<PAGE>

                  SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, D.C. 20549


                               FORM 10-Q


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



     For the quarter ended             Commission File Number
        June 30, 1997                   2-92702    (1985-1)
                                        2-92702-01 (1985-2)


                    DYCO 1985 OIL AND GAS PROGRAMS
                      (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      
                          ----          -----
<PAGE>
<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,
                                          1997          1996
                                       ----------   ------------

CURRENT ASSETS:
  Cash and cash equivalents             $ 31,875        $ 86,724
  Accrued oil and gas sales               93,745          95,458 
                                        --------        --------
     Total current assets               $125,620        $182,182

NET OIL AND GAS PROPERTIES, utilizing
  the full cost method                   148,033         177,707

DEFERRED CHARGE                           15,519          15,519
                                        --------        --------
                                        $289,172        $375,408
                                        ========        ========

                   LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Accounts payable                      $  5,089        $  5,916
                                        --------        --------
     Total current liabilities          $  5,089        $  5,916

ACCRUED LIABILITY                         29,702          29,702
 
PARTNERS' CAPITAL:
  General Partner, issued and
   outstanding, 41 units                   2,544           3,398
  Limited Partners, issued and
   outstanding, 4,100 units              251,837         336,392
                                        --------        --------
     Total Partners' capital            $254,381        $339,790
                                        --------        --------
                                        $289,172        $375,408
                                        ========        ========

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

                                  -2-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                       STATEMENTS OF OPERATIONS
           FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
                              (Unaudited)


                                          1997          1996
                                        --------       ------- 

REVENUES:
  Oil and gas sales                     $113,754       $81,250
  Interest                                   892           271
                                        --------       -------
                                        $114,646       $81,521

COST AND EXPENSES:
  Oil and gas production                $ 23,147       $22,702
  Depreciation, depletion, and
   amortization of oil and gas
   properties                              8,079        10,473
  General and administrative (Note 2)     12,922        14,277
                                        --------       -------
                                        $ 44,148       $47,452
                                        --------       -------

NET INCOME                              $ 70,498       $34,069 
                                        ========       =======
GENERAL PARTNER (1%) - net        
  income                                $    705       $   341 
                                        ========       =======
LIMITED PARTNERS (99%) - net
  income                                $ 69,793       $33,728 
                                        ========       =======
NET INCOME PER UNIT                     $  17.02       $  8.23 
                                        ========       =======
UNITS OUTSTANDING                          4,141         4,141
                                        ========       =======

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

                                  -3-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                       STATEMENTS OF OPERATIONS
            FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                              (Unaudited)


                                          1997          1996
                                        --------      -------- 

REVENUES:
  Oil and gas sales                     $263,711      $167,061
  Interest                                 1,925           905
                                        --------      --------
                                        $265,636      $167,966

COST AND EXPENSES:
  Oil and gas production                $ 40,219      $ 49,459
  Depreciation, depletion, and
   amortization of oil and gas
   properties                             29,674        23,537 
  General and administrative (Note 2)     32,692        31,046
                                        --------      --------
                                        $102,585      $104,042
                                        --------      --------

NET INCOME                              $163,051      $ 63,924 
                                        ========      ========
GENERAL PARTNER (1%) - net        
  income                                $  1,631      $    639 
                                        ========      ========
LIMITED PARTNERS (99%) - net
  income                                $161,420      $ 63,285 
                                        ========      ========
NET INCOME PER UNIT                     $  39.37      $  15.44 
                                        ========      ========
UNITS OUTSTANDING                          4,141         4,141
                                        ========      ========

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

                                  -4-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                       STATEMENTS OF CASH FLOWS
            FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                              (Unaudited)

                                          1997          1996
                                        ---------     ---------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                            $163,051       $63,924 
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:
   Depreciation, depletion, and 
     amortization of oil and gas
     properties                           29,674        23,537
   Decrease in accrued oil and gas
     sales                                 1,713         4,129 
   Decrease in accounts payable        (     827)     (  4,324)
                                        --------       ------- 
   Net cash provided by operating
     activities                         $193,611       $87,266
                                        --------       -------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from the sale of oil and 
   gas properties                       $    -         $   907
  Additions to oil and gas properties        -        (  1,586)
                                        --------       -------
   Net cash used by investing 
     activities                         $    -        ($   679)
                                        --------       -------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Cash distributions                   ($248,460)     ($82,820)
                                        --------       -------
   Net cash used by financing
     activities                        ($248,460)     ($82,820)
                                        --------       -------

NET INCREASE (DECREASE) IN CASH AND 
  CASH EQUIVALENTS                     ($ 54,849)      $ 3,767  

CASH AND CASH EQUIVALENTS AT 
  BEGINNING OF PERIOD                     86,724        58,496 
                                        --------       -------
CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                         $ 31,875       $62,263
                                        ========       =======

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

                                  -5-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                            BALANCE SHEETS
                              (Unaudited)

                                ASSETS
                                         June 30,    December 31,
                                           1997         1996
                                        -----------  ------------

CURRENT ASSETS:
  Cash and cash equivalents               $ 31,243      $ 86,273
  Accrued oil and gas sales                 31,628        46,545
                                          --------      --------
     Total current assets                 $ 62,871      $132,818

NET OIL AND GAS PROPERTIES, utilizing
  the full cost method                      64,755        72,216

DEFERRED CHARGE                             39,527        39,527
                                          --------      --------
                                          $167,153      $244,561
                                          ========      ========

                   LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Accounts payable                        $  4,437      $  6,198
                                          --------      --------
     Total current liabilities            $  4,437      $  6,198

ACCRUED LIABILITY                           12,899        12,899

PARTNERS' CAPITAL:
  General Partner, issued and
   outstanding, 44 units                     1,497         2,254 
  Limited Partners, issued and
   outstanding, 4,330 units                148,320       223,210
                                          --------      --------
     Total Partners' capital              $149,817      $225,464
                                          --------      --------
                                          $167,153      $244,561
                                          ========      ========

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

                                  -6-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                       STATEMENTS OF OPERATIONS
           FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996
                              (Unaudited)


                                          1997          1996
                                         -------       -------

REVENUES:
  Oil and gas sales                      $54,036       $59,585
  Interest                                    89           117
                                         -------       -------
                                         $54,125       $59,702

COST AND EXPENSES:
  Oil and gas production                 $19,072       $24,451
  Depreciation, depletion, and
   amortization of oil and gas
   properties                              3,280         5,208
  General and administrative (Note 2)     12,380        13,836
                                         -------       -------
                                         $34,732       $43,495
                                         -------       -------

NET INCOME                               $19,393       $16,207 
                                         =======       =======
GENERAL PARTNER (1%) - net        
  income                                 $   194       $   162 
                                         =======       =======
LIMITED PARTNERS (99%) - net
  income                                 $19,199       $16,045 
                                         =======       =======
NET INCOME PER UNIT                      $  4.43       $  3.71 
                                         =======       =======
UNITS OUTSTANDING                          4,374         4,374
                                         =======       =======

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

                                  -7-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                       STATEMENTS OF OPERATIONS
            FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                              (Unaudited)


                                          1997          1996
                                         -------      --------

REVENUES:
  Oil and gas sales                      $93,632      $105,209
  Interest                                   940         1,242
                                         -------      --------
                                         $94,572      $106,451

COST AND EXPENSES:
  Oil and gas production                 $22,500      $ 46,036
  Depreciation, depletion, and
   amortization of oil and gas
   properties                              6,351        10,734
  General and administrative (Note 2)     32,018        30,240
                                         -------      --------
                                         $60,869      $ 87,010
                                         -------      --------

NET INCOME                               $33,703      $ 19,441 
                                         =======      ========
GENERAL PARTNER (1%) - net        
  income                                 $   337      $    194 
                                         =======      ========
LIMITED PARTNERS (99%) - net
  income                                 $33,366      $ 19,247 
                                         =======      ========
NET INCOME PER UNIT                      $  7.71      $   4.44 
                                         =======      ========
UNITS OUTSTANDING                          4,374         4,374
                                         =======      ========

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

                                  -8-
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                       STATEMENTS OF CASH FLOWS
            FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
                              (Unaudited)

                                           1997         1996
                                         ---------    ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                             $ 33,703     $ 19,441 
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:
   Depreciation, depletion, and 
     amortization of oil and gas
     properties                             6,351       10,734
   Decrease in accrued oil and gas
     sales                                 14,917        9,970 
   Decrease in accounts payable         (   1,761)   (   2,850) 
                                         --------     -------- 
   Net cash provided by operating
     activities                          $ 53,210     $ 37,295 
                                         --------     --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from the sale of oil and
    gas properties                       $  1,110     $    246
  Additions to oil and gas properties         -      (   7,716)
                                         --------     --------
   Net cash provided (used) by  
     investing activities                $  1,110    ($  7,470)
                                         --------     --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Cash distributions                    ($109,350)   ($153,090)
                                         --------     --------
   Net cash used by financing
     activities                         ($109,350)   ($153,090)
                                         --------     --------

NET DECREASE IN CASH AND CASH
  EQUIVALENTS                           ($ 55,030)   ($123,265)

CASH AND CASH EQUIVALENTS AT 
  BEGINNING OF PERIOD                      86,273      154,512
                                         --------     --------
CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                          $ 31,243     $ 31,247
                                         ========     ========

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

                                  -9-
<PAGE>
<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, 1997
                              (Unaudited)

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

     The  balance sheets as of June 30, 1997, statements of operations
     for the  three and six months  ended June 30, 1997  and 1996, and
     statements of  cash flows for the six  months ended June 30, 1997
     and  1996  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,  1997, results  of operations for  the three and  six
     months ended June 30, 1997 and 1996 and changes in cash flows for
     the six months ended June 30, 1997 and 1996 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, 1996.  The results of operations for the
     period  ended June 30, 1997 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 Program's  calculation
     of depreciation,  depletion, and amortization  includes estimated
     future expenditures to be  incurred in developing proved reserves
     and  estimated  dismantlement  and  abandonment   costs,  net  of
     estimated salvage values.   In the event the unamortized  cost of
     oil  and gas  properties being  amortized  exceeds the  full cost
     ceiling (as  defined by the Securities  and Exchange Commission),
     the excess is charged to expense in the period  during which such
     excess  occurs.    Sales   and  abandonments  of  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

                                 -10-
<PAGE>
<PAGE>
     have been capitalized, plus estimated future development costs.


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

     Under the  terms of each of the  Program's partnership agreement,
     Dyco  is  entitled  to receive  a  reimbursement  for  all direct
     expenses  and   general   and  administrative,   geological   and
     engineering  expenses it incurs on behalf of the Program.  During
     the three months ended June 30, 1997 and  1996 the 1985-1 Program
     incurred   such   expenses   totaling   $12,922    and   $14,277,
     respectively, of which $10,710 was paid quarterly to Dyco and its
     affiliates.  During the six months  ended June 30, 1997 and  1996
     the 1985-1  Program incurred  such expenses totaling  $32,692 and
     $31,046, respectively,  of which $21,420 was paid  each period to
     Dyco and its affiliates.  During the three months  ended June 30,
     1997 and 1996 the 1985-2  Program incurred such expenses totaling
     $12,380  and $13,836,  respectively,  of which  $10,068 was  paid
     quarterly  to Dyco  and its  affiliates.   During the  six months
     ended June 30,  1997 and  1996 the 1985-2  Program incurred  such
     expenses  totaling $32,018  and  $30,240, respectively,  of which
     $20,136 was paid each period to Dyco and its affiliates.

     Affiliates  of  the  Program  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>
<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, or 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.

     The Programs' available capital from subscriptions has been spent
     on oil and  gas drilling  activities.   There should  not be  any
     further material capital resource commitments in the future.  The
     Programs  have no bank  debt commitments.   Cash  for operational
     purposes will be provided by current oil and gas production.


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

     GENERAL DISCUSSION

     The following  general discussion  should be read  in conjunction
     with the analysis of  results of operations provided below.   The

                                 -12-
<PAGE>
<PAGE>
     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 in 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.  In addition, such spot market sales are generally short-
     term  in  nature  and   are  dependent  upon  the  obtaining   of
     transportation  services provided  by pipelines.   Management  is
     unable  to predict  whether future  oil and  gas prices  will (i)
     stabilize, (ii) increase, or (iii) decrease.

     1985-1 PROGRAM 

     THREE MONTHS ENDED JUNE 30, 1997  AS COMPARED TO THE THREE MONTHS
     ENDED JUNE 30, 1996.

                                      Three months ended June 30,
                                      ---------------------------
                                           1997           1996
                                         --------        -------
      Oil and gas sales                  $113,754        $81,250
      Oil and gas production expenses    $ 23,147        $22,702
      Barrels produced                        -               60
      Mcf produced                         48,895         35,994
      Average price/Bbl                  $    -          $ 22.40
      Average price/Mcf                  $   2.33        $  2.22

     As shown in the  table above, total  oil and gas sales  increased
     $32,504  (40.0%)  for the  three months  ended  June 30,  1997 as
     compared  to  the three  months ended  June  30, 1996.    Of this
     increase,  approximately $29,000  and $5,000,  respectively, were
     related  to increases  in volumes  and the  average price  of gas
     sold.  Volumes of oil sold decreased 60 barrels, while volumes of
     gas sold increased 12,901 Mcf for the three months ended June 30,
     1997 as  compared to the three  months ended June 30,  1996.  The
     increase in volumes of gas sold  resulted primarily from negative
     prior  period volume  adjustments  made by  the purchaser  on two
     wells  during the three months ended  June 30, 1996.  Average gas
     prices increased to $2.33 per Mcf for the three months ended June
     30, 1997 from  $2.22 per Mcf for the three  months ended June 30,
     1996.

     Oil  and  gas  production  expenses  (including  lease  operating
     expenses and production  taxes) remained relatively  constant for
     the three  months ended June  30, 1997 as  compared to the  three
     months  ended June  30, 1996.   As  a percentage  of oil  and gas
     sales, these  expenses decreased  to 20.3% for  the three  months
     ended June 30,  1997 from 27.9% for  the three months ended  June
     30,  1996.   This percentage  decrease was  primarily due  to the
     increase in the average price of gas sold during the three months
     ended June  30, 1997 as compared  to the three  months ended June
     30, 1996.

     Depreciation,   depletion,  and  amortization   of  oil  and  gas
     properties decreased  $2,394 (22.9%)  for the three  months ended
     June  30, 1997  as compared  to the three  months ended  June 30,
     1996.  This  decrease resulted primarily from upward revisions in
     the  estimate of  remaining gas  reserves at  December 31,  1996,
     partially offset by an increase in volumes of gas sold during the
     three months ended June 30, 1997 as compared to  the three months

                                 -13-
<PAGE>
<PAGE>
     ended June 30, 1996.  As a percentage of oil and gas sales,  this
     expense decreased to  7.1% for  the three months  ended June  30,
     1997 from 12.9% for the  three months ended June 30, 1996.   This
     percentage  decrease was  primarily due  to the  increase  in the
     average price of gas sold during the  three months ended June 30,
     1997 as compared to the three months ended June 30, 1996.

     General and  administrative expenses decreased  $1,355 (9.5%) for
     the three months  ended June  30, 1997 as  compared to the  three
     months ended June  30, 1996.   This  decrease resulted  primarily
     from  a decrease  in  professional fees  during the  three months
     ended June 30,  1997 as compared  to the three months  ended June
     30,  1996.  As a percentage of  oil and gas sales, these expenses
     decreased to 11.4%  for the three months ended June 30, 1997 from
     17.6% for the three months ended  June 30, 1996.  This percentage
     decrease was primarily due  to the increase in oil and  gas sales
     discussed above.

     SIX MONTHS  ENDED JUNE  30, 1997  AS COMPARED TO  THE SIX  MONTHS
     ENDED JUNE 30, 1996.

                                       Six months ended June 30,
                                       -------------------------
                                           1997           1996
                                         --------       --------
      Oil and gas sales                  $263,711       $167,061
      Oil and gas production expenses    $ 40,219       $ 49,459
      Barrels produced                        -              112
      Mcf produced                        119,520         87,081
      Average price/Bbl                  $    -         $  20.65
      Average price/Mcf                  $   2.21       $   1.89

     As  shown in the  table above, total oil  and gas sales increased
     $96,650  (57.9%)  for  the six  months  ended  June  30, 1997  as
     compared  to  the  six months  ended  June  30,  1996.   Of  this
     increase,  approximately $61,000 and  $38,000, respectively, were
     related  to increases  in volumes  and the  average price  of gas
     sold,  partially offset  by  a decrease  of approximately  $2,000
     related to the decrease in  volumes of oil sold.  Volumes  of oil
     sold  decreased 112 barrels, while  volumes of gas sold increased
     32,439 Mcf for the six months  ended June 30, 1997 as compared to
     the six months ended June  30, 1996.  The decrease in  volumes of
     oil sold  resulted primarily from a negative  prior period volume
     adjustment  made  by the  purchaser on  one  well during  the six
     months ended  June 30, 1997.  The increase in volumes of gas sold
     resulted primarily from positive prior  period volume adjustments
     made by the  purchaser on three wells during the six months ended
     June 30, 1997.  Average gas prices increased to $2.21 per Mcf for
     the six months ended June 30, 1997 from $1.89 per Mcf for the six
     months ended June 30, 1996.

     Oil  and  gas  production  expenses  (including  lease  operating
     expenses and  production taxes) decreased $9,240  (18.7%) for the
     six months  ended June  30, 1997  as compared  to the  six months
     ended  June  30, 1996.    This decrease  resulted  primarily from
     credits received from the  operators on two wells during  the six
     months ended  June  30, 1997  for  prior period  lease  operating
     expenses,  partially offset by an increase in volumes of gas sold
     during the six months ended June  30, 1997 as compared to the six
     months  ended June  30, 1996.   As  a percentage  of oil  and gas
     sales, these expenses decreased to 15.3% for the six months ended

                                 -14-
<PAGE>
<PAGE>
     June 30, 1997 from 29.6% for the six months ended  June 30, 1996.
     This percentage decrease was primarily due to the dollar decrease
     in  production expenses discussed  above and the  increase in the
     average price  of gas sold during  the six months ended  June 30,
     1997 as compared to the six months ended June 30, 1996.

     Depreciation,  depletion,   and  amortization  of  oil   and  gas
     properties increased $6,137 (26.1%) for the six months ended June
     30, 1997 as compared to the six months ended June 30, 1996.  This
     increase resulted primarily  from an increase  in volumes of  gas
     sold during the six months ended June 30, 1997 as compared to the
     six months ended June 30, 1996.   As a percentage of oil and  gas
     sales, this expense decreased  to 11.3% for the six  months ended
     June 30, 1997 from 14.1% for  the six months ended June 30, 1996.
     This percentage decrease was primarily due to the increase in the
     average price of  gas sold during the  six months ended June  30,
     1997 as compared to the six months ended June 30, 1996.

     General and administrative expenses  increased $1,646 (5.3%)  for
     the six months ended June 30,  1997 as compared to the six months
     ended  June 30, 1996.   This increase resulted  primarily from an
     increase in  professional fees and  miscellaneous expenses during
     the six months ended June 30,  1997 as compared to the six months
     ended June 30, 1996.  As a percentage of oil and gas sales, these
     expenses decreased to  12.4% for  the six months  ended June  30,
     1997 from  18.6% for the  six months ended  June 30, 1996.   This
     percentage  decrease was primarily due to the increase in oil and
     gas sales discussed above.

     1985-2 PROGRAM  

     THREE MONTHS ENDED JUNE 30, 1997  AS COMPARED TO THE THREE MONTHS
     ENDED JUNE 30, 1996.

                                       Three months ended June 30,
                                       ---------------------------
                                          1997            1996
                                         -------         -------
      Oil and gas sales                  $54,036         $59,586
      Oil and gas production expenses    $19,072         $24,451
      Barrels produced                     1,556           1,156
      Mcf produced                        15,417          16,882
      Average price/Bbl                  $ 11.58         $ 19.49
      Average price/Mcf                  $  2.34         $  2.20
 
     As  shown in the table  above, total oil  and gas sales decreased
     $5,550  (9.3%)  for  the three  months  ended  June  30, 1997  as
     compared  to the  three  months ended  June 30,  1996.   Of  this
     decrease, approximately  $12,000 was  related to the  decrease in
     the  average  price of  oil  sold  and approximately  $3,000  was
     related to a decrease in volumes of gas sold, partially offset by
     an  increase of  approximately $8,000 related  to an  increase in
     volumes  of oil  sold  and an  increase  of approximately  $2,000
     related  to  the  increase in  the  average  price  of gas  sold.
     Volumes of oil sold  increased 400 barrels, while volumes  of gas
     sold decreased 1,465 Mcf for the three months ended June 30, 1997
     as compared  to  the  three months  ended  June 30,  1996.    The
     increase in volumes  of oil sold resulted primarily from positive
     prior  period volume  adjustments made  by the  purchaser on  two
     wells during the three  months ended June 30, 1997.   Average oil
     prices  decreased to $11.58 per barrel for the three months ended

                                 -15-
<PAGE>
<PAGE>
     June 30,  1997 from $19.49 per barrel  for the three months ended
     June 30,  1996.  The  lower than average  oil price  is due to  a
     prior  period price adjustment  made by the  purchaser related to
     one well  during the three months  ended June 30, 1997.   Average
     gas prices increased to $2.34 per Mcf  for the three months ended
     June 30,  1997 from $2.20 per Mcf for the three months ended June
     30, 1996.  

     Oil  and  gas  production  expenses  (including  lease  operating
     expenses and  production taxes) decreased $5,379  (22.0%) for the
     three months ended June 30, 1997 as compared  to the three months
     ended June 30, 1996.   This decrease resulted primarily  from (i)
     the sale of one well during the three months ended June 30, 1996,
     (ii)  a positive prior period adjustment made by the operator for
     general  operating expenses on  one well during  the three months
     ended June 30, 1996, (iii) recompletion expenses incurred on  one
     well during  the three months  ended June  30, 1996  in order  to
     improve  the recovery of reserves, and (iv) a decrease in general
     repair and maintenance expenses incurred on  two wells during the
     three months ended June  30, 1997 as compared to the three months
     ended June 30, 1996.  As a percentage of oil and gas sales, these
     expenses decreased to 35.3%  for the three months ended  June 30,
     1997 from 41.0%  for the three months ended June  30, 1996.  This
     percentage decrease  was  primarily due  to the  increase in  the
     average price of  gas sold during the three months ended June 30,
     1997 as compared to the three months ended June 30, 1996.

     Depreciation,  depletion,   and  amortization  of  oil   and  gas
     properties decreased  $1,928 (37.0%)  for the three  months ended
     June 30,  1997 as  compared to  the three months  ended June  30,
     1996.  This  decrease resulted primarily from upward revisions in
     the estimates of remaining  oil and gas reserves at  December 31,
     1996.   As  a percentage  of  oil  and gas  sales,  this  expense
     decreased to  6.1% for the three months  ended June 30, 1997 from
     8.7% for the three  months ended June 30, 1996.   This percentage
     decrease was primarily due  to the increase in the  average price
     of  gas sold  during  the three  months ended  June  30, 1997  as
     compared to the three months ended June 30, 1996.

     General and  administrative expenses decreased $1,456 (10.5%) for
     the  three months  ended June 30,  1997 as compared  to the three
     months  ended June 30,  1996.   This decrease  resulted primarily
     from a  decrease in  professional  fees during  the three  months
     ended  June 30, 1997  as compared to the  three months ended June
     30, 1996.  As a  percentage of oil and gas sales,  these expenses
     remained relatively constant at 22.9% for  the three months ended
     June 30, 1997 and 23.2% the three months ended June 30, 1996.

     SIX MONTHS ENDED  JUNE 30,  1997 AS  COMPARED TO  THE SIX  MONTHS
     ENDED JUNE 30, 1996.

                                       Six months ended June 30,
                                       -------------------------
                                          1997            1996
                                         -------        --------
      Oil and gas sales                  $93,632        $105,209
      Oil and gas production expenses    $22,500        $ 46,036
      Barrels produced                     1,697           2,244
      Mcf produced                        32,617          34,119 
      Average price/Bbl                  $ 12.24        $  18.64
      Average price/Mcf                  $  2.23        $   1.86

                                 -16-
<PAGE>
<PAGE>
     As shown in  the table above,  total oil and gas  sales decreased
     $11,577  (11.0%)  for  the six  months  ended  June  30, 1997  as
     compared  to  the  six  months  ended June  30,  1996.    Of this
     decrease,  approximately $10,000  and $3,000,  respectively, were
     related  to  decreases  in  volumes  of  oil  and  gas  sold  and
     approximately $11,000 was related to the decrease  in the average
     price  of  oil   sold,  partially  offset   by  an  increase   of
     approximately  $12,000, related  to the  increase in  the average
     price  of gas sold.   Volumes of  oil and gas  sold decreased 547
     barrels and 1,502  Mcf, respectively,  for the  six months  ended
     June 30, 1997 as compared to  the six months ended June 30, 1996.
     The decrease in volumes of oil sold resulted primarily from (i) a
     negative prior period  volume adjustment made by the purchaser on
     one well  during the six  months ended June  30, 1997 and  (ii) a
     normal  decline in production  due to diminished  oil reserves on
     another  well.  Average oil prices decreased to $12.24 per barrel
     for the six months ended June 30, 1997 from $18.64 per barrel for
     the six months ended June  30, 1996.  The lower than  average oil
     price  is due  to a  prior period  price  adjustment made  by the
     purchaser  related to one well  during the six  months ended June
     30, 1997.   Average gas prices increased to $2.23 per Mcf for the
     six months ended  June 30, 1997  from $1.86 per  Mcf for the  six
     months ended June 30, 1996.  

     Oil  and  gas  production  expenses  (including  lease  operating
     expenses and production taxes)  decreased $23,536 (51.1%) for the
     six months ended  June 30,  1997 as  compared to  the six  months
     ended June 30, 1996.   This decrease resulted primarily  from (i)
     the sale of  one well during the six months  ended June 30, 1996,
     (ii)  credits received from the  operator on one  well during the
     six  months  ended June  30,  1997  for  prior  period  operating
     expenses, (iii)  a positive prior  period adjustment made  by the
     operator  for general operating  expenses on one  well during the
     six  months  ended  June  30, 1996,  (iv)  recompletion  expenses
     incurred on one well during the six months ended June 30, 1996 in
     order to improve  the recovery of reserves, and (v) a decrease in
     the general repair and maintenance expenses  incurred on one well
     during the six months ended June  30, 1997 as compared to the six
     months  ended June  30, 1996.   As  a percentage  of oil  and gas
     sales, these expenses decreased to 24.0% for the six months ended
     June 30, 1997 from 43.8% for  the six months ended June 30, 1996.
     This percentage decrease was primarily due to the dollar decrease
     in production expenses  discussed above and  the increase in  the
     average  price of gas  sold during the six  months ended June 30,
     1997 as compared to the six months ended June 30, 1996.

     Depreciation,  depletion,  and  amortization   of  oil  and   gas
     properties decreased $4,383 (40.8%) for the six months ended June
     30, 1997 as compared to the six months ended June 30, 1996.  This
     decrease resulted primarily from (i) a decrease in volumes of gas
     sold during the six months ended June 30, 1997 as compared to the
     six months ended June 30,  1996 and (ii) upward revisions  in the
     estimates of remaining oil and gas reserves at December 31, 1996.
     As a percentage  of oil and gas sales, this  expense decreased to
     6.8% for  the six months ended  June 30, 1997 from  16.3% for the
     six months ended  June 30,  1996.  This  percentage decrease  was
     primarily  due to the increase  in the average  price of gas sold
     during the six months ended June 30, 1997 as compared  to the six
     months ended June 30, 1996.

     General and administrative expenses  increased $1,778 (5.9%)  for

                                 -17-
<PAGE>
<PAGE>
     the six months ended June 30, 1997 as compared to  the six months
     ended  June 30, 1996.   This increase resulted  primarily from an
     increase in professional  fees and miscellaneous  expenses during
     the six months ended June 30, 1997 as compared to  the six months
     ended June 30, 1996.  As a percentage of oil and gas sales, these
     expenses increased to  34.2% for  the six months  ended June  30,
     1997 from 28.7%  for the six  months ended June  30, 1996.   This
     percentage  increase was primarily due to the decrease in oil and
     gas sales discussed above.

                                 -18-
<PAGE>
<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, 1997
                    and for the six months ended June 30,  1997, filed
                    herewith.

          27.2      Financial   Data   Schedule   containing   summary
                    financial  information  extracted from  the 1985-2
                    Program's financial statements as of June 30, 1997
                    and for  the six months ended June 30, 1997, filed
                    herewith.

                    All other exhibits are omitted as inapplicable.

     (b)  Reports on Form 8-K

          None.

                                 -19-
<PAGE>
<PAGE>
                              SIGNATURES


Pursuant to the requirements  of the Securities Exchange Act  of 1934,
the Registrant has duly caused this  report to be signed on its behalf
by the undersigned, thereunto duly authorized.


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

                              (Registrant)


                              By:  DYCO PETROLEUM CORPORATION

                                   General Partner




Date:  August 12, 1997        By:        /s/Dennis R. Neill
                                 -------------------------------
                                        (Signature)
                                        Dennis R. Neill
                                        President



Date:  August 12, 1997        By:        /s/Patrick M. Hall
                                 -------------------------------
                                        (Signature)
                                        Patrick M. Hall
                                        Chief Financial Officer

                                 -20-
<PAGE>
<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, 1997 and for the  six months ended June 30, 1997,  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,  1997 and for the six  months ended June 30, 1997, filed
          herewith.

          All other exhibits are omitted as inapplicable.
<PAGE>