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, 2001                              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,
                                                   2001             2000
                                               -------------     ------------

CURRENT ASSETS:
   Cash and cash equivalents                     $ 78,332         $ 86,891
   Accrued oil and gas sales                       24,957           50,242
                                                 --------         --------
      Total current assets                       $103,289         $137,133

NET OIL AND GAS PROPERTIES, utilizing
   the full cost method                            16,789           28,872

DEFERRED CHARGE                                       413              413
                                                 --------         --------
                                                 $120,491         $166,418
                                                 ========         ========

                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                              $  1,878         $  2,543
                                                 --------         --------
      Total current liabilities                  $  1,878         $  2,543

ACCRUED LIABILITY                                $ 38,087         $ 38,087

PARTNERS' CAPITAL:
   General Partner, 70 general
      partner units                              $    804         $  1,256
   Limited Partners, issued and
      outstanding, 7,000 Units                     79,722          124,532
                                                 --------         --------
      Total Partners' capital                    $ 80,526         $125,788
                                                 --------         --------
                                                 $120,491         $166,418
                                                 ========         ========







            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, 2001 AND 2000
                                   (Unaudited)

                                                  2001             2000
                                                --------          -------

REVENUES:
   Oil and gas sales                             $49,355          $69,925
   Interest                                          398            1,855
                                                 -------          -------
                                                 $49,753          $71,780

COSTS AND EXPENSES:
   Oil and gas production                        $ 9,150          $11,275
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                   3,948            1,562
   General and administrative
      (Note 2)                                     9,767            9,993
                                                 -------          -------
                                                 $22,865          $22,830
                                                 -------          -------

NET INCOME                                       $26,888          $48,950
                                                 =======          =======
GENERAL PARTNER (1%) - net income                $   269          $   489
                                                 =======          =======
LIMITED PARTNERS (99%) - net income              $26,619          $48,461
                                                 =======          =======
NET INCOME PER UNIT                              $  3.81          $  6.92
                                                 =======          =======
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, 2001 AND 2000
                                   (Unaudited)

                                                  2001              2000
                                                --------          --------

REVENUES:
   Oil and gas sales                            $205,151          $159,720
   Interest                                        3,471             4,694
                                                --------          --------
                                                $208,622          $164,414

COSTS AND EXPENSES:
   Oil and gas production                       $ 33,431          $ 28,487
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                   7,960             3,837
   General and administrative
      (Note 2)                                    35,743            33,644
                                                --------          --------
                                                $ 77,134          $ 65,968
                                                --------          --------

NET INCOME                                      $131,488          $ 98,446
                                                ========          ========
GENERAL PARTNER (1%) - net income               $  1,315          $    984
                                                ========          ========
LIMITED PARTNERS (99%) - net income             $130,173          $ 97,462
                                                ========          ========
NET INCOME PER UNIT                             $  18.60          $  13.92
                                                ========          ========
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, 2001 AND 2000
                                   (Unaudited)


                                                    2001            2000
                                                  --------        --------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                     $131,488        $ 98,446
   Adjustments to reconcile net income
      to net cash provided by operating
      activities:
      Depreciation, depletion, and
        amortization of oil and gas
        properties                                   7,960           3,837
      (Increase) decrease in accrued
        oil and gas sales                           25,285       (  13,268)
      Decrease in accounts payable               (     665)      (     448)
                                                  --------        --------
   Net cash provided by operating
      activities                                  $164,068        $ 88,567
                                                  --------        --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from the sale of oil and
      gas properties                              $  4,123        $     21
                                                  --------        --------
   Net cash provided by investing
      activities                                  $  4,123        $     21
                                                  --------        --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                            ($176,750)      ($141,400)
                                                  --------        --------
   Net cash used by financing
      activities                                 ($176,750)      ($141,400)
                                                  --------        --------

NET DECREASE IN CASH AND CASH
   EQUIVALENTS                                   ($  8,559)      ($ 52,812)

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                              86,891          88,532
                                                  --------        --------
CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                  $ 78,332        $ 35,720
                                                  ========        ========



            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, 2001
                                   (Unaudited)


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

      The balance sheet as of September 30, 2001,  statements of operations  for
      the  three  and  nine  months  ended  September  30,  2001 and  2000,  and
      statements of cash flows for the nine months ended  September 30, 2001 and
      2000  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, 2001,  results of
      operations  for the three and nine  months  ended  September  30, 2001 and
      2000,  and changes in cash flows for the nine months ended  September  30,
      2001 and 2000 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, 2000. The results of operations for the period
      ended September 30, 2001 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, 2001 and 2000,
      the  Program   incurred   such  expenses   totaling   $9,767  and  $9,993,
      respectively,  of  which  $6,441  was  paid  each  period  to Dyco and its
      affiliates.  During the nine months ended September 30, 2001 and 2000, the
      Program incurred such expenses totaling $35,743 and $33,644, respectively,
      of which $19,323 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.  Management  believes  that  cash  for  ordinary  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
      variables affecting the Program's revenues are the prices received for the
      sale of oil and gas and the volumes of oil and gas produced. The Program's
      production is mainly natural gas, so such pricing and volumes are the most
      significant factors.

      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. It is likewise
      difficult  to  predict  production  volumes.  However,  oil  and  gas  are
      depleting  assets,  so it can be  expected  that  production  levels  will
      decline  over  time.   Gas  prices  in  late  2000  and  early  2001  were
      significantly  higher  than the  Program's  historical  average.  This was
      attributable to the higher prices for crude oil, a substitute fuel in some
      markets,  and reduced production due to lower capital  investments in 1998
      and 1999.  In the last  several  months,  however,  spot gas  prices  have
      substantially   declined.   A  weakening   economy  and  recent  terrorist
      activities may result in additional  downward pricing pressure.  It is not
      possible to accurately predict future pricing direction.














                                       9
<PAGE>




      THREE MONTHS ENDED  SEPTEMBER  30, 2001 COMPARED TO THE THREE MONTHS ENDED
      SEPTEMBER 30, 2000.

                                              Three Months Ended September 30,
                                              --------------------------------
                                                   2001              2000
                                                  -------           -------
      Oil and gas sales                           $49,355           $69,925
      Oil and gas production expenses             $ 9,150           $11,275
      Barrels produced                                 28                40
      Mcf produced                                 15,992            16,613
      Average price/Bbl                           $ 24.00           $ 27.75
      Average price/Mcf                           $  3.04           $  4.14

      As shown in the table  above,  total oil and gas sales  decreased  $20,570
      (29.4%) for the three months ended  September  30, 2001 as compared to the
      three months ended  September  30, 2000. Of this  decrease,  approximately
      $18,000 was  related to a decrease  in the  average  price of gas sold and
      approximately  $3,000 was  related  to a decrease  in volumes of gas sold.
      Volumes  of  oil  and  gas  sold   decreased   12  barrels  and  621  Mcf,
      respectively, for the three months ended September 30, 2001 as compared to
      the three months  ended  September  30,  2000.  Average oil and gas prices
      decreased  to $24.00 per barrel and $3.04 per Mcf,  respectively,  for the
      three months ended September 30, 2001 from $27.75 per barrel and $4.14 per
      Mcf, respectively, for the three months ended September 30, 2000.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  decreased  $2,125  (18.8%) for the three  months ended
      September  30, 2001 as compared to the three  months ended  September  30,
      2000.  This decrease was  primarily due to 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 18.5% for the three  months
      ended  September 30, 2001 from 16.1% for the three months ended  September
      30, 2000. This  percentage  increase was primarily due to the decreases in
      the average prices of oil and gas sold.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      increased $2,386 (152.8%) for the three months ended September 30, 2001 as
      compared to the three months ended  September 30, 2000.  This increase was
      primarily  due to a  decrease  in the gas price used in the  valuation  of
      reserves at  September  30, 2001 as compared to September  30, 2000.  As a
      percentage  of oil and gas sales,  this expense  increased to 8.0% for the
      three months ended September 30, 2001 from 2.2% for the three months ended
      September  30, 2000.  This  percentage  increase was  primarily due to the
      dollar increase in depreciation, depletion, and amortization.



                                       10
<PAGE>




      General and  administrative  expenses  decreased $226 (2.3%) for the three
      months  ended  September  30, 2001 as compared to the three  months  ended
      September 30, 2000. As a percentage of oil and gas sales,  these  expenses
      increased  to 19.8% for the three  months  ended  September  30, 2001 from
      14.3% for the three  months ended  September  30,  2000.  This  percentage
      increase was primarily due to the decrease in oil and gas sales.

      NINE MONTHS  ENDED  SEPTEMBER  30, 2001  COMPARED TO THE NINE MONTHS ENDED
      SEPTEMBER 30, 2000.

                                               Nine Months Ended September 30,
                                               -------------------------------
                                                    2001             2000
                                                  --------         --------
      Oil and gas sales                           $205,151         $159,720
      Oil and gas production expenses             $ 33,431         $ 28,487
      Barrels produced                                  96               85
      Mcf produced                                  42,208           47,670
      Average price/Bbl                           $  26.75         $  29.20
      Average price/Mcf                           $   4.80         $   3.30

      As shown in the table  above,  total oil and gas sales  increased  $45,431
      (28.4%) for the nine months  ended  September  30, 2001 as compared to the
      nine months ended  September  30, 2000.  Of this  increase,  approximately
      $63,000 was related to an increase in the average price of gas sold.  This
      increase  was  partially  offset by a decrease  of  approximately  $18,000
      related  to a  decrease  in  volumes  of gas  sold.  Volumes  of oil  sold
      increased 11 barrels,  while volumes of gas sold  decreased  5,462 Mcf for
      the nine months  ended  September  30, 2001 as compared to the nine months
      ended  September  30,  2000.  The  decrease  in  volumes  of gas  sold was
      primarily due to the receipt of a reduced  percentage of sales on one well
      during the nine months ended  September 30, 2001 due to gas balancing.  As
      of the date of this Quarterly Report, management expects the gas balancing
      adjustment to continue for the foreseeable  future,  thereby continuing to
      contribute  to a decrease in volumes of gas  produced.  Average oil prices
      decreased  to $26.75 per barrel for the nine months  ended  September  30,
      2001 from $29.20 per barrel for the nine months ended  September 30, 2000.
      Average gas prices  increased  to $4.80 per Mcf for the nine months  ended
      September 30, 2001 from $3.30 per Mcf for the nine months ended  September
      30, 2000.










                                       11
<PAGE>




      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased  $4,944  (17.4%) for the nine  months  ended
      September  30, 2001 as compared to the nine  months  ended  September  30,
      2000.  This  increase was  primarily  due to (i) an increase in production
      taxes  associated  with  the  increase  in oil and  gas  sales,  (ii)  the
      settlement  of a royalty  dispute on one well during the nine months ended
      September 30, 2001, and (iii) a production tax refund  received during the
      nine months ended  September  30, 2000.  These  increases  were  partially
      offset by the sale of one well during late 2000.  As a  percentage  of oil
      and gas sales, these expenses decreased to 16.3% for the nine months ended
      September  30, 2001 from 17.8% for the nine  months  ended  September  30,
      2000.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      increased  $4,123 (107.5%) for the nine months ended September 30, 2001 as
      compared to the nine months ended  September  30, 2000.  This increase was
      primarily  due to (i) a decrease in the gas price used in the valuation of
      reserves at September  30, 2001 as compared to September 30, 2000 and (ii)
      the increase in the average  price of gas sold. As a percentage of oil and
      gas  sales,  this  expense  increased  to 3.9% for the nine  months  ended
      September 30, 2001 from 2.4% for the nine months ended September 30, 2000.
      This  percentage  increase  was  primarily  due to the dollar  increase in
      depreciation, depletion, and amortization.

      General and  administrative  expenses increased $2,099 (6.2%) for the nine
      months  ended  September  30, 2001 as  compared  to the nine months  ended
      September 30, 2000. As a percentage of oil and gas sales,  these  expenses
      decreased to 17.4% for the nine months ended September 30, 2001 from 21.1%
      for the nine months ended September 30, 2000. This percentage decrease was
      primarily due to the increase in oil and gas sales.



                                       12
<PAGE>



ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
            RISK.

            The Program does not hold any market risk sensitive instruments.




                                       13
<PAGE>



                          PART II. OTHER INFORMATION


ITEM 5.  OTHER INFORMATION

      On November 1, 2001 Craig D.  Loseke was named Chief  Financial  Officer
      of Dyco.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits

            None.

(b)   Reports on Form 8-K.

            None.





                                       14
<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 13, 2001            By:         /s/Dennis R. Neill
                                       -------------------------------
                                              (Signature)
                                              Dennis R. Neill
                                              President


Date:  November 13, 2001            By:         /s/Craig D. Loseke
                                       -------------------------------
                                              (Signature)
                                              Craig D. Loseke
                                              Chief Financial Officer



                                       15