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
  September 30, 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

                                             September 30,     December 31,
                                                 1999              1998
                                             ------------      ------------

CURRENT ASSETS:
   Cash and cash equivalents                     $ 74,525         $ 31,207
   Accrued oil and gas sales                       32,550           30,083
                                                 --------         --------
      Total current assets                       $107,075         $ 61,290

NET OIL AND GAS PROPERTIES, utilizing
   the full cost method                            37,737           53,958

DEFERRED CHARGE                                     1,927            1,927
                                                 --------         --------
                                                 $146,739         $117,175
                                                 ========         ========

                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                              $  2,850         $  2,847
   Gas imbalance payable                           10,976           10,976
                                                 --------         --------
      Total current liabilities                  $ 13,826         $ 13,823

ACCRUED LIABILITY                                $ 78,950         $ 78,950

PARTNERS' CAPITAL:
   General Partner, 70 general
      partner units                              $    539         $    243
   Limited Partners, issued and
      outstanding, 7,000 Units                     53,424           24,159
                                                 --------         --------
      Total Partners' capital                    $ 53,963         $ 24,402
                                                 --------         --------
                                                 $146,739         $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 SEPTEMBER 30, 1999 AND 1998
                                   (Unaudited)

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

REVENUES:
   Oil and gas sales                             $41,238           $53,237
   Interest                                          724             1,568
                                                 -------           -------
                                                 $41,962           $54,805

COSTS AND EXPENSES:
   Oil and gas production                        $11,905           $ 7,120
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                     761            11,009
   General and administrative
      (Note 2)                                    14,677            14,793
                                                 -------           -------
                                                 $27,343           $32,922
                                                 -------           -------

NET INCOME                                       $14,619           $21,883
                                                 =======           =======
GENERAL PARTNER (1%) - net
   income                                        $   147           $   219
                                                 =======           =======
LIMITED PARTNERS (99%) - net
   income                                        $14,472           $21,664
                                                 =======           =======
NET INCOME PER UNIT                              $  2.07           $  3.09
                                                 =======           =======
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 OPERATIONS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                                   (Unaudited)

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

REVENUES:
   Oil and gas sales                             $130,473          $159,317
   Interest                                         1,328             4,197
                                                 --------          --------
                                                 $131,801          $163,514

COSTS AND EXPENSES:
   Oil and gas production                        $ 42,586          $ 28,471
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                    5,952            26,135
   General and administrative
      (Note 2)                                     53,702            54,513
                                                 --------          --------
                                                 $102,240          $109,119
                                                 --------          --------

NET INCOME                                       $ 29,561          $ 54,395
                                                 ========          ========
GENERAL PARTNER (1%) - net
   income                                        $    296          $    544
                                                 ========          ========
LIMITED PARTNERS (99%) - net
   income                                        $ 29,265          $ 53,851
                                                 ========          ========
NET INCOME PER UNIT                              $   4.18          $   7.69
                                                 ========          ========
UNITS OUTSTANDING                                   7,070             7,070
                                                 ========          ========



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


                                      -4-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                            STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
                                   (Unaudited)


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

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                   $29,561           $ 54,395
   Adjustments to reconcile net income
      to net cash provided by operating
      activities:
      Depreciation, depletion, and
        amortization of oil and gas
        properties                                5,952             26,135
      (Increase) decrease in accrued oil
        and gas sales                          (  2,467)             3,163
      Increase (decrease) in accounts
        payable                                       3          (     386)
      Decrease in gas imbalance payable               -          (  44,939)
                                                -------           --------
      Net cash provided by operating
        activities                              $33,049           $ 38,368
                                                -------           --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from the sale of oil and
      gas properties                            $10,269           $  3,839
   Additions to oil and gas
      properties                                      -          (     385)
                                                -------           --------
   Net cash provided by investing
      activities                                $10,269           $  3,454
                                                -------           --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                           $     -          ($141,400)
                                                -------           --------
   Net cash used by financing
      activities                                $     -          ($141,400)
                                                -------           --------

NET INCREASE (DECREASE) IN CASH AND
   CASH EQUIVALENTS                             $43,318          ($ 99,578)

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                           31,207            118,975
                                                -------           --------
CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                $74,525           $ 19,397
                                                =======           ========


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


                                      -5-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                   CONDENSED NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999
                                   (Unaudited)


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

      The balance sheet as of September 30, 1999,  statements of operations  for
      the  three  and  nine  months  ended  September  30,  1999 and  1998,  and
      statements of cash flows for the nine months ended  September 30, 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 September 30, 1999,  results of
      operations  for the three and nine  months  ended  September  30, 1999 and
      1998,  and changes in cash flows for the nine months ended  September  30,
      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 September 30, 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




                                      -6-
<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 September 30, 1999 and 1998 the
      Program incurred such expenses totaling $14,677 and $14,793, respectively,
      of which $12,513 was paid each period to Dyco and its  affiliates.  During
      the nine months  ended  September  30, 1999 and 1998 the Program  incurred
      such expenses totaling $53,702 and $54,513, respectively, of which $37,539
      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.




                                      -7-
<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.



                                      -8-
<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.

      The Program's  Statement of Cash Flows for the nine months ended September
      30, 1999 includes  proceeds from the sale of oil and gas properties during
      the second quarter of 1999. These proceeds will be included in future cash
      distributions.


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.  Management  is unable to  predict  whether  future oil and gas
      prices will (i) stabilize, (ii) increase, or (iii) decrease.

      THREE MONTHS ENDED  SEPTEMBER  30, 1999 COMPARED TO THE THREE MONTHS ENDED
      SEPTEMBER 30, 1998.

                                             Three Months Ended September 30,
                                             --------------------------------
                                                   1999              1998
                                                  -------           -------
      Oil and gas sales                           $41,238           $53,237
      Oil and gas production expenses             $11,905           $ 7,120
      Barrels produced                                  -                 4
      Mcf produced                                 16,948            27,866
      Average price/Bbl                           $     -           $ 13.50
      Average price/Mcf                           $  2.43           $  1.91

      As shown in the table  above,  total oil and gas sales  decreased  $11,999
      (22.5%) for the three months ended  September  30, 1999 as compared to the
      three months ended  September  30, 1998. Of this  decrease,  approximately
      $21,000



                                      -9-
<PAGE>



      was  related to a  decrease  in volumes  of gas sold.  This  decrease  was
      partially  offset by an increase  of  approximately  $9,000  related to an
      increase  in the  average  price of gas sold.  Volumes of oil and gas sold
      decreased  4 barrels and 10,918 Mcf,  respectively,  for the three  months
      ended  September 30, 1999 as compared to the three months ended  September
      30, 1998.  The decrease in volumes of gas sold was  primarily due to (i) a
      positive prior period volume  adjustment made by the purchaser on one well
      during the three months ended  September 30, 1998 and (ii) normal declines
      in  production.  The average oil price was $13.50 per barrel for the three
      months ended September 30, 1998. Average gas prices increased to $2.43 per
      Mcf for the three months ended  September  30, 1999 from $1.91 per Mcf for
      the three months ended September 30, 1998.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased  $4,785  (67.2%) for the three  months ended
      September  30, 1999 as compared to the three  months ended  September  30,
      1998.  This  increase  was  primarily  due to  credits  received  from the
      operator on one well during the three months ended  September 30, 1998 for
      prior period lease operating expenses.  This increase was partially offset
      by a decrease in production  taxes associated with the decrease in oil and
      gas sales. As a percentage of oil and gas sales,  these expenses increased
      to 28.9% for the three months ended  September 30, 1999 from 13.4% for the
      three  months  ended  September  30, 1998.  This  percentage  increase was
      primarily due to the dollar increase in oil and gas production expenses.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      decreased $10,248 (93.1%) for the three months ended September 30, 1999 as
      compared to the three months ended  September 30, 1998.  This decrease was
      primarily due to (i) an increase in the gas price used in the valuation of
      reserves at September 30, 1999 as compared to September 30, 1998, (ii) the
      decrease  in  volumes  of gas sold,  and (iii) an upward  revision  in the
      estimate of remaining  gas reserves at December 31, 1998.  As a percentage
      of oil and gas sales,  this expense decreased to 1.8% for the three months
      ended  September 30, 1999 from 20.7% for the three months ended  September
      30,  1998.  This  percentage  decrease  was  primarily  due to the  dollar
      decrease in depreciation, depletion, and amortization.

      General and administrative  expenses remained  relatively constant for the
      three  months  ended  September  30, 1999 as compared to the three  months
      ended  September  30, 1998.  As a percentage  of oil and gas sales,  these
      expenses  increased to 35.6% for the three months ended September 30, 1999
      from 27.8% for the three months ended  September 30, 1998. This percentage
      increase was primarily due to the decrease in oil and gas sales.



                                      -10-
<PAGE>




      NINE MONTHS  ENDED  SEPTEMBER  30, 1999  COMPARED TO THE NINE MONTHS ENDED
      SEPTEMBER 30, 1998.

                                              Nine Months Ended September 30,
                                              -------------------------------
                                                    1999             1998
                                                  --------         --------
      Oil and gas sales                           $130,473         $159,317
      Oil and gas production expenses             $ 42,586         $ 28,471
      Barrels produced                                  57              134
      Mcf produced                                  62,668           79,633
      Average price/Bbl                           $  14.65         $  14.56
      Average price/Mcf                           $   2.07         $   1.98

      As shown in the table  above,  total oil and gas sales  decreased  $28,844
      (18.1%) for the nine months  ended  September  30, 1999 as compared to the
      nine months ended  September  30, 1998.  Of this  decrease,  approximately
      $34,000 was related to a decrease in volumes of gas sold,  which  decrease
      was partially offset by an increase of approximately  $6,000 related to an
      increase  in the  average  price of gas sold.  Volumes of oil and gas sold
      decreased  77 barrels  and 16,965 Mcf,  respectively,  for the nine months
      ended  September  30, 1999 as compared to the nine months ended  September
      30, 1998.  The decrease in volumes of gas sold was  primarily due to (i) a
      positive prior period volume adjustment made by the purchaser on two wells
      during the nine months ended  September 30, 1998 and (ii) normal  declines
      in production.  Average oil and gas prices  increased to $14.65 per barrel
      and $2.07 per Mcf,  respectively,  for the nine months ended September 30,
      1999 from $14.56 per barrel and $1.98 per Mcf, respectively,  for the nine
      months ended September 30, 1998.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased  $14,115  (49.6%) for the nine months  ended
      September  30, 1999 as compared to the nine  months  ended  September  30,
      1998. This increase was primarily due to (i) workover expenses incurred on
      one well  during the nine  months  ended  September  30,  1999 in order to
      improve the  recovery  of  reserves  and (ii)  credits  received  from the
      operator on one well during the nine months ended  September  30, 1998 for
      prior period lease operating expenses.  This increase was partially offset
      by a decrease in production  taxes as a result of a refund received during
      the nine months ended  September  30, 1999. As a percentage of oil and gas
      sales,  these  expenses  increased  to  32.6%  for the nine  months  ended
      September  30, 1999 from 17.9% for the nine  months  ended  September  30,
      1998. This percentage increase was primarily due to the dollar increase in
      oil and gas production expenses.





                                      -11-
<PAGE>



      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      decreased  $20,183 (77.2%) for the nine months ended September 30, 1999 as
      compared to the nine months ended  September  30, 1998.  This decrease was
      primarily  due to (i) an upward  revision in the estimate of remaining gas
      reserves at December 31,  1998,  (ii) the decrease in volumes of gas sold,
      and (iii) the increase in the gas price used in the  valuation of reserves
      at September  30, 1999 as compared to September  30, 1998. As a percentage
      of oil and gas sales,  this expense  decreased to 4.6% for the nine months
      ended  September  30, 1999 from 16.4% for the nine months ended  September
      30,  1998.  This  percentage  decrease  was  primarily  due to the  dollar
      decrease in depreciation, depletion, and amortization.

      General and  administrative  expenses  decreased  $811 (1.5%) for the nine
      months  ended  September  30, 1999 as  compared  to the nine months  ended
      September 30, 1998. As a percentage of oil and gas sales,  these  expenses
      increased to 41.2% for the nine months ended September 30, 1999 from 34.2%
      for the nine months ended September 30, 1998. This percentage increase was
      primarily due to the decrease in oil and gas sales.


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 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  Investment  Company and its  affiliates
      ("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.



                                      -12-
<PAGE>



      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 has
      addressed each of the three Y2K areas  discussed above through a readiness
      process that:

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

      One  of  Samson   Investment   Company's   Executive  Vice  Presidents  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 November 1, 1999,  Samson is in the
      final stages of implementation of a Y2K plan, as summarized below:


      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



                                      -13-
<PAGE>



      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. All of the Y2K upgrades have been completed.
      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 currently Y2K  compliant.  The costs of all such risk
      assessments and remediation were not 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 has communicated with
      its management  team the importance of having  adequate staff available to
      manually perform necessary functions to minimize disruptions.


      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 have been tested by the  respective  vendors and have
      been found to be Y2K compliant or have been upgraded or replaced.

      Office machines have been tested by Samson and vendors and are believed to
      be compliant.

      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



                                      -14-
<PAGE>



      reporting to  curtailments  or shutdowns  in  production.  As noted above,
      Samson has identified  less than 10 imbedded  system  applications  all of
      which have been made compliant or replaced. None of these applications are
      believed to be material to Samson or the  Program.  Samson  believes  that
      sufficient manual processes are available to minimize any field level risk
      and that there will be no material  impact on the Program  with respect to
      these applications.

      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



                                      -15-
<PAGE>



      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  perceived  a  significant  risk  of  Y2K
      non-compliance by banks and other significant  vendors that would have had
      a material  impact on Samson's  business,  Samson  undertook joint testing
      during 1999, and any identified problems have been resolved.

      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.



                                      -16-
<PAGE>



ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
            RISK.

            The Program does not hold any market risk sensitive instruments.




                                      -17-
<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 September 30, 1999 and for the nine months ended September
     30, 1999, filed herewith.

     All other exhibits are omitted as inapplicable.

(b)  Reports on Form 8-K.

            None.





                                      -18-
<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:  November 3, 1999            By:         /s/Dennis R. Neill
                                       -------------------------------
                                              (Signature)
                                              Dennis R. Neill
                                              President


Date:  November 3, 1999            By:         /s/Patrick M. Hall
                                       -------------------------------
                                              (Signature)
                                              Patrick M. Hall
                                              Chief Financial Officer



                                      -19-
<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 September 30, 1999 and for
            the nine months ended September 30, 1999, filed herewith.

            All other exhibits are omitted as inapplicable.