulted
primarily from a decrease in professional fees and printing and
postage expenses during the three months ended September 30, 1997
as compared to the three months ended September 30, 1996. As a
percentage of oil and gas sales, these expenses remained
relatively constant at 9.1% for the three months ended September
30, 1997 and 9.0% for the three months ended September 30, 1996.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
-38-
Nine Months Ended September 30,
-------------------------------
1997 1996
---------- ----------
Oil and gas sales $1,522,622 $1,559,625
Oil and gas production expenses $ 328,739 $ 376,100
Barrels produced 27,663 27,882
Mcf produced 400,369 532,735
Average price/Bbl $ 20.06 $ 20.30
Average price/Mcf $ 2.42 $ 1.87
As shown in the table above, total oil and gas sales decreased
$37,003 (2.4%) for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
decrease, approximately $4,000 and $248,000, respectively, were
related to decreases in volumes of oil and gas sold and
approximately $7,000 was related to a decrease in the average
price of oil sold, which decreases were partially offset by an
increase of approximately $220,000 related to an increase in the
average price of gas sold. 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) a positive
prior period volume adjustment made by the purchaser on one well
during the nine months ended September 30, 1996. Average oil
prices decreased to $20.06 per barrel for the nine months ended
September 30, 1997 from $20.30 per barrel for the nine months
ended September 30, 1996, while average gas prices increased to
$2.42 per Mcf for the nine months ended September 30, 1997 from
$1.87 per Mcf for the nine months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $47,361 (12.6%) for the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. This decrease resulted
primarily from decreases in volumes of oil and gas sold during
the nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 21.6% for the nine months
ended September 30, 1997 from 24.1% for the nine months ended
September 30, 1996. This percentage decrease was primarily due to
the increase in the average price of gas sold during the nine
months ended September 30, 1997 as compared to the nine months
ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $164,300 (29.4%) for the nine months ended
September 30, 1997 as compared to the nine months ended September
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 nine months ended September 30, 1997 as compared
to the nine months ended September 30, 1996. As a percentage of
oil and gas sales, this expense decreased to 25.9% for the nine
months ended September 30, 1997 from 35.8% for the nine months
ended September 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 nine months ended September 30, 1997
as compared to the nine months ended September 30, 1996.
-39-
As set forth under "Results of Operations" above, the III-B
Partnership recognized a non-cash charge against earnings of
$738,122 for the nine months ended September 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 nine months ended September 30, 1996 under SFAS No. 121.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses remained relatively constant at 8.2%
for the nine months ended September 30, 1997 and 8.3% for the
nine months ended September 30, 1996.
The Limited Partners have received cash distributions through
September 30, 1997 totaling $13,445,353 or 97.19% of Limited
Partners' capital contributions.
PARTNERSHIP III-C
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $633,934 $694,017
Oil and gas production expenses $148,845 $173,536
Barrels produced 6,175 3,938
Mcf produced 263,504 325,447
Average price/Bbl $ 19.01 $ 22.23
Average price/Mcf $ 1.96 $ 1.86
As shown in the above table, total oil and gas sales decreased
$60,084 (8.7%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
decrease, approximately $115,000 was related to a decrease in
volumes of gas sold and approximately $20,000 was related to a
decrease in the average price of oil sold, which decreases were
partially offset by increases of approximately $50,000 related to
an increase in the volumes of oil sold and approximately $26,000
related to an increase in the average price of gas sold. Volumes
of oil sold increased 2,237 barrels for the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996. Volumes of gas sold decreased 61,943 Mcf for
the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. The increase in volumes
of oil sold resulted primarily from positive prior period volume
adjustments made by the purchaser on two wells during the nine
months ended September 30, 1997. The decrease in volumes of gas
sold resulted primarily from (i) negative prior period volume
-40-
adjustments made by the purchaser on two wells during the three
months ended September 30, 1997, (ii) a positive prior period
volume adjustment made by the purchaser on one well during the
three months ended September 30, 1996, and (iii) normal declines
in production due to diminished gas reserves on several wells.
Average oil prices decreased to $19.01 per barrel for the three
months ended September 30, 1997 from $22.23 per barrel for the
three months ended September 30, 1996, while average gas prices
increased to $1.96 per Mcf for the three months ended September
30, 1997 from $1.86 per Mcf for the three months ended September
30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $24,691 (14.2%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This decrease resulted
primarily from decreases in volumes of gas sold during the three
months ended September 30, 1997 as compared to the three months
ended September 30, 1996. As a percentage of oil and gas sales,
these expenses remained relatively constant at 23.5% for the
three months ended September 30, 1997 and 25.0% for the three
months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $86,144 (32.8%) for the three months ended
September 30, 1997 as compared to the three months ended
September 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 the
volumes of gas sold during the three months ended September 30,
1997 as compared to the three months ended September 30, 1996.
As a percentage of oil and gas sales, this expense decreased to
27.9% for the three months ended September 30, 1997 from 37.9%
for the three months ended September 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 September 30, 1997 as compared to the three months ended
September 30, 1996.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. As a percentage of oil
and gas sales, this expense remained relatively constant at 10.8%
for the three months ended September 30, 1997 and 10.1% for the
three months ended September 30, 1996.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
-------------------------------
1997 1996
---------- ----------
Oil and gas sales $2,234,020 $2,309,688
Oil and gas production expenses $ 521,732 $ 570,849
Barrels produced 19,357 18,618
Mcf produced 842,571 1,057,587
Average price/Bbl $ 20.22 $ 19.97
Average price/Mcf $ 2.19 $ 1.83
-41-
As shown in the table above, total oil and gas sales decreased
$75,669 (3.3%)for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
decrease, approximately $393,000 was related to a decrease in
volumes of gas sold, which decrease was partially offset by an
increase of approximately $15,000 related to an increase in
volumes of oil sold and an increase of approximately $303,000
related to an increase in the average price of gas sold. Volumes
of oil sold increased 739 barrels, while volumes of gas sold
decreased 215,016 Mcf for the nine months ended September 30,
1997 as compared to the nine months ended September 30, 1996. The
decrease in volumes of gas sold resulted primarily from (i)
negative prior period volume adjustments made by the purchaser on
three wells during the nine months ended September 30, 1997, (ii)
positive prior period volume adjustments made by the purchaser on
several wells during the nine months ended September 30, 1996,
(iii) the sale of several gas producing wells during 1996 and
1997 and (iv) normal declines in production due to diminished gas
reserves on several wells. Average oil and gas prices increased
to $20.22 per barrel and $2.19 per Mcf, respectively, for the
nine months ended September 30, 1997 from $19.97 per barrel and
$1.83 per Mcf, respectively, for the nine months ended September
30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $49,117 (8.6%) for the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. This decrease resulted
primarily from decreases in volumes of gas sold during the nine
months ended September 30, 1997 as compared to the nine months
ended September 30, 1996. As a percentage of oil and gas sales,
these expenses remained relatively constant at 23.4% for the nine
months ended September 30, 1997 and 24.7% for the nine months
ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $316,826 (36.0%) for the nine months ended
September 30, 1997 as compared to the nine months ended September
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 gas sold
during the nine months ended September 30, 1997 as compared to
the nine months ended September 30, 1996. As a percentage of oil
and gas sales, this expense decreased to 25.2% for the nine
months ended September 30, 1997 from 38.1% for the nine months
ended September 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 nine months ended September
30, 1997 as compared to the nine months ended September 30, 1996.
As set forth under "Results of Operations" above, the III-C
Partnership recognized a non-cash charge against earnings of
$1,696,418 for the nine months ended September 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
-42-
impairment of unproved properties. No similar charge was
necessary during the nine months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses also remained relatively constant at
10.1% for the nine months ended September 30, 1997 and 9.6% for
the nine months ended September 30, 1996.
The Limited Partners have received cash distributions through
September 30, 1997 totaling $14,811,795 or 60.57% of Limited
Partners' capital contributions.
PARTNERSHIP III-D
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $472,603 $567,772
Oil and gas production expenses $184,736 $207,669
Barrels produced 9,749 10,991
Mcf produced 168,424 186,913
Average price/Bbl $ 17.46 $ 20.62
Average price/Mcf $ 1.80 $ 1.82
As shown in the table above, total oil and gas sales decreased
$95,169 (16.8%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
decrease, approximately $26,000 and $34,000, respectively, were
related to decreases in the volumes of oil and gas sold and
approximately $31,000 was related to a decrease in the average
price of oil sold. Volumes of oil and gas sold decreased 1,242
barrels and 18,489 Mcf, respectively, for the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996. Average oil and gas prices decreased to
$17.46 per barrel and $1.80 per Mcf, respectively, for the three
months ended September 30, 1997 from $20.62 per barrel and $1.82
per Mcf, respectively, for the three months ended September 30,
1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $22,933 (11.0%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This decrease resulted
primarily from (i) decreases in volumes of oil and gas sold
during the three months ended September 30, 1997 as compared to
the three months ended September 30, 1996 and (ii) a decrease in
production taxes associated with the decrease in oil and gas
sales discussed above. As a percentage of oil and gas sales,
these expenses increased to 39.1% for the three months ended
September 30, 1997 from 36.6% for the three months ended
September 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 September 30, 1997 as compared to the
three months ended September 30, 1996.
-43-
Depreciation, depletion, and amortization of oil and gas
properties decreased $34,534 (25.7%) for the three months ended
September 30, 1997 as compared to the three months ended
September 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 September 30, 1997
as compared to the three months ended September 30, 1996. As a
percentage of oil and gas sales, this expense decreased to 21.1%
for the three months ended September 30, 1997 from 23.7% for the
three months ended September 30, 1996. This percentage decrease
was primarily due to the dollar decrease in depreciation,
depletion, and amortization discussed above.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses increased to 7.8% for the three months
ended September 30, 1997 from 6.7% for the three months ended
September 30, 1996. This percentage increase was primarily due
to the decrease in oil and gas sales discussed above.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
-------------------------------
1997 1996
---------- ----------
Oil and gas sales $1,734,127 $1,665,188
Oil and gas production expenses $ 599,212 $ 598,008
Barrels produced 31,704 33,069
Mcf produced 530,916 565,614
Average price/Bbl $ 19.51 $ 19.47
Average price/Mcf $ 2.10 $ 1.81
As shown in the table above, total oil and gas sales increased
$68,938 (4.1%) for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
increase, approximately $154,000 was related to an increase in
the average price of gas sold, which increase was partially
offset by decreases of approximately $27,000 and $63,000,
respectively, related to decreases in volumes of oil and gas
sold. Volumes of oil and gas sold decreased 1,365 barrels and
34,698 Mcf, respectively, for the nine months ended September 30,
1997 as compared to the nine months ended September 30, 1996.
Average oil and gas prices increased to $19.51 per barrel and
$2.10 per Mcf, respectively, for the nine months ended September
30, 1997 from $19.47 per barrel and $1.81 per Mcf, respectively,
for the nine months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant for
the nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. As a percentage of oil and gas
sales, these expenses also remained relatively constant at 34.6%
for the nine months ended September 30, 1997 and 35.9% for the
nine months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $90,553 (22.2%) for the nine months ended
-44-
September 30, 1997 as compared to the nine months ended September
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 nine months ended September 30, 1997 as compared
to the nine months ended September 30, 1996. As a percentage of
oil and gas sales, this expense decreased to 18.3% for the nine
months ended September 30, 1997 from 24.5% for the nine months
ended September 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 nine months ended September 30, 1997
as compared to the nine months ended September 30, 1996.
As set forth under "Results of Operations" above, the III-D
Partnership recognized a non-cash charge against earnings of
$932,243 for the nine months ended September 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 nine months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses also remained relatively constant at
7.0% for the nine months ended September 30, 1997 and 7.2% for
the nine months ended September 30, 1996.
The Limited Partners have received cash distributions through
September 30, 1997 totaling $7,244,669 or 55.30% of Limited
Partners' capital contributions.
PARTNERSHIP III-E
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
---------- ----------
Oil and gas sales $1,878,608 $2,529,876
Oil and gas production expenses $1,038,911 $1,119,695
Barrels produced 56,012 65,854
Mcf produced 544,047 624,833
Average price/Bbl $ 17.24 $ 20.33
Average price/Mcf $ 1.68 $ 1.91
As shown in the table above, total oil and gas sales decreased
$651,268 (25.7%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
decrease, approximately $200,000 and $154,000, respectively, were
related to decreases in volumes of oil and gas sold and
approximately $173,000 and $125,000, respectively, were related
-45-
to decreases in the average price of oil and gas sold. Volumes
of oil and gas sold decreased 9,842 barrels and 80,786 Mcf,
respectively, for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. The
decrease in volumes of oil sold resulted primarily from (i)
positive prior period volume adjustments made by the purchaser on
one well during the three months ended September 30, 1996, (ii)
normal declines in production due to diminished oil reserves on
three wells, (iii) diminished production on one well which was
shut-in during the three months ended September 30, 1997 due to
mechanical difficulties and (iv) negative prior period volume
adjustments made by the operator on one well during the three
months ended September 30, 1997. Average oil and gas prices
decreased to $17.24 per barrel and $1.68 per Mcf, respectively,
for the three months ended September 30, 1997 from $20.33 per
barrel and $1.91 per Mcf, respectively, for the three months
ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) decreased $80,784 (7.2%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This decrease resulted
primarily from decreases in volumes of oil and gas sold during
the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996, which decrease was
partially offset by (i) workover expenses incurred on one well
during the three months ended September 30, 1997 in order to
improve the recovery of reserves, (ii) increased legal expenses
incurred on one well during the three months ended September 30,
1997 as compared to the three months ended September 30, 1996 and
(iii) increased general repair and maintenance expense incurred
on one well during the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. As a
percentage of oil and gas sales, these expenses increased to
55.3% for the three months ended September 30, 1997 from 44.3%
for the three months ended September 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 September 30,
1997 as compared to the three months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $137,518 (24.4%) for the three months ended
September 30, 1997 as compared to the three months ended
September 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 three months ended September 30, 1997 as compared
to the three months ended September 30, 1996. As a percentage of
oil and gas sales, this expense remained relatively constant at
22.7% for the three months ended September 30, 1997 and 22.3% for
the three months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses increased to 6.3% for the three months
ended September 30, 1997 from 4.7% for the three months ended
September 30, 1996. This percentage increase was primarily due
to the decrease in oil and gas sales discussed above.
-46-
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
-------------------------------
1997 1996
---------- ----------
Oil and gas sales $6,914,717 $6,685,261
Oil and gas production expenses $3,196,748 $3,173,626
Barrels produced 183,253 186,855
Mcf produced 1,697,392 1,640,848
Average price/Bbl $ 19.30 $ 19.32
Average price/Mcf $ 1.99 $ 1.87
As shown in the table above, total oil and gas sales increased
$229,456 (3.4%) for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
increase, approximately $106,000 and $204,000, respectively, were
related to increases in both the volumes and average price of gas
sold, which increases were partially offset by a decrease of
approximately $70,000 related to a decrease in volumes of oil
sold. Volumes of oil sold decreased 3,602 barrels, while volumes
of gas sold increased 56,544 Mcf for the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. Average oil prices decreased to $19.30 per barrel for
the nine months ended September 30, 1997 from $19.32 per barrel
for the nine months ended September 30, 1996. Average gas prices
increased to $1.99 per Mcf for the nine months ended September
30, 1997 from $1.87 per Mcf for the nine months ended September
30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant for
the nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. As a percentage of oil and gas
sales, these expenses decreased to 19.6% for the nine months
ended September 30, 1997 from 22.9% for the nine months ended
September 30, 1996. This percentage decrease was primarily due
to the increase in the average price of gas sold during the nine
months ended September 30, 1997 as compared to the nine months
ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $171,794 (11.2%) for the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. This decrease resulted primarily from an upward
revision in the estimate of remaining oil reserves at December
31, 1996. As a percentage of oil and gas sales, this expense
decreased to 19.6% for the nine months ended September 30, 1997
from 22.9% for the nine months ended September 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 nine months
ended September 30, 1997 as compared to the nine months ended
September 30, 1996.
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 nine months ended September 30, 1997. This
impairment provision was necessary due to the unamortized costs
of oil and gas properties exceeding the expected undiscounted
-47-
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 nine months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses remained relatively constant at 5.6%
for the nine months ended September 30, 1997 and 5.7% for the
nine months ended September 30, 1996.
The Limited Partners have received cash distributions through
September 30, 1997 totaling $26,392,016 or 63.10% of Limited
Partners' capital contributions.
PARTNERSHIP III-F
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $656,490 $801,543
Oil and gas production expenses $333,065 $214,863
Barrels produced 14,744 20,248
Mcf produced 252,745 221,599
Average price/Bbl $ 17.82 $ 21.40
Average price/Mcf $ 1.56 $ 1.66
As shown in the table above, total oil and gas sales decreased
$145,053 (18.1%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
decrease, approximately $118,000 was related to a decrease in the
volumes of oil sold and approximately $53,000 and $25,000,
respectively, were related to decreases in the average prices of
oil and gas sold, which decreases were partially offset by an
increase of approximately $52,000 related to an increase in
volumes of gas sold. Volumes of oil sold decreased 5,504
barrels, while volumes of gas sold increased 31,146 Mcf for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. The decrease in volumes of oil
sold was primarily due to (i) normal declines in production due
to diminished oil reserves on several wells and (ii) a positive
prior period volume adjustment made by the purchaser on one well
during the nine months ended September 30, 1996. Average oil and
gas prices decreased to $17.82 per barrel and $1.56 per Mcf,
respectively, for the three months ended September 30, 1997 from
$21.40 per barrel and $1.66 per Mcf, respectively, for the three
months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $118,202 (55.0%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This increase resulted
-48-
primarily from (i) workover expenses incurred on one well during
the three months ended September 30, 1997 in order to improve the
recovery of reserves and (ii) subsurface repair and maintenance
expenses incurred on another well during the three months ended
September 30, 1997. As a percentage of oil and gas sales, these
expenses increased to 50.7% for the three months ended September
30, 1997 from 26.8% for the three months ended September 30,
1996. This percentage increase was primarily due to the dollar
increase in oil and gas production expenses discussed above and
the decreases in the average prices of oil and gas sold during
the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $39,217 (12.7%) for the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996. This decrease resulted primarily from an
upward revision in the estimate of remaining oil reserves at
December 31, 1996. As a percentage of oil and gas sales, this
expense increased to 40.9% for the three months ended September
30, 1997 from 38.4% for the three months ended September 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 September 30, 1997 as compared to the three
months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. As a percentage of oil
and gas sales, these expenses increased to 9.5% for the three
months ended September 30, 1997 from 7.9% for the three months
ended September 30, 1996. This percentage increase was primarily
due to the decrease in oil and gas sales discussed above.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
-------------------------
1997 1996
---------- ----------
Oil and gas sales $2,281,635 $2,257,857
Oil and gas production expenses $ 950,471 $ 926,056
Barrels produced 49,722 58,207
Mcf produced 722,858 719,068
Average price/Bbl $ 19.30 $ 19.55
Average price/Mcf $ 1.83 $ 1.56
As shown in the table above, total oil and gas sales increased
$23,778 (1.1%) for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. Of this
increase, approximately $6,000 and $195,000, respectively, were
related to increases in the volumes and average price of gas
sold, which increases were partially offset by decreases of
approximately $166,000 and $12,000, respectively, related to
decreases in the volumes and average price of oil sold. Volumes
of oil sold decreased 8,485 barrels, while volumes of gas sold
increased 3,790 Mcf for the nine months ended September 30, 1997
as compared to the nine months ended September 30, 1996. The
decrease in volumes of oil sold was primarily due to (i) normal
-49-
declines in production due to diminished oil reserves on several
wells and (ii) a positive prior period volume adjustment made by
the purchaser on one well during the nine months ended September
30, 1996. Average oil prices decreased to $19.30 per barrel for
the nine months ended September 30, 1997 from $19.55 per barrel
for the nine months ended September 30, 1996. Average gas prices
increased to $1.83 per Mcf for the nine months ended September
30, 1997 from $1.56 per Mcf for the nine months ended September
30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $24,415 (2.6%) for the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. This increase resulted
primarily from workover expenses incurred on two wells during the
nine months ended September 30, 1997 in order to improve the
recovery of reserves, which increase was partially offset by the
decrease in volumes of oil sold during the nine months ended
September 30, 1997 as compared to the nine months ended September
30, 1996. As a percentage of oil and gas sales, these expenses
remained relatively constant at 41.7% for the nine months ended
September 30, 1997 and 41.0% for the nine months ended September
30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $154,585 (16.1%) for the nine months ended
September 30, 1997 as compared to the nine months ended September
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 sold during the
nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 35.2% for the nine months ended
September 30, 1997 from 42.4% for the nine months ended September
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 nine months ended September 30, 1997 as compared to
the nine months ended September 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 nine months ended September 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.
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 nine months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses also remained relatively constant at
9.0% for the nine months ended September 30, 1997 and 8.9% for
the nine months ended September 30, 1996.
-50-
The Limited Partners have received cash distributions through
September 30, 1997 totaling $9,702,904 or 43.81% of Limited
Partners' capital contributions.
PARTNERSHIP III-G
THREE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE THREE
MONTHS ENDED SEPTEMBER 30, 1996.
Three Months Ended September 30,
--------------------------------
1997 1996
-------- --------
Oil and gas sales $398,505 $506,885
Oil and gas production expenses $207,950 $144,886
Barrels produced 10,451 14,165
Mcf produced 134,769 121,454
Average price/Bbl $ 17.74 $ 21.50
Average price/Mcf $ 1.58 $ 1.67
As shown in the table above, total oil and gas sales decreased
$108,380 (21.4%) for the three months ended September 30, 1997 as
compared to the three months ended September 30, 1996. Of this
decrease, approximately $80,000 was related to a decrease in
volumes of oil sold and approximately $39,000 and $12,000,
respectively, were related to decreases in the average prices of
oil and gas sold, which decreases were partially offset by an
increase of approximately $22,000 related to an increase in the
volumes of gas sold. Volumes of oil sold decreased 3,714 barrels
while volumes of gas sold increased 13,315 Mcf for the three
months ended September 30, 1997 as compared to the three months
ended September 30, 1996. The decrease in volumes of oil sold
resulted primarily from (i) positive prior period volume
adjustments on several wells during the three months ended
September 30, 1996 and (ii) normal declines in production due to
diminished oil reserves on several wells. The increase in
volumes of gas sold resulted primarily from the shutting-in of
two wells during the three months ended September 30, 1996.
Average oil prices decreased to $17.74 per barrel for the three
months ended September 30, 1997 from $21.50 per barrel for the
three months ended September 30, 1996. Average gas prices
decreased to $1.58 per Mcf for the three months ended September
30, 1997 from $1.67 per Mcf for the three months ended September
30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) increased $63,064 (43.5%) for the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. This increase was due to an
increase in general repair and maintenance expenses during the
three months ended September 30, 1997 as compared to the three
months ended September 30, 1996. As a percentage of oil and gas
sales, these expenses increased to 52.2% for the three months
ended September 30, 1997 from 28.6% for the three months ended
September 30, 1996. This increase was primarily due to the
dollar increase in oil and gas production expenses discussed
above and the decreases in the average price of oil and gas sold
during the three months ended September 30, 1997 as compared to
the three months ended September 30, 1996.
-51-
Depreciation, depletion, and amortization of oil and gas
properties decreased $45,233 (23.5%) for the three months ended
September 30, 1997 as compared to the three months ended
September 30, 1996. This decrease resulted primarily from (i) an
upward revision in the estimate of remaining oil reserves at
December 31, 1996 and (ii) a decrease in volumes of oil sold
during the three months ended September 30, 1997 as compared to
the three months ended September 30, 1996. As a percentage of
oil and gas sales, this expense remained relatively constant at
38.0% for the three months ended September 30, 1997 and 37.0% for
the three months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the three months ended September 30, 1997 as compared to the
three months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses increased to 8.6% for the three months
ended September 30, 1997 from 6.9% for the three months ended
September 30, 1996. This percentage increase was primarily due
to the decrease in oil sales discussed above.
NINE MONTHS ENDED SEPTEMBER 30, 1997 AS COMPARED TO THE NINE
MONTHS ENDED SEPTEMBER 30, 1996.
Nine Months Ended September 30,
-------------------------------
1997 1996
---------- ----------
Oil and gas sales $1,405,635 $1,430,150
Oil and gas production expenses $ 605,560 $ 609,409
Barrels produced 35,841 41,945
Mcf produced 384,476 388,400
Average price/Bbl $ 19.35 $ 19.58
Average price/Mcf $ 1.85 $ 1.57
As shown in the table above, total oil and gas sales remained
relatively constant for the nine months ended September 30, 1997
as compared to the nine months ended September 30, 1996. While
decreases in volumes of oil and gas sold resulted in decreases of
approximately $120,000 and $6,000, respectively, and a decrease
of approximately $8,000 was related to a decrease in the average
price of oil sold, any resulting decrease in oil and gas sales
was mostly offset by an increase of approximately $108,000
related to an increase in the average price of gas sold. Volumes
of oil and gas sold decreased 6,104 barrels and 3,924 Mcf,
respectively, for the nine months ended September 30, 1997 as
compared to the nine months ended September 30, 1996. The
decrease in volumes of oil sold resulted primarily from (i)
normal declines in production due to diminished oil reserves on
several wells and (ii) the sale of several wells in the nine
months ended September 30, 1996. Average oil prices decreased to
$19.35 per barrel for the nine months ended September 30, 1997
from $19.58 per barrel for the nine months ended September 30,
1996, while average gas prices increased to $1.85 per Mcf for the
nine months ended September 30, 1997 from $1.57 per Mcf for the
nine months ended September 30, 1996.
Oil and gas production expenses (including lease operating
expenses and production taxes) remained relatively constant for
the nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. As a percentage of oil and gas
sales, these expenses also remained relatively constant at 43.1%
-52-
for the nine months ended September 30, 1997 and 42.6% for the
nine months ended September 30, 1996.
Depreciation, depletion, and amortization of oil and gas
properties decreased $149,755 (25.1%) for the nine months ended
September 30, 1997 as compared to the nine months ended September
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 nine months ended September 30, 1997 as compared to the nine
months ended September 30, 1996. As a percentage of oil and gas
sales, this expense decreased to 31.8% for the nine months ended
September 30, 1997 from 41.8% for the nine months ended September
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 nine months ended September 30, 1997 as compared to
the nine months ended September 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 nine months ended September 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. No similar charge was necessary
during the nine months ended September 30, 1996.
General and administrative expenses remained relatively constant
for the nine months ended September 30, 1997 as compared to the
nine months ended September 30, 1996. As a percentage of oil and
gas sales, these expenses also remained relatively constant at
8.1% for the nine months ended September 30, 1997 and 7.8% for
the nine months ended September 30, 1996.
The Limited Partners have received cash distributions through
September 30, 1997 totaling $4,970,287 or 40.77% of Limited
Partners' capital contributions.
-53-
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27.1 Financial Data Schedule containing summary financial
information extracted from the III-A Partnership's
financial statements as of September 30, 1997 and for
the nine months ended September 30, 1997, filed
herewith.
27.2 Financial Data Schedule containing summary financial
information extracted from the III-B Partnership's
financial statements as of September 30, 1997 and for
the nine months ended September 30, 1997, filed
herewith.
27.3 Financial Data Schedule containing summary financial
information extracted from the III-C Partnership's
financial statements as of September 30, 1997 and for
the nine months ended September 30, 1997, filed
herewith.
27.4 Financial Data Schedule containing summary financial
information extracted from the III-D Partnership's
financial statements as of September 30, 1997 and for
the nine months ended September 30, 1997, filed
herewith.
27.5 Financial Data Schedule containing summary financial
information extracted from the III-E Partnership's
financial statements as of September 30, 1997 and for
the nine months ended September 30, 1997, filed
herewith.
27.6 Financial Data Schedule containing summary financial
information extracted from the III-F Partnership's
financial statements as of September 30, 1997 and for
the nine months ended September 30, 1997, filed
herewith.
27.7 Financial Data Schedule containing summary financial
information extracted from the III-G Partnership's
financial statements as of September 30, 1997 and for
the nine months ended September 30, 1997, filed
herewith.
All other exhibits are omitted as inapplicable.
(b) Reports on Form 8-K:
None.
-54-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
(Registrant)
By: GEODYNE RESOURCES, INC.
General Partner
Date: November 13, 1997 By: /s/Dennis R. Neill
-------------------------------
(Signature)
Dennis R. Neill
President
Date: November 13, 1997 By: /s/Patrick M. Hall
--------------------------------
(Signature)
Patrick M. Hall
Principal Accounting Officer
-63-
INDEX TO EXHIBITS
-----------------
NUMBER DESCRIPTION
- ------ -----------
27.1 Financial Data Schedule containing summary financial
information extracted from the Geodyne Energy Income Limited
Partnership III-A's financial statements as of September 30,
1997 and for the nine months ended September 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 September 30,
1997 and for the nine months ended September 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 September 30,
1997 and for the nine months ended September 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 September 30,
1997 and for the nine months ended September 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 September 30,
1997 and for the nine months ended September 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 September 30,
1997 and for the nine months ended September 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 September 30,
1997 and for the nine months ended September 30, 1997, filed
herewith.
All other exhibits are omitted as inapplicable.