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 March 31, 2002
Commission File Number:
II-A: 0-16388 II-D: 0-16980 II-G: 0-17802
II-B: 0-16405 II-E: 0-17320 II-H: 0-18305
II-C: 0-16981 II-F: 0-17799
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
---------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
II-A 73-1295505 II-B 73-1303341
II-C 73-1308986 II-D 73-1329761
II-E 73-1324751 II-F 73-1330632
Oklahoma II-G 73-1336572 II-H 73-1342476
- ---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
------ ------
-1-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 416,072 $ 414,467
Accounts receivable:
Oil and gas sales 446,384 396,257
General Partner (Note 2) - 130,610
---------- ----------
Total current assets $ 862,456 $ 941,334
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,122,758 2,204,572
DEFERRED CHARGE 695,623 695,623
---------- ----------
$3,680,837 $3,841,529
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 258,996 $ 153,728
Accounts payable - other (Note 1) 24,750 -
Accrued liability - other (Note 1) 26,672 73,800
Gas imbalance payable 96,299 96,299
---------- ----------
Total current liabilities $ 406,717 $ 323,827
ACCRUED LIABILITY $ 243,327 $ 243,327
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 283,936) ($ 285,152)
Limited Partners, issued and
outstanding, 484,283 units 3,314,729 3,559,527
---------- ----------
Total Partners' capital $3,030,793 $3,274,375
---------- ----------
$3,680,837 $3,841,529
========== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $787,656 $1,686,111
Interest income 1,496 12,024
Gain on sale of oil and gas
properties - 3,234
-------- ----------
$789,152 $1,701,369
COSTS AND EXPENSES:
Lease operating $421,724 $ 244,235
Production tax 41,910 110,391
Depreciation, depletion, and
amortization of oil and gas
properties 81,133 80,099
General and administrative
(Note 2) 155,102 151,082
-------- ----------
$699,869 $ 585,807
-------- ----------
NET INCOME $ 89,283 $1,115,562
======== ==========
GENERAL PARTNER - NET INCOME $ 16,081 $ 117,272
======== ==========
LIMITED PARTNERS - NET INCOME $ 73,202 $ 998,290
======== ==========
NET INCOME per unit $ .15 $ 2.06
======== ==========
UNITS OUTSTANDING 484,283 484,283
======== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 89,283 $1,115,562
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 81,133 80,099
Gain on sale of oil and gas
properties - ( 3,234)
(Increase) decrease in accounts
receivable - oil and gas sales ( 50,127) 95,743
Increase (decrease) in accounts
payable 105,268 ( 84,436)
Increase in accounts payable -
other 24,750 -
Decrease in accrued liability -
other ( 47,128) -
Decrease in gas imbalance payable - ( 11,273)
Decrease in accrued liability - ( 10,552)
-------- ----------
Net cash provided by operating
activities $203,179 $1,181,909
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,663) ($ 99,069)
Proceeds from sale of oil and
gas properties 133,954 3,234
-------- ----------
Net cash provided (used) by investing
activities $131,291 ($ 95,835)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($332,865) ($1,093,030)
-------- ----------
Net cash used by financing activities ($332,865) ($1,093,030)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 1,605 ($ 6,956)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 414,467 1,070,734
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $416,072 $1,063,778
======== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
` GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2002 2001
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 235,840 $ 262,153
Accounts receivable:
Oil and gas sales 334,891 323,116
---------- ----------
Total current assets $ 570,731 $ 585,269
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,753,991 1,821,517
DEFERRED CHARGE 214,754 214,754
---------- ----------
$2,539,476 $2,621,540
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 213,362 $ 126,662
Gas imbalance payable 48,060 48,060
---------- ----------
Total current liabilities $ 261,422 $ 174,722
ACCRUED LIABILITY $ 47,436 $ 47,436
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 293,624) ($ 302,054)
Limited Partners, issued and
outstanding, 361,719 units 2,524,242 2,701,436
---------- ----------
Total Partners' capital $2,230,618 $2,399,382
---------- ----------
$2,539,476 $2,621,540
========== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $580,345 $1,329,368
Interest income 736 7,146
-------- ----------
$581,081 $1,336,514
COSTS AND EXPENSES:
Lease operating $316,680 $ 150,280
Production tax 31,610 76,998
Depreciation, depletion, and
amortization of oil and gas
properties 62,361 47,653
General and administrative
(Note 2) 118,936 116,719
-------- ----------
$529,587 $ 391,650
-------- ----------
NET INCOME $ 51,494 $ 944,864
======== ==========
GENERAL PARTNER - NET INCOME $ 10,688 $ 98,061
======== ==========
LIMITED PARTNERS - NET INCOME $ 40,806 $ 846,803
======== ==========
NET INCOME per unit $ .11 $ 2.34
======== ==========
UNITS OUTSTANDING 361,719 361,719
======== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 51,494 $944,864
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 62,361 47,653
(Increase) decrease in accounts
receivable - oil and gas sales ( 11,775) 27,428
Increase (decrease) in accounts
payable 86,700 ( 75,660)
-------- --------
Net cash provided by operating
activities $188,780 $944,285
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 38) ($220,303)
Proceeds from sale of properties 5,203 -
-------- --------
Net cash provided (used) by investing
activities $ 5,165 ($220,303)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($220,258) ($789,532)
-------- --------
Net cash used by financing activities ($220,258) ($789,532)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 26,313) ($ 65,550)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 262,153 714,162
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $235,840 $648,612
======== ========
The accompanying condensed notes are an integral
part of these combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 117,819 $ 115,201
Accounts receivable:
Oil and gas sales 147,260 137,952
---------- ----------
Total current assets $ 265,079 $ 253,153
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 827,677 856,666
DEFERRED CHARGE 128,827 128,827
---------- ----------
$1,221,583 $1,238,646
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 86,474 $ 50,950
Gas imbalance payable 29,876 29,876
---------- ----------
Total current liabilities $ 116,350 $ 80,826
ACCRUED LIABILITY $ 29,477 $ 29,477
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 124,867) ($ 130,178)
Limited Partners, issued and
outstanding, 154,621 units 1,200,623 1,258,521
---------- ----------
Total Partners' capital $1,075,756 $1,128,343
---------- ----------
$1,221,583 $1,238,646
========== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
-------- --------
REVENUES:
Oil and gas sales $267,773 $597,276
Interest income 304 4,275
-------- --------
$268,077 $601,551
COSTS AND EXPENSES:
Lease operating $127,454 $ 74,742
Production tax 16,522 41,477
Depreciation, depletion, and
amortization of oil and gas
properties 29,853 24,362
General and administrative
(Note 2) 57,850 58,776
-------- --------
$231,679 $199,357
-------- --------
NET INCOME $ 36,398 $402,194
======== ========
GENERAL PARTNER - NET INCOME $ 6,296 $ 41,984
======== ========
LIMITED PARTNERS - NET INCOME $ 30,102 $360,210
======== ========
NET INCOME per unit $ .19 $ 2.33
======== ========
UNITS OUTSTANDING 154,621 154,621
======== ========
The accompanying condensed notes are an integral
part of these combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 36,398 $402,194
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 29,853 24,362
(Increase) decrease in accounts
receivable - oil and gas sales ( 9,308) 28,270
Increase in accounts payable 35,524 2,990
Decrease in accrued liability - ( 10,837)
-------- --------
Net cash provided by operating
activities $ 92,467 $446,979
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 864) ($ 33,128)
-------- --------
Net cash used by investing activities ($ 864) ($ 33,128)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 88,985) ($442,153)
-------- --------
Net cash used by financing
activities ($ 88,985) ($442,153)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 2,618 ($ 28,302)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 115,201 412,356
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $117,819 $384,054
======== ========
The accompanying condensed notes are an integral
part of these combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2002 2001
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 203,924 $ 170,516
Accounts receivable:
Oil and gas sales 315,549 315,910
---------- ----------
Total current assets $ 519,473 $ 486,426
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,521,774 1,561,694
DEFERRED CHARGE 370,412 370,412
---------- ----------
$2,411,659 $2,418,532
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 155,322 $ 84,721
Payable to General Partner (Note 2) - 65,905
Gas imbalance payable 55,098 55,098
---------- ----------
Total current liabilities $ 210,420 $ 205,724
ACCRUED LIABILITY $ 112,500 $ 112,500
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 240,638) ($ 238,692)
Limited Partners, issued and
outstanding, 314,878 units 2,329,377 2,339,000
---------- ----------
Total Partners' capital $2,088,739 $2,100,308
---------- ----------
$2,411,659 $2,418,532
========== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $537,576 $1,325,576
Interest income 624 14,127
-------- ----------
$538,200 $1,339,703
COSTS AND EXPENSES:
Lease operating $259,323 $ 161,952
Production tax 30,878 94,077
Depreciation, depletion, and
amortization of oil and gas
properties 59,870 48,906
General and administrative
(Note 2) 105,126 103,821
-------- ----------
$455,197 $ 408,756
-------- ----------
NET INCOME $ 83,003 $ 930,947
======== ==========
GENERAL PARTNER - NET INCOME $ 13,626 $ 96,084
======== ==========
LIMITED PARTNERS - NET INCOME $ 69,377 $ 834,863
======== ==========
NET INCOME per unit $ .22 $ 2.65
======== ==========
UNITS OUTSTANDING 314,878 314,878
======== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 83,003 $ 930,947
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 59,870 48,906
(Increase) decrease in accounts
receivable - oil and gas sales 361 ( 2,541)
Increase in accounts payable 70,601 2,070
Decrease in payable to General
Partner ( 65,905) -
Decrease in accrued liability - ( 13,406)
-------- ----------
Net cash provided by operating
activities $147,930 $ 965,976
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 21,004) ($ 28,921)
Proceeds from sale of oil and gas
properties 1,054 -
-------- ----------
Net cash used by investing activities ($ 19,950) ($ 28,921)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 94,572) ($1,461,041)
-------- ----------
Net cash used by financing activities ($ 94,572) ($1,461,041)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 33,408 ($ 523,986)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 170,516 1,432,990
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $203,924 $ 909,004
======== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 122,006 $ 242,032
Accounts receivable:
Oil and gas sales 236,652 244,365
---------- ----------
Total current assets $ 358,658 $ 486,397
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,416,284 1,391,297
DEFERRED CHARGE 206,554 206,554
---------- ----------
$1,981,496 $2,084,248
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 134,082 $ 56,002
Payable to General Partner (Note 2) - 115,045
Gas imbalance payable 28,035 28,035
---------- ----------
Total current liabilities $ 162,117 $ 199,082
ACCRUED LIABILITY $ 26,344 $ 26,344
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 160,059) ($ 162,380)
Limited Partners, issued and
outstanding, 228,821 units 1,953,094 2,021,202
---------- ----------
Total Partners' capital $1,793,035 $1,858,822
---------- ----------
$1,981,496 $2,084,248
========== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $398,495 $933,005
Interest income 748 6,038
Loss on sale of oil and gas
properties - ( 75)
-------- --------
$399,243 $938,968
COSTS AND EXPENSES:
Lease operating $126,807 $104,042
Production tax 30,359 71,548
Depreciation, depletion, and
amortization of oil and gas
properties 60,767 45,759
General and administrative
(Note 2) 80,992 79,540
-------- --------
$298,925 $300,889
-------- --------
NET INCOME $100,318 $638,079
======== ========
GENERAL PARTNER - NET INCOME $ 15,426 $ 67,322
======== ========
LIMITED PARTNERS - NET INCOME $ 84,892 $570,757
======== ========
NET INCOME per unit $ .37 $ 2.49
======== ========
UNITS OUTSTANDING 228,821 228,821
======== ========
The accompanying condensed notes are an integral
part of these combined financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $100,318 $638,079
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 60,767 45,759
Loss on sale of oil and gas
properties - 75
Decrease in accounts receivable -
oil and gas sales 7,713 48,850
Increase in accounts payable 78,080 595
Decrease in payable to General
Partner ( 115,045) -
-------- --------
Net cash provided by operating
activities $131,833 $733,358
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 85,754) ($ 6,922)
-------- --------
Net cash used by investing activities ($ 85,754) ($ 6,922)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($166,105) ($562,690)
-------- --------
Net cash used by financing activities ($166,105) ($562,690)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($120,026) $163,746
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 242,032 511,025
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $122,006 $674,771
======== ========
The accompanying condensed notes are an integral
part of these combined financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 185,076 $ 278,738
Accounts receivable:
Oil and gas sales 244,295 229,071
---------- ----------
Total current assets $ 429,371 $ 507,809
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,392,072 1,424,064
DEFERRED CHARGE 38,188 38,188
---------- ----------
$1,859,631 $1,970,061
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 61,294 $ 49,662
Gas imbalance payable 7,953 7,953
---------- ----------
Total current liabilities $ 69,247 $ 57,615
ACCRUED LIABILITY $ 13,875 $ 13,875
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 109,537) ($ 118,848)
Limited Partners, issued and
outstanding, 171,400 units 1,886,046 2,017,419
---------- ----------
Total Partners' capital $1,776,509 $1,898,571
---------- ----------
$1,859,631 $1,970,061
========== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $416,558 $820,886
Interest income 735 5,075
Loss on sale of oil and
gas properties - ( 184)
-------- --------
$417,293 $825,777
COSTS AND EXPENSES:
Lease operating $114,106 $ 82,775
Production tax 27,443 54,561
Depreciation, depletion, and
amortization of oil and gas
properties 53,503 52,067
General and administrative
(Note 2) 64,054 63,489
-------- --------
$259,106 $252,892
-------- --------
NET INCOME $158,187 $572,885
======== ========
GENERAL PARTNER - NET INCOME $ 20,560 $ 61,467
======== ========
LIMITED PARTNERS - NET INCOME $137,627 $511,418
======== ========
NET INCOME per unit $ .80 $ 2.98
======== ========
UNITS OUTSTANDING 171,400 171,400
======== ========
The accompanying condensed notes are an integral
part of these combined financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $158,187 $572,885
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 53,503 52,067
Loss on sale of oil and gas
properties - 184
(Increase) decrease in accounts
receivable - oil and gas sales ( 15,224) 36,342
Increase in accounts payable 11,632 2,729
-------- --------
Net cash provided by operating
activities $208,098 $664,207
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 21,511) ($ 46,526)
-------- --------
Net cash used by investing activities ($ 21,511) ($ 46,526)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($280,249) ($499,497)
-------- --------
Net cash used by financing
activities ($280,249) ($499,497)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 93,662) $118,184
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 278,738 441,154
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $185,076 $559,338
======== ========
The accompanying condensed notes are an integral
part of these combined financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 402,218 $ 625,720
Accounts receivable:
Oil and gas sales 516,343 484,681
---------- ----------
Total current assets $ 918,561 $1,110,401
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,995,387 3,065,609
DEFERRED CHARGE 83,736 83,736
---------- ----------
$3,997,684 $4,259,746
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 131,218 $ 105,862
Gas imbalance payable 17,264 17,264
---------- ----------
Total current liabilities $ 148,482 $ 123,126
ACCRUED LIABILITY $ 31,820 $ 31,820
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 126,722) ($ 146,206)
Limited Partners, issued and
outstanding, 372,189 units 3,944,104 4,251,006
---------- ----------
Total Partners' capital $3,817,382 $4,104,800
---------- ----------
$3,997,684 $4,259,746
========== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
-------- ------------
REVENUES:
Oil and gas sales $881,703 $1,744,050
Interest income 1,771 10,878
Loss on sale of oil and
gas properties - ( 385)
-------- ----------
$883,474 $1,754,543
COSTS AND EXPENSES:
Lease operating $243,119 $ 176,803
Production tax 58,229 116,177
Depreciation, depletion, and
amortization of oil and gas
properties 115,185 111,048
General and administrative
(Note 2) 123,288 119,746
-------- ----------
$539,821 $ 523,774
-------- ----------
NET INCOME $343,653 $1,230,769
======== ==========
GENERAL PARTNER - NET INCOME $ 44,555 $ 131,983
======== ==========
LIMITED PARTNERS - NET INCOME $299,098 $1,098,786
======== ==========
NET INCOME per unit $ .80 $ 2.95
======== ==========
UNITS OUTSTANDING 372,189 372,189
======== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $343,653 $1,230,769
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 115,185 111,048
Loss on sale of oil and gas
properties - 385
(Increase) decrease in accounts
receivable - oil and gas sales ( 31,662) 77,902
Increase in accounts payable 25,356 5,798
-------- ----------
Net cash provided by operating
activities $452,532 $1,425,902
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 44,963) ($ 102,644)
-------- ----------
Net cash used by investing
activities ($ 44,963) ($ 102,644)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($631,071) ($1,059,581)
-------- ----------
Net cash used by financing
activities ($631,071) ($1,059,581)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($223,502) $ 263,677
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 625,720 934,304
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $402,218 $1,197,981
======== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2002 2001
---------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 85,090 $ 136,988
Accounts receivable:
Oil and gas sales 121,953 114,762
-------- ----------
Total current assets $207,043 $ 251,750
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 704,788 721,143
DEFERRED CHARGE 19,936 19,936
-------- ----------
$931,767 $ 992,829
======== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 31,885 $ 25,473
Gas imbalance payable 4,266 4,266
-------- ----------
Total current liabilities $ 36,151 $ 29,739
ACCRUED LIABILITY $ 6,430 $ 6,430
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 60,582) ($ 65,089)
Limited Partners, issued and
outstanding, 91,711 units 949,768 1,021,749
-------- ----------
Total Partners' capital $889,186 $ 956,660
-------- ----------
$931,767 $ 992,829
======== ==========
The accompanying condensed notes are an integral
part of these combined financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $208,444 $415,361
Interest income 329 2,540
Loss on sale of oil and
gas properties - ( 89)
-------- --------
$208,773 $417,812
COSTS AND EXPENSES:
Lease operating $ 58,346 $ 42,525
Production tax 13,822 27,834
Depreciation, depletion, and
amortization of oil and gas
properties 26,746 26,030
General and administrative
(Note 2) 40,533 41,153
-------- --------
$139,447 $137,542
-------- --------
NET INCOME $ 69,326 $280,270
======== ========
GENERAL PARTNER - NET INCOME $ 9,307 $ 30,116
======== ========
LIMITED PARTNERS - NET INCOME $ 60,019 $250,154
======== ========
NET INCOME per unit $ .65 $ 2.73
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral
part of these combined financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 69,326 $280,270
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 26,746 26,030
Loss on sale of oil and gas
properties - 89
(Increase) decrease in accounts
receivable - oil and gas sales ( 7,191) 18,888
Increase in accounts payable 6,412 1,389
-------- --------
Net cash provided by operating
activities $ 95,293 $326,666
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 10,391) ($ 26,042)
-------- --------
Net cash used by investing activities ($ 10,391) ($ 26,042)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($136,800) ($258,177)
-------- --------
Net cash used by financing activities ($136,800) ($258,177)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 51,898) $ 42,447
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 136,988 229,651
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 85,090 $272,098
======== ========
The accompanying condensed notes are an integral
part of these combined financial statements.
-25-
GEODYNE ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
MARCH 31, 2002
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of March 31, 2002, combined statements of
operations for the three months ended March 31, 2002 and 2001, and
combined statements of cash flows for the three months ended March 31,
2002 and 2001 have been prepared by Geodyne Resources, Inc., the General
Partner of the limited partnerships, without audit. Each limited
partnership is a general partner in the related Geodyne Production
Partnership in which Geodyne Resources, Inc. serves as the managing
partner. Unless the context indicates otherwise, all references to a
"Partnership" or the "Partnerships" are references to the limited
partnership and its related production partnership, collectively, and all
references to the "General Partner" are references to the general partner
of the limited partnerships and the managing partner of the production
partnerships, collectively. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the combined financial
position at March 31, 2002, the combined results of operations for the
three months ended March 31, 2002 and 2001, and the combined cash flows
for the three months ended March 31, 2002 and 2001.
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, 2001. The
results of operations for the period ended March 31, 2002 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.
-26-
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 prior to their transfer to the Partnerships. Leasehold impairment
is recognized based upon an individual property assessment and exploratory
experience. Upon discovery of commercial reserves, leasehold costs are
transferred to producing properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the proceeds are credited to oil and gas
properties.
ACCOUNTS PAYABLE - OTHER AND ACCRUED LIABILITY - OTHER
----------------------------------------------------
The Accrued Liability - Other at March 31, 2002 and December 31, 2001 for
the II-A Partnership represents a charge accrued for the payment of a
judgment related to plugging liabilities, which judgment is currently
under appeal. The decrease in the Accrued Liability - Other from December
31, 2001 to March 31, 2002 was due to a partial settlement of this
judgment. The settlement amount is recorded as an Accounts Payable - Other
at March 31, 2002, and will be paid in the second quarter of 2002.
-27-
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' Partnership Agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended March 31, 2002, the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
II-A $27,659 $127,443
II-B 23,746 95,190
II-C 17,161 40,689
II-D 22,263 82,863
II-E 20,776 60,216
II-F 18,949 45,105
II-G 25,344 97,944
II-H 16,398 24,135
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.
ACCOUNTS RECEIVABLE - GENERAL PARTNER
The Accounts Receivable - General Partner at December 31, 2001 for the
II-A Partnership represents accrued proceeds from a related party for the
sale of certain oil and gas properties during December 2001. Such amount
was received in January 2002.
PAYABLE TO GENERAL PARTNER
The payable to General Partner at December 31, 2001 for the II-D and II-E
Partnerships represents litigation costs and settlement of a liability.
Such amounts were repaid during the first quarter of 2002.
-28-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
-29-
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
----------- ------------------ ---------------
II-A July 22, 1987 $48,428,300
II-B October 14, 1987 36,171,900
II-C January 14, 1988 15,462,100
II-D May 10, 1988 31,487,800
II-E September 27, 1988 22,882,100
II-F January 5, 1989 17,140,000
II-G April 10, 1989 37,218,900
II-H May 17, 1989 9,171,100
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. Revenues and net
proceeds of a Partnership are largely dependent upon the volumes of oil
and gas sold and the prices received for such oil and gas. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of March 31, 2002 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
Occasional expenditures for new wells or well recompletion or workovers,
however, may reduce or eliminate cash available for a particular quarterly
distribution. During the three months ended March 31, 2002, capital
expenditures for the II-D Partnership totaled $21,004. These expenditures
were primarily due to the drilling of the Crusch A 1-3 well located in
Roosevelt County, Montana, in which the II-D Partnership owns a working
interest of approximately 11.5%. During the three months ended March 31,
2002, capital expenditures for the II-E Partnership totaled $85,754. These
expenditures were primarily due to the drilling of the Ernest Frey #1 and
Mordello Vincent #7 wells located in Acadia County, Louisiana, in each of
which the II-E Partnership owns a working interest of approximately 5.8%.
During the three months ended March 31,
-30-
2002, capital expenditures for the II-F, II-G, and II-H Partnerships
totaled $21,511, $44,963, and $10,391, respectively. These expenditures
were primarily due to a recompletion on the CH Weir B well located in Lea
County, New Mexico. The II-F, II-G, and II-H Partnerships own working
interests of approximately 4.0%, 8.3%, and 1.9%, respectively, in this
well.
The II-A Partnership's Statement of Cash Flows for the three months ended
March 31, 2002 includes proceeds from the sale of certain oil and gas
properties during December 2001. These proceeds were included in the
Partnership's cash distributions paid in February 2002.
NEW ACCOUNTING PRONOUNCEMENTS
Below is a brief description of Financial Accounting Standards ("FAS")
recently issued by the Financial Accounting Standards Board ("FASB") which
may have an impact on the Partnerships' future results of operations and
financial position.
In July 2001, the FASB issued FAS No. 143, "Accounting for Asset
Retirement Obligations", which is effective for fiscal years beginning
after June 15, 2002 (January 1, 2003 for the Partnerships). FAS No. 143
will require the recording of the fair value of liabilities associated
with the retirement of long-lived assets (mainly plugging and abandonment
costs for the Partnerships' depleted wells), in the period in which the
liabilities are incurred (at the time the wells are drilled). Management
has not yet determined the effect of adopting this statement on the
Partnerships' financial condition or results of operations.
In August 2001, the FASB issued FAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets", which is effective for
fiscal years beginning after December 15, 2001 (January 1, 2002 for the
Partnerships). This statement supersedes FAS No. 121 "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of". The provisions of FAS No. 144, as they relate to the Partnerships,
are essentially the same as FAS No. 121 and thus are not expected to have
a significant effect on the Partnerships fiscal condition or results of
operations.
-31-
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
variables affecting the Partnerships' revenues are the prices received for
the sale of oil and gas and the volumes of oil and gas produced. The
Partnerships' production is mainly natural gas, so such pricing and
volumes are the most significant factors.
Historically, oil and gas prices have been volatile and are likely to
continue to be volatile. As a result, forecasting future prices is subject
to great uncertainty and inaccuracy. Substantially all of the
Partnerships' gas reserves are being sold on the "spot market". Prices on
the spot market are subject to wide seasonal and regional pricing
fluctuations due to the highly competitive nature of the spot market. Such
spot market sales are generally short-term in nature and are dependent
upon the obtaining of transportation services provided by pipelines. It is
likewise difficult to predict production volumes. However, oil and gas are
depleting assets, so it can be expected that production levels will
decline over time. Gas prices in early 2001 were significantly higher than
the Partnerships' historical average. This was attributable to the higher
prices for crude oil, a substitute fuel in some markets, and reduced
production due to lower capital investments in 1998 and 1999. However,
prices for both oil and gas soon declined and were relatively lower in
late 2001 and early 2002 as a result of the declining economy and
relatively mild winter weather. Recently, prices of oil and gas have
improved, to some extent due to unrest in the Middle East. It is not
possible to accurately predict future trends.
-32-
II-A PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2001.
Three Months Ended March 31,
----------------------------
2002 2001
-------- ----------
Oil and gas sales $787,656 $1,686,111
Oil and gas production expenses $463,634 $ 354,626
Barrels produced 15,611 18,727
Mcf produced 214,431 180,685
Average price/Bbl $ 18.53 $ 26.76
Average price/Mcf $ 2.32 $ 6.56
As shown in the table above, total oil and gas sales decreased $898,455
(53.3%) for the three months ended March 31, 2002 as compared to the three
months ended March 31, 2001. Of this decrease, approximately $129,000 and
$908,000, respectively, were related to decreases in the average prices of
oil and gas sold. These decreases were partially offset by an increase of
approximately $221,000 related to an increase in volumes of gas sold.
Volumes of oil sold decreased 3,116 barrels, while volumes of gas sold
increased 33,746 Mcf for the three months ended March 31, 2002 as compared
to the three months ended March 31, 2001. The decrease in volumes of oil
sold was primarily due to normal declines in production. The increase in
volumes of gas sold was primarily due to (i) a negative gas balancing
adjustment on one significant well during the three months ended March 31,
2001 and (ii) a positive gas balancing adjustment on another significant
well during the three months ended March 31, 2002. Average oil and gas
prices decreased to $18.53 per barrel and $2.32 per Mcf, respectively, for
the three months ended March 31, 2002 from $26.76 per barrel and $6.56 per
Mcf, respectively, for the three months ended March 31, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $109,008 (30.7%) for the three months ended
March 31, 2002 as compared to the three months ended March 31, 2001. This
increase was primarily due to workover expenses incurred on several wells
during the three months ended March 31, 2002. This increase was partially
offset by (i) a decrease in production taxes associated with the decrease
in oil and gas sales and (ii) a partial reversal during the three months
ended March 31, 2002 of approximately $22,000 (due to a partial
post-judgment settlement) of a charge previously accrued for a judgment.
As a percentage of oil and gas sales, these expenses increased to 58.9%
for the three months ended March 31, 2002 from 21.0% for the three months
ended March 31,
-33-
2001. This percentage increase was primarily due to the decreases in
the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $1,034 (1.3%) for the three months ended March 31, 2002 as
compared to the three months ended March 31, 2001. As a percentage of oil
and gas sales, this expense increased to 10.3% for the three months ended
March 31, 2002 from 4.8% for the three months ended March 31, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $4,020 (2.7%) for the three
months ended March 31, 2002 as compared to the three months ended March
31, 2001. As a percentage of oil and gas sales, these expenses increased
to 19.7% for the three months ended March 31, 2002 from 9.0% for the three
months ended March 31, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2002 totaling $54,667,357 or 112.88% of the Limited Partners' capital
contributions.
II-B PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2001.
Three Months Ended March 31,
----------------------------
2002 2001
-------- ----------
Oil and gas sales $580,345 $1,329,368
Oil and gas production expenses $348,290 $ 227,278
Barrels produced 11,440 14,091
Mcf produced 156,760 144,187
Average price/Bbl $ 19.21 $ 26.22
Average price/Mcf $ 2.30 $ 6.66
As shown in the table above, total oil and gas sales decreased $749,023
(56.3%) for the three months ended March 31, 2002 as compared to the three
months ended March 31, 2001. Of this decrease, approximately $80,000 and
$683,000, respectively, were related to decreases in the average prices of
oil and gas sold. These decreases were partially offset by an increase of
approximately $84,000 related to an increase in volumes of gas sold.
Volumes of oil sold decreased 2,651 barrels, while volumes of gas sold
increased 12,573 Mcf for the three months ended March 31, 2002 as compared
to the three months ended March 31, 2001. The decrease in volumes of oil
sold was primarily due to normal declines in production. Average oil and
gas prices decreased to $19.21 per barrel and $2.30 per Mcf,
-34-
respectively, for the three months ended March 31, 2002 from $26.22 per
barrel and $6.66 per Mcf, respectively, for the three months ended March
31, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $121,012 (53.2%) for the three months ended
March 31, 2002 as compared to the three months ended March 31, 2001. This
increase was primarily due to workover expenses incurred on several wells
during the three months ended March 31, 2002. This increase was partially
offset by a decrease in production taxes associated with the decrease in
oil and gas sales. As a percentage of oil and gas sales, these expenses
increased to 60.0% for the three months ended March 31, 2002 from 17.1%
for the three months ended March 31, 2001. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $14,708 (30.9%) for the three months ended March 31, 2002 as
compared to the three months ended March 31, 2001. This increase was
primarily due to downward revisions in the estimates of remaining oil and
gas reserves at December 31, 2001. As a percentage of oil and gas sales,
this expense increased to 10.7% for the three months ended March 31, 2002
from 3.6% for the three months ended March 31, 2001. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold.
General and administrative expenses increased $2,217 (1.9%) for the three
months ended March 31, 2002 as compared to the three months ended March
31, 2001. As a percentage of oil and gas sales, these expenses increased
to 20.5% for the three months ended March 31, 2002 from 8.8% for the three
months ended March 31, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2002 totaling $39,542,916 or 109.32% of the Limited Partners' capital
contributions.
-35-
II-C PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2001.
Three Months Ended March 31,
----------------------------
2002 2001
-------- --------
Oil and gas sales $267,773 $597,276
Oil and gas production expenses $143,976 $116,219
Barrels produced 3,682 4,069
Mcf produced 85,162 74,354
Average price/Bbl $ 20.60 $ 25.96
Average price/Mcf $ 2.25 $ 6.61
As shown in the table above, total oil and gas sales decreased $329,503
(55.2%) for the three months ended March 31, 2002 as compared to the three
months ended March 31, 2001. Of this decrease, approximately $371,000 was
related to a decrease in the average price of gas sold. This decrease was
partially offset by an increase of approximately $71,000 related to an
increase in volumes of gas sold. Volumes of oil sold decreased 387
barrels, while volumes of gas sold increased 10,808 Mcf for the three
months ended March 31, 2002 as compared to the three months ended March
31, 2001. The decrease in volumes of oil sold was primarily due to normal
declines in production. The increase in volumes of gas sold was primarily
due to a negative gas balancing adjustment on one significant well during
the three months ended March 31, 2001. This increase was partially offset
by normal declines in production. Average oil and gas prices decreased to
$20.60 per barrel and $2.25 per Mcf, respectively, for the three months
ended March 31, 2002 from $25.96 per barrel and $6.61 per Mcf,
respectively, for the three months ended March 31, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $27,757 (23.9%) for the three months ended
March 31, 2002 as compared to the three months ended March 31, 2001. This
increase was primarily due to (i) workover expenses incurred on two
significant wells during the three months ended March 31, 2002 and (ii)
positive prior period lease operating expense adjustments on several wells
during the three months ended March 31, 2002. These increases were
partially offset by a decrease in production taxes associated with the
decrease in oil and gas sales. As a percentage of oil and gas sales, these
expenses increased to 53.8% for the three months ended March 31, 2002 from
19.5% for the three months ended March 31, 2001. This percentage increase
was primarily due to the decreases in the average prices of oil and gas
sold.
-36-
Depreciation, depletion, and amortization of oil and gas properties
increased $5,491 (22.5%) for the three months ended March 31, 2002 as
compared to the three months ended March 31, 2001. This increase was
primarily due to (i) the increase in volumes of gas sold and (ii) downward
revisions in the estimates of remaining oil reserves at December 31, 2001.
As a percentage of oil and gas sales, this expense increased to 11.1% for
the three months ended March 31, 2002 from 4.1% for the three months ended
March 31, 2001. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold.
General and administrative expenses decreased $926 (1.6%) for the three
months ended March 31, 2002 as compared to the three months ended March
31, 2001. As a percentage of oil and gas sales, these expenses increased
to 21.6% for the three months ended March 31, 2002 from 9.8% for the three
months ended March 31, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2002 totaling $18,261,686 or 118.11% of the Limited Partners' capital
contributions.
II-D PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2001.
Three Months Ended March 31,
----------------------------
2002 2001
-------- ----------
Oil and gas sales $537,576 $1,325,576
Oil and gas production expenses $290,201 $ 256,029
Barrels produced 6,382 5,062
Mcf produced 190,509 182,264
Average price/Bbl $ 19.42 $ 26.13
Average price/Mcf $ 2.17 $ 6.55
As shown in the table above, total oil and gas sales decreased $788,000
(59.4%) for the three months ended March 31, 2002 as compared to the three
months ended March 31, 2001. Of this decrease, approximately $834,000 was
related to a decrease in the average price of gas sold. Volumes of oil and
gas sold increased 1,320 barrels and 8,245 Mcf, respectively, for the
three months ended March 31, 2002 as compared to the three months ended
March 31, 2001. The increase in volumes of oil sold was primarily due to
(i) an increase in production on one significant well due to the
successful workover of that well during mid 2001 and (ii) a positive prior
period volume adjustment made by the operator on another significant well
during the three months ended March 31, 2002. Average oil and gas prices
decreased to
-37-
$19.42 per barrel and $2.17 per Mcf, respectively, for the three months
ended March 31, 2002 from $26.13 per barrel and $6.55 per Mcf,
respectively, for the three months ended March 31, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $34,172 (13.3%) for the three months ended
March 31, 2002 as compared to the three months ended March 31, 2001. This
increase was primarily due to (i) workover expenses incurred on two
significant wells during the three months ended March 31, 2002, (ii)
positive prior period lease operating expense adjustments made by the
operators on two other significant wells during the three months ended
March 31, 2002, and (iii) negative prior period lease operating expense
adjustments made by the operator on several wells during the three months
ended March 31, 2001. These increases were partially offset by a decrease
in production taxes associated with the decrease in oil and gas sales. As
a percentage of oil and gas sales, these expenses increased to 54.0% for
the three months ended March 31, 2002 from 19.3% for the three months
ended March 31, 2001. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $10,964 (22.4%) for the three months ended March 31, 2002 as
compared to the three months ended March 31, 2001. This increase was
primarily due to (i) the increases in volumes of oil and gas sold and (ii)
downward revisions in the estimates of remaining oil and gas reserves at
December 31, 2001. As a percentage of oil and gas sales, this expense
increased to 11.1% for the three months ended March 31, 2002 from 3.7% for
the three months ended March 31, 2001. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold.
General and administrative expenses increased $1,305 (1.3%) for the three
months ended March 31, 2002 as compared to the three months ended March
31, 2001. As a percentage of oil and gas sales, these expenses increased
to 19.6% for the three months ended March 31, 2002 from 7.8% for the three
months ended March 31, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2002 totaling $37,380,903 or 118.72% of the Limited Partners' capital
contributions.
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II-E PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2001.
Three Months Ended March 31,
----------------------------
2002 2001
-------- --------
Oil and gas sales $398,495 $933,005
Oil and gas production expenses $157,166 $175,590
Barrels produced 6,639 5,661
Mcf produced 121,493 115,246
Average price/Bbl $ 19.76 $ 28.12
Average price/Mcf $ 2.20 $ 6.71
As shown in the table above, total oil and gas sales decreased $534,510
(57.3%) for the three months ended March 31, 2002 as compared to the three
months ended March 31, 2001. Of this decrease, approximately $56,000 and
$548,000, respectively, were related to decreases in the average prices of
oil and gas sold. Volumes of oil and gas sold increased 978 barrels and
6,247 Mcf, respectively, for the three months ended March 31, 2002 as
compared to the three months ended March 31, 2001. The increase in volumes
of oil sold was primarily due to (i) an increase in production on one
significant well due to the successful workover of that well during mid
2001 and (ii) a positive prior period volume adjustment on another
significant well during the three months ended March 31, 2002. Average oil
and gas prices decreased to $19.76 per barrel and $2.20 per Mcf,
respectively, for the three months ended March 31, 2002 from $28.12 per
barrel and $6.71 per Mcf, respectively, for the three months ended March
31, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $18,424 (10.5%) for the three months ended
March 31, 2002 as compared to the three months ended March 31, 2001. This
decrease was primarily due to (i) a decrease in production taxes
associated with the decrease in oil and gas sales and (ii) a negative
prior period lease operating expense adjustment on one significant well
during the three months ended March 31, 2001. These decreases were
partially offset by an increase in lease operating expenses associated
with the increases in volumes of oil and gas sold. As a percentage of oil
and gas sales, these expenses increased to 39.4% for the three months
ended March 31, 2002 from 18.8% for the three months ended March 31, 2001.
This percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
-39-
Depreciation, depletion, and amortization of oil and gas properties
increased $15,008 (32.8%) for the three months ended March 31, 2002 as
compared to the three months ended March 31, 2001. This increase was
primarily due to (i) the increases in volumes of oil and gas sold and (ii)
downward revisions in the estimates of remaining oil reserves at December
31, 2001. As a percentage of oil and gas sales, this expense increased to
15.2% for the three months ended March 31, 2002 from 4.9% for the three
months ended March 31, 2001. This percentage increase was primarily due to
the decreases in the average prices of oil and gas sold.
General and administrative expenses increased $1,452 (1.8%) for the three
months ended March 31, 2002 as compared to the three months ended March
31, 2001. As a percentage of oil and gas sales, these expenses increased
to 20.3% for the three months ended March 31, 2002 from 8.5% for the three
months ended March 31, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2002 totaling $26,947,574 or 117.77% of Limited Partners' capital
contributions.
II-F PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2001.
Three Months Ended March 31,
----------------------------
2002 2001
-------- --------
Oil and gas sales $416,558 $820,886
Oil and gas production expenses $141,549 $137,336
Barrels produced 8,127 6,690
Mcf produced 117,567 110,052
Average price/Bbl $ 19.14 $ 28.05
Average price/Mcf $ 2.22 $ 5.75
As shown in the table above, total oil and gas sales decreased $404,328
(49.3%) for the three months ended March 31, 2002 as compared to the three
months ended March 31, 2001. Of this decrease, approximately $72,000 and
$415,000, respectively, were related to decreases in the average prices of
oil and gas sold. These decreases were partially offset by increases of
approximately $40,000 and $43,000, respectively, related to increases in
volumes of oil and gas sold. Volumes of oil and gas sold increased 1,437
barrels and 7,515 Mcf, respectively, for the three months ended March 31,
2002 as compared to the three months ended March 31, 2001. The increase in
volumes of oil sold was primarily due to (i) a positive prior period
volume adjustment on one significant well during the three months ended
March 31,
-40-
2002 and (ii) an increase in production on another significant well due to
the successful workover of that well during mid 2001. These increases were
partially offset by a positive prior period volume adjustment made by the
purchaser on one significant well during the three months ended March 31,
2001. Average oil and gas prices decreased to $19.14 per barrel and $2.22
per Mcf, respectively, for the three months ended March 31, 2002 from
$28.05 per barrel and $5.75 per Mcf, respectively, for the three months
ended March 31, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $4,213 (3.1%) for the three months ended March
31, 2002 as compared to the three months ended March 31, 2001. This
increase was primarily due to (i) an increase in lease operating expenses
associated with the increases in volumes of oil and gas sold and (ii)
workover expenses incurred on several wells during the three months ended
March 31, 2002. These increases were substantially offset by a decrease in
production taxes associated with the decrease in oil and gas sales. As a
percentage of oil and gas sales, these expenses increased to 34.0% for the
three months ended March 31, 2002 from 16.7% for the three months ended
March 31, 2001. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $1,436 (2.8%) for the three months ended March 31, 2002 as
compared to the three months ended March 31, 2001. This increase was
primarily due to the increases in volumes of oil and gas sold. This
increase was substantially offset by upward revisions in the estimates of
remaining gas reserves at December 31, 2001. As a percentage of oil and
gas sales, this expense increased to 12.8% for the three months ended
March 31, 2002 from 6.3% for the three months ended March 31, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
three months ended March 31, 2002 and 2001. As a percentage of oil and gas
sales, these expenses increased to 15.4% for the three months ended March
31, 2002 from 7.7% for the three months ended March 31, 2001. This
percentage increase was primarily due to the decrease in oil and gas
sales.
The Limited Partners have received cash distributions through March 31,
2002 totaling $21,211,051 or 123.75% of Limited Partners' capital
contributions.
-41-
II-G PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2001.
Three Months Ended March 31,
----------------------------
2002 2001
-------- ----------
Oil and gas sales $881,703 $1,744,050
Oil and gas production expenses $301,348 $ 292,980
Barrels produced 17,034 14,016
Mcf produced 250,402 234,700
Average price/Bbl $ 19.13 $ 28.05
Average price/Mcf $ 2.22 $ 5.76
As shown in the table above, total oil and gas sales decreased $862,347
(49.4%) for the three months ended March 31, 2002 as compared to the three
months ended March 31, 2001. Of this decrease, approximately $152,000 and
$885,000, respectively, were related to decreases in the average prices of
oil and gas sold. These decreases were partially offset by increases of
approximately $85,000 and $90,000, respectively, related to increases in
volumes of oil and gas sold. Volumes of oil and gas sold increased 3,018
barrels and 15,702 Mcf, respectively, for the three months ended March 31,
2002 as compared to the three months ended March 31, 2001. The increase in
volumes of oil sold was primarily due to (i) a positive prior period
volume adjustment on one significant well during the three months ended
March 31, 2002 and (ii) an increase in production on another significant
well due to the successful workover of that well during mid 2001. These
increases were partially offset by a positive prior period volume
adjustment made by the purchaser on one significant well during the three
months ended March 31, 2001. Average oil and gas prices decreased to
$19.13 per barrel and $2.22 per Mcf, respectively, for the three months
ended March 31, 2002 from $28.05 per barrel and $5.76 per Mcf,
respectively, for the three months ended March 31, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $8,368 (2.9%) for the three months ended March
31, 2002 as compared to the three months ended March 31, 2001. This
increase was primarily due to (i) an increase in lease operating expenses
associated with the increases in volumes of oil and gas sold and (ii)
workover expenses incurred on several wells during the three months ended
March 31, 2002. These increases were substantially offset by a decrease in
production taxes associated with the decrease in oil and gas sales. As a
percentage of oil and gas sales, these expenses increased to 34.2% for the
three months ended March 31, 2002 from 16.8% for the three months ended
March 31, 2001. This percentage
-42-
increase was primarily due to the decreases in the average prices of
oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $4,137 (3.7%) for the three months ended March 31, 2002 as
compared to the three months ended March 31, 2001. This increase was
primarily due to the increases in volumes of oil and gas sold. This
increase was substantially offset by upward revisions in the estimates of
remaining gas reserves at December 31, 2001. As a percentage of oil and
gas sales, this expense increased to 13.1% for the three months ended
March 31, 2002 from 6.4% for the three months ended March 31, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $3,542 (3.0%) for the three
months ended March 31, 2002 as compared to the three months ended March
31, 2001. As a percentage of oil and gas sales, these expenses increased
to 14.0% for the three months ended March 31, 2002 from 6.9% for the three
months ended March 31, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2002 totaling $44,183,371 or 118.71% of Limited Partners' capital
contributions.
II-H PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2002 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2001.
Three Months Ended March 31,
----------------------------
2002 2001
-------- --------
Oil and gas sales $208,444 $415,361
Oil and gas production expenses $ 72,168 $ 70,359
Barrels produced 3,954 3,258
Mcf produced 59,853 56,266
Average price/Bbl $ 19.12 $ 28.05
Average price/Mcf $ 2.22 $ 5.76
As shown in the table above, total oil and gas sales decreased $206,917
(49.8%) for the three months ended March 31, 2002 as compared to the three
months ended March 31, 2001. Of this decrease, approximately $35,000 and
$212,000, respectively, were related to decreases in the average prices of
oil and gas sold. These decreases were partially offset by an increase of
approximately $21,000 related to an increase in volumes of gas sold.
Volumes of oil and gas sold increased 696 barrels and 3,587 Mcf,
respectively, for the three months ended March 31, 2002 as compared to the
-43-
three months ended March 31, 2001. The increase in volumes of oil sold was
primarily due to (i) a positive prior period volume adjustment on one
significant well during the three months ended March 31, 2002 and (ii) an
increase in production on another significant well due to the successful
workover of that well during mid 2001. These increases were partially
offset by a positive prior period volume adjustment made by the purchaser
on one significant well during the three months ended March 31, 2001.
Average oil and gas prices decreased to $19.12 per barrel and $2.22 per
Mcf, respectively, for the three months ended March 31, 2002 from $28.05
per barrel and $5.76 per Mcf, respectively, for the three months ended
March 31, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $1,809 (2.6%) for the three months ended March
31, 2002 as compared to the three months ended March 31, 2001. This
increase was primarily due to (i) an increase in lease operating expenses
associated with the increases in volumes of oil and gas sold and (ii)
workover expenses incurred on several wells during the three months ended
March 31, 2002. These increases were substantially offset by a decrease in
production taxes associated with the decrease in oil and gas sales. As a
percentage of oil and gas sales, these expenses increased to 34.6% for the
three months ended March 31, 2002 from 16.9% for the three months ended
March 31, 2001. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $716 (2.8%) for the three months ended March 31, 2002 as
compared to the three months ended March 31, 2001. This increase was
primarily due to the increases in volumes of oil and gas sold. This
increase was substantially offset by upward revisions in the estimates of
remaining gas reserves at December 31, 2001. As a percentage of oil and
gas sales, this expense increased to 12.8% for the three months ended
March 31, 2002 from 6.3% for the three months ended March 31, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses decreased $620 (1.5%) for the three
months ended March 31, 2002 as compared to the three months ended March
31, 2001. As a percentage of oil and gas sales, these expenses increased
to 19.4% for the three months ended March 31, 2002 from 9.9% for the three
months ended March 31, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2002 totaling $10,291,364 or 112.22% of Limited Partners' capital
contributions.
-44-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
-45-
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
A lawsuit styled Xplor Energy Operating Co. v. The Newton Corp, et al.,
Case No. 99-04-01960-CV was filed on May 12, 1999 in the 284th Judicial District
Court of Montgomery County, Texas against Samson. The Plaintiff had acquired at
auction the interests of the II-A Partnership and other owners in the State
87-S1 well. The lawsuit alleged that Samson and others were the record owners of
the lease when it expired and therefore were responsible for the costs of
plugging and abandoning the well. Plaintiff sought to recover the Defendants'
proportionate share of the costs to plug and abandon the well along with
attorneys' fees and interest. The Defendants denied liability and trial was held
on August 6, 2001. At the conclusion of the trial the Court awarded the
Plaintiff $447,245.55. On January 15, 2002 the Defendants filed an appeal of the
matter with the Court of Appeals, Fifth District of Texas, Dallas, Texas, Case
No. 05-02-00070-CV. Samson, on behalf of the II-A Partnership and others,
intends to vigorously pursue this appeal. In connection with this appeal, the
Defendants filed an appellate bond in the amount of $491,970.10, which consists
of $86,444.12 for damages, $360,801.43 for costs and attorneys' fees, and
$44,724.55 for estimated post-judgment interest. The II-A Partnership had a
working interest in the plugged well and its' portion of the judgment and
estimated post-judgment interest is approximately $74,000.
On April 23, 2002 the II-A Partnership entered into a settlement agreement
with Xplor Energy Operating Company thereby settling for $24,750 the portion of
the judgment which is in favor of Xplor. The appeal is still ongoing with
respect to the portion of the judgment which is in favor of The Newton
Corporation. The II-A Partnership's portion of the remaining judgment and
estimated post-judgment interest are approximately $27,000.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None.
-46-
(b) Reports on Form 8-K.
1. Current Report on Form 8-K filed during the first quarter of
2002.
Date of Event: January 28, 2002
Date Filed with the SEC: January 28, 2002
Items Included: Item 5 - Other Events
Item 7 - Exhibits
2. Current Report on Form 8-K filed during the first quarter of
2002.
Date of Event: February 7, 2002
Date Filed with the SEC: February 8, 2002
Items Included: Item 5 - Other Events
Item 7 - Exhibits
-47-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: May 13, 2002 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: May 13, 2002 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
-48-