SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2003
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
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
---------------------------------------------------------
(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
Oklahoma III-F 73-1377737
- ---------------------------- -------------------------------
(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
June 30, December 31,
2003 2002
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,134,385 $ 718,665
Accounts receivable:
Related party (Note 2) - 888
Oil and gas sales 685,324 617,187
---------- ----------
Total current assets $1,819,709 $1,336,740
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 893,455 867,774
DEFERRED CHARGE 229,791 260,836
---------- ----------
$2,942,955 $2,465,350
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 68,521 $ 86,580
Gas imbalance payable 27,471 27,471
---------- ----------
Total current liabilities $ 95,992 $ 114,051
LONG-TERM LIABILITIES:
Accrued liability $ 24,706 $ 33,171
Asset retirement obligation
(Note 1) 111,916 -
---------- ----------
Total long-term liabilities $ 136,622 $ 33,171
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 78,236) ($ 87,091)
Limited Partners, issued and
outstanding, 263,976 units 2,788,577 2,405,219
---------- ----------
Total Partners' capital $2,710,341 $2,318,128
---------- ----------
$2,942,955 $2,465,350
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
REVENUES:
Oil and gas sales $1,050,221 $1,028,672
Interest income 1,683 1,285
---------- ----------
$1,051,904 $1,029,957
COSTS AND EXPENSES:
Lease operating $ 115,798 $ 201,781
Production tax 75,644 27,316
Depreciation, depletion, and
amortization of oil and gas
properties 32,091 69,610
General and administrative
(Note 2) 80,292 74,563
---------- ----------
$ 303,825 $ 373,270
---------- ----------
NET INCOME $ 748,079 $ 656,687
========== ==========
GENERAL PARTNER - NET INCOME $ 77,528 $ 71,805
========== ==========
LIMITED PARTNERS - NET INCOME $ 670,551 $ 584,882
========== ==========
NET INCOME per unit $ 2.54 $ 2.22
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
REVENUES:
Oil and gas sales $2,291,893 $1,988,020
Interest income 3,112 3,654
---------- ----------
$2,295,005 $1,991,674
COSTS AND EXPENSES:
Lease operating $ 215,520 $ 425,563
Production tax 167,942 67,258
Depreciation, depletion, and
amortization of oil and gas
properties 88,315 169,056
General and administrative
(Note 2) 163,604 164,674
---------- ----------
$ 635,381 $ 826,551
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $1,659,624 $1,165,123
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 673) -
---------- ----------
NET INCOME $1,681,951 $1,165,123
========== ==========
GENERAL PARTNER - NET INCOME $ 173,593 $ 131,362
========== ==========
LIMITED PARTNERS - NET INCOME $1,485,358 $1,033,761
========== ==========
NET INCOME per unit $ 5.63 $ 3.92
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,658,951 $1,165,123
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 673 -
Depreciation, depletion, and
amortization of oil and gas
properties 88,315 169,056
Decrease in accounts receivable -
related party 10 -
Increase in accounts receivable -
oil and gas sales ( 68,137) ( 108,009)
Decrease in deferred charge 31,045 53,074
Decrease in accounts payable ( 18,059) ( 38,070)
Decrease in accrued liability ( 8,465) -
---------- ----------
Net cash provided by operating
activities $1,684,333 $1,241,174
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,811) ($ 89,823)
Proceeds from sale of oil and gas
properties 936 -
---------- ----------
Net cash used by investing activities ($ 1,875) ($ 89,823)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,266,738) ($1,331,465)
---------- ----------
Net cash used by financing activities ($1,266,738) ($1,331,465)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 415,720 ($ 180,114)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 718,665 874,852
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,134,385 $ 694,738
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2003 2002
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 589,292 $ 397,754
Accounts receivable:
Related party (Note 2) - 586
Oil and gas sales 377,926 346,664
---------- ----------
Total current assets $ 967,218 $ 745,004
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 489,805 461,645
DEFERRED CHARGE 184,282 184,282
---------- ----------
$1,641,305 $1,390,931
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 50,258 $ 57,077
Gas imbalance payable 12,396 12,396
---------- ----------
Total current liabilities $ 62,654 $ 69,473
LONG-TERM LIABILITIES:
Accrued liability $ 9,911 $ 12,518
Asset retirement obligation
(Note 1) 78,006 -
---------- ----------
Total long-term liabilities $ 87,917 $ 12,518
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 40,171) ($ 48,554)
Limited Partners, issued and
outstanding, 138,336 units 1,530,905 1,357,494
---------- ----------
Total Partners' capital $1,490,734 $1,308,940
---------- ----------
$1,641,305 $1,390,931
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
REVENUES:
Oil and gas sales $571,366 $609,122
Interest income 867 649
-------- --------
$572,233 $609,771
COSTS AND EXPENSES:
Lease operating $ 51,536 $141,751
Production tax 41,999 24,938
Depreciation, depletion, and
amortization of oil and gas
properties 23,509 41,373
General and administrative
(Note 2) 46,246 40,967
-------- --------
$163,290 $249,029
-------- --------
NET INCOME $408,943 $360,742
======== ========
GENERAL PARTNER - NET INCOME $ 64,502 $ 59,806
======== ========
LIMITED PARTNERS - NET INCOME $344,441 $300,936
======== ========
NET INCOME per unit $ 2.49 $ 2.17
======== ========
UNITS OUTSTANDING 138,336 138,336
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
------------ ----------
REVENUES:
Oil and gas sales $1,271,941 $1,207,706
Interest income 1,626 1,938
---------- ----------
$1,273,567 $1,209,644
COSTS AND EXPENSES:
Lease operating $ 117,659 $ 291,184
Production tax 95,655 57,883
Depreciation, depletion, and
amortization of oil and gas
properties 57,577 103,177
General and administrative
(Note 2) 94,667 94,016
---------- ----------
$ 365,558 $ 546,260
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $ 908,009 $ 663,384
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 586) -
---------- ----------
NET INCOME $ 907,423 $ 663,384
========== ==========
GENERAL PARTNER - NET INCOME $ 144,012 $ 113,662
========== ==========
LIMITED PARTNERS - NET INCOME $ 763,411 $ 549,722
========== ==========
NET INCOME per unit $ 5.52 $ 3.97
========== ==========
UNITS OUTSTANDING 138,336 138,336
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $907,423 $663,384
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 586 -
Depreciation, depletion, and
amortization of oil and gas
properties 57,577 103,177
Decrease in accounts receivable -
related party (Note 2) 7 -
Increase in accounts receivable -
oil and gas sales ( 31,262) ( 72,521)
Decrease in deferred charge - 44,544
Decrease in accounts payable ( 6,819) ( 12,520)
Decrease in accrued liability ( 2,607) -
-------- --------
Net cash provided by operating
activities $924,905 $726,064
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 8,226) ($ 59,823)
Proceeds from sale of oil and gas
properties 488 -
-------- --------
Net cash used by investing activities ($ 7,738) ($ 59,823)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($725,629) ($790,506)
-------- --------
Net cash used by financing activities ($725,629) ($790,506)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $191,538 ($124,265)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 397,754 494,899
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $589,292 $370,634
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2003 2002
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 953,287 $ 480,424
Accounts receivable:
Oil and gas sales 645,214 518,374
---------- ----------
Total current assets $1,598,501 $ 998,798
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,788,160 1,694,533
DEFERRED CHARGE 57,867 57,867
---------- ----------
$3,444,528 $2,751,198
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 134,930 $ 143,943
Gas imbalance payable 43,923 43,923
---------- ----------
Total current liabilities $ 178,853 $ 187,866
LONG-TERM LIABILITIES:
Accrued liability $ 196,167 $ 196,167
Asset retirement obligation
(Note 1) 193,621 -
---------- ----------
Total long-term liabilities $ 389,788 $ 196,167
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 135,954) ($ 150,636)
Limited Partners, issued and
outstanding, 244,536 units 3,011,841 2,517,801
---------- ----------
Total Partners' capital $2,875,887 $2,367,165
---------- ----------
$3,444,528 $2,751,198
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
REVENUES:
Oil and gas sales $963,616 $714,982
Interest income 1,358 817
Gain on sale of oil and gas
properties - 17,501
-------- --------
$964,974 $733,300
COSTS AND EXPENSES:
Lease operating $154,137 $107,043
Production tax 70,257 41,549
Depreciation, depletion, and
amortization of oil and gas
properties 55,846 68,651
General and administrative
(Note 2) 75,020 69,287
-------- --------
$355,260 $286,530
-------- --------
NET INCOME $609,714 $446,770
======== ========
GENERAL PARTNER - NET INCOME $ 65,862 $ 50,774
======== ========
LIMITED PARTNERS - NET INCOME $543,852 $395,996
======== ========
NET INCOME per unit $ 2.23 $ 1.62
======== ========
UNITS OUTSTANDING 244,536 244,536
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
REVENUES:
Oil and gas sales $2,119,331 $1,285,551
Interest income 2,325 2,026
Gain on sale of oil and gas
properties - 17,501
---------- ----------
$2,121,656 $1,305,078
COSTS AND EXPENSES:
Lease operating $ 318,469 $ 294,886
Production tax 144,691 73,777
Depreciation, depletion, and
amortization of oil and gas
properties 99,556 136,143
General and administrative
(Note 2) 152,858 153,662
---------- ----------
$ 715,574 $ 658,468
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $1,406,082 $ 646,610
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 2,317 -
---------- ----------
NET INCOME $1,408,399 $ 646,610
========== ==========
GENERAL PARTNER - NET INCOME $ 149,359 $ 76,711
========== ==========
LIMITED PARTNERS - NET INCOME $1,259,040 $ 569,899
========== ==========
NET INCOME per unit $ 5.15 $ 2.33
========== ==========
UNITS OUTSTANDING 244,536 244,536
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,408,399 $646,610
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 2,317) -
Depreciation, depletion, and
amortization of oil and gas
properties 99,556 136,143
Gain on sale of oil and gas
properties - ( 17,501)
Increase in accounts receivable -
oil and gas sales ( 126,840) ( 93,527)
Increase (decrease) in accounts
payable ( 9,013) 9,450
---------- --------
Net cash provided by operating
activities $1,369,785 $681,175
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 18,401) ($ 7,408)
Proceeds from sale of oil and gas
properties 21,156 18,970
---------- --------
Net cash provided by investing
activities $ 2,755 $ 11,562
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 899,677) ($600,604)
---------- --------
Net cash used by financing activities ($ 899,677) ($600,604)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 472,863 $ 92,133
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 480,424 371,012
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 953,287 $463,145
========== ========
The accompanying condensed notes are an integral
part of these financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2003 2002
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 613,783 $ 306,024
Accounts receivable:
Oil and gas sales 463,271 386,024
---------- ----------
Total current assets $1,077,054 $ 692,048
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 810,242 755,553
DEFERRED CHARGE 10,949 10,949
---------- ----------
$1,898,245 $1,458,550
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 127,781 $ 171,347
---------- ----------
Total current liabilities $ 127,781 $ 171,347
LONG-TERM LIABILITIES:
Accrued liability $ 251,798 $ 251,798
Asset retirement obligation
(Note 1) 108,623 -
---------- ----------
Total long-term liabilities $ 360,421 $ 251,798
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 38,724) ($ 50,949)
Limited Partners, issued and
outstanding, 131,008 units 1,448,767 1,086,354
---------- ----------
Total Partners' capital $1,410,043 $1,035,405
---------- ----------
$1,898,245 $1,458,550
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
REVENUES:
Oil and gas sales $668,883 $525,911
Interest income 859 328
Gain on sale of oil and gas
properties - 15,250
-------- --------
$669,742 $541,489
COSTS AND EXPENSES:
Lease operating $157,071 $128,699
Production tax 48,436 38,157
Depreciation, depletion, and
amortization of oil and gas
properties 33,539 28,844
General and administrative
(Note 2) 44,942 39,555
-------- --------
$283,988 $235,255
-------- --------
NET INCOME $385,754 $306,234
======== ========
GENERAL PARTNER - NET INCOME $ 41,508 $ 33,187
======== ========
LIMITED PARTNERS - NET INCOME $344,246 $273,047
======== ========
NET INCOME per unit $ 2.63 $ 2.08
======== ========
UNITS OUTSTANDING 131,008 131,008
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- --------
REVENUES:
Oil and gas sales $1,526,694 $934,938
Interest income 1,401 761
Gain on sale of oil and gas
properties - 15,250
---------- --------
$1,528,095 $950,949
COSTS AND EXPENSES:
Lease operating $ 305,379 $322,205
Production tax 107,434 66,519
Depreciation, depletion, and
amortization of oil and gas
properties 52,731 56,842
General and administrative
(Note 2) 91,248 90,433
---------- --------
$ 556,792 $535,999
---------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $ 971,303 $414,950
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 2,875 -
---------- --------
NET INCOME $ 974,178 $414,950
========== ========
GENERAL PARTNER - NET INCOME $ 101,765 $ 46,535
========== ========
LIMITED PARTNERS - NET INCOME $ 872,413 $368,415
========== ========
NET INCOME per unit $ 6.66 $ 2.81
========== ========
UNITS OUTSTANDING 131,008 131,008
========== ========
The accompanying condensed notes are an integral
part of these financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $974,178 $414,950
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 2,875) -
Depreciation, depletion, and
amortization of oil and gas
properties 52,731 56,842
Gain on sale of oil and gas
properties - ( 15,250)
Increase in accounts receivable -
oil and gas sales ( 77,247) ( 76,805)
Decrease in accounts payable ( 43,566) ( 45,106)
-------- --------
Net cash provided by operating
activities $903,221 $334,631
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 11,359) ($ 49,995)
Proceeds from the sale of oil and
gas properties 15,437 16,281
-------- --------
Net cash provided (used) by investing
activities $ 4,078 ($ 33,714)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($599,540) ($177,360)
-------- --------
Net cash used by financing activities ($599,540) ($177,360)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $307,759 $123,557
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 306,024 160,008
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $613,783 $283,565
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2003 2002
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,378,274 $ 801,420
Accounts receivable:
Oil and gas sales 1,310,707 924,827
---------- ----------
Total current assets $2,688,981 $1,726,247
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,730,713 2,646,994
DEFERRED CHARGE 60,913 69,176
---------- ----------
$5,480,607 $4,442,417
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 451,365 $ 746,759
Accrued liability - other (Note 1) - 122,289
Gas imbalance payable 2,736 2,736
---------- ----------
Total current liabilities $ 454,101 $ 871,784
LONG-TERM LIABILITIES:
Accrued liability $ 328,632 $ 328,632
Asset retirement obligation
(Note 1) 262,879 -
---------- ----------
Total long-term liabilities $ 591,511 $ 328,632
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 158,200) ($ 250,684)
Limited Partners, issued and
outstanding, 418,266 units 4,593,195 3,492,685
---------- ----------
Total Partners' capital $4,434,995 $3,242,001
---------- ----------
$5,480,607 $4,442,417
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
REVENUES:
Oil and gas sales $1,770,613 $1,519,382
Interest income 1,341 76
---------- ----------
$1,771,954 $1,519,458
COSTS AND EXPENSES:
Lease operating $ 641,720 $ 728,630
Production tax 159,532 104,166
Depreciation, depletion, and
amortization of oil and gas
properties 70,536 64,451
General and administrative
(Note 2) 123,059 117,443
---------- ----------
$ 994,847 $1,014,690
---------- ----------
NET INCOME $ 777,107 $ 504,768
========== ==========
GENERAL PARTNER - NET INCOME $ 83,925 $ 56,270
========== ==========
LIMITED PARTNERS - NET INCOME $ 693,182 $ 448,498
========== ==========
NET INCOME per unit $ 1.66 $ 1.07
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
REVENUES:
Oil and gas sales $3,977,639 $2,898,815
Interest income 2,268 916
Gain on abandonment 1,848 -
---------- ----------
$3,981,755 $2,899,731
COSTS AND EXPENSES:
Lease operating $1,339,437 $1,513,311
Production tax 273,470 183,033
Depreciation, depletion, and
amortization of oil and gas
properties 182,137 144,519
General and administrative
(Note 2) 249,143 253,069
---------- ----------
$2,044,187 $2,093,932
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $1,937,568 $ 805,799
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 2,725 -
---------- ----------
NET INCOME $1,940,293 $ 805,799
========== ==========
GENERAL PARTNER - NET INCOME $ 209,783 $ 93,495
========== ==========
LIMITED PARTNERS - NET INCOME $1,730,510 $ 712,304
========== ==========
NET INCOME per unit $ 4.14 $ 1.70
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,940,293 $805,799
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 2,725) -
Depreciation, depletion, and
amortization of oil and gas
properties 182,137 144,519
Gain on abandonment ( 1,848) -
Increase in accounts receivable -
oil and gas sales ( 385,880) ( 277,362)
Decrease in deferred charge 8,263 -
Decrease in accounts payable ( 295,394) ( 241,694)
Decrease in accrued liability -
other ( 122,289) -
---------- --------
Net cash provided by operating
activities $1,322,557 $431,262
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 15,738) ($344,108)
Proceeds from sale of oil and gas
properties 17,334 551
---------- --------
Net cash provided (used) by investing
activities $ 1,596 ($343,557)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 747,299) ($ 11,928)
---------- --------
Net cash used by financing activities ($ 747,299) ($ 11,928)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 576,854 $ 75,777
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 801,420 440,024
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,378,274 $515,801
========== ========
The accompanying condensed notes are an integral
part of these financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2003 2002
----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 550,740 $ 284,588
Accounts receivable:
Oil and gas sales 572,275 348,300
---------- ----------
Total current assets $1,123,015 $ 632,888
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,770,075 1,764,313
DEFERRED CHARGE 26,052 29,946
---------- ----------
$2,919,142 $2,427,147
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 91,122 $ 118,741
Accrued liability - other (Note 1) - 102,690
Gas imbalance payable 2,295 2,295
---------- ----------
Total current liabilities $ 93,417 $ 223,726
LONG-TERM LIABILITIES:
Accrued liability $ 126,076 $ 118,005
Asset retirement obligation
(Note 1) 140,398 -
---------- ----------
Total long-term liabilities $ 266,474 $ 118,005
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 140,520) ($ 159,621)
Limited Partners, issued and
outstanding, 221,484 units 2,699,771 2,245,037
---------- ----------
Total Partners' capital $2,559,251 $2,085,416
---------- ----------
$2,919,142 $2,427,147
========== ==========
The accompanying condensed notes are an integral
part of these financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
-------- --------
REVENUES:
Oil and gas sales $639,889 $446,409
Interest income 499 358
-------- --------
$640,388 $446,767
COSTS AND EXPENSES:
Lease operating $151,930 $146,619
Production tax 50,730 27,836
Depreciation, depletion, and
amortization of oil and gas
properties 31,607 49,521
General and administrative
(Note 2) 69,137 63,528
-------- --------
$303,404 $287,504
-------- --------
NET INCOME $336,984 $159,263
======== ========
GENERAL PARTNER - NET INCOME $ 18,089 $ 9,926
======== ========
LIMITED PARTNERS - NET INCOME $318,895 $149,337
======== ========
NET INCOME per unit $ 1.44 $ .68
======== ========
UNITS OUTSTANDING 221,484 221,484
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- --------
REVENUES:
Oil and gas sales $1,487,065 $862,581
Interest income 933 923
Gain on abandonment 903 -
---------- --------
$1,488,901 $863,504
COSTS AND EXPENSES:
Lease operating $ 309,559 $253,183
Production tax 82,213 42,660
Depreciation, depletion, and
amortization of oil and gas
properties 140,158 103,979
General and administrative
(Note 2) 140,568 141,093
---------- --------
$ 672,498 $540,915
---------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $ 816,403 $322,589
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) 3,712 -
---------- --------
NET INCOME $ 820,115 $322,589
========== ========
GENERAL PARTNER - NET INCOME $ 46,381 $ 20,242
========== ========
LIMITED PARTNERS - NET INCOME $ 773,734 $302,347
========== ========
NET INCOME per unit $ 3.49 $ 1.37
========== ========
UNITS OUTSTANDING 221,484 221,484
========== ========
The accompanying condensed notes are an integral
part of these financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)
2003 2002
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $820,115 $322,589
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) ( 3,712) -
Depreciation, depletion, and
amortization of oil and gas
properties 140,158 103,979
Gain on abandonment ( 903) -
Increase in accounts receivable -
oil and gas sales ( 223,975) ( 59,005)
Decrease in deferred charge 3,894 -
Increase (decrease) in accounts
payable ( 27,619) 16,332
Decrease in accrued liability -
other ( 102,690) -
Increase in accrued liability 8,071 -
-------- --------
Net cash provided by operating
activities $613,339 $383,895
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 12,259) ($ 5,282)
Proceeds from the sale of oil
and gas properties 11,352 1,093
-------- --------
Net cash used by investing activities ($ 907) ($ 4,189)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($346,280) ($342,446)
-------- --------
Net cash used by financing activities ($346,280) ($342,446)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $266,152 $ 37,260
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 284,588 144,433
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $550,740 $181,693
======== ========
The accompanying condensed notes are an integral
part of these financial statements.
-25-
GEODYNE ENERGY INCOME PROGRAM III LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2003
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of June 30, 2003, statements of operations for the
three and six months ended June 30, 2003 and 2002, and statements of cash
flows for the six months ended June 30, 2003 and 2002 have been prepared
by Geodyne Resources, Inc., the General Partner of the Partnerships (the
"General Partner"), without audit. In the opinion of management the
financial statements referred to above include all necessary adjustments,
consisting of normal recurring adjustments, to present fairly the
financial position at June 30, 2003, the results of operations for three
and six months ended June 30, 2003 and 2002, and the cash flows for the
six months ended June 30, 2003 and 2002.
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, 2002. The
results of operations for the period ended June 30, 2003 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
-26-
acquisition, for the period of time the properties are held by the General
Partner.
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 and estimated
salvage value of the equipment.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss (including the elimination of the asset retirement obligation)
reflected in income. When less than complete units of depreciable property
are retired or sold, the proceeds are credited to oil and gas properties.
ACCRUED LIABILITY - OTHER
- ---------------------------
The accrued liability - other at December 31, 2002 for the III-E and III-F
Partnerships represents a charge accrued for the payment of refund amounts
to royalty and overriding royalty interest owners in relation to the R.W.
Scott Investments, LLC v. Samson Resources Company lawsuit. Such amounts
were repaid during the first quarter of 2003.
NEW ACCOUNTING PRONOUNCEMENTS
- -----------------------------
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). On January 1,
2003, the Partnerships adopted FAS No. 143 and recorded an increase in
capitalized cost of oil and gas properties, an increase (decrease) in net
income for the cumulative effect of the change in accounting principle,
and an asset retirement obligation in the following approximate amounts
for each Partnership:
-27-
Increase
(decrease)
Increase in
in Net Income
Capitalized for the
Cost of Oil Change in Asset
and Gas Accounting Retirement
Partnerships Properties Principle Obligation
------------ ----------- ---------- ----------
III-A $109,000 ($1,000) $110,000
III-B 76,000 ( 1,000) 77,000
III-C 192,000 2,000 190,000
III-D 109,000 3,000 106,000
III-E 264,000 3,000 261,000
III-F 144,000 4,000 140,000
These amounts differ significantly from the estimates disclosed in the
Annual Report on Form 10-K for the year ended December 31, 2002 due to a
revision of the methodology used in calculating the change in capitalized
cost of oil and gas properties.
The asset retirement obligation will be adjusted upwards each quarter in
order to recognize accretion of the time-related discount factor. For the
six months ended June 30, 2003, the III-A, III-B, III-C, III-D, III-E, and
III-F Partnerships recognized approximately $2,000, $2,000, $3,000,
$2,000, $11,000, and $4,000, respectively, of an increase in depreciation,
depletion, and amortization expense, which was comprised of accretion of
the asset retirement obligation and depletion of the increase in
capitalized cost of oil and gas properties.
If this accounting policy had been in effect on January 1, 2002, the
proforma impact for the III-A, III-B, III-C, III-D, III-E, and III-F
Partnerships during the six months ended June 30, 2002 would have been an
increase in depreciation, depletion, and amortization expense of
approximately $3,000, $2,000, $5,000, $3,000, $8,000, and $5,000,
respectively.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' partnership agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended June 30, 2003, the following payments were made to the General
Partner or its affiliates by the Partnerships:
-28-
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
III-A $ 10,824 $ 69,468
III-B 9,841 36,405
III-C 10,667 64,353
III-D 10,466 34,476
III-E 12,989 110,070
III-F 10,853 58,284
During the six months ended June 30, 2003, the following payments were
made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
III-A $ 24,668 $138,936
III-B 21,857 72,810
III-C 24,152 128,706
III-D 22,296 68,952
III-E 29,003 220,140
III-F 24,000 116,568
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.
-29-
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.
-30-
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
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. Revenues and net
proceeds of a Partnership are largely dependent upon the volumes of oil
and gas sold and the prices received for such oil and gas. While the
General Partner cannot predict future pricing trends, it believes the
working capital available as of June 30, 2003 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
Occasional expenditures for new wells or well recompletions or workovers
may reduce or eliminate cash available for a particular quarterly cash
distribution. During the six months ended June 30, 2002, capital
expenditures for the III-D and III-E Partnerships totaled $49,995 and
$344,108, respectively. These expenditures were primarily due to drilling
activities in a large unitized property, the Jay-Little Escambia Creek
Field Unit, located in Santa Rosa County, Florida, in which the
Partnerships own working interests of approximately 0.7% and 4.7%,
respectively.
-31-
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, III-E, and III-F Partnerships for the second 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 2 March 7, 2005
The General Partner currently intends to extend the terms of the III-A,
III-B, and III-C Partnerships for their third extension period, but has
not yet determined whether it intends to further extend the terms of any
other Partnerships.
CRITICAL ACCOUNTING POLICIES
- ----------------------------
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 the
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner.
-32-
Depletion of the cost 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 units-of-production
method. The Partnerships' calculation of depreciation, depletion, and
amortization includes estimated dismantlement and abandonment costs and
estimated salvage value of the equipment. When complete units of
depreciable property are retired or sold, the asset cost and related
accumulated depreciation are eliminated with any gain or loss (including
the elimination of the asset retirement obligation) reflected in income.
When less that complete units of depreciable property are retired or sold,
the proceeds are credited to oil and gas properties.
The Partnerships evaluate the recoverability of the carrying costs of
their proved oil and gas properties for each oil and gas field (rather
than separately for each well). If the unamortized costs of oil and gas
properties within a field exceeds the expected undiscounted future cash
flows from such properties, the cost of the properties is written down to
fair value, which is determined by using the discounted future cash flows
from the properties. The risk that the Partnerships will be required to
record impairment provisions in the future increases as oil and gas prices
decrease.
The Deferred Charge on the Balance Sheets represents costs deferred for
lease operating expenses incurred in connection with the Partnerships'
underproduced gas imbalance positions. Conversely, the Accrued Liability
represents charges accrued for lease operating expenses incurred in
connection with the Partnerships' overproduced gas imbalance positions.
The rate used in calculating the Deferred Charge and Accrued Liability is
the annual average production costs per Mcf.
The Partnerships' oil and condensate production is sold, title passed, and
revenue recognized at or near the Partnerships' wells under short-term
purchase contracts at prevailing prices in accordance with arrangements
which are customary in the oil and gas industry. Sales of gas applicable
to the Partnerships' interest in producing oil and gas leases are recorded
as revenue when the gas is metered and title transferred pursuant to the
gas sales contracts covering the Partnerships' interest in gas reserves.
During such times as a Partnership's sales of gas exceed its' pro rata
ownership in a well, such sales are recorded as revenues unless total
sales from the well have exceeded the Partnership's share of estimated
total gas reserves underlying the property, at which time such excess is
recorded as a liability. The rates per Mcf used to calculate this
liability are based on the average gas prices received for the volumes at
the time the overproduction
-33-
occurred. This also approximates the price for which the Partnerships are
currently settling this liability. These amounts were recorded as gas
imbalance payables in accordance with the sales method. These gas
imbalance payables will be settled by either gas production by the
underproduced party in excess of current estimates of total gas reserves
for the well or by negotiated or contractual payment to the underproduced
party.
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). On January 1,
2003, the Partnerships adopted FAS No. 143 and recorded an increase in
capitalized cost of oil and gas properties, an increase (decrease) in net
income for the cumulative effect of the change in accounting principle,
and an asset retirement obligation in the following approximate amounts
for each Partnership:
Increase
(decrease)
Increase in
in Net Income
Capitalized for the
Cost of Oil Change in Asset
and Gas Accounting Retirement
Partnerships Properties Principle Obligation
------------ ----------- ---------- ----------
III-A $109,000 ($1,000) $110,000
III-B 76,000 ( 1,000) 77,000
III-C 192,000 2,000 190,000
III-D 109,000 3,000 106,000
III-E 264,000 3,000 261,000
III-F 144,000 4,000 140,000
These amounts differ significantly from the estimates disclosed in the
Annual Report on Form 10-K for the year ended December 31, 2002 due to a
revision of the methodology used in calculating the change in capitalized
cost of oil and gas properties.
The asset retirement obligation will be adjusted upwards each quarter in
order to recognize accretion of the time-related discount factor. For the
six months ended June 30,
-34-
2003, the III-A, III-B, III-C, III-D, III-E, and III-F Partnerships
recognized approximately $3,000, $2,000, $4,000, $3,000, $11,000, and
$4,000, respectively, of an increase in depreciation, depletion, and
amortization expense, which was comprised of accretion of the asset
retirement obligation and depletion of the increase in capitalized cost of
oil and gas properties.
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.
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.
-35-
III-A Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 60,496 3,866,700
Production (13,075) ( 158,528)
Revisions of previous
estimates 3,790 49,870
------ ---------
Proved reserves, March 31, 2003 51,211 3,758,042
Production (12,045) ( 110,375)
Revisions of previous
estimates 13,010 799,504
------ ---------
Proved reserves, June 30, 2003 52,176 4,447,171
====== =========
III-B Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 46,684 1,676,027
Production ( 9,175) ( 80,507)
Revisions of previous
estimates 2,237 23,613
------ ---------
Proved reserves, March 31, 2003 39,746 1,619,133
Production (17,445) ( 131,405)
Revisions of previous
estimates 14,485 443,482
------ ---------
Proved reserves, June 30, 2003 36,786 1,931,210
====== =========
-36-
III-C Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 110,916 4,928,613
Production ( 5,914) ( 181,104)
Revisions of previous
estimates 876 ( 18,213)
------- ---------
Proved reserves, March 31, 2003 105,878 4,729,296
Production ( 3,660) ( 170,277)
Revisions of previous
estimates 184 590,139
------- ---------
Proved reserves, June 30, 2003 102,402 5,149,158
======= =========
III-D Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 236,192 2,667,538
Production ( 8,579) ( 113,755)
Revisions of previous
estimates 800 ( 18,987)
------- ---------
Proved reserves, March 31, 2003 228,413 2,534,796
Production ( 6,342) ( 105,200)
Revisions of previous
estimates ( 40,773) 177,661
------- ---------
Proved reserves, June 30, 2003 181,298 2,607,257
======= =========
-37-
III-E Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
----------- ------------
Proved reserves, Dec. 31, 2002 1,259,858 7,254,259
Production ( 33,458) ( 198,493)
Revisions of previous
estimates ( 5,741) ( 60,612)
--------- ---------
Proved reserves, March 31, 2003 1,220,659 6,995,154
Production ( 29,243) ( 242,845)
Extensions and discoveries 310 20,701
Revisions of previous
estimates ( 320,192) 74,885
--------- ---------
Proved reserves, June 30, 2003 871,534 6,847,895
========= =========
III-F Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2002 224,872 4,664,302
Production ( 5,382) ( 137,370)
Revisions of previous
estimates 13,058 98,851
------- ---------
Proved reserves, March 31, 2003 232,548 4,625,783
Production ( 4,914) ( 84,148)
Extensions and discoveries 266 17,879
Revisions of previous
estimates 66,707 ( 65,453)
------- ---------
Proved reserves, June 30, 2003 294,607 4,494,061
======= =========
-38-
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 June 30, 2003, March 31, 2003, and
December 31, 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 not escalated except in
certain circumstances where escalations were fixed and readily
determinable in accordance with applicable contract provisions. The table
also indicates the gas prices in effect on the dates corresponding to the
reserve valuations. Changes in the oil and gas prices cause the estimates
of remaining economically recoverable reserves, as well as the values
placed on said reserves to fluctuate. 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
June 30, 2003. There can be no assurance that the prices used in
calculating the net present value of the Partnerships' proved reserves at
June 30, 2003 will actually be realized for such production.
Net Present Value of Reserves
-----------------------------------------
Partnership 6/30/03 3/31/03 12/31/02
----------- ----------- ----------- -----------
III-A $11,647,087 $10,867,772 $10,583,968
III-B 5,431,520 5,089,897 5,037,182
III-C 13,014,415 12,887,263 12,473,256
III-D 7,346,844 7,660,816 7,655,634
III-E 17,663,675 20,366,791 20,987,455
III-F 10,522,138 10,485,701 10,539,573
Oil and Gas Prices
-----------0-----------------------------
Pricing 6/30/03 3/31/03 12/31/02
----------- ----------- ----------- -----------
Oil (per barrel) $ 27.00 $ 27.75 $ 28.00
Gas (per Mcf) 5.18 5.06 4.74
-39-
The Jay-Little Escambia Creek Field Unit located in Santa Rosa County,
Florida is a material oil and gas property for the III-D and III-E
Partnerships. This property, consisting of several oil and gas producing
wells, several nitrogen gas injection wells (to stimulate production), and
a gas plant, is operated by ExxonMobil. The injection process leads to
very high operating costs. As a result, changes in natural gas and
particularly oil prices can significantly impact net cash flow and the
estimated net present value of this property's proved reserves. Based on
information received from the operator, in late 2001 through early 2003
this property experienced mechanical and operational difficulties
primarily associated with the nitrogen injection system and gas plant
operations. Also, the drilling of a directional well has significantly
exceeded the operator's original cost estimates. Recently, the operator
notified the working interest owners that additional costs would be
incurred in order to plug several wells. As a result of these costs, cash
flow from this property has been reduced and at times has been negative.
This property is very sensitive to changes in oil prices and production
volumes. Until the operator completes repairs, drilling, and plugging
activities, this property's cash flows could continue to be low or
negative despite relatively high oil and gas prices. Compared to March 31,
2003 reserve estimates, the June 30, 2003 reserve estimates include a
significant downward adjustment in future oil production as well as an
increase in estimated future operating expenses, thereby reducing reserve
value estimates. These changes have been made as a result of the continued
performance (reduced oil production and higher production expenses over
the last several months) associated with this property. While Geodyne has
received verbal assurances from ExxonMobil that production issues were
expected to improve, this has not been evidenced in results to date.
In addition, estimated gas reserves and the related estimated net present
value for the III-E and III-F Partnerships have been reduced from the
March 31, 2003 quarter as a result of a review of recent production
information on the Trail Unit located in Sweetwater County, Wyoming. This
significant property has recently experienced a greater than anticipated
decline in gas production, indicating that the ultimate production may be
lower than the previous estimate.
The III-A, III-B, III-C, and III-D Partnerships had upward revisions in
estimated gas reserves and the related estimated net present value of
reserves at June 30, 2003 as compared to March 31, 2003 due to an increase
in the gas price used to run the reserves and lower rates of decline than
originally forecast.
-40-
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:
* 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;
* 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 and early 2003. 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
-41-
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.
III-A PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2002.
Three Months Ended June 30,
---------------------------
2003 2002
---------- ----------
Oil and gas sales $1,050,221 $1,028,672
Oil and gas production expenses $ 191,442 $ 229,097
Barrels produced 12,045 9,322
Mcf produced 110,375 226,274
Average price/Bbl $ 28.48 $ 24.93
Average price/Mcf $ 6.41 $ 3.52
As shown in the table above, total oil and gas sales increased $21,549
(2.1%) for the three months ended June 30, 2003 as compared to the three
months ended June 30, 2002. Of this increase, approximately (i) $43,000
and $319,000, respectively, were related to increases in the average
prices of oil and gas sold and (ii) $68,000 was related to an increase in
volumes of oil sold. These increases were partially offset by a decrease
of approximately $408,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 2,723 barrels, while volumes of gas sold
decreased 115,899 Mcf for the three months ended June 30, 2003 as compared
to the three months ended June 30, 2002. The increase in volumes of oil
sold was primarily due to an increase in production during the three
months ended June 30, 2003 on one significant well due to the successful
workover of that well during mid 2002. This increase was partially offset
by a decline in production during the three months ended June 30, 2003 on
another significant well following the recompletion of that well during
mid 2001. The decrease in volumes of gas sold was primarily due to (i) a
substantial decline in production during the three months
-42-
ended June 30, 2003 on one significant well following a workover of that
well during early 2002 and (ii) normal declines in production. Average oil
and gas prices increased to $28.48 per barrel and $6.41 per Mcf,
respectively, for the three months ended June 30, 2003 from $24.93 per
barrel and $3.52 per Mcf, respectively, for the three months ended June
30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $37,655 (16.4%) for the three months ended
June 30, 2003 as compared to the three months ended June 30, 2002. This
decrease was primarily due to (i) a decrease in lease operating expenses
associated with the decrease in volumes of gas sold and (ii) workover
expenses on two significant wells during the three months ended June 30,
2002. As a percentage of oil and gas sales, these expenses decreased to
18.2% for the three months ended June 30, 2003 from 22.3% for the three
months ended June 30, 2002. This percentage decrease was primarily due to
the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $37,519 (53.9%) for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. This decrease was
primarily due to the (i) decreases in volumes of gas sold and (ii) upward
revisions in the estimates of remaining oil and gas reserves. As a
percentage of oil and gas sales, this expense decreased to 3.1% for the
three months ended June 30, 2003 from 6.8% for the three months ended June
30, 2002. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization of oil and gas
properties.
General and administrative expenses increased $5,729 (7.7%) for the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. As a percentage of oil and gas sales, these expenses decreased to
7.6% for the three months ended June 30, 2003 from 7.2% for the three
months ended June 30, 2002.
-43-
SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2002.
Six Months Ended June 30,
---------------------------
2003 2002
---------- ----------
Oil and gas sales $2,291,893 $1,988,020
Oil and gas production expenses $ 383,462 $ 492,821
Barrels produced 25,120 27,622
Mcf produced 268,903 519,631
Average price/Bbl $ 30.11 $ 21.73
Average price/Mcf $ 5.71 $ 2.67
As shown in the table above, total oil and gas sales increased $303,873
(15.3%) for the six months ended June 30, 2003 as compared to the six
months ended June 30, 2002. Of this increase, approximately $210,000 and
$817,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $54,000 and $669,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 2,502
barrels and 250,728 Mcf, respectively, for the six months ended June 30,
2003 as compared to the six months ended June 30, 2002. The decrease in
volumes of oil sold was primarily due to (i) a decline in production
during the six months ended June 30, 2003 on several wells following
recompletions of those wells during mid 2001 and (ii) normal declines in
production. These decreases were partially offset by an increase in
production during the six months ended June 30, 2003 on one significant
well due to the successful workover of that well during mid 2002. The
decrease in volumes of gas sold was primarily due to (i) a substantial
decline in production during the six months ended June 30, 2003 on two
significant wells following workovers of those wells during early 2002,
(ii) a positive prior period gas balancing adjustment on one significant
well during the six months ended June 30, 2002, and (iii) normal declines
in production. Average oil and gas prices increased to $30.11 per barrel
and $5.71 per Mcf, respectively, for the six months ended June 30, 2003
from $21.73 per barrel and $2.67 per Mcf, respectively, for the six months
ended June 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $109,359 (22.2%) for the six months ended June
30, 2003 as compared to the six months ended June 30, 2002. This decrease
was primarily due to (i) a decrease in lease operating expenses associated
with the decreases in volumes of oil and gas sold, (ii) a positive prior
period lease operating expense adjustment on one significant well during
the six months ended June 30, 2002, and (iii) workover expenses incurred
on two significant wells during the six months ended June 30, 2002.
-44-
As a percentage of oil and gas sales, these expenses decreased to 16.7%
for the six months ended June 30, 2003 from 24.8% for the six months ended
June 30, 2002. This percentage decrease was primarily due to the increases
in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $80,741 (47.8%) for the six months ended June 30, 2003 as
compared to the six months ended June 30, 2002. 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. As a
percentage of oil and gas sales, this expense decreased to 3.9% for the
six months ended June 30, 2003 from 8.5% for the six months ended June 30,
2002. This percentage decrease was primarily due to the increases in the
average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2003 and 2002. As a percentage of oil and gas
sales, these expenses decreased to 7.1% for the six months ended June 30,
2003 from 8.3% for the six months ended June 30, 2002. This percentage
decrease was primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2003 totaling $35,050,701 or 132.78% of Limited Partners' capital
contributions.
III-B PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2002.
Three Months Ended June 30,
---------------------------
2003 2002
-------- --------
Oil and gas sales $571,366 $609,122
Oil and gas production expenses $ 93,535 $166,689
Barrels produced 8,270 6,782
Mcf produced 50,898 123,700
Average price/Bbl $ 28.34 $ 25.51
Average price/Mcf $ 6.62 $ 3.53
As shown in the table above, total oil and gas sales decreased $37,756
(6.2%) for the three months ended June 30, 2003 as compared to the three
months ended June 30, 2002. Of this decrease, approximately $257,000 was
related to a decrease in volumes of gas sold. This decrease was partially
offset by increases of approximately (i) $23,000 and $158,000,
respectively, related to increases in the average prices of oil and gas
sold and (ii) $38,000 related to an increase in volumes of oil sold.
Volumes of oil sold
-45-
increased 1,488 barrels, while volumes of gas sold decreased 72,802 Mcf
for the three months ended June 30, 2003 as compared to the three months
ended June 30, 2002. The increase in volumes of oil sold was primarily due
to an increase in production during the three months ended June 30, 2003
on one significant well due to the successful workover of that well during
mid 2002. This increase was partially offset by a decline in production
during the three months ended June 30, 2003 on another significant well
following the recompletion of that well during mid 2001. The decrease in
volumes of gas sold was primarily due to (i) a substantial decline in
production during the three months ended June 30, 2003 on one significant
well following a workover of that well during early 2002 and (ii) normal
declines in production. Average oil and gas prices increased to $28.34 per
barrel and $6.62 per Mcf, respectively, for the three months ended June
30, 2003 from $25.51 per barrel and $3.53 per Mcf, respectively, for the
three months ended June 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $73,154 (43.9%) for the three months ended
June 30, 2003 as compared to the three months ended June 30, 2002. This
decrease was primarily due to (i) a decrease in lease operating expenses
associated with the decrease in volumes of gas sold and (ii) workover
expenses incurred on two significant wells during the three months ended
June 30, 2002. As a percentage of oil and gas sales, these expenses
decreased to 16.4% for the three months ended June 30, 2003 from 27.4% for
the three months ended June 30, 2002. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $17,864 (43.2%) for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. 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. As a
percentage of oil and gas sales, this expense decreased to 4.1% for the
three months ended June 30, 2003 from 6.8% for the three months ended June
30, 2002. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization of oil and gas
properties.
General and administrative expenses increased $5,279 (12.9%) for the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. This increase was primarily due to a change in the timing of the
audit fees paid. As a percentage of oil and gas sales, these expenses
increased to 8.1% for the three months ended June 30, 2003 from 6.7% for
the three months ended June 30, 2002. This
-46-
percentage increase was primarily due to the dollar increase in
general and administrative expenses.
SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2002.
Six Months Ended June 30,
-------------------------
2003 2002
---------- ----------
Oil and gas sales $1,271,941 $1,207,706
Oil and gas production expenses $ 213,314 $ 349,067
Barrels produced 17,445 20,217
Mcf produced 131,405 288,670
Average price/Bbl $ 30.17 $ 22.00
Average price/Mcf $ 5.67 $ 2.64
As shown in the table above, total oil and gas sales increased $64,235
(5.3%) for the six months ended June 30, 2003 as compared to the six
months ended June 30, 2002. Of this increase, approximately $143,000 and
$398,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $61,000 and $416,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 2,772
barrels and 157,265 Mcf, respectively, for the six months ended June 30,
2003 as compared to the six months ended June 30, 2002. The decrease in
volumes of oil sold was primarily due to (i) a decline in production
during the six months ended June 30, 2003 on several wells following
recompletions of those wells during mid 2001 and (ii) normal declines in
production. These decreases were partially offset by an increase in
production during the six months ended June 30, 2003 on one significant
well due to the successful workover of that well during mid 2002. The
decrease in volumes of gas sold was primarily due to (i) a substantial
decline in production during the six months ended June 30, 2003 on two
significant wells following workovers of those wells during early 2002,
(ii) a positive prior period gas balancing adjustment on one significant
well during the six months ended June 30, 2002, and (iii) normal declines
in production. Average oil and gas prices increased to $30.17 per barrel
and $5.67 per Mcf, respectively, for the six months ended June 30, 2003
from $22.00 per barrel and $2.64 per Mcf, respectively, for the six months
ended June 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $135,753 (38.9%) for the six months ended June
30, 2003 as compared to the six months ended June 30, 2002. This decrease
was primarily due to (i) a decrease in lease operating expenses associated
with the decreases in volumes of oil and gas sold, (ii) a positive prior
period lease operating expense adjustment on
-47-
one significant well during the six months ended June 30, 2002, and (iii)
workover expenses incurred on another significant well during the six
months ended June 30, 2002. As a percentage of oil and gas sales, these
expenses decreased to 16.8% for the six months ended June 30, 2003 from
28.9% for the six months ended June 30, 2002. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $45,600 (44.2%) for the six months ended June 30, 2003 as
compared to the six months ended June 30, 2002. 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. As a
percentage of oil and gas sales, this expense decreased to 4.5% for the
six months ended June 30, 2003 from 8.5% for the six months ended June 30,
2002. This percentage decrease was primarily due to the increases in the
average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2003 and 2002. As a percentage of oil and gas
sales, these expenses decreased to 7.4% for the six months ended June 30,
2003 from 7.8% for the six months ended June 30, 2002.
The Limited Partners have received cash distributions through June 30,
2003 totaling $20,016,353 or 144.69% of Limited Partners' capital
contributions.
III-C PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2002.
Three Months Ended June 30,
---------------------------
2003 2002
-------- --------
Oil and gas sales $963,616 $714,982
Oil and gas production expenses $224,394 $148,592
Barrels produced 3,660 2,650
Mcf produced 170,277 219,475
Average price/Bbl $ 28.47 $ 25.32
Average price/Mcf $ 5.05 $ 2.95
As shown in the table above, total oil and gas sales increased $248,634
(34.8%) for the three months ended June 30, 2003 as compared to the three
months ended June 30, 2002. Of this increase, approximately (i) $357,000
was related to an increase in the average price of gas sold and (ii)
$26,000 was related to an increase in volumes of oil sold. These increases
were partially offset by a decrease
-48-
of approximately $145,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 1,010 barrels, while volumes of gas sold
decreased 49,198 Mcf for the three months ended June 30, 2003 as compared
to the three months ended June 30, 2002. The increase in volumes of oil
sold was primarily due to an increase in production on one significant
well due to the successful recompletion of that well during late 2002. The
decrease in volumes of gas sold was primarily due to (i) normal declines
in production and (ii) the shutting-in of two significant wells during
three months ended June 30, 2003 in order to perform workovers on those
wells. The shut-in wells are expected to return to production in mid 2003.
These decreases were partially offset by an increase in production on
another significant well due to the successful completion of that well
during early 2003. Average oil and gas prices increased to $28.47 per
barrel and $5.05 per Mcf, respectively, for the three months ended June
30, 2003 from $25.32 per barrel and $2.95 per Mcf, respectively, for the
three months ended June 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $75,802 (51.0%) for the three months ended
June 30, 2003 as compared to the three months ended June 30, 2002. This
increase was primarily due to (i) workover expenses incurred on one
significant well during the three months ended June 30, 2003 and (ii) an
increase in production taxes associated with the increase in oil and gas
sales. As a percentage of oil and gas sales, these expenses increased to
23.3% for the three months ended June 30, 2003 from 20.8% for the three
months ended June 30, 2002. 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
decreased $12,805 (18.7%) for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. This decrease was
primarily due to the decrease in volumes of gas sold. As a percentage of
oil and gas sales, this expense decreased to 5.8% for the three months
ended June 30, 2003 from 9.6% for the three months ended June 30, 2002.
This percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
General and administrative expenses increased $5,733 (8.3%) for the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. As a percentage of oil and gas sales, these expenses decreased to
7.8% for the three months ended June 30, 2003 from 9.7% for the three
months ended June 30, 2002. This percentage decrease was primarily due to
the increase in oil and gas sales.
-49-
SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2002.
Six Months Ended June 30,
-------------------------
2003 2002
---------- ----------
Oil and gas sales $2,119,331 $1,285,551
Oil and gas production expenses $ 463,160 $ 368,663
Barrels produced 9,574 6,342
Mcf produced 351,381 428,726
Average price/Bbl $ 30.51 $ 22.25
Average price/Mcf $ 5.20 $ 2.67
As shown in the table above, total oil and gas sales increased $833,780
(64.9%) for the six months ended June 30, 2003 as compared to the six
months ended June 30, 2002. Of this increase, approximately $889,000 was
related to an increase in the average price of gas sold. This increase was
partially offset by a decrease of approximately $206,000 related to a
decrease in volumes of gas sold. Volumes of oil sold increased 3,232
barrels, while volumes of gas sold decreased 77,345 Mcf for the six months
ended June 30, 2003 as compared to the six months ended June 30, 2002. The
increase in volumes of oil sold was primarily due to an increase in
production on one significant well due to the successful recompletion of
that well during late 2002. The decrease in volumes of gas sold was
primarily due to (i) normal declines in production and (ii) the
shutting-in of two significant wells during the six months ended June 30,
2003 in order to perform workovers on those wells. The shut-in wells are
expected to return to production in mid 2003. These decreases were
partially offset by an increase in production on another significant well
due to the successful completion of that well during early 2003. Average
oil and gas prices increased to $30.51 per barrel and $5.20 per Mcf,
respectively, for the six months ended June 30, 2003 from $22.25 per
barrel and $2.67 per Mcf, respectively, for the six months ended June 30,
2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $94,497 (25.6%) for the six months ended June
30, 2003 as compared to the six months ended June 30, 2002. This increase
was primarily due to (i) an increase in production taxes associated with
the increase in oil and gas sales and (ii) workover expenses incurred on
one significant well during the six months ended June 30, 2003. These
increases were partially offset by (i) a decrease in lease operating
expenses associated with the decrease in volumes of gas sold, (ii) lower
workover expenses incurred on one significant well during the six months
ended June 30, 2003 than similar expenses incurred on the same well during
the six months ended June 30, 2002, and (iii) workover expenses incurred
on another significant well
-50-
during the six months ended June 30, 2002. As a percentage of oil and gas
sales, these expenses decreased to 21.9% for the six months ended June 30,
2003 from 28.7% for the six months ended June 30, 2002. This percentage
decrease was primarily due to the increases in the average prices of oil
and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $36,587 (26.9%) for the six months ended June 30, 2003 as
compared to the six months ended June 30, 2002. This decrease was
primarily due to the decrease in volumes of gas sold. As a percentage of
oil and gas sales, this expense decreased to 4.7% for the six months ended
June 30, 2003 from 10.6% for the six months ended June 30, 2002. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2003 and 2002. As a percentage of oil and gas
sales, these expenses decreased to 7.2% for the six months ended June 30,
2003 from 12.0% for the six months ended June 30, 2002. This percentage
decrease was primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2003 totaling $26,438,795 or 108.12% of Limited Partners' capital
contributions.
III-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2002.
Three Months Ended June 30,
---------------------------
2003 2002
-------- --------
Oil and gas sales $668,883 $525,911
Oil and gas production expenses $205,507 $166,856
Barrels produced 6,342 5,572
Mcf produced 105,200 139,629
Average price/Bbl $ 24.52 $ 22.87
Average price/Mcf $ 4.88 $ 2.85
As shown in the table above, total oil and gas sales increased $142,972
(27.2%) for the three months ended June 30, 2003 as compared to the three
months ended June 30, 2002. Of this increase, approximately (i) $213,000
was related to an increase in the average price of gas sold and (ii)
$18,000 was related to an increase in volumes of oil sold. These increases
were partially offset by a decrease of approximately $98,000 related to a
decrease in volumes of gas sold. Volumes of oil sold increased 770
barrels, while
-51-
volumes of gas sold decreased 34,429 Mcf for the three months ended June
30, 2003 as compared to the three months ended June 30, 2002. The increase
in volumes of oil sold was primarily due to an increase in production on
one significant well due to the successful recompletion of that well
during late 2002. The decrease in volumes of gas sold was primarily due to
(i) the shutting-in of two significant wells during the three months ended
June 30, 2003 in order to perform workovers on those wells and (ii)
positive prior period volume adjustments made by the purchasers on two
other significant wells during the three months ended June 30, 2002. The
shut-in wells are expected to return to production in the second half of
2003. These decreases were partially offset by the successful completion
of one significant well during early 2003. Average oil and gas prices
increased to $24.52 per barrel and $4.88 per Mcf, respectively, for the
three months ended June 30, 2003 from $22.87 per barrel and $2.85 per Mcf,
respectively, for the three months ended June 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $38,651 (23.2%) for the three months ended
June 30, 2003 as compared to the three months ended June 30, 2002. This
increase was primarily due to (i) workover expenses incurred on one
significant well during the three months ended June 30, 2003 and (ii) an
increase in production taxes associated with the increase in oil and gas
sales. These increases were partially offset by a decrease in lease
operating expenses associated with the decrease in volumes of gas sold. As
a percentage of oil and gas sales, these expenses decreased to 30.7% for
the three months ended June 30, 2003 from 31.7% for the three months ended
June 30, 2002.
Depreciation, depletion, and amortization of oil and gas properties
increased $4,695 (16.3%) for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. This increase was
primarily due to substantial downward revisions in the estimates of
remaining oil and gas reserves on one significant well during the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. As a percentage of oil and gas sales, this expense decreased to 5.0%
for three months ended June 30, 2003 from 5.5% for the three months ended
June 30, 2002.
General and administrative expenses increased $5,387 (13.6%) for the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. This increase was primarily due to a change in the timing of audit
fees paid. As a percentage of oil and gas sales, these expenses decreased
to 6.7% for three months ended June 30, 2003 from 7.5% for the three
months ended June 30, 2002. This
-52-
percentage decrease was primarily due to the increase in oil and gas
sales.
SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2002.
Six Months Ended June 30,
-------------------------
2003 2002
---------- --------
Oil and gas sales $1,526,694 $934,938
Oil and gas production expenses $ 412,813 $388,724
Barrels produced 14,921 12,082
Mcf produced 218,955 268,559
Average price/Bbl $ 27.41 $ 19.78
Average price/Mcf $ 5.10 $ 2.59
As shown in the table above, total oil and gas sales increased $591,756
(63.3%) for the six months ended June 30, 2003 as compared to the six
months ended June 30, 2002. Of this increase, approximately $114,000 and
$550,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by a decrease of
approximately $129,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 2,839 barrels, while volumes of gas sold
decreased 49,604 Mcf for the six months ended June 30, 2003 as compared to
the six months ended June 30, 2002. The increase in volumes of oil sold
was primarily due to an increase in production on one significant well due
to the successful recompletion of that well during late 2002. The decrease
in volumes of gas sold was primarily due to (i) normal declines in
production and (ii) the shutting-in of two significant wells during the
six months ended June 30, 2003 in order to perform workovers on those
wells. The shut-in wells are expected to return to production in the
second half of 2003. These decreases were partially offset by the
successful completion of one significant well during early 2003. Average
oil and gas prices increased to $27.41 per barrel and $5.10 per Mcf,
respectively, for the six months ended June 30, 2003 from $19.78 per
barrel and $2.59 per Mcf, respectively, for the six months ended June 30,
2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $24,089 (6.2%) for the six months ended June
30, 2003 as compared to the six months ended June 30, 2002. This increase
was primarily due to (i) an increase in production taxes associated with
the increase in oil and gas sales and (ii) workover expenses incurred on
one significant well during the six months ended June 30, 2003. These
increases were partially offset by (i) a decrease in lease operating
expenses associated with the decrease in volumes of gas sold and (ii)
lower workover
-53-
expenses incurred on another significant well during the six months ended
June 30, 2003 than similar expenses incurred on the same well during the
six months ended June 30, 2002. As a percentage of oil and gas sales,
these expenses decreased to 27.0% for the six months ended June 30, 2003
from 41.6% for the six months ended June 30, 2002. This percentage
decrease was primarily due to the increases in the average prices of oil
and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,111 (7.2%) for the six months ended June 30, 2003 as compared
to the six months ended June 30, 2002. As a percentage of oil and gas
sales, this expense decreased to 3.5% for the six months ended June 30,
2003 from 6.1% for the six months ended June 30, 2002. This percentage
decrease was primarily due to the increases in the average prices of oil
and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2003 and 2002. As a percentage of oil and gas
sales, these expenses decreased to 6.0% for the six months ended June 30,
2003 from 9.7% for the six months ended June 30, 2002. This percentage
decrease was primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2003 totaling $14,570,669 or 111.22% of Limited Partners' capital
contributions.
III-E PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2002.
Three Months Ended June 30,
---------------------------
2003 2002
---------- ----------
Oil and gas sales $1,770,613 $1,519,382
Oil and gas production expenses $ 801,252 $ 832,796
Barrels produced 29,243 34,145
Mcf produced 242,845 239,622
Average price/Bbl $ 23.67 $ 22.67
Average price/Mcf $ 4.44 $ 3.11
As shown in the table above, total oil and gas sales increased $251,231
(16.5%) for the three months ended June 30, 2003 as compared to the three
months ended June 30, 2002. Of this increase, approximately $29,000 and
$323,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by a decrease of
approximately $111,000 related to a decrease in volumes of oil sold.
Volumes of oil sold decreased 4,902 barrels, while volumes of gas sold
increased
-54-
3,223 Mcf for the three months ended June 30, 2003 as compared to the
three months ended June 30, 2002. The decrease in volumes of oil sold was
primarily due to normal declines in production. Average oil and gas prices
increased to $23.67 per barrel and $4.44 per Mcf, respectively, for the
three months ended June 30, 2003 from $22.67 per barrel and $3.11 per Mcf,
respectively, for the three months ended June 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $31,544 (3.8%) for the three months ended June
30, 2003 as compared to the three months ended June 30, 2002. This
decrease was primarily due to a decrease in workover expenses incurred on
several wells within one unit during the three months ended June 30, 2003
as compared to the three months ended June 30, 2002. This decrease was
partially offset by an increase in production taxes associated with the
increase in oil and gas sales. As a percentage of oil and gas sales, these
expenses decreased to 45.3% for the three months ended June 30, 2003 from
54.8% for the three months ended June 30, 2002. This percentage decrease
was primarily due to the increases in the average prices of oil and gas
sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $6,085 (9.4%) for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. As a percentage of oil
and gas sales, this expense decreased to 4.0% for the three months ended
June 30, 2003 from 4.2% for the three months ended June 30, 2002.
General and administrative expenses increased $5,616 (4.8%) for the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. As a percentage of oil and gas sales, these expenses decreased to
7.0% for the three months ended June 30, 2003 from 7.7% for the three
months ended June 30, 2002.
SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2002.
Six Months Ended June 30,
-------------------------
2003 2002
---------- ----------
Oil and gas sales $3,977,639 $2,898,815
Oil and gas production expenses $1,612,907 $1,696,344
Barrels produced 62,701 71,745
Mcf produced 441,338 566,216
Average price/Bbl $ 26.53 $ 19.38
Average price/Mcf $ 5.24 $ 2.66
As shown in the table above, total oil and gas sales increased $1,078,824
(37.2%) for the six months ended June
-55-
30, 2003 as compared to the six months ended June 30, 2002. Of this
increase, approximately $448,000 and $1,139,000, respectively, were
related to increases in the average prices of oil and gas sold. These
increases were partially offset by decreases of approximately $175,000 and
$333,000, respectively, related to decreases in volumes of oil and gas
sold. Volumes of oil and gas sold decreased 9,044 barrels and 124,878 Mcf,
respectively, for the six months ended June 30, 2003 as compared to the
six months ended June 30, 2002. 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)
the shutting-in of one significant well during the six months ended June
30, 2003 in order to perform a workover on that well. The operator has not
yet determined when the shut-in well will return to production. Average
oil and gas prices increased to $26.53 per barrel and $5.24 per Mcf,
respectively, for the six months ended June 30, 2003 from $19.38 per
barrel and $2.66 per Mcf, respectively, for the six months ended June 30,
2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $83,437 (4.9%) for the six months ended June
30, 2003 as compared to the six months ended June 30, 2002. This decrease
was primarily due to (i) a decrease in lease operating expenses associated
with the decreases in volumes of oil and gas sold and (ii) a decrease in
workover expenses incurred on several wells within one unit during the six
months ended June 30, 2003 as compared to the six months ended June 30,
2002. These decreases were partially offset by an increase in production
taxes associated with the increase in oil and gas sales. As a percentage
of oil and gas sales, these expenses decreased to 40.5% for the six months
ended June 30, 2003 from 58.5% for the six months ended June 30, 2002.
This percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $37,618 (26.0%) for the six months ended June 30, 2003 as
compared to the six months ended June 30, 2002. This increase was
primarily due to (i) the abandonment of one significant well during the
six months ended June 30, 2003 due to severe mechanical problems, (ii) an
increase in depletable oil and gas properties primarily due to
recompletion activities on one significant well during the six months
ended June 30, 2003, and (iii) downward revisions in the estimates of
remaining oil reserves at June 30, 2003. As a percentage of oil and gas
sales, this expense decreased to 4.6% for the six months ended June 30,
2003 from 5.0% for the six months ended June 30, 2002.
-56-
General and administrative expenses decreased $3,926 (1.6%) for the six
months ended June 30, 2003 as compared to the six months ended June 30,
2002. As a percentage of oil and gas sales, these expenses decreased to
6.3% for the six months ended June 30, 2003 from 8.7% for the six months
ended June 30, 2002.
The Limited Partners have received cash distributions through June 30, 2003
totaling $44,987,016 or 107.56% of Limited Partners' capital contributions.
III-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2003 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2002.
Three Months Ended June 30,
---------------------------
2003 2002
-------- --------
Oil and gas sales $639,889 $446,409
Oil and gas production expenses $202,660 $174,455
Barrels produced 4,914 6,113
Mcf produced 84,148 112,632
Average price/Bbl $ 28.46 $ 23.07
Average price/Mcf $ 5.94 $ 2.71
As shown in the table above, total oil and gas sales increased $193,480
(43.3%) for the three months ended June 30, 2003 as compared to the three
months ended June 30, 2002. Of this increase, approximately $26,000 and
$272,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $28,000 and $77,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 1,199
barrels and 28,484 Mcf, respectively, for the three months ended June 30,
2003 as compared to the three months ended June 30, 2002. The decrease in
volumes of oil sold was primarily due to (i) normal declines in production,
(ii) the abandonment of one significant well during early 2003 due to
severe mechanical problems, and (iii) the shutting-in of another
significant well during the three months ended June 30, 2003 in order to
perform a workover on that well. The operator has not yet determined when
the shut-in well will return to production. The decrease in volumes of gas
sold was primarily due to (i) normal declines in production and (ii) a
positive prior period volume adjustment made by the purchaser on one
significant well during the three months ended June 30, 2002. Average oil
and gas prices increased to $28.46 per barrel and $5.94 per Mcf,
respectively, for the three months ended June 30, 2003 from $23.07 per
barrel and $2.71 per Mcf, respectively, for the three months ended June 30,
2002.
-57-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $28,205 (16.2%) for the three months ended
June 30, 2003 as compared to the three months ended June 30, 2002. This
increase was primarily due to an increase in production taxes associated
with the increase in oil and gas sales. As a percentage of oil and gas
sales, these expenses decreased to 31.7% for the three months ended June
30, 2003 from 39.1% for the three months ended June 30, 2002. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $17,914 (36.2%) for the three months ended June 30, 2003 as
compared to the three months ended June 30, 2002. 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 reserves. As a
percentage of oil and gas sales, this expense decreased to 4.9% for the
three months ended June 30, 2003 from 11.1% for the three months ended
June 30, 2002. This percentage decrease was primarily due to (i) the
dollar decrease in depreciation, depletion, and amortization of oil and
gas properties and (ii) the increases in the average prices of oil and
gas sold.
General and administrative expenses increased $5,609 (8.8%) for the three
months ended June 30, 2003 as compared to the three months ended June 30,
2002. As a percentage of oil and gas sales, these expenses decreased to
10.8% for the three months ended June 30, 2003 from 14.2% for the three
months ended June 30, 2002. This percentage decrease was primarily due to
the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2003 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2002.
Six Months Ended June 30,
-------------------------
2003 2002
---------- --------
Oil and gas sales $1,487,065 $862,581
Oil and gas production expenses $ 391,772 $295,843
Barrels produced 10,296 12,552
Mcf produced 221,518 238,195
Average price/Bbl $ 29.68 $ 20.98
Average price/Mcf $ 5.33 $ 2.52
As shown in the table above, total oil and gas sales increased $624,484
(72.4%) for the six months ended June 30, 2003 as compared to the six
months ended June 30, 2002. Of this increase, approximately $90,000 and
$624,000, respectively, were related to increases in the average prices
of oil and gas sold. Volumes of oil and gas sold
-58-
decreased 2,256 barrels and 16,677 Mcf, respectively, for the six months
ended June 30, 2003 as compared to the six months ended June 30, 2002. The
decrease in volumes of oil sold was primarily due to (i) normal declines in
production, (ii) the abandonment of one significant well during early 2003
due to severe mechanical problems, and (ii) the shutting-in of another
significant well during the six months ended June 30, 2003 in order to
perform a workover of that well. The operator has not yet determined when
the shut-in well will return to production. Average oil and gas prices
increased to $29.68 per barrel and $5.33 per Mcf, respectively, for the six
months ended June 30, 2003 from $20.98 per barrel and $2.52 per Mcf,
respectively, for the six months ended June 30, 2002.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $95,929 (32.4%) for the six months ended June
30, 2003 as compared to the six months ended June 30, 2002. This increase
was primarily due to (i) a negative prior period lease operating expense
adjustment on one significant well during the six months ended June 30,
2002 and (ii) an increase in production taxes associated with the increase
in oil and gas sales. As a percentage of oil and gas sales, these expenses
decreased to 26.3% for the six months ended June 30, 2003 from 34.3% for
the six months ended June 30, 2002. This percentage decrease was primarily
due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $36,179 (34.8%) for the six months ended June 30, 2003 as
compared to the six months ended June 30, 2002. This increase was primarily
due to the abandonment of one significant well during the six months ended
June 30, 2003 due to severe mechanical problems. The 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 reserves. As a percentage of
oil and gas sales, this expense decreased to 9.4% for the six months ended
June 30, 2003 from 12.1% for the six months ended June 30,2002. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
six months ended June 30, 2003 and 2002. As a percentage of oil and gas
sales, these expenses decreased to 9.5% for the six months ended June 30,
2003 from 16.4% for the six months ended June 30, 2002. This percentage
decrease was primarily due to the increase in oil and gas sales.
-59-
The Limited Partners have received cash distributions through June 30,
2003 totaling $17,658,904 or 79.73% of Limited Partners' capital
contributions.
-60-
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.
-61-
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
99.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 for the III-A
Partnership.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 for the III-B
Partnership.
99.3 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 for the III-C
Partnership.
99.4 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 for the III-D
Partnership.
99.5 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 for the III-E
Partnership.
99.6 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002 for the III-F
Partnership.
(b) Reports on Form 8-K.
None.
-62-
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
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: August 13, 2003 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 13, 2003 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
-63-
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
-64-
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 13th day of August, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief Executive Officer)
-65-
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
-66-
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 13th day of August, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-67-
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
-68-
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 13th day of August, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief Executive Officer)
-69-
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
-70-
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 13th day of August, 2003.
//s// Craig D. Loseke
- ----------------------------------
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-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
-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 13th day of August, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief 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-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
-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 13th day of August, 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-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
-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 13th day of August, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief 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-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
-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 13th day of August, 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-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
-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 13th day of August, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief 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-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
-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 13th day of August, 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-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
-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 13th day of August, 2003.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief 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-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
-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 13th day of August, 2003.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Accounting Officer
(Principal Financial Officer)
-87-
INDEX TO EXHIBITS
-----------------
Exh.
No. Exhibit
- ---- -------
99.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-A.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-B.
99.3 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-C.
99.4 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-D.
99.5 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-E.
99.6 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership III-F.