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:
II-A: 0-16388 II-D: 0-16980 II-G: 0-17802
II-B: 0-16405 II-E: 0-17320 II-H: 0-18305
II-C: 0-16981 II-F: 0-17799
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
---------------------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
II-A 73-1295505
II-B 73-1303341
II-C 73-1308986
II-D 73-1329761
II-E 73-1324751
II-F 73-1330632
II-G 73-1336572
Oklahoma II-H 73-1342476
---------------------------- ------------------------------------
(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 II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,634,685 $1,557,473
Accounts receivable:
Oil and gas sales 1,517,488 1,004,704
Related party (Note 2) 152 -
---------- ----------
Total current assets $3,152,325 $2,562,177
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,534,988 2,226,122
DEFERRED CHARGE 606,501 625,308
---------- ----------
$6,293,814 $5,413,607
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 235,248 $ 273,971
Accrued liability - other (Note 1) - 26,672
Gas imbalance payable 107,937 108,636
Asset retirement obligation -
current (Note 1) 16,851 34,994
---------- ----------
Total current liabilities $ 360,036 $ 444,273
LONG-TERM LIABILITIES:
Accrued liability $ 153,326 $ 179,306
Asset retirement obligation
(Note 1) 861,052 358,676
---------- ----------
Total long-term liabilities $1,014,378 $ 537,982
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 136,230) ($ 201,586)
Limited Partners, issued and
outstanding, 484,283 units 5,055,630 4,632,938
---------- ----------
Total Partners' capital $4,919,400 $4,431,352
---------- ----------
$6,293,814 $5,413,607
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $2,048,071 $1,504,390
Interest income 8,398 2,633
---------- ----------
$2,056,469 $1,507,023
COSTS AND EXPENSES:
Lease operating $ 326,011 $ 250,642
Production tax 106,325 80,778
Depreciation, depletion, and
amortization of oil and gas
properties 170,685 47,147
General and administrative
(Note 2) 133,844 133,468
---------- ----------
$ 736,865 $ 512,035
---------- ----------
NET INCOME $1,319,604 $ 994,988
========== ==========
GENERAL PARTNER - NET INCOME $ 146,482 $ 103,479
========== ==========
LIMITED PARTNERS - NET INCOME $1,173,122 $ 891,509
========== ==========
NET INCOME per unit $ 2.42 $ 1.84
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $5,483,417 $4,345,158
Interest income 21,283 5,814
---------- ----------
$5,504,700 $4,350,972
COSTS AND EXPENSES:
Lease operating $ 864,469 $ 821,266
Production tax 306,278 240,414
Depreciation, depletion, and
amortization of oil and gas
properties 298,306 143,790
General and administrative
(Note 2) 424,079 425,933
---------- ----------
$1,893,132 $1,631,403
---------- ----------
NET INCOME $3,611,568 $2,719,569
========== ==========
GENERAL PARTNER - NET INCOME $ 385,876 $ 284,317
========== ==========
LIMITED PARTNERS - NET INCOME $3,225,692 $2,435,252
========== ==========
NET INCOME per unit $ 6.66 $ 5.03
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $3,611,568 $2,719,569
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 298,306 143,790
Settlement of asset retirement
obligation ( 188) -
Increase in accounts receivable -
oil and gas sales ( 512,784) ( 187,159)
Increase in accounts receivable -
related party (Note 2) ( 152) -
Decrease in deferred charge 18,807 2,635
Decrease in accounts payable ( 63,721) ( 91,944)
Decrease in accrued liability -
other ( 26,672) -
Decrease in gas imbalance payable ( 699) ( 16,482)
Increase (decrease) in accrued
liability ( 25,980) 3,682
---------- ----------
Net cash provided by operating
activities $3,298,485 $2,574,091
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 125,035) ($ 35,173)
Proceeds from sale of oil and
gas properties 27,282 4,662
---------- ----------
Net cash used by investing
activities ($ 97,753) ($ 30,511)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($3,123,520) ($2,421,903)
---------- ----------
Net cash used by financing
activities ($3,123,520) ($2,421,903)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 77,212 $ 121,677
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,557,473 1,428,609
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,634,685 $1,550,286
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,144,792 $1,079,057
Accounts receivable:
Oil and gas sales 1,166,234 750,466
---------- ----------
Total current assets $2,311,026 $1,829,523
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,635,284 1,590,243
DEFERRED CHARGE 266,353 252,768
---------- ----------
$4,212,663 $3,672,534
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 160,050 $ 202,172
Gas imbalance payable 36,339 39,527
Asset retirement obligation -
current (Note 1) 10,432 17,122
---------- ----------
Total current liabilities $ 206,821 $ 258,821
LONG-TERM LIABILITIES:
Accrued liability $ 55,411 $ 42,599
Asset retirement obligation
(Note 1) 362,921 193,076
---------- ----------
Total long-term liabilities $ 418,332 $ 235,675
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 180,404) ($ 232,828)
Limited Partners, issued and
outstanding, 361,719 units 3,767,914 3,410,866
---------- ----------
Total Partners' capital $3,587,510 $3,178,038
---------- ----------
$4,212,663 $3,672,534
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $1,540,789 $1,116,621
Interest income 5,544 1,784
---------- ----------
$1,546,333 $1,118,405
COSTS AND EXPENSES:
Lease operating $ 241,604 $ 184,346
Production tax 83,314 63,056
Depreciation, depletion, and
amortization of oil and gas
properties 98,345 40,752
General and administrative
(Note 2) 100,305 100,015
---------- ----------
$ 523,568 $ 388,169
---------- ----------
NET INCOME $1,022,765 $ 730,236
========== ==========
GENERAL PARTNER - NET INCOME $ 110,573 $ 76,512
========== ==========
LIMITED PARTNERS - NET INCOME $ 912,192 $ 653,724
========== ==========
NET INCOME per unit $ 2.52 $ 1.81
========== ==========
UNITS OUTSTANDING 361,719 361,719
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $4,030,598 $3,194,701
Interest income 14,425 4,006
---------- ----------
$4,045,023 $3,198,707
COSTS AND EXPENSES:
Lease operating $ 650,362 $ 599,340
Production tax 235,028 190,141
Depreciation, depletion, and
amortization of oil and gas
properties 220,406 112,977
General and administrative
(Note 2) 323,180 323,758
---------- ----------
$1,428,976 $1,226,216
---------- ----------
NET INCOME $2,616,047 $1,972,491
========== ==========
GENERAL PARTNER - NET INCOME $ 279,999 $ 207,016
========== ==========
LIMITED PARTNERS - NET INCOME $2,336,048 $1,765,475
========== ==========
NET INCOME per unit $ 6.46 $ 4.88
========== ==========
UNITS OUTSTANDING 361,719 361,719
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,616,047 $1,972,491
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 220,406 112,977
Settlement of asset retirement
obligations ( 58) -
Increase in accounts receivable -
oil and gas sales ( 415,768) ( 128,793)
Increase in deferred charge ( 13,585) ( 9,592)
Decrease in accounts payable ( 64,927) ( 28,900)
Decrease in gas imbalance payable ( 3,188) ( 29,552)
Increase in accrued liability 12,812 15,840
---------- ----------
Net cash provided by operating
activities $2,351,739 $1,904,471
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 111,834) ($ 5,143)
Proceeds from sale of oil and gas
properties 32,405 -
---------- ----------
Net cash used by investing
activities ($ 79,429) ($ 5,143)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,206,575) ($1,715,887)
---------- ----------
Net cash used by financing
activities ($2,206,575) ($1,715,887)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 65,735 $ 183,441
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,079,057 933,790
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,144,792 $1,117,231
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 574,094 $ 506,061
Accounts receivable:
Oil and gas sales 577,623 365,499
---------- ----------
Total current assets $1,151,717 $ 871,560
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 778,099 729,670
DEFERRED CHARGE 148,970 121,531
---------- ----------
$2,078,786 $1,722,761
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 66,518 $ 77,395
Gas imbalance payable 20,237 22,040
Asset retirement obligation -
current (Note 1) 11,137 10,892
---------- ----------
Total current liabilities $ 97,892 $ 110,327
LONG-TERM LIABILITIES:
Accrued liability $ 36,017 $ 34,323
Asset retirement obligation
(Note 1) 146,320 62,682
---------- ----------
Total long-term liabilities $ 182,337 $ 97,005
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 67,247) ($ 96,672)
Limited Partners, issued and
outstanding, 154,621 units 1,865,804 1,612,101
---------- ----------
Total Partners' capital $1,798,557 $1,515,429
---------- ----------
$2,078,786 $1,722,761
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
-------- --------
REVENUES:
Oil and gas sales $752,178 $525,483
Interest income 2,741 816
-------- --------
$754,919 $526,299
COSTS AND EXPENSES:
Lease operating $100,528 $ 72,863
Production tax 48,604 33,085
Depreciation, depletion, and
amortization of oil and gas
properties 41,765 16,021
General and administrative
(Note 2) 43,640 43,495
-------- --------
$234,537 $165,464
-------- --------
NET INCOME $520,382 $360,835
======== ========
GENERAL PARTNER - NET INCOME $ 55,523 $ 37,444
======== ========
LIMITED PARTNERS - NET INCOME $464,859 $323,391
======== ========
NET INCOME per unit $ 3.00 $ 2.10
======== ========
UNITS OUTSTANDING 154,621 154,621
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $2,054,452 $1,542,920
Interest income 6,959 1,876
---------- ----------
$2,061,411 $1,544,796
COSTS AND EXPENSES:
Lease operating $ 238,987 $ 260,207
Production tax 140,936 101,446
Depreciation, depletion, and
amortization of oil and gas
properties 90,801 55,076
General and administrative
(Note 2) 152,710 151,138
---------- ----------
$ 623,434 $ 567,867
---------- ----------
NET INCOME $1,437,977 $ 976,929
========== ==========
GENERAL PARTNER - NET INCOME $ 151,274 $ 102,462
========== ==========
LIMITED PARTNERS - NET INCOME $1,286,703 $ 874,467
========== ==========
NET INCOME per unit $ 8.32 $ 5.66
========== ==========
UNITS OUTSTANDING 154,621 154,621
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,437,977 $976,929
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 90,801 55,076
Settlement of asset retirement
obligations ( 40) -
Increase in accounts receivable -
oil and gas sales ( 212,124) ( 52,346)
(Increase) decrease in deferred
charge ( 27,439) 738
Decrease in accounts payable ( 21,833) ( 19,157)
Decrease in gas imbalance payable ( 1,803) ( 17,328)
Increase in accrued liability 1,694 6,805
---------- --------
Net cash provided by operating
activities $1,267,233 $950,717
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 58,239) ($ 631)
Proceeds from sale of oil and gas
properties 13,888 -
---------- --------
Net cash used by investing
activities ($ 44,351) ($ 631)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,154,849) ($888,917)
---------- --------
Net cash used by financing
activities ($1,154,849) ($888,917)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 68,033 $ 61,169
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 506,061 467,560
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 574,094 $528,729
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,171,019 $ 967,251
Accounts receivable:
Oil and gas sales 1,213,427 754,092
---------- ----------
Total current assets $2,384,446 $1,721,343
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,633,649 1,385,376
DEFERRED CHARGE 371,693 345,329
---------- ----------
$4,389,788 $3,452,048
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 152,423 $ 157,313
Gas imbalance payable 21,060 22,596
Asset retirement obligation -
current (Note 1) 24,499 25,732
---------- ----------
Total current liabilities $ 197,982 $ 205,641
LONG-TERM LIABILITIES:
Accrued liability $ 103,008 $ 109,349
Asset retirement obligation
(Note 1) 383,791 161,328
---------- ----------
Total long-term liabilities $ 486,799 $ 270,677
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 116,668) ($ 174,338)
Limited Partners, issued and
outstanding, 314,878 units 3,821,675 3,150,068
---------- ----------
Total Partners' capital $3,705,007 $2,975,730
---------- ----------
$4,389,788 $3,452,048
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $1,523,262 $1,091,156
Interest income 5,067 1,613
---------- ----------
$1,528,329 $1,092,769
COSTS AND EXPENSES:
Lease operating $ 197,431 $ 163,645
Production tax 111,811 68,710
Depreciation, depletion, and
amortization of oil and gas
properties 80,677 35,306
General and administrative
(Note 2) 87,490 87,234
---------- ----------
$ 477,409 $ 354,895
---------- ----------
NET INCOME $1,050,920 $ 737,874
========== ==========
GENERAL PARTNER - NET INCOME $ 111,847 $ 76,803
========== ==========
LIMITED PARTNERS - NET INCOME $ 939,073 $ 661,071
========== ==========
NET INCOME per unit $ 2.98 $ 2.10
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $4,242,627 $3,199,311
Interest income 13,300 3,780
Other income 8,411 -
---------- ----------
$4,264,338 $3,203,091
COSTS AND EXPENSES:
Lease operating $ 561,023 $ 586,032
Production tax 306,842 204,749
Depreciation, depletion, and
amortization of oil and gas
properties 121,370 163,623
General and administrative
(Note 2) 284,610 284,704
---------- ----------
$1,273,845 $1,239,108
---------- ----------
NET INCOME $2,990,493 $1,963,983
========== ==========
GENERAL PARTNER - NET INCOME $ 307,886 $ 210,746
========== ==========
LIMITED PARTNERS - NET INCOME $2,682,607 $1,753,237
========== ==========
NET INCOME per unit $ 8.52 $ 5.57
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,990,493 $1,963,983
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 121,370 163,623
Increase in accounts receivable -
oil and gas sales ( 459,335) ( 104,584)
(Increase) decrease in deferred
charge ( 26,364) 3,578
Decrease in accounts payable ( 5,137) ( 52,133)
Increase (decrease) in gas
imbalance payable ( 1,536) 2,492
Decrease in accrued liability ( 6,341) ( 920)
---------- ----------
Net cash provided by operating
activities $2,613,150 $1,976,039
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 163,161) ($ 8,349)
Proceeds from sale of oil and gas
properties 14,995 -
---------- ----------
Net cash used by investing
activities ($ 148,166) ($ 8,349)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,261,216) ($1,792,365)
---------- ----------
Net cash used by financing
activities ($2,261,216) ($1,792,365)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 203,768 $ 175,325
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 967,251 908,655
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,171,019 $1,083,980
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 721,330 $ 680,844
Accounts receivable:
Oil and gas sales 787,246 453,868
---------- ----------
Total current assets $1,508,576 $1,134,712
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,247,255 1,246,328
DEFERRED CHARGE 211,963 208,295
---------- ----------
$2,967,794 $2,589,335
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 98,227 $ 180,564
Gas imbalance payable 43,424 43,424
Asset retirement obligation -
current (Note 1) 1,198 24,458
---------- ----------
Total current liabilities $ 142,849 $ 248,446
LONG-TERM LIABILITIES:
Accrued liability $ 10,219 $ 10,668
Asset retirement obligation
(Note 1) 211,507 77,986
---------- ----------
Total long-term liabilities $ 221,726 $ 88,654
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 86,928) ($ 132,096)
Limited Partners, issued and
outstanding, 228,821 units 2,690,147 2,384,331
---------- ----------
Total Partners' capital $2,603,219 $2,252,235
---------- ----------
$2,967,794 $2,589,335
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
-------- --------
REVENUES:
Oil and gas sales $966,956 $708,149
Interest income 3,637 1,235
Gain on sale of oil and gas
properties - 1,166
-------- --------
$970,593 $710,550
COSTS AND EXPENSES:
Lease operating $122,133 $108,533
Production tax 68,910 50,460
Depreciation, depletion, and
amortization of oil and gas
properties 56,750 41,538
General and administrative
(Note 2) 63,943 63,747
-------- --------
$311,736 $264,278
-------- --------
NET INCOME $658,857 $446,272
======== ========
GENERAL PARTNER - NET INCOME $ 70,630 $ 48,180
======== ========
LIMITED PARTNERS - NET INCOME $588,227 $398,092
======== ========
NET INCOME per unit $ 2.57 $ 1.74
======== ========
UNITS OUTSTANDING 228,821 228,821
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $2,510,259 $2,127,571
Interest income 9,128 2,798
Other income 5,177 -
Gain on sale of oil and gas
properties - 9,419
---------- ----------
$2,524,564 $2,139,788
COSTS AND EXPENSES:
Lease operating $ 320,768 $ 327,431
Production tax 179,470 141,668
Depreciation, depletion, and
amortization of oil and gas
properties 136,410 230,376
General and administrative
(Note 2) 213,789 213,922
---------- ----------
$ 850,437 $ 913,397
---------- ----------
NET INCOME $1,674,127 $1,226,391
========== ==========
GENERAL PARTNER - NET INCOME $ 178,311 $ 142,286
========== ==========
LIMITED PARTNERS - NET INCOME $1,495,816 $1,084,105
========== ==========
NET INCOME per unit $ 6.54 $ 4.74
========== ==========
UNITS OUTSTANDING 228,821 228,821
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,674,127 $1,226,391
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 136,410 230,376
Gain on sale of oil and gas
properties - ( 9,419)
Increase in accounts receivable -
oil and gas sales ( 333,378) ( 73,489)
(Increase) decrease in deferred
charge ( 3,668) 476
Decrease in accounts payable ( 77,841) ( 719)
Increase (decrease) in accrued
liability ( 449) 1,710
---------- ----------
Net cash provided by operating
activities $1,395,201 $1,375,326
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 31,572) ($ 15,473)
Proceeds from the sale of oil and
gas properties - 7,877
---------- ----------
Net cash used by investing
activities ($ 31,572) ($ 7,596)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,323,143) ($1,263,115)
---------- ----------
Net cash used by financing
activities ($1,323,143) ($1,263,115)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 40,486 $ 104,615
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 680,844 638,668
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 721,330 $ 743,283
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 776,157 $ 657,406
Accounts receivable:
Oil and gas sales 824,230 457,333
---------- ----------
Total current assets $1,600,387 $1,114,739
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,207,200 1,187,019
DEFERRED CHARGE 32,203 35,102
---------- ----------
$2,839,790 $2,336,860
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 79,071 $ 235,395
Gas imbalance payable 2,235 3,392
Asset retirement obligation -
current (Note 1) 4,090 6,987
---------- ----------
Total current liabilities $ 85,396 $ 245,774
LONG-TERM LIABILITIES:
Accrued liability $ 20,748 $ 20,227
Asset retirement obligation
(Note 1) 207,830 95,331
---------- ----------
Total long-term liabilities $ 228,578 $ 115,558
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 44,449) ($ 98,202)
Limited Partners, issued and
outstanding, 171,400 Units 2,570,265 2,073,730
---------- ----------
Total Partners' capital $2,525,816 $1,975,528
---------- ----------
$2,839,790 $2,336,860
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- --------
REVENUES:
Oil and gas sales $1,020,162 $758,316
Interest income 3,885 1,133
Gain on sale of oil and gas
properties - 2,852
---------- --------
$1,024,047 $762,301
COSTS AND EXPENSES:
Lease operating $ 88,482 $121,722
Production tax 60,733 48,916
Depreciation, depletion, and
amortization of oil and gas
properties 44,415 102,759
General and administrative
(Note 2) 47,920 47,777
---------- --------
$ 241,550 $321,174
---------- --------
NET INCOME $ 782,497 $441,127
========== ========
GENERAL PARTNER - NET INCOME $ 81,859 $ 53,095
========== ========
LIMITED PARTNERS - NET INCOME $ 700,638 $388,032
========== ========
NET INCOME per unit $ 4.08 $ 2.27
========== ========
UNITS OUTSTANDING 171,400 171,400
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $2,837,237 $2,227,315
Interest income 9,271 2,675
Gain on sale of oil and gas
properties - 24,162
---------- ----------
$2,846,508 $2,254,152
COSTS AND EXPENSES:
Lease operating $ 234,066 $ 267,892
Production tax 175,652 144,651
Depreciation, depletion, and
amortization of oil and gas
properties 103,718 157,307
General and administrative
(Note 2) 165,358 164,907
---------- ----------
$ 678,794 $ 734,757
---------- ----------
NET INCOME $2,167,714 $1,519,395
========== ==========
GENERAL PARTNER - NET INCOME $ 225,179 $ 163,857
========== ==========
LIMITED PARTNERS - NET INCOME $1,942,535 $1,355,538
========== ==========
NET INCOME per unit $ 11.33 $ 7.91
========== ==========
UNITS OUTSTANDING 171,400 171,400
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,167,714 $1,519,395
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 103,718 157,307
Gain on sale of oil and gas
properties - ( 24,162)
Increase in accounts receivable -
oil and gas sales ( 366,897) ( 92,521)
(Increase) decrease in deferred
charge 2,899 ( 654)
Increase (decrease) in accounts
payable ( 145,094) 25,311
Decrease in gas imbalance payable ( 1,157) ( 165)
Increase (decrease) in accrued
liability 521 ( 61)
---------- ----------
Net cash provided by operating
activities $1,761,704 $1,584,450
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 25,527) ($ 30,710)
Proceeds from sale of oil and
gas properties - 21,745
---------- ----------
Net cash used by investing activities ($ 25,527) ($ 8,965)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,617,426) ($1,481,689)
---------- ----------
Net cash used by financing
activities ($1,617,426) ($1,481,689)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 118,751 $ 93,796
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 657,406 604,369
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 776,157 $ 698,165
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,655,206 $1,401,928
Accounts receivable:
Oil and gas sales 1,753,930 972,620
---------- ----------
Total current assets $3,409,136 $2,374,548
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,595,621 2,554,683
DEFERRED CHARGE 68,976 75,307
---------- ----------
$6,073,733 $5,004,538
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 168,698 $ 498,893
Gas imbalance payable 9,519 11,846
Asset retirement obligation -
current (Note 1) 8,752 15,421
---------- ----------
Total current liabilities $ 186,969 $ 526,160
LONG-TERM LIABILITIES:
Accrued liability $ 42,178 $ 35,560
Asset retirement obligation
(Note 1) 446,097 203,216
---------- ----------
Total long-term liabilities $ 488,275 $ 238,776
PARTNERS' CAPITAL (DEFICIT):
General Partner $ 11,863 ($ 101,669)
Limited Partners, issued and
outstanding, 372,189 Units 5,386,626 4,341,271
---------- ----------
Total Partners' capital $5,398,489 $4,239,602
---------- ----------
$6,073,733 $5,004,538
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $2,307,415 $1,607,190
Interest income 8,397 2,493
Gain on sale of oil and gas
properties - 5,963
---------- ----------
$2,315,812 $1,615,646
COSTS AND EXPENSES:
Lease operating $ 189,666 $ 259,284
Production tax 138,944 104,258
Depreciation, depletion, and
amortization of oil and gas
properties 94,797 233,199
General and administrative
(Note 2) 102,861 102,577
---------- ----------
$ 526,268 $ 699,318
---------- ----------
NET INCOME $1,789,544 $ 916,328
========== ==========
GENERAL PARTNER - NET INCOME $ 186,646 $ 112,053
========== ==========
LIMITED PARTNERS - NET INCOME $1,602,898 $ 804,275
========== ==========
NET INCOME per unit $ 4.30 $ 2.16
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $6,041,256 $4,731,606
Interest income 20,062 5,808
Gain on sale of oil and gas
properties - 50,598
---------- ----------
$6,061,318 $4,788,012
COSTS AND EXPENSES:
Lease operating $ 519,298 $ 574,445
Production tax 374,454 309,150
Depreciation, depletion, and
amortization of oil and gas
properties 225,137 350,549
General and administrative
(Note 2) 330,639 332,274
---------- ----------
$1,449,528 $1,566,418
---------- ----------
NET INCOME $4,611,790 $3,221,594
========== ==========
GENERAL PARTNER - NET INCOME $ 479,435 $ 349,004
========== ==========
LIMITED PARTNERS - NET INCOME $4,132,355 $2,872,590
========== ==========
NET INCOME per unit $ 11.10 $ 7.72
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $4,611,790 $3,221,594
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 225,137 350,549
Gain on sale of oil and gas
properties - ( 50,598)
Increase in accounts receivable -
oil and gas sales ( 781,310) ( 196,639)
(Increase) decrease in deferred
charge 6,331 ( 1,233)
Increase (decrease) in accounts
payable ( 305,682) 54,287
Increase (decrease) in gas
imbalance payable ( 2,327) 3,412
Increase in accrued liability 6,618 379
---------- ----------
Net cash provided by operating
activities $3,760,557 $3,381,751
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 54,376) ($ 67,130)
Proceeds from sale of oil and
gas properties - 45,638
---------- ----------
Net cash used by investing
activities ($ 54,376) ($ 21,492)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($3,452,903) ($3,154,342)
---------- ----------
Net cash used by financing
activities ($3,452,903) ($3,154,342)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 253,278 $ 205,917
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,401,928 1,284,869
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,655,206 $1,490,786
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-29-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 392,473 $ 329,148
Accounts receivable:
Oil and gas sales 413,114 232,187
---------- ----------
Total current assets $ 805,587 $ 561,335
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 616,628 605,801
DEFERRED CHARGE 17,017 19,734
---------- ----------
$1,439,232 $1,186,870
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 40,429 $ 118,306
Asset retirement obligation -
current (Note 1) 2,113 3,884
---------- ----------
Total current liabilities $ 42,542 $ 122,190
LONG-TERM LIABILITIES:
Accrued liability $ 11,884 $ 11,907
Asset retirement obligation
(Note 1) 109,232 49,677
---------- ----------
Total long-term liabilities $ 121,116 $ 61,584
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 27,811) ($ 54,377)
Limited Partners, issued and
outstanding, 91,711 Units 1,303,385 1,057,473
---------- ----------
Total Partners' capital $1,275,574 $1,003,096
---------- ----------
$1,439,232 $1,186,870
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-30-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
-------- --------
REVENUES:
Oil and gas sales $546,763 $381,538
Interest income 1,922 525
Gain on sale of oil and gas
properties - 1,379
-------- --------
$548,685 $383,442
COSTS AND EXPENSES:
Lease operating $ 45,781 $ 62,041
Production tax 33,370 24,914
Depreciation, depletion, and
amortization of oil and gas
properties 22,767 55,636
General and administrative
(Note 2) 26,113 26,025
-------- --------
$128,031 $168,616
-------- --------
NET INCOME $420,654 $214,826
======== ========
GENERAL PARTNER - NET INCOME $ 43,923 $ 26,364
======== ========
LIMITED PARTNERS - NET INCOME $376,731 $188,462
======== ========
NET INCOME per unit $ 4.10 $ 2.05
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-31-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $1,431,686 $1,129,619
Interest income 4,524 1,311
Gain on sale of oil and gas
properties - 11,749
---------- ----------
$1,436,210 $1,142,679
COSTS AND EXPENSES:
Lease operating $ 123,372 $ 138,904
Production tax 90,013 74,416
Depreciation, depletion, and
amortization of oil and gas
properties 53,845 83,744
General and administrative
(Note 2) 99,751 98,468
---------- ----------
$ 366,981 $ 395,532
---------- ----------
NET INCOME $1,069,229 $ 747,147
========== ==========
GENERAL PARTNER - NET INCOME $ 111,317 $ 81,167
========== ==========
LIMITED PARTNERS - NET INCOME $ 957,912 $ 665,980
========== ==========
NET INCOME per unit $ 10.44 $ 7.26
========== ==========
UNITS OUTSTANDING 91,711 91,711
========== ==========
The accompanying condensed notes are an integral part of
these combined financial statements.
-32-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
(Unaudited)
2005 2004
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,069,229 $747,147
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 53,845 83,744
Gain on sale of oil and gas
properties - ( 11,749)
Increase in accounts receivable -
oil and gas sales ( 180,927) ( 46,382)
Decrease in deferred charge 2,717 350
Increase (decrease) in accounts
payable ( 71,762) 11,967
Decrease in accrued liability ( 23) ( 426)
---------- --------
Net cash provided by operating
activities $ 873,079 $784,651
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 13,003) ($ 16,778)
Proceeds from sale of oil and
gas properties - 10,643
---------- --------
Net cash used by investing
activities ($ 13,003) ($ 6,135)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 796,751) ($730,512)
---------- --------
Net cash used by financing
activities ($ 796,751) ($730,512)
---------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 63,325 $ 48,004
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 329,148 305,096
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 392,473 $353,100
========== ========
The accompanying condensed notes are an integral part of
these combined financial statements.
-33-
GEODYNE ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of September 30, 2005, combined statements
of operations for the three and nine months ended September 30, 2005 and
2004, and combined 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 limited partnerships, without audit. Each
limited partnership is a general partner in the related Geodyne Production
Partnership in which Geodyne Resources, Inc. serves as the managing
partner. Unless the context indicates otherwise, all references to a
"Partnership" or the "Partnerships" are references to the limited
partnership and its related production partnership, collectively, and all
references to the "General Partner" are references to the general partner
of the limited partnerships and the managing partner of the production
partnerships, collectively. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the combined financial
position at September 30, 2005, the combined results of operations for the
three and nine months ended September 30, 2005 and 2004, and the combined
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.
-34-
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.
ACCRUED LIABILITY - OTHER
-------------------------
The Accrued Liability - Other at December 31, 2004 for the II-A
Partnership represents a charge accrued for the payment of a judgment
related to plugging liabilities. The decrease in Accrued Liability - Other
from December 31, 2004 to September 30, 2005 was due to a ruling made by
the Texas Supreme Court on April 8, 2005 that the Partnership did not owe
this liability.
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
-35-
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 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 II-A, II-B, II-C, II-D, II-E,
II-F, II-G, and II-H Partnerships recognized approximately $139,000,
$59,000, $27,000, $58,000, $28,000, $23,000, $50,000 and $12,000,
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.
II-A Partnership
----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $400,259 $282,712
Additions and revisions 455,395 78
Accretion expense 22,249 2,328
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $877,903 $285,118
======== ========
-36-
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $393,670 $277,914
Additions and revisions 455,751 78
Settlements and disposals ( 1,820) -
Accretion expense 30,302 7,126
-------- --------
Total Asset Retirement,
Obligation, End of Period $877,903 $285,118
======== ========
Asset Retirement Obligation -
Current $ 16,851 $ 15,007
Asset Retirement Obligation -
Long-Term 861,052 270,111
II-B Partnership
----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $213,451 $205,612
Additions and revisions 151,673 -
Accretion expense 8,229 1,698
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $373,353 $207,310
======== ========
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $210,198 $202,141
Additions and revisions 151,673 -
Settlements and disposals ( 987) -
Accretion expense 12,469 5,169
-------- --------
Total Asset Retirement,
Obligation, End of Period $373,353 $207,310
======== ========
Asset Retirement Obligation -
Current $ 10,432 $ 16,434
Asset Retirement Obligation -
Long-Term 362,921 190,876
-37-
II-C Partnership
----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $ 74,697 $72,606
Additions and revisions 78,750 -
Accretion expense 4,010 671
-------- -------
Total Asset Retirement,
Obligation, End of Quarter $157,457 $73,277
======== =======
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $ 73,574 $71,173
Additions and revisions 78,918 -
Settlements and disposals ( 673) -
Accretion expense 5,638 2,104
-------- -------
Total Asset Retirement,
Obligation, End of Period $157,457 $73,277
======== =======
Asset Retirement Obligation -
Current $ 11,137 $10,460
Asset Retirement Obligation -
Long-Term 146,320 62,817
II-D Partnership
----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $192,966 $189,766
Additions and revisions 204,930 -
Accretion expense 10,394 1,868
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $408,290 $191,634
======== ========
-38-
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $187,060 $185,990
Additions and revisions 206,692 -
Accretion expense 14,538 5,644
-------- --------
Total Asset Retirement,
Obligation, End of Period $408,290 $191,634
======== ========
Asset Retirement Obligation -
Current $ 24,499 $ 25,370
Asset Retirement Obligation -
Long-Term 383,791 166,264
II-E Partnership
----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $104,945 $100,357
Additions and revisions 102,471 ( 132)
Accretion expense 5,289 977
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $212,705 $101,202
======== ========
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $102,444 $ 98,320
Additions and revisions 102,712 ( 132)
Accretion expense 7,549 3,014
-------- --------
Total Asset Retirement,
Obligation, End of Period $212,705 $101,202
======== ========
Asset Retirement Obligation -
Current $ 1,198 $ 24,164
Asset Retirement Obligation -
Long-Term 211,507 77,038
-39-
II-F Partnership
----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $105,266 $100,278
Additions and revisions 101,329 -
Settlements and disposals - ( 322)
Accretion expense 5,325 1,028
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $211,920 $100,984
======== ========
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $102,318 $ 98,166
Additions and revisions 101,914 -
Settlements and disposals - ( 322)
Accretion expense 7,688 3,140
-------- --------
Total Asset Retirement,
Obligation, End of Period $211,920 $100,984
======== ========
Asset Retirement Obligation -
Current $ 4,090 $ 5,316
Asset Retirement Obligation -
Long-Term 207,830 95,668
II-G Partnership
----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $224,865 $214,245
Additions and revisions 218,530 -
Settlements and disposals - ( 673)
Accretion expense 11,454 2,187
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $454,849 $215,759
======== ========
-40-
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $218,637 $209,768
Additions and revisions 219,756 -
Settlements and disposals - ( 673)
Accretion expense 16,456 6,664
-------- --------
Total Asset Retirement,
Obligation, End of Period $454,849 $215,759
======== ========
Asset Retirement Obligation -
Current $ 8,752 $ 11,648
Asset Retirement Obligation -
Long-Term 446,097 204,111
II-H Partnership
----------------
Three Months Three Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, July 1 $ 55,098 $52,511
Additions and revisions 53,424 -
Settlements and disposals - ( 156)
Accretion expense 2,823 524
-------- -------
Total Asset Retirement,
Obligation, End of Quarter $111,345 $52,879
======== =======
Nine Months Nine Months
Ended Ended
9/30/2005 9/30/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $ 53,561 $51,379
Additions and revisions 53,708 -
Settlements and disposals - ( 156)
Accretion expense 4,076 1,656
-------- -------
Total Asset Retirement,
Obligation, End of Period $111,345 $52,879
======== =======
Asset Retirement Obligation -
Current $ 2,113 $ 2,899
Asset Retirement Obligation -
Long-Term 109,232 49,980
-41-
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
----------- ------------------ --------------
II-A $6,401 $127,443
II-B 5,115 95,190
II-C 2,951 40,689
II-D 4,627 82,863
II-E 3,727 60,216
II-F 2,815 45,105
II-G 4,917 97,944
II-H 1,978 24,135
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
----------- ------------------ --------------
II-A $41,750 $382,329
II-B 37,610 285,570
II-C 30,643 122,067
II-D 36,021 248,589
II-E 33,141 180,648
II-F 30,043 135,315
II-G 36,807 293,832
II-H 27,346 72,405
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.
ACCOUNTS RECEIVABLE - RELATED PARTY
-----------------------------------
The Accounts Receivable - Related Party at September 30, 2005 for the II-A
Partnership represents oil and gas revenues initially paid directly to an
affiliate that have not been disbursed to the II-A Partnership as of
September 30, 2005. Such amount is expected to be received during the
fourth quarter of 2005.
-42-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
- -------
The Partnerships are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production 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.
-43-
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
II-A July 22, 1987 $48,428,300
II-B October 14, 1987 36,171,900
II-C January 14, 1988 15,462,100
II-D May 10, 1988 31,487,800
II-E September 27, 1988 22,882,100
II-F January 5, 1989 17,140,000
II-G April 10, 1989 37,218,900
II-H May 17, 1989 9,171,100
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. During the nine months ended September 30, 2005,
capital expenditures for the II-B and II-C Partnerships totaled
approximately $91,000 and $50,000, respectively. These expenditures were
primarily due to the recompletion of the Berniece 1 well located in
Grayson County, Texas. The II-B and II-C Partnerships own working
interests of approximately 35.2% and 15.1%, respectively, in this well.
During the nine months ended September 30, 2005, capital expenditures for
the II-D Partnership totaled approximately $148,000. These expenditures
were primarily due to the recompletion of the Blakenship #4-8 well located
in Fremont County, Wyoming. The II-D Partnership owns working interest of
approximately 39.3% in this well. Other capital expenditures incurred by
the Partnerships during the nine months ended September 30, 2005 and 2004
were not material to the Partnerships' cash flows.
-44-
Pursuant to the terms of the Partnerships' partnership agreements (the
"Partnership Agreements"), the Partnerships would have terminated on
December 31, 2001. 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 third
two year extension period to December 31, 2007.
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 than complete units of depreciable property are retired or sold,
the proceeds are credited to oil and gas properties.
The Partnerships evaluate the recoverability of the carrying costs of
their proved oil and gas properties for each oil and gas field (rather
than separately for each well). If the unamortized costs of oil and gas
properties within a field exceeds the expected undiscounted future cash
flows from such properties, the cost of the properties is written down to
fair value, which is determined by using the estimated discounted future
-45-
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.
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.
-46-
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 gas
volume to differ from the reserve reports prepared by the General Partner.
-47-
II-A Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 640,885 6,276,815
Production ( 15,816) ( 168,702)
Extensions and discoveries 187 2,716
Revisions of previous
estimates 37,034 113,517
------- ---------
Proved reserves, March 31, 2005 662,290 6,224,346
Production ( 13,187) ( 161,605)
Extensions and discoveries 800 18,941
Revisions of previous
estimates ( 290) 173,417
------- ---------
Proved reserves, June 30, 2005 649,613 6,255,099
Production ( 15,065) ( 154,320)
Extensions and discoveries 59 4,581
Revisions of previous
estimates 21,229 190,582
------- ---------
Proved reserves, Sept. 30, 2005 655,836 6,295,942
======= =========
-48-
II-B Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 464,848 4,820,010
Production ( 11,643) ( 129,650)
Extensions and discoveries 64 4,059
Revisions of previous
estimates 22,552 58,832
------- ---------
Proved reserves, March 31, 2005 475,821 4,753,251
Production ( 9,816) ( 116,193)
Extensions and discoveries 12 9,749
Revisions of previous
estimates ( 19,347) 33,530
------- ---------
Proved reserves, June 30, 2005 446,670 4,680,337
Production ( 9,782) ( 133,131)
Extensions and discoveries 11 2,545
Revisions of previous
estimates 25,318 91,575
------- ---------
Proved reserves, Sept. 30, 2005 462,217 4,641,326
======= =========
-49-
II-C Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 165,761 3,453,278
Production ( 4,575) ( 77,808)
Extension and discoveries 32 1,854
Revisions of previous
estimates 7,005 47,020
------- ---------
Proved reserves, March 31, 2005 168,223 3,424,344
Production ( 3,361) ( 78,411)
Extension and discoveries 7 5,875
Revisions of previous
estimates ( 2,175) 38,848
------- ---------
Proved reserves, June 30, 2005 162,694 3,390,656
Production ( 3,456) ( 75,921)
Extension and discoveries 11 18,247
Revisions of previous
estimates 2,775 87,989
------- ---------
Proved reserves, Sept. 30, 2005 162,024 3,420,971
======= =========
-50-
II-D Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 187,315 9,092,389
Production ( 7,013) ( 185,605)
Extensions and discoveries 5 11,470
Revisions of previous
estimates 6,872 164,006
------- ---------
Proved reserves, March 31, 2005 187,179 9,082,260
Production ( 4,408) ( 173,273)
Extensions and discoveries 4 -
Revisions of previous
estimates ( 718) 79,699
------- ---------
Proved reserves, June 30, 2005 182,057 8,988,686
Production ( 5,043) ( 171,734)
Extensions and discoveries 6 186,039
Revisions of previous
estimates 4,144 389,471
------- ---------
Proved reserves, Sept. 30, 2005 181,164 9,392,462
======= =========
-51-
II-E Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 180,202 4,984,738
Production ( 5,318) ( 98,896)
Extensions and discoveries 186 6,167
Revisions of previous
estimates 7,387 81,303
------- ---------
Proved reserves, March 31, 2005 182,457 4,973,312
Production ( 3,842) ( 87,304)
Extensions and discoveries 510 3,354
Revisions of previous
estimates 2,368 29,614
------- ---------
Proved reserves, June 30, 2005 181,493 4,918,976
Production ( 4,451) ( 94,171)
Extensions and discoveries 659 1,317
Revisions of previous
estimates 1,549 174,322
------- ---------
Proved reserves, Sept. 30, 2005 179,250 5,000,444
======= =========
-52-
II-F Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 341,736 3,712,870
Production ( 6,823) ( 104,383)
Extension and discoveries 439 7,152
Revisions of previous
estimates 8,721 62,265
------- ---------
Proved reserves, March 31, 2005 344,073 3,677,904
Production ( 6,372) ( 103,555)
Extension and discoveries 1,245 8,451
Revisions of previous
estimates 7,595 99,991
------- ---------
Proved reserves, June 30, 2005 346,541 3,682,791
Production ( 6,361) ( 89,579)
Extension and discoveries 1,620 669
Revisions of previous
estimates ( 2,175) 61,050
------- ---------
Proved reserves, Sept. 30, 2005 339,625 3,654,931
======= =========
-53-
II-G Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 716,461 7,960,566
Production ( 14,304) ( 223,081)
Extension and discoveries 921 14,464
Revisions of previous
estimates 18,322 136,471
------- ---------
Proved reserves, March 31, 2005 721,400 7,888,420
Production ( 13,416) ( 198,301)
Extension and discoveries 3,508 18,546
Revisions of previous
estimates 15,062 185,201
------- ---------
Proved reserves, June 30, 2005 726,554 7,893,866
Production ( 13,354) ( 213,516)
Extension and discoveries 2,484 1,366
Revisions of previous
estimates ( 3,522) 155,581
------- ---------
Proved reserves, Sept. 30, 2005 712,162 7,837,297
======= =========
-54-
II-H Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 166,923 1,928,846
Production ( 3,322) ( 53,716)
Extension and discoveries 213 3,519
Revisions of previous
estimates 4,244 33,734
------- ---------
Proved reserves, March 31, 2005 168,058 1,912,383
Production ( 3,074) ( 47,242)
Extension and discoveries 603 4,061
Revisions of previous
estimates 3,652 41,465
------- ---------
Proved reserves, June 30, 2005 169,239 1,910,667
Production ( 3,085) ( 51,155)
Extension and discoveries 844 3,045
Revisions of previous
estimates ( 1,104) 34,976
------- ---------
Proved reserves, Sept. 30, 2005 165,894 1,897,533
======= =========
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 oil and gas prices in effect on the dates
corresponding to the reserve valuations. Changes in the oil and gas prices
cause the estimates of remaining economically recoverable reserves, as
well as the values placed on said reserves to fluctuate. The prices used
in calculating the net present value attributable to the Partnerships'
proved reserves do not necessarily reflect market prices for oil and gas
production subsequent to September 30, 2005. There can be no assurance
-55-
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
----------- ------- ------- ------- --------
II-A $51,084 $28,281 $28,682 $ 22,578
II-B 36,137 22,017 21,176 16,787
II-C 24,917 12,581 12,892 10,385
II-D 62,363 28,119 28,456 23,002
II-E 30,458 15,942 16,143 13,208
II-F 28,099 16,225 16,089 13,041
II-G 59,937 34,443 34,175 27,698
II-H 14,379 8,194 8,143 6,599
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:
-56-
* 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 eegulations 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.
-57-
II-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 $2,048,071 $1,504,390
Oil and gas production expenses $ 432,336 $ 331,420
Barrels produced 15,065 15,639
Mcf produced 154,320 152,494
Average price/Bbl $ 58.29 $ 41.38
Average price/Mcf $ 7.58 $ 5.62
As shown in the table above, total oil and gas sales increased $543,681
(36.1%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately (i)
$255,000 and $302,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $10,000 related to an increase
in volumes of gas sold. Volumes of oil sold decreased 574 barrels, while
volumes of gas sold increased 1,826 Mcf for the three months ended
September 30, 2005 as compared to the three months ended September 30,
2004. The increase in volumes of gas sold was primarily due to (i)
positive prior period volume adjustments made by the operators on several
wells during the three months ended September 30, 2005, (ii) an increase
in production on two significant wells following the successful workover
of those wells during mid 2004, and (iii) the successful completion of
several new wells during late 2004 and early 2005. These increases were
partially offset by normal declines in production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $100,916 (30.4%) 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
several 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) positive prior period lease operating expense adjustments
made on several other wells during the three months ended September 30,
2005. These increases were partially offset by workover expenses incurred
on several wells during the three months ended September 30, 2004. As a
percentage of oil and gas sales, these expenses decreased to 21.1% for the
three months ended September 30, 2005 from 22.0% for the three months
ended September 30, 2004.
Depreciation, depletion, and amortization of oil and gas properties
increased $123,538 (262.0%) for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. Of this increase
-58-
(i) approximately $98,000 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 $63,000 was related to previously fully depleted wells, and
(ii) approximately $18,000 was due to accretion of these additional asset
retirement obligations. As a percentage of oil and gas sales, this expense
increased to 8.3% for the three months ended September 30, 2005 from 3.1%
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 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 6.5% for the three months ended
September 30, 2005 from 8.9% 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 $5,483,417 $4,345,158
Oil and gas production expenses $1,170,747 $1,061,680
Barrels produced 44,068 50,491
Mcf produced 484,627 494,755
Average price/Bbl $ 52.46 $ 35.72
Average price/Mcf $ 6.54 $ 5.14
As shown in the table above, total oil and gas sales increased $1,138,259
(26.2%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately
$738,000 and $682,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
by decreases of approximately $230,000 and $52,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 6,423 barrels and 10,128 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 and (ii) a negative prior period volume
adjustment made by the operator on one significant well during the nine
months ended September 30, 2005. The decrease in volumes of gas sold was
primarily due to (i) normal declines in production and (ii) the
shutting-in of one significant well during late 2004 and early 2005 due to
a transportation problem associated with line pressure. As of the date of
this Quarterly Report, the shut-in well has returned to production. These
-59-
decreases were partially offset by (i) positive prior period volume
adjustments made by the operators on several wells during the nine months
ended September 30, 2005, (ii) an increase in production on two
significant wells following the successful workover of those wells during
mid 2004, and (iii) the successful completion of several new wells during
late 2004 and early 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $109,067 (10.3%) 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) 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) positive prior period lease operating expense adjustments
made on several other wells during the nine months ended September 30,
2005. These increases were partially offset by (i) workover expenses
incurred on several wells during the nine months ended September 30, 2004
and (ii) a reversal during the nine months ended September 30, 2005 of
approximately $27,000 of a charge previously accrued for a judgment. As a
percentage of oil and gas sales, these expenses decreased to 21.4% for the
nine months ended September 30, 2005 from 24.4% 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 $154,516 (107.5%) for the nine months ended September 30, 2005
as compared to the nine months ended September 30, 2004. Of this increase
(i) approximately $98,000 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 $63,000 was related to previously fully depleted wells, and
(ii) approximately $18,000 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. As a percentage of oil and gas
sales, this expense increased to 5.4% for the nine months ended September
30, 2005 from 3.3% 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.
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 7.7% 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.
-60-
The Limited Partners have received cash distributions through September
30, 2005 totaling $63,883,357 or 131.91% of Limited Partners' capital
contributions.
II-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 $1,540,789 $1,116,621
Oil and gas production expenses $ 324,918 $ 247,402
Barrels produced 9,782 10,226
Mcf produced 133,131 113,757
Average price/Bbl $ 59.05 $ 43.73
Average price/Mcf $ 7.23 $ 5.88
As shown in the table above, total oil and gas sales increased $424,168
(38.0%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately (i)
$150,000 and $180,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $114,000 was related to an
increase in volumes of gas sold. Volumes of oil sold decreased 444
barrels, while volumes of gas sold increased 19,374 Mcf for the three
months ended September 30, 2005 as compared to the three months ended
September 30, 2004. The increase in volumes of gas sold was primarily due
to a positive prior period volume adjustment made by the operator on one
significant well during the three months ended September 30, 2005, which
increase was partially offset by normal declines in production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $77,516 (31.3%) 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) workover expenses incurred on
several wells during the three months ended September 30, 2005 and (ii) an
increase in production taxes associated with the increase in oil and gas
sales. 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 21.1%
for the three months ended September 30, 2005 from 22.2% for the three
months ended September 30, 2004.
Depreciation, depletion, and amortization of oil and gas properties
increased $57,593 (141.3%) for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. Of this increase
(i) approximately $46,000 was due to the depletion of additional
-61-
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 $36,000 was related to previously fully depleted wells, and
(ii) approximately $6,000 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. As a percentage of oil and gas
sales, this expense increased to 6.4% for the three months ended September
30, 2005 from 3.6% 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 6.5% for the three months ended
September 30, 2005 from 9.0% 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 $4,030,598 $3,194,701
Oil and gas production expenses $ 885,390 $ 789,481
Barrels produced 31,241 32,500
Mcf produced 378,974 393,129
Average price/Bbl $ 51.91 $ 37.25
Average price/Mcf $ 6.36 $ 5.05
As shown in the table above, total oil and gas sales increased $835,897
(26.2%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately
$458,000 and $496,000, respectively, were related to increases in the
average prices of oil and gas sold. Volumes of oil and gas sold decreased
1,259 barrels and 14,155 Mcf, respectively, for the nine months ended
September 30, 2005 as compared to the nine months ended September 30,
2004.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $95,909 (12.1%) 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 and (ii) an
increase in production taxes associated with the increase in oil and gas
sales. These increases were partially offset by workover expenses incurred
-62-
on several other wells during the nine months ended September 30, 2004. As
a percentage of oil and gas sales, these expenses decreased to 22.0% 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
increased $107,429 (95.1%) for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. This increase was
primarily due to an increase in depletable oil and gas properties during
2005 primarily due to the recompletion of one significant well. This
increase was also due to increases of (i) approximately $46,000 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 $36,000 was related to previously
fully depleted wells, and (ii) approximately $6,000 due to accretion of
these additional asset retirement obligations. As a percentage of oil and
gas sales, this expense increased to 5.5% for the nine months ended
September 30, 2005 from 3.5% 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.
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 8.0% for the nine months ended
September 30, 2005 from 10.1% 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 $45,929,916 or 126.98% of Limited Partners' capital
contributions.
II-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 $752,178 $525,483
Oil and gas production expenses $149,132 $105,948
Barrels produced 3,456 3,587
Mcf produced 75,921 65,885
Average price/Bbl $ 59.20 $ 44.23
Average price/Mcf $ 7.21 $ 5.57
As shown in the table above, total oil and gas sales increased $226,695
(43.1%) for the three months ended September 30, 2005 as compared to the
-63-
three months ended September 30, 2004. Of this increase, approximately (i)
$52,000 and $125,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $56,000 was related to an
increase in volumes of gas sold. Volumes of oil sold decreased 131
barrels, while volumes of gas sold increased 10,036 Mcf for the three
months ended September 30, 2005 as compared to the three months ended
September 30, 2004. The increase in volumes of gas sold was primarily due
to (i) the first receipt of revenues on one significant well during late
2004 and (ii) a positive prior period volume adjustment made by the
operator on another significant well 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 $43,184 (40.8%) 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
several wells during the three months ended September 30, 2005 and (ii) an
increase in production taxes associated with the increase in oil and gas
sales. As a percentage of oil and gas sales, these expenses decreased to
19.8% for the three months ended September 30, 2005 from 20.2% for the
three months ended September 30, 2004.
Depreciation, depletion, and amortization of oil and gas properties
increased $25,744 (160.7%) for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. Of this increase
(i) approximately $21,000 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 $15,000 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. As a percentage of oil and gas
sales, this expense increased to 5.6% 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 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 5.8% for the three months ended
September 30, 2005 from 8.3% for the three months ended September 30,
2004. This percentage decrease was primarily due the increase in oil and
gas sales.
-64-
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 $2,054,452 $1,542,920
Oil and gas production expenses $ 379,923 $ 361,653
Barrels produced 11,392 11,787
Mcf produced 232,140 224,855
Average price/Bbl $ 51.47 $ 37.21
Average price/Mcf $ 6.32 $ 4.91
As shown in the table above, total oil and gas sales increased $511,532
(33.2%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately (i)
$162,000 and $328,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $36,000 was related to an
increase in volumes of gas sold. Volumes of oil sold decreased 395
barrels, while volumes of gas sold increased 7,285 Mcf for the nine months
ended September 30, 2005 as compared to the nine months ended September
30, 2004. The increase in volumes of gas sold was primarily due to (i) the
first receipt of revenues on one significant well during late 2004, (ii) a
positive prior period volume adjustment made by the operator on another
significant well during the nine months ended September 30, 2005, and
(iii) an increase in production on several wells due to the successful
workovers of those wells during late 2004 and early 2005. These increases
were partially offset by (i) normal declines in production, (ii) the
shutting-in of one significant well during late 2004 and early 2005 due to
a transportation problem associated with line pressure, and (iii) a
positive prior period volume adjustment made by the operator on another
significant well during the nine months ended September 30, 2004. As of
the date of this Quarterly Report, the shut-in well has returned to
production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $18,270 (5.1%) 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 and (ii) workover
expenses incurred on several wells 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
18.5% for the nine months ended September 30, 2005 from 23.4% for the nine
months ended September 30, 2004. This percentage decrease was primarily
due to the increase in oil and gas sales.
-65-
Depreciation, depletion, and amortization of oil and gas properties
increased $35,725 (64.9%) for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. This increase was
primarily due to an increase in depletable oil and gas properties during
2005 primarily due to the recompletion of one significant well. This
increase was also due to increases of (i) approximately $21,000 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 $15,000 was related to previously
fully depleted wells, and (ii) approximately $3,000 due to accretion of
these additional asset retirement obligations. These increases were
partially offset by (i) upward revisions in the estimates of remaining gas
reserves on one significant well since September 30, 2004, (ii) the
receipt of equipment credits on an abandoned well during the nine months
ended September 30, 2005, and (iii) one significant well being fully
depleted during the nine months ended September 30, 2004 due to the lack
of remaining reserves. As a percentage of oil and gas sales, this expense
increased to 4.4% for the nine months ended September 30, 2005 from 3.6%
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.
General and administrative expenses increased $1,572 (1.0%) 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 7.4% 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 $21,695,686 or 140.32% of Limited Partners' capital
contributions.
-66-
II-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 $1,523,262 $1,091,156
Oil and gas production expenses $ 309,242 $ 232,355
Barrels produced 5,043 6,060
Mcf produced 171,734 164,451
Average price/Bbl $ 56.83 $ 40.58
Average price/Mcf $ 7.20 $ 5.14
As shown in the table above, total oil and gas sales increased $432,106
(39.6%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately (i)
$82,000 and $354,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $37,000 was related to an
increase in volumes of gas sold. These increases were partially offset by
a decrease of approximately $41,000 related to a decrease in volumes of
oil sold. Volumes of oil sold decreased 1,017 barrels, while volumes of
gas sold increased 7,283 Mcf 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) production difficulties on
one significant well during the three months ended September 30, 2005 and
(ii) normal declines in production. The increase in volumes of gas sold
was primarily due to (i) an increase in production on several wells
following successful workovers of those wells during late 2004 and early
2005, (ii) the first receipt of revenues on one significant well during
late 2004, and (iii) a positive prior period volume adjustment made by the
operator on another significant well 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 $76,887 (33.1%) 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 and (ii) workover
expenses incurred on several wells during the three months ended September
30, 2005. As a percentage of oil and gas sales, these expenses decreased
to 20.3% for the three months ended September 30, 2005 from 21.3% for the
three months ended September 30, 2004.
-67-
Depreciation, depletion, and amortization of oil and gas properties
increased $45,371 (128.5%) for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. Of this increase
(i) approximately $41,000 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 $25,000 was related to previously fully depleted wells, and
(ii) approximately $8,000 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 two significant wells. These increases were partially
offset by upward revisions in the estimates of remaining gas reserves
since September 30, 2004. As a percentage of oil and gas sales, this
expense increased to 5.3% for the three months ended September 30, 2005
from 3.2% 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 5.7% for the three months ended
September 30, 2005 from 8.0% 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 $4,242,627 $3,199,311
Oil and gas production expenses $ 867,865 $ 790,781
Barrels produced 16,464 19,304
Mcf produced 530,612 500,745
Average price/Bbl $ 49.80 $ 36.17
Average price/Mcf $ 6.45 $ 4.99
As shown in the table above, total oil and gas sales increased $1,043,316
(32.6%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately (i)
$224,000 and $773,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $149,000 was related to an
increase in volumes of gas sold. These increases were partially offset by
a decrease of approximately $103,000 related to a decrease in volumes of
oil sold. Volumes of oil sold decreased 2,840 barrels, while volumes of
gas sold increased 29,867 Mcf for the nine months ended September 30, 2005
as compared to the nine months ended September 30, 2004. The decrease in
-68-
volumes of oil sold was primarily due to (i) normal declines in production
and (ii) production difficulties on one significant well during the nine
months ended September 30, 2005. The increase in volumes of gas sold was
primarily due to (i) an increase in production on several wells following
successful workovers of those wells during late 2004 and early 2005 and
(ii) the first receipt of revenues on one significant well during late
2004. These increases were partially offset by the shutting-in of another
significant well during late 2004 and early 2005 due to a transportation
problem associated with line pressure. As of the date of this Quarterly
Report, the shut-in well has returned to production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $77,084 (9.7%) 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 and (ii) workover
expenses incurred on several wells 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
20.5% 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 $42,253 (25.8%) 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) upward revisions in the estimates of remaining gas
reserves since September 30, 2004, (ii) the receipt of equipment credits
on an abandoned well during the nine months ended September 30, 2005, and
(iii) one 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 (i) an increase of approximately
$41,000 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 $25,000 was related
to previously fully depleted wells, (ii) an increase of approximately
$8,000 due to accretion of these additional asset retirement obligations,
and (iii) an increase in depletable oil and gas properties during 2005
primarily due to the recompletion of two significant wells. As a
percentage of oil and gas sales, this expense decreased to 2.9% for the
nine months ended September 30, 2005 from 5.1% for the nine 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) increases in the average prices of oil and gas
sold.
-69-
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 6.7% for the nine months ended
September 30, 2005 from 8.9% 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 $45,238,903 or 143.67% of Limited Partners' capital
contributions.
II-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 $966,956 $708,149
Oil and gas production expenses $191,043 $158,993
Barrels produced 4,451 4,080
Mcf produced 94,171 108,497
Average price/Bbl $ 59.36 $ 40.59
Average price/Mcf $ 7.46 $ 5.00
As shown in the table above, total oil and gas sales increased $258,807
(36.5%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately (i)
$84,000 and $232,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $15,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $72,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 371 barrels, while volumes of gas
sold decreased 14,326 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 (i) an increase in production on
two significant wells following the successful workovers of those wells
during late 2004 and early 2005 and (ii) the successful completion of two
new wells during late 2004. The decrease in volumes of gas sold was
primarily due to (i) normal declines in production and (ii) positive prior
period volume adjustments made by the operators on two significant wells
during the three months ended September 30, 2004.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $32,050 (20.2%) 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
several wells during the three months ended September 30, 2005 and (ii) an
-70-
increase in production taxes associated with the increase in oil and gas
sales. These increases were partially offset by workover expenses incurred
on several other wells during the three months ended September 30, 2004.
As a percentage of oil and gas sales, these expenses decreased to 19.8%
for the three months ended September 30, 2005 from 22.5% 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
increased $15,212 (36.6%) for the three months ended September 30, 2005 as
compared to the three months ended September 30, 2004. Of this increase
(i) approximately $20,000 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 $8,000 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 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) upward revisions in the estimates of remaining gas reserves
since September 30, 2004 and (ii) the decrease in volumes of gas sold. As
a percentage of oil and gas sales, this expense remained constant at 5.9%
for the three months ended September 30, 2005 and 2004.
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 6.6% for the three months ended
September 30, 2005 from 9.0% 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 $2,510,259 $2,127,571
Oil and gas production expenses $ 500,238 $ 469,099
Barrels produced 13,611 13,672
Mcf produced 280,371 325,509
Average price/Bbl $ 51.53 $ 35.99
Average price/Mcf $ 6.45 $ 5.02
As shown in the table above, total oil and gas sales increased $382,688
(18.0%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately
$212,000 and $400,000, respectively, were related to increases in the
average prices of oil and gas sold. These increases were partially offset
-71-
by decreases of approximately $2,000 and $227,000, respectively, related
to decreases in volumes of oil and gas sold. Volumes of oil and gas sold
decreased 61 barrels and 45,138 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)
negative prior period volume adjustments made by the operators on two
significant wells during the nine months ended September 30, 2005 and (ii)
normal declines in production. These decreases were substantially offset
by (i) positive prior period volume adjustments made by the operators on
several wells during the nine months ended September 30, 2005, (ii) the
successful completion of two new wells during late 2004, and (iii) an
increase in production on one significant well following the successful
workover of that well during late 2004. The decrease in volumes of gas
sold was primarily due to (i) normal declines in production, (ii) the
shutting-in of one significant well during late 2004 and early 2005 due to
a transportation problem associated with line pressure, and (iii) a
negative prior period volume adjustment made by the operator on another
significant well during the nine months ended September 30, 2005. As of
the date of this Quarterly Report, the shut-in well has returned to
production. These decreases were partially offset by positive prior period
volume adjustments made by the operators on several wells during the nine
months ended September 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $31,139 (6.6%) 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 and (ii) an
increase in production taxes associated with the increase in oil and gas
sales. 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 19.9% for
the nine months ended September 30, 2005 from 22.0% for the nine months
ended September 30, 2004.
Depreciation, depletion, and amortization of oil and gas properties
decreased $93,966 (40.8%) 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) one significant well being fully depleted during the
nine months ended September 30, 2004 due to the lack of remaining
reserves, (ii) upward revisions in the estimates of remaining gas reserves
since September 30, 2004, and (iii) the decreases in volumes of oil and
gas sold. These decreases were partially offset by an increase of (i)
approximately $20,000 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
$8,000 was related to previously fully depleted wells, and (ii)
-72-
approximately $4,000 due to accretion of these additional asset retirement
obligations. As a percentage of oil and gas sales, this expense decreased
to 5.4% for the nine months ended September 30, 2005 from 10.8% 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 8.5% for the nine months ended
September 30, 2005 from 10.1% 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 $31,489,574 or 137.62% of Limited Partners' capital
contributions.
II-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 $1,020,162 $758,316
Oil and gas production expenses $ 149,215 $170,638
Barrels produced 6,361 5,762
Mcf produced 89,579 113,565
Average price/Bbl $ 58.50 $ 39.44
Average price/Mcf $ 7.23 $ 4.68
As shown in the table above, total oil and gas sales increased $261,846
(34.5%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately (i)
$121,000 and $229,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $24,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $112,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 599 barrels, while volumes of gas
sold decreased 23,986 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 (i) the successful completion of
two new wells during late 2004, (ii) an increase in production on one
significant well following the successful workover of that well during
late 2004, and (iii) a positive prior period volume adjustment made by the
operator on another significant well during the three months ended
September 30, 2005. The decrease in volumes of gas sold was primarily due
to (i) normal declines in production and (ii) positive prior period volume
-73-
adjustments made by the operators on several wells during the three months
ended September 30, 2004
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $21,423 (12.6%) for the three months ended
September 30, 2005 as compared to the three months ended September 30,
2004. The decrease in production expenses was primarily due to workover
expenses incurred on two significant wells during the three months ended
September 30, 2004. This decrease was partially offset by (i) an increase
in production taxes associated with the increase in oil and gas sales and
(ii) workover expenses incurred on several wells during the three months
ended September 30, 2005. As a percentage of oil and gas sales, these
expenses decreased to 14.6% for the three months ended September 30, 2005
from 22.5% 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
decreased $58,344 (56.8%) for the three months ended September 30, 2005 as
compared to the three months ended September 30, 2004. This decrease was
primarily due to (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 decrease in volumes of gas sold. These decreases
were partially offset by increases of (i) 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 $8,000 was related to previously fully
depleted wells, and (ii) approximately $4,000 due to accretion of these
additional asset retirement obligations. As a percentage of oil and gas
sales, this expense decreased to 4.4% for the three months ended September
30, 2005 from 13.6% 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 4.7% for the three months ended
September 30, 2005 from 6.3% for the three months ended September 30,
2004. This percentage decrease was primarily due to the increase in oil
and gas sales.
-74-
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 $2,837,237 $2,227,315
Oil and gas production expenses $ 409,718 $ 412,543
Barrels produced 19,556 19,282
Mcf produced 297,517 328,327
Average price/Bbl $ 50.50 $ 34.58
Average price/Mcf $ 6.22 $ 4.75
As shown in the table above, total oil and gas sales increased $609,922
(27.4%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately (i)
$311,000 and $436,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $9,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $146,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 274 barrels, while volumes of gas
sold decreased 30,810 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) positive prior period volume
adjustments made by the operators on several wells during the nine months
ended September 30, 2005, (ii) the successful completion of two new wells
during late 2004, and (iii) an increase in production on one significant
well following the successful workover of that well during late 2004.
These increases were partially offset by (i) a negative prior period
volume adjustment made by the operator on one significant well during the
nine months ended September 30, 2005, (ii) positive prior period volume
adjustments made by the operators on several wells during the nine months
ended September 30, 2004, and (iii) normal declines in production. The
decrease in volumes of gas sold was primarily due to (i) normal declines
in production, (ii) a negative prior period volume adjustment made by the
operator on one significant well during the nine months ended September
30, 2005, and (iii) positive prior period volume adjustments made by the
operators on several wells during the nine months ended September 30,
2004. These decreases were partially offset by positive prior period
volume adjustments made by the operators on several other wells during the
nine months ended September 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the nine months ended
September 30, 2005 and 2004. A decrease primarily due to (i) workover
expenses incurred on several wells during the nine months ended September
30, 2004 and (ii) the receipt of ad valorem tax credits on one significant
well during the nine months ended September 30, 2005 was substantially
-75-
offset by (i) an increase in production taxes associated with the increase
in oil and gas sales, (ii) workover expenses incurred on several other
wells during the nine months ended September 30, 2005, and (iii) an
increase in salt water disposal expenses incurred on one significant well
during 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 14.4% for the nine months ended September 30,
2005 from 18.5% 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 $53,589 (34.1%) 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) one significant well being fully depleted during the
nine months ended September 30, 2004 due to the lack of remaining reserves
and (ii) the decrease in volumes of gas sold. These decreases were
partially offset by increases of (i) 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 $8,000 was related to previously fully
depleted wells, and (ii) approximately $4,000 due to accretion of these
additional asset retirement obligations. As a percentage of oil and gas
sales, this expense decreased to 3.7% for the nine months ended September
30, 2005 from 7.1% for the nine 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
nine months ended September 30, 2005 and 2004. As a percentage of oil and
gas sales, these expenses decreased to 5.8% for the nine months ended
September 30, 2005 from 7.4% 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 $26,581,051 or 155.08% of Limited Partners' capital
contributions.
-76-
II-G 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 $2,307,415 $1,607,190
Oil and gas production expenses $ 328,610 $ 363,542
Barrels produced 13,354 12,081
Mcf produced 213,516 241,799
Average price/Bbl $ 58.56 $ 39.43
Average price/Mcf $ 7.14 $ 4.68
As shown in the table above, total oil and gas sales increased $700,225
(43.6%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately (i)
$255,000 and $527,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $50,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $132,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 1,273 barrels, while volumes of
gas sold decreased 28,283 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 were primarily due to (i) the successful
completion of two new wells during late 2004, (ii) an increase in
production on one significant well following the successful workover of
that well during late 2004, and (iii) a positive prior period volume
adjustment made by the operator on another significant well during the
three months ended September 30, 2005. The decrease in volumes of gas sold
was primarily due to (i) normal declines in production and (ii) positive
prior period volume adjustments made by the operators on several wells
during the three months ended September 30, 2004.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $34,932 (9.6%) 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 two
significant wells during the three months ended September 30, 2004. This
decrease was partially offset by (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the three months ended September
30, 2005. As a percentage of oil and gas sales, these expenses decreased
to 14.2% for the three months ended September 30, 2005 from 22.6% for the
three months ended September 30, 2004. This percentage decrease was
primarily due to the increase in oil and gas sales.
-77-
Depreciation, depletion, and amortization of oil and gas properties
decreased $138,402 (59.3%) for the three months ended September 30, 2005
as compared to the three months ended September 30, 2004. This decrease
was primarily due to (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 decrease in volumes of gas sold. These decreases
were partially offset by increases of (i) approximately $32,000 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 $17,000 was related to previously
fully depleted wells, and (ii) approximately $9,000 due to accretion of
these additional asset retirement obligations. As a percentage of oil and
gas sales, this expense decreased to 4.1% for the three months ended
September 30, 2005 from 14.5% 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) 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 4.5% for the three months ended
September 30, 2005 from 6.4% 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 $6,041,256 $4,731,606
Oil and gas production expenses $ 893,752 $ 883,595
Barrels produced 41,074 40,419
Mcf produced 634,898 698,661
Average price/Bbl $ 50.53 $ 34.58
Average price/Mcf $ 6.25 $ 4.77
As shown in the table above, total oil and gas sales increased $1,309,650
(27.7%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately (i)
$655,000 and $936,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $23,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $304,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 655 barrels, while volumes of gas
sold decreased 63,763 Mcf for the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. The increase in
-78-
volumes of oil sold was primarily due to (i) positive prior period volume
adjustments made by the operators on several wells during the nine months
ended September 30, 2005, (ii) the successful completion of two new wells
during late 2004, and (iii) an increase in production on one significant
well following the successful workover of that well during late 2004.
These increases were partially offset by (i) a negative prior period
volume adjustment made by the operator on one significant well during the
nine months ended September 30, 2005, (ii) positive prior period volume
adjustments made by the operators on several wells during the nine months
ended September 30, 2004, and (iii) normal declines in production. The
decrease in volumes of gas sold was primarily due to (i) normal declines
in production, (ii) a negative prior period volume adjustment made by the
operator on one significant well during the nine months ended September
30, 2005, and (iii) positive prior period volume adjustments made by the
operators on several wells during the nine months ended September 30,
2004. These decreases were partially offset by positive prior period
volume adjustments made by the operators on several other wells during the
nine months ended September 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $10,157 (1.1%) 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 salt water disposal expenses incurred
on one significant well during the nine months ended September 30, 2005 as
compared to the nine months ended September 30, 2004. These increases were
partially offset by (i) workover expenses incurred on several other wells
during the nine months ended September 30, 2004 and (ii) the receipt of ad
valorem tax credits on one significant well during the nine months ended
September 30, 2005. As a percentage of oil and gas sales, these expenses
decreased to 14.8% for the nine months ended September 30, 2005 from 18.7%
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 $125,412 (35.8%) 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) one significant well being fully depleted during the
nine months ended September 30, 2004 due to the lack of remaining reserves
and (ii) the decrease in volumes of gas sold. These decreases were
partially offset by (i) an increase of approximately $32,000 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 $17,000 was related to previously
fully depleted wells, (ii) an increase of approximately $9,000 due to
-79-
accretion of these additional asset retirement obligations, and (iii) one
significant well being fully depleted during the nine months ended
September 30, 2005 due to the lack of remaining reserves. As a percentage
of oil and gas sales, this expense decreased to 3.7% for the nine months
ended September 30, 2005 from 7.4% for the nine 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
nine months ended September 30, 2005 and 2004. As a percentage of oil and
gas sales, these expenses decreased to 5.5% for the nine months ended
September 30, 2005 from 7.0% 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 $55,606,371 or 149.40% of Limited Partners' capital
contributions.
II-H 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 $546,763 $381,538
Oil and gas production expenses $ 79,151 $ 86,955
Barrels produced 3,085 2,808
Mcf produced 51,155 57,858
Average price/Bbl $ 58.43 $ 39.40
Average price/Mcf $ 7.16 $ 4.68
As shown in the table above, total oil and gas sales increased $165,225
(43.3%) for the three months ended September 30, 2005 as compared to the
three months ended September 30, 2004. Of this increase, approximately (i)
$58,000 and $127,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $11,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $31,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 277 barrels, while volumes of gas
sold decreased 6,703 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 (i) the successful completion of
two new wells during late 2004, (ii) an increase in production on one
significant well following the successful workover of that well during
late 2004, and (iii) a positive prior period volume adjustment made by the
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operator on one significant well during the three months ended September
30, 2005. The decrease in volumes of gas sold was primarily due to (i)
normal declines in production and (ii) positive prior period volume
adjustments made by the operators on several wells during the three months
ended September 30, 2004.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $7,804 (9.0%) 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 two
significant wells during the three months ended September 30, 2004. This
decrease was partially offset by (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the three months ended September
30, 2005. As a percentage of oil and gas sales, these expenses decreased
to 14.5% for the three months ended September 30, 2005 from 22.8% 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
decreased $32,869 (59.1%) for the three months ended September 30, 2005 as
compared to the three months ended September 30, 2004. This decrease was
primarily due to (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 decrease in volumes of gas sold. These decreases
were partially offset by increases of (i) approximately $8,000 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 $4,000 was related to previously fully
depleted wells, and (ii) approximately $2,000 due to accretion of these
additional asset retirement obligations. As a percentage of oil and gas
sales, this expense decreased to 4.2% for the three months ended September
30, 2005 from 14.6% 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 4.8% for the three months ended
September 30, 2005 from 6.8% for the three months ended September 30,
2004. This percentage decrease was primarily due to the increase in oil
and gas sales.
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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 $1,431,686 $1,129,619
Oil and gas production expenses $ 213,385 $ 213,320
Barrels produced 9,481 9,384
Mcf produced 152,113 168,703
Average price/Bbl $ 50.49 $ 34.58
Average price/Mcf $ 6.27 $ 4.77
As shown in the table above, total oil and gas sales increased $302,067
(26.7%) for the nine months ended September 30, 2005 as compared to the
nine months ended September 30, 2004. Of this increase, approximately (i)
$151,000 and $227,000, respectively, were related to increases in the
average prices of oil and gas sold and (ii) $3,000 was related to an
increase in volumes of oil sold. These increases were partially offset by
a decrease of approximately $79,000 related to a decrease in volumes of
gas sold. Volumes of oil sold increased 97 barrels, while volumes of gas
sold decreased 16,590 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) positive prior period volume
adjustments made by the operators on several wells during the nine months
ended September 30, 2005, (ii) the successful completion of two new wells
during late 2004, and (iii) an increase in production on one significant
well following the successful workover of that well during late 2004.
These increases were partially offset by (i) a negative prior period
volume adjustment made by the operator on another significant well during
the nine months ended September 30, 2005, (ii) positive prior period
volume adjustments made by the operators on several wells during the nine
months ended September 30, 2004, and (iii) normal declines in production.
The decrease in volumes of gas sold was primarily due to (i) normal
declines in production, (ii) a negative prior period volume adjustment
made by the operator on one significant well during the nine months ended
September 30, 2005, and (iii) positive prior period volume adjustments
made by the operators on several wells during the nine months ended
September 30, 2004. These decreases were partially offset by positive
prior period volume adjustments made by the operators on several other
wells during the nine months ended September 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) remained relatively constant for the nine months ended
September 30, 2005 and 2004. A decrease primarily due to (i) workover
expenses incurred on several wells during the nine months ended September
30, 2004 and (ii) the receipt of ad valorem tax credits on one significant
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well during the nine months ended September 30, 2005 was substantially
offset by (i) an increase in production taxes associated with the increase
in oil and gas sales, (ii) workover expenses incurred on several other
wells during the nine months ended September 30, 2005, and (iii) an
increase in salt water disposal expenses incurred on one significant well
during 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 14.9% for the nine months ended September 30,
2005 from 18.9% 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
decreased $29,899 (35.7%) 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) one significant well being fully depleted during the
nine months ended September 30, 2004 due to the lack of remaining reserves
and (ii) the decrease in volumes of gas sold. These decreases were
partially offset by (i) an increase of approximately $8,000 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 $4,000 was related to previously fully
depleted wells, (ii) an increase of approximately $2,000 due to accretion
of these additional asset retirement obligations, and (iii) one
significant well being fully depleted during the nine months ended
September 30, 2005 due to the lack of remaining reserves. As a percentage
of oil and gas sales, this expense decreased to 3.8% for the nine months
ended September 30, 2005 from 7.4% for the nine 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 increased $1,283 (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 7.0% for the nine months ended September 30, 2005 from 8.7%
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 $12,918,364 or 140.86% 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 II-A Partnership.
31.2 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-A Partnership.
31.3 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-B Partnership.
31.4 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-B Partnership.
31.5 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-C Partnership.
31.6 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-C Partnership.
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31.7 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-D Partnership.
31.8 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-D Partnership.
31.9 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-E Partnership.
31.10 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-E Partnership.
31.11 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-F Partnership.
31.12 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-F Partnership.
31.13 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-G Partnership.
31.14 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-G Partnership.
31.15 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-H Partnership.
31.16 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-H 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 II-A Partnership.
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 II-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 II-C Partnership.
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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 II-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 II-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 II-F Partnership.
32.7 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for
the II-G Partnership.
32.8 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for
the II-H 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 II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
(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 II-A.
31.2 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-A.
31.3 Certification by Dennis R. Neill required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-B.
31.4 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-B.
31.5 Certification by Dennis R. Neill required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-C.
31.6 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-C.
31.7 Certification by Dennis R. Neill required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-D.
31.8 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-D.
31.9 Certification by Dennis R. Neill required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-E.
31.10 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-E.
31.11 Certification by Dennis R. Neill required by Rule 13a-14(a)/15d-14(a) for
the Geodyne Energy Income Limited Partnership II-F.
31.12 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-14(a)for
the Geodyne Energy Income Limited Partnership II-F.
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31.13 Certification by Dennis R. Neill required by Rule 13a-14(a)/15d-14(a)for
the Geodyne Energy Income Limited Partnership II-G.
31.14 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-14(a)for
the Geodyne Energy Income Limited Partnership II-G.
31.15 Certification by Dennis R. Neill required by Rule 13a-14(a)/15d-14(a)for
the Geodyne Energy Income Limited Partnership II-H.
31.16 Certification by Craig D. Loseke required by Rule 13a-14(a)/15d-14(a)for
the Geodyne Energy Income Limited Partnership II-H.
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 II-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 II-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 II-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 II-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 II-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 II-F.
32.7 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002 for the Geodyne Energy
Income Limited Partnership II-G.
32.8 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 II-H.
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