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
  June 30, 2000                            2-92702    (1985-1)
                                            2-92702-01 (1985-2)


                          DYCO 1985 OIL AND GAS PROGRAM
                          (TWO LIMITED PARTNERSHIPS)
            (Exact Name of Registrant as specified in its charter)



                                          41-1498087 (1985-1)
         Minnesota                        41-1498086 (1985-2)
(State or other jurisdiction     (I.R.S. Employer Identification
   of incorporation or                         Number)
     organization)



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



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


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

                     Yes    X             No
                         ------                ------





                                      -1-
<PAGE>





                         PART I. FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

              DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                                 BALANCE SHEETS
                                   (Unaudited)

                                     ASSETS

                                           June 30,   December 31,
                                             2000         1999
                                          ----------  ------------

CURRENT ASSETS:
   Cash and cash equivalents               $ 71,639      $ 68,872
   Accrued oil and gas sales                 80,922        55,595
                                           --------      --------
     Total current assets                  $152,561      $124,467

NET OIL AND GAS PROPERTIES, utilizing
   the full cost method                      91,860        98,289

DEFERRED CHARGE                               9,627         9,627
                                           --------      --------
                                           $254,048      $232,383
                                           ========      ========

                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                        $  5,114      $  5,053
                                           --------      --------
     Total current liabilities             $  5,114      $  5,053

ACCRUED LIABILITY                          $ 33,938      $ 33,938

PARTNERS' CAPITAL:
   General Partner, 41 general
     partner units                         $  2,150      $  1,934
   Limited Partners, issued and
     outstanding, 4,100 Units               212,846       191,458
                                           --------      --------
     Total Partners' capital               $214,996      $193,392
                                           --------      --------
                                           $254,048      $232,383
                                           ========      ========



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




                                      -2-
<PAGE>




              DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                           STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (Unaudited)

                                            2000           1999
                                          --------       --------

REVENUES:
   Oil and gas sales                      $110,263        $76,429
   Interest                                    446            652
                                          --------        -------
                                          $110,709        $77,081

COSTS AND EXPENSES:
   Oil and gas production                 $ 21,884        $22,216
   Depreciation, depletion, and
     amortization of oil and gas
     properties                              1,512          4,537
   General and administrative
     (Note 2)                                9,876         11,388
                                          --------        -------
                                          $ 33,272        $38,141
                                          --------        -------

NET INCOME                                $ 77,437        $38,940
                                          ========        =======
GENERAL PARTNER (1%) - net income         $    774        $   390
                                          ========        =======
LIMITED PARTNERS (99%) - net income       $ 76,663        $38,550
                                          ========        =======
NET INCOME PER UNIT                       $  18.70        $  9.40
                                          ========        =======
UNITS OUTSTANDING                            4,141          4,141
                                          ========        =======



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




                                      -3-
<PAGE>




              DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                           STATEMENTS OF OPERATIONS
                FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (Unaudited)

                                            2000           1999
                                          --------       ---------

REVENUES:
   Oil and gas sales                      $203,742        $129,392
   Interest                                  1,478           1,085
                                          --------        --------
                                          $205,220        $130,477

COSTS AND EXPENSES:
   Oil and gas production                 $ 46,740        $ 40,371
   Depreciation, depletion, and
     amortization of oil and gas
     properties                              6,429          10,226
   General and administrative
     (Note 2)                               26,922          29,528
                                          --------        --------
                                          $ 80,091        $ 80,125
                                          --------        --------

NET INCOME                                $125,129        $ 50,352
                                          ========        ========
GENERAL PARTNER (1%) - net income         $  1,251        $    504
                                          ========        ========
LIMITED PARTNERS (99%) - net income       $123,878        $ 49,848
                                          ========        ========
NET INCOME PER UNIT                       $  30.22        $  12.16
                                          ========        ========
UNITS OUTSTANDING                            4,141           4,141
                                          ========        ========



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




                                      -4-
<PAGE>




              DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                           STATEMENTS OF CASH FLOWS
                FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (Unaudited)


                                           2000            1999
                                         ---------       --------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                             $125,129        $50,352
   Adjustments to reconcile net
     income to net cash provided
     by operating activities:
     Depreciation, depletion, and
       amortization of oil and gas
       properties                            6,429         10,226
     Increase in accrued oil and
       gas sales                         (  25,327)      (  6,207)
     Increase (decrease) in accounts
       payable                                  61       (  1,500)
                                          --------        -------
   Net cash provided by operating
     activities                           $106,292        $52,871
                                          --------        -------

CASH FLOWS FROM INVESTING ACTIVITIES:

   Net cash provided by investing
     activities                           $      -        $     -
                                          --------        -------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                    ($103,525)       $     -
                                          --------        -------
   Net cash used by financing
     activities                          ($103,525)       $     -
                                          --------        -------

NET INCREASE IN CASH AND CASH
   EQUIVALENTS                            $  2,767        $52,871

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                      68,872         31,245
                                          --------        -------
CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                          $ 71,639        $84,116
                                          ========        =======



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




                                      -5-
<PAGE>




              DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                                 BALANCE SHEETS
                                   (Unaudited)

                                     ASSETS

                                            June 30,  December 31,
                                              2000        1999
                                           ---------- ------------

CURRENT ASSETS:
   Cash and cash equivalents                 $23,002     $ 40,962
   Accrued oil and gas sales                  27,117       82,496
                                             -------     --------
     Total current assets                    $50,119     $123,458

NET OIL AND GAS PROPERTIES, utilizing
   the full cost method                       28,047       33,173

DEFERRED CHARGE                               16,256       16,256
                                             -------     --------
                                             $94,422     $172,887
                                             =======     ========

                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                          $ 2,160     $  4,647
                                             -------     --------
     Total current liabilities               $ 2,160     $  4,647

ACCRUED LIABILITY                            $ 3,227     $  3,227

PARTNERS' CAPITAL:
   General Partner, 44 general
     partner units                           $   890     $  1,650
   Limited Partners, issued and
     outstanding, 4,330 Units                 88,145      163,363
                                             -------     --------
     Total Partners' capital                 $89,035     $165,013
                                             -------     --------
                                             $94,422     $172,887
                                             =======     ========


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




                                      -6-
<PAGE>




              DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                           STATEMENTS OF OPERATIONS
               FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (Unaudited)

                                            2000           1999
                                          --------       -------

REVENUES:
   Oil and gas sales                      $ 46,816       $33,139
   Interest                                    581            61
   Gain on sale of oil and gas
     properties                             55,856             -
                                          --------       -------
                                          $103,253       $33,200

COSTS AND EXPENSES:
   Oil and gas production                 $  6,977       $10,769
   Depreciation, depletion, and
     amortization of oil and gas
     properties                                530         1,493
   General and administrative
     (Note 2)                                6,387        10,659
                                          --------       -------
                                          $ 13,894       $22,921
                                          --------       -------

NET INCOME                                $ 89,359       $10,279
                                          ========       =======
GENERAL PARTNER (1%) - net income         $    894       $   103
                                          ========       =======
LIMITED PARTNERS (99%) - net income       $ 88,465       $10,176
                                          ========       =======
NET INCOME PER UNIT                       $  20.43       $  2.35
                                          ========       =======
UNITS OUTSTANDING                            4,374         4,374
                                          ========       =======



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




                                      -7-
<PAGE>




              DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                           STATEMENTS OF OPERATIONS
                FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (Unaudited)

                                            2000           1999
                                          --------       -------

REVENUES:
   Oil and gas sales                      $ 82,918       $58,056
   Interest                                  1,293           291
   Gain on sale of oil and gas
     properties                             55,856             -
                                          --------       -------
                                          $140,067       $58,347

COSTS AND EXPENSES:
   Oil and gas production                 $ 19,585       $29,330
   Depreciation, depletion, and
     amortization of oil and gas
     properties                              1,533         3,501
   General and administrative
     (Note 2)                               19,967        28,336
                                          --------       -------
                                          $ 41,085       $61,167
                                          --------       -------

NET INCOME (LOSS)                         $ 98,982      ($ 2,820)
                                          ========       =======
GENERAL PARTNER (1%) - net
   income (loss)                          $    990      ($    28)
                                          ========       =======
LIMITED PARTNERS (99%) - net
   income (loss)                          $ 97,992      ($ 2,792)
                                          ========       =======
NET INCOME (LOSS) PER UNIT                $  22.63      ($   .64)
                                          ========       =======
UNITS OUTSTANDING                            4,374         4,374
                                          ========       =======


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




                                      -8-
<PAGE>




              DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                           STATEMENTS OF CASH FLOWS
                FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                   (Unaudited)


                                            2000           1999
                                          ---------      --------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                      $ 98,982      ($ 2,820)
   Adjustments to reconcile net income
     (loss) to net cash provided (used)
     by operating activities:
     Depreciation, depletion, and
       amortization of oil and gas
       properties                            1,533         3,501
     Gain on sale of oil and gas
       properties                        (  55,856)            -
     (Increase) decrease in accrued oil
       and gas sales                        55,379      (  6,043)
     Decrease in accounts payable        (   2,487)     (     53)
                                          --------       -------
   Net cash provided (used) by
     operating activities                 $ 97,551      ($ 5,415)
                                          --------       -------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from the sale of oil and
     gas properties                       $ 59,449       $     -
   Additions to oil and gas properties           -      (     12)
                                          --------       -------
   Net cash provided (used) by
     investing activities                 $ 59,449      ($    12)
                                          --------       -------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                    ($174,960)      $     -
                                          --------       -------
   Net cash used by financing
     activities                          ($174,960)      $     -
                                          --------       -------

NET DECREASE IN CASH AND CASH
   EQUIVALENTS                           ($ 17,960)     ($ 5,427)

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                      40,962        26,412
                                          --------       -------
CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                          $ 23,002       $20,985
                                          ========       =======



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



                                      -9-
<PAGE>




              DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
              DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                    CONDENSED NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2000
                                   (Unaudited)


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

      The balance  sheets as of June 30, 2000,  statements of operations for the
      three and six months ended June 30, 2000 and 1999,  and statements of cash
      flows for the six months  ended June 30, 2000 and 1999 have been  prepared
      by Dyco Petroleum  Corporation  ("Dyco"),  the General Partner of the Dyco
      Oil and Gas Program 1985-1 and 1985-2 Limited Partnerships  (individually,
      the  "1985-1  Program" or the  "1985-2  Program",  as the case may be, or,
      collectively, the "Programs"), without audit. In the opinion of management
      all  adjustments   (which  include  only  normal  recurring   adjustments)
      necessary  to present  fairly the  financial  position  at June 30,  2000,
      results of operations for the three and six months ended June 30, 2000 and
      1999, and changes in cash flows for the six months ended June 30, 2000 and
      1999 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 Programs' Annual Report on Form 10-K for
      the year ended December 31, 1999. The results of operations for the period
      ended June 30, 2000 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.  The Programs'  calculation of depreciation,  depletion,  and
      amortization  includes  estimated  future  expenditures  to be incurred in
      developing  proved  reserves and estimated  dismantlement  and abandonment
      costs, net of estimated  salvage values. In the event the unamortized cost
      of oil and gas properties being amortized exceeds the full cost





                                      -10-
<PAGE>




      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 1985-2  Program sold one well during the
      six months ended June 30, 2000 for $59,449 representing  approximately 11%
      of its total  reserves.  The proceeds  from these sales would have reduced
      the net book value of the oil and gas  properties  by 185%,  significantly
      altering   the   1985-2   Program's   capitalized   cost/proved   reserves
      relationship. Accordingly, capitalized costs were reduced by approximately
      11%  and a  gain  on  sale  of oil  and  gas  properties  of  $55,856  was
      recognized.

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


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

      Under the terms of each 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 June 30,  2000 and 1999 the
      1985-1  Program  incurred  such  expenses  totaling  $9,876  and  $11,388,
      respectively,  of which $8,661 and $10,710,  respectively,  were paid each
      period to Dyco and its  affiliates.  During the six months  ended June 30,
      2000 and 1999 the 1985-1 Program  incurred such expenses  totaling $26,922
      and $29,528,  respectively,  of which  $17,322 and $21,420,  respectively,
      were paid each period to Dyco and its affiliates.  During the three months
      ended June 30, 2000 and 1999 the 1985-2  Program  incurred  such  expenses
      totaling  $6,387 and $10,659  respectively,  of which  $5,142 and $10,068,
      respectively, were paid each period to Dyco and its affiliates. During the
      six months ended June 30, 2000 and 1999 the 1985-2  Program  incurred such
      expenses totaling $19,967 and $28,336,  respectively, of which $10,284 and
      $20,136, respectively, were paid each period to Dyco and its affiliates.




                                      -11-
<PAGE>





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







                                      -12-
<PAGE>




ITEM 2.    MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF FINANCIAL  CONDITION  AND
           RESULTS OF OPERATIONS


USE OF FORWARD-LOOKING STATEMENTS AND ESTIMATES
-----------------------------------------------

      This Quarterly Report contains  certain  forward-looking  statements.  The
      words "anticipate",  "believe",  "expect",  "plan", "intend",  "estimate",
      "project", "could", "may" and similar expressions are intended to identify
      forward-looking  statements.  Such statements reflect management's current
      views  with  respect  to future  events and  financial  performance.  This
      Quarterly Report also includes certain information,  which is, or is based
      upon,  estimates  and  assumptions.  Such  estimates and  assumptions  are
      management's  efforts to accurately reflect the condition and operation of
      the Programs.

      Use of  forward-looking  statements and estimates and assumptions  involve
      risks  and  uncertainties  which  include,  but are not  limited  to,  the
      volatility of oil and gas prices, the uncertainty of reserve  information,
      the operating risk associated  with oil and gas properties  (including the
      risk of personal injury,  death,  property  damage,  damage to the well or
      producing  reservoir,  environmental  contamination,  and other  operating
      risks), the prospect of changing tax and regulatory laws, the availability
      and capacity of  processing  and  transportation  facilities,  the general
      economic climate,  the supply and price of foreign imports of oil and gas,
      the level of consumer  product demand,  and the price and  availability of
      alternative  fuels.  Should  one or more of these  risks or  uncertainties
      occur or should  estimates  or  underlying  assumptions  prove  incorrect,
      actual  conditions or results may vary materially and adversely from those
      stated, anticipated, believed, estimated, and otherwise indicated.


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

      Net  proceeds  from the  Programs'  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 Programs' reserves which
      would result in a positive economic impact.




                                      -13-
<PAGE>





      The Programs'  available capital from  subscriptions has been spent on oil
      and gas drilling  activities.  There should be no further material capital
      resource commitments in the future. The Programs have no debt commitments.
      Management  believes that cash for ordinary  operational  purposes will be
      provided by current oil and gas production.

      The 1985-2 Program's Statement of Cash Flows for the six months ended June
      30, 2000 includes  proceeds from the sale of oil and gas properties during
      the second quarter of 2000.  These proceeds were included in the Program's
      cash distributions paid in June 2000.


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

      GENERAL DISCUSSION

      The following  general  discussion  should be read in conjunction with the
      analysis  of results of  operations  provided  below.  The most  important
      variables affecting the Programs' revenues are the prices received for the
      sale of oil and gas and the volumes of oil and gas produced. The Program's
      production is mainly natural gas, so such pricing and volumes are the most
      significant factors.

      Due to the volatility of oil and gas prices,  forecasting future prices is
      subject to great  uncertainty  and  inaccuracy.  Substantially  all of the
      Programs' gas reserves are being sold on the "spot market".  Prices on the
      spot market are subject to wide seasonal and regional pricing fluctuations
      due to the highly competitive nature of the spot market.  Such spot market
      sales are  generally  short-term  in  nature  and are  dependent  upon the
      obtaining of transportation services provided by pipelines. It is likewise
      difficult  to  predict  production  volumes.  However,  oil  and  gas  are
      depleting  assets,  so it can be  expected  that  production  levels  will
      decline over time.  Recent gas prices have been higher than the  Program's
      historical  average.  This is  attributable to the higher prices for crude
      oil, a substitute  fuel in some  markets,  and reduced  production  due to
      lower capital investments in 1998 and 1999.





                                      -14-
<PAGE>





      1985-1 PROGRAM

      THREE MONTHS  ENDED JUNE 30, 2000  COMPARED TO THE THREE MONTHS ENDED JUNE
      30, 1999.

                                       Three Months Ended June 30,
                                       ---------------------------
                                             2000          1999
                                           --------       -------
      Oil and gas sales                    $110,263       $76,429
      Oil and gas production expenses      $ 21,884       $22,216
      Barrels produced                           61           148
      Mcf produced                           32,083        38,363
      Average price/Bbl                    $  27.51       $ 12.58
      Average price/Mcf                    $   3.38       $  1.94

      As shown in the table  above,  total oil and gas sales  increased  $33,834
      (44.3%) for the three  months ended June 30, 2000 as compared to the three
      months ended June 30, 1999. Of this  increase,  approximately  $46,000 was
      related to an increase in the average price of gas sold,  partially offset
      by a decrease of approximately $12,000 related to a decrease in volumes of
      gas sold.  Volumes of oil and gas sold decreased 87 barrels and 6,280 Mcf,
      respectively,  for the three months ended June 30, 2000 as compared to the
      three months ended June 30, 1999.  The decrease in volumes of gas sold was
      primarily  due to (i) a  decrease  in  production  on one  well due to the
      shutting-in  of the well during the three  months  ended June 30, 2000 and
      (ii) normal declines in production.  Average oil and gas prices  increased
      to $27.51 per barrel and $3.38 per Mcf, respectively, for the three months
      ended  June  30,   2000  from   $12.58  per  barrel  and  $1.94  per  Mcf,
      respectively, for the three months ended June 30, 1999.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  decreased  $332 (1.5%) for the three months ended June
      30,  2000 as  compared  to the three  months  ended  June 30,  1999.  As a
      percentage of oil and gas sales, these expenses decreased to 19.8% for the
      three  months  ended June 30, 2000 from 29.1% for the three  months  ended
      June 30, 1999. This percentage decrease was primarily due to the increases
      in the average prices of oil and gas sold.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      decreased  $3,025  (66.7%)  for the three  months  ended June 30,  2000 as
      compared  to the three  months  ended June 30,  1999.  This  decrease  was
      primarily  due to (i) an upward  revision in the estimate of remaining gas
      reserves at December 31, 1999 and (ii) increases in the oil and gas prices
      used in the  valuation of remaining  reserves at June 30, 2000 as compared
      to June 30,  1999.  As a  percentage  of oil and gas sales,  this  expense
      decreased to 1.4% for the




                                      -15-
<PAGE>




      three months ended June 30, 2000 from 5.9% for the three months ended June
      30, 1999. This  percentage  decrease was primarily due to the increases in
      the  average  prices  of oil  and gas  sold  and the  dollar  decrease  in
      depreciation, depletion, and amortization.

      General and administrative expenses decreased $1,512 (13.3%) for the three
      months  ended June 30, 2000 as compared to the three months ended June 30,
      1999.  This decrease was  primarily due to a decrease in indirect  general
      and  administrative  expenses  reimbursed  to the  General  Partner.  As a
      percentage of oil and gas sales,  these expenses decreased to 9.0% for the
      three  months  ended June 30, 2000 from 14.9% for the three  months  ended
      June 30, 1999. This percentage  decrease was primarily due to the increase
      in oil and gas sales.

      SIX MONTHS  ENDED JUNE 30, 2000  COMPARED TO THE SIX MONTHS ENDED JUNE 30,
      1999.

                                         Six Months Ended June 30,
                                         -------------------------
                                             2000          1999
                                           --------      --------
      Oil and gas sales                    $203,742      $129,392
      Oil and gas production expenses      $ 46,740      $ 40,371
      Barrels produced                           86           199
      Mcf produced                           72,018        72,302
      Average price/Bbl                    $  27.87      $  12.11
      Average price/Mcf                    $   2.80      $   1.76

      As shown in the table  above,  total oil and gas sales  increased  $74,350
      (57.5%)  for the six months  ended June 30,  2000 as  compared  to the six
      months ended June 30, 1999.  This  increase  was  primarily  related to an
      increase  in the  average  price of gas sold.  Volumes of oil and gas sold
      decreased 113 barrels and 284 Mcf, respectively,  for the six months ended
      June 30, 2000 as compared to the six months ended June 30,  1999.  Average
      oil and gas  prices  increased  to $27.87  per  barrel  and $2.80 per Mcf,
      respectively,  for the six  months  ended  June 30,  2000 from  $12.11 per
      barrel and $1.76 per Mcf, respectively,  for the six months ended June 30,
      1999.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased $6,369 (15.8%) for the six months ended June
      30, 2000 as compared to the six months ended June 30, 1999.  This increase
      was primarily due to (i) an increase in production  taxes  associated with
      the increase in oil and gas sales and (ii) workover  expenses  incurred on
      one well during the six months ended June 30, 2000 in order to improve the
      recovery of reserves. As a percentage of oil and gas sales, these expenses
      decreased  to 22.9% for the six months  ended June 30, 2000 from 31.2% for
      the six months ended June 30, 1999. This percentage decrease




                                      -16-
<PAGE>




      was primarily  due to the increases in the average  prices of oil and gas
      sold.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      decreased  $3,797  (37.1%)  for the six  months  ended  June  30,  2000 as
      compared  to the six  months  ended  June  30,  1999.  This  decrease  was
      primarily  due to (i) an upward  revision in the estimate of remaining gas
      reserves at December 31, 1999 and (ii) increases in the oil and gas prices
      used in the  valuation of remaining  reserves at June 30, 2000 as compared
      to June 30,  1999.  As a  percentage  of oil and gas sales,  this  expense
      decreased to 3.2% for the six months ended June 30, 2000 from 7.9% for the
      six months ended June 30, 1999. This percentage decrease was primarily due
      to the increases in the average  prices of oil and gas sold and the dollar
      decrease in depreciation, depletion, and amortization.

      General and  administrative  expenses  decreased $2,606 (8.8%) for the six
      months  ended June 30, 2000 as  compared to the six months  ended June 30,
      1999. As a percentage of oil and gas sales,  these  expenses  decreased to
      13.2% for the six months ended June 30, 2000 from 22.8% for the six months
      ended June 30, 1999.  This  percentage  decrease was  primarily due to the
      increase in oil and gas sales.

      1985-2 PROGRAM

      THREE MONTHS  ENDED JUNE 30, 2000  COMPARED TO THE THREE MONTHS ENDED JUNE
      30, 1999.

                                       Three Months Ended June 30,
                                       ---------------------------
                                             2000          1999
                                            -------       -------
      Oil and gas sales                     $46,816       $33,139
      Oil and gas production expenses       $ 6,977       $10,769
      Barrels produced                          492           989
      Mcf produced                            9,992         9,706
      Average price/Bbl                     $ 29.79       $ 14.24
      Average price/Mcf                     $  3.22       $  1.96

      As shown in the table  above,  total oil and gas sales  increased  $13,677
      (41.3%) for the three  months ended June 30, 2000 as compared to the three
      months ended June 30, 1999.  Of this  increase,  approximately  $8,000 and
      $13,000, respectively,  were related to increases in the average prices of
      oil and gas sold,  which  amounts were  partially  offset by a decrease of
      approximately $7,000 related to a decrease in volumes of oil sold. Volumes
      of oil sold decreased 497 barrels, while volumes of gas sold increased 286
      Mcf for the three  months  ended June 30,  2000 as  compared  to the three
      months  ended  June 30,  1999.  The  decrease  in  volumes of oil sold was
      primarily due to (i) the sale of one




                                      -17-
<PAGE>




      significant  well during the three months ended June 30, 2000 and (ii) the
      release of stored  production  on one well during the three  months  ended
      June 30,  1999 due to  increased  oil  prices.  Average oil and gas prices
      increased  to $29.79 per barrel and $3.22 per Mcf,  respectively,  for the
      three months ended June 30, 2000 from $14.24 per barrel and $1.96 per Mcf,
      respectively, for the three months ended June 30, 1999.

      The 1985-2  Program  sold one well during the three  months ended June 30,
      2000 for $59,449 representing approximately 11% of its total reserves. The
      proceeds  from this sale would have  reduced the net book value of the oil
      and gas properties by 185%,  significantly  altering the 1985-2  Program's
      capitalized  cost/proved reserves relationship.  Accordingly,  capitalized
      costs were reduced by approximately  11% and a gain on sale of oil and gas
      properties of $55,856 was recognized. No such sales occurred during 1999.

      Oil and gas production  expenses  (including lease operating  expenses and
      production taxes) decreased $3,792 (35.2%) for the three months ended June
      30,  2000 as  compared  to the three  months  ended  June 30,  1999.  This
      decrease was primarily due to (i) the sale of one significant  well during
      the three  months  ended June 30,  2000 and (ii) a negative  prior  period
      lease operating expense adjustment made by the operator on one well during
      the three  months  ended June 30,  2000.  As a  percentage  of oil and gas
      sales,  these expenses  decreased to 14.9% for the three months ended June
      30,  2000 from  32.5% for the  three  months  ended  June 30,  1999.  This
      percentage  decrease  was  primarily  due to the  increases in the average
      prices  of oil  and  gas  sold  and  the  dollar  decrease  in oil and gas
      production expenses.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      decreased  $963  (64.5%)  for the  three  months  ended  June 30,  2000 as
      compared  to the three  months  ended June 30,  1999.  This  decrease  was
      primarily  due to (i) upward  revisions in the  estimates of remaining oil
      and gas  reserves at December  31, 1999 and (ii)  increases  in the prices
      used in the  valuation of remaining  oil and gas reserves at June 30, 2000
      as compared to June 30, 1999. As a percentage  of oil and gas sales,  this
      expense  decreased  to 1.1% for the three  months ended June 30, 2000 from
      4.5% for the three months ended June 30, 1999.  This  percentage  decrease
      was primarily  due to the  increases in the average  prices of oil and gas
      sold and the dollar decrease in depreciation, depletion, and amortization.




                                      -18-
<PAGE>





      General and administrative expenses decreased $4,272 (40.1%) for the three
      months  ended June 30, 2000 as compared to the three months ended June 30,
      1999.  This decrease was  primarily due to a decrease in indirect  general
      and  administrative  expenses  reimbursed  to the  General  Partner.  As a
      percentage of oil and gas sales, these expenses decreased to 13.6% for the
      three  months  ended June 30, 2000 from 32.2% for the three  months  ended
      June 30, 1999. This percentage  decrease was primarily due to the increase
      in oil and gas sales and the dollar decrease in general and administrative
      expenses.

      SIX MONTHS  ENDED JUNE 30, 2000  COMPARED TO THE SIX MONTHS ENDED JUNE 30,
      1999.

                                      Six months Ended June 30,
                                      ----------------------------
                                          2000            1999
                                         -------        -------
      Oil and gas sales                  $82,918        $58,056
      Oil and gas production expenses    $19,585        $29,330
      Barrels produced                       977          1,557
      Mcf produced                        19,927         21,257
      Average price/Bbl                  $ 28.38        $ 12.97
      Average price/Mcf                  $  2.77        $  1.78

      As shown in the table  above,  total oil and gas sales  increased  $24,862
      (42.8%)  for the six months  ended June 30,  2000 as  compared  to the six
      months ended June 30, 1999. Of this  increase,  approximately  $15,000 and
      $19,000, respectively,  were related to increases in the average prices of
      oil and gas sold,  which  amounts were  partially  offset by a decrease of
      approximately $8,000 related to a decrease in volumes of oil sold. Volumes
      of oil and gas sold decreased 580 barrels and 1,330 Mcf, respectively, for
      the six months  ended June 30, 2000 as  compared  to the six months  ended
      June 30, 1999.  The decrease in volumes of oil sold was  primarily  due to
      (i) the sale of one significant  well during the six months ended June 30,
      2000 and (ii) the release of stored  production on one well during the six
      months  ended June 30, 1999 due to increased  oil prices.  Average oil and
      gas prices increased to $28.38 per barrel and $2.77 per Mcf, respectively,
      for the six months  ended June 30,  2000 from  $12.97 per barrel and $1.78
      per Mcf, respectively, for the six months ended June 30, 1999.




                                      -19-
<PAGE>





      The 1985-2 Program sold one well during the six months ended June 30, 2000
      for $59,449  representing  approximately  11% of its total  reserves.  The
      proceeds  from this sale would have  reduced the net book value of the oil
      and gas properties by 185%,  significantly  altering the 1985-2  Program's
      capitalized  cost/proved reserves relationship.  Accordingly,  capitalized
      costs were reduced by approximately  11% and a gain on sale of oil and gas
      properties of $55,856 was recognized. No such sales occurred during 1999.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  decreased $9,745 (33.2%) for the six months ended June
      30, 2000 as compared to the six months ended June 30, 1999.  This decrease
      was primarily due to (i) a decrease in repair and maintenance expenses and
      compression expenses on one well during the six months ended June 30, 2000
      as compared to the six months ended June 30, 1999 and (ii) the sale of one
      significant  well  during  the  six  months  ended  June  30,  2000.  As a
      percentage of oil and gas sales, these expenses decreased to 23.6% for the
      six months  ended June 30,  2000 from 50.5% for the six months  ended June
      30, 1999. This  percentage  decrease was primarily due to the increases in
      the average prices of oil and gas sold and the dollar  decrease in oil and
      gas production expenses.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      decreased  $1,968  (56.2%)  for the six  months  ended  June  30,  2000 as
      compared  to the six  months  ended  June  30,  1999.  This  decrease  was
      primarily  due to (i) upward  revisions in the  estimates of remaining oil
      and gas  reserves at December  31, 1999 and (ii)  increases  in the prices
      used in the  valuation of remaining  oil and gas reserves at June 30, 2000
      as compared to June 30, 1999. As a percentage  of oil and gas sales,  this
      expense decreased to 1.8% for the six months ended June 30, 2000 from 6.0%
      for the six months  ended June 30,  1999.  This  percentage  decrease  was
      primarily due to the  increases in the average  prices of oil and gas sold
      and the dollar decrease in depreciation, depletion, and amortization.

      General and  administrative  expenses decreased $8,369 (29.5%) for the six
      months  ended June 30, 2000 as  compared to the six months  ended June 30,
      1999.  This decrease was  primarily due to a decrease in indirect  general
      and  administrative  expenses  reimbursed  to the  General  Partner.  As a
      percentage of oil and gas sales, these expenses decreased to 24.1% for the
      six months  ended June 30,  2000 from 48.8% for the six months  ended June
      30, 1999.  This  percentage  decrease was primarily due to the increase in
      oil and gas sales and the dollar  decrease in general  and  administrative
      expenses.






                                      -20-
<PAGE>




ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
           RISK.

           The Programs do not hold any market risk sensitive instruments.





                                      -21-
<PAGE>




                          PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits

27.1  Financial Data Schedule containing summary financial information extracted
      from the 1985-1 Program's financial statements as of June 30, 2000 and for
      the six months ended June 30, 2000, filed herewith.

27.2  Financial Data Schedule containing summary financial information extracted
      from the 1985-2 Program's financial statements as of June 30, 2000 and for
      the six months ended June 30, 2000, filed herewith.

      All other exhibits are omitted as inapplicable.

(b)   Reports on Form 8-K.

      None.





                                      -22-
<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 1985-1 LIMITED
                          PARTNERSHIP
                          DYCO OIL AND GAS PROGRAM 1985-2 LIMITED
                          PARTNERSHIP

                                  (Registrant)

                               BY:  DYCO PETROLEUM CORPORATION

                                    General Partner


Date:  August 1, 2000         By:        /s/Dennis R. Neill
                                  -------------------------------
                                        (Signature)
                                        Dennis R. Neill
                                        President


Date:  August 1, 2000         By:        /s/Patrick M. Hall
                                  -------------------------------
                                        (Signature)
                                        Patrick M. Hall
                                        Chief Financial Officer



                                      -23-
<PAGE>



                                INDEX TO EXHIBITS


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

27.1       Financial  Data Schedule  containing  summary  financial  information
           extracted   from  the  Dyco  Oil  and  Gas  Program   1985-1  Limited
           Partnership's  financial  statements  as of June 30, 2000 and for the
           six months ended June 30, 2000, filed herewith.

27.2       Financial  Data Schedule  containing  summary  financial  information
           extracted   from  the  Dyco  Oil  and  Gas  Program   1985-2  Limited
           Partnership's  financial  statements  as of June 30, 2000 and for the
           six months ended June 30, 2000, filed herewith.

           All other exhibits are omitted as inapplicable.



                                      -24-