August 18, 2004 TO: All Limited Partners in the Geodyne Energy Income Limited Partnership III-D RE: Election to extend term of Partnership As previously described to you, the limited partnership agreement (the "Agreement") for the Geodyne Energy Income III-D Limited Partnership (the "Partnership") provides that the Partnership will automatically terminate and dissolve on September 5, 2004. The Agreement gives Geodyne Resources, Inc., as General Partner, an option to extend the term of the Partnership for up to five additional two year terms. Four years ago Geodyne exercised the first such extension, and two years ago exercised the second such extension. The General Partner is hereby notifying you that it has decided to extend the term of the Partnership until December 31, 2005. Accordingly, the new termination date for the Partnership will be December 31, 2005. If you have any questions concerning the Partnership's extension, please contact Geodyne Investor Services at 918-583-1791 or 888-436-3963. Very truly yours, GEODYNE RESOURCES, INC. General Partner Dennis R. Neill President