FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2007
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 Charter)
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 No.)
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
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENT OF NET ASSETS OF PARTNERSHIP IN LIQUIDATION
(Unaudited)
JUNE 30,
2007
-----------
NET ASSETS OF PARTNERSHIP IN LIQUIDATION,
at fair value $26,955,995
===========
PARTNERS' CAPITAL:
General Partner $ 2,458,152
Limited Partners, issued and
outstanding, 484,283 units 24,497,843
-----------
Total Partners' capital $26,955,995
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENT OF CHANGES IN NET ASSETS OF PARTNERSIP
IN LIQUIDATION
(Unaudited)
PERIOD FROM
FEBRUARY 5,
TO JUNE 30,
2007
-------------
Total Partners' capital at February 4, 2007 $ 4,740,439
Adjust assets to fair value, net of
estimated selling costs 21,116,112
Partners' distributions from February 5, 2007
to March 31, 2007 ( 1,418,470)
Revenues from February 5, 2007 to March 31, 2007 1,058,235
Operating expenses incurred from
February 5, 2007 to March 31, 2007 ( 402,624)
-----------
Net assets of partnership in liquidation
at March 31, 2007 $25,093,692
Change in fair value of assets, net of
estimated selling costs 1,652,242
Partners' distributions from April 1, 2007
to June 30, 2007 ( 778,715)
Revenues from April 1, 2007 to June 30, 2007 1,632,901
Operating expenses incurred from April 1, 2007
to June 30, 2007 ( 644,125)
-----------
Net assets of partnership in liquidation
at June 30, 2007 $26,955,995
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED BALANCE SHEET
(GOING CONCERN BASIS)
(Unaudited)
ASSETS
DECEMBER 31,
2006
------------
CURRENT ASSETS:
Cash and cash equivalents $1,537,147
Accounts receivable:
Oil and gas sales 962,804
Assets held for sale (Note 3) 658,156
----------
Total current assets $3,158,107
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,928,699
DEFERRED CHARGE 548,671
----------
$5,635,477
==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 376,866
Gas imbalance payable 95,852
Asset retirement obligation -
current (Note 1) 14,586
Assets retirement obligation -
assets held for sale 222,378
Accounts payable of assets held
for sale 114,978
----------
Total current liabilities $ 824,660
LONG-TERM LIABILITIES:
Accrued liability $ 149,173
Asset retirement obligation (Note 1) 655,276
----------
Total long-term liabilities $ 804,449
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 205,056)
Limited Partners, issued and
outstanding, 484,283 units 4,211,424
----------
Total Partners' capital $4,006,368
----------
$5,635,477
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
THREE MONTHS
ENDED
JUNE 30,
2006
------------
REVENUES:
Oil and gas sales $1,435,682
Interest income 15,304
----------
$1,450,986
COSTS AND EXPENSES:
Lease operating $ 302,615
Production tax 79,213
Depreciation, depletion, and
amortization of oil and gas
properties 47,220
General and administrative
(Note 2) 134,646
----------
$ 563,694
----------
INCOME FROM CONTINUING OPERATIONS $ 887,292
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 250,962
----------
NET INCOME $1,138,254
==========
GENERAL PARTNER:
Net income from continuing
operations $ 91,448
Net income from discontinued
operations 25,719
----------
NET INCOME $ 117,167
==========
-6-
LIMITED PARTNERS:
Net income from continuing
operations $ 795,844
Net income from discontinued
operations 225,243
----------
NET INCOME $1,021,087
==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 1.65
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 0.47
----------
NET INCOME PER UNIT $ 2.12
==========
UNITS OUTSTANDING 484,283
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ----------
REVENUES:
Oil and gas sales $387,154 $2,957,454
Interest income 4,168 31,658
-------- ----------
$391,322 $2,989,112
COSTS AND EXPENSES:
Lease operating $111,024 $ 643,769
Production tax 42,537 171,551
Depreciation, depletion, and
amortization of oil and gas
properties 15,448 104,625
General and administrative
(Note 2) 47,066 293,397
-------- ----------
$216,075 $1,213,342
-------- ----------
INCOME FROM CONTINUING OPERATIONS $175,247 $1,775,770
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 61,599 506,510
Gain on disposal of discontinued
operations (Note 3) 518,024 -
-------- ----------
NET INCOME $754,870 $2,282,280
======== ==========
GENERAL PARTNER:
Net income from continuing
operations $ 18,498 $ 183,827
Net income from discontinued
operations 58,039 52,000
-------- ----------
NET INCOME $ 76,537 $ 235,827
======== ==========
-8-
LIMITED PARTNERS:
Net income from continuing
operations $156,749 $1,591,943
Net income from discontinued
operations 521,584 454,510
-------- ----------
NET INCOME $678,333 $2,046,453
======== ==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 0.32 $ 3.29
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 1.08 0.94
-------- ----------
NET INCOME PER UNIT $ 1.40 $ 4.23
======== ==========
UNITS OUTSTANDING 484,283 484,283
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF CASH FLOWS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 754,870 $2,282,280
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 16,299 119,615
Gain on disposal of discontinued
operations ( 518,024) -
Settlement of asset retirement
obligation - ( 30,357)
Decrease in accounts receivable -
oil and gas sales 43,235 363,256
Decrease in deferred charge - 45,049
Decrease in accounts payable ( 74,662) ( 70,876)
Decrease in gas imbalance
payable - ( 2,205)
Increase in accrued liability - 11,898
---------- ----------
Net cash provided by operating
activities $ 221,718 $2,718,660
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 7,476) ($ 41,127)
---------- ----------
Net cash used by investing
activities ($ 7,476) ($ 41,127)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 20,799) ($3,044,177)
---------- ----------
Net cash used by financing
activities ($ 20,799) ($3,044,177)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 193,443 ($ 366,644)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,537,147 2,121,512
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,730,590 $1,754,868
========== ==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENT OF NET ASSETS OF PARTNERSHIP IN LIQUIDATION
(Unaudited)
JUNE 30,
2007
-----------
NET ASSETS OF PARTNERSHIP IN LIQUIDATION,
at fair value $20,387,236
===========
PARTNERS' CAPITAL:
General Partner $ 1,869,095
Limited Partners, issued and
outstanding, 361,719 units 18,518,141
-----------
Total Partners' capital $20,387,236
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENT OF CHANGES IN NET ASSETS OF PARTNERSHIP
IN LIQUIDATION
(Unaudited)
PERIOD FROM
FEBRUARY 5,
TO JUNE 30,
2007
-------------
Total Partners' capital at February 4, 2007 $ 3,398,666
Adjust assets to fair value, net of
estimated selling costs 16,220,849
Partners' distributions from February 5, 2007
to March 31, 2007 ( 1,117,299)
Revenues from February 5, 2007 to March 31, 2007 779,928
Operating expenses incurred from
February 5, 2007 to March 31, 2007 ( 332,517)
-----------
Net assets of partnership in liquidation
at March 31, 2007 $18,949,627
Change in fair value of assets, net of
estimated selling costs 1,256,155
Partners' distributions from April 1, 2007
to June 30, 2007 ( 483,660)
Revenues from April 1, 2007 to June 30, 2007 1,138,255
Operating expenses incurred from April 1, 2007
to June 30, 2007 ( 473,141)
-----------
Net assets of partnership in liquidation
at June 30, 2007 $20,387,236
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED BALANCE SHEET
(GOING CONCERN BASIS)
(Unaudited)
ASSETS
DECEMBER 31,
2006
------------
CURRENT ASSETS:
Cash and cash equivalents $1,068,383
Accounts receivable:
Oil and gas sales 782,744
Assets held for sale (Note 3) 212,715
----------
Total current assets $2,063,842
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,340,904
DEFERRED CHARGE 250,829
----------
$3,655,575
==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 310,958
Gas imbalance payable 25,724
Asset retirement obligation -
current (Note 1) 15,504
Assets retirement obligation -
assets held for sale 147,559
Accounts payable of assets held
for sale 86,399
----------
Total current liabilities $ 586,144
LONG-TERM LIABILITIES:
Accrued liability $ 83,970
Asset retirement obligation (Note 1) 238,460
----------
Total long-term liabilities $ 322,430
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 241,863)
Limited Partners, issued and
outstanding, 361,719 units 2,988,864
----------
Total Partners' capital $2,747,001
----------
$3,655,575
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
THREE MONTHS
ENDED
JUNE 30,
2006
------------
REVENUES:
Oil and gas sales $1,146,185
Interest income 10,972
----------
$1,157,157
COSTS AND EXPENSES:
Lease operating $ 211,112
Production tax 65,038
Depreciation, depletion, and
amortization of oil and gas
properties 30,314
General and administrative
(Note 2) 101,043
----------
$ 407,507
----------
INCOME FROM CONTINUING OPERATIONS $ 749,650
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 110,530
----------
NET INCOME $ 860,180
==========
GENERAL PARTNER:
Net income from continuing
operations $ 76,596
Net income from discontinued
operations 11,298
----------
NET INCOME $ 87,894
==========
-14-
LIMITED PARTNERS:
Net income from continuing
operations $ 673,054
Net income from discontinued
operations 99,232
----------
NET INCOME $ 772,286
==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 1.86
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 0.27
----------
NET INCOME PER UNIT $ 2.13
==========
UNITS OUTSTANDING 361,719
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ------------
REVENUES:
Oil and gas sales $308,203 $2,458,284
Interest income 2,833 23,091
-------- ----------
$311,036 $2,481,375
COSTS AND EXPENSES:
Lease operating $ 77,277 $ 486,797
Production tax 44,130 141,247
Depreciation, depletion, and
amortization of oil and gas
properties 9,971 65,484
General and administrative
(Note 2) 35,689 225,661
-------- ----------
$167,067 $ 919,189
-------- ----------
INCOME FROM CONTINUING OPERATIONS $143,969 $1,562,186
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 27,004 231,606
Gain on disposal of discontinued
operations (Note 3) 492,482 -
-------- ----------
NET INCOME $663,455 $1,793,792
======== ==========
GENERAL PARTNER:
Net income from continuing
operations $ 15,011 $ 159,803
Net income from discontinued
operations 52,000 23,681
-------- ----------
NET INCOME $ 67,011 $ 183,484
======== ==========
-16-
LIMITED PARTNERS:
Net income from continuing
operations $128,958 $1,402,383
Net income from discontinued
operations 467,486 207,925
-------- ----------
NET INCOME $596,444 $1,610,308
======== ==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 0.36 $ 3.88
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 1.29 0.57
-------- ----------
NET INCOME PER UNIT $ 1.65 $ 4.45
======== ==========
UNITS OUTSTANDING 361,719 361,719
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF CASH FLOWS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 663,455 $1,793,792
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 10,541 71,271
Gain on disposal of discontinued
operations ( 492,482) -
Decrease in accounts receivable -
oil and gas sales 25,934 223,479
Decrease in deferred charge - 22,528
Decrease in accounts payable ( 64,522) ( 64,973)
Increase in gas imbalance
payable - 3,115
Increase in accrued liability - 22,876
---------- ----------
Net cash provided by operating
activities $ 142,926 $2,072,088
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 4,265) ($ 14,861)
Proceeds from the sale of oil and
gas properties 375 -
---------- ----------
Net cash used by investing
activities ($ 3,890) ($ 14,861)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 11,790) ($2,398,266)
---------- ----------
Net cash used by financing
activities ($ 11,790) ($2,398,266)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 127,246 ($ 341,039)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,068,383 1,604,547
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,195,629 $1,263,508
========== ==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENT OF NET ASSETS OF PARTNERSHIP IN LIQUIDATION
(Unaudited)
JUNE 30,
2007
-----------
NET ASSETS OF PARTNERSHIP IN LIQUIDATION,
at fair value $11,399,981
===========
PARTNERS' CAPITAL:
General Partner $ 1,058,679
Limited Partners, issued and
outstanding, 154,621 units 10,341,302
-----------
Total Partners' capital $11,399,981
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENT OF CHANGES IN NET ASSETS OF PARTNERSHIP
IN LIQUIDATION
(Unaudited)
PERIOD FROM
FEBRUARY 5,
TO JUNE 30,
2007
-------------
Total Partners' capital at February 4, 2007 $ 1,703,419
Adjust assets to fair value, net of
estimated selling costs 10,148,982
Partners' distributions from February 5, 2007
to March 31, 2007 ( 546,428)
Revenues from February 5, 2007 to March 31, 2007 392,653
Operating expenses incurred from
February 5, 2007 to March 31, 2007 ( 162,121)
-----------
Net assets of partnership in liquidation
at March 31, 2007 $11,536,505
Change in fair value of assets, net of
estimated selling costs ( 262,736)
Partners' distributions from April 1, 2007
to June 30, 2007 ( 258,787)
Revenues from April 1, 2007 to June 30, 2007 598,656
Operating expenses incurred from April 1, 2007
to June 30, 2007 ( 213,657)
-----------
Net assets of partnership in liquidation
at June 30, 2007 $11,399,981
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED BALANCE SHEET
(GOING CONCERN BASIS)
(Unaudited)
ASSETS
DECEMBER 31,
2006
------------
CURRENT ASSETS:
Cash and cash equivalents $ 506,167
Accounts receivable:
Oil and gas sales 424,972
Assets held for sale (Note 3) 19,532
----------
Total current assets $ 950,671
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 669,082
DEFERRED CHARGE 140,129
----------
$1,759,882
==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 145,261
Gas imbalance payable 14,075
Asset retirement obligation -
current (Note 1) 15,441
Assets retirement obligation -
assets held for sale 4,024
Accounts payable of assets held
for sale 8,382
----------
Total current liabilities $ 187,183
LONG-TERM LIABILITIES:
Accrued liability $ 43,318
Asset retirement obligation (Note 1) 124,728
----------
Total long-term liabilities $ 168,046
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 94,429)
Limited Partners, issued and
outstanding, 154,621 units 1,499,082
----------
Total Partners' capital $1,404,653
----------
$1,759,882
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
THREE MONTHS
ENDED
JUNE 30,
2006
------------
REVENUES:
Oil and gas sales $619,507
Interest income 5,634
--------
$625,141
COSTS AND EXPENSES:
Lease operating $100,855
Production tax 37,828
Depreciation, depletion, and
amortization of oil and gas
properties 15,878
General and administrative
(Note 2) 44,269
--------
$198,830
--------
INCOME FROM CONTINUING OPERATIONS $426,311
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 13,012
--------
NET INCOME $439,323
========
GENERAL PARTNER:
Net income from continuing
operations $ 43,497
Net income from discontinued
operations 1,319
--------
NET INCOME $ 44,816
========
-22-
LIMITED PARTNERS:
Net income from continuing
operations $382,814
Net income from discontinued
operations 11,693
--------
NET INCOME $394,507
========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 2.48
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 0.07
--------
NET INCOME PER UNIT $ 2.55
========
UNITS OUTSTANDING 154,621
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ----------
REVENUES:
Oil and gas sales $166,144 $1,326,887
Interest income 1,332 11,693
-------- ----------
$167,476 $1,338,580
COSTS AND EXPENSES:
Lease operating $ 40,569 $ 237,520
Production tax 22,347 81,588
Depreciation, depletion, and
amortization of oil and gas
properties 4,624 33,601
General and administrative
(Note 2) 16,469 111,222
-------- ----------
$ 84,009 $ 463,931
-------- ----------
INCOME FROM CONTINUING OPERATIONS $ 83,467 $ 874,649
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 5,329 31,284
Gain on disposal of discontinued
operations (Note 3) 218,138 -
-------- ----------
NET INCOME $306,934 $ 905,933
======== ==========
GENERAL PARTNER:
Net income from continuing
operations $ 8,630 $ 89,320
Net income from discontinued
operations 22,349 3,165
-------- ----------
NET INCOME $ 30,979 $ 92,485
======== ==========
-24-
LIMITED PARTNERS:
Net income from continuing
operations $ 74,837 $ 785,329
Net income from discontinued
operations 201,118 28,119
-------- ----------
NET INCOME $275,955 $ 813,448
======== ==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 0.48 $ 5.08
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 1.30 0.18
-------- ----------
NET INCOME PER UNIT $ 1.78 $ 5.26
======== ==========
UNITS OUTSTANDING 154,621 154,621
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-25-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF CASH FLOWS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $306,934 $ 905,933
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 4,647 34,003
Gain on disposal of discontinued
operations ( 218,138) -
Decrease in accounts receivable -
oil and gas sales 7,879 207,577
Decrease in deferred charge - 13,139
Decrease in accounts payable ( 10,194) ( 58,564)
Decrease in gas imbalance
payable - ( 374)
Increase in accrued liability - 7,031
-------- ----------
Net cash provided by operating
activities $ 91,128 $1,108,745
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 1,828) ($ 13,069)
Proceeds from the sale of oil and
gas properties 161 -
-------- ----------
Net cash used by investing
activities ($ 1,667) ($ 13,069)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 8,168) ($1,301,444)
-------- ----------
Net cash used by financing
activities ($ 8,168) ($1,301,444)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 81,293 ($ 205,768)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 506,167 812,768
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $587,460 $ 607,000
======== ==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-26-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENT OF NET ASSETS OF PARTNERSHIP IN LIQUIDATION
(Unaudited)
JUNE 30,
2007
-----------
NET ASSETS OF PARTNERSHIP IN LIQUIDATION,
at fair value $23,303,529
===========
PARTNERS' CAPITAL:
General Partner $ 2,180,020
Limited Partners, issued and
outstanding, 314,878 units 21,123,509
-----------
Total Partners' capital $23,303,529
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-27-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENT OF CHANGES IN NET ASSETS OF PARTNERSHIP
IN LIQUIDATION
(Unaudited)
PERIOD FROM
FEBRUARY 5,
TO JUNE 30,
2007
-------------
Total Partners' capital at February 4, 2007 $ 3,632,508
Adjust assets to fair value, net of
estimated selling costs 21,036,806
Partners' distributions from February 5, 2007
to March 31, 2007 ( 1,221,322)
Revenues from February 5, 2007 to March 31, 2007 808,609
Operating expenses incurred from
February 5, 2007 to March3 1, 2007 ( 301,765)
-----------
Net assets of partnership in liquidation
at March 31, 2007 $23,954,836
Change in fair value of assets, net of
estimated selling costs ( 638,178)
Partners' distributions from April 1, 2007
to June 30, 2007 ( 667,519)
Revenues from April 1, 2007 to June 30, 2007 1,151,391
Operating expenses incurred from April 1, 2007
to June 30, 2007 ( 497,001)
-----------
Net assets of partnership in liquidation
at June 30, 2007 $23,303,529
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-28-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED BALANCE SHEET
(GOING CONCERN BASIS)
(Unaudited)
ASSETS
DECEMBER 31,
2006
------------
CURRENT ASSETS:
Cash and cash equivalents $1,059,020
Accounts receivable:
Oil and gas sales 940,580
Assets held for sale (Note 3) 136,570
----------
Total current assets $2,136,170
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,307,978
DEFERRED CHARGE 352,148
----------
$3,796,296
==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 182,835
Gas imbalance payable 20,235
Asset retirement obligation -
current (Note 1) 69,738
Assets retirement obligation -
assets held for sale 37,822
Accounts payable of assets held
for sale 16,084
----------
Total current liabilities $ 326,714
LONG-TERM LIABILITIES:
Accrued liability $ 121,205
Asset retirement obligation (Note 1) 353,690
----------
Total long-term liabilities $ 474,895
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 148,835)
Limited Partners, issued and
outstanding, 314,878 units 3,143,522
----------
Total Partners' capital $2,994,687
----------
$3,796,296
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-29-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
THREE MONTHS
ENDED
JUNE 30,
2006
------------
REVENUES:
Oil and gas sales $1,084,282
Interest income 13,727
----------
$1,098,009
COSTS AND EXPENSES:
Lease operating $ 162,638
Production tax 69,118
Depreciation, depletion, and
amortization of oil and gas
properties 47,362
General and administrative
(Note 2) 88,183
----------
$ 367,301
----------
INCOME FROM CONTINUING OPERATIONS $ 730,708
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 68,632
----------
NET INCOME $ 799,340
==========
GENERAL PARTNER:
Net income from continuing
operations $ 75,961
Net income from discontinued
operations 6,965
----------
NET INCOME $ 82,926
==========
-30-
LIMITED PARTNERS:
Net income from continuing
operations $ 654,747
Net income from discontinued
operations 61,667
----------
NET INCOME $ 716,414
==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 2.08
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 0.19
----------
NET INCOME PER UNIT $ 2.27
==========
UNITS OUTSTANDING 314,878
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-31-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ----------
REVENUES:
Oil and gas sales $338,044 $2,441,430
Interest income 2,771 26,642
-------- ----------
$340,815 $2,468,072
COSTS AND EXPENSES:
Lease operating $ 89,952 $ 363,512
Production tax 18,891 153,110
Depreciation, depletion, and
amortization of oil and gas
properties 9,428 91,774
General and administrative
(Note 2) 31,343 199,761
-------- ----------
$149,614 $ 808,157
-------- ----------
INCOME FROM CONTINUING OPERATIONS $191,201 $1,659,915
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 23,746 152,076
Gain on disposal of discontinued
operations (Note 3) 447,575 -
-------- ----------
NET INCOME $662,522 $1,811,991
======== ==========
GENERAL PARTNER:
Net income from continuing
operations $ 19,692 $ 171,587
Net income from discontinued
operations 47,151 15,417
-------- ----------
NET INCOME $ 66,843 $ 187,004
======== ==========
-32-
LIMITED PARTNERS:
Net income from continuing
operations $171,509 $1,488,328
Net income from discontinued
operations 424,170 136,659
-------- ----------
NET INCOME $595,679 $1,624,987
======== ==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 0.54 $ 4.73
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 1.35 0.43
-------- ----------
NET INCOME PER UNIT $ 1.89 $ 5.16
======== ==========
UNITS OUTSTANDING 314,878 314,878
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-33-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF CASH FLOWS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 662,522 $1,811,991
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 9,637 94,106
Gain on disposal of discontinued
operations ( 447,575) -
Decrease in accounts receivable -
oil and gas sales 21,069 593,349
Decrease in deferred charge - 12,060
Increase (decrease) in accounts
payable 35,874 ( 46,734)
Decrease in gas imbalance
Payable - ( 1,203)
Increase in accrued liability - 23,422
---------- ----------
Net cash provided by operating
activities $ 281,527 $2,486,991
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 6,427) ($ 73,347)
Proceeds from the sale of oil and
gas properties - 5,170
---------- ----------
Net cash used by investing
activities ($ 6,427) ($ 68,177)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 24,701) ($2,977,015)
---------- ----------
Net cash used by financing
activities ($ 24,701) ($2,977,015)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 250,399 ($ 558,201)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,059,020 1,661,561
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,309,419 $1,103,360
========== ==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-34-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENT OF NET ASSETS OF PARTNERSHIP IN LIQUIDATION
(Unaudited)
JUNE 30,
2007
-----------
NET ASSETS OF PARTNERSHIP IN LIQUIDATION,
at fair value $11,943,053
===========
PARTNERS' CAPITAL:
General Partner $ 1,033,840
Limited Partners, issued and
outstanding, 228,821 units 10,909,213
-----------
Total Partners' capital $11,943,053
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-35-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENT OF CHANGES IN NET ASSETS OF PARTNERSHIP
IN LIQUIDATION
(Unaudited)
PERIOD FROM
FEBRUARY 5,
TO JUNE 30,
2007
-------------
Total Partners' capital at February 4, 2007 $ 2,689,662
Adjust assets to fair value, net of
estimated selling costs 9,598,087
Partners' distributions from February 5, 2007
to March 31, 2007 ( 939,905)
Revenues from February 5, 2007 to March 31, 2007 442,804
Operating expenses incurred from
February 5, 2007 to March 31, 2007 ( 224,075)
-----------
Net assets of partnership in liquidation
at March 31, 2007 $11,566,573
Change in fair value of assets, net of
estimated selling costs 279,877
Partners' distributions from April 1, 2007
to June 30, 2007 ( 253,047)
Revenues from April 1, 2007 to June 30, 2007 507,944
Operating expenses incurred from April 1, 2007
to June 30, 2007 ( 158,294)
-----------
Net assets of partnership in liquidation
at June 30, 2007 $11,943,053
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-36-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED BALANCE SHEET
(GOING CONCERN BASIS)
(Unaudited)
ASSETS
DECEMBER 31,
2006
------------
CURRENT ASSETS:
Cash and cash equivalents $ 883,202
Accounts receivable:
Oil and gas sales 349,933
Assets held for sale (Note 3) 261,831
----------
Total current assets $1,494,966
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 877,543
DEFERRED CHARGE 203,568
----------
$2,576,077
==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 138,447
Accounts payable - related party 647
Gas imbalance payable 43,424
Asset retirement obligation -
current (Note 1) 26,503
Assets retirement obligation -
assets held for sale 31,833
Liabilities of assets held
for sale 43,055
----------
Total current liabilities $ 283,909
LONG-TERM LIABILITIES:
Accrued liability $ 69,257
Asset retirement obligation (Note 1) 112,948
----------
Total long-term liabilities $ 182,205
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 95,977)
Limited Partners, issued and
outstanding, 228,821 units 2,205,940
----------
Total Partners' capital $2,109,963
----------
$2,576,077
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-37-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
THREE MONTHS
ENDED
JUNE 30,
2006
------------
REVENUES:
Oil and gas sales $568,022
Interest income 8,992
--------
$577,014
COSTS AND EXPENSES:
Lease operating $140,559
Production tax 40,481
Depreciation, depletion, and
amortization of oil and gas
properties 20,145
General and administrative
(Note 2) 64,610
--------
$265,795
--------
INCOME FROM CONTINUING OPERATIONS $311,219
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 256,618
--------
NET INCOME $567,837
========
GENERAL PARTNER:
Net income from continuing
operations $ 32,036
Net income from discontinued
operations 26,659
--------
NET INCOME $ 58,695
========
-38-
LIMITED PARTNERS:
Net income from continuing
operations $279,183
Net income from discontinued
operations 229,959
--------
NET INCOME $509,142
========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 1.22
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 1.00
--------
NET INCOME PER UNIT $ 2.22
========
UNITS OUTSTANDING 228,821
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-39-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ----------
REVENUES:
Oil and gas sales $157,754 $1,254,293
Interest income 1,767 18,797
Gain on sale of oil and gas
properties 76 -
-------- ----------
$159,597 $1,273,090
COSTS AND EXPENSES:
Lease operating $ 27,557 $ 226,543
Production tax 8,408 86,750
Depreciation, depletion, and
amortization of oil and gas
properties 5,556 45,081
General and administrative
(Note 2) 23,356 152,225
-------- ----------
$ 64,877 $ 510,599
-------- ----------
INCOME FROM CONTINUING OPERATIONS $ 94,720 $ 762,491
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 38,202 451,171
Gain on disposal of discontinued
operations (Note 3) 461,402 -
-------- ----------
NET INCOME $594,324 $1,213,662
======== ==========
GENERAL PARTNER:
Net income from continuing
operations $ 9,795 $ 78,427
Net income from discontinued
operations 49,977 47,966
-------- ----------
NET INCOME $ 59,772 $ 126,393
======== ==========
-40-
LIMITED PARTNERS:
Net income from continuing
operations $ 84,925 $ 684,064
Net income from discontinued
operations 449,627 403,205
-------- ----------
NET INCOME $534,552 $1,087,269
======== ==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 0.37 $ 2.99
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 1.96 1.76
-------- ----------
NET INCOME PER UNIT $ 2.33 $ 4.75
======== ==========
UNITS OUTSTANDING 228,821 228,821
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-41-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF CASH FLOWS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 594,324 $1,213,662
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 5,739 76,734
Gain on sale of oil and gas
properties ( 76) -
Gain on disposal of discontinued
operations ( 461,402) -
Settlement of asset retirement
obligation ( 92) ( 127)
Decrease in accounts receivable -
oil and gas sales 20,415 323,768
Decrease in deferred charge - 1,770
Increase (decrease) in accounts
payable 229 ( 13,100)
Increase in accrued liability - 43,924
---------- ----------
Net cash provided by operating
activities $ 159,137 $1,646,631
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 15,414) ($ 12,203)
---------- ----------
Net cash used by investing
activities ($ 15,414) ($ 12,203)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 14,625) ($2,017,319)
---------- ----------
Net cash used by financing
activities ($ 14,625) ($2,017,319)
---------- ----------
-42-
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 129,098 ($ 382,891)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 883,202 1,290,961
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,012,300 $ 908,070
========== ==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-43-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENT OF NET ASSETS OF PARTNERSHIP IN LIQUIDATION
(Unaudited)
JUNE 30,
2007
-----------
NET ASSETS OF PARTNERSHIP IN LIQUIDATION,
at fair value $12,089,971
===========
PARTNERS' CAPITAL:
General Partner $ 1,048,871
Limited Partners, issued and
outstanding, 171,400 units 11,041,100
-----------
Total Partners' capital $12,089,971
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-44-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENT OF CHANGES IN NET ASSETS OF PARTNERSHIP
IN LIQUIDATION
(Unaudited)
PERIOD FROM
FEBRUARY 5,
TO JUNE 30,
2007
-------------
Total Partners' capital at February 4, 2007 $ 2,701,391
Adjust assets to fair value, net of
estimated selling costs 9,336,899
Partners' distributions from February 5, 2007
to March 31, 2007 ( 889,404)
Revenues from February 5, 2007 to March 31, 2007 492,319
Operating expenses incurred from
February 5, 2007 to March 31, 2007 ( 201,722)
-----------
Net assets of partnership in liquidation
at March 31, 2007 $11,439,483
Change in fair value of assets, net of
estimated selling costs 993,956
Partners' distributions from April 1, 2007
to June 30, 2007 ( 856,698)
Revenues from April 1, 2007 to June 30, 2007 650,613
Operating expenses incurred from April 1, 2007
to June 30, 2007 ( 137,383)
-----------
Net assets of partnership in liquidation
at June 30, 2007 $12,089,971
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-45-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED BALANCE SHEET
(GOING CONCERN BASIS)
(Unaudited)
ASSETS
DECEMBER 31,
2006
------------
CURRENT ASSETS:
Cash and cash equivalents $ 824,445
Accounts receivable:
Oil and gas sales 252,355
Assets held for sale (Note 3) 613,824
----------
Total current assets $1,690,624
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 631,804
DEFERRED CHARGE 21,383
----------
$2,343,811
==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 39,146
Accounts payable - related party 1,567
Gas imbalance payable 4,632
Asset retirement obligation -
current (Note 1) 5,398
Assets retirement obligation -
assets held for sale 75,038
Liabilities of assets held
for sale 101,014
----------
Total current liabilities $ 226,795
LONG-TERM LIABILITIES:
Accrued liability $ 23,586
Asset retirement obligation (Note 1) 118,752
----------
Total long-term liabilities $ 142,338
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 31,426)
Limited Partners, issued and
outstanding, 171,400 units 2,006,104
----------
Total Partners' capital $1,974,678
----------
$2,343,811
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-46-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
THREE MONTHS
ENDED
JUNE 30,
2006
------------
REVENUES:
Oil and gas sales $391,262
Interest income 7,245
--------
$398,507
COSTS AND EXPENSES:
Lease operating $ 81,267
Production tax 26,642
Depreciation, depletion, and
amortization of oil and gas
properties 17,561
General and administrative
(Note 2) 48,015
--------
$173,485
--------
INCOME FROM CONTINUING OPERATIONS $225,022
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 498,602
--------
NET INCOME $723,624
========
GENERAL PARTNER:
Net income from continuing
operations $ 23,358
Net income from discontinued
operations 50,704
--------
NET INCOME $ 74,062
========
-47-
LIMITED PARTNERS:
Net income from continuing
operations $201,664
Net income from discontinued
operations 447,898
--------
NET INCOME $649,562
========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 1.18
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 2.62
--------
NET INCOME PER UNIT $ 3.80
========
UNITS OUTSTANDING 171,400
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-48-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ----------
REVENUES:
Oil and gas sales $103,138 $ 792,747
Interest income 1,351 14,214
Gain on sale of oil and gas
properties 190 -
-------- ----------
$104,679 $ 806,961
COSTS AND EXPENSES:
Lease operating $ 19,177 $ 130,232
Production tax 6,857 52,521
Depreciation, depletion, and
amortization of oil and gas
properties 5,069 40,921
General and administrative
(Note 2) 18,026 119,641
-------- ----------
$ 49,129 $ 343,315
-------- ----------
INCOME FROM CONTINUING OPERATIONS $ 55,550 $ 463,646
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 91,202 933,021
Gain on disposal of discontinued
operations (Note 3) 599,070 -
-------- ----------
NET INCOME $745,822 $1,396,667
======== ==========
GENERAL PARTNER:
Net income from continuing
operations $ 5,876 $ 48,626
Net income from discontinued
operations 69,065 95,283
-------- ----------
NET INCOME $ 74,941 $ 143,909
======== ==========
-49-
LIMITED PARTNERS:
Net income from continuing
operations $ 49,674 $ 415,020
Net income from discontinued
operations 621,207 837,738
-------- ----------
NET INCOME $670,881 $1,252,758
======== ==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 0.29 $ 2.42
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 3.62 4.89
-------- ----------
NET INCOME PER UNIT $ 3.91 $ 7.31
======== ==========
UNITS OUTSTANDING 171,400 171,400
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-50-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF CASH FLOWS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 745,822 $1,396,667
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 5,485 62,926
Gain on sale of oil and gas
properties ( 190) -
Gain on disposal of discontinued
operations ( 599,070) -
Settlement of asset retirement
obligation ( 223) ( 307)
Decrease in accounts receivable -
oil and gas sales 58,728 257,644
Decrease in deferred charge - 279
Increase (decrease) in accounts
payable 3,296 ( 32,806)
Decrease in gas imbalance
Payable - ( 288)
Decrease in accrued liability - ( 1,014)
---------- ----------
Net cash provided by operating
activities $ 213,848 $1,683,101
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 5,730) ($ 29,911)
---------- ----------
Net cash used by investing
activities ($ 5,730) ($ 29,911)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 19,109) ($1,598,838)
---------- ----------
Net cash used by financing
activities ($ 19,109) ($1,598,838)
---------- ----------
-51-
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 189,009 $ 54,352
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 824,445 921,812
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,013,454 $ 976,164
========== ==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-52-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENT OF NET ASSETS OF PARTNERSHIP IN LIQUIDATION
(Unaudited)
JUNE 30,
2007
-----------
NET ASSETS OF PARTNERSHIP IN LIQUIDATION,
at fair value $25,711,534
===========
PARTNERS' CAPITAL:
General Partner $ 2,230,961
Limited Partners, issued and
outstanding, 372,189 units 23,480,573
-----------
Total Partners' capital $25,711,534
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-53-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENT OF CHANGES IN NET ASSETS OF PARTNERSHIP
IN LIQUIDATION
(Unaudited)
PERIOD FROM
FEBRUARY 5,
TO JUNE 30,
2007
-------------
Total Partners' capital at February 4, 2007 $ 5,844,087
Adjust assets to fair value, net of
estimated selling costs 19,854,728
Partners' distributions from February 5, 2007
to March 31, 2007 ( 1,974,364)
Revenues from February 5, 2007 to March 31, 2007 1,045,145
Operating expenses incurred from
February 5, 2007 to March 31, 2007 ( 393,322)
-----------
Net assets of partnership in liquidation
at March 31, 2007 $24,376,274
Change in fair value of assets, net of
estimated selling costs 2,082,780
Partners' distributions from April 1, 2007
to June 30, 2007 ( 1,841,079)
Revenues from April 1, 2007 to June 30, 2007 1,382,495
Operating expenses incurred from April 1, 2007
to June 30, 2007 ( 288,936)
-----------
Net assets of partnership in liquidation
at June 30, 2007 $25,711,534
===========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-54-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED BALANCE SHEET
(GOING CONCERN BASIS)
(Unaudited)
ASSETS
DECEMBER 31,
2006
------------
CURRENT ASSETS:
Cash and cash equivalents $1,846,124
Accounts receivable:
Oil and gas sales 546,685
Assets held for sale (Note 3) 1,286,746
----------
Total current assets $3,679,555
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,360,872
DEFERRED CHARGE 53,796
----------
$5,094,223
==========
LIABILITIES AND PARTNERS' CAPITAL
CURRENT LIABILITIES:
Accounts payable $ 79,030
Accounts payable - related party 3,288
Gas imbalance payable 16,422
Asset retirement obligation -
current (Note 1) 11,451
Assets retirement obligation -
assets held for sale 157,170
Liabilities of assets held
for sale 211,077
----------
Total current liabilities $ 478,438
LONG-TERM LIABILITIES:
Accrued liability $ 43,043
Asset retirement obligation (Note 1) 256,307
----------
Total long-term liabilities $ 299,350
PARTNERS' CAPITAL:
General Partner $ 47,955
Limited Partners, issued and
outstanding, 372,189 units 4,268,480
----------
Total Partners' capital $4,316,435
----------
$5,094,223
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-55-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
THREE MONTHS
ENDED
JUNE 30,
2006
------------
REVENUES:
Oil and gas sales $ 846,330
Interest income 15,698
----------
$ 862,028
COSTS AND EXPENSES:
Lease operating $ 175,980
Production tax 57,735
Depreciation, depletion, and
amortization of oil and gas
properties 37,498
General and administrative
(Note 2) 103,058
----------
$ 374,271
----------
INCOME FROM CONTINUING OPERATIONS $ 487,757
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 1,042,145
----------
NET INCOME $1,529,902
==========
GENERAL PARTNER:
Net income from continuing
operations $ 50,580
Net income from discontinued
operations 106,387
----------
NET INCOME $ 156,967
==========
-56-
LIMITED PARTNERS:
Net income from continuing
operations $ 437,177
Net income from discontinued
operations 935,758
----------
NET INCOME $1,372,935
==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 1.17
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 2.51
----------
NET INCOME PER UNIT $ 3.68
==========
UNITS OUTSTANDING 372,189
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-57-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ----------
REVENUES:
Oil and gas sales $ 222,554 $1,711,583
Interest income 2,984 30,709
Gain on sale of oil and gas
properties 394 -
---------- ----------
$ 225,932 $1,742,292
COSTS AND EXPENSES:
Lease operating $ 40,825 $ 282,961
Production tax 15,171 114,257
Depreciation, depletion, and
amortization of oil and gas
properties 11,002 86,943
General and administrative
(Note 2) 36,662 230,596
---------- ----------
$ 103,660 $ 714,757
---------- ----------
INCOME FROM CONTINUING OPERATIONS $ 122,272 $1,027,535
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 193,676 1,952,939
Gain on disposal of discontinued
operations (Note 3) 1,252,503 -
---------- ----------
NET INCOME $1,568,451 $2,980,474
========== ==========
GENERAL PARTNER:
Net income from continuing
operations $ 12,919 $ 107,507
Net income from discontinued
operations 144,697 199,985
---------- ----------
NET INCOME $ 157,616 $ 307,492
========== ==========
-58-
LIMITED PARTNERS:
Net income from continuing
operations $ 109,353 $ 920,028
Net income from discontinued
operations 1,301,482 1,752,954
---------- ----------
NET INCOME $1,410,835 $2,672,982
========== ==========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 0.29 $ 2.47
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 3.50 4.71
---------- ----------
NET INCOME PER UNIT $ 3.79 $ 7.18
========== ==========
UNITS OUTSTANDING 372,189 372,189
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-59-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF CASH FLOWS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,568,451 $2,980,474
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 11,879 139,061
Gain on sale of oil and gas
properties ( 394) -
Gain on disposal of discontinued
operations ( 1,252,503) -
Settlement of asset retirement
obligation ( 468) ( 641)
Decrease in accounts receivable -
oil and gas sales 120,127 544,531
Decrease in deferred charge - 494
Increase (decrease) in accounts
payable 9,176 ( 68,297)
Decrease in gas imbalance
Payable - ( 4,745)
Decrease in accrued liability - ( 76)
---------- ----------
Net cash provided by operating
activities $ 456,268 $3,590,801
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 11,978) ($ 62,720)
---------- ----------
Net cash used by investing
activities ($ 11,978) ($ 62,720)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 40,799) ($3,419,710)
---------- ----------
Net cash used by financing
activities ($ 40,799) ($3,419,710)
---------- ----------
-60-
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 403,491 $ 108,371
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,846,124 1,970,349
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $2,249,615 $2,078,720
========== ==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-61-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENT OF NET ASSETS OF PARTNERSHIP IN LIQUIDATION
(Unaudited)
JUNE 30,
2007
----------
NET ASSETS OF PARTNERSHIP IN LIQUIDATION,
at fair value $6,107,387
==========
PARTNERS' CAPITAL:
General Partner $ 530,855
Limited Partners, issued and
outstanding, 91,711 units 5,576,532
----------
Total Partners' capital $6,107,387
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-62-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENT OF CHANGES IN NET ASSETS OF PARTNERSHIP
IN LIQUIDATION
(Unaudited)
PERIOD FROM
FEBRUARY 5,
TO JUNE 30,
2007
------------
Total Partners' capital at February 4, 2007 $1,405,788
Adjust assets to fair value, net of
estimated selling costs 4,738,444
Partners' distributions from February 5, 2007
to March 31, 2007 ( 496,843)
Revenues from February 5, 2007 to March 31, 2007 250,035
Operating expenses incurred from
February 5, 2007 to March 31, 2007 ( 119,443)
----------
Net assets of partnership in liquidation
at March 31, 2007 $5,777,981
Change in fair value of assets, net of
estimated selling costs 482,580
Partners' distributions from April 1, 2007
to June 30, 2007 ( 406,292)
Revenues from April 1, 2007 to June 30, 2007 329,844
Operating expenses incurred from April 1, 2007
to June 30, 2007 ( 76,726)
----------
Net assets of partnership in liquidation
at June 30, 2007 $6,107,387
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-63-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED BALANCE SHEET
(GOING CONCERN BASIS)
(Unaudited)
ASSETS
DECEMBER 31,
2006
------------
CURRENT ASSETS:
Cash and cash equivalents $ 474,706
Accounts receivable:
Oil and gas sales 129,051
Assets held for sale (Note 3) 297,517
----------
Total current assets $ 901,274
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 331,348
DEFERRED CHARGE 12,322
----------
$1,244,944
==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 22,499
Accounts payable - related party 761
Asset retirement obligation -
current (Note 1) 2,726
Assets retirement obligation -
assets held for sale 36,318
Liabilities of assets held
for sale 49,233
----------
Total current liabilities $ 111,537
LONG-TERM LIABILITIES:
Accrued liability $ 14,864
Asset retirement obligation (Note 1) 63,227
----------
Total long-term liabilities $ 78,091
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 16,786)
Limited Partners, issued and
outstanding, 91,711 units 1,072,102
----------
Total Partners' capital $1,055,316
----------
$1,244,944
==========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-64-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
THREE MONTHS
ENDED
JUNE 30,
2006
------------
REVENUES:
Oil and gas sales $203,697
Interest income 3,567
--------
$207,264
COSTS AND EXPENSES:
Lease operating $ 42,486
Production tax 14,169
Depreciation, depletion, and
amortization of oil and gas
properties 8,894
General and administrative
(Note 2) 26,166
--------
$ 91,715
--------
INCOME FROM CONTINUING OPERATIONS $115,549
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 242,887
--------
NET INCOME $358,436
========
GENERAL PARTNER:
Net income from continuing
operations $ 11,999
Net income from discontinued
operations 24,722
--------
NET INCOME $ 36,721
========
-65-
LIMITED PARTNERS:
Net income from continuing
operations $103,550
Net income from discontinued
operations 218,165
--------
NET INCOME $321,715
========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 1.13
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 2.38
--------
NET INCOME PER UNIT $ 3.51
========
UNITS OUTSTANDING 91,711
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-66-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- ----------
REVENUES:
Oil and gas sales $ 52,597 $414,107
Interest income 719 7,016
Gain on sale of oil and gas
properties 91 -
-------- --------
$ 53,407 $421,123
COSTS AND EXPENSES:
Lease operating $ 9,947 $ 69,230
Production tax 3,537 28,129
Depreciation, depletion, and
amortization of oil and gas
properties 2,652 20,453
General and administrative
(Note 2) 10,628 75,597
-------- --------
$ 26,764 $193,409
-------- --------
INCOME FROM CONTINUING OPERATIONS $ 26,643 $227,714
DISCONTINUED OPERATIONS:
Income from discontinued operations
(Note 3) 43,407 451,425
Gain on disposal of discontinued
operations (Note 3) 289,668 -
-------- --------
NET INCOME $359,718 $679,139
======== ========
GENERAL PARTNER:
Net income from continuing
operations $ 2,831 $ 23,911
Net income from discontinued
operations 33,325 46,276
-------- --------
NET INCOME $ 36,156 $ 70,187
======== ========
-67-
LIMITED PARTNERS:
Net income from continuing
operations $ 23,812 $203,803
Net income from discontinued
operations 299,750 405,149
-------- --------
NET INCOME $323,562 $608,952
======== ========
NET INCOME FROM CONTINUING
OPERATIONS PER UNIT $ 0.26 $ 2.22
NET INCOME FROM DISCONTINUED
OPERATIONS PER UNIT 3.27 4.42
-------- --------
NET INCOME PER UNIT $ 3.53 $ 6.64
======== ========
UNITS OUTSTANDING 91,711 91,711
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-68-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF CASH FLOWS
(GOING CONCERN BASIS)
(Unaudited)
PERIOD FROM SIX MONTHS
JANUARY 1, TO ENDED
FEBRUARY 4, JUNE 30,
2007 2006
------------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $359,718 $679,139
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 2,847 33,042
Gain on sale of oil and gas
properties ( 91) -
Gain on disposal of discontinued
operations ( 289,668) -
Settlement of asset retirement
obligation ( 108) ( 147)
Decrease in accounts receivable -
oil and gas sales 30,811 133,801
Decrease in deferred charge - 236
Increase (decrease) in accounts
payable 301 ( 15,324)
Decrease in accrued liability - ( 479)
-------- --------
Net cash provided by operating
activities $103,810 $830,268
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 2,769) ($ 14,580)
-------- --------
Net cash used by investing
activities ($ 2,769) ($ 14,580)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 9,246) ($791,191)
-------- --------
Net cash used by financing
Activities ($ 9,246) ($791,191)
-------- --------
-69-
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 91,795 $ 24,497
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 474,706 465,378
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $566,501 $489,875
======== ========
The accompanying condensed notes are an integral part of these
combined unaudited financial statements.
-70-
GEODYNE ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED UNAUDITED FINANCIAL STATEMENTS
JUNE 30, 2007
(Unaudited)
1. BASIS OF PRESENTATION
---------------------
These unaudited financial statements reflect the combined accounts of each
Geodyne Energy Income Limited Partnership and the related Geodyne Energy
Income Production Partnership after the elimination of all
inter-partnership transactions and balances. Each limited partnership is a
general partner in the related Geodyne Energy Income 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 (Geodyne Resources, Inc.) and the managing
partner of the production partnerships, collectively. These unaudited
combined financial statements are presented on a going concern basis as of
December 31, 2006 and for the period January 1, 2007 through February 4,
2007 and the three and six months ended June 30, 2006. On February 5,
2007, the General Partner mailed a notice to the limited partners
announcing that the Partnerships will terminate at the end of their
current term, December 31, 2007. Consequently, the Partnerships adopted
the liquidation basis of accounting effective February 5, 2007. The
liquidation basis of accounting reports the net assets of the Partnerships
at their net realizable value. Adjustments were made to reduce all balance
sheet categories into one line, net assets of Partnership in liquidation,
which is an estimate of the net fair value of all Partnership assets and
liabilities. Cash, accounts receivable, and accounts payable were valued
at their historical cost, which approximates fair value. Oil and gas
properties were valued at their estimated net sales price, which was
estimated utilizing discounted cash flows based on strip pricing as of
June 30, 2007 at a discount rate of 10% for proved developed producing
reserves, 18% for proved developed non-producing reserves and 20% for
proved undeveloped reserves. An adjustment was made to the discounted cash
flows for the effects of gas balancing and asset retirement obligations. A
provision was also made to account for expenses that will be incurred
directly related to the sale of the oil and gas properties. The allocation
of the net assets of Partnership in liquidation to the General Partner and
limited partners was calculated using the current allocation of income and
expenses, which may change if a Partnership's distributions from the
commencement of the property investment period reach a yearly average
equal to at least 12% of the limited partners subscriptions.
-71-
The value of net assets in liquidation of the Partnerships is
substantially dependent on prices of crude oil, natural gas, and natural
gas liquids. Declines in commodity prices will adversely affect the amount
of cash that will be received from the sale of the Partnerships' oil and
gas properties in liquidation, and thus ultimately affect the amount of
cash that will be available for distribution to the partners.
The following table presents the estimated change in fair value of the net
assets of Partnership in liquidation presuming a decrease of 10% in
forecasted natural gas and crude oil prices. These estimated decreases in
liquidation values are in comparison to the estimated liquidation value
calculated using strip pricing for the Combined Unaudited Statements of
Changes in Net Assets of Partnership in Liquidation at June 30, 2007.
General Limited
Partnership Partner Partners Total
----------- -------- ---------- ----------
II-A $367,000 $3,305,000 $3,672,000
II-B 274,000 2,464,000 2,738,000
II-C 148,000 1,331,000 1,479,000
II-D 302,000 2,716,000 3,018,000
II-E 146,000 1,313,000 1,459,000
II-F 139,000 1,248,000 1,387,000
II-G 296,000 2,659,000 2,955,000
II-H 71,000 637,000 708,000
ACCOUNTING POLICIES
-------------------
The Combined Unaudited Statements of Net Assets of Partnership in
Liquidation as of June 30, 2007, Combined Unaudited Statements of Changes
in Net Assets of Partnership in Liquidation as of June 30, 2007, Combined
Unaudited Statements of Operations for the period from January 1, 2007 to
February 4, 2007 and the three and six months ended June 30, 2006, and
Combined Unaudited Statements of Cash Flows for the period from January 1,
2007 to February 4, 2007 and the six months ended June 30, 2006 were
prepared by the General Partner. 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
fair value of net assets of Partnership in liquidation at June 30, 2007,
the combined unaudited results of operations for the period from January
1, 2007 to February 4, 2007 and the three and six months ended June 30,
2006, the combined unaudited results of changes in net assets of
Partnership in liquidation from February 5, 2007 to June 30, 2007, and the
combined unaudited cash flows for the period from January 1, 2007 to
February 4, 2007 and the six months ended June 30, 2006.
-72-
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles were condensed or omitted. The accompanying unaudited interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed for the year ended December 31, 2006. The
results of operations for the period ending February 4, 2007 and the
changes in fair value of net assets of partnership in liquidation for the
period ending June 30, 2007 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.
STATEMENTS OF CASH FLOWS
-----------------------
Cash flows from operating, investing and financing activities presented in
the Combined Unaudited Statements of Cash Flows include cash flows
attributable to discontinued operations and assets held for sale for all
periods presented.
NEW ACCOUNTING PRONOUNCEMENTS
-----------------------------
In September 2006, the FASB issued FAS No. 157, "Fair Value
Measurements" (FAS No. 157). FAS No. 157 establishes a common
definition for fair value to be applied to US GAAP guidance requiring
use of fair value, establishes a framework for measuring fair value,
and expands the disclosure about such fair value measurements. FAS No.
157 is effective for fiscal years beginning after November 15, 2007.
The Partnerships are currently assessing the impact of FAS No. 157 on
its fair value of net assets of Partnership in liquidation and its
changes in net assets of Partnership in liquidation.
PARTNERSHIP TERMINATION
-----------------------
Pursuant to the terms of the partnership agreements for the Partnerships
(the "Partnership Agreements"), the Partnerships would have terminated on
December 31, 1999. 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 fourth two-year extension period to December
31, 2007. On February 5, 2007, the General Partner mailed a notice to the
limited partners announcing that the Partnerships will terminate at the
end of their current term, December 31, 2007. The
-73-
reader should refer to Note 4 - Partnership Termination to the combined
financial statements for additional information regarding this matter.
RECLASSIFICATION
----------------
Certain prior year balances have been reclassified to conform with current
year presentation.
OIL AND GAS PROPERTIES
----------------------
Before implementation of the liquidation basis of accounting, the
Partnerships followed the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalized all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs included 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 was adjusted to reflect the net
cash results of operations, including interest incurred to finance the
acquisition, for the period of time the properties were 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 was computed on the unit-of-production
method through February 4, 2007. The Partnerships' calculation of
depreciation, depletion, and amortization included estimated dismantlement
and abandonment costs and estimated salvage value of the equipment. When
complete units of depreciable property were retired or sold, the asset
cost and related accumulated depreciation were eliminated with any gain or
loss (including the elimination of the asset retirement obligation)
reflected in income. On February 5, 2007, the Partnerships adopted the
liquidation basis of accounting and no longer calculates depreciation,
depletion, and amortization.
-74-
The Partnerships evaluated the recoverability of the carrying costs of
their proved oil and gas properties for each well. If the unamortized
costs, net of salvage value, of oil and gas properties exceeded the
expected undiscounted future cash flows for such properties, the cost of
the properties was written down to fair value, which was determined by
using the estimated discounted future cash flows from the 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. 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.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
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. The general and administrative
expenses are included as a component of the net assets of Partnership in
liquidation. The reader should refer to Note 1 - Basis of Presentation to
the combined unaudited financial statements included in Part I, Item 1 of
this Quarterly Report on Form 10-Q for additional information regarding
this matter. During the three months ended June 30, 2007, the following
payments were made to the General Partner or its affiliates by the
Partnerships:
-75-
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
II-A $27,694 $127,443
II-B 22,006 95,190
II-C 12,433 40,689
II-D 19,901 82,863
II-E 15,864 60,216
II-F 15,272 45,105
II-G 24,620 97,944
II-H 11,614 24,135
During the six months ended June 30, 2007, the following payments were
made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
II-A $71,467 $254,886
II-B 66,706 190,380
II-C 45,619 81,378
II-D 58,207 165,726
II-E 59,076 120,432
II-F 55,882 90,210
II-G 71,660 195,888
II-H 49,589 48,270
Affiliates of the Partnerships serve as operator of some of the
Partnerships' wells. The General Partner contracts with such affiliates
for services as operator of the wells. As operator, such affiliates are
compensated at rates provided in the operating agreements in effect and
charged to all parties to such agreement. Such compensation may occur both
prior and subsequent to the commencement of commercial marketing of
production of oil or gas. The following approximate dollar amounts of
compensation were paid by the Partnerships to the affiliates:
Three Months Ended Six Months Ended
Partnership June 30, 2007 June 30, 2007
----------- ------------------ ------------------
II-A $15,000 $28,000
II-B 13,000 26,000
II-C 6,000 12,000
II-D 5,000 12,000
II-E 6,000 13,000
II-F 8,000 15,000
II-G 17,000 33,000
II-H 4,000 8,000
-76-
3. DISCONTINUED OPERATIONS
-----------------------
During August 2006, the General Partner approved a plan to sell an
increased amount of the Partnerships' properties as a result of the
generally favorable current environment for oil and gas properties. These
properties were classified as assets held for sale. On February 1, 2007
the Partnerships sold their interests in a number of producing properties
at a large public oil and gas auction which resulted in proceeds of the
following approximate dollar amounts:
Proceeds
Partnership (net of fees) Gain
----------- ------------ ----------
II-A $ 520,000 $ 518,000
II-B 491,000 492,000
II-C 215,000 218,000
II-D 449,000 448,000
II-E 466,000 461,000
II-F 596,000 599,000
II-G 1,246,000 1,253,000
II-H 288,000 290,000
The properties sold in the February 2007 auction and the remaining
properties classified as assets held for sale represent "disposal of a
component" under Statement of Financial Accounting Standards No. 144,
"Accounting for the Impairment or Disposal of Long-Lived Assets" (FAS
144). Accordingly, current year results for the period of January 1, 2007
through February 4, 2007 for these properties were classified as
discontinued operations, and prior periods were restated. Once properties
are classified as assets held for sale, they no longer incur any
depreciation, depletion, and amortization expense. In conjunction with the
planned sales, the Partnerships will retain all assets and liabilities
through the effective date of the sale and purchasers will assume the
asset retirement obligations associated with the sold interests. On
February 5, 2007, the Partnerships adopted the liquidation basis of
accounting. The reader should refer to Note 1 - Basis of Presentation to
the combined unaudited financial statements for additional information
regarding this matter.
-77-
Net income from discontinued operations is as follows:
II-A Partnership
----------------
Three Months
Ended
June 30,
2006
------------
Oil and gas sales $346,654
Lease operating ( 77,074)
Production tax ( 11,701)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 6,917)
--------
Income from discontinued
operations $250,962
========
Period from Six Months
January 1, to Ended
February 4, June 30,
2007 2006
------------- ----------
Oil and gas sales $89,193 $708,943
Lease operating ( 23,318) ( 161,604)
Production tax ( 3,425) ( 25,839)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 851) ( 14,990)
------- --------
Income from discontinued
operations $61,599 $506,510
======= ========
-78-
II-B Partnership
----------------
Three Months
Ended
June 30,
2006
------------
Oil and gas sales $163,050
Lease operating ( 46,162)
Production tax ( 3,634)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 2,724)
--------
Income from discontinued
operations $110,530
========
Period from Six Months
January 1, to Ended
February 4, June 30,
2007 2006
------------- ----------
Oil and gas sales $43,838 $335,744
Lease operating ( 15,423) ( 90,384)
Production tax ( 841) ( 7,967)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 570) ( 5,787)
------- --------
Income from discontinued
operations $27,004 $231,606
======= ========
-79-
II-C Partnership
----------------
Three Months
Ended
June 30,
2006
------------
Oil and gas sales $ 18,649
Lease operating ( 3,831)
Production tax ( 1,615)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 191)
--------
Income from discontinued
operations $ 13,012
========
Period from Six Months
January 1, to Ended
February 4, June 30,
2007 2006
------------- ----------
Oil and gas sales $ 6,551 $ 41,708
Lease operating ( 627) ( 6,598)
Production tax ( 572) ( 3,424)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 23) ( 402)
------- --------
Income from discontinued
operations $ 5,329 $ 31,284
======= ========
-80-
II-D Partnership
----------------
Three Months
Ended
June 30,
2006
------------
Oil and gas sales $115,004
Lease operating ( 33,922)
Production tax ( 11,311)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 1,139)
--------
Income from discontinued
operations $ 68,632
========
Period from Six Months
January 1, to Ended
February 4, June 30,
2007 2006
------------- ----------
Oil and gas sales $30,269 $235,028
Lease operating ( 3,153) ( 58,941)
Production tax ( 3,161) ( 21,679)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 209) ( 2,332)
------- --------
Income from discontinued
operations $23,746 $152,076
======= ========
-81-
II-E Partnership
----------------
Three Months
Ended
June 30,
2006
------------
Oil and gas sales $304,804
Lease operating ( 17,950)
Production tax ( 19,153)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 11,083)
--------
Income from discontinued
operations $256,618
========
Period from Six Months
January 1, to Ended
February 4, June 30,
2007 2006
------------- ----------
Oil and gas sales $ 45,692 $602,017
Lease operating ( 5,538) ( 78,525)
Production tax ( 1,769) ( 40,668)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 183) ( 31,653)
-------- --------
Income from discontinued
operations $ 38,202 $451,171
======== ========
-82-
II-F Partnership
----------------
Three Months
Ended
June 30,
2006
-------------
Oil and gas sales $ 541,080
Lease operating ( 10,519)
Production tax ( 22,591)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 9,368)
----------
Income from discontinued
operations $ 498,602
==========
Period from Six Months
January 1, to Ended
February 4, June 30,
2007 2006
------------- ------------
Oil and gas sales $108,847 $1,093,247
Lease operating ( 11,485) ( 82,393)
Production tax ( 5,744) ( 55,828)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 416) ( 22,005)
-------- ----------
Income from discontinued
operations $ 91,202 $ 933,021
======== ==========
-83-
II-G Partnership
----------------
Three Months
Ended
June 30,
2006
-------------
Oil and gas sales $1,136,841
Lease operating ( 22,960)
Production tax ( 47,603)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 24,133)
----------
Income from discontinued
operations $1,042,145
==========
Period from Six Months
January 1, to Ended
February 4, June 30,
2007 2006
------------- ------------
Oil and gas sales $231,241 $2,297,105
Lease operating ( 24,093) ( 174,193)
Production tax ( 12,595) ( 117,855)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 877) ( 52,118)
-------- ----------
Income from discontinued
operations $193,676 $1,952,939
======== ==========
-84-
II-H Partnership
----------------
Three Months
Ended
June 30,
2006
-------------
Oil and gas sales $ 264,324
Lease operating ( 5,480)
Production tax ( 11,149)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 4,808)
----------
Income from discontinued
operations $ 242,887
==========
Period from Six Months
January 1, to Ended
February 4, June 30,
2007 2006
------------- ------------
Oil and gas sales $ 51,913 $ 532,258
Lease operating ( 5,606) ( 40,856)
Production tax ( 2,705) ( 27,388)
Accretion and depreciation,
depletion, and amortization
of oil and gas properties ( 195) ( 12,589)
-------- ----------
Income from discontinued
operations $ 43,407 $ 451,425
======== ==========
Assets of the discontinued operations as of December 31, 2006 were as follows:
II-A
Partnership
-----------
Accounts receivable - oil and gas sales $ 214,721
Oil and gas properties 3,145,225
Accumulated depreciation, depletion,
and amortization of oil and gas
properties and valuation allowance ( 2,703,049)
Deferred charge 1,259
----------
Net assets held for sale $ 658,156
==========
-85-
II-B
Partnership
-----------
Accounts receivable - oil and gas sales $ 94,700
Oil and gas properties 1,845,626
Accumulated depreciation, depletion,
and amortization of oil and gas
properties and valuation allowance ( 1,727,855)
Deferred charge 244
----------
Net assets held for sale $ 212,715
==========
II-C
Partnership
-----------
Accounts receivable - oil and gas sales $ 14,225
Oil and gas properties 400,262
Accumulated depreciation, depletion,
and amortization of oil and gas
properties and valuation allowance ( 395,035)
Deferred charge 80
----------
Net assets held for sale $ 19,532
==========
II-D
Partnership
-----------
Accounts receivable - oil and gas sales $ 92,380
Oil and gas properties 684,245
Accumulated depreciation, depletion,
and amortization of oil and gas
properties and valuation allowance ( 641,059)
Deferred charge 1,004
----------
Net assets held for sale $ 136,570
==========
II-E
Partnership
-----------
Accounts receivable - oil and gas sales $ 135,616
Oil and gas properties 1,223,175
Accumulated depreciation, depletion,
and amortization of oil and gas
properties and valuation allowance ( 1,101,197)
Deferred charge 4,237
----------
Net assets held for sale $ 261,831
==========
-86-
II-F
Partnership
-----------
Accounts receivable - oil and gas sales $ 314,487
Oil and gas properties 2,804,558
Accumulated depreciation, depletion,
and amortization of oil and gas
properties and valuation allowance ( 2,513,333)
Deferred charge 8,112
----------
Net assets held for sale $ 613,824
==========
II-G
Partnership
-----------
Accounts receivable - oil and gas sales $ 667,021
Oil and gas properties 5,862,808
Accumulated depreciation, depletion,
and amortization of oil and gas
properties and valuation allowance ( 5,252,058)
Deferred charge 8,975
----------
Net assets held for sale $1,286,746
==========
II-H
Partnership
-----------
Accounts receivable - oil and gas sales $ 152,282
Oil and gas properties 1,336,598
Accumulated depreciation, depletion,
and amortization of oil and gas
properties and valuation allowance ( 1,195,305)
Deferred charge 3,942
----------
Net assets held for sale $ 297,517
==========
-87-
Liabilities of the discontinued operations as of December 31, 2006 were as
follows:
II-A
Partnership
-----------
Accounts payable $ 108,430
Accrued liability 3,419
Gas imbalance payable 3,129
----------
Net liabilities - held for sale $ 114,978
==========
II-B
Partnership
-----------
Accounts payable $ 66,132
Accrued liability 7,385
Gas imbalance payable 12,882
----------
Net liabilities - held for sale $ 86,399
==========
II-C
Partnership
-----------
Accounts payable $ 5,613
Accrued liability 2,769
----------
Net liabilities - held for sale $ 8,382
==========
II-D
Partnership
-----------
Accounts payable $ 16,084
----------
Net liabilities - held for sale $ 16,084
==========
-88-
II-E
Partnership
-----------
Accounts payable $ 41,347
Accrued liability 1,708
----------
Net liabilities - held for sale $ 43,055
==========
II-F
Partnership
-----------
Accounts payable $ 95,870
Accrued liability 5,144
----------
Net liabilities - held for sale $ 101,014
==========
II-G
Partnership
-----------
Accounts payable $ 200,930
Accrued liability 10,147
----------
Net liabilities - held for sale $ 211,077
==========
II-H
Partnership
-----------
Accounts payable $ 46,719
Accrued liability 2,514
----------
Net liabilities - held for sale $ 49,233
==========
-89-
4. PARTNERSHIP TERMINATION
-----------------------
The Partnerships would have terminated on December 31, 1999 in accordance
with the Partnership Agreements. 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 fourth two-year extension, thereby
extending the termination date to December 31, 2007. On February 5, 2007
the General Partner mailed a notice to the limited partners announcing
that (i) the Partnerships will terminate on December 31, 2007 and (ii) the
General Partner will liquidate the Partnerships' assets and satisfy their
liabilities as part of the winding-up process required by the Partnership
Agreements and state law.
The General Partner commenced liquidating the Partnerships' properties in
the second half of 2007, and hopes to have all or substantially all of the
properties sold prior to March 31, 2008. As part of the liquidation
process, the General Partner will actively negotiate for the sale of the
properties. These properties will be offered to all interested parties
through normal oil and gas property auction processes as well as
appropriate negotiated transactions. It is possible that affiliates of the
General Partner may participate in any public auction of these properties
and may be the successful high bidder on some or all of the properties.
The Partnerships will make routine cash distributions throughout the
remainder of 2007. Proceeds from the sale of Partnership properties may be
included in these normal cash distributions, or may be distributed to the
partners by way of special cash distributions. The General Partner will
analyze the level of cash held by the Partnerships throughout the
liquidation process and will retain sufficient cash to cover all final
expenses and liabilities of the Partnerships. After final settlement from
the sale of all properties, satisfaction of Partnership expenses and
liabilities, and calculation of any remaining assets and liabilities of
the Partnerships, any net cash will be paid as a final liquidating
distribution to all of the remaining partners in each Partnership. It is
expected that the final distribution will be made no later than December
31, 2008.
In order to ensure that the General Partner makes all liquidation
distributions to the correct parties based on the most accurate
information possible, the General Partner terminated the outstanding
repurchase offer as of March 9, 2007. In addition, the General Partner
ceased processing transfers among third parties which were not postmarked
on or before June 30, 2007 and received by the General Partner on or
before July 13, 2007. The General Partner will not impose these deadlines
on transfers between family members,
-90-
their trusts, IRA accounts, or similar related entities and transfers due
to death or divorce.
5. SUBSEQUENT EVENT
----------------
On July 11, 2007, the Partnerships sold their interests in a number of
producing properties to independent third parties, Samson Contour E&P,
LLC, an affiliate of the General Partner, and Samson Resources Company,
another affiliate of the General Partner, at a large public oil and gas
auction which resulted in proceeds of the following approximate dollar
amounts:
Proceeds (net of Fees)
Affiliates
of the
Independent General
Partnership Third Parties Partner Total
----------- ------------- ----------- ----------
II-A $3,021,000 $ 285,000 $3,306,000
II-B - 465,000 465,000
II-C 6,000 217,000 223,000
II-D 245,000 1,386,000 1,631,000
II-E 162,000 732,000 894,000
The sale resulted in a gain (loss) of the following approximate dollar
amounts:
Partnership Gain/(Loss)
----------- ------------
II-A $1,046,000
II-B ( 44,000)
II-C ( 59,000)
II-D ( 553,000)
II-E ( 215,000)
-91-
On August 8, 2007 the Partnerships sold their interests in a number of
producing properties to independent third parties and Samson Lone Star,
LLC, an affiliate of the General Partner, and Samson Resources Company,
another affiliate of the General Partner, at a large public oil and gas
auction which resulted in proceeds of the following approximate dollar
amounts:
Proceeds (net of fees)
Affiliates
of the
Independent General
Partnership Third Parties Partner Total
----------- ------------- ---------- ----------
II-A $2,014,000 $ 600,000 $2,614,000
II-B 1,715,000 249,000 1,964,000
II-C 747,000 100,000 847,000
II-D 1,234,000 1,000 1,235,000
II-E 2,521,000 350,000 2,871,000
II-F 3,399,000 937,000 4,336,000
II-G 7,227,000 2,081,000 9,308,000
II-H 1,622,000 433,000 2,055,000
The sale resulted in a gain (loss) of the following approximate dollar
amounts:
Partnership Gain/(Loss)
----------- ------------
II-A $ 216,000
II-B 322,000
II-C 117,000
II-D ( 41,000)
II-E 631,000
II-F 1,058,000
II-G 2,264,000
II-H 503,000
-92-
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.
PARTNERSHIP TERMINATION
- -----------------------
Pursuant to the terms of the partnership agreements for the Partnerships
(the "Partnership Agreements"), the Partnerships would have terminated on
December 31, 1999. 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 the fourth two-year extension period to December 31,
2007. On February 5, 2007, the General Partner mailed a notice to the
limited partners announcing that the Partnerships will terminate at the
end of their current term, December 31, 2007. The reader should refer to
Note 4 - Partnership Termination to the combined unaudited financial
statements included in Part I, Item 1 of this Quarterly Report on Form
10-Q for additional information regarding this matter.
-93-
GENERAL
- -------
The Partnerships are engaged in the business of owning interests in
producing oil and gas properties located in the continental United States.
The Partnerships may also engage to a limited extent in development
drilling on producing oil and gas properties as required for the prudent
management of the Partnerships.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
II-A July 22, 1987 $48,428,300
II-B October 14, 1987 36,171,900
II-C January 14, 1988 15,462,100
II-D May 10, 1988 31,487,800
II-E September 27, 1988 22,882,100
II-F January 5, 1989 17,140,000
II-G April 10, 1989 37,218,900
II-H May 17, 1989 9,171,100
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
No property sales occurred during the six months ended June 30, 2006 for
the Partnerships. On February 1, 2007, the Partnerships sold their
interests in a number of producing properties at a large public oil and
gas auction which resulted in proceeds of the following approximate dollar
amounts:
-94-
Proceeds
Partnership (net of fees)
----------- -------------
II-A $ 520,000
II-B 491,000
II-C 215,000
II-D 449,000
II-E 466,000
II-F 596,000
II-G 1,246,000
II-H 288,000
On May 9, 2007, the II-E, II-F, II-G, and II-H Partnerships sold their
interests in a number of producing properties at a large public oil and
gas auction which resulted in proceeds of the following approximate dollar
amounts:
Proceeds
Partnership (net of fees) Gain
----------- ------------- --------
II-E $ 244,000 $148,000
II-F 597,000 364,000
II-G 1,249,000 763,000
II-H 289,000 176,000
Net proceeds from operations less necessary operating capital are
distributed to the Limited Partners on a quarterly basis. The
Partnerships' ability to make cash distributions depends primarily upon
the level of available cash flow generated by the Partnerships' operating
activities and sale of oil and gas properties, which will be affected
(either positively or negatively) by many factors beyond the control of
the Partnerships, including the price of and demand for oil and gas and
other market and economic conditions. While the General Partner cannot
predict future pricing trends, it believes the working capital available
as of June 30, 2007 and the net revenue generated from future operations
and property sales will provide sufficient working capital to meet current
and future obligations.
Occasional expenditures for new wells or well recompletions, or workovers
may reduce or eliminate cash available for a particular quarterly cash
distribution.
The reader should refer to the discussion above under the heading
"Partnership Termination" for information regarding termination of the
Partnerships as of December 31, 2007.
-95-
CRITICAL ACCOUNTING POLICIES
- ----------------------------
The unaudited financial statements included in this Quarterly Report on
Form 10-Q reflect the combined accounts of each Geodyne Energy Income
Limited Partnership and the related Geodyne Energy Income Production
Partnership after the elimination of all inter-partnership transactions
and balances. These unaudited financial statements are presented on a
going concern basis as of December 31, 2006 and for the period January 1,
2007 through February 4, 2007 and the three and six months ended June 30,
2006. On February 5, 2007, the General Partner mailed a notice to the
limited partners announcing that the Partnerships will terminate at the
end of their current term, December 31, 2007. Consequently, the
Partnerships adopted the liquidation basis of accounting effective
February 5, 2007. The liquidation basis of accounting reports the net
assets of the Partnerships at their net realizable value. Adjustments were
made to reduce all balance sheet categories into one line, net assets of
partnership in liquidation, which is an estimate of the net fair value of
all partnership assets and liabilities. Cash, accounts receivable, and
accounts payable were valued at their historical cost, which approximates
fair value. Oil and gas properties were valued at their estimated net
sales price, which was estimated utilizing discounted cash flows based on
strip pricing as of June 30, 2007 at a discount rate of 10% for proved
developed producing reserves, 18% for proved developed non-producing
reserves and 20% for proved undeveloped reserves. An adjustment was made
to the discounted cash flows for the effects of gas balancing and asset
retirement obligations. A provision was also made to account for expenses
that will be incurred directly related to the sale of the oil and gas
properties. The allocation of the net assets of partnership in liquidation
to the General Partner and limited partners was calculated using the
current allocation of income and expenses, which may change if a
Partnership's distributions from the commencement of the property
investment period reach a yearly average equal to at least 12% of the
limited partners subscriptions.
Prior to the adoption of the liquidation basis of accounting, the
Partnerships followed the successful efforts method of accounting for
their oil and gas properties. Under the successful efforts method, the
Partnerships capitalized all property acquisition costs and development
costs incurred in connection with the further development of oil and gas
reserves. Property acquisition costs included 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
-96-
cost to the Partnerships of the properties acquired by the General Partner
was adjusted to reflect the net cash results of operations, including
interest incurred to finance the acquisition, for the period of time the
properties were 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 was computed on the unit-of-production
method through February 4, 2007. The Partnerships' calculation of
depreciation, depletion, and amortization included estimated dismantlement
and abandonment costs and estimated salvage value of the equipment. When
complete units of depreciable property were 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. On February 5, 2007, the Partnerships adopted the
liquidation basis of accounting and no longer calculates depreciation,
depletion, and amortization.
The Deferred Charge on the Combined Unaudited 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 Deferred
Charge and Accrued Liability are included as a component of the net assets
of partnership in liquidation. The reader should refer to Note 1 - Basis
of Presentation to the combined unaudited financial statements included in
Part I, Item 1 of this Quarterly Report on Form 10-Q for additional
information regarding this matter.
The Partnerships' oil and condensate production is sold, title passed, and
revenue recognized at or near the Partnerships' wells under short-term
purchase contracts at prevailing prices in accordance with arrangements
which are customary in the oil and gas industry. Sales of gas applicable
to the Partnerships' interest in producing oil and gas leases are recorded
as revenue when the gas is metered and title transferred pursuant to the
gas sales contracts covering the Partnerships' interest in gas reserves.
During such times as a Partnership's sales of gas exceed its pro rata
ownership in a well, such sales are recorded as revenues unless total
sales from the well have exceeded the Partnership's share of estimated
total gas reserves underlying the property, at which time such excess is
recorded as a liability. The rates per Mcf used to calculate this
liability are based on the average gas price 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
-97-
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. The gas imbalance payables are included as a component of the net
assets of partnership in liquidation. The reader should refer to Note 1 -
Basis of Presentation to the combined unaudited financial statements
included in Part I, Item 1 of this Quarterly Report on Form 10-Q for
additional information regarding this matter.
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. The
asset retirement obligations are included as a component of the net assets
of partnership in liquidation. The reader should refer to Note 1 - Basis
of Presentation to the combined unaudited financial statements included in
Part I, Item 1 of this Quarterly Report on Form 10-Q for additional
information regarding this matter.
NEW ACCOUNTING PRONOUNCEMENTS
- -----------------------------
In September 2006, the FASB issued FAS No. 157, "Fair Value
Measurements" (FAS No. 157). FAS No. 157 establishes a common
definition for fair value to be applied to US GAAP guidance requiring
use of fair value, establishes a framework for measuring fair value,
and expands the disclosure about such fair value measurements. FAS No.
157 is effective for fiscal years beginning after November 15, 2007.
The Partnerships are currently assessing the impact of FAS No. 157 on
its fair value of net assets of Partnership in liquidation and its
changes in net assets of Partnership in liquidation.
-98-
PROVED RESERVES AND NET PRESENT VALUE
- -------------------------------------
The process of estimating oil and gas reserves is complex, requiring
significant subjective decisions in the evaluation of available
geological, engineering, and economic data for each reservoir. The data
for a given reservoir may change substantially over time as a result of,
among other things, additional development activity, production history,
and viability of production under varying economic conditions;
consequently, it is reasonably possible that material revisions to
existing reserve estimates may occur in the future. Although every
reasonable effort has been made to ensure that these reserve estimates
represent the most accurate assessment possible, the significance of the
subjective decisions required and variances in available data for various
reservoirs make these estimates generally less precise than other
estimates presented in connection with financial statement disclosures.
The net present values of the Partnerships' reserves are included as a
component of the net assets of partnership in liquidation. The reader
should refer to Note 1 - Basis of Presentation to the combined unaudited
financial statements included in Part I, Item 1 of this Quarterly Report
on Form 10-Q for additional information regarding this matter.
The net present value of the Partnerships' reserves was estimated
utilizing discounted cash flows based on strip pricing as of June 30, 2007
at a discount rate of 10% for proved developed producing reserves, 18% for
proved developed non-producing reserves and 20% for proved undeveloped
reserves. An adjustment has been made to the discounted cash flows for the
effects of gas balancing and asset retirement obligations. A provision has
also been made to account for expenses that will be incurred directly
related to the sale of the oil and gas properties.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below.
The primary source of liquidity and Partnership cash distributions comes
from the net revenues generated from the sale of oil and gas produced from
the Partnerships' oil and gas properties. Recently, the sale of oil and
gas properties is a significant source of net revenues. The level of net
revenues is highly dependent upon the prices received for oil and gas
sales, which prices have historically been very volatile and may continue
to be so. Additionally, lower oil and natural gas prices may reduce
-99-
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;
* 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;
* Market expectations; and
* The effect of worldwide energy conservation.
It is not possible to predict the future direction of oil or natural gas
prices. 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 as either the receipt of
proceeds from property sales or the incursion of additional costs as a
result of well workovers, recompletions, new well drilling, and other
events.
In addition to pricing, the level of net revenues is 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 (either positive or negative)
made by the operators of the properties;
* Adjustments in ownership or rights to production in
accordance with agreements governing the operation or
ownership of the well (such as
-100-
adjustments that occur at payout or due to gas balancing);
* Completion of enhanced recovery projects which increase
production for the well; and
* Sales of properties.
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.
II-A PARTNERSHIP
THE PERIOD FROM JANUARY 1, 2007 TO FEBRUARY 4, 2007
Period from
January 1, to
February 4,
2007
-------------
Oil and gas sales $ 387,154
Oil and gas production expenses $ 153,561
Barrels produced 2,976
Mcf produced 42,980
Average price/Bbl $ 49.82
Average price/Mcf $ 5.56
Income and expenses for the II-A Partnership for the period from January 1
to February 4, 2007 are not comparable to the three and six months ended
June 30, 2006.
THE PERIOD FROM FEBRUARY 5, 2007 TO MARCH 31, 2007
Barrels produced 8,246
Mcf produced 89,619
Average price/Bbl $ 55.05
Average price/Mcf $ 6.64
Revenues from February 5, 2007 to March 31, 2007 were as follows:
Oil and gas sales $1,048,834
Interest income 9,401
----------
$1,058,235
==========
-101-
Operating expenses from February 5, 2007 to March 31, 2007 were as
follows:
Lease operating $ 215,476
Production tax 55,893
Accretion expense 7,105
General and administrative 124,150
----------
$ 402,624
==========
THE PERIOD FROM APRIL 1, 2007 TO JUNE 30, 2007
Barrels produced 12,844
Mcf produced 130,251
Average price/Bbl $ 61.28
Average price/Mcf $ 6.40
Revenues from April 1, 2007 to June 30, 2007 were as follows:
Oil and gas sales $1,620,794
Interest income 12,107
----------
$1,632,901
==========
Operating expenses from April 1, 2007 to June 30, 2007 were as follows:
Lease operating $ 391,871
Production tax 86,520
Accretion expense 10,597
General and administrative 155,137
----------
$ 644,125
==========
II-B PARTNERSHIP
THE PERIOD FROM JANUARY 1, 2007 TO FEBRUARY 4, 2007
Period from
January 1, to
February 4,
2007
-------------
Oil and gas sales $308,203
Oil and gas production expenses $121,407
Barrels produced 2,188
Mcf produced 38,078
Average price/Bbl $ 49.85
Average price/Mcf $ 5.23
-102-
Income and expenses for the II-B Partnership for the period from January 1
to February 4, 2007 are not comparable to the three and six months ended
June 30, 2006.
THE PERIOD FROM FEBRUARY 5, 2007 TO MARCH 31, 2007
Barrels produced 5,582
Mcf produced 69,440
Average price/Bbl $ 55.63
Average price/Mcf $ 6.67
Revenues from February 5, 2007 to March 31, 2007 were as follows:
Oil and gas sales $773,513
Interest income 6,415
--------
$779,928
========
Operating expenses from February 5, 2007 to March 31, 2007 were as
follows:
Lease operating $ 183,543
Production tax 41,661
Accretion expense 3,112
General and administrative 104,201
----------
$ 332,517
==========
THE PERIOD FROM APRIL 1, 2007 TO JUNE 30, 2007
Barrels produced 8,128
Mcf produced 105,118
Average price/Bbl $ 61.16
Average price/Mcf $ 6.02
Revenues from April 1, 2007 to June 30, 2007 were as follows:
Oil and gas sales $1,130,245
Interest income 8,010
----------
$1,138,255
==========
-103-
Operating expenses from April 1, 2007 to June 30, 2007 were as follows:
Lease operating $ 290,478
Production tax 60,803
Accretion expense 4,664
General and administrative 117,196
----------
$ 473,141
==========
II-C PARTNERSHIP
THE PERIOD FROM JANUARY 1, 2007 TO FEBRUARY 4, 2007
Period from
January 1, to
February 4,
2007
-------------
Oil and gas sales $ 166,144
Oil and gas production expenses $ 62,916
Barrels produced 964
Mcf produced 21,965
Average price/Bbl $ 50.25
Average price/Mcf $ 5.36
Income and expenses for the II-C Partnership for the period from January 1
to February 4, 2007 are not comparable to the three and six months ended
June 30, 2006.
THE PERIOD FROM FEBRUARY 5, 2007 TO MARCH 31, 2007
Barrels produced 1,848
Mcf produced 44,328
Average price/Bbl $ 55.64
Average price/Mcf $ 6.47
Revenues from February 5, 2007 to March 31, 2007 were as follows:
Oil and gas sales $389,555
Interest income 3,098
--------
$392,653
========
-104-
Operating expenses from February 5, 2007 to March 31, 2007 were as
follows:
Lease operating $ 80,945
Production tax 22,587
Accretion expense 1,183
General and administrative 57,406
--------
$162,121
========
THE PERIOD FROM APRIL 1, 2007 TO JUNE 30, 2007
Barrels produced 2,900
Mcf produced 65,469
Average price/Bbl $ 60.87
Average price/Mcf $ 6.37
Revenues from April 1, 2007 to June 30, 2007 were as follows:
Oil and gas sales $593,846
Interest income 3,766
Other income 1,044
--------
$598,656
========
Operating expenses from April 1, 2007 to June 30, 2007 were as follows:
Lease operating $123,047
Production tax 35,711
Accretion expense 1,777
General and administrative 53,122
--------
$213,657
========
II-D PARTNERSHIP
THE PERIOD FROM JANUARY 1, 2007 TO FEBRUARY 4, 2007
Period from
January 1, to
February 4,
2007
-------------
Oil and gas sales $338,044
Oil and gas production expenses $108,843
Barrels produced 1,064
Mcf produced 50,440
Average price/Bbl $ 49.06
Average price/Mcf $ 5.67
-105-
Income and expenses for the II-D Partnership for the period from January 1
to February 4, 2007 are not comparable to the three and six months ended
June 30, 2006.
THE PERIOD FROM FEBRUARY 5, 2007 TO MARCH 31, 2007
Barrels produced 1,514
Mcf produced 121,921
Average price/Bbl $ 49.39
Average price/Mcf $ 5.96
Revenues from February 5, 2007 to March 31, 2007 were as follows:
Oil and gas sales $801,698
Interest income 6,911
--------
$808,609
========
Operating expenses from February 5, 2007 to March 31, 2007 were as
follows:
Lease operating $172,729
Production tax 35,478
Accretion expense 3,732
General and administrative 89,826
--------
$301,765
========
THE PERIOD FROM APRIL 1, 2007 TO JUNE 30, 2007
Barrels produced 4,373
Mcf produced 153,499
Average price/Bbl $ 60.36
Average price/Mcf $ 5.65
Revenues from April 1, 2007 to June 30, 2007 were as follows:
Oil and gas sales $1,131,397
Interest income 9,038
Other income 10,956
----------
$1,151,391
==========
-106-
Operating expenses from April 1, 2007 to June 30, 2007 were as follows:
Lease operating $ 322,539
Production tax 66,185
Accretion expense 5,513
General and administrative 102,764
----------
$ 497,001
==========
II-E PARTNERSHIP
THE PERIOD FROM JANUARY 1, 2007 TO FEBRUARY 4, 2007
Period from
January 1, to
February 4,
2007
-------------
Oil and gas sales $157,754
Oil and gas production expenses $ 35,965
Barrels produced 373
Mcf produced 26,908
Average price/Bbl $ 49.92
Average price/Mcf $ 5.17
Income and expenses for the II-E Partnership for the period from January 1
to February 4, 2007 are not comparable to the three and six months ended
June 30, 2007.
THE PERIOD FROM FEBRUARY 5, 2007 TO MARCH 31, 2007
Barrels produced 1,742
Mcf produced 54,708
Average price/Bbl $ 54.17
Average price/Mcf $ 6.27
Revenues from February 5, 2007 to March 31, 2007 were as follows:
Oil and gas sales $437,194
Interest income 5,610
--------
$442,804
========
-107-
Operating expenses from February 5, 2007 to March 31, 2007 were as
follows:
Lease operating $113,639
Production tax 29,040
Accretion expense 1,324
General and administrative 80,072
--------
$224,075
========
THE PERIOD FROM APRIL 1, 2007 TO JUNE 30, 2007
Barrels produced 1,667
Mcf produced 63,108
Average price/Bbl $ 61.32
Average price/Mcf $ 6.34
Revenues from April 1, 2007 to June 30, 2007 were as follows:
Oil and gas sales $502,351
Interest income 4,947
Other income 646
--------
$507,944
========
Operating expenses from April 1, 2007 to June 30, 2007 were as follows:
Lease operating $ 48,035
Production tax 32,177
Accretion expense 2,002
General and administrative 76,080
--------
$158,294
========
II-F PARTNERSHIP
THE PERIOD FROM JANUARY 1, 2007 TO FEBRUARY 4, 2007
Period from
January 1, to
February 4,
2007
-------------
Oil and gas sales $103,138
Oil and gas production expenses $ 26,034
Barrels produced 254
Mcf produced 17,742
Average price/Bbl $ 48.80
Average price/Mcf $ 5.11
-108-
Income and expenses for the II-F Partnership for the period from January 1
to February 4, 2007 are not comparable to the three and six months ended
June 30, 2006.
THE PERIOD FROM FEBRUARY 5, 2007 TO MARCH 31, 2007
Barrels produced 2,958
Mcf produced 51,914
Average price/Bbl $ 52.94
Average price/Mcf $ 6.36
Revenues from February 5, 2007 to March 31, 2007 were as follows:
Oil and gas sales $487,008
Interest income 5,311
--------
$492,319
========
Operating expenses from February 5, 2007 to March 31, 2007 were as
follows:
Lease operating $100,020
Production tax 32,535
Accretion expense 1,478
General and administrative 67,689
--------
$201,722
========
THE PERIOD FROM APRIL 1, 2007 TO JUNE 30, 2007
Barrels produced 2,951
Mcf produced 71,048
Average price/Bbl $ 60.77
Average price/Mcf $ 6.51
Revenues from April 1, 2007 to June 30, 2007 were as follows:
Oil and gas sales $641,614
Interest income 7,419
Other income 1,580
--------
$650,613
========
-109-
Operating expenses from April 1, 2007 to June 30, 2007 were as follows:
Lease operating $ 34,591
Production tax 40,215
Accretion expense 2,200
General and administrative 60,377
--------
$137,383
========
II-G PARTNERSHIP
THE PERIOD FROM JANUARY 1, 2007 TO FEBRUARY 4, 2007
Period from
January 1, to
February 4,
2007
-------------
Oil and gas sales $222,554
Oil and gas production expenses $ 55,996
Barrels produced 560
Mcf produced 38,061
Average price/Bbl $ 48.81
Average price/Mcf $ 5.13
Income and expenses for the II-G Partnership for the period from January 1
to February 4, 2007 are not comparable to the three and six months ended
June 30, 2006.
THE PERIOD FROM FEBRUARY 5, 2007 TO MARCH 31, 2007
Barrels produced 6,168
Mcf produced 110,486
Average price/Bbl $ 52.90
Average price/Mcf $ 6.40
Revenues from February 5, 2007 to March 31, 2007 were as follows:
Oil and gas sales $1,033,196
Interest income 11,949
----------
$1,045,145
==========
Operating expenses from February 5, 2007 to March 31, 2007 were as
follows:
Lease operating $ 212,291
Production tax 69,585
Accretion expense 3,124
General and administrative 108,322
----------
$ 393,322
==========
-110-
THE PERIOD FROM APRIL 1, 2007 TO JUNE 30, 2007
Barrels produced 6,220
Mcf produced 151,261
Average price/Bbl $ 60.93
Average price/Mcf $ 6.51
Revenues from April 1, 2007 to June 30, 2007 were as follows:
Oil and gas sales $1,363,079
Interest income 16,112
Other income 3,304
----------
$1,382,495
==========
Operating expenses from April 1, 2007 to June 30, 2007 were as follows:
Lease operating $ 75,712
Production tax 85,984
Accretion expense 4,676
General and administrative 122,564
--------
$288,936
========
II-H PARTNERSHIP
THE PERIOD FROM JANUARY 1, 2007 TO FEBRUARY 4, 2007
Period from
January 1, to
February 4,
2007
-------------
Oil and gas sales $ 52,597
Oil and gas production expenses $ 13,484
Barrels produced 117
Mcf produced 9,127
Average price/Bbl $ 48.81
Average price/Mcf $ 5.14
Income and expenses for the II-H Partnership for the period from January 1
to February 4, 2007 are not comparable to the three and six months ended
June 30, 2006.
THE PERIOD FROM FEBRUARY 5, 2007 TO MARCH 31, 2007
Barrels produced 1,441
Mcf produced 26,571
Average price/Bbl $ 52.87
Average price/Mcf $ 6.43
-111-
Revenues from February 5, 2007 to March 31, 2007 were as follows:
Oil and gas sales $247,016
Interest income 3,019
--------
$250,035
========
Operating expenses from February 5, 2007 to March 31, 2007 were as
follows:
Lease operating $ 50,391
Production tax 16,786
Accretion expense 784
General and administrative 51,482
--------
$119,443
========
THE PERIOD FROM APRIL 1, 2007 TO JUNE 30, 2007
Barrels produced 1,478
Mcf produced 36,144
Average price/Bbl $ 60.48
Average price/Mcf $ 6.53
Revenues from April 1, 2007 to June 30, 2007 were as follows:
Oil and gas sales $325,448
Interest income 3,632
Other income 764
--------
$329,844
========
Operating expenses from April 1, 2007 to June 30, 2007 were as follows:
Lease operating $ 18,992
Production tax 20,816
Accretion expense 1,169
General and administrative 35,749
--------
$ 76,726
========
-112-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
The Partnerships do not hold any market risk sensitive instruments.
ITEM 4T. 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.
During the period covered by this Form 10-Q, there were no changes
in our internal control over financial reporting that have
materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.
-113-
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
A lawsuit styled Robert W. Scott, individually and as Managing Member of
R.W. Scott Investments, LLC v. Samson Resources Company, Case No.
C-01-385, was filed in the District Court of Sweetwater County, Wyoming on
June 29, 2001. The lawsuit seeks class action certification and alleges
that Samson deducted from its payments to royalty and overriding royalty
owners certain charges which were improper under the Wyoming royalty
payment statutes. A number of these royalty and overriding royalty
payments burden the interests of the II-A, II-C, and II-D Partnerships. In
February 2003, Samson made a supplemental payment to the royalty and
overriding royalty interest owners who were potential class members of
amounts which were then thought to have been improperly deducted plus
statutory interest thereon. The lawsuit also alleges that Samson's check
stubs did not fully comply with the Wyoming Royalty Payment Act.
On May 13, 2005 the trial court certified this lawsuit as a class action
and denied Samson's motion for summary judgment. On June 25, 2005 the
Wyoming Supreme Court denied Samson's request for it to review these
decisions. On April 20, 2007 Samson executed a formal Settlement Agreement
with plaintiffs which calls for an additional royalty payment of
$1,000,000. The Settlement Agreement has been preliminarily approved by
the Court, but is still subject to final Court approval. A hearing for
final Court approval is currently scheduled for September 10, 2007.
Plaintiffs' counsel, subject to Court approval, has allocated the
$1,000,000 among the various class members after deduction of litigation
costs and attorneys' fees. Following is the II-A, II-C, and II-D
Partnerships' share of this total settlement amount:
Partnership Amount
----------- -------
II-A $12,704
II-C 4,422
II-D 46,403
These amounts have been accrued for the period February 5 through June 30,
2007 and will be paid by these Partnerships within approximately ninety
days following the Court's final approval of the Settlement Agreement.
-114-
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.
-115-
31.15 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-H Partnership.
31.16 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-H Partnership.
32.1 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-A Partnership.
32.2 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-B Partnership.
32.3 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-C Partnership.
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 20, 2007 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: August 20, 2007 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
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INDEX TO EXHIBITS
-----------------
Exh.
No. Exhibit
- ---- -------
31.1 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-A.
31.2 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-A.
31.3 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-B.
31.4 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-B.
31.5 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-C.
31.6 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-C.
31.7 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-D.
31.8 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-D.
31.9 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-E.
31.10 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-E.
31.11 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-F.
31.12 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-F.
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31.13 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-G.
31.14 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-G.
31.15 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-H.
31.16 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-H.
32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-A.
32.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-B.
32.3 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-C.
32.4 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-D.
32.5 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-E.
32.6 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-F.
32.7 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-G.
32.8 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-H.
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