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, 2005
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,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,602,531 $1,557,473
Accounts receivable:
Oil and gas sales 1,091,518 1,004,704
---------- ----------
Total current assets $2,694,049 $2,562,177
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,196,216 2,226,122
DEFERRED CHARGE 625,308 625,308
---------- ----------
$5,515,573 $5,413,607
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 252,301 $ 273,971
Accrued liability - other (Note 1) - 26,672
Gas imbalance payable 108,636 108,636
Asset retirement obligation -
current (Note 1) 10,039 34,994
---------- ----------
Total current liabilities $ 370,976 $ 444,273
LONG-TERM LIABILITIES:
Accrued liability $ 179,306 $ 179,306
Asset retirement obligation
(Note 1) 386,115 358,676
---------- ----------
Total long-term liabilities $ 565,421 $ 537,982
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 188,200) ($ 201,586)
Limited Partners, issued and
outstanding, 484,283 units 4,767,376 4,632,938
---------- ----------
Total Partners' capital $4,579,176 $4,431,352
---------- ----------
$5,515,573 $5,413,607
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $1,717,134 $1,329,152
Interest income 5,795 1,173
---------- ----------
$1,722,929 $1,330,325
COSTS AND EXPENSES:
Lease operating $ 229,812 $ 276,344
Production tax 108,063 79,601
Depreciation, depletion, and
amortization of oil and gas
properties 51,016 47,582
General and administrative
(Note 2) 155,760 142,462
---------- ----------
$ 544,651 $ 545,989
---------- ----------
NET INCOME $1,178,278 $ 784,336
========== ==========
GENERAL PARTNER - NET INCOME $ 121,840 $ 82,599
========== ==========
LIMITED PARTNERS - NET INCOME $1,056,438 $ 701,737
========== ==========
NET INCOME per unit $ 2.18 $ 1.45
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,178,278 $ 784,336
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 51,016 47,582
Settlement of asset retirement
obligation ( 188) -
Increase in accounts receivable -
oil and gas sales ( 86,814) ( 83,107)
Decrease in accounts payable ( 54,217) ( 82,509)
Decrease in accrued liability -
other ( 26,672) -
---------- ----------
Net cash provided by operating
activities $1,061,403 $ 666,302
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 13,173) ($ 3,208)
Proceeds from sale of oil and
gas properties 27,282 477
---------- ----------
Net cash provided (used) by investing
activities $ 14,109 ($ 2,731)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,030,454) ($ 812,590)
---------- ----------
Net cash used by financing activities ($1,030,454) ($ 812,590)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 45,058 ($ 149,019)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,557,473 1,428,609
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,602,531 $1,279,590
========== ==========
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,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,118,970 $1,079,057
Accounts receivable:
Oil and gas sales 864,063 750,466
---------- ----------
Total current assets $1,983,033 $1,829,523
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,553,417 1,590,243
DEFERRED CHARGE 252,768 252,768
---------- ----------
$3,789,218 $3,672,534
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 165,430 $ 202,172
Gas imbalance payable 39,527 39,527
Asset retirement obligation -
current (Note 1) 6,947 17,122
---------- ----------
Total current liabilities $ 211,904 $ 258,821
LONG-TERM LIABILITIES:
Accrued liability $ 42,599 $ 42,599
Asset retirement obligation
(Note 1) 204,387 193,076
---------- ----------
Total long-term liabilities $ 246,986 $ 235,675
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 217,933) ($ 232,828)
Limited Partners, issued and
outstanding, 361,719 units 3,548,261 3,410,866
---------- ----------
Total Partners' capital $3,330,328 $3,178,038
---------- ----------
$3,789,218 $3,672,534
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
---------- --------
REVENUES:
Oil and gas sales $1,300,982 $967,481
Interest income 3,996 805
---------- --------
$1,304,978 $968,286
COSTS AND EXPENSES:
Lease operating $ 165,906 $197,551
Production tax 89,655 67,349
Depreciation, depletion, and
amortization of oil and gas
properties 38,160 33,431
General and administrative
(Note 2) 121,891 107,870
---------- --------
$ 415,612 $406,201
---------- --------
NET INCOME $ 889,366 $562,085
========== ========
GENERAL PARTNER - NET INCOME $ 91,971 $ 59,137
========== ========
LIMITED PARTNERS - NET INCOME $ 797,395 $502,948
========== ========
NET INCOME per unit $ 2.20 $ 1.39
========== ========
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, 2005 AND 2004
(Unaudited)
2005 2004
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 889,366 $562,085
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 38,160 33,431
Settlement of asset retirement
obligation ( 58) -
Increase in accounts receivable -
oil and gas sales ( 113,597) ( 59,882)
Decrease in accounts payable ( 57,758) ( 24,257)
---------- --------
Net cash provided by operating
activities $ 756,113 $511,377
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 11,529) $ -
Proceeds from sale of oil and gas
properties 32,405 763
---------- --------
Net cash provided by investing
activities $ 20,876 $ 763
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 737,076) ($550,036)
---------- --------
Net cash used by financing
activities ($ 737,076) ($550,036)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 39,913 ($ 37,896)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,079,057 933,790
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,118,970 $895,894
========== ========
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,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 565,181 $ 506,061
Accounts receivable:
Oil and gas sales 419,596 365,499
---------- ----------
Total current assets $ 984,777 $ 871,560
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 715,743 729,670
DEFERRED CHARGE 121,531 121,531
---------- ----------
$1,822,051 $1,722,761
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 81,445 $ 77,395
Gas imbalance payable 22,040 22,040
Asset retirement obligation -
current (Note 1) 6,254 10,892
---------- ----------
Total current liabilities $ 109,739 $ 110,327
LONG-TERM LIABILITIES:
Accrued liability $ 34,323 $ 34,323
Asset retirement obligation
(Note 1) 67,464 62,682
---------- ----------
Total long-term liabilities $ 101,787 $ 97,005
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 90,365) ($ 96,672)
Limited Partners, issued and
outstanding, 154,621 units 1,700,890 1,612,101
---------- ----------
Total Partners' capital $1,610,525 $1,515,429
---------- ----------
$1,822,051 $1,722,761
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
-------- --------
REVENUES:
Oil and gas sales $662,583 $481,020
Interest income 1,845 391
-------- --------
$664,428 $481,411
COSTS AND EXPENSES:
Lease operating $ 75,301 $ 93,926
Production tax 49,294 35,997
Depreciation, depletion, and
amortization of oil and gas
properties 15,192 19,423
General and administrative
(Note 2) 64,672 49,434
-------- --------
$204,459 $198,780
-------- --------
NET INCOME $459,969 $282,631
======== ========
GENERAL PARTNER - NET INCOME $ 47,180 $ 29,972
======== ========
LIMITED PARTNERS - NET INCOME $412,789 $252,659
======== ========
NET INCOME per unit $ 2.67 $ 1.63
======== ========
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, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $459,969 $282,631
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 15,192 19,423
Settlement of asset retirement
obligation ( 40) -
Increase in accounts receivable -
oil and gas sales ( 54,097) ( 28,438)
Decrease in accounts payable ( 7,317) ( 8,351)
-------- --------
Net cash provided by operating
activities $413,707 $265,265
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 3,602) $ -
Proceeds from sale of oil and gas
properties 13,888 327
-------- --------
Net cash provided by investing
activities $ 10,286 $ 327
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($364,873) ($299,335)
-------- --------
Net cash used by financing
activities ($364,873) ($299,335)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 59,120 ($ 33,743)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 506,061 467,560
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $565,181 $433,817
======== ========
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,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,190,684 $ 967,251
Accounts receivable:
Oil and gas sales 869,994 754,092
---------- ----------
Total current assets $2,060,678 $1,721,343
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,372,167 1,385,376
DEFERRED CHARGE 345,329 345,329
---------- ----------
$3,778,174 $3,452,048
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 190,761 $ 157,313
Accrued liability - other (Note 1) 13,141 -
Gas imbalance payable 22,596 22,596
Asset retirement obligation -
current (Note 1) 20,641 25,732
---------- ----------
Total current liabilities $ 247,139 $ 205,641
LONG-TERM LIABILITIES:
Accrued liability $ 109,349 $ 109,349
Asset retirement obligation
(Note 1) 168,490 161,328
---------- ----------
Total long-term liabilities $ 277,839 $ 270,677
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 159,763) ($ 174,338)
Limited Partners, issued and
outstanding, 314,878 units 3,412,959 3,150,068
---------- ----------
Total Partners' capital $3,253,196 $2,975,730
---------- ----------
$3,778,174 $3,452,048
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $1,421,546 $1,070,883
Interest income 3,533 817
Other income 8,411 -
---------- ----------
$1,433,490 $1,071,700
COSTS AND EXPENSES:
Lease operating $ 225,257 $ 195,585
Production tax 85,035 70,753
Depreciation, depletion, and
amortization of oil and gas
properties 37,414 68,841
General and administrative
(Note 2) 108,953 94,657
---------- ----------
$ 456,659 $ 429,836
---------- ----------
NET INCOME $ 976,831 $ 641,864
========== ==========
GENERAL PARTNER - NET INCOME $ 99,940 $ 70,300
========== ==========
LIMITED PARTNERS - NET INCOME $ 876,891 $ 571,564
========== ==========
NET INCOME per unit $ 2.78 $ 1.82
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
------------ ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 976,831 $641,864
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation, depletion, and
amortization of oil and gas
properties 37,414 68,841
Increase in accounts receivable -
oil and gas sales ( 115,902) ( 92,188)
Increase (decrease) in accounts
payable 14,090 ( 32,745)
Increase in accrued liability -
other 13,141 -
---------- --------
Net cash provided by operating
activities $ 925,574 $585,772
---------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 3,849) $ -
Proceeds from sale of oil and gas
properties 1,073 13
---------- --------
Net cash provided (used) by investing
activities ($ 2,776) $ 13
---------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($ 699,365) ($611,561)
---------- --------
Net cash used by financing
activities ($ 699,365) ($611,561)
---------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS $ 223,433 ($ 25,776)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 967,251 908,655
---------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,190,684 $882,879
========== ========
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,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 677,569 $ 680,844
Accounts receivable:
Oil and gas sales 541,890 453,868
---------- ----------
Total current assets $1,219,459 $1,134,712
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,212,489 1,246,328
DEFERRED CHARGE 208,295 208,295
---------- ----------
$2,640,243 $2,589,335
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 103,154 $ 180,564
Accrued liability - other (Note 1) 9,670 -
Gas imbalance payable 43,424 43,424
Asset retirement obligation -
current (Note 1) 2,068 24,458
---------- ----------
Total current liabilities $ 158,316 $ 248,446
LONG-TERM LIABILITIES:
Accrued liability $ 10,668 $ 10,668
Asset retirement obligation
(Note 1) 101,616 77,986
---------- ----------
Total long-term liabilities $ 112,284 $ 88,654
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 117,477) ($ 132,096)
Limited Partners, issued and
outstanding, 228,821 units 2,487,120 2,384,331
---------- ----------
Total Partners' capital $2,369,643 $2,252,235
---------- ----------
$2,640,243 $2,589,335
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
-------- --------
REVENUES:
Oil and gas sales $828,768 $701,330
Interest income 2,535 555
Other income 5,177 -
-------- --------
$836,480 $701,885
COSTS AND EXPENSES:
Lease operating $ 88,845 $109,761
Production tax 60,977 50,156
Depreciation, depletion, and
amortization of oil and gas
properties 44,713 147,592
General and administrative
(Note 2) 85,174 71,305
-------- --------
$279,709 $378,814
-------- --------
NET INCOME $556,771 $323,071
======== ========
GENERAL PARTNER - NET INCOME $ 58,982 $ 45,535
======== ========
LIMITED PARTNERS - NET INCOME $497,789 $277,536
======== ========
NET INCOME per unit $ 2.18 $ 1.21
======== ========
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, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $556,771 $323,071
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 44,713 147,592
Increase in accounts receivable -
oil and gas sales ( 88,022) ( 54,241)
Decrease in accounts payable ( 79,018) ( 14,494)
Increase in accrued liability -
other 9,670 -
-------- --------
Net cash provided by operating
activities $444,114 $401,928
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 8,026) ($ 3,928)
-------- --------
Net cash used by investing
activities ($ 8,026) ($ 3,928)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($439,363) ($405,537)
-------- --------
Net cash used by financing
activities ($439,363) ($405,537)
-------- --------
NET DECREASE IN CASH AND CASH
EQUIVALENTS ($ 3,275) ($ 7,537)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 680,844 638,668
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $677,569 $631,131
======== ========
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,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 653,248 $ 657,406
Accounts receivable:
Oil and gas sales 558,501 457,333
---------- ----------
Total current assets $1,211,749 $1,114,739
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 1,162,884 1,187,019
DEFERRED CHARGE 35,102 35,102
---------- ----------
$2,409,735 $2,336,860
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 66,998 $ 235,395
Gas imbalance payable 3,392 3,392
Asset retirement obligation -
current (Note 1) 1,570 6,987
---------- ----------
Total current liabilities $ 71,960 $ 245,774
LONG-TERM LIABILITIES:
Accrued liability $ 20,227 $ 20,227
Asset retirement obligation
(Note 1) 102,222 95,331
---------- ----------
Total long-term liabilities $ 122,449 $ 115,558
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 80,752) ($ 98,202)
Limited Partners, issued and
outstanding, 171,400 Units 2,296,078 2,073,730
---------- ----------
Total Partners' capital $2,215,326 $1,975,528
---------- ----------
$2,409,735 $2,336,860
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
-------- --------
REVENUES:
Oil and gas sales $928,981 $782,910
Interest income 2,385 552
Gain on sale of oil and gas
properties - 1,137
-------- --------
$931,366 $784,599
COSTS AND EXPENSES:
Lease operating $ 40,934 $ 87,218
Production tax 63,754 51,035
Depreciation, depletion, and
amortization of oil and gas
properties 29,821 32,482
General and administrative
(Note 2) 69,309 54,300
-------- --------
$203,818 $225,035
-------- --------
NET INCOME $727,548 $559,564
======== ========
GENERAL PARTNER - NET INCOME $ 75,200 $ 58,825
======== ========
LIMITED PARTNERS - NET INCOME $652,348 $500,739
======== ========
NET INCOME per unit $ 3.81 $ 2.92
======== ========
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, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $727,548 $559,564
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 29,821 32,482
Gain on sale of oil and gas
properties - ( 1,137)
Increase in accounts receivable -
oil and gas sales ( 101,168) ( 60,624)
Decrease in accounts payable ( 159,524) ( 12,682)
-------- --------
Net cash provided by operating
activities $496,677 $517,603
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 13,085) $ -
Proceeds from sale of oil and
gas properties - 962
-------- --------
Net cash provided (used) by investing
activities ($ 13,085) $ 962
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($487,750) ($466,598)
-------- --------
Net cash used by financing
activities ($487,750) ($466,598)
-------- --------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 4,158) $ 51,967
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 657,406 604,369
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $653,248 $656,336
======== ========
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,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $1,397,954 $1,401,928
Accounts receivable:
Oil and gas sales 1,190,220 972,620
---------- ----------
Total current assets $2,588,174 $2,374,548
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 2,500,394 2,554,683
DEFERRED CHARGE 75,307 75,307
---------- ----------
$5,163,875 $5,004,538
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 124,056 $ 498,893
Gas imbalance payable 11,846 11,846
Asset retirement obligation -
current (Note 1) 3,376 15,421
---------- ----------
Total current liabilities $ 139,278 $ 526,160
LONG-TERM LIABILITIES:
Accrued liability $ 35,560 $ 35,560
Asset retirement obligation
(Note 1) 218,376 203,216
---------- ----------
Total long-term liabilities $ 253,936 $ 238,776
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 62,041) ($ 101,669)
Limited Partners, issued and
outstanding, 372,189 Units 4,832,702 4,341,271
---------- ----------
Total Partners' capital $4,770,661 $4,239,602
---------- ----------
$5,163,875 $5,004,538
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
REVENUES:
Oil and gas sales $1,988,827 $1,662,197
Interest income 5,156 1,181
Gain on sale of oil and gas
properties - 2,449
---------- ----------
$1,993,983 $1,665,827
COSTS AND EXPENSES:
Lease operating $ 102,002 $ 186,492
Production tax 135,658 108,805
Depreciation, depletion, and
amortization of oil and gas
properties 66,127 70,333
General and administrative
(Note 2) 124,788 110,961
---------- ----------
$ 428,575 $ 476,591
---------- ----------
NET INCOME $1,565,408 $1,189,236
========== ==========
GENERAL PARTNER - NET INCOME $ 161,977 $ 125,135
========== ==========
LIMITED PARTNERS - NET INCOME $1,403,431 $1,064,101
========== ==========
NET INCOME per unit $ 3.77 $ 2.86
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,565,408 $1,189,236
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 66,127 70,333
Gain on sale of oil and gas
properties - ( 2,449)
Increase in accounts receivable -
oil and gas sales ( 217,600) ( 127,382)
Decrease in accounts payable ( 355,183) ( 26,032)
---------- ----------
Net cash provided by operating
activities $1,058,752 $1,103,706
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 28,377) $ -
Proceeds from sale of oil and
gas properties - 2,084
---------- ----------
Net cash provided (used) by investing
activities ($ 28,377) $ 2,084
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($1,034,349) ($ 987,193)
---------- ----------
Net cash used by financing
activities ($1,034,349) ($ 987,193)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ($ 3,974) $ 118,597
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 1,401,928 1,284,869
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $1,397,954 $1,403,466
========== ==========
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,
2005 2004
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 329,374 $ 329,148
Accounts receivable:
Oil and gas sales 284,848 232,187
---------- ----------
Total current assets $ 614,222 $ 561,335
NET OIL AND GAS PROPERTIES, utilizing
the successful efforts method 592,705 605,801
DEFERRED CHARGE 19,734 19,734
---------- ----------
$1,226,661 $1,186,870
========== ==========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 43,829 $ 118,306
Asset retirement obligation -
current (Note 1) 823 3,884
---------- ----------
Total current liabilities $ 44,652 $ 122,190
LONG-TERM LIABILITIES:
Accrued liability $ 11,907 $ 11,907
Asset retirement obligation
(Note 1) 53,502 49,677
---------- ----------
Total long-term liabilities $ 65,409 $ 61,584
PARTNERS' CAPITAL (DEFICIT):
General Partner ($ 45,921) ($ 54,377)
Limited Partners, issued and
outstanding, 91,711 Units 1,162,521 1,057,473
---------- ----------
Total Partners' capital $1,116,600 $1,003,096
---------- ----------
$1,226,661 $1,186,870
========== ==========
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, 2005 AND 2004
(Unaudited)
2005 2004
-------- --------
REVENUES:
Oil and gas sales $473,771 $396,233
Interest income 1,161 312
Gain on sale of oil and gas
properties - 612
-------- --------
$474,932 $397,157
COSTS AND EXPENSES:
Lease operating $ 24,203 $ 44,919
Production tax 32,761 26,131
Depreciation, depletion, and
amortization of oil and gas
properties 15,841 16,977
General and administrative
(Note 2) 47,285 31,807
-------- --------
$120,090 $119,834
-------- --------
NET INCOME $354,842 $277,323
======== ========
GENERAL PARTNER - NET INCOME $ 36,794 $ 29,229
======== ========
LIMITED PARTNERS - NET INCOME $318,048 $248,094
======== ========
NET INCOME per unit $ 3.47 $ 2.71
======== ========
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, 2005 AND 2004
(Unaudited)
2005 2004
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $354,842 $277,323
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion, and
amortization of oil and gas
properties 15,841 16,977
Gain on sale of oil and gas
properties - ( 612)
Increase in accounts receivable -
oil and gas sales ( 52,661) ( 29,925)
Decrease in accounts payable ( 69,456) ( 5,837)
-------- --------
Net cash provided by operating
activities $248,566 $257,926
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ($ 7,002) $ -
Proceeds from sale of oil and
gas properties - 528
-------- --------
Net cash provided (used) by investing
activities ($ 7,002) $ 528
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash distributions ($241,338) ($232,024)
-------- --------
Net cash used by financing
activities ($241,338) ($232,024)
-------- --------
NET INCREASE IN CASH AND CASH
EQUIVALENTS $ 226 $ 26,430
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 329,148 305,096
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $329,374 $331,526
======== ========
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, 2005
(Unaudited)
1. ACCOUNTING POLICIES
-------------------
The combined balance sheets as of March 31, 2005, combined statements of
operations for the three months ended March 31, 2005 and 2004, and
combined statements of cash flows for the three months ended March 31,
2005 and 2004 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, 2005, the combined results of operations for the
three months ended March 31, 2005 and 2004, and the combined cash flows
for the three months ended March 31, 2005 and 2004.
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, 2004. The
results of operations for the period ended March 31, 2005 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 December 31, 2004 for the II-A
Partnership represents a charge accrued for the payment of a judgment
related to plugging obligations. The decrease in Accrued Liability - Other
from December 31, 2004 to March 31, 2005 was due to a ruling made by the
Texas Supreme Court on April 8, 2005 that the Partnership did not owe this
liability.
-27-
ASSET RETIREMENT OBLIGATIONS
----------------------------
The Partnerships' wells must be properly plugged and abandoned after their
oil and gas reserves are exhausted. The Partnerships follow FAS No. 143,
"Accounting for Asset Retirement Obligations" in accounting for the future
expenditures that will be necessary to plug and abandon these wells. FAS
No. 143 requires the estimated plugging and abandonment obligations to be
recognized in the period in which they are incurred (i.e. when the well is
drilled or acquired) if a reasonable estimate of fair value can be made
and to be capitalized as part of the carrying amount of the well.
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, 2005, the II-A, II-B, II-C, II-D, II-E, II-F,
II-G, and II-H Partnerships recognized approximately $8,000, $2,000,
$1,000, $2,000, $1,000, $1,000, $3,000 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, 2005 and 2004 are as shown below.
II-A Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2005 3/31/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $393,670 $277,914
Additions and revisions 280 -
Settlements and disposals ( 1,820) -
Accretion expense 4,024 2,392
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $396,154 $280,306
======== ========
Asset Retirement Obligation -
Current $ 10,039 $ 12,096
Asset Retirement Obligation -
Long-Term 386,115 268,210
-28-
II-B Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2005 3/31/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $210,198 $202,141
Settlements and disposals ( 987) -
Accretion expense 2,123 1,732
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $211,334 $203,873
======== ========
Asset Retirement Obligation -
Current $ 6,947 $ 13,086
Asset Retirement Obligation -
Long-Term 204,387 190,787
II-C Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2005 3/31/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $73,574 $71,173
Settlements and disposals ( 673) -
Accretion expense 817 714
------- -------
Total Asset Retirement,
Obligation, End of Quarter $73,718 $71,887
======= =======
Asset Retirement Obligation -
Current $ 6,254 $ 8,775
Asset Retirement Obligation -
Long-Term 67,464 63,112
-29-
II-D Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2005 3/31/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $187,060 $185,990
Accretion expense 2,071 1,889
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $189,131 $187,879
======== ========
Asset Retirement Obligation -
Current $ 20,641 $ 20,351
Asset Retirement Obligation -
Long-Term 168,490 167,528
II-E Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2005 3/31/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $102,444 $98,320
Additions and revisions 122 -
Accretion expense 1,118 1,015
-------- -------
Total Asset Retirement,
Obligation, End of Quarter $103,684 $99,335
======== =======
Asset Retirement Obligation -
Current $ 2,068 $ 3,391
Asset Retirement Obligation -
Long-Term 101,616 95,944
-30-
II-F Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2005 3/31/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $102,318 $98,166
Additions and revisions 294 -
Accretion expense 1,180 1,063
-------- -------
Total Asset Retirement,
Obligation, End of Quarter $103,792 $99,229
======== =======
Asset Retirement Obligation -
Current $ 1,570 $ 4,823
Asset Retirement Obligation -
Long-Term 102,222 94,406
II-G Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2005 3/31/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $218,637 $209,768
Additions and revisions 617 -
Accretion expense 2,498 2,240
-------- --------
Total Asset Retirement,
Obligation, End of Quarter $221,752 $212,008
======== ========
Asset Retirement Obligation -
Current $ 3,376 $ 10,619
Asset Retirement Obligation -
Long-Term 218,376 201,389
-31-
II-H Partnership
----------------
Three Months Three Months
Ended Ended
3/31/2005 3/31/2004
------------ ------------
Total Asset Retirement
Obligation, January 1 $53,561 $51,379
Additions and revisions 143 -
Accretion expense 621 550
------- -------
Total Asset Retirement,
Obligation, End of Quarter $54,325 $51,929
======= =======
Asset Retirement Obligation -
Current $ 823 $ 2,651
Asset Retirement Obligation -
Long-Term 53,502 49,278
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, 2005, the following payments were made to the General
Partner or its affiliates by the Partnerships:
Direct General Administrative
Partnership and Administrative Overhead
----------- ------------------ --------------
II-A $28,317 $127,443
II-B 26,701 95,190
II-C 23,983 40,689
II-D 26,090 82,863
II-E 24,958 60,216
II-F 24,204 45,105
II-G 26,844 97,944
II-H 23,150 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.
-32-
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, 2005 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
may, however, 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 and Accrued Liability is
the annual average production costs per Mcf.
-35-
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 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.
ASSET RETIREMENT OBLIGATIONS
- ----------------------------
The Partnerships' wells must be properly plugged and abandoned after their
oil and gas reserves are exhausted. The Partnerships follow FAS No. 143,
"Accounting for Asset Retirement Obligations" in accounting for the future
expenditures that will be necessary to plug and abandon these wells. FAS
No. 143 requires the estimated plugging and abandonment obligations to be
recognized in the period in which they are incurred (i.e. when the well is
drilled or acquired) if a reasonable estimate of fair value can be made
and to be capitalized as part of the carrying amount of the well.
NEW ACCOUNTING PRONOUNCEMENTS
- -----------------------------
The Partnerships are not aware of any recently issued accounting
pronouncements that would have an impact on the Partnerships' future
results of operations and financial position.
-36-
PROVED RESERVES AND NET PRESENT VALUE
- -------------------------------------
The process of estimating oil and gas reserves is complex, requiring
significant subjective decisions in the evaluation of available
geological, engineering, and economic data for each reservoir. The data
for a given reservoir may change substantially over time as a result of,
among other things, additional development activity, production history,
and viability of production under varying economic conditions;
consequently, it is reasonably possible that material revisions to
existing reserve estimates may occur in the future. Although every
reasonable effort has been made to ensure that these reserve estimates
represent the most accurate assessment possible, the significance of the
subjective decisions required and variances in available data for various
reservoirs make these estimates generally less precise than other
estimates presented in connection with financial statement disclosures.
The following tables summarize changes in net quantities of the
Partnerships' proved reserves, all of which are located in the United
States, for the periods indicated. The proved reserves were estimated by
petroleum engineers employed by affiliates of the Partnerships, and are
annually reviewed by an independent engineering firm. "Proved reserves"
refers to those estimated quantities of crude oil, gas, and gas liquids
which geological and engineering data demonstrate with reasonable
certainty to be recoverable in future years from known oil and gas
reservoirs under existing economic and operating conditions. The following
information includes certain gas balancing adjustments which cause the gas
volume to differ from the reserve reports prepared by the General Partner.
II-A Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 640,885 6,276,815
Production ( 15,816) ( 168,702)
Extensions and discoveries 187 2,716
Revisions of previous
estimates 37,034 113,517
------- ---------
Proved reserves, March 31, 2005 662,290 6,224,346
======= =========
-37-
II-B Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 464,848 4,820,010
Production ( 11,643) ( 129,650)
Extensions and discoveries 64 4,059
Revisions of previous
estimates 22,552 58,832
------- ---------
Proved reserves, March 31, 2005 475,821 4,753,251
======= =========
II-C Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 165,761 3,453,278
Production ( 4,575) ( 77,808)
Extension and discoveries 32 1,854
Revisions of previous
estimates 7,005 47,020
------- ---------
Proved reserves, March 31, 2005 168,223 3,424,344
======= =========
II-D Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 187,315 9,092,389
Production ( 7,013) ( 185,605)
Extensions and discoveries 5 11,470
Revisions of previous
estimates 6,872 164,006
------- ---------
Proved reserves, March 31, 2005 187,179 9,082,260
======= =========
-38-
II-E Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 180,202 4,984,738
Production ( 5,318) ( 98,896)
Extensions and discoveries 186 6,167
Revisions of previous
estimates 7,387 81,303
------- ---------
Proved reserves, March 31, 2005 182,457 4,973,312
======= =========
II-F Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 341,736 3,712,870
Production ( 6,823) ( 104,383)
Extension and discoveries 439 7,152
Revisions of previous
estimates 8,721 62,265
------- ---------
Proved reserves, March 31, 2005 344,073 3,677,904
======= =========
II-G Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 716,461 7,960,566
Production ( 14,304) ( 223,081)
Extension and discoveries 921 14,464
Revisions of previous
estimates 18,322 136,471
------- ---------
Proved reserves, March 31, 2005 721,400 7,888,420
======= =========
-39-
II-H Partnership
----------------
Crude Natural
Oil Gas
(Barrels) (Mcf)
--------- -----------
Proved reserves, Dec. 31, 2004 166,923 1,928,846
Production ( 3,322) ( 53,716)
Extension and discoveries 213 3,519
Revisions of previous
estimates 4,244 33,734
------- ---------
Proved reserves, March 31, 2005 168,058 1,912,383
======= =========
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, 2005 and December 31, 2004.
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,
2005. There can be no assurance that the prices used in calculating the
net present value of the Partnerships' proved reserves at March 31, 2005
will actually be realized for such production.
-40-
Net Present Value of Reserves
-------------------------------------------------
Partnership 3/31/05 12/31/04
----------- ----------- -----------
II-A $28,681,799 $22,577,646
II-B 21,176,468 16,786,623
II-C 12,891,812 10,385,490
II-D 28,456,012 23,002,363
II-E 16,143,499 13,207,547
II-F 16,089,345 13,041,206
II-G 34,175,448 27,697,953
II-H 8,143,211 6,599,223
Oil and Gas Prices
-------------------------------------------------
Pricing 3/31/05 12/31/04
----------- ----------- -----------
Oil (Bbl) $ 55.31 $ 43.36
Gas (Mcf) 7.17 6.02
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;
-41-
* 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.
In addition to pricing, the level of net revenues is also highly dependent
upon the total volumes of oil and natural gas sold. Oil and gas reserves
are depleting assets and will experience production declines over time,
thereby likely resulting in reduced net revenues. Despite this general
trend of declining production, several factors can cause the volumes of
oil and gas sold to increase or decrease at an even greater rate over a
given period. These factors include, but are not limited to, (i)
geophysical conditions which cause an acceleration of the decline in
production, (ii) the shutting in of wells (or the opening of previously
shut-in wells) due to low oil and gas prices (or high oil and gas prices),
mechanical difficulties, loss of a market or transportation, or
performance of workovers, recompletions, or other operations in the well,
(iii) prior period volume adjustments (either positive or negative) made
by the purchasers of the production, (iv) ownership adjustments in
accordance with agreements governing the operation or ownership of the
well (such as adjustments that occur at payout), and (v) completion of
enhanced recovery projects which increase production for the well. Many of
these factors are very significant as related to a single well or as
related to many wells over a short period of time. However, due to the
large number of wells owned by the Partnerships, these factors are
generally not material as compared to the normal declines in production
experienced on all remaining wells.
-42-
II-A PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2005 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2004.
Three Months Ended March 31,
-----------------------------
2005 2004
---------- ----------
Oil and gas sales $1,717,134 $1,329,152
Oil and gas production expenses $ 337,875 $ 355,945
Barrels produced 15,816 17,623
Mcf produced 168,702 162,681
Average price/Bbl $ 46.50 $ 31.20
Average price/Mcf $ 5.82 $ 4.79
As shown in the table above, total oil and gas sales increased $387,982
(29.2%) for the three months ended March 31, 2005 as compared to the three
months ended March 31, 2004. Of this increase, approximately $242,000 and
$174,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by a decrease of
approximately $56,000 related to a decrease in volumes of oil sold.
Volumes of oil sold decreased 1,807 barrels, while volumes of gas sold
increased 6,021 Mcf for the three months ended March 31, 2005 as compared
to the three months ended March 31, 2004. The decrease in volumes of oil
sold was primarily due to normal declines in production. The increase in
volumes of gas sold was primarily due to (i) positive prior period volume
adjustments made by the operator on two significant wells during the three
months ended March 31, 2005, (ii) negative prior period volume adjustments
on two other significant wells during the three months ended March 31,
2004, and (iii) the successful completion of a new well during mid 2004.
These increases were partially offset by the shutting-in of one
significant well during late 2004 and early 2005 due to a transportation
problem associated with line pressure. As of the date of this Quarterly
Report, the shut-in well is expected to return to production in mid 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $18,070 (5.1%) for the three months ended
March 31, 2005 as compared to the three months ended March 31, 2004. This
decrease was primarily due to (i) a reversal during the three months ended
March 31, 2005 of approximately $27,000 of a charge previously accrued for
a judgment and (ii) workover expenses incurred on several wells during the
three months ended March 31, 2004. These decreases were partially offset
by (i) an increase in production taxes associated with the increase in oil
and gas sales and (ii) workover expenses incurred on several other wells
during the three months ended March 31, 2005. As a percentage of oil and
gas sales, these expenses decreased to 19.7% for the three months ended
March 31, 2005 from 26.8% for the three months ended March
-43-
31, 2004. This percentage decrease was primarily due to the increases in
the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $3,434 (7.2%) for the three months ended March 31, 2005 as
compared to the three months ended March 31, 2004. As a percentage of oil
and gas sales, this expense decreased to 3.0% for the three months ended
March 31, 2005 from 3.6% for the three months ended March 31, 2004. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
General and administrative expenses increased $13,298 for the three months
ended March 31, 2005 as compared to the three months ended March 31, 2004.
As a percentage of oil and gas sales, these expenses decreased to 9.1% for
the three months ended March 31, 2005 from 10.7% for the three months
ended March 31, 2004. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
The Limited Partners have received cash distributions through March 31,
2005 totaling $62,002,357 or 128.03% of Limited Partners' capital
contributions.
II-B PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2005 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2004.
Three Months Ended March 31,
-----------------------------
2005 2004
---------- --------
Oil and gas sales $1,300,982 $967,481
Oil and gas production expenses $ 255,561 $264,900
Barrels produced 11,643 11,835
Mcf produced 129,650 124,571
Average price/Bbl $ 46.52 $ 32.51
Average price/Mcf $ 5.86 $ 4.68
As shown in the table above, total oil and gas sales increased $333,501
(34.5%) for the three months ended March 31, 2005 as compared to the three
months ended March 31, 2004. Of this increase, approximately $163,000 and
$153,000, respectively, were related to increases in the average prices of
oil and gas sold. Volumes of oil sold decreased 192 barrels, while volumes
of gas sold increased 5,079 Mcf for the three months ended March 31, 2005
as compared to the three months ended March 31, 2004. The increase in
volumes of gas sold was primarily due to negative prior period volume
adjustments on two significant wells during the three months ended March
31, 2004. These increases were partially offset by the shutting-in of one
significant well during late 2004 and early 2005 due to a transportation
problem associated with line pressure. As of
-44-
the date of this Quarterly Report, the shut-in well is expected to return
to production in mid 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $9,339 (3.5%) for the three months ended March
31, 2005 as compared to the three months ended March 31, 2004. This
decrease was primarily due to (i) workover expenses incurred on several
wells during the three months ended March 31, 2004, (ii) positive prior
period lease operating expense adjustments made by the operators on two
significant wells during the three months ended March 31, 2004, and (iii)
repair and maintenance expenses incurred on another significant well
during the three months ended March 31, 2004. These decreases were
partially offset by (i) an increase in production taxes associated with
the increase in oil and gas sales and (ii) workover expenses incurred on
two significant wells during the three months ended March 31, 2005. As a
percentage of oil and gas sales, these expenses decreased to 19.6% for the
three months ended March 31, 2005 from 27.4% for the three months ended
March 31, 2004. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
increased $4,729 (14.1%) for the three months ended March 31, 2005 as
compared to the three months ended March 31, 2004. This increase was
primarily due to an increase in depletable oil and gas properties due to
the developmental drilling of one significant well during the three months
ended March 31, 2005. As a percentage of oil and gas sales, this expense
decreased to 2.9% for the three months ended March 31, 2005 from 3.5% for
the three months ended March 31, 2004. This percentage decrease was
primarily due to the increases in the average prices of oil and gas sold.
General and administrative expenses increased $14,021 for the three months
ended March 31, 2005 as compared to the three months ended March 31, 2004.
As a percentage of oil and gas sales, these expenses decreased to 9.4% for
the three months ended March 31, 2005 from 11.1% for the three months
ended March 31, 2004. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
The Limited Partners have received cash distributions through March 31,
2005 totaling $44,610,916 or 123.33% of Limited Partners' capital
contributions.
-45-
II-C PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2005 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2004.
Three Months Ended March 31,
----------------------------
2005 2004
-------- --------
Oil and gas sales $662,583 $481,020
Oil and gas production expenses $124,595 $129,923
Barrels produced 4,575 4,506
Mcf produced 77,808 72,221
Average price/Bbl $ 45.42 $ 32.30
Average price/Mcf $ 5.85 $ 4.65
As shown in the table above, total oil and gas sales increased $181,563
(37.7%) for the three months ended March 31, 2005 as compared to the three
months ended March 31, 2004. Of this increase, approximately (i) $60,000
and $93,000, respectively, were related to increases in the average prices
of oil and gas sold and (ii) $26,000 was related to an increase in volumes
of gas sold. Volumes of oil and gas sold increased 69 barrels and 5,587
Mcf, respectively, for the three months ended March 31, 2005 as compared
to the three months ended March 31, 2004. The increase in volumes of oil
sold was primarily due to (i) a positive prior period volume adjustment
made by the operator on one significant well during the three months ended
March 31, 2005 and (ii) increases in production on several wells within
one unit following successful workovers of those wells during 2004. These
increases were partially offset by normal declines in production. The
increase in volumes of gas sold was primarily due to (i) the first receipt
of revenues on one significant well during late 2004, (ii) increases in
production on several wells following successful workovers of those wells
during late 2004 and early 2005, and (iii) negative prior period volume
adjustments on two significant wells during the three months ended March
31, 2004. These increases were partially offset by the shutting-in of one
significant well during late 2004 and early 2005 due to a transportation
problem associated with line pressure. As of the date of this Quarterly
Report, the shut-in well is expected to return to production in mid 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $5,328 (4.1%) for the three months ended March
31, 2005 as compared to the three months ended March 31, 2004. This
decrease was primarily due to (i) workover expenses incurred on several
wells during the three months ended March 31, 2004, (ii) positive prior
period lease operating expense adjustments made by the operators on two
significant wells during the three months ended March 31, 2004, and (iii)
repair and maintenance expenses incurred on one significant well during
the three months ended March 31, 2004. These decreases were
-46-
partially offset by (i) an increase in production taxes associated with
the increase in oil and gas sales and (ii) workover expenses incurred on
two significant wells during the three months ended March 31, 2005. As a
percentage of oil and gas sales, these expenses decreased to 18.8% for the
three months ended March 31, 2005 from 27.0% for the three months ended
March 31, 2004. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,231 (21.8%) for the three months ended March 31, 2005 as
compared to the three months ended March 31, 2004. This decrease was
primarily due to upward revisions in the estimates of remaining oil and
gas reserves since March 31, 2004. As a percentage of oil and gas sales,
this expense decreased to 2.3% for the three months ended March 31, 2005
from 4.0% for the three months ended March 31, 2004. This percentage
decrease was primarily due to (i) the increases in the average prices of
oil and gas sold and (ii) the dollar decrease in depreciation, depletion,
and amortization of oil and gas properties.
General and administrative expenses increased $15,238 for the three months
ended March 31, 2005 as compared to the three months ended March 31, 2004.
As a percentage of oil and gas sales, these expenses decreased to 9.8% for
the three months ended March 31, 2005 from 10.3% for the three months
ended March 31, 2004.
The Limited Partners have received cash distributions through March 31,
2005 totaling $20,986,686 or 135.73% of Limited Partners' capital
contributions.
II-D PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2005 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2004.
Three Months Ended March 31,
----------------------------
2005 2004
---------- ----------
Oil and gas sales $1,421,546 $1,070,883
Oil and gas production expenses $ 310,292 $ 266,338
Barrels produced 7,013 7,389
Mcf produced 185,605 173,189
Average price/Bbl $ 44.85 $ 31.82
Average price/Mcf $ 5.96 $ 4.83
As shown in the table above, total oil and gas sales increased $350,663
(32.7%) for the three months ended March 31, 2005 as compared to the three
months ended March 31, 2004. Of this increase, approximately (i) $91,000
and $211,000, respectively, were related to increases in the average
prices of oil and gas sold and (ii) $60,000 was related to an increase in
volumes of gas sold. Volumes of
-47-
oil sold decreased 376 barrels, while volumes of gas sold increased 12,416
Mcf for the three months ended March 31, 2005 as compared to the three
months ended March 31, 2004. The increase in volumes of gas sold was
primarily due to (i) increases in production on several wells following
successful workovers of those wells during late 2004 and early 2005, (ii)
the receipt of first revenues on one significant well during late 2004,
and (iii) a positive prior period volume adjustment made by the operator
on another significant well during the three months ended March 31, 2005.
These increases were partially offset by the shutting-in of one
significant well during late 2004 and early 2005 due to a transportation
problem associated with line pressure. As of the date of this Quarterly
Report, the shut-in well is expected to return to production in mid 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) increased $43,954 (16.5%) for the three months ended
March 31, 2005 as compared to the three months ended March 31, 2004. This
increase was primarily due to (i) an increase in production taxes
associated with the increase in oil and gas sales and (ii) workover
expenses incurred on several wells during the three months ended March 31,
2005. These increases were partially offset by workover expenses incurred
on another significant well during the three months ended March 31, 2004.
As a percentage of oil and gas sales, these expenses decreased to 21.8%
for the three months ended March 31, 2005 from 24.9% for the three months
ended March 31, 2004. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $31,427 (45.7%) for the three months ended March 31, 2005 as
compared to the three months ended March 31, 2004. This decrease was
primarily due to upward revisions in the estimates of remaining gas
reserves since March 31, 2004, which decrease was partially offset by the
increase in volumes of gas sold. As a percentage of oil and gas sales,
this expense decreased to 2.6% for the three months ended March 31, 2005
from 6.4% for the three months ended March 31, 2004. This percentage
decrease was primarily due to (i) the dollar decrease in depreciation,
depletion, and amortization of oil and gas properties and (ii) the
increases in the average prices of oil and gas sold.
General and administrative expenses increased $14,296 for the three months
ended March 31, 2005 as compared to the three months ended March 31, 2004.
As a percentage of oil and gas sales, these expenses decreased to 7.7% for
the three months ended March 31, 2005 from 8.8% for the three months ended
March 31, 2004. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
-48-
The Limited Partners have received cash distributions through March 31,
2005 totaling $43,841,903 or 139.23% of Limited Partners' capital
contributions.
II-E PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2005 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2004.
Three Months Ended March 31,
----------------------------
2005 2004
-------- --------
Oil and gas sales $828,768 $701,330
Oil and gas production expenses $149,822 $159,917
Barrels produced 5,318 5,116
Mcf produced 98,896 113,320
Average price/Bbl $ 46.40 $ 31.86
Average price/Mcf $ 5.89 $ 4.75
As shown in the table above, total oil and gas sales increased $127,438
(18.2%) for the three months ended March 31, 2005 as compared to the three
months ended March 31, 2004. Of this increase, approximately $77,000 and
$112,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by a decrease of
approximately $69,000 related to a decrease in volumes of gas sold.
Volumes of oil sold increased 202 barrels, while volumes of gas sold
decreased 14,424 Mcf for the three months ended March 31, 2005 as compared
to the three months ended March 31, 2004. The increase in volumes of oil
sold was primarily due to positive prior period volume adjustments made by
the operators on two significant wells during the three months ended March
31, 2005, which increases were partially offset by a positive prior period
volume adjustment made by the operator on one significant well during the
three months ended March 31, 2004. The decrease in volumes of gas sold was
primarily due to (i) the shutting-in of one significant well during late
2004 and early 2005 due to a transportation problem associated with line
pressure and (ii) normal declines in production. As of the date of this
Quarterly Report, the shut-in well is expected to return to production in
mid 2005.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $10,095 (6.3%) for the three months ended
March 31, 2005 as compared to the three months ended March 31, 2004. This
decrease was primarily due to (i) workover expenses incurred on several
wells during the three months ended March 31, 2004, (ii) the receipt of ad
valorem tax credits on one significant well during the three months ended
March 31, 2005, and (iii) a positive prior period lease operating expense
adjustment made by the operator on one significant well during the three
months ended March 31, 2004. These decreases were partially offset by (i)
an increase in production taxes associated with
-49-
the increase in oil and gas sales and (ii) workover expenses incurred on
one significant well during the three months ended March 31, 2005. As a
percentage of oil and gas sales, these expenses decreased to 18.1% for the
three months ended March 31, 2005 from 22.8% for the three months ended
March 31, 2004. This percentage decrease was primarily due to the
increases in the average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $102,879 (69.7%) for the three months ended March 31, 2005 as
compared to the three months ended March 31, 2004. This decrease was
primarily due to (i) one significant well being fully depleted during the
three months ended March 31, 2004 due to the lack of remaining reserves
and (ii) the decrease in volumes of gas sold. As a percentage of oil and
gas sales, this expense decreased to 5.4% for the three months ended March
31, 2005 from 21.0% for the three months ended March 31, 2004. This
percentage decrease was primarily due to the dollar decrease in
depreciation, depletion, and amortization of oil and gas properties.
General and administrative expenses increased $13,869 for the three months
ended March 31, 2005 as compared to the three months ended March 31, 2004.
As a percentage of oil and gas sales, these expenses increased to 10.3%
for the three months ended March 31, 2005 from 10.2% for the three months
ended March 31, 2004.
The Limited Partners have received cash distributions through March 31,
2005 totaling $30,694,574 or 134.14% of Limited Partners' capital
contributions.
II-F PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2005 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2004.
Three Months Ended March 31,
----------------------------
2005 2004
-------- --------
Oil and gas sales $928,981 $782,910
Oil and gas production expenses $104,688 $138,253
Barrels produced 6,823 7,519
Mcf produced 104,383 123,018
Average price/Bbl $ 45.49 $ 30.68
Average price/Mcf $ 5.93 $ 4.49
As shown in the table above, total oil and gas sales increased $146,071
(18.7%) for the three months ended March 31, 2005 as compared to the three
months ended March 31, 2004. Of this increase, approximately $101,000 and
$150,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $21,000 and $84,000, respectively, related to decreases in
volumes of
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oil and gas sold. Volumes of oil and gas sold decreased 696 barrels and
18,635 Mcf, respectively, for the three months ended March 31, 2005 as
compared to the three months ended March 31, 2004. The decrease in volumes
of oil sold was primarily due to (i) positive prior period volume
adjustments made by the operators on several wells during the three months
ended March 31, 2004 and (ii) normal declines in production. The decrease
in volumes of gas sold was primarily due to (i) normal declines in
production and (ii) a positive prior period volume adjustment made by the
operator on one significant well during the three months ended March 31,
2004.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $33,565 (24.3%) for the three months ended
March 31, 2005 as compared to the three months ended March 31, 2004. This
decrease was primarily due to (i) the receipt of ad valorem tax credits on
one significant well during the three months ended March 31, 2005 and (ii)
workover expenses incurred on two significant wells during the three
months ended March 31, 2004. These decreases were partially offset by (i)
an increase in production taxes associated with the increase in oil and
gas sales and (ii) workover expenses incurred on one significant well
during the three months ended March 31, 2005. As a percentage of oil and
gas sales, these expenses decreased to 11.3% for the three months ended
March 31, 2005 from 17.7% for the three months ended March 31 2004. This
percentage decrease was primarily due to (i) the dollar decrease in oil
and gas production expenses and (ii) the increases in the average prices
of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $2,661 (8.2%) for the three months ended March 31, 2005 as
compared to the three months ended March 31, 2004. This decrease was
primarily due to the decreases in volumes of oil and gas sold. This
decrease was partially offset by an increase in depletable oil and gas
properties primarily due to the developmental drilling of one significant
well during the three months ended March 31, 2005. As a percentage of oil
and gas sales, this expense decreased to 3.2% for the three months ended
March 31, 2005 from 4.1% for the three months ended March 31, 2004. This
percentage decrease was primarily due to (i) the increases in the average
prices of oil and gas sold and (ii) the dollar decrease in depreciation,
depletion, and amortization of oil and gas properties.
General and administrative expenses increased $15,009 for the three months
ended March 31, 2005 as compared to the three months ended March 31, 2004.
As a percentage of oil and gas sales, these expenses increased to 7.5% for
the three months ended March 31, 2005 from 6.9% for the three months ended
March 31, 2004.
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The Limited Partners have received cash distributions through March 31,
2005 totaling $25,565,051 or 149.15% of Limited Partners' capital
contributions.
II-G PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2005 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2004.
Three Months Ended March 31,
----------------------------
2005 2004
---------- ----------
Oil and gas sales $1,988,827 $1,662,197
Oil and gas production expenses $ 237,660 $ 295,297
Barrels produced 14,304 15,750
Mcf produced 223,081 262,468
Average price/Bbl $ 45.48 $ 30.69
Average price/Mcf $ 6.00 $ 4.49
As shown in the table above, total oil and gas sales increased $326,630
(19.7%) for the three months ended March 31, 2005 as compared to the three
months ended March 31, 2004. Of this increase, approximately $212,000 and
$336,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $44,000 and $177,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 1,446
barrels and 39,387 Mcf, respectively, for the three months ended March 31,
2005 as compared to the three months ended March 31, 2004. The decrease in
volumes of oil sold was primarily due to (i) positive prior period volume
adjustments made by the operators on several wells during the three months
ended March 31, 2004 and (ii) normal declines in production. The decrease
in volumes of gas sold was primarily due to (i) normal declines in
production and (ii) a positive prior period volume adjustment made by the
operator on one significant well during the three months ended March 31,
2004.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $57,637 (19.5%) for the three months ended
March 31, 2005 as compared to the three months ended March 31, 2004. This
decrease was primarily due to (i) the receipt of ad valorem tax credits on
one significant well during the three months ended March 31, 2005 and (ii)
workover expenses incurred on two significant wells during the three
months ended March 31, 2004. These decreases were partially offset by (i)
an increase in production taxes associated with the increase in oil and
gas sales and (ii) workover expenses incurred on one significant well
during the three months ended March 31, 2005. As a percentage of oil and
gas sales, these expenses decreased to 11.9% for the three months ended
March 31, 2005 from 17.8% for the three months ended March 31 2004. This
percentage decrease was primarily due to (i) the dollar
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decreases in oil and gas production expenses and (ii) the increase in the
average prices of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $4,206 (6.0%) for the three months ended March 31, 2005 as
compared to the three months ended March 31, 2004. This decrease was
primarily due to the decreases in volumes of oil and gas sold. This
decrease was partially offset by an increase in depletable oil and gas
properties due to the developmental drilling of one significant well
during the three months ended March 31, 2005. As a percentage of oil and
gas sales, this expense decreased to 3.3% for the three months ended March
31, 2005 from 4.2% for the three months ended March 31, 2004. This
percentage decrease was primarily due to the increases in the average
prices of oil and gas sold.
General and administrative expenses increased $13,827 for the three months
ended March 31, 2005 as compared to the three months ended March 31, 2004.
As a percentage of oil and gas sales, these expenses decreased to 6.3% for
the three months ended March 31, 2005 from 6.7% for the three months ended
March 31, 2004.
The Limited Partners have received cash distributions through March 31,
2005 totaling $53,431,371 or 143.56% of Limited Partners' capital
contributions.
II-H PARTNERSHIP
THREE MONTHS ENDED MARCH 31, 2005 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 2004.
Three Months Ended March 31,
----------------------------
2005 2004
-------- --------
Oil and gas sales $473,771 $396,233
Oil and gas production expenses $ 56,964 $ 71,050
Barrels produced 3,322 3,652
Mcf produced 53,716 63,116
Average price/Bbl $ 45.49 $ 30.70
Average price/Mcf $ 6.01 $ 4.50
As shown in the table above, total oil and gas sales increased $77,538
(19.6%) for the three months ended March 31, 2005 as compared to the three
months ended March 31, 2004. Of this increase, approximately $49,000 and
$81,000, respectively, were related to increases in the average prices of
oil and gas sold. These increases were partially offset by decreases of
approximately $10,000 and $42,000, respectively, related to decreases in
volumes of oil and gas sold. Volumes of oil and gas sold decreased 330
barrels and 9,400 Mcf, respectively, for the three months ended March 31,
2005 as compared to the three months ended March 31, 2004. The decrease in
volumes of oil sold was primarily due to (i) positive prior period volume
adjustments made by
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the operators on several wells during the three months ended March 31,
2004 and (ii) normal declines in production. The decrease in volumes of
gas sold was primarily due to (i) normal declines in production and (ii) a
positive prior period volume adjustment made by the operator on one
significant well during the three months ended March 31, 2004.
Oil and gas production expenses (including lease operating expenses and
production taxes) decreased $14,086 (19.8%) for the three months ended
March 31, 2005 as compared to the three months ended March 31, 2004. This
decrease was primarily due to (i) the receipt of ad valorem tax credits on
one significant well during the three months ended March 31, 2005 and (ii)
workover expenses incurred on two significant wells during the three
months ended March 31, 2004. These decreases were partially offset by (i)
an increase in production taxes associated with the increase in oil and
gas sales and (ii) workover expenses incurred on one significant well
during the three months ended March 31, 2005. As a percentage of oil and
gas sales, these expenses decreased to 12.0% for the three months ended
March 31, 2005 from 17.9% for the three months ended March 31 2004. This
percentage decrease was primarily due to (i) the dollar decrease in oil
and gas production expenses and (ii) the increases in the average prices
of oil and gas sold.
Depreciation, depletion, and amortization of oil and gas properties
decreased $1,136 (6.7%) for the three months ended March 31, 2005 as
compared to the three months ended March 31, 2004. This decrease was
primarily due to the decreases in volumes of oil and gas sold. This
decrease was partially offset by an increase in depletable oil and gas
properties due to the developmental drilling of one significant well
during the three months ended March 31, 2005. As a percentage of oil and
gas sales, this expense decreased to 3.3% for the three months ended March
31, 2005 from 4.3% for the three months ended March 31, 2004. This
percentage decrease was primarily due to (i) the increases in the average
prices of oil and gas sold and (ii) the dollar decrease in depreciation,
depletion, and amortization of oil and gas properties.
General and administrative expenses increased $15,478 for the three months
ended March 31, 2005 as compared to the three months ended March 31, 2004.
As a percentage of oil and gas sales, these expenses increased to 10.0%
for the three months ended March 31, 2005 from 8.0% for the three months
ended March 31, 2004. This percentage increase was primarily due to the
dollar increase in general and administrative expenses.
The Limited Partners have received cash distributions through March 31,
2005 totaling $12,419,364 or 135.42% 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. 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 I: LEGAL PROCEEDINGS
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 was filed on May 12, 1999. The Newton Corp. ("Newton")
acquired an interest at auction in the State 87-S1 (the "Well") owned by
the II-A Partnership and two related partnerships (collectively the "Prior
Owners"). Eight months after Newton's acquisition of the Prior Owners'
interest, the operator of the Well, Xplor Energy Operating Co. ("Xplor"),
plugged and abandoned the Well. Xplor filed this lawsuit on May 12, 1999
alleging that the Prior Owners were the record owners of the lease when it
expired and that the Prior Owners were responsible for the costs of
plugging and abandoning the Well. Xplor sought to recover the Prior
Owners' proportionate share of the costs to plug and abandon the well
along with attorneys' fees and interest. The Prior Owners denied liability
and cross-claimed against Newton for indemnity for any amounts that may be
awarded to Xplor. Newton in turn alleged that the Prior Owners were liable
for the plugging costs. Trial was held on August 6, 2001. At the
conclusion of the trial the Court awarded Xplor $86,000 plus $200,000 in
attorney fees and awarded Newton $300 plus $161,000 in attorney fees to be
divided among the Prior Owners. On January 15, 2002 the Prior Owners filed
an appeal of the matter with the Court of Appeals, Fifth District of
Texas, Dallas, Texas, Case No. 05-02-00070-CV. The II-A Partnership has
approximately 15% of the liability with respect to the trial court
judgment rendered in the matter.
On April 23, 2002 the Prior Owners entered into a settlement agreement
with Xplor thereby settling for $165,000 the judgment in favor of Xplor.
On January 23, 2003 the Court of Appeals ruled against Newton on all
issues except one claim resulting in the $300 liability to the Prior
Owners, and remanded the case to the trial court to determine and award to
Newton any portion of the alleged attorneys' fees awarded to them that is
attributable solely to the $300 award against the Prior Owners. On April
8, 2005 the Texas Supreme Court reversed this decision and ruled that the
Prior Owners had no liability to Newton. The Texas Supreme Court remanded
the case to the trial court to render a judgment in favor of the Prior
Owners against Newton in an amount to be determined in order to reimburse
the Prior Owners for the costs to plug and abandon the Well.
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A lawsuit styled Robert W. Scott, Individually and as Managing Member of
R.W. Scott Investments, LLC v. Samson Resources Company, Case No.
C-01-385, was filed in the District Court of Sweetwater County, Wyoming on
June 29, 2001. The lawsuit seeks class action certification and alleges
that Samson deducted from its payments to royalty and overriding royalty
owners certain charges which were improper under the Wyoming royalty
payment statutes. A number of these royalty and overriding royalty
payments burdened the interests of the II-C and II-D Partnerships. In
February 2003, Samson made a supplemental payment to the royalty and
overriding royalty interest owners who were potential class members of
amounts which were then thought to have been improperly deducted plus
statutory interest thereon. The applicable portions of these payments,
$2,548.31 and $26,768.96, respectively, were recouped from the II-C and
II-D Partnerships in the first quarter of 2003. The lawsuit also alleges
that Samson's check stubs did not fully comply with the Wyoming Royalty
Payment Act. Samson intends to vigorously defend this claim.
On January 14, 2005 the trial court issued a letter certifying this
lawsuit as a class action and denying Samson's motion for summary
judgment. On May 4, 2005 the trial court issued a subsequent letter
clarifying its prior decision. However, as of the date of this Quarterly
Report the trial court has not issued an Order certifying the class or
denying Samson's motion for Summary Judgment. The General Partner
anticipates receipt of this Order in the near future and intends to
immediately seek a review of these decisions by the Wyoming Supreme Court.
ITEM 6. EXHIBITS
31.1 Certification by Dennis R. Neill required by Rule 13a-14(a)
/15d-14(a)for the II-A Partnership.
31.2 Certification by Craig D. Loseke required by Rule 13a-14(a)
/15d-14(a) for the II-A Partnership.
31.3 Certification by Dennis R. Neill required by Rule 13a-14(a)
/15d-14(a)for the II-B Partnership.
31.4 Certification by Craig D. Loseke required by Rule 13a-14(a)
/15d-14(a) for the II-B Partnership.
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31.5 Certification by Dennis R. Neill required by Rule 13a-14(a)
/15d-14(a) for the II-C Partnership.
31.6 Certification by Craig D. Loseke required by Rule 13a-14(a)
/15d-14(a) for the II-C Partnership.
31.7 Certification by Dennis R. Neill required by Rule 13a-14(a
)/15d-14(a) for the II-D Partnership.
31.8 Certification by Craig D. Loseke required by Rule 13a-14(a)
/15d-14(a) for the II-D Partnership.
31.9 Certification by Dennis R. Neill required by Rule 13a-14(a)
/15d-14(a) fr 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.
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32.3 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
for the II-C Partnership.
32.4 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
for the II-D Partnership.
32.5 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
for the II-E Partnership.
32.6 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
for the II-F Partnership.
32.7 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
for the II-G Partnership.
32.8 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
for the II-H Partnership.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-A
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-B
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-C
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-D
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-E
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-F
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-G
GEODYNE ENERGY INCOME LIMITED PARTNERSHIP II-H
(Registrant)
BY: GEODYNE RESOURCES, INC.
General Partner
Date: May 13, 2005 By: /s/Dennis R. Neill
--------------------------------
(Signature)
Dennis R. Neill
President
Date: May 13, 2005 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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