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, 2001                            2-92702    (1985-1)
                                            2-92702-01 (1985-2)


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



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



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



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


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

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




                                      -1-
<PAGE>




                        PART I. FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS

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

                                     ASSETS

                                                 June 30,      December 31,
                                                   2001            2000
                                                -----------    ------------

CURRENT ASSETS:
   Cash and cash equivalents                      $ 59,951        $ 74,676
   Accrued oil and gas sales                        83,815         111,904
                                                  --------        --------
      Total current assets                        $143,766        $186,580

NET OIL AND GAS PROPERTIES, utilizing
   the full cost method                             75,129          90,269

DEFERRED CHARGE                                     18,309          16,440
                                                  --------        --------
                                                  $237,204        $293,289
                                                  ========        ========

                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                               $  5,280        $  5,920
   Gas imbalance payable                             1,520           1,520
                                                  --------        --------
      Total current liabilities                   $  6,800        $  7,440

ACCRUED LIABILITY                                 $ 55,582        $ 55,582

PARTNERS' CAPITAL:
   General Partner, 41 general
      partner units                               $  1,748        $  2,303
   Limited Partners, issued and
      outstanding, 4,100 Units                     173,074         227,964
                                                  --------        --------
      Total Partners' capital                     $174,822        $230,267
                                                  --------        --------
                                                  $237,204        $293,289
                                                  ========        ========






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



                                      -2-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                           STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (Unaudited)

                                                  2001              2000
                                                --------          --------

REVENUES:
   Oil and gas sales                            $116,434          $110,263
   Interest                                        1,117               446
                                                --------          --------
                                                $117,551          $110,709

COSTS AND EXPENSES:
   Oil and gas production                       $ 22,743          $ 21,884
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                   7,932             1,512
   General and administrative
      (Note 2)                                     9,989             9,876
                                                --------          --------
                                                $ 40,664          $ 33,272
                                                --------          --------

NET INCOME                                      $ 76,887          $ 77,437
                                                ========          ========
GENERAL PARTNER (1%) - net income               $    769          $    774
                                                ========          ========
LIMITED PARTNERS (99%) - net income             $ 76,118          $ 76,663
                                                ========          ========
NET INCOME PER UNIT                             $  18.57          $  18.70
                                                ========          ========
UNITS OUTSTANDING                                  4,141             4,141
                                                ========          ========





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



                                      -3-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                           STATEMENTS OF OPERATIONS
               FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (Unaudited)

                                                  2001              2000
                                                --------          --------

REVENUES:
   Oil and gas sales                            $349,539          $203,742
   Interest                                        2,471             1,478
                                                --------          --------
                                                $352,010          $205,220

COSTS AND EXPENSES:
   Oil and gas production                       $ 54,537          $ 46,740
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                  13,905             6,429
   General and administrative
      (Note 2)                                    28,438            26,922
                                                --------          --------
                                                $ 96,880          $ 80,091
                                                --------          --------

NET INCOME                                      $255,130          $125,129
                                                ========          ========
GENERAL PARTNER (1%) - net income               $  2,551          $  1,251
                                                ========          ========
LIMITED PARTNERS (99%) - net income             $252,579          $123,878
                                                ========          ========
NET INCOME PER UNIT                             $  61.61          $  30.22
                                                ========          ========
UNITS OUTSTANDING                                  4,141             4,141
                                                ========          ========





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



                                      -4-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
                           STATEMENTS OF CASH FLOWS
               FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (Unaudited)


                                                  2001              2000
                                               ----------        ----------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                   $255,130          $125,129
   Adjustments to reconcile net
      income to net cash provided
      by operating activities:
      Depreciation, depletion, and
        amortization of oil and gas
        properties                                13,905             6,429
      (Increase) decrease in accrued oil
        and gas sales                             28,089         (  25,327)
      Increase in deferred charge              (   1,869)                -
      Increase (decrease) in accounts
        payable                                (     640)               61
                                                --------          --------
   Net cash provided by operating
      activities                                $294,615          $106,292
                                                --------          --------


CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from the sale of oil and
      gas properties                            $  1,235          $      -
                                                --------          --------
   Net cash provided by investing
      activities                                $  1,235          $      -
                                                --------          --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                          ($310,575)        ($103,525)
                                                --------          --------
   Net cash used by financing
      activities                               ($310,575)        ($103,525)
                                                --------          --------

NET INCREASE (DECREASE) IN CASH AND
   CASH EQUIVALENTS                            ($ 14,725)         $  2,767

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                            74,676            68,872
                                                --------          --------
CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                $ 59,951          $ 71,639
                                                ========          ========



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



                                      -5-
<PAGE>



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

                                     ASSETS

                                                  June 30,     December 31,
                                                    2001           2000
                                                 ----------    ------------

CURRENT ASSETS:
   Cash and cash equivalents                      $ 63,719        $ 90,826
   Accrued oil and gas sales                        29,349          35,902
                                                  --------        --------
      Total current assets                        $ 93,068        $126,728

NET OIL AND GAS PROPERTIES, utilizing
   the full cost method                             24,053          27,549

DEFERRED CHARGE                                     21,039          21,039
                                                  --------        --------
                                                  $138,160        $175,316
                                                  ========        ========

                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Accounts payable                               $  2,676        $  2,921
                                                  --------        --------
      Total current liabilities                   $  2,676        $  2,921

ACCRUED LIABILITY                                 $  3,976        $  3,976

PARTNERS' CAPITAL:
   General Partner, 44 general
      partner units                               $  1,314        $  1,684
   Limited Partners, issued and
      outstanding, 4,330 Units                     130,194         166,735
                                                  --------        --------
      Total Partners' capital                     $131,508        $168,419
                                                  --------        --------
                                                  $138,160        $175,316
                                                  ========        ========


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



                                      -6-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                           STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (Unaudited)

                                                  2001              2000
                                                --------          --------

REVENUES:
   Oil and gas sales                             $45,043          $ 46,816
   Interest                                          332               581
   Gain on sale of oil and gas
      properties                                       -            55,856
                                                 -------          --------
                                                 $45,375          $103,253

COSTS AND EXPENSES:
   Oil and gas production                        $11,958          $  6,977
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                   1,693               530
   General and administrative
      (Note 2)                                     6,479             6,387
                                                 -------          --------
                                                 $20,130          $ 13,894
                                                 -------          --------

NET INCOME                                       $25,245          $ 89,359
                                                 =======          ========
GENERAL PARTNER (1%) - net income                $   252          $    894
                                                 =======          ========
LIMITED PARTNERS (99%) - net income              $24,993          $ 88,465
                                                 =======          ========
NET INCOME PER UNIT                              $  5.77          $  20.43
                                                 =======          ========
UNITS OUTSTANDING                                  4,374             4,374
                                                 =======          ========




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



                                      -7-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                           STATEMENTS OF OPERATIONS
               FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (Unaudited)

                                                  2001              2000
                                                --------          --------

REVENUES:
   Oil and gas sales                            $120,638          $ 82,918
   Interest                                        1,521             1,293
   Gain on sale of oil and gas
      properties                                       -            55,856
                                                --------          --------
                                                $122,159          $140,067

COSTS AND EXPENSES:
   Oil and gas production                       $ 25,214          $ 19,585
   Depreciation, depletion, and
      amortization of oil and gas
      properties                                   2,974             1,533
   General and administrative
      (Note 2)                                    21,532            19,967
                                                --------          --------
                                                $ 49,720          $ 41,085
                                                --------          --------

NET INCOME                                      $ 72,439          $ 98,982
                                                ========          ========
GENERAL PARTNER (1%) - net income               $    724          $    990
                                                ========          ========
LIMITED PARTNERS (99%) - net income             $ 71,715          $ 97,992
                                                ========          ========
NET INCOME PER UNIT                             $  16.56          $  22.63
                                                ========          ========
UNITS OUTSTANDING                                  4,374             4,374
                                                ========          ========





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



                                      -8-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                           STATEMENTS OF CASH FLOWS
               FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND 2000
                                   (Unaudited)


                                                  2001              2000
                                               ----------        ----------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                   $ 72,439          $ 98,982
   Adjustments to reconcile net income
      to net cash provided by operating
      activities:
      Depreciation, depletion, and
        amortization of oil and gas
        properties                                 2,974             1,533
      Gain on sale of oil and gas
        properties                                     -         (  55,856)
      Decrease in accrued oil and gas
        sales                                      6,553            55,379
      Decrease in accounts payable             (     245)        (   2,487)
                                                --------          --------
   Net cash provided by operating
      activities                                $ 81,721          $ 97,551
                                                --------          --------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Proceeds from the sale of oil and
      gas properties                            $    522          $ 59,449
                                                --------          --------
   Net cash provided by investing
      activities                                $    522          $ 59,449
                                                --------          --------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Cash distributions                          ($109,350)        ($174,960)
                                                --------          --------
   Net cash used by financing
      activities                               ($109,350)        ($174,960)
                                                --------          --------

NET DECREASE IN CASH AND CASH
   EQUIVALENTS                                 ($ 27,107)        ($ 17,960)

CASH AND CASH EQUIVALENTS AT
   BEGINNING OF PERIOD                            90,826            40,962
                                                --------          --------
CASH AND CASH EQUIVALENTS AT
   END OF PERIOD                                $ 63,719          $ 23,002
                                                ========          ========



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


                                      -9-
<PAGE>



             DYCO OIL AND GAS PROGRAM 1985-1 LIMITED PARTNERSHIP
             DYCO OIL AND GAS PROGRAM 1985-2 LIMITED PARTNERSHIP
                   CONDENSED NOTES TO FINANCIAL STATEMENTS
                                  JUNE 30, 2001
                                   (Unaudited)


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

      The balance  sheets as of June 30, 2001,  statements of operations for the
      three and six months ended June 30, 2001 and 2000,  and statements of cash
      flows for the six months  ended June 30, 2001 and 2000 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,  2001,
      results of operations for the three and six months ended June 30, 2001 and
      2000, and changes in cash flows for the six months ended June 30, 2001 and
      2000 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, 2000. The results of operations for the period
      ended June 30, 2001 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  Programs.  During the three months ended June 30, 2001 and 2000,  the
      1985-1  Program  incurred  such  expenses   totaling  $9,989  and  $9,876,
      respectively,  of  which  $8,661  was  paid  each  period  to Dyco and its
      affiliates. During the six months ended June 30, 2001 and 2000, the 1985-1
      Program incurred such expenses totaling $28,438 and $26,922, respectively,
      of which $17,322 was paid each period to Dyco and its  affiliates.  During
      the three months ended June 30, 2001 and 2000, the 1985-2 Program incurred
      such expenses totaling $6,479 and $6,387 respectively, of which $5,142 was
      paid each period to Dyco and its  affiliates.  During the six months ended
      June 30, 2001 and 2000, the 1985-2 Program incurred such expenses totaling
      $21,532 and $19,967 respectively, of which $10,284 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.
      Management  believes that cash for ordinary  operational  purposes will be
      provided by current oil and gas production.

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


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

      GENERAL DISCUSSION

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

      Due to the volatility of oil and gas prices,  forecasting future prices is
      subject to great  uncertainty  and  inaccuracy.  Substantially  all of the
      Programs' gas reserves are being sold on the "spot market".  Prices on the
      spot market are subject to wide seasonal and regional pricing fluctuations
      due to the highly competitive nature of the spot market.  Such spot market
      sales are  generally  short-term  in  nature  and are  dependent  upon the
      obtaining of transportation services provided by pipelines. It is likewise
      difficult  to  predict  production  volumes.  However,  oil  and  gas  are
      depleting  assets,  so it can be  expected  that  production  levels  will
      decline  over  time.   Gas  prices  in  late  2000  and  early  2001  were
      significantly  higher  than  the  Program's  historical  average.  This is
      attributable to the higher prices for crude oil, a substitute fuel in some
      markets,  and reduced production due to lower capital  investments in 1998
      and 1999. In the last few months spot gas prices have  generally  declined
      month to month.  It is not possible to accurately  predict  future pricing
      direction.




                                      -13-
<PAGE>




      1985-1 PROGRAM

      THREE MONTHS  ENDED JUNE 30, 2001  COMPARED TO THE THREE MONTHS ENDED JUNE
      30, 2000.

                                                 Three Months Ended June 30,
                                                 ---------------------------
                                                   2001             2000
                                                 --------         --------
      Oil and gas sales                          $116,434         $110,263
      Oil and gas production expenses            $ 22,743         $ 21,884
      Barrels produced                                 57               61
      Mcf produced                                 25,546           32,083
      Average price/Bbl                          $  26.67         $  27.51
      Average price/Mcf                          $   4.50         $   3.38

      As shown in the table  above,  total oil and gas  sales  increased  $6,171
      (5.6%) for the three  months  ended June 30, 2001 as compared to the three
      months ended June 30, 2000. Of this  increase,  approximately  $28,000 was
      related to an increase in the average price of gas sold. This increase was
      partially  offset by a  decrease  of  approximately  $22,000  related to a
      decrease in volumes of gas sold.  Volumes of oil and gas sold  decreased 4
      barrels and 6,537 Mcf,  respectively,  for the three months ended June 30,
      2001 as compared to the three months ended June 30, 2000.  The decrease in
      volumes of gas sold was primarily due to (i) the 1985-1 Program's  receipt
      of a reduced  percentage  of sales on two wells  during  the three  months
      ended June 30, 2001 due to gas balancing and (ii) the  shutting-in  of one
      well in order to perform a workover during the three months ended June 30,
      2001.  These  decreases  were  partially  offset by the  1985-1  Program's
      receipt of an  increased  percentage  of sales on another  well during the
      three months ended June 30, 2001 due to gas  balancing.  As of the date of
      this Quarterly Report,  Management does not know whether the gas balancing
      adjustment will continue in the future,  thereby  continuing to contribute
      to a decrease in volumes of gas produced for the 1985-1  Program.  Average
      oil prices  decreased to $26.67 per barrel for the three months ended June
      30, 2001 from $27.51 per barrel for the three  months ended June 30, 2000.
      Average gas prices  increased  to $4.50 per Mcf for the three months ended
      June 30, 2001 from $3.38 per Mcf for the three months ended June 30, 2000.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased  $859 (3.9%) for the three months ended June
      30,  2001 as  compared  to the three  months  ended  June 30,  2000.  As a
      percentage of oil and gas sales, these expenses decreased to 19.5% for the
      three  months  ended June 30, 2001 from 19.8% for the three  months  ended
      June 30, 2000.




                                      -14-
<PAGE>




      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      increased  $6,420  (424.6%)  for the three  months  ended June 30, 2001 as
      compared  to the three  months  ended June 30,  2000.  This  increase  was
      primarily  due to a  decrease  in the gas price used in the  valuation  of
      reserves at June 30, 2001 as compared to June 30, 2000. As a percentage of
      oil and gas sales,  this  expense  increased  to 6.8% for the three months
      ended June 30, 2001 from 1.4% for the three  months  ended June 30,  2000.
      This  percentage  increase  was  primarily  due to the dollar  increase in
      depreciation, depletion, and amortization.

      General and  administrative  expenses  increased $113 (1.1%) for the three
      months  ended June 30, 2001 as compared to the three months ended June 30,
      2000. As a percentage of oil and gas sales,  these  expenses  decreased to
      8.6% for the  three  months  ended  June 30,  2001 from 9.0% for the three
      months ended June 30, 2000.

      SIX MONTHS  ENDED JUNE 30, 2001  COMPARED TO THE SIX MONTHS ENDED JUNE 30,
      2000.

                                                 Six Months Ended June 30,
                                                 -------------------------
                                                   2001             2000
                                                 --------         --------
      Oil and gas sales                          $349,539         $203,742
      Oil and gas production expenses            $ 54,537         $ 46,740
      Barrels produced                                132               86
      Mcf produced                                 59,918           72,018
      Average price/Bbl                          $  27.27         $  27.87
      Average price/Mcf                          $   5.77         $   2.80

      As shown in the table above,  total oil and gas sales  increased  $145,797
      (71.6%)  for the six months  ended June 30,  2001 as  compared  to the six
      months ended June 30, 2000. Of this increase,  approximately  $178,000 was
      related to an increase in the average price of gas sold. This increase was
      partially  offset by a  decrease  of  approximately  $34,000  related to a
      decrease in volumes of gas sold. Volumes of oil sold increased 46 barrels,
      while  volumes of gas sold  decreased  12,100 Mcf for the six months ended
      June 30,  2001 as  compared  to the six months  ended June 30,  2000.  The
      decrease  in  volumes  of gas sold  was  primarily  due to (i) the  1985-1
      Program's  receipt of a reduced  percentage of sales on three wells during
      the six  months  ended  June 30,  2001 due to gas  balancing  and (ii) the
      shutting-in  of one well in order to  perform a  workover  during  the six
      months ended June 30, 2001.  These decreases were partially  offset by the
      1985-1  Program's  receipt of an increased  percentage of sales on another
      well during the six months ended June 30, 2001 due to gas balancing. As of
      the date of this Quarterly  Report,  Management  does not know whether the
      gas balancing



                                      -15-
<PAGE>



       adjustment will continue in the future,  thereby continuing to contribute
      to a decrease in volumes of gas produced for the 1985-1  Program.  Average
      oil prices  decreased  to $27.27 per barrel for the six months  ended June
      30,  2001 from $27.87 per barrel for the six months  ended June 30,  2000.
      Average  gas prices  increased  to $5.77 per Mcf for the six months  ended
      June 30, 2001 from $2.80 per Mcf for the six months ended June 30, 2000.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased $7,797 (16.7%) for the six months ended June
      30, 2001 as compared to the six months ended June 30, 2000.  This increase
      was primarily due to an increase in production  taxes  associated with the
      increase in oil and gas sales. This increase was partially offset by (i) a
      decrease  in lease  operating  expenses  associated  with the  decrease in
      volumes of gas sold and (ii) workover expenses incurred on one well during
      the six months  ended June 30,  2000 in order to improve  the  recovery of
      reserves.  As a percentage of oil and gas sales,  these expenses decreased
      to 15.6% for the six  months  ended  June 30,  2001 from 22.9% for the six
      months ended June 30, 2000. This percentage  decrease was primarily due to
      the increase in the average price of gas sold.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      increased  $7,476  (116.3%)  for the six  months  ended  June 30,  2001 as
      compared  to the six  months  ended  June  30,  2000.  This  increase  was
      primarily  due to (i) the  increase in the  average  price of gas sold and
      (ii) a decrease in the gas price used in the valuation of reserves at June
      20, 2001 as  compared to June 30,  2000.  As a  percentage  of oil and gas
      sales,  this  expense  increased to 4.0% for the six months ended June 30,
      2001 from 3.2% for the six months  ended June 30,  2000.  This  percentage
      increase  was  primarily  due  to the  dollar  increase  in  depreciation,
      depletion, and amortization.

      General and  administrative  expenses  increased $1,516 (5.6%) for the six
      months  ended June 30, 2001 as  compared to the six months  ended June 30,
      2000. As a percentage of oil and gas sales,  these  expenses  decreased to
      8.1% for the six months  ended June 30, 2001 from 13.2% for the six months
      ended June 30, 2000.  This  percentage  decrease was  primarily due to the
      increase in oil and gas sales.




                                      -16-
<PAGE>




      1985-2 PROGRAM

      THREE MONTHS  ENDED JUNE 30, 2001  COMPARED TO THE THREE MONTHS ENDED JUNE
      30, 2000.

                                                 Three Months Ended June 30,
                                                 ---------------------------
                                                   2001             2000
                                                  -------         -------
      Oil and gas sales                           $45,043         $46,816
      Oil and gas production expenses             $11,958         $ 6,977
      Barrels produced                                287             492
      Mcf produced                                  9,292           9,992
      Average price/Bbl                           $ 28.33         $ 29.79
      Average price/Mcf                           $  3.97         $  3.22

      As shown in the table  above,  total oil and gas  sales  decreased  $1,773
      (3.8%) for the three  months  ended June 30, 2001 as compared to the three
      months ended June 30, 2000.  Of this  decrease,  approximately  $6,000 and
      $2,000, respectively,  were related to decreases in volumes of oil and gas
      sold and approximately $500 was related to a decrease in the average price
      of oil sold.  These  decreases  were  partially  offset by an  increase of
      approximately  $7,000  related to an increase in the average  price of gas
      sold.  Volumes  of oil and gas sold  decreased  205  barrels  and 700 Mcf,
      respectively,  for the three months ended June 30, 2001 as compared to the
      three months ended June 30, 2000.  The decrease in volumes of oil sold was
      primarily  due to the sale of one well  during  early  2000.  Average  oil
      prices  decreased to $28.33 per barrel for the three months ended June 30,
      2001 from  $29.79  per barrel for the three  months  ended June 30,  2000.
      Average gas prices  increased  to $3.97 per Mcf for the three months ended
      June 30, 2001 from $3.22 per Mcf for the three months ended June 30, 2000.

      The 1985-2  Program  sold one well during the three  months ended June 30,
      2000 for $59,449 representing approximately 11% of its total reserves. The
      proceeds  from this sale would have  reduced the net book value of the oil
      and gas properties by 185%,  significantly  altering the 1985-2  Program's
      capitalized  cost/proved reserves relationship.  Accordingly,  capitalized
      costs were reduced by approximately  11% and a gain on sale of oil and gas
      properties of $55,856 was recognized. No such sales occurred during 2001.

      Oil and gas production  expenses  (including lease operating  expenses and
      production taxes) increased $4,981 (71.4%) for the three months ended June
      30,  2001 as  compared  to the three  months  ended  June 30,  2000.  This
      increase was primarily due to (i) a negative prior period lease  operating
      expense  adjustment  made by the  operator  on one well  during  the three
      months ended June 30, 2000 and (ii) an increase in



                                      -17-
<PAGE>



      repair and maintenance expenses on two wells during the three months ended
      June 30, 2001 as compared to the three months  ended June 30, 2000.  These
      increases were partially offset by the sale of one well during early 2000.
      As a percentage of oil and gas sales,  these  expenses  increased to 26.5%
      for the three  months  ended June 30, 2001 from 14.9% for the three months
      ended June 30, 2000.  This  percentage  increase was  primarily due to the
      dollar increase in oil and gas production expenses.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      increased  $1,163  (219.4%)  for the three  months  ended June 30, 2001 as
      compared  to the three  months  ended June 30,  2000.  This  increase  was
      primarily  due to a  decrease  in the gas price used in the  valuation  of
      reserves at June 30, 2001 as compared to June 30, 2000. As a percentage of
      oil and gas sales,  this  expense  increased  to 3.8% for the three months
      ended June 30, 2001 from 1.1% for the three  months  ended June 30,  2000.
      This  percentage  increase  was  primarily  due to the dollar  increase in
      depreciation, depletion, and amortization.

      General and  administrative  expenses  increased  $92 (1.4%) for the three
      months  ended June 30, 2001 as compared to the three months ended June 30,
      2000. As a percentage of oil and gas sales,  these  expenses  increased to
      14.4% for the three  months  ended June 30,  2001 from 13.6% for the three
      months ended June 30, 2000.

      SIX MONTHS  ENDED JUNE 30, 2001  COMPARED TO THE SIX MONTHS ENDED JUNE 30,
      2000.

                                                  Six Months Ended June 30,
                                                  -------------------------
                                                    2001            2000
                                                  --------        -------
      Oil and gas sales                           $120,638        $82,918
      Oil and gas production expenses             $ 25,214        $19,585
      Barrels produced                                 530            977
      Mcf produced                                  18,948         19,927
      Average price/Bbl                           $  27.65        $ 28.38
      Average price/Mcf                           $   5.59        $  2.77

      As shown in the table  above,  total oil and gas sales  increased  $37,720
      (45.5%)  for the six months  ended June 30,  2001 as  compared  to the six
      months ended June 30, 2000. Of this  increase,  approximately  $54,000 was
      related to an increase in the average price of gas sold. This increase was
      partially  offset by a  decrease  of  approximately  $13,000  related to a
      decrease in volumes of oil sold. Volumes of oil and gas sold decreased 447
      barrels and 979 Mcf, respectively,  for the six months ended June 30, 2001
      as compared to the six months ended June 30, 2000. The decrease in volumes
      of oil sold was primarily due to the



                                      -18-
<PAGE>



      sale of one well during early 2000. Average oil prices decreased to $27.65
      per barrel for the six months  ended June 30,  2001 from $28.38 per barrel
      for the six months  ended June 30, 2000.  Average gas prices  increased to
      $5.59 per Mcf for the six months  ended  June 30,  2001 from $2.77 per Mcf
      for the six months ended June 30, 2000.

      The 1985-2 Program sold one well during the six months ended June 30, 2000
      for $59,449  representing  approximately  11% of its total  reserves.  The
      proceeds  from this sale would have  reduced the net book value of the oil
      and gas properties by 185%,  significantly  altering the 1985-2  Program's
      capitalized  cost/proved reserves relationship.  Accordingly,  capitalized
      costs were reduced by approximately  11% and a gain on sale of oil and gas
      properties of $55,856 was recognized. No such sales occurred during 2001.

      Oil and gas production  expenses  (including lease operating  expenses and
      production  taxes)  increased $5,629 (28.7%) for the six months ended June
      30, 2001 as compared to the six months ended June 30, 2000.  This increase
      was primarily due to (i) an increase in production  taxes  associated with
      the  increase  in oil and  gas  sales,  (ii) an  increase  in  repair  and
      maintenance  expenses  on two wells  during the six months  ended June 30,
      2001 as  compared  to the six  months  ended  June 30,  2000,  and (iii) a
      negative  prior  period lease  operating  expense  adjustment  made by the
      operator  on one well  during the six months  ended June 30,  2000.  These
      increases were partially offset by the sale of one well during early 2000.
      As a percentage of oil and gas sales,  these  expenses  decreased to 20.9%
      for the six months ended June 30, 2001 from 23.6% for the six months ended
      June 30, 2000. This percentage  decrease was primarily due to the increase
      in the average price of gas sold.

      Depreciation,  depletion,  and  amortization  of oil  and  gas  properties
      increased  $1,441  (94.0%)  for the six  months  ended  June  30,  2001 as
      compared  to the six  months  ended  June  30,  2000.  This  increase  was
      primarily  due to (i) the  increase in the  average  price of gas sold and
      (ii) a decrease in the gas price used in the valuation of reserves at June
      30, 2001 as  compared to June 30,  2000.  As a  percentage  of oil and gas
      sales,  this  expense  increased to 2.5% for the six months ended June 30,
      2001 from 1.8% for the six months  ended June 30,  2000.  This  percentage
      increase  was  primarily  due  to the  dollar  increase  in  depreciation,
      depletion, and amortization.




                                      -19-
<PAGE>




      General and  administrative  expenses  increased $1,565 (7.8%) for the six
      months  ended June 30, 2001 as  compared to the six months  ended June 30,
      2000. As a percentage of oil and gas sales,  these  expenses  decreased to
      17.8% for the six months ended June 30, 2001 from 24.1% for the six months
      ended June 30, 2000.  This  percentage  decrease was  primarily due to the
      increase in oil and gas sales.



                                      -20-
<PAGE>



ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
            RISK.

            The Programs do not hold any market risk sensitive instruments.




                                      -21-
<PAGE>



                          PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits

            None.

(b)   Reports on Form 8-K.

            None.





                                      -22-
<PAGE>



                                   SIGNATURES

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


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

                                    (Registrant)


                         BY: DYCO PETROLEUM CORPORATION

                                          General Partner


Date:  August 8, 2001        By:         /s/Dennis R. Neill
                                       -------------------------------
                                              (Signature)
                                              Dennis R. Neill
                                              President


Date:  August 8, 2001        By:         /s/Patrick M. Hall
                                       -------------------------------
                                              (Signature)
                                              Patrick M. Hall
                                              Chief Financial Officer


                                      -23-