SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2002
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
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 III-A
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 694,738 $ 874,852
Accounts receivable:
Oil and gas sales 665,907 557,898
---------- ----------
Total current assets $1,360,645 $1,432,750
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,227,263 1,306,496
DEFERRED CHARGE 294,499 347,573
---------- ----------
$2,882,407 $3,086,819
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 163,497 $ 201,567
Gas imbalance payable 31,836 31,836
---------- ----------
Total current liabilities $ 195,333 $ 233,403
ACCRUED LIABILITY $ 40,963 $ 40,963
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 76,937) ($ 114,834)
Limited Partners, issued and
outstanding, 263,976 units 2,723,048 2,927,287
---------- ----------
Total Partners' capital $2,646,111 $2,812,453
---------- ----------
$2,882,407 $3,086,819
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $1,028,672 $1,192,527
Interest income 1,285 10,211
Loss on sale of oil and gas
properties - ( 1,751)
---------- ----------
$1,029,957 $1,200,987
COSTS AND EXPENSES:
Lease operating $ 201,781 $ 197,269
Production tax 27,316 82,879
Depreciation, depletion, and
amortization of oil and gas
properties 69,610 68,375
General and administrative
(Note 2) 74,563 72,237
---------- ----------
$ 373,270 $ 420,760
---------- ----------
NET INCOME $ 656,687 $ 780,227
========== ==========
GENERAL PARTNER - NET INCOME $ 71,805 $ 83,155
========== ==========
LIMITED PARTNERS - NET INCOME $ 584,882 $ 697,072
========== ==========
NET INCOME per unit $ 2.22 $ 2.64
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
----------- ----------
REVENUES:
Oil and gas sales $1,988,020 $2,857,403
Interest income 3,654 21,686
Loss on sale of oil and gas
properties - ( 1,751)
---------- ----------
$1,991,674 $2,877,338
COSTS AND EXPENSES:
Lease operating $ 425,563 $ 300,849
Production tax 67,258 194,797
Depreciation, depletion, and
amortization of oil and gas
properties 169,056 139,956
General and administrative
(Note 2) 164,674 161,780
---------- ----------
$ 826,551 $ 797,382
---------- ----------
NET INCOME $1,165,123 $2,079,956
========== ==========
GENERAL PARTNER - NET INCOME $ 131,362 $ 218,423
========== ==========
LIMITED PARTNERS - NET INCOME $1,033,761 $1,861,533
========== ==========
NET INCOME per unit $ 3.92 $ 7.05
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,165,123 $2,079,956
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 169,056 139,956
Loss on sale of oil and gas
properties - 1,751
(Increase) decrease in accounts
receivable - oil and gas sales ( 108,009) 42,865
Decrease in deferred charge 53,074 -
Increase (decrease) in accounts
payable ( 38,070) 114,884
Decrease in accrued liability - ( 8,095)
---------- ----------
Net cash provided by operating
activities $1,241,174 $2,371,317
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 89,823) ($ 39,624)
---------- ----------
Net cash used by investing activities ($ 89,823) ($ 39,624)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,331,465) ($2,318,137)
---------- ----------
Net cash used by financing activities ($1,331,465) ($2,318,137)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 180,114) $ 13,556
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 874,852 910,878
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 694,738 $ 924,434
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 370,634 $ 494,899
Accounts receivable:
Oil and gas sales 402,347 329,826
---------- ----------
Total current assets $ 772,981 $ 824,725
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 706,677 750,031
DEFERRED CHARGE 211,446 255,990
---------- ----------
$1,691,104 $1,830,746
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 110,745 $ 123,265
Gas imbalance payable 14,325 14,325
---------- ----------
Total current liabilities $ 125,070 $ 137,590
ACCRUED LIABILITY $ 19,358 $ 19,358
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 36,120) ($ 67,276)
Limited Partners, issued and
outstanding, 138,336 units 1,582,796 1,741,074
---------- ----------
Total Partners' capital $1,546,676 $1,673,798
---------- ----------
$1,691,104 $1,830,746
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- ---------
REVENUES:
Oil and gas sales $609,122 $673,206
Interest income 649 5,052
Loss on sale of oil and gas
properties - ( 739)
-------- --------
$609,771 $677,519
COSTS AND EXPENSES:
Lease operating $141,751 $132,986
Production tax 24,938 47,450
Depreciation, depletion, and
amortization of oil and gas
properties 41,373 37,639
General and administrative
(Note 2) 40,967 38,223
-------- --------
$249,029 $256,298
-------- --------
NET INCOME $360,742 $421,221
======== ========
GENERAL PARTNER - NET INCOME $ 59,806 $ 67,694
======== ========
LIMITED PARTNERS - NET INCOME $300,936 $353,527
======== ========
NET INCOME per unit $ 2.17 $ 2.55
======== ========
UNITS OUTSTANDING 138,336 138,336
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
----------- -----------
REVENUES:
Oil and gas sales $1,207,706 $1,579,056
Interest income 1,938 11,157
Loss on sale of oil and gas
properties - ( 739)
---------- ----------
$1,209,644 $1,589,474
COSTS AND EXPENSES:
Lease operating $ 291,184 $ 202,118
Production tax 57,883 108,415
Depreciation, depletion, and
amortization of oil and gas
properties 103,177 76,659
General and administrative
(Note 2) 94,016 92,544
---------- ----------
$ 546,260 $ 479,736
---------- ----------
NET INCOME $ 663,384 $1,109,738
========== ==========
GENERAL PARTNER - NET INCOME $ 113,662 $ 175,519
========== ==========
LIMITED PARTNERS - NET INCOME $ 549,722 $ 934,219
========== ==========
NET INCOME per unit $ 3.97 $ 6.75
========== ==========
UNITS OUTSTANDING 138,336 138,336
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $663,384 $1,109,738
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 103,177 76,659
Loss on sale of oil and gas
properties - 739
(Increase) decrease in accounts
receivable - oil and gas sales ( 72,521) 11,217
Decrease in deferred charge 44,544 -
Increase (decrease) in accounts
payable ( 12,520) 83,055
Decrease in accrued liability - ( 6,795)
-------- ----------
Net cash provided by operating
activities $726,064 $1,274,613
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 59,823) ($ 26,325)
Proceeds from the sale of oil and
gas properties - 197
-------- ----------
Net cash used by investing activities ($ 59,823) ( $ 26,128)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($790,506) ($1,278,412)
-------- ----------
Net cash used by financing activities ($790,506) ($1,278,412)
-------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($124,265) ($ 29,927)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 494,899 496,576
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $370,634 $ 466,649
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 463,145 $ 371,012
Accounts receivable:
Oil and gas sales 455,661 362,134
---------- ----------
Total current assets $ 918,806 $ 733,146
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,690,473 1,820,677
DEFERRED CHARGE 73,472 73,472
---------- ----------
$2,682,751 $2,627,295
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 95,849 $ 86,399
Gas imbalance payable 40,724 40,724
---------- ----------
Total current liabilities $ 136,573 $ 127,123
ACCRUED LIABILITY $ 168,448 $ 168,448
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 149,388) ($ 175,495)
Limited Partners, issued and
outstanding, 244,536 units 2,527,118 2,507,219
---------- ----------
Total Partners' capital $2,377,730 $2,331,724
---------- ----------
$2,682,751 $2,627,295
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $714,982 $1,239,788
Interest income 817 11,094
Gain (loss) on sale of oil and
gas properties 17,501 ( 606)
-------- ----------
$733,300 $1,250,276
COSTS AND EXPENSES:
Lease operating $107,043 $ 139,441
Production tax 41,549 71,631
Depreciation, depletion, and
amortization of oil and gas
properties 68,651 69,069
General and administrative
(Note 2) 69,287 67,006
-------- ----------
$286,530 $ 347,147
-------- ----------
NET INCOME $446,770 $ 903,129
======== ==========
GENERAL PARTNER - NET INCOME $ 50,774 $ 47,365
======== ==========
LIMITED PARTNERS - NET INCOME $395,996 $ 855,764
======== ==========
NET INCOME per unit $ 1.62 $ 3.50
======== ==========
UNITS OUTSTANDING 244,536 244,536
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $1,285,551 $3,225,413
Interest income 2,026 22,220
Gain (loss) on sale of oil and
gas properties 17,501 ( 606)
---------- ----------
$1,305,078 $3,247,027
COSTS AND EXPENSES:
Lease operating $ 294,886 $ 295,898
Production tax 73,777 214,977
Depreciation, depletion, and
amortization of oil and gas
properties 136,143 142,647
General and administrative
(Note 2) 153,662 151,086
---------- ----------
$ 658,468 $ 804,608
---------- ----------
NET INCOME $ 646,610 $2,442,419
========== ==========
GENERAL PARTNER - NET INCOME $ 76,711 $ 126,716
========== ==========
LIMITED PARTNERS - NET INCOME $ 569,899 $2,315,703
========== ==========
NET INCOME per unit $ 2.33 $ 9.47
========== ==========
UNITS OUTSTANDING 244,536 244,536
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $646,610 $2,442,419
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 136,143 142,647
(Gain) loss on sale of oil and gas
properties ( 17,501) 606
(Increase) decrease in accounts
receivable - oil and gas sales ( 93,527) 136,951
Decrease in deferred charge - 5,062
Increase (decrease) in accounts
payable 9,450 ( 27,640)
Increase in accrued liability - 7,911
-------- ----------
Net cash provided by operating
activities $681,175 $2,707,956
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 7,408) ($ 101,374)
Proceeds from sale of oil and gas
properties 18,970 -
-------- ----------
Net cash provided (used) by investing
activities $ 11,562 ($ 101,374)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($600,604) ($2,421,677)
-------- ----------
Net cash used by financing activities ($600,604) ($2,421,677)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 92,133 $ 184,905
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 371,012 903,268
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $463,145 $1,088,173
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 283,565 $ 160,008
Accounts receivable:
Oil and gas sales 327,191 250,386
---------- ----------
Total current assets $ 610,756 $ 410,394
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 728,044 735,922
DEFERRED CHARGE 11,614 11,614
---------- ----------
$1,350,414 $1,157,930
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 102,762 $ 147,868
---------- ----------
Total current liabilities $ 102,762 $ 147,868
ACCRUED LIABILITY $ 210,194 $ 210,194
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 47,781) ($ 72,956)
Limited Partners, issued and
outstanding, 131,008 units 1,085,239 872,824
---------- ----------
Total Partners' capital $1,037,458 $ 799,868
---------- ----------
$1,350,414 $1,157,930
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- --------
REVENUES:
Oil and gas sales $525,911 $799,965
Interest income 328 7,109
Gain (loss) on sale of oil and gas
properties 15,250 ( 52)
-------- --------
$541,489 $807,022
COSTS AND EXPENSES:
Lease operating $128,699 $146,488
Production tax 38,157 53,134
Depreciation, depletion, and
amortization of oil and gas
properties 28,844 29,842
General and administrative
(Note 2) 39,555 36,952
-------- --------
$235,255 $266,416
-------- --------
NET INCOME $306,234 $540,606
======== ========
GENERAL PARTNER - NET INCOME $ 33,187 $ 27,869
======== ========
LIMITED PARTNERS - NET INCOME $273,047 $512,737
======== ========
NET INCOME per unit $ 2.08 $ 3.91
======== ========
UNITS OUTSTANDING 131,008 131,008
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- -----------
REVENUES:
Oil and gas sales $934,938 $2,077,012
Interest income 761 14,163
Gain (loss) on sale of oil and gas
properties 15,250 ( 52)
-------- ----------
$950,949 $2,091,123
COSTS AND EXPENSES:
Lease operating $322,205 $ 328,732
Production tax 66,519 140,953
Depreciation, depletion, and
amortization of oil and gas
properties 56,842 61,695
General and administrative
(Note 2) 90,433 89,178
-------- ----------
$535,999 $ 620,558
-------- ----------
NET INCOME $414,950 $1,470,565
======== ==========
GENERAL PARTNER - NET INCOME $ 46,535 $ 75,288
======== ==========
LIMITED PARTNERS - NET INCOME $368,415 $1,395,277
======== ==========
NET INCOME per unit $ 2.81 $ 10.65
======== ==========
UNITS OUTSTANDING 131,008 131,008
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $414,950 $1,470,565
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 56,842 61,695
(Gain) loss on sale of oil and gas
properties ( 15,250) 52
(Increase) decrease in accounts
receivable - oil and gas sales ( 76,805) 110,090
Decrease in deferred charge - 3,234
Increase (decrease) in accounts
payable ( 45,106) 21,008
Increase in accrued liability - 14,003
-------- ----------
Net cash provided by operating
activities $334,631 $1,680,647
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 49,995) ($ 8,857)
Proceeds from the sale of oil and
gas properties 16,281 -
-------- ----------
Net cash used by investing activities ($ 33,714) ($ 8,857)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($177,360) ($1,533,565)
-------- ----------
Net cash used by financing activities ($177,360) ($1,533,565)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $123,557 $ 138,225
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 160,008 561,839
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $283,565 $ 700,064
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 515,801 $ 440,024
Accounts receivable:
Oil and gas sales 964,452 687,090
---------- ----------
Total current assets $1,480,253 $1,127,114
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,752,848 2,553,810
DEFERRED CHARGE 87,712 87,712
---------- ----------
$4,320,813 $3,768,636
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 531,313 $ 773,007
Gas imbalance payable 4,991 4,991
---------- ----------
Total current liabilities $ 536,304 $ 777,998
ACCRUED LIABILITY $ 317,221 $ 317,221
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 205,191) ($ 286,758)
Limited Partners, issued and
outstanding, 418,266 units 3,672,479 2,960,175
---------- ----------
Total Partners' capital $3,467,288 $2,673,417
---------- ----------
$4,320,813 $3,768,636
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $1,519,382 $2,240,874
Interest income 76 17,445
Loss on sale of oil and gas
properties - ( 7)
---------- ----------
$1,519,458 $2,258,312
COSTS AND EXPENSES:
Lease operating $ 728,630 $ 694,574
Production tax 104,166 144,083
Depreciation, depletion, and
amortization of oil and gas
properties 64,451 70,013
General and administrative
(Note 2) 117,443 115,943
---------- ----------
$1,014,690 $1,024,613
---------- ----------
NET INCOME $ 504,768 $1,233,699
========== ==========
GENERAL PARTNER - NET INCOME $ 56,270 $ 63,614
========== ==========
LIMITED PARTNERS - NET INCOME $ 448,498 $1,170,085
========== ==========
NET INCOME per unit $ 1.07 $ 2.80
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $2,898,815 $5,437,047
Interest income 916 37,831
Gain on sale of oil and gas
properties - 571
---------- ----------
$2,899,731 $5,475,449
COSTS AND EXPENSES:
Lease operating $1,513,311 $1,537,686
Production tax 183,033 340,897
Depreciation, depletion, and
amortization of oil and gas
properties 144,519 153,098
General and administrative
(Note 2) 253,069 248,745
---------- ----------
$2,093,932 $2,280,426
---------- ----------
NET INCOME $ 805,799 $3,195,023
========== ==========
GENERAL PARTNER - NET INCOME $ 93,495 $ 163,984
========== ==========
LIMITED PARTNERS - NET INCOME $ 712,304 $3,031,039
========== ==========
NET INCOME per unit $ 1.70 $ 7.25
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $805,799 $3,195,023
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 144,519 153,098
Gain on sale of oil and gas
properties - ( 571)
(Increase) decrease in accounts
receivable - oil and gas sales ( 277,362) 564,985
Decrease in deferred charge - 15,262
Increase (decrease) in accounts
payable ( 241,694) 148,191
Decrease in accrued liability - ( 40,439)
-------- ----------
Net cash provided by operating
activities $431,262 $4,035,549
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($344,108) ($ 745)
Proceeds from sale of oil and gas
properties 551 26,346
-------- ----------
Net cash provided (used) by investing
activities ($343,557) $ 25,601
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 11,928) ($3,807,975)
-------- ----------
Net cash used by financing activities ($ 11,928) ($3,807,975)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 75,777 $ 253,175
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 440,024 1,627,830
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $515,801 $1,881,005
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 181,693 $ 144,433
Accounts receivable:
Oil and gas sales 298,826 239,821
---------- ----------
Total current assets $ 480,519 $ 384,254
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,848,761 1,948,551
DEFERRED CHARGE 37,001 37,001
---------- ----------
$2,366,281 $2,369,806
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 75,106 $ 58,774
Gas imbalance payable 2,295 2,295
---------- ----------
Total current liabilities $ 77,401 $ 61,069
ACCRUED LIABILITY $ 111,171 $ 111,171
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 154,859) ($ 161,655)
Limited Partners, issued and
outstanding, 221,484 units 2,332,568 2,359,221
---------- ----------
Total Partners' capital $2,177,709 $2,197,566
---------- ----------
$2,366,281 $2,369,806
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ---------
REVENUES:
Oil and gas sales $446,409 $812,040
Interest income 358 11,612
Loss on sale of oil and
gas properties - ( 6)
-------- --------
$446,767 $823,646
COSTS AND EXPENSES:
Lease operating $146,619 $189,686
Production tax 27,836 47,124
Depreciation, depletion, and
amortization of oil and gas
properties 49,521 54,439
General and administrative
(Note 2) 63,528 61,139
-------- --------
$287,504 $352,388
-------- --------
NET INCOME $159,263 $471,258
======== ========
GENERAL PARTNER - NET INCOME $ 9,926 $ 25,160
======== ========
LIMITED PARTNERS - NET INCOME $149,337 $446,098
======== ========
NET INCOME per unit $ .68 $ 2.02
======== ========
UNITS OUTSTANDING 221,484 221,484
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- -----------
REVENUES:
Oil and gas sales $862,581 $2,081,613
Interest income 923 21,458
Gain on sale of oil and
gas properties - 313,447
-------- ----------
$863,504 $2,416,518
COSTS AND EXPENSES:
Lease operating $253,183 $ 423,223
Production tax 42,660 118,490
Depreciation, depletion, and
amortization of oil and gas
properties 103,979 122,052
General and administrative
(Note 2) 141,093 138,684
-------- ----------
$540,915 $ 802,449
-------- ----------
NET INCOME $322,589 $1,614,069
======== ==========
GENERAL PARTNER - NET INCOME $ 20,242 $ 84,513
======== ==========
LIMITED PARTNERS - NET INCOME $302,347 $1,529,556
======== ==========
NET INCOME per unit $ 1.37 $ 6.91
======== ==========
UNITS OUTSTANDING 221,484 221,484
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $322,589 $1,614,069
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 103,979 122,052
Gain on sale of oil and gas
properties - ( 313,447)
(Increase) decrease in accounts
receivable - oil and gas sales ( 59,005) 278,656
Decrease in deferred charge - 7,540
Increase (decrease) in accounts
payable 16,332 ( 6,942)
-------- ----------
Net cash provided by operating
activities $383,895 $1,701,928
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 5,282) ($ 615)
Proceeds from the sale of oil
and gas properties 1,093 321,265
-------- ----------
Net cash provided (used) by investing
activities ($ 4,189) $ 320,650
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($342,446) ($1,705,068)
-------- ----------
Net cash used by financing activities ($342,446) ($1,705,068)
-------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 37,260 $ 317,510
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 144,433 754,880
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $181,693 $1,072,390
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 120,284 $ 100,271
Accounts receivable:
Oil and gas sales 177,192 146,838
---------- ----------
Total current assets $ 297,476 $ 247,109
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,010,780 1,064,542
DEFERRED CHARGE 24,379 24,379
---------- ----------
$1,332,635 $1,336,030
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 50,065 $ 43,676
---------- ----------
Total current liabilities $ 50,065 $ 43,676
ACCRUED LIABILITY $ 68,289 $ 68,289
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 89,552) ($ 93,950)
Limited Partners, issued and
outstanding, 121,925 units 1,303,833 1,318,015
---------- ----------
Total Partners' capital $1,214,281 $1,224,065
---------- ----------
$1,332,635 $1,336,030
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- ---------
REVENUES:
Oil and gas sales $275,796 $459,884
Interest income 169 6,839
Loss on sale of oil and gas
properties - ( 15)
-------- --------
$275,965 $466,708
COSTS AND EXPENSES:
Lease operating $ 93,211 $117,025
Production tax 16,180 26,625
Depreciation, depletion, and
amortization of oil and gas
properties 28,181 29,551
General and administrative
(Note 2) 36,598 33,844
-------- --------
$174,170 $207,045
-------- --------
NET INCOME $101,795 $259,663
======== ========
GENERAL PARTNER - NET INCOME $ 6,209 $ 13,823
======== ========
LIMITED PARTNERS - NET INCOME $ 95,586 $245,840
======== ========
NET INCOME per unit $ .79 $ 2.01
======== ========
UNITS OUTSTANDING 121,925 121,925
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- -----------
REVENUES:
Oil and gas sales $520,195 $1,178,246
Interest income 468 12,575
Gain on sale of oil and gas
properties - 207,189
-------- ----------
$520,663 $1,398,010
COSTS AND EXPENSES:
Lease operating $162,614 $ 256,886
Production tax 25,041 66,190
Depreciation, depletion, and
amortization of oil and gas
properties 57,586 66,054
General and administrative
(Note 2) 84,792 83,485
-------- ----------
$330,033 $ 472,615
-------- ----------
NET INCOME $190,630 $ 925,395
======== ==========
GENERAL PARTNER - NET INCOME $ 11,812 $ 48,283
======== ==========
LIMITED PARTNERS - NET INCOME $178,818 $ 877,112
======== ==========
NET INCOME per unit $ 1.47 $ 7.19
======== ==========
UNITS OUTSTANDING 121,925 121,925
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $190,630 $925,395
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 57,586 66,054
Gain on sale of oil and gas
properties - ( 207,189)
(Increase) decrease in accounts
receivable - oil and gas sales ( 30,354) 162,638
Decrease in deferred charge - 4,687
Increase (decrease) in accounts
payable 6,389 ( 4,677)
-------- --------
Net cash provided by operating
activities $224,251 $946,908
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 4,155) ($ 10,262)
Proceeds from the sale of oil and
gas properties 331 209,502
-------- --------
Net cash provided (used) by
investing activities ($ 3,824) $199,240
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($200,414) ($959,278)
-------- --------
Net cash used by financing activities ($200,414) ($959,278)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 20,013 $186,870
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 100,271 434,158
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $120,284 $621,028
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-29-
GEODYNE ENERGY INCOME PROGRAM III LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2002
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 2002, statements of operations for the
three and six months ended June 30, 2002 and 2001, and statements of cash
flows for the six months ended June 30, 2002 and 2001 have been prepared
by Geodyne Resources, Inc., the General Partner of the Partnerships (the
"General Partner"), without audit. In the opinion of management the
financial statements referred to above include all necessary adjustments,
consisting of normal recurring adjustments, to present fairly the
financial position at June 30, 2002, the results of operations for the
three and six months ended June 30, 2002 and 2001, and the cash flows for
the six months ended June 30, 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 June 30, 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.
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
-30-
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.
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 June 30, 2002, the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
III-A $5,095 $ 69,468
III-B 4,562 36,405
III-C 4,934 64,353
III-D 5,079 34,476
III-E 7,373 110,070
III-F 5,244 58,284
III-G 4,513 32,085
-31-
During the six months ended June 30, 2002, the following payments were
made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
III-A $25,738 $138,936
III-B 21,206 72,810
III-C 24,956 128,706
III-D 21,481 68,952
III-E 32,929 220,140
III-F 24,525 116,568
III-G 20,622 64,170
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
-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, 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 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.
-33-
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
III-A November 22, 1989 $26,397,600
III-B January 24, 1990 13,833,600
III-C February 27, 1990 24,453,600
III-D September 5, 1990 13,100,800
III-E December 26, 1990 41,826,600
III-F March 7, 1991 22,148,400
III-G September 20, 1991 12,192,500
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the 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 June 30, 2002 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
The III-F and III-G Partnerships' Statements of Cash Flows for the six
months ended June 30, 2001 include proceeds from the sale of certain oil
and gas properties during the first quarter of 2001. These proceeds were
included in the Partnerships' May 2001 cash distributions.
Occasional expenditures for new wells or well recompletions or workovers,
however, may reduce or eliminate cash available for a particular quarterly
cash distribution. During the six months ended June 30, 2002, capital
expenditures for the III-A and III-B Partnerships totaled $89,823 and
$59,823, respectively. These expenditures were primarily due to
recompletions of several wells located in Jefferson Davis Parish,
Louisiana. The III-A and III-B Partnerships own working interests of
approximately 12.2% and 8.0%, respectively, in these wells. In addition,
during the six months ended June 30, 2002, capital expenditures for
-34-
the III-D and III-E Partnerships totaled $49,995 and $344,108,
respectively. These expenditures were primarily due to drilling activities
in a large unitized property, the Jay-Little Escambia Creek Field Unit,
located in Santa Rosa County, Florida, in which the Partnerships own
working interests of approximately 0.7% and 4.7%, respectively.
Pursuant to the terms of the Partnership Agreements for the Partnerships
(the "Partnership Agreements") the Partnerships were initially scheduled
to terminate on the dates indicated in the "Initial Termination Date"
column of the following chart. However, the Partnership Agreements provide
that the General Partner may extend the term of each Partnership for up to
five periods of two years each. As of the date of this Quarterly Report,
the General Partner has extended the terms of the III-A, III-B, and III-C
Partnerships for the second two-year extension period and the III-D,
III-E, III-F, and III-G Partnerships for the first two-year extension
period. Therefore, the Partnerships are currently scheduled to terminate
on the dates indicated in the "Current Termination Date" column of the
following chart.
Initial Extensions Current
Partnership Termination Date Exercised Termination Date
----------- ----------------- --------- -----------------
III-A November 22, 1999 2 November 22, 2003
III-B January 24, 2000 2 January 24, 2004
III-C February 28, 2000 2 February 28, 2004
III-D September 5, 2000 1 September 5, 2002
III-E December 26, 2000 1 December 26, 2002
III-F March 7, 2001 1 March 7, 2003
III-G September 20, 2001 1 September 20, 2003
The General Partner currently intends to extend the term of the III-D
Partnership for two years beyond its current termination date, but has not
determined whether it intends to further extend the terms of any other
Partnerships.
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
-35-
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 financial condition or results of
operations.
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.
-36-
III-A PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
---------- ----------
Oil and gas sales $1,028,672 $1,192,527
Oil and gas production expenses $ 229,097 $ 280,148
Barrels produced 9,322 11,853
Mcf produced 226,274 174,536
Average price/Bbl $ 24.93 $ 26.30
Average price/Mcf $ 3.52 $ 5.05
As shown in the table above, total oil and gas sales decreased $163,855
(13.7%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $346,000
was related to a decrease in the average price of gas sold and (ii)
$67,000 was related to a decrease in volumes of oil sold. These decreases
were partially offset by an increase of approximately $261,000 related to
an increase in volumes of gas sold. Volumes of oil sold decreased 2,531
barrels, while volumes of gas sold increased 91,738 Mcf for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. The decrease in volumes of oil sold was primarily due to a decline
in production on one significant well following the successful
recompletion of that well during mid 2001. The increase in volumes of gas
sold was primarily due to an increase in production on one significant
well due to the successful workover of that well during early 2002.
Average oil and gas prices decreased to $24.93 per barrel and $3.52 per
Mcf, respectively, for the three months ended June 30, 2002 from $26.30
per barrel and $5.05 per Mcf, respectively, for the three months ended
June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $51,051 (18.2%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 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 decrease in
workover expenses incurred on two wells within the same unit during the
three months ended June 30, 2002 as compared to the three months ended
June 30, 2001. These decreases were partially offset by workover expenses
incurred on another significant well during the three months ended June
30, 2002. As a percentage of oil and gas sales, these expenses decreased
to 22.3% for the three months ended June 30, 2002 from 23.5% for the three
months ended June 30, 2001.
-37-
Depreciation, depletion, and amortization of oil and gas properties
increased $1,235 (1.8%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. As a percentage of oil
and gas sales, this expense increased to 6.8% for the three months ended
June 30, 2002 from 5.7% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $2,326 (3.2%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
7.2% for the three months ended June 30, 2002 from 6.1% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
---------------------------
2002 2001
---------- ----------
Oil and gas sales $1,988,020 $2,857,403
Oil and gas production expenses $ 492,821 $ 495,646
Barrels produced 27,622 24,201
Mcf produced 519,631 357,628
Average price/Bbl $ 21.73 $ 27.46
Average price/Mcf $ 2.67 $ 6.13
As shown in the table above, total oil and gas sales decreased $869,383
(30.4%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately $158,000 and
$1,798,000, respectively, were related to decreases in the average prices
of oil and gas sold. These decreases were partially offset by increases of
approximately $94,000 and $993,000, respectively, related to increases in
volumes of oil and gas sold. Volumes of oil and gas sold increased 3,421
barrels and 162,003 Mcf, respectively, for the six months ended June 30,
2002 as compared to the six months ended June 30, 2001. The increase in
volumes of oil sold was primarily due to an increase in production on two
significant wells due to the successful recompletions of those wells
during mid 2001. The increase in volumes of gas sold was primarily due to
(i) an increase in production on one significant well due to the
successful workover of that well during early 2002 and (ii) a positive
prior period gas balancing adjustment on another significant well during
the six months ended June 30, 2002. Average oil and gas prices decreased
to $21.73 per barrel and $2.67 per Mcf, respectively, for the six months
ended June 30, 2002 from $27.46 per barrel and $6.13 per Mcf,
respectively, for the six months ended June 30, 2001.
-38-
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the six months ended
June 30, 2002 and 2001. A decrease in oil and gas production expenses
primarily due to a decrease in production taxes associated with the
decrease in oil and gas sales was substantially offset by (i) workover
expenses incurred on one significant well during the six months ended June
30, 2002 and (ii) a positive prior period lease operating expense
adjustment on one significant well during the six months ended June 30,
2002. As a percentage of oil and gas sales, these expenses increased to
24.8% for the six months ended June 30, 2002 from 17.3% for the six months
ended June 30, 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 $29,100 (20.8%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This increase was
primarily due to the increases in volumes of oil and gas sold, which
increase was partially offset by upward revisions in the estimates of
remaining oil reserves. As a percentage of oil and gas sales, this expense
increased to 8.5% for the six months ended June 30, 2002 from 4.9% for the
six months ended June 30, 2001. This percentage increase was primarily due
to the decreases in the average prices of oil and gas sold.
General and administrative expenses increased $2,894 (1.8%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
8.3% for the six months ended June 30, 2002 from 5.7% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $32,841,701 or 124.41% of Limited Partners' capital
contributions.
-39-
III-B PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Oil and gas sales $609,122 $673,206
Oil and gas production expenses $166,689 $180,436
Barrels produced 6,782 9,072
Mcf produced 123,700 85,835
Average price/Bbl $ 25.51 $ 26.50
Average price/Mcf $ 3.53 $ 5.04
As shown in the table above, total oil and gas sales decreased $64,084
(9.5%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $7,000 and
$187,000, respectively, were related to decreases in the average prices of
oil and gas sold and (ii) $61,000 was related to a decrease in volumes of
oil sold. These decreases were partially offset by an increase of
approximately $191,000 related to an increase in volumes of gas sold.
Volumes of oil sold decreased 2,290 barrels, while volumes of gas sold
increased 37,865 Mcf for the three months ended June 30, 2002 as compared
to the three months ended June 30, 2001. The decrease in volumes of oil
sold was primarily due to a decline in production on one significant well
following the successful recompletion of that well during mid 2001. The
increase in volumes of gas sold was primarily due to an increase in
production on another significant well due to the successful workover of
that well during early 2002. Average oil and gas prices decreased to
$25.51 per barrel and $3.53 per Mcf, respectively, for the three months
ended June 30, 2002 from $26.50 per barrel and $5.04 per Mcf,
respectively, for the three months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $13,747 (7.6%) for the three months ended June
30, 2002 as compared to the three months ended June 30, 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 decrease in
workover expenses incurred on two wells within the same unit during the
three months ended June 30, 2002 as compared to the three months ended
June 30, 2001. These decreases were partially offset by workover expenses
incurred on another significant well during the three months ended June
30, 2002. As a percentage of oil and gas sales, these expenses increased
to 27.4% for the three months ended June 30, 2002 from 26.8% for the three
months ended June 30, 2001.
-40-
Depreciation, depletion, and amortization of oil and gas properties
increased $3,734 (9.9%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. As a percentage of oil
and gas sales, this expense increased to 6.8% for the three months ended
June 30, 2002 from 5.6% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $2,744 (7.2%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
6.7% for the three months ended June 30, 2002 from 5.7% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
---------- ----------
Oil and gas sales $1,207,706 $1,579,056
Oil and gas production expenses $ 349,067 $ 310,533
Barrels produced 20,217 18,639
Mcf produced 288,670 173,850
Average price/Bbl $ 22.00 $ 27.56
Average price/Mcf $ 2.64 $ 6.13
As shown in the table above, total oil and gas sales decreased $371,350
(23.5%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately $112,000 and
$1,006,000, respectively, were related to decreases in the average prices
of oil and gas sold. These decreases were partially offset by increases of
approximately $43,000 and $704,000, respectively, related to increases in
volumes of oil and gas sold. Volumes of oil and gas sold increased 1,578
barrels and 114,820 Mcf, respectively, for the six months ended June 30,
2002 as compared to the six months ended June 30, 2001. The increase in
volumes of gas sold was primarily due to (i) an increase in production on
one significant well due to the successful workover of that well during
early 2002 and (ii) a positive prior period gas balancing adjustment on
another significant well during the six months ended June 30, 2002.
Average oil and gas prices decreased to $22.00 per barrel and $2.64 per
Mcf, respectively, for the six months ended June 30, 2002 from $27.56 per
barrel and $6.13 per Mcf, respectively, for the six months ended June 30,
2001.
-41-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $38,534 (12.4%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This increase
was primarily due to (i) workover expenses incurred on one significant
well during the six months ended June 30, 2002 and (ii) a positive prior
period lease operating expense adjustment on another significant well
during the six months ended June 30, 2002. These increases were partially
offset by a decrease in production taxes associated the decrease in oil
and gas sales. As a percentage of oil and gas sales, these expenses
increased to 28.9% for the six months ended June 30, 2002 from 19.7% for
the six months ended June 30, 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 $26,518 (34.6%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This increase was
primarily due to the increases in volumes of oil and gas sold. As a
percentage of oil and gas sales, this expense increased to 8.5% for the
six months ended June 30, 2002 from 4.9% for the six months ended June 30,
2001. This percentage increase was primarily due to the decreases in the
average prices of oil and gas sold.
General and administrative expenses increased $1,472 (1.6%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
7.8% for the six months ended June 30, 2002 from 5.9% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $18,834,353 or 136.15% of Limited Partners' capital
contributions.
-42-
III-C PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- ----------
Oil and gas sales $714,982 $1,239,788
Oil and gas production expenses $148,592 $ 211,072
Barrels produced 2,650 3,622
Mcf produced 219,475 252,715
Average price/Bbl $ 25.32 $ 27.16
Average price/Mcf $ 2.95 $ 4.52
As shown in the table above, total oil and gas sales decreased $524,806
(42.3%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $343,000
was related to a decrease in the average price of gas sold and (ii)
$150,000 was related to a decrease in volumes of gas sold. Volumes of oil
and gas sold decreased 972 barrels and 33,240 Mcf, respectively, for the
three months ended June 30, 2002 as compared to the three months ended
June 30, 2001. The decrease in volumes of oil sold was primarily due to
normal declines in production. The decrease in volumes of gas sold was
primarily due to (i) normal declines in production and (ii) a positive
prior period volume adjustment made by the purchaser on one significant
well during the three months ended June 30, 2001. These decreases were
partially offset by the III-C Partnership receiving an increased
percentage of sales on another significant well during the three months
ended June 30, 2002 due to gas balancing. As of the date of this Quarterly
Report, management expects the increased sales percentage due to gas
balancing to continue for the foreseeable future, thereby continuing to
contribute to an increase in volumes of gas sold for the III-C
Partnership. Average oil and gas prices decreased to $25.32 per barrel and
$2.95 per Mcf, respectively, for the three months ended June 30, 2002 from
$27.16 per barrel and $4.52 per Mcf, respectively, for the three months
ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $62,480 (29.6%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 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 decrease in
lease operating expenses associated with the decreases in volumes of oil
and gas sold. As a percentage of oil and gas sales, these expenses
increased to 20.8% for the three months ended June 30, 2002 from 17.0% for
the
-43-
three months ended June 30, 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
remained relatively constant for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. As a percentage of oil
and gas sales, this expense increased to 9.6% for the three months ended
June 30, 2002 from 5.6% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $2,281 (3.4%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
9.7% for the three months ended June 30, 2002 from 5.4% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
-------------------------
2002 2001
---------- ----------
Oil and gas sales $1,285,551 $3,225,413
Oil and gas production expenses $ 368,663 $ 510,875
Barrels produced 6,342 7,387
Mcf produced 428,726 522,488
Average price/Bbl $ 22.25 $ 27.95
Average price/Mcf $ 2.67 $ 5.78
As shown in the table above, total oil and gas sales decreased $1,939,862
(60.1%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $1,333,000
was related to a decrease in the average price of gas sold and (ii)
$542,000 was related to a decrease in volumes of gas sold. Volumes of oil
and gas sold decreased 1,045 barrels and 93,762 Mcf, respectively, for the
six months ended June 30, 2002 as compared to the six months ended June
30, 2001. The decrease in volumes of oil sold was primarily due to normal
declines in production. The decrease in volumes of gas sold was primarily
due to (i) normal declines in production and (ii) a decline in production
on one significant well following the unsuccessful recompletion attempt of
that well during mid 2001. Average oil and gas prices decreased to $22.25
per barrel and $2.67 per Mcf, respectively, for the six months ended June
30, 2002 from $27.95 per barrel and $5.78 per Mcf, respectively, for the
six months ended June 30, 2001.
-44-
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $142,212 (27.8%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This decrease
was primarily due to a decrease in production taxes associated with the
decrease in oil and gas sales, which decrease was partially offset by
workover expenses incurred on two significant wells during the six months
ended June 30, 2002. As a percentage of oil and gas sales, these expenses
increased to 28.7% for the six months ended June 30, 2002 from 15.8% for
the six months ended June 30, 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
decreased $6,504 (4.6%) for the six months ended June 30, 2002 as compared
to the six months ended June 30, 2001. As a percentage of oil and gas
sales, this expense increased to 10.6% for the six months ended June 30,
2002 from 4.4% for the six months ended June 30, 2001. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold.
General and administrative expenses increased $2,576 (1.7%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
12.0% for the six months ended June 30, 2002 from 4.7% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $25,055,795 or 102.46% of Limited Partners' capital
contributions.
III-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Oil and gas sales $525,911 $799,965
Oil and gas production expenses $166,856 $199,622
Barrels produced 5,572 6,354
Mcf produced 139,629 150,354
Average price/Bbl $ 22.87 $ 24.94
Average price/Mcf $ 2.85 $ 4.27
As shown in the table above, total oil and gas sales decreased $274,054
(34.3%) for the three months ended June 30, 2002 as compared to the three
months ended June 30,
-45-
2001. Of this decrease, approximately (i) $197,000 was related to a
decrease in the average price of gas sold and (ii) $46,000 was related to
a decrease in volumes of gas sold. Volumes of oil and gas sold decreased
782 barrels and 10,725 Mcf, respectively, for the three months ended June
30, 2002 as compared to the three months ended June 30, 2001. The decrease
in volumes of oil sold was primarily due to normal declines in production.
Average oil and gas prices decreased to $22.87 per barrel and $2.85 per
Mcf, respectively, for the three months ended June 30, 2002 from $24.94
per barrel and $4.27 per Mcf, respectively, for the three months ended
June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $32,766 (16.4%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 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 decrease in
lease operating expenses associated with the decreases in volumes of oil
and gas sold. As a percentage of oil and gas sales, these expenses
increased to 31.7% for the three months ended June 30, 2002 from 25.0% for
the three months ended June 30, 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
decreased $998 (3.3%) for the three months ended June 30, 2002 as compared
to the three months ended June 30, 2001. As a percentage of oil and gas
sales, this expense increased to 5.5% for the three months ended June 30,
2002 from 3.7% for the three months ended June 30, 2001. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold.
General and administrative expenses increased $2,603 (7.0%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
7.5% for the three months ended June 30, 2002 from 4.6% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
-46-
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
----------------------------
2002 2001
-------- ----------
Oil and gas sales $934,938 $2,077,012
Oil and gas production expenses $388,724 $ 469,685
Barrels produced 12,082 13,984
Mcf produced 268,559 305,749
Average price/Bbl $ 19.78 $ 24.31
Average price/Mcf $ 2.59 $ 5.68
As shown in the table above, total oil and gas sales decreased $1,142,074
(55.0%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $830,000
was related to a decrease in the average price of gas sold and (ii)
$211,000 was related to a decrease in volumes of gas sold. Volumes of oil
and gas sold decreased 1,902 barrels and 37,190 Mcf, respectively, for the
six months ended June 30, 2002 as compared to the six months ended June
30, 2001. The decreases in volumes of oil and gas sold were primarily due
to normal declines in production. Average oil and gas prices decreased to
$19.78 per barrel and $2.59 per Mcf, respectively, for the six months
ended June 30, 2002 from $24.31 per barrel and $5.68 per Mcf,
respectively, for the six months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $80,961 (17.2%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 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 decrease in lease operating
expenses associated with the decreases in volumes of oil and gas sold.
These decreases were partially offset by workover expenses incurred on two
significant wells during the six months ended June 30, 2002. As a
percentage of oil and gas sales, these expenses increased to 41.6% for the
six months ended June 30, 2002 from 22.6% for the six months ended June
30, 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
decreased $4,853 (7.9%) for the six months ended June 30, 2002 as compared
to the six months ended June 30, 2001. As a percentage of oil and gas
sales, this expense increased to 6.1% for the six months ended June 30,
2002 from 3.0% for the six months ended June 30, 2001. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold.
-47-
General and administrative expenses increased $1,255 (1.4%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
9.7% for the six months ended June 30, 2002 from 4.3% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $13,724,669 or 104.76% of the Limited Partners' capital
contributions.
III-E PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
---------- ----------
Oil and gas sales $1,519,382 $2,240,874
Oil and gas production expenses $ 832,796 $ 838,657
Barrels produced 34,145 39,597
Mcf produced 239,622 287,518
Average price/Bbl $ 22.67 $ 23.37
Average price/Mcf $ 3.11 $ 4.58
As shown in the table above, total oil and gas sales decreased $721,492
(32.2%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $351,000
was related to a decrease in the average price of gas sold and (ii)
$127,000 and $219,000, respectively, were related to decreases in volumes
of oil and gas sold. Volumes of oil and gas sold decreased 5,452 barrels
and 47,896 Mcf, respectively, for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. The decrease in volumes
of oil sold was primarily due to normal declines in production. The
decrease in volumes of gas sold was primarily due to (i) a positive prior
period volume adjustment made by the purchaser on one significant well
during the three months ended June 30, 2001, (ii) production difficulties
on another significant well during the three months ended June 30, 2002,
and (iii) normal declines in production. Average oil and gas prices
decreased to $22.67 per barrel and $3.11 per Mcf, respectively, for the
three months ended June 30, 2002 from $23.37 per barrel and $4.58 per Mcf,
respectively, for the three months ended June 30, 2001.
-48-
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the three months ended
June 30, 2002 and 2001. A decrease in oil and gas production expenses
primarily due to (i) a decrease in lease operating expenses associated
with the decreases in volumes of oil and gas sold and (ii) a decrease in
production taxes associated with the decrease in oil and gas sales was
significantly offset by an increase in workover expenses incurred on two
wells within the same unit during the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. As a percentage of oil
and gas sales, these expenses increased to 54.8% for the three months
ended June 30, 2002 from 37.4% for the three months ended June 30, 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
decreased $5,562 (7.9%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. As a percentage of oil
and gas sales, this expense increased to 4.2% for the three months ended
June 30, 2002 from 3.1% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $1,500 (1.3%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
7.7% for the three months ended June 30, 2002 from 5.2% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
---------------------------
2002 2001
---------- ----------
Oil and gas sales $2,898,815 $5,437,047
Oil and gas production expenses $1,696,344 $1,878,583
Barrels produced 71,745 84,288
Mcf produced 566,216 642,507
Average price/Bbl $ 19.38 $ 23.80
Average price/Mcf $ 2.66 $ 5.34
As shown in the table above, total oil and gas sales decreased $2,538,232
(46.7%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $318,000
and $1,514,000, respectively, were related to decreases in the average
-49-
prices of oil and gas sold and (ii) $299,000 and $407,000, respectively,
were related to decreases in volumes of oil and gas sold. Volumes of oil
and gas sold decreased 12,543 barrels and 76,291 Mcf, respectively, for
the six months ended June 30, 2002 as compared to the six months ended
June 30, 2001. The decrease in volumes of oil sold was primarily due to
normal declines in production. The decrease in volumes of gas sold was
primarily due to (i) production difficulties on one significant well
during the six months ended June 30, 2002, (ii) a positive prior period
volume adjustment made by the purchaser on another significant well during
the six months ended June 30, 2001, and (iii) normal declines in
production. Average oil and gas prices decreased to $19.38 per barrel and
$2.66 per Mcf, respectively, for the six months ended June 30, 2002 from
$23.80 per barrel and $5.34 per Mcf, respectively, for the six months
ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $182,239 (9.7%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This decrease
was primarily due to (i) a decrease in lease operating expenses associated
with the decreases in volumes of oil and gas sold and (ii) a decrease in
production taxes associated with the decrease in oil and gas sales. These
decreases were partially offset by an increase in workover expenses
incurred on two wells in the same unit during the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. As a
percentage of oil and gas sales, these expenses increased to 58.5% for the
six months ended June 30, 2002 from 34.6% for the six months ended June
30, 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
decreased $8,579 (5.6%) for the six months ended June 30, 2002 as compared
to the six months ended June 30, 2001. As a percentage of oil and gas
sales, this expense increased to 5.0% for the six months ended June 30,
2002 from 2.8% for the six months ended June 30, 2001. This percentage
increase was primarily due to the decreases in the average prices of oil
and gas sold.
General and administrative expenses increased $4,324 (1.7%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
8.7% for the six months ended June 30, 2002 from 4.6% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
-50-
The Limited Partners have received cash distributions through June 30,
2002 totaling $44,091,016 or 105.41% of the Limited Partners' capital
contributions.
III-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Oil and gas sales $446,409 $812,040
Oil and gas production expenses $174,455 $236,810
Barrels produced 6,113 4,987
Mcf produced 112,632 156,722
Average price/Bbl $ 23.07 $ 19.31
Average price/Mcf $ 2.71 $ 4.57
As shown in the table above, total oil and gas sales decreased $365,631
(45.0%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $209,000
was related to a decrease in the average price of gas sold and (ii)
$201,000 was related to a decrease in volumes of gas sold. Volumes of oil
sold increased 1,126 barrels, while volumes of gas sold decreased 44,090
Mcf for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. The increase in volumes of oil sold was
primarily due to a positive prior period volume adjustment made by the
operator on one significant well during the three months ended June 30,
2002. The decrease in volumes of gas sold was primarily due to (i) normal
declines in production, (ii) a positive prior period volume adjustment
made by the purchaser on one significant well during the three months
ended June 30, 2001, and (iii) a positive prior period volume adjustment
made by the operator on another significant well during the three months
ended June 30, 2001. Average oil prices increased to $23.07 per barrel for
the three months ended June 30, 2002 from $19.31 per barrel for the three
months ended June 30, 2001. Average gas prices decreased to $2.71 per Mcf
for the three months ended June 30, 2002 from $4.57 per Mcf for the three
months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $62,355 (26.3%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 2001. This
decrease was primarily due to (i) the sale of one significant well during
early 2001 and (ii) 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
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39.1% for the three months ended June 30, 2002 from 29.2% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in the average price of gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,918 (9.0%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. As a percentage of oil
and gas sales, this expense increased to 11.1% for the three months ended
June 30, 2002 from 6.7% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decrease in the average price
of gas sold.
General and administrative expenses increased $2,389 (3.9%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
14.2% for the three months ended June 30, 2002 from 7.5% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
--------------------------
2002 2001
-------- ----------
Oil and gas sales $862,581 $2,081,613
Oil and gas production expenses $295,843 $ 541,713
Barrels produced 12,552 15,028
Mcf produced 238,195 328,293
Average price/Bbl $ 20.98 $ 24.41
Average price/Mcf $ 2.52 $ 5.22
As shown in the table above, total oil and gas sales decreased $1,219,032
(58.6%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $645,000
was related to a decrease in the average price of gas sold and (ii)
$471,000 was related to a decrease in volumes of gas sold. Volumes of oil
and gas sold decreased 2,476 barrels and 90,098 Mcf, respectively, for the
six months ended June 30, 2002 as compared to the six months ended June
30, 2001. The decrease in volumes of oil sold was primarily due to the
sale of several wells during early 2001. The decrease in volumes of gas
sold was primarily due to (i) normal declines in production, (ii) a
positive prior period volume adjustment made by the purchaser on one
significant well during the six months ended June 30, 2001, and (iii) a
positive prior period volume adjustment made by the operator on another
significant well during the six months ended June 30, 2001. Average oil
and gas prices decreased to $20.98 per barrel and $2.52 per
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Mcf, respectively, during the six months ended June 30, 2002 from $24.41
per barrel and $5.22 per Mcf, respectively, for the six months ended June
30, 2001.
The III-F Partnership sold certain oil and gas properties during the six
months ended June 30, 2001 and recognized a $313,447 gain on such sales.
No such sales occurred during the six months ended June 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $245,870 (45.4%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This decrease
was primarily due to (i) the sale of one significant well during early
2001, (ii) a decrease in production taxes associated with the decrease in
oil and gas sales, and (iii) workover expenses incurred on another
significant well during the six months ended June 30, 2001. As a
percentage of oil and gas sales, these expenses increased to 34.3% for the
six months ended June 30, 2002 from 26.0% for the six months ended June
30, 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
decreased $18,073 (14.8%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This decrease was
primarily due to the decreases in volumes of oil and gas sold, which
decrease was partially offset by downward revisions in the estimates of
remaining oil and gas reserves. As a percentage of oil and gas sales, this
expense increased to 12.1% for the six months ended June 30, 2002 from
5.9% for the six months ended June 30, 2001. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold.
General and administrative expenses increased $2,409 (1.7%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
16.4% for the six months ended June 30, 2002 from 6.7% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $17,093,904 or 77.18% of the Limited Partners' capital
contributions.
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III-G PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2002 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2001.
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
Oil and gas sales $275,796 $459,884
Oil and gas production expenses $109,391 $143,650
Barrels produced 5,195 4,087
Mcf produced 59,736 82,939
Average price/Bbl $ 22.19 $ 20.43
Average price/Mcf $ 2.69 $ 4.54
As shown in the table above, total oil and gas sales decreased $184,088
(40.0%) for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. Of this decrease, approximately (i) $111,000
was related to a decrease in the average price of gas sold and (ii)
$105,000 was related to a decrease in volumes of gas sold. Volumes of oil
sold increased 1,108 barrels, while volumes of gas sold decreased 23,203
Mcf for the three months ended June 30, 2002 as compared to the three
months ended June 30, 2001. The increase in volumes of oil sold was
primarily due to a positive prior period volume adjustment made by the
operator on one significant well during the three months ended June 30,
2002. The decrease in volumes of gas sold was primarily due to (i) normal
declines in production, (ii) a positive prior period volume adjustment
made by the purchaser on one significant well during the three months
ended June 30, 2001, and (iii) a positive prior period volume adjustment
made by the operator on another significant well during the three months
ended June 30, 2001. Average oil prices increased to $22.19 per barrel for
the three months ended June 30, 2002 from $20.43 per barrel for the three
months ended June 30, 2001. Average gas prices decreased to $2.69 per Mcf
for the three months ended June 30, 2002 from $4.54 per Mcf for the three
months ended June 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $34,259 (23.8%) for the three months ended
June 30, 2002 as compared to the three months ended June 30, 2001. This
decrease was primarily due to (i) the sale of one significant well during
early 2001 and (ii) 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 39.7% for the three months ended June 30, 2002 from
31.2% for the three months ended June 30, 2001. This percentage increase
was primarily due to the decrease in the average price of gas sold.
-54-
Depreciation, depletion, and amortization of oil and gas properties
decreased $1,370 (4.6%) for the three months ended June 30, 2002 as
compared to the three months ended June 30, 2001. As a percentage of oil
and gas sales, this expense increased to 10.2% for the three months ended
June 30, 2002 from 6.4% for the three months ended June 30, 2001. This
percentage increase was primarily due to the decrease in the average price
of gas sold.
General and administrative expenses increased $2,754 (8.1%) for the three
months ended June 30, 2002 as compared to the three months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
13.3% for the three months ended June 30, 2002 from 7.4% for the three
months ended June 30, 2001. This percentage increase was primarily due to
the decrease in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2002 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2001.
Six Months Ended June 30,
--------------------------
2002 2001
-------- ----------
Oil and gas sales $520,195 $1,178,246
Oil and gas production expenses $187,655 $ 323,076
Barrels produced 10,002 11,257
Mcf produced 125,750 172,654
Average price/Bbl $ 20.60 $ 24.69
Average price/Mcf $ 2.50 $ 5.21
As shown in the table above, total oil and gas sales decreased $658,051
(55.9%) for the six months ended June 30, 2002 as compared to the six
months ended June 30, 2001. Of this decrease, approximately (i) $342,000
was related to a decrease in the average price of gas sold and (ii)
$245,000 was related to a decrease in volumes of gas sold. Volumes of oil
and gas sold decreased 1,255 barrels and 46,904 Mcf, respectively, for the
six months ended June 30, 2002 as compared to the six months ended June
30, 2001. The decrease in volumes of oil sold was primarily due to the
sale of several wells during early 2001. The decrease in volumes of gas
sold was primarily due to (i) normal declines in production, (ii) a
positive prior period volume adjustment made by the purchaser on one
significant well during the six months ended June 30, 2001, and (iii) a
positive prior period volume adjustment made by the operator on another
significant well during the six months ended June 30, 2001. Average oil
and gas prices decreased to $20.60 per barrel and $2.50 per Mcf,
respectively, during the six months ended June 30, 2002 from $24.69 per
barrel and $5.21 per Mcf, respectively, for the six months ended June 30,
2001.
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The III-G Partnership sold certain oil and gas properties during the six
months ended June 30, 2001 and recognized a $207,189 gain on such sales.
No such sales occurred during the six months ended June 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $135,421 (41.9%) for the six months ended June
30, 2002 as compared to the six months ended June 30, 2001. This decrease
was primarily due to (i) the sale of one significant well during early
2001, (ii) a decrease in production taxes associated with the decrease in
oil and gas sales, and (iii) workover expenses incurred on another
significant well during the six months ended June 30, 2001. As a
percentage of oil and gas sales, these expenses increased to 36.1% for the
six months ended June 30, 2002 from 27.4% for the six months ended June
30, 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
decreased $8,468 (12.8%) for the six months ended June 30, 2002 as
compared to the six months ended June 30, 2001. This decrease was
primarily due to the decreases in volumes of oil and gas sold, which
decrease was partially offset by downward revisions in the estimates of
remaining oil and gas reserves. As a percentage of oil and gas sales, this
expense increased to 11.1% for the six months ended June 30, 2002 from
5.6% for the six months ended June 30, 2001. This percentage increase was
primarily due to the decreases in the average prices of oil and gas sold.
General and administrative expenses increased $1,307 (1.6%) for the six
months ended June 30, 2002 as compared to the six months ended June 30,
2001. As a percentage of oil and gas sales, these expenses increased to
16.3% for the six months ended June 30, 2002 from 7.1% for the six months
ended June 30, 2001. This percentage increase was primarily due to the
decrease in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2002 totaling $9,378,287 or 76.92% of the Limited Partners' capital
contributions.
-56-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The Partnerships do not hold any market risk sensitive
instruments.
-57-
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
99.1 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the III-A Partnership.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the III-B Partnership.
99.3 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the III-C Partnership.
99.4 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the III-D Partnership.
99.5 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the III-E Partnership.
99.6 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the III-F Partnership.
99.7 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the III-G Partnership.
(b) Reports on Form 8-K.
None.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: August 13, 2002 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 13, 2002 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
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INDEX TO EXHIBITS
-----------------
Exh.
No. Exhibit
- ---- -------
99.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-A.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-B.
99.3 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-C.
99.4 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-D.
99.5 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-E.
99.6 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-F.
99.7 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-G.
-60-