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 September 30, 2005
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
------ ------
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
Yes No X
------ ------
-1-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,016,002 $1,038,719
Accounts receivable:
Oil and gas sales 797,869 588,829
---------- ----------
Total current assets $1,813,871 $1,627,548
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 786,543 761,804
DEFERRED CHARGE 191,686 187,958
---------- ----------
$2,792,100 $2,577,310
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 175,772 $ 84,554
Gas imbalance payable 23,073 26,709
Asset retirement obligation -
current (Note 1) 5,357 18,336
---------- ----------
Total current liabilities $ 204,202 $ 129,599
LONG-TERM LIABILITIES:
Accrued liability $ 24,784 $ 28,718
Asset retirement obligation
(Note 1) 232,917 96,619
---------- ----------
Total long-term liabilities $ 257,701 $ 125,337
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 80,213) ($ 88,506)
Limited Partners, issued and
outstanding, 263,976 units 2,410,410 2,410,880
---------- ----------
Total Partners' capital $2,330,197 $2,322,374
---------- ----------
$2,792,100 $2,577,310
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $1,208,182 $1,024,984
Interest income 5,169 1,579
---------- ----------
$1,213,351 $1,026,563
COSTS AND EXPENSES:
Lease operating $ 192,726 $ 104,716
Production tax 105,519 84,577
Depreciation, depletion, and
amortization of oil and gas
properties 59,883 26,320
General and administrative
(Note 2) 74,220 73,946
---------- ----------
$ 432,348 $ 289,559
---------- ----------
NET INCOME $ 781,003 $ 737,004
========== ==========
GENERAL PARTNER - NET INCOME $ 82,973 $ 75,911
========== ==========
LIMITED PARTNERS - NET INCOME $ 698,030 $ 661,093
========== ==========
NET INCOME per unit $ 2.65 $ 2.50
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $3,378,280 $3,115,672
Interest income 13,159 3,770
Gain on sale of oil and gas
properties - 1,399
---------- ----------
$3,391,439 $3,120,841
COSTS AND EXPENSES:
Lease operating $ 571,220 $ 375,591
Production tax 303,347 260,081
Depreciation, depletion, and
amortization of oil and gas
properties 106,691 151,189
General and administrative
(Note 2) 242,607 242,120
---------- ----------
$1,223,865 $1,028,981
---------- ----------
NET INCOME $2,167,574 $2,091,860
========== ==========
GENERAL PARTNER - NET INCOME $ 225,044 $ 222,416
========== ==========
LIMITED PARTNERS - NET INCOME $1,942,530 $1,869,444
========== ==========
NET INCOME per unit $ 7.36 $ 7.08
========== ==========
UNITS OUTSTANDING 263,976 263,976
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,167,574 $2,091,860
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 106,691 151,189
Gain on sale of oil and gas
properties - ( 1,399)
Settlement of asset retirement
obligation - ( 165)
Increase in accounts receivable -
oil and gas sales ( 209,040) ( 130,994)
(Increase) decrease in deferred
charge ( 3,728) 4,843
Increase in accounts payable 101,448 3,342
Decrease in gas imbalance
payable ( 3,636) ( 1,385)
Decrease in accrued liability ( 3,934) ( 3,508)
---------- ----------
Net cash provided by operating
activities $2,155,375 $2,113,783
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 18,341) ($ 68,800)
Proceeds from sale of oil and gas
properties - 375
---------- ----------
Net cash used by investing activities ($ 18,341) ($ 68,425)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,159,751) ($1,824,701)
---------- ----------
Net cash used by financing activities ($2,159,751) ($1,824,701)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 22,717) $ 220,657
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,038,719 804,593
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,016,002 $1,025,250
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 515,168 $ 556,249
Accounts receivable:
Oil and gas sales 408,944 300,554
---------- ----------
Total current assets $ 924,112 $ 856,803
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 418,641 402,168
DEFERRED CHARGE 123,389 120,451
---------- ----------
$1,466,142 $1,379,422
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 110,689 $ 55,739
Gas imbalance payable 13,335 14,760
Asset retirement obligation -
current (Note 1) 49,771 31,869
---------- ----------
Total current liabilities $ 173,795 $ 102,368
LONG-TERM LIABILITIES:
Accrued liability $ 7,302 $ 9,828
Asset retirement obligation
(Note 1) 116,157 47,996
---------- ----------
Total long-term liabilities $ 123,459 $ 57,824
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 54,034) ($ 58,429)
Limited Partners, issued and
outstanding, 138,336 units 1,222,922 1,277,659
---------- ----------
Total Partners' capital $1,168,888 $1,219,230
---------- ----------
$1,466,142 $1,379,422
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
-------- --------
REVENUES:
Oil and gas sales $638,006 $545,780
Interest income 2,603 744
-------- --------
$640,609 $546,524
COSTS AND EXPENSES:
Lease operating $126,663 $ 65,180
Production tax 58,331 47,089
Depreciation, depletion, and
amortization of oil and gas
properties 49,492 14,326
General and administrative
(Note 2) 39,997 39,806
-------- --------
$274,483 $166,401
-------- --------
NET INCOME $366,126 $380,123
======== ========
GENERAL PARTNER - NET INCOME $ 61,458 $ 58,912
======== ========
LIMITED PARTNERS - NET INCOME $304,668 $321,211
======== ========
NET INCOME per unit $ 2.20 $ 2.32
======== ========
UNITS OUTSTANDING 138,336 138,336
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $1,768,452 $1,587,512
Interest income 6,537 1,763
---------- ----------
$1,774,989 $1,589,275
COSTS AND EXPENSES:
Lease operating $ 350,311 $ 234,273
Production tax 169,937 139,400
Depreciation, depletion, and
amortization of oil and gas
properties 66,447 90,345
General and administrative
(Note 2) 139,370 137,573
---------- ----------
$ 726,065 $ 601,591
---------- ----------
NET INCOME $1,048,924 $ 987,684
========== ==========
GENERAL PARTNER - NET INCOME $ 165,661 $ 160,536
========== ==========
LIMITED PARTNERS - NET INCOME $ 883,263 $ 827,148
========== ==========
NET INCOME per unit $ 6.38 $ 5.98
========== ==========
UNITS OUTSTANDING 138,336 138,336
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,048,924 $ 987,684
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 66,447 90,345
Settlement of asset retirement
obligation - ( 109)
Increase in accounts receivable -
oil and gas sales ( 108,390) ( 70,916)
(Increase) decrease in deferred
charge ( 2,938) 4,633
Increase (decrease) in accounts
payable 61,208 ( 882)
Decrease in gas imbalance
payable ( 1,425) ( 777)
Decrease in accrued liability ( 2,526) ( 2,899)
---------- ----------
Net cash provided by operating
activities $1,061,300 $1,007,079
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 3,115) ($ 46,537)
---------- ----------
Net cash used by investing
activities ($ 3,115) ($ 46,537)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,099,266) ($ 866,021)
---------- ----------
Net cash used by financing
activities ($1,099,266) ($ 866,021)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 41,081) $ 94,521
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 556,249 417,271
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 515,168 $ 511,792
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 948,335 $ 682,792
Accounts receivable:
Oil and gas sales 782,278 583,009
---------- ----------
Total current assets $1,730,613 $1,265,801
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,571,323 1,475,924
DEFERRED CHARGE 54,713 48,684
---------- ----------
$3,356,649 $2,790,409
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 117,313 $ 123,591
Gas imbalance payable 75,980 83,181
Asset retirement obligation -
current (Note 1) 54,470 38,950
---------- ----------
Total current liabilities $ 247,763 $ 245,722
LONG-TERM LIABILITIES:
Accrued liability $ 126,614 $ 170,532
Asset retirement obligation
(Note 1) 371,931 165,722
---------- ----------
Total long-term liabilities $ 498,545 $ 336,254
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 116,465) ($ 136,932)
Limited Partners, issued and
outstanding, 244,536 units 2,726,806 2,345,365
---------- ----------
Total Partners' capital $2,610,341 $2,208,433
---------- ----------
$3,356,649 $2,790,409
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $1,123,255 $691,851
Interest income 5,084 1,316
---------- --------
$1,128,339 $693,167
COSTS AND EXPENSES:
Lease operating $ 162,741 $160,910
Production tax 75,937 48,473
Depreciation, depletion, and
amortization of oil and gas
properties 107,341 196,749
General and administrative
(Note 2) 68,276 68,067
---------- --------
$ 414,295 $474,199
---------- --------
NET INCOME $ 714,044 $218,968
========== ========
GENERAL PARTNER - NET INCOME $ 80,557 $ 39,473
========== ========
LIMITED PARTNERS - NET INCOME $ 633,487 $179,495
========== ========
NET INCOME per unit $ 2.59 $ 0.74
========== ========
UNITS OUTSTANDING 244,536 244,536
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ------------
REVENUES:
Oil and gas sales $3,060,079 $2,420,732
Interest income 11,425 3,215
Loss on sale of oil and gas
properties - ( 891)
Other income 2,541 -
---------- ----------
$3,074,045 $2,423,056
COSTS AND EXPENSES:
Lease operating $ 402,267 $ 427,884
Production tax 210,108 169,447
Depreciation, depletion, and
amortization of oil and gas
properties 201,128 307,239
General and administrative
(Note 2) 225,907 225,268
---------- ----------
$1,039,410 $1,129,838
---------- ----------
NET INCOME $2,034,635 $1,293,218
========== ==========
GENERAL PARTNER - NET INCOME $ 220,194 $ 156,652
========== ==========
LIMITED PARTNERS - NET INCOME $1,814,441 $1,136,566
========== ==========
NET INCOME per unit $ 7.42 $ 4.65
========== ==========
UNITS OUTSTANDING 244,536 244,536
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,034,635 $1,293,218
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 201,128 307,239
Loss on sale of oil and gas
properties - 891
Settlement of asset retirement
obligation - ( 131)
Increase in accounts receivable -
oil and gas sales ( 199,269) ( 21,459)
(Increase) decrease in deferred
charge ( 6,029) 1,209
Increase in accounts payable 20,673 39,553
Increase (decrease) in gas
imbalance payable ( 7,201) 47,849
Decrease in accrued liability ( 43,918) ( 23,630)
---------- ----------
Net cash provided by operating
activities $2,000,019 $1,644,739
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 101,749) ($ 107,464)
---------- ----------
Net cash used by investing
activities ($ 101,749) ($ 107,464)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,632,727) ($1,429,401)
---------- ----------
Net cash used by financing
activities ($1,632,727) ($1,429,401)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 265,543 $ 107,874
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 682,792 711,441
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 948,335 $ 819,315
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 534,351 $ 432,834
Accounts receivable:
Oil and gas sales 438,695 340,185
---------- ----------
Total current assets $ 973,046 $ 773,019
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 631,934 589,161
DEFERRED CHARGE 12,725 8,429
---------- ----------
$1,617,705 $1,370,609
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 69,453 $ 131,321
Gas imbalance payable 41,607 41,607
Asset retirement obligation -
current (Note 1) 5,857 11,975
---------- ----------
Total current liabilities $ 116,917 $ 184,903
LONG-TERM LIABILITIES:
Accrued liability $ 162,240 $ 191,685
Asset retirement obligation
(Note 1) 179,422 97,207
---------- ----------
Total long-term liabilities $ 341,662 $ 288,892
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 40,173) ($ 55,158)
Limited Partners, issued and
outstanding, 131,008 units 1,199,299 951,972
---------- ----------
Total Partners' capital $1,159,126 $ 896,814
---------- ----------
$1,617,705 $1,370,609
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
-------- ----------
REVENUES:
Oil and gas sales $647,801 $397,237
Interest income 2,755 979
-------- --------
$650,556 $398,216
COSTS AND EXPENSES:
Lease operating $ 96,970 $115,595
Production tax 44,634 28,056
Depreciation, depletion, and
amortization of oil and gas
properties 37,605 11,942
General and administrative
(Note 2) 37,365 41,178
-------- --------
$216,574 $196,771
-------- --------
INCOME FROM CONTINUING OPERATIONS $433,982 $201,445
Loss from discontinued
operations (Note 3) - ( 67,866)
-------- --------
NET INCOME $433,982 $133,579
======== ========
GENERAL PARTNER - NET INCOME $ 46,508 $ 14,335
======== ========
LIMITED PARTNERS - NET INCOME $387,474 $119,244
======== ========
NET INCOME per unit $ 2.95 $ 0.91
======== ========
UNITS OUTSTANDING 131,008 131,008
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ------------
REVENUES:
Oil and gas sales $1,739,907 $1,390,879
Interest income 6,341 2,082
Loss on sale of oil and gas
properties - ( 128)
Other income 364 -
---------- ----------
$1,746,612 $1,392,833
COSTS AND EXPENSES:
Lease operating $ 235,929 $ 234,776
Production tax 119,622 98,090
Depreciation, depletion, and
amortization of oil and gas
properties 77,488 72,799
General and administrative
(Note 2) 132,868 135,363
---------- ----------
$ 565,907 $ 541,028
---------- ----------
INCOME FROM CONTINUING OPERATIONS $1,180,705 $ 851,805
Loss from discontinued
operations (Note 3) - ( 88,868)
Gain on disposal of discontinued
operations (Note 3) - 10,368
---------- ----------
NET INCOME $1,180,705 $ 773,305
========== ==========
GENERAL PARTNER - NET INCOME $ 124,378 $ 83,928
========== ==========
LIMITED PARTNERS - NET INCOME $1,056,327 $ 689,377
========== ==========
NET INCOME per unit $ 8.06 $ 5.26
========== ==========
UNITS OUTSTANDING 131,008 131,008
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,180,705 $773,305
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 77,488 75,617
Loss on sale of oil and gas
properties - 128
Settlement of asset retirement
obligation - ( 17)
Gain on disposal of discontinued
operations (Note 3) - ( 10,368)
(Increase) decrease in accounts
receivable - oil and gas sales ( 98,510) 59,778
(Increase) decrease in deferred
charge ( 4,296) 827
Increase (decrease) in accounts
payable ( 61,449) 69,375
Increase in gas imbalance
payable - 39,484
Decrease in accrued liability ( 29,445) ( 42,232)
---------- --------
Net cash provided by operating
activities $1,064,493 $965,897
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 44,583) ($ 15,830)
Proceeds from the disposal of
discontinued operations (Note 3) - 88,586
---------- --------
Net cash provided (used) by investing
activities ($ 44,583) $ 72,756
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 918,393) ($990,861)
---------- --------
Net cash used by financing
activities ($ 918,393) ($990,861)
---------- --------
-17-
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 101,517 $ 47,792
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 432,834 438,562
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 534,351 $486,354
========== ========
The accompanying condensed notes are an integral part of
these financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,198,331 $1,413,497
Accounts receivable:
Oil and gas sales 1,058,890 849,754
---------- ----------
Total current assets $2,257,221 $2,263,251
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,000,310 1,942,054
DEFERRED CHARGE 39,643 48,978
---------- ----------
$4,297,174 $4,254,283
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 249,598 $ 768,152
Gas imbalance payable 6,129 5,643
Asset retirement obligation -
current (Note 1) 13,427 28,411
---------- ----------
Total current liabilities $ 269,154 $ 802,206
LONG-TERM LIABILITIES:
Accrued liability $ 279,193 $ 301,594
Asset retirement obligation
(Note 1) 442,960 188,764
---------- ----------
Total long-term liabilities $ 722,153 $ 490,358
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 233,052) ($ 316,058)
Limited Partners, issued and
outstanding, 418,266 units 3,538,919 3,277,777
---------- ----------
Total Partners' capital $3,305,867 $2,961,719
---------- ----------
$4,297,174 $4,254,283
========== ==========
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 THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ------------
REVENUES:
Oil and gas sales $1,536,728 $1,103,595
Interest income 6,320 3,659
---------- ----------
$1,543,048 $1,107,254
COSTS AND EXPENSES:
Lease operating $ 266,727 $ 236,393
Production tax 105,418 80,003
Depreciation, depletion, and
amortization of oil and gas
properties 152,237 67,474
General and administrative
(Note 2) 116,113 119,719
---------- ----------
$ 640,495 $ 503,589
---------- ----------
NET INCOME FROM CONTINUING OPERATIONS $ 902,553 $ 603,665
Loss from discontinued
operations (Note 3) - ( 484,339)
---------- ----------
NET INCOME $ 902,553 $ 119,326
========== ==========
GENERAL PARTNER - NET INCOME $ 103,324 $ 17,640
========== ==========
LIMITED PARTNERS - NET INCOME $ 799,229 $ 101,686
========== ==========
NET INCOME per unit $ 1.91 $ 0.24
========== ==========
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 OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ------------
REVENUES:
Oil and gas sales $4,107,355 $3,371,556
Interest income 16,821 7,071
---------- ----------
$4,124,176 $3,378,627
COSTS AND EXPENSES:
Lease operating $ 755,457 $ 691,008
Production tax 283,604 233,838
Depreciation, depletion, and
amortization of oil and gas
properties 237,932 136,694
General and administrative
(Note 2) 370,657 375,998
---------- ----------
$1,647,650 $1,437,538
---------- ----------
NET INCOME FROM CONTINUING OPERATIONS $2,476,526 $1,941,089
Loss from discontinued
operations (Note 3) - ( 633,223)
Gain on disposal of discontinued
operations (Note 3) - 88,757
---------- ----------
NET INCOME $2,476,526 $1,396,623
========== ==========
GENERAL PARTNER - NET INCOME $ 267,384 $ 152,989
========== ==========
LIMITED PARTNERS - NET INCOME $2,209,142 $1,243,634
========== ==========
NET INCOME per unit $ 5.28 $ 2.97
========== ==========
UNITS OUTSTANDING 418,266 418,266
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,476,526 $1,396,623
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 237,932 155,929
Settlement of asset retirement
obligation ( 345) -
Gain on disposal of discontinued
operations (Note 3) - ( 88,757)
(Increase) decrease in accounts
receivable - oil and gas sales ( 209,136) 367,466
Decrease in deferred charge 9,335 901
Increase (decrease) in accounts
payable ( 549,992) 273,738
Increase in gas imbalance payable 486 -
Decrease in accrued liability ( 22,401) ( 38,937)
---------- ----------
Net cash provided by operating
activities $1,942,405 $2,066,963
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 27,202) ($ 139,581)
Proceeds from oil and gas properties 2,009 -
Proceeds from disposal of
discontinued operations (Note 3) - 632,221
---------- ----------
Net cash provided (used) by investing
activities ($ 25,193) $ 492,640
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,132,378) ($2,842,231)
---------- ----------
Net cash used by financing activities ($2,132,378) ($2,842,231)
---------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 215,166) ($ 282,628)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,413,497 1,513,224
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,198,331 $1,230,596
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 794,230 $ 696,460
Accounts receivable:
Oil and gas sales 720,409 548,005
---------- ----------
Total current assets $1,514,639 $1,244,465
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,731,520 1,727,931
DEFERRED CHARGE 17,337 21,947
---------- ----------
$3,263,496 $2,994,343
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 108,999 $ 92,446
Gas imbalance payable 5,120 4,721
Asset retirement obligation -
current (Note 1) 4,332 8,552
---------- ----------
Total current liabilities $ 118,451 $ 105,719
LONG-TERM LIABILITIES:
Accrued liability $ 95,107 $ 105,877
Asset retirement obligation
(Note 1) 261,135 141,647
---------- ----------
Total long-term liabilities $ 356,242 $ 247,524
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 132,018) ($ 142,055)
Limited Partners, issued and
outstanding, 221,484 units 2,920,821 2,783,155
---------- ----------
Total Partners' capital $2,788,803 $2,641,100
---------- ----------
$3,263,496 $2,994,343
========== ==========
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 THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- --------
REVENUES:
Oil and gas sales $1,020,539 $752,555
Interest income 4,016 921
---------- --------
$1,024,555 $753,476
COSTS AND EXPENSES:
Lease operating $ 153,939 $143,065
Production tax 54,686 41,096
Depreciation, depletion, and
amortization of oil and gas
properties 54,598 54,989
General and administrative
(Note 2) 62,266 62,009
---------- --------
$ 325,489 $301,159
---------- --------
NET INCOME $ 699,066 $452,317
========== ========
GENERAL PARTNER - NET INCOME $ 36,936 $ 24,770
========== ========
LIMITED PARTNERS - NET INCOME $ 662,130 $427,547
========== ========
NET INCOME per unit $ 2.99 $ 1.93
========== ========
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 OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $2,651,628 $2,107,070
Interest income 10,027 2,294
---------- ----------
$2,661,655 $2,109,364
COSTS AND EXPENSES:
Lease operating $ 437,574 $ 420,092
Production tax 141,972 113,825
Depreciation, depletion, and
amortization of oil and gas
properties 132,003 112,987
General and administrative
(Note 2) 207,533 206,764
---------- ----------
$ 919,082 $ 853,668
---------- ----------
NET INCOME $1,742,573 $1,255,696
========== ==========
GENERAL PARTNER - NET INCOME $ 91,907 $ 67,190
========== ==========
LIMITED PARTNERS - NET INCOME $1,650,666 $1,188,506
========== ==========
NET INCOME per unit $ 7.45 $ 5.37
========== ==========
UNITS OUTSTANDING 221,484 221,484
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,742,573 $1,255,696
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 132,003 112,987
Increase in accounts receivable
- oil and gas sales ( 172,404) ( 114,129)
Decrease in deferred charge 4,610 366
Increase (decrease) in accounts
payable 16,646 ( 10,288)
Increase in gas imbalance
payable 399 -
Decrease in accrued liability ( 10,770) ( 23,327)
---------- ----------
Net cash provided by operating
activities $1,713,057 $1,221,305
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 22,735) ($ 100,813)
Proceeds from the sale of oil
and gas properties 2,318 7,448
---------- ----------
Net cash used by investing
activities ($ 20,417) ($ 93,365)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,594,870) ($1,031,681)
---------- ----------
Net cash used by financing
activities ($1,594,870) ($1,031,681)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 97,770 $ 96,259
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 696,460 521,918
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 794,230 $ 618,177
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-26-
GEODYNE ENERGY INCOME PROGRAM III LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 2005, statements of operations for
the three and nine months ended September 30, 2005 and 2004, and
statements of cash flows for the nine months ended September 30, 2005 and
2004 have been prepared by Geodyne Resources, Inc., the General Partner of
the Partnerships (the "General Partner"), without audit. In the opinion of
management the financial statements referred to above include all
necessary adjustments, consisting of normal recurring adjustments, to
present fairly the financial position at September 30, 2005, the results
of operations for the three and nine months ended September 30, 2005 and
2004, and the cash flows for the nine months ended September 30, 2005 and
2004.
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, 2004. The
results of operations for the period ended September 30, 2005 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.
DISCONTINUED OPERATIONS
-----------------------
As further described in Note 3, the III-D and III-E Partnerships sold all
of their oil and gas assets held in the Jay-Little Escambia Creek Field
("Jay Field") on May 12, 2004 at a large public oil and gas auction.
-27-
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion, of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties are held by the General
Partner.
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.
ASSET RETIREMENT OBLIGATIONS
----------------------------
The Partnerships' wells must be properly plugged and abandoned after their
oil and gas reserves are exhausted. The Partnerships follow FAS No. 143,
"Accounting for Asset Retirement Obligations" in accounting for the future
expenditures that will be necessary to plug and abandon these wells. FAS
No. 143 requires the estimated plugging and abandonment obligations to be
recognized in the period in which they are incurred (i.e. when the well is
drilled or acquired) if a reasonable estimate of fair value can be made
and to be capitalized as part of the carrying amount of the well.
Estimated abandonment dates will be revised in the future based on changes
to related economic lives, which vary with product prices and production
costs. Estimated plugging costs may also be adjusted to reflect changing
industry experience. The Partnerships' asset retirement obligations were
revised upward for the three months ended
-28-
September 30, 2005 due to an increase in both the labor and rig costs
associated with plugging wells. Cash flows would not be affected until
wells are actually plugged and abandoned.
The asset retirement obligation will be adjusted upwards each quarter in
order to recognize accretion of the time-related discount factor. For the
nine months ended September 30, 2005, the III-A, III-B, III-C, III-D,
III-E, and III-F Partnerships recognized approximately $44,000, $41,000,
$83,000, $29,000, $88,000, and $26,000, 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.
The components of the change in asset retirement obligations for the three
and nine months ended September 30, 2005 and 2004 are as shown below.
III-A Partnership
-----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $117,256 $112,025
Additions and revisions 115,243 -
Accretion expense 5,775 945
-------- --------
Total Asset Retirement
Obligation, End of Quarter $238,274 $112,970
======== ========
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $114,955 $114,993
Additions and revisions 115,243 -
Settlements and disposals - ( 4,865)
Accretion expense 8,076 2,842
-------- --------
Total Asset Retirement
Obligation, End of Period $238,274 $112,970
======== ========
Asset Retirement Obligation -
Current $ 5,357 $ 16,604
Asset Retirement Obligation -
Long-Term 232,917 96,366
-29-
III-B Partnership
-----------------
Three Months Three Months
Ended Ended
9/30/2005 b9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $ 81,447 $ 80,077
Additions and revisions 80,508 -
Accretion expense 3,973 17
-------- --------
Total Asset Retirement
Obligation, End of Quarter $165,928 $ 80,094
======== ========
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $ 79,865 $ 83,211
Additions and revisions 80,508 -
Settlements and disposals - ( 3,209)
Accretion expense 5,555 92
-------- --------
Total Asset Retirement
Obligation, End of Period $165,928 $ 80,094
======== ========
Asset Retirement Obligation -
Current $ 49,771 $ 30,779
Asset Retirement Obligation -
Long-Term 116,157 49,315
III-C Partnership
-----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $209,962 $198,939
Additions and revisions 206,049 22
Settlements and disposals - ( 131)
Accretion expense 10,390 1,693
-------- --------
Total Asset Retirement
Obligation, End of Quarter $426,401 $200,523
======== ========
-30-
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $204,672 $194,453
Additions and revisions 207,132 1,044
Settlements and disposals - ( 131)
Accretion expense 14,597 5,157
-------- --------
Total Asset Retirement
Obligation, End of Period $426,401 $200,523
======== ========
Asset Retirement Obligation -
Current $ 54,470 $ 34,286
Asset Retirement Obligation -
Long-Term 371,931 166,237
III-D Partnership
-----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $111,537 $105,878
Additions and revisions 69,849 3
Settlements and disposals - ( 17)
Accretion expense 3,893 838
-------- --------
Total Asset Retirement
Obligation, End of Quarter $185,279 $106,702
======== ========
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $109,182 $314,031
Additions and revisions 70,004 149
Settlements and disposals - ( 17)
Accretion expense 6,093 5,366
Discontinued operations - ( 212,827)
-------- --------
Total Asset Retirement
Obligation, End of Period $185,279 $106,702
======== ========
Asset Retirement Obligation -
Current $ 5,857 $ 11,890
Asset Retirement Obligation -
Long-Term 179,422 94,812
-31-
III-E Partnership
-----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $216,248 $ 217,719
Additions and revisions 228,882
Settlements and disposals - -
Accretion expense 11,257 1,583
-------- ----------
Total Asset Retirement
Obligation, End of Quarter $456,387 $ 219,302
======== ==========
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $217,175 $1,768,863
Additions and revisions 228,882 -
Settlements and disposals ( 5,091) -
Accretion expense 15,421 24,042
Discontinued operations - ( 1,573,603)
-------- ----------
Total Asset Retirement
Obligation, End of Period $456,387 $ 219,302
======== ==========
Asset Retirement Obligation -
Current $ 13,427 $ 23,221
Asset Retirement Obligation -
Long-Term 442,960 196,081
III-F Partnership
-----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $153,610 $ 146,070
Additions and revisions 105,768 -
Accretion expense 6,089 1,521
-------- ----------
Total Asset Retirement
Obligation, End of Quarter $265,467 $ 147,591
======== ==========
-32-
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $150,199 $ 142,977
Additions and revisions 105,768 -
Accretion expense 9,500 4,614
-------- ----------
Total Asset Retirement
Obligation, End of Period $265,467 $ 147,591
======== ==========
Asset Retirement Obligation -
Current $ 4,332 $ 4,485
Asset Retirement Obligation -
Long-Term 261,135 143,106
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' partnership agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended September 30, 2005, the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
III-A $ 4,752 $ 69,468
III-B 3,592 36,405
III-C 3,923 64,353
III-D 2,889 34,476
III-E 6,043 110,070
III-F 3,982 58,284
During the nine months ended September 30, 2005, the following payments
were made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
III-A $34,203 $208,404
III-B 30,155 109,215
III-C 32,848 193,059
III-D 29,440 103,428
III-E 40,447 330,210
III-F 32,681 174,852
-33-
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.
3. DISCONTINUED OPERATIONS
-----------------------
On May 12, 2004, the III-D and III-E Partnerships sold all of their
interests in the Jay Field located in Santa Rosa County, Florida at a
large public oil and gas auction for approximately $721,000, subject to
standard transaction requirements and adjustments. These proceeds were
allocated approximately $89,000 and $632,000, respectively, to the III-D
and III-E Partnerships. This represents the sale of all oil and gas assets
held by the III-D and III-E Partnerships in the Jay Field and is therefore
a disposal of a business segment under Statement of Financial Accounting
Standards No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets" (FAS 144). The sale resulted in a gain on disposal of
discontinued operations of approximately $10,000 and $89,000,
respectively, for the III-D and III-E Partnerships. Accordingly, prior
year results of the Jay Field segment have been classified as
discontinued.
Results from discontinued operations for the three and nine months ended
September 30, 2004 were as follows:
III-D Partnership
-----------------
Three Months Nine months
Ended Ended
9/30/2004 9/30/2004
------------ ------------
Oil and gas sales ($ 46) $149,190
Lease operating ( 67,798) ( 225,400)
Production tax ( 22) ( 9,840)
Depreciation, depletion, and
amortization of oil and gas
properties - ( 2,818)
------- --------
Loss from discontinued
operations ($67,866) ($ 88,868)
======= ========
-34-
III-E Partnership
-----------------
Three Months Nine months
Ended Ended
9/30/2004 9/30/2004
------------ ------------
Oil and gas sales ($ 328) $1,064,866
Lease operating ( 483,855) ( 1,608,617)
Production tax ( 156) ( 70,237)
Depreciation, depletion, and
amortization of oil and gas
properties - ( 19,235)
-------- ----------
Loss from discontinued
operations ($484,339) ($ 633,223)
======== ==========
-35-
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.
DISCONTINUED OPERATIONS
- -----------------------
The III-D and III-E Partnerships owned working interests in the Jay Field
located in Santa Rosa County, Florida. 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 oil (in particular) and natural gas 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 2004 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
significantly exceeded the operator's original cost estimates. The
operator notified the working interest owners that
-36-
additional costs would be incurred in order to plug several wells. As a
result of these costs, cash flow from this property had been reduced and
at times had been negative. This property is very sensitive to changes in
oil prices and production volumes.
In May 2004, the III-D and III-E Partnerships sold all of their interests
in the Jay Field and the disposal was treated as a discontinued operation.
The sales proceeds consisting of approximately $89,000 and $632,000,
respectively, were included in the August 15, 2004 cash distributions to
the III-D and III-E Partnerships. The sale of the Jay Field interests will
impact the continuing future operations of the III-D and III-E
Partnerships. It is anticipated that these Partnerships will have lower
lease operating costs, lower oil and gas sales, and a reduction in their
asset retirement obligations. The reader should refer to Note 3 -
Discontinued Operations to the consolidated financial statements included
in PART I, ITEM 1 of this Quarterly Report on Form 10-Q for additional
information regarding this matter.
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.
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:
-37-
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 September 30, 2005 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, however, reduce or eliminate cash available for a particular
quarterly distribution.
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 Partnerships for their
fourth 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 4 November 22, 2007
III-B January 24, 2000 4 December 31, 2007
III-C February 28, 2000 4 December 31, 2007
III-D September 5, 2000 4 December 31, 2007
III-E December 26, 2000 4 December 31, 2007
III-F March 7, 2001 4 December 31, 2007
-38-
In May 2004 the III-D and III-E Partnerships sold their working interests
in the Jay Field located in Santa Rosa County, Florida. A routine audit by
an unaffiliated non-operator of joint interest billings after the
effective date of the sale resulted in the III-D and III-E Partnerships
making additional expense payments of approximately $68,000 and $484,000,
respectively, for costs represented to have been incurred before the
effective date of the sale. However, the General Partner's independent
review of the expenses revealed that approximately $30,000 and $215,000,
respectively, paid by the III-D and III-E Partnerships were actually not
applicable to periods before the effective date of the sale and were
therefore improper. The General Partner has demanded that the purchaser
return the excess payments to the III-D and III-E Partnerships; however,
the purchaser has ignored these demands. The General Partner intends to
initiate litigation in order to recover the overpaid expenses.
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.
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 unit-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.
-39-
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 estimated 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 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.
-40-
ASSET RETIREMENT OBLIGATIONS
- ----------------------------
The Partnerships' wells must be properly plugged and abandoned after their
oil and gas reserves are exhausted. The Partnerships follow FAS No. 143,
"Accounting for Asset Retirement Obligations" in accounting for the future
expenditures that will be necessary to plug and abandon these wells. FAS
No. 143 requires the estimated plugging and abandonment obligations to be
recognized in the period in which they are incurred (i.e. when the well is
drilled or acquired) if a reasonable estimate of fair value can be made
and to be capitalized as part of the carrying amount of the well.
NEW ACCOUNTING PRONOUNCEMENTS
- -----------------------------
The Partnerships are not aware of any recently issued accounting
pronouncements that would have an impact on the Partnerships' future
results of operations and financial position.
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
-41-
gas volume to differ from the reserve reports prepared by the General
Partner.
III-A Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 123,403 3,772,737
Production ( 8,034) ( 108,487)
Extensions and discoveries 774 12,699
Revisions of previous
estimates 3,094 69,293
------- ---------
Proved reserves, March 31, 2005 119,237 3,746,242
Production ( 8,162) ( 105,753)
Extensions and discoveries 206 1,490
Revisions of previous
estimates ( 3,749) ( 5,379)
------- ---------
Proved reserves, June 30, 2005 107,532 3,636,600
Production ( 8,206) ( 89,344)
Extensions and discoveries 102 2,052
Revisions of previous
estimates 4,869 118,783
------- ---------
Proved reserves, Sept. 30, 2005 104,297 3,668,091
======= =========
-42-
III-B Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 74,694 1,557,071
Production ( 5,398) ( 44,794)
Extensions and discoveries 502 6,191
Revisions of previous
estimates 2,659 27,821
------ ---------
Proved reserves, March 31, 2005 72,457 1,546,289
Production ( 5,712) ( 45,921)
Extensions and discoveries 135 861
Revisions of previous
estimates ( 2,343) ( 17,857)
------ ---------
Proved reserves, June 30, 2005 64,537 1,483,372
Production ( 5,623) ( 38,044)
Extensions and discoveries 64 911
Revisions of previous
estimates 3,784 50,798
------ ---------
Proved reserves, Sept. 30, 2005 62,762 1,497,037
====== =========
-43-
III-C Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 81,674 4,632,503
Production ( 2,469) ( 134,206)
Extensions and discoveries 39 55,001
Revisions of previous
estimates 7,915 102,271
------ ---------
Proved reserves, March 31, 2005 87,159 4,655,569
Production ( 2,286) ( 143,514)
Extensions and discoveries 105 64,663
Revisions of previous
estimates 3,431 173,523
------ ---------
Proved reserves, June 30, 2005 88,409 4,750,241
Production ( 2,541) ( 136,692)
Extensions and discoveries 686 47,310
Revisions of previous
estimates 7,973 205,093
------ ---------
Proved reserves, Sept. 30, 2005 94,527 4,865,952
====== =========
-44-
III-D Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 81,073 2,409,961
Production ( 2,399) ( 76,715)
Extensions and discoveries 4 7,610
Revisions of previous
estimates 6,793 54,632
------ ---------
Proved reserves, March 31, 2005 85,471 2,395,488
Production ( 2,101) ( 75,890)
Extensions and discoveries 69 6,673
Revisions of previous
estimates ( 105) 132,644
------ ---------
Proved reserves, June 30, 2005 83,334 2,458,915
Production ( 2,069) ( 71,544)
Extensions and discoveries 317 28,622
Revisions of previous
estimates 5,614 125,700
------ ---------
Proved reserves, Sept. 30, 2005 87,196 2,541,693
====== =========
-45-
III-E Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- ------------
Proved reserves, Dec. 31, 2004 158,508 6,440,079
Production ( 6,185) ( 172,223)
Extensions and discoveries 11 2,322
Revisions of previous
estimates 6,975 59,406
------- ---------
Proved reserves, March 31, 2005 159,309 6,329,584
Production ( 6,195) ( 172,213)
Extensions and discoveries 10,189 34,407
Revisions of previous
estimates 2,252 62,569
------- ---------
Proved reserves, June 30, 2005 165,555 6,254,347
Production ( 5,431) ( 170,927)
Extensions and discoveries 601 66,229
Revisions of previous
estimates 5,395 286,882
------- ---------
Proved reserves, Sept. 30, 2005 166,120 6,436,531
======= =========
-46-
III-F Partnership
-----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 314,866 4,140,725
Production ( 5,389) ( 100,250)
Extensions and discoveries 9 1,950
Revisions of previous
estimates 6,292 3,196
------- ---------
Proved reserves, March 31, 2005 315,778 4,045,621
Production ( 4,989) ( 89,254)
Extensions and discoveries 8,565 30,840
Revisions of previous
estimates 313 ( 275,088)
------- ---------
Proved reserves, June 30, 2005 319,667 3,712,119
Production ( 5,158) ( 97,527)
Extensions and discoveries 435 52,312
Revisions of previous
estimates 5,848 168,813
------- ---------
Proved reserves, Sept. 30, 2005 320,792 3,835,717
======= =========
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 September 30, 2005, June 30, 2005,
March 31, 2005, and December 31, 2004. 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
-47-
and gas production subsequent to September 30, 2005. There can be no
assurance that the prices used in calculating the net present value of the
Partnerships' proved reserves at September 30, 2005 will actually be
realized for such production.
Net Present Value of Reserves (In 000's)
-----------------------------------------------
Partnership 9/30/05 6/30/05 3/31/05 12/31/04
----------- ------- ------- ------- --------
III-A $27,867 $13,839 $14,547 $12,009
III-B 12,175 6,335 6,764 5,576
III-C 33,033 14,277 14,227 11,293
III-D 17,821 7,812 7,970 6,265
III-E 45,867 20,800 21,237 17,295
III-F 31,478 15,562 16,359 13,190
Oil and Gas Prices
----------------------------------------------
Pricing 9/30/05 6/30/05 3/31/05 12/31/04
----------- ------- ------- ------- --------
Oil (Bbl) $ 66.21 $ 56.63 $ 55.31 $ 43.36
Gas (Mcf) 15.21 7.07 7.17 6.02
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:
-48-
* 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 and the impact of weather- related
events;
* The availability of pipelines for transportation; and
* Domestic and foreign government regulations and taxes.
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.
In addition to pricing, the level of net revenues is also 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. Despite this general
trend of declining production, several factors can cause the volumes of
oil and gas sold to increase or decrease at an even greater rate over a
given period. These factors include, but are not limited to, (i)
geophysical conditions which cause an acceleration of the decline in
production, (ii) the shutting in of wells (or the opening of previously
shut-in wells) due to low oil and gas prices (or high oil and gas prices),
mechanical difficulties, loss of a market or transportation, or
performance of workovers, recompletions, or other operations in the well,
(iii) prior period volume adjustments (either positive or negative) made
by the purchasers of the production, (iv) ownership adjustments in
accordance with agreements governing the operation or ownership of the
well (such as adjustments that occur at payout), and (v) completion of
enhanced recovery projects which increase production for the well. Many of
these factors are very significant as related to a single well or as
related to many wells over a short period of time. However, due to the
large number of wells owned by the Partnerships, these factors are
generally not material as compared to the normal declines in production
experienced on all remaining wells.
-49-
III-A PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2004.
Three Months Ended September 30,
--------------------------------
2005 2004
---------- ----------
Oil and gas sales $1,208,182 $1,024,984
Oil and gas production expenses $ 298,245 $ 189,293
Barrels produced 8,206 10,084
Mcf produced 89,344 111,220
Average price/Bbl $ 59.90 $ 41.78
Average price/Mcf $ 8.02 $ 5.43
As shown in the table above, total oil and gas sales increased $183,198
(17.9%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately
$149,000 and $232,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $79,000 and $119,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 1,878 barrels and 21,876 Mcf, respectively, for the three months
ended September 30, 2005 as compared to the three months ended September
30, 2004. The decrease in volumes of oil sold was primarily due to (i)
normal declines in production and (ii) the shutting-in of one significant
well during mid 2005 in order to perform a workover. As of the date of
this Quarterly Report, the shut-in well has returned to production at a
lower rate than previously experienced. The decrease in volumes of gas
sold was primarily due to (i) normal declines in production, (ii) the
shutting-in of two significant wells during early 2005 in order to perform
workovers, and (iii) positive prior period volume adjustments made by the
operators on two other significant wells during the three months ended
September 30, 2004. As of the date of this Quarterly Report, the operator
has not yet determined when the shut-in wells will return to production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $108,952 (57.6%) for the three months ended
September 30, 2005 as compared to the three months ended September 30,
2004. This increase was primarily due to (i) workover expenses incurred on
two significant wells during the three months ended September 30, 2005,
(ii) an increase in production taxes associated with the increase in oil
and gas sales, and (iii) salt water disposal expenses incurred on several
wells during the three months ended September 30, 2005. As a percentage of
oil and gas sales, these expenses increased to 24.7% for the three months
ended September 30, 2005 from 18.5% for the three months ended September
30, 2004. This percentage increase
-50-
was primarily due to the dollar increase in oil and gas production
expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $33,563 (127.5%) for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. Of this increase
(i) approximately $35,000 was due to the depletion of additional
capitalized costs of oil and gas properties as a result of the upward
revision in the estimate of the asset retirement obligations, of which
approximately $21,000 was related to previously fully depleted wells, and
(ii) approximately $5,000 was due to accretion of these additional asset
retirement obligations. This increase was partially offset by (i) the
decreases in volumes of oil and gas sold and (ii) one significant well
being fully depleted during the three months ended September 30, 2004 due
to the lack of remaining reserves. As a percentage of oil and gas sales,
this expense increased to 5.0% for the three months ended September 30,
2005 from 2.6% for the three months ended September 30, 2004. This
percentage increase was primarily due to the dollar increase in
depreciation, depletion, and amortization of oil and gas properties.
General and administrative expenses remained relatively constant for the
three months ended September 30, 2005 and 2004. As a percentage of oil and
gas sales, these expenses decreased to 6.1% for the three months ended
September 30, 2005 from 7.2% for the three months ended September 30,
2004. This percentage decrease was primarily due to the increase in oil
and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2004.
Nine Months Ended September 30,
-------------------------------
2005 2004
---------- ----------
Oil and gas sales $3,378,280 $3,115,672
Oil and gas production expenses $ 874,567 $ 635,672
Barrels produced 24,402 30,155
Mcf produced 303,584 357,105
Average price/Bbl $ 52.63 $ 37.54
Average price/Mcf $ 6.90 $ 5.55
As shown in the table above, total oil and gas sales increased $262,608
(8.4%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately
$368,000 and $408,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $216,000 and $297,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 5,753 barrels and 53,521 Mcf, respectively, for the nine months
ended September 30, 2005
-51-
as compared to the nine months ended September 30, 2004. The decrease in
volumes of oil sold was primarily due to (i) normal declines in
production, (ii) the shutting-in of two significant wells during late 2004
and early to mid 2005 in order to perform workovers, and (iii) the
shutting-in of two other significant wells during early 2005 due to
mechanical problems. As of the date of this Quarterly Report, the shut-in
wells have returned to production at a lower rate than previously
experienced. The decrease in volumes of gas sold was primarily due to (i)
normal declines in production, (ii) a positive prior period volume
adjustment made by the operator on one significant well during the nine
months ended September 30, 2004, and (iii) the shutting-in of two
significant wells during early 2005 in order to perform workovers. As of
the date of this Quarterly Report, the operator has not yet determined
when the shut-in wells will return to production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $238,895 (37.6%) for the nine months ended
September 30, 2005 as compared to the nine months ended September 30,
2004. This increase was primarily due to (i) workover expenses incurred on
several wells during the nine months ended September 30, 2005, (ii) an
increase in production taxes associated with the increase in oil and gas
sales, and (iii) a positive prior period production tax adjustment made by
the operator on one significant well during the nine months ended
September 30, 2005. These increases were partially offset by a negative
prior period production tax adjustment made by the operator on another
significant well during the nine months ended September 30, 2005. As a
percentage of oil and gas sales, these expenses increased to 25.9% for the
nine months ended September 30, 2005 from 20.4% for the nine months ended
September 30, 2004. 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 $44,498 (29.4%) for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. This decrease was
primarily due to (i) the abandonment of one significant well during the
nine months ended September 30, 2004 following an unsuccessful
recompletion attempt, (ii) the decreases in volumes of oil and gas sold,
and (iii) another significant well being fully depleted during the nine
months ended September 30, 2004 due to the lack of remaining reserves.
These decreases were partially offset by increases of (i) approximately
$35,000 due to the depletion of additional capitalized costs of oil and
gas properties as a result of the upward revision in the estimate of the
asset retirement obligations, of which approximately $21,000 was related
to previously fully depleted wells, and (ii) approximately $5,000 due to
accretion of these additional asset retirement obligations. As a
percentage of oil and gas sales, this expense decreased to 3.2% for the
nine months ended
-52-
September 30, 2005 from 4.9% for the nine months ended September 30, 2004.
This percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization of oil and gas properties.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 2005 and 2004. As a percentage of oil and
gas sales, these expenses decreased to 7.2% for the nine months ended
September 30, 2005 from 7.8% for the nine months ended September 30, 2004.
The Limited Partners have received cash distributions through September
30, 2005 totaling $40,839,701 or 154.71% of Limited Partners' capital
contributions.
III-B PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2004.
Three Months Ended September 30,
--------------------------------
2005 2004
-------- --------
Oil and gas sales $638,006 $545,780
Oil and gas production expenses $184,994 $112,269
Barrels produced 5,623 6,537
Mcf produced 38,044 47,789
Average price/Bbl $ 59.81 $ 42.16
Average price/Mcf $ 7.93 $ 5.65
As shown in the table above, total oil and gas sales increased $92,226
(16.9%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately
$99,000 and $87,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $39,000 and $55,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 914 barrels and 9,745 Mcf, respectively, for the three months
ended September 30, 2005 as compared to the three months ended September
30, 2004. The decrease in volumes of oil sold was primarily due to (i)
normal declines in production and (ii) the shutting-in of one significant
well during mid 2005 in order to perform a workover. As of the date of
this Quarterly Report, the shut-in well has returned to production at a
lower rate than previously experienced. The decrease in volumes of gas
sold was primarily due to (i) normal declines in production, (ii) the
shutting-in of two significant wells during early 2005 in order to perform
workovers, and (iii) positive prior period volume adjustments made by the
operators on two significant wells during the three months ended September
30, 2004. As of the date of this Quarterly Report, the operator has not
yet determined when the shut-in wells will return to production.
-53-
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $72,725 (64.8%) for the three months ended
September 30, 2005 as compared to the three months ended September 30,
2004. This increase was primarily due to (i) workover expenses incurred on
two significant wells during the three months ended September 30, 2005,
(ii) an increase in production taxes associated with the increase in oil
and gas sales, and (iii) salt water disposal expenses incurred on several
wells during the three months ended September 30, 2005. As a percentage of
oil and gas sales, these expenses increased to 29.0% for the three months
ended September 30, 2005 from 20.6% for the three months ended September
30, 2004. This percentage increase was primarily due to the dollar
increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
increased $35,166 (245.5%) for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. Of this increase
(i) approximately $35,000 was due to the depletion of additional
capitalized costs of oil and gas properties as a result of the upward
revision in the estimate of the asset retirement obligations, of which
approximately $13,000 was related to previously fully depleted wells, and
(ii) approximately $3,000 was due to accretion of these additional asset
retirement obligations. This increase was partially offset by (i) one
significant well being fully depleted during the three months ended
September 30, 2004 due to the lack of remaining reserves and (ii) the
decreases in volumes of oil and gas sold. As a percentage of oil and gas
sales, this expense increased to 7.8% for the three months ended September
30, 2005 from 2.6% for the three months ended September 30, 2004. This
percentage increase was primarily due to the dollar increase in
depreciation, depletion, and amortization of oil and gas properties.
General and administrative expenses remained relatively constant for the
three months ended September 30, 2005 and 2004. As a percentage of oil and
gas sales, these expenses decreased to 6.3% for the three months ended
September 30, 2005 from 7.3% for the three months ended September 30,
2004. This percentage decrease was primarily due to the increase in oil
and gas sales.
-54-
NINE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2004.
Nine Months Ended September 30,
-------------------------------
2005 2004
---------- ----------
Oil and gas sales $1,768,452 $1,587,512
Oil and gas production expenses $ 520,248 $ 373,673
Barrels produced 16,733 20,316
Mcf produced 128,759 145,561
Average price/Bbl $ 52.67 $ 37.54
Average price/Mcf $ 6.89 $ 5.67
As shown in the table above, total oil and gas sales increased $180,940
(11.4%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately
$253,000 and $157,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $134,000 and $95,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 3,583 barrels and 16,802 Mcf, respectively, for the nine months
ended September 30, 2005 as compared to the nine months ended September
30, 2004. The decrease in volumes of oil sold was primarily due to (i)
normal declines in production, (ii) the shutting-in of two significant
wells during late 2004 and early to mid 2005 in order to perform
workovers, and (iii) the shutting-in of two other significant wells during
early 2005 due to mechanical problems. As of the date of this Quarterly
Report, the shut-in wells have returned to production at a lower rate than
previously experienced. 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 early 2005 in order to perform workovers. As of
the date of this Quarterly Report, the operator has not yet determined
when the shut-in wells will return to production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $146,575 (39.2%) for the nine months ended
September 30, 2005 as compared to the nine months ended September 30,
2004. This increase was primarily due to (i) workover expenses incurred on
several wells during the nine months ended September 30, 2005, (ii) an
increase in production taxes associated with the increase in oil and gas
sales, and (iii) a positive prior period production tax adjustment made by
the operator on one significant well during the nine months ended
September 30, 2005. These increases were partially offset by a negative
prior period production tax adjustment made by the operator on another
significant well during the nine months ended September 30, 2005. As a
percentage of oil and gas sales, these expenses increased to 29.4% for the
nine months ended September 30, 2005 from 23.5% for the nine months ended
September 30, 2004. This percentage increase was primarily
-55-
due to the dollar increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $23,898 (26.5%) for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. This decrease was
primarily due to (i) the abandonment of one significant well during the
nine months ended September 30, 2004 following an unsuccessful
recompletion attempt, (ii) the decreases in volumes of oil and gas sold,
and (iii) another significant well being fully depleted during the nine
months ended September 30, 2004 due to the lack of remaining reserves.
These decreases were partially offset by increases of (i) approximately
$35,000 due to the depletion of additional capitalized costs of oil and
gas properties as a result of the upward revision in the estimate of the
asset retirement obligations, of which approximately $13,000 was related
to previously fully depleted wells, and (ii) approximately $3,000 due to
accretion of these additional asset retirement obligations. As a
percentage of oil and gas sales, this expense decreased to 3.8% for the
nine months ended September 30, 2005 from 5.7% for the nine months ended
September 30, 2004. 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 $1,797 (1.3%) for the nine
months ended September 30, 2005 as compared to the nine months ended
September 30, 2004. As a percentage of oil and gas sales, these expenses
decreased to 7.9% for the nine months ended September 30, 2005 from 8.7%
for the nine months ended September 30, 2004.
The Limited Partners have received cash distributions through September
30, 2005 totaling $22,770,353 or 164.60% of Limited Partners' capital
contributions.
III-C PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2004.
Three Months Ended September 30,
--------------------------------
2005 2004
---------- --------
Oil and gas sales $1,123,255 $691,851
Oil and gas production expenses $ 238,678 $209,383
Barrels produced 2,541 1,414
Mcf produced 136,692 125,994
Average price/Bbl $ 59.33 $ 43.23
Average price/Mcf $ 7.11 $ 5.01
As shown in the table above, total oil and gas sales increased $431,404
(62.4%) for the three months ended September 30, 2005 as compared to the
three months ended
-56-
September 30, 2004. Of this increase, approximately (i) $41,000 and
$288,000, respectively, were related to increases in the average prices of
oil and gas sold and (ii) $49,000 and $53,000, respectively, were related
to increases in volumes of oil and gas sold. Volumes of oil and gas sold
increased 1,127 barrels and 10,698 Mcf, respectively, for the three months
ended September 30, 2005 as compared to the three months ended September
30, 2004. The increase in volumes of oil sold was primarily due to (i) an
increase in production on several wells following the successful workovers
of those wells during mid 2005 and (ii) the successful completion of two
new wells during mid 2005. The increase in volumes of gas sold was
primarily due to (i) the successful completion of two new wells during
late 2004 and early 2005, (ii) an increase in production on two
significant wells following the successful workovers of those wells during
mid to late 2004, and (iii) positive prior period volume adjustments made
by the operator on two significant wells during the three months ended
September 30, 2005. These increases were partially offset by normal
declines in production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $29,295 (14.0%) for the three months ended
September 30, 2005 as compared to the three months ended September 30,
2004. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales, (ii) workover
expenses incurred on two significant wells during the three months ended
September 30, 2005, and (iii) a positive prior period lease operating
expense adjustment made by the operator on one significant well during the
three months ended September 30, 2005. These increases were partially
offset by workover expenses incurred on two significant wells during the
three months ended September 30, 2004. As a percentage of oil and gas
sales, these expenses decreased to 21.2% for the three months ended
September 30, 2005 from 30.3% for the three months ended September, 2004.
This percentage decrease was primarily due to the increase in oil and gas
sales.
Depreciation, depletion, and amortization of oil and gas properties
decreased $89,408 (45.4%) for the three months ended September 30, 2005 as
compared to the three months ended September 30, 2004. This decrease was
primarily due to one significant well being fully depleted during the
three months ended September 30, 2004 due to the lack of remaining
reserves. This decrease was partially offset by an increase of (i)
approximately $68,000 due to the depletion of additional capitalized costs
of oil and gas properties as a result of the upward revision in the
estimate of the asset retirement obligations, of which approximately
$39,000 was related to previously fully depleted wells, and (ii)
approximately $8,000 due to accretion of these additional asset retirement
obligations. This increase was also due to the increases in volumes of oil
and gas sold. As a percentage of oil and gas sales,
-57-
this expense decreased to 9.6% for the three months ended September 30,
2005 from 28.4% for the three months ended September 30, 2004. 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 remained relatively constant for the
three months ended September 30, 2005 and 2004. As a percentage of oil and
gas sales, these expenses decreased to 6.1% for the three months ended
September 30, 2005 from 9.8% for the three months ended September 30,
2004. This percentage decrease was primarily due to the increase in oil
and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2004.
Nine Months Ended September 30,
-------------------------------
2005 2004
---------- ----------
Oil and gas sales $3,060,079 $2,420,732
Oil and gas production expenses $ 612,375 $ 597,331
Barrels produced 7,296 6,941
Mcf produced 414,412 404,508
Average price/Bbl $ 52.43 $ 36.36
Average price/Mcf $ 6.46 $ 5.36
As shown in the table above, total oil and gas sales increased $639,347
(26.4%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately (i)
$117,000 and $456,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $13,000 and $53,000,
respectively, were related to increases in volumes of oil and gas sold.
Volumes of oil and gas sold increased 355 barrels and 9,904 Mcf,
respectively, for the nine months ended September 30, 2005 as compared to
the nine months ended September 30, 2004. The increase in volumes of oil
sold was primarily due to an increase in production on several wells
following the successful workovers of those wells during mid 2005. The
increase in volumes of gas sold was primarily due to (i) downward
revisions in the estimates of remaining gas reserves during the nine
months ended September 30, 2004 on one significant well resulting in the
III-C Partnership becoming over produced in excess of estimated ultimate
reserves thereby increasing gas imbalance payable, (ii) the successful
completion of two new wells during late 2004, and (iii) an increase in
production on two significant wells following the successful workovers of
those wells during mid to late 2004. These increases were partially offset
by (i) normal declines in production and (ii) a substantial decline in
production during 2005 on one significant well following the workover of
that well during mid 2004. The well with a substantial decline in
production
-58-
is not expected to return to its previously high levels of production.
The average gas price increased to $6.46 per Mcf for the nine months ended
September 30, 2005 from $5.36 per Mcf for the nine months ended September
30, 2004. Due to the gas imbalance situation on one significant well
discussed above, gas volumes for that well were recorded as a liability at
a substantially lower rate per Mcf than the average price per Mcf received
by the III-C Partnership during the nine months ended September 30, 2004.
This resulted in a higher average price per Mcf for the nine months ended
September 30, 2004 than if the liability had not been recorded. No such
material adjustments were recorded during the nine months ended September
30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $15,044 (2.5%) for the nine months ended
September 30, 2005 as compared to the nine months ended September 30,
2004. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales, (ii) workover
expenses incurred on several wells during the nine months ended September
30, 2005, and (iii) a positive prior period lease operating expense
adjustment made by the operator on another significant well during the
nine months ended September 30, 2005. These increases were partially
offset by workover expenses incurred on several other wells during the
nine months ended September 30, 2004. As a percentage of oil and gas
sales, these expenses decreased to 20.0% for the nine months ended
September 30, 2005 from 24.7% for the nine months ended September 30,
2004. This percentage decrease was primarily due to the increase in oil
and gas sales.
Depreciation, depletion, and amortization of oil and gas properties
decreased $106,111 (34.5%) for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. This decrease was
primarily due to several wells being fully depleted during the nine months
ended September 30, 2004 due to the lack of remaining reserves. This
decrease was partially offset by an increase of (i) approximately $68,000
due to the depletion of additional capitalized costs of oil and gas
properties as a result of the upward revision in the estimate of the asset
retirement obligations, of which approximately $39,000 was related to
previously fully depleted wells, and (ii) approximately $8,000 due to
accretion of these additional asset retirement obligations. This increase
was also due to (i) one significant well being fully depleted during the
nine months ended September 30, 2005 due to the lack of remaining reserves
and (ii) an increase in depletable oil and gas properties during 2005
primarily due to the drilling of two developmental wells. As a percentage
of oil and gas sales, this expense decreased to 6.6% for the nine months
ended September 30, 2005 from 12.7% for the nine months ended September
30, 2004. This percentage decrease was
-59-
primarily due to the dollar decrease in depreciation, depletion, and
amortization of oil and gas properties.
General and administrative expenses remained relatively constant for the
nine months ended September 30, 2005 and 2004. As a percentage of oil and
gas sales, these expenses decreased to 7.4% for the nine months ended
September 30, 2005 from 9.3% for the nine months ended September 30, 2004.
This percentage decrease was primarily due to the increase in oil and gas
sales.
The Limited Partners have received cash distributions through September
30, 2005 totaling $30,826,795 or 126.06% of Limited Partners' capital
contributions.
III-D PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2004.
Three Months Ended September 30,
--------------------------------
2005 2004
-------- --------
Oil and gas sales $647,801 $397,237
Oil and gas production expenses $141,604 $143,651
Barrels produced 2,069 1,593
Mcf produced 71,544 67,763
Average price/Bbl $ 61.08 $ 41.90
Average price/Mcf $ 7.29 $ 4.88
As shown in the table above, total oil and gas sales increased $250,564
(63.1%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately (i)
$40,000 and $173,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $20,000 and $18,000,
respectively, were related to increases in volumes of oil and gas sold.
Volumes of oil and gas sold increased 476 barrels and 3,781 Mcf,
respectively, for the three months ended September 30, 2005 as compared to
the three months ended September 30, 2004. The increase in volumes of oil
sold was primarily due to (i) an increase in production on one significant
well following the successful workover of that well during late 2004 and
(ii) the successful completion of two new wells during early to mid 2005.
These increases were partially offset by normal declines in production.
The increase in volumes of gas sold was primarily due to (i) an increase
in production on one significant well following the successful workover of
that well during late 2004 and (ii) the successful completion of two new
wells during early to mid 2005. These increases were partially offset by
(i) normal declines in production and (ii) a substantial decline in
production during 2005 on one significant well following the workover of
that well during mid 2004. The well with a substantial decline in
-60-
production is not expected to return to its previously high levels of
production.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $2,047 (1.4%) for the three months ended
September 30, 2005 as compared to the three months ended September 30,
2004. This decrease was primarily due to workover expenses incurred on
several wells during the three months ended September 30, 2004. These
decreases were partially offset by (i) an increase in production taxes
associated with the increase in oil and gas sales, (ii) an increase in
repair and maintenance expenses incurred on several wells during the three
months ended September 30, 2005 as compared to the three months ended
September 30, 2004, and (iii) workover expenses incurred on two
significant wells during the three months ended September 30, 2005. As a
percentage of oil and gas sales, these expenses decreased to 21.9% for the
three months ended September 30, 2005 from 36.2% for the three months
ended September, 2004. This percentage decrease was primarily due to the
increase in oil and gas sales.
Depreciation, depletion, and amortization of oil and gas properties
increased $25,663 (214.9%) for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. Of this increase
(i) approximately $22,000 was due to the depletion of additional
capitalized costs of oil and gas properties as a result of the upward
revision in the estimate of the asset retirement obligations, of which
approximately $17,000 was related to previously fully depleted wells, and
(ii) approximately $3,000 was due to accretion of these additional asset
retirement obligations. As a percentage of oil and gas sales, this expense
increased to 5.8% for the three months ended September 30, 2005 from 3.0%
for the three months ended September 30, 2004. This percentage increase
was primarily due to the dollar increase in depreciation, depletion, and
amortization of oil and gas properties.
General and administrative expenses decreased $3,813 (9.3%) for the three
months ended September 30, 2005 as compared to the three months ended
September 30, 2004. As a percentage of oil and gas sales, these expenses
decreased to 5.8% for the three months ended September 30, 2005 from 10.4%
for the three months ended September 30, 2004. This percentage decrease
was primarily due to the increase in oil and gas sales.
-61-
NINE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2004.
Nine Months Ended September 30,
-------------------------------
2005 2004
---------- ----------
Oil and gas sales $1,739,907 $1,390,879
Oil and gas production expenses $ 355,551 $ 332,866
Barrels produced 6,569 6,423
Mcf produced 224,149 217,239
Average price/Bbl $ 51.85 $ 35.83
Average price/Mcf $ 6.24 $ 5.34
As shown in the table above, total oil and gas sales increased $349,028
(25.1%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately (i)
$105,000 and $202,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $5,000 and $37,000,
respectively, were related to increases in volumes of oil and gas sold.
Volumes of oil and gas sold increased 146 barrels and 6,910 Mcf,
respectively, for the nine months ended September 30, 2005 as compared to
the nine months ended September 30, 2004. The increase in volumes of oil
sold was primarily due to (i) an increase in production on one significant
well following the successful workover of that well during late 2004 and
(ii) the successful completion of two new wells during early to mid 2005.
These increases were partially offset by normal declines in production.
The increase in volumes of gas sold was primarily due to (i) downward
revisions in the estimates of remaining gas reserves during the nine
months ended September 30, 2004 on one significant well resulting in the
III-D Partnership becoming over produced in excess of estimated ultimate
reserves thereby increasing gas imbalance payable, (ii) an increase in
production on another significant well following the successful workover
of that well during late 2004, and (iii) the successful completion of
several new wells during late 2004 and early to mid 2005. These increases
were partially offset by (i) normal declines in production and (ii) a
substantial decline in production during 2005 on one significant well
following the workover of that well during mid 2004. The well with a
substantial decline in production is not expected to return to its
previously high levels of production.
The average gas price increased to $6.24 per Mcf for the nine months ended
September 30, 2005 from $5.34 per Mcf for the nine months ended September
30, 2004. Due to the gas imbalance situation on one significant well
discussed above, gas volumes for that well were recorded as a liability at
a substantially lower rate per Mcf than the average price per Mcf received
by the III-D Partnership during the nine months ended September 30, 2004.
This resulted in a higher average price per Mcf for the nine months ended
September 30, 2004 than if the liability had not been recorded. No such
-62-
material adjustments were recorded during the nine months ended September
30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $22,685 (6.8%) for the nine months ended
September 30, 2005 as compared to the nine months ended September 30,
2004. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales, (ii) workover
expenses incurred on several wells during the nine months ended September
30, 2005, and (iii) an increase in repair and maintenance expenses
incurred on several other wells during the nine months ended September 30,
2005 as compared to the nine months ended September 30, 2004. These
increases were partially offset by workover expenses incurred on several
other wells during the nine months ended September 30, 2004. As a
percentage of oil and gas sales, these expenses decreased to 20.4% for the
nine months ended September 30, 2005 from 23.9% for the nine months ended
September 30, 2004. This percentage decrease was primarily due to the
increase in oil and gas sales.
Depreciation, depletion, and amortization of oil and gas properties
increased $4,689 (6.4%) for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. Of this increase (i)
approximately $22,000 was due to the depletion of additional capitalized
costs of oil and gas properties as a result of the upward revision in the
estimate of the asset retirement obligations, of which approximately
$17,000 was related to previously fully depleted wells, and (ii)
approximately $3,000 was due to accretion of these additional asset
retirement obligations. This increase was also due to an increase in
depletable oil and gas properties during 2005 primarily due to the
recompletion of one significant well. These increases were partially
offset by (i) two significant wells being fully depleted during the nine
months ended September 30, 2004 due to the lack of remaining reserves and
(ii) upward revisions in the estimates of remaining gas reserves since
September 30, 2004. As a percentage of oil and gas sales, this expense
decreased to 4.5% for the nine months ended September 30, 2005 from 5.2%
for the nine months ended September 30, 2004. This percentage decrease was
primarily due to the increase in the average prices of oil and gas sold.
General and administrative expenses decreased $2,495 (1.8%) for the nine
months ended September 30, 2005 as compared to the nine months ended
September 30, 2004. As a percentage of oil and gas sales, these expenses
decreased to 7.6% for the nine months ended September 30, 2005 from 9.7%
for the nine months ended September 30, 2004. This percentage decrease was
primarily due to the increase in oil and gas sales.
-63-
The Limited Partners have received cash distributions through September
30, 2005 totaling $17,234,669 or 131.55% of Limited Partners' capital
contributions.
III-E PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2004.
Three Months Ended September 30,
--------------------------------
2005 2004
---------- ----------
Oil and gas sales $1,536,728 $1,103,595
Oil and gas production expenses $ 372,145 $ 316,396
Barrels produced 5,431 3,420
Mcf produced 170,927 179,461
Average price/Bbl $ 60.53 $ 52.45
Average price/Mcf $ 7.07 $ 5.15
As shown in the table above, total oil and gas sales increased $433,133
(39.2%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately (i)
$44,000 and $328,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $105,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $44,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 2,011 barrels, while volumes of
gas sold decreased 8,534 Mcf for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. The increase in
volumes of oil sold was primarily due to a negative prior period volume
adjustment made by the operator on one significant well during the three
months ended September 30, 2004. This increase was partially offset by
normal declines in production. The decrease in volumes of gas sold was
primarily due to normal declines in production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $55,749 (17.6%) for the three months ended
September 30, 2005 as compared to the three months ended September 30,
2004. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales, (ii) workover
expenses incurred on several wells during the three months ended September
30, 2005, and (iii) repair and maintenance expenses incurred on one
significant well during the three months ended September 30, 2005. These
increases were partially offset by workover expenses incurred on one
significant well during the three months ended September 30, 2004. As a
percentage of oil and gas sales, these expenses decreased to 24.2% for the
three months ended September 30, 2005 from 28.7% for the three months
ended September, 2004. This percentage decrease was primarily due to the
increase in oil and gas sales.
-64-
Depreciation, depletion, and amortization of oil and gas properties
increased $84,763 (125.6%) for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. Of this increase
(i) approximately $72,000 was due to the depletion of additional
capitalized costs of oil and gas properties as a result of the upward
revision in the estimate of the asset retirement obligations, of which
approximately $47,000 was related to previously fully depleted wells, and
(ii) approximately $9,000 was due to accretion of these additional asset
retirement obligations. This increase was also due to (i) an increase in
depletable oil and gas properties during 2005 primarily due to the
recompletion of one significant well and (ii) the receipt of equipment
credits on one fully depleted well during the three months ended September
30, 2004. These increases were partially offset by an increase in
depletable oil and gas properties during 2004 primarily due to the
recompletion of two significant wells. As a percentage of oil and gas
sales, this expense increased to 9.9% for the three months ended September
30, 2005 from 6.1% for the three months ended September 30, 2004. This
percentage increase was primarily due to the dollar increase in
depreciation, depletion and amortization of oil and gas properties.
General and administrative expenses decreased $3,606 (3.0%) for the three
months ended September 30, 2005 as compared to the three months ended
September 30, 2004. As a percentage of oil and gas sales, these expenses
decreased to 7.6% for the three months ended September 30, 2005 from 10.8%
for the three months ended September 30, 2004. This percentage decrease
was primarily due to the increase in oil and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2004.
Nine Months Ended September 30,
-------------------------------
2005 2004
---------- ----------
Oil and gas sales $4,107,355 $3,371,556
Oil and gas production expenses $1,039,061 $ 924,846
Barrels produced 17,811 17,182
Mcf produced 515,363 538,069
Average price/Bbl $ 49.99 $ 35.81
Average price/Mcf $ 6.24 $ 5.12
As shown in the table above, total oil and gas sales increased $735,799
(21.8%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately (i)
$253,000 and $577,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $22,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $116,000 related to a decrease in volumes of
-65-
gas sold. Volumes of oil sold increased 629 barrels, while volumes of gas
sold decreased 22,706 Mcf for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. The increase in
volumes of oil sold was primarily due to a negative prior period volume
adjustment made by the operator on one significant well during the nine
months ended September 30, 2004. This increase was partially offset by
normal declines in production. The decrease in volumes of gas sold was
primarily due to normal declines in production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $114,215 (12.3%) for the nine months ended
September 30, 2005 as compared to the nine months ended September 30,
2004. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales, (ii) workover
expenses incurred on several wells during the nine months ended September
30, 2005, and (iii) repair and maintenance expenses incurred on another
significant well during the nine months ended September 30, 2005. These
increases were partially offset by workover expenses incurred on one
significant well during the nine months ended September 30, 2004. As a
percentage of oil and gas sales, these expenses decreased to 25.3% for the
nine months ended September 30, 2005 from 27.4% for the nine months ended
September 30, 2004.
Depreciation, depletion, and amortization of oil and gas properties
increased $101,238 (74.1%) for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. Of this increase (i)
approximately $72,000 was due to the depletion of additional capitalized
costs of oil and gas properties as a result of the upward revision in the
estimate of the asset retirement obligations, of which approximately
$47,000 was related to previously fully depleted wells, and (ii)
approximately $9,000 was due to accretion of these additional asset
retirement obligations. This increase was also due to (i) an increase in
depletable oil and gas properties during 2005 primarily due to the
recompletion of one significant well and (ii) the receipt of equipment
credits on two fully depleted wells during the nine months ended September
30, 2004. These increases were partially offset by (i) an increase in
depletable oil and gas properties during 2004 primarily due to the
recompletion of two other significant wells and (ii) the decrease in
volumes of gas sold. As a percentage of oil and gas sales, this expense
increased to 5.8% for the nine months ended September 30, 2005 from 4.1%
for the nine months ended September 30, 2004. This percentage increase was
primarily due to the dollar increase in depreciation, depletion and
amortization of oil and gas properties.
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General and administrative expenses decreased $5,341 (1.4%) for the nine
months ended September 30, 2005 as compared to the nine months ended
September 30, 2004. As a percentage of oil and gas sales, these expenses
decreased to 9.0% for the nine months ended September 30, 2005 from 11.2%
for the nine months ended September 30, 2004. This percentage decrease was
primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through September
30, 2005 totaling $51,243,016 or 122.51% of Limited Partners' capital
contributions.
III-F PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2004.
Three Months Ended September 30,
--------------------------------
2005 2004
---------- --------
Oil and gas sales $1,020,539 $752,555
Oil and gas production expenses $ 208,625 $184,161
Barrels produced 5,158 5,192
Mcf produced 97,527 104,753
Average price/Bbl $ 61.58 $ 40.76
Average price/Mcf $ 7.21 $ 5.16
As shown in the table above, total oil and gas sales increased $267,984
(35.6%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately
$108,000 and $199,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $2,000 and $37,000, respectively, related to
decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 34 barrels and 7,226 Mcf, respectively, for the three months
ended September 30, 2005 as compared to the three months ended September
30, 2004. The decrease in volumes of oil sold was primarily due to normal
declines in production, which decrease was partially offset by an increase
in production on several wells following successful repairs made during
mid to late 2004. The decrease in volumes of gas sold was primarily due to
normal declines in production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $24,464 (13.3%) for the three months ended
September 30, 2005 as compared to the three months ended September 30,
2004. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales, (ii) workover
expenses incurred on several wells during the three months ended September
30, 2005, and (iii) repair and maintenance expenses incurred on one
significant well during the three months ended September 30, 2005. These
increases
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were partially offset by workover expenses incurred on one significant
well during the three months ended September 30, 2004. As a percentage of
oil and gas sales, these expenses decreased to 20.4% for the three months
ended September 30, 2005 from 24.5% for the three months ended September
30, 2004. This percentage decrease was primarily due to the increase in
oil and gas sales.
Depreciation, depletion, and amortization of oil and gas properties
remained relatively constant for the three months ended September 30, 2005
and 2004. A decrease in depreciation, depletion, and amortization was
primarily due to (i) an increase in depletable oil and gas properties
during 2004 primarily due to the recompletion of two significant wells and
(ii) the decreases in volumes of oil and gas sold. These decreases were
substantially offset by (i) an increase of approximately $15,000 due to
the depletion of additional capitalized costs of oil and gas properties as
a result of the upward revision in the estimate of the asset retirement
obligations, of which approximately $7,000 was related to previously fully
depleted wells, (ii) an increase of approximately $4,000 due to accretion
of these additional asset retirement obligations, and (iii) the receipt of
equipment credits on one fully depleted well during the three months ended
September 30, 2004. As a percentage of oil and gas sales, this expense
decreased to 5.3% for the three months ended September 30, 2005 from 7.3%
for the three months ended September 30, 2004. 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
three months ended September 30, 2005 and 2004. As a percentage of oil and
gas sales, these expenses decreased to 6.1% for the three months ended
September 30, 2005 from 8.2% for the three months ended September 30,
2004. This percentage decrease was primarily due to the increase in oil
and gas sales.
NINE MONTHS ENDED SEPTEMBER 30, 2005 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2004.
Nine Months Ended September 30,
-------------------------------
2005 2004
---------- ----------
Oil and gas sales $2,651,628 $2,107,070
Oil and gas production expenses $ 579,546 $ 533,917
Barrels produced 15,536 14,979
Mcf produced 287,031 306,840
Average price/Bbl $ 53.46 $ 36.64
Average price/Mcf $ 6.34 $ 5.08
As shown in the table above, total oil and gas sales increased $544,558
(25.8%) for the nine months ended September 30, 2005 as compared to the
nine months ended
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September 30, 2004. Of this increase, approximately (i) $261,000 and
$364,000, respectively, were related to increases in the average prices of
oil and gas sold and (ii) $21,000 was related to an increase in volumes of
oil sold. These increases were partially offset by a decrease of
approximately $101,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 557 barrels, while volumes of gas sold
decreased 19,809 Mcf for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. The increase in
volumes of oil sold was primarily due to (i) an increase in production on
several wells following the successful workovers of those wells during mid
to late 2004 and (ii) an increase in production on several other wells
following successful repairs made during mid to late 2004. These increases
were partially offset by normal declines in production. The decrease in
volumes of gas sold was primarily due to normal declines in production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $45,629 (8.5%) for the nine months ended
September 30, 2005 as compared to the nine months ended September 30,
2004. This increase was primarily due to (i) an increase in production
taxes associated with the increase in oil and gas sales, (ii) workover
expenses incurred on several wells during the nine months ended September
30, 2005, and (iii) repair and maintenance expenses incurred on one
significant well during the nine months ended September 30, 2005. These
increases were partially offset by expenses incurred during the nine
months ended September 30, 2004 for an unsuccessful workover performed on
one significant well. As a percentage of oil and gas sales, these expenses
decreased to 21.9% for the nine months ended September 30, 2005 from 25.3%
for the nine months ended September 30, 2004. This percentage decrease was
primarily due to the increase in oil and gas sales.
Depreciation, depletion, and amortization of oil and gas properties
increased $19,016 (16.8%) for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. Of this increase (i)
approximately $15,000 was due to the depletion of additional capitalized
costs of oil and gas properties as a result of the upward revision in the
estimate of the asset retirement obligations, of which approximately
$7,000 was related to previously fully depleted wells, and (ii)
approximately $4,000 was due to accretion of these additional asset
retirement obligations. This increase was also due to the receipt of
equipment credits on two fully depleted wells during the nine months ended
September 30, 2004. These increases were partially offset by (i) an
increase in depletable oil and gas properties during 2004 primarily due to
the recompletion of two significant wells and (ii) the decrease in volumes
of gas sold. As a percentage of oil and gas sales, this expense decreased
to 5.0% for the nine months ended September 30, 2005 from 5.4% for the
nine months ended September 30, 2004.
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General and administrative expenses remained relatively constant for the
nine months ended September 30, 2005 and 2004. As a percentage of oil and
gas sales, these expenses decreased to 7.8% for the nine months ended
September 30, 2005 from 9.8% for the nine months ended September 30, 2004.
This percentage decrease was primarily due to the increase in oil and gas
sales.
The Limited Partners have received cash distributions through September
30, 2005 totaling $21,185,904 or 95.65% of Limited Partners' capital
contributions.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Partnerships do not hold any market risk sensitive instruments.
ITEM 4. CONTROLS AND PROCEDURES
As of the end of the period covered by this report, the principal
executive officer and principal financial officer conducted an
evaluation of the Partnerships' disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
and Exchange Act of 1934). Based on this evaluation, such officers
concluded that the Partnerships' disclosure controls and procedures
are effective to ensure that information required to be disclosed by
the Partnerships in reports filed under the Exchange Act is
recorded, processed, summarized, and reported accurately and within
the time periods specified in the Securities and Exchange Commission
rules and forms.
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PART II. OTHER INFORMATION
ITEM 6. EXHIBITS
31.1 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the III-A Partnership.
31.2 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the III-A Partnership.
31.3 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the III-B Partnership.
31.4 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the III-B Partnership.
31.5 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the III-C Partnership.
31.6 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the III-C Partnership.
31.7 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the III-D Partnership.
31.8 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the III-D Partnership.
31.9 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the III-E Partnership.
31.10 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the III-E Partnership.
31.11 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the III-F Partnership.
31.12 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the III-F Partnership.
32.1 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.
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32.2 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.
32.3 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.
32.4 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.
32.5 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.
32.6 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.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP III-F
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: November 14, 2005 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: November 14, 2005 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
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INDEX TO EXHIBITS
-----------------
Exh.
No. Exhibit
- ---- -------
31.1 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-A.
31.2 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-A.
31.3 Certification Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-B.
31.4 Certification Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-B.
31.5 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-C.
31.6 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-C.
31.7 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-D.
31.8 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-D.
31.9 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-E.
31.10 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-E.
31.11 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-F.
31.12 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership III-F.
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32.1 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.
32.2 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.
32.3 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.
32.4 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.
32.5 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.
32.6 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.
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