UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Act of 1934
Date of Report (Date of earliest event reported): October 11, 2006
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
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(Exact name of Registrant as specified in its Charter)
II-E: 0-17320 II-E: 73-1324751
II-F: 0-17799 II-F: 73-1330632
II-G: 0-17802 II-G: 73-1336572
Oklahoma II-H: 0-18305 II-H: 73-1342476
- ---------------- ---------------- -------------------
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
Two West Second Street, Tulsa, Oklahoma 74103
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (918) 583-1791
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the Registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under
the Exchange Act (17 CFR 240.13e-4(c))
-1-
ITEM 2.01. COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS
On October 11, 2006 the Geodyne Energy Income Limited Partnership II-E,
Geodyne Energy Income Limited Partnership II-F, Geodyne Energy Income Limited
Partnership II-G and Geodyne Energy Income Limited Partnership II-H (the
"Partnerships") sold their interests in a number of producing properties to
independent third parties at The Oil and Gas Clearinghouse auction in Houston,
Texas for net proceeds as described below:
Reserves
Number Sold as Reserve
of Location Number of 12/31/05 Value
Wells of of Oil Gas Sold Net
P/ship Sold Properties Purchasers (Bbls) (Mcf) 12/31/05 Proceeds
- ------ -------- ----------- ---------- ------- ------- ---------- ----------
II-E 42 Lousiana 15 36,664 29,281 $ 875,159 $1,852,520
and Texas
II-F 39 Texas 14 72,531 71,400 1,888,563 4,195,874
II-G 39 Texas 14 151,202 149,219 3,941,619 8,760,666
II-H 39 Texas 14 35,090 34,533 913,561 2,029,603
The transactions are subject to standard auction closing conditions.
The proceeds from the sales, less any additional transaction costs, will
be included in the November 15, 2006 cash distributions paid by the
Partnerships.
This sale was part of the General Partner's plan (previously disclosed in
the Partnerships' December 31, 2005 Annual Report on Form 10-K) to sell an
increased amount of the Partnerships' properties as a result of the generally
favorable current environment for oil and gas dispositions. It is anticipated
that additional properties will be sold at auction in December 2006 and February
2007.
The sale of these properties will impact the continuing future operations
of the Partnerships. Future production, costs and cash flow will be reduced as
properties are sold. As of the date of this Current Report on Form 8-K,
management cannot predict the extent of such reduction.
-2-
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(B) Pro forma financial information.
(1) Geodyne Energy Income Limited Partnership II-E
(a) Pro Forma Balance Sheet as of June 30, 2006.
(b) Pro Forma Statement of Operations for the six months ended June
30, 2006.
(c) Pro Forma Statement of Operations for the year ended December 31,
2005.
(d) Pro Forma Statement of Operations for the year ended December 31,
2004.
(e) Pro Forma Statement of Operations for the year ended December 31,
2003.
(2) Geodyne Energy Income Limited Partnership II-F
(a) Pro Forma Balance Sheet as of June 30, 2006.
(b) Pro Forma Statement of Operations for the six months ended June
30, 2006.
(c) Pro Forma Statement of Operations for the year ended December 31,
2005.
(d) Pro Forma Statement of Operations for the year ended December 31,
2004.
(e) Pro Forma Statement of Operations for the year ended December 31,
2003.
(3) Geodyne Energy Income Limited Partnership II-G
(a) Pro Forma Balance Sheet as of June 30, 2006.
(b) Pro Forma Statement of Operations for the six months ended June
30, 2006.
(c) Pro Forma Statement of Operations for the year ended December 31,
2005.
(d) Pro Forma Statement of Operations for the year ended December 31,
2004.
(e) Pro Forma Statement of Operations for the year ended December 31,
2003.
(4) Geodyne Energy Income Limited Partnership II-H
(a) Pro Forma Balance Sheet as of June 30, 2006.
(b) Pro Forma Statement of Operations for the six months ended June
30, 2006.
(c) Pro Forma Statement of Operations for the year ended December 31,
2005.
(d) Pro Forma Statement of Operations for the year ended December 31,
2004.
(e) Pro Forma Statement of Operations for the year ended December 31,
2003.
-3-
UNAUDITED PRO FORMA FINANCIAL DATA
- ----------------------------------
The following unaudited pro forma balance sheet as of June 30, 2006, unaudited
pro forma statements of operations for the six months ended June 30, 2006, and
the unaudited pro forma statements of operations for the years ended December
31, 2005, 2004 and 2003 give effect to the sale of producing properties at an
auction as described in ITEM 2. The unaudited pro forma balance sheet is
presented as if the divestiture had occurred on June 30, 2006. The unaudited pro
forma statements of operations are presented as if the divestiture had occurred
on January 1, 2003. The unaudited pro forma financial data is based on
assumptions and includes adjustments as explained in the notes to the unaudited
pro forma financial statements. The actual recording of the transactions could
differ.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
UNAUDITED PRO FORMA BALANCE SHEET
JUNE 30, 2006
ASSETS
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2a)
---------- ----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 908,070 $1,852,520 $2,760,590
Accounts receivable:
Oil and gas sales 498,429 ( 66,288) 432,141
Assets of discontinued
operations - 66,288 66,288
---------- ---------- ----------
Total current assets $1,406,499 $1,852,520 $3,259,019
NET OIL AND GAS PROPERTIES,
utilizing the successful
efforts method 1,155,275 ( 134,104) 1,021,171
DEFERRED CHARGE 208,171 - 208,171
---------- ---------- ----------
$2,769,945 $1,718,416 $4,488,361
========== ========== ==========
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
UNAUDITED PRO FORMA BALANCE SHEET
JUNE 30, 2006
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2a)
---------- ------------ -----------
CURRENT LIABILITIES:
Accounts payable $ 120,288 ($ 16,831) $ 103,457
Gas imbalance payable 43,424 - 43,424
Asset retirement obligation -
current 6,379 - 6,379
Liabilities of discontinued
operations - 16,831 16,831
---------- ---------- ----------
Total current liabilities $ 170,091 $ - $ 170,091
LONG-TERM LIABILITIES:
Accrued liability $ 69,372 $ - $ 69,372
Asset retirement
obligation 236,512 ( 68,518) 167,994
---------- ---------- ----------
Total long-term liabilities $ 305,884 ($ 68,518) $ 237,366
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 120,942) $ 178,693 $ 57,751
Limited Partners, issued
and outstanding,
228,821 units 2,414,912 1,608,241 4,023,153
---------- ---------- ----------
Total Partners' capital $2,293,970 $1,786,934 $4,080,904
---------- ---------- ----------
$2,769,945 $1,718,416 $4,488,361
========== ========== ==========
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $1,856,310 ($259,526) $1,596,784
Interest income 18,797 - 18,797
--------- -------- ----------
$1,875,107 ($259,526) $1,615,581
COSTS AND EXPENSES:
Lease operating $ 305,068 ($ 55,104) $ 249,964
Production tax 127,418 ( 22,326) 105,092
Depreciation, depletion,
and amortization of oil
and gas properties 76,734 ( 25,289) 51,445
General and administrative 152,225 - 152,225
---------- -------- ----------
$ 661,445 ($102,719) $ 558,726
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $1,213,662 ($156,807) $1,056,855
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 126,393 ($ 17,957) $ 108,436
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $1,087,269 ($138,850) $ 948,419
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 4.75 ($ .61) $ 4.14
========== ======== ==========
UNITS OUTSTANDING 228,821 228,821 228,821
========== ======== ==========
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2005
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $3,949,949 ($429,008) $3,520,941
Interest income 13,967 - 13,967
Gain on sale of oil and
gas properties 193 - 193
Other income 5,177 - 5,177
---------- -------- ----------
$3,969,286 ($429,008) $3,540,278
EXPENSES:
Lease operating $ 503,196 ($ 88,371) $ 414,825
Production tax 281,131 ( 41,915) 239,216
Depreciation, depletion,
and amortization of oil
and gas properties 204,315 ( 79,570) 124,745
General and administrative 281,418 - 281,418
---------- -------- ----------
$1,270,060 ($209,856) $1,060,204
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $2,699,226 ($219,152) $2,480,074
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 286,914 ($ 29,077) $ 257,837
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $2,412,312 ($190,075) $2,222,237
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 10.54 ($ .83) $ 9.71
========== ======== ==========
UNITS OUTSTANDING 228,821 228,821 228,821
========== ======== ==========
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $2,788,915 ($293,747) $2,495,168
Interest income 4,783 - 4,783
Gain on sale of oil and
gas properties 9,419 - 9,419
Other income 1,920 - 1,920
---------- -------- ----------
$2,805,037 ($293,747) $2,511,290
EXPENSES:
Lease operating $ 494,357 ($ 45,785) $ 448,572
Production tax 189,382 ( 14,270) 175,112
Depreciation, depletion,
and amortization of oil
and gas properties 201,433 ( 112,054) 89,379
General and administrative 276,031 - 276,031
---------- -------- ----------
$1,161,203 ($172,109) $ 989,094
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $1,643,834 ($121,638) $1,522,196
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 181,054 ($ 22,249) $ 158,805
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $1,462,780 ($ 99,389) $1,363,391
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 6.39 ($ .43) $ 5.96
========== ======== ==========
UNITS OUTSTANDING 228,821 228,821 228,821
========== ======== ==========
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $2,747,176 ($258,185) $2,488,991
Interest income 3,318 - 3,318
Gain on sale of oil and
gas properties 21,407 - 21,407
---------- -------- ----------
$2,771,901 ($258,185) $2,513,716
EXPENSES:
Lease operating $ 470,669 ($ 46,937) $ 423,732
Production tax 194,259 ( 28,466) 165,793
Depreciation, depletion,
and amortization of oil
and gas properties 137,213 ( 25,530) 111,683
General and administrative 278,935 - 278,935
---------- -------- ----------
$1,081,076 ($100,933) $ 980,143
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $1,690,825 ($157,252) $1,533,573
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 181,100 ($ 18,023) $ 163,077
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $1,509,725 ($139,229) $1,370,496
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 6.60 ($ 0.61) $ 5.99
========== ======== ==========
UNITS OUTSTANDING 228,821 228,821 228,821
========== ======== ==========
-10-
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The Unaudited Pro Forma Balance Sheet as of June 30, 2006 is presented as if the
divestiture had occurred on June 30, 2006. The Unaudited Pro Forma Statements of
Operations for the years ended December 31, 2005, 2004 and 2003 and for the six
months ended June 30, 2006 are presented as if the divestiture had occurred on
January 1, 2003.
The Partnership follows the successful efforts method of accounting under which
proceeds from the sale of oil and gas properties are accounted for as gains or
losses net of their carrying costs and transaction expenses.
The Pro Forma Statements of Operations for the years ended December 31, 2005,
2004 and 2003, and for the six months ended June 30, 2006, do not reflect the
estimated gain on the divestiture. Assuming the sales closed on June 30, 2006,
an estimated non-recurring gain of $1,786,934 would have been recognized.
NOTE 2 - PRO FORMA ADJUSTMENTS
- ------------------------------
(a) Reflects net sales proceeds of $1,852,520 for the II-E Partnership and the
reversal of the net oil and gas properties and the asset retirement
obligations associated with the properties sold. Additionally, the payable
and receivable accruals as of June 30, 2006 associated with the sold
properties were reclassified to Assets (or Liabilities) of discontinued
operations.
(b) Oil and gas sales, lease operating expenses, and production taxes are
adjusted to reflect the reversal of revenues and expenses attributable to
the sold properties. Depreciation, depletion, and amortization ("DD&A") is
adjusted for the reductions in DD&A and asset retirement obligation
accretion expenses attributable to the properties sold.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
UNAUDITED PRO FORMA BALANCE SHEET
JUNE 30, 2006
ASSETS
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2a)
---------- ----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 976,164 $4,195,874 $5,172,038
Accounts receivable:
Oil and gas sales 561,828 ( 79,632) 482,196
Assets of discontinued
operations - 79,632 79,632
---------- ---------- ----------
Total current assets $1,537,992 $4,195,874 $5,733,866
NET OIL AND GAS PROPERTIES,
utilizing the successful
efforts method 1,144,613 ( 160,413) 984,200
DEFERRED CHARGE 30,448 - 30,448
---------- ---------- ----------
$2,713,053 $4,035,461 $6,748,514
========== ========== ==========
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
UNAUDITED PRO FORMA BALANCE SHEET
JUNE 30, 2006
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2a)
---------- ----------- -----------
CURRENT LIABILITIES:
Accounts payable $ 119,365 ($ 4,250) $ 115,115
Gas imbalance payable 2,024 - 2,024
Asset retirement obligation -
current 1,444 - 1,444
Liabilities of discontinued
operations - 4,250 4,250
---------- ---------- ----------
Total current liabilities $ 122,833 $ - $ 122,833
LONG-TERM LIABILITIES:
Accrued liability $ 25,662 $ - $ 25,662
Asset retirement
obligation 201,203 ( 849) 200,354
---------- ---------- ----------
Total long-term liabilities $ 226,865 ($ 849) $ 226,016
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 69,190) $ 403,631 $ 334,441
Limited Partners, issued
and outstanding,
171,400 units 2,432,545 3,632,679 $6,065,224
---------- ---------- ----------
Total Partners' capital $2,363,355 $4,036,310 $6,399,665
---------- ---------- ----------
$2,713,053 $4,035,461 $6,748,514
========== ========== ==========
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $1,885,994 ($320,565) $1,565,429
Interest income 14,214 - 14,214
--------- -------- ----------
$1,900,208 ($320,565) $1,579,643
COSTS AND EXPENSES:
Lease operating $ 212,625 ($ 28,690) $ 183,935
Production tax 108,349 ( 18,313) 90,036
Depreciation, depletion,
and amortization of oil
and gas properties 62,926 ( 7,879) 55,047
General and administrative 119,641 - 119,641
---------- -------- ----------
$ 503,541 ($ 54,882) $ 448,659
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $1,396,667 ($265,683) $1,130,984
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 143,909 ($ 27,277) $ 116,632
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $1,252,758 ($238,406) $1,014,352
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 7.31 ($ 1.39) $ 5.92
========== ======== ==========
UNITS OUTSTANDING 171,400 171,400 171,400
========== ======== ==========
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2005
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $3,860,385 ($456,188) $3,404,197
Interest income 14,042 - 14,042
Gain on sale of oil and
gas properties 471 - 471
---------- -------- ----------
$3,874,898 ($456,188) $3,418,710
EXPENSES:
Lease operating $ 420,455 ($ 25,126) $ 395,329
Production tax 239,774 ( 21,827) 217,947
Depreciation, depletion,
and amortization of oil
and gas properties 135,289 ( 17,411) 117,878
General and administrative 217,348 - 217,348
---------- -------- ----------
$1,012,866 ($ 64,364) $ 948,502
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $2,862,032 ($391,824) $2,470,208
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 296,975 ($ 40,749) $ 256,226
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $2,565,057 ($351,075) $2,213,982
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 14.97 ($ 2.05) $ 12.92
========== ======== ==========
UNITS OUTSTANDING 171,400 171,400 171,400
========== ======== ==========
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $2,876,134 ($289,171) $2,586,963
Interest income 4,458 - 4,458
Gain on sale of oil and
gas properties 24,162 - 24,162
Other income 4,694 - 4,694
---------- -------- ----------
$2,909,448 ($289,171) $2,620,277
EXPENSES:
Lease operating $ 425,498 ($ 8,076) $ 417,422
Production tax 183,457 ( 13,246) 170,211
Depreciation, depletion,
and amortization of oil
and gas properties 216,694 ( 22,199) 194,495
General and administrative 211,681 - 211,681
---------- -------- ----------
$1,037,330 ($ 43,521) $ 933,809
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $1,872,118 ($245,650) $1,626,468
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 203,874 ($ 26,563) $ 177,311
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $1,668,244 ($219,087) $1,449,157
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 9.73 ($ 1.28) $ 8.45
========== ======== ==========
UNITS OUTSTANDING 171,400 171,400 171,400
========== ======== ==========
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
Pro-Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $2,639,281 ($234,696) $2,404,585
Interest income 3,228 - 3,228
Gain on sale of oil and
gas properties 58,644 - 58,644
---------- -------- ----------
$2,701,153 ($234,696) $2,466,457
EXPENSES:
Lease operating $ 407,571 ($ 33,320) $ 374,251
Production tax 165,636 ( 9,670) 155,966
Depreciation, depletion,
and amortization of oil
and gas properties 135,340 ( 19,804) 115,536
General and administrative 213,797 - 213,797
---------- -------- ----------
$ 922,344 ($ 62,794) $ 859,550
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $1,778,809 ($171,902) $1,606,907
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 189,739 ($ 18,973) $ 170,766
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $1,589,070 (152,929) $1,436,141
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 9.27 ($ .89) $ 8.38
========== ======== ==========
UNITS OUTSTANDING 171,400 171,400 171,400
========== ======== ==========
-17-
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The Unaudited Pro Forma Balance Sheet as of June 30, 2006 is presented as if the
divestiture had occurred on June 30, 2006. The Unaudited Pro Forma Statements of
Operations for the years ended December 31, 2005, 2004 and 2003 and for the six
months ended June 30, 2006 are presented as if the divestiture had occurred on
January 1, 2003.
The Partnership follows the successful efforts method of accounting under which
proceeds from the sale of oil and gas properties are accounted for as gains or
losses net of their carrying costs and transaction expenses.
The Pro Forma Statements of Operations for the years ended December 31, 2005,
2004 and 2003, and for the six months ended June 30, 2006, do not reflect the
estimated gain on the divestiture. Assuming the sales closed on June 30, 2006,
an estimated non-recurring gain of $4,036,310 would have been recognized.
NOTE 2 - PRO FORMA ADJUSTMENTS
- ------------------------------
(a) Reflects net sales proceeds of $4,195,874 for the II-F Partnership and the
reversal of the net oil and gas properties and the asset retirement
obligations associated with the properties sold. Additionally, the payable
and receivable accruals as of June 30, 2006 associated with the sold
properties were reclassified to Assets (or Liabilities) of discontinued
operations.
(b) Oil and gas sales, lease operating expenses, and production taxes are
adjusted to reflect the reversal of revenues and expenses attributable to
the sold properties. Depreciation, depletion, and amortization ("DD&A") is
adjusted for the reductions in DD&A and asset retirement obligation
accretion expenses attributable to the properties sold.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
UNAUDITED PRO FORMA BALANCE SHEET
JUNE 30, 2006
ASSETS
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2a)
---------- ----------- ------------
CURRENT ASSETS:
Cash and cash equivalents $2,078,720 $8,760,666 $10,839,386
Accounts receivable:
Oil and gas sales 1,205,164 168,381 1,373,545
Assets of discontinued
operations - ( 168,381) ( 168,381)
---------- ---------- -----------
Total current assets $3,283,884 $8,760,666 $12,044,550
NET OIL AND GAS PROPERTIES,
utilizing the successful
efforts method 2,455,758 ( 341,098) 2,114,660
DEFERRED CHARGE 65,048 - 65,048
---------- ---------- -----------
$5,804,690 $8,419,568 $14,224,258
========== ========== ===========
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
UNAUDITED PRO FORMA BALANCE SHEET
JUNE 30, 2006
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2a)
---------- ----------- -----------
CURRENT LIABILITIES:
Accounts payable $ 252,572 ($ 8,886) $ 243,686
Gas imbalance payable 10,572 - 10,572
Asset retirement obligation -
current 3,014 - 3,014
Liabilities of discontinued
operations - 8,886 8,886
---------- ---------- -----------
Total current liabilities $ 266,158 $ - $ 266,158
LONG-TERM LIABILITIES:
Accrued liability $ 45,042 $ - $ 45,042
Asset retirement
obligation 431,229 ( 1,774) 429,455
---------- ---------- -----------
Total long-term liabilities $ 476,271 ($ 1,774) $ 474,497
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 39,388) $ 842,134 $ 802,746
Limited Partners, issued
and outstanding,
372,189 units 5,101,649 7,579,208 12,680,857
---------- ---------- -----------
Total Partners' capital $5,062,261 $8,421,342 $13,483,603
---------- ---------- -----------
$5,804,690 $8,419,568 $14,224,258
========== ========== ===========
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $4,008,688 ($670,876) $3,337,812
Interest income 30,709 - 30,709
--------- --------- ----------
$4,039,397 ($670,876) $3,368,521
COSTS AND EXPENSES:
Lease operating $ 457,154 ($ 59,996) $ 397,158
Production tax 232,112 ( 38,311) 193,801
Depreciation, depletion,
and amortization of oil
and gas properties 139,061 ( 22,196) 116,865
General and administrative 230,596 - 230,596
---------- -------- ----------
$1,058,923 ($120,503) $ 938,420
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $2,980,474 ($550,373) $2,430,101
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 307,492 ($ 57,035) $ 250,457
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $2,672,982 ($493,338) $2,179,644
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 7.18 ($ 1.33) $ 5.85
========== ======== ==========
UNITS OUTSTANDING 372,189 372,189 372,189
========== ======== ==========
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2005
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $8,215,826 ($953,677) $7,262,149
Interest income 30,374 - 30,374
Gain on sale of oil and
gas properties 986 - 986
---------- -------- ----------
$8,247,186 ($953,677) $7,293,509
EXPENSES:
Lease operating $ 903,789 ($ 50,747) $ 853,042
Production tax 511,883 ( 45,786) 466,097
Depreciation, depletion,
and amortization of oil
and gas properties 291,333 ( 38,183) 253,150
General and administrative 437,316 - 437,316
---------- -------- ----------
$2,144,321 ($134,716) $2,009,605
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $6,102,865 ($818,961) $5,283,904
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 633,469 ($ 85,333) $ 548,136
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $5,469,396 ($733,628) $4,735,768
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 14.70 ($ 1.97) $ 12.73
========== ======== ==========
UNITS OUTSTANDING 372,189 372,189 372,189
========== ======== ==========
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $6,116,875 ($604,690) $5,512,185
Interest income 9,689 - 9,689
Gain on sale of oil and
gas properties 50,598 - 50,598
Other income 9,816 - 9,816
---------- -------- ----------
$6,186,978 ($604,690) $5,582,288
EXPENSES:
Lease operating $ 908,097 ($ 16,888) $ 891,209
Production tax 392,707 ( 29,378) 363,329
Depreciation, depletion,
and amortization of oil
and gas properties 472,405 ( 37,222) 435,183
General and administrative 432,673 - 432,673
---------- -------- ----------
$2,205,882 ($ 83,488) $2,122,394
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $3,981,096 ($521,202) $3,459,894
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 434,649 ($ 55,470) $ 379,179
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $3,546,447 ($465,732) $3,080,715
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 9.53 ($ 1.25) $ 8.28
========== ======== ==========
UNITS OUTSTANDING 372,189 372,189 372,189
========== ======== ==========
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $5,605,691 ($490,743) $5,114,948
Interest income 6,983 - 6,983
Gain on sale of oil and
gas properties 123,707 - 123,707
---------- -------- ----------
$5,736,381 ($490,743) $5,245,638
EXPENSES:
Lease operating $ 867,617 ($ 69,670) $ 797,947
Production tax 353,554 ( 20,004) 333,550
Depreciation, depletion,
and amortization of oil
and gas properties 290,209 ( 41,857) 248,352
General and administrative 437,597 - 437,597
---------- -------- ----------
$1,948,977 ($131,531) $1,817,446
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $3,787,404 ($359,212) $3,428,192
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 404,161 ($ 39,688) $ 364,473
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $3,383,243 ($319,524) $3,063,719
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 9.09 ($ 0.86) $ 8.23
========== ======== ==========
UNITS OUTSTANDING 372,189 372,189 372,189
========== ======== ==========
-24-
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The Unaudited Pro Forma Balance Sheet as of June 30, 2006 is presented as if the
divestiture had occurred on June 30, 2006. The Unaudited Pro Forma Statements of
Operations for the years ended December 31, 2005, 2004 and 2003 and for the six
months ended June 30, 2006 are presented as if the divestiture had occurred on
January 1, 2003.
The Partnership follows the successful efforts method of accounting under which
proceeds from the sale of oil and gas properties are accounted for as gains or
losses net of their carrying costs and transaction expenses.
The Pro Forma Statements of Operations for the years ended December 31, 2005,
2004 and 2003, and for the six months ended June 30, 2006, do not reflect the
estimated gain on the divestiture. Assuming the sales closed on June 30, 2006,
an estimated non-recurring gain of $8,421,342 would have been recognized.
NOTE 2 - PRO FORMA ADJUSTMENTS
- ------------------------------
(a) Reflects net sales proceeds of $8,760,666 for the II-G Partnership and the
reversal of the net oil and gas properties and the asset retirement
obligations associated with the properties sold. Additionally, the payable
and receivable accruals as of June 30, 2006 associated with the sold
properties were reclassified to Assets (or Liabilities) of discontinued
operations.
(b) Oil and gas sales, lease operating expenses, and production taxes are
adjusted to reflect the reversal of revenues and expenses attributable to
the sold properties. Depreciation, depletion, and amortization ("DD&A") is
adjusted for the reductions in DD&A and asset retirement obligation
accretion expenses attributable to the properties sold.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
UNAUDITED PRO FORMA BALANCE SHEET
JUNE 30, 2006
ASSETS
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2a)
---------- ----------- -----------
CURRENT ASSETS:
Cash and cash equivalents $ 489,875 $2,029,603 $2,519,478
Accounts receivable:
Oil and gas sales 275,372 ( 37,651) 237,721
Assets of discontinued
operations - 37,651 37,651
---------- ---------- ----------
Total current assets $ 765,247 $2,029,603 $2,794,850
NET OIL AND GAS PROPERTIES,
utilizing the successful
efforts method 582,794 ( 78,103) 504,691
DEFERRED CHARGE 16,716 - 16,716
---------- ---------- ----------
$1,364,757 $1,951,500 $3,316,257
========== ========== ==========
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
UNAUDITED PRO FORMA BALANCE SHEET
JUNE 30, 2006
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2a)
---------- ----------- -----------
CURRENT LIABILITIES:
Accounts payable $ 60,039 ($ 2,055) $ 57,984
Asset retirement obligation -
current 697 - 697
Liabilities of discontinued
operations - 2,055 2,055
---------- ---------- ----------
Total current liabilities $ 60,736 $ - $ 60,736
LONG-TERM LIABILITIES:
Accrued liability $ 14,524 $ - $ 14,524
Asset retirement
obligation 105,202 ( 410) 104,792
---------- ---------- ----------
Total long-term liabilities $ 119,726 ($ 410) $ 119,316
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 40,902) $ 195,191 $ 154,289
Limited Partners, issued
and outstanding,
91,711 units 1,225,197 1,756,719 2,981,916
---------- ---------- ----------
Total Partners' capital $1,184,295 $1,951,910 $3,136,205
---------- ---------- ----------
$1,364,757 $1,951,500 $3,316,257
========== ========== ==========
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2006
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $ 946,365 ($154,466) $791,899
Interest income 7,016 - 7,016
---------- -------- --------
$ 953,381 ($154,466) $798,915
COSTS AND EXPENSES:
Lease operating $ 110,086 ($ 13,877) $ 96,209
Production tax 55,517 ( 8,828) 46,689
Depreciation, depletion,
and amortization of oil
and gas properties 33,042 ( 5,521) 27,521
General and administrative 75,597 - 75,597
---------- -------- --------
$ 274,242 ($ 28,226) $246,016
---------- -------- --------
INCOME FROM CONTINUING
OPERATIONS $ 679,139 ($126,240) $552,899
========== ======== ========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 70,186 ($ 13,121) $ 57,065
========== ======== ========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $ 608,953 ($113,119) $495,834
========== ======== ========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 6.64 ($ 1.23) $ 5.41
========== ======== ========
UNITS OUTSTANDING 91,711 91,711 91,711
========== ======== ========
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2005
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $1,948,662 ($220,780) $1,727,882
Interest income 6,886 - 6,886
Gain on sale of oil and
gas properties 229 - 229
---------- -------- ----------
$1,955,777 ($220,780) $1,734,997
EXPENSES:
Lease operating $ 215,752 ($ 11,800) $ 203,952
Production tax 122,857 ( 10,547) 112,310
Depreciation, depletion,
and amortization of oil
and gas properties 69,028 ( 8,856) 60,172
General and administrative 130,034 - 130,034
---------- -------- ----------
$ 537,671 ($ 31,203) $ 506,468
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $1,418,106 ($189,577) $1,228,529
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 147,335 ($ 19,755) $ 127,580
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $1,270,771 ($169,822) $1,100,949
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 13.86 ($ 1.85) $ 12.01
========== ======== ==========
UNITS OUTSTANDING 91,711 91,711 91,711
========== ======== ==========
-29-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $1,460,050 ($139,783) $1,320,267
Interest income 2,181 - 2,181
Gain on sale of oil and
gas properties 11,749 - 11,749
Other income 2,270 - 2,270
---------- -------- ----------
$1,476,250 ($139,783) $1,336,467
EXPENSES:
Lease operating $ 219,811 ($ 3,907) $ 215,904
Production tax 94,648 ( 6,401) 88,247
Depreciation, depletion,
and amortization of oil
and gas properties 113,970 ( 7,817) 106,153
General and administrative 123,960 - 123,960
---------- -------- ----------
$ 552,389 ($ 18,125) $ 534,264
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $ 923,861 ($121,658) $ 802,203
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 101,267 ($ 12,869) $ 88,398
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $ 822,594 ($108,789) $ 713,805
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 8.97 ($ 1.19) $ 7.78
========== ======== ==========
UNITS OUTSTANDING 91,711 91,711 91,711
========== ======== ==========
-30-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2003
Pro Forma
Adjustments
October
Historical Auction Pro Forma
(Note 2b)
---------- ----------- ----------
REVENUES:
Oil and gas sales $1,335,792 ($113,436) $1,222,356
Interest income 1,545 - 1,545
Gain on sale of oil and
gas properties 29,085 - 29,085
---------- -------- ----------
$1,366,422 ($113,436) $1,252,986
EXPENSES:
Lease operating $ 210,552 ($ 16,115) $ 194,437
Production tax 84,803 ( 4,672) 80,131
Depreciation, depletion,
and amortization of oil
and gas properties 68,778 ( 9,585) 59,193
General and administrative 124,953 - 124,953
---------- -------- ----------
$ 489,086 ($ 30,372) $ 458,714
---------- -------- ----------
INCOME FROM CONTINUING
OPERATIONS $ 877,336 ($ 83,064) $ 794,272
========== ======== ==========
GENERAL PARTNER - NET
INCOME FROM CONTINUING
OPERATIONS $ 93,769 ($ 9,169) $ 84,600
========== ======== ==========
LIMITED PARTNERS - NET
INCOME FROM CONTINUING
OPERATIONS $ 783,567 ($ 73,895) $ 709,672
========== ======== ==========
NET INCOME FROM CONTINUING
OPERATIONS per Unit $ 8.54 ($ .81) $ 7.73
========== ======== ==========
UNITS OUTSTANDING 91,711 91,711 91,711
========== ======== ==========
-31-
NOTE 1 - BASIS OF PRESENTATION
- ------------------------------
The Unaudited Pro Forma Balance Sheet as of June 30, 2006 is presented as if the
divestiture had occurred on June 30, 2006. The Unaudited Pro Forma Statements of
Operations for the years ended December 31, 2005, 2004 and 2003 and for the six
months ended June 30, 2006 are presented as if the divestiture had occurred on
January 1, 2003.
The Partnership follows the successful efforts method of accounting under which
proceeds from the sale of oil and gas properties are accounted for as gains or
losses net of their carrying costs and transaction expenses.
The Pro Forma Statements of Operations for the years ended December 31, 2005,
2004 and 2003, and for the six months ended June 30, 2006, do not reflect the
estimated gain on the divestiture. Assuming the sales closed on June 30, 2006,
an estimated non-recurring gain of $1,951,910 would have been recognized.
NOTE 2 - PRO FORMA ADJUSTMENTS
- ------------------------------
(a) Reflects net sales proceeds of $2,029,603 for the II-H Partnership and the
reversal of the net oil and gas properties and the asset retirement
obligations associated with the properties sold. Additionally, the payable
and receivable accruals as of June 30, 2006 associated with the sold
properties were reclassified to Assets (or Liabilities) of discontinued
operations.
(b) Oil and gas sales, lease operating expenses, and production taxes are
adjusted to reflect the reversal of revenues and expenses attributable to
the sold properties. Depreciation, depletion, and amortization ("DD&A") is
adjusted for the reductions in DD&A and asset retirement obligation
accretion expenses attributable to the properties sold.
-32-
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 hereunto duly authorized.
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
By: GEODYNE RESOURCES, INC.
General Partner
//s// Dennis R. Neill
-----------------------------
Dennis R. Neill
President
DATE: October 17, 2006
-33-