EXHIBIT 20.2
January 2, 2008
RE: NOTICE OF THE TERMINATION AND FINAL CASH DISTRIBUTIONS OF THE GEODYNE
INSTITUTIONAL/PENSION ENERGY INCOME PROGRAM P-8
Dear Geodyne Institutional/Pension Energy Income Program P-8 Limited Partner: As
stated in our Notice to you dated February 5, 2007, the Geodyne
Institutional/Pension Energy Income Program P-8 (the "Partnership") terminated
by its own terms on December 31, 2007. Thereafter, the Partnership will
liquidate as described in the February 5th notice and recent quarterly mailings.
As part of the liquidation, the Partnership will make a cash distribution on
February 15, 2008, which will include proceeds from normal operations and any
property sales completed during the October - December 2007 quarter. In early
2008, any remaining assets will be sold and liabilities will be satisfied and a
final liquidating payment will be made. This payment is expected to be made by
late April 2008.
The Schedule K-1 for the 2007 tax year will be mailed to you by early March
2008. The Partnership's final Schedule K-1 which will cover the 2008 tax year
will be sent to you by the end of 2008. Attached is additional information for
taxable accounts (such as non-IRA accounts).
If you have any questions about the termination and liquidation process, please
contact Geodyne Investor Services at 888-436-3963 or geodyne@samson.com.
We have appreciated the opportunity to be of service to you during your holding
of the Geodyne Partnership interest.
Sincerely,
Dennis Neill
President, Geodyne Resources, Inc.
General Partner
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Geodyne Programs
Tax Consequences - Sale of Oil and Gas Properties and
Dissolution of the Geodyne Programs
For the Years Ending December 31, 2007 and 2008
The sale of all remaining oil and gas properties of the Geodyne Programs and the
dissolution of the Geodyne Programs at the end of 2007 will have the following
tax consequences:
SALE OF PROPERTIES:
The oil and gas properties will be sold in 2007 and 2008 and the proceeds
received from these sales will be distributed to the limited partners (the
"Geodyne Partners") in the Geodyne Programs. The cash distributions themselves
will not generate taxable income or loss; however gain from the sale of the oil
and gas properties will be recognized.
GAIN FROM THE SALE OF OIL AND GAS PROPERTIES - The difference between
SALES PROCEEDS and TAX BASIS of properties will be recognized as GAIN BY THE
GEODYNE PROGRAMS and allocated to the partners based upon their ownership
percentage. The gain will either be ordinary gain or Section 1231 gain afforded
capital gain treatment. The maximum ordinary income tax rate for individuals is
35% and in general the maximum income tax rate for individuals from long-term
capital gains is 15%.
ORDINARY OR CAPITAL GAIN - The character of the gain will be reflected on
the partner's k-1 as either "Ordinary Gain" or "Section 1231 Gain".
GAIN will typically be reflected as ORDINARY INCOME up to the amount of
previously recognized depreciation and depletion expense. Any gain in excess of
previously claimed depreciation and depletion expense will be reflected as
Section 1231 gain and taxed as a long-term capital gain. While the actual
results will vary by each Geodyne Program, we anticipate that a SUBSTANTIAL
PORTION of the gain from the sale of the oil and gas properties will be
reflected as ORDINARY INCOME.
TAX IMPACT OF DISSOLUTION OF THE GEODYNE PROGRAMS:
PARTNER'S REMAINING BASIS - Each of the Geodyne Partners will have a remaining
basis in the Geodyne Programs after receipt of the final cash distribution and
final K-1 in either 2007 or 2008. This remaining basis will be treated as a
long-term capital loss and can offset other long-term capital gains. The excess
of capital losses over capital gains may be offset against the ordinary income
of an individual taxpayer, subject to an annual deduction limitation of $3,000.
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It is not possible for Geodyne to calculate the remaining basis of the Geodyne
Partners due to each partners separate elections and deductions such as
percentage depletion, intangible drilling costs, and adjustments pursuant to IRC
Sections 734(b) and 743(b), that would impact this calculation. Please consult
your tax advisor.
TAX REPORTING:
Income from 2007 operations and the gain on oil and gas properties sold during
2007 will be reflected on the 2007 K-1 which will be distributed by March 15,
2008.
If there are remaining oil and gas properties and operations in 2008 the income
from 2008 operations and the gain on sale of oil and gas properties sold during
2008 will be reflected on the 2008 K-1, which will be distributed by the end of
2008.
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