SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
FIRST AMENDMENT TO
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 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
------ ------
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
Yes No X
------ ------
-1-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 832,128 $ 874,852
Accounts receivable:
Oil and gas sales 638,334 557,898
---------- ----------
Total current assets $1,470,462 $1,432,750
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,014,503 1,306,496
DEFERRED CHARGE 258,298 347,573
---------- ----------
$2,743,263 $3,086,819
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 47,550 $ 201,567
Gas imbalance payable 31,836 31,836
---------- ----------
Total current liabilities $ 79,386 $ 233,403
ACCRUED LIABILITY $ 40,963 $ 40,963
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 75,786) ($ 114,834)
Limited Partners, issued and
outstanding, 263,976 units 2,698,700 2,927,287
---------- ----------
Total Partners' capital $2,622,914 $2,812,453
---------- ----------
$2,743,263 $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 SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $1,051,646 $1,539,002
Interest income 1,888 7,058
---------- ----------
$1,053,534 $1,546,060
COSTS AND EXPENSES:
Lease operating $ 145,060 $ 41,630
Production tax 85,662 130,964
Depreciation, depletion, and
amortization of oil and gas
properties 242,320 117,351
General and administrative
(Note 2) 75,745 74,887
---------- ----------
$ 548,787 $ 364,832
---------- ----------
NET INCOME $ 504,747 $1,181,228
========== ==========
GENERAL PARTNER - NET INCOME $ 72,095 $ 127,979
========== ==========
LIMITED PARTNERS - NET INCOME $ 432,652 $1,053,249
========== ==========
NET INCOME per unit $ 1.64 $ 3.99
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
----------- ----------
REVENUES:
Oil and gas sales $3,039,666 $4,396,405
Interest income 5,542 28,744
Loss on sale of oil and gas
properties - ( 1,751)
---------- ----------
$3,045,208 $4,423,398
COSTS AND EXPENSES:
Lease operating $ 570,623 $ 342,479
Production tax 152,920 325,761
Depreciation, depletion, and
amortization of oil and gas
properties 411,376 257,307
General and administrative
(Note 2) 240,419 236,667
---------- ----------
$1,375,338 $1,162,214
---------- ----------
NET INCOME $1,669,870 $3,261,184
========== ==========
GENERAL PARTNER - NET INCOME $ 203,457 $ 346,402
========== ==========
LIMITED PARTNERS - NET INCOME $1,466,413 $2,914,782
========== ==========
NET INCOME per unit $ 5.56 $ 11.04
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,669,870 $3,261,184
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 411,376 257,307
Loss on sale of oil and gas
properties - 1,751
(Increase) decrease in accounts
receivable - oil and gas sales ( 80,436) 49,047
Decrease in deferred charge 89,275 -
Increase (decrease) in accounts
payable ( 154,017) 41,352
Decrease in accrued liability - ( 11,506)
---------- ----------
Net cash provided by operating
activities $1,936,068 $3,599,135
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 119,383) ($ 316,837)
Proceeds from the sale of oil
and gas properties - 1,082
---------- ----------
Net cash used by investing activities ($ 119,383) ($ 315,755)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,859,409) ($3,271,204)
---------- ----------
Net cash used by financing activities ($1,859,409) ($3,271,204)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 42,724) $ 12,176
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 874,852 910,878
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 832,128 $ 923,054
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 457,871 $ 494,899
Accounts receivable:
Oil and gas sales 376,099 329,826
---------- ----------
Total current assets $ 833,970 $ 824,725
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 558,837 750,031
DEFERRED CHARGE 181,064 255,990
---------- ----------
$1,573,871 $1,830,746
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 24,970 $ 123,265
Gas imbalance payable 14,325 14,325
---------- ----------
Total current liabilities $ 39,295 $ 137,590
ACCRUED LIABILITY $ 19,358 $ 19,358
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 35,902) ($ 67,276)
Limited Partners, issued and
outstanding, 138,336 units 1,551,120 1,741,074
---------- ----------
Total Partners' capital $1,515,218 $1,673,798
---------- ----------
$1,573,871 $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 SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- ---------
REVENUES:
Oil and gas sales $604,146 $955,844
Interest income 950 3,448
-------- --------
$605,096 $959,292
COSTS AND EXPENSES:
Lease operating $ 99,630 $ 17,374
Production tax 50,431 83,214
Depreciation, depletion, and
amortization of oil and gas
properties 147,244 68,566
General and administrative
(Note 2) 40,973 40,107
-------- --------
$338,278 $209,261
-------- --------
NET INCOME $266,818 $750,031
======== ========
GENERAL PARTNER - NET INCOME $ 60,494 $121,587
======== ========
LIMITED PARTNERS - NET INCOME $206,324 $628,444
======== ========
NET INCOME per unit $ 1.50 $ 4.55
======== ========
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 NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
----------- -----------
REVENUES:
Oil and gas sales $1,811,852 $2,534,900
Interest income 2,888 14,605
Loss on sale of oil and gas
properties - ( 739)
---------- ----------
$1,814,740 $2,548,766
COSTS AND EXPENSES:
Lease operating $ 390,814 $ 219,492
Production tax 108,314 191,629
Depreciation, depletion, and
amortization of oil and gas
properties 250,421 145,225
General and administrative
(Note 2) 134,989 132,651
---------- ----------
$ 884,538 $ 688,997
---------- ----------
NET INCOME $ 930,202 $1,859,769
========== ==========
GENERAL PARTNER - NET INCOME $ 174,156 $ 297,106
========== ==========
LIMITED PARTNERS - NET INCOME $ 756,046 $1,562,663
========== ==========
NET INCOME per unit $ 5.47 $ 11.30
========== ==========
UNITS OUTSTANDING 138,336 138,336
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 930,202 $1,859,769
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 250,421 145,225
Loss on sale of oil and gas
properties - 739
Increase in accounts receivable -
oil and gas sales ( 46,273) ( 11,035)
Decrease in deferred charge 74,926 -
Increase (decrease) in accounts
payable ( 98,295) 29,022
Decrease in accrued liability - ( 9,658)
---------- ----------
Net cash provided by operating
activities $1,110,981 $2,014,062
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 59,227) ($ 208,980)
Proceeds from the sale of oil and
gas properties - 778
---------- ----------
Net cash used by investing activities ($ 59,227) ( $ 208,202)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,088,782) ($1,835,239)
---------- ----------
Net cash used by financing activities ($1,088,782) ($1,835,239)
---------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 37,028) ($ 29,379)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 494,899 496,576
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 457,871 $ 467,197
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 496,252 $ 371,012
Accounts receivable:
Oil and gas sales 426,134 362,134
---------- ----------
Total current assets $ 922,386 $ 733,146
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,716,639 1,820,677
DEFERRED CHARGE 73,472 73,472
---------- ----------
$2,712,497 $2,627,295
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 105,706 $ 86,399
Gas imbalance payable 40,724 40,724
---------- ----------
Total current liabilities $ 146,430 $ 127,123
ACCRUED LIABILITY $ 168,448 $ 168,448
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 152,821) ($ 175,495)
Limited Partners, issued and
outstanding, 244,536 units 2,550,440 2,507,219
---------- ----------
Total Partners' capital $2,397,619 $2,331,724
---------- ----------
$2,712,497 $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 SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Oil and gas sales $664,913 $624,483
Interest income 1,084 6,956
-------- --------
$665,997 $631,439
COSTS AND EXPENSES:
Lease operating $106,641 $115,773
Production tax 63,173 42,548
Depreciation, depletion, and
amortization of oil and gas
properties 52,043 60,388
General and administrative
(Note 2) 69,809 68,972
-------- --------
$291,666 $287,681
-------- --------
NET INCOME $374,331 $343,758
======== ========
GENERAL PARTNER - NET INCOME $ 42,009 $ 19,255
======== ========
LIMITED PARTNERS - NET INCOME $332,322 $324,503
======== ========
NET INCOME per unit $ 1.36 $ 1.33
======== ========
UNITS OUTSTANDING 244,536 244,536
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $1,950,464 $3,849,896
Interest income 3,110 29,176
Gain (loss) on sale of oil and
gas properties 17,501 ( 606)
---------- ----------
$1,971,075 $3,878,466
COSTS AND EXPENSES:
Lease operating $ 401,527 $ 411,671
Production tax 136,950 257,525
Depreciation, depletion, and
amortization of oil and gas
properties 188,186 203,035
General and administrative
(Note 2) 223,471 220,058
---------- ----------
$ 950,134 $1,092,289
---------- ----------
NET INCOME $1,020,941 $2,786,177
========== ==========
GENERAL PARTNER - NET INCOME $ 118,720 $ 145,971
========== ==========
LIMITED PARTNERS - NET INCOME $ 902,221 $2,640,206
========== ==========
NET INCOME per unit $ 3.69 $ 10.80
========== ==========
UNITS OUTSTANDING 244,536 244,536
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,020,941 $2,786,177
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 188,186 203,035
(Gain) loss on sale of oil and gas
properties ( 17,501) 606
(Increase) decrease in accounts
receivable - oil and gas sales ( 64,000) 424,796
Decrease in deferred charge - 7,291
Increase (decrease) in accounts
payable 19,307 ( 29,603)
Increase in accrued liability - 13,092
---------- ----------
Net cash provided by operating
activities $1,146,933 $3,405,394
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 85,587) ($ 123,213)
Proceeds from sale of oil and gas
properties 18,940 -
---------- ----------
Net cash used by investing activities ($ 66,647) ($ 123,213)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 955,046) ($3,526,692)
---------- ----------
Net cash used by financing activities ($ 955,046) ($3,526,692)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 125,240 ($ 244,511)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 371,012 903,268
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 496,252 $ 658,757
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 297,785 $ 160,008
Accounts receivable:
Oil and gas sales 299,910 250,386
---------- ----------
Total current assets $ 597,695 $ 410,394
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 755,674 735,922
DEFERRED CHARGE 11,614 11,614
---------- ----------
$1,364,983 $1,157,930
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 125,511 $ 147,868
---------- ----------
Total current liabilities $ 125,511 $ 147,868
ACCRUED LIABILITY $ 210,194 $ 210,194
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 52,537) ($ 72,956)
Limited Partners, issued and
outstanding, 131,008 units 1,081,815 872,824
---------- ----------
Total Partners' capital $1,029,278 $ 799,868
---------- ----------
$1,364,983 $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 SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- --------
REVENUES:
Oil and gas sales $447,909 $458,986
Interest income 580 4,502
-------- --------
$448,489 $463,488
COSTS AND EXPENSES:
Lease operating $145,575 $102,797
Production tax 32,635 31,395
Depreciation, depletion, and
amortization of oil and gas
properties 36,541 27,462
General and administrative
(Note 2) 38,398 37,553
-------- --------
$253,149 $199,207
-------- --------
NET INCOME $195,340 $264,281
======== ========
GENERAL PARTNER - NET INCOME $ 22,764 $ 28,449
======== ========
LIMITED PARTNERS - NET INCOME $172,576 $235,832
======== ========
NET INCOME per unit $ 1.32 $ 1.80
======== ========
UNITS OUTSTANDING 131,008 131,008
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- -----------
REVENUES:
Oil and gas sales $1,382,847 $2,535,998
Interest income 1,341 18,665
Gain (loss) on sale of oil and gas
properties 15,250 ( 52)
---------- ----------
$1,399,438 $2,554,611
COSTS AND EXPENSES:
Lease operating $ 467,780 $ 431,529
Production tax 99,154 172,348
Depreciation, depletion, and
amortization of oil and gas
properties 93,383 89,157
General and administrative
(Note 2) 128,831 126,731
---------- ----------
$ 789,148 $ 819,765
---------- ----------
NET INCOME $ 610,290 $1,734,846
========== ==========
GENERAL PARTNER - NET INCOME $ 69,299 $ 103,737
========== ==========
LIMITED PARTNERS - NET INCOME $ 540,991 $1,631,109
========== ==========
NET INCOME per unit $ 4.13 $ 12.45
========== ==========
UNITS OUTSTANDING 131,008 131,008
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $610,290 $1,734,846
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 93,383 89,157
(Gain) loss on sale of oil and gas
properties ( 15,250) 52
(Increase) decrease in accounts
receivable - oil and gas sales ( 49,524) 273,520
Decrease in deferred charge - 3,233
Decrease in accounts payable ( 22,357) ( 23,720)
Increase in accrued liability - 18,953
-------- ----------
Net cash provided by operating
activities $616,542 $2,096,041
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($114,166) ($ 14,425)
Proceeds from the sale of oil and
gas properties 16,281 -
-------- ----------
Net cash used by investing activities ($ 97,885) ($ 14,425)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($380,880) ($2,227,130)
-------- ----------
Net cash used by financing activities ($380,880) ($2,227,130)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $137,777 ($ 145,514)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 160,008 561,839
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $297,785 $ 416,325
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 676,038 $ 440,024
Accounts receivable:
Oil and gas sales 877,229 687,090
---------- ----------
Total current assets $1,553,267 $1,127,114
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,704,879 2,553,810
DEFERRED CHARGE 87,712 87,712
---------- ----------
$4,345,858 $3,768,636
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 611,556 $ 773,007
Gas imbalance payable 4,991 4,991
---------- ----------
Total current liabilities $ 616,547 $ 777,998
ACCRUED LIABILITY $ 317,221 $ 317,221
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 229,942) ($ 286,758)
Limited Partners, issued and
outstanding, 418,266 units 3,642,032 2,960,175
---------- ----------
Total Partners' capital $3,412,090 $2,673,417
---------- ----------
$4,345,858 $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 SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $1,185,582 $1,551,403
Interest income 765 11,436
Gain on sale of oil and gas
properties - 34,153
---------- ----------
$1,186,347 $1,596,992
COSTS AND EXPENSES:
Lease operating $ 782,879 $ 414,486
Production tax 66,084 106,503
Depreciation, depletion, and
amortization of oil and gas
properties 114,801 66,772
General and administrative
(Note 2) 118,351 117,505
---------- ----------
$1,082,115 $ 705,266
---------- ----------
NET INCOME $ 104,232 $ 891,726
========== ==========
GENERAL PARTNER - NET INCOME $ 20,679 $ 94,038
========== ==========
LIMITED PARTNERS - NET INCOME $ 83,553 $ 797,688
========== ==========
NET INCOME per unit $ .20 $ 1.90
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ----------
REVENUES:
Oil and gas sales $4,084,397 $6,988,450
Interest income 1,681 49,267
Gain on sale of oil and gas
properties - 34,724
---------- ----------
$4,086,078 $7,072,441
COSTS AND EXPENSES:
Lease operating $2,296,190 $1,952,172
Production tax 249,117 447,400
Depreciation, depletion, and
amortization of oil and gas
properties 259,320 219,870
General and administrative
(Note 2) 371,420 366,250
---------- ----------
$3,176,047 $2,985,692
---------- ----------
NET INCOME $ 910,031 $4,086,749
========== ==========
GENERAL PARTNER - NET INCOME $ 114,174 $ 258,022
========== ==========
LIMITED PARTNERS - NET INCOME $ 795,857 $3,828,727
========== ==========
NET INCOME per unit $ 1.90 $ 9.15
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $910,031 $4,086,749
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 259,320 219,870
Gain on sale of oil and gas
properties - ( 34,724)
(Increase) decrease in accounts
receivable - oil and gas sales ( 190,139) 830,809
Decrease in deferred charge - 15,262
Decrease in accounts payable ( 161,451) ( 163,234)
Decrease in accrued liability - ( 170,830)
-------- ----------
Net cash provided by operating
activities $817,761 $4,783,902
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($411,763) $ -
Proceeds from sale of oil and gas
properties 1,374 76,783
-------- ----------
Net cash provided (used) by investing
activities ($410,389) $ 76,783
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($171,358) ($5,530,174)
-------- ----------
Net cash used by financing activities ($171,358) ($5,530,174)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $236,014 ($ 669,489)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 440,024 1,627,830
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $676,038 $ 958,341
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 234,207 $ 144,433
Accounts receivable:
Oil and gas sales 266,194 239,821
---------- ----------
Total current assets $ 500,401 $ 384,254
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,812,463 1,948,551
DEFERRED CHARGE 37,001 37,001
---------- ----------
$2,349,865 $2,369,806
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 111,677 $ 58,774
Gas imbalance payable 2,295 2,295
---------- ----------
Total current liabilities $ 113,972 $ 61,069
ACCRUED LIABILITY $ 111,171 $ 111,171
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 158,836) ($ 161,655)
Limited Partners, issued and
outstanding, 221,484 units 2,283,558 2,359,221
---------- ----------
Total Partners' capital $2,124,722 $2,197,566
---------- ----------
$2,349,865 $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 SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ---------
REVENUES:
Oil and gas sales $371,424 $497,289
Interest income 368 5,632
-------- --------
$371,792 $502,921
COSTS AND EXPENSES:
Lease operating $132,369 $144,033
Production tax 14,456 30,385
Depreciation, depletion, and
amortization of oil and gas
properties 73,126 52,966
General and administrative
(Note 2) 63,528 62,685
-------- --------
$283,479 $290,069
-------- --------
NET INCOME $ 88,313 $212,852
======== ========
GENERAL PARTNER - NET INCOME $ 7,323 $ 12,479
======== ========
LIMITED PARTNERS - NET INCOME $ 80,990 $200,373
======== ========
NET INCOME per unit $ 0.36 $ 0.90
======== ========
UNITS OUTSTANDING 221,484 221,484
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
----------- -----------
REVENUES:
Oil and gas sales $1,234,005 $2,578,902
Interest income 1,291 27,090
Gain on sale of oil and
gas properties - 313,447
---------- ----------
$1,235,296 $2,919,439
COSTS AND EXPENSES:
Lease operating $ 385,552 $ 567,256
Production tax 57,116 148,875
Depreciation, depletion, and
amortization of oil and gas
properties 177,105 175,018
General and administrative
(Note 2) 204,621 201,369
---------- ----------
$ 824,394 $1,092,518
---------- ----------
NET INCOME $ 410,902 $1,826,921
========== ==========
GENERAL PARTNER - NET INCOME $ 27,565 $ 96,992
========== ==========
LIMITED PARTNERS - NET INCOME $ 383,337 $1,729,929
========== ==========
NET INCOME per unit $ 1.73 $ 7.81
========== ==========
UNITS OUTSTANDING 221,484 221,484
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $410,902 $1,826,921
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 177,105 175,018
Gain on sale of oil and gas
properties - ( 313,447)
(Increase) decrease in accounts
receivable - oil and gas sales ( 26,373) 360,238
Decrease in deferred charge - 7,183
Increase (decrease) in accounts
payable 52,903 ( 10,062)
-------- ----------
Net cash provided by operating
activities $614,537 $2,045,851
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 42,290) $ -
Proceeds from the sale of oil
and gas properties 1,273 350,855
-------- ----------
Net cash provided (used) by investing
activities ($ 41,017) $ 350,855
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($483,746) ($2,776,076)
-------- ----------
Net cash used by financing activities ($483,746) ($2,776,076)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 89,744 ($ 379,370)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 144,433 754,880
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $234,207 $ 375,510
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 157,728 $ 100,271
Accounts receivable:
Oil and gas sales 166,684 146,838
---------- ----------
Total current assets $ 324,412 $ 247,109
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 991,110 1,064,542
DEFERRED CHARGE 24,379 24,379
---------- ----------
$1,339,901 $1,336,030
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 67,144 $ 43,676
---------- ----------
Total current liabilities $ 67,144 $ 43,676
ACCRUED LIABILITY $ 68,289 $ 68,289
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 91,608) ($ 93,950)
Limited Partners, issued and
outstanding, 121,925 units 1,296,076 1,318,015
---------- ----------
Total Partners' capital $1,204,468 $1,224,065
---------- ----------
$1,339,901 $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 SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- ---------
REVENUES:
Oil and gas sales $241,564 $294,441
Interest income 249 3,203
-------- --------
$241,813 $297,644
COSTS AND EXPENSES:
Lease operating $ 80,894 $ 94,713
Production tax 9,282 18,340
Depreciation, depletion, and
amortization of oil and gas
properties 37,412 28,453
General and administrative
(Note 2) 35,565 34,736
-------- --------
$163,153 $176,242
-------- --------
NET INCOME $ 78,660 $121,402
======== ========
GENERAL PARTNER - NET INCOME $ 5,417 $ 7,048
======== ========
LIMITED PARTNERS - NET INCOME $ 73,243 $114,354
======== ========
NET INCOME per unit $ .60 $ 0.94
======== ========
UNITS OUTSTANDING 121,925 121,925
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- -----------
REVENUES:
Oil and gas sales $761,759 $1,472,687
Interest income 717 15,778
Gain on sale of oil and gas
properties - 207,189
-------- ----------
$762,476 $1,695,654
COSTS AND EXPENSES:
Lease operating $243,508 $ 351,599
Production tax 34,323 84,530
Depreciation, depletion, and
amortization of oil and gas
properties 94,998 94,507
General and administrative
(Note 2) 120,357 118,221
-------- ----------
$493,186 $ 648,857
-------- ----------
NET INCOME $269,290 $1,046,797
======== ==========
GENERAL PARTNER - NET INCOME $ 17,229 $ 55,331
======== ==========
LIMITED PARTNERS - NET INCOME $252,061 $ 991,466
======== ==========
NET INCOME per unit $ 2.07 $ 8.13
======== ==========
UNITS OUTSTANDING 121,925 121,925
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-G
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $269,290 $1,046,797
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 94,998 94,507
Gain on sale of oil and gas
properties - ( 207,189)
(Increase) decrease in accounts
receivable - oil and gas sales ( 19,846) 206,543
Decrease in deferred charge - 4,464
Increase (decrease) in accounts
payable 23,468 ( 6,275)
-------- ----------
Net cash provided by operating
activities $367,910 $1,138,847
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 22,042) $ -
Proceeds from the sale of oil and
gas properties 476 212,920
-------- ----------
Net cash provided (used) by
investing activities ($ 21,566) $ 212,920
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($288,887) ($1,580,429)
-------- ----------
Net cash used by financing activities ($288,887) ($1,580,429)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 57,457 ($ 228,662)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 100,271 434,158
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $157,728 $ 205,496
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-29-
GEODYNE ENERGY INCOME PROGRAM III LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 2002, statements of operations for
the three and nine months ended September 30, 2002 and 2001, and
statements of cash flows for the nine months ended September 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 September 30, 2002, the results
of operations for the three and nine months ended September 30, 2002 and
2001, and the cash flows for the nine months ended September 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 September 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
-30-
acquisition, for the period of time the properties are held by the General
Partner prior to their transfer to the Partnerships. Leasehold impairment
is recognized based upon an individual property assessment and exploratory
experience. Upon discovery of commercial reserves, leasehold costs are
transferred to producing properties.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs, net of estimated
salvage value.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss reflected in income. When less than complete units of depreciable
property are retired or sold, the proceeds are credited to oil and gas
properties.
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 September 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 $ 6,277 $ 69,468
III-B 4,568 36,405
III-C 5,456 64,353
III-D 3,922 34,476
III-E 8,281 110,070
III-F 5,244 58,284
III-G 3,480 32,085
-31-
During the nine months ended September 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 $ 32,015 $208,404
III-B 25,774 109,215
III-C 30,412 193,059
III-D 25,403 103,428
III-E 41,210 330,210
III-F 29,769 174,852
III-G 24,102 96,255
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
-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 September 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 nine
months ended September 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
may reduce or eliminate cash available for a particular quarterly cash
distribution. During the nine months ended September 30, 2002, capital
expenditures for the III-D and III-E Partnerships totaled $114,166 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. In
-34-
addition, during the nine months ended September 30, 2002, capital
expenditures for the III-F Partnership totaled $42,290. These expenditures
were primarily due to a recompletion of the Exxon Fee #1-D well located in
Terrebonne Parish, Louisiana, in which the Partnership owns a working
interest of approximately 3.7%.
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, III-C,
III-D, and III-E Partnerships for the second two-year extension period and
the 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 2 September 5, 2004
III-E December 26, 2000 2 December 26, 2004
III-F March 7, 2001 1 March 7, 2003
III-G September 20, 2001 1 September 20, 2003
The General Partner currently 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 which the
liabilities are incurred (at the time the wells
-35-
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 primary source of liquidity and Partnership cash distributions comes
from the net revenues generated from the sale of oil and gas produced from
the Partnerships' oil and gas properties. The level of net revenues is
highly dependent upon the total volumes of oil and natural gas sold. Oil
and gas reserves are depleting assets and will experience production
declines over time, thereby likely resulting in reduced net revenues.
The level of net revenues is also highly dependent upon the prices
received for oil and gas sales, which prices have historically been very
volatile and may continue to be so. Additionally, lower oil and natural
gas prices may reduce the amount of oil and gas that is economic to
produce and reduce the Partnerships' revenues and cash flow. Various
factors beyond the Partnerships' control will affect prices for oil and
natural gas, such as:
* The worldwide and domestic supplies of oil and natural gas;
* The ability of the members of the Organization of Petroleum
Exporting Countries ("OPEC") to agree to and maintain oil prices
and production quotas;
* Political instability or armed conflict in oil-producing regions
or around major shipping areas;
* The level of consumer demand and overall economic activity;
* The competitiveness of alternative fuels;
-36-
* Weather conditions;
* The availability of pipelines for transportation; and
* Domestic and foreign government regulations and taxes.
Recently, while economic factors have been relatively unfavorable for oil
and natural gas demand, oil prices have benefited from the political
uncertainty associated with the increase in terrorist activities in parts
of the world. In the last few years, natural gas prices have varied
significantly, from very high prices in late 2000 and early 2001, to low
prices in late 2001 and early 2002, to rising prices in the later part of
2002. The high natural gas prices were associated with cold winter weather
and decreased supply from reduced capital investment for new drilling,
while the low prices were associated with warm winter weather and reduced
economic activity. The more recent increase in prices is the result of
increased demand from weather patterns, the pricing effect of relatively
high oil prices and increased concern about the ability of the industry to
meet any longer-term demand increases based upon current drilling
activity. It is not possible to predict the future direction of oil or
natural gas prices or whether the above discussed trends will remain.
Operating costs, including General and Administrative Expenses, may not
decline over time or may experience only a gradual decline, thus adversely
affecting net revenues as either production or oil and natural gas prices
decline. In any particular period, net revenues may also be affected by
either the receipt of proceeds from property sales or the incursion of
additional costs as a result of well workovers, recompletions, new well
drilling, and other events.
PROVED RESERVES AND NET PRESENT VALUE
- -------------------------------------
The process of estimating oil and gas reserves is complex, requiring
significant subjective decisions in the evaluation of available
geological, engineering, and economic data for each reservoir. The data
for a given reservoir may change substantially over time as a result of,
among other things, additional development activity, production history,
and viability of production under varying economic conditions;
consequently, it is reasonably possible that material revisions to
existing reserve estimates may occur in the future. Although every
reasonable effort has been made to ensure that these reserve estimates
represent the most accurate assessment possible, the significance of the
subjective decisions required and variances in available data for various
reservoirs make these estimates generally less precise than other
estimates presented in connection with financial statement disclosures.
-37-
The following tables summarize changes in net quantities of the
Partnerships' proved reserves, all of which are located in the United
States, for the periods indicated. The proved reserves were estimated by
petroleum engineers employed by affiliates of the Partnerships, and are
annually reviewed by an independent engineering firm. "Proved reserves"
refers to those estimated quantities of crude oil, gas, and gas liquids
which geological and engineering data demonstrate with reasonable
certainty to be recoverable in future years from known oil and gas
reservoirs under existing economic and operating conditions. The following
information includes certain gas balancing adjustments which cause the gas
volume to differ from the reserve reports prepared by the General Partner.
III-A Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2001 191,786 4,021,761
Production ( 42,011) ( 771,150)
Extensions and discoveries 981 24,661
Revisions of previous
estimates ( 82,946) 577,721
-------- ---------
Proved reserves, Sept. 30, 2002 67,810 3,852,993
======= =========
III-B Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2001 134,902 1,851,831
Production ( 30,381) ( 422,121)
Extensions and discoveries 647 16,266
Revisions of previous
estimates ( 54,277) 263,728
------- ---------
Proved reserves, Sept. 30, 2002 50,891 1,709,704
======= =========
-38-
III-C Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2001 85,153 5,132,032
Production ( 9,026) ( 637,144)
Sale of minerals in place ( 107) ( 13,590)
Extensions and discoveries 14,488 25,694
Revisions of previous
estimates 7,893 353,477
------- ---------
Proved reserves, Sept. 30, 2002 98,401 4,860,469
======= =========
III-D Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2001 197,373 2,948,537
Production ( 17,127) ( 389,844)
Sale of minerals in place ( 90) ( 11,178)
Extensions and discoveries 72,663 13,427
Revisions of previous
estimates ( 2,116) 60,063
------- ---------
Proved reserves, Sept. 30, 2002 250,703 2,621,005
======= =========
-39-
III-E Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
----------- ------------
Proved reserves, Dec. 31, 2001 1,125,061 8,834,436
Production ( 100,957) ( 769,051)
Extensions and discoveries 435,595 176
Revisions of previous
estimates ( 40,597) ( 918,639)
--------- ---------
Proved reserves, Sept. 30, 2002 1,419,102 7,146,922
========= =========
III-F Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2001 214,415 4,615,852
Production ( 18,000) ( 354,147)
Extensions and discoveries 53 152
Revisions of previous
estimates 25,776 219,080
------- ---------
Proved reserves, Sept. 30, 2002 222,244 4,480,937
======= =========
-40-
III-G Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2001 181,964 2,481,383
Production ( 14,268) ( 187,256)
Extensions and discoveries 616 72
Revisions of previous
estimates 18,418 115,926
------- ---------
Proved reserves, Sept. 30, 2002 186,730 2,410,125
======= =========
In addition to the volume changes, the net present value of the
Partnerships' reserves may change dramatically as oil and gas prices
change or as volumes change for the reasons described above. Net present
value represents estimated future gross cash flow from the production and
sale of proved reserves, net of estimated oil and gas production costs
(including production taxes, ad valorem taxes, and operating expenses) and
estimated future development costs, discounted at 10% per annum.
The following table indicates the estimated net present value of the
Partnerships' proved reserves as of December 31, 2001 and September 30,
2002. Net present value attributable to the Partnerships' proved reserves
was calculated on the basis of current costs and prices as of the date of
estimation. Such prices were $16.75 per barrel and $2.65 per Mcf as of
December 31, 2001 and $27.25 per barrel and $3.76 per Mcf as of September
30, 2002. Such prices were not escalated except in certain circumstances
where escalations were fixed and readily determinable in accordance with
applicable contract provisions. The prices used in calculating the net
present value attributable to the Partnerships' proved reserves do not
necessarily reflect market prices for oil and gas production subsequent to
the date the net present value was estimated. There can be no assurance
that the prices used in calculating the net present value of the
Partnerships' proved reserves will actually be realized for such
production.
-41-
Net Present Value of Reserves
----------------------------------
Partnership 12/31/01 9/30/02
----------- ---------- ------------
III-A $7,359,380 $ 8,538,912
III-B $4,018,544 $ 4,246,910
III-C $5,806,578 $ 9,085,985
III-D $3,441,581 $ 5,456,343
III-E $9,759,825 $14,812,767
III-F $4,841,085 $ 7,701,074
III-G $2,809,904 $ 4,592,936
The III-A and III-B Partnerships have interests in several wells located
in the Jennings Townsite Field, Jefferson Davis Parish, Louisiana.
Recompletion and well workover activities in 2001 led to significant
increases in oil production from the wells. Recent production information,
however, indicates that the wells are experiencing a steeper than expected
decline in production. Thus, the estimated oil reserves and net present
value for these wells as of September 30, 2002 are less than such
estimates as of December 31, 2001 which were included in the Partnerships'
Annual Report on Form 10-K for the year ended December 31, 2001.
In addition, a material oil and gas property for the III-D and III-E
Partnerships is the Jay-Little Escambia Creek Field Unit located in Santa
Rosa County, Florida. The property, consisting of several producing wells,
several nitrogen gas injection wells (to stimulate production), and a gas
plant, is operated by Exxon-Mobil. In late 2001 and in 2002, the property
experienced mechanical difficulties, primarily associated with the
nitrogen injection system. Also, an unsuccessful directionally drilled
well was undertaken. As a consequence, expenses on the property have been
higher, which resulted in the estimated gas reserves for this field as of
September 30, 2002 to be less than such estimates as of December 31, 2001,
which was included in the Partnerships' Annual Report on Form 10-K for the
year ended December 31, 2001.
-42-
III-A PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2001.
Three Months Ended September 30,
--------------------------------
2002 2001
---------- ----------
Oil and gas sales $1,051,646 $1,539,002
Oil and gas production expenses $ 230,722 $ 172,594
Barrels produced 14,389 35,632
Mcf produced 251,519 207,828
Average price/Bbl $ 26.65 $ 25.46
Average price/Mcf $ 2.66 $ 3.04
As shown in the table above, total oil and gas sales decreased $487,356
(31.7%) for the three months ended September 30, 2002 as compared to the
three months ended September 30, 2001. Of this decrease, approximately (i)
$541,000 was related to a decrease in volumes of oil sold and (ii) $96,000
was related to a decrease in the average price of gas sold. These
decreases were partially offset by an increase of approximately $133,000
related to an increase in volumes of gas sold. Volumes of oil sold
decreased 21,243 barrels, while volumes of gas sold increased 43,691 Mcf
for the three months ended September 30, 2002 as compared to the three
months ended September 30, 2001. The decrease in volumes of oil sold was
primarily due to (i) a decline in production on several wells following
the successful recompletions of those wells during mid 2001, (ii) a
positive prior period volume adjustment made by the purchaser on one
significant well during the three months ended September 30, 2001, and
(iii) normal declines in production. The increase in volumes of gas sold
was primarily due to (i) a positive prior period gas balancing adjustment
on one significant well during the three months ended September 30, 2002
and (ii) an increase in production on another significant well due to the
successful workover of that well during early 2002. These increases were
partially offset by a decline in production on several wells following the
successful recompletions of those wells during mid 2001. Average oil
prices increased to $26.65 per barrel for the three months ended September
30, 2002 from $25.46 per barrel for the three months ended September 30,
2001. Average gas prices decreased to $2.66 per Mcf for the three months
ended September 30, 2002 from $3.04 per Mcf for the three months ended
September 30, 2001.
-43-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $58,128 (33.7%) for the three months ended
September 30, 2002 as compared to the three months ended September 30,
2001. This increase was primarily due to (i) a positive prior period lease
operating expense adjustment on one significant well during the three
months ended September 30, 2002 and (ii) an increase in workover expenses
incurred on another significant well during the three months ended
September 30, 2002 as compared to the three months ended September 30,
2001. These increases were partially offset by (i) a negative prior period
lease operating environmental expense adjustment on one significant well
due to the receipt of insurance proceeds during the three months ended
September 30, 2002 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 21.9% for the three months ended September 30,
2002 from 11.2% for the three months ended September 30, 2001. This
percentage increase was primarily due to the dollar increase in oil and
gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $124,969 (106.5%) for the three months ended September 30, 2002
as compared to the three months ended September 30, 2001. This increase
was primarily due to (i) an increase in depletable oil and gas properties
primarily due to drilling activities on several wells during the three
months ended September 30, 2002 and (ii) downward revisions in the
estimates of remaining oil reserves at September 30, 2002. As a percentage
of oil and gas sales, this expense increased to 23.0% for the three months
ended September 30, 2002 from 7.6% for the three months ended September
30, 2001. This percentage increase was primarily due to the dollar
increase in depreciation, depletion and amortization.
General and administrative expenses increased $858 (1.1%) for the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 7.2% for the three months ended September 30, 2002 from 4.9%
for the three months ended September 30, 2001. This percentage increase
was primarily due to the decrease in oil and gas sales.
-44-
NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2001.
Nine Months Ended September 30,
-------------------------------
2002 2001
---------- ----------
Oil and gas sales $3,039,666 $4,396,405
Oil and gas production expenses $ 723,543 $ 668,240
Barrels produced 42,011 59,833
Mcf produced 771,150 565,456
Average price/Bbl $ 23.42 $ 26.27
Average price/Mcf $ 2.67 $ 5.00
As shown in the table above, total oil and gas sales decreased $1,356,739
(30.9%) for the nine months ended September 30, 2002 as compared to the
nine months ended September 30, 2001. Of this decrease, approximately (i)
$1,796,000 was related to a decrease in the average price of gas sold and
(ii) $468,000 was related to a decrease in volumes of oil sold, which
decreases were partially offset by an increase of approximately $1,028,000
related to an increase in volumes of gas sold. Volumes of oil sold
decreased 17,822 barrels, while volumes of gas sold increased 205,694 Mcf
for the nine months ended September 30, 2002 as compared to the nine
months ended September 30, 2001. The decrease in volumes of oil sold was
primarily due to (i) a decline in production on several wells following
the successful recompletions of those wells during mid 2001 and (ii)
normal declines in production. These decreases were partially offset by 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) positive prior period gas balancing adjustments on two
significant wells during the nine months ended September 30, 2002. Average
oil and gas prices decreased to $23.42 per barrel and $2.67 per Mcf,
respectively, for the nine months ended September 30, 2002 from $26.27 per
barrel and $5.00 per Mcf, respectively, for the nine months ended
September 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $55,303 (8.3%) for the nine months ended
September 30, 2002 as compared to the nine months ended September 30,
2001. This increase was primarily due to (i) positive prior period lease
operating expense adjustments on two significant wells during the nine
months ended September 30, 2002, (ii) an increase in workover expenses
incurred on another significant well during the nine months ended
September 30, 2002 as compared to the nine months ended September 30,
2001, and (iii)
-45-
workover expenses incurred on one significant well during the nine months
ended September 30, 2002. These increases were partially offset by a
decrease in production taxes associated with the decrease in oil and gas
sales. As a percentage of oil and gas sales, these expenses increased to
23.8% for the nine months ended September 30, 2002 from 15.2% for the nine
months ended September 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 $154,069 (59.9%) for the nine months ended September 30, 2002 as
compared to the nine months ended September 30, 2001. This increase was
primarily due to (i) an increase in depletable oil and gas properties
primarily due to drilling activities on several wells during the nine
months ended September 30, 2002 and (ii) downward revisions in the
estimates of remaining oil reserves at September 30, 2002. As a percentage
of oil and gas sales, this expense increased to 13.5% for the nine months
ended September 30, 2002 from 5.9% for the nine months ended September 30,
2001. This percentage increase was primarily due to the (i) decreases in
the average prices of oil and gas sold and (ii) the dollar increase in
depreciation, depletion, and amortization.
General and administrative expenses increased $3,752 (1.6%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 7.9% for the nine months ended September 30, 2002 from 5.4%
for the nine months ended September 30, 2001. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2002 totaling $33,298,701 or 126.14% of Limited Partners' capital
contributions.
-46-
III-B PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2001.
Three Months Ended September 30,
--------------------------------
2002 2001
-------- --------
Oil and gas sales $604,146 $955,844
Oil and gas production expenses $150,061 $100,588
Barrels produced 10,164 24,617
Mcf produced 133,451 107,825
Average price/Bbl $ 26.59 $ 25.47
Average price/Mcf $ 2.50 $ 3.05
As shown in the table above, total oil and gas sales decreased $351,698
(36.8%) for the three months ended September 30, 2002 as compared to the
three months ended September 30, 2001. Of this decrease, approximately (i)
$368,000 was related to a decrease in volumes of oil sold and (ii) $73,000
was related to a decrease in the average price of gas sold. These
decreases were partially offset by an increase of approximately $78,000
related to an increase in volumes of gas sold. Volumes of oil sold
decreased 14,453 barrels, while volumes of gas sold increased 25,626 Mcf
for the three months ended September 30, 2002 as compared to the three
months ended September 30, 2001. The decrease in volumes of oil sold was
primarily due to (i) a decline in production on several wells following
the successful recompletions of those wells during mid 2001 and (ii)
normal declines in production. The increase in volumes of gas sold was
primarily due to (i) a positive prior period gas balancing adjustment on
one significant well during the three months ended September 30, 2002 and
(ii) an increase in production on another significant well due to the
successful workover of that well during early 2002. These increases were
partially offset by a decline in production on several wells following the
successful recompletions of those wells during mid 2001. Average oil
prices increased to $26.59 per barrel for the three months ended September
30, 2002 from $25.47 per barrel for the three months ended September 30,
2001. Average gas prices decreased to $2.50 per Mcf for the three months
ended September 30, 2002 from $3.05 per Mcf for the three months ended
September 30, 2001.
-47-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $49,473 (49.2%) for the three months ended
September 30, 2002 as compared to the three months ended September 30,
2001. This increase was primarily due to (i) a positive prior period lease
operating expense adjustment on one significant well during the three
months ended September 30, 2002 and (ii) an increase in workover expenses
incurred on another significant well during the three months ended
September 30, 2002 as compared to the three months ended September 30,
2001. These increases were partially offset by (i) a negative prior period
lease operating environmental expense adjustment on one significant well
due to the receipt of insurance proceeds during the three months ended
September 30, 2002 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 24.8% for the three months ended September 30,
2002 from 10.5% for the three months ended September 30, 2001. This
percentage increase was primarily due to the dollar increase in oil and
gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $78,678 (114.7%) for the three months ended September 30, 2002
as compared to the three months ended September 30, 2001. This increase
was primarily due to (i) an increase in depletable oil and gas properties
primarily due to drilling activities on several wells during the three
months ended September 30, 2002 and (ii) downward revisions in the
estimates of remaining oil reserves at September 30, 2002. As a percentage
of oil and gas sales, this expense increased to 24.4% for the three months
ended September 30, 2002 from 7.2% for the three months ended September
30, 2001. This percentage increase was primarily due to the dollar
increase in depreciation, depletion, and amortization.
General and administrative expenses increased $866 (2.2%) for the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 6.8% for the three months ended September 30, 2002 from 4.2%
for the three months ended September 30, 2001. This percentage increase
was primarily due to the decrease in oil and gas sales.
-48-
NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2001.
Nine Months Ended September 30,
-------------------------------
2002 2001
---------- ----------
Oil and gas sales $1,811,852 $2,534,900
Oil and gas production expenses $ 499,128 $ 411,121
Barrels produced 30,381 43,256
Mcf produced 422,121 281,675
Average price/Bbl $ 23.54 $ 26.37
Average price/Mcf $ 2.60 $ 4.95
As shown in the table above, total oil and gas sales decreased $723,048
(28.5%) for the nine months ended September 30, 2002 as compared to the
nine months ended September 30, 2001. Of this decrease, approximately (i)
$86,000 and $992,000, respectively, were related to decreases in the
average prices of oil and gas sold and (ii) $340,000 was related to a
decrease in volumes of oil sold. These decreases were partially offset by
an increase of approximately $695,000 related to an increase in volumes of
gas sold. Volumes of oil sold decreased 12,875 barrels, while volumes of
gas sold increased 140,446 Mcf for the nine months ended September 30,
2002 as compared to the nine months ended September 30, 2001. The decrease
in volumes of oil sold was primarily due to (i) a decline in production on
several wells following the successful recompletions of those wells during
mid 2001 and (ii) normal declines in production. These decreases were
partially offset by 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) positive prior period gas balancing
adjustments on two significant wells during the nine months ended
September 30, 2002. Average oil and gas prices decreased to $23.54 per
barrel and $2.60 per Mcf, respectively, for the nine months ended
September 30, 2002 from $26.37 per barrel and $4.95 per Mcf, respectively,
for the nine months ended September 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $88,007 (21.4%) for the nine months ended
September 30, 2002 as compared to the nine months ended September 30,
2001. This increase was primarily due to (i) positive prior period lease
operating expense adjustments on two significant wells during the nine
months ended September 30, 2002, (ii) an increase in workover expenses
incurred on one significant well during the nine months ended September
30, 2002 as compared to the
-49-
nine months ended September 30, 2001, and (iii) workover expenses incurred
on two wells within the same unit during the nine months ended September
30, 2002. These increases were partially offset by a decrease in
production taxes associated with the decrease in oil and gas sales. As a
percentage of oil and gas sales, these expenses increased to 27.5% for the
nine months ended September 30, 2002 from 16.2% for the nine months ended
September 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 $105,196 (72.4%) for the nine months ended September 30, 2002 as
compared to the nine months ended September 30, 2001. This increase was
primarily due to (i) an increase in depletable oil and gas properties
primarily due to drilling activities on several wells during the nine
months ended September 30, 2002 and (ii) downward revisions in the
estimates of remaining oil reserves at September 30, 2002. As a percentage
of oil and gas sales, this expense increased to 13.8% for the nine months
ended September 30, 2002 from 5.7% for the nine months ended September 30,
2001. This percentage increase was primarily due to (i) the decreases in
the average prices of oil and gas sold and (ii) the dollar increase in
deprecation, depletion, and amortization.
General and administrative expenses increased $2,338 (1.8%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 7.5% for the nine months ended September 30, 2002 from 5.2%
for the nine months ended September 30, 2001. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2002 totaling $19,072,353 or 137.87% of Limited Partners' capital
contributions.
-50-
III-C PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2001.
Three Months Ended September 30,
--------------------------------
2002 2001
-------- --------
Oil and gas sales $664,913 $624,483
Oil and gas production expenses $169,814 $158,321
Barrels produced 2,684 4,699
Mcf produced 208,418 211,754
Average price/Bbl $ 28.00 $ 25.89
Average price/Mcf $ 2.83 $ 2.37
As shown in the table above, total oil and gas sales increased $40,430
(6.5%) for the three months ended September 30, 2002 as compared to the
three months ended September 30, 2001. Of this increase, approximately
$6,000 and $95,000, respectively, were related to increases in the average
prices of oil and gas sold, which increases were partially offset by
decreases of approximately $53,000 and $8,000, respectively, related to
decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 2,015 barrels and 3,336 Mcf, respectively, for the three months
ended September 30, 2002 as compared to the three months ended September
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 negative prior period
volume adjustment made by the purchaser on one significant well during the
three months ended September 30, 2002. These decreases were partially
offset by (i) a negative prior period volume adjustment made by the
purchaser on another significant well during the three months ended
September 30, 2001 and (ii) the III-C Partnership receiving an increased
percentage of sales on one significant well during the three months ended
September 30, 2002 due to gas balancing. As of the date of this Quarterly
Report, management expects the gas balancing adjustment 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
increased to $28.00 per barrel and $2.83 per Mcf, respectively, for the
three months ended September 30, 2002 from $25.89 per barrel and $2.37 per
Mcf, respectively, for the three months ended September 30, 2001.
-51-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $11,493 (7.3%) for the three months ended
September 30, 2002 as compared to the three months ended September 30,
2001. This increase was primarily due to positive prior period production
tax adjustments on several wells during the three months ended September
30, 2002. This increase was partially offset by negative prior period
lease operating expense adjustments on several wells during the three
months ended September 30, 2002. As a percentage of oil and gas sales,
these expenses remained relatively constant at 25.5% for the three months
ended September 30, 2002 and 25.4% for the three months ended September
30, 2001.
Depreciation, depletion, and amortization of oil and gas properties
decreased $8,345 (13.8%) for the three months ended September 30, 2002 as
compared to the three months ended September 30, 2001. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining oil and gas reserves at
September 30, 2002. These decreases were partially offset by an increase
in depletable oil and gas properties primarily due to drilling activities
on several wells during the three months ended September 30, 2002. As a
percentage of oil and gas sales, this expense decreased to 7.8% for the
three months ended September 30, 2002 from 9.7% for the three months ended
September 30, 2001. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
General and administrative expenses increased $837 (1.2%) for the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
decreased to 10.5% for the three months ended September 30, 2002 from
11.0% for the three months ended September 30, 2001.
NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2001.
Nine Months Ended September 30,
-------------------------------
2002 2001
---------- ----------
Oil and gas sales $1,950,464 $3,849,896
Oil and gas production expenses $ 538,477 $ 669,196
Barrels produced 9,026 12,086
Mcf produced 637,144 734,242
Average price/Bbl $ 23.96 $ 27.15
Average price/Mcf $ 2.72 $ 4.80
As shown in the table above, total oil and gas sales decreased $1,899,432
(49.3%) for the nine months ended September 30, 2002 as compared to the
nine months ended
-52-
September 30, 2001. Of this decrease, approximately (i) $1,322,000 was
related to a decrease in the average price of gas sold and (ii) $466,000
was related to a decrease in volumes of gas sold. Volumes of oil and gas
sold decreased 3,060 barrels and 97,098 Mcf, respectively, for the nine
months ended September 30, 2002 as compared to the nine months ended
September 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 nine months ended September 30, 2001. Average oil and gas
prices decreased to $23.96 per barrel and $2.72 per Mcf, respectively, for
the nine months ended September 30, 2002 from $27.15 per barrel and $4.80
per Mcf, respectively, for the nine months ended September 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $130,719 (19.5%) for the nine months ended
September 30, 2002 as compared to the nine months ended September 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 several wells during the nine months ended
September 30, 2002. As a percentage of oil and gas sales, these expenses
increased to 27.6% for the nine months ended September 30, 2002 from 17.4%
for the nine months ended September 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 $14,849 (7.3%) for the nine months ended September 30, 2002 as
compared to the nine months ended September 30, 2001. This decrease was
primarily due to (i) the decreases in volumes of oil and gas sold and (ii)
upward revisions in the estimates of remaining oil and gas reserves at
September 30, 2002. These decreases were partially offset by an increase
in depletable oil and gas properties primarily due to drilling activities
on several wells during the nine months ended September 30, 2002. As a
percentage of oil and gas sales, this expense increased to 9.6% for the
nine months ended September 30, 2002 from 5.3% for the nine months ended
September 30, 2001. This percentage increase was primarily due to the
decreases in the average prices of oil and gas sold.
-53-
General and administrative expenses increased $3,413 (1.6%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 11.5% for the nine months ended September 30, 2002 from 5.7%
for the nine months ended September 30, 2001. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2002 totaling $25,364,795 or 103.73% of Limited Partners' capital
contributions.
III-D PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2001.
Three Months Ended September 30,
--------------------------------
2002 2001
-------- --------
Oil and gas sales $447,909 $458,986
Oil and gas production expenses $178,210 $134,192
Barrels produced 5,045 7,100
Mcf produced 121,285 130,839
Average price/Bbl $ 24.76 $ 23.25
Average price/Mcf $ 2.66 $ 2.25
As shown in the table above, total oil and gas sales decreased $11,077
(2.4%) for the three months ended September 30, 2002 as compared to the
three months ended September 30, 2001. Of this decrease, approximately
$49,000 and $21,000, respectively, related to decreases in volumes of oil
and gas sold, which decreases were partially offset by increases of
approximately $8,000 and $51,000, respectively, related to increases in
the average prices of oil and gas sold. Volumes of oil and gas sold
decreased 2,055 barrels and 9,554 Mcf, respectively, for the three months
ended September 30, 2002 as compared to the three months ended September
30, 2001. The decrease in volumes of oil sold was primarily due to normal
declines in production. Average oil and gas prices increased to $24.76 per
barrel and $2.66 per Mcf, respectively, for the three months ended
September 30, 2002 from $23.25 per barrel and $2.25 per Mcf, respectively,
for the three months ended September 30, 2001.
-54-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $44,018 (32.8%) for the three months ended
September 30, 2002 as compared to the three months ended September 30,
2001. This increase was primarily due to (i) negative prior period lease
operating expense adjustments on two significant wells during the three
months ended September 30, 2001 and (ii) subsurface repair and maintenance
expenses incurred on another significant well during the three months
ended September 30, 2002. These increases were partially offset by a
decrease in workover expenses incurred on two wells within the same unit
during the three months ended September 30, 2002 as compared to the three
months ended September 30, 2001. As a percentage of oil and gas sales,
these expenses increased to 39.8% for the three months ended September 30,
2002 from 29.2% for the three months ended September 30, 2001. This
percentage increase was primarily due to the dollar increase in oil and
gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $9,079 (33.1%) for the three months ended September 30, 2002 as
compared to the three months ended September 30, 2001. This increase was
primarily due to an increase in depletable oil and gas properties
primarily due to drilling activities on several wells during the three
months ended September 30, 2002. This increase was partially offset by (i)
the decreases in volumes of oil and gas sold and (ii) upward revisions in
the estimates of remaining oil and gas reserves at September 30, 2002. As
a percentage of oil and gas sales, this expense increased to 8.2% for the
three months ended September 30, 2002 from 6.0% for the three months ended
September 30, 2001. This percentage increase was primarily due to the
dollar increase in depreciation, depletion and amortization.
General and administrative expenses increased $845 (2.3%) for the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 8.6% for the three months ended September 30, 2002 from 8.2%
for the three months ended September 30, 2001.
-55-
NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2001.
Nine Months Ended September 30,
-------------------------------
2002 2001
---------- ----------
Oil and gas sales $1,382,847 $2,535,998
Oil and gas production expenses $ 566,934 $ 603,877
Barrels produced 17,127 21,084
Mcf produced 389,844 436,588
Average price/Bbl $ 21.25 $ 23.95
Average price/Mcf $ 2.61 $ 4.65
As shown in the table above, total oil and gas sales decreased $1,153,151
(45.5%) for the nine months ended September 30, 2002 as compared to the
nine months ended September 30, 2001. Of this decrease, approximately (i)
$795,000 was related to a decrease in the average price of gas sold and
(ii) $217,000 was related to a decrease in volumes of gas sold. Volumes of
oil and gas sold decreased 3,957 barrels and 46,744 Mcf, respectively, for
the nine months ended September 30, 2002 as compared to the nine months
ended September 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 $21.25 per barrel and $2.61 per Mcf, respectively, for
the nine months ended September 30, 2002 from $23.95 per barrel and $4.65
per Mcf, respectively, for the nine months ended September 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $36,943 (6.1%) for the nine months ended
September 30, 2002 as compared to the nine months ended September 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 (i)
workover expenses incurred on two significant wells during the nine months
ended September 30, 2002 and (ii) an increase in workover expenses
incurred on two wells within the same unit during the nine months ended
September 30, 2002 as compared to the nine months ended September 30,
2001. As a percentage of oil and gas sales, these expenses increased to
41.0% for the nine months ended September 30, 2002 from 23.8% for the nine
months ended September 30, 2001. This percentage increase was primarily
due to the decreases in the average prices of oil and gas sold.
-56-
Depreciation, depletion, and amortization of oil and gas properties
increased $4,226 (4.7%) for the nine months ended September 30, 2002 as
compared to the nine months ended September 30, 2001. This increase was
primarily due to an increase in depletable oil and gas properties
primarily due to drilling activities on several wells during the nine
months ended September 30, 2002. This increase was partially offset by (i)
the decreases in volumes of oil and gas sold and (ii) upward revisions in
the estimates of remaining oil and gas reserves at September 30, 2002. As
a percentage of oil and gas sales, this expense increased to 6.8% for the
nine months ended September 30, 2002 from 3.5% for the nine months ended
September 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 $2,100 (1.7%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 9.3% for the nine months ended September 30, 2002 from 5.0%
for the nine months ended September 30, 2001. This percentage increase was
primarily due to the decrease in the oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2002 totaling $13,900,669 or 106.11% of the Limited Partners' capital
contributions.
III-E PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2001.
Three Months Ended September 30,
--------------------------------
2002 2001
---------- ----------
Oil and gas sales $1,185,582 $1,551,403
Oil and gas production expenses $ 848,963 $ 520,989
Barrels produced 29,212 39,281
Mcf produced 202,835 265,108
Average price/Bbl $ 23.97 $ 22.10
Average price/Mcf $ 2.39 $ 2.58
As shown in the table above, total oil and gas sales decreased $365,821
(23.6%) for the three months ended September 30, 2002 as compared to the
three months ended September 30, 2001. Of this decrease, approximately (i)
$223,000 and $161,000, respectively, were related to decreases in volumes
of oil and gas sold and (ii) $37,000 was related to a decrease in the
average price of gas sold. These decreases were partially offset by an
increase of approximately $55,000 related to an increase in the average
-57-
price of oil sold. Volumes of oil and gas sold decreased 10,069 barrels
and 62,273 Mcf, respectively, for the three months ended September 30,
2002 as compared to the three months ended September 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)
the shutting-in of one significant well during the three months ended
September 30, 2002 in order to perform a recompletion, (ii) the
shutting-in of another significant well due to production difficulties
during the three months ended September 30, 2002, and (iii) normal
declines in production. These decreases were partially offset by the III-E
Partnership receiving a reduced percentage of sales on one significant
well during the three months ended September 30, 2001 due to gas
balancing. Average oil prices increased to $23.97 per barrel for the three
months ended September 30, 2002 from $22.10 per barrel for the three
months ended September 30, 2001. Average gas prices decreased to $2.39 per
Mcf for the three months ended September 30, 2002 from $2.58 per Mcf for
the three months ended September 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $327,974 (63.0%) for the three months ended
September 30, 2002 as compared to the three months ended September 30,
2001. This increase was primarily due to (i) a negative prior period lease
operating expense adjustment made by the operator on one significant well
during the three months ended September 30, 2001 and (ii) an increase in
workover expenses on two wells within the same unit during the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. These increases were partially offset by a decrease in
workover expenses on two wells within the same unit during the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 71.6% for the three months ended September 30, 2002 from
33.6% for the three months ended September 30, 2001. This percentage
increase was primarily due to the dollar increase in oil and gas
production expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $48,029 (71.9%) for the three months ended September 30, 2002 as
compared to the three months ended September 30, 2001. This increase was
primarily due to an increase in depletable oil and gas properties
primarily due to drilling activities in a large unitized property during
the three months ended September 30, 2002. As a percentage of oil and gas
sales, this expense increased to 9.7% for the three months ended September
30, 2002 from 4.3% for the three months ended September 30, 2001. This
percentage increase was primarily due to the dollar increase in
depreciation, depletion, and amortization.
-58-
General and administrative expenses remained relatively constant for the
three months ended September 30, 2002 and 2001. As a percentage of oil and
gas sales, these expenses increased to 10.0% for the three months ended
September 30, 2002 from 7.6% for the three months ended September 30,
2001. This percentage increase was primarily due to the decrease in oil
and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2001.
Nine Months Ended September 30,
-------------------------------
2002 2001
---------- ----------
Oil and gas sales $4,084,397 $6,988,450
Oil and gas production expenses $2,545,307 $2,399,572
Barrels produced 100,957 123,569
Mcf produced 769,051 907,615
Average price/Bbl $ 20.71 $ 23.26
Average price/Mcf $ 2.59 $ 4.53
As shown in the table above, total oil and gas sales decreased $2,904,053
(41.6%) for the nine months ended September 30, 2002 as compared to the
nine months ended September 30, 2001. Of this decrease, approximately (i)
$1,492,000 was related to a decrease in the average price of gas sold and
(ii) $526,000 and $628,000, respectively, were related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 22,612
barrels and 138,564 Mcf, respectively, for the nine months ended September
30, 2002 as compared to the nine months ended September 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 nine months
ended September 30, 2002, (ii) the shutting-in of another significant well
during the nine months ended September 30, 2002 in order to perform a
workover, and (iii) normal declines in production. These decreases were
partially offset by the III-E Partnership receiving a reduced percentage
of sales on one significant well during the nine months ended September
30, 2001 due to gas balancing. Average oil and gas prices decreased to
$20.71 per barrel and $2.59 per Mcf, respectively, for the nine months
ended September 30, 2002 from $23.26 per barrel and $4.53 per Mcf,
respectively, for the nine months ended September 30, 2001.
-59-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $145,735 (6.1%) for the nine months ended
September 30, 2002 as compared to the nine months ended September 30,
2001. This increase was primarily due to (i) an increase in workover
expenses incurred on several wells within two units during the nine months
ended September 30, 2002 as compared to the nine months ended September
30, 2001 and (ii) a negative prior period lease operating expense
adjustment made by the operator on one significant well during the nine
months ended September 30, 2001. These increases were partially offset by
a decrease in production taxes associated with the decrease in oil and gas
sales. As a percentage of oil and gas sales, these expenses increased to
62.3% for the nine months ended September 30, 2002 from 34.3% for the nine
months ended September 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 $39,450 (17.9%) for the nine months ended September 30, 2002 as
compared to the nine months ended September 30, 2001. This increase was
primarily due to an increase in depletable oil and gas properties
primarily due to drilling activities in a large unitized property during
the nine months ended September 30, 2002. As a percentage of oil and gas
sales, this expense increased to 6.3% for the nine months ended September
30, 2002 from 3.1% for the nine months ended September 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 $5,170 (1.4%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 9.1% for the nine months ended September 30, 2002 from 5.2%
for the nine months ended September 30, 2001. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2002 totaling $44,205,016 or 105.69% of the Limited Partners' capital
contributions.
-60-
III-F PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2001.
Three Months Ended September 30,
--------------------------------
2002 2001
-------- --------
Oil and gas sales $371,424 $497,289
Oil and gas production expenses $146,825 $174,418
Barrels produced 5,448 7,130
Mcf produced 115,952 138,816
Average price/Bbl $ 23.83 $ 23.90
Average price/Mcf $ 2.08 $ 2.35
As shown in the table above, total oil and gas sales decreased $125,865
(25.3%) for the three months ended September 30, 2002 as compared to the
three months ended September 30, 2001. Of this decrease, approximately (i)
$40,000 and $54,000, respectively, were related to decreases in volumes of
oil and gas sold and (ii) $31,000 was related to a decrease in the average
price of gas sold. Volumes of oil and gas sold decreased 1,682 barrels and
22,864 Mcf, respectively, for the three months ended September 30, 2002 as
compared to the three months ended September 30, 2001. The decrease in
volumes of oil sold was primarily due to (i) normal declines in
production, and (ii) a positive prior period volume adjustment made by the
operator on one significant well during the three months ended September
30, 2001, and (iii) a negative prior period volume adjustment made by the
operator on another significant well during the three months ended
September 30, 2002. The decrease in volumes of gas sold was primarily due
to (i) normal declines in production and (ii) the shutting-in of one
significant well during the three months ended September 30, 2002 in order
to perform a recompletion. These decreases were partially offset by a
negative prior period volume adjustment made by the purchaser on another
significant well during the three months ended September 30, 2001. Average
oil and gas prices decreased to $23.83 per barrel and $2.08 per Mcf,
respectively, for the three months ended September 30, 2002 from $23.90
per barrel and $2.35 per Mcf, respectively, for the three months ended
September 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $27,593 (15.8%) for the three months ended
September 30, 2002 as compared to the three months ended September 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
negative prior period lease operating expense adjustment made by the
operator on one significant well during the three months ended September
30, 2002. These decreases were
-61-
partially offset by a negative prior period lease operating expense
adjustment made by the operator on another significant well during the
three months ended September 30, 2001. As a percentage of oil and gas
sales, these expenses increased to 39.5% for the three months ended
September 30, 2002 from 35.1% for the three months ended September 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 $20,160 (38.1%) for the three months ended September 30, 2002 as
compared to the three months ended September 30, 2001. This increase was
primarily due to an increase in depletable oil and gas properties
primarily due to drilling activities on one significant well during the
three months ended September 30, 2002. This increase was partially offset
by (i) the decreases in volumes of oil and gas sold and (ii) upward
revisions in the estimates of remaining oil and gas reserves at September
30, 2002. As a percentage of oil and gas sales, this expense increased to
19.7% for the three months ended September 30, 2002 from 10.7% for the
three months ended September 30, 2001. This percentage increase was
primarily due to the dollar increase in depreciation, depletion, and
amortization.
General and administrative expenses increased $843 (1.3%) for the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 17.1% for the three months ended September 30, 2002 from
12.6% for the three months ended September 30, 2001. This percentage
increase was primarily due to the decrease in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2001.
Nine Months Ended September 30,
-------------------------------
2002 2001
---------- ----------
Oil and gas sales $1,234,005 $2,578,902
Oil and gas production expenses $ 442,668 $ 716,131
Barrels produced 18,000 22,158
Mcf produced 354,147 467,109
Average price/Bbl $ 21.84 $ 24.24
Average price/Mcf $ 2.37 $ 4.37
As shown in the table above, total oil and gas sales decreased $1,344,897
(52.1%) for the nine months ended September 30, 2002 as compared to the
nine months ended September 30, 2001. Of this decrease, approximately (i)
$707,000 was related to a decrease in the average price of
-62-
gas sold and (ii) $494,000 was related to a decrease in volumes of gas
sold. Volumes of oil and gas sold decreased 4,158 barrels and 112,962 Mcf,
respectively, for the nine months ended September 30, 2002 as compared to
the nine months ended September 30, 2001. The decrease in volumes of oil
sold was primarily due to the sale of one significant well during early
2001. The decrease in volumes of gas sold was primarily due to (i) normal
declines in production, (ii) the shutting-in of one significant well
during the nine months ended September 30, 2002 in order to perform a
workover, and (iii) the shutting-in of another significant well during the
nine months ended September 30, 2002 in order to perform a recompletion.
Average oil and gas prices decreased to $21.84 per barrel and $2.37 per
Mcf, respectively, during the nine months ended September 30, 2002 from
$24.24 per barrel and $4.37 per Mcf, respectively, for the nine months
ended September 30, 2001.
As discussed in Liquidity and Capital Resources above, the III-F
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2001 and recognized a $313,447 gain on such sales. No
such sales occurred during the nine months September 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $273,463 (38.2%) for the nine months ended
September 30, 2002 as compared to the nine months ended September 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 nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 35.9% for the nine months ended September 30, 2002 from 27.8%
for the nine months ended September 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 $2,087 (1.2%) for the nine months ended September 30, 2002 as
compared to the nine months ended September 30, 2001. This increase was
primarily due to an increase in depletable oil and gas properties
primarily due to drilling activities on one significant well during the
nine months ended September 30, 2002. This increase was partially offset
by (i) the decreases in volumes of oil and gas sold and (ii) upward
revisions in the estimates of remaining oil and gas reserves at September
30, 2002. As a percentage of oil and gas sales, this expense increased to
14.4% for the nine months ended September 30, 2002 from 6.8% for the nine
months ended September 30, 2001. This percentage increase was primarily
due to the decreases in the average prices of oil and gas sold.
-63-
General and administrative expenses increased $3,252 (1.6%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 16.6% for the nine months ended September 30, 2002 from 7.8%
for the nine months ended September 30, 2001. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2002 totaling $17,223,904 or 77.77% of the Limited Partners' capital
contributions.
III-G PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2001.
Three Months Ended September 30,
--------------------------------
2002 2001
-------- --------
Oil and gas sales $241,564 $294,441
Oil and gas production expenses $ 90,176 $113,053
Barrels produced 4,266 5,064
Mcf produced 61,506 73,082
Average price/Bbl $ 25.31 $ 24.13
Average price/Mcf $ 2.17 $ 2.36
As shown in the table above, total oil and gas sales decreased $52,877
(18.0%) for the three months ended September 30, 2002 as compared to the
three months ended September 30, 2001. Of this decrease, approximately (i)
$19,000 and $27,000, respectively, were related to decreases in volumes of
oil and gas sold and (ii) $11,000 was related to a decrease in the average
price of gas sold. Volumes of oil and gas sold decreased 798 barrels and
11,576 Mcf, respectively, for the three months ended September 30, 2002 as
compared to the three months ended September 30, 2001. The decrease in
volumes of oil sold was primarily due to (i) normal declines in
production, (ii) a positive prior period volume adjustment made by the
operator on one significant well during the three months ended September
30, 2001, and (iii) a negative prior period volume adjustment made by the
operator on another significant well during the three months ended
September 30, 2002. The decrease in volumes of gas sold was primarily due
to (i) normal declines in production and (ii) the shutting-in of one
significant well during the three months ended September 30, 2002 in order
to perform a recompletion. These decreases were partially offset by a
negative prior period volume adjustment made by the purchaser on another
significant well during the three months ended September 30, 2001. Average
oil prices increased to $25.31 per barrel for the three months ended
-64-
September 30, 2002 from $24.13 per barrel for the three months ended
September 30, 2001. Average gas prices decreased to $2.17 per Mcf for the
three months ended September 30, 2002 from $2.36 per Mcf for the three
months ended September 30, 2001.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $22,877 (20.2%) for the three months ended
September 30, 2002 as compared to the three months ended September 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
negative prior period lease operating expense adjustment made by the
operator on one significant well during the three months ended September
30, 2002. These decreases were partially offset by a negative prior period
lease operating expense adjustment made by the operator on another
significant well during the three months ended September 30, 2001. As a
percentage of oil and gas sales, these expenses decreased to 37.3% for the
three months ended September 30, 2002 from 38.4% for the three months
ended September 30, 2001.
Depreciation, depletion, and amortization of oil and gas properties
increased $8,959 (31.5%) for the three months ended September 30, 2002 as
compared to the three months ended September 30, 2001. This increase was
primarily due to an increase in depletable oil and gas properties
primarily due to drilling activities on one significant well during the
three months ended September 30, 2002. This increase was partially offset
by (i) the decreases in volumes of oil and gas sold and (ii) upward
revisions in the estimates of remaining oil and gas reserves at September
30, 2002. As a percentage of oil and gas sales, this expense increased to
15.5% for the three months ended September 30, 2002 from 9.7% for the
three months ended September 30, 2001. This percentage increase was
primarily due to the dollar increase in depreciation, depletion, and
amortization.
General and administrative expenses increased $829 (2.4%) for the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 14.7% for the three months ended September 30, 2002 from
11.8% for the three months ended September 30, 2001. This percentage
increase was primarily due to the decrease in oil and gas sales.
-65-
NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2001.
Nine Months Ended September 30,
-------------------------------
2002 2001
-------- ----------
Oil and gas sales $761,759 $1,472,687
Oil and gas production expenses $277,831 $ 436,129
Barrels produced 14,268 16,321
Mcf produced 187,256 245,736
Average price/Bbl $ 22.01 $ 24.52
Average price/Mcf $ 2.39 $ 4.36
As shown in the table above, total oil and gas sales decreased $710,928
(48.3%) for the nine months ended September 30, 2002 as compared to the
nine months ended September 30, 2001. Of this decrease, approximately (i)
$370,000 was related to a decrease in the average price of gas sold and
(ii) $255,000 was related to a decrease in volumes of gas sold. Volumes of
oil and gas sold decreased 2,053 barrels and 58,480 Mcf, respectively, for
the nine months ended September 30, 2002 as compared to the nine months
ended September 30, 2001. The decrease in volumes of oil sold was
primarily due to the sale of one significant well during early 2001. The
decrease in volumes of gas sold was primarily due to (i) normal declines
in production, (ii) the shutting-in of one significant well during the
nine months ended Septmeber 30, 2002 in order to perform a workover, and
(iii) the shutting-in of another significant well during the nine months
ended September 30, 2002 in order to perform a recompletion. Average oil
and gas prices decreased to $22.01 per barrel and $2.39 per Mcf,
respectively, during the nine months ended September 30, 2002 from $24.52
per barrel and $4.36 per Mcf, respectively, for the nine months ended
September 30, 2001.
As discussed in Liquidity and Capital Resources above, the III-G
Partnership sold certain oil and gas properties during the nine months
ended September 30, 2001 and recognized a $207,189 gain on such sales. No
such sales occurred during the nine months September 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $158,298 (36.3%) for the nine months ended
September 30, 2002 as compared to the nine months ended September 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 nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 36.5% for the nine months ended September 30, 2002 from 29.6%
for the nine
-66-
months ended September 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 nine months ended September 30, 2002
and 2001. An increase in depletable oil and gas properties primarily due
to drilling activities on one significant well during the nine months
ended September 30, 2002 was substantially offset by (i) the decreases in
volumes of oil and gas sold and (ii) upward revisions in the estimates of
remaining oil and gas reserves at September 30, 2002. As a percentage of
oil and gas sales, this expense increased to 12.5% for the nine months
ended September 30, 2002 from 6.4% for the nine months ended September 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 $2,136 (1.8%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. As a percentage of oil and gas sales, these expenses
increased to 15.8% for the nine months ended September 30, 2002 from 8.0%
for the nine months ended September 30, 2001. This percentage increase was
primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2002 totaling $9,459,287 or 77.58% of the Limited Partners' capital
contributions.
-67-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The Partnerships do not hold any market risk sensitive instruments.
ITEM 4. EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Within the 90 days prior to the date of this report, the
Partnerships carried out an evaluation under the supervision and
with the participation of the Partnerships' management, including
their chief executive officer and chief financial officer, of the
effectiveness of the design and operation of the Partnerships'
disclosure controls and procedures pursuant to Rule 13a-14 of the
Securities Exchange Act of 1934. Based upon that evaluation, the
Partnerships' chief executive officer and chief financial officer
concluded that the Partnerships' disclosure controls and procedures
are effective in timely alerting them to material information
relating to the Partnerships required to be included in the
Partnerships' periodic filings with the SEC. There have been no
significant changes in the Partnerships' internal controls or in
other factors which could significantly affect the Partnerships'
internal controls subsequent to the date the Partnerships carried
out this evaluation.
-68-
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
4.1 Sixth Amendment to Agreement of Limited Partnership of
Geodyne Energy Income Limited Partnership III-E dated
November 6, 2002.
20.1 Form of letter sent to the limited partners of Geodyne
Energy Income Limited Partnership III-E on November 6,
2002.
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.
-69-
(b) Reports on Form 8-K.
Current Report on Form 8-K filed during the third quarter of 2002:
Date of event: August 15, 2002
Date filed with the SEC: August 16, 2002
Items Included: Item 5 - Other Events
Item 7 - Exhibits
-70-
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: January 8, 2003 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President (Principal Executive Officer)
Date: January 8, 2003 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-71-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-A;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-72-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Principal Executive Officer)
-73-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-A;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-74-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-75-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-B;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-76-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Principal Executive Officer)
-77-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-B;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-78-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-79-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-C;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-80-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Principal Executive Officer)
-81-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-C;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-82-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-83-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-D;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-84-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Principal Executive Officer)
-85-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-D;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-86-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-87-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-E;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-88-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Principal Executive Officer)
-89-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-E;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-90-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-91-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-F;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
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6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Principal Executive Officer)
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CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-F;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
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6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
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CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-G;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-96-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Principal Executive Officer)
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CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne Energy Income
Limited Partnership III-G;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-98-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 8th day of January, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
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INDEX TO EXHIBITS
-----------------
Exh.
No. Exhibit
- ---- -------
4.1 Sixth Amendment to Agreement of Limited Partnership of Geodyne
Energy Income Limited Partnership III-E dated November 6, 2002.
20.1 Form of letter sent to the limited partners of Geodyne Energy Income
Limited Partnership III-E on November 6, 2002.
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.
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