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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the year ended
December 31, 2000 Commission File Number 2-71865
----------------- ------------------------------
TEXLAND DRILLING PROGRAM-1981
-----------------------------
(Name of Registrant)
TEXAS 75-1791491
---------------------- ----------------------------------
State of Organization) I.R.S. Employer Identification No.
777 Main Street, Suite 3200
Fort Worth, Texas 76102
----------------------------------------------------- -----------
(Address of Executive Offices) Zip Code
Registrant's Telephone Number (817) 336-2751
--------------
Securities registered pursuant to Section 12(b) of the Act:
Units of Limited Partnership Interest None
------------------------------------- ----------------
(Title of Class) (Voting Units)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 of 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 NO X
-
This report contains a total of 20 pages.
1
PART I
Item 1. Business
----------------
Texland Drilling Program-1981 (a Limited Partnership) was formed on July 20,
1981 with $12,125,000 in aggregate Limited Partnership subscriptions for the
purpose of engaging in the exploration for oil and gas. Such exploration has
taken place principally in the geological area known as the Texas Permian Basin.
The Partnership's drilling and exploration phase is complete. Development of the
Partnership's properties is also substantially complete; however, development
drilling may be undertaken on the Partnership's secondary recovery properties to
the extent necessary to insure the maximum commercial recovery of reserves. No
development wells were drilled during 2000 and 1999.
The Partnership has no plans to borrow funds or reinvest significant amounts of
oil and gas revenues. To the extent that in-fill development is deemed
necessary, however; such operations will be funded from available cash flow.
See Note 6 of Notes to the Financial Statements on page 18 for information about
major purchasers. Sales to such purchasers are on a competitive basis on
short-term contracts customarily used in the industry. Should sales to these
refineries become interrupted, management believes alternative purchasers would
be immediately available on similar terms.
The price of oil and gas is affected by world wide supply and demand beyond the
Partnership's control. The average posted price during the past five years for
West Texas Sour (at an assumed gravity of 40 degrees), the primary type of
Partnership oil, is as follows:
1996 $19.10
1997 $16.86
1998 $ 9.88
1999 $13.56
2000 $24.39
From January 1, 2001 to September 30, 2001, oil prices of such oil ranged from a
low of $18.61 to a high of $23.02.
Item 2 - Properties
-------------------
The Partnership currently has an interest in 244 active gross oil and gas wells,
representing 16.73 net wells. Two of the gross wells and 0.64 of the net wells
are gas wells and the remainder are oil wells.
The Partnership currently has 231 oil wells included in 7 different enhanced
recovery projects operated by Texland Petroleum, Inc. Such enhanced recovery
projects are designed to pressurize the oil bearing reservoirs and increase the
producing rates, property life and overall ultimate recovery of oil.
Item 3 - Legal Proceedings
--------------------------
None
2
Item 4 - Submission of Matters to a Vote of Security Holders
------------------------------------------------------------
None
PART II
Item 5 - Market for Registrant's Common Equity and Related Stockholder Matters
------------------------------------------------------------------------------
Omitted. Not applicable.
Item 6 - Selected Financial Data
--------------------------------
The following table presents selected financial data for each of the past five
years ended December 31, 2000. The data has been derived from the audited
financial statements:
TEXLAND DRILLING PROGRAM - 1981
SELECTED FINANCIAL INFORMATION
FOR THE YEAR ENDED DECEMBER 31,
-------------------------------
STATEMENT OF OPERATIONS DATA:
-----------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
Revenues $ 1,534,376 $ 995,456 $ 930,669 $ 1,481,650 $ 1,694,003
Net Income / (Loss):
Limited Partners 380,922 117,083 (649,141) 111,810 314,195
General Partners 407,435 171,168 (414,113) 198,949 402,096
----------- ----------- ----------- ----------- -----------
Net Income / (Loss): $ 788,357 $ 288,251 $(1,063,254) $ 310,759 $ 716,291
=========== =========== =========== =========== ===========
Net Income / (Loss) per $5,000
Limited Partner Units (2,425
Units Outstanding) $ 157 $ 48 $ (268) $ 46 $ 130
=========== =========== =========== =========== ===========
BALANCE SHEET DATA:
-------------------
Total Assets $ 1,570,122 $ 1,679,430 $ 1,716,897 $ 3,124,611 $ 3,402,265
Total Liabilities $ 48,398 $ 38,017 $ 43,557 $ 46,981 $ 46,594
Partners' Equity $ 1,521,724 $ 1,641,413 $ 1,673,340 $ 3,077,630 $ 3,355,671
PARTNERSHIP CASH DISTRIBUTIONS
------------------------------
Limited Partner (per $5,000 unit) $ 175 $ 53 $ 85 $ 110 $ 155
General Partner $ 490,791 $ 197,900 $ 159,100 $ 430,700 $ 506,700
3
Item 7 - Management's Discussion and Analysis of Financial Condition and Results
--------------------------------------------------------------------------------
of Operations.
--------------
Financial Results
-----------------
Oil and gas sales increased by approximately 49% in 2000 as compared to 1999.
The average price of Partnership oil increased by approximately 80% in 2000. The
increase in revenue is primarily due to such change in oil prices offset by
decreased production.
Oil and gas sales increased by approximately 10% in 1999 as compared to 1998.
The average price of Partnership oil increased by approximately 38% in 1999.
Fees to the managing general partner remained constant in 2000 as compared to
1999. Fees to the managing general partner remained constant in 1999 as compared
to 1998.
Depreciation, depletion and amortization are calculated on the
units-of-production method. Therefore, changes in these amounts are affected by
upward or downward revisions in future oil and gas reserve estimates. In
addition, such revisions are also caused by changes in current prices of oil and
gas, which correspondingly affect the number of future years that oil and gas
properties will remain economically viable.
Due to the large increase in the price of oil in 2000, the Partnership's
estimated future economically recoverable oil reserves improved from 1999.
Depreciation and depletion for 2000 is $130,877 as compared to $158,620 for
1999.
Production expenses increased by 11% in 2000 due to increased production in
2000. Production expenses decreased in 1999 as compared to 1998 due to decreased
production in 1999.
Changes in oil prices substantially impact the net income and cash flow of the
Partnership. All oil produced by the Partnership is sold under short term
contracts that are immediately affected by changes in oil prices. Since 1981,
world oil supply and demand conditions have caused prices to rise and decline in
an essentially unpredictable manner. No changes in these circumstances are
foreseen in the immediate future.
Texland Drilling Program-1981 has substantially completed all the exploration
and development on the oil and gas properties in which it has an interest. No
long-term debt will be incurred and no new properties will be acquired.
Therefore, no future liquidity problems are anticipated by the Partnership.
Item 8 - Financial Statements and Supplementary Data:
-----------------------------------------------------
See Index to Financial Statements on Page 9 of this report.
Item 9 - Changes in and Disagreements with Accountants on Accounting and
------------------------------------------------------------------------
Financial Disclosures.
----------------------
None.
4
PART III
Item 10. Directors and Executive Officers of the Registrant
-----------------------------------------------------------
The Partnership has no officers, employees or directors. The background of the
General Partners is as follows:
R. J. Schumacher - Age 72, Vice President and Co-Owner of Texland Petroleum,
----------------
Inc. since May, 1967, has been an independent oil operator involved in drilling
and producing operations and the financing of oil and gas prospects, principally
in West Texas, Oklahoma and Arkansas. He has served as an executive officer with
Texland since its incorporation. For more than ten years prior to becoming an
independent oil operator, Mr. Schumacher was the chief financial officer,
contract drilling manager and land supervisor for an independent oil and gas
drilling contractor and operator. Mr. Schumacher is a Certified Public
Accountant. He received a Bachelor of Science in Commerce degree from Texas
Christian University in 1950 and a Master in Professional Accounting degree from
the University of Texas in 1951.
J. N. Namy - Age 62 President and Chief Executive Officer of Texland Petroleum,
----------
Inc., was employed by Texland as a geologist in June 1978. From 1967 to 1970 he
was employed by Pan American Petroleum Corp. in the Fort Worth Division. From
1970 to 1978 he taught at Baylor University achieving the rank of Associate
Professor. During this time, he served as a consultant for several independent
petroleum companies working on exploration and development projects in the
Eastern Shelf and the Permian Basin of West Texas and New Mexico, as well as the
southern Rockies of New Mexico and Colorado. He received his Bachelor and Master
degrees from Western Reserve University in Cleveland, Ohio and his Ph. D. degree
from the University of Texas at Austin in 1969. Mr. Namy is a member of the
American Association of Petroleum Geologists, Geological Society of America and
the Society of Economic Paleontologists and Mineralogists.
J. H. Wilkes - Age 45, President and Chief Operating Officer of Texland
------------
Petroleum, Inc. , was employed by Texland as a reservoir engineer in August
1984. From 1978 to 1984, he was employed by Sun Exploration and Production
Company in Midland and Abilene, Texas. The first three years he served as a
production engineer and for the remaining three years he served as a reservoir
engineer. He received a Bachelor of Science degree in Petroleum Engineering from
Texas A&M University in 1978. He is a member of the Society of Petroleum
Engineers, A.I.M.E. and is a registered professional engineer in Texas.
Item 11. Executive Compensation
-------------------------------
See Note 5 of Notes to Financial Statements on page 18 of this report for
information with respect to payments to the Managing General Partner.
5
Item 12. Security Ownership of Certain Beneficial Owners and Management
-----------------------------------------------------------------------
Omitted. Not applicable to Registrant.
Texland Petroleum, Inc. and Texland Properties-1981 are General Partners of the
Partnership. Texland Petroleum, Inc. is the managing General Partner. Texland
Properties-1981 is a general partnership formed between W. E. Rector, R. J.
Schumacher and Texland Petroleum, Inc.
Item 13. Certain Relationships and Related Transactions
-------------------------------------------------------
See Notes 4 and 5 of Notes to Financial Statement on page 18 of this report for
information with respect to certain relationships and related transactions.
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
-------------------------------------------------------------------------
(a)1 and (a)2 Financial Statement and Financial Statement Schedules
See Index to Financial Statements on page 9 of this report.
(a)3 Item 601 (Reg. S-K) Exhibits:
None
(b) Reports on Form 8-K:
None
(c) Item 601 (Reg. S-K) Exhibits:
None
(d) Other Financial Statements and Financial Statement Schedules:
Not applicable.
6
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
TEXLAND DRILLING PROGRAM-1981
-----------------------------
Registrant
By /s/ M. E. Chapman
--------------------------------------
M.E.Chapman, Vice President - Finance
Texland Petroleum, Inc. Date October 15, 2001
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following person on behalf of the registrant and in
the capacities and on the dates indicated.
By /s/ R. J. Schumacher
-------------------------------------
R.J.Schumacher, Vice President
Texland Petroleum, Inc. Date October 15, 2001
By /s/ J. N. Namy
-------------------------------------
J.N.Namy, President & C.E.O.
Texland Petroleum, Inc. Date October 15, 2001
By /s/ J. H. Wilkes
-------------------------------------
J.H.Wilkes, President & C.O.O.
Texland Petroleum, Inc. Date October 15, 2001
7
________________________________________________________________________________
Texland Drilling Program-1981, Ltd.
Financial Statements
December 31, 2000 and 1999
________________________________________________________________________________
8
Texland Drilling Program-1981, Ltd.
Index to Financial Satements
________________________________________________________________________________
Page No.
Report of Independent Auditors 10
Financial Statements
Balance Sheets 12
Statements of Operations 13
Statements of Partners' Capital 14
Statements of Cash Flows 15
Notes to Financial Statements 16
All financial statement schedules have been omitted since the required
information is included in the financial statements or the notes thereto or is
not applicable or not required.
________________________________________________________________________________
9
REPORT OF INDEPENDENT AUDITORS
The Partners
Texland Drilling Program-1981, Ltd.
We have audited the balance sheets of Texland Drilling Program-1981, Ltd., as of
December 31, 2000 and 1999, and the related statements of operations, partners'
capital and cash flows for each of the three years in the period ended December
31, 2000. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United State of America. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements listed in the accompanying index to the
financial statements present fairly, in all material respects, the financial
position of Texland Drilling Program-1981, Ltd., at December 31, 2000 and 1999,
and the results of its operations and its cash flows for each of the three years
in the period ended December 31, 2000, in conformity with generally accepted
accounting principles.
Fort Worth, Texas
March 1, 2001
10
________________________________________________________________________________
Financial Statements
11
Texland Drilling Program-1981, Ltd. (A Limited Partnership)
Balance Sheets
December 31, 2000 and 1999
________________________________________________________________________________
2000 1999
------------ ------------
ASSETS
Current Assets
Cash $ 58,887 $ 67,071
Accounts receivable - trade (Note 6) 145,346 129,649
------------ ------------
204,233 196,720
------------ ------------
Property and Equipment, at Cost Using the
Successful Efforts Method (Notes 2, 3, 4 and 5)
Intangible development costs 7,107,019 7,122,249
Lease and well equipment 4,170,251 4,179,519
Producing leaseholds 161,495 166,379
------------ ------------
11,438,765 11,468,147
Accumulated depreciation, depletion and amortization (10,072,876) (9,985,437)
------------ ------------
1,365,889 1,482,710
------------ ------------
$ 1,570,122 $ 1,679,430
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Current Liabilities
Accounts payable:
Managing general partner (Note 5) $ 48,398 $ 38,017
------------ ------------
Partners' Capital (Notes 4 and 7)
Limited partners, 2,425 units outstanding 1,318,957 1,361,198
General partners 202,767 280,215
------------ ------------
1,521,724 1,641,413
------------ ------------
$ 1,570,122 $ 1,679,430
============ ============
________________________________________________________________________________
See accompanying notes to financial statements.
12
Texland Drilling Program-1981, Ltd. (A Limited Partnership)
Statements of Operations
For the Years Ended December 31, 2000, 1999 and 1998
________________________________________________________________________________
2000 1999 1998
----------- ----------- -----------
Revenue
Oil and gas sales (Note 6) $ 1,481,720 $ 994,675 $ 903,162
Interest income 2,839 781 1,141
Gain on sale of assets 47,751 26,366
Other 2,066
----------- ----------- -----------
1,534,376 995,456 930,669
----------- ----------- -----------
Expense (Note 5)
Fees to managing general partner 87,900 87,900 87,980
Production expense 436,551 393,804 517,358
Severance tax 75,118 49,014 41,571
Depreciation, depletion and amortization 130,877 158,620 1,330,640
Other 15,573 17,867 16,374
----------- ----------- -----------
746,019 707,205 1,993,923
----------- ----------- -----------
Net Income (Loss) $ 788,357 $ 288,251 $(1,063,254)
=========== =========== ===========
Allocation of Net Income (Loss) (Note 7)
Limited partners $ 380,922 $ 117,083 $ (649,141)
General partners 407,435 171,168 (414,113)
----------- ----------- -----------
$ 788,357 $ 288,251 $(1,063,254)
=========== =========== ===========
Net Income per $5,000 Limited
Partner Unit (2,425 Units Outstanding) $ 157 $ 48 $ (268)
=========== =========== ===========
________________________________________________________________________________
See accompanying notes to financial statements.
13
Texland Drilling Program-1981, Ltd. (A Limited Partnership)
Statements of Partners' Capital
For the Years Ended December 31, 2000, 1999 and 1998
________________________________________________________________________________
Limited General
Partners Partners Total
----------- ----------- -----------
Balance at December 31, 1997 $ 2,225,481 $ 852,149 $ 3,077,630
Partners' distributions (204,913) (159,100) (364,013)
Partners' contributions (Note 4) 22,977 22,977
Net income (loss) (649,141) (414,113) (1,063,254)
----------- ----------- -----------
Balance at December 31, 1998 1,371,427 301,913 1,673,340
Partners' distributions (127,312) (197,900) (325,212)
Partners' contributions (Note 4) 5,034 5,034
Net income 117,083 171,168 288,251
----------- ----------- -----------
Balance at December 31, 1999 1,361,198 280,215 1,641,413
Partners' distributions (423,163) (490,791) (913,954)
Partners' contributions (Note 4) 5,908 5,908
Net income 380,922 407,435 788,357
----------- ----------- -----------
Balance at December 31, 2000 $ 1,318,957 $ 202,767 $ 1,521,724
=========== =========== ===========
________________________________________________________________________________
See accompanying notes to financial statements.
14
Texland Drilling Program-1981, Ltd. (A Limited Partnership)
Statements of Cash Flows
For the Years Ended December 31, 2000, 1999 and 1998
________________________________________________________________________________
2000 1999 1998
----------- ----------- -----------
Cash Flows From Operating Activities
Net income (loss) $ 788,357 $ 288,251 $(1,063,254)
----------- ----------- -----------
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation, depletion and amortization 130,877 158,620 1,330,640
Gain on sale of assets (47,751) (26,366)
(Increase) decrease in accounts receivable (15,697) (56,496) 41,664
Increase (decrease) in accounts payable 10,381 (5,540) (3,424)
----------- ----------- -----------
77,810 96,584 1,342,514
----------- ----------- -----------
Net cash provided by operating activities 866,167 384,835 279,260
----------- ----------- -----------
Cash Flows From Investing Activities
Acquisition of property and equipment (21,992) (5,894) (19,414)
Proceeds from sale of assets 55,687 26,366
----------- ----------- -----------
Net cash used in investing activities 33,695 (5,894) 6,952
----------- ----------- -----------
Cash Flows From Financing Activities
Partners' contributions 5,908 5,034 22,977
Partners' distributions (913,954) (325,212) (364,013)
----------- ----------- -----------
Net cash used in financing activities (908,046) (320,178) (341,036)
----------- ----------- -----------
Net Change in Cash (8,184) 58,763 (54,824)
Cash - beginning of year 67,071 8,308 63,132
----------- ----------- -----------
Cash - End of Year $ 58,887 $ 67,071 $ 8,308
=========== =========== ===========
________________________________________________________________________________
See accompanying notes to financial statements.
15
Texland Drilling Program-1981, Ltd. (A Limited Partnership)
Notes to Financial Statements
________________________________________________________________________________
1. Summary of Significant Accounting Policies
Texland Drilling Program-1981, Ltd. (the "Partnership") was organized as a
limited partnership on July 20, 1981, for the purpose of engaging in oil and gas
exploration and production. Texland Properties-1981, a general partnership, and
Texland Petroleum, Inc. are the general partners. The managing general partner
is Texland Petroleum, Inc. Partnership operations are conducted predominately in
West Texas.
The Partnership shall continue in existence, unless terminated sooner through
the occurrence of a final terminating event as defined by the partnership
agreement, until December 31, 2001 as extended through approval by the limited
partners owning a majority of aggregate Partnership subscriptions.
The Partnership's accounting policies are summarized below:
Basis of Accounting
The Partnership maintains its financial records on the income tax basis. The
financial statements are presented in accordance with generally accepted
accounting principles. The primary differences in accounting methods are
identified in Note 7.
Use of Estimates
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
reported revenues and expenses during the reporting period. Actual results could
differ from those estimates.
Property and Equipment
Costs incurred for the acquisition of producing and nonproducing leaseholds are
capitalized. Costs of intangible development and lease and well equipment
incurred to drill and equip successful exploratory and development wells are
capitalized. Costs to drill and equip unsuccessful exploratory wells are charged
to operations while costs of unsuccessful development wells remain capitalized.
Costs associated with uncompleted wells are capitalized as wells-in-progress.
Nonproducing Leaseholds
Costs of nonproducing properties are charged to expense at such time as they are
deemed to be impaired, based upon periodic assessments of such costs.
Amortization and Depletion
Leasehold costs of producing properties are amortized on the unit-of-production
method based on estimated proved oil and gas reserves. Intangible development
costs of producing properties are amortized on the unit-of-production method
based on estimated proved developed oil and gas reserves.
________________________________________________________________________________
16
Texland Drilling Program-1981, Ltd. (A Limited Partnership)
Notes to Financial Statements
________________________________________________________________________________
1. Summary of Significant Accounting Policies (continued)
Depreciation
Depreciation of equipment is provided by the unit-of-production method based on
estimated proved developed oil and gas reserves.
Income Taxes
No provision for income taxes has been made, since such liability is that of the
Partners rather than that of the Partnership.
Statement of Cash Flows
For purposes of these statements, the Partnership considers cash on deposit and
highly liquid money market funds as cash and cash equivalents.
Allocation of Net Income (Loss)
Revenues and costs of the Partnership are allocated between the general and
limited partners in accordance with the Partnership agreement.
2. Costs Incurred in Oil and Gas Producing Activities
The following summarizes the Partnership's costs incurred in its oil and gas
activities, all of which were conducted within the United States, for the years
ended December 31:
Lease Acquisition Costs Development Costs
--------------------------------- -------------------------------
Expensed Capitalized Expensed Capitalized
-------------- --------------- -------------- ---------------
1998 $ 38 $ 181 $ 19,376
1999 1,084 119 4,810
2000 19 56 21,973
3. Acquisition of Nonproducing Properties
The Partnership acquired working interests in certain oil and gas properties
through assignments from other Texland Drilling Program partnerships. These
acquisitions involved no cost to the Partnership and are subject to retained
nonworking interests by the assignor. Upon payout of these properties, the
assignor has an option to convert the retained nonworking interest to a working
interest.
________________________________________________________________________________
17
Texland Drilling Program-1981, Ltd. (A Limited Partnership)
Notes to Financial Statements
________________________________________________________________________________
4. Contributions by General Partners
Under terms of the Partnership agreement, Texland Properties-1981 is charged for
certain costs related to drilling and production operations, which are required
to be capitalized for federal income tax purposes. These costs are treated as
capital contributions. In addition, Texland Properties-1981 and Texland
Petroleum, Inc. have invested in limited partnership units in the amount of
$95,000 and $30,000, respectively. These investments as a limited partner are
reported with other limited partners' capital in the accompanying financial
statements.
5. Payments to Managing General Partner
The Partnership was charged $166,127, $161,107, and $171,851 in 2000, 1999, and
1998 respectively, for technical and accounting services performed by employees
of the managing general partner. These charges are included in intangible
development costs, production expenses and fees to managing general partner.
Supervisory fees charged to the Partnership by the managing general partner for
drilling and operating the partnership wells were $134,936, $131,552, and
$152,423, in 2000, 1999, and 1998 respectively, and are included in intangible
development costs and production expenses.
These charges are allocated between the general and limited partners based upon
applicable revenue and expense sharing rates.
6. Major Purchasers
Purchasers, which accounted for 10% or more of the Partnership's sales, were as
follows:
2000 1999 1998
BHT Marketing, Inc. 34%
AMOCO Production Company 34% 31% 31%
Phillps Petroleum 51% 47%
Highland Energy Company 14%
Tristar Gas Marketing 15%
----- ----- -----
99% 78% 80%
===== ===== =====
Texland Petroleum, Inc. receives substantially all revenues directly from the
purchasers and subsequently disburses these revenues to interest owners.
Substantially all trade accounts receivable were due from Texland Petroleum,
Inc. at December 31, 2000 and 1999.
________________________________________________________________________________
18
Texland Drilling Program-1981, Ltd. (A Limited PArtnership)
Notes to Financial Statements
________________________________________________________________________________
7. Reconciliation of Book-Tax Reporting Differences
Although the Partnership financial statements are prepared in accordance with
generally accepted accounting principles, its books and records are maintained
on the basis of accounting used for federal income tax purposes.
Limited General
Partners Partners Total
---------- ---------- ---------
Net Income Differences:
Net income (loss) for financial reporting
purposes $ 380,922 $ 407,435 $ 788,357
---------- ---------- ---------
Expenses for federal income tax purposes
capitalized for financial reporting purposes (14,598) (14,598)
Additional gain on sale of assets for federal
income tax purposes 5,235 1,215 6,450
Excess of depreciation, depletion and
amortization expense for financial
reporting purposes over amounts for
federal income tax purposes 80,459 18,437 98,896
---------- ---------- ---------
Additional income for federal income
tax purposes 71,096 19,652 90,748
---------- ---------- ---------
Net income for federal income tax purposes $ 452,018 $ 427,087 $ 879,105
========== ========== =========
________________________________________________________________________________
19
Texland Drilling Program-1981, Ltd. (A Limited PArtnership)
Notes to Financial Statements
________________________________________________________________________________
7. Reconciliation of Book-Tax Reporting Differences (continued)
Limited General
Partners Partners Total
----------- ----------- -----------
Partners' Capital Differences:
Partners' capital at December 31, 2000,
for financial reporting purposes $ 1,318,957 $ 202,767 $ 1,521,724
Additional income (loss) for federal
income tax purposes:
2000 71,096 19,652 90,748
1999 96,076 20,149 116,225
1998 773,151 510,714 1,283,865
1997 112,381 132,092 244,473
1996 99,228 74,176 173,404
1995 157,172 120,204 277,376
1994 197,999 107,966 305,965
1993 277,730 214,742 492,472
1992 240,459 100,370 340,829
1991 318,408 152,615 471,023
1990 550,882 160,269 711,151
1989 552,963 120,851 673,814
1988 795,772 (36,000) 759,772
1987 517,630 (3,242) 514,388
1986 332,931 (253,798) 79,133
1985 921,282 (682,039) 239,243
1984 1,276,759 (479,063) 797,696
1983 1,145,881 76,871 1,222,752
1982 (503,533) (134,627) (638,160)
1981 (8,051,462) (125,697) (8,177,159)
Investment tax credit basis reduction not
recognized for financial reporting purposes (39,178) (39,178)
----------- ---------- -----------
Partners' capital December 31, 2000,
for federal income tax purposes $ 1,201,762 $ 259,794 $ 1,461,556
=========== ========== ===========
________________________________________________________________________________
20