<PAGE>

                  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, 1996                      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      
                             ----      ----
<PAGE>
<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,
                                          1996          1995
                                      -------------  ------------

CURRENT ASSETS:
  Cash and cash equivalents               $219,603      $ 86,202
  Accrued oil and gas sales, including
   $33,346 due from related parties
   in 1995 (Note 2)                         37,489        37,810
                                          --------      --------
     Total current assets                 $257,092      $124,012

NET OIL AND GAS PROPERTIES, utilizing
  the full cost method                     108,559       179,288

DEFERRED CHARGE                             31,560        31,560
                                          --------      --------
                                          $397,211      $334,860
                                          ========      ========

                   LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Accounts payable                        $ 25,468      $ 25,822
  Gas imbalance payable                      1,383         1,383
                                          --------      --------
     Total current liabilities            $ 26,851      $ 27,205

ACCRUED LIABILITY                           78,165        78,165

CONTINGENCY (Note 3)

PARTNERS' CAPITAL:
  General Partner, issued and
   outstanding, 70 units                     2,921         2,294
  Limited Partners, issued and
   outstanding, 7,000 units                289,274       227,196
                                          --------      --------
     Total Partners' capital              $292,195      $229,490
                                          --------      --------
                                          $397,211      $334,860
                                          ========      ========

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

                                  -2-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                       STATEMENTS OF OPERATIONS
        FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                              (Unaudited)


                                          1996          1995
                                        --------      --------

REVENUES:
  Oil and gas sales, including
   $50,011 of sales to related
   parties in 1995 (Note 2)              $54,005       $54,740
  Interest                                 2,094         1,015
                                         -------       -------
                                         $56,099       $55,755

COST AND EXPENSES:
  Oil and gas production                 $24,805       $21,714
  Depreciation, depletion, and
   amortization of oil and gas
   properties                              8,392        15,568
  General and administrative (Note 2)     15,236        14,626
                                         -------       -------
                                         $48,433       $51,908 
                                         -------       -------

NET INCOME                               $ 7,666       $ 3,847 
                                         =======       =======
GENERAL PARTNER (1%) - net income        $    77       $    38 
                                         =======       =======
LIMITED PARTNERS (99%) - net income      $ 7,589       $ 3,809 
                                         =======       =======
NET INCOME PER UNIT                      $  1.08       $   .54 
                                         =======       =======
UNITS OUTSTANDING                          7,070         7,070
                                         =======       =======

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

                                  -3-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                       STATEMENTS OF OPERATIONS
         FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                              (Unaudited)


                                          1996          1995
                                        --------      --------

REVENUES:
  Oil and gas sales, including
   $140,672 of sales to related
   parties in 1995 (Note 2)             $205,576      $167,504
  Interest                                 4,532         3,598
                                        --------      --------
                                        $210,108      $171,102

COST AND EXPENSES:
  Oil and gas production                $ 61,736      $ 73,090
  Depreciation, depletion, and
   amortization of oil and gas
   properties                             29,522        36,424
  General and administrative (Note 2)     56,145        56,582 
                                        --------      --------
                                        $147,403      $166,096
                                        --------      --------

NET INCOME                              $ 62,705      $  5,006 
                                        ========      ========
GENERAL PARTNER (1%) - net income       $    627      $     50 
                                        ========      ========
LIMITED PARTNERS (99%) - net income     $ 62,078      $  4,956 
                                        ========      ========
NET INCOME PER UNIT                     $   8.87      $    .71
                                        ========      ========
UNITS OUTSTANDING                          7,070         7,070
                                        ========      ========

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

                                  -4-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                       STATEMENTS OF CASH FLOWS
         FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
                              (Unaudited)

                                           1996         1995
                                         --------     ---------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                             $ 62,705     $  5,006 
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:
   Depreciation, depletion, and 
     amortization of oil and gas
     properties                            29,522       36,424
   Decrease in accrued oil and
     gas sales                                321        8,698
   Increase (decrease) in accounts
     payable                            (     354)         476 
                                         --------     -------- 
   Net cash provided by operating
     activities                          $ 92,194     $ 50,604
                                         --------     --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to oil and gas properties   ($ 22,123)   ($ 38,482)
  Retirements of oil and gas 
   properties                              63,330          -
                                         --------     --------
   Net cash provided (used) by  
     investing activities                $ 41,207    ($ 38,482)
                                         --------     --------

CASH FLOWS FROM FINANCING ACTIVITIES:

   Net cash used by financing
     activities                          $    -       $    -
                                         --------     --------

NET INCREASE IN CASH AND CASH
  EQUIVALENTS                            $133,401     $ 12,122

CASH AND CASH EQUIVALENTS AT 
  BEGINNING OF PERIOD                      86,202       91,259 
                                         --------     --------
CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                          $219,603     $103,381
                                         ========     ========

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

                                  -5-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1981-1 LIMITED PARTNERSHIP
                CONDENSED NOTES TO FINANCIAL STATEMENTS
                          SEPTEMBER 30, 1996
                              (Unaudited)


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

     The  balance  sheet  as  of  September 30,  1996,  statements  of
     operations for the three and nine months ended September 30, 1996
     and 1995, and statements of cash flows for the nine  months ended
     September  30, 1996 and 1995 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,  1996, results of
     operations for the three and nine months ended September 30, 1996
     and 1995  and changes  in cash  flows for  the nine months  ended
     September 30, 1996 and 1995 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, 1995.   The  results  of operations  for the
     period ended September 30, 1996 are not necessarily indicative of
     the results to be expected for the full year.  

     The limited partners' net income  or loss per unit is based  upon
     each $5,000 initial capital contribution.

     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.    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  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  year  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.

                                  -6-
<PAGE>
<PAGE>
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,  1996 and 1995 such  expenses totaled $15,236
     and $14,626, respectively, of which $12,513 and $12,513 were paid
     to  Dyco.  During  the nine months  ended September  30, 1996 and
     1995 such expenses totaled  $56,145 and $56,582, respectively, of
     which $37,539 and $37,539 were paid to Dyco.  

     Affiliates of the  Program are  the operators of  certain of  the
     Program's  properties and their policy is to bill the Program for
     all customary  charges and  cost  reimbursements associated  with
     their  activities,   together   with  any   compressor   rentals,
     consulting, or other services provided.

     The  Program sold  gas at  market prices  to Premier  Gas Company
     ("Premier")  and Premier then resold such gas to third parties at
     market prices.   Premier was  an affiliate of  the Program  until
     December  6, 1995.  During  the three months  ended September 30,
     1995 these sales totaled  $50,011.  During the nine  months ended
     September 30, 1995 these sales totaled $140,672.  At December 31,
     1995, accrued gas sales included $33,346 due from Premier.

3.   CONTINGENCY
     -----------

     On  November 12, 1992,  two individuals  filed a  lawsuit against
     Dyco  and others in which the plaintiffs alleged damages to their
     land  as a result of  remediation operations conducted  on one of
     the  Program's  wells located  on  an  adjoining property.    The
     lawsuit  alleged claims  based on  negligence, private  nuisance,
     public nuisance, trespass, unjust enrichment, constructive fraud,
     and  permanent injunctive relief, all in amounts to be determined
     at trial.   A trial was  conducted in the matter  on February 22,
     1994  in  which  the  jury entered  a  verdict  in  favor of  the
     plaintiffs  in   the  amount   of  approximately   $5.5  million,
     consisting of  approximately $2.75 million in  actual damages and
     approximately $2.75  million in punitive damages.   Dyco appealed
     the  district court's verdict and  on March 5,  1996 the Oklahoma
     Court  of  Appeals  reversed  the district  court's  verdict  and
     ordered  a new  trial.    Both  Dyco  and  the  plaintiffs  filed
     petitions  for  certiorari with  the  Supreme  Court of  Oklahoma
     seeking a further review  of the Court of Appeals'  opinion, both
     of  which petitions for certiorari  were denied on  July 3, 1996.
     The case has been remanded to the district court for a new trial.
     Included in these  financial statements as  of December 31,  1995
     and September 30, 1996  is an accrual by  the General Partner  of
     $20,000 representing  the Program's  share of estimated  ultimate
     damages resulting from this contingency.

                                  -7-
<PAGE>
<PAGE>
ITEM 2.   MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
          AND RESULTS OF OPERATIONS

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.   Over  the last  several  years, the
     domestic  energy industry  and  the Program  have contended  with
     volatile, but generally  low, oil and gas prices.   Over the past
     few years, the  oil and  gas market  appears to  have moved  from
     periods of  relative stability  in supply  and  demand to  excess
     supply  and  weakened  demand.   These  trends  have  led to  the
     volatility in pricing and demand noted over the past years.

     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  bank debt  commitments.   Cash  for  operational
     purposes will be provided by current oil and gas production.

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

     THREE  MONTHS ENDED SEPTEMBER 30,  1996 AS COMPARED  TO THE THREE
     MONTHS ENDED SEPTEMBER 30, 1995.

                                   Three months ended September 30,
                                   --------------------------------
                                          1996            1995
                                        -------          -------
      Oil and gas sales                 $54,005          $54,740
      Oil and gas production expenses   $24,805          $21,714
      Barrels produced                       26              324
      Mcf produced                       27,712           41,443
      Average price/Bbl                 $ 21.31          $ 14.60
      Average price/Mcf                 $  1.93          $  1.21
 
     As  shown  in  the  table  above,  oil  and  gas  sales  remained
     relatively constant for the three months ended September 30, 1996
     as  compared to the three months ended September 30, 1995.  While
     the average prices  of oil and natural gas sold increased for the
     three months  ended  September 30,  1996  compared to  the  three
     months ended September  30, 1995, any  resulting increase in  oil
     and gas sales  was offset by decreases in the  volumes of oil and
     natural gas sold.  Volumes of oil and natural gas sold  decreased
     by 298 barrels and 13,731 Mcf, respectively, for the three months
     ended  September 30, 1996 as  compared to the  three months ended
     September 30, 1995.  The decrease in volumes of oil sold resulted
     primarily from (i)  diminished production on  one well which  was
     shut-in during the three  months ended September 30, 1996  due to
     mechanical difficulties and (ii) the normal decline in production
     on one well during the three  months ended September 30, 1996  as
     compared  to the  three months  ended September  30, 1995  due to
     diminished  reserves.  The decrease in the volumes of natural gas
     sold resulted  primarily from (i) one natural  gas producing well

                                  -8-
<PAGE>
<PAGE>
     having  an  overproduced  status   for  the  three  months  ended
     September 30, 1996 and  (ii) the normal decline in  production on
     one  well due to diminished natural gas reserves during the three
     months ended September 30,  1996 as compared to the  three months
     ended September 30,  1995.   Average oil and  natural gas  prices
     increased to $21.31 per barrel  and $1.93 per Mcf,  respectively,
     for the three  months ended  September 30, 1996  from $14.60  per
     barrel and  $1.21 per  Mcf, respectively,  for  the three  months
     ended September 30, 1995.  

     Oil  and  gas  production  expenses  (including  lease  operating
     expenses  and production  taxes) increased  $3,091 for  the three
     months ended September 30,  1996 as compared to the  three months
     ended September 30, 1995.   This increase resulted primarily from
     workover expenses incurred on two  wells during the three  months
     ended  September 30,  1996 in  order to  improve the  recovery of
     reserves, partially  offset by workover expenses  incurred on one
     well during  the three  months ended September  30, 1995.   As  a
     percentage  of  oil and  gas sales,  these expenses  increased to
     45.9%  for the three months  ended September 30,  1996 from 39.7%
     for the three months  ended September 30, 1995.   This percentage
     increase  was  primarily a  result  of the  increase  in workover
     expenses  incurred during  the three  months ended  September 30,
     1996  as compared to the  three months ended  September 30, 1995,
     partially  offset by the increases  in the average  prices of oil
     and  natural gas sold during the three months ended September 30,
     1996 as compared to the three months ended September 30, 1995.

     Depreciation,  depletion,   and  amortization  of   oil  and  gas
     properties decreased $7,176 for  the three months ended September
     30,  1996 as  compared to  the three  months ended  September 30,
     1995.  This decrease was primarily the result of the decreases in
     the volumes of oil and  natural gas sold during the three  months
     ended  September 30, 1996 as  compared to the  three months ended
     September 30, 1995.   As a percentage of oil  and gas sales, this
     expense decreased to  15.5% for the three  months ended September
     30,  1996 from  28.4% for  the three  months ended  September 30,
     1995.    This percentage  decrease  resulted  primarily from  the
     increases  in  the average  prices of  oil  and natural  gas sold
     during the three months  ended September 30, 1996 as  compared to
     the three months ended September 30, 1995.  

     General and administrative expenses  increased $610 for the three
     months ended September 30,  1996 as compared to the  three months
     ended September 30, 1995.  This increase was primarily due  to an
     increase  in  professional fees  during  the  three months  ended
     September  30,  1996  as  compared  to  the  three  months  ended
     September 30,  1995.  As a percentage of oil and gas sales, these
     expenses increased to  28.2% for the three months ended September
     30,  1996 from  26.7% for  the three  months ended  September 30,
     1995.    This percentage  increase  resulted  primarily from  the
     decreases in the volumes of  oil and natural gas sold  during the
     three  months ended September 30,  1996 as compared  to the three
     months  ended  September  30,   1995,  partially  offset  by  the
     increases  in  the average  prices of  oil  and natural  gas sold
     during the three months  ended September 30, 1996 as  compared to
     the three months ended September 30, 1995. 

                                  -9-
<PAGE>
<PAGE>
     NINE  MONTHS ENDED  SEPTEMBER 30,  1996 AS  COMPARED TO  THE NINE
     MONTHS ENDED SEPTEMBER 30, 1995.

                                    Nine months ended September 30,
                                    -------------------------------
                                          1996            1995
                                        --------         ------
      Oil and gas sales                 $205,576        $167,504
      Oil and gas production expenses   $ 61,736        $ 73,090 
      Barrels produced                       164             580
      Mcf produced                       105,816         124,952
      Average price/Bbl                 $  18.73        $  15.50
      Average price/Mcf                 $   1.91        $   1.27

     As shown in the table above, oil  and gas sales increased $38,072
     (22.7%)  for the nine months ended September 30, 1996 as compared
     to the nine  months ended September 30, 1995.   Of this increase,
     $79,969  was  related to  the increase  in  the average  price of
     natural gas sold, partially offset by a $44,342  decrease related
     to the  decreases in  the volumes  of oil  and natural  gas sold.
     Volumes of oil and natural gas sold decreased  by 416 barrels and
     19,136 Mcf, respectively, for the nine months ended September 30,
     1996 as compared  to the  nine months ended  September 30,  1995.
     The  decrease  in volumes  of  oil sold  resulted  primarily from
     diminished production  on one well  which was shut-in  during the
     nine  months   ended  September   30,  1996  due   to  mechanical
     difficulties.   The decrease in  the volumes of  natural gas sold
     was primarily due to (i) one natural gas producing well having an
     overproduced  status  for a  portion  of  the  nine months  ended
     September 30, 1996 and  (ii) the normal decline in  production on
     one well due to  diminished natural gas reserves during  the nine
     months  ended September 30, 1996  as compared to  the nine months
     ended September 30,  1995.   Average oil and  natural gas  prices
     increased to $18.73 per  barrel and $1.91 per Mcf,  respectively,
     for  the nine  months ended  September 30,  1996 from  $15.50 per
     barrel and $1.27 per Mcf, respectively, for the nine months ended
     September 30, 1995.  

     Oil  and  gas  production  expenses  (including  lease  operating
     expenses  and production  taxes) decreased  $11,354 for  the nine
     months  ended September 30, 1996  as compared to  the nine months
     ended September 30, 1995.  This decrease resulted primarily  from
     (i)  the shutting-in  of one  well during  the nine  months ended
     September  30,  1996  due  to mechanical  difficulties  and  (ii)
     workover expenses incurred on another well during the nine months
     ended  September 30,  1995 in  order to  improve the  recovery of
     reserves.  As  a percentage of oil and gas  sales, these expenses
     decreased to 30.0% for  the nine months ended September  30, 1996
     from 43.6%  for the nine  months ended September 30,  1995.  This
     percentage  decrease was primarily  a result of  the increases in
     the average  prices of oil and  natural gas sold  during the nine
     months  ended September 30, 1996  as compared to  the nine months
     ended September 30, 1995.  

     Depreciation,  depletion,   and  amortization  of  oil   and  gas
     properties decreased  $6,902 for the nine  months ended September
     30, 1996 as compared to the nine months ended September 30, 1995.
     This  decrease was primarily the  result of the  decreases in the
     volumes of oil and natural gas sold  during the nine months ended
     September 30, 1996 as compared to the nine months ended September

                                 -10-
<PAGE>
<PAGE>
     30, 1995.   As a percentage  of oil and  gas sales, this  expense
     decreased to 14.4% for  the nine months ended September  30, 1996
     from 21.7% for  the nine months ended  September 30, 1995.   This
     percentage decrease resulted primarily  from the increases in the
     average prices of oil and natural gas sold during the nine months
     ended September 30,  1996 as  compared to the  nine months  ended
     September 30, 1995.  

     General and administrative expenses remained  relatively constant
     for the nine  months ended September 30, 1996 as  compared to the
     nine months ended September 30, 1995.  As a percentage of oil and
     gas  sales, these expenses decreased to 27.3% for the nine months
     ended September 30,  1996 from  33.8% for the  nine months  ended
     September 30, 1995.   This percentage decrease resulted primarily
     from the increases  in the average prices of oil  and natural gas
     sold  during the nine months ended September 30, 1996 as compared
     to the nine months ended September 30, 1995.  

                                -11-
<PAGE>
<PAGE>
                      PART II:  OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

     On November 12, 1992 Larry and Leona Beck filed a lawsuit against
     Dyco  Petroleum  Corporation ("Dyco")  and  others  in which  the
     plaintiffs  alleged   damages  to  their  land  as  a  result  of
     remediation operations  conducted on the  Paul King No.  1-7 well
     (Beck v. Trigg Drilling Company, Inc., et al., C-92-227, District
     Court  of  Beckham  County,  Oklahoma).    The  Program   had  an
     approximate 5.7% working interest  in the Paul King No.  1-7 well
     at  the time the lawsuit  was filed.   The lawsuit alleged claims
     based on negligence, private nuisance, public nuisance, trespass,
     unjust  enrichment, constructive fraud,  and permanent injunctive
     relief, all  in amounts to be  determined at trial.   A trial was
     conducted in  the matter on  February 22, 1994 in  which the jury
     entered  a verdict in  favor of the  plaintiffs in the  amount of
     approximately  $5.5  million, consisting  of  approximately $2.75
     million  in actual  damages  and approximately  $2.75 million  in
     punitive damages.  Dyco appealed the district court's verdict and
     on  March  5, 1996  the Oklahoma  Court  of Appeals  reversed the
     district court's verdict and ordered a new trial.  Both  Dyco and
     the plaintiffs  filed petitions  for certiorari with  the Supreme
     Court  of Oklahoma  seeking  a further  review  of the  Court  of
     Appeals  opinion, both  of  which petitions  for certiorari  were
     denied  on  July 3,  1996.   The case  has  been remanded  to the
     district court for a new trial.


ITEM 5. OTHER INFORMATION

     On  October 1, 1996,  Drew Phillips  resigned as  Chief Financial
     Officer  of  Dyco.    Mr.  Phillips  continues  to  serve  as  an
     accounting officer of affiliates of Dyco.

     On October 1, 1996,  Patrick M. Hall was elected  Chief Financial
     Officer  of   Dyco.    Mr.   Hall  joined   affiliates  of   Dyco
     (collectively, the "Samson Companies") in 1983.  Prior to joining
     the Samson Companies he was a senior accountant with Peat Marwick
     Main  & Co. in Tulsa.   He holds a  Bachelor of Science degree in
     accounting  from Oklahoma  State  University and  is a  Certified
     Public  Accountant.   Mr. Hall  is also  Senior Vice  President -
     Controller of Samson Investment Company.

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, 1996 and
                    for  the  nine  months ended  September  30, 1996,
                    filed herewith.

                    All other exhibits are omitted as inapplicable.

                                 -12-
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<PAGE>
     (b)  Reports on Form 8-K

          Current Report  on Form  8-K filed  during third quarter  of
          1996:

          Date of event:           July 1, 1996
          Date filed with SEC:     July 8, 1996
          Item Included:
               Item 5 - Other Events


                                 -13-
<PAGE>
<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:  October 25, 1996      By:        /s/Dennis R. Neill
                                 --------------------------------
                                        (Signature)
                                        Dennis R. Neill
                                        President



Date:  October 25, 1996      By:        /s/Patrick M. Hall
                                 --------------------------------
                                        (Signature)
                                        Patrick M. Hall
                                        Chief Financial Officer



                                 -14-
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<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, 1996 and  for the nine months  ended September
          30, 1996, filed herewith.

          All other exhibits are omitted as inapplicable.


                                 -15-
<PAGE>