SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 2002
Commission File Number: P-7: 0-20265 P-8: 0-20264
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
---------------------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
P-7 73-1367186
Oklahoma P-8 73-1378683
---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or Number)
organization)
Two West Second Street, Tulsa, Oklahoma 74103
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(918) 583-1791
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
------ ------
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
Yes No X
------ ------
-1-
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2002 2001
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 630,201 $ 349,737
Accounts receivable:
Net Profits 319,774 128,950
---------- ----------
Total current assets $ 949,975 $ 478,687
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 2,497,039 2,633,845
---------- ----------
$3,447,014 $3,112,532
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 108,090) ($ 123,150)
Limited Partners, issued and
outstanding, 188,702 units 3,555,104 3,235,682
---------- ----------
Total Partners' capital $3,447,014 $3,112,532
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-2-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- --------
REVENUES:
Net Profits $537,608 $237,881
Interest income 1,295 3,479
-------- --------
$538,903 $241,360
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 45,764 $ 45,217
General and administrative
(Note 2) 53,988 53,117
-------- --------
$ 99,752 $ 98,334
-------- --------
NET INCOME $439,151 $143,026
======== ========
GENERAL PARTNER - NET INCOME $ 23,723 $ 8,786
======== ========
LIMITED PARTNERS - NET INCOME $415,428 $134,240
======== ========
NET INCOME per unit $ 2.20 $ 0.71
======== ========
UNITS OUTSTANDING 188,702 188,702
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-3-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
------------ -----------
REVENUES:
Net Profits $1,290,855 $1,701,623
Interest income 2,159 15,814
Loss on sale of Net Profits
Interests - ( 252)
---------- ----------
$1,293,014 $1,717,185
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 193,558 $ 167,113
General and administrative
(Note 2) 176,239 173,269
---------- ----------
$ 369,797 $ 340,382
---------- ----------
NET INCOME $ 923,217 $1,376,803
========== ==========
GENERAL PARTNER - NET INCOME $ 53,795 $ 74,734
========== ==========
LIMITED PARTNERS - NET INCOME $ 869,422 $1,302,069
========== ==========
NET INCOME per unit $ 4.61 $ 6.90
========== ==========
UNITS OUTSTANDING 188,702 188,702
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-4-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-7
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $923,217 $1,376,803
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion of Net Profits
Interests 193,558 167,113
Loss on sale of Net Profits
Interests - 252
(Increase) decrease in accounts
receivable - Net Profits ( 190,824) 166,589
-------- ----------
Net cash provided by operating
activities $925,951 $1,710,757
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 56,752) ($ 239,479)
-------- ----------
Net cash used by investing activities ($ 56,752) ($ 239,479)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($588,735) ($1,905,219)
-------- ----------
Net cash used by financing
activities ($588,735) ($1,905,219)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $280,464 ($ 433,941)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 349,737 633,461
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $630,201 $ 199,520
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-5-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
BALANCE SHEETS
(Unaudited)
ASSETS
September 30, December 31,
2002 2001
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 461,057 $ 280,416
Accounts receivable:
Net Profits 216,047 95,199
---------- ----------
Total current assets $ 677,104 $ 375,615
NET PROFITS INTERESTS, net, utilizing
the successful efforts method 1,460,656 1,543,676
---------- ----------
$2,137,760 $1,919,291
========== ==========
PARTNERS' CAPITAL (DEFICIT)
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 46,599) ($ 56,816)
Limited Partners, issued and
outstanding, 116,168 units 2,184,359 1,976,107
---------- ----------
Total Partners' capital $2,137,760 $1,919,291
========== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-6-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- --------
REVENUES:
Net Profits $357,781 $194,816
Interest income 948 3,101
-------- --------
$358,729 $197,917
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $ 30,359 $ 30,277
General and administrative
(Note 2) 33,808 32,985
-------- --------
$ 64,167 $ 63,262
-------- --------
NET INCOME $294,562 $134,655
======== ========
GENERAL PARTNER - NET INCOME $ 15,895 $ 7,789
======== ========
LIMITED PARTNERS - NET INCOME $278,667 $126,866
======== ========
NET INCOME per unit $ 2.40 $ 1.10
======== ========
UNITS OUTSTANDING 116,168 116,168
======== ========
The accompanying condensed notes are an integral part of
these financial statements.
-7-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
-------- ----------
REVENUES:
Net Profits $889,618 $1,247,729
Interest income 1,843 13,256
Loss on sale of Net Profits
Interests - ( 121)
-------- ----------
$891,461 $1,260,864
COSTS AND EXPENSES:
Depletion of Net Profits
Interests $119,493 $ 104,987
General and administrative
(Note 2) 115,190 113,199
-------- ----------
$234,683 $ 218,186
-------- ----------
NET INCOME $656,778 $1,042,678
======== ==========
GENERAL PARTNER - NET INCOME $ 37,526 $ 55,671
======== ==========
LIMITED PARTNERS - NET INCOME $619,252 $ 987,007
======== ==========
NET INCOME per unit $ 5.33 $ 8.50
======== ==========
UNITS OUTSTANDING 116,168 116,168
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-8-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME LIMITED PARTNERSHIP P-8
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
(Unaudited)
2002 2001
---------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $656,778 $1,042,678
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depletion of Net Profits
Interests 119,493 104,987
Loss on sale of Net Profits
Interests - 121
(Increase) decrease in accounts
receivable - Net Profits ( 120,848) 122,596
-------- ----------
Net cash provided by operating
activities $655,423 $1,270,382
-------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 36,473) ($ 148,312)
-------- ----------
Net cash used by investing activities ($ 36,473) ($ 148,312)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($438,309) ($1,386,828)
-------- ----------
Net cash used by financing activities ($438,309) ($1,386,828)
-------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $180,641 ($ 264,758)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 280,416 498,373
-------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $461,057 $ 233,615
======== ==========
The accompanying condensed notes are an integral part of
these financial statements.
-9-
GEODYNE INSTITUTIONAL/PENSION ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The balance sheets as of September 30, 2002, statements of operations for
the three and nine months ended September 30, 2002 and 2001, and
statements of cash flows for the nine months ended September 30, 2002 and
2001 have been prepared by Geodyne Resources, Inc., the General Partner
(the "General Partner") of the Geodyne Institutional/Pension Energy Income
Program II Limited Partnerships (individually, the "P-7 Partnership" or
the "P-8 Partnership", as the case may be, or, collectively, the
"Partnerships"), without audit. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the financial position
at September 30, 2002, the results of operations for the three and nine
months ended September 30, 2002 and 2001, and the cash flows for the nine
months ended September 30, 2002 and 2001.
Information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. The accompanying interim
financial statements should be read in conjunction with the Partnerships'
Annual Report on Form 10-K filed for the year ended December 31, 2001. The
results of operations for the period ended September 30, 2002 are not
necessarily indicative of the results to be expected for the full year.
As used in these financial statements, the Partnerships' net profits and
royalty interests in oil and gas sales are referred to as "Net Profits"
and the Partnerships' net profits and royalty interests in oil and gas
properties are referred to as "Net Profits Interests". The working
interests from which Partnerships' Net Profits Interests are carved are
referred to as "Working Interests".
The Limited Partners' net income or loss per unit is based upon each $100
initial capital contribution.
-10-
NET PROFITS INTERESTS
---------------------
The Partnerships follow the successful efforts method of accounting for
their Net Profits Interests. Under the successful efforts method, the
Partnerships capitalize all acquisition costs. Property acquisition costs
include costs incurred by the Partnerships or the General Partner to
acquire a net profits interest or other non-operating interest in
producing properties, including related title insurance or examination
costs, commissions, engineering, legal and accounting fees, and similar
costs directly related to the acquisitions, plus an allocated portion of
the General Partner's property screening costs. The acquisition cost to
the Partnerships of Net Profits Interests 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 prior to their transfer to the
Partnerships. Impairment of Net Profits Interests is recognized based upon
an individual property assessment.
Depletion of the costs of Net Profits Interests is computed on the
unit-of-production method. The Partnerships' calculation of depletion of
its Net Profits Interests includes estimated dismantlement and abandonment
costs, net of estimated salvage value.
The Partnerships do not directly bear capital costs. However, the
Partnerships indirectly bear certain capital costs incurred by the owners
of the Working Interests to the extent such capital costs are charged
against the applicable oil and gas revenues in calculating the Net Profits
payable to the Partnerships. For financial reporting purposes only, such
capital costs are reported as capital expenditures in the Partnerships'
Statements of Cash Flows.
2. TRANSACTIONS WITH RELATED PARTIES
---------------------------------
The Partnerships' partnership agreements provide for reimbursement to the
General Partner for all direct general and administrative expenses and for
the general and administrative overhead applicable to the Partnerships
based on an allocation of actual costs incurred. During the three months
ended September 30, 2002, the following payments were made to the General
Partner or its affiliates by the Partnerships:
-11-
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
P-7 $4,329 $ 49,659
P-8 3,238 30,570
During the nine months ended September 30, 2002, the following payments
were made to the General Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------- ---------------
P-7 $27,262 $148,977
P-8 23,480 91,710
Affiliates of the Partnerships operate certain of the Partnerships'
properties and their policy is to bill the Partnerships for all customary
charges and cost reimbursements associated with their activities.
-12-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
- -----------------------------------------------
This Quarterly Report contains certain forward-looking statements. The
words "anticipate", "believe", "expect", "plan", "intend", "estimate",
"project", "could", "may" and similar expressions are intended to identify
forward-looking statements. Such statements reflect management's current
views with respect to future events and financial performance. This
Quarterly Report also includes certain information, which is, or is based
upon, estimates and assumptions. Such estimates and assumptions are
management's efforts to accurately reflect the condition and operation of
the Partnerships.
Use of forward-looking statements and estimates and assumptions involve
risks and uncertainties which include, but are not limited to, the
volatility of oil and gas prices, the uncertainty of reserve information,
the operating risk associated with oil and gas properties (including the
risk of personal injury, death, property damage, damage to the well or
producing reservoir, environmental contamination, and other operating
risks), the prospect of changing tax and regulatory laws, the availability
and capacity of processing and transportation facilities, the general
economic climate, the supply and price of foreign imports of oil and gas,
the level of consumer product demand, and the price and availability of
alternative fuels. Should one or more of these risks or uncertainties
occur or should estimates or underlying assumptions prove incorrect,
actual conditions or results may vary materially and adversely from those
stated, anticipated, believed, estimated, and otherwise indicated.
GENERAL
- -------
The Partnerships were formed for the purpose of acquiring Net Profits
Interests located in the continental United States. In general, each
Partnership acquired passive interests in producing properties and does
not directly engage in development drilling or enhanced recovery projects.
Therefore, the economic life of each Partnership is limited to the period
of time required to fully produce its acquired oil and gas reserves. A Net
Profits Interest entitles the Partnerships to a portion of the oil and gas
sales less operating and production expenses and development costs
generated by the owner of the underlying Working Interests. The net
proceeds from the oil and gas operations are distributed to the Limited
Partners and General Partner in accordance with the terms of the
Partnerships' Partnership Agreements.
-13-
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
P-7 February 28, 1992 $18,870,200
P-8 February 28, 1992 $11,616,800
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the Partnerships' Net Profits Interests less necessary
operating capital are distributed to the Limited Partners on a quarterly
basis. Revenues and net proceeds of a Partnership are largely dependent
upon the volumes of oil and gas sold and the prices received for such oil
and gas. While the General Partner cannot predict future pricing trends,
it believes the working capital available as of September 30, 2002 and the
net revenue generated from future operations will provide sufficient
working capital to meet current and future obligations.
Occasional expenditures by the Affiliated Programs for new wells or well
recompletions or workovers, however, may reduce or eliminate cash
available for a particular quarterly cash distribution. During the nine
months ended September 30, 2002, capital expenditures affecting the P-7
Partnership's Net Profits Interests totaled $56,752. These costs were
indirectly incurred as a result of drilling and recompletion activities on
one large unitized property, the Pecos Valley Unit in Pecos County, Texas.
In addition, during the nine months ended September 30, 2001, capital
expenditures affecting the P-7 and P-8 Partnerships' Net Profits Interests
totaled $239,479 and $148,312, respectively. These costs were indirectly
incurred as a result of drilling and recompletion activities on two large
unitized properties, the North Riley Unit and the Robertson North Unit,
both located in Gaines County, Texas.
-14-
Pursuant to the terms of the Partnerships' partnership agreements (the
"Partnership Agreements"), the Partnerships were scheduled to terminate on
February 28, 2002. 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 period to February 28,
2004.
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.
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below.
-15-
The primary source of liquidity and Partnership cash distributions comes
from the net revenues generated from the sale of oil and gas produced from
the Partnerships' oil and gas properties. The level of net revenues is
highly dependent upon the total volumes of oil and natural gas sold. Oil
and gas reserves are depleting assets and will experience production
declines over time, thereby likely resulting in reduced net revenues.
The level of net revenues is also highly dependent upon the prices
received for oil and gas sales, which prices have historically been very
volatile and may continue to be so. Additionally, lower oil and natural
gas prices may reduce the amount of oil and gas that is economic to
produce and reduce the Partnerships' revenues and cash flow. Various
factors beyond the Partnerships' control will affect prices for oil and
natural gas, such as:
* The worldwide and domestic supplies of oil and natural gas;
* The ability of the members of the Organization of Petroleum
Exporting Countries ("OPEC") to agree to and maintain oil prices
and production quotas;
* Political instability or armed conflict in oil-producing regions
or around major shipping areas;
* The level of consumer demand and overall economic activity;
* The competitiveness of alternative fuels;
* Weather conditions;
* The availability of pipelines for transportation; and
* Domestic and foreign government regulations and taxes.
Recently, while economic factors have been relatively unfavorable for oil
and natural gas demand, oil prices have benefited from the political
uncertainty associated with the increase in terrorist activities in parts
of the world. In the last few years, natural gas prices have varied
significantly, from very high prices in late 2000 and early 2001, to low
prices in late 2001 and early 2002, to rising prices in the later part of
2002. The high natural gas prices were associated with cold winter weather
and decreased supply from reduced capital investment for new drilling,
while the low prices were associated with warm winter weather and reduced
economic activity. The more recent increase in prices is the result of
increased demand from weather patterns, the pricing effect of relatively
high oil prices and increased concern about the ability of the industry to
meet any longer-term demand increases based upon current drilling
activity. It is not possible to predict the future direction of oil or
natural gas prices or whether the above discussed trends will remain.
-16-
Operating costs, including General and Administrative Expenses, may not
decline over time or may experience only a gradual decline, thus adversely
affecting net revenues as either production or oil and natural gas prices
decline. In any particular period, net revenues may also be affected by
either the receipt of proceeds from property sales or the incursion of
additional costs as a result of well workovers, recompletions, new well
drilling, and other events.
PROVED RESERVES AND NET PRESENT VALUE
- -------------------------------------
The process of estimating oil and gas reserves is complex, requiring
significant subjective decisions in the evaluation of available
geological, engineering, and economic data for each reservoir. The data
for a given reservoir may change substantially over time as a result of,
among other things, additional development activity, production history,
and viability of production under varying economic conditions;
consequently, it is reasonably possible that material revisions to
existing reserve estimates may occur in the future. Although every
reasonable effort has been made to ensure that these reserve estimates
represent the most accurate assessment possible, the significance of the
subjective decisions required and variances in available data for various
reservoirs make these estimates generally less precise than other
estimates presented in connection with financial statement disclosures.
The following tables summarize changes in net quantities of the
Partnerships' proved reserves, all of which are located in the United
States, for the periods indicated. The proved reserves were estimated by
petroleum engineers employed by affiliates of the Partnerships, and are
annually reviewed by an independent engineering firm. "Proved reserves"
refers to those estimated quantities of crude oil, gas, and gas liquids
which geological and engineering data demonstrate with reasonable
certainty to be recoverable in future years from known oil and gas
reservoirs under existing economic and operating conditions. The following
information includes certain gas balancing adjustments which cause the gas
volume to differ from the reserve reports prepared by the General Partner.
-17-
P-7 Partnership
---------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2001 987,135 4,013,307
Production ( 65,988) ( 254,734)
Extensions and discoveries 24,472 23,597
Revisions of previous
estimates 33,607 16,804
------- ---------
Proved reserves, Sept. 30, 2002 979,226 3,798,974
======= =========
P-8 Partnership
---------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2001 581,477 2,812,267
Production ( 40,523) ( 209,527)
Extensions and discoveries 14,534 12,929
Revisions of previous
estimates 19,142 46,049
------- ---------
Proved reserves, Sept. 30, 2002 574,630 2,661,718
======= =========
In addition to the volume changes, the net present value of the
Partnerships' reserves may change dramatically as oil and gas prices
change or as volumes change for the reasons described above. Net present
value represents estimated future gross cash flow from the production and
sale of proved reserves, net of estimated oil and gas production costs
(including production taxes, ad valorem taxes, and operating expenses) and
estimated future development costs, discounted at 10% per annum.
-18-
The following table indicates the estimated net present value of the
Partnerships' proved reserves as of December 31, 2001 and September 30,
2002. Net present value attributable to the Partnerships' proved reserves
was calculated on the basis of current costs and prices as of the date of
estimation. Such prices were $16.75 per barrel and $2.65 per Mcf as of
December 31, 2001 and $27.25 per barrel and $3.76 per Mcf as of September
30, 2002. Such prices were not escalated except in certain circumstances
where escalations were fixed and readily determinable in accordance with
applicable contract provisions. 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
the date the net present value was estimated. There can be no assurance
that the prices used in calculating the net present value of the
Partnerships' proved reserves will actually be realized for such
production.
Net Present Value of Reserves
---------------------------------
Partnership 12/31/01 9/30/02
----------- ---------- -----------
P-7 $6,076,323 $10,965,770
P-8 $4,102,966 $ 7,227,591
P-7 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2001.
Three Months Ended September 30,
--------------------------------
2002 2001
-------- --------
Net Profits $537,608 $237,881
Barrels produced 18,301 13,785
Mcf produced 86,102 85,796
Average price/Bbl $ 27.38 $ 25.37
Average price/Mcf $ 2.90 $ 2.51
As shown in the table above, total Net Profits increased $299,727 (126.0%)
for the three months ended September 30, 2002 as compared to the three
months ended September 30, 2001. Of this increase, approximately (i)
$115,000 was related to an increase in volumes of oil sold, (ii) $114,000
was related to a decrease in production expenses, and (iii) $37,000 and
$34,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil and gas sold increased 4,516 barrels and
306 Mcf, respectively, for the three months ended September 30, 2002 as
compared to the three months ended September 30, 2001. The increase in
volumes of oil sold was primarily due to an
-19-
increase in production on one significant well due to the successful
workover of that well during mid 2001. The increase in volumes of gas sold
was primarily due to a positive prior period volume adjustment made by the
purchaser on one significant well during the three months ended September
30, 2002, which increase was substantially offset by a negative prior
period gas balancing adjustment on another significant well during the
three months ended September 30, 2002. The decrease in production expenses
was primarily due to (i) a negative prior period lease operating expense
adjustment on one significant well during the three months ended September
30, 2002, (ii) workover expenses incurred on another significant well
during the three months ended September 30, 2001, and (iii) a decrease in
workover expenses incurred on two wells within the same unit during the
three months ended September 30, 2002 as compared to the three months
ended September 30, 2001. Average oil and gas prices increased to $27.38
per barrel and $2.90 per Mcf, respectively, for the three months ended
September 30, 2002 from $25.37 per barrel and $2.51 per Mcf, respectively,
for the three months ended September 30, 2001.
Depletion of Net Profits Interests increased $547 (1.2%) for the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of Net Profits, this expense decreased
to 8.5% for the three months ended September 30, 2002 from 19.0% for the
three months ended September 30, 2001. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses increased $871 (1.6%) for the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of Net Profits, these expenses
decreased to 10.0% for the three months ended September 30, 2002 from
22.3% for the three months ended September 30, 2001. This percentage
decrease was primarily due to the increase in Net Profits.
-20-
NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2001.
Nine Months Ended September 30,
-------------------------------
2002 2001
---------- ----------
Net Profits $1,290,855 1,701,623
Barrels produced 65,988 53,128
Mcf produced 254,734 304,011
Average price/Bbl $ 22.77 $ 26.03
Average price/Mcf $ 2.60 $ 4.17
As shown in the table above, total Net Profits decreased $410,768 (24.1%)
for the nine months ended September 30, 2002 as compared to the nine
months ended September 30, 2001. Of this decrease, approximately (i)
$215,000 and $401,000, respectively, were related to decreases in the
average prices of oil and gas sold and (ii) $205,000 was related to a
decrease in volumes of gas sold. These decreases were partially offset by
increases of approximately (i) $335,000 related to an increase in volumes
of oil sold and (ii) $75,000 related to a decrease in production expenses.
Volumes of oil sold increased 12,860 barrels, while volumes of gas sold
decreased 49,277 Mcf for the nine months ended September 30, 2002 as
compared to the nine months ended September 30, 2001. 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 the
nine months ended September 30, 2002 and (ii) an increase in production on
another significant well due to the successful recompletion of that well
during mid 2001. The decrease in volumes of gas sold was primarily due to
(i) a negative prior period gas balancing adjustment on one significant
well during the nine months ended September 30, 2002, (ii) a positive
prior period volume adjustment made by the operator on another significant
well during the nine months ended September 30, 2001, and (iii) normal
declines in production. The decrease in production expenses was primarily
due to (i) a decrease in production taxes associated with the decrease in
oil and gas sales, (ii) a negative prior period lease operating expense
adjustment on one significant well during the nine months ended September
30, 2002, and (iii) workover expenses incurred on another significant well
during the nine months ended September 30, 2001. These decreases were
partially offset by an increase in workover expenses incurred on two wells
within the same unit during the nine months ended September 30, 2002 as
compared to the nine months ended September 30, 2001. Average oil and gas
prices decreased to $22.77 per barrel and $2.60 per Mcf, respectively, for
the nine months ended September 30, 2002 from $26.03 per barrel and $4.17
per Mcf, respectively, for the nine months ended September 30, 2001.
-21-
Depletion of Net Profits Interests increased $26,445 (15.8%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. This increase was primarily due to (i) an increase in
depletable Net Profits Interests primarily due to developmental drilling
on two large unitized properties during the nine months ended September
30, 2002 and (ii) the increase in volumes of oil sold. As a percentage of
Net Profits, this expense increased to 15.0% for the nine months ended
September 30, 2002 from 9.8% for the nine months ended September 30, 2001.
This percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
General and administrative expenses increased $2,970 (1.7%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. As a percentage of Net Profits, these expenses
increased to 13.7% for the nine months ended September 30, 2002 from 10.2%
for the nine months ended September 30, 2001. This percentage increase was
primarily due to the decrease in Net Profits.
Cumulative cash distributions to the Limited Partners through September
30, 2002 were $16,243,916 or 86.08% of the Limited Partners' capital
contributions.
P-8 PARTNERSHIP
THREE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2001.
Three Months Ended September 30,
--------------------------------
2002 2001
-------- --------
Net Profits $357,781 $194,816
Barrels produced 11,277 9,029
Mcf produced 66,669 71,111
Average price/Bbl $ 27.52 $ 25.08
Average price/Mcf $ 2.84 $ 2.59
As shown in the table above, total Net Profits increased $162,965 (83.7%)
for the three months ended September 30, 2002 as compared to the three
months ended September 30, 2001. Of this increase, approximately (i)
$74,000 was related to a decrease in production expenses, (ii) $56,000 was
related to an increase in volumes of oil sold, and (iii) $28,000 and
$17,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil sold increased 2,248 barrels, while
volumes of gas sold decreased 4,442 Mcf for the three months ended
September 30, 2002 as compared to the three months ended September 30,
2001. The increase in volumes of oil sold was primarily due to a positive
prior period volume adjustment made by the operator on one significant
well during the three months
-22-
ended September 30, 2002. The decrease in volumes of gas sold was
primarily due to a negative gas balancing adjustment on one significant
well during the three months ended September 30, 2002, which decrease was
partially offset by a positive prior period volume adjustment made by the
purchaser on another significant well during the three months ended
September 30, 2002. The decrease in production expenses was primarily due
to (i) workover expenses incurred on one significant well during the three
months ended September 30, 2001, (ii) a negative prior period lease
operating expense adjustment on another significant well during the three
months ended September 30, 2002, and (iii) a decrease in workover expenses
incurred on two wells within the same unit during the three months ended
September 30, 2002 as compared to the three months ended September 30,
2001. Average oil and gas prices increased to $27.52 per barrel and $2.84
per Mcf, respectively, for the three months ended September 30, 2002 from
$25.08 per barrel and $2.59 per Mcf, respectively, for the three months
ended September 30, 2001.
Depletion of Net Profits Interests remained relatively constant for the
three months ended September 30, 2002 and 2001. As a percentage of Net
Profits, this expense decreased to 8.4% for the three months ended
September 30, 2002 from 15.5% for the three months ended September 30,
2001. This percentage decrease was primarily due to the increases in the
average prices of oil and gas sold.
General and administrative expenses increased $823 (2.5%) for the three
months ended September 30, 2002 as compared to the three months ended
September 30, 2001. As a percentage of Net Profits, these expenses
decreased to 9.3% for the three months ended September 30, 2002 from 16.9%
for the three months ended September 30, 2001. This percentage decrease
was primarily due to the increase in Net Profits.
NINE MONTHS ENDED SEPTEMBER 30, 2002 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2001.
Nine Months Ended September 30,
-------------------------------
2002 2001
-------- ----------
Net Profits $889,618 $1,247,729
Barrels produced 40,523 33,073
Mcf produced 209,527 235,990
Average price/Bbl $ 22.83 $ 25.87
Average price/Mcf $ 2.58 $ 4.28
As shown in the table above, total Net Profits decreased $358,111 (28.7%)
for the nine months ended September 30, 2002 as compared to the nine
months ended September 30, 2001. Of this decrease, approximately (i)
$123,000 and
-23-
$357,000, respectively, were related to decreases in the average prices of
oil and gas sold and (ii) $114,000 was related to a decrease in volumes of
gas sold. These decreases were partially offset by increases of
approximately (i) $193,000 related to an increase in volumes of oil sold
and (ii) $43,000 related to a decrease in production expenses. Volumes of
oil sold increased 7,450 barrels, while volumes of gas sold decreased
26,463 Mcf for the nine months ended September 30, 2002 as compared to the
nine months ended September 30, 2001. 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 the nine months ended
September 30, 2002 and (ii) an increase in production on another
significant well due to the successful recompletion of that well during
mid 2001. The decrease in volumes of gas sold was primarily due to (i) a
negative prior period gas balancing adjustment on one significant well
during the nine months ended September 30, 2002, (ii) a positive prior
period volume adjustment made by the operator on one significant well
during the nine months ended September 30, 2001, and (iii) normal declines
in production. The decrease in production expenses was primarily due to
(i) a decrease in production taxes associated with the decrease in oil and
gas sales, (ii) workover expenses incurred on one significant well during
the nine months ended September 30, 2001, and (iii) a negative prior
period lease operating expense adjustment on another significant well
during the nine months ended September 30, 2002. These decreases were
partially offset by an increase in workover expenses incurred on two wells
within the same unit during the nine months ended September 30, 2002 as
compared to the nine months ended September 30, 2001. Average oil and gas
prices decreased to $22.83 per barrel and $2.58 per Mcf, respectively, for
the nine months ended September 30, 2002 from $25.87 per barrel and $4.28
per Mcf, respectively, for the nine months ended September 30, 2001.
Depletion of Net Profits Interests increased $14,506 (13.8%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. This increase was primarily due to (i) an increase in
depletable Net Profits Interests primarily due to developmental drilling
on two large unitized properties during the nine months ended September
30, 2002 and (ii) the increase in volumes of oil sold. As a percentage of
Net Profits, this expense increased to 13.4% for the nine months ended
September 30, 2002 from 8.4% for the nine months ended September 30, 2001.
This percentage increase was primarily due to the decreases in the average
prices of oil and gas sold.
-24-
General and administrative expenses increased $1,991 (1.8%) for the nine
months ended September 30, 2002 as compared to the nine months ended
September 30, 2001. As a percentage of Net Profits, these expenses
increased to 12.9% for the nine months ended September 30, 2002 from 9.1%
for the nine months ended September 30, 2001. This percentage increase was
primarily due to the decrease in Net Profits.
Cumulative cash distributions to the Limited Partners through September
30, 2002 were $10,497,583 or 90.37% of the Limited Partners' capital
contributions.
-25-
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK.
The Partnerships do not hold any market risk sensitive instruments.
ITEM 4. EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Within the 90 days prior to the date of this report, the
Partnerships carried out an evaluation under the supervision and
with the participation of the Partnerships' management, including
their chief executive officer and chief financial officer, of the
effectiveness of the design and operation of the Partnerships'
disclosure controls and procedures pursuant to Rule 13a-14 of the
Securities Exchange Act of 1934. Based upon that evaluation, the
Partnerships' chief executive officer and chief financial officer
concluded that the Partnerships' disclosure controls and procedures
are effective in timely alerting them to material information
relating to the Partnerships required to be included in the
Partnerships' periodic filings with the SEC. There have been no
significant changes in the Partnerships' internal controls or in
other factors which could significantly affect the Partnerships'
internal controls subsequent to the date the Partnerships carried
out this evaluation.
-26-
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
99.1 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the P-7 Partnership.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the P-8 Partnership.
(b) Reports on Form 8-K.
None.
-27-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GEODYNE INSTITUTIONAL/PENSION ENERGY
INCOME LIMITED PARTNERSHIP P-7
GEODYNE INSTITUTIONAL/PENSION ENERGY
INCOME LIMITED PARTNERSHIP P-8
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: November 14, 2002 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: November 14, 2002 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
-28-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne
Institutional/Pension Energy Income Limited Partnership P-7;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-29-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 14th day of November, 2002.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief Executive Officer)
-30-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne
Institutional/Pension Energy Income Limited Partnership P-7;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-31-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 14th day of November, 2002.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Financial Officer
-32-
CERTIFICATION
-------------
I, Dennis R. Neill, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne
Institutional/Pension Energy Income Limited Partnership P-8;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-33-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 14th day of November, 2002.
//s// Dennis R. Neill
- ----------------------------------
Dennis R. Neill
President (Chief Executive Officer)
-34-
CERTIFICATION
-------------
I, Craig D. Loseke, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Geodyne
Institutional/Pension Energy Income Limited Partnership P-8;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
-35-
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Dated this 14th day of November, 2002.
//s// Craig D. Loseke
- ----------------------------------
Craig D. Loseke
Chief Financial Officer
-36-
INDEX TO EXHIBITS
-----------------
Exh.
No. Exhibit
- ---- -------
99.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Institutional/Pension Energy Income Limited Partnership P-7.
99.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Institutional/Pension Energy Income Limited Partnership P-8.
-37-