ITEM 1. BUSINESS
General
The Geodyne Energy Income Limited Partnership II-A (the "II-A Partnership"), Geodyne Energy Income Limited Partnership II-B (the "II-B Partnership"), Geodyne Energy Income Limited Partnership II-C (the "II-C Partnership"), Geodyne Energy Income Limited Partnership II-D (the "II-D Partnership"), Geodyne Energy Income Limited Partnership II-E (the "II-E Partnership"), Geodyne Energy Income Limited Partnership II-F (the "II-F Partnership"), Geodyne Energy Income Limited Partnership II-G (the "II-G Partnership"), and Geodyne Energy Income Limited Partnership II-H (the "II-H Partnership") (collectively, the "Partnerships") are limited partnerships formed under the Oklahoma Revised Uniform Limited Partnership Act. Each Partnership is composed of Geodyne Resources, Inc. ("Geodyne"), a Delaware corporation, as the general partner, and Geodyne Depositary Company, a Delaware corporation, as the sole initial limited partner and public investors as substitute limited partners (the "Limited Partners"). The Partnerships commenced operations on the dates set forth below.
Date of Partnership Activation ----------- -----------------
II-A July 22, 1987 II-B October 14, 1987 II-C January 14, 1988 II-D May 10, 1988 II-E September 27, 1988 II-F January 5, 1989 II-G April 10, 1989 II-H May 17, 1989
Immediately following activation, each Partnership invested as a general partner in a separate Oklahoma general partnership which actually conducts the Partnerships' operations. Geodyne serves as managing partner of such general partnerships. Unless the context indicates otherwise, all references to any single Partnership or all of the Partnerships in this Annual Report on Form 10-K405 (the "Annual Report") are references to the Partnership and its related general partnership, collectively. In addition, unless the context indicates otherwise, all references to the "General Partner" in this Annual Report are references to Geodyne as the general partner of the limited partnerships and as the managing partner of the related general partnerships.
The General Partner currently serves as general partner of 26 limited partnerships including the Partnerships. The General Partner is a wholly-owned subsidiary of Samson Investment Company. Samson Investment Company and its various corporate subsidiaries, including the General Partner (collectively "Samson"), are primarily engaged in the production and development of and exploration for oil and gas reserves and the acquisition and operation of producing properties. At December 31, 2001, Samson owned interests in approximately 14,000 oil and gas wells located in 19 states of the United States and the countries of Canada, Venezuela, and Russia. At December 31, 2001, Samson operated approximately 3,000 oil and gas wells located in 14 states of the United States, as well as Canada, Venezuela, and Russia.
The Partnerships are currently 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.
As limited partnerships, the Partnerships have no officers, directors, or employees. They rely instead on the personnel of the General Partner and Samson. As of February 15, 2002, Samson employed approximately 1,000 persons. No employees are covered by collective bargaining agreements, and management believes that Samson provides a sound employee relations environment. For information regarding the executive officers of the General Partner, see "Item 10. Directors and Executive Officers of the General Partner."
The General Partner's and the Partnerships' principal place of business is located at Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103, and their telephone number is (918) 583-1791, or (888) 436-3963 [(888) GEODYNE].
Pursuant to the terms of the partnership agreements for the Partnerships (the "Partnership Agreements") the Partnerships would have terminated on December 31, 2001. However, the Partnership Agreements provide that the General Partner may extend the term of each Partnership for up to five periods of two years each. The General Partner has extended the terms of the Partnerships for their first two-year extension thereby extending their termination date to December 31, 2003.
Funding
Although the Partnership Agreements permit the Partnerships to incur borrowings, the Partnerships' operations and expenses are currently funded out of each Partnership's revenues from oil and gas sales. The General Partner may, but is not required to, advance funds to a Partnership for the same purposes for which Partnership borrowings are authorized.
Principal Products Produced and Services Rendered
The Partnerships' sole business is the production of, and related incidental development of, oil and gas. The Partnerships do not refine or otherwise process crude oil and condensate. The Partnerships do not hold any patents, trademarks, licenses, or concessions and are not a party to any government contracts. The Partnerships have no backlog of orders and do not participate in research and development activities. The Partnerships are not presently encountering shortages of oilfield tubular goods, compressors, production material, or other equipment.
Competition and Marketing
The Partnerships' revenues, net income or loss, cash flows, carrying value of oil and gas properties, and amount of oil and gas which can be economically produced depend substantially upon the prevailing prices for oil and gas. Oil and gas prices (and consequently the Partnerships' profitability) depend on a number of factors which are beyond the control of the Partnerships. These factors include worldwide political instability and terrorist activities (especially in oil-producing regions), United Nations export embargoes, the supply and price of foreign imports of oil and gas, the level of consumer product demand (which can be heavily influenced by weather patterns), the level of domestic oil and gas production, government regulations and taxes, the price and availability of alternative fuels, the overall economic environment, and the availability and capacity of transportation and processing facilities. The effect of these factors on future oil and gas industry trends cannot be accurately predicted or anticipated. In addition, the domestic oil and gas industry is highly competitive, with a large number of companies and individuals engaged in the exploration and development of oil and gas properties. Predicting future prices is not possible. Concerning past trends, oil and gas prices in the United States have been highly volatile for many years.
Over the past ten years average yearly wellhead gas prices have generally been in the $1.50 to $2.50 per Mcf range. Due to unusual supply and demand circumstances gas prices in late 2000 and early 2001 rose to a level not seen since the early 1980s. Recent economic trends and the supply/demand ratio have caused natural gas prices to decline significantly. Substantially all of the Partnerships' gas reserves are being sold on the "spot market." Prices on the spot market are subject to wide seasonal and regional pricing fluctuations due to the highly competitive nature of the spot market. In addition, such spot market sales are generally short-term in nature and are dependent upon the obtaining of transportation services provided by pipelines. Spot prices for the Partnerships' gas decreased from approximately $6.03 per Mcf at December 31, 2000 to approximately $2.65 per Mcf at December 31, 2001. Such prices were on an MMBTU basis and differ from the prices actually received by the Partnerships due to transportation and marketing costs, BTU adjustments, and regional price and quality differences.
For the past ten years, average oil prices have generally been in the $16.00 to $24.00 per barrel range, but have been extremely volatile over the past three years. Due to global consumption and supply trends as well as a slowdown in Asian energy demand, oil prices in late 1997 and early 1998 reached historically low levels, dropping to as low as approximately $9.25 per barrel. The current oil price range between the mid teens and low twenties is somewhat dependent on production curtailment agreements among major oil producing nations. Prices for the Partnerships' oil decreased from approximately $27.52 per barrel at December 31, 2000 to approximately $16.75 per barrel at December 31, 2001.
Future prices for both oil and gas will likely be different from the prices in effect on December 31, 2001. Due to the many factors and uncertainties discussed above, it is impossible to accurately predict whether future oil and gas prices will (i) stabilize, (ii) increase, or (iii) decrease.
Significant Customers
The following customers accounted for ten percent or more of the Partnerships' oil and gas sales during the year ended December 31, 2001:
Partnership Purchaser Percentage - ----------- ---------------------------------- ---------- II-A El Paso Energy Marketing Company ("El Paso") 32.1% Amoco Production Company 12.7%
II-B El Paso 40.0%
II-C El Paso 38.3%
II-D El Paso 30.4% Vintage Petroleum, Inc. 12.4%
II-E El Paso 45.8%
II-F El Paso 22.5% ONEOK Gas Marketing Co. ("ONEOK") 10.5%
II-G El Paso 22.4% ONEOK 10.3%
II-H El Paso 22.3% ONEOK 10.0%
In the event of interruption of purchases by one or more of the Partnerships' significant customers or the cessation or material change in availability of open access transportation by the
Partnerships' pipeline transporters, the Partnerships may encounter difficulty in marketing their gas and in maintaining historic sales levels. Management does not expect any of its open access transporters to seek authorization to terminate their transportation services. Even if the services were terminated, management believes that alternatives would be available whereby the Partnerships would be able to continue to market their gas.
The Partnerships' principal customers for crude oil production are refiners and other companies which have pipeline facilities near the producing properties of the Partnerships. In the event pipeline facilities are not conveniently available to production areas, crude oil is usually trucked by purchasers to storage facilities.
Oil, Gas, and Environmental Control Regulations
Regulation of Production Operations -- The production of oil and gas is subject to extensive federal and state laws and regulations governing a wide variety of matters, including the drilling and spacing of wells, allowable rates of production, prevention of waste and pollution, and protection of the environment. In addition to the direct costs borne in complying with such regulations, operations and revenues may be impacted to the extent that certain regulations limit oil and gas production to below economic levels.
Regulation of Sales and Transportation of Oil and Gas -- Sales of crude oil and condensate are made by the Partnerships at market prices and are not subject to price controls. The sale of gas may be subject to both federal and state laws and regulations. The provisions of these laws and regulations are complex and affect all who produce, resell, transport, or purchase gas, including the Partnerships. Although virtually all of the Partnerships' gas production is not subject to price regulation, other regulations affect the availability of gas transportation services and the ability of gas consumers to continue to purchase or use gas at current levels. Accordingly, such regulations may have a material effect on the Partnerships' operations and projections of future oil and gas production and revenues.
Future Legislation -- Legislation affecting the oil and gas industry is under constant review for amendment or expansion. Because such laws and regulations are frequently amended or reinterpreted, management is unable to predict what additional energy legislation may be proposed or enacted or the future cost and impact of complying with existing or future regulations.
Regulation of the Environment -- The Partnerships' operations are subject to numerous laws and regulations governing the discharge of materials into the environment or otherwise relating to environmental protection. Compliance with such laws and regulations, together with any penalties resulting from noncompliance, may increase the cost of the Partnerships' operations or may affect the Partnerships' ability to timely complete existing or future activities. Management anticipates that various local, state, and federal environmental
control agencies will have an increasing impact on oil and gas operations.
Insurance Coverage
The Partnerships are subject to all of the risks inherent in the exploration for and production of oil and gas including blowouts, pollution, fires, and other casualties. The Partnerships maintain insurance coverage as is customary for entities of a similar size engaged in operations similar to that of the Partnerships, but losses can occur from uninsurable risks or in amounts in excess of existing insurance coverage. In particular, many types of pollution and contamination can exist, undiscovered, for long periods of time and can result in substantial environmental liabilities which are not insured. The occurrence of an event which is not fully covered by insurance could have a material adverse effect on the Partnerships' financial condition and results of operations.
ITEM 2.
ITEM 2. PROPERTIES
Well Statistics
The following table sets forth the number of productive wells of the Partnerships as of December 31, 2001.
Well Statistics(1) As of December 31, 2001
Number of Gross Wells(2) Number of Net Wells(3) ------------------------ ------------------------- P/ship Total Oil Gas Total Oil Gas ------ ----- --- --- ----- ----- ----- II-A 1,007 744 263 42.98 29.47 13.51 II-B 181 109 72 22.31 15.05 7.26 II-C 242 92 150 7.67 2.41 5.26 II-D 188 72 116 20.61 2.48 18.13 II-E 868 660 208 10.65 3.98 6.67 II-F 875 678 197 11.10 5.69 5.41 II-G 875 678 197 23.92 12.18 11.74 II-H 875 678 197 5.86 2.95 2.91
- --------------- (1) The designation of a well as an oil well or gas well is made by the General Partner based on the relative amount of oil and gas reserves for the well. Regardless of a well's oil or gas designation, it may produce oil, gas, or both oil and gas. (2) As used in this Annual Report, "gross well" refers to a well in which a working interest is owned; accordingly, the number of gross wells is the total number of wells in which a working interest is owned. (3) As used in this Annual Report, "net well" refers to the sum of the fractional working interests owned in gross wells. For
example, a 15% working interest in a well represents one gross well, but 0.15 net well.
Drilling Activities
During the year ended December 31, 2001, the Partnerships participated in the drilling activities described below.
Working P/ship Well Name County St. Interest Type Status - ------ ---------------- ------ --- -------- ---- --------- II-A Statex KCL 35X-13 Kern CA .03922 Oil Producing Statex KCL 46X-13 Kern CA .03922 Oil Producing Statex KCL 55X-13 Kern CA .03922 Gas Producing
II-B Statex KCL 35X-13 Kern CA .16171 Oil Producing Statex KCL 46X-13 Kern CA .16171 Oil Producing Statex KCL 55X-13 Kern CA .16171 Gas Producing
II-C Crusch A 1-3 Roosevelt MT .01094 Oil Producing Statex KCL 35X-13 Kern CA .02408 Oil Producing Statex KCL 46X-13 Kern CA .02408 Oil Producing Statex KCL 55X-13 Kern CA .02408 Gas Producing
II-D Crusch A 1-3 Roosevelt MT .11479 Oil Producing
During the year ended December 31, 2001, the Partnerships indirectly participated in the drilling activities described below. The Partnerships do not own working interests in these wells; therefore, they did not incur any costs associated with the drilling activity. Revenue P/ship Well Name County St. Interest Type Status - ------ ---------------- ------- --- -------- ---- ---------
II-A Hinz No. 1-5 Washita OK .00220 Gas Producing Reed No. 3-17 Custer OK .01725 Gas Producing Doile No. 2-35 Woodward OK .00622 Gas Producing
II-B Hinz No. 1-5 Washita OK .00360 Gas Producing
II-C Hinz No. 1-5 Washita OK .00154 Gas Producing Haley No. 2-31 Beckham OK .00850 Gas Producing
II-D Haley No. 2-31 Beckham OK .00977 Gas Producing Chesterville #15 Colorado TX .01358 Gas Producing Andy's Mesa #21 San Miguel CO .11413 Gas Producing
II-E Daberry No. 7-1 Wheeler TX .00110 Gas Producing Bryant No. 4-44 Wheeler TX .00124 Gas Producing Jackson Unit No. 8 Lea NM .00026 Gas Producing
Chilton B No. 1-23 Gaines TX .00026 Gas Shut-in
II-F Daberry No. 7-1 Wheeler TX .00269 Gas Producing Bryant No. 4-44 Wheeler TX .00304 Gas Producing Jackson Unit No. 8 Lea NM .00063 Gas Producing Chilton B No. 1-23 Gaines TX .00064 Gas Shut-in Kay Estes No. 6 Edwards TX .00617 Gas Producing
II-G Daberry No. 7-1 Wheeler TX .00562 Gas Producing Bryant No. 4-44 Wheeler TX .00636 Gas Producing Jackson Unit No. 8 Lea NM .00131 Gas Producing Chilton B No. 1-23 Gaines TX .00133 Gas Shut-in Kay Estes No. 6 Edwards TX .01290 Gas Producing
II-H Daberry No. 7-1 Wheeler TX .00130 Gas Producing Bryant No. 4-44 Wheeler TX .00147 Gas Producing Jackson Unit No. 8 Lea NM .00030 Gas Producing Chilton B No. 1-23 Gaines TX .00031 Gas Shut-in Kay Estes No. 6 Edwards TX .00298 Gas Producing
Oil and Gas Production, Revenue, and Price History
The following tables set forth certain historical information concerning the oil (including condensates) and gas production, net of all royalties, overriding royalties, and other third party interests, of the Partnerships, revenues attributable to such production, and certain price and cost information. As used in the tables, direct operating expenses include lease operating expenses and production taxes. In addition, gas production is converted to oil equivalents at the rate of six Mcf per barrel, representing the estimated relative energy content of gas and oil, which rate is not necessarily indicative of the relationship of oil and gas prices. The respective prices of oil and gas are affected by market and other factors in addition to relative energy content.
Net Production Data
II-A Partnership ----------------
Year Ended December 31, ---------------------------------------- 2001 2000 1999 ---------- ---------- ---------- Production: Oil (Bbls) 67,519 77,024 84,033 Gas (Mcf) 774,153 1,003,723 1,149,550
Oil and gas sales: Oil $1,619,453 $2,117,259 $1,365,308 Gas 3,192,939 3,601,631 2,397,623 --------- --------- --------- Total $4,812,392 $5,718,890 $3,762,931 ========= ========= ========= Total direct operating expenses $1,826,037 $1,418,970 $1,297,760 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 37.9% 24.8% 34.5%
Average sales price: Per barrel of oil $23.99 $27.49 $16.25 Per Mcf of gas 4.12 3.59 2.09
Direct operating expenses per equivalent Bbl of oil $ 9.29 $ 5.81 $ 4.71
Net Production Data
II-B Partnership ----------------
Year Ended December 31, ---------------------------------------- 2001 2000 1999 ---------- ---------- ---------- Production: Oil (Bbls) 49,375 52,155 56,749 Gas (Mcf) 570,423 707,543 870,203
Oil and gas sales: Oil $1,202,962 $1,431,328 $ 918,317 Gas 2,474,769 2,506,352 1,775,400 --------- --------- --------- Total $3,677,731 $3,937,680 $2,693,717 ========= ========= ========= Total direct operating expenses $1,053,461 $ 995,481 $ 960,136 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 28.6% 25.3% 35.6%
Average sales price: Per barrel of oil $24.36 $27.44 $16.18 Per Mcf of gas $ 4.34 3.54 2.04
Direct operating expenses per equivalent Bbl of oil $ 7.29 $ 5.85 $ 4.76
Net Production Data
II-C Partnership ----------------
Year Ended December 31, ---------------------------------------- 2001 2000 1999 ---------- ---------- ---------- Production: Oil (Bbls) 14,034 16,424 17,691 Gas (Mcf) 302,093 398,166 500,545
Oil and gas sales: Oil $ 340,796 $ 456,845 $ 295,047 Gas 1,299,602 1,399,195 1,001,421 --------- --------- --------- Total $1,640,398 $1,856,040 $1,296,468 ========= ========= ========= Total direct operating expenses $ 435,859 $ 404,470 $ 440,322 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 26.6% 21.8% 34.0%
Average sales price: Per barrel of oil $24.28 $27.82 $16.68 Per Mcf of gas 4.30 3.51 2.00
Direct operating expenses per equivalent Bbl of oil $ 6.77 $ 4.89 $ 4.35
Net Production Data
II-D Partnership ----------------
Year Ended December 31, ---------------------------------------- 2001 2000 1999 ---------- ---------- ---------- Production: Oil (Bbls) 18,970 32,648 33,890 Gas (Mcf) 712,930 836,567 1,010,194
Oil and gas sales: Oil $ 432,140 $ 909,025 $ 556,917 Gas 3,149,329 2,848,626 2,041,699 --------- --------- --------- Total $3,581,469 $3,757,651 $2,598,616 ========= ========= ========= Total direct operating expenses $1,197,090 $ 937,311 $1,106,783 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 33.4% 24.9% 42.6%
Average sales price: Per barrel of oil $22.78 $27.84 $16.43 Per Mcf of gas 4.42 3.41 2.02
Direct operating expenses per equivalent Bbl of oil $ 8.69 $ 5.45 $ 5.47
Net Production Data
II-E Partnership ----------------
Year Ended December 31, ---------------------------------------- 2001 2000 1999 ---------- ---------- ---------- Production: Oil (Bbls) 24,064 23,708 32,352 Gas (Mcf) 490,127 611,642 624,562
Oil and gas sales: Oil $ 585,290 $ 693,214 $ 565,758 Gas 1,975,920 2,067,671 1,244,967 --------- --------- --------- Total $2,561,210 $2,760,885 $1,810,725 ========= ========= ========= Total direct operating expenses $ 818,691 $ 579,065 $ 557,889 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 32.0% 21.0% 30.8%
Average sales price: Per barrel of oil $24.32 $29.24 $17.49 Per Mcf of gas 4.03 3.38 1.99
Direct operating expenses per equivalent Bbl of oil $ 7.74 $ 4.61 $ 4.09
Net Production Data
II-F Partnership ----------------
Year Ended December 31, ---------------------------------------- 2001 2000 1999 ---------- ---------- ---------- Production: Oil (Bbls) 30,965 25,175 34,859 Gas (Mcf) 465,214 480,967 569,382
Oil and gas sales: Oil $ 743,066 $ 708,378 $ 579,956 Gas 1,744,820 1,604,881 1,085,380 --------- --------- --------- Total $2,487,886 $2,313,259 $1,665,336 ========= ========= ========= Total direct operating expenses $ 503,882 $ 412,615 $ 451,347 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 20.3% 17.8% 27.1%
Average sales price: Per barrel of oil $24.00 $28.14 $16.64 Per Mcf of gas 3.75 3.34 1.91
Direct operating expenses per equivalent Bbl of oil $ 4.64 $ 3.92 $ 3.48
Net Production Data
II-G Partnership ----------------
Year Ended December 31, ---------------------------------------- 2001 2000 1999 ---------- ---------- ---------- Production: Oil (Bbls) 64,898 52,807 73,361 Gas (Mcf) 992,099 1,031,148 1,210,210
Oil and gas sales: Oil $1,557,522 $1,485,755 $1,216,334 Gas 3,727,487 3,429,820 2,311,265 --------- --------- --------- Total $5,285,009 $4,915,575 $3,527,599 ========= ========= ========= Total direct operating expenses $1,075,602 $ 885,336 $ 965,229 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 20.4% 18.0% 27.4%
Average sales price: Per barrel of oil $24.00 $28.14 $16.58 Per Mcf of gas 3.76 3.33 1.91
Direct operating expenses per equivalent Bbl of oil $ 4.67 $ 3.94 $ 3.51
Net Production Data
II-H Partnership ----------------
Year Ended December 31, ---------------------------------------- 2001 2000 1999 ---------- ---------- ---------- Production: Oil (Bbls) 15,054 12,297 17,055 Gas (Mcf) 237,600 245,490 287,724
Oil and gas sales: Oil $ 361,412 $ 345,882 $ 283,407 Gas 896,015 816,404 553,520 --------- --------- --------- Total $1,257,427 $1,162,286 $ 836,927 ========= ========= ========= Total direct operating expenses $ 260,618 $ 213,954 $ 232,658 ========= ========= =========
Direct operating expenses as a percentage of oil and gas sales 20.7% 18.4% 27.8%
Average sales price: Per barrel of oil $24.01 $28.13 $16.62 Per Mcf of gas 3.77 3.33 1.92
Direct operating expenses per equivalent Bbl of oil $ 4.77 $ 4.02 $ 3.58
Proved Reserves and Net Present Value
The following table sets forth each Partnership's estimated proved oil and gas reserves and net present value therefrom as of December 31, 2001. The schedule of quantities of proved oil and gas reserves was prepared by the General Partner in accordance with the rules prescribed by the Securities and Exchange Commission (the "SEC"). Certain reserve information was reviewed by Ryder Scott Company, L.P. ("Ryder Scott"), an independent petroleum engineering firm. As used throughout this Annual Report, "proved reserves" refers to those estimated quantities of crude oil, gas, and gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known oil and gas reservoirs under existing economic and operating conditions.
Net present value represents estimated future gross cash flow from the production and sale of proved reserves, net of estimated oil and gas production costs (including production taxes, ad valorem taxes, and operating expenses) and estimated future development costs,
discounted at 10% per annum. Net present value attributable to the Partnerships' proved reserves was calculated on the basis of current costs and prices at December 31, 2001. Such prices were not escalated except in certain circumstances where escalations were fixed and readily determinable in accordance with applicable contract provisions. Oil and gas prices at December 31, 2001 were substantially lower than the very high prices in effect on December 31, 2000. This decrease in oil and gas prices has caused the estimates of remaining economically recoverable reserves, as well as the values placed on said reserves, at December 31, 2001 to be significantly lower than such estimates and values at December 31, 2000. The prices used in calculating the net present value attributable to the Partnerships' proved reserves do not necessarily reflect market prices for oil and gas production subsequent to December 31, 2001. There can be no assurance that the prices used in calculating the net present value of the Partnerships' proved reserves at December 31, 2001 will actually be realized for such production.
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 near 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.
Proved Reserves and Net Present Values From Proved Reserves As of December 31, 2001 (1)
II-A Partnership: - ---------------- Estimated proved reserves: Gas (Mcf) 5,870,258 Oil and liquids (Bbls) 373,529 Net Present Value (discounted at 10% per annum) $ 8,039,055
II-B Partnership: - ---------------- Estimated proved reserves: Gas (Mcf) 4,283,056 Oil and liquids (Bbls) 284,386 Net Present Value (discounted at 10% per annum) $ 5,893,237
II-C Partnership: - ---------------- Estimated proved reserves: Gas (Mcf) 3,251,837 Oil and liquids (Bbls) 95,478 Net Present Value (discounted at 10% per annum) $ 3,983,242
II-D Partnership: - ---------------- Estimated proved reserves: Gas (Mcf) 9,391,858 Oil and liquids (Bbls) 192,838 Net Present Value (discounted at 10% per annum) $12,252,920
II-E Partnership: - ---------------- Estimated proved reserves: Gas (Mcf) 3,643,582 Oil and liquids (Bbls) 146,528 Net Present Value (discounted at 10% per annum) $ 4,806,139
II-F Partnership: - ---------------- Estimated proved reserves: Gas (Mcf) 3,008,911 Oil and liquids (Bbls) 218,525 Net Present Value (discounted at 10% per annum) $ 4,668,143
II-G Partnership: - ---------------- Estimated proved reserves: Gas (Mcf) 6,439,996 Oil and liquids (Bbls) 459,154 Net Present Value (discounted at 10% per annum) $ 9,899,151
II-H Partnership: - ---------------- Estimated proved reserves: Gas (Mcf) 1,555,333 Oil and liquids (Bbls) 107,290 Net Present Value (discounted at 10% per annum) $ 2,354,203
- ----------
(1) Includes certain gas balancing adjustments which cause the gas volumes and net present values to differ from the reserve reports prepared by the General Partner and reviewed by Ryder Scott.
No estimates of the proved reserves of the Partnerships comparable to those included herein have been included in reports to any federal agency other than the SEC. Additional information relating to the Partnerships' proved reserves is contained in Note 4 to the Partnerships' financial statements, included in Item 8 of this Annual Report.
Significant Properties
The following table sets forth the number and percent of each Partnership's total wells which are operated by affiliates of the Partnerships as of December 31, 2001:
Operated Wells ------------------------------------------- Partnership Number Percent ----------- ------ ------- II-A 62 6% II-B 35 18% II-C 45 16% II-D 28 13% II-E 36 1% II-F 48 2% II-G 48 2% II-H 48 2%
The following tables set forth certain well and reserve information as of December 31, 2001 for the basins in which the Partnerships own a significant amount of properties. The tables contain the following information for each significant basin: (i) the number of gross wells and net wells, (ii) the number of wells in which only a non-working interest is owned, (iii) the Partnership's total number of wells, (iv) the number and percentage of wells operated by the Partnership's affiliates, (v) estimated proved oil reserves, (vi) estimated proved gas reserves, and (vii) the present value (discounted at 10% per annum) of estimated future net cash flow.
The Anadarko Basin is located in western Oklahoma and the Texas panhandle, while the Southern Oklahoma Folded Belt Basin is located in southern Oklahoma. Southeast Utah and southwest Colorado contain the Paradox Basin. The Gulf Coast Basin is located in southern Louisiana and southeast Texas, while the Permian Basin straddles west Texas and southeast New Mexico. The Sacramento Basin is located in central California.
Title to Oil and Gas Properties
Management believes that the Partnerships have satisfactory title to their oil and gas properties. Record title to all of the Partnerships' properties is held by either the Partnerships or Geodyne Nominee Corporation, an affiliate of the General Partner.
Title to the Partnerships' properties is subject to customary royalty, overriding royalty, carried, working, and other similar interests and contractual arrangements customary in the oil and gas industry, to liens for current taxes not yet due, and to other encumbrances. Management believes that such burdens do not materially detract from the value of such properties or from the Partnerships' interest therein or materially interfere with their use in the operation of the Partnerships' business.
ITEM 3.
ITEM 3. LEGAL PROCEEDINGS
A lawsuit styled Xplor Energy Operating Co. v. The Newton Corp, et al., Case No. 99-04-01960-CV was filed on May 12, 1999 in the 284th Judicial District Court of Montgomery County, Texas against Samson. The Plaintiff had acquired at auction the interest of the II-A Partnership and other owners in the State 87-S1 well. The lawsuit alleged that Samson and others were the record owners of the lease when it expired and therefore were responsible for the costs of plugging and abandoning the well. Plaintiff sought to recover the Defendants' proportionate share of the costs to plug and abandon the well along with attorneys' fees and interest. The Defendants denied liability and trial was held on August 6, 2001. At the conclusion of the trial the Court awarded the Plaintiff $447,245.55. On January 15, 2002 the Defendants filed an appeal of the matter with the Court of Appeals, Fifth District of Texas, Dallas, Texas, Case No. 05-02-00070-CV. Samson, on behalf of the II-A Partnership and others, intends to vigorously pursue this appeal. In connection with this appeal, the Defendants filed an appellate bond in the amount of $491,970.10, which consists of $86,444.12 for damages, $360,801.43 for costs and attorneys' fees, and $44,724.55 for estimated post-judgment interest. The II-A Partnership had a working interest in the plugged well and its portion of the judgment and estimated post-judgment interest is approximately $74,000.
Except as described above, to the knowledge of the General Partner, neither the General Partner nor the Partnerships or their properties are subject to any litigation, the results of which would have a material effect on the Partnerships' or the General Partner's financial condition or operations.
ITEM 4.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF LIMITED PARTNERS
There were no matters submitted to a vote of the Limited Partners of any Partnership during 2001.
PART II.
ITEM 5.
ITEM 5. MARKET FOR UNITS AND RELATED LIMITED PARTNER MATTERS
As of February 1, 2002, the number of Units outstanding and the approximate number of Limited Partners of record in the Partnerships were as follows:
Number of Numbers of Partnership Units Limited Partners ----------- ---------- ----------------
II-A 484,283 3,577 II-B 361,719 2,258 II-C 154,621 1,182 II-D 314,878 2,497 II-E 228,821 1,881 II-F 171,400 1,483 II-G 372,189 2,228 II-H 91,711 1,072
Units were initially sold for a price of $100. The Units are not traded on any exchange and there is no public trading market for them. The General Partner is aware of certain transfers of Units between unrelated parties, some of which are facilitated by secondary trading firms and matching services. In addition, as further described below, the General Partner is aware of certain "4.9% tender offers" which have been made for the Units. The General Partner believes that the transfers between unrelated parties have been limited and sporadic in number and volume. Other than trades facilitated by certain secondary trading firms and matching services, no organized trading market for Units exists and none is expected to develop. Due to the nature of these transactions, the General Partner has no verifiable information regarding prices at which Units have been transferred. Further, a transferee may not become a substitute Limited Partner without the consent of the General Partner.
Pursuant to the terms of the Partnership Agreements, the General Partner is obligated to annually issue a repurchase offer which is based on the estimated future net revenues from the Partnerships' reserves and is calculated pursuant to the terms of the Partnership Agreements. Such repurchase offer is recalculated monthly in order to reflect cash distributions to the Limited Partners and extraordinary events. The following table sets forth the General Partner's repurchase offer per Unit as of the periods indicated. For purposes of this Annual Report, a Unit represents an initial subscription of $100 to the Partnership.
Repurchase Offer Prices -----------------------
2000 2001 2002 ------------------------ ------------------------ ---- 1st 2nd 3rd 4th 1st 2nd 3rd 4th 1st P/ship Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. - ------ ---- ---- ---- ---- ---- ---- ---- ---- ----
II-A $11 $10 $17 $15 $13 $11 $18 $16 $16 II-B 10 9 17 14 12 11 17 16 15 II-C 14 13 22 20 17 15 23 22 21 II-D 15 14 24 22 18 15 25 23 23 II-E 13 12 18 15 13 10 17 15 15 II-F 17 16 22 19 17 14 24 22 20 II-G 17 15 21 19 16 13 23 21 19 II-H 17 15 21 18 16 13 23 21 19
In addition to this repurchase offer, some of the Partnerships have been subject to "4.9% tender offers" from several third parties. The General Partner does not know the terms of these offers or the prices received by the Limited Partners who accepted these offers.
Cash Distributions
Cash distributions are primarily dependent upon a Partnership's cash receipts from the sale of oil and gas production and cash requirements of the Partnership. Distributable cash is determined by the General Partner at the end of each calendar quarter and distributed to the Limited Partners within 45 days after the end of the quarter. Distributions are restricted to cash on hand less amounts required to be retained out of such cash as determined in the sole judgment of the General Partner to pay costs, expenses, or other Partnership obligations whether accrued or anticipated to accrue. In certain instances, the General Partner may not distribute the full amount of cash receipts which might otherwise be available for distribution in an effort to equalize or stabilize the amounts of quarterly distributions. Any available amounts not distributed are invested and the interest or income thereon is for the accounts of the Limited Partners.
The following is a summary of cash distributions paid to the Limited Partners during 2000 and 2001 and the first quarter of 2002.
Cash Distributions ------------------
----------------------------------------------------- 1st 2nd 3rd 4th P/ship Qtr. Qtr. Qtr. Qtr. - ------ -------- --------- --------- ---------
II-A $1.25 $1.09 $1.40 $1.96 II-B .97 1.02 1.36 2.41 II-C 1.20 1.24 1.44 2.02 II-D 1.41 1.23 1.24 1.71 II-E 1.25 .76 1.76 2.75 II-F 1.54 1.69 1.76 2.50 II-G 1.57 1.73 1.73 2.44 II-H 1.41 1.64 1.74 2.46
2001 2002 --------------------------------------------------- --------- 1st 2nd 3rd 4th 1st P/ship Qtr. Qtr. Qtr. Qtr. Qtr. - ------ -------- ---------- ---------- ---------- ---------
II-A $2.02 $2.02 $2.00 $1.37 $ .66 II-B 1.93 1.75 1.95 0.78 .60 II-C 2.55 2.39 2.43 1.49 .57 II-D 4.20 2.67 2.72 1.32 .25 II-E 2.14 2.86 2.47 1.35 .67 II-F 2.53 3.22 3.39 1.95 1.57 II-G 2.47 3.18 3.31 2.10 1.63 II-H 2.46 2.92 3.17 1.80 1.44
ITEM 6.
ITEM 6. SELECTED FINANCIAL DATA
The following tables present selected financial data for the Partnerships. This data should be read in conjunction with the financial statements of the Partnerships, and the respective notes thereto, included elsewhere in this Annual Report. See "Item 8. Financial Statements and Supplementary Data."
ITEM 7.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Use of Forward-Looking Statements and Estimates
This Annual 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 Annual 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, or otherwise indicated.
General Discussion
The following general discussion should be read in conjunction with the analysis of results of operations provided below. The Partnerships' revenues, net income or loss, cash flows, carrying value of oil and gas properties, and amount of oil and gas which can be economically produced depend substantially upon the prevailing prices for oil and gas. Oil and gas prices (and consequently the Partnerships' profitability) depend on a number of factors which are beyond the control of the Partnerships. These factors include worldwide political instability and terrorist activities (especially in oil-producing regions), United Nations export embargoes, the supply and price of foreign imports of oil and gas, the level of consumer product demand (which can be heavily influenced by weather patterns), the level of domestic oil and gas production, government regulations and taxes, the price and availability of alternative fuels, the overall economic environment, and the availability and capacity of transportation and processing facilities. The effect of these
factors on future oil and gas industry trends cannot be accurately predicted or anticipated. In addition, the domestic oil and gas industry is highly competitive, with a large number of companies and individuals engaged in the exploration and development of oil and gas properties. Predicting future prices is not possible. Concerning past trends, oil and gas prices in the United States have been highly volatile for many years.
Over the past ten years average yearly wellhead gas prices have generally been in the $1.50 to $2.50 per Mcf range. Due to unusual supply and demand circumstances gas prices in late 2000 and early 2001 rose to a level not seen since the early 1980s. Recent economic trends and the supply/demand ratio have caused natural gas prices to decline significantly. Substantially all of the Partnerships' gas reserves are being sold on the "spot market." Prices on the spot market are subject to wide seasonal and regional pricing fluctuations due to the highly competitive nature of the spot market. In addition, such spot market sales are generally short-term in nature and are dependent upon the obtaining of transportation services provided by pipelines. Spot prices for the Partnerships' gas decreased from approximately $6.03 per Mcf at December 31, 2000 to approximately $2.65 per Mcf at December 31, 2001. Such prices were on an MMBTU basis and differ from the prices actually received by the Partnerships due to transportation and marketing costs, BTU adjustments, and regional price and quality differences.
For the past ten years, average oil prices have generally been in the $16.00 to $24.00 per barrel range, but have been extremely volatile over the past three years. Due to global consumption and supply trends as well as a slowdown in Asian energy demand, oil prices in late 1997 and early 1998 reached historically low levels, dropping to as low as approximately $9.25 per barrel. The current oil price range between the mid teens and low twenties is somewhat dependent on production curtailment agreements among major oil producing nations. Prices for the Partnerships' oil decreased from approximately $27.52 per barrel at December 31, 2000 to approximately $16.75 per barrel at December 31, 2001.
Future prices for both oil and gas will likely be different from the prices in effect on December 31, 2001. Due to the many factors and uncertainties discussed above, it is impossible to accurately predict whether future oil and gas prices will (i) stabilize, (ii) increase, or (iii) decrease.
As discussed in the "Results of Operations" section below, volumes of oil and gas sold also significantly affect the Partnerships' revenues. Oil and gas wells generally produce the most oil or gas in the earlier years of their lives and, as production continues, the rate of production naturally declines. At some point, production physically ceases or becomes no longer economic. The Partnerships are not acquiring additional oil and gas properties, and the existing properties are not experiencing
significant additional production through drilling or other capital projects. Therefore, volumes of oil and gas produced naturally decline from year to year. While it is difficult for management to predict future production from these properties, it is likely that this general trend of declining production will continue.
Despite this general trend of declining production, several factors can cause the volumes of oil and gas sold to increase or decrease at an even greater rate over a given period. These factors include, but are not limited to, (i) geophysical conditions which cause an acceleration of the decline in production, (ii) the shutting in of wells (or the opening of previously shut-in wells) due to low oil and gas prices, mechanical difficulties, loss of a market or transportation, or performance of workovers, recompletions, or other operations in the well, (iii) prior period volume adjustments (either positive or negative) made by purchasers of the production, (iv) ownership adjustments in accordance with agreements governing the operation or ownership of the well (such as adjustments that occur at payout), and (v) completion of enhanced recovery projects which increase production for the well. Many of these factors are very significant as related to a single well or as related to many wells over a short period of time. However, due to the large number of wells owned by the Partnerships, these factors are generally not material as compared to the normal decline in production experienced on all remaining wells.
Results of Operations
An analysis of the change in net oil and gas operations (oil and gas sales, less lease operating expenses and production taxes), is presented in the tables following "Results of Operations" under the heading "Average Sales Prices, Production Volumes, and Average Production Costs." Following is a discussion of each Partnership's results of operations for the year ended December 31, 2001 as compared to the year ended December 31, 2000 and for the year ended December 31, 2000 as compared to the year ended December 31, 1999.
II-A Partnership ----------------
Year Ended December 31, 2001 Compared to Year Ended December 31, 2000 --------------------------------------
Total oil and gas sales decreased $906,498 (15.9%) in 2001 as compared to 2000. Of this decrease, approximately $261,000 and $824,000, respectively, were related to decreases in volumes of oil and gas sold and approximately $236,000 was related to a
decrease in the average price of oil sold. These decreases were partially offset by an increase of approximately $415,000 related to an increase in the average price of gas sold. Volumes of oil and gas sold decreased 9,505 barrels and 229,570 Mcf, respectively, in 2001 as compared to 2000. The decrease in volumes of oil sold was primarily due to normal declines in production. The decrease in volumes of gas sold was primarily due to (i) a negative prior period gas balancing adjustment on one significant well during 2001, (ii) a positive prior period volume adjustment made by the purchaser on another significant well during 2000, and (iii) normal declines in production. Average oil prices decreased to $23.99 per barrel in 2001 from $27.49 per barrel in 2000. Average gas prices increased to $4.12 per Mcf in 2001 from $3.59 per Mcf in 2000.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $407,067 (28.7%) in 2001 as compared to 2000. This increase was primarily due to (i) a charge of approximately $74,000 accrued for payment of a judgment related to plugging liabilities, which judgment is currently under appeal, (ii) workover expenses incurred on several wells during 2001, and (iii) positive prior period lease operating expense adjustments made by the operators on several other wells during 2001. These increases were partially offset by a decrease in lease operating expenses associated with the decreases in volumes of oil and gas sold. As a percentage of oil and gas sales, these expenses increased to 37.9% in 2001 from 24.8% in 2000. This percentage increase was primarily due to the dollar increase in oil and gas production expenses and the decrease in the average price of oil sold.
Depreciation, depletion, and amortization of oil and gas properties decreased $13,241 (1.7%) in 2001 as compared to 2000. This decrease was primarily due to the decreases in volumes of oil and gas sold. This decrease was partially offset by two significant wells being fully depleted in 2001 due to the lack of remaining economically recoverable reserves. As a percentage of oil and gas sales, this expense increased to 16.1% in 2001 from 13.7% in 2000. This percentage increase was primarily due to the decrease in the average price of oil sold.
General and administrative expenses decreased $23,520 (4.1%) in 2001 as compared to 2000. As a percentage of oil and gas sales, these expenses increased to 11.4% in 2001 from 10.0% in 2000. This percentage increase was primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through December 31, 2001 totaling $54,349,357 or 112.23% of Limited Partners' capital contributions.
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 --------------------------------------
Total oil and gas sales increased $1,955,959 (52.0%) in 2000 as compared to 1999. Of this increase, approximately $866,000 and $1,508,000, respectively, were related to increases in the average prices of oil and gas sold. These increases were partially offset by a decrease of approximately $304,000 related to a decrease in volumes of gas sold. Volumes of oil and gas sold decreased 7,009 barrels and 145,827 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of gas sold was primarily due to (i) a positive prior period volume adjustment made by the purchaser on one significant well during 1999, (ii) the shutting-in of another significant well during 2000 due to low well pressure, and (iii) normal declines in production. Average oil and gas prices increased to $27.49 per barrel and $3.59 per Mcf, respectively, in 2000 from $16.25 per barrel and $2.09 per Mcf, respectively, in 1999.
The II-A Partnership recognized an insurance settlement in the amount of $202,500 during 1999. No similar settlements occurred during 2000.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $121,210 (9.3%) in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 24.8% in 2000 from 34.5% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties increased $185,917 (31.0%) in 2000 as compared to 1999. This increase was primarily due to one significant well being fully depleted in 2000 due to the lack of remaining economically recoverable reserves, which increase was partially offset by the decreases in volumes of oil and gas sold. As a percentage of oil and gas sales, this expense decreased to 13.7% in 2000 from 15.9% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 10.0% in 2000 from 15.2% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
II-B Partnership ----------------
Year Ended December 31, 2001 Compared to Year Ended December 31, 2000 --------------------------------------
Total oil and gas sales decreased $259,949 (6.6%) in 2001 as compared to 2000. Of this decrease, approximately $76,000 and $486,000, respectively, were related to decreases in volumes of oil and gas sold and approximately $152,000 was related to a decrease in the average price of oil sold. These decreases were partially offset by an increase of approximately $454,000 related to an increase in the average price of gas sold. Volumes of oil and gas sold decreased 2,780 barrels and 137,120 Mcf, respectively, in 2001 as compared to 2000. The decrease in volumes of oil sold was primarily due to (i) the sale of several wells during mid 2000 and (ii) normal declines in production. These decreases were partially offset by (i) the successful completion of three new wells during early 2001 and (ii) a positive prior period volume adjustment made by the operator on one significant well during 2001. The decrease in volumes of gas sold was primarily due to (i) the shutting-in of two significant wells during 2001 in order to perform repairs and maintenance, (ii) the shutting-in of another significant well during 2001 due to low well pressure, and (iii) normal declines in production. Average oil prices decreased to $24.36 per barrel in 2001 from $27.44 per barrel in 2000. Average gas prices increased to $4.34 per Mcf in 2001 from $3.54 per Mcf in 2000.
As discussed in "Liquidity and Capital Resources" below, the II-B Partnership sold certain oil and gas properties during 2001 and recognized a $1,187 gain on such sales. Sales of oil and gas properties during 2000 resulted in the II-B Partnership recognizing similar gains of $248,993.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $57,980 (5.8%) in 2001 as compared to 2000. This increase was primarily due to (i) positive prior period lease operating expense adjustments made by the operators on several wells during 2001 and (ii) workover expenses incurred on several wells during 2001. These increases were partially offset by (i) a decrease in lease operating expenses associated with the decreases in volumes of oil and gas sold and (ii) the sale of several wells during mid 2000. As a percentage of oil and gas sales, these expenses increased to 28.6% in 2001 from 25.3% in 2000. This percentage increase was primarily due to the decrease in the average price of oil sold and the dollar increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties decreased $586,555 (74.4%) in 2001 as compared to 2000. This decrease was primarily due to (i) one significant well being fully depleted in 2000 due to the lack of remaining economically recoverable reserves and (ii) the decreases in volumes of oil and gas sold. As a percentage of oil and gas sales, this expense decreased to 5.5% in 2001 from 20.0% in 2000. This percentage decrease was primarily due to the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses decreased $13,831 (3.2%) in 2001 as compared to 2000. As a percentage of oil and gas sales, these expenses increased to 11.3% in 2001 from 10.9% in 2000.
The Limited Partners have received cash distributions through December 31, 2001 totaling $39,324,916 or 108.72% of the Limited Partners' capital contributions.
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 --------------------------------------
Total oil and gas sales increased $1,243,963 (46.2%) in 2000 as compared to 1999. Of this increase, approximately $587,000 and $1,063,000, respectively, were related to increases in the average prices of oil and gas sold. These increases were partially offset by approximately $332,000 related to a decrease in volumes of gas sold. Volumes of oil and gas sold decreased 4,594 barrels and 162,660 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of gas sold was primarily due to (i) a positive prior period volume adjustment made by the purchaser on one significant well during 1999, (ii) the shutting-in of one significant well during 2000 due to low well pressure, and (iii) normal declines in production. Average oil and gas prices increased to $27.44 per barrel and $3.54 per Mcf, respectively, in 2000 from $16.18 per barrel and $2.04 per Mcf, respectively, in 1999.
As discussed in "Liquidity and Capital Resources" below, the II-B Partnership sold certain oil and gas properties during 2000 and recognized a $248,993 gain on such sales. Sales of oil and gas properties during 1999 resulted in the II-B Partnership recognizing similar gains of $21,562.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $35,345 (3.7%) in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 25.3% in 2000 from 35.6% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties increased $449,801 (133.0%) in 2000 as compared to 1999. This increase was primarily due to one significant well being fully depleted in 2000 due to the lack of remaining economically recoverable reserves, which increase was partially offset by the decreases in volumes of oil and gas sold. As a percentage of oil and gas sales, this expense increased to 20.0% in 2000 from 12.6% in 1999. This percentage increase was primarily due to the dollar increase in depreciation, depletion, and amortization.
General and administrative expenses remained relatively constant in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 10.9% in 2000 from 15.8% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
II-C Partnership ----------------
Year Ended December 31, 2001 Compared to Year Ended December 31, 2000 --------------------------------------
Total oil and gas sales decreased $215,642 (11.6%) in 2001 as compared to 2000. Of this decrease, approximately $66,000 and $338,000, respectively, were related to decreases in volumes of oil and gas sold and approximately $50,000 was related to a decrease in the average price of oil sold. These decreases were partially offset by an increase of approximately $238,000 related to an increase in the average price of gas sold. Volumes of oil and gas sold decreased 2,390 barrels and 96,073 Mcf, respectively, in 2001 as compared to 2000. The decrease in volumes of oil sold was primarily due to (i) the sale of several wells during mid 2000 and (ii) normal declines in production. The decrease in volumes of gas sold was primarily due to (i) negative gas balancing adjustments on two significant wells during 2001, (ii) a positive prior period volume adjustment made by the purchaser on another significant well during 2000, and (iii) normal declines in production. Average oil prices decreased to $24.28 per barrel in 2001 from $27.82 per barrel in 2000. Average gas prices increased to $4.30 per Mcf in 2001 from $3.51 per Mcf in 2000.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $31,389 (7.8%) in 2001 as compared to 2000. As a percentage of oil and gas sales, these expenses increased to 26.6% in 2001 from 21.8% in 2000. This percentage increase was primarily due to the decrease in the average price of oil sold and the dollar increase of oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties decreased $246,416 (70.3%) in 2001 as compared to
2000. This decrease was primarily due to (i) one significant well being fully depleted during 2000 due to the lack of remaining economically recoverable reserves and (ii) the decreases in volumes of oil and gas sold. As a percentage of oil and gas sales, this expense decreased to 6.4% in 2001 from 18.9% in 2000. This percentage decrease was primarily due to the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $2,951 (1.6%) in 2001 as compared to 2000. As a percentage of oil and gas sales, these expenses increased to 11.5% in 2001 from 10.0% in 2000. This percentage increase was primarily due to the decrease in oil and gas sales.
The Limited Partners have received cash distributions through December 31, 2001 totaling $18,173,686 or 117.54% of the Limited Partners' capital contributions.
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 --------------------------------------
Total oil and gas sales increased $559,572 (43.2%) in 2000 as compared to 1999. Of this increase, approximately $183,000 and $603,000, respectively, were related to increases in the average prices of oil and gas sold. These increases were partially offset by a decrease of approximately $205,000 related to a decrease in volumes of gas sold. Volumes of oil and gas sold decreased 1,267 barrels and 102,379 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of gas sold was primarily due to (i) a positive prior period volume adjustment made by the purchaser on one significant well during 1999, (ii) the shutting-in of one significant well during 2000 due to low well pressure, and (iii) a negative prior period volume adjustment made by the operator on another significant well during 2000. Average oil and gas prices increased to $27.82 per barrel and $3.51 per Mcf, respectively, in 2000 from $16.68 per barrel and $2.00 per Mcf, respectively, in 1999.
Oil and gas production expenses (including lease operating expenses and production taxes) decreased $35,852 (8.1%) in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 21.8% in 2000 from 34.0% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties increased $170,658 (94.8%) in 2000 as compared to 1999. This increase was primarily due to one significant well being fully depleted during 2000 due to the lack of economically recoverable reserves, which increase was partially offset by the decreases in volumes of oil and gas sold. As a percentage of
oil and gas sales, this expense increased to 18.9% in 2000 from 13.9% in 1999. This percentage increase was primarily due to the dollar increase in depreciation, depletion, and amortization.
General and administrative expenses remained relatively constant in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 10.0% in 2000 from 14.2% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
II-D Partnership ----------------
Year Ended December 31, 2001 Compared to Year Ended December 31, 2000 --------------------------------------
Total oil and gas sales decreased $176,182 (4.7%) in 2001 as compared to 2000. Of this decrease, approximately $381,000 and $421,000, respectively, were related to decreases in volumes of oil and gas sold and approximately $96,000 was related to a decrease in the average price of oil sold. These decreases were partially offset by an increase of approximately $722,000 related to an increase in the average price of gas sold. Volumes of oil and gas sold decreased 13,678 barrels and 123,637 Mcf, respectively, in 2001 as compared to 2000. The decrease in volumes of oil sold was primarily due to (i) the sale of several wells during 2000 and (ii) the shutting-in of one significant well in order to perform repairs during 2001. The decrease in volumes of gas sold was primarily due to (i) negative gas balancing adjustments on two significant wells during 2001, (ii) the shutting-in of two other significant wells in order to perform repairs during 2001, and (iii) normal declines in production. These decreases were partially offset by (i) the successful completion of a new well during late 2000, (ii) negative prior period volume adjustments on two significant wells during 2000, and (iii) the II-D Partnership receiving an increased percentage of sales on another significant well during 2001 due to gas balancing. As of the date of this Annual Report, management expects the gas balancing adjustment to continue for the foreseeable future, thereby continuing to contribute to an increase in volumes of gas produced for the II-D Partnership. Average oil prices decreased to $22.78 per barrel in 2001 from $27.84 per barrel in 2000. Average gas prices increased to $4.42 per Mcf in 2001 from $3.41 per Mcf in 2000.
As discussed in "Liquidity and Capital Resources" below, the II-D Partnership sold certain oil and gas properties during 2001 and recognized a $112,686 gain on such sales. Sales of oil and gas properties during 2000 resulted in the II-D Partnership recognizing similar gains of $514,114.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $259,779 (27.7%) in 2001
as compared to 2000. This increase was primarily due to (i) workover expenses incurred on several wells during 2001, (ii) a one-time litigation expense and settlement payment incurred in connection with a plugged well, and (iii) a negative prior period lease operating expense adjustment made by the operator on one significant well during 2000. These increases were partially offset by (i) a positive prior period lease operating expense adjustment made by the operator on one significant well during 2000, (ii) a negative prior period lease operating expense adjustment made by the operator on another significant well during 2001, and (iii) a decrease in lease operating expenses associated with the decreases in volumes of oil and gas sold. As a percentage of oil and gas sales, these expenses increased to 33.4% in 2001 from 24.9% in 2000. This percentage increase was primarily due to the dollar increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties decreased $70,064 (16.9%) in 2001 as compared to 2000. This decrease was primarily due to (i) one significant well being fully depleted in 2000 due to the lack of remaining economically recoverable reserves and (ii) the decreases in volumes of oil and gas sold. These decreases were partially offset by one significant well being fully depleted in 2001 due to the lack of remaining economically recoverable reserves. As a percentage of oil and gas sales, this expense decreased to 9.6% in 2001 from 11.0% in 2000. This percentage decrease was primarily due to the increase in the average price of gas sold and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses decreased $9,667 (2.6%) in 2001 as compared to 2000. As a percentage of oil and gas sales, these expenses increased to 10.2% in 2001 from 10.0% in 2000.
The Limited Partners have received cash distributions through December 31, 2001 totaling $37,301,903 or 118.46% of Limited Partners' capital contributions.
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 --------------------------------------
Total oil and gas sales increased $1,159,035 (44.6%) in 2000 as compared to 1999. Of this increase, approximately $373,000 and $1,158,000, respectively, were related to increases in the average prices of oil and gas sold. These increases were partially offset by a decrease of approximately $351,000 related to a decrease in volumes of gas sold. Volumes of oil and gas sold decreased 1,242 barrels and 173,627 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of gas sold was primarily due to
(i) negative prior period volume adjustments on two significant wells during 2000 and (ii) normal declines in production. Average oil and gas prices increased to $27.84 per barrel and $3.41 per Mcf, respectively, in 2000 from $16.43 per barrel and $2.02 per Mcf, respectively, in 1999.
As discussed in "Liquidity and Capital Resources" below, the II-D Partnership sold certain oil and gas properties during 2000 and recognized a $514,114 gain on such sales. Sales of oil and gas properties during 1999 resulted in the II-D Partnership recognizing similar gains of $36,944.
Oil and gas production expenses (including lease operating expenses and production taxes) decreased $169,472 (15.3%) in 2000 as compared to 1999. This decrease was primarily due to (i) a positive prior period lease operating expense adjustment made by the operator on one significant well during 1999, (ii) a negative prior period lease operating expense adjustment made by the operator on another significant well during 2000, and (iii) the sale of one significant well during 2000. These decreases were partially offset by (i) an increase in production taxes associated with the increase in oil and gas sales, (ii) a positive prior period lease operating expense adjustment made by the operator on one significant well during 2000, and (iii) workover expenses incurred on one significant well during 2000 in order to improve the recovery of reserves. As a percentage of oil and gas sales, these expenses decreased to 24.9% in 2000 from 42.6% in 1999. This percentage decrease was primarily due to the dollar decrease in oil and gas production expenses and the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties decreased $10,775 (2.5%) in 2000 as compared to 1999. This decrease was primarily due to (i) the decreases in volumes of oil and gas sold and (ii) upward revisions in the estimates of remaining oil and gas reserves at December 31, 2000. These decreases were partially offset by one significant well being fully depleted in 2000 due to the lack of remaining economically recoverable reserves. As a percentage of oil and gas sales, this expense decreased to 11.0% in 2000 from 16.4% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses remained relatively constant in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 10.0% in 2000 from 14.3% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
II-E Partnership ----------------
Year Ended December 31, 2001 Compared to Year Ended December 31, 2000 --------------------------------------
Total oil and gas sales decreased $199,675 (7.2%) in 2001 as compared to 2000. Of this decrease, approximately $411,000 was related to a decrease in volumes of gas sold and approximately $118,000 was related to a decrease in the average price of oil sold. These decreases were partially offset by an increase of approximately $319,000 related to an increase in the average price of gas sold. Volumes of oil sold increased 356 barrels, while volumes of gas sold decreased 121,515 Mcf in 2001 as compared to 2000. The increase in volumes of oil sold was primarily due to (i) a positive prior period volume adjustment made by the purchaser on one significant well during 2001 and (ii) a negative prior period volume adjustment made by the operator on another significant well during 2000. These increases were partially offset by (i) the sale of one significant well during mid 2000 and (ii) normal declines in production. The decrease in volumes of gas sold was primarily due to (i) normal declines in production, (ii) the II-E Partnership receiving a reduced percentage of sales on two significant wells during 2001 due to gas balancing, and (iii) a positive prior period volume adjustment made by the purchaser on another significant well during 2000. As of the date of this Annual Report, management expects the gas balancing adjustments to continue for the foreseeable future, thereby continuing to contribute to a decrease in volumes of gas sold by the II-E Partnership. Average oil prices decreased to $24.32 per barrel in 2001 from $29.24 per barrel in 2000. Average gas prices increased to $4.03 per Mcf in 2001 from $3.38 per Mcf in 2000.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $239,626 (41.4%) in 2001 as compared to 2000. This increase was primarily due to (i) a one-time litigation expense and settlement payment incurred in connection with a plugged well and (ii) workover expenses incurred on several wells during 2001. These increases were partially offset by (i) a positive prior period lease operating expense adjustment made by the operator on one significant well during 2000 and (ii) a negative prior period lease operating expense adjustment made by the operator on another significant well during 2001. As a percentage of oil and gas sales, these expenses increased to 32.0% in 2001 from 21.0% in 2000. This percentage increase was primarily due to the dollar increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties decreased $49,746 (13.7%) in 2001 as compared to 2000. This decrease was primarily due to (i) one significant well being
fully depleted in 2000 due to the lack of remaining economically recoverable reserves and (ii) the decrease in volumes of gas sold. These decreases were partially offset by downward revisions in the estimates of remaining oil reserves at December 31, 2001. As a percentage of oil and gas sales, this expense decreased to 12.2% in 2001 from 13.1% in 2000.
General and administrative expenses remained relatively constant in 2001 as compared to 2000. As a percentage of oil and gas sales, these expenses increased to 10.7% in 2001 from 9.9% in 2000.
The Limited Partners have received cash distributions through December 31, 2001 totaling $26,794,574 or 117.10% of Limited Partners' capital contributions.
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 --------------------------------------
Total oil and gas sales increased $950,160 (52.5%) in 2000 as compared to 1999. Of this increase, approximately $279,000 and $848,000, respectively, were related to increases in the average prices of oil and gas sold. These increases were partially offset by a decrease of approximately $151,000 related to a decrease in volumes of oil sold. Volumes of oil and gas sold decreased 8,644 barrels and 12,920 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of oil sold was primarily due to (i) normal declines in production, (ii) the sale of one significant well during late 2000, and (iii) a negative prior period volume adjustment made by the operator on one significant well during 2000. Average oil and gas prices increased to $29.24 per barrel and $3.38 per Mcf, respectively, in 2000 from $17.49 per barrel and $1.99 per Mcf, respectively, in 1999.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $21,176 (3.8%) in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 21.0% in 2000 from 30.8% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties increased $5,639 (1.6%) in 2000 as compared to 1999. This increase was primarily due to one significant well being fully depleted in 2000 due to the lack of remaining economically recoverable reserves. This increase was partially offset by (i) the decreases in volumes of oil and gas sold and (ii) upward revisions in the estimates of remaining oil and gas reserves at December 31, 2000. As a percentage of oil and gas sales, this expense decreased to 13.1% in 2000 from 19.7% in 1999. This
percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses increased $2,668 (1.0%) in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 9.9% in 2000 from 14.9% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
II-F Partnership ----------------
Year Ended December 31, 2001 Compared to Year Ended December 31, 2000 --------------------------------------
Total oil and gas sales increased $174,627 (7.5%) in 2001 as compared to 2000. Of this increase, approximately (i) $193,000 was related to an increase in the average price of gas sold and (ii) $163,000 was related to an increase in volumes of oil sold. These increases were partially offset by decreases of approximately (i) $128,000 related to a decrease in the average price of oil sold and (ii) $53,000 related to a decrease in volumes of gas sold. Volumes of oil sold increased 5,790 barrels, while volumes of gas sold decreased 15,753 Mcf in 2001 as compared to 2000. The increase in volumes of oil sold was primarily due to (i) positive prior period volume adjustments made by the purchasers on two significant wells during 2001 and (ii) increased production on one significant well due to the successful workover of that well during mid 2001. Average oil prices decreased to $24.00 per barrel in 2001 from $28.14 per barrel in 2000. Average gas prices increased to $3.75 per Mcf in 2001 from $3.34 per Mcf in 2000.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $91,267 (22.1%) in 2001 as compared to 2000. This increase was primarily due to (i) workover expenses incurred on several wells during 2001 and (ii) an increase in production taxes associated with the increase in oil and gas sales. As a percentage of oil and gas sales, these expenses increased to 20.3% in 2001 from 17.8% in 2000. This percentage increase was primarily due to the dollar increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties increased $78,598 (36.8%) in 2001 as compared to 2000. This increase was primarily due to several wells being fully depleted in 2001 due to the lack of remaining economically recoverable reserves. This increase was partially offset by upward revisions in the estimates of remaining gas reserves at December 31, 2001. As a percentage of oil and gas sales, this expense increased to 11.7% in 2001 from 9.2% in 2000. This percentage increase was primarily due to the dollar increase in depreciation, depletion, and amortization.
General and administrative expenses increased $4,377 (2.1%) in 2001 as compared to 2000. As a percentage of oil and gas sales, these expenses decreased to 8.4% in 2001 from 8.8% in 2000.
The Limited Partners have received cash distributions through December 31, 2001 totaling $20,942,051 or 122.18% of Limited Partners' capital contributions.
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 --------------------------------------
Total oil and gas sales increased $647,923 (38.9%) in 2000 as compared to 1999. Of this increase, approximately $290,000 and $688,000, respectively, were related to increases in the average prices of oil and gas sold. These increases were partially offset by decreases of approximately $161,000 and $169,000, respectively, related to decreases in volumes of oil and gas sold. Volumes of oil and gas sold decreased 9,684 barrels and 88,415 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of oil sold was primarily due to normal declines in production. The decrease in volumes of gas sold was primarily due to a positive prior period volume adjustment made by the operator on one significant well during 1999 and normal declines in production. Average oil and gas prices increased to $28.14 per barrel and $3.34 per Mcf, respectively, in 2000 from $16.64 per barrel and $1.91 per Mcf, respectively, in 1999.
Oil and gas production expenses (including lease operating expenses and production taxes) decreased $38,732 (8.6%) in 2000 as compared to 1999. This decrease was primarily due to (i) a decrease in lease operating expenses associated with the decreases in volumes of oil and gas sold, (ii) positive prior period lease operating expense adjustments made by the operator on several wells during 1999, and (iii) the sale of one significant well during late 1999. These decreases were partially offset by an increase in production taxes associated with the increase in oil and gas sales. As a percentage of oil and gas sales, these expenses decreased to 17.8% in 2000 from 27.1% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties decreased $93,251 (30.4%) in 2000 as compared to 1999. This decrease was primarily due to (i) the decreases in volumes of oil and gas sold and (ii) upward revisions in the estimates of remaining oil and gas reserves at December 31, 2000. As a percentage of oil and gas sales, this expense decreased to 9.2% in 2000 from 18.4% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $2,398 (1.2%) in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 8.8% in 2000 from 12.1% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
II-G Partnership ----------------
Year Ended December 31, 2001 Compared to Year Ended December 31, 2000 --------------------------------------
Total oil and gas sales increased $369,434 (7.5%) in 2001 as compared to 2000. Of this increase, approximately (i) $427,000 was related to an increase in the average price of gas sold and (ii) $340,000 was related to an increase in volumes of oil sold. These increases were partially offset by decreases of approximately (i) $268,000 related to a decrease in the average price of oil sold and (ii) $130,000 related to a decrease in volumes of gas sold. Volumes of oil sold increased 12,091 barrels, while volumes of gas sold decreased 39,049 Mcf in 2001 as compared to 2000. The increase in volumes of oil sold was primarily due to (i) positive prior period volume adjustments made by the purchasers on two significant wells during 2001 and (ii) increased production on one significant well due to the successful workover of that well during mid 2001. Average oil prices decreased to $24.00 per barrel in 2001 from $28.14 per barrel in 2000. Average gas prices increased to $3.76 per Mcf in 2001 from $3.33 per Mcf in 2000.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $190,266 (21.5%) in 2001 as compared to 2000. This increase was primarily due to (i) workover expenses incurred on several wells during 2001 and (ii) an increase in production taxes associated with the increase in oil and gas sales. As a percentage of oil and gas sales, these expenses increased to 20.4% in 2001 from 18.0% in 2000. This percentage increase was primarily due to the dollar increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties increased $170,164 (37.2%) in 2001 as compared to 2000. This increase was primarily due to several wells being fully depleted in 2001 due to the lack of remaining economically recoverable reserves. This increase was partially offset by upward revisions in the estimates of remaining gas reserves at December 31, 2001. As a percentage of oil and gas sales, this expense increased to 11.9% in 2001 from 9.3% in 2000. This percentage increase was primarily due to the dollar increase in depreciation, depletion, and amortization.
General and administrative expenses decreased $11,745 (2.7%) in 2001 as compared to 2000. As a percentage of oil and gas sales, these expenses decreased to 8.1% in 2001 from 9.0% in 2000. This percentage decrease was primarily due to the increase in oil and gas sales.
The Limited Partners have received cash distributions through December 31, 2001 totaling $43,577,371 or 117.08% of Limited Partners' capital contributions.
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 --------------------------------------
Total oil and gas sales increased $1,387,976 (39.3%) in 2000 as compared to 1999. Of this increase, approximately $610,000 and $1,461,000, respectively, were related to increases in the average prices of oil and gas sold. These increases were partially offset by decreases of approximately $341,000 and $342,000, respectively, related to decreases in volumes of oil and gas sold. Volumes of oil and gas sold decreased 20,554 barrels and 179,062 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of oil sold was primarily due to normal declines in production. The decrease in volumes of gas sold was primarily due to a positive prior period volume adjustment made by the operator on one significant well during 1999 and normal declines in production. Average oil and gas prices increased to $28.14 per barrel and $3.33 per Mcf, respectively, in 2000 from $16.58 per barrel and $1.91 per Mcf, respectively, in 1999.
Oil and gas production expenses (including lease operating expenses and production taxes) decreased $79,893 (8.3%) in 2000 as compared to 1999. This decrease was primarily due to (i) a decrease in lease operating expenses associated with the decreases in volumes of oil and gas sold, (ii) positive prior period lease operating expense adjustments made by the operator on several wells during 1999, and (iii) the sale of one significant well during late 1999. These decreases were partially offset by an increase in production taxes associated with the increase in oil and gas sales. As a percentage of oil and gas sales, these expenses decreased to 18.0% in 2000 from 27.4% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties decreased $202,798 (30.7%) in 2000 as compared to 1999. This decrease was primarily due to (i) the decreases in volumes of oil and gas sold and (ii) upward revisions in the estimates of remaining oil and gas reserves at December 31, 2000. As a percentage of oil and gas sales, this expense decreased to 9.3% in 2000 from 18.7% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses remained relatively constant in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 9.0% in 2000 from 12.4% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
II-H Partnership ----------------
Year Ended December 31, 2001 Compared to Year Ended December 31, 2000 --------------------------------------
Total oil and gas sales increased $95,141 (8.2%) in 2001 as compared to 2000. Of this increase, approximately (i) $106,000 was related to an increase in the average price of gas sold and (ii) $77,000 was related to an increase in volumes of oil sold. These increases were partially offset by decreases of approximately (i) $62,000 related to a decrease in the average price of oil sold and (ii) $26,000 related to a decrease in volumes of gas sold. Volumes of oil sold increased 2,757 barrels, while volumes of gas sold decreased 7,890 Mcf in 2001 as compared to 2000. The increase in volumes of oil sold was primarily due to (i) positive prior period volume adjustments made by the purchasers on two significant wells during 2001 and (ii) increased production on one significant well due to the successful workover of that well during mid 2001. Average oil prices decreased to $24.01 per barrel in 2001 from $28.13 per barrel in 2000. Average gas prices increased to $3.77 per Mcf in 2001 from $3.33 per Mcf in 2000.
Oil and gas production expenses (including lease operating expenses and production taxes) increased $46,664 (21.8%) in 2001 as compared to 2000. This increase was primarily due to (i) workover expenses incurred on several wells during 2001 and (ii) an increase in production taxes associated with the increase in oil and gas sales. As a percentage of oil and gas sales, these expenses increased to 20.7% in 2001 from 18.4% in 2000. This percentage increase was primarily due to the dollar increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties increased $40,727 (38.0%) in 2001 as compared to 2000. This increase was primarily due to several wells being fully depleted in 2001 due to the lack of remaining economically recoverable reserves. This increase was partially offset by upward revisions in the estimates of remaining gas reserves at December 31, 2001. As a percentage of oil and gas sales, this expense increased to 11.8% in 2001 from 9.2% in 2000. This percentage increase was primarily due to the dollar increase in depreciation, depletion, and amortization.
General and administrative expenses increased $10,787 (9.8%) in 2001 as compared to 2000. As a percentage of oil and gas sales, these expenses increased to 9.6% in 2001 from 9.5% in 2000.
The Limited Partners have received cash distributions through December 31, 2001 totaling $10,159,364 or 110.78% of Limited Partners' capital contributions.
Year Ended December 31, 2000 Compared to Year Ended December 31, 1999 --------------------------------------
Total oil and gas sales increased $325,359 (38.9%) in 2000 as compared to 1999. Of this increase, approximately $141,000 and $344,000, respectively, were related to increases in the average prices of oil and gas sold. These increases were partially offset by decreases of approximately $79,000 and $81,000, respectively, related to decreases in volumes of oil and gas sold. Volumes of oil and gas sold decreased 4,758 barrels and 42,234 Mcf, respectively, in 2000 as compared to 1999. The decrease in volumes of oil sold was primarily due to normal declines in production. The decrease in volumes of gas sold was primarily due to a positive prior period volume adjustment made by the operator on one significant well during 1999 and normal declines in production. Average oil and gas prices increased to $28.13 per barrel and $3.33 per Mcf, respectively, in 2000 from $16.62 per barrel and $1.92 per Mcf, respectively, in 1999.
Oil and gas production expenses (including lease operating expenses and production taxes) decreased $18,704 (8.0%) in 2000 as compared to 1999. This decrease was primarily due to (i) a decrease in lease operating expenses associated with the decreases in volumes of oil and gas sold, (ii) positive prior period lease operating expense adjustments made by the operator on several wells during 1999, and (iii) the sale of one significant well during late 1999. These decreases were partially offset by an increase in production taxes associated with the increase in oil and gas sales. As a percentage of oil and gas sales, these expenses decreased to 18.4% in 2000 from 27.8% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties decreased $50,028 (31.8%) in 2000 as compared to 1999. This decrease was primarily due to (i) the decreases in volumes of oil and gas sold and (ii) upward revisions in the estimates of remaining oil and gas reserves at December 31, 2000. As a percentage of oil and gas sales, this expense decreased to 9.2% in 2000 from 18.8% in 1999. This percentage decrease was primarily due to the increases in the average prices of oil and gas sold and the dollar decrease in depreciation, depletion, and amortization.
General and administrative expenses increased $2,339 (2.2%) in 2000 as compared to 1999. As a percentage of oil and gas sales, these expenses decreased to 9.5% in 2000 from 12.9% in 1999. This percentage decrease was primarily due to the increase in oil and gas sales.
Average Sales Prices, Production Volumes, and Average Production Costs
The following tables are comparisons of the annual average oil and gas sales prices, production volumes, and average production costs (lease operating expenses and production taxes) per equivalent unit (one barrel of oil or six Mcf of gas) for 2001, 2000, and 1999. These factors comprise the change in net oil and gas operations discussed in the "Results of Operations" section above.
2001 Compared to 2000 ---------------------
Average Sales Prices - -------------------------------------------------------------------------- P/ship 2001 2000 % Change - ------ ------------------ ------------------ ------------- Oil Gas Oil Gas ($/Bbl) ($/Mcf) ($/Bbl) ($/Mcf) Oil Gas ------- ------- ------- ------- ----- ---
II-A $23.99 $4.12 $27.49 $3.59 (13%) 15% II-B 24.36 4.34 27.44 3.54 (11%) 23% II-C 24.28 4.30 27.82 3.51 (13%) 23% II-D 22.78 4.42 27.84 3.41 (18%) 30% II-E 24.32 4.03 29.24 3.38 (17%) 19% II-F 24.00 3.75 28.14 3.34 (15%) 12% II-G 24.00 3.76 28.14 3.33 (15%) 13% II-H 24.01 3.77 28.13 3.33 (15%) 13%
Production Volumes - ---------------------------------------------------------------------------- P/ship 2001 2000 % Change - ------ -------------------- -------------------- ------------- Oil Gas Oil Gas Oil Gas (Bbls) (Mcf) (Bbls) (Mcf) (Bbls) (Mcf) ------ --------- ------ --------- ------ -----
II-A 67,519 774,153 77,024 1,003,723 (12%) (23%) II-B 49,375 570,423 52,155 707,543 ( 5%) (19%) II-C 14,034 302,093 16,424 398,166 (15%) (24%) II-D 18,970 712,930 32,648 836,567 (42%) (15%) II-E 24,064 490,127 23,708 611,642 2% (20%) II-F 30,965 465,214 25,175 480,967 23% ( 3%) II-G 64,898 992,099 52,807 1,031,148 23% ( 4%) II-H 15,054 237,600 12,297 245,490 22% ( 3%)
Average Production Costs per Equivalent Barrel of Oil ------------------------------------- P/ship 2001 2000 % Change ------ ----- ----- --------
II-A $9.29 $5.81 60% II-B 7.29 5.85 25% II-C 6.77 4.89 38% II-D 8.69 5.45 59% II-E 7.74 4.61 68% II-F 4.64 3.92 18% II-G 4.67 3.94 19% II-H 4.77 4.02 19%
2000 Compared to 1999 ---------------------
Average Sales Prices - -------------------------------------------------------------------------- P/ship 2000 1999 % Change - ------ ------------------ ------------------ ------------ Oil Gas Oil Gas ($/Bbl) ($/Mcf) ($/Bbl) ($/Mcf) Oil Gas ------- ------- ------- ------- ----- ---
II-A $27.49 $3.59 $16.25 $2.09 69% 72% II-B 27.44 3.54 16.18 2.04 70% 74% II-C 27.82 3.51 16.68 2.00 67% 76% II-D 27.84 3.41 16.43 2.02 69% 69% II-E 29.24 3.38 17.49 1.99 67% 70% II-F 28.14 3.34 16.64 1.91 69% 75% II-G 28.14 3.33 16.58 1.91 70% 74% II-H 28.13 3.33 16.62 1.92 69% 73%
Production Volumes - ---------------------------------------------------------------------------- P/ship 2000 1999 % Change - ------ -------------------- -------------------- ------------- Oil Gas Oil Gas Oil Gas (Bbls) (Mcf) (Bbls) (Mcf) (Bbls) (Mcf) ------ --------- ------ --------- ------ -----
II-A 77,024 1,003,723 84,033 1,149,550 ( 8%) (13%) II-B 52,155 707,543 56,749 870,203 ( 8%) (19%) II-C 16,424 398,166 17,691 500,545 ( 7%) (20%) II-D 32,648 836,567 33,890 1,010,194 ( 4%) (17%) II-E 23,708 611,642 32,352 624,562 (27%) ( 2%) II-F 25,175 480,967 34,859 569,382 (28%) (16%) II-G 52,807 1,031,148 73,361 1,210,210 (28%) (15%) II-H 12,297 245,490 17,055 287,724 (28%) (15%)
Average Production Costs per Equivalent Barrel of Oil ------------------------------------- P/ship 2000 1999 % Change ------ ----- ----- --------
II-A $5.81 $4.71 23% II-B 5.85 4.76 23% II-C 4.89 4.35 12% II-D 5.45 5.47 - II-E 4.61 4.09 13% II-F 3.92 3.48 13% II-G 3.94 3.51 12% II-H 4.02 3.58 12%
Liquidity and Capital Resources
Net proceeds from operations less necessary operating capital are distributed to the Limited Partners on a quarterly basis. See "Item 5. Market for Units and Related Limited Partner Matters." The net proceeds from production are not reinvested in productive assets, except to the extent that producing wells are improved, where methods are employed to permit more efficient recovery of reserves, or where identified developmental drilling or recompletion opportunities are pursued, thereby resulting in a positive economic impact. Assuming 2001 production levels for future years, the Partnerships proved reserve quantities at December 31, 2001 would have the following remaining lives:
Partnership Gas-Years Oil-Years ----------- --------- ---------
II-A 7.6 5.5 II-B 7.5 5.8 II-C 10.8 6.8 II-D 13.2 10.2 II-E 7.4 6.1 II-F 6.5 7.1 II-G 6.5 7.1 II-H 6.5 7.1
These life of reserves estimates are based on the current estimates of remaining oil and gas reserves. See "Item 2. Properties" for a discussion of these reserve estimates. Any decrease from the oil and gas prices at December 31, 2001 may cause a decrease in the estimated life of said reserves.
The Partnerships' available capital from the Limited Partners' subscriptions has been spent on oil and gas properties and there should be no further material capital resource commitments in the future. Occasional expenditures for new wells or well recompletions or workovers, however, may reduce or eliminate cash available for a particular quarterly cash distribution. During 2001, capital expenditures for the II-A, II-B, and II-C Partnerships totaled $149,585, $492,951, and $82,009, respectively. These expenditures were primarily due to the drilling of three development wells located in Kern County, California. The II-A, II-B, and II-C Partnerships own working interests of approximately 3.9%, 16.2%, and 2.4%, respectively, in these wells. The Partnerships have no debt commitments. Cash for operational purposes will be provided by current oil and gas production.
The Partnerships sold certain oil and gas properties during 2001, 2000, and 1999. The sale of the Partnerships' properties were made by the General Partner after giving due consideration to both the offer price and the General Partner's estimate of the property's remaining proved reserves and future operating costs.
Net proceeds from the sale of any such properties were distributed to the Partnerships and included in the calculation of the Partnerships' cash distributions for the quarter immediately following the Partnerships' receipt of the proceeds. The amount of such proceeds from the sale of oil and gas properties during 2001, 2000, and 1999, were as follows:
Partnership 2001 2000 1999 ----------- --------- -------- -------
II-A $ 7,285 $ 99,721 $14,441 II-B 1,187 257,751 39,541 II-C 21,996 113,746 9,704 II-D 112,686 723,535 36,944 II-E 61,553 171,330 27,869 II-F 24,684 92,073 8,302 II-G 52,882 193,656 17,979 II-H 12,783 45,271 4,342
The General Partner believes that the sale of these properties will be beneficial to the Partnerships in the long-term since the properties sold generally had a higher ratio of future operating expenses as compared to reserves than the properties not sold.
In August, 1999, the II-A Partnership received insurance settlement proceeds in the amount of $202,500 for the costs incurred to drill the State lease 8191 No. 4 well in St. Bernard Parish, Louisiana for the purpose of relieving pressure in another well which suffered a blowout during a workover attempt. This well was completed as a producing gas well in 1998. The insurance proceeds amount was included in the II-A Partnership's August 1999 cash distribution.
There can be no assurance as to the amount of the Partnerships' future cash distributions. The Partnerships' ability to make cash distributions depends primarily upon the level of available cash flow generated by the Partnerships' operating activities, 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. Even if prices and costs remain stable, the amount of cash available for distributions will decline over time (as the volume of production from producing properties declines) since the Partnerships are not replacing production through acquisitions of producing properties and drilling. The Partnerships' quantity of proved reserves has been reduced by the sale of oil and gas properties as described above; therefore, it is possible that the Partnerships' future cash distributions will decline as a result of a reduction of the Partnerships' reserve base.
The Partnerships would have terminated on December 31, 2001 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 first two-year extension thereby extending their termination date to December 31, 2003. As of the date of this Annual Report, the General Partner has not determined whether to further extend the term of any Partnership.
New Accounting Pronouncements
Below is a brief description of Financial Accounting Standards ("FAS") recently issued by the Financial Accounting Standards Board ("FASB") which may have an impact on the Partnerships' future results of operations and financial position.
In July 2001, the FASB issued FAS No. 143, "Accounting for Asset Retirement Obligations", which is effective for fiscal years beginning after June 15, 2002 (January 1, 2003 for the Partnerships). FAS No. 143 will require the recording of the fair value of liabilities associated with the retirement of long-lived assets (mainly plugging and abandonment costs for the Partnerships' depleted wells), in the period in which the liabilities are incurred (at the time the wells are drilled). Management has not yet determined the effect of adopting this statement on the Partnerships' financial condition or results of operations.
In August 2001, the FASB issued FAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets", which is effective for fiscal years beginning after December 15, 2001 (January 1, 2002 for the Partnerships). This statement supersedes FAS No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of". The provisions of FAS No. 144, as they relate to the Partnerships, are essentially the same as FAS No. 121 and thus are not expected to have a significant effect on the Partnerships' financial condition or results of operations.
Inflation and Changing Prices
Prices obtained for oil and gas production depend upon numerous factors, including the extent of domestic and foreign production, foreign imports of oil, market demand, domestic and foreign economic conditions in general, and governmental regulations and tax laws. The general level of inflation in the economy did not have a material effect on the operations of the Partnerships in 2001. Oil and gas prices have fluctuated during recent years and generally have not followed the same pattern as inflation. See "Item 2. Properties - Oil and Gas Production, Revenue, and Price History."
ITEM 7A.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The Partnerships do not hold any market risk sensitive instruments.
ITEM 8.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements and supplementary data are indexed in Item 14 hereof.
ITEM 9.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
PART III.
ITEM 10.
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE GENERAL PARTNER
The Partnerships have no directors or executive officers. The following individuals are directors and executive officers of the General Partner. The business address of such director and executive officers is Two West Second Street, Tulsa, Oklahoma 74103.
Name Age Position with General Partner ---------------- --- --------------------------------
Dennis R. Neill 49 President and Director
Judy K. Fox 50 Secretary
The director will hold office until the next annual meeting of shareholders of Geodyne or until his successor has been duly elected and qualified. All executive officers serve at the discretion of the Board of Directors.
Dennis R. Neill joined Samson in 1981, was named Senior Vice President and Director of Geodyne on March 3, 1993, and was named President of Geodyne and its subsidiaries on June 30, 1996. Prior to joining Samson, he was associated with a Tulsa law firm, Conner and Winters, where his principal practice was in the securities area. He received a Bachelor of Arts degree in political science from Oklahoma State University and a Juris Doctorate degree from the University of Texas. Mr. Neill also serves as Senior Vice President of Samson Investment Company and as President and Director of Samson Properties Incorporated, Samson Hydrocarbons Company, Dyco Petroleum Corporation, Berry
Gas Company, Circle L Drilling Company, Snyder Exploration Company, and Compression, Inc.
Judy K. Fox joined Samson in 1990 and was named Secretary of Geodyne and its subsidiaries on June 30, 1996. Prior to joining Samson, she served as Gas Contract Manager for Ely Energy Company. Ms. Fox is also Secretary of Berry Gas Company, Circle L Drilling Company, Compression, Inc., Dyco Petroleum Corporation, Samson Hydrocarbons Company, Snyder Exploration Company, and Samson Properties Incorporated.
Section 16(a) Beneficial Ownership Reporting Compliance
To the best knowledge of the Partnerships and the General Partner, there were no officers, directors, or ten percent owners who were delinquent filers during 2001 of reports required under Section 16 of the Securities Exchange Act of 1934.
ITEM 11.
ITEM 11. EXECUTIVE COMPENSATION
The General Partner and its affiliates are reimbursed for actual general and administrative costs and operating costs incurred and attributable to the conduct of the business affairs and operations of the Partnerships, computed on a cost basis, determined in accordance with generally accepted accounting principles. Such reimbursed costs and expenses allocated to the Partnerships include office rent, secretarial, employee compensation and benefits, travel and communication costs, fees for professional services, and other items generally classified as general or administrative expense. When actual costs incurred benefit other Partnerships and affiliates, the allocation of costs is based on the relationship of the Partnerships' reserves to the total reserves owned by all Partnerships and affiliates. The amount of general and administrative expense allocated to the General Partner and its affiliates which was charged to each Partnership during 2001, 2000, and 1999, is set forth in the table below. Although the actual costs incurred by the General Partner and its affiliates have fluctuated during the three years presented, the amounts charged to the Partnerships have not fluctuated due to expense limitations imposed by the Partnership Agreements.
Partnership 2001 2000 1999 ----------- -------- -------- --------
II-A $509,772 $509,772 $509,772 II-B 380,760 380,760 380,760 II-C 162,756 162,756 162,756 II-D 331,452 331,452 331,452 II-E 240,864 240,864 240,864 II-F 180,420 180,420 180,420 II-G 391,776 391,776 391,776 II-H 96,540 96,540 96,540
None of the officers or directors of the General Partner receive compensation directly from the Partnerships. The Partnerships reimburse the General Partner or its affiliates for that portion of such officers' and directors' salaries and expenses attributable to time devoted by such individuals to the Partnerships' activities based on the allocation method described above. The following tables indicate the approximate amount of general and administrative expense reimbursement attributable to the salaries of the directors, officers, and employees of the General Partner and its affiliates during 2001, 2000, and 1999:
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 dollar amount of such compensation paid by the Partnerships to the affiliates is impossible to quantify as of the date of this Annual Report.
Samson maintains necessary inventories of new and used field equipment. Samson may have provided some of this equipment for wells in which the Partnerships have an interest. This equipment was provided at prices or rates equal to or less than those normally charged in the same or comparable geographic area by unaffiliated persons or companies dealing at arm's length. The operators of these wells billed the Partnerships for a portion of such costs based upon the Partnerships' interest in the well.
ITEM 12.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table provides information as to the beneficial ownership of the Units as of February 1, 2002 by (i) each beneficial owner of more than five percent of the issued and outstanding Units, (ii) the directors and officers of the General Partner, and (iii) the General Partner and its affiliates. The address of each of such persons is Samson Plaza, Two West Second Street, Tulsa, Oklahoma 74103.
Number of Units Beneficially Owned (Percent Beneficial Owner of Outstanding) - ------------------------------------ ------------------
II-A Partnership: - ---------------- Samson Resources Company 115,718 (23.9%) All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 115,718 (23.9%)
II-B Partnership: - ---------------- Samson Resources Company 81,696 (22.6%) All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 81,696 (22.6%)
II-C Partnership: - ---------------- Samson Resources Company 44,510 (28.8%) All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 44,510 (28.8%)
II-D Partnership: - ---------------- Samson Resources Company 71,086 (22.6%) All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 71,086 (22.6%)
II-E Partnership: - ---------------- Samson Resources Company 60,632 (26.5%) All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 60,632 (26.5%)
II-F Partnership: - ---------------- Samson Resources Company 37,940 (22.1%) All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 37,940 (22.1%)
II-G Partnership: - ---------------- Samson Resources Company 66,494 (17.9%) All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 66,494 (17.9%)
II-H Partnership: - ---------------- Samson Resources Company 22,340 (24.4%) All affiliates, directors, and officers of the General Partner as a group and the General Partner (4 persons) 22,340 (24.4%)
ITEM 13.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The General Partner and certain of its affiliates engage in oil and gas activities independently of the Partnerships which result in conflicts of interest that cannot be totally eliminated. The allocation of acquisition and drilling opportunities and the nature of the compensation arrangements between the Partnerships and the General Partner also create potential conflicts of interest. An affiliate of the Partnerships owns some of the Partnerships' Units and therefore has an identity of interest with other Limited Partners with respect to the operations of the Partnerships.
In order to attempt to assure limited liability for Limited Partners as well as an orderly conduct of business, management of the Partnerships is exercised solely by the General Partner. The Partnership Agreements grant the General Partner broad discretionary authority with respect to the Partnerships' participation in drilling prospects and expenditure and control of funds, including borrowings. These provisions are similar to those contained in prospectuses and partnership agreements for other public oil and gas partnerships. Broad discretion as to general management of the Partnerships involves circumstances where the General Partner has conflicts of interest and where it must allocate costs and expenses, or opportunities, among the Partnerships and other competing interests.
The General Partner does not devote all of its time, efforts, and personnel exclusively to the Partnerships. Furthermore, the Partnerships do not have any employees, but instead rely on the personnel of Samson. The Partnerships thus compete with Samson (including other oil and gas partnerships) for the time and resources of such personnel. Samson devotes such time and personnel to the management of the Partnerships as are indicated by the circumstances and as are consistent with the General Partner's fiduciary duties.
Affiliates of the Partnerships are solely responsible for the negotiation, administration, and enforcement of oil and gas sales agreements covering the Partnerships' leasehold interests. Because affiliates of the Partnership who provide services to the Partnership have fiduciary or other duties to other members of Samson, contract amendments and negotiating positions taken by them in their effort to enforce contracts with purchasers may not necessarily represent the positions that the Partnerships would take if they were to administer their own contracts without involvement with other members of Samson. On the other hand, management believes that the Partnerships' negotiating strength and contractual positions have been enhanced by virtue of their affiliation with Samson.
PART IV.
ITEM 14.
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) Financial Statements, Financial Statement Schedules, and Exhibits.
(1) Financial Statements: The following financial statements for the
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
as of December 31, 2001 and 2000 and for each of the three years in the period ended December 31, 2001 are filed as part of this report:
Report of Independent Accountants Combined Balance Sheets Combined Statements of Operations Combined Statements of Changes in Partners' Capital (Deficit) Combined Statements of Cash Flows Notes to Combined Financial Statements
(2) Financial Statement Schedules:
None.
(3) Exhibits:
Exh. No. Exhibit - --- -------
*4.1 Agreement and Certificate of Limited Partnership dated July 22, 1987 for the Geodyne Energy Income Limited Partnership II-A.
*4.2 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-A.
*4.3 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-A.
*4.4 Third Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-A.
*4.5 Fourth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-A.
*4.6 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-A.
*4.7 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-A.
*4.8 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-A.
*4.9 Agreement and Certificate of Limited Partnership dated October 14, 1987 for the Geodyne Energy Income Limited Partnership II-B.
*4.10 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-B.
*4.11 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-B.
*4.12 Third Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-B.
*4.13 Fourth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-B.
*4.14 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-B.
*4.15 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-B.
*4.16 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-B.
*4.17 Agreement and Certificate of Limited Partnership dated January 13, 1988 for the Geodyne Energy Income Limited Partnership II-C.
*4.18 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-C.
*4.19 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-C.
*4.20 Third Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-C.
*4.21 Fourth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-C.
*4.22 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-C.
*4.23 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-C.
*4.24 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-C.
*4.25 Agreement and Certificate of Limited Partnership dated May 10, 1988 for the Geodyne Energy Income Limited Partnership II-D.
*4.26 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-D.
*4.27 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-D.
*4.28 Third Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-D.
*4.29 Fourth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-D.
*4.30 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-D.
*4.31 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-D.
*4.32 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-D.
*4.33 Agreement and Certificate of Limited Partnership dated September 27, 1988 for the Geodyne Energy Income Limited Partnership II-E.
*4.34 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-E.
*4.35 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-E.
*4.36 Third Amendment to Agreement and Certificate of Limited Partnership dated August 31, 1995 for the Geodyne Energy Income Limited Partnership II-E.
*4.37 Fourth Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-E.
*4.38 Fifth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-E.
*4.39 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-E.
*4.40 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-E.
*4.41 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-E.
*4.42 Agreement and Certificate of Limited Partnership dated January 5, 1989 for the Geodyne Energy Income Limited Partnership II-F.
*4.42a Certificate of Limited Partnership dated January 5, 1989, for the Geodyne Energy Income Limited Partnership II-F.
*4.43 First Amendment to Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-F.
*4.44 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-F.
*4.45 Third Amendment to Agreement and Certificate of Limited Partnership dated August 31, 1995 for the Geodyne Energy Income Limited Partnership II-F.
*4.46 Fourth Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-F.
*4.47 Fifth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-F.
*4.48 Second Amendment to Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-F.
*4.49 Third Amendment to Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-F.
*4.50 Agreement and Certificate of Limited Partnership dated April 10, 1989 for the Geodyne Energy Income Limited Partnership II-G.
*4.51 Certificate of Limited Partnership dated April 10, 1989, for the Geodyne Energy Income Limited Partnership II-G.
*4.52 First Amendment to Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-G.
*4.53 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-G.
*4.54 Third Amendment to Agreement and Certificate of Limited Partnership dated August 31, 1995 for the Geodyne Energy Income Limited Partnership II-G.
*4.55 Fourth Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-G.
*4.56 Fifth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-G.
*4.57 Second Amendment to Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-G.
*4.58 Third Amendment to Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-G.
*4.59 Agreement and Certificate of Limited Partnership dated May 17, 1989 for the Geodyne Energy Income Limited Partnership II-H.
*4.60 Certificate of Limited Partnership dated May 17, 1989, for the Geodyne Energy Income Limited Partnership II-H.
*4.61 First Amendment to Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 25, 1993 for the Geodyne Energy Income Limited Partnership II-H.
*4.62 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-H.
*4.63 Third Amendment to Agreement and Certificate of Limited Partnership dated August 31, 1995 for the Geodyne Energy Income Limited Partnership II-H.
*4.64 Fourth Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-H.
*4.65 Fifth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-H.
*4.66 Second Amendment to Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-H.
*4.67 Third Amendment to Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-H.
*10.1 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-A.
*10.2 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-A.
*10.3 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-A.
*10.4 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-A.
*10.5 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-B.
*10.6 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-B.
*10.7 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-B.
*10.8 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-B.
*10.9 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-C.
*10.10 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-C.
*10.11 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-C.
*10.12 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-C.
*10.13 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-D.
*10.14 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-D.
*10.15 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-D.
*10.16 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-D.
*10.17 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-E.
*10.18 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-E.
*10.19 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-E.
*10.20 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-E.
*10.21 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-F.
*10.22 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-F.
*10.23 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-F.
*10.24 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-F.
*10.25 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-G.
*10.26 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-G.
*10.27 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-G.
*10.28 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-G.
*10.29 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-H.
*10.30 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-H.
*10.31 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-H.
*10.32 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-H.
*23.1 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-A.
*23.2 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-B.
*23.3 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-C.
*23.4 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-D.
*23.5 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-E.
*23.6 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-F.
*23.7 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-G.
*23.8 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-H.
All other Exhibits are omitted as inapplicable.
----------
*Filed herewith.
(b) Reports on Form 8-K filed during the fourth quarter of 2001:
Each Partnership filed a Current Report of Form 8-K as follows:
Date of Event November 14, 2001 Date filed with the SEC November 16, 2001 Items Included Item 5 - Other Events Item 7 - Exhibits
SIGNATURES
Pursuant to the requirements of Sections 13 or 15(d) 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 organized.
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
By: GEODYNE RESOURCES, INC. General Partner
February 26, 2002
By: //S// Dennis R. Neill ------------------------------ Dennis R. Neill President
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities (with respect to the registrant's general partner, Geodyne Resources, Inc.) on the dates indicated.
By: //s//Dennis R. Neill President and February 26, 2002 ------------------- Director (Principal Dennis R. Neill Executive Officer)
//s// Craig D. Loseke Chief Financial February 26, 2002 ------------------- Officer (Principal Craig D. Loseke Accounting and Financial Officer)
//s// Judy K. Fox ------------------- Secretary February 26, 2002 Judy K. Fox
ITEM 8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A GEODYNE PRODUCTION PARTNERSHIP II-A
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership II-A, an Oklahoma limited partnership, and Geodyne Production Partnership II-A, an Oklahoma general partnership, at December 31, 2001 and 2000, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 15, 2002
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-A Combined Balance Sheets December 31, 2001 and 2000
ASSETS ------
2001 2000 ---------- ---------- CURRENT ASSETS: Cash and cash equivalents $ 414,467 $1,070,734 Accounts receivable: Oil and gas sales 396,257 1,042,022 General Partner (Note 2) 130,610 - --------- --------- Total current assets $ 941,334 $2,112,756
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 2,204,572 2,827,525
DEFERRED CHARGE 695,623 813,560 --------- --------- $3,841,529 $5,753,841 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 153,728 $ 169,414 Accrued Liability - Other (Note 1) 73,800 - Gas imbalance payable 96,299 103,856 --------- --------- Total current liabilities $ 323,827 $ 273,270
ACCRUED LIABILITY $ 243,327 $ 252,704
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 285,152) ($ 333,839) Limited Partners, issued and outstanding, 484,283 Units 3,559,527 5,561,706 --------- --------- Total Partners' capital $3,274,375 $5,227,867 --------- --------- $3,841,529 $5,753,841 ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-A Combined Statements of Operations For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ---------- ---------- ----------
REVENUES: Oil and gas sales $4,812,392 $5,718,890 $3,762,931 Interest income 31,927 43,440 18,160 Gain on sale of oil and gas properties 137,823 87,841 6,465 Insurance settlement income - - 202,500 --------- --------- --------- $4,982,142 $5,850,171 $3,990,056
COSTS AND EXPENSES: Lease operating $1,538,430 $1,097,459 $1,082,603 Production tax 287,607 321,511 215,157 Depreciation, depletion, and amortization of oil and gas properties 772,466 785,707 599,790 General and administrative 550,462 573,982 571,548 --------- --------- --------- $3,148,965 $2,778,659 $2,469,098 --------- --------- --------- NET INCOME $1,833,177 $3,071,512 $1,520,958 ========= ========= =========
GENERAL PARTNER - NET INCOME $ 249,356 $ 373,521 $ 99,132 ========= ========= =========
LIMITED PARTNERS - NET INCOME $1,583,821 $2,697,991 $1,421,826 ========= ========= =========
NET INCOME per Unit $ 3.27 $ 5.57 $ 2.94 ========= ========= =========
UNITS OUTSTANDING 484,283 484,283 484,283 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-A Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2001, 2000, and 1999
Limited General Partners Partner Total ------------- ---------- -------------
Balance, Dec. 31, 1998 $ 5,469,889 ($417,336) $ 5,052,553 Net income 1,421,826 99,132 1,520,958 Cash distributions ( 1,269,000) ( 61,991) ( 1,330,991) ---------- ------- ----------
Balance, Dec. 31, 1999 $ 5,622,715 ($380,195) $ 5,242,520 Net income 2,697,991 373,521 3,071,512 Cash distributions ( 2,759,000) ( 327,165) ( 3,086,165) ---------- ------- ----------
Balance, Dec. 31, 2000 $ 5,561,706 ($333,839) $ 5,227,867 Net income 1,583,821 249,356 1,833,177 Cash distributions ( 3,586,000) ( 200,669) ( 3,786,669) ---------- ------- ----------
Balance, Dec. 31, 2001 $ 3,559,527 ($285,152) $ 3,274,375 ========== ======= ==========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-A Combined Statements of Cash Flows For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $1,833,177 $3,071,512 $1,520,958 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 772,466 785,707 599,790 Gain on sale of oil and gas properties ( 137,823) ( 87,841) ( 6,465) (Increase) decrease in accounts receivable- oil and gas sales 645,765 ( 339,630) ( 196,110) (Increase) decrease in deferred charge 117,937 ( 80,705) ( 31,369) Increase (decrease) in accounts payable ( 15,686) 56,461 ( 58,809) Increase in accounts payable - other 73,800 - - Decrease in gas imbalance payable ( 7,557) ( 19,945) ( 2,103) Increase (decrease) in accrued liability ( 9,377) 31,266 41,113 --------- --------- --------- Net cash provided by operating activities $3,272,702 $3,416,825 $1,867,005 --------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ($ 149,585) ($ 83,625) ($ 39,957) Proceeds from sale of oil and gas properties 7,285 99,721 14,441 --------- --------- --------- Net cash provided (used) by investing activities ($ 142,300) $ 16,096 ($ 25,516) --------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($3,786,669) ($3,086,165) ($1,330,991) --------- --------- --------- Net cash used by financing activities ($3,786,669) ($3,086,165) ($1,330,991) --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ($ 656,267) $ 346,756 $ 510,498
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,070,734 723,978 213,480 --------- --------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 414,467 $1,070,734 $ 723,978 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B GEODYNE PRODUCTION PARTNERSHIP II-B
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership II-B, an Oklahoma limited partnership, and Geodyne Production Partnership II-B, an Oklahoma general partnership, at December 31, 2001 and 2000, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 15, 2002
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-B Combined Balance Sheets December 31, 2001 and 2000
ASSETS ------
2001 2000 ------------ ------------ CURRENT ASSETS: Cash and cash equivalents $ 262,153 $ 714,162 Accounts receivable: Oil and gas sales 323,116 728,372 --------- --------- Total current assets $ 585,269 $1,442,534
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 1,821,517 1,530,002
DEFERRED CHARGE 214,754 204,209 --------- --------- $2,621,540 $3,176,745 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 126,662 $ 128,102 Gas imbalance payable 48,060 17,720 --------- --------- Total current liabilities $ 174,722 $ 145,822
ACCRUED LIABILITY $ 47,436 $ 87,878
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 302,054) ($ 269,807) Limited Partners, issued and outstanding, 361,719 Units 2,701,436 3,212,852 --------- --------- Total Partners' capital $2,399,382 $2,943,045 --------- --------- $2,621,540 $3,176,745 ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-B Combined Statements of Operations For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ---------- ---------- ---------- REVENUES: Oil and gas sales $3,677,731 $3,937,680 $2,693,717 Interest income 18,313 29,499 9,475 Gain on sale of oil and gas properties 1,187 248,993 21,562 --------- --------- --------- $3,697,231 $4,216,172 $2,724,754
COSTS AND EXPENSES: Lease operating $ 846,524 $ 771,307 $ 785,484 Production tax 206,937 224,174 174,652 Depreciation, depletion, and amortization of oil and gas properties 201,436 787,991 338,190 General and administrative 415,799 429,630 426,100 --------- --------- --------- $1,670,696 $2,213,102 $1,724,426 --------- --------- --------- NET INCOME $2,026,535 $2,003,070 $1,000,328 ========= ========= =========
GENERAL PARTNER - NET INCOME $ 218,951 $ 163,872 $ 63,070 ========= ========= =========
LIMITED PARTNERS - NET INCOME $1,807,584 $1,839,198 $ 937,258 ========= ========= =========
NET INCOME per Unit $ 5.00 $ 5.08 $ 2.59 ========= ========= =========
UNITS OUTSTANDING 361,719 361,719 361,719 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-B Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2001, 2000, and 1999
Limited General Partners Partner Total ------------ ---------- ------------
Balance, Dec. 31, 1998 $3,309,396 ($320,234) $2,989,162 Net income 937,258 63,070 1,000,328 Cash distributions ( 790,000) ( 33,609) ( 823,609) --------- ------- ---------
Balance, Dec. 31, 1999 $3,456,654 ($290,773) $3,165,881 Net income 1,839,198 163,872 2,003,070 Cash distributions ( 2,083,000) ( 142,906) ( 2,225,906) --------- ------- ---------
Balance, Dec. 31, 2000 $3,212,852 ($269,807) $2,943,045 Net income 1,807,584 218,951 2,026,535 Cash distributions ( 2,319,000) ( 251,198) ( 2,570,198) --------- ------- ---------
Balance, Dec. 31, 2001 $2,701,436 ($302,054) $2,399,382 ========= ======= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-B Combined Statements of Cash Flows For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $2,026,535 $2,003,070 $1,000,328 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 201,436 787,991 338,190 Gain on sale of oil and gas properties ( 1,187) ( 248,993) ( 21,562) (Increase) decrease in accounts receivable 405,256 ( 216,333) ( 183,705) (Increase) decrease in deferred charge ( 10,545) 26,111 ( 50,487) Increase (decrease) in accounts payable ( 1,440) 38,790 11,929 Increase (decrease) in gas imbalance payable 30,340 ( 4,170) 2,100 Decrease in accrued liability ( 40,442) ( 9,651) ( 1,152) --------- --------- --------- Net cash provided by operating activities $2,609,953 $2,376,815 $1,095,641 --------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ($ 492,951) ($ 67,336) ($ 45,756) Proceeds from sale of oil and gas properties 1,187 257,751 39,541 --------- --------- --------- Net cash provided (used) by investing activities ($ 491,764) $ 190,415 ($ 6,215) --------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($2,570,198) ($2,225,906) ($ 823,609) --------- --------- --------- Net cash used by financing activities ($2,570,198) ($2,225,906) ($ 823,609) --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ($ 452,009) $ 341,324 $ 265,817
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 714,162 $ 372,838 107,021 --------- --------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 262,153 $ 714,162 $ 372,838 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C GEODYNE PRODUCTION PARTNERSHIP II-C
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership II-C, an Oklahoma limited partnership, and Geodyne Production Partnership II-C, an Oklahoma general partnership, at December 31, 2001 and 2000, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 15, 2002
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-C Combined Balance Sheets December 31, 2001 and 2000
ASSETS ------
2001 2000 ------------ ------------
CURRENT ASSETS: Cash and cash equivalents $ 115,201 $ 412,356 Accounts receivable: Oil and gas sales 137,952 350,577 --------- --------- Total current assets $ 253,153 $ 762,933
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 856,666 878,906
DEFERRED CHARGE 128,827 130,095 --------- --------- $1,238,646 $1,771,934 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 50,950 $ 21,688 Gas imbalance payable 29,876 15,380 --------- --------- Total current liabilities $ 80,826 $ 37,068
ACCRUED LIABILITY $ 29,477 $ 54,138
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 130,178) ($ 105,478) Limited Partners, issued and outstanding, 154,621 Units 1,258,521 1,786,206 --------- --------- Total Partners' capital $1,128,343 $1,680,728 --------- --------- $1,238,646 $1,771,934 ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-C Combined Statements of Operations For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ---------- ---------- ---------- REVENUES: Oil and gas sales $1,640,398 $1,856,040 $1,296,468 Interest income 11,305 13,304 5,862 Gain on sale of oil and gas properties 21,996 90,494 3,257 --------- --------- --------- $1,673,699 $1,959,838 $1,305,587
COSTS AND EXPENSES: Lease operating $ 327,353 $ 285,595 $ 345,340 Production tax 108,506 118,875 94,982 Depreciation, depletion, and amortization of oil and gas properties 104,249 350,665 180,007 General and administrative 188,517 185,566 183,887 --------- --------- --------- $ 728,625 $ 940,701 $ 804,216 --------- --------- --------- NET INCOME $ 945,074 $1,019,137 $ 501,371 ========= ========= =========
GENERAL PARTNER - NET INCOME $ 102,759 $ 132,143 $ 65,752 ========= ========= =========
LIMITED PARTNERS - NET INCOME $ 842,315 $ 886,994 $ 435,619 ========= ========= =========
NET INCOME per Unit $ 5.45 $ 5.74 $ 2.82 ========= ========= =========
UNITS OUTSTANDING 154,621 154,621 154,621 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-C Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2001, 2000, and 1999
Limited General Partners Partner Total ------------ ---------- ------------
Balance, Dec. 31, 1998 $1,765,593 ($133,264) $1,632,329 Net income 435,619 65,752 501,371 Cash distributions ( 390,000) ( 51,633) ( 441,633) --------- ------- ---------
Balance, Dec. 31, 1999 $1,811,212 ($119,145) $1,692,067 Net income 886,994 132,143 1,019,137 Cash distributions ( 912,000) ( 118,476) ( 1,030,476) --------- ------- ---------
Balance, Dec. 31, 2000 $1,786,206 ($105,478) $1,680,728 Net income 842,315 102,759 945,074 Cash distributions ( 1,370,000) ( 127,459) ( 1,497,459) --------- ------- ---------
Balance, Dec. 31, 2001 $1,258,521 ($130,178) $1,128,343 ========= ======= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-C Combined Statements of Cash Flows For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ------------ ------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 945,074 $1,019,137 $ 501,371 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 104,249 350,665 180,007 Gain on sale of oil and gas properties ( 21,996) ( 90,494) ( 3,257) (Increase) decrease in accounts receivable - oil and gas sales 212,625 ( 105,826) ( 87,476) (Increase) decrease in deferred charge 1,268 ( 431) 23,748 Increase (decrease) in accounts payable 29,262 ( 16,667) 8,507 Increase (decrease) in gas imbalance payable 14,496 ( 4,920) ( 17,949) Increase (decrease) in accrued liability ( 24,661) 75 ( 5,245) --------- --------- --------- Net cash provided by operating activities $1,260,317 $1,151,539 $ 599,706 --------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ($ 82,009) ($ 27,273) ($ 29,574) Proceeds from sale of oil and gas properties 21,996 113,746 9,704 --------- --------- --------- Net cash provided (used) by investing activities ($ 60,013) $ 86,473 ($ 19,870) --------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($1,497,459) ($1,030,476) ($ 441,633) --------- --------- --------- Net cash used by financing activities ($1,497,459) ($1,030,476) ($ 441,633) --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ($ 297,155) $ 207,536 $ 138,203
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 412,356 204,820 66,617 --------- --------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 115,201 $ 412,356 $ 204,820 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D GEODYNE PRODUCTION PARTNERSHIP II-D
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership II-D, an Oklahoma limited partnership, and Geodyne Production Partnership II-D, an Oklahoma general partnership, at December 31, 2001 and 2000, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 15, 2002
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-D Combined Balance Sheets December 31, 2001 and 2000
ASSETS ------
2001 2000 ------------ ------------
CURRENT ASSETS: Cash and cash equivalents $ 170,516 $1,432,990 Accounts receivable: Oil and gas sales 315,910 703,180 --------- --------- Total current assets $ 486,426 $2,136,170
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 1,561,694 1,737,343
DEFERRED CHARGE 370,412 397,689 --------- --------- $2,418,532 $4,271,202 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 84,721 $ 54,672 Payable to General Partner (Note 2) 65,905 - Gas imbalance payable 55,098 74,121 --------- --------- Total current liabilities $ 205,724 $ 128,793
ACCRUED LIABILITY $ 112,500 $ 154,927
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 238,692) ($ 180,437) Limited Partners, issued and outstanding, 314,878 Units 2,339,000 4,167,919 --------- --------- Total Partners' capital $2,100,308 $3,987,482 --------- --------- $2,418,532 $4,271,202 ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-D Combined Statements of Operations For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ---------- ---------- ---------- REVENUES: Oil and gas sales $3,581,469 $3,757,651 $2,598,616 Interest income 30,461 34,763 15,031 Gain on sale of oil and gas properties 112,686 514,114 36,944 --------- --------- --------- $3,724,616 $4,306,528 $2,650,591
COSTS AND EXPENSES: Lease operating $ 947,567 $ 672,765 $ 924,509 Production tax 249,523 264,546 182,274 Depreciation, depletion, and amortization of oil and gas properties 344,966 415,030 425,805 General and administrative 364,691 374,358 371,301 --------- --------- --------- $1,906,747 $1,726,699 $1,903,889 --------- --------- --------- NET INCOME $1,817,869 $2,579,829 $ 746,702 ========= ========= =========
GENERAL PARTNER - NET INCOME $ 209,788 $ 291,859 $ 106,047 ========= ========= =========
LIMITED PARTNERS - NET INCOME $1,608,081 $2,287,970 $ 640,655 ========= ========= =========
NET INCOME per Unit $ 5.11 $ 7.27 $ 2.03 ========= ========= =========
UNITS OUTSTANDING 314,878 314,878 314,878 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-D Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2001, 2000, and 1999
Limited General Partners Partner Total ------------ ---------- ------------
Balance, Dec. 31, 1998 $3,818,294 ($247,182) $3,571,112 Net income 640,655 106,047 746,702 Cash distributions ( 819,000) ( 95,125) ( 914,125) --------- ------- ---------
Balance, Dec. 31, 1999 $3,639,949 ($236,260) $3,403,689 Net income 2,287,970 291,859 2,579,829 Cash distributions ( 1,760,000) ( 236,036) ( 1,996,036) --------- ------- ---------
Balance, Dec. 31, 2000 $4,167,919 ($180,437) $3,987,482 Net income 1,608,081 209,788 1,817,869 Cash distributions ( 3,437,000) ( 268,043) ( 3,705,043) --------- ------- ---------
Balance, Dec. 31, 2001 $2,339,000 ($238,692) $2,100,308 ========= ======= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-D Combined Statements of Cash Flows For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $1,817,869 $2,579,829 $ 746,702 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 344,966 415,030 425,805 Gain on sale of oil and gas properties ( 112,686) ( 514,114) ( 36,944) (Increase) decrease in accounts receivable - oil and gas sales 387,270 ( 241,689) ( 119,058) Decrease in deferred charge 27,277 18,123 198,395 Increase (decrease) in accounts payable 30,049 ( 21,736) 8,474 Increase in payable to General Partner 65,905 - - Decrease in gas imbalance payable ( 19,023) ( 40,028) ( 35,499) Increase (decrease) in accrued liability ( 42,427) 8,584 ( 59,872) --------- --------- --------- Net cash provided by operating activities $2,499,200 $2,203,999 $1,128,003 --------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ($ 169,317) ($ 46,036) ($ 14,850) Proceeds from sale of oil and gas properties 112,686 723,535 36,944 --------- --------- --------- Net cash provided (used) by investing activities ($ 56,631) $ 677,499 $ 22,094 --------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($3,705,043) ($1,996,036) ($ 914,125) --------- --------- --------- Net cash used by financing activities ($3,705,043) ($1,996,036) ($ 914,125) --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ($1,262,474) $ 885,462 $ 235,972
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,432,990 547,528 311,556 --------- --------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 170,516 $1,432,990 $ 547,528 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E GEODYNE PRODUCTION PARTNERSHIP II-E
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership II-E, an Oklahoma limited partnership, and Geodyne Production Partnership II-E, an Oklahoma general partnership, at December 31, 2001 and 2000, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 15, 2002
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-E Combined Balance Sheets December 31, 2001 and 2000
ASSETS ------
2001 2000 ------------ ------------
CURRENT ASSETS: Cash and cash equivalents $ 242,032 $ 511,025 Accounts receivable: Oil and gas sales 244,365 541,215 --------- --------- Total current assets 486,397 $1,052,240
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 1,391,297 1,652,204
DEFERRED CHARGE 206,554 204,138 --------- --------- $2,084,248 $2,908,582 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 56,002 $ 29,489 Payable to General Partner (Note 2) 115,045 - Gas imbalance payable 28,035 22,545 --------- --------- Total current liabilities $ 199,082 $ 52,034
ACCRUED LIABILITY $ 26,344 $ 35,904
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 162,380) ($ 133,047) Limited Partners, issued and outstanding, 228,821 Units 2,021,202 2,953,691 --------- --------- Total Partners' capital $1,858,822 $2,820,644 --------- --------- $2,084,248 $2,908,582 ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-E Combined Statements of Operations For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ---------- ---------- ----------
REVENUES: Oil and gas sales $2,561,210 $2,760,885 $1,810,725 Interest income 16,873 23,459 14,505 Gain on sale of oil and gas properties 60,957 135,079 23,406 --------- --------- --------- $2,639,040 $2,919,423 $1,848,636
COSTS AND EXPENSES: Lease operating $ 628,516 $ 394,003 $ 429,026 Production tax 190,175 185,062 128,863 Depreciation, depletion, and amortization of oil and gas properties 312,096 361,842 356,203 General and administrative 272,795 273,055 270,387 --------- --------- --------- $1,403,582 $1,213,962 $1,184,479 --------- --------- --------- NET INCOME $1,235,458 $1,705,461 $ 664,157 ========= ========= =========
GENERAL PARTNER - NET INCOME $ 149,947 $ 200,766 $ 76,030 ========= ========= =========
LIMITED PARTNERS - NET INCOME $1,085,511 $1,504,695 $ 588,127 ========= ========= =========
NET INCOME per Unit $ 4.74 $ 6.58 $ 2.57 ========= ========= =========
UNITS OUTSTANDING 228,821 228,821 228,821 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-E Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2001, 2000, and 1999
Limited General Partners Partner Total ------------ ---------- ------------
Balance, Dec. 31, 1998 $3,165,869 ($173,306) $2,992,563 Net income 588,127 76,030 664,157 Cash distributions ( 812,000) ( 65,310) ( 877,310) --------- ------- ---------
Balance, Dec. 31, 1999 $2,941,996 ($162,586) $2,779,410 Net income 1,504,695 200,766 1,705,461 Cash distributions ( 1,493,000) ( 171,227) ( 1,664,227) --------- ------- ---------
Balance, Dec. 31, 2000 $2,953,691 ($133,047) $2,820,644 Net income 1,085,511 149,947 1,235,458 Cash distributions ( 2,018,000) ( 179,280) ( 2,197,280) --------- ------- ---------
Balance, Dec. 31, 2001 $2,021,202 ($162,380) $1,858,822 ========= ======= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-E Combined Statements of Cash Flows For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $1,235,458 $1,705,461 $ 664,157 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 312,096 361,842 356,203 Gain on sale of oil and gas properties ( 60,957) ( 135,079) ( 23,406) (Increase) decrease in accounts receivable - oil and gas sales 296,850 ( 221,714) ( 99,473) (Increase) decrease in deferred charge ( 2,416) 11,930 59,464 Increase (decrease) in accounts payable 26,513 ( 19,345) 9,953 Increase in payable to General Partner 115,045 - - Increase (decrease) in gas imbalance payable 5,490 ( 128,529) 2,616 Decrease in accrued liability ( 9,560) ( 6,348) ( 38,798) --------- --------- -------- Net cash provided by operating activities $1,918,519 $1,568,218 $ 930,716 --------- --------- --------
CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ( 51,785) ($ 15,129) ($ 7,221) Proceeds from sale of oil and gas properties 61,553 171,330 27,869 --------- --------- -------- Net cash provided by investing activities $ 9,768 $ 156,201 $ 20,648 --------- --------- --------
CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($2,197,280) ($1,664,227) ($ 877,310) --------- --------- -------- Net cash used by financing activities ($2,197,280) ($1,664,227) ($ 877,310) --------- --------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ($ 268,993) $ 60,192 $ 74,054
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 511,025 450,833 376,779 --------- --------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 242,032 $ 511,025 $ 450,833 ========= ========= ========
The accompanying notes are an integral part of these combined financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F GEODYNE PRODUCTION PARTNERSHIP II-F
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership II-F, an Oklahoma limited partnership, and Geodyne Production Partnership II-F, an Oklahoma general partnership, at December 31, 2001 and 2000, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 15, 2002
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-F Combined Balance Sheets December 31, 2001 and 2000
ASSETS ------
2001 2000 ------------ ------------ CURRENT ASSETS: Cash and cash equivalents $ 278,738 $ 441,154 Accounts receivable: Oil and gas sales 229,071 440,181 --------- --------- Total current assets $ 507,809 $ 881,335
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 1,424,064 1,597,803
DEFERRED CHARGE 38,188 34,659 --------- --------- $1,970,061 $2,513,797 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 49,662 $ 21,902 Gas imbalance payable 7,953 7,439 --------- --------- Total current liabilities $ 57,615 $ 29,341
ACCRUED LIABILITY $ 13,875 $ 12,341
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 118,848) ($ 101,577) Limited Partners, issued and outstanding, 171,400 Units 2,017,419 2,573,692 --------- --------- Total Partners' capital $1,898,571 $2,472,115 --------- --------- $1,970,061 $2,513,797 ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-F Combined Statements of Operations For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ---------- ---------- ---------- REVENUES: Oil and gas sales $2,487,886 $2,313,259 $1,665,336 Interest income 15,183 16,519 7,673 Gain on sale of oil and gas properties 24,447 81,494 565 --------- --------- --------- $2,527,516 $2,411,272 $1,673,574
COSTS AND EXPENSES: Lease operating $ 338,068 $ 258,353 $ 350,094 Production tax 165,814 154,262 101,253 Depreciation, depletion, and amortization of oil and gas properties 292,165 213,567 306,818 General and administrative 208,687 204,310 201,912 --------- --------- --------- $1,004,734 $ 830,492 $ 960,077 --------- --------- --------- NET INCOME $1,522,782 $1,580,780 $ 713,497 ========= ========= =========
GENERAL PARTNER - NET INCOME $ 177,055 $ 175,647 $ 98,196 ========= ========= =========
LIMITED PARTNERS - NET INCOME $1,345,727 $1,405,133 $ 615,301 ========= ========= =========
NET INCOME per Unit $ 7.85 $ 8.20 $ 3.59 ========= ========= =========
UNITS OUTSTANDING 171,400 171,400 171,400 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-F Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2001, 2000, and 1999
Limited General Partners Partner Total ------------ ---------- ------------
Balance, Dec. 31, 1998 $2,565,258 ($144,763) $2,420,495 Net income 615,301 98,196 713,497 Cash distributions ( 729,000) ( 66,326) ( 795,326) --------- ------- ---------
Balance, Dec. 31, 1999 $2,451,559 ($112,893) $2,338,666 Net income 1,405,133 175,647 1,580,780 Cash distributions ( 1,283,000) ( 164,331) ( 1,447,331) --------- ------- ---------
Balance, Dec. 31, 2000 $2,573,692 ($101,577) $2,472,115 Net income 1,345,727 177,055 1,522,782 Cash distributions ( 1,902,000) ( 194,326) ( 2,096,326) --------- ------- ---------
Balance, Dec. 31, 2001 $2,017,419 ($118,848) $1,898,571 ========= ======= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-F Combined Statements of Cash Flows For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ------------ ------------ -----------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $1,522,782 $1,580,780 $ 713,497 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 292,165 213,567 306,818 Gain on sale of oil and gas properties ( 24,447) ( 81,494) ( 565) (Increase) decrease in accounts receivable - oil and gas sales 211,110 ( 153,186) ( 99,470) (Increase) decrease in deferred charge ( 3,529) ( 293) 12,007 Increase (decrease) in accounts payable 27,760 ( 5,367) 3,262 Increase in gas imbalance payable 514 2,231 975 Increase (decrease) in accrued liability 1,534 ( 10,167) ( 2,487) --------- --------- -------- Net cash provided by operating activities $2,027,889 $1,546,071 $ 934,037 --------- --------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ($ 118,663) ($ 29,757) ($ 20,155) Proceeds from sale of oil and gas properties 24,684 92,073 8,302 --------- --------- -------- Net cash provided (used) by investing activities ($ 93,979) $ 62,316 ($ 11,853) --------- --------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($2,096,326) ($1,447,331) ($ 795,326) --------- --------- -------- Net cash used by financing activities ($2,096,326) ($1,447,331) ($ 795,326) --------- --------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ($ 162,416) $ 161,056 $ 126,858
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 441,154 280,098 153,240 --------- --------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 278,738 $ 441,154 $ 280,098 ========= ========= ========
The accompanying notes are an integral part of these combined financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G GEODYNE PRODUCTION PARTNERSHIP II-G
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership II-G, an Oklahoma limited partnership, and Geodyne Production Partnership II-G, an Oklahoma general partnership, at December 31, 2001 and 2000, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 15, 2002
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-G Combined Balance Sheets December 31, 2001 and 2000
ASSETS ------
2001 2000 ------------ ------------ CURRENT ASSETS: Cash and cash equivalents $ 625,720 $ 934,304 Accounts receivable: Oil and gas sales 484,681 935,211 --------- --------- Total current assets $1,110,401 $1,869,515
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 3,065,609 3,439,338
DEFERRED CHARGE 83,736 76,673 --------- --------- $4,259,746 $5,385,526 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 105,862 $ 47,021 Gas imbalance payable 17,264 16,142 --------- --------- Total current liabilities $ 123,126 $ 63,163
ACCRUED LIABILITY $ 31,820 $ 31,272
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 146,206) ($ 212,913) Limited Partners, issued and outstanding, 372,189 Units 4,251,006 5,504,004 --------- --------- Total Partners' capital $4,104,800 $5,291,091 --------- --------- $4,259,746 $5,385,526 ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-G Combined Statements of Operations For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ---------- ---------- ---------- REVENUES: Oil and gas sales $5,285,009 $4,915,575 $3,527,599 Interest income 33,161 36,288 16,880 Gain on sale of oil and gas properties 52,118 170,343 1,063 --------- --------- ---------
$5,370,288 $5,122,206 $3,545,542
COSTS AND EXPENSES: Lease operating $ 722,045 $ 554,889 $ 749,121 Production tax 353,557 330,447 216,108 Depreciation, depletion, and amortization of oil and gas properties 627,519 457,355 660,153 General and administrative 429,209 440,954 438,106 --------- --------- --------- $2,132,330 $1,783,645 $2,063,488 --------- --------- ---------
NET INCOME $3,237,958 $3,338,561 $1,482,054 ========= ========= =========
GENERAL PARTNER - NET INCOME $ 376,956 $ 371,389 $ 99,665 ========= ========= =========
LIMITED PARTNERS - NET INCOME $2,861,002 $2,967,172 $1,382,389 ========= ========= =========
NET INCOME per Unit $ 7.69 $ 7.97 $ 3.71 ========= ========= =========
UNITS OUTSTANDING 372,189 372,189 372,189 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-G Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2001, 2000, and 1999
Limited General Partners Partner Total ------------ ---------- ------------
Balance, Dec. 31, 1998 $5,512,443 ($304,885) $5,207,558 Net income 1,382,389 99,665 1,482,054 Cash distributions ( 1,577,000) ( 60,806) ( 1,637,806) --------- ------- ---------
Balance, Dec. 31, 1999 $5,317,832 ($266,026) $5,051,806 Net income 2,967,172 371,389 3,338,561 Cash distributions ( 2,781,000) ( 318,276) ( 3,099,276) --------- ------- ---------
Balance, Dec. 31, 2000 $5,504,004 ($212,913) $5,291,091 Net income 2,861,002 376,956 3,237,958 Cash distributions ( 4,114,000) ( 310,249) ( 4,424,249) --------- ------- ---------
Balance, Dec. 31, 2001 $4,251,006 ($146,206) $4,104,800 ========= ======= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-G Combined Statements of Cash Flows For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ------------ ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES: Net income $3,237,958 $3,338,561 $1,482,054 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 627,519 457,355 660,153 Gain on sale of oil and gas properties ( 52,118) ( 170,343) ( 1,063) (Increase) decrease in accounts receivable - oil and gas sales 450,530 ( 329,275) ( 207,398) (Increase) decrease in deferred charge ( 7,063) 633 24,649 Increase (decrease) in accounts payable 58,841 ( 11,856) 7,492 Increase in gas imbalance payable 1,122 4,854 2,259 Increase (decrease) in accrued liability 548 ( 21,591) ( 4,967) --------- --------- --------- Net cash provided by operating activities $4,317,337 $3,268,338 $1,963,179 --------- --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures ($ 254,554) ($ 62,230) ($ 42,704) Proceeds from sale of oil and gas properties 52,882 193,656 17,979 --------- --------- --------- Net cash provided (used) by investing activities ($ 201,672) $ 131,426 ($ 24,725) --------- --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Cash distributions ($4,424,249) ($3,099,276) ($1,637,806) --------- --------- --------- Net cash used by financing activities ($4,424,249) ($3,099,276) ($1,637,806) --------- --------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ($ 308,584) $ 300,488 $ 300,648
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 934,304 633,816 333,168 --------- --------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 625,720 $ 934,304 $ 633,816 ========= ========= =========
The accompanying notes are an integral part of these combined financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PARTNERS
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H GEODYNE PRODUCTION PARTNERSHIP II-H
In our opinion, the accompanying combined balance sheets and the related combined statements of operations, changes in partners' capital (deficit) and cash flows present fairly, in all material respects, the combined financial position of the Geodyne Energy Income Limited Partnership II-H, an Oklahoma limited partnership, and Geodyne Production Partnership II-H, an Oklahoma general partnership, at December 31, 2001 and 2000, and the combined results of their operations and their cash flows for each of the three years in the period ended December 31, 2001, in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Partnerships' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Tulsa, Oklahoma February 15, 2002
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-H Combined Balance Sheets December 31, 2001 and 2000
ASSETS ------
2001 2000 ------------ ------------ CURRENT ASSETS: Cash and cash equivalents $ 136,988 $ 229,651 Accounts receivable: Oil and gas sales 114,762 223,004 ---------- --------- Total current assets $ 251,750 $ 452,655
NET OIL AND GAS PROPERTIES, utilizing the successful efforts method 721,143 807,844
DEFERRED CHARGE 19,936 17,788 --------- --------- $ 992,829 $1,278,287 ========= =========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) -------------------------------------------
CURRENT LIABILITIES: Accounts payable $ 25,473 $ 11,405 Gas imbalance payable 4,266 3,993 --------- --------- Total current liabilities $ 29,739 $ 15,398
ACCRUED LIABILITY $ 6,430 $ 6,007
PARTNERS' CAPITAL (DEFICIT): General Partner ($ 65,089) ($ 54,632) Limited Partners, issued and outstanding, 91,711 Units 1,021,749 1,311,514 --------- --------- Total Partners' capital $ 956,660 $1,256,882 --------- --------- $ 992,829 $1,278,287 ========= =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-H Combined Statements of Operations For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ---------- ---------- --------- REVENUES: Oil and gas sales $1,257,427 $1,162,286 $ 836,927 Interest income 7,452 8,580 3,613 Gain on sale of oil and gas properties 12,478 39,206 421 --------- --------- -------- $1,277,357 $1,210,072 $ 840,961
COSTS AND EXPENSES: Lease operating $ 175,850 $ 134,727 $ 180,929 Production tax 84,768 79,227 51,729 Depreciation, depletion, and amortization of oil and gas properties 148,028 107,301 157,329 General and administrative 121,142 110,355 108,016 --------- --------- -------- $ 529,788 $ 431,610 $ 498,003 --------- --------- -------- NET INCOME $ 747,569 $ 778,462 $ 342,958 ========= ========= ========
GENERAL PARTNER - NET INCOME $ 87,334 $ 56,035 $ 23,260 ========= ========= ========
LIMITED PARTNERS - NET INCOME $ 660,235 $ 722,427 $ 319,698 ========= ========= ========
NET INCOME per Unit $ 7.20 $ 7.88 $ 3.49 ========= ========= ========
UNITS OUTSTANDING 91,711 91,711 91,711 ========= ========= ========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-H Combined Statements of Changes in Partners' Capital (Deficit) For the Years Ended December 31, 2001, 2000, and 1999
Limited General Partners Partner Total ------------ --------- ------------
Balance, Dec. 31, 1998 $1,306,389 ($75,631) $1,230,758 Net income 319,698 23,260 342,958 Cash distributions ( 372,000) ( 14,243) ( 386,243) --------- ------ ---------
Balance, Dec. 31, 1999 $1,254,087 ($66,614) $1,187,473 Net income 722,427 56,035 778,462 Cash distributions ( 665,000) ( 44,053) ( 709,053) --------- ------ ---------
Balance, Dec. 31, 2000 $1,311,514 ($54,632) $1,256,882 Net income 660,235 87,334 747,569 Cash distributions ( 950,000) ( 97,791) ( 1,047,791) --------- ------ ---------
Balance, Dec. 31, 2001 $1,021,749 ($65,089) $ 956,660 ========= ====== =========
The accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H GEODYNE ENERGY INCOME PRODUCTION PARTNERSHIP II-H Combined Statements of Cash Flows For the Years Ended December 31, 2001, 2000, and 1999
2001 2000 1999 ------------ ----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 747,569 $778,462 $342,958 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion, and amortization of oil and gas properties 148,028 107,301 157,329 Gain on sale of oil and gas properties ( 12,478) ( 39,206) ( 421) (Increase) decrease in accounts receivable - oil and gas sales 108,242 ( 79,128) ( 48,616) (Increase) decrease in deferred charge ( 2,148) 284 5,677 Increase (decrease) in accounts payable 14,068 ( 3,099) 2,096 Increase in gas imbalance payable 273 1,204 2,789 Increase (decrease) in accrued liability 423 ( 5,009) ( 1,047) --------- ------- ------- Net cash provided by operating activities $1,003,977 $760,809 $460,765 --------- ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 61,632) ($ 14,394) ($ 10,121) Proceeds from sale of oil and gas properties 12,783 45,271 4,342 --------- ------- ------- Net cash provided (used) by investing activities ($ 48,849) $ 30,877 ($ 5,779) --------- ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,047,791) ($709,053) ($386,243) --------- ------- ------- Net cash used by financing activities ($1,047,791) ($709,053) ($386,243) --------- ------- -------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ($ 92,663) $ 82,633 $ 68,743
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 229,651 147,018 78,275 --------- ------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 136,988 $229,651 $ 147,018 ========= ======= =======
he accompanying notes are an integral part of these combined financial statements.
GEODYNE ENERGY INCOME PROGRAM II Notes to Combined Financial Statements For the Years Ended December 31, 2001, 2000, and 1999
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Nature of Operations
The Geodyne Energy Income Limited Partnerships (the "Partnerships") were formed pursuant to a public offering of depositary units ("Units"). Upon formation, investors became limited partners (the "Limited Partners") and held Units issued by each Partnership. Geodyne Resources, Inc. is the general partner of each Partnership. Each Partnership is a general partner in the related Geodyne Production Partnership (the "Production Partnership") in which Geodyne Resources, Inc. serves as the managing partner. Limited Partner capital contributions were contributed to the related Production Partnerships for investment in producing oil and gas properties. The Partnerships were activated on the following dates with the following Limited Partner capital contributions.
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
The Partnerships would have terminated on December 31, 2001 in accordance with the partnership agreements for the Partnerships. However, such 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 first two-year extension thereby extending their termination date to December 31, 2003.
For purposes of these financial statements, the Partnerships and Production Partnerships are collectively referred to as the "Partnerships" and the general partner and managing partner are collectively referred to as the "General Partner".
An affiliate of the General Partner owned the following Units at December 31, 2001:
Number of Percent of Partnership Units Owned Outstanding Units ----------- ----------- ----------------- II-A 115,718 23.9% II-B 81,696 22.6% II-C 44,510 28.8% II-D 71,086 22.6% II-E 60,632 26.5% II-F 37,940 22.1% II-G 66,494 17.9% II-H 22,340 24.4%
The Partnerships' sole business is the development and production of oil and gas. Substantially all of the Partnerships' gas reserves are being sold regionally on the "spot market." Due to the highly competitive nature of the spot market, prices on the spot market are subject to wide seasonal and regional pricing fluctuations. In addition, such spot market sales are generally short-term in nature and are dependent upon obtaining transportation services provided by pipelines. The Partnerships' oil is sold at or near the Partnerships' wells under short-term purchase contracts at prevailing arrangements which are customary in the oil industry. The prices received for the Partnerships' oil and gas are subject to influences such as global consumption and supply trends.
Allocation of Costs and Revenues
The combination of the allocation provisions in each Partnership's limited partnership agreement and each Production Partnership's partnership agreement (collectively, the "Partnership Agreement") results in allocations of costs and income between the Limited Partners and General Partner as follows:
Before Payout(1) After Payout(1) ------------------ ------------------ General Limited General Limited Partner Partners Partner Partners -------- -------- -------- -------- Costs(2) - ------------------------ Sales commissions, pay- ment for organization and offering costs and management fee 1% 99% - - Property acquisition costs 1% 99% 1% 99% Identified development drilling 1% 99% 1% 99% Development drilling(3) 5% 95% 15% 85% General and administra- tive costs, direct administrative costs and operating costs(3) 5% 95% 15% 85%
Income(2) - ----------------------- Temporary investments of Limited Partners' subscriptions 1% 99% 1% 99% Income from oil and gas production(3) 5% 95% 15% 85% Gain on sale of produc- ing properties(3) 5% 95% 15% 85% All other income(3) 5% 95% 15% 85%
- ----------
(1) Payout occurs when total distributions to Limited Partners equal total original Limited Partner subscriptions. (2) The allocations in the table result generally from the combined effect of the allocation provisions in the Partnership Agreements. For example, the costs incurred in development drilling are allocated 95.9596% to the limited partnership and 4.0404% to the managing partner. The 95.9596% portion of these costs allocated to the limited partnership, when passed through the limited partnership, is further allocated 99% to the limited partners and 1% to the general partner. In this manner the Limited Partners are allocated 95% of such costs and the General Partner is allocated 5% of such costs. (3) If at payout the Limited Partners have received distributions at an annual rate less than 12% of their subscriptions, the percentage of income and costs allocated to the general partner and managing partner will increase to only 10% and the percentage allocated to the Limited Partners will decrease to only 90%. Thereafter, if the
distribution to Limited Partners reaches an average annual rate of 12% the allocation will change to 15% to the general partner and managing partner and 85% to the Limited Partners.
All Partnerships have achieved payout. The II-D, II-E, and II-F Partnerships achieved payout during the second, third, and first quarters of 1999, respectively. The II-A and II-G Partnerships achieved payout during the first quarter of 2000, and the II-B and II-H Partnerships achieved payout during the fourth quarter of 2000. After payout, operations and revenues for the Partnerships have been and will be allocated using the 10% / 90% after payout percentages as described in Footnote 3 to the table above.
Basis of Presentation
These financial statements reflect the combined accounts of each Partnership after the elimination of all inter-partnership transactions and balances.
Cash and Cash Equivalents
The Partnerships consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash equivalents are not insured, which cause the Partnerships to be subject to risk.
Credit Risks
Accrued oil and gas sales which are due from a variety of oil and gas purchasers subject the Partnerships to a concentration of credit risk. Some of these purchasers are discussed in Note 3 - Major Customers.
Oil and Gas Properties
The Partnerships follow the successful efforts method of accounting for their oil and gas properties. Under the successful efforts method, the Partnerships capitalize all property acquisition costs and development costs incurred in connection with the further development of oil and gas reserves. Property acquisition costs include costs incurred by the Partnerships or the General Partner to acquire producing properties, including related title insurance or examination costs, commissions, engineering, legal and accounting fees, and similar costs directly related to the acquisitions, plus an allocated portion of the General Partners' property screening costs. The acquisition cost to the Partnership of properties acquired by the General Partner is adjusted to reflect the net
cash results of operations, including interest incurred to finance the acquisition, for the period of time the properties are held by the General Partner. Leasehold impairment for unproved properties is based upon an individual property assessment and exploratory experience. Upon discovery of commercial reserves, leasehold costs are transferred to producing properties.
Depletion of the cost of producing oil and gas properties, amortization of related intangible drilling and development costs, and depreciation of tangible lease and well equipment are computed on the units-of-production method. The Partnerships' calculation of depreciation, depletion, and amortization includes estimated dismantlement and abandonment costs, net of estimated salvage values. The depreciation, depletion, and amortization rates per equivalent barrel of oil produced during the years ended December 31, 2001, 2000, and 1999, were as follows:
Partnership 2001 2000 1999 ----------- ----- ----- -----
II-A $3.93 $3.22 $2.18 II-B 1.39 4.63 1.68 II-C 1.62 4.24 1.78 II-D 2.50 2.42 2.11 II-E 2.95 2.88 2.61 II-F 2.69 2.03 2.36 II-G 2.73 2.04 2.40 II-H 2.71 2.02 2.42
When complete units of depreciable property are retired or sold, the asset cost and related accumulated depreciation are eliminated with any gain or loss reflected in income. When less than complete units of depreciable property are retired or sold, the proceeds are credited to oil and gas properties.
The Partnerships evaluate the recoverability of the carrying costs of their proved oil and gas properties at the field level. If the unamortized costs of oil and gas properties within a field exceed the expected undiscounted future cash flows from such properties, the cost of the properties is written down to fair value, which is determined by using the discounted future cash flows from the properties. No impairment provisions were recorded by the Partnerships during the three years ended December 31, 2001.
The risk that the Partnerships will be required to record impairment provisions in the future increases as oil and gas prices decrease.
Deferred Charge
The Deferred Charge represents costs deferred for lease operating expenses incurred in connection with the Partnerships' underproduced gas imbalance positions. The rate used in calculating the deferred charge is the average production costs per Mcf during the period the underproduction occurred. At December 31, 2001 and 2000, cumulative total gas sales volumes for underproduced wells were less than the Partnerships' pro-rata share of total gas production from these wells by the following amounts:
2001 2000 ------------------- ------------------ Partnership Mcf Amount Mcf Amount ----------- ------- --------- ------- --------
II-A 608,807 $ 695,623 712,025 $813,560 II-B 198,106 214,754 191,404 204,209 II-C 179,375 128,827 181,140 130,095 II-D 479,622 370,412 514,941 397,689 II-E 323,326 206,554 321,477 204,138 II-F 66,840 38,188 62,013 34,659 II-G 146,900 83,736 137,283 76,673 II-H 34,185 19,936 31,311 17,788
Accrued Liability - Other
The Accrued Liability - Other at December 31, 2001 for the II-A Partnership represents a charge accrued for the payment of a judgment related to plugging liabilities, which judgment is currently under appeal.
Accrued Liability
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 accrued liability is the average production costs per Mcf during the period the overproduction occurred. At December 31, 2001 and 2000, cumulative total gas sales volumes for overproduced wells exceeded the Partnerships' pro-rata share of total gas production from these wells by the following amounts:
2001 2000 ------------------ ------------------ Partnership Mcf Amount Mcf Amount ----------- ------- -------- ------- --------
II-A 212,959 $243,327 221,166 $252,704 II-B 44,462 47,436 82,368 87,878 II-C 41,043 29,477 75,380 54,138 II-D 145,669 112,500 200,605 154,927 II-E 41,487 26,344 56,542 35,904 II-F 24,180 13,875 22,081 12,341 II-G 56,738 31,820 55,992 31,272 II-H 11,139 6,430 10,573 6,007
Oil and Gas Sales and Gas Imbalance Payable
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 industry. Sales of gas applicable to the Partnerships' interest in producing oil and gas leases are recorded as revenue when the gas is metered and title transferred pursuant to the gas sales contracts covering the Partnerships' interest in gas reserves. During such times as a Partnership's sales of gas exceed its pro rata ownership in a well, such sales are recorded as revenues unless total sales from the well have exceeded the Partnership's share of estimated total gas reserves underlying the property, at which time such excess is recorded as a liability. The rates per Mcf used to calculate this liability are based on the average gas prices received for the volumes at the time the overproduction occurred. This also approximates the price for which the Partnerships are currently settling this liability. At December 31, 2001 and 2000 total sales exceeded the Partnerships' share of estimated total gas reserves as follows:
2001 2000 ------------------ ------------------ Partnership Mcf Amount Mcf Amount ----------- ------ -------- ------ --------
II-A 64,199 $96,299 69,237 $103,856 II-B 32,040 48,060 11,813 17,720 II-C 19,917 29,876 10,253 15,380 II-D 36,732 55,098 49,414 74,121 II-E 18,690 28,035 15,030 22,545 II-F 5,302 7,953 4,959 7,439 II-G 11,509 17,264 10,761 16,142 II-H 2,844 4,266 2,662 3,993
These amounts were recorded as gas imbalance payables in accordance with the sales method. These gas imbalance payables will be settled by either gas production by the underproduced party in excess of current estimates of total gas reserves for the well or by a negotiated or contractual payment to the underproduced party.
The Partnerships have not entered into any hedging or derivative contracts in connection with their production and sale of oil and gas.
General and Administrative Overhead
The General Partner and its affiliates are reimbursed for actual general and administrative costs incurred and attributable to the conduct of the business affairs and operations of the Partnerships.
Use of Estimates in Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Further, the deferred charge, the gas imbalance payable, and the accrued liability all involve estimates which could materially differ from the actual amounts ultimately realized or incurred in the near term. Oil and gas reserves (see Note 4) also involve significant estimates which could materially differ from the actual amounts ultimately realized.
Income Taxes
Income or loss for income tax purposes is includable in the income tax returns of the partners. Accordingly, no recognition has been given to income taxes in these financial statements.
New Accounting Pronouncements
Below is a brief description of Financial Accounting Standards ("FAS") recently issued by the Financial Accounting Standards Board ("FASB") which may have an impact on the Partnerships' future results of operations and financial position.
In July 2001, the FASB issued FAS No. 143, "Accounting for Asset Retirement Obligations", which is effective for fiscal years beginning after June 15, 2002 (January 1, 2003 for the Partnerships). FAS No. 143 will require the recording of the fair value of liabilities associated with the retirement of long-lived assets (mainly plugging and abandonment costs for the Partnerships' depleted wells), in the period in which the liabilities are incurred (at the time the wells are drilled). Management has not yet determined the effect of adopting this statement on the Partnerships' financial condition or results of operations.
In August 2001, the FASB issued FAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets", which is effective for fiscal years beginning after December 15, 2001 (January 1, 2002 for the Partnerships). This statement supersedes FAS No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of". The provisions of FAS No. 144, as they relate to the Partnerships, are essentially the same as FAS No. 121 and thus are not expected to have a significant effect on the Partnerships' financial condition or results of operations.
2. TRANSACTIONS WITH RELATED PARTIES
The Partnerships reimburse the General Partner for the general and administrative overhead applicable to the Partnerships, based on an allocation of actual costs incurred by the General Partner. When actual costs incurred benefit other partnerships and affiliates, the allocation of costs is based on the relationship of the Partnerships' reserves to the total reserves owned by all partnerships and affiliates. The General Partner believes this allocation method is reasonable. Although the actual costs incurred by the General Partner and its affiliates have fluctuated during the three years presented, the amounts charged to the Partnerships have not fluctuated due to expense limitations imposed by the Partnership Agreements. The following is a summary of payments made to the General Partner or its affiliates by the Partnerships for general and administrative overhead costs for the years ended December 31, 2001, 2000, and 1999:
Partnership 2001 2000 1999 ----------- -------- -------- --------
II-A $509,772 $509,772 $509,772 II-B 380,760 380,760 380,760 II-C 162,756 162,756 162,756 II-D 331,452 331,452 331,452 II-E 240,864 240,864 240,864 II-F 180,420 180,420 180,420 II-G 391,776 391,776 391,776 II-H 96,540 96,540 96,540
Affiliates of the Partnerships operate certain of the Partnerships' properties and their policy is to bill the Partnerships for all customary charges and cost reimbursements associated with these activities, together with any compressor rentals, consulting, or other services provided. Such charges are comparable to third party charges in the area where the wells are located and are the same as charged to other working interest owners in the wells.
Payable to General Partner
The Payable to General Partner at December 31, 2001 for the II-D and II-E Partnerships represents litigation costs and settlement of a previously unrecorded liability. Such amounts will be repaid during the first quarter of 2002.
Accounts Receivable - General Partner
The Accounts Receivable - General Partner at December 31, 2001 for the II-A Partnership represents accrued proceeds from a related party for the sale of certain oil and gas properties during December 2001. Such amount was received in January 2002.
3. MAJOR CUSTOMERS
The following table sets forth purchasers who individually accounted for ten percent or more of each Partnership's combined oil and gas sales for the years ended December 31, 2001, 2000 and 1999:
Partnership Purchaser Percentage - ----------- ------------------------ --------------------- 2001 2000 1999 ----- ----- ----- II-A El Paso Energy Marketing Company ("El Paso") 32.1% 27.8% 29.3% Amoco Production Company 12.7% 17.2% 16.3%
II-B El Paso 40.0% 38.0% 37.6% Hallwood - 11.5% 13.6% Amoco Production Company - 10.4% -
II-C El Paso 38.3% 35.6% 35.4%
II-D El Paso 30.4% 28.6% 27.6% Vintage Petroleum Inc. 12.4% - 10.7%
II-E El Paso 45.8% 47.9% 46.3%
II-F El Paso 22.5% 20.7% 23.7% ONEOK Gas Marketing Co. ("ONEOK") 10.5% - -
Chevron U.S.A. Inc. ("Chevron") - - 10.4% Texaco Exploration and Production, Inc. ("Texaco") - - 10.0%
II-G El Paso 22.4% 20.6% 23.5% ONEOK 10.3% - - Chevron - - 10.3% Texaco - - 10.1%
II-H El Paso 22.3% 20.7% 23.3% ONEOK 10.0% - - Texaco - - 10.2% Chevron - - -
In the event of interruption of purchases by one or more of these significant customers or the cessation or material change in availability of open access transportation by the Partnerships' pipeline transporters, the Partnerships may encounter difficulty in marketing their gas and in maintaining historic sales levels. Alternative purchasers or transporters may not be readily available.
4. SUPPLEMENTAL OIL AND GAS INFORMATION
The following supplemental information regarding the oil and gas activities of the Partnerships is presented pursuant to the disclosure requirements promulgated by the SEC.
Capitalized Costs
The capitalized costs and accumulated depreciation, depletion, amortization, and valuation allowance at December 31, 2001 and 2000 were as follows:
II-A Partnership ---------------
2001 2000 ------------- -------------
Proved properties $30,611,015 $30,686,730
Less accumulated deprecia- tion, depletion, amorti- zation, and valuation allowance ( 28,406,443) ( 27,859,205) ---------- ---------- Net oil and gas Properties $ 2,204,572 $ 2,827,525 ========== ==========
II-B Partnership ---------------
2001 2000 ------------- -------------
Proved properties $20,823,909 $20,445,020
Less accumulated deprecia- tion, depletion, amorti- zation, and valuation allowance ( 19,002,392) ( 18,915,018) ---------- ---------- Net oil and gas Properties $ 1,821,517 $ 1,530,002 ========== ==========
II-C Partnership ----------------
2001 2000 ------------ -------------
Proved properties $ 8,917,872 $8,992,289
Less accumulated deprecia- tion, depletion, amorti- zation, and valuation allowance ( 8,061,206) ( 8,113,383) ---------- --------- Net oil and gas Properties $ 856,666 $ 878,906 ========== =========
II-D Partnership ----------------
2001 2000 ------------- -------------
Proved properties $15,061,284 $15,305,902
Less accumulated deprecia- tion, depletion, amorti- zation, and valuation allowance ( 13,499,590) ( 13,568,559) ---------- ---------- Net oil and gas Properties $ 1,561,694 $ 1,737,343 ========== ==========
II-E Partnership ----------------
2001 2000 ------------- -------------
Proved properties $13,370,356 $13,462,347
Less accumulated deprecia- tion, depletion, amorti- zation, and valuation allowance ( 11,979,059) ( 11,810,143) ---------- ---------- Net oil and gas Properties $ 1,391,297 $ 1,652,204 ========== ==========
II-F Partnership ----------------
2001 2000 ------------- -------------
Proved properties $10,699,918 $10,586,512
Less accumulated deprecia- tion, depletion, amorti- zation, and valuation allowance ( 9,275,854) ( 8,988,709) ---------- ---------- Net oil and gas Properties $ 1,424,064 $ 1,597,803 ========== ==========
II-G Partnership ----------------
2001 2000 ------------- -------------
Proved properties $22,868,866 $22,628,667
Less accumulated deprecia- tion, depletion, amorti- zation, and valuation allowance ( 19,803,257) ( 19,189,329) ---------- ---------- Net oil and gas Properties $ 3,065,609 $ 3,439,338 ========== ==========
II-H Partnership ----------------
2001 2000 ------------- -------------
Proved properties $5,502,402 $ 5,445,548
Less accumulated deprecia- tion, depletion, amorti- zation, and valuation allowance ( 4,781,259) ( 4,637,704) --------- ---------- Net oil and gas Properties $ 721,143 $ 807,844 ========= ==========
Costs Incurred
The Partnerships incurred no costs in connection with oil and gas acquisition or exploration activities during 2001, 2000, and 1999. Costs incurred by the Partnerships in connection with oil and gas property development activities during 2001, 2000, and 1999, were as follows:
Partnership 2001 2000 1999 ----------- -------- ------- -------
II-A $149,585 $83,625 $39,957 II-B 492,951 67,336 45,756 II-C 82,009 27,273 29,574 II-D 169,317 46,036 14,850 II-E 51,785 15,129 7,221 II-F 118,663 29,757 20,155 II-G 254,554 62,230 42,704 II-H 61,632 14,394 10,121
Quantities of Proved Oil and Gas Reserves - Unaudited
The following tables summarize changes in net quantities of the Partnerships' proved reserves, all of which are located in the United States of America, for the periods indicated. The proved reserves at December 31, 2001, 2000, and 1999, were estimated by petroleum engineers employed by affiliates of the Partnerships. Certain reserve information was reviewed by Ryder Scott Company, L.P., an independent petroleum engineering firm. The following information includes certain gas balancing adjustments which cause the gas volumes to differ from the reserve reports prepared by the General Partner and reviewed by Ryder Scott.
II-A Partnership ----------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1998 360,463 7,732,781 Production ( 84,033) (1,149,550) Extensions and discoveries 3,888 28,864 Revision of previous estimates 449,713 435,306 ------- ---------
Proved reserves, Dec. 31, 1999 730,031 7,047,401 Production ( 77,024) (1,003,723) Sales of minerals in place ( 14,216) ( 8,706) Extensions and discoveries 12 16,357 Revision of previous estimates ( 90,400) 656,452 ------- ---------
Proved reserves, Dec. 31, 2000 548,403 6,707,781 Production ( 67,519) ( 774,153) Sales of minerals in place - ( 60,382) Extensions and discoveries 18,433 11,955 Revision of previous estimates (125,788) ( 14,943) ------- --------- Proved reserves, Dec. 31, 2001 373,529 5,870,258 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1999 729,967 7,045,456 ======= ========= December 31, 2000 548,403 6,707,781 ======= ========= December 31, 2001 373,529 5,870,258 ======= =========
II-B Partnership ----------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1998 239,827 5,310,753 Production ( 56,749) ( 870,203) Extensions and discoveries 6,352 47,148 Revision of previous estimates 262,357 785,597 ------- ---------
Proved reserves, Dec. 31, 1999 451,787 5,273,295 Production ( 52,155) ( 707,543) Sales of minerals in place ( 19,091) ( 6,778) Extensions and discoveries 8 3,084 Revision of previous estimates ( 18,716) 280,103 ------- ---------
Proved reserves, Dec. 31, 2000 361,833 4,842,161 Production ( 49,375) ( 570,423) Extensions and discoveries 58,881 18,379 Revision of previous estimates ( 86,953) ( 7,061) ------- --------- Proved reserves, Dec. 31, 2001 284,386 4,283,056 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1999 451,787 5,273,295 ======= =========
December 31, 2000 361,833 4,842,161 ======= =========
December 31, 2001 284,386 4,283,056 ======= =========
II-C Partnership ----------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1998 118,667 3,603,745 Production ( 17,691) ( 500,545) Extensions and discoveries 2,725 20,208 Revision of previous estimates 83,580 483,041 ------- ---------
Proved reserves, Dec. 31, 1999 187,281 3,606,449 Production ( 16,424) ( 398,166) Sales of minerals in place ( 28,896) ( 11,837) Revision of previous estimates ( 15,808) 194,596 ------- ---------
Proved reserves, Dec. 31, 2000 126,153 3,391,042 Production ( 14,034) ( 302,093) Extensions and discoveries 8,281 2,345 Revision of previous estimates ( 24,922) 160,543 ------- --------- Proved reserves, Dec. 31, 2001 95,478 3,251,837 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1999 187,281 3,606,449 ======= =========
December 31, 2000 126,153 3,391,042 ======= =========
December 31, 2001 95,478 3,251,837 ======= =========
II-D Partnership ----------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1998 256,982 8,224,693 Production ( 33,890) (1,010,194) Revision of previous estimates 314,019 1,272,422 ------- ---------
Proved reserves, Dec. 31, 1999 537,111 8,486,921 Production ( 32,648) ( 836,567) Sales of minerals in place (269,014) ( 79,651) Extensions and discoveries - 5,023 Revision of previous estimates 18,288 688,616 ------- ---------
Proved reserves, Dec. 31, 2000 253,737 8,264,342 Production ( 18,970) ( 712,930) Sales of minerals in place ( 28,595) - Extensions and discoveries 5,656 1,961,987 Revision of previous estimates ( 18,990) ( 121,541) ------- --------- Proved reserves, Dec. 31, 2001 192,838 9,391,858 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1999 537,111 8,486,921 ======= =========
December 31, 2000 253,737 8,264,342 ======= =========
December 31, 2001 192,838 9,391,858 ======= =========
II-E Partnership ----------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1998 163,199 4,459,632 Production ( 32,352) ( 624,562) Revision of previous estimates 126,214 253,008 ------- ---------
Proved reserves, Dec. 31, 1999 257,061 4,088,078 Production ( 23,708) ( 611,642) Sales of minerals in place ( 9,137) ( 2,995) Extensions and discoveries 951 1,745 Revision of previous estimates 4,556 579,536 ------- ---------
Proved reserves, Dec. 31, 2000 229,723 4,054,722 Production ( 24,064) ( 490,127) Sales of minerals in place ( 17,957) ( 3,024) Revision of previous estimates ( 41,174) 82,011 ------- --------- Proved reserves, Dec. 31, 2001 146,528 3,643,582 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1999 257,061 4,088,078 ======= =========
December 31, 2000 229,723 4,054,722 ======= =========
December 31, 2001 146,528 3,643,582 ======= =========
II-F Partnership ----------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1998 240,941 3,625,312 Production ( 34,859) ( 569,382) Sales of minerals in place ( 183) ( 1,546) Revision of previous estimates 82,817 160,740 ------- ---------
Proved reserves, Dec. 31, 1999 288,716 3,215,124 Production ( 25,175) ( 480,967) Sales of minerals in place ( 6,269) ( 8,348) Extensions and discoveries 4,355 198,944 Revision of previous estimates 7,483 234,113 ------- ---------
Proved reserves, Dec. 31, 2000 269,110 3,158,866 Production ( 30,965) ( 465,214) Sales of minerals in place ( 781) ( 1,865) Extensions and discoveries 2,802 13,721 Revision of previous estimates ( 21,641) 303,403 ------- --------- Proved reserves, Dec. 31, 2001 218,525 3,008,911 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1999 288,716 3,215,124 ======= =========
December 31, 2000 269,110 3,158,866 ======= =========
December 31, 2001 218,525 3,008,911 ======= =========
II-G Partnership ----------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1998 507,493 7,768,284 Production ( 73,361) (1,210,210) Sales of minerals in place ( 414) ( 3,502) Revision of previous estimates 173,496 343,572 ------- ---------
Proved reserves, Dec. 31, 1999 607,214 6,898,144 Production ( 52,807) (1,031,148) Sales of minerals in place ( 13,212) ( 19,115) Extensions and discoveries 10,159 432,005 Revision of previous estimates 13,702 499,559 ------- ---------
Proved reserves, Dec. 31, 2000 565,056 6,779,445 Production ( 64,898) ( 992,099) Sales of minerals in place ( 1,657) ( 5,208) Extensions and discoveries 5,979 31,001 Revision of previous estimates ( 45,326) 626,857 ------- --------- Proved reserves, Dec. 31, 2001 459,154 6,439,996 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1999 607,214 6,898,144 ======= =========
December 31, 2000 565,056 6,779,445 ======= =========
December 31, 2001 459,154 6,439,996 ======= =========
II-H Partnership ----------------
Crude Natural Oil Gas (Barrels) (Mcf) --------- -----------
Proved reserves, Dec. 31, 1998 119,166 1,882,355 Production ( 17,055) ( 287,724) Sales of minerals in place ( 110) ( 925) Revision of previous estimates 40,154 79,652 ------- ---------
Proved reserves, Dec. 31, 1999 142,155 1,673,358 Production ( 12,297) ( 245,490) Sales of minerals in place ( 3,113) ( 4,094) Extensions and discoveries 2,120 106,209 Revision of previous estimates 3,017 116,859 ------- ---------
Proved reserves, Dec. 31, 2000 131,882 1,646,842 Production ( 15,054) ( 237,600) Sales of minerals in place ( 391) ( 1,779) Extensions and discoveries 388 7,897 Revision of previous estimates ( 9,535) 139,973 ------- --------- Proved reserves, Dec. 31, 2001 107,290 1,555,333 ======= =========
PROVED DEVELOPED RESERVES:
December 31, 1999 142,155 1,673,358 ======= =========
December 31, 2000 131,882 1,646,842 ======= =========
December 31, 2001 107,290 1,555,333 ======= =========
5. QUARTERLY FINANCIAL DATA (Unaudited)
Summarized unaudited quarterly financial data for 2001 and 2000 are as follows:
II-A Partnership ----------------
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter(2) ----------- ----------- ----------- ------------
Total Revenues $1,701,369 $1,462,542 $1,060,672 $ 757,559 Gross Profit (1) 1,346,743 1,073,412 640,292 95,658 Net Income (Loss) 1,115,562 857,236 415,574 ( 555,195) Limited Partners' Net Income (Loss) Per Unit 2.06 1.58 .76 ( 1.13)
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter ----------- ----------- ----------- -----------
Total Revenues $1,247,671 $1,414,828 $1,566,227 $1,621,445 Gross Profit (1) 869,809 1,096,962 1,256,439 1,207,991 Net Income 561,801 840,602 1,000,747 668,362 Limited Partners' Net Income Per Unit 1.02 1.54 1.84 1.17 - ----------------------- (1) Total revenues less oil and gas production expenses. (2) Significant decline in Fourth Quarter Net Income resulted from certain significant wells becoming uneconomical, resulting in higher depreciation, depletion and amortization charges.
II-B Partnership ----------------
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter ----------- ----------- ----------- -----------
Total Revenues $1,336,514 $1,109,643 $ 771,827 $ 479,247 Gross Profit (1) 1,109,236 859,733 493,274 181,527 Net Income 944,864 706,495 350,203 24,973 Limited Partners' Net Income Per Unit 2.34 1.75 .86 .05
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter ---------- ----------- ---------- -----------
Total Revenues $ 853,839 $1,022,432 $1,251,513 $1,088,388 Gross Profit (1) 614,129 785,998 1,038,148 782,416 Net Income 414,703 620,241 875,072 93,054 Limited Partners' Net Income Per Unit 1.08 1.62 2.30 .08
- ---------------------- (1) Total revenues less oil and gas production expenses.
II-C Partnership ---------------
------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter ----------- ----------- ----------- ---------
Total Revenues $601,551 $523,962 $353,511 $194,675 Gross Profit (1) 485,332 425,448 254,529 72,531 Net Income 402,194 355,110 187,300 470 Limited Partners' Net Income (Loss) 2.33 2.05 1.08 ( .01) Per Unit
------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter --------- --------- --------- ---------
Total Revenues $406,599 $464,746 $520,590 $567,903 Gross Profit (1) 299,641 361,467 427,618 466,642 Net Income 206,292 282,958 353,916 175,971 Limited Partners' Net Income Per Unit 1.18 1.63 2.04 .89
- ---------------------- (1) Total revenues less oil and gas production expenses.
II-D Partnership ----------------
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter(2) ----------- ----------- ----------- -----------
Total Revenues $1,339,703 $1,132,406 $ 688,145 $ 564,362 Gross Profit (1) 1,083,674 841,186 378,913 223,753 Net Income (Loss) 930,947 709,460 242,992 ( 65,530) Limited Partners' Net Income (Loss) 2.65 2.02 .68 ( .24) Per Unit
--------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter ---------- ---------- ---------- -----------
Total Revenues $ 835,689 $ 881,896 $1,156,941 $1,432,002 Gross Profit (1) 607,460 628,198 931,389 1,202,170 Net Income 422,163 477,620 790,177 889,869 Limited Partners' Net Income Per Unit 1.19 1.35 2.24 2.49
- ---------------------- (1) Total revenues less oil and gas production expenses. (2) Significant decline in Fourth Quarter Net Income resulted from certain significant wells becoming uneconomical, resulting in higher depreciation, depletion and amortization charges..
II-E Partnership ----------------
-------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter(2) ----------- ----------- ----------- ----------
Total Revenues $938,968 $762,473 $488,377 $449,222 Gross Profit (1) 763,378 595,607 320,663 140,701 Net Income (Loss) 638,079 481,211 208,439 ( 92,271) Limited Partners' Net Income (Loss) 2.49 1.88 .80 ( .43) Per Unit
------------------------------------------------------ First Second Third Fourth Quarter Quarter Quarter Quarter --------- --------- --------- ---------
Total Revenues $516,180 $669,309 $979,150 $754,784 Gross Profit (1) 396,887 505,407 833,493 604,571 Net Income 233,825 369,477 685,768 416,391 Limited Partners' Net Income Per Unit .89 1.43 2.66 1.60
- ---------------------- (1) Total revenues less oil and gas production expenses. (2) Significant decline in Fourth Quarter Net Income resulted from certain significant wells becoming uneconomical, resulting in higher depreciation, depletion and amortization charges.
II-F Partnership ----------------
-------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter(2) ----------- ----------- ----------- ----------
Total Revenues $825,777 $782,724 $504,675 $414,340 Gross Profit (1) 688,441 658,001 367,218 309,974 Net Income 572,885 549,055 264,316 136,526 Limited Partners' Net Income 2.98 2.86 1.36 .65 Per Unit
------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter --------- --------- --------- ---------
Total Revenues $519,367 $580,750 $620,485 $690,670 Gross Profit (1) 404,761 482,599 529,734 581,563 Net Income 274,730 380,419 425,092 500,539 Limited Partners' Net Income Per Unit 1.41 1.97 2.20 2.62
- ---------------------- (1) Total revenues less oil and gas production expenses. (2) Significant decline in Fourth Quarter Net Income resulted from certain significant wells becoming uneconomical, resulting in higher depreciation, depletion and amortization charges.
II-G Partnership ----------------
-------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter(2) ----------- ----------- ----------- ----------
Total Revenues $1,754,543 $1,667,262 $1,069,060 $ 879,423 Gross Profit (1) 1,461,563 1,399,769 776,907 656,447 Net Income 1,230,769 1,166,559 556,509 284,121 Limited Partners' Net Income 2.95 2.79 1.32 .63 Per Unit
-------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter ----------- ----------- ----------- ----------
Total Revenues $1,065,655 $1,269,929 $1,317,932 $1,468,690 Gross Profit (1) 820,768 1,057,826 1,123,874 1,234,402 Net Income 538,443 838,513 898,945 1,062,660 Limited Partners' Net Income Per Unit 1.27 2.00 2.15 2.55
- ---------------------- (1) Total revenues less oil and gas production expenses. (2) Significant decline in Fourth Quarter Net Income resulted from certain significant wells becoming uneconomical, resulting in higher depreciation, depletion and amortization charges.
II-H Partnership ----------------
-------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter(2) ----------- ----------- ----------- ----------
Total Revenues $417,812 $397,415 $253,545 $208,585 Gross Profit (1) 347,453 332,733 182,307 154,246 Net Income 280,270 276,390 128,903 62,006 Limited Partners' Net Income 2.73 2.68 1.24 .55 Per Unit
------------------------------------------------------- First Second Third Fourth Quarter Quarter Quarter Quarter --------- --------- --------- ---------
Total Revenues $228,423 $317,504 $314,324 $349,821 Gross Profit (1) 170,102 265,369 267,339 293,308 Net Income 102,747 211,950 212,628 251,137 Limited Partners' Net Income Per Unit 1.05 2.18 2.20 2.45
- ---------------------- (1) Total revenues less oil and gas production expenses. (2) Significant decline in Fourth Quarter Net Income resulted from certain significant wells becoming uneconomical, resulting in higher depreciation, depletion and amortization charges.
INDEX TO EXHIBITS -----------------
Exh. No. Exhibit - --- -------
*4.1 Agreement and Certificate of Limited Partnership dated July 22, 1987 for the Geodyne Energy Income Limited Partnership II-A.
*4.2 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-A.
*4.3 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-A.
*4.4 Third Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-A.
*4.5 Fourth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-A.
*4.6 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-A.
*4.7 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-A.
*4.8 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-A.
*4.9 Agreement and Certificate of Limited Partnership dated October 14, 1987 for the Geodyne Energy Income Limited Partnership II-B.
*4.10 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-B.
*4.11 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-B.
*4.12 Third Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-B.
*4.13 Fourth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-B.
*4.14 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-B.
*4.15 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-B.
*4.16 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-B.
*4.17 Agreement and Certificate of Limited Partnership dated January 13, 1988 for the Geodyne Energy Income Limited Partnership II-C.
*4.18 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-C.
*4.19 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-C.
*4.20 Third Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-C.
*4.21 Fourth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-C.
*4.22 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-C.
*4.23 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-C.
*4.24 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-C.
*4.25 Agreement and Certificate of Limited Partnership dated May 10, 1988 for the Geodyne Energy Income Limited Partnership II-D.
*4.26 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-D.
*4.27 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-D.
*4.28 Third Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-D.
*4.29 Fourth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-D.
*4.30 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-D.
*4.31 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-D.
*4.32 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-D.
*4.33 Agreement and Certificate of Limited Partnership dated September 27, 1988 for the Geodyne Energy Income Limited Partnership II-E.
*4.34 First Amendment to Amended and Restated Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-E.
*4.35 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-E.
*4.36 Third Amendment to Agreement and Certificate of Limited Partnership dated August 31, 1995 for the Geodyne Energy Income Limited Partnership II-E.
*4.37 Fourth Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-E.
*4.38 Fifth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-E.
*4.39 Amended and Restated Certificate of Limited Partnership dated March 9, 1989 for the Geodyne Energy Income Limited Partnership II-E.
*4.40 Second Amendment to Amended and Restated Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-E.
*4.41 Third Amendment to Amended and Restated Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-E.
*4.42 Agreement and Certificate of Limited Partnership dated January 5, 1989 for the Geodyne Energy Income Limited Partnership II-F.
*4.42a Certificate of Limited Partnership dated January 5, 1989, for the Geodyne Energy Income Limited Partnership II-F.
*4.43 First Amendment to Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-F.
*4.44 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-F.
*4.45 Third Amendment to Agreement and Certificate of Limited Partnership dated August 31, 1995 for the Geodyne Energy Income Limited Partnership II-F.
*4.46 Fourth Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-F.
*4.47 Fifth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-F.
*4.48 Second Amendment to Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-F.
*4.49 Third Amendment to Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-F.
*4.50 Agreement and Certificate of Limited Partnership dated April 10, 1989 for the Geodyne Energy Income Limited Partnership II-G.
*4.51 Certificate of Limited Partnership dated April 10, 1989, for the Geodyne Energy Income Limited Partnership II-G.
*4.52 First Amendment to Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 24, 1993 for the Geodyne Energy Income Limited Partnership II-G.
*4.53 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-G.
*4.54 Third Amendment to Agreement and Certificate of Limited Partnership dated August 31, 1995 for the Geodyne Energy Income Limited Partnership II-G.
*4.55 Fourth Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-G.
*4.56 Fifth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-G.
*4.57 Second Amendment to Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-G.
*4.58 Third Amendment to Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-G.
*4.59 Agreement and Certificate of Limited Partnership dated May 17, 1989 for the Geodyne Energy Income Limited Partnership II-H.
*4.60 Certificate of Limited Partnership dated May 17, 1989, for the Geodyne Energy Income Limited Partnership II-H.
*4.61 First Amendment to Certificate of Limited Partnership and First Amendment to Agreement and Certificate of Limited Partnership dated February 25, 1993 for the Geodyne Energy Income Limited Partnership II-H.
*4.62 Second Amendment to Agreement and Certificate of Limited Partnership dated August 4, 1993 for the Geodyne Energy Income Limited Partnership II-H.
*4.63 Third Amendment to Agreement and Certificate of Limited Partnership dated August 31, 1995 for the Geodyne Energy Income Limited Partnership II-H.
*4.64 Fourth Amendment to Agreement and Certificate of Limited Partnership dated July 1, 1996 for the Geodyne Energy Income Limited Partnership II-H.
*4.65 Fifth Amendment to Agreement and Certificate of Limited Partnership dated November 14, 2001 for the Geodyne Energy Income Limited Partnership II-H.
*4.66 Second Amendment to Certificate of Limited Partnership dated July 1, 1996, for the Geodyne Energy Income Limited Partnership II-H.
*4.67 Third Amendment to Certificate of Limited Partnership dated November 14, 2001, for the Geodyne Energy Income Limited Partnership II-H.
*10.1 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-A.
*10.2 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-A.
*10.3 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-A.
*10.4 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-A.
*10.5 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-B.
*10.6 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-B.
*10.7 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-B.
*10.8 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-B.
*10.9 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-C.
*10.10 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-C.
*10.11 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-C.
*10.12 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-C.
*10.13 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-D.
*10.14 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-D.
*10.15 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-D.
*10.16 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-D.
*10.17 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-E.
*10.18 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-E.
*10.19 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-E.
*10.20 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-E.
*10.21 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-F.
*10.22 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-F.
*10.23 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-F.
*10.24 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-F.
*10.25 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-G.
*10.26 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-G.
*10.27 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-G.
*10.28 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-G.
*10.29 Agreement of Partnership dated July 22, 1987 for the Geodyne Production Partnership II-H.
*10.30 First Amendment to Agreement of Partnership dated February 26, 1993 for the Geodyne Production Partnership II-H.
*10.31 Second Amendment to Agreement of Partnership dated July 1, 1996 for the Geodyne Production Partnership II-H.
*10.32 Third Amendment to Agreement of Partnership dated November 14, 2001 for the Geodyne Production Partnership II-H.
*23.1 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-A.
*23.2 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-B.
*23.3 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-C.
*23.4 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-D.
*23.5 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-E.
*23.6 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-F.
*23.7 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-G.
*23.8 Consent of Ryder Scott Company, L.P. for Geodyne Energy Income Limited Partnership II-H.
All other Exhibits are omitted as inapplicable.
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*Filed herewith.