SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2006
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
------ ------
-1-
Indicate by check mark whether the Registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act (check
one):
Large accelerated filer
--------
Accelerated filer
--------
X Non-accelerated filer
--------
Indicate by check mark whether the Registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).
Yes No X
------ ------
The Depositary Units are not publicly traded; therefore, Registrant cannot
compute the aggregate market value of the voting units held by non-affiliates of
the Registrant.
-2-
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
June 30, December 31,
2006 2005
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,754,868 $2,121,512
Accounts receivable:
Oil and gas sales 1,176,306 1,539,562
---------- ----------
Total current assets $2,931,174 $3,661,074
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,404,514 2,469,366
DEFERRED CHARGE 556,575 601,624
---------- ----------
$5,892,263 $6,732,064
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 269,933 $ 347,424
Gas imbalance payable 94,752 96,957
Asset retirement obligation -
current (Note 1) 12,086 41,485
---------- ----------
Total current liabilities $ 376,771 $ 485,866
LONG-TERM LIABILITIES:
Accrued liability $ 167,303 $ 155,405
Asset retirement obligation
(Note 1) 882,595 863,302
---------- ----------
Total long-term liabilities $1,049,898 $1,018,707
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 181,580) ($ 132,231)
Limited Partners, issued and
outstanding, 484,283 units 4,647,174 5,359,722
---------- ----------
Total Partners' capital $4,465,594 $5,227,491
---------- ----------
$5,892,263 $6,732,064
========== ==========
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 THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $1,782,336 $1,718,212
Interest income 15,304 7,090
---------- ----------
$1,797,640 $1,725,302
COSTS AND EXPENSES:
Lease operating $ 379,689 $ 308,646
Production tax 90,914 91,890
Depreciation, depletion, and
amortization of oil and gas
properties 54,137 76,605
General and administrative
(Note 2) 134,646 134,475
---------- ----------
$ 659,386 $ 611,616
---------- ----------
NET INCOME $1,138,254 $1,113,686
========== ==========
GENERAL PARTNER - NET INCOME $ 117,168 $ 117,554
========== ==========
LIMITED PARTNERS - NET INCOME $1,021,086 $ 996,132
========== ==========
NET INCOME per unit $ 2.11 $ 2.06
========== ==========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $3,666,397 $3,435,346
Interest income 31,658 12,885
---------- ----------
$3,698,055 $3,448,231
COSTS AND EXPENSES:
Lease operating $ 805,373 $ 538,458
Production tax 197,390 199,953
Depreciation, depletion, and
amortization of oil and gas
properties 119,615 127,621
General and administrative
(Note 2) 293,397 290,235
---------- ----------
$1,415,775 $1,156,267
---------- ----------
NET INCOME $2,282,280 $2,291,964
========== ==========
GENERAL PARTNER - NET INCOME $ 235,828 $ 239,394
========== ==========
LIMITED PARTNERS - NET INCOME $2,046,452 $2,052,570
========== ==========
NET INCOME per unit $ 4.23 $ 4.24
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,282,280 $2,291,964
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 119,615 127,621
Settlement of asset retirement
obligation ( 30,357) ( 188)
(Increase) decrease in accounts
receivable - oil and gas sales 363,256 ( 182,382)
Decrease in deferred charge 45,049 18,807
Decrease in accounts payable ( 70,876) ( 90,046)
Decrease in accrued liability -
other - ( 26,672)
Decrease in gas imbalance
payable ( 2,205) ( 699)
Increase (decrease) in accrued
liability 11,898 ( 25,980)
---------- ----------
Net cash provided by operating
activities $2,718,660 $2,112,425
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 41,127) ($ 98,839)
Proceeds from sale of oil and
gas properties - 27,282
---------- ----------
Net cash used by investing
activities ($ 41,127) ($ 71,557)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($3,044,177) ($2,074,198)
---------- ----------
Net cash used by financing
activities ($3,044,177) ($2,074,198)
---------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 366,644) ($ 33,330)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 2,121,512 1,557,473
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,754,868 $1,524,143
========== ==========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2006 2005
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,263,508 $1,604,547
Accounts receivable:
Oil and gas sales 904,009 1,127,488
---------- ----------
Total current assets $2,167,517 $2,732,035
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,493,318 1,544,218
DEFERRED CHARGE 248,928 271,456
---------- ----------
$3,909,763 $4,547,709
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 161,184 $ 229,602
Gas imbalance payable 38,679 35,564
Asset retirement obligation -
current (Note 1) 9,784 11,476
---------- ----------
Total current liabilities $ 209,647 $ 276,642
LONG-TERM LIABILITIES:
Accrued liability $ 95,318 $ 72,442
Asset retirement obligation
(Note 1) 383,057 372,410
---------- ----------
Total long-term liabilities $ 478,375 $ 444,852
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 217,670) ($ 178,888)
Limited Partners, issued and
outstanding, 361,719 units 3,439,411 4,005,103
---------- ----------
Total Partners' capital $3,221,741 $3,826,215
---------- ----------
$3,909,763 $4,547,709
========== ==========
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 THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $1,309,235 $1,188,827
Interest income 10,972 4,885
---------- ----------
$1,320,207 $1,193,712
COSTS AND EXPENSES:
Lease operating $ 257,274 $ 242,852
Production tax 68,672 62,059
Depreciation, depletion, and
amortization of oil and gas
properties 33,038 83,901
General and administrative
(Note 2) 101,043 100,984
---------- ----------
$ 460,027 $ 489,796
---------- ----------
NET INCOME $ 860,180 $ 703,916
========== ==========
GENERAL PARTNER - NET INCOME $ 87,894 $ 77,455
========== ==========
LIMITED PARTNERS - NET INCOME $ 772,286 $ 626,461
========== ==========
NET INCOME per unit $ 2.13 $ 1.74
========== ==========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $2,794,028 $2,489,809
Interest income 23,091 8,881
---------- ----------
$2,817,119 $2,498,690
COSTS AND EXPENSES:
Lease operating $ 577,181 $ 408,758
Production tax 149,214 151,714
Depreciation, depletion, and
amortization of oil and gas
properties 71,271 122,061
General and administrative
(Note 2) 225,661 222,875
---------- ----------
$1,023,327 $ 905,408
---------- ----------
NET INCOME $1,793,792 $1,593,282
========== ==========
GENERAL PARTNER - NET INCOME $ 183,484 $ 169,426
========== ==========
LIMITED PARTNERS - NET INCOME $1,610,308 $1,423,856
========== ==========
NET INCOME per unit $ 4.45 $ 3.94
========== ==========
UNITS OUTSTANDING 361,719 361,719
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,793,792 $1,593,282
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 71,271 122,061
Settlement of asset retirement
obligations - ( 58)
(Increase) decrease in accounts
receivable - oil and gas sales 223,479 ( 123,335)
(Increase) decrease in deferred
charge 22,528 ( 13,585)
Decrease in accounts payable ( 64,973) ( 63,319)
Increase (decrease) in gas imbalance
payable 3,115 ( 3,188)
Increase in accrued liability 22,876 12,812
---------- ----------
Net cash provided by operating
activities $2,072,088 $1,524,670
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 14,861) ($ 96,284)
Proceeds from sale of oil and gas
properties - 32,405
---------- ----------
Net cash used by investing
activities ($ 14,861) ($ 63,879)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,398,266) ($1,516,317)
---------- ----------
Net cash used by financing
activities ($2,398,266) ($1,516,317)
---------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 341,039) ($ 55,526)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,604,547 1,079,057
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,263,508 $1,023,531
========== ==========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2006 2005
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 607,000 $ 812,768
Accounts receivable:
Oil and gas sales 435,564 643,141
---------- ----------
Total current assets $1,042,564 $1,455,909
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 710,147 728,242
DEFERRED CHARGE 142,787 155,926
---------- ----------
$1,895,498 $2,340,077
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 68,031 $ 127,265
Gas imbalance payable 13,080 13,454
Asset retirement obligation -
current (Note 1) 10,516 9,569
---------- ----------
Total current liabilities $ 91,627 $ 150,288
LONG-TERM LIABILITIES:
Accrued liability $ 51,634 $ 44,603
Asset retirement obligation
(Note 1) 133,784 131,222
---------- ----------
Total long-term liabilities $ 185,418 $ 175,825
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 85,376) ($ 57,416)
Limited Partners, issued and
outstanding, 154,621 units 1,703,829 2,071,380
---------- ----------
Total Partners' capital $1,618,453 $2,013,964
---------- ----------
$1,895,498 $2,340,077
========== ==========
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 THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
-------- --------
REVENUES:
Oil and gas sales $638,156 $639,691
Interest income 5,634 2,373
-------- --------
$643,790 $642,064
COSTS AND EXPENSES:
Lease operating $104,686 $ 63,158
Production tax 39,443 43,038
Depreciation, depletion, and
amortization of oil and gas
properties 16,069 33,844
General and administrative
(Note 2) 44,269 44,398
-------- --------
$204,467 $184,438
-------- --------
NET INCOME $439,323 $457,626
======== ========
GENERAL PARTNER - NET INCOME $ 44,815 $ 48,571
======== ========
LIMITED PARTNERS - NET INCOME $394,508 $409,055
======== ========
NET INCOME per unit $ 2.55 $ 2.65
======== ========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $1,368,595 $1,302,274
Interest income 11,693 4,218
---------- ----------
$1,380,288 $1,306,492
COSTS AND EXPENSES:
Lease operating $ 244,118 $ 138,459
Production tax 85,012 92,332
Depreciation, depletion, and
amortization of oil and gas
properties 34,003 49,036
General and administrative
(Note 2) 111,222 109,070
---------- ----------
$ 474,355 $ 388,897
---------- ----------
NET INCOME $ 905,933 $ 917,595
========== ==========
GENERAL PARTNER - NET INCOME $ 92,484 $ 95,751
========== ==========
LIMITED PARTNERS - NET INCOME $ 813,449 $ 821,844
========== ==========
NET INCOME per unit $ 5.26 $ 5.32
========== ==========
UNITS OUTSTANDING 154,621 154,621
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 905,933 $917,595
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 34,003 49,036
Settlement of asset retirement
obligations - ( 40)
(Increase) decrease in accounts
receivable - oil and gas sales 207,577 ( 90,785)
(Increase) decrease in deferred
charge 13,139 ( 27,439)
Decrease in accounts payable ( 58,564) ( 24,731)
Decrease in gas imbalance payable ( 374) ( 1,803)
Increase in accrued liability 7,031 1,694
---------- --------
Net cash provided by operating
activities $1,108,745 $823,527
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 13,069) ($ 51,598)
Proceeds from sale of oil and gas
properties - 13,888
---------- --------
Net cash used by investing
activities ($ 13,069) ($ 37,710)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,301,444) ($777,978)
---------- --------
Net cash used by financing
activities ($1,301,444) ($777,978)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 205,768) $ 7,839
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 812,768 506,061
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 607,000 $513,900
========== ========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2006 2005
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,103,360 $1,661,561
Accounts receivable:
Oil and gas sales 950,782 1,544,131
---------- ----------
Total current assets $2,054,142 $3,205,692
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,553,914 1,559,585
DEFERRED CHARGE 359,815 371,875
---------- ----------
$3,967,871 $5,137,152
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 143,618 $ 181,287
Gas imbalance payable 16,395 17,598
Asset retirement obligation -
current (Note 1) 60,377 45,216
---------- ----------
Total current liabilities $ 220,390 $ 244,101
LONG-TERM LIABILITIES:
Accrued liability $ 126,350 $ 102,928
Asset retirement obligation
(Note 1) 399,429 403,397
---------- ----------
Total long-term liabilities $ 525,779 $ 506,325
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 154,363) ($ 65,352)
Limited Partners, issued and
outstanding, 314,878 units 3,376,065 4,452,078
---------- ----------
Total Partners' capital $3,221,702 $4,386,726
---------- ----------
$3,967,871 $5,137,152
========== ==========
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 THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $1,199,286 $1,297,819
Interest income 13,727 4,700
---------- ----------
$1,213,013 $1,302,519
COSTS AND EXPENSES:
Lease operating $ 196,560 $ 138,335
Production tax 80,429 109,996
Depreciation, depletion, and
amortization of oil and gas
properties 48,501 3,279
General and administrative
(Note 2) 88,183 88,167
---------- ----------
$ 413,673 $ 339,777
---------- ----------
NET INCOME $ 799,340 $ 962,742
========== ==========
GENERAL PARTNER - NET INCOME $ 82,926 $ 96,099
========== ==========
LIMITED PARTNERS - NET INCOME $ 716,414 $ 866,643
========== ==========
NET INCOME per unit $ 2.27 $ 2.76
========== ==========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $2,676,458 $2,719,365
Interest income 26,642 8,233
Other income - 8,411
---------- ----------
$2,703,100 $2,736,009
COSTS AND EXPENSES:
Lease operating $ 422,453 $ 363,592
Production tax 174,789 195,031
Depreciation, depletion, and
amortization of oil and gas
properties 94,106 40,693
General and administrative
(Note 2) 199,761 197,120
---------- ----------
$ 891,109 $ 796,436
---------- ----------
NET INCOME $1,811,991 $1,939,573
========== ==========
GENERAL PARTNER - NET INCOME $ 187,004 $ 196,039
========== ==========
LIMITED PARTNERS - NET INCOME $1,624,987 $1,743,534
========== ==========
NET INCOME per unit $ 5.16 $ 5.54
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,811,991 $1,939,573
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 94,106 40,693
(Increase) decrease in accounts
receivable - oil and gas sales 593,349 ( 244,918)
(Increase) decrease in deferred
charge 12,060 ( 26,364)
Decrease in accounts payable ( 46,734) ( 9,723)
Decrease in gas imbalance
payable ( 1,203) ( 1,536)
Increase (decrease) in accrued
liability 23,422 ( 6,341)
---------- ----------
Net cash provided by operating
activities $2,486,991 $1,691,384
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 73,347) ($ 151,873)
Proceeds from sale of oil and gas
properties 5,170 23,995
---------- ----------
Net cash used by investing
activities ($ 68,177) ($ 127,878)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,977,015) ($1,572,195)
---------- ----------
Net cash used by financing
activities ($2,977,015) ($1,572,195)
---------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 558,201) ($ 8,689)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,661,561 967,251
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,103,360 $ 958,562
========== ==========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2006 2005
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 908,070 $1,290,961
Accounts receivable:
Oil and gas sales 498,429 822,197
---------- ----------
Total current assets $1,406,499 $2,113,158
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,155,275 1,209,059
DEFERRED CHARGE 208,171 209,941
---------- ----------
$2,769,945 $3,532,158
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 120,288 $ 128,602
Gas imbalance payable 43,424 43,424
Asset retirement obligation -
current (Note 1) 6,379 6,501
---------- ----------
Total current liabilities $ 170,091 $ 178,527
LONG-TERM LIABILITIES:
Accrued liability $ 69,372 $ 25,448
Asset retirement obligation
(Note 1) 236,512 230,556
---------- ----------
Total long-term liabilities $ 305,884 $ 256,004
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 120,942) ($ 67,016)
Limited Partners, issued and
outstanding, 228,821 units 2,414,912 3,164,643
---------- ----------
Total Partners' capital $2,293,970 $3,097,627
---------- ----------
$2,769,945 $3,532,158
========== ==========
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 THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
-------- --------
REVENUES:
Oil and gas sales $872,826 $714,535
Interest income 8,992 2,956
-------- --------
$881,818 $717,491
COSTS AND EXPENSES:
Lease operating $158,509 $109,790
Production tax 59,634 49,583
Depreciation, depletion, and
amortization of oil and gas
properties 31,228 34,947
General and administrative
(Note 2) 64,610 64,672
-------- --------
$313,981 $258,992
-------- --------
NET INCOME $567,837 $458,499
======== ========
GENERAL PARTNER - NET INCOME $ 58,695 $ 48,699
======== ========
LIMITED PARTNERS - NET INCOME $509,142 $409,800
======== ========
NET INCOME per unit $ 2.22 $ 1.79
======== ========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $1,856,310 $1,543,303
Interest income 18,797 5,491
Other income - 5,177
---------- ----------
$1,875,107 $1,553,971
COSTS AND EXPENSES:
Lease operating $ 305,068 $ 198,635
Production tax 127,418 110,560
Depreciation, depletion, and
amortization of oil and gas
properties 76,734 79,660
General and administrative
(Note 2) 152,225 149,846
---------- ----------
$ 661,445 $ 538,701
---------- ----------
NET INCOME $1,213,662 $1,015,270
========== ==========
GENERAL PARTNER - NET INCOME $ 126,393 $ 107,681
========== ==========
LIMITED PARTNERS - NET INCOME $1,087,269 $ 907,589
========== ==========
NET INCOME per unit $ 4.75 $ 3.97
========== ==========
UNITS OUTSTANDING 228,821 228,821
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,213,662 $1,015,270
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 76,734 79,660
Settlement of asset retirement
Obligation ( 127) -
(Increase) decrease in accounts
receivable - oil and gas sales 323,768 ( 119,875)
(Increase) decrease in deferred
charge 1,770 ( 3,668)
Decrease in accounts payable ( 13,100) ( 92,756)
Increase (decrease) in accrued
liability 43,924 ( 449)
---------- ----------
Net cash provided by operating
activities $1,646,631 $ 878,182
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 12,203) ($ 18,326)
---------- ----------
Net cash used by investing
activities ($ 12,203) ($ 18,326)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($2,017,319) ($ 871,284)
---------- ----------
Net cash used by financing
activities ($2,017,319) ($ 871,284)
---------- ----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 382,891) ($ 11,428)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,290,961 680,844
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 908,070 $ 669,416
========== ==========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2006 2005
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 976,164 $ 921,812
Accounts receivable:
Oil and gas sales 561,828 819,472
---------- ----------
Total current assets $1,537,992 $1,741,284
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,144,613 1,169,138
DEFERRED CHARGE 30,448 30,727
---------- ----------
$2,713,053 $2,941,149
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 119,365 $ 148,786
Gas imbalance payable 2,024 2,312
Asset retirement obligation -
current (Note 1) 1,444 1,909
---------- ----------
Total current liabilities $ 122,833 $ 153,007
LONG-TERM LIABILITIES:
Accrued liability $ 25,662 $ 26,676
Asset retirement obligation
(Note 1) 201,203 195,940
---------- ----------
Total long-term liabilities $ 226,865 $ 222,616
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 69,190) ($ 46,261)
Limited Partners, issued and
outstanding, 171,400 Units 2,432,545 2,611,787
---------- ----------
Total Partners' capital $2,363,355 $2,565,526
---------- ----------
$2,713,053 $2,941,149
========== ==========
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 THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
-------- --------
REVENUES:
Oil and gas sales $932,342 $888,094
Interest income 7,245 3,001
-------- --------
$939,587 $891,095
COSTS AND EXPENSES:
Lease operating $ 91,786 $104,650
Production tax 49,233 51,165
Depreciation, depletion, and
amortization of oil and gas
properties 26,929 29,482
General and administrative
(Note 2) 48,015 48,129
-------- --------
$215,963 $233,426
-------- --------
NET INCOME $723,624 $657,669
======== ========
GENERAL PARTNER - NET INCOME $ 74,062 $ 68,120
======== ========
LIMITED PARTNERS - NET INCOME $649,562 $589,549
======== ========
NET INCOME per unit $ 3.79 $ 3.44
======== ========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $1,885,994 $1,817,075
Interest income 14,214 5,386
---------- ----------
$1,900,208 $1,822,461
COSTS AND EXPENSES:
Lease operating $ 212,625 $ 145,584
Production tax 108,349 114,919
Depreciation, depletion, and
amortization of oil and gas
properties 62,926 59,303
General and administrative
(Note 2) 119,641 117,438
---------- ----------
$ 503,541 $ 437,244
---------- ----------
NET INCOME $1,396,667 $1,385,217
========== ==========
GENERAL PARTNER - NET INCOME $ 143,909 $ 143,320
========== ==========
LIMITED PARTNERS - NET INCOME $1,252,758 $1,241,897
========== ==========
NET INCOME per unit $ 7.31 $ 7.25
========== ==========
UNITS OUTSTANDING 171,400 171,400
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,396,667 $1,385,217
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 62,926 59,303
Settlement of asset retirement
obligation ( 307) -
(Increase) decrease in accounts
receivable - oil and gas sales 257,644 ( 185,235)
Decrease in deferred charge 279 2,899
Decrease in accounts payable ( 32,806) ( 160,888)
Decrease in gas imbalance payable ( 288) ( 1,157)
Increase (decrease) in accrued
liability ( 1,014) 521
---------- ----------
Net cash provided by operating
activities $1,683,101 $1,100,660
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 29,911) ($ 22,611)
---------- ----------
Net cash used by investing activities ($ 29,911) ($ 22,611)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,598,838) ($1,002,348)
---------- ----------
Net cash used by financing
activities ($1,598,838) ($1,002,348)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 54,352 $ 75,701
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 921,812 657,406
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 976,164 $ 733,107
========== ==========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2006 2005
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $2,078,720 $1,970,349
Accounts receivable:
Oil and gas sales 1,205,164 1,749,695
---------- ----------
Total current assets $3,283,884 $3,720,044
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,455,758 2,514,404
DEFERRED CHARGE 65,048 65,542
---------- ----------
$5,804,690 $6,299,990
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 252,572 $ 314,015
Gas imbalance payable 10,572 15,317
Asset retirement obligation -
current (Note 1) 3,014 3,988
---------- ----------
Total current liabilities $ 266,158 $ 333,320
LONG-TERM LIABILITIES:
Accrued liability $ 45,042 $ 45,118
Asset retirement obligation
(Note 1) 431,229 420,055
---------- ----------
Total long-term liabilities $ 476,271 $ 465,173
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 39,388) $ 9,830
Limited Partners, issued and
outstanding, 372,189 Units 5,101,649 5,491,667
---------- ----------
Total Partners' capital $5,062,261 $5,501,497
---------- ----------
$5,804,690 $6,299,990
========== ==========
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 THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $1,983,171 $1,745,014
Interest income 15,698 6,509
---------- ----------
$1,998,869 $1,751,523
COSTS AND EXPENSES:
Lease operating $ 198,940 $ 227,630
Production tax 105,338 99,852
Depreciation, depletion, and
amortization of oil and gas
properties 61,631 64,213
General and administrative
(Note 2) 103,058 102,990
---------- ----------
$ 468,967 $ 494,685
---------- ----------
NET INCOME $1,529,902 $1,256,838
========== ==========
GENERAL PARTNER - NET INCOME $ 156,967 $ 130,812
========== ==========
LIMITED PARTNERS - NET INCOME $1,372,935 $1,126,026
========== ==========
NET INCOME per unit $ 3.69 $ 3.03
========== ==========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
REVENUES:
Oil and gas sales $4,008,688 $3,733,841
Interest income 30,709 11,665
---------- ----------
$4,039,397 $3,745,506
COSTS AND EXPENSES:
Lease operating $ 457,154 $ 329,632
Production tax 232,112 235,510
Depreciation, depletion, and
amortization of oil and gas
properties 139,061 130,340
General and administrative
(Note 2) 230,596 227,778
---------- ----------
$1,058,923 $ 923,260
---------- ----------
NET INCOME $2,980,474 $2,822,246
========== ==========
GENERAL PARTNER - NET INCOME $ 307,492 $ 292,789
========== ==========
LIMITED PARTNERS - NET INCOME $2,672,982 $2,529,457
========== ==========
NET INCOME per unit $ 7.18 $ 6.80
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-29-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $2,980,474 $2,822,246
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 139,061 130,340
Settlement of asset retirement
obligation ( 641) -
(Increase) decrease in accounts
receivable - oil and gas sales 544,531 ( 264,417)
Decrease in deferred charge 494 6,331
Decrease in accounts payable ( 68,297) ( 339,611)
Decrease in gas imbalance payable ( 4,745) ( 2,327)
Increase (decrease) in accrued
liability ( 76) 6,618
---------- ----------
Net cash provided by operating
activities $3,590,801 $2,359,180
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 62,720) ($ 48,265)
---------- ----------
Net cash used by investing
activities ($ 62,720) ($ 48,265)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($3,419,710) ($2,140,958)
---------- ----------
Net cash used by financing
activities ($3,419,710) ($2,140,958)
---------- ----------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 108,371 $ 169,957
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,970,349 1,401,928
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $2,078,720 $1,571,885
========== ==========
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 BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
2006 2005
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 489,875 $ 465,378
Accounts receivable:
Oil and gas sales 275,372 409,173
---------- ----------
Total current assets $ 765,247 $ 874,551
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 582,794 597,072
DEFERRED CHARGE 16,716 16,952
---------- ----------
$1,364,757 $1,488,575
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 60,039 $ 73,876
Asset retirement obligation -
current (Note 1) 697 922
---------- ----------
Total current liabilities $ 60,736 $ 74,798
LONG-TERM LIABILITIES:
Accrued liability $ 14,524 $ 15,003
Asset retirement obligation
(Note 1) 105,202 102,427
---------- ----------
Total long-term liabilities $ 119,726 $ 117,430
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 40,902) ($ 28,897)
Limited Partners, issued and
outstanding, 91,711 Units 1,225,197 1,325,244
---------- ----------
Total Partners' capital $1,184,295 $1,296,347
---------- ----------
$1,364,757 $1,488,575
========== ==========
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 THREE MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
-------- --------
REVENUES:
Oil and gas sales $468,021 $411,152
Interest income 3,567 1,441
-------- --------
$471,588 $412,593
COSTS AND EXPENSES:
Lease operating $ 47,966 $ 53,388
Production tax 25,318 23,882
Depreciation, depletion, and
amortization of oil and gas
properties 13,702 15,237
General and administrative
(Note 2) 26,166 26,353
-------- --------
$113,152 $118,860
-------- --------
NET INCOME $358,436 $293,733
======== ========
GENERAL PARTNER - NET INCOME $ 36,720 $ 30,600
======== ========
LIMITED PARTNERS - NET INCOME $321,716 $263,133
======== ========
NET INCOME per unit $ 3.51 $ 2.87
======== ========
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 OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
-------- --------
REVENUES:
Oil and gas sales $946,365 $884,923
Interest income 7,016 2,602
-------- --------
$953,381 $887,525
COSTS AND EXPENSES:
Lease operating $110,086 $ 77,591
Production tax 55,517 56,643
Depreciation, depletion, and
amortization of oil and gas
properties 33,042 31,078
General and administrative
(Note 2) 75,597 73,638
-------- --------
$274,242 $238,950
-------- --------
NET INCOME $679,139 $648,575
======== ========
GENERAL PARTNER - NET INCOME $ 70,186 $ 67,394
======== ========
LIMITED PARTNERS - NET INCOME $608,953 $581,181
======== ========
NET INCOME per unit $ 6.64 $ 6.34
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-33-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(Unaudited)
2006 2005
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $679,139 $648,575
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 33,042 31,078
Settlement of asset retirement
obligation ( 147) -
(Increase) decrease in accounts
receivable - oil and gas sales 133,801 ( 60,373)
Decrease in deferred charge 236 2,717
Decrease in accounts payable ( 15,324) ( 79,947)
Decrease in accrued liability ( 479) ( 23)
-------- --------
Net cash provided by operating
activities $830,268 $542,027
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 14,580) ($ 11,588)
-------- --------
Net cash used by investing
activities ($ 14,580) ($ 11,588)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($791,191) ($492,148)
-------- --------
Net cash used by financing
activities ($791,191) ($492,148)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 24,497 $ 38,291
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 465,378 329,148
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $489,875 $367,439
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-34-
GEODYNE ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
JUNE 30, 2006
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of June 30, 2006, combined statements of
operations for the three and six months ended June 30, 2006 and 2005, and
combined statements of cash flows for the six months ended June 30, 2006
and 2005 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 June 30, 2006, the combined results of operations for the
three and six months ended June 30, 2006 and 2005, and the combined cash
flows for the six months ended June 30, 2006 and 2005.
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, 2005. The
results of operations for the period ended June 30, 2006 are not
necessarily indicative of the results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon each $100
initial capital contribution.
OIL AND GAS PROPERTIES
----------------------
The Partnerships follow the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalize all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs include costs incurred by the
Partnerships or the General Partner to acquire producing properties,
including related title insurance or examination costs, commissions,
engineering, legal and accounting fees, and similar costs directly related
to the acquisitions, plus an allocated portion of the General Partner's
property screening costs. The acquisition cost to the Partnerships of
properties acquired by the General Partner is adjusted
-35-
to reflect the net cash results of operations, including interest incurred
to finance the acquisition, for the period of time the properties are held
by the General Partner.
Depletion of the costs of producing oil and gas properties, amortization
of related intangible drilling and development costs, and depreciation of
tangible lease and well equipment are computed on the unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs and estimated
salvage value of the equipment.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss (including the elimination of the asset retirement obligation)
reflected in income. When less than complete units of depreciable property
are retired or sold, the proceeds are credited to oil and gas properties.
ASSET RETIREMENT OBLIGATIONS
----------------------------
The Partnerships' wells must be properly plugged and abandoned after their
oil and gas reserves are exhausted. The Partnerships follow FAS No. 143,
"Accounting for Asset Retirement Obligations" in accounting for the future
expenditures that will be necessary to plug and abandon these wells. FAS
No. 143 requires the estimated plugging and abandonment obligations to be
(i) 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 (ii) capitalized as part of the carrying amount of the well.
Estimated abandonment dates will be revised 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. During the year ended December 31, 2005, the Partnerships'
asset retirement obligations were revised upward due to increases in both
labor and rig costs associated with plugging wells. Cash flows will not be
affected until wells are actually plugged and abandoned.
The asset retirement obligation is adjusted upwards each quarter in order
to recognize accretion of the time-related discount factor. For the six
months ended June 30, 2006, the II-A, II-B, II-C, II-D, II-E, II-F, II-G,
and II-H Partnerships recognized $48,000, $15,000, $6,000, $26,000,
$15,000, $10,000, $20,000 and $5,000 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 six months ended June 30, 2006 and 2005 are as shown below.
-36-
II-A Partnership
----------------
Three Months Three Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, April 1 $884,280 $396,154
Additions and revisions - 76
Accretion expense 10,401 4,029
-------- --------
Total Asset Retirement
Obligation, End of Quarter $894,681 $400,259
======== ========
Six Months Six Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, January 1 $904,787 $393,670
Additions and revisions - 356
Settlements and disposals ( 31,257) ( 1,820)
Accretion expense 21,151 8,053
-------- --------
Total Asset Retirement
Obligation, End of Period $894,681 $400,259
======== ========
Asset Retirement Obligation -
Current $ 12,086 $ 8,629
Asset Retirement Obligation -
Long-Term 882,595 391,630
-37-
II-B Partnership
----------------
Three Months Three Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, April 1 $388,366 $211,334
Accretion expense 4,475 2,117
-------- --------
Total Asset Retirement
Obligation, End of Quarter $392,841 $213,451
======== ========
Six Months Six Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, January 1 $383,886 $210,198
Settlements and disposals - ( 987)
Accretion expense 8,955 4,240
-------- --------
Total Asset Retirement
Obligation, End of Period $392,841 $213,451
======== ========
Asset Retirement Obligation -
Current $ 9,784 $ 6,003
Asset Retirement Obligation -
Long-Term 383,057 207,448
II-C Partnership
----------------
Three Months Three Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, April 1 $142,531 $73,718
Settlements and disposals - 168
Accretion expense 1,769 811
-------- -------
Total Asset Retirement
Obligation, End of Quarter $144,300 $74,697
======== =======
-38-
Six Months Six Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, January 1 $140,791 $73,574
Additions and revisions - 168
Settlements and disposals - ( 673)
Accretion expense 3,509 1,628
-------- -------
Total Asset Retirement
Obligation, End of Period $144,300 $74,697
======== =======
Asset Retirement Obligation -
Current $ 10,516 $ 6,010
Asset Retirement Obligation -
Long-Term 133,784 68,687
II-D Partnership
----------------
Three Months Three Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, April 1 $454,206 $189,131
Additions and revisions - 1,762
Accretion expense 5,600 2,073
-------- --------
Total Asset Retirement
Obligation, End of Quarter $459,806 $192,966
======== ========
Six Months Six Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, January 1 $448,613 $187,060
Additions and revisions - 1,762
Accretion expense 11,193 4,144
-------- --------
Total Asset Retirement
Obligation, End of Period $459,806 $192,966
======== ========
Asset Retirement Obligation -
Current $ 60,377 $ 22,628
Asset Retirement Obligation -
Long-Term 399,429 170,338
-39-
II-E Partnership
----------------
Three Months Three Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, April 1 $239,803 $103,684
Additions and revisions 115 119
Accretion expense 2,973 1,142
-------- --------
Total Asset Retirement
Obligation, End of Quarter $242,891 $104,945
======== ========
Six Months Six Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, January 1 $237,057 $102,444
Additions and revisions 115 241
Settlements and disposals ( 205) -
Accretion expense 5,924 2,260
-------- --------
Total Asset Retirement
Obligation, End of Period $242,891 $104,945
======== ========
Asset Retirement Obligation -
Current $ 6,379 $ 2,256
Asset Retirement Obligation -
Long-Term 236,512 102,689
II-F Partnership
----------------
Three Months Three Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, April 1 $199,864 $103,792
Additions and revisions 280 291
Accretion expense 2,503 1,183
-------- --------
Total Asset Retirement
Obligation, End of Quarter $202,647 $105,266
======== ========
-40-
Six Months Six Months
Ended Ended
6/30/2006 6/30/2005
------------ -----------
Total Asset Retirement
Obligation, January 1 $197,849 $102,318
Additions and revisions 280 585
Settlements and disposals ( 497) -
Accretion expense 5,015 2,363
-------- --------
Total Asset Retirement
Obligation, End of Period $202,647 $105,266
======== ========
Asset Retirement Obligation -
Current $ 1,444 $ 1,991
Asset Retirement Obligation -
Long-Term 201,203 103,275
II-G Partnership
----------------
Three Months Three Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, April 1 $428,328 $221,752
Additions and revisions 584 609
Accretion expense 5,331 2,504
-------- --------
Total Asset Retirement
Obligation, End of Quarter $434,243 $224,865
======== ========
Six Months Six Months
Ended Ended
6/30/2006 6/30/2005
------------ -----------
Total Asset Retirement
Obligation, January 1 $424,043 $218,637
Additions and revisions 584 1,226
Settlements and disposals ( 1,036) -
Accretion expense 10,652 5,002
-------- --------
Total Asset Retirement
Obligation, End of Period $434,243 $224,865
======== ========
Asset Retirement Obligation -
Current $ 3,014 $ 4,260
Asset Retirement Obligation -
Long-Term 431,229 220,605
-41-
II-H Partnership
----------------
Three Months Three Months
Ended Ended
6/30/2006 6/30/2005
------------ ------------
Total Asset Retirement
Obligation, April 1 $104,429 $54,325
Additions and revisions 135 141
Accretion expense 1,335 632
-------- -------
Total Asset Retirement
Obligation, End of Quarter $105,899 $55,098
======== =======
Six Months Six Months
Ended Ended
6/30/2006 6/30/2005
----------- -----------
Total Asset Retirement
Obligation, January 1 $103,349 $53,561
Additions and revisions 135 284
Settlements and disposals ( 239) -
Accretion expense 2,654 1,253
-------- -------
Total Asset Retirement
Obligation, End of Period $105,899 $55,098
======== =======
Asset Retirement Obligation -
Current $ 697 $ 1,030
Asset Retirement Obligation -
Long-Term 105,202 54,068
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' Partnership Agreements (the "Partnership Agreements")
provide for reimbursement to the General Partner for all direct general
and administrative expenses and for the general and administrative
overhead applicable to the Partnerships based on an allocation of actual
costs incurred. During the three months ended June 30, 2006, the following
payments were made to the General Partner or its affiliates by the
Partnerships:
-42-
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
II-A $ 7,203 $127,443
II-B 5,853 95,190
II-C 3,580 40,689
II-D 5,320 82,863
II-E 4,394 60,216
II-F 2,910 45,105
II-G 5,114 97,944
II-H 2,031 24,135
During the six months ended June 30, 2006, the following payments were
made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
II-A $ 38,511 $254,886
II-B 35,281 190,380
II-C 29,844 81,378
II-D 34,035 165,726
II-E 31,793 120,432
II-F 29,431 90,210
II-G 34,708 195,888
II-H 27,327 48,270
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.
-43-
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 Partnership Agreements.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
-44-
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 June 30, 2006 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
Occasional expenditures for new wells, well recompletions, or workovers
may reduce or eliminate cash available for a particular quarterly
distribution. During the six months ended June 30, 2005, capital
expenditures for the II-B and II-C Partnerships totaled $87,000 and
$49,000. 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 35.2% and 15.1% in this well. Other
capital expenditures incurred by the Partnerships during the six months
ended June 30, 2006 and 2005 were not material to the Partnerships' cash
flows.
Pursuant to the terms of the Partnerships 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. The General Partner
has extended the terms of the Partnerships for their third two-year
extension thereby extending their termination date to December 31, 2007.
As of the date of this Quarterly Report, the General Partner has not yet
determined whether to further extend the term of any Partnership.
-45-
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
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
-46-
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
(i) 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 (ii) capitalized as part of the carrying amount of the well.
NEW ACCOUNTING PRONOUNCEMENTS
- -----------------------------
The Partnerships are not aware of any recently issued accounting
pronouncements that will impact 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
-47-
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
volumes to differ from the reserve reports prepared by the General
Partner.
II-A Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2005 687,366 6,367,741
Production ( 13,534) ( 149,109)
Extensions and discoveries 13 697
Revisions of previous
estimates 4,507 ( 86,846)
------- ---------
Proved reserves, March 31, 2006 678,352 6,132,483
Production ( 13,707) ( 144,712)
Extensions and discoveries 24,114 1,085
Revisions of previous
estimates 44,825 401,616
------- ---------
Proved reserves, June 30, 2006 733,584 6,390,472
======= =========
-48-
II-B Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2005 489,229 4,776,281
Production ( 8,876) ( 133,571)
Revisions of previous
estimates 2,559 ( 54,105)
------- ---------
Proved reserves, March 31, 2006 482,912 4,588,605
Production ( 9,202) ( 119,069)
Extensions and discoveries - 334
Revisions of previous
estimates 31,353 458,982
------- ---------
Proved reserves, June 30, 2006 505,063 4,928,852
======= =========
II-C Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2005 173,409 3,545,913
Production ( 2,967) ( 77,245)
Extension and discoveries 5 209
Revisions of previous
estimates 211 ( 52,254)
------- ---------
Proved reserves, March 31, 2006 170,658 3,416,623
Production ( 3,346) ( 72,804)
Extension and discoveries 752 873
Revisions of previous
estimates 7,469 225,734
------- ---------
Proved reserves, June 30, 2006 175,533 3,570,426
======= =========
-49-
II-D Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2005 172,825 9,645,488
Production ( 4,603) ( 171,389)
Extensions and discoveries 46 2,722
Revisions of previous
estimates 55 ( 229,517)
------- ---------
Proved reserves, March 31, 2006 168,323 9,247,304
Production ( 4,638) ( 163,108)
Extensions and discoveries 7,906 20,010
Revisions of previous
estimates 17,160 35,647
------- ---------
Proved reserves, June 30, 2006 188,751 9,139,853
======= =========
II-E Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2005 177,992 5,039,155
Production ( 4,094) ( 109,081)
Extensions and discoveries 155 2,107
Revisions of previous
estimates 768 ( 94,600)
------- ---------
Proved reserves, March 31, 2006 174,821 4,837,581
Production ( 4,484) ( 102,804)
Extensions and discoveries 1,832 19,116
Revisions of previous
estimates 32,236 124,812
------- ---------
Proved reserves, June 30, 2006 204,405 4,878,705
======= =========
-50-
II-F Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2005 337,510 3,552,595
Production ( 6,255) ( 91,668)
Extension and discoveries 374 2,153
Revisions of previous
estimates 1,015 ( 55,887)
------- ---------
Proved reserves, March 31, 2006 332,644 3,407,193
Production ( 6,293) ( 91,531)
Extension and discoveries 2,288 27,225
Revisions of previous
estimates 60,592 245,938
------- ---------
Proved reserves, June 30, 2006 389,231 3,588,825
======= =========
II-G Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2005 707,731 7,611,607
Production ( 13,106) ( 195,575)
Extension and discoveries 776 3,823
Revisions of previous
estimates 2,121 ( 121,814)
------- ---------
Proved reserves, March 31, 2006 697,522 7,298,041
Production ( 13,211) ( 198,058)
Extension and discoveries 4,780 57,036
Revisions of previous
estimates 126,560 527,181
------- ---------
Proved reserves, June 30, 2006 815,651 7,684,200
======= =========
-51-
II-H Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2005 164,943 1,840,781
Production ( 2,980) ( 46,838)
Extension and discoveries 182 1,168
Revisions of previous
estimates 421 ( 30,108)
------- ---------
Proved reserves, March 31, 2006 162,566 1,765,003
Production ( 3,053) ( 46,733)
Extension and discoveries 1,105 13,216
Revisions of previous
estimates 29,293 124,372
------- ---------
Proved reserves, June 30, 2006 189,911 1,855,858
======= =========
The net present value of the Partnerships' reserves may change
dramatically as oil and gas prices change or as volumes change for the
reasons described above. Net present value represents estimated future
gross cash flow from the production and sale of proved reserves, net of
estimated oil and gas production costs (including production taxes, ad
valorem taxes, and operating expenses) and estimated future development
costs, discounted at 10% per annum.
The following table indicates the estimated net present value of the
Partnerships' proved reserves as of June 30, 2006, March 31, 2006, and
December 31, 2005. 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 oil and gas prices cause the
estimates of remaining economically recoverable reserves, as well as the
values placed on said reserves to fluctuate. The prices used in
calculating the net present value attributable to the Partnerships' proved
reserves do not necessarily reflect market prices for oil and gas
production subsequent to June 30, 2006. There can be no assurance that the
prices used in calculating the net present value of the Partnerships'
proved reserves at June 30, 2006 will actually be realized for such
production.
-52-
Net Present Value of Reserves
-----------------------------------------------
Partnership 6/30/06 3/31/06 12/31/05
----------- ----------- ----------- -----------
II-A $30,013,329 $29,644,993 $36,701,293
II-B 21,452,570 20,510,463 25,757,023
II-C 11,890,840 12,442,385 16,798,551
II-D 26,127,776 29,594,472 41,793,578
II-E 15,191,207 15,738,359 21,072,334
II-F 16,784,330 15,860,848 19,777,174
II-G 35,516,378 33,654,354 42,091,656
II-H 8,401,887 8,002,233 10,059,084
Oil and Gas Prices
---------------------------------------------
Pricing 6/30/06 3/31/06 12/31/05
----------- ----------- ----------- -----------
Oil (Bbl) $ 73.94 $ 66.25 $ 61.06
Gas (Mcf) 6.09 7.18 10.08
From March 31, 2006 to June 30, 2006, the II-F, II-G, and II-H
Partnerships' estimated proved reserves increased 45,000, 94,000, and
22,000 barrels of oil equivalent in the Hutchings Stock Association well
located in Ward County, Texas. This increase was primarily due to a
revised forecast in reserves based on actual production experience.
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. 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 are very volatile.
Additionally, lower prices may reduce the amount of oil and gas that is
economic to produce and reduce the Partnerships' revenues and cash flow.
Various factors beyond the Partnerships' control will affect prices for
oil and natural gas, such as:
* Worldwide and domestic supplies of oil and natural gas;
* The ability of the members of the Organization of Petroleum
Exporting Countries ("OPEC") to agree to and maintain oil
prices and production quotas;
* Political instability or armed conflict in oil-producing
regions or around major shipping areas;
* The level of consumer demand and overall economic activity;
-53-
* The competitiveness of alternative fuels;
* Weather conditions and the impact of weather-related events;
* The availability of pipelines for transportation;
* Domestic and foreign government regulations and taxes; and
* Market expectations.
It is not possible to predict the future direction of oil or natural gas
prices or whether the above discussed trends will continue. Operating
costs, including General and Administrative Expenses, may not decline over
time, may increase, or may experience only a gradual decline, thus
adversely affecting net revenues. Net revenues may also be affected by
proceeds from property sales or additional costs resulting from well
workovers, recompletions, new well drilling, and other events.
In addition to pricing, 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. Despite this general
trend of declining production, several factors can cause volumes sold to
increase, remain relatively constant, or decrease at an even greater rate
over a given period. These factors include, but are not limited to:
* Geophysical conditions which cause an acceleration of the
decline in production;
* The shutting in of wells due to low oil and gas prices (or the
opening of previously shut-in wells due to high oil and gas
prices), mechanical difficulties, loss of a
market/transportation, or performance of workovers,
recompletions, or other operations in the well;
* Prior period volume adjustments made by the operators of
the properties;
* Adjustments in ownership or rights to production (such as
adjustments that occur at payout or due to gas balancing);
and
* Completion of enhanced recovery projects which increase
production for the well.
Many of these factors can be very significant for a single well or for
many wells over a short period of time. 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.
-54-
II-A PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2005.
Three Months Ended June 30,
----------------------------
2006 2005
---------- ----------
Oil and gas sales $1,782,336 $1,718,212
Oil and gas production expenses $ 470,603 $ 400,536
Barrels produced 13,707 13,187
Mcf produced 144,712 161,605
Average price/Bbl $ 66.25 $ 52.94
Average price/Mcf $ 6.04 $ 6.31
As shown in the table above, total oil and gas sales increased $64,000
(3.7%) for the three months ended June 30, 2006 as compared to the three
months ended June 30, 2005. Of this increase (i) $183,000 was related to
an increase in the average price of oil sold and (ii) $27,000 was related
to an increase in volumes of oil sold. These increases were partially
offset by decreases of (i) $107,000 related to a decrease in volumes of
gas sold and (ii) $39,000 related to a decrease in the average price of
gas sold.
Volumes of oil sold increased 520 barrels, while volumes of gas sold
decreased 16,893 Mcf for the three months ended June 30, 2006 as compared
to the three months ended June 30, 2005. The increase in volumes of oil
sold was primarily due to (i) a negative prior period volume adjustment
made by the operator on one significant well during the three months ended
June 30, 2005, (ii) increases in production on several wells following
their successful workovers during late 2005 and early 2006, and (iii) an
increase in production on another significant well following successful
repairs made during late 2005 and early 2006. These increases were
partially offset by normal declines in production. The decrease in volumes
of gas sold was primarily due to (i) normal declines in production, (ii)
positive prior period volume adjustments made by the operators on two
significant wells during the three months ended June 30, 2005, and (iii)
the shutting-in of one significant well during the three months ended June
30, 2006 due to mechanical problems. As of the date of this Quarterly
Report, the operator has not yet determined when, or if the shut-in well
will return to production and, if returned to production, at what rate.
The decreases in volumes of gas sold were partially offset by one
significant well returning to production during mid 2005 following the
resolution of transportation problems associated with line pressure.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $70,000 (17.5%) for the three months ended
June 30, 2006 as compared to the three months ended June 30, 2005. This
increase was primarily due to (i) a $57,000 increase in lease operating
expenses during the three months ended June 30, 2006 resulting from an
increase in the II-A Partnership's gas balancing position on several wells
and (ii) workover expenses incurred on several wells during the three
months ended June 30, 2006. These increases were partially offset by
workover expenses incurred on several other wells during the three months
ended June 30, 2005. As a percentage of oil and gas sales, these expenses
increased to 26.4% for the three months ended June 30, 2006 from 23.3% for
the three months
-55-
ended June 30, 2005, primarily due to the dollar increase in production
expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $22,000 (29.3%) for the three months ended June 30,
2006 as compared to the three months ended June 30, 2005. This decrease
resulted from (i) an increase in depletable oil and gas properties during
2005 primarily due to the recompletion of one significant well, (ii)
upward revisions in the estimates of remaining oil and gas reserves since
June 30, 2005, and (iii) the decrease in volumes of gas sold. The
decreases in DD&A were partially offset by increases of (i) $9,000 due to
the depletion of additional capitalized costs resulting from the upward
revision in the estimate of the asset retirement obligations during late
2005 and (ii) $6,000 due to accretion of these additional asset retirement
obligations. As a percentage of oil and gas sales, this expense decreased
to 3.0% for the three months ended June 30, 2006 from 4.5% for the three
months ended June 30, 2005, primarily due to the dollar decrease in DD&A.
General and administrative expenses remained relatively constant for the
three months ended June 30, 2006 and 2005. As a percentage of oil and gas
sales, these expenses decreased to 7.6% for the three months ended June
30, 2006 from 7.8% for the three months ended June 30, 2005.
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2005.
Six Months Ended June 30,
----------------------------
2006 2005
---------- ----------
Oil and gas sales $3,666,397 $3,435,346
Oil and gas production expenses $1,002,763 $ 738,411
Barrels produced 27,241 29,003
Mcf produced 293,821 330,307
Average price/Bbl $ 63.33 $ 49.42
Average price/Mcf $ 6.61 $ 6.06
As shown in the table above, total oil and gas sales increased $231,000
(6.7%) for the six months ended June 30, 2006 as compared to the six
months ended June 30, 2005. Of this increase $379,000 and $160,000 were
related to increases in the average prices of oil and gas sold. These
increases were partially offset by decreases of $87,000 and $221,000
related to decreases in volumes of oil and gas sold.
Volumes of oil and gas sold decreased 1,762 barrels and 36,486 Mcf for the
six months ended June 30, 2006 as compared to the six months ended June
30, 2005. The decrease in volumes of oil sold was primarily due to normal
declines in production. This decrease was partially offset by (i) a
negative prior period volume adjustment made during the six months ended
June 30, 2005 by the operator on one significant well, (ii) increases in
production on several wells following the successful workovers of those
wells during late 2005 and early 2006, and (iii) an increase in production
on another significant well following successful repairs made during late
2005 and early 2006. The decrease in volumes of gas sold was primarily due
to (i) normal declines in production,
-56-
(ii) positive prior period volume adjustments made by the operators on
several wells during the six months ended June 30, 2005, and (iii) the
shutting-in of one significant well during the six months ended June 30,
2006 due to mechanical problems. As of the date of this Quarterly Report,
the operator has not yet determined when, or if, the shut-in well will
return to production and, if returned to production, at what rate. The
decreases in volumes of gas sold were partially offset by one significant
well returning to production during mid 2005 following the resolution of
transportation problems associated with line pressure.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $264,000 (35.8%) for the six months ended June
30, 2006 as compared to the six months ended June 30, 2005. This increase
was primarily due to (i) workover expenses incurred on several wells
during the six months ended June 30, 2006, (ii) a $57,000 increase in
lease operating expenses during the six months ended June 30, 2006
resulting from an increase in the II-A Partnership's gas balancing
position on several wells, and (iii) a reversal during the six months
ended June 30, 2005 of $27,000 of a charge previously accrued for a
judgment. These increases were partially offset by workover expenses
incurred on several other wells during the six months ended June 30, 2005.
As a percentage of oil and gas sales, these expenses increased to 27.4%
for the six months ended June 30, 2006 from 21.5% for the six months ended
June 30, 2005, primarily due to the dollar increase in production
expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $8,000 (6.3%) for the six months ended June 30, 2006
as compared to the six months ended June 30, 2005. This decrease resulted
from (i) an increase in depletable oil and gas properties during 2005
primarily due to the recompletion of one significant well, (ii) the
decreases in volumes of oil and gas sold, and (iii) upward revisions in
the estimates of remaining oil and gas reserves since June 30, 2005. The
decreases in DD&A were partially offset by increases of (i) $19,000 due to
the depletion of additional capitalized costs resulting from the upward
revision in the estimate of the asset retirement obligations during late
2005 and (ii) $12,000 due to accretion of these additional asset
retirement obligations. As a percentage of oil and gas sales, this expense
decreased to 3.3% for the six months ended June 30, 2006 from 3.7% for the
six months ended June 30, 2005. This percentage decrease was primarily due
to (i) the dollar decrease in DD&A and (ii) the increases in the average
prices of oil and gas sold.
General and administrative expenses increased $3,000 (1.1%) for the six
months ended June 30, 2006 as compared to the six months ended June 30,
2005. As a percentage of oil and gas sales, these expenses decreased to
8.0% for the six months ended June 30, 2006 from 8.4% for the six months
ended June 30, 2005.
The Limited Partners have received cash distributions through June 30,
2006 totaling $67,667,357 or 139.73% of Limited Partners' capital
contributions.
-57-
II-B PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2005.
Three Months Ended June 30,
---------------------------
2006 2005
---------- ----------
Oil and gas sales $1,309,235 $1,188,827
Oil and gas production expenses $ 325,946 $ 304,911
Barrels produced 9,202 9,816
Mcf produced 119,069 116,193
Average price/Bbl $ 66.92 $ 51.18
Average price/Mcf $ 5.82 $ 5.91
As shown in the table above, total oil and gas sales increased $120,000
(10.1%) for the three months ended June 30, 2006 as compared to the three
months ended June 30, 2005. Of this increase (i) $145,000 was related to
an increase in the average price of oil sold and (ii) $17,000 was related
to an increase in volumes of gas sold. These increases were partially
offset by a decrease of $31,000 related to a decrease in volumes of oil
sold.
Volumes of oil sold decreased 614 barrels, while volumes of gas sold
increased 2,876 Mcf for the three months ended June 30, 2006 as compared
to the three months ended June 30, 2005. The decrease in volumes of oil
sold was primarily due to normal declines in production. The increase in
volumes of gas sold was primarily due to one significant well returning to
production during mid 2005 following the resolution of transportation
problems associated with line pressure. This increase was partially offset
by normal declines in production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $21,000 (6.9%) for the three months ended June
30, 2006 as compared to the three months ended June 30, 2005. This
increase was primarily due to (i) a $45,000 increase in lease operating
expenses during the three months ended June 30, 2006 resulting from an
increase in the II-B Partnership's gas balancing position on several
wells, (ii) workover expenses incurred on several wells during the three
months ended June 30, 2006, and (iii) 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 other significant
wells during the three months ended June 30, 2005. As a percentage of oil
and gas sales, these expenses decreased to 24.9% for the three months
ended June 30, 2006 from 25.6% for the three months ended June 30, 2005.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $51,000 (60.6%) for the three months ended June 30,
2006 as compared to the three months ended June 30, 2005. This decrease
resulted from an increase in depletable oil and gas properties during 2005
primarily due to the recompletion of one significant well. The decrease in
DD&A was partially offset by increases of (i) $2,000 due to the depletion
of additional capitalized costs resulting from the
-58-
upward revision in the estimate of the asset retirement obligations during
late 2005 and (ii) $2,000 due to accretion of these additional asset
retirement obligations. As a percentage of oil and gas sales, this expense
decreased to 2.5% for the three months ended June 30, 2006 from 7.1% for
the three months ended June 30, 2005, primarily due to the dollar decrease
in DD&A.
General and administrative expenses remained relatively constant for the
three months ended June 30, 2006 and 2005. As a percentage of oil and gas
sales, these expenses decreased to 7.7% for the three months ended June
30, 2006 from 8.5% for the three months ended June 30, 2005.
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2005.
Six Months Ended June 30,
---------------------------
2006 2005
---------- ----------
Oil and gas sales $2,794,028 $2,489,809
Oil and gas production expenses $ 726,395 $ 560,472
Barrels produced 18,078 21,459
Mcf produced 252,640 245,843
Average price/Bbl $ 64.02 $ 48.65
Average price/Mcf $ 6.48 $ 5.88
As shown in the table above, total oil and gas sales increased $304,000
(12.2%) for the six months ended June 30, 2006 as compared to the six
months ended June 30, 2005. Of this increase (i) $278,000 and $151,000
were related to increases in the average prices of oil and gas sold and
(ii) $40,000 was related to an increase in volumes of gas sold. These
increases were partially offset by a decrease of $165,000 related to a
decrease in volumes of oil sold.
Volumes of oil sold decreased 3,381 barrels, while volumes of gas sold
increased 6,797 Mcf for the six months ended June 30, 2006 as compared to
the six months ended June 30, 2005. The decrease in volumes of oil sold
was primarily due to (i) normal declines in production and (ii) the
shutting-in of two significant wells during the six months ended June 30,
2006 in order to perform repairs and maintenance. As of the date of this
Quarterly Report, the shut-in wells are producing at or above the rate
previously experienced. The increase in volumes of gas sold was primarily
due to (i) one significant well returning to production during mid 2005
following the resolution of transportation problems associated with line
pressure, (ii) an increase in production on two significant wells
following the successful workovers of those wells during mid 2005 and
early 2006, and (iii) a negative prior period volume adjustment made by
the operator on one significant well during the six months ended June 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 $166,000 (29.6%) for the six months ended June
30, 2006 as compared to the six months ended June 30, 2005. This increase
was primarily due to (i) workover expenses incurred on several wells
during the six months ended June 30, 2006 and (ii) a $45,000
-59-
increase in lease operating expenses during the six months ended June 30,
2006 resulting from an increase in the II-B Partnership's gas balancing
position on several wells. These increases were partially offset by
workover expenses incurred on several other wells during the six months
ended June 30, 2005. As a percentage of oil and gas sales, these expenses
increased to 26.0% for the six months ended June 30, 2006 from 22.5% for
the six months ended June 30, 2005, primarily due to the dollar increase
in production expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $51,000 (41.6%) for the six months ended June 30,
2006 as compared to the six months ended June 30, 2005. This decrease
resulted from an increase in depletable oil and gas properties during 2005
primarily due to the recompletion of one significant well. The decrease in
DD&A was partially offset by increases of (i) $5,000 due to the depletion
of additional capitalized costs resulting from the upward revision in the
estimate of the asset retirement obligations during late 2005 and (ii)
$4,000 due to accretion of these additional asset retirement obligations.
As a percentage of oil and gas sales, this expense decreased to 2.6% for
the six months ended June 30, 2006 from 4.9% for the six months ended June
30, 2005, primarily due to the dollar decrease in DD&A.
General and administrative expenses increased $3,000 (1.3%) for the six
months ended June 30, 2006 as compared to the six months ended June 30,
2005. As a percentage of oil and gas sales, these expenses decreased to
8.1% for the six months ended June 30, 2006 from 9.0% for the six months
ended June 30, 2005, primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through June 30,
2006 totaling $48,848,916 or 135.05% of Limited Partners' capital
contributions.
II-C PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2005.
Three Months Ended June 30,
---------------------------
2006 2005
-------- --------
Oil and gas sales $638,156 $639,691
Oil and gas production expenses $144,129 $106,196
Barrels produced 3,346 3,361
Mcf produced 72,804 78,411
Average price/Bbl $ 66.97 $ 51.76
Average price/Mcf $ 5.69 $ 5.94
As shown in the table above, total oil and gas sales remained relatively
constant for the three months ended June 30, 2006 and 2005. Decreases of
(i) $1,000 and $33,000 related to decreases in volumes of oil and gas sold
and (ii) $18,000 related to a decrease in the average price of gas sold
were substantially offset by an increase of $51,000 related to an increase
in the average price of oil sold.
-60-
Volumes of oil and gas sold decreased 15 barrels and 5,607 Mcf for the
three months ended June 30, 2006 as compared to the three months ended
June 30, 2005. The decrease in volumes of oil sold was primarily due to
normal declines in production and was partially offset by increases in
production on two significant wells following the successful workover of
those wells during late 2005. The decrease in volumes of gas sold was
primarily due to normal declines in production and was partially offset by
one significant well returning to production during mid 2005 following the
resolution of transportation problems associated with line pressure.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $38,000 (35.7%) for the three months ended
June 30, 2006 as compared to the three months ended June 30, 2005. This
increase was primarily due to (i) a $26,000 decrease in lease operating
expenses during the three months ended June 30, 2005 resulting from a
decrease in the II-C Partnership's gas balancing position on several wells
and (ii) a $20,000 increase in lease operating expenses during the three
months ended June 30, 2006 resulting from an increase in the II-C
Partnership's gas balancing position on several other wells. As a
percentage of oil and gas sales, these expenses increased to 22.6% for the
three months ended June 30, 2006 from 16.6% for the three months ended
June 30, 2005, primarily due to the dollar increase in production
expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $18,000 (52.5%) for the three months ended June 30,
2006 as compared to the three months ended June 30, 2005. This decrease
resulted from an increase in depletable oil and gas properties during 2005
primarily due to the recompletion of one significant well. The decrease in
DD&A was partially offset by (i) the receipt of equipment credits on an
abandoned well during the three months ended June 30, 2005, (ii) an
increase of $1,000 due to the depletion of additional capitalized costs
resulting from the upward revision in the estimate of the asset retirement
obligations during late 2005, and (iii) an increase of $1,000 due to
accretion of these additional asset retirement obligations. As a
percentage of oil and gas sales, this expense decreased to 2.5% for the
three months ended June 30, 2006 from 5.3% for the three months ended June
30, 2005, primarily due to the dollar decrease in DD&A.
General and administrative expenses remained relatively constant for the
three months ended June 30, 2006 and 2005. As a percentage of oil and gas
sales, these expenses remained constant at 6.9% for the three months ended
June 30, 2006 and 2005.
-61-
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2005.
Six Months Ended June 30,
-------------------------
2006 2005
---------- ----------
Oil and gas sales $1,368,595 $1,302,274
Oil and gas production expenses $ 329,130 $ 230,791
Barrels produced 6,313 7,936
Mcf produced 150,049 156,219
Average price/Bbl $ 64.44 $ 48.10
Average price/Mcf $ 6.41 $ 5.89
As shown in the table above, total oil and gas sales increased $66,000
(5.1%) for the six months ended June 30, 2006 as compared to the six
months ended June 30, 2005. Of this increase $103,000 and $78,000 were
related to increases in the average prices of oil and gas sold. These
increases were partially offset by decreases of $78,000 and $36,000
related to decreases in volumes of oil and gas sold.
Volumes of oil and gas sold decreased 1,623 barrels and 6,170 Mcf for the
six months ended June 30, 2006 as compared to the six months ended June
30, 2005. The decrease in volumes of oil sold was primarily due to (i)
normal declines in production, (ii) a positive prior period volume
adjustment made by the operator on one significant well during the six
months ended June 30, 2005, and (iii) the shutting-in of two significant
wells during the six months ended June 30, 2006 in order to perform
repairs and maintenance. As of the date of this Quarterly Report, the
shut-in wells are producing at or above the rate previously experienced.
The decrease in volumes of gas sold was primarily due to normal declines
in production and was partially offset by one significant well returning
to production during mid 2005 following the resolution of transportation
problems associated with line pressure.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $98,000 (42.6%) for the six months ended June
30, 2006 as compared to the six months ended June 30, 2005. This increase
was primarily due to (i) workover expenses incurred on one significant
well during the six months ended June 30, 2006, (ii) a $26,000 decrease in
lease operating expenses during the six months ended June 30, 2005
resulting from a decrease in the II-C Partnership's gas balancing position
on several wells, and (iii) a $20,000 increase in lease operating expenses
during the six months ended June 30, 2006 resulting from an increase in
the II-C Partnership's gas balancing position on several other wells. As a
percentage of oil and gas sales, these expenses increased to 24.0% for the
six months ended June 30, 2006 from 17.7% for the six months ended June
30, 2005, primarily due to the dollar increase in production expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $15,000 (30.7%) for the six months ended June 30,
2006 as compared to the six months ended June 30, 2005. This decrease
resulted from an increase in depletable oil and gas properties during 2005
primarily due to the recompletion of one significant well. The decrease in
DD&A was partially offset by (i) an increase of $2,000 primarily due to
the depletion of additional capitalized costs
-62-
resulting from the upward revision in the estimate of the asset retirement
obligations during late 2005, (ii) an increase of $2,000 due to accretion
of these additional asset retirement obligations, and (iii) the receipt of
equipment credits on an abandoned well during the six months ended June
30, 2005. As a percentage of oil and gas sales, this expense decreased to
2.5% for the six months ended June 30, 2006 from 3.8% for the six months
ended June 30, 2005, primarily due to the dollar decrease in DD&A.
General and administrative expenses increased $2,000 (2.0%) for the six
months ended June 30, 2006 as compared to the six months ended June 30,
2005. As a percentage of oil and gas sales, these expenses decreased to
8.1% for the six months ended June 30, 2006 from 8.4% for the six months
ended June 30, 2005.
The Limited Partners have received cash distributions through June 30,
2006 totaling $23,271,686 or 150.51% of Limited Partners' capital
contributions.
II-D PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2005.
Three Months Ended June 30,
---------------------------
2006 2005
---------- ----------
Oil and gas sales $1,199,286 $1,297,819
Oil and gas production expenses $ 276,989 $ 248,331
Barrels produced 4,638 4,408
Mcf produced 163,108 173,273
Average price/Bbl $ 59.75 $ 49.61
Average price/Mcf $ 5.65 $ 6.23
As shown in the table above, total oil and gas sales decreased $99,000
(7.6%) for the three months ended June 30, 2006 as compared to the three
months ended June 30, 2005. Of this decrease (i) $94,000 was related to a
decrease in the average price of gas sold and (ii) $63,000 was related to
a decrease in volumes of gas sold. These decreases were partially offset
by increases of (i) $47,000 related to an increase in the average price of
oil sold and (ii) $11,000 related to an increase in volumes of oil sold.
Volumes of oil sold increased 230 barrels, while volumes of gas sold
decreased 10,165 Mcf for the three months ended June 30, 2006 as compared
to the three months ended June 30, 2005. The increase in volumes of oil
sold was primarily due to a negative prior period volume adjustment made
by the operator on one significant well during the three months ended June
30, 2005 and was partially offset by normal declines in production. The
decrease in volumes of gas sold was primarily due to (i) normal declines
in production and (ii) the shutting-in of one significant well due to
production difficulties during the three months ended June 30, 2006. As of
the date of this Quarterly Report, the operator has not yet determined
when, or if, the shut-in well will return to production and, if returned
to production,
-63-
at what rate. The decreases in volumes of gas sold were partially offset
by one significant well returning to production during mid 2005 following
the resolution of transportation problems associated with line pressure.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $29,000 (11.5%) for the three months ended
June 30, 2006 as compared to the three months ended June 30, 2005. This
increase was primarily due to (i) a $35,000 increase in lease operating
expenses during the three months ended June 30, 2006 resulting from an
increase in the II-D Partnership's gas balancing position on several
wells, (ii) a $33,000 decrease in lease operating expenses during the
three months ended June 30, 2005 resulting from a decrease in the II-D
Partnership's gas balancing position on several other wells, and (iii)
workover expenses incurred on several wells within one unit during the
three months ended June 30, 2006. These increases were partially offset by
(i) workover expenses incurred on one significant well during the three
months ended June 30, 2005, (ii) a positive prior period production tax
adjustment made by the operator on another significant well during the
three months ended June 30, 2005, and (iii) a decrease in production taxes
associated with the decrease in oil and gas sales. As a percentage of oil
and gas sales, these expenses increased to 23.1% for the three months
ended June 30, 2006 from 19.1% for the three months ended June 30, 2005.
This percentage increase was primarily due to (i) the dollar increase in
production expenses and (ii) the decrease in oil and gas sales.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties increased $45,000 (1379.1%) for the three months ended June 30,
2006 as compared to the three months ended June 30, 2005. This increase
was primarily due to (i) the receipt of equipment credits on an abandoned
well during the three months ended June 30, 2005, (ii) an increase of
$5,000 due to the depletion of additional capitalized costs resulting from
the upward revision in the estimate of the asset retirement obligations
during late 2005, and (iii) an increase of $3,000 due to accretion of
these additional asset retirement obligations. As a percentage of oil and
gas sales, this expense increased to 4.0% for the three months ended June
30, 2006 from 0.3% for the three months ended June 30, 2005, primarily due
to the dollar increase in DD&A.
General and administrative expenses remained relatively constant for the
three months ended June 30, 2006 and 2005. As a percentage of oil and gas
sales, these expenses increased to 7.4% for the three months ended June
30, 2006 from 6.8% for the three months ended June 30, 2005.
-64-
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2005.
Six Months Ended June 30,
---------------------------
2006 2005
---------- ----------
Oil and gas sales $2,676,458 $2,719,365
Oil and gas production expenses $ 597,242 $ 558,623
Barrels produced 9,241 11,421
Mcf produced 334,497 358,878
Average price/Bbl $ 59.57 $ 46.69
Average price/Mcf $ 6.36 $ 6.09
As shown in the table above, total oil and gas sales decreased $43,000
(1.6%) for the six months ended June 30, 2006 as compared to the six
months ended June 30, 2005. Of this decrease $102,000 and $148,000 were
related to decreases in volumes of oil and gas sold. These decreases were
partially offset by increases of $119,000 and $88,000 related to increases
in the average prices of oil and gas sold.
Volumes of oil and gas sold decreased 2,180 barrels and 24,381 Mcf for the
six months ended June 30, 2006 as compared to the six months ended June
30, 2005. The decrease in volumes of oil 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 six months
ended June 30, 2005. The decrease in volumes of gas sold was primarily due
to (i) normal declines in production, (ii) the shutting-in during six
months ended June 30, 2006 of one significant well due to production
difficulties, and (iii) a substantial decline in production during the six
months ended June 30, 2006 on one significant well following a workover of
that well during early 2005. As of the date of this Quarterly Report, the
operator has not yet determined when, or if, the shut-in well will return
to production and, if returned to production, at what rate. The well with
a substantial decline in production is not expected to return to its
previously high levels of production. The decreases in volumes of gas sold
were partially offset by one significant well returning to production
during mid 2005 following the resolution of transportation problems
associated with line pressure.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $39,000 (6.9%) for the six months ended June
30, 2006 as compared to the six months ended June 30, 2005. This increase
was primarily due to (i) a $35,000 increase in lease operating expenses
during the six months ended June 30, 2006 resulting from an increase in
the II-D Partnership's gas balancing position on several wells, (ii) a
$33,000 decrease in lease operating expenses during the six months ended
June 30, 2005 resulting from a decrease in the II-D Partnership's gas
balancing position on several other wells, and (iii) workover expenses
incurred on several wells within one unit during the six months ended June
30, 2006. These increases were partially offset by (i) workover expenses
incurred on one significant well during the six months ended June 30,
2005, (ii) a positive prior period production tax adjustment made during
the six months ended June 30, 2005 by the operator on another significant
well, and (iii) a decrease in production taxes associated with the
decrease in oil and gas sales. As a percentage of oil and gas sales, these
expenses increased to 22.3% for the six months ended June 30, 2006 from
20.5% for the six months ended June 30, 2005.
-65-
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties increased $53,000 (131.3%) for the six months ended June 30,
2006 as compared to the six months ended June 30, 2005. This increase was
primarily due to (i) the receipt of equipment credits on an abandoned well
during the six months ended June 30, 2005, (ii) an increase of $14,000 due
to the depletion of additional capitalized costs resulting from the upward
revision in the estimate of the asset retirement obligations during late
2005, and (iii) an increase of $7,000 due to accretion of these additional
asset retirement obligations. As a percentage of oil and gas sales, this
expense increased to 3.5% for the six months ended June 30, 2006 from 1.5%
for the six months ended June 30, 2005, primarily due to the dollar
increase in DD&A.
General and administrative expenses increased $3,000 (1.3%) for the six
months ended June 30, 2006 as compared to the six months ended June 30,
2005. As a percentage of oil and gas sales, these expenses increased to
7.5% for the six months ended June 30, 2006 from 7.2% for the six months
ended June 30, 2005.
The Limited Partners have received cash distributions through June 30,
2006 totaling $48,751,903 or 154.83% of Limited Partners' capital
contributions.
II-E PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2005.
Three Months Ended June 30,
---------------------------
2006 2005
-------- --------
Oil and gas sales $872,826 $714,535
Oil and gas production expenses $218,143 $159,373
Barrels produced 4,484 3,842
Mcf produced 102,804 87,304
Average price/Bbl $ 64.05 $ 49.55
Average price/Mcf $ 5.70 $ 6.00
As shown in the table above, total oil and gas sales increased $158,000
(22.2%) for the three months ended June 30, 2006 as compared to the three
months ended June 30, 2005. Of this increase (i) $32,000 and $93,000 were
related to increases in volumes of oil and gas sold and (ii) $65,000 was
related to an increase in the average price of oil sold. These increases
were partially offset by $32,000 related to a decrease in the average
price of gas sold.
Volumes of oil and gas sold increased 642 barrels and 15,500 Mcf for the
three months ended June 30, 2006 as compared to the three months ended
June 30, 2005. The increase in volumes of oil sold was primarily due to
negative prior period volume adjustments made by the operators on several
wells during the three months ended June 30, 2005. This increase was
partially offset by (i) positive prior period volume adjustments made by
the operators on several other wells during the three months ended June
30, 2005 and (ii) normal declines in
-66-
production. The increase in volumes of gas sold was primarily due to (i)
one significant well returning to production during mid 2005 following the
resolution of transportation problems associated with line pressure and
(ii) a negative prior period volume adjustment made by the operator on one
significant well during the three months ended June 30, 2005. These
increases were partially offset by (i) positive prior period volume
adjustments made by the operators on several wells during the three months
ended June 30, 2005 and (ii) normal declines in production.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $59,000 (36.9%) for the three months ended
June 30, 2006 as compared to the three months ended June 30, 2005. This
increase was primarily due to (i) a $46,000 increase in lease operating
expenses during the three months ended June 30, 2006 resulting from an
increase in the II-E Partnership's gas balancing position on several
wells, (ii) workover expenses incurred on several wells during the three
months ended June 30, 2006, and (iii) an increase in production taxes
associated with the increase in oil and gas sales. These increases were
partially offset by (i) workover expenses incurred on several other wells
during the three months ended June 30, 2005 and (ii) a negative prior
period lease operating expense adjustment made by the operator on one
significant well during the three months ended June 30, 2006. As a
percentage of oil and gas sales, these expenses increased to 25.0% for the
three months ended June 30, 2006 from 22.3% for the three months ended
June 30, 2005, primarily due to the dollar increase in production
expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $4,000 (10.6%) for the three months ended June 30,
2006 as compared to the three months ended June 30, 2005. As a percentage
of oil and gas sales, this expense decreased to 3.6% for the three months
ended June 30, 2006 from 4.9% for the three months ended June 30, 2005.
This percentage decrease was primarily due to (i) the increase in the
average price of oil sold and (ii) the dollar decrease in DD&A.
General and administrative expenses remained relatively constant for the
three months ended June 30, 2006 and 2005. As a percentage of oil and gas
sales, these expenses decreased to 7.4% for the three months ended June
30, 2006 from 9.1% for the three months ended June 30, 2005, primarily due
to the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2005.
Six Months Ended June 30,
---------------------------
2006 2005
---------- ----------
Oil and gas sales $1,856,310 $1,543,303
Oil and gas production expenses $ 432,486 $ 309,195
Barrels produced 8,578 9,160
Mcf produced 211,885 186,200
Average price/Bbl $ 61.75 $ 47.72
Average price/Mcf $ 6.26 $ 5.94
-67-
As shown in the table above, total oil and gas sales increased $313,000
(20.3%) for the six months ended June 30, 2006 as compared to the six
months ended June 30, 2005. Of this increase (i) $120,000 and $68,000 were
related to increases in the average prices of oil and gas sold and (ii)
$153,000 was related to an increase in volumes of gas sold. These
increases were partially offset by a decrease of $28,000 related to a
decrease in volumes of oil sold.
Volumes of oil sold decreased 582 barrels, while volumes of gas sold
increased 25,685 Mcf for the six months ended June 30, 2006 as compared to
the six months ended June 30, 2005. The decrease in volumes of oil sold
was primarily due to (i) positive prior period volume adjustments made by
the operators on several wells during the six months ended June 30, 2005
and (ii) normal declines in production. These decreases were partially
offset by negative prior period volume adjustments made by the operators
on several other wells during the six months ended June 30, 2005. The
increase in volumes of gas sold was primarily due to (i) one significant
well returning to production during mid 2005 following the resolution of
transportation problems associated with line pressure and (ii) a negative
prior period volume adjustment made by the operator on another significant
well during the six months ended June 30, 2005. These increases were
partially offset by (i) normal declines in production and (ii) positive
prior period volume adjustments made by the operators on several wells
during the six months ended June 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $123,000 (39.9%) for the six months ended June
30, 2006 as compared to the six months ended June 30, 2005. This increase
was primarily due to (i) a $46,000 increase in lease operating expenses
during the six months ended June 30, 2006 resulting from an increase in
the II-E Partnership's gas balancing position on several wells, (ii)
workover expenses incurred on several wells during the six months ended
June 30, 2006, and (iii) an increase in production taxes associated with
the increase in oil and gas sales. These increases were partially offset
by (i) a negative prior period lease operating expense adjustment made by
the operator on one significant well during the six months ended June 30,
2006 and (ii) workover expenses incurred on several wells during the six
months ended June 30, 2005. As a percentage of oil and gas sales, these
expenses increased to 23.3% for the six months ended June 30, 2006 from
20.0% for the six months ended June 30, 2005, primarily due to the dollar
increase in production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $3,000 (3.7%) for the six months ended June 30, 2006 as compared
to the six months ended June 30, 2005. As a percentage of oil and gas
sales, this expense decreased to 4.1% for the six months ended June 30,
2006 from 5.2% for the six months ended June 30, 2005, primarily due to
increases in the average prices of oil and gas sold.
General and administrative expenses increased $2,000 (1.6%) for the six
months ended June 30, 2006 as compared to the six months ended June 30,
2005. As a percentage of oil and gas sales, these expenses decreased to
8.2% for the six months ended June 30, 2006 from 9.7% for the six
-68-
months ended June 30, 2005, primarily due to the increase in oil and
gas sales.
Cumulative cash distributions to the Limited Partners through June 30,
2006 were $33,768,574 or 147.58% of Limited Partners' capital
contributions.
II-F PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2005.
Three Months Ended June 30,
---------------------------
2006 2005
-------- --------
Oil and gas sales $932,342 $888,094
Oil and gas production expenses $141,019 $155,815
Barrels produced 6,293 6,372
Mcf produced 91,531 103,555
Average price/Bbl $ 61.87 $ 47.88
Average price/Mcf $ 5.93 $ 5.63
As shown in the table above, total oil and gas sales increased $44,000
(5.0%) for the three months ended June 30, 2006 as compared to the three
months ended June 30, 2005. Of this increase $88,000 and $28,000 were
related to increases in the average prices of oil and gas sold. These
increases were partially offset by decreases of $4,000 and $68,000 related
to decreases in volumes of oil and gas sold.
Volumes of oil and gas sold decreased 79 barrels and 12,024 Mcf for the
three months ended June 30, 2006 as compared to the three months ended
June 30, 2005. The decreases in volumes of oil and gas sold were primarily
due to (i) positive prior period volume adjustments made by the operators
on several wells during the three months ended June 30, 2005 and (ii)
normal declines in production. These decreases were partially offset by a
negative prior period volume adjustment made by the operator on another
significant well during the three months ended June 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $15,000 (9.5%) for the three months ended June
30, 2006 as compared to the three months ended June 30, 2005. This
decrease was primarily due to (i) a negative prior period lease operating
expense adjustment made by the operator on one significant well during the
three months ended June 30, 2006, (ii) workover expenses incurred on
several wells during the three months ended June 30, 2005, and (iii) a
negative prior period production tax adjustment made by the operator on
another significant well during the three months ended June 30, 2006.
These decreases were partially offset by (i) workover expenses incurred on
several other wells during the three months ended June 30, 2006 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 15.1% for the three months ended June 30, 2006 from 17.5% for the three
months ended June 30, 2005. This percentage decrease was primarily due to
(i) the dollar
-69-
decrease in production expenses and (ii) the increase in oil and gas
sales.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $3,000 (8.7%) for the three months ended June 30,
2006 as compared to the three months ended June 30, 2005. This decrease
was primarily the result of (i) one significant well being fully depleted
during the three months ended June 30, 2005 due to the lack of remaining
reserves, (ii) upward revisions in the estimates of remaining oil and gas
reserves on another significant well since June 30, 2005, and (iii) the
decreases in volumes of oil and gas sold. The decreases in DD&A were
partially offset by increases of (i) $2,000 due to the depletion of
additional capitalized costs resulting from the upward revision in the
estimate of the asset retirement obligations during late 2005 and (ii)
$1,000 due to accretion of these additional asset retirement obligations.
As a percentage of oil and gas sales, this expense decreased to 2.9% for
the three months ended June 30, 2006 from 3.3% for the three months ended
June 30, 2005. This percentage decrease was primarily due to (i) the
dollar decrease in DD&A 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 June 30, 2006 and 2005. As a percentage of oil and gas
sales, these expenses decreased to 5.1% for the three months ended June
30, 2006 from 5.4% for the three months ended June 30, 2005.
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2005.
Six Months Ended June 30,
-------------------------
2006 2005
---------- ----------
Oil and gas sales $1,885,994 $1,817,075
Oil and gas production expenses $ 320,974 $ 260,503
Barrels produced 12,548 13,195
Mcf produced 183,199 207,938
Average price/Bbl $ 59.38 $ 46.64
Average price/Mcf $ 6.23 $ 5.78
As shown in the table above, total oil and gas sales increased $69,000
(3.8%) for the six months ended June 30, 2006 as compared to the six
months ended June 30, 2005. Of this increase $160,000 and $82,000 were
related to increases in the average prices of oil and gas sold. These
increases were partially offset by decreases of $30,000 and $143,000
related to decreases in volumes of oil and gas sold.
Volumes of oil and gas sold decreased 647 barrels and 24,739 Mcf for the
six months ended June 30, 2006 as compared to the six months ended June
30, 2005. The decreases in volumes of oil and gas sold were primarily due
to (i) positive prior period volume adjustments made by the operators on
several wells during the six months ended June 30, 2005 and (ii) normal
declines in production. These decreases were partially offset by a
negative prior period volume adjustment made by
-70-
the operator on another significant well during the six months ended June
30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $60,000 (23.2%) for the six months ended June
30, 2006 as compared to the six months ended June 30, 2005. This increase
was primarily due to (i) workover expenses incurred on several wells
during the six months ended June 30, 2006, (ii) the receipt of ad valorem
tax credits on one significant well during the six months ended June 30,
2005, and (iii) an increase in production taxes associated with the
increase in oil and gas sales. These increases were partially offset by
(i) a negative prior period lease operating expense adjustment made by the
operator on one significant well during the six months ended June 30,
2006, (ii) workover expenses incurred on several other wells during the
six months ended June 30, 2005, and (iii) a negative prior period
production tax adjustment made by the operator on another significant well
during the six months ended June 30, 2006. As a percentage of oil and gas
sales, these expenses increased to 17.0% for the six months ended June 30,
2006 from 14.3% for the six months ended June 30, 2005, primarily due to
the dollar increase in production expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties increased $4,000 (6.1%) for the six months ended June 30, 2006
as compared to the six months ended June 30, 2005. Of this increase (i)
$4,000 was due to the depletion of additional capitalized costs resulting
from the upward revision in the estimate of the asset retirement
obligations during late 2005 and (ii) $3,000 was due to accretion of these
additional asset retirement obligations. This increase was also the result
of the abandonment of one significant well during the six months ended
June 30, 2006 due to the lack of remaining reserves. The increases in DD&A
were partially offset by (i) the decreases in volumes of oil and gas sold,
(ii) one significant well being fully depleted during the six months ended
June 30, 2005 due to the lack of remaining reserves, and (iii) upward
revisions in the estimates of remaining oil and gas reserves on another
significant well since June 30, 2005. As a percentage of oil and gas
sales, this expense remained constant at 3.3% for the six months ended
June 30, 2006 and 2005.
General and administrative expenses increased $2,000 (1.9%) for the six
months ended June 30, 2006 as compared to the six months ended June 30,
2005. As a percentage of oil and gas sales, these expenses decreased to
6.3% for the six months ended June 30, 2006 from 6.5% for the six months
ended June 30, 2005.
Cumulative cash distributions to the Limited Partners through June 30,
2006 were $28,594,051 or 166.83% of Limited Partners' capital
contributions.
-71-
II-G PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2005.
Three Months Ended June 30,
---------------------------
2006 2005
---------- ----------
Oil and gas sales $1,983,171 $1,745,014
Oil and gas production expenses $ 304,278 $ 327,482
Barrels produced 13,211 13,416
Mcf produced 198,058 198,301
Average price/Bbl $ 61.97 $ 47.92
Average price/Mcf $ 5.88 $ 5.56
As shown in the table above, total oil and gas sales increased $238,000
(13.6%) for the three months ended June 30, 2006 as compared to the three
months ended June 30, 2005. Of this increase $186,000 and $64,000 were
related to increases in the average prices of oil and gas sold. These
increases were partially offset by decreases of $10,000 and $2,000 related
to decreases in volumes of oil and gas sold.
Volumes of oil and gas sold decreased 205 barrels and 243 Mcf for the
three months ended June 30, 2006 as compared to the three months ended
June 30, 2005. The decreases in volumes of oil and gas sold were primarily
due to (i) positive prior period volume adjustments made by the operators
on several wells during the three months ended June 30, 2005 and (ii)
normal declines in production. These decreases were partially offset by a
negative prior period volume adjustment made by the operator on another
significant well during the three months ended June 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $23,000 (7.1%) for the three months ended June
30, 2006 as compared to the three months ended June 30, 2005. This
decrease was primarily due to (i) a negative prior period lease operating
expense adjustment made by the operator on one significant well during the
three months ended June 30, 2006, (ii) workover expenses incurred on
several wells during the three months ended June 30, 2005, and (iii) a
negative prior period production tax adjustment made by the operator on
another significant well during the three months ended June 30, 2006.
These decreases were partially offset by (i) workover expenses incurred on
several other wells during the three months ended June 30, 2006 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 15.3% for the three months ended June 30, 2006 from 18.8% for the three
months ended June 30, 2005, primarily due to (i) the increase in oil and
gas sales and (ii) the dollar decrease in production expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $3,000 (4.0%) for the three months ended June 30,
2006 as compared to the three months ended June 30, 2005. This decrease
was primarily the result of (i) one significant well being fully depleted
during the three months ended June 30, 2005 due to the lack of remaining
reserves, (ii) upward revisions in the estimates of remaining oil and gas
reserves on another significant well since June 30, 2005, and (iii) the
decreases in volumes of oil and gas sold. The decreases in DD&A were
partially offset by increases of (i) $3,000 due to the depletion of
additional capitalized costs resulting from the
-72-
upward revision in the estimate of the asset retirement obligations during
late 2005 and (ii) $3,000 due to accretion of these additional asset
retirement obligations. As a percentage of oil and gas sales, this expense
decreased to 3.1% for the three months ended June 30, 2006 from 3.7% for
the three months ended June 30, 2005, primarily due to the increases in
the average prices of oil and gas sold.
General and administrative expenses remained relatively constant for the
three months ended June 30, 2006 and 2005. As a percentage of oil and gas
sales, these expenses decreased to 5.2% for the three months ended June
30, 2006 from 5.9% for the three months ended June 30, 2005, primarily due
to the increase in oil and gas sales.
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2005.
Six Months Ended June 30,
---------------------------
2006 2005
---------- ----------
Oil and gas sales $4,008,688 $3,733,841
Oil and gas production expenses $ 689,266 $ 565,142
Barrels produced 26,317 27,720
Mcf produced 393,633 421,382
Average price/Bbl $ 59.52 $ 46.66
Average price/Mcf $ 6.20 $ 5.79
As shown in the table above, total oil and gas sales increased $275,000
(7.4%) for the six months ended June 30, 2006 as compared to the six
months ended June 30, 2005. Of this increase $338,000 and $163,000 were
related to increases in the average prices of oil and gas sold. These
increases were partially offset by decreases of $65,000 and $161,000
related to decreases in volumes of oil and gas sold.
Volumes of oil and gas sold decreased 1,403 barrels and 27,749 Mcf for the
six months ended June 30, 2006 as compared to the six months ended June
30, 2005. The decreases in volumes of oil and gas sold were primarily due
to (i) positive prior period volume adjustments made by the operators on
several wells during the six months ended June 30, 2005 and (ii) normal
declines in production. These decreases were partially offset by a
negative prior period volume adjustment made by the operator on another
significant well during the six months ended June 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $124,000 (22.0%) for the six months ended June
30, 2006 as compared to the six months ended June 30, 2005. This increase
was primarily due to (i) workover expenses incurred on several wells
during the six months ended June 30, 2006, (ii) the receipt of ad valorem
tax credits on one significant well during the six months ended June 30,
2005, and (iii) an increase in production taxes associated with the
increase in oil and gas sales. These increases were partially offset by
(i) a negative prior period lease operating expense adjustment made by the
operator on one significant well during the six months ended June 30,
2006, (ii) workover expenses incurred on several other wells during the
six months ended June 30, 2005, and (iii) a
-73-
negative prior period production tax adjustment made by the operator on
another significant well during the six months ended June 30, 2006. As a
percentage of oil and gas sales, these expenses increased to 17.2% for the
six months ended June 30, 2006 from 15.1% for the six months ended June
30, 2005, primarily due to the dollar increase in production expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties increased $9,000 (6.7%) for the six months ended June 30, 2006
as compared to the six months ended June 30, 2005. Of this increase (i)
$8,000 was due to the depletion of additional capitalized costs resulting
from the upward revision in the estimate of the asset retirement
obligations during late 2005 and (ii) $5,000 was due to accretion of these
additional asset retirement obligations. This increase was also the result
of the abandonment of one significant well during the six months ended
June 30, 2006 due to the lack of remaining reserves. The increases in DD&A
were partially offset by (i) one significant well being fully depleted
during the six months ended June 30, 2005 due to the lack of remaining
reserves, (ii) the decreases in volumes of oil and gas sold, and (iii)
upward revisions in the estimates of remaining oil and gas reserves on
another significant well since June 30, 2005. As a percentage of oil and
gas sales, this expense remained constant at 3.5% for the six months ended
June 30, 2006 and 2005.
General and administrative expenses increased $3,000 (1.2%) for the six
months ended June 30, 2006 as compared to the six months ended June 30,
2005. As a percentage of oil and gas sales, these expenses decreased to
5.8% for the six months ended June 30, 2006 from 6.1% for the six months
ended June 30, 2005.
Cumulative cash distributions to the Limited Partners through June 30,
2006 were $59,901,371 or 160.94% of Limited Partners' capital
contributions.
II-H PARTNERSHIP
THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED JUNE
30, 2005.
Three Months Ended June 30,
---------------------------
2006 2005
-------- --------
Oil and gas sales $468,021 $411,152
Oil and gas production expenses $ 73,284 $ 77,270
Barrels produced 3,053 3,074
Mcf produced 46,733 47,242
Average price/Bbl $ 61.72 $ 47.92
Average price/Mcf $ 5.98 $ 5.59
As shown in the table above, total oil and gas sales increased $57,000
(13.8%) for the three months ended June 30, 2006 as compared to the three
months ended June 30, 2005. Of this increase $42,000 and $19,000 were
related to increases in the average prices of oil and gas sold.
-74-
These increases were partially offset by decreases of $1,000 and $3,000
related to decreases in volumes of oil and gas sold.
Volumes of oil and gas sold decreased 21 barrels and 509 Mcf for the three
months ended June 30, 2006 as compared to the three months ended June 30,
2005. The decreases in volumes of oil and gas sold were primarily due to
(i) positive prior period volume adjustments made by the operators on
several wells during the three months ended June 30, 2005 and (ii) normal
declines in production. These decreases were partially offset by a
negative prior period volume adjustment made by the operator on another
significant well during the three months ended June 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $4,000 (5.2%) for the three months ended June
30, 2006 as compared to the three months ended June 30, 2005. This
decrease was primarily due to (i) a negative prior period lease operating
expense adjustment made by the operator on one significant well during the
three months ended June 30, 2006, (ii) workover expenses incurred on
several wells during the three months ended June 30, 2005, and (iii) a
negative prior period production tax adjustment made by the operator on
another significant well during the three months ended June 30, 2006.
These decreases were partially offset by (i) workover expenses incurred on
several other wells during the three months ended June 30, 2006 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 15.7% for the three months ended June 30, 2006 from 18.8% for the three
months ended June 30, 2005, primarily due to the increase in oil and gas
sales.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties decreased $2,000 (10.1%) for the three months ended June 30,
2006 as compared to the three months ended June 30, 2005. This decrease
was primarily the result of (i) one significant well being fully depleted
during the three months ended June 30, 2005 due to the lack of remaining
reserves, (ii) upward revisions in the estimates of remaining oil and gas
reserves on another significant well since June 30, 2005, and (iii) the
decreases in volumes of oil and gas sold. The decreases in DD&A were
partially offset by increases of (i) $1,000 due to the depletion of
additional capitalized costs resulting from the upward revision in the
estimate of the asset retirement obligations during late 2005 and (ii)
$1,000 due to accretion of these additional asset retirement obligations.
As a percentage of oil and gas sales, this expense decreased to 2.9% for
the three months ended June 30, 2006 from 3.7% for the three months ended
June 30, 2005. This percentage decrease was primarily due to (i) the
increases in the average prices of oil and gas sold and (ii) the dollar
decrease in DD&A.
General and administrative expenses remained relatively constant for the
three months ended June 30, 2006 and 2005. As a percentage of oil and gas
sales, these expenses decreased to 5.6% for the three months ended June
30, 2006 from 6.4% for the three months ended June 30, 2005, primarily due
to the increase in oil and gas sales.
-75-
SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO THE SIX MONTHS ENDED JUNE 30,
2005.
Six Months Ended June 30,
---------------------------
2006 2005
-------- --------
Oil and gas sales $946,365 $884,923
Oil and gas production expenses $165,603 $134,234
Barrels produced 6,033 6,396
Mcf produced 93,571 100,958
Average price/Bbl $ 59.50 $ 46.66
Average price/Mcf $ 6.28 $ 5.81
As shown in the table above, total oil and gas sales increased $61,000
(6.9%) for the six months ended June 30, 2006 as compared to the six
months ended June 30, 2005. Of this increase $77,000 and $44,000 were
related to increases in the average prices of oil and gas sold. These
increases were partially offset by decreases of $17,000 and $43,000
related to decreases in volumes of oil and gas sold.
Volumes of oil and gas sold decreased 363 barrels and 7,387 Mcf for the
six months ended June 30, 2006 as compared to the six months ended June
30, 2005. The decreases in volumes of oil and gas sold were primarily due
to (i) positive prior period volume adjustments made by the operators on
several wells during the six months ended June 30, 2005 and (ii) normal
declines in production. These decreases were partially offset by a
negative prior period volume adjustment made by the operator on another
significant well during the six months ended June 30, 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $31,000 (23.4%) for the six months ended June
30, 2006 as compared to the six months ended June 30, 2005. This increase
was primarily due to (i) workover expenses incurred on several wells
during the six months ended June 30, 2006, (ii) the receipt of ad valorem
tax credits on one significant well during the six months ended June 30,
2005, and (iii) an increase in production taxes associated with the
increase in oil and gas sales. These increases were partially offset by
(i) a negative prior period lease operating expense adjustment made by the
operator on one significant well during the six months ended June 30,
2006, (ii) workover expenses incurred on several other wells during the
six months ended June 30, 2005, and (iii) a negative prior period
production tax adjustment made by the operator on another significant well
during the six months ended June 30, 2006. As a percentage of oil and gas
sales, these expenses increased to 17.5% for the six months ended June 30,
2006 from 15.2% for the six months ended June 30, 2005, primarily due to
the dollar increase in production expenses.
Depreciation, depletion, and amortization ("DD&A") of oil and gas
properties increased $2,000 (6.3%) for the six months ended June 30, 2006
as compared to the six months ended June 30, 2005. Of this increase (i)
$2,000 was due to the depletion of additional capitalized costs resulting
from the upward revision in the estimate of the asset
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retirement obligations during late 2005 and (ii) $1,000 was due to
accretion of these additional asset retirement obligations. This increase
was also due to the abandonment of one significant well during the six
months ended June 30, 2006 due to the lack of remaining reserves. The
increases in DD&A were partially offset by (i) one significant well being
fully depleted during the six months ended June 30, 2005 due to the lack
of remaining reserves, (ii) the decreases in volumes of oil and gas sold,
and (iii) upward revisions in the estimates of remaining oil and gas
reserves on another significant well since June 30, 2005. As a percentage
of oil and gas sales, this expense remained constant at 3.5% for the six
months ended June 30, 2006 and 2005.
General and administrative expenses increased $2,000 (2.7%) for the six
months ended June 30, 2006 as compared to the six months ended June 30,
2005. As a percentage of oil and gas sales, these expenses decreased to
8.0% for the six months ended June 30, 2006 from 8.3% for the six months
ended June 30, 2005.
Cumulative cash distributions to the Limited Partners through June 30,
2006 were $13,918,364 or 151.76% 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.
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.
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32.2 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the 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.
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: August 14, 2006 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 14, 2006 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.
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.
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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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