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 March 31, 2004
Commission File Number:
II-A: 0-16388 II-D: 0-16980 II-G: 0-17802
II-B: 0-16405 II-E: 0-17320 II-H: 0-18305
II-C: 0-16981 II-F: 0-17799
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
---------------------------------------------------------
(Exact name of Registrant as specified in its Articles)
II-A 73-1295505
II-B 73-1303341
II-C 73-1308986
II-D 73-1329761
II-E 73-1324751
II-F 73-1330632
II-G 73-1336572
Oklahoma II-H 73-1342476
- ---------------------------- -------------------------------
(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or 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 ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,279,590 $1,428,609
Accounts receivable:
Oil and gas sales 844,723 761,616
---------- ----------
Total current assets $2,124,313 $2,190,225
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,194,917 2,232,731
DEFERRED CHARGE 650,100 650,100
---------- ----------
$4,969,330 $5,073,056
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 186,724 $ 264,588
Accrued liability - other (Note 1) 26,672 26,672
Gas imbalance payable 91,463 91,463
Asset retirement obligation -
current 12,096 9,874
---------- ----------
Total current liabilities $ 316,955 $ 392,597
LONG-TERM LIABILITIES:
Accrued liability $ 207,595 $ 207,595
Asset retirement obligation
(Note 1) 268,210 268,040
---------- ----------
Total long-term liabilities $ 475,805 $ 475,635
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 214,062) ($ 232,071)
Limited Partners, issued and
outstanding, 484,283 units 4,390,632 4,436,895
---------- ----------
Total Partners' capital $4,176,570 $4,204,824
---------- ----------
$4,969,330 $5,073,056
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-2-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
---------- ----------
REVENUES:
Oil and gas sales $1,329,152 $1,475,057
Interest income 1,173 1,445
---------- ----------
$1,330,325 $1,476,502
COSTS AND EXPENSES:
Lease operating $ 276,344 $ 275,970
Production tax 79,601 97,535
Depreciation, depletion, and
amortization of oil and gas
properties 47,582 58,504
General and administrative
(Note 2) 142,462 145,218
---------- ----------
$ 545,989 $ 577,227
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $ 784,336 $ 899,275
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - 5,849
---------- ----------
NET INCOME $ 784,336 $ 905,124
========== ==========
GENERAL PARTNER - NET INCOME $ 82,599 $ 95,107
========== ==========
LIMITED PARTNERS - NET INCOME $ 701,737 $ 810,017
========== ==========
NET INCOME per unit $ 1.45 $ 1.67
========== ==========
UNITS OUTSTANDING 484,283 484,283
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-3-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE PRODUCTION PARTNERSHIP II-A
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 784,336 $905,124
Adjustments to reconcile net
income to net cash provided
by operating activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - ( 5,849)
Depreciation, depletion, and
amortization of oil and gas
properties 47,582 58,504
Increase in accounts receivable -
oil and gas sales ( 83,107) ( 350,048)
Decrease in accounts payable ( 82,509) ( 63,676)
---------- --------
Net cash provided by operating
activities $ 666,302 $544,055
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 3,208) ($ 27,898)
Proceeds from sale of oil and
gas properties 477 3,399
---------- --------
Net cash used by investing activities ($ 2,731) ($ 24,499)
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 812,590) ($401,570)
---------- --------
Net cash used by financing activities ($ 812,590) ($401,570)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 149,019) $117,986
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,428,609 794,035
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,279,590 $912,021
========== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-4-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 895,894 $ 933,790
Accounts receivable:
Oil and gas sales 606,519 546,637
---------- ----------
Total current assets $1,502,413 $1,480,427
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,651,771 1,683,184
DEFERRED CHARGE 238,135 238,135
---------- ----------
$3,392,319 $3,401,746
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 131,497 $ 154,705
Gas imbalance payable 47,276 47,276
Asset retirement obligation -
current 13,086 13,046
---------- ----------
Total current liabilities $ 191,859 $ 215,027
LONG-TERM LIABILITIES:
Accrued liability $ 48,773 $ 48,773
Asset retirement obligation
(Note 1) 190,787 189,095
---------- ----------
Total long-term liabilities $ 239,560 $ 237,868
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 245,706) ($ 254,807)
Limited Partners, issued and
outstanding, 361,719 units 3,206,606 3,203,658
---------- ----------
Total Partners' capital $2,960,900 $2,948,851
---------- ----------
$3,392,319 $3,401,746
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-5-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
-------- ----------
REVENUES:
Oil and gas sales $967,481 $1,023,483
Interest income 805 926
-------- ----------
$968,286 $1,024,409
COSTS AND EXPENSES:
Lease operating $197,551 $ 168,761
Production tax 67,349 75,065
Depreciation, depletion, and
amortization of oil and gas
properties 33,431 39,712
General and administrative
(Note 2) 107,870 111,177
-------- ----------
$406,201 $ 394,715
-------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $562,085 $ 629,694
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - 4,347
-------- ----------
NET INCOME $562,085 $ 634,041
======== ==========
GENERAL PARTNER - NET INCOME $ 59,137 $ 66,494
======== ==========
LIMITED PARTNERS - NET INCOME $502,948 $ 567,547
======== ==========
NET INCOME per unit $ 1.39 $ 1.57
======== ==========
UNITS OUTSTANDING 361,719 361,719
======== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-6-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE PRODUCTION PARTNERSHIP II-B
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $562,085 $634,041
Adjustments to reconcile net
income to net cash provided
by operating activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - ( 4,347)
Depreciation, depletion, and
amortization of oil and gas
properties 33,431 39,712
Increase in accounts receivable -
oil and gas sales ( 59,882) ( 210,089)
Decrease in accounts payable ( 24,257) ( 36,787)
-------- --------
Net cash provided by operating
activities $511,377 $422,530
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of oil and gas
properties $ 763 $ 3,190
-------- --------
Net cash provided by investing
activities $ 763 $ 3,190
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($550,036) ($256,887)
-------- --------
Net cash used by financing activities ($550,036) ($256,887)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 37,896) $168,833
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 933,790 478,067
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $895,894 $646,900
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-7-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 433,817 $ 467,560
Accounts receivable:
Oil and gas sales 296,224 267,786
---------- ----------
Total current assets $ 730,041 $ 735,346
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 768,041 786,821
DEFERRED CHARGE 123,244 123,244
---------- ----------
$1,621,326 $1,645,411
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 61,794 $ 69,889
Gas imbalance payable 25,952 25,952
Asset retirement obligation -
current 8,775 8,575
---------- ----------
Total current liabilities $ 96,521 $ 104,416
LONG-TERM LIABILITIES:
Accrued Liability $ 35,434 $ 35,434
Asset retirement obligation
(Note 1) 63,112 62,598
---------- ----------
Total long-term liabilities $ 98,546 $ 98,032
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 102,781) ($ 106,418)
Limited Partners, issued and
outstanding, 154,621 units 1,529,040 1,549,381
---------- ----------
Total Partners' capital $1,426,259 $1,442,963
---------- ----------
$1,621,326 $1,645,411
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-8-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
-------- --------
REVENUES:
Oil and gas sales $481,020 $523,234
Interest income 391 477
-------- --------
$481,411 $523,711
COSTS AND EXPENSES:
Lease operating $ 93,926 $ 76,543
Production tax 35,997 40,340
Depreciation, depletion, and
amortization of oil and gas
properties 19,423 23,927
General and administrative
(Note 2) 49,434 53,667
-------- --------
$198,780 $194,477
-------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $282,631 $329,234
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - 74
-------- --------
NET INCOME $282,631 $329,308
======== ========
GENERAL PARTNER - NET INCOME $ 29,972 $ 35,030
======== ========
LIMITED PARTNERS - NET INCOME $252,659 $294,278
======== ========
NET INCOME per unit $ 1.63 $ 1.90
======== ========
UNITS OUTSTANDING 154,621 154,621
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-9-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE PRODUCTION PARTNERSHIP II-C
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $282,631 $329,308
Adjustments to reconcile net
income to net cash provided
by operating activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - ( 74)
Depreciation, depletion, and
amortization of oil and gas
properties 19,423 23,927
Increase in accounts receivable -
oil and gas sales ( 28,438) ( 114,331)
Decrease in accounts payable ( 8,351) ( 7,164)
-------- --------
Net cash provided by operating
activities $265,265 $231,666
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 107)
Proceeds from sale of oil and
gas properties 327 1,347
-------- --------
Net cash provided by investing
activities $ 327 $ 1,240
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($299,335) ($143,108)
-------- --------
Net cash used by financing
activities ($299,335) ($143,108)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 33,743) $ 89,798
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 467,560 250,767
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $433,817 $340,565
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-10-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 882,879 $ 908,655
Accounts receivable:
Oil and gas sales 651,367 559,179
---------- ----------
Total current assets $1,534,246 $1,467,834
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,470,807 1,539,915
DEFERRED CHARGE 352,392 352,392
---------- ----------
$3,357,445 $3,360,141
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 132,140 $ 167,028
Gas imbalance payable 43,698 43,698
Asset retirement obligation -
Current 20,351 17,137
---------- ----------
Total current liabilities $ 196,189 $ 227,863
LONG-TERM LIABILITIES:
Accrued liability $ 98,630 $ 98,630
Asset retirement obligation
(Note 1) 167,528 168,853
---------- ----------
Total long-term liabilities $ 266,158 $ 267,483
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 182,548) ($ 190,287)
Limited Partners, issued and
outstanding, 314,878 units 3,077,646 3,055,082
---------- ----------
Total Partners' capital $2,895,098 $2,864,795
---------- ----------
$3,357,445 $3,360,141
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-11-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
---------- ----------
REVENUES:
Oil and gas sales $1,070,883 $1,042,708
Interest income 817 852
---------- ----------
$1,071,700 $1,043,560
COSTS AND EXPENSES:
Lease operating $ 195,585 $ 161,695
Production tax 70,753 70,261
Depreciation, depletion, and
amortization of oil and gas
properties 68,841 81,382
General and administrative
(Note 2) 94,657 98,173
---------- ----------
$ 429,836 $ 411,511
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $ 641,864 $ 632,049
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - ( 2,344)
---------- ----------
NET INCOME $ 641,864 $ 629,705
========== ==========
GENERAL PARTNER - NET INCOME $ 70,300 $ 70,421
========== ==========
LIMITED PARTNERS - NET INCOME $ 571,564 $ 559,284
========== ==========
NET INCOME per unit $ 1.82 $ 1.78
========== ==========
UNITS OUTSTANDING 314,878 314,878
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-12-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE PRODUCTION PARTNERSHIP II-D
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $641,864 $629,705
Adjustments to reconcile net
income to net cash provided
by operating activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - 2,344
Depreciation, depletion, and
amortization of oil and gas
properties 68,841 81,382
Increase in accounts receivable -
oil and gas sales ( 92,188) ( 233,514)
Increase in accounts payable ( 32,745) ( 51,414)
-------- --------
Net cash provided by operating
activities $585,772 $428,503
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 3,862)
Proceeds from sale of oil and gas
properties 13 -
-------- --------
Net cash provided (used) by investing
activities $ 13 ($ 3,862)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($611,561) ($376,415)
-------- --------
Net cash used by financing activities ($611,561) ($376,415)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 25,776) $ 48,226
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 908,655 561,177
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $882,879 $609,403
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-13-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 631,131 $ 638,668
Accounts receivable:
Oil and gas sales 417,667 363,426
---------- ----------
Total current assets $1,048,798 $1,002,094
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,269,844 1,412,445
DEFERRED CHARGE 207,890 207,890
---------- ----------
$2,526,532 $2,622,429
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 67,708 $ 82,154
Gas imbalance payable 43,424 43,424
Asset retirement obligation -
current 3,391 2,397
---------- ----------
Total current liabilities $ 114,523 $ 127,975
LONG-TERM LIABILITIES:
Accrued liability $ 8,153 $ 8,153
Asset retirement obligation
(Note 1) 95,944 95,923
---------- ----------
Total long-term liabilities $ 104,097 $ 104,076
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 121,175) ($ 129,173)
Limited Partners, issued and
outstanding, 228,821 units 2,429,087 2,519,551
---------- ----------
Total Partners' capital $2,307,912 $2,390,378
---------- ----------
$2,526,532 $2,622,429
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-14-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
-------- --------
REVENUES:
Oil and gas sales $701,330 $752,681
Interest income 555 712
-------- --------
$701,885 $753,393
COSTS AND EXPENSES:
Lease operating $109,761 $140,041
Production tax 50,156 48,202
Depreciation, depletion, and
amortization of oil and gas
properties 147,592 35,461
General and administrative
(Note 2) 71,305 74,273
-------- --------
$378,814 $297,977
-------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $323,071 $455,416
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - 3,090
-------- --------
NET INCOME $323,071 $458,506
======== ========
GENERAL PARTNER - NET INCOME $ 45,535 $ 48,693
======== ========
LIMITED PARTNERS - NET INCOME $277,536 $409,813
======== ========
NET INCOME per unit $ 1.21 $ 1.79
======== ========
UNITS OUTSTANDING 228,821 228,821
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-15-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE PRODUCTION PARTNERSHIP II-E
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $323,071 $458,506
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - ( 3,090)
Depreciation, depletion, and
amortization of oil and gas
properties 147,592 35,461
Increase in accounts receivable -
oil and gas sales ( 54,241) ( 157,218)
Decrease in accounts payable ( 14,494) ( 8,837)
-------- --------
Net cash provided by operating
activities $401,928 $324,822
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 3,928) ($ 3,590)
Proceeds from the sale of oil and
gas properties - 102
-------- --------
Net cash used by investing activities ($ 3,928) ($ 3,488)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($405,537) ($263,799)
-------- --------
Net cash used by financing activities ($405,537) ($263,799)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 7,537) $ 57,535
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 638,668 388,042
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $631,131 $445,577
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-16-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 656,336 $ 604,369
Accounts receivable:
Oil and gas sales 415,343 354,719
---------- ----------
Total current assets $1,071,679 $ 959,088
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,288,106 1,318,881
DEFERRED CHARGE 32,899 32,899
---------- ----------
$2,392,684 $2,310,868
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 53,920 $ 66,133
Gas imbalance payable 3,555 3,555
Asset retirement obligation -
current 4,823 4,566
---------- ----------
Total current liabilities $ 62,298 $ 74,254
LONG-TERM LIABILITIES:
Accrued liability $ 16,945 $ 16,945
Asset retirement obligation
(Note 1) 94,406 93,600
---------- ----------
Total long-term liabilities $ 111,351 $ 110,545
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 79,190) ($ 91,417)
Limited Partners, issued and
outstanding, 171,400 Units 2,298,225 2,217,486
---------- ----------
Total Partners' capital $2,219,035 $2,126,069
---------- ----------
$2,392,684 $2,310,868
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-17-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
-------- --------
REVENUES:
Oil and gas sales $782,910 $740,717
Interest income 552 769
Gain on sale of oil and gas
properties 1,137 -
-------- --------
$784,599 $741,486
COSTS AND EXPENSES:
Lease operating $ 87,218 $123,347
Production tax 51,035 46,614
Depreciation, depletion, and
amortization of oil and gas
properties 32,482 42,288
General and administrative
(Note 2) 54,300 58,551
-------- --------
$225,035 $270,800
-------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $559,564 $470,686
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - 4,938
-------- --------
NET INCOME $559,564 $475,624
======== ========
GENERAL PARTNER - NET INCOME $ 58,825 $ 50,847
======== ========
LIMITED PARTNERS - NET INCOME $500,739 $424,777
======== ========
NET INCOME per Unit $ 2.92 $ 2.48
======== ========
UNITS OUTSTANDING 171,400 171,400
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-18-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE PRODUCTION PARTNERSHIP II-F
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $559,564 $475,624
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - ( 4,938)
Depreciation, depletion, and
amortization of oil and gas
properties 32,482 42,288
Gain on sale of oil and gas
Properties ( 1,137) -
Increase in accounts receivable -
oil and gas sales ( 60,624) ( 151,666)
Decrease in accounts payable ( 12,682) ( 3,961)
-------- --------
Net cash provided by operating
activities $517,603 $357,347
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 13,697)
Proceeds from sale of oil and
gas properties 962 1,007
-------- --------
Net cash provided (used) by
investing activities $ 962 ($ 12,690)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($466,598) ($352,575)
-------- --------
Net cash used by financing
activities ($466,598) ($352,575)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 51,967 ($ 7,918)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 604,369 453,233
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $656,336 $445,315
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-19-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $1,403,466 $1,284,869
Accounts receivable:
Oil and gas sales 880,361 752,979
---------- ----------
Total current assets $2,283,827 $2,037,848
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,774,598 2,841,346
DEFERRED CHARGE 71,238 71,238
---------- ----------
$5,129,663 $4,950,432
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 114,538 $ 139,590
Gas imbalance payable 10,091 10,091
Asset retirement obligation -
current 10,619 10,082
---------- ----------
Total current liabilities $ 135,248 $ 159,763
LONG-TERM LIABILITIES:
Accrued liability $ 31,668 $ 31,668
Asset retirement obligation
(Note 1) 201,389 199,686
---------- ----------
Total long-term liabilities $ 233,057 $ 231,354
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 61,567) ($ 87,509)
Limited Partners, issued and
outstanding, 372,189 Units 4,822,925 4,646,824
---------- ----------
Total Partners' capital $4,761,358 $4,559,315
---------- ----------
$5,129,663 $4,950,432
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-20-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
---------- ----------
REVENUES:
Oil and gas sales $1,662,197 $1,568,853
Interest income 1,181 1,649
Gain on sale of oil and gas
properties 2,449 -
---------- ----------
$1,665,827 $1,570,502
COSTS AND EXPENSES:
Lease operating $ 186,492 $ 262,449
Production tax 108,805 99,041
Depreciation, depletion, and
amortization of oil and gas
properties 70,333 90,117
General and administrative
(Note 2) 110,961 114,313
---------- ----------
$ 476,591 $ 565,920
---------- ----------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $1,189,236 $1,004,582
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - 10,247
---------- ----------
NET INCOME $1,189,236 $1,014,829
========== ==========
GENERAL PARTNER - NET INCOME $ 125,135 $ 108,506
========== ==========
LIMITED PARTNERS - NET INCOME $1,064,101 $ 906,323
========== ==========
NET INCOME per Unit $ 2.86 $ 2.44
========== ==========
UNITS OUTSTANDING 372,189 372,189
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-21-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE PRODUCTION PARTNERSHIP II-G
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,189,236 $1,014,829
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of changes in
accounting for asset retirement
obligations (Note 1) - ( 10,247)
Depreciation, depletion, and
amortization of oil and gas
properties 70,333 90,117
Gain on sale of oil and gas
properties ( 2,449) -
Increase in accounts receivable -
oil and gas sales ( 127,382) ( 322,036)
Decrease in accounts payable ( 26,032) ( 18,469)
---------- ----------
Net cash provided by operating
activities $1,103,706 $ 754,194
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 28,646)
Proceeds from sale of oil and
gas properties 2,084 2,291
---------- ----------
Net cash provided (used) by investing
activities $ 2,084 ($ 26,355)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 987,193) ($ 743,806)
---------- ----------
Net cash used by financing activities ($ 987,193) ($ 743,806)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 118,597 ($ 15,967)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,284,869 959,481
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,403,466 $ 943,514
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-22-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED BALANCE SHEETS
(Unaudited)
ASSETS
March 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents $ 331,526 $ 305,096
Accounts receivable:
Oil and gas sales 209,359 179,434
---------- ----------
Total current assets $ 540,885 $ 484,530
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 657,054 673,170
DEFERRED CHARGE 18,580 18,580
---------- ----------
$1,216,519 $1,176,280
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 28,423 $ 34,033
Asset retirement obligation -
current 2,651 2,522
---------- ----------
Total current liabilities $ 31,074 $ 36,555
LONG-TERM LIABILITIES:
Accrued liability $ 10,035 $ 10,035
Asset retirement obligation
(Note 1) 49,278 48,857
---------- ----------
Total long-term liabilities $ 59,313 $ 58,892
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 44,841) ($ 51,046)
Limited Partners, issued and
outstanding, 91,711 Units 1,170,973 1,131,879
---------- ----------
Total Partners' capital $1,126,132 $1,080,833
---------- ----------
$1,216,519 $1,176,280
========== ==========
The accompanying condensed notes are an integral part of these
combined financial statements.
-23-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
-------- --------
REVENUES:
Oil and gas sales $396,233 $371,008
Interest income 312 367
Gain on sale of oil and gas
properties 612 -
-------- --------
$397,157 $371,375
COSTS AND EXPENSES:
Lease operating $ 44,919 $ 62,649
Production tax 26,131 23,542
Depreciation, depletion, and
amortization of oil and gas
properties 16,977 21,051
General and administrative
(Note 2) 31,807 36,416
-------- --------
$119,834 $143,658
-------- --------
INCOME BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE $277,323 $227,717
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - 2,536
-------- --------
NET INCOME $277,323 $230,253
======== ========
GENERAL PARTNER - NET INCOME $ 29,229 $ 24,655
======== ========
LIMITED PARTNERS - NET INCOME $248,094 $205,598
======== ========
NET INCOME per Unit $ 2.71 $ 2.24
======== ========
UNITS OUTSTANDING 91,711 91,711
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-24-
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
GEODYNE PRODUCTION PARTNERSHIP II-H
COMBINED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(Unaudited)
2004 2003
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $277,323 $230,253
Adjustments to reconcile net income
to net cash provided by operating
activities:
Cumulative effect of change in
accounting for asset retirement
obligations (Note 1) - ( 2,536)
Depreciation, depletion, and
amortization of oil and gas
properties 16,977 21,051
Gain on sale of oil and gas
Properties ( 612) -
Increase in accounts receivable -
oil and gas sales ( 29,925) ( 76,219)
Increase (decrease) in accounts
payable ( 5,837) 1,247
-------- --------
Net cash provided by operating
activities $257,926 $173,796
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures $ - ($ 6,627)
Proceeds from sale of oil and
Gas properties 528 609
-------- --------
Net cash provided (used) by investing
activities $ 528 ($ 6,018)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($232,024) ($173,273)
-------- --------
Net cash used by financing activities ($232,024) ($173,273)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 26,430 ($ 5,495)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 305,096 224,669
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $331,526 $219,174
======== ========
The accompanying condensed notes are an integral part of these
combined financial statements.
-25-
GEODYNE ENERGY INCOME PROGRAM II LIMITED PARTNERSHIPS
CONDENSED NOTES TO THE COMBINED FINANCIAL STATEMENTS
MARCH 31, 2004
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of March 31, 2004, combined statements of
operations for the three months ended March 31, 2004 and 2003, and
combined statements of cash flows for the three months ended March 31,
2004 and 2003 have been prepared by Geodyne Resources, Inc., the General
Partner of the limited partnerships, without audit. Each limited
partnership is a general partner in the related Geodyne Production
Partnership in which Geodyne Resources, Inc. serves as the managing
partner. Unless the context indicates otherwise, all references to a
"Partnership" or the "Partnerships" are references to the limited
partnership and its related production partnership, collectively, and all
references to the "General Partner" are references to the general partner
of the limited partnerships and the managing partner of the production
partnerships, collectively. In the opinion of management the financial
statements referred to above include all necessary adjustments, consisting
of normal recurring adjustments, to present fairly the combined financial
position at March 31, 2004, the combined results of operations for the
three months ended March 31, 2004 and 2003, and the combined cash flows
for the three months ended March 31, 2004 and 2003.
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, 2003. The
results of operations for the period ended March 31, 2004 are not
necessarily indicative of the results to be expected for the full year.
The Limited Partners' net income or loss per unit is based upon each $100
initial capital contribution.
-26-
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 Partner's
property screening costs. The acquisition cost to the Partnerships 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.
Depletion of the costs 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 unit-of-production
method. The Partnerships' depletion, depreciation, and amortization
includes estimated dismantlement and abandonment costs and estimated
salvage value of the equipment.
When complete units of depreciable property are retired or sold, the asset
cost and related accumulated depreciation are eliminated with any gain or
loss (including the elimination of the asset retirement obligation)
reflected in income. When less than complete units of depreciable property
are retired or sold, the proceeds are credited to oil and gas properties.
ACCRUED LIABILITY - OTHER
-------------------------
The Accrued Liability - Other at March 31, 2004 and December 31, 2003 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.
-27-
ASSET RETIREMENT OBLIGATIONS
----------------------------
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). On January 1,
2003, the Partnerships adopted FAS No. 143 and recorded an increase in
capitalized cost of oil and gas properties, an increase (decrease) in net
income for the cumulative effect of the change in accounting principle,
and an asset retirement obligation in the following approximate amounts
for each Partnership:
Increase
(Decrease)
Increase in
in Net Income
Capitalized for the
Cost of Oil Change in Asset
and Gas Accounting Retirement
Partnerships Properties Principle Obligation
------------ ----------- ---------- ----------
II-A $292,000 $ 6,000 $286,000
II-B 212,000 4,000 208,000
II-C 68,000 100 68,000
II-D 181,000 ( 2,000) 183,000
II-E 98,000 3,000 95,000
II-F 101,000 5,000 96,000
II-G 218,000 10,000 208,000
II-H 54,000 3,000 51,000
The asset retirement obligation will be adjusted upwards each quarter in
order to recognize accretion of the time-related discount factor. For the
three months ended March 31, 2004, the II-A, II-B, II-C, II-D, II-E, II-F,
II-G, and II-H Partnerships recognized approximately $3,000, $2,000,
$1,000, $2,000, $2,000, $1,000, $2,000, and $1,000, respectively, of an
increase in depreciation, depletion, and amortization expense, which was
comprised of accretion of the asset retirement obligation and depletion of
the increase in capitalized cost of oil and gas properties.
The components of the change in asset retirement obligations for the three
months ended March 31, 2004 and 2003 are as shown below.
-28-
II-A Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2004 3/31/2003
------------ ------------
Total Asset Retirement
Obligation, January 1 $277,914 $286,238
Accretion Expense 2,392 2,802
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $280,306 $289,040
======== ========
Asset Retirement Obligation -
Current $ 12,096 $ -
Asset Retirement Obligation -
Long-Term 268,210 289,040
II-B Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2004 3/31/2003
------------ ------------
Total Asset Retirement
Obligation, January 1 $202,141 $208,259
Accretion Expense 1,732 2,056
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $203,873 $210,315
======== ========
Asset Retirement Obligation -
Current $ 13,086 $ -
Asset Retirement Obligation -
Long-Term 190,787 210,315
-29-
II-C Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2004 3/31/2003
------------ ------------
Total Asset Retirement
Obligation, January 1 $71,173 $68,318
Accretion Expense 714 759
------- -------
Total Asset Retirement,
Obligation, End of Quarter $71,887 $69,077
======= =======
Asset Retirement Obligation -
Current $ 8,775 $ -
Asset Retirement Obligation -
Long-Term 63,112 69,077
II-D Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2004 3/31/2003
------------ ------------
Total Asset Retirement
Obligation, January 1 $185,990 $182,622
Accretion Expense 1,889 2,010
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $187,879 $184,632
======== ========
Asset Retirement Obligation -
Current $ 20,351 $ -
Asset Retirement Obligation -
Long-Term 167,528 184,632
-30-
II-E Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2004 3/31/2003
------------ ------------
Total Asset Retirement
Obligation, January 1 $98,320 $95,050
Accretion Expense 1,015 1,036
------- -------
Total Asset Retirement,
Obligation, End of Quarter $99,335 $96,086
======= =======
Asset Retirement Obligation -
Current $ 3,391 $ -
Asset Retirement Obligation -
Long-Term 95,944 96,086
II-F Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2004 3/31/2003
------------ ------------
Total Asset Retirement
Obligation, January 1 $98,166 $96,226
Accretion Expense 1,063 1,093
------- -------
Total Asset Retirement,
Obligation, End of Quarter $99,229 $97,319
======= =======
Asset Retirement Obligation -
Current $ 4,823 $ -
Asset Retirement Obligation -
Long-Term 94,406 97,319
-31-
II-G Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2004 3/31/2003
------------ ------------
Total Asset Retirement
Obligation, January 1 $209,768 $207,505
Accretion Expense 2,240 2,337
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $212,008 $209,842
======== ========
Asset Retirement Obligation -
Current $ 10,619 $ -
Asset Retirement Obligation -
Long-Term 201,389 209,842
II-H Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2004 3/31/2003
------------ ------------
Total Asset Retirement
Obligation, January 1 $ 51,379 $ 50,790
Accretion Expense 550 580
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $ 51,929 $ 51,370
======== ========
Asset Retirement Obligation -
Current $ 2,651 $ -
Asset Retirement Obligation -
Long-Term 49,278 51,370
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 March 31, 2004, the following payments were made to the General
Partner or its affiliates by the Partnerships:
-32-
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
II-A $15,019 $127,443
II-B 12,680 95,190
II-C 8,745 40,689
II-D 11,794 82,863
II-E 11,089 60,216
II-F 9,195 45,105
II-G 13,017 97,944
II-H 7,672 24,135
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.
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 are engaged in the business of acquiring and operating
producing oil and gas properties located in the continental United States.
In general, a Partnership acquired producing properties and did not engage
in development drilling or enhanced recovery projects, except as an
incidental part of the management of the producing properties acquired.
Therefore, the economic life of each Partnership, and its related
Production Partnership, is limited to the period of time required to fully
produce its acquired oil and gas reserves. The net proceeds from the oil
and gas operations are distributed to the Limited Partners and the General
Partner in accordance with the terms of the Partnerships' partnership
agreements.
-33-
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Partnerships began operations and investors were assigned their rights
as Limited Partners, having made capital contributions in the amounts and
on the dates set forth below:
Limited
Date of Partner Capital
Partnership Activation Contributions
----------- ------------------ ---------------
II-A July 22, 1987 $48,428,300
II-B October 14, 1987 36,171,900
II-C January 14, 1988 15,462,100
II-D May 10, 1988 31,487,800
II-E September 27, 1988 22,882,100
II-F January 5, 1989 17,140,000
II-G April 10, 1989 37,218,900
II-H May 17, 1989 9,171,100
In general, the amount of funds available for acquisition of producing
properties was equal to the capital contributions of the Limited Partners,
less 15% for sales commissions and organization and management fees. All
of the Partnerships have fully invested their capital contributions.
Net proceeds from the operations 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 March 31, 2004 and the net revenue
generated from future operations will provide sufficient working capital
to meet current and future obligations.
Occasional expenditures for new wells or well recompletions or workovers,
however, may reduce or eliminate cash available for a particular quarterly
distribution.
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
second two-year extension thereby extending their termination date to
December 31, 2005. As of the date of this Quarterly Report, the General
Partner has not yet determined whether to further extend the term of any
Partnership.
-34-
CRITICAL ACCOUNTING POLICIES
- ----------------------------
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 Partner's
property screening costs. The acquisition cost to the Partnerships of the
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.
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 unit-of-production
method. The Partnerships' calculation of depreciation, depletion, and
amortization includes estimated dismantlement and abandonment costs and
estimated salvage value of the equipment. When complete units of
depreciable property are retired or sold, the asset cost and related
accumulated depreciation are eliminated with any gain or loss (including
the elimination of the asset retirement obligation) reflected in income.
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 for each oil and gas field (rather
than separately for each well). If the unamortized costs of oil and gas
properties within a field exceeds 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 estimated discounted future
cash flows from the properties. The risk that the Partnerships will be
required to record impairment provisions in the future increases as oil
and gas prices decrease.
The Deferred Charge on the Balance Sheets represents costs deferred for
lease operating expenses incurred in connection with the Partnerships'
underproduced gas imbalance positions. Conversely, the Accrued Liability
represents charges accrued for lease operating expenses incurred in
connection with the Partnerships' overproduced gas imbalance positions.
The rate used in calculating the Deferred Charge
-35-
and Accrued Liability is the annual average production costs per Mcf.
The Partnerships' oil and condensate production is sold, title passed, and
revenue recognized at or near the Partnerships' wells under short-term
purchase contracts at prevailing prices in accordance with arrangements
which are customary in the oil and gas industry. Sales of gas applicable
to the Partnerships' interest in producing oil and gas leases are recorded
as revenue when the gas is metered and title transferred pursuant to the
gas sales contracts covering the Partnerships' interest in gas reserves.
During such times as a Partnership's sales of gas exceed its pro rata
ownership in a well, such sales are recorded as revenues unless total
sales from the well have exceeded the Partnership's share of estimated
total gas reserves underlying the property, at which time such excess is
recorded as a liability. The rates per Mcf used to calculate this
liability are based on the average gas 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. 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 negotiated or contractual payment to
the underproduced party.
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). On January 1,
2003, the Partnerships adopted FAS No. 143 and recorded an increase in
capitalized cost of oil and gas properties, an increase (decrease) in net
income for the cumulative effect of the change in accounting principle,
and an asset retirement obligation in the following approximate amounts
for each Partnership:
-36-
Increase
(Decrease)
Increase in
in Net Income
Capitalized for the
Cost of Oil Change in Asset
and Gas Accounting Retirement
Partnerships Properties Principle Obligation
------------ ----------- ---------- ----------
II-A $292,000 $ 6,000 $286,000
II-B 212,000 4,000 208,000
II-C 68,000 100 68,000
II-D 181,000 ( 2,000) 183,000
II-E 98,000 3,000 95,000
II-F 101,000 5,000 96,000
II-G 218,000 10,000 208,000
II-H 54,000 3,000 51,000
The asset retirement obligation will be adjusted upwards each quarter in
order to recognize accretion of the time-related discount factor. For the
three months ended March 31, 2004, the II-A, II-B, II-C, II-D, II-E, II-F,
II-G, and II-H Partnerships recognized approximately $3,000, $2,000,
$1,000, $2,000, $2,000, $1,000, $2,000, and $1,000, respectively, of an
increase in depreciation, depletion, and amortization expense, which was
comprised of accretion of the asset retirement obligation and depletion of
the increase in capitalized cost of oil and gas properties.
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
-37-
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.
II-A Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2003 578,339 6,602,791
Production ( 17,623) ( 162,681)
Extensions and discoveries 3,093 1,740
Revisions of previous
estimates 25,662 16,575
------- ---------
Proved reserves, March 31, 2004 589,471 6,458,425
======= =========
II-B Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2003 450,386 5,031,097
Production ( 11,835) ( 124,571)
Extensions and discoveries - 99
Revisions of previous
estimates 16,479 ( 787)
------- ---------
Proved reserves, March 31, 2004 455,030 4,905,838
======= =========
-38-
II-C Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2003 166,878 3,471,332
Production ( 4,506) ( 72,221)
Revisions of previous
estimates 3,589 2,730
------- ---------
Proved reserves, March 31, 2004 165,961 3,401,841
======= =========
II-D Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2003 205,493 8,820,151
Production ( 7,389) ( 173,189)
Revisions of previous
estimates 6,907 ( 94,156)
------- ---------
Proved reserves, March 31, 2004 205,011 8,552,806
======= =========
II-E Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2003 185,726 4,993,342
Production ( 5,116) ( 113,320)
Revisions of previous
estimates 1,450 ( 101,967)
------- ---------
Proved reserves, March 31, 2004 182,060 4,778,055
======= =========
-39-
II-F Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2003 294,371 3,805,394
Production ( 7,519) ( 123,018)
Sale of minerals in place ( 63) -
Revisions of previous
estimates ( 4,418) ( 7,353)
------- ---------
Proved reserves, March 31, 2004 282,371 3,675,023
======= =========
II-G Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2003 618,052 8,180,541
Production ( 15,750) ( 262,468)
Sale of minerals in place ( 134) -
Revisions of previous
estimates ( 9,228) ( 14,416)
------- ---------
Proved reserves, March 31, 2004 592,940 7,903,657
======= =========
II-H Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2003 144,069 1,990,234
Production ( 3,652) ( 63,116)
Sale of minerals in place ( 35) -
Revisions of previous
estimates ( 2,142) ( 2,552)
------- ---------
Proved reserves, March 31, 2004 138,240 1,924,566
======= =========
-40-
<
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.
The following table indicates the estimated net present value of the
Partnerships' proved reserves as of March 31, 2004 and December 31, 2003.
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 not escalated except in certain circumstances
where escalations were fixed and readily determinable in accordance with
applicable contract provisions. The table also indicates the gas prices in
effect on the dates corresponding to the reserve valuations. Changes in
the oil and gas prices cause the estimates of remaining economically
recoverable reserves, as well as the values placed on said reserves to
fluctuate. 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 March 31,
2004. There can be no assurance that the prices used in calculating the
net present value of the Partnerships' proved reserves at March 31, 2004
will actually be realized for such production.
Net Present Value of Reserves
----------------------------------------
Partnership 3/31/04 12/31/03
----------- ----------- -----------
II-A $20,313,454 $20,047,342
II-B 14,949,817 15,115,632
II-C 9,577,982 9,758,125
II-D 21,350,681 21,844,999
II-E 12,187,913 12,587,969
II-F 11,523,515 11,765,661
II-G 25,027,012 25,544,825
II-H 5,898,194 6,022,844
Oil and Gas Prices
-----------------------------------------
Pricing 3/31/04 12/31/03
----------- ---------- -----------
Oil (Bbl) $ 32.50 $ 29.25
Gas (Mcf) 5.63 5.77
-41-
RESULTS OF OPERATIONS
- ---------------------
GENERAL DISCUSSION
The following general discussion should be read in conjunction with the
analysis of results of operations provided below.
The primary source of liquidity and Partnership cash distributions comes
from the net revenues generated from the sale of oil and gas produced from
the Partnerships' oil and gas properties. 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:
* 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.
It is not possible to predict the future direction of oil or natural gas
prices or whether the above discussed trends will remain. 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.
-42-
II-A PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2003.
Three Months Ended March 31,
----------------------------
2004 2003
---------- ----------
Oil and gas sales $1,329,152 $1,475,057
Oil and gas production expenses $ 355,945 $ 373,505
Barrels produced 17,623 16,246
Mcf produced 162,681 182,843
Average price/Bbl $ 31.20 $ 30.01
Average price/Mcf $ 4.79 $ 5.40
As shown in the table above, total oil and gas sales decreased $145,905
(9.9%) for the three months ended March 31, 2004 as compared to the three
months ended March 31, 2003. Of this decrease, approximately (i) $109,000
was related to a decrease in volumes of gas sold and (ii) $99,000 was
related to a decrease in the average price of gas sold. These decreases
were partially offset by increases of approximately (i) $41,000 related to
an increase in volumes of oil sold and (ii) $21,000 related to an increase
in the average price of oil sold. Volumes of oil sold increased 1,377
barrels, while volumes of gas sold decreased 20,162 Mcf for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. The decrease in volumes of gas sold was primarily due to normal
declines in production. Average oil prices increased to $31.20 per barrel
for the three months ended March 31, 2004 from $30.01 per barrel for the
three months ended March 31, 2003. Average gas prices decreased to $4.79
per Mcf for the three months ended March 31, 2004 from $5.40 per Mcf for
the three months ended March 31, 2003.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $17,560 (4.7%) for the three months ended
March 31, 2004 as compared to the three months ended March 31, 2003. As a
percentage of oil and gas sales, these expenses increased to 26.8% for the
three months ended March 31, 2004 from 25.3% for the three months ended
March 31, 2003.
Depreciation, depletion, and amortization of oil and gas properties
decreased $10,922 (18.7%) for the three months ended March 31, 2004 as
compared to the three months ended March 31, 2003. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at March 31, 2004 as compared to March 31, 2003. As a
percentage of oil and gas sales, this expense decreased to 3.6% for the
three months ended March 31, 2004 from 4.0% for the three months ended
March 31, 2003. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization of oil and gas
properties.
-43-
General and administrative expenses decreased $2,756 (1.9%) for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. As a percentage of oil and gas sales, these expenses increased
to 10.7% for the three months ended March 31, 2004 from 9.8% for the three
months ended March 31, 2003.
The Limited Partners have received cash distributions through March 31,
2004 totaling $58,740,357 or 121.29% of Limited Partners' capital
contributions.
II-B PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2003.
Three Months Ended March 31,
----------------------------
2004 2003
-------- ----------
Oil and gas sales $967,481 $1,023,483
Oil and gas production expenses $264,900 $ 243,826
Barrels produced 11,835 10,041
Mcf produced 124,571 137,522
Average price/Bbl $ 32.51 $ 30.27
Average price/Mcf $ 4.68 $ 5.23
As shown in the table above, total oil and gas sales decreased $56,002
(5.5%) for the three months ended March 31, 2004 as compared to the three
months ended March 31, 2003. Of this decrease, approximately (i) $69,000
was related to a decrease in the average price of gas sold and (ii)
$68,000 was related to a decrease in volumes of gas sold. These decreases
were partially offset by increases of approximately (i) $54,000 related to
an increase in volumes of oil sold and (ii) $27,000 related to an increase
in the average price of oil sold. Volumes of oil sold increased 1,794
barrels, while volumes of gas sold decreased 12,951 Mcf for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. The increase in volumes of oil sold was primarily due to an
increase in production on one significant well due to the successful
workover of that well during mid 2003. Average oil prices increased to
$32.51 per barrel for the three months ended March 31, 2004 from $30.27
per barrel for the three months ended March 31, 2003. Average gas prices
decreased to $4.68 per Mcf for the three months ended March 31, 2004 from
$5.23 per Mcf for the three months ended March 31, 2003.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $21,074 (8.6%) for the three months ended
March 31, 2004 as compared to the three months ended March 31, 2003. This
increase was primarily due to (i) workover expenses incurred on one
significant well during the three months ended March 31, 2004 and (ii) an
increase in salt water disposal expenses on another significant well for
the three months ended March
-44-
31, 2004 as compared to the three months ended March 31, 2003. These
increases were partially offset by a decrease in production taxes
associated with the decrease in oil and gas sales. As a percentage of oil
and gas sales, these expenses increased to 27.4% for the three months
ended March 31, 2004 from 23.8% for the three months ended March 31, 2003.
This percentage increase was primarily due to (i) the dollar increase in
oil and gas production expenses and (ii) the decrease in the average price
of gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $6,281 (15.8%) for the three months ended March 31, 2004 as
compared to the three months ended March 31, 2003. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at March 31, 2004 as compared to March 31, 2003. As a
percentage of oil and gas sales, this expense decreased to 3.5% for the
three months ended March 31, 2004 from 3.9% for the three months ended
March 31, 2003. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization.
General and administrative expenses decreased $3,307 (3.0%) for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. As a percentage of oil and gas sales, these expenses increased
to 11.1% for the three months ended March 31, 2004 from 10.9% for the
three months ended March 31, 2003.
The Limited Partners have received cash distributions through March 31,
2004 totaling $42,228,916 or 116.75% of Limited Partners' capital
contributions.
II-C PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2003.
Three Months Ended March 31,
----------------------------
2004 2003
-------- --------
Oil and gas sales $481,020 $523,234
Oil and gas production expenses $129,923 $116,883
Barrels produced 4,506 3,777
Mcf produced 72,221 78,149
Average price/Bbl $ 32.30 $ 29.47
Average price/Mcf $ 4.65 $ 5.27
As shown in the table above, total oil and gas sales decreased $42,214
(8.1%) for the three months ended March 31, 2004 as compared to the three
months ended March 31, 2003. Of this decrease, approximately (i) $45,000
was related to a decrease in the average price of gas sold and (ii)
$31,000 was related to a decrease in volumes of gas sold. These decreases
were partially offset by increases of approximately (i) 21,000 related to
an increase in volumes
-45-
of oil sold and (ii) $13,000 related to an increase in the average price
of oil sold. Volumes of oil sold increased 729 barrels, while volumes of
gas sold decreased 5,928 Mcf for the three months ended March 31, 2004 as
compared to the three months ended March 31, 2003. The increase in volumes
of oil sold was primarily due to an increase in production on one
significant well due to the successful workover of that well during mid
2003. Average oil prices increased to $32.30 per barrel for the three
months ended March 31, 2004 from $29.47 per barrel for the three months
ended March 31, 2003. Average gas prices decreased to $4.65 per Mcf for
the three months ended March 31, 2004 from $5.27 per Mcf for the three
months ended March 31, 2003.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $13,040 (11.2%) for the three months ended
March 31, 2004 as compared to the three months ended March 31, 2003. This
increase was primarily due to (i) workover expenses incurred on two
significant wells during the three months ended March 31, 2004 and (ii) an
increase in salt water disposal expenses on one significant well during
the three months ended March 31, 2004 as compared to the three months
ended March 31, 2003. These increases were partially offset by a decrease
in production taxes associated with the decrease in oil and gas sales. As
a percentage of oil and gas sales, these expenses increased to 27.0% for
the three months ended March 31, 2004 from 22.3% for the three months
ended March 31, 2003. This percentage increase was primarily due to (i)
the dollar increase in oil and gas production expenses and (ii) the
decrease in the average price of gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,504 (18.8%) for the three months ended March 31, 2004 as
compared to the three months ended March 31, 2003. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at March 31, 2004 as compared to March 31, 2003. As a
percentage of oil and gas sales, this expense decreased to 4.0% for the
three months ended March 31, 2004 from 4.6% for the three months ended
March 31, 2003. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization of oil and gas
properties.
General and administrative expenses decreased $4,233 (7.9%) for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. As a percentage of oil and gas sales, these expenses remained
constant at 10.3% for the three months ended March 31, 2004 and 2003.
The Limited Partners have received cash distributions through March 31,
2004 totaling $19,789,686 or 127.99% of Limited Partners' capital
contributions.
-46-
II-D PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2003.
Three Months Ended March 31,
----------------------------
2004 2003
---------- ----------
Oil and gas sales $1,070,883 $1,042,708
Oil and gas production expenses $ 266,338 $ 231,956
Barrels produced 7,389 6,730
Mcf produced 173,189 164,162
Average price/Bbl $ 31.82 $ 29.63
Average price/Mcf $ 4.83 $ 5.14
As shown in the table above, total oil and gas sales increased $28,175
(2.7%) for the three months ended March 31, 2004 as compared to the three
months ended March 31, 2003. Of this increase, approximately (i) $20,000
and $46,000, respectively, were related to increases in volumes of oil and
gas sold and (ii) $16,000 was related to an increase in the average price
of oil sold. These increases were partially offset by a decrease of
approximately $54,000 related to a decrease in the average price of gas
sold. Volumes of oil and gas sold increased 659 barrels and 9,027 Mcf,
respectively, for the three months ended March 31, 2004 as compared to the
three months ended March 31, 2003. Average oil prices increased to $31.82
per barrel for the three months ended March 31, 2004 from $29.63 per
barrel for the three months ended March 31, 2003. Average gas prices
decreased to $4.83 per Mcf for the three months ended March 31, 2004 from
$5.14 per Mcf for the three months ended March 31, 2003.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $34,382 (14.8%) for the three months ended
March 31, 2004 as compared to the three months ended March 31, 2003. This
increase was primarily due to (i) workover expenses incurred on several
wells during the three months ended March 31, 2004 and (ii) an increase in
lease operating expenses associated with the increases in volumes of oil
and gas sold. As a percentage of oil and gas sales, these expenses
increased to 24.9% for the three months ended March 31, 2004 from 22.2%
for the three months ended March 31, 2003. This increase was primarily due
to the dollar increase in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $12,541 (15.4%) for the three months ended March 31, 2004 as
compared to the three months ended March 31, 2003. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at March 31, 2004 as compared to March 31, 2003. As a
percentage of oil and gas sales, this expense decreased to 6.4% for the
three months ended March 31, 2004 from 7.8% for the three months ended
March 31, 2003. This percentage
-47-
decrease was primarily due to the dollar decrease in depreciation,
depletion, and amortization of oil and gas properties.
General and administrative expenses decreased $3,516 (3.6%) for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. As a percentage of oil and gas sales, these expenses decreased
to 8.8% for the three months ended March 31, 2004 from 9.4% for the three
months ended March 31, 2003.
The Limited Partners have received cash distributions through March 31,
2004 totaling $41,462,903 or 131.68% of Limited Partners' capital
contributions.
II-E PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2003.
Three Months Ended March 31,
----------------------------
2004 2003
-------- --------
Oil and gas sales $701,330 $752,681
Oil and gas production expenses $159,917 $188,243
Barrels produced 5,116 5,319
Mcf produced 113,320 111,215
Average price/Bbl $ 31.86 $ 31.01
Average price/Mcf $ 4.75 $ 5.28
As shown in the table above, total oil and gas sales decreased $51,351
(6.8%) for the three months ended March 31, 2004 as compared to the three
months ended March 31, 2003. Of this decrease, approximately (i) $61,000
was related to a decrease in the average price of gas sold and (ii) $6,000
was related to a decrease in volumes of oil sold. These decreases were
partially offset by an increase of approximately $11,000 related to an
increase in volumes of gas sold. Volumes of oil sold decreased 203
barrels, while volumes of gas sold increased 2,105 Mcf for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. Average oil prices increased to $31.86 per barrel for the three
months ended March 31, 2004 from $31.01 per barrel for the three months
ended March 31, 2003. Average gas prices decreased to $4.75 per Mcf for
the three months ended March 31, 2004 from $5.28 per Mcf for the three
months ended March 31, 2003.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $28,326 (15.0%) for the three months ended
March 31, 2004 as compared to the three months ended March 31, 2003. This
decrease was primarily due to a positive prior period lease operating
expense adjustment on one significant well during the three months ended
March 31, 2003. As a percentage of oil and gas sales, these expenses
decreased to 22.8% for the three
-48-
months ended March 31, 2004 from 25.0% for the three months ended March
31, 2003.
Depreciation, depletion, and amortization of oil and gas properties
increased $112,131 (316.2%) for the three months ended March 31, 2004 as
compared to the three months ended March 31, 2003. This increase was
primarily due to one significant well being fully depleted in the three
months ended March 31, 2004 due to lack of remaining economically
recoverable reserves. As a percentage of oil and gas sales, this expense
increased to 21.0% for the three months ended March 31, 2004 from 4.7% for
the three months ended March 31, 2003. This percentage increase was
primarily due to the dollar increase in depreciation, depletion, and
amortization of oil and gas properties
General and administrative expenses decreased $2,968 (4.0%) for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. As a percentage of oil and gas sales, these expenses increased
to 10.2% for the three months ended March 31, 2004 from 9.9% for the three
months ended March 31, 2003.
The Limited Partners have received cash distributions through March 31,
2004 totaling $29,069,574 or 127.04% of Limited Partners' capital
contributions.
II-F PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2003.
Three Months Ended March 31,
----------------------------
2004 2003
-------- --------
Oil and gas sales $782,910 $740,717
Oil and gas production expenses $138,253 $169,961
Barrels produced 7,519 6,851
Mcf produced 123,018 111,565
Average price/Bbl $ 30.68 $ 29.97
Average price/Mcf $ 4.49 $ 4.80
As shown in the table above, total oil and gas sales increased $42,193
(5.7%) for the three months ended March 31, 2004 as compared to the three
months ended March 31, 2003. Of this increase, approximately (i) $20,000
and $55,000, respectively, were related to increases in volumes of oil and
gas sold and (ii) $5,000 was related to an increase in the average price
of oil sold. These increases were partially offset by a decrease of
approximately $38,000 related to a decrease in the average price of gas
sold. Volumes of oil and gas sold increased 668 barrels and 11,453 Mcf,
respectively, for the three months ended March 31, 2004 as compared to the
three months ended March 31, 2003. The increases in volumes of both oil
and gas sold were primarily due to positive prior period volume
adjustments made by the
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operators on one significant oil well and one significant gas well during
the three months ended March 31, 2004. Average oil prices increased to
$30.68 per barrel for the three months ended March 31, 2004 from $29.97
per barrel for the three months ended March 31, 2003. Average gas prices
decreased to $4.49 per Mcf for the three months ended March 31, 2004 from
$4.80 per Mcf for the three months ended March 31, 2003.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $31,708 (18.7%) for the three months ended
March 31, 2004 as compared to the three months ended March 31, 2003. This
decrease was primarily due to workover expenses incurred on two
significant wells during the three months ended March 31, 2003. As a
percentage of oil and gas sales, these expenses decreased to 17.7% for the
three months ended March 31, 2004 from 22.9% for the three months ended
March 31, 2003. This percentage decrease was primarily due to the dollar
decrease in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $9,806 (23.2%) for the three months ended March 31, 2004 as
compared to the three months ended March 31, 2003. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at March 31, 2004 as compared to March 31, 2003. As a
percentage of oil and gas sales, this expense decreased to 4.1% for the
three months ended March 31, 2004 from 5.7% for the three months ended
March 31, 2003. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization of oil and gas
properties.
General and administrative expenses decreased $4,251 (7.3%) for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. As a percentage of oil and gas sales, these expenses decreased
to 6.9% for the three months ended March 31, 2004 from 7.9% for the three
months ended March 31, 2003. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2004 totaling $23,743,051 or 138.52% of Limited Partners' capital
contributions.
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II-G PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2003.
Three Months Ended March 31,
----------------------------
2004 2003
---------- ----------
Oil and gas sales $1,662,197 $1,568,853
Oil and gas production expenses $ 295,297 $ 361,490
Barrels produced 15,750 14,356
Mcf produced 262,468 237,017
Average price/Bbl $ 30.69 $ 29.97
Average price/Mcf $ 4.49 $ 4.80
As shown in the table above, total oil and gas sales increased $93,344
(5.9%) for the three months ended March 31, 2004 as compared to the three
months ended March 31, 2003. Of this increase, approximately (i) $42,000
and $122,000, respectively, were related to increases in volumes of oil
and gas sold and (ii) $11,000 was related to an increase in the average
price of oil sold. These increases were partially offset by a decrease of
approximately $82,000 related to a decrease in the average price of gas
sold. Volumes of oil and gas sold increased 1,394 barrels and 25,451 Mcf,
respectively, for the three months ended March 31, 2004 as compared to the
three months ended March 31, 2003. The increases in volumes of both oil
and gas sold were primarily due to positive prior period volume
adjustments made by the operators on one significant oil well and one
significant gas well during the three months ended March 31, 2004. Average
oil prices increased to $30.69 per barrel for the three months ended March
31, 2004 from $29.97 per barrel for the three months ended March 31, 2003.
Average gas prices decreased to $4.49 per Mcf for the three months ended
March 31, 2004 from $4.80 per Mcf for the three months ended March 31,
2003.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $66,193 (18.3%) for the three months ended
March 31, 2004 as compared to the three months ended March 31, 2003. This
decrease was primarily due to workover expenses incurred on two
significant wells during the three months ended March 31, 2003. As a
percentage of oil and gas sales, these expenses decreased to 17.8% for the
three months ended March 31, 2004 from 23.0% for the three months ended
March 31, 2003. This percentage decrease was primarily due to the dollar
decrease in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $19,784 (22.0%) for the three months ended March 31, 2004 as
compared to the three months ended March 31, 2003. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at March 31, 2004 as compared to March 31, 2003. As a
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percentage of oil and gas sales, this expense decreased to 4.2% for the
three months ended March 31, 2004 from 5.7% for the three months ended
March 31, 2003. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization of oil and gas
properties.
General and administrative expenses decreased $3,352 (2.9%) for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. As a percentage of oil and gas sales, these expenses decreased
to 6.7% for the three months ended March 31, 2004 from 7.3% for the three
months ended March 31, 2003. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2004 totaling $49,555,371 or 133.15% of Limited Partners' capital
contributions.
II-H PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2004 COMPARED TO THE THREE MONTHS ENDED MARCH
31, 2003.
Three Months Ended March 31,
----------------------------
2004 2003
-------- --------
Oil and gas sales $396,233 $371,008
Oil and gas production expenses $ 71,050 $ 86,191
Barrels produced 3,652 3,330
Mcf produced 63,116 56,418
Average price/Bbl $ 30.70 $ 29.96
Average price/Mcf $ 4.50 $ 4.81
As shown in the table above, total oil and gas sales increased $25,225
(6.8%) for the three months ended March 31, 2004 as compared to the three
months ended March 31, 2003. Of this increase, approximately (i) $9,000
and $32,000, respectively, were related to increases in volumes of oil and
gas sold and (ii) $3,000 was related to an increase in the average price
of oil sold. These increases were partially offset by a decrease of
approximately $19,000 related to a decrease in the average price of gas
sold. Volumes of oil and gas sold increased 322 barrels and 6,698 Mcf,
respectively, for the three months ended March 31, 2004 as compared to the
three months ended March 31, 2003. The increases in volumes of both oil
and gas sold were primarily due to positive prior period volume
adjustments made by the operators on one significant oil well and one
significant gas well during the three months ended March 31, 2004. Average
oil prices increased to $30.70 per barrel for the three months ended March
31, 2004 from $29.96 per barrel for the three months ended March 31, 2003.
Average gas prices decreased to $4.50 per Mcf for the three months ended
March 31, 2004 from $4.81 per Mcf for the three months ended March 31,
2003.
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Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $15,141 (17.6%) for the three months ended
March 31, 2004 as compared to the three months ended March 31, 2003. This
decrease was primarily due to workover expenses incurred on two
significant wells during the three months ended March 31, 2003. As a
percentage of oil and gas sales, these expenses decreased to 17.9% for the
three months ended March 31, 2004 from 23.2% for the three months ended
March 31, 2003. This percentage decrease was primarily due to the dollar
decrease in oil and gas production expenses.
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,074 (19.4%) for the three months ended March 31, 2004 as
compared to the three months ended March 31, 2003. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves at March 31, 2004 as compared to March 31, 2003. As a
percentage of oil and gas sales, this expense decreased to 4.3% for the
three months ended March 31, 2004 from 5.7% for the three months ended
March 31, 2003. This percentage decrease was primarily due to the dollar
decrease in depreciation, depletion, and amortization of oil and gas
properties.
General and administrative expenses decreased $4,609 (12.7%) for the three
months ended March 31, 2004 as compared to the three months ended March
31, 2003. As a percentage of oil and gas sales, these expenses decreased
to 8.0% for the three months ended March 31, 2004 from 9.8% for the three
months ended March 31, 2003. This percentage decrease was primarily due to
the increase in oil and gas sales.
The Limited Partners have received cash distributions through March 31,
2004 totaling $11,518,364 or 125.59% of Limited Partners' capital
contributions.
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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
As of the end of this period covered by this report, the principal
executive officer and principal financial officer conducted an
evaluation of the Partnerships' disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
and Exchange Act of 1934). Based on this evaluation, such officers
concluded that the Partnerships' disclosure controls and procedures
are effective to ensure that information required to be disclosed by
the Partnerships in reports filed under the Exchange Act is
recorded, processed, summarized, and reported accurately and within
the time periods specified in the Securities and Exchange Commission
rules and forms.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
As discussed in the Partnership's Annual Report on Form 10-K for the
year ended December 31, 2003 the II-A Partnership is involved in a
lawsuit styled Xplor Energy Operating Co. v. The Newton Corp, et
al., Case No. 99-04-01960-CV, 284th Judicial District Court of
Montgomery County, Texas. The primary remaining issue in this
lawsuit is the Partnership's appeal of a decision granting The
Newton Corp. $300 plus attorneys' fees, for which the Partnership
has made a significant accrual. On May 7, 2004 the Texas Supreme
Court agreed to consider the Partnership's appeal of this decision.
A final decision from the Texas Supreme Court is not expected until
2005.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
31.1 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-A Partnership.
31.2 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-A Partnership.
31.3 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-B Partnership.
31.4 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-B Partnership.
31.5 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-C Partnership.
31.6 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-C Partnership.
31.7 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-D Partnership.
31.8 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-D Partnership.
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31.9 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-E Partnership.
31.10 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-E Partnership.
31.11 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-F Partnership.
31.12 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-F Partnership.
31.13 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-G Partnership.
31.14 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-G Partnership.
31.15 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the II-H Partnership.
31.16 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the II-H Partnership.
32.1 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-A Partnership.
32.2 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-B Partnership.
32.3 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-C Partnership.
32.4 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-D Partnership.
32.5 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-E Partnership.
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32.6 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-F Partnership.
32.7 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-G Partnership.
32.8 Certification pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002 for the II-H Partnership.
(b) Reports on Form 8-K.
Current Report on Form 8-K filed during the first quarter of 2004:
Date of Event: February 4, 2004
Date Filed with SEC: February 4, 2004
Items Included: Item 5 - Other Events
Item 7 - Exhibits
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: May 14, 2004 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: May 14, 2004 By: /s/Craig D. Loseke
--------------------------------
(Signature)
Craig D. Loseke
Chief Accounting Officer
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INDEX TO EXHIBITS
-----------------
Exh.
No. Exhibit
- ---- -------
31.1 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-A.
31.2 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-A.
31.3 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-B.
31.4 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-B.
31.5 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-C.
31.6 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-C.
31.7 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-D.
31.8 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-D.
31.9 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-E.
31.10 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-E.
31.11 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-F.
31.12 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-F.
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31.13 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-G.
31.14 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-G.
31.15 Certification by Dennis R. Neill required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-H.
31.16 Certification by Craig D. Loseke required by Rule
13a-14(a)/15d-14(a) for the Geodyne Energy Income Limited
Partnership II-H.
32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-A.
32.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-B.
32.3 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-C.
32.4 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-D.
32.5 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-E.
32.6 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-F.
32.7 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-G.
32.8 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for the
Geodyne Energy Income Limited Partnership II-H.
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