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                     Commission File Number
   March 31, 1999                                 0-10442



                         DYCO OIL AND GAS PROGRAM 1981-1
                             (A LIMITED PARTNERSHIP)
             (Exact Name of Registrant as specified in its charter)



         Minnesota                          41-1411953
(State or other jurisdiction    (I.R.S. Employer Identification
   of incorporation or                        Number)
     organization)



Samson Plaza, Two West Second Street, Tulsa, Oklahoma  74103
------------------------------------------------------------
(Address of principal executive offices)          (Zip Code)



                              (918) 583-1791
       ----------------------------------------------------
        (Registrant's telephone number, including area code)


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
                             ------                   ------




                                      -1-
<PAGE>




                          PART I. FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

             DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                                 BALANCE SHEETS
                                   (Unaudited)

                                     ASSETS

                                                March 31,      December 31,
                                                  1999             1998
                                               ----------      ------------

CURRENT ASSETS:
   Cash and cash equivalents                     $19,830          $ 31,207
   Accrued oil and gas sales                      19,847            30,083
                                                 -------          --------
      Total current assets                       $39,677          $ 61,290

NET OIL AND GAS PROPERTIES, utilizing
   the full cost method                           54,200            53,958

DEFERRED CHARGE                                    1,927             1,927
                                                 -------          --------
                                                 $95,804          $117,175
                                                 =======          ========

                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                              $ 2,965          $  2,847
   Gas imbalance payable                          10,976            10,976
                                                 -------          --------
      Total current liabilities                  $13,941          $ 13,823

ACCRUED LIABILITY                                $78,950          $ 78,950

PARTNERS' CAPITAL:
   General Partner, 70 general
      partner units                              $    28          $    243
   Limited Partners, issued and
      outstanding, 7,000 Units                     2,885            24,159
                                                 -------          --------
      Total Partners' capital                    $ 2,913          $ 24,402
                                                 -------          --------
                                                 $95,804          $117,175
                                                 =======          ========

            The accompanying condensed notes are an integral part of
                           these financial statements.



                                      -2-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                            STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
                                   (Unaudited)

                                                  1999              1998
                                                --------          --------

REVENUES:
   Oil and gas sales                             $26,821           $38,014
   Interest                                          309             1,403
                                                 -------           -------
                                                 $27,130           $39,417

COSTS AND EXPENSES:
   Oil and gas production                        $20,397           $ 7,990
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                   2,634             4,916
   General and administrative
      (Note 2)                                    25,588            25,846
                                                 -------           -------
                                                 $48,619           $38,752
                                                 -------           -------

NET INCOME (LOSS)                               ($21,489)          $   665
                                                 =======           =======
GENERAL PARTNER (1%) - net
   income (loss)                                ($   215)          $     7
                                                 =======           =======
LIMITED PARTNERS (99%) - net
   income (loss)                                ($21,274)          $   658
                                                 =======           =======
NET INCOME (LOSS) PER UNIT                      ($  3.04)          $   .09
                                                 =======           =======
UNITS OUTSTANDING                                  7,070             7,070
                                                 =======           =======

            The accompanying condensed notes are an integral part of
                           these financial statements.



                                      -3-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                            STATEMENTS OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
                                   (Unaudited)


                                                  1999              1998
                                                ---------         --------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                           ($ 21,489)         $    665
   Adjustments to reconcile net income
      (loss) to net cash provided by
      operating activities:
      Depreciation, depletion, and
        amortization of oil and gas
        properties                                 2,634             4,916
      (Increase) decrease in accrued oil
        and gas sales                             10,236         (  27,388)
`     Increase in accounts payable -
        General Partner                                -         (   3,817)
      Increase in accounts payable                   118            11,354
                                                --------          --------
      Net cash used by operating
        activities                             ($  8,501)        ($ 14,270)
                                                --------          --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from the sale of oil and
      gas properties                            $      -          $  3,817
   Additions to oil and gas
      properties                               (   2,876)                -
                                                --------          --------
   Net cash provided (used) by
      investing activities                     ($  2,876)         $  3,817
                                                --------          --------

CASH FLOWS FROM FINANCING ACTIVITIES:

   Net cash provided by financing
      activities                                $      -          $      -
                                                --------          --------

NET DECREASE IN CASH AND CASH
   EQUIVALENTS                                 ($ 11,377)        ($ 10,453)

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                            31,207           118,975
                                                --------          --------
CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                $ 19,830          $108,522
                                                ========          ========

            The accompanying condensed notes are an integral part of
                           these financial statements.


                                      -4-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                   CONDENSED NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 1999
                                   (Unaudited)


1.    ACCOUNTING POLICIES
      -------------------

      The balance sheet as of March 31, 1999,  statements of operations  for the
      three months ended March 31, 1999 and 1998,  and  statements of cash flows
      for the three months  ended March 31, 1999 and 1998 have been  prepared by
      Dyco Petroleum Corporation  ("Dyco"),  the General Partner of the Dyco Oil
      and Gas Program 1981-1 Limited Partnership (the "Program"), without audit.
      In the opinion of management  all  adjustments  (which include only normal
      recurring  adjustments) necessary to present fairly the financial position
      at March 31, 1999,  results of operations for the three months ended March
      31, 1999 and 1998,  and changes in cash flows for the three  months  ended
      March 31, 1999 and 1998 have been made.

      Information  and  footnote  disclosures  normally  included  in  financial
      statements  prepared in  accordance  with  generally  accepted  accounting
      principles  have been  condensed or omitted.  It is  suggested  that these
      financial  statements be read in conjunction with the financial statements
      and notes thereto included in the Program's Annual Report on Form 10-K for
      the year ended December 31, 1998. The results of operations for the period
      ended March 31, 1999 are not  necessarily  indicative of the results to be
      expected for the full year.


      OIL AND GAS PROPERTIES
      ----------------------

      Oil and gas  operations  are  accounted  for using the full cost method of
      accounting.  All productive and  non-productive  costs associated with the
      acquisition,  exploration  and  development  of oil and gas  reserves  are
      capitalized.  The Program's  calculation of depreciation,  depletion,  and
      amortization  includes  estimated  future  expenditures  to be incurred in
      developing  proved  reserves and estimated  dismantlement  and abandonment
      costs, net of estimated  salvage values. In the event the unamortized cost
      of oil and gas properties  being  amortized  exceeds the full cost ceiling
      (as defined by the  Securities  and  Exchange  Commission),  the excess is
      charged to expense in the period  during which such excess  occurs.  Sales
      and abandonments of



                                      -5-
<PAGE>



      properties are accounted for as  adjustments of capitalized  costs with no
      gain or loss recognized, unless such adjustments would significantly alter
      the  relationship  between  capitalized  costs  and  proved  oil  and  gas
      reserves.

      The provision for depreciation, depletion, and amortization of oil and gas
      properties is calculated by dividing the oil and gas sales dollars  during
      the  period by the  estimated  future  gross  income  from the oil and gas
      properties and applying the resulting  rate to the net remaining  costs of
      oil and gas properties that have been  capitalized,  plus estimated future
      development costs.

2.    TRANSACTIONS WITH RELATED PARTIES
      ---------------------------------

      Under the terms of the Program's partnership  agreement,  Dyco is entitled
      to  receive a  reimbursement  for all  direct  expenses  and  general  and
      administrative, geological and engineering expenses it incurs on behalf of
      the  Program.  During the three  months  ended March 31, 1999 and 1998 the
      Program incurred such expenses totaling $25,588 and $25,846, respectively,
      of which $12,513 was paid each period to Dyco and its affiliates.

      Affiliates of the Program  operate  certain of the  Program's  properties.
      Their  policy is to bill the  Program for all  customary  charges and cost
      reimbursements associated with these activities.



                                      -6-
<PAGE>



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 Program.

      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.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

      Net  proceeds  from the  Program's  operations  less  necessary  operating
      capital  are  distributed  to  investors  on a  quarterly  basis.  The net
      proceeds from production are not reinvested in productive  assets,  except
      to the extent  that  producing  wells are  improved  or where  methods are
      employed to permit more efficient recovery of the Program's reserves which
      would result in a positive economic impact.



                                      -7-
<PAGE>



      The Program's  available capital from  subscriptions has been spent on oil
      and gas  drilling  activities.  There  should not be any further  material
      capital  resource  commitments  in the  future.  The  Program  has no debt
      commitments. Cash for operational purposes will be provided by current oil
      and gas production.

RESULTS OF OPERATIONS
---------------------

      GENERAL DISCUSSION

      The following  general  discussion  should be read in conjunction with the
      analysis  of results of  operations  provided  below.  The most  important
      variable  affecting the Program's  revenues is the prices received for the
      sale  of oil  and  gas.  Due to the  volatility  of oil  and  gas  prices,
      forecasting  future prices is subject to great uncertainty and inaccuracy.
      Substantially  all of the  Program's  gas  reserves  are being sold on the
      "spot market".  Prices on the spot market are subject to wide seasonal and
      regional pricing  fluctuations due to the highly competitive nature of the
      spot market. Such spot market sales are generally short-term in nature and
      are dependent upon the obtaining of  transportation  services  provided by
      pipelines.  In addition,  crude oil prices were  recently at or near their
      lowest  level in the past decade due  primarily  to the global  surplus of
      crude oil.  However,  oil prices have rebounded  slightly during the first
      quarter of 1999  primarily due to a decrease in the global oil surplus and
      production curtailments by several major oil producing nations. Management
      is unable to predict whether future oil and gas prices will (i) stabilize,
      (ii) increase, or (iii) decrease.

      THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THE THREE MONTHS ENDED MARCH
      31, 1998.

                                                 Three Months Ended March 31,
                                                 ----------------------------
                                                   1999              1998
                                                  -------           -------
      Oil and gas sales                          $26,821           $38,014
      Oil and gas production expenses            $20,397           $ 7,990
      Barrels produced                                26                32
      Mcf produced                                17,043            17,164
      Average price/Bbl                          $ 11.65           $ 14.13
      Average price/Mcf                          $  1.56           $  2.19

      As shown in the table  above,  total oil and gas sales  decreased  $11,193
      (29.4%) for the three months ended March 31, 1999 as compared to the three
      months  ended  March 31,  1998.  Substantially  all of this  decrease  was
      related to a decrease in the average price of gas sold. Volumes of oil



                                      -8-
<PAGE>



      and gas sold decreased 6 barrels and 121 Mcf, respectively,  for the three
      months  ended March 31, 1999 as compared to the three  months  ended March
      31,  1998.  Average oil and gas prices  decreased to $11.65 per barrel and
      $1.56 per Mcf,  respectively,  for the three  months  ended March 31, 1999
      from  $14.13  per barrel  and $2.19 per Mcf,  respectively,  for the three
      months ended March 31, 1998.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased  $12,407 (155.3%) for the three months ended
      March 31, 1999 as compared to the three months ended March 31, 1998.  This
      increase  resulted  primarily from workover  expenses incurred on one well
      during the three  months  ended  March 31,  1999 in order to  improve  the
      recovery of reserves. As a percentage of oil and gas sales, these expenses
      increased  to 76.0% for the three  months  ended March 31, 1999 from 21.0%
      for the three months ended March 31, 1998.  This  percentage  increase was
      primarily  due to the  dollar  increase  in  production  expenses  and the
      decrease in the average price of gas sold.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      decreased  $2,282  (46.4%)  for the three  months  ended March 31, 1999 as
      compared to the three months ended March 31, 1998. This decrease  resulted
      primarily  from an  upward  revision  in the  estimate  of  remaining  gas
      reserves at December 31, 1998,  which decrease was partially  offset by an
      increase in depreciation, depletion, and amortization due to a decrease in
      the gas price  used in the  valuation  of  reserves  at March 31,  1999 as
      compared to March 31,  1998.  As a percentage  of oil and gas sales,  this
      expense  decreased  to 9.8% for the three months ended March 31, 1999 from
      12.9% for the three months ended March 31, 1998. This percentage  decrease
      was primarily due to the upward revisions in the estimate of remaining gas
      reserves at December 31, 1998.

      General and  administrative  expenses  decreased $258 (1.0%) for the three
      months  ended March 31, 1999 as compared to the three  months  ended March
      31, 1998. As a percentage of oil and gas sales,  these expenses  increased
      to 95.4% for the three  months  ended  March 31,  1999 from  68.0% for the
      three months ended March 31, 1998. This percentage  increase was primarily
      due to the decrease in the average price of gas sold.

YEAR 2000 COMPUTER ISSUES
-------------------------

      IN GENERAL

      The Year 2000 Issue ("Y2K")  refers to the inability of computer and other
      information   technology   systems  to  properly  process  date  and  time
      information, stemming from



                                      -9-
<PAGE>



      the earlier  programming  practice of using two digits rather than four to
      represent the year in a date. For example,  computer programs and imbedded
      chips that are date  sensitive may recognize a date using (00) as the year
      1900 rather than the year 2000.  The  consequence  of Y2K is that computer
      and  imbedded  processing  systems  may  be  at  risk  of  malfunctioning,
      particularly during the transition from 1999 to 2000.

      The effects of Y2K are exacerbated by the  interdependence of computer and
      telecommunication  systems throughout the world. This interdependence also
      exists  among the  Program,  Samson,  and their  vendors,  customers,  and
      business  partners,  as well  as  with  regulators.  The  potential  risks
      associated with Y2K for an oil and gas production  company fall into three
      general  areas:  (i)  financial,  leasehold  and  administrative  computer
      systems,  (ii) imbedded  systems in field process control units, and (iii)
      third party  exposures.  As  discussed  below,  Dyco does not believe that
      these risks will be material to the Program's operations.

      The Program's business is producing oil and gas. The day-to-day production
      of the  Program's  oil and gas is not  dependent on computers or equipment
      with imbedded chips. As further  discussed below,  management  anticipates
      that the  Program's  daily  business  activities  will  not be  materially
      affected by Y2K.

      The  Program  relies on  Samson  to  provide  all of its  operational  and
      administrative  services on either a direct or indirect  basis.  Samson is
      addressing each of the three Y2K areas discussed above through a readiness
      process that seeks to:

      1.    increase the awareness of the issue among key employees;
      2.    identify areas of potential risk;
      3.    assess the relative impact of these risks and Samson's  ability to
            manage them; and
      4.    remediate these risks on a priority basis wherever possible.

      Samson  Investment  Company's Chief  Financial  Officer is responsible for
      communicating  to its Board of Directors  Y2K actions and for the ultimate
      implementation  of its Y2K plan.  He has  delegated  to Samson  Investment
      Company's Senior Vice  President-Technology  and  Administrative  Services
      principal responsibility for ensuring Y2K
      compliance within Samson.

      Samson  has  been  planning  for  the  impact  of Y2K  on its  information
      technology  systems since 1993. As of May 1, 1999,  Samson is in the final
      stages of implementation of a Y2K plan, as summarized below:



                                      -10-
<PAGE>



      FINANCIAL AND ADMINISTRATIVE SYSTEMS

      1. Awareness. Samson has alerted its officers, managers and supervisors of
      Y2K  issues  and asked them to have  their  employees  participate  in the
      identification  of potential Y2K risks which might  otherwise go unnoticed
      by higher level  employees  and  officers.  As a result,  awareness of the
      issue is considered high.

      2.  Risk   Identification.   Samson's  most   significant   financial  and
      administrative  systems  exposure is the Y2K status of the  accounting and
      land  administration  system used to collect and manage data for  internal
      management  decision making and for external  revenue and accounts payable
      purposes.  Other concerns include network  hardware and software,  desktop
      computing  hardware  and  software,  telecommunications,  and office space
      readiness.

      3. Risk  Assessment.  The failure to identify  and correct a material  Y2K
      problem could result in inaccurate or untimely  financial  information for
      management  decision-making  or cash flow and payment purposes,  including
      maintaining oil and gas leases.

      4.  Remediation.  Since 1993, Samson has been upgrading its accounting and
      land administration  software.  Substantially all of the Y2K upgrades have
      been completed,  with the remainder  scheduled to be completed  during the
      2nd quarter of 1999.  In  addition,  in 1997 and 1998  Samson  replaced or
      applied software  patches to substantially  all of its network and desktop
      software  applications  and believes them to be generally  Y2K  compliant.
      Additional patches or software upgrades will be applied no later than June
      30, 1999 to complete this process.  The costs of all such risk assessments
      and remediation are not expected to be material to the Program.

      5. Contingency  Planning.  Notwithstanding the foregoing,  should there be
      significant   unanticipated   disruptions   in  Samson's   financial   and
      administrative systems, all of the accounting processes that are currently
      automated will need to be performed manually.  Samson will consider in the
      second half of 1999 its options with respect to  contingency  arrangements
      for temporary staffing to accommodate such situations.



                                      -11-
<PAGE>



      IMBEDDED SYSTEMS

      1.  Awareness.  Samson's  Y2K  program  has  involved  all levels of field
      personnel from production  foremen and higher.  Employees at all levels of
      the organization  have been asked to participate in the  identification of
      potential  Y2K risks,  which might  otherwise go unnoticed by higher level
      employees and officers of Samson, and as a result,  awareness of the issue
      is considered high.

      2. Risk  Identification.  Samson has inventoried all possible exposures to
      imbedded chips and systems. Such exposures can be classified as either (i)
      oil and gas production and  processing  equipment or (ii) office  machines
      such as faxes, copiers, phones, etc.

      With respect to oil and gas production and processing  equipment,  neither
      Samson nor the Program  operate  offshore  wells,  significant  processing
      plants, or wells with older electronic  monitoring  systems.  As a result,
      Samson's  inventory  identified less than 10  applications  using imbedded
      chips.  All of these are in the process of being tested by the  respective
      vendors  and are  expected to be Y2K  compliant  or replaced no later than
      June 30, 1999.  Oil and gas  production  related to such equipment is very
      minor with respect to the entire Samson group, and, in fact, the Program's
      production may not use such equipment at all.

      Office  machines are currently  being tested by Samson and vendors.  It is
      expected that such  machines  will be made  compliant or replaced no later
      than June 30, 1999.

      3. Risk Assessment and Remediation.  The failure to identify and correct a
      material  Y2K  problem in an  imbedded  system  could  result in  outcomes
      ranging  from errors in data  reporting  to  curtailments  or shutdowns in
      production.  As noted above,  Samson has identified  less than 10 imbedded
      system   applications  that  may  have  a  Y2K  problem.   None  of  these
      applications  are believed to be material to Samson or the  Program.  Once
      identified,  assessed and prioritized,  Samson intends to test and upgrade
      imbedded  components and systems in field process  control units deemed to
      pose the  greatest  risk of  significant  non-compliance  and  capable  of
      testing. Samson believes that sufficient manual processes are available to
      minimize  any such field  level  risk and that  there will be no  material
      impact on the Program with respect to these applications.



                                      -12-
<PAGE>



      4.    Contingency  Planning.   Should  material  production  disruptions
      occur as a result  of Y2K  failures  in field  operations,  Samson  will
      utilize  its  existing  field  personnel  in an  attempt  to  avoid  any
      material  impact on operating cash flow.  Samson is not able to quantify
      any  potential  exposure in the event of systems  failure or  inadequate
      manual alternatives.

      THIRD PARTY EXPOSURES

      1. Awareness.  Samson has advised  management to consider Y2K implications
      with its outside vendors, customers, and business partners. Management has
      been asked to participate in the  identification  of potential third party
      Y2K risks and, as a result, awareness of the issue is considered high.

      2. Risk Identification. Samson's most significant third party Y2K exposure
      is its  dependence  on third  parties for the receipt of revenues from oil
      and gas sales.  However,  virtually all of these purchasers are very large
      and sophisticated  companies.  Other Y2K concerns include the availability
      of  electric  power  to  Samson's  field  operations,   the  integrity  of
      telecommunication  systems,  and the  readiness  of  commercial  banks  to
      execute electronic fund transfers.

      3. Risk  Assessment.  Because of the high  awareness of the Y2K problem in
      the U.S.,  Samson  has not  undertaken  and does not plan to  undertake  a
      formal company wide plan to make inquiries of third parties on the subject
      of Y2K readiness. If it did so, Samson has no ability to require responses
      to such inquiries or to independently  verify their accuracy.  Samson has,
      however,  received  oral  assurances  from  its  significant  oil  and gas
      purchasers  of Y2K  compliance.  If  significant  disruptions  from  major
      purchasers were to occur,  however,  there could be a material and adverse
      impact on the Program's  results of operations,  liquidity,  and financial
      conditions.

      It is  important  to note that  third  party oil and gas  purchasers  have
      significant  incentives to avoid  disruptions  arising from a Y2K failure.
      For example,  most of these parties are under  contractual  obligations to
      purchase oil and gas or disperse revenues to Samson.  The failure to do so
      will result in  contractual  and statutory  penalties.  Therefore,  Samson
      believes  that it is  unlikely  that there will be  material  third  party
      non-compliance with purchase and remittance obligations as a result of Y2K
      issues.

      4.   Remediation.   Where  Samson   perceives   significant  risk  of  Y2K
      non-compliance  that may have a  material  impact  on it,  and  where  the
      relationship  between Samson and a vendor,  customer,  or business partner
      permits,  joint testing may be undertaken  during 1999 to further identify
      these risks.



                                      -13-
<PAGE>



      5. Contingency  Planning.  In the unlikely event that material  production
      disruptions  occur as a result  of Y2K  failures  of  third  parties,  the
      Program's operating cash flow could be impacted.  This contingency will be
      factored into  deliberations on the level of quarterly cash  distributions
      paid out during any such period of cash flow disruption.




                                      -14-
<PAGE>



ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
            RISK.

            The Program does not hold any market risk sensitive instruments.




                                      -15-
<PAGE>



                           PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a)   Exhibits

           27.1         Financial  Data Schedule  containing  summary  financial
                        information  extracted from the Dyco Oil and Gas Program
                        1981-1 Limited Partnership's  financial statements as of
                        March 31, 1999 and for the three  months ended March 31,
                        1999, filed herewith.

                        All other exhibits are omitted as inapplicable.

     (b)   Reports on Form 8-K.

           None.



                                      -16-
<PAGE>



                                   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.


                              DYCO OIL AND GAS PROGRAM 1981-1 LIMITED
                              PARTNERSHIP

                                    (Registrant)

                                    BY:   DYCO PETROLEUM CORPORATION

                                          General Partner


Date:  May 5, 1999           By:         /s/Dennis R. Neill
                                       -------------------------------
                                              (Signature)
                                              Dennis R. Neill
                                              President


Date:  May 5, 1999           By:         /s/Patrick M. Hall
                                       -------------------------------
                                              (Signature)
                                              Patrick M. Hall
                                              Chief Financial Officer



                                      -17-
<PAGE>



                                INDEX TO EXHIBITS


NUMBER      DESCRIPTION
------      -----------

27.1        Financial Data Schedule  containing  summary  financial  information
            extracted   from  the  Dyco  Oil  and  Gas  Program  1981-1  Limited
            Partnership's  financial statements as of March 31, 1999 and for the
            three months ended March 31, 1999, filed herewith.

            All other exhibits are omitted as inapplicable.