UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 10-K

MARK ONE
     [x] ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES 
         EXCHANGE ACT OF 1934

                   For the Fiscal Year Ended December 31, 1997

     [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                         Commission File Number 2-89194


                         MAY DRILLING PARTNERSHIP 1984-1
                         MAY LIMITED PARTNERSHIP 1984-1
             (Exact name of registrant as specified in its charter)


                                                                      75-1973664
              Texas                                                   75-1973661
       (State or other jurisdiction of                          (I.R.S. Employer
       incorporation or organization)                     Identification Number)

    4582 South Ulster Street Parkway
              Suite 1700
         Denver, Colorado                                                  80237
(Address of principal executive offices)                              (Zip Code)

       Registrant's telephone number, including area code: (303) 850-7373

           Securities Registered Pursuant to Section 12(b) of the Act:

                                                           Name of each exchange
Title of each class                                          on which registered
       None                                                                 None

           Securities Registered Pursuant to Section 12(g) of the Act:

                     Units of Participation, $1,000 Per Unit
                                (Title of Class)

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 [ ]

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation S-K is not contained herein and will not be contained, to the best
of  registrant's  knowledge,  in  definitive  proxy  or  information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [x]

                                                   Page 1 of 23


<PAGE>




                      DOCUMENTS INCORPORATED BY REFERENCE:



                                                          Part of Form 10-K into
Document                                                which it is incorporated


The General Partnership Agreement and the Limited Partnership Agreement
filed as an Exhibit to Registration Statement No. 2-89194                Part IV


<PAGE>


                                                       - 4 -


<PAGE>


                                                      PART I


ITEM 1  -  BUSINESS

May Drilling Partnership 1984-1 (the "Drilling or General  Partnership") and May
Limited  Partnership  1984-1 (the "Limited  Partnership")  were organized by May
Petroleum Inc. ("May") to explore for and develop oil and gas reserves primarily
in Texas, Oklahoma and Louisiana. Funds received from the sale and production of
oil and gas reserves are used to pay the obligations of the Limited Partnership.
Funds not required by the Limited Partnership as working capital are distributed
to the participants in the Drilling Partnership and the general partner.

The general partner of the Limited Partnership is EDP Operating,  Ltd., which is
one of the operating  partnerships for Hallwood Energy Partners,  L. P. ("HEP").
The Drilling Partnership is the sole limited partner of the Limited Partnership.
The Limited  Partnership does not have any  subsidiaries,  nor does it engage in
any other kind of business.  The Limited  Partnership  has no  employees  and is
operated by Hallwood  Petroleum,  Inc. ("HPI"), a subsidiary of HEP. In February
1998, HPI employed 123 full-time employees.

Pursuant  to the terms of the  general  partnership  agreement  and the  limited
partnership  agreement,  HEP is  obligated,  from  time to time,  to  contribute
certain  amounts,  in property,  cash or unreimbursed  services,  to the Limited
Partnership.  As of December 31, 1997, all such required  contributions had been
made.

Participation in Expenses and Revenues

The principal expenses and revenues of the Limited Partnership are shared by the
general  partner and the Drilling  Partnership as shown in the following  table.
The charges and credits to participants  in the Drilling  Partnership are shared
among  the   participants   in  proportion  to  their   ownership  of  units  of
participation.

<TABLE>
<CAPTION>

                                                             Drilling              General
                                                           Partnership             Partner



<S>                  <C>                                        <C>                     <C>
Abandonment expenses (1)                                        99%                     1%

Noncapital expenses                                             99%                     1%

Direct expenses                                                 99%                     1%

Lease acquisition expenses                                                            100%

Capital expenses                                                                      100%

Oil and gas revenues                                            (2)                    (2)

Operating expenses                                              (2)                    (2)

Special projects                                                (2)                    (2)

General and administrative overhead                             (2)                    (2)
</TABLE>

     (1) Includes   expenses   that  would   otherwise  be  allocated  as  lease
         acquisition  expenses  and/or  capital  expenses  but  that  relate  to
         abandoned properties.

     (2) Such items were shared 70% by the Drilling  Partnership  and 30% by the
         general  partner until  December 31, 1984. As of December 31, 1984, and
         as of December 31 of each year thereafter, the sharing of such items is
         adjusted so the general partner's allocation equals the percentage that
         the amount of Limited  Partnership  expenses  allocated  to the general
         partner bears to the aggregate amount of Limited  Partnership  expenses
         allocated to the general partner and the Drilling Partnership,  plus 15
         percentage   points,  but  in  no  event  will  the  general  partner's
         allocation  exceed 50%.  The  sharing  ratio for each of the last three
         years was:


<PAGE>






                            1997             1996              1995
                      -     -----       -    -----       -     ----


                           
Limited Partner            62.7%             62.9%            63.1%
General Partner            37.3%             37.1%            36.9%
                           
In 1998, the sharing ratio will be 62.7% to the limited partner and 37.3% to the
general partner.

To  the  extent  that  the  characterization  of  any  expense  of  the  Limited
Partnership  depends on its deductibility  for federal income tax purposes,  the
proper  characterization  is determined by the general partner (according to its
intended  characterization  on the  Limited  Partnership's  federal  income  tax
return) in good faith at the time the expense is to be charged or credited. Such
characterization  will  control  related  charges  and  credits to the  partners
regardless of any subsequent  determination by the Internal Revenue Service or a
court of law that the reported  expenses should be otherwise  characterized  for
tax purposes.

Competition

Oil and gas must  compete with coal,  atomic  energy,  hydro-electric  power and
other  forms of energy.  See also  "Marketing"  for a  discussion  of the market
structure for oil and gas sales.

Regulation

Production and sale of oil and gas is subject to federal and state  governmental
regulations in a variety of ways including environmental regulations, labor law,
interstate  sales,  excise  taxes and federal,  state and Indian  lands  royalty
payments.  Failure  to  comply  with  these  regulations  may  result  in fines,
cancellation of licenses to do business and  cancellation  of federal,  state or
Indian leases.

The  production of oil and gas is subject to regulation by the state  regulatory
agencies in the states in which the Limited  Partnership  does  business.  These
agencies  make and enforce  regulations  to prevent  waste of oil and gas and to
protect the rights of owners to produce oil and gas from a common reservoir. The
regulatory  agencies  regulate  the amount of oil and gas  produced by assigning
allowable production rates to wells capable of producing oil and gas.

Federal Income Tax Considerations

The Limited Partnership and the General Partnership are partnerships for federal
income tax purposes.  Consequently,  they are not taxable entities;  rather, all
income, gains, losses,  deductions and credits are passed through and taken into
account by the  partners on their  individual  federal  income tax  returns.  In
general,  distributions are not subject to tax so long as such  distributions do
not exceed the partner's  adjusted tax basis. Any distributions in excess of the
partner's adjusted tax basis are taxed generally as capital gains.

Marketing

The oil and gas produced from the  properties  owned by the Limited  Partnership
has typically been marketed  through normal channels for such products.  Oil has
generally  been sold to  purchasers  at field  prices  posted  by the  principal
purchasers of crude oil in the areas where the producing properties are located.
The majority of the Limited  Partnership's  gas  production  is sold on the spot
market and is transported in intrastate and interstate  pipelines.  Both oil and
natural gas are purchased by refineries,  major oil companies,  public utilities
and other users and processors of petroleum products.

Factors  which,  if they were to  occur,  might  adversely  affect  the  Limited
Partnership  include  decreases  in oil and gas prices,  the  availability  of a
market  for  production,  rising  operational  costs of  producing  oil and gas,
compliance  with and changes in  environmental  control  statutes and increasing
costs and difficulties of transportation.


Significant Customers

For the years ended December 31, 1997,  1996 and 1995,  purchases by each of the
following  companies  exceeded  10% of the  total  oil and gas  revenues  of the
Limited Partnership:

<TABLE>
<CAPTION>

                                           1997              1996             1995
                                      -    -----       -     -----       -    ----


                                            
<S>                                         <C>              <C>               <C>
Conoco Inc.                                 41%              56%               72%
Marathon Petroleum Company                  39%
TXG Gas Marketing                           19%              30%
</TABLE>
                                            
Although the Limited Partnership sells the majority of its production to a small
number of purchasers,  there are numerous  other  purchasers in the area, so the
loss  of any  significant  customer  would  not  adversely  affect  the  Limited
Partnership's operations.

Environmental Considerations

The  exploration  for, and  development  of, oil and gas involve the extraction,
production and transportation of materials which, under certain conditions,  can
be  hazardous or can cause  environmental  pollution  problems.  In light of the
present general interest in environmental  problems,  the general partner cannot
predict what effect  possible  future  public or private  action may have on the
business  of the  Limited  Partnership.  The  Limited  Partnership's  historical
environmental  expenditures  have not been  material  and are not expected to be
material in the future.  The general  partner is  continually  taking actions it
believes  necessary  in its  operations  to ensure  conformity  with  applicable
federal,  state  and  local  environmental  regulations  and does not  presently
anticipate  that the  compliance  with  federal,  state and local  environmental
regulations  will have a material  adverse  effect  upon  capital  expenditures,
earnings or the competitive  position of the Limited  Partnership in the oil and
gas industry.

Insurance Coverage

The Limited  Partnership is subject to all the risks inherent in the exploration
for,  and  development  of,  oil and gas,  including  blowouts,  fires and other
casualties. The Limited Partnership maintains insurance coverage as is customary
for  entities of a similar  size  engaged in  operations  similar to the Limited
Partnership's,  but  losses can occur  from  uninsurable  risks or in amounts in
excess of existing insurance  coverage.  The occurrence of an event which is not
insured  or not fully  insured  could have an adverse  impact  upon the  Limited
Partnership's earnings and financial position.

Issues Related to the Year 2000

As the year 2000 approaches, there are uncertainties concerning whether computer
systems will properly recognize date-sensitive information when the year changes
to 2000.  Systems that do not properly recognize such information could generate
erroneous data or fail.

Because  of the nature of the oil and gas  industry  and the  necessity  for the
Limited  Partnership  to make reserve  estimates and other plans well beyond the
year 2000, the Limited Partnership's  computer systems and software were already
configured to accommodate  dates beyond the year 2000.  The Limited  Partnership
believes that the year 2000 will not pose significant  operational  problems for
the Limited Partnership's  computer systems. The Limited Partnership has not yet
completed its assessment of all of its systems, or the computer systems of third
parties  with which it deals,  and it is not possible at this time to assess the
effect of a third party's  inability to  adequately  address year 2000 issues on
the operations of the Limited Partnership.




<PAGE>


ITEM 2  -  PROPERTIES

The Limited  Partnership's oil and gas reserves are concentrated in one prospect
in south  Louisiana.  Natural gas  accounts  for 65% of  estimated  future gross
revenues in the Limited Partnership's reserve report as of December 31, 1997.

Significant Property

At December 31, 1997,  the following  property  accounted for all of the Limited
Partnership's proved oil and gas reserves. Reserve quantities were obtained from
the December 31, 1997 reserve report prepared by HPI's petroleum engineers.

Montet Prospect. The Montet prospect is located in Lafayette Parish,  Louisiana.
The Limited Partnership's  interest in the prospect contains one productive well
(the Freddie  Aker) and has estimated  remaining  net proved  reserves of 18,000
bbls  of oil  and  191,000  mcf of gas as of  December  31,  1997.  The  Limited
Partnership's  working interest in this well is 8.7%. The prospect produces from
one zone, the Bol Mex 3 formation, at 15,275 feet.


ITEM 3  -  LEGAL PROCEEDINGS

For a description of legal proceedings affecting the Limited Partnership, please
refer to Item 8 - Note 4.


ITEM 4  -  SUBMISSION OF MATTERS TO A VOTE OF STOCKHOLDERS

No matter was submitted to a vote of  participants  during the fourth quarter of
1997.


                                                      PART II


ITEM 5  -  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
             MATTERS

           a)     The registrant's  securities consist of partnership  interests
                  which  are  not  traded  on any  exchange  and  for  which  no
                  established public trading market exists.

           b)     As of December 31, 1997, there were  approximately 488 holders
                  of   record  of   partnership   interests   in  the   Drilling
                  Partnership.

           c) Distributions paid by the Limited  Partnership were as follows (in
thousands):


                           General          Limited
                           Partner          Partner




       1997                  $308             $519
       1996                   380              646
       1995                   236              402



<PAGE>


ITEM 6  -  SELECTED FINANCIAL DATA

<TABLE>
<CAPTION>

                                                               For the Limited Partnership
                                                              As of or for the Year Ended December 31,

                                  1997           1996            1995            1994            1993
                             -    -----      -   -----      -    -----      -    -----      -    ----

                                                             (In thousands)
                                
<S>                             <C>             <C>            <C>             <C>             <C>   
Total revenues                  $  867          $ 1,329        $  774          $  956          $  733
Oil and gas revenues               850            1,318           763             949             727
Net income                         713            1,174           637             822             593
Working capital                    406              541           393             394             406
Total assets                       439              552           408             406             419
Partners' capital                  427              541           393             394             406
</TABLE>
                                

ITEM 7  -  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
           RESULTS OF OPERATIONS

Liquidity and Capital Resources

Material changes in the Limited  Partnership's cash position for the years ended
December 31, 1997 and 1996 are summarized as follows:

<TABLE>
<CAPTION>

                                                             1997              1996
                                                       -     ----        -     ----
                                                                  (In thousands)

<S>                                                       <C>                  <C>    
Cash provided by operating activities                     $  831               $ 1,101
Distributions to partners                                   (827)               (1,026)
Additions to oil and gas properties                          (48)                   (7)
                                                           ------                ------
Increase (decrease) in cash                              $   (44)            $      68
                                                            ======             ========
</TABLE>
                                                           
Cash  provided  by  operating   activities  in  1997  was  used   primarily  for
distributions  to the  partners.  Future  distributions  depend on,  among other
things,  continuation  of  current  or higher oil and gas  prices,  markets  for
production and future development costs.

The  Limited  Partnership  has net working  capital of $406,000 at December  31,
1997. This working capital,  together with cash flows generated from operations,
may be used to fund future distributions.

Proved  reserves and discounted  future net revenues  valued at year-end  prices
(discounted at 10% and before general and  administrative  expenses) from proved
reserves  were  estimated  at 18,000  bbls and 191,000 mcf valued at $744,000 in
1997 and 22,000 bbls of oil and 228,000 mcf of gas valued at $1,417,000 in 1996.
The  decrease in  discounted  future net  revenues  and the  fluctuation  in the
quantities  resulted from a decrease in year end oil and gas prices,  as well as
current year production and changes in the estimated rates of future  production
on the Freddie Aker well.


<PAGE>


Results of Operations

1997 Compared to 1996

Oil Revenue

Oil revenue  decreased  $172,000 during 1997 as compared with 1996. The decrease
is comprised of a 31% decrease in  production,  combined  with a decrease in the
average  price  from to $24.40  per barrel in 1996 to $20.28 per barrel in 1997.
The decrease in production from 23,270 barrels in 1996 to 16,079 barrels in 1997
is due to normal production declines.

Gas Revenue

Gas revenue  decreased  $296,000 during 1997 as compared with 1996. The decrease
is due to a decrease  in the average gas price from $3.15 per mcf during 1996 to
$3.07 per mcf during  1997  combined  with a 34%  decrease  in  production.  The
decrease in production from 260,436 mcf in 1996 to 170,665 mcf in 1997 is due to
normal production declines.

Other

Other income is comprised of insurance  proceeds  which  reimbursed a portion of
expense incurred in a prior period to settle certain litigation.

Lease Operating

Lease  operating  expense  increased  $8,000  during 1997 as compared  with 1996
primarily due to increased maintenance
activity during 1997.

Production Taxes

Production taxes decreased $26,000 during 1997 as compared with 1996 as a result
of decreased oil and gas production during 1997 as discussed above.

General and Administrative

General and  administrative  expenses  decreased  $3,000 during 1997 as compared
with 1996 primarily due to a
decrease in the allocation of overhead from the general partner.

Depletion

Depletion  expense increased $20,000 during 1997 as compared with 1996 due to an
increase in capitalized costs during 1997.

1996 Compared to 1995

Oil Revenue

Oil revenue  increased  $140,000 during 1996 as compared with 1995. The increase
is comprised of a 15% increase in  production,  combined with an increase in the
average  price from $17.67 per barrel in 1995 to $24.40 per barrel in 1996.  The
increase in production  from 20,278 barrels in 1995 to 23,270 barrels in 1996 is
primarily due to increased state allowable  production limits,  partially offset
by normal production declines.




<PAGE>


Gas Revenue

Gas revenue  increased  $415,000 during 1996 as compared with 1995. The increase
is due to an increase in the average gas price from $1.98 per mcf during 1995 to
$3.15 per mcf during  1996  combined  with a 28%  increase  in  production.  The
increase in production from 204,055 mcf in 1995 to 260,436 mcf in 1996 is due to
increased  state  allowable  production  limits,   partially  offset  by  normal
production declines.

Lease Operating

Lease  operating  expense  increased  $5,000  during 1996 as compared  with 1995
primarily due to increased maintenance activity during 1996.

Production Taxes

Production taxes increased $22,000 during 1996 as compared with 1995 as a result
of increased oil and gas revenue during 1996.

General and Administrative

General and  administrative  expenses  decreased $10,000 during 1996 as compared
with 1995  primarily  due to a decrease in the  allocation  of overhead from the
general partner.

Depletion

Depletion  expense  increased $6,000 during 1996 as compared with 1995 due to an
increase in capitalized costs during 1996.


<PAGE>
<TABLE>
<CAPTION>


ITEM 8  -  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                                           INDEX TO FINANCIAL STATEMENTS

                                                                                                            Page
FINANCIAL STATEMENTS:

<S>                                                                                                           <C>
     Independent Auditors' Report                                                                             11

     Balance Sheets at December 31, 1997 and 1996 -
         May Drilling Partnership 1984-1                                                                      12

     Balance Sheets at December 31, 1997 and 1996 -
         May Limited Partnership 1984-1                                                                       13

     Statements of Operations for the Years Ended
         December 31, 1997, 1996 and 1995 -
         May Limited Partnership 1984-1                                                                       14

     Statements of Changes in Partners' Capital for the Years Ended December 31,
         1997, 1996 and 1995 -
         May Limited Partnership 1984-1                                                                       15

     Statements of Cash Flows for the Years Ended
         December 31, 1997, 1996 and 1995 -
         May Limited Partnership 1984-1                                                                       16

     Notes to Financial Statements - May Drilling Partnership 1984-1
         and May Limited Partnership 1984-1                                                                17-20

SUPPLEMENTAL OIL AND GAS RESERVE INFORMATION (UNAUDITED)                                                      21

</TABLE>

<PAGE>


                                           INDEPENDENT AUDITORS' REPORT



To the Partners of May Drilling Partnership 1984-1 and
     May Limited Partnership 1984-1:

We have audited the  financial  statements  of May Drilling  Partnership  1984-1
("General   Partnership")   and  May  Limited   Partnership   1984-1   ("Limited
Partnership")  as of December  31, 1997 and 1996 and for each of the three years
in the period ended December 31, 1997, listed in the accompanying  index at Item
8.  These  financial  statements  are the  responsibility  of the  Partnerships'
management.  Our  responsibility  is to express  an  opinion on these  financial
statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our  opinion,  such  financial  statements  present  fairly,  in all material
respects,  the  financial  position of the General  Partnership  and the Limited
Partnership  at December 31, 1997 and 1996,  and the results of  operations  and
cash flows of the Limited  Partnership for each of the three years in the period
ended  December  31,  1997 in  conformity  with  generally  accepted  accounting
principles.



DELOITTE & TOUCHE LLP

Denver, Colorado
February 27, 1998


<PAGE>
<TABLE>
<CAPTION>


                                          MAY DRILLING PARTNERSHIP 1984-1
                                                  BALANCE SHEETS
                                                  (In thousands)

                                                                            December 31,         December 31,
                                                                                   1997                 1996



ASSETS

<S>                                   <C>  <C>                                  <C>                  <C> 
Investment in May Limited Partnership 1984-1                                    $188                 $267
                                                                                 ====                 ===





PARTNERS' CAPITAL

Partners' Capital                                                               $188                 $267
                                                                                 ====                 ===






<FN>

Note:    The  statements of  operations,  changes in partners?  capital and cash
         flows for May Drilling  Partnership  1984-1 are not  presented  because
         such  information  is  equal  to the  Limited  Partners'  share of such
         activity as presented in the May Limited  Partnership  1984-1 financial
         statements.  The May Drilling Partnership carries its investment in May
         Limited  Partnership  1984-1  on the  equity  method.  The May  Limited
         Partnership  1984-1 financial  statements should be read in conjunction
         with this balance sheet.
</FN>






















<FN>

                                    The    accompanying  notes  are an  integral
                                           part of the financial statements.
</FN>
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                                          MAY LIMITED PARTNERSHIP 1984-1
                                                  BALANCE SHEETS
                                                  (In thousands)


                                                                               December 31,              December 31,
                                                                                      1997                      1996

ASSETS
CURRENT ASSETS
<S>                                                                             <C>                         <C>    
     Cash and cash equivalents                                                  $   221                     $   265
     Accrued oil and gas revenues                                                   127                         212
     Due from affiliate                                                              70                          75
                                                                                   ----                        -----
              Total                                                                 418                         552
                                                                                    ----                        ----- 
                                                                                         
OIL AND GAS PROPERTIES, using the                                                          
     full cost method of accounting                                               8,112                       8,064
         Less accumulated depletion                                              (8,091)                     (8,064)
                                                                                 ------                      -------
              Net oil and gas properties                                             21  
                                                                                   ----                        -----       
                                                                                           
TOTAL ASSETS                                                                    $   439                     $   552
                                                                                 ======                      ======
                                                                                         
LIABILITIES AND PARTNERS' CAPITAL                                                        
CURRENT LIABILITIES                                                                      
     Accounts payable and accrued liabilities                                  $     12                    $     11
                                                                                 -------                    -------
PARTNERS' CAPITAL                                                                        
     General partner                                                                239                         274
     Limited partner                                                                188                         267
                                                                                   ----                        -----         
              Total                                                                 427                         541
                                                                                    ----                        -----      
                                                                                         
                                                                                           
TOTAL LIABILITIES AND PARTNERS' CAPITAL                                         $   439                     $   552
                                                                                   =====                     ======











<FN>

                                    The    accompanying  notes  are an  integral
                                           part of the financial statements.
</FN>
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                                          MAY LIMITED PARTNERSHIP 1984-1
                                             STATEMENTS OF OPERATIONS
                               FOR THE YEARS ENDED  DECEMBER 31, 1997,  1996 AND 1995
                               (In  thousands,  except  for Unit and per Unit Information)

                                                                      1997                 1996                 1995
                                                              --      -----        --      -----        --      ----



REVENUES
<S>                                                                 <C>                <C>                   <C>     
     Oil revenue                                                    $    326           $     498             $    358
     Gas revenue                                                         524                 820                  405
     Interest income                                                      11                  11                   11
     Other                                                                 6  
                                                                         ---               -----                  ---- 
              Total                                                      867               1,329                  774
                                                                         ---               -----                  ---- 
COSTS AND EXPENSES                                                            
     Lease operating                                                      30                  22                   17
     Production taxes                                                     56                  82                   60
     General and administrative                                           31                  34                   44
     Depletion                                                            27                   7                    1
     Litigation settlement                                                                                          5
     Professional services and other                                      10                  10                   10
                                                                         ---               -----                  ----
              Total                                                      154                 155                  137
                                                                         ---               -----                  ----
                                                                              
NET INCOME                                                          $    713            $  1,174             $    637
                                                                        =====            =======              =======

ALLOCATION OF NET INCOME:
     General Partner                                                $    273           $     438             $    238
                                                                        ====            ========              =======
     Limited Partner                                                $    440           $     736             $    399
                                                                        ====            ========              =======

     Per initial $1,000 Limited Partner                             
          investment                                                 $ 81.92             $137.03              $ 74.29
                                                                      ======              ======               ======
                                                                    
     Weighted average initial $1,000 Limited                        
         Partner investment units outstanding                          5,371               5,371                5,371
                                                                       =====               =====                =====
                                                                    















<FN>

                                    The    accompanying  notes  are an  integral
                                           part of the financial statements.
</FN>
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                                          MAY LIMITED PARTNERSHIP 1984-1
                                    STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
                               FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
                                                  (In thousands)



                                                                       General           Limited
                                                                       Partner           Partner            Total



<S>               <C> <C>                                               <C>               <C>              <C>    
BALANCE, December 31, 1994                                              $   214           $   180          $   394

     Net income                                                             238               399              637
     Distributions                                                         (236)             (402)            (638)
                                                                           ----              ----             ----
BALANCE, December 31, 1995                                                  216               177              393

     Net income                                                             438               736            1,174
     Distributions                                                         (380)             (646)          (1,026)
                                                                           ----              ----           ------
BALANCE, December 31, 1996                                                  274               267              541
 
    Net income                                                              273               440              713
    Distributions                                                          (308)             (519)            (827)
                                                                           ----              ----             ----

BALANCE, December 31, 1997                                              $   239           $   188          $   427
                                                                         ======            ======           ======




























<FN>

                                    The    accompanying  notes  are an  integral
                                           part of the financial statements.
</FN>
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                                          MAY LIMITED PARTNERSHIP 1984-1
                                             STATEMENTS OF CASH FLOWS
                               FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
                                                  (In thousands)



                                                                 1997                1996                1995
                                                                 -----               -----               ----

OPERATING ACTIVITIES:
<S>                                                         <C>                     <C>                 <C>    
     Net income                                             $   713                 $ 1,174             $   637
     Adjustment to  reconcile  net  income  to net cash             
      provided  by  operating activities:                           
              Depletion                                          27                       7                   1
     Changes in assets and liabilities provided (used) cash:
         Accrued oil and gas revenues                            85                     (50)                (28)
         Due from affiliate                                       5                     (26)                  6
         Accounts payable and accrued                                    
              liabilities                                         1                      (4)                  3
                                                             ------                   ------               ----
                  Net cash provided by                                   
                       operating activities                     831                   1,101                 619
                                                             ------                   -----                 ---
INVESTING ACTIVITIES -                                              
     Additions to oil and gas properties                        (48)                     (7)                 (1)
                                                              ------                   ----                ----
                                                                    
FINANCING ACTIVITIES -                                              
     Distributions to partners                                 (827)                 (1,026)               (638)
                                                               ------                   ----                ----
                                                                    
NET INCREASE (DECREASE) IN CASH                                          
      AND CASH EQUIVALENTS                                      (44)                     68                 (20)

CASH AND CASH EQUIVALENTS:                                          
                                                                    
     BEGINNING OF YEAR                                          265                     197                 217
                                                                ------                   ----                ----
     END OF YEAR                                            $   221                 $    265             $   197
                                                               ======                 =======              ======












<FN>

                                    The    accompanying  notes  are an  integral
                                           part of the financial statements.
</FN>
</TABLE>


<PAGE>


                                          MAY DRILLING PARTNERSHIP 1984-1
                                                        AND
                                          MAY LIMITED PARTNERSHIP 1984-1

                                           NOTES TO FINANCIAL STATEMENTS


(1)  ACCOUNTING POLICIES AND OTHER MATTERS

         General Partnership

         May Drilling  Partnership  1984-1,  a Texas  general  partnership  (the
         "General Partnership"), was organized by May Petroleum Inc. ("May") for
         the purpose of oil and gas exploration  through May Limited Partnership
         1984-1 (the "Limited Partnership").  The General Partnership was formed
         on July  18,  1984,  with  investors  ("Participants")  subscribing  an
         aggregate  of  $5,371,000  in  assessable   $1,000  units.   After  the
         expenditure  of  the  initial   contributions   of  the   Participants,
         additional mandatory assessments from each Participant are provided for
         under the terms of the general partnership agreement in an amount up to
         25% of the initial  contribution of the  Participant.  During 1985, May
         assessed the Participants 15% of initial  contributions.  No additional
         assessments have been made since 1985.

         The general partnership  agreement requires that the manager,  Hallwood
         Energy  Partners,  L.  P.  ("HEP"),  offer  to  repurchase  partnership
         interests  from  Participants  for cash at amounts to be  determined by
         appraisal  (as set forth in the  partnership  agreement) of the Limited
         Partnership's  net assets no later than  December 31, 1988,  and during
         each succeeding year, if such net assets are positive.  The manager has
         made  repurchase  offers in each year since 1989 and  intends to make a
         repurchase offer in 1998.

         As the General  Partnership is the sole limited  partner of the Limited
         Partnership, and there are no other revenues or expenses of the General
         Partnership, its results of operations, changes in partners capital and
         cash  flows are equal to the  limited  partner's  share of the  Limited
         Partnership's  results of operations,  changes in partners  capital and
         cash  flows as set forth  herein.  Therefore,  separate  statements  of
         operations,  changes  in  partners  capital  and  cash  flows  are  not
         presented for the General Partnership.

         Limited Partnership

         The Limited Partnership, a Texas limited partnership,  was organized by
         May  and  the  General  Partnership,  for  the  purpose  of oil and gas
         exploration  and the  production  of crude oil,  natural  gas and other
         petroleum products.  The Limited Partnership's oil and gas reserves are
         concentrated  in one prospect in south  Louisiana.  Among other things,
         the terms of the limited  partnership  agreement (the "Agreement") give
         the general  partner the authority to borrow funds.  The Agreement also
         requires that the general partner's total capital  contributions to the
         Limited Partnership as of each year end, including  unrecovered general
         partner  acreage  and  equipment  advances,  must be  compared to total
         Limited  Partnership  expenditures  from inception to date, and if such
         contributions  are less than 15% of such  expenditures,  an  additional
         contribution  in the amount of the deficiency is required.  At December
         31, 1997, no  additional  contributions  were  necessary to comply with
         this requirement.

         On June 30, 1987,  May sold to HEP all of its economic  interest in the
         Limited  Partnership  and  account  receivable  balances  due  from the
         Limited  Partnership.  HEP became the  general  partner of the  Limited
         Partnership in 1988.


<PAGE>


Sharing of Costs and Revenues

Capital costs, as defined by the Agreement,  for  commercially  productive wells
and the costs related to the  organization of the Limited  Partnership are borne
by the general partner.  Noncapital costs and direct expenses, as defined by the
Agreement, are charged 1% to the general partner and 99% to the limited partner.
Oil and gas sales,  operating expenses and general and  administrative  overhead
are shared so that the general  partner's  allocation  will equal the percentage
that the amount of Limited Partnership  expenses,  as defined,  allocated to the
general partner bears to the aggregate  amount of Limited  Partnership  expenses
allocated to the general  partner and the limited  partner,  plus 15  percentage
points,  but in no event will the general  partner's  allocation exceed 50%. The
sharing ratio for each of the last three years was as follows:

<TABLE>
<CAPTION>

                                            1997             1996             1995
                                      -     ----       -     -----       -    ----

                                           
<S>                                        <C>              <C>               <C>  
Limited Partner                            62.7%            62.9%             63.1%
General Partner                            37.3%            37.1%             36.9%
</TABLE>
                                           
Significant Customers

For the years ended December 31, 1997,  1996 and 1995,  purchases by each of the
following  companies  exceeded  10% of the  total  oil and gas  revenues  of the
Limited Partnership:

<TABLE>
<CAPTION>

                                           1997              1996             1995
                                      -    -----       -     -----       -    ----


                                           
<S>                                         <C>               <C>               <C>
Conoco Inc.                                 41%               56%               72%
Marathon Petroleum Company                  39%
TXG Gas Marketing                           19%               30%
</TABLE>
                                            
Although the Limited Partnership sells the majority of its production to a small
number of purchasers,  there are numerous  other  purchasers in the area, so the
loss  of any  significant  customer  would  not  adversely  affect  the  Limited
Partnership's operations.

Income Taxes

No provision for federal income taxes is included in the financial statements of
the Limited  Partnership or the General  Partnership  because,  as partnerships,
they  are not  subject  to  federal  income  tax and the tax  effects  of  their
activities  accrue  to  the  partners.   The  partnerships'  tax  returns,   the
qualification  of the General  and  Limited  Partnerships  as  partnerships  for
federal  income  tax  purposes,  and the  amount of  taxable  income or loss are
subject  to  examination  by  federal  and  state  taxing  authorities.  If such
examinations result in changes to the partnerships'  taxable income or loss, the
tax liability of the partners could change accordingly.

Oil and Gas Properties

The Limited  Partnership  follows the full cost method of accounting for oil and
gas properties  and,  accordingly,  capitalizes  all costs  associated  with the
exploration and development of oil and gas reserves.

The capitalized  costs of evaluated  properties,  including the estimated future
costs to develop  proved  reserves,  are  amortized  on the units of  production
basis.  Full cost amortization per dollar of gross oil and gas revenues was $.03
in 1997 and $.01 in both 1996 and 1995.


<PAGE>


Capitalized  costs are limited to an amount not to exceed the  present  value of
estimated  future net cash flows. No valuation  adjustment was required in 1997,
1996 or 1995.  Significant  price declines in the future could cause the Limited
Partnership to recognize  valuation  adjustments  and could reduce the amount of
future cash flow available for distributions and operations.

Generally no gains or losses are  recognized on the sale or  disposition  of oil
and gas  properties.  Maintenance  and repairs are charged  against  income when
incurred.

Gas Balancing

The Limited  Partnership  uses the sales method of accounting for gas balancing.
Under this  method,  the Limited  Partnership  recognizes  revenue on all of its
sales of production, and any over production or under production is recovered at
a future date.

As of December 31, 1997, the net imbalance to the Limited Partnership's interest
is not considered  material.  Current  imbalances can be made up with production
from the existing well.

Use of Estimates

The  preparation  of the financial  statements for the Limited  Partnership  and
General Partnership in conformity with generally accepted accounting  principles
requires  management to make estimates and assumptions  that affect the reported
amounts  of assets and  liabilities  and  disclosure  of  contingent  assets and
liabilities at the date of the financial  statements and the reported amounts of
revenues and expenses during the reporting  period.  Actual results could differ
from these estimates.

Related Party Transactions

Hallwood Petroleum,  Inc. ("HPI"), a subsidiary of the general partner, pays all
costs and expenses of operations and receives all revenues  associated  with the
Limited  Partnership's  properties.  At month end, HPI  distributes  revenues in
excess  of costs  to the  Limited  Partnership.  The  amounts  due from HPI were
$70,000  and  $75,000 as of  December  31,  1997 and 1996,  respectively.  These
balances represent net revenue less operating costs and expenses.

Cash Flows

All highly  liquid  investments  purchased  with an  original  maturity of three
months or less are considered to be cash equivalents.


(2)  GENERAL AND ADMINISTRATIVE OVERHEAD

     HPI conducts the day to day operations of the Limited Partnership and other
     affiliated  partnerships  of HEP. The costs of  operating  the entities are
     allocated to each entity based upon the time spent on that entity.  General
     and  administrative  overhead  allocated by HPI to the Limited  Partnership
     totaled $31,000 in 1997, $34,000 in 1996 and $44,000 in 1995.


<PAGE>


(3)   INCOME TAXES

     As a result of the differences in the accounting treatment of certain items
     for  income  tax  purposes  as opposed  to  financial  reporting  purposes,
     primarily   depreciation,   depletion  and  amortization  of  oil  and  gas
     properties and the  recognition of intangible  drilling costs as an expense
     or capital  item,  the income tax basis of oil and gas  properties  differs
     from the basis used for financial reporting purposes.  At December 31, 1997
     and 1996,  the income tax bases of the  Limited  Partnership's  oil and gas
     properties were approximately $1,600 and $2,400, respectively.


(4)   LITIGATION SETTLEMENT

     In the fourth  quarter of 1995,  the parties  settled  the  lawsuit  styled
     Stutes v. Hallwood  Petroleum,  Inc. et al. The plaintiff alleged that as a
     result of exposure to benzene in the  petroleum he was hauling from various
     wells owned and operated by the Limited  Partnership and the  approximately
     80 other named defendants,  he contracted myelogenous leukemia. The Limited
     Partnership's share of the settlement not covered by insurance was $5,000.


<PAGE>


                  SUPPLEMENTAL OIL AND GAS RESERVE INFORMATION
                                                    (Unaudited)


The following  tables contain certain costs and reserve  information  related to
the Limited Partnership's oil and gas activities. The Limited Partnership has no
long-term  supply  agreements  and all  reserves  are located  within the United
States.

Costs Incurred -

<TABLE>
<CAPTION>

                                              For the Years Ended December 31,

                                          1997             1996              1995
                                          ----             ----              ----
                                                      (In thousands)



<S>                                       <C>               <C>              <C>
        Development costs                 $ 48              $ 7              $ 1
                                           ===               ==               ==
</TABLE>

Oil and Gas Reserves (valued at year-end prices discounted at 10%) -
<TABLE>
<CAPTION>

                                                                              
                                              1997                           1996                      1995

                                   Bbls            Mcf           Bbls            Mcf          Bbls            Mcf

                                                                     (In thousands)

Total Proved Reserves:
                                    
<S>                                <C>           <C>               <C>           <C>            <C>           <C>
   Beginning of period             22            228               23            221            21            185
   Revisions to previous                               
     estimates                     12            134               22            267            22            240
   Production                     (16)          (171)             (23)         (260)           (20)          (204)
                                  ---           ----              ----         -----           ----          -----
      End of Period                18            191               22            228            23            221
                                   ==            ===              ====          ====            ==            ===

Proved Developed Reserves:
   Beginning of period              22           228                23            221            21            185
                                   ====         ====               ===           ====           ===            ====
   End of period                    18             191              22            228            23            221
                                    ===            ===             ===           ====           ===          =====
</TABLE>
                                  
Certain reserve value  information is provided  directly to partners pursuant to
the Agreement. Accordingly, such information is not presented herein.


<PAGE>


ITEM 9  -  DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

           None.


                                                     PART III


ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

           The  Drilling  Partnership  and  Limited  Partnership  are managed by
           affiliates of HEP and do not have directors or executive officers.


ITEM 11 - EXECUTIVE COMPENSATION

           The  partnerships  pay no salaries or other  direct  remuneration  to
           officers,  directors or key employees of the general  partner or HPI.
           The Limited  Partnership  reimburses the general  partner for general
           and administrative costs incurred on behalf of the partnerships.  See
           Note 2 to the Financial Statements.


ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

           To the knowledge of the general partner,  no person owns of record or
           beneficially more than 5% of the Drilling  Partnership's  outstanding
           units,  other than HEP, the address of which is 4582 S. Ulster Street
           Parkway,   Denver,   Colorado  80237,  and  which  beneficially  owns
           approximately  35.3% of the outstanding units. The general partner of
           HEP is HEPGP Ltd.


ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

           For  information  with  respect to the  Limited  Partnership  and its
           relationships and transactions with the general partner,  see Part I,
           Item 1 and Part II, Item 7.


ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

           a.  Financial Statements and Schedules:
               See Index at Item 8.

           b.  Reports on Form 8-K - None.

           c.  Exhibits:

               3.1 The  General  Partnership  Agreement  and the  Limited  
                   Partnership  Agreement  filed  as an Exhibit to Registration
                   Statement No. 2-89194, are incorporated herein by reference.


<PAGE>


                                                      - 23 -
SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  as amended,  the  Partnerships  have duly caused this report to be
signed on their behalf by the undersigned, thereunto duly authorized.


                                       MAY DRILLING PARTNERSHIP 1984-1
                                       MAY LIMITED PARTNERSHIP 1984-1

                                         By:  EDP OPERATING, LTD.,
                                               General Partner

                                         By:  HEPGP LTD.,
                                               General Partner

                                         By:  HALLWOOD G.P., INC.,
                                               General Partner


                                         By:  /s/William L.Guzzetti
                                              William L. Guzzetti
                                              President, Chief Executive Officer
                                                   and Director


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following  persons on behalf of the  registrant and
in the capacities and on the dates indicated.

<TABLE>
<CAPTION>

            Signature                                           Title                            Date




<S>                                                   <C>                                <C>
/s/Robert S. Pfeiffer                                  Vice President                     February 27,1998
Robert S. Pfeiffer                                     (Principal Accounting Officer)     
</TABLE>