SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549



                                  FORM 10-Q


               Quarterly Report Pursuant to Section 13 or 15(d)
                    of the Securities Exchange Act of 1934


For the quarter ended                     Commission File Number
  September 30, 1998                        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

                                             September 30,     December 31,
                                                 1998             1997
                                             -------------     ------------

CURRENT ASSETS:
   Cash and cash equivalents                     $ 98,715         $ 43,585
   Accrued oil and gas sales                       40,521           83,721
                                                 --------         --------
      Total current assets                       $139,236         $127,306

NET OIL AND GAS PROPERTIES, utilizing
   the full cost method                           114,542          141,913

DEFERRED CHARGE                                    14,434           14,434
                                                 --------         --------
                                                 $268,212         $283,653
                                                 ========         ========

                      LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                              $  6,937         $  6,485
   Gas imbalance payable                           13,160           13,160
                                                 --------         --------
      Total current liabilities                  $ 20,097         $ 19,645

ACCRUED LIABILITY                                $ 23,955         $ 23,955

PARTNERS' CAPITAL:
   General Partner, issued and
      outstanding, 41 units                      $  2,241         $  2,400
   Limited Partners, issued and
      outstanding, 4,100 units                    221,919          237,653
                                                 --------         --------
      Total Partners' capital                    $224,160         $240,053
                                                 --------         --------
                                                 $268,212         $283,653
                                                 ========         ========


            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 SEPTEMBER 30, 1998 AND 1997
                                 (Unaudited)

                                                  1998              1997
                                                --------          --------

REVENUES:
   Oil and gas sales                             $63,977           $80,855
   Interest                                          832               577
                                                 -------           -------
                                                 $64,809           $81,432

COSTS AND EXPENSES:
   Oil and gas production                        $26,020           $26,729
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                  10,868             5,486
   General and administrative
      (Note 2)                                    12,106            12,898
                                                 -------           -------
                                                 $48,994           $45,113
                                                 -------           -------

NET INCOME                                       $15,815           $36,319
                                                 =======           =======
GENERAL PARTNER (1%) - net income                $   158           $   363
                                                 =======           =======
LIMITED PARTNERS (99%) - net income              $15,657           $35,956
                                                 =======           =======
NET INCOME PER UNIT                              $  3.82           $  8.77
                                                 =======           =======
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 NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                                 (Unaudited)

                                                  1998              1997
                                                --------          --------

REVENUES:
   Oil and gas sales                            $232,999          $318,201
   Interest                                        1,953             2,502
                                                --------          --------
                                                $234,952          $320,703

COSTS AND EXPENSES:
   Oil and gas production                       $ 77,816          $ 65,079
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                  27,371            35,160
   General and administrative
      (Note 2)                                    42,133            45,590
                                                --------          --------
                                                $147,320          $145,829
                                                --------          --------

NET INCOME                                      $ 87,632          $174,874
                                                ========          ========
GENERAL PARTNER (1%) - net income               $    876          $  1,749
                                                ========          ========
LIMITED PARTNERS (99%) - net income             $ 86,756          $173,125
                                                ========          ========
NET INCOME PER UNIT                             $  21.16          $  42.23
                                                ========          ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                                 (Unaudited)


                                                  1998              1997
                                               ----------         --------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                   $ 87,632          $174,874
   Adjustments to reconcile net
      income to net cash provided
      by operating activities:
      Depreciation, depletion, and
        amortization of oil and gas
        properties                                27,371            35,160
      Decrease in accrued oil and
        gas sales                                 43,200            32,553
      Increase (decrease) in accounts
        payable                                      452         (     452)
                                                --------          --------
      Net cash provided by operating
        activities                              $158,655          $242,135
                                                --------          --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from the sale of oil and
      gas properties                            $      -          $    935
                                                --------          --------
   Net cash provided by investing
      activities                                $      -          $    935
                                                --------          --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                          ($103,525)        ($248,460)
                                                --------          --------
   Net cash used by financing
      activities                               ($103,525)        ($248,460)
                                                --------          --------

NET INCREASE (DECREASE) IN CASH AND
   CASH EQUIVALENTS                             $ 55,130         ($  5,390)

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                            43,585            86,724
                                                --------          --------
CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                $ 98,715          $ 81,334
                                                ========          ========


            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

                                               September 30,     December 31,
                                                    1998              1997
                                               -------------     ------------

CURRENT ASSETS:
   Cash and cash equivalents                     $  9,107         $ 68,271
   Accrued oil and gas sales                       16,668           31,074
                                                 --------         --------
      Total current assets                       $ 25,775         $ 99,345

NET OIL AND GAS PROPERTIES, utilizing
   the full cost method                            40,397           53,942

DEFERRED CHARGE                                    48,160           48,160
                                                 --------         --------
                                                 $114,332         $201,447
                                                 ========         ========

                      LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                              $  5,279         $  2,718
                                                 --------         --------
      Total current liabilities                  $  5,279         $  2,718

ACCRUED LIABILITY                                $  7,515         $  7,515

PARTNERS' CAPITAL:
   General Partner, issued and
      outstanding, 44 units                      $  1,015         $  1,912
   Limited Partners, issued and
      outstanding, 4,330 units                    100,523          189,302
                                                 --------         --------
      Total Partners' capital                    $101,538         $191,214
                                                 --------         --------
                                                 $114,332         $201,447
                                                 ========         ========

            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 SEPTEMBER 30, 1998 AND 1997
                                 (Unaudited)

                                                  1998              1997
                                                --------          --------

REVENUES:
   Oil and gas sales                             $29,063          $47,614
   Interest                                           26              259
                                                 -------          -------
                                                 $29,089          $47,873

COSTS AND EXPENSES:
   Oil and gas production                        $19,607          $19,667
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                   2,997            2,330
   General and administrative
      (Note 2)                                    11,479           12,379
                                                 -------          -------
                                                 $34,083          $34,376
                                                 -------          -------

NET INCOME (LOSS)                               ($ 4,994)         $13,497
                                                 =======          =======
GENERAL PARTNER (1%) - net
   income (loss)                                ($    50)         $   135
                                                 =======          =======
LIMITED PARTNERS (99%) - net
   income (loss)                                ($ 4,944)         $13,362
                                                 =======          =======
NET INCOME (LOSS) PER UNIT                      ($  1.14)         $  3.09
                                                 =======          =======
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 NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                                 (Unaudited)

                                                  1998              1997
                                                --------          --------

REVENUES:
   Oil and gas sales                            $ 99,990          $141,246
   Interest                                        1,780             1,199
                                                --------          --------
                                                $101,770          $142,445

COSTS AND EXPENSES:
   Oil and gas production                       $ 55,377          $ 42,167
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                   7,884             8,681
   General and administrative
      (Note 2)                                    40,705            44,397
                                                --------          --------
                                                $103,966          $ 95,245
                                                --------          --------

NET INCOME (LOSS)                              ($  2,196)         $ 47,200
                                                ========          ========
GENERAL PARTNER (1%) - net
   income (loss)                               ($     22)         $    472
                                                ========          ========
LIMITED PARTNERS (99%) - net
   income (loss)                               ($  2,174)         $ 46,728
                                                ========          ========
NET INCOME (LOSS) PER UNIT                     ($    .50)         $  10.79
                                                ========          ========
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 NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
                                 (Unaudited)


                                                  1998              1997
                                                ---------         --------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income (loss)                            ($ 2,196)         $ 47,200
   Adjustments to reconcile net income
      (loss) to net cash provided by
      operating activities:
      Depreciation, depletion, and
        amortization of oil and gas
        properties                                 7,884             8,681
      Decrease in accrued oil and
        gas sales                                 14,406            14,007
      Increase (decrease) in accounts
        payable                                    2,561         (   1,554)
                                                 -------          --------
      Net cash provided by operating
        activities                               $22,655          $ 68,334
                                                 -------          --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from the sale of oil and
      gas properties                             $ 5,661          $  1,110
                                                 -------          --------
   Net cash provided by investing
      activities                                 $ 5,661          $  1,110
                                                 -------          --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                           ($87,480)        ($109,350)
                                                 -------          --------
   Net cash used by financing
      activities                                ($87,480)        ($109,350)
                                                 -------          --------

NET DECREASE IN CASH AND CASH
   EQUIVALENTS                                  ($59,164)        ($ 39,906)

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                            68,271            86,273
                                                 -------          --------
CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                 $ 9,107          $ 46,367
                                                 =======          ========

            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
                              SEPTEMBER 30, 1998
                                  (Unaudited)


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

      The balance sheets as of September 30, 1998,  statements of operations for
      the  three  and  nine  months  ended  September  30,  1998 and  1997,  and
      statements of cash flows for the nine months ended  September 30, 1998 and
      1997  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 September 30, 1998, results of operations for the three and nine months
      ended  September 30, 1998 and 1997, and changes in cash flows for the nine
      months ended September 30, 1998 and 1997 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, 1997. The results of operations for the period
      ended September 30, 1998 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 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 September 30, 1998 and 1997 the
      1985-1  Program  incurred  such  expenses  totaling  $12,106 and  $12,898,
      respectively,  of which  $10,710  was  paid  each  period  to Dyco and its
      affiliates.  During the nine months ended  September 30, 1998 and 1997 the
      1985-1  Program  incurred  such  expenses  totaling  $42,133 and  $45,590,
      respectively,  of which  $32,130  was  paid  each  period  to Dyco and its
      affiliates.  During the three months ended September 30, 1998 and 1997 the
      1985-2  Program  incurred  such  expenses  totaling  $11,479 and  $12,379,
      respectively,  of which  $10,068  was  paid  each  period  to Dyco and its
      affiliates.  During the nine months ended  September 30, 1998 and 1997 the
      1985-2  Program  incurred  such  expenses  totaling  $40,705 and  $44,397,
      respectively,  of which  $30,204  was  paid  each  period  to Dyco and its
      affiliates.

      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.





                                       11
<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.




                                       12
<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.
      Cash for  operational  purposes  will be  provided  by current oil and gas
      production.

      The 1985-2  Program's  Statement  of Cash Flows for the nine months  ended
      September  30,  1998  includes  proceeds  from  the  sale  of oil  and gas
      properties  during the first quarter of 1998. These proceeds were included
      in the  1985-2  Program's  cash  distributions  paid in June  1998.  It is
      possible  that the 1985-2  Program's  repurchase  values  and future  cash
      distributions  could  decline  as a  result  of the  disposition  of these
      properties.  On the other hand, the General Partner believes there will be
      beneficial   operating   efficiencies  related  to  the  1985-2  Program's
      remaining  properties.  This  is  primarily  due  to  the  fact  that  the
      properties  sold  generally  bore a higher ratio of operating  expenses as
      compared to reserves than the 1985-2 Program's remaining properties.


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

      GENERAL DISCUSSION

      The following  general  discussion  should be read in conjunction with the
      analysis  of results of  operations  provided  below.  The most  important
      variable  affecting the Programs'  revenues is the prices received for the
      sale  of  oil  and  gas.  Predicting  future  prices  is  very  difficult.
      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. In addition, crude oil prices are at or near their lowest level
      in the past  decade  due  primarily  to the  global  surplus of crude oil.
      Management is unable to predict whether future oil and gas prices will (i)
      stabilize, (ii) increase, or (iii) decrease.




                                       13
<PAGE>



      1985-1 PROGRAM

      THREE  MONTHS  ENDED  SEPTEMBER  30, 1998 AS COMPARED TO THE THREE  MONTHS
      ENDED SEPTEMBER 30, 1997.

                                               Three Months Ended September 30,
                                               --------------------------------
                                                   1998             1997
                                                  -------          -------
      Oil and gas sales                           $63,977          $80,855
      Oil and gas production expenses             $26,020          $26,729
      Barrels produced                                 72               73
      Mcf produced                                 33,765           39,677
      Average price/Bbl                           $ 12.68          $ 16.97
      Average price/Mcf                           $  1.87          $  2.01

      As shown in the table  above,  total oil and gas sales  decreased  $16,878
      (20.9%) for the three months ended  September  30, 1998 as compared to the
      three months ended  September  30, 1997. Of this  decrease,  approximately
      $12,000  was  related  to a  decrease  in  the  volumes  of gas  sold  and
      approximately $5,000 was related to a decrease in the average price of gas
      sold.  Volumes  of oil and gas sold  decreased  1 barrel  and  5,912  Mcf,
      respectively, for the three months ended September 30, 1998 as compared to
      the three months ended  September 30, 1997. The decrease in the volumes of
      gas sold  was  primarily  due to  normal  declines  in  production  due to
      diminishing  gas reserves on two  significant  wells.  Average oil and gas
      prices decreased to $12.68 per barrel and $1.87 per Mcf, respectively, for
      the three months ended September 30, 1998 from $16.97 per barrel and $2.01
      per Mcf, respectively, for the three months ended September 30, 1997.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  decreased  $709  (2.7%)  for the  three  months  ended
      September  30, 1998 as compared to the three  months ended  September  30,
      1997. The decrease resulted  primarily from a decrease in production taxes
      associated  with the  decrease  in oil and gas sales.  This  decrease  was
      partially  offset by  workover  expenses  incurred  on one well during the
      three  months  ended  September  30, 1998 in order to improve  recovery of
      reserves and increases in repair and maintenance expenses on two wells for
      the three months ended  September 30, 1998 as compared to the three months
      ended  September  30, 1997.  As a percentage  of oil and gas sales,  these
      expenses  increased to 40.7% for the three months ended September 30, 1998
      from 33.1% for the three months ended  September 30, 1997. This percentage
      increase was  primarily  due to the decrease in the average  prices of oil
      and gas sold during the three months ended  September 30, 1998 as compared
      to the three months ended September 30, 1997.




                                       14
<PAGE>



      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      increased  $5,382 (98.1%) for the three months ended September 30, 1998 as
      compared to the three  months ended  September  30,  1997.  This  increase
      resulted  primarily  from  decreases in the oil and gas prices used in the
      valuation of reserves at September  30, 1998 as compared to September  30,
      1997.  As a percentage  of oil and gas sales,  this  expense  increased to
      17.0% for the three  months  ended  September  30,  1998 from 6.8% for the
      three  months  ended  September  30, 1997.  This  percentage  increase was
      primarily  due to the dollar  increase  in  depreciation,  depletion,  and
      amortization.

      General and  administrative  expenses  decreased $792 (6.1%) for the three
      months  ended  September  30, 1998 as compared to the three  months  ended
      September 30, 1997. As a percentage of oil and gas sales,  these  expenses
      increased  to 18.9% for the three  months  ended  September  30, 1998 from
      16.0% for the three months ended  September  30, 1997.  This  increase was
      primarily due to the decrease in oil and gas sales.

      NINE MONTHS ENDED  SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
      SEPTEMBER 30, 1997.

                                                Nine Months Ended September 30,
                                                -------------------------------
                                                     1998           1997
                                                   --------       --------
      Oil and gas sales                            $232,999       $318,201
      Oil and gas production expenses              $ 77,816       $ 65,079
      Barrels produced                                  224            411
      Mcf produced                                  119,538        159,197
      Average price/Bbl                            $  13.51       $  17.50
      Average price/Mcf                            $   1.92       $   2.16

      As shown in the table  above,  total oil and gas sales  decreased  $85,202
      (26.8%) for the nine months  ended  September  30, 1998 as compared to the
      nine months ended  September  30, 1997.  Of this  decrease,  approximately
      $86,000  was  related  to a  decrease  in  the  volumes  of gas  sold  and
      approximately  $28,000 was  related to a decrease in the average  price of
      gas  sold,  which  decreases  were  partially  offset  by an  increase  of
      approximately $32,000 related to a refund by the 1985-1 Program in 1997 of
      a prior oil overpayment. Volumes of oil and gas sold decreased 187 barrels
      and 39,659 Mcf, respectively, for the nine months ended September 30, 1998
      as compared to the nine months ended  September 30, 1997.  The decrease in
      the volumes of gas sold was primarily due to positive  prior period volume
      adjustments  made by  purchasers on two wells during the nine months ended
      September 30, 1997 and normal  declines in production  due to  diminishing
      gas  reserves  on two  significant  wells.  Average  oil  and  gas  prices
      decreased to $13.51 per barrel and $1.92 per Mcf, respectively, for the



                                       15
<PAGE>



      nine months ended  September 30, 1998 from $17.50 per barrel and $2.16 per
      Mcf, respectively, for the nine months ended September 30, 1997.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased  $12,737  (19.6%) for the nine months  ended
      September  30, 1998 as compared to the nine  months  ended  September  30,
      1997.  This  increase  resulted  primarily  from credits  related to prior
      period  lease  operating  expenses  received  during the nine months ended
      September 30, 1997 from the operators of two sold wells. This increase was
      partially  offset by a decrease in production  taxes  associated  with the
      decrease in oil and gas sales. As a percentage of oil and gas sales, these
      expenses  increased to 33.4% for the nine months ended  September 30, 1998
      from 20.5% for the nine months ended  September 30, 1997.  This percentage
      increase was primarily  due to the decreases in the average  prices of oil
      and gas sold during the nine months ended  September  30, 1998 as compared
      to the nine months ended September 30, 1997 and the dollar increase in the
      oil and gas production expenses.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      decreased  $7,789 (22.2%) for the nine months ended  September 30, 1998 as
      compared  to the nine months  ended  September  30,  1997.  This  decrease
      resulted  primarily  from the  decreases in volumes of gas sold during the
      nine months ended  September 30, 1998 as compared to the nine months ended
      September 30, 1997 and  significant  upward  revisions in the estimates of
      remaining  oil and gas reserves at December 31,  1997.  This  decrease was
      partially   offset  by  an  increase  in  depreciation,   depletion,   and
      amortization  which  resulted  primarily from decreases in the oil and gas
      prices used in the valuation of reserves at September 30, 1998 as compared
      to  September  30,  1997.  As a  percentage  of oil and gas  sales,  these
      expenses remained  relatively  constant at 11.7% for the nine months ended
      September 30, 1998 and 11.0% for the nine months ended September 30, 1997.

      General and  administrative  expenses decreased $3,457 (7.6%) for the nine
      months  ended  September  30, 1998 as  compared  to the nine months  ended
      September 30, 1997. As a percentage of oil and gas sales,  these  expenses
      increased to 18.1% for the nine months ended September 30, 1998 from 14.3%
      for the nine months ended September 30, 1997. This percentage increase was
      primarily due to the decrease in oil and gas sales.



                                       16
<PAGE>



      1985-2 PROGRAM

      THREE  MONTHS  ENDED  SEPTEMBER  30, 1998 AS COMPARED TO THE THREE  MONTHS
      ENDED SEPTEMBER 30, 1997.

                                              Three Months Ended September 30,
                                              --------------------------------
                                                1998              1997
                                               -------           -------
      Oil and gas sales                        $29,063           $47,614
      Oil and gas production expenses          $19,607           $19,667
      Barrels produced                             397               789
      Mcf produced                              12,237            15,139
      Average price/Bbl                        $ 12.10           $ 18.53
      Average price/Mcf                        $  1.98           $  2.18

      As shown in the table  above,  total oil and gas sales  decreased  $18,551
      (39.0%) for the three months ended  September  30, 1998 as compared to the
      three months ended  September  30, 1997. Of this  decrease,  approximately
      $7,000 and $6,000,  respectively,  were related to decreases in volumes of
      oil and gas sold and approximately $3,000 and $2,000,  respectively,  were
      related to decreases in the average prices of oil and gas sold. Volumes of
      oil and gas sold  decreased 392 barrels and 2,902 Mcf,  respectively,  for
      the three months ended  September 30, 1998 as compared to the three months
      ended September 30, 1997. The decrease in the volumes of oil sold resulted
      primarily from the curtailment of oil sales on one significant well due to
      low oil prices.  The  decrease in volumes of gas sold  resulted  primarily
      from the 1985-2 Program  receiving a decreased  percentage of sales on one
      well  during  the  three  months  ended  September  30,  1998  due  to  an
      overproduced gas balancing  position and normal declines in production due
      to diminishing  gas reserves on several wells.  Average oil and gas prices
      decreased  to $12.10 per barrel and $1.98 per Mcf,  respectively,  for the
      three months ended September 30, 1998 from $18.53 per barrel and $2.18 per
      Mcf, respectively, for the three months ended September 30, 1997.

      Oil and gas production  expenses  (including lease operating  expenses and
      production taxes) remained  relatively constant for the three months ended
      September  30, 1998 as compared to the three  months ended  September  30,
      1997.  Any  decreases  in these  expenses  that were  consistent  with the
      decrease  in oil and gas sales  were  substantially  offset by a  positive
      prior period  production tax adjustment  made by the purchaser on one well
      during the three  months  ended  September  30, 1998 and a positive  lease
      operating  expense  adjustment made by the operator on one well during the
      three months ended  September  30,  1998.  As a percentage  of oil and gas
      sales,  these  expenses  increased  to 67.5%  for the three  months  ended
      September  30, 1998 from 41.3% for the three  months ended  September  30,
      1997. This percentage increase was primarily



                                       17
<PAGE>



      due to the production tax and lease operating  adjustments discussed above
      and the  decreases  in the  average  prices of oil and gas sold during the
      three  months  ended  September  30, 1998 as compared to the three  months
      ended September 30, 1997.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      increased  $667 (28.6%) for the three months ended  September  30, 1998 as
      compared to the three  months ended  September  30,  1997.  This  increase
      resulted  primarily  from the  decreases in the oil and gas prices used in
      the  valuation of reserves at September  30, 1998 as compared to September
      30, 1997. As a percentage of oil and gas sales,  this expense increased to
      10.3% for the three  months  ended  September  30,  1998 from 4.9% for the
      three  months  ended  September  30, 1997.  This  percentage  increase was
      primarily  due to the dollar  increase  in  depreciation,  depletion,  and
      amortization  discussed  above and the decreases in the average  prices of
      oil and gas sold  during the three  months  ended  September  30,  1998 as
      compared to the three months ended September 30, 1997.

      General and  administrative  expenses  decreased $900 (7.3%) for the three
      months  ended  September  30, 1998 as compared to the three  months  ended
      September 30, 1997. As a percentage of oil and gas sales,  these  expenses
      increased  to 39.5% for the three  months  ended  September  30, 1998 from
      26.0% for the three  months ended  September  30,  1997.  This  percentage
      increase was primarily due to the decrease in oil and gas sales  discussed
      above.

      NINE MONTHS ENDED  SEPTEMBER 30, 1998 AS COMPARED TO THE NINE MONTHS ENDED
      SEPTEMBER 30, 1997.

                                                Nine Months Ended September 30,
                                                -------------------------------
                                                   1998             1997
                                                  -------        ---------
      Oil and gas sales                           $99,990         $141,246
      Oil and gas production expenses             $55,377         $ 42,167
      Barrels produced                              1,816            2,486
      Mcf produced                                 38,610           47,756
      Average price/Bbl                           $ 13.10         $  19.06
      Average price/Mcf                           $  1.97         $   2.22

      As shown in the table  above,  total oil and gas sales  decreased  $41,256
      (29.2%) for the nine months  ended  September  30, 1998 as compared to the
      nine months ended  September  30, 1997.  Of this  decrease,  approximately
      $13,000 and $20,000, respectively, were related to decreases in volumes of
      oil and gas sold and approximately $11,000 and $9,000, respectively,  were
      related to  decreases  in the  average  prices of oil and gas sold.  These
      decreases were partially offset by an increase of approximately $12,000



                                       18
<PAGE>



      related  to a  refund  by the  1985-2  Program  in  1997  of a  prior  oil
      overpayment.  Volumes of oil and gas sold  decreased 670 barrels and 9,146
      Mcf,  respectively,  for the  nine  months  ended  September  30,  1998 as
      compared to the nine months ended  September 30, 1997. The decrease in the
      volumes of oil sold resulted  primarily from the  curtailment of oil sales
      on one significant well due to low oil prices.  The decrease in volumes of
      gas sold resulted  primarily from the 1985-2 Program receiving a decreased
      percentage of sales on one well during the nine months ended September 30,
      1998 due to an  overproduced  gas  balancing  position and positive  prior
      period volume adjustments made by purchasers on several wells for the nine
      months ended September 30, 1997.  Average oil and gas prices  decreased to
      $13.10  per barrel and $1.97 per Mcf,  respectively,  for the nine  months
      ended  September  30,  1998  from  $19.06  per  barrel  and $2.22 per Mcf,
      respectively, for the nine months ended September 30, 1997.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased  $13,210  (31.3%) for the nine months  ended
      September  30, 1998 as compared to the nine  months  ended  September  30,
      1997.  This increase  resulted  primarily  from credits  received from the
      operator on one well during the nine months ended  September  30, 1997 for
      prior  period lease  operating  expenses.  As a percentage  of oil and gas
      sales,  these  expenses  increased  to  55.4%  for the nine  months  ended
      September  30, 1998 from 29.9% for the nine  months  ended  September  30,
      1997. This percentage increase was primarily due to the dollar increase in
      oil and gas production expenses and the decreases in the average prices of
      oil and gas sold  during  the nine  months  ended  September  30,  1998 as
      compared to the nine months ended September 30, 1997.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      decreased  $797 (9.2%) for the nine  months  ended  September  30, 1998 as
      compared to the nine months ended  September  30, 1997. As a percentage of
      oil and gas sales,  this  expense  increased  to 7.9% for the nine  months
      ended September 30, 1998 from 6.1% for the nine months ended September 30,
      1997.

      General and  administrative  expenses decreased $3,692 (8.3%) for the nine
      months  ended  September  30, 1998 as  compared  to the nine months  ended
      September 30, 1997. As a percentage of oil and gas sales,  these  expenses
      increased to 40.7% for the nine months ended September 30, 1998 from 31.4%
      for the nine months ended September 30, 1997. This percentage increase was
      primarily due to the decrease in oil and gas sales discussed above.




                                       19
<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 September  30, 1998 and for
                        the  nine  months  ended   September  30,  1998,   filed
                        herewith.

               27.2     Financial  Data Schedule  containing  summary  financial
                        information   extracted   from  the   1985-2   Program's
                        financial  statements  as of September  30, 1998 and for
                        the  nine  months  ended   September  30,  1998,   filed
                        herewith.

                        All other exhibits are omitted as inapplicable.

      (b) Reports on Form 8-K.

            None.





                                       20
<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:  November 4, 1998             By:         /s/Dennis R. Neill
                                       -------------------------------
                                              (Signature)
                                              Dennis R. Neill
                                              President


Date:  November 4, 1998             By:         /s/Patrick M. Hall
                                       -------------------------------
                                              (Signature)
                                              Patrick M. Hall
                                              Chief Financial Officer



                                       21
<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 September 30, 1998 and for
            the nine
            months ended September 30, 1998, 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 September 30, 1998 and for
            the nine
            months ended September 30, 1998, filed herewith.

            All other exhibits are omitted as inapplicable.