<PAGE>

                             FORM 10-K405

                  SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C.  20549

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

For the fiscal year ended December 31, 1996

Commission File Number 0-8881

                    DYCO OIL AND GAS PROGRAM 1978-1
                        (A LIMITED PARTNERSHIP)
        (Exact name of registrant as specified in its charter)

           Minnesota                       41-1343930
(State or other jurisdiction of         (I.R.S. Employer
incorporation or organization)       Identification Number)

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

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

Securities registered pursuant to Section 12(b) of the Act:  None.

Securities registered pursuant to Section 12(g) of the Act:  
     Units of limited partnership interest

     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  the filing requirements for  the past 90
days.  Yes       X       No
              -----          -----

     Indicate  by  check  mark  if  disclosure  of  delinquent  filers
pursuant to  Item 405 of Regulation  S-K is not contained  herein, and
will  not  be contained,  to the  best  of registrant's  knowledge, in
definitive proxy or  information statements incorporated  by reference
in Part  III of this Form  10-K405 or any  amendment to this  Form 10-
K405.  Yes   X   No        (Disclosure is contained herein)
           -----    -----

     The  units  of  limited  partnership  are  not  publicly  traded,
therefore, registrant cannot compute the aggregate market value of the
voting units held by non-affiliates of the registrant.

     DOCUMENTS INCORPORATED BY REFERENCE:  NONE.
<PAGE>
<PAGE>
                             FORM 10-K405

                    DYCO 1978-1 OIL AND GAS PROGRAM
                   (A Minnesota limited partnership)

                           TABLE OF CONTENTS



PART I  . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    1
     ITEM 1.   BUSINESS . . . . . . . . . . . . . . . . . . . . .    1
     ITEM 2.   PROPERTIES . . . . . . . . . . . . . . . . . . . .    6
     ITEM 3.   LEGAL PROCEEDINGS  . . . . . . . . . . . . . . . .   11
     ITEM 4.   SUBMISSION  OF  MATTERS  TO   A  VOTE  OF  LIMITED
               PARTNERS . . . . . . . . . . . . . . . . . . . . .   12

PART II . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13
     ITEM 5.   MARKET  FOR  THE REGISTRANT'S  LIMITED PARTNERSHIP
               UNITS AND RELATED LIMITED PARTNER MATTERS  . . . .   13
     ITEM 6.   SELECTED FINANCIAL DATA  . . . . . . . . . . . . .   14
     ITEM 7.   MANAGEMENT'S DISCUSSION AND ANALYSIS  OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS  . . . . . . .   15
     ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA  . . .   22
     ITEM 9.   CHANGES  IN AND DISAGREEMENTS  WITH ACCOUNTANTS ON
               ACCOUNTING AND FINANCIAL DISCLOSURE  . . . . . . .   34

PART III  . . . . . . . . . . . . . . . . . . . . . . . . . . . .   34
     ITEM 10.  DIRECTORS   AND   EXECUTIVE   OFFICERS    OF   THE
               REGISTRANT . . . . . . . . . . . . . . . . . . . .   34
     ITEM 11.  EXECUTIVE COMPENSATION . . . . . . . . . . . . . .   35
     ITEM 12.  SECURITY  OWNERSHIP  OF CERTAIN  BENEFICIAL OWNERS
               AND MANAGEMENT . . . . . . . . . . . . . . . . . .   39
     ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED
               TRANSACTIONS . . . . . . . . . . . . . . . . . . .   40

PART IV . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   41
     ITEM 14.  EXHIBITS,   FINANCIAL  STATEMENT   SCHEDULES,  AND
               REPORTS ON FORM 8-K  . . . . . . . . . . . . . . .   41
     SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . .   43

                                  ii
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                                PART I


ITEM 1.   BUSINESS

     General

     The Dyco  Oil and  Gas Program  1978-1  Limited Partnership  (the
"Program")  is   a  Minnesota  limited  partnership   engaged  in  the
production of oil and gas.   The Program commenced operations on April
1,  1978 with the primary financial objective of investing its limited
partners' subscriptions in the  drilling of oil and gas  prospects and
then distributing to its limited partners all available cash flow from
the  Program's   on-going  production  operations.     Dyco  Petroleum
Corporation  ("Dyco") serves as  the General  Partner of  the Program.
See "Item 2. Properties"  for a description of the  Program's reserves
and properties.

     The limited  partnership agreement for the  Program (the "Program
Agreement") provides  that limited partners  are allocated 99%  of all
Program  costs and revenues and Dyco, as General Partner, is allocated
1% of all Program  costs and revenues.  Included in such  costs is the
Program's reimbursement  to Dyco of the  Program's proportionate share
of  Dyco's  geological, engineering,  and  general and  administrative
expenses.

     Dyco  serves  as  General  Partner of  32  limited  partnerships,
including  the Program.  Dyco  is a wholly-owned  subsidiary of Samson
Investment  Company.    Samson  Investment  Company  and  its  various
corporate subsidiaries,  including  Dyco, (collectively,  the  "Samson
Companies")  are  engaged in  the  production and  development  of and
exploration for oil and gas reserves and the acquisition and operation
of producing properties.   At December 31, 1996, the  Samson Companies
owned interests in approximately  16,000 oil and gas wells  located in
19 states of the United States  and Canada, Venezuela, and Russia.  At
December 31,  1996, the Samson Companies  operated approximately 2,600
oil and  gas wells  located  in 15  states of  the  United States  and
Canada, Venezuela, and Russia.

     As a limited partnership, the Program has no officers, directors,
or employees.   It  relies instead  on the personnel  of Dyco  and the
other Samson Companies.   As of February 1, 1997, the Samson Companies
employed  approximately  780 persons.    No employees  are  covered by
collective  bargaining agreements,  and management  believes that  the
Samson Companies provide a sound  employee relations environment.  For
information regarding the  executive officers of  Dyco, see "Item  10.
Directors and Executive Officers of the Registrant."

                                   1
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     Dyco's and the Program's  principal place of business  is located
at  Samson Plaza, Two West  Second Street, Tulsa,  Oklahoma 74103, and
their telephone number is (918) 583-1791 or (800) 283-1791.

     Funding

     Although  the  Program Agreement  permits  the  Program to  incur
borrowings, the Program's operations and expenses are currently funded
out of the Program's  revenues from oil and gas sales.   Dyco may, but
is not required to, advance funds to the Program for the same purposes
for which Program borrowings are authorized.


     Principal Products Produced and Services Rendered

     The Program's  sole business is the development and production of
oil and gas with a  concentration on gas.   The Program  does not hold
any patents, trademarks, licenses,  or concessions and is not  a party
to any government contracts.  The Program has no backlog of orders and
does  not participate  in research  and  development activities.   The
Program is  not presently  encountering shortages of  oilfield tubular
goods, compressors, production material, or other equipment.


     Oil, Gas, and Environmental Control Regulations

     Regulation of Production Operations -- The  production of oil and
gas is subject  to extensive  federal and state  laws and  regulations
governing  a  wide variety  of  matters,  including  the drilling  and
spacing  of wells, allowable rates  of production, prevention of waste
and pollution, and protection of the  environment.  In addition to the
direct costs borne in complying with such  regulations, operations and
revenues  may be impacted to the extent that certain regulations limit
oil and gas production to below economic levels.


                                   2
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     Regulation of Sales and Transportation of Oil and Gas -- Sales of
crude oil and condensate are made  by the Program at market prices and
are not subject to price controls.  The sale of gas  may be subject to
both federal  and  state  laws and  regulations,  including,  but  not
limited to, the  Natural Gas Act of 1938 (the  "NGA"), the Natural Gas
Policy  Act of 1978 (the  "NGPA"), and regulations  promulgated by the
Federal Energy  Regulatory Commission (the "FERC") under  the NGA, the
NGPA, and other statutes.  The provisions of the  NGA and the NGPA, as
well as the  regulations thereunder,  are complex and  affect all  who
produce, resell,  transport, or  purchase gas, including  the Program.
Although  virtually all of the Program's gas production is not subject
to  price regulation, the NGA,  NGPA, and FERC  regulations affect the
availability of  gas transportation  services and  the ability of  gas
consumers  to continue  to  purchase or  use  gas at  current  levels.
Accordingly,  such  regulations  may  have a  material  effect  on the
Program's operations and projections of future oil and gas  production
and revenues.

     Future  Legislation  -- Legislation  affecting  the  oil and  gas
industry is under constant review for amendment or expansion.  Because
such  laws and  regulations are  frequently amended  or reinterpreted,
management is unable to predict what additional energy legislation may
be proposed or enacted or the future cost and impact of complying with
existing or future regulations.

     Regulation  of the  Environment --  The Program's  operations are
subject to  numerous laws and  regulations governing the  discharge of
materials into the environment  or otherwise relating to environmental
protection.  Compliance with such laws and regulations,  together with
any penalties resulting from noncompliance therewith, may increase the
cost of the Program's  operations or may affect the  Program's ability
to  complete, in  a  timely fashion,  existing  or future  activities.
Management  anticipates  that  various   local,  state,  and   federal
environmental control  agencies will have an increasing  impact on oil
and gas operations.

     Significant Customers

     Purchases  of gas by El Paso Energy Marketing Company ("El Paso")
accounted for approximately 88.4%  of the Program's oil and  gas sales
during the year ended December 31, 1996.  In the event of interruption
of purchases by this significant customer or the cessation or material
change in availability of  open-access transportation by the Program's
pipeline   transporters,  the  Program  may  encounter  difficulty  in
marketing  its   gas  and   in  maintaining  historic   sales  levels.
Alternative purchasers or transporters may not be readily available.


                                   3
<PAGE>
<PAGE>
     The Program's  principal customers  for crude oil  production are
refiners  and other companies which have  pipeline facilities near the
producing properties of the Program.  In the event pipeline facilities
are  not  conveniently available  to  production areas,  crude  oil is
usually trucked by purchasers to storage facilities.

     Competition and Marketing

     The domestic oil and  gas industry is highly competitive,  with a
large  number of companies and individuals  engaged in the exploration
and development of oil and gas properties.  The ability of the Program
to produce  and market oil and  gas profitably depends on  a number of
factors that  are beyond  the control of  the Program.   These factors
include  worldwide political instability  (especially in oil-producing
regions),  United Nations  export embargoes, the  supply and  price of
foreign  imports of oil and gas,  the level of consumer product demand
(which  can be  heavily  influenced by  weather patterns),  government
regulations  and  taxes, the  price  and  availability of  alternative
fuels,  the overall  economic  environment, and  the availability  and
capacity of transportation  and processing facilities.  The  effect of
these  factors on  future  oil  and  gas  industry  trends  cannot  be
accurately predicted or anticipated.

     The most  important variable affecting the  Program's revenues is
the prices  received for the sale  of oil and gas.   Predicting future
prices  is very  difficult.   Concerning past  trends, average  yearly
wellhead gas prices in the United States have been relatively volatile
for a  number of years.   For  the past  ten years,  such prices  have
generally  been in  the $1.40  to $2.00  per Mcf  range, significantly
below  prices received in the early 1980s.   Average gas prices in the
last several  months have,  however, been  somewhat higher  than those
yearly averages.  It is  not known whether this is a  short-term trend
or will lead to higher average gas prices on a longer-term basis.

     Substantially all of the Program's 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.   Spot
prices  for the Program's  gas increased from  approximately $2.00 per
Mcf at  December 31, 1995 to  approximately $3.57 per Mcf  at December
31, 1996.   Such  prices were on  an MMBTU basis  and differ  from the
prices  actually received  by the  Program due  to transportation  and
marketing  costs,  BTU adjustments,  and  regional  price and  quality
differences.


                                   4
<PAGE>
<PAGE>
     Due to global consumption and supply trends over the last several
months, oil prices have  recently been higher than the  yearly average
prices of  the late to  mid-1980s and  early 1990s.   It is not  known
whether  this trend  will  continue.   Prices  for the  Program's  oil
increased from approximately $18.50 per barrel at December 31, 1995 to
approximately $23.75 per barrel at December 31, 1996.  

     Future prices  for both oil and gas will likely be different from
(and  may be lower  than) the prices  in effect on  December 31, 1996.
Primarily due to heating  season demand, year-end prices in  many past
years  have tended  to  be higher,  and  in some  cases  significantly
higher, than the yearly average price actually received by the Program
for at  least the following year.   In particular, it  should be noted
that  December 31, 1996 prices  were much higher  than year-end prices
for the last several  years and substantially higher than  the average
prices received in each of the last several years.  It is not possible
to predict whether the December 1996 pricing level is  indicative of a
new trend toward higher  energy prices or a short-term  deviation from
the recent history of low to moderate prices; therefore, management is
unable  to  predict  whether  future  oil  and  gas  prices  will  (i)
stabilize, (ii) increase, or (iii) decrease.

     Insurance Coverage 

     The  Program is  subject  to all  of the  risks  inherent in  the
exploration for  and production  of oil  and gas,  including blowouts,
pollution,  fires,  and  other  casualties.    The  Program  maintains
insurance  coverage as  is customary  for entities  of a  similar size
engaged in operations similar to  that of the Program, but  losses can
occur  from  uninsurable risks  or in  amounts  in excess  of existing
insurance coverage.   The occurrence  of an  event which is  not fully
covered  by  insurance could  have a  material  adverse effect  on the
Program's financial position and results of operations.

                                   5
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ITEM 2.   PROPERTIES

     Well Statistics

     The  following  table sets  forth the  numbers  of gross  and net
productive wells of the Program as of December 31, 1996.

                          Well Statistics(1)

                        As of December 31, 1996

            Gross productive wells(2):
              Oil                               1
              Gas                              17
                                               --
                Total                          18

            Net productive wells(3):
              Oil                             .09
              Gas                            1.04
                                             ----
                Total                        1.13

----------

(1)  The designation  of a well as an oil well  or gas well is made by
     Dyco based on the relative amount of oil and gas reserves for the
     well.   Regardless of a  well's oil  or gas  designation, it  may
     produce oil, gas, or both oil and gas.
(2)  As used  throughout  this Annual  Report  on Form  10-K  ("Annual
     Report"),  "Gross Well"  refers  to a  well  in which  a  working
     interest is owned.  The number of gross wells is the total number
     of wells in which a working interest is owned.
(3)  As used throughout this  Annual Report, "Net Well" refers  to the
     sum of  the fractional  working interests  owned  in gross  wells
     expressed as whole numbers and fractions thereof.  For example, a
     15% leasehold interest in  a well represents one Gross  Well, but
     0.15 Net Well.
 

     Drilling Activities  

     The Program  participated in no drilling activities  for the year
ended December 31, 1996.  


                                   6
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     Oil and Gas Production, Revenue, and Price History 

     The following  table sets  forth  certain historical  information
concerning the oil  (including condensates) and gas production, net of
all royalties, overriding royalties,  and other third party interests,
of the Program, revenues attributable to such  production, and certain
price and cost information.  

                          Net Production Data

                                    Year Ended December 31,
                                 ----------------------------
                                   1996      1995      1994
                                 --------  --------  --------
Production:
  Oil (Bbls)(1)                     1,239       865     1,342
  Gas (Mcf)(2)                     96,208   128,537   138,390

Oil and gas sales:
  Oil                            $ 21,949  $ 12,693  $ 19,093
  Gas                             200,611   175,522   199,462
                                  -------   -------   -------

    Total                        $222,560  $188,215  $218,555
                                  =======   =======   =======

Total direct operating expenses  $ 62,715  $ 63,111  $ 75,984
                                  =======   =======   =======

Direct operating expenses as a
  percentage of oil and gas
  sales                             28.2%     33.5%     34.8%

Average sales price:
  Per barrel of oil                $17.72    $14.67    $14.23
  Per Mcf of gas                     2.09      1.37      1.44

Direct operating expenses per
  equivalent Mcf of gas(3)         $  .61    $  .47    $  .52

----------

(1)  As used  throughout this Annual Report, "Bbls"  refers to barrels
     of  42 U.S. gallons and  represents the basic  unit for measuring
     the production of crude oil and condensate oil.
(2)  As  used throughout this Annual Report, "Mcf" refers to volume of
     1,000  cubic feet  under  prescribed conditions  of pressure  and
     temperature  and  represents the  basic  unit  for measuring  the
     production of gas.


                                   7
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(3)  Oil production is converted to gas equivalents at the rate of six
     Mcf  per  barrel,  representing  the  estimated  relative  energy
     content  of gas and oil, which rate is not necessarily indicative
     of the relationship of oil and gas prices.  The respective prices
     of  oil  and gas  are  affected by  market and  other  factors in
     addition to relative energy content.


     Proved Reserves and Net Present Value

     The following table sets forth the Program's estimated proved oil
and gas reserves  and net present  value therefrom as of  December 31,
1996.   The schedule of quantities of  proved oil and gas reserves was
prepared  by Dyco  in  accordance with  the  rules prescribed  by  the
Securities  and Exchange Commission  (the "SEC").   As used throughout
this  Annual  Report,  "proved  reserves" refers  to  those  estimated
quantities of crude  oil, gas,  and gas liquids  which geological  and
engineering  data  demonstrate   with  reasonable   certainty  to   be
recoverable  in future years from  known oil and  gas reservoirs under
existing economic and operating conditions.

     Net  present value  represents estimated  future gross  cash flow
from the production and sale of proved reserves, net of  estimated oil
and  gas  production costs  (including  production  taxes, ad  valorem
taxes,  and  operating  expenses),  and estimated  future  development
costs, discounted at 10% per annum.  Net present value attributable to
the Program's proved reserves  was calculated on the basis  of current
costs and prices at December 31, 1996.  Such prices were not escalated
except  in  certain circumstances  where  escalations  were fixed  and
readily   determinable   in   accordance   with   applicable  contract
provisions.  The prices  used by Dyco in  calculating the net  present
value attributable to the Program's proved reserves do not necessarily
reflect  market  prices  for  oil  and  gas production  subsequent  to
December 31, 1996.  Furthermore, gas prices at December 31,  1996 were
much  higher than  the price  used for  determining the  Program's net
present value of  proved reserves for the year ended December 31, 1995
and substantially higher than  average prices received by  the Program
in each of the last several years.  There can be no assurance that the
prices  used in  calculating the  net present  value of  the Program's
proved reserves at  December 31,  1996 will actually  be realized  for
such production.

                                   8
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     The  process  of  estimating oil  and  gas  reserves is  complex,
requiring  significant  subjective  decisions  in  the  evaluation  of
available  geological,  engineering,   and  economic  data   for  each
reservoir.   The data for  a given reservoir  may change substantially
over time as a  result of, among other things,  additional development
activity,  production  history,  and  viability  of  production  under
varying economic  conditions; consequently, it is  reasonably possible
that material revisions to existing reserve estimates may occur in the
near future.  Although every reasonable effort has been made to ensure
that the reserve estimates reported herein represent the most accurate
assessment  possible,  the significance  of  the  subjective decisions
required and variances  in available data for various  reservoirs make
these estimates generally less  precise than other estimates presented
in connection with financial statement disclosures. 



                          Proved Reserves and
                           Net Present Value
                         From Proved Reserves

                        As of December 31, 1996


          Estimated proved reserves:
            Gas (Mcf)                           504,395
            Oil and liquids (Bbls)                1,478

          Net present value
            (discounted at 10% per annum)      $922,876



     No  estimates of the proved reserves of the Program comparable to
those included herein  have been  included in reports  to any  federal
agency other than  the SEC.   Additional information  relating to  the
Program's  proved reserves  is contained  in Note  4 to  the Program's
financial statements, included in Item 8 of this Annual Report. 

                                   9
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     Significant Properties

     As of December 31, 1996, the Program's properties consisted of 18
gross (1.13  net) productive  wells.   The Program  also owned  a non-
working interest in an additional 4 wells.   Affiliates of the Program
operate 8  (36%) of  its total wells.   As  of December 31,  1996, the
Program had estimated total proved reserves of 504,395 Mcf of gas  and
1,478 barrels  of oil,  with a  present value (discounted  at 10%  per
annum)  of estimated future net cash flows of $922,876.  Substantially
all of  the Program's reserves  are located  in the Anadarko  Basin of
western  Oklahoma and the Texas panhandle, which is an established oil
and gas producing basin.  All of the Program's properties  are located
onshore in the continental United States.

     As of December 31, 1996, the Program's properties in the Anadarko
Basin consisted of 15 gross (0.63 net) wells.  The  Program also owned
a non-working  interest in an  additional 3 wells.   Affiliates of the
Program operate  5 (28%) of  its total  Anadarko Basin wells.   As  of
December  31, 1996, the Program had estimated total proved reserves in
the  Anadarko   Basin  of  approximately   467,923  Mcf  of   gas  and
approximately   557  barrels  of  crude  oil,  with  a  present  value
(discounted  at 10% per  annum) of estimated  future net  cash flow of
approximately $849,960.


     Title to Oil and Gas Properties

     Management believes  that the  Program has satisfactory  title to
its oil and gas properties.   Record title to substantially all of the
Program's properties is held by Dyco as nominee.

     Title  to  the  Program's  properties  is  subject  to  customary
royalty,  overriding royalty,  carried,  working,  and  other  similar
interests and contractual  arrangements customary in  the oil and  gas
industry, to  liens  for  current taxes  not  yet due,  and  to  other
encumbrances.  Management believes that such burdens do not materially
detract  from the  value  of such  properties  or from  the  Program's
interest  therein  or  materially  interfere  with  their  use in  the
operation of the Program's business.  

                                  10
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ITEM 3.   LEGAL PROCEEDINGS

     On November 12,  1993, two  royalty owners filed  a class  action
lawsuit  against Dyco in which the plaintiffs alleged entitlement to a
share of the proceeds of a take-or-pay settlement with a gas purchaser
which involved the Spurlin Unit #1-23 well (Chandler, et  al. v. Dyco,
C-93-67, District Court of  Dewey County, Oklahoma).  The  Program has
an approximate 8.7% working  interest in the Spurlin Unit  #1-23 well.
The lawsuit also alleged claims based on breach of contract, bad faith
breach  of contract, breach of  an implied covenant  to market, unjust
enrichment,  and constructive fraud and requested  an accounting and a
temporary restraining  order.   On  September  10, 1996  the  Oklahoma
Supreme  Court  ruled in  a separate  lawsuit  that owners  of royalty
interests in Oklahoma oil and gas  properties do not have the right to
share in the proceeds of take-or-pay settlements.  As a result of such
ruling, the plaintiffs have dismissed the Chandler case.  

     On March  5,  1992 Walter  K.  Spurlin, et  al.  filed a  lawsuit
against Dyco in which the plaintiffs alleged that Dyco, as operator of
the Spurlin Unit #1-23 well, failed to respond to their request for an
accounting of production.  (Spurlin, et al. v. Dyco, et al., C-92-014,
District Court of Roger Mills  County, Oklahoma.)  The Program has  an
approximate 8.7% working interest in the Spurlin Unit #1-23 well.  The
plaintiffs  are seeking a full  accounting of all  production from the
well and judgment  for breach of contract  and their alleged  share of
the proceeds  from certain gas  contract settlements.   The plaintiffs
have not quantified  the amount of  their alleged  damages.  Dyco  has
filed  its answer  in  the  matter  in  which it  denied  all  of  the
plaintiffs' allegations  and discovery is  ongoing.   Dyco intends  to
vigorously  defend the  lawsuit.  On  April 21, 1992  Dyco's motion to
dismiss plaintiffs' claim for tortious breach of contract was granted,
thereby eliminating  any punitive  damages claims.   On  September 10,
1996  the  Oklahoma Supreme  Court ruled  in  a separate  lawsuit that
owners of royalty interests in Oklahoma oil and gas properties  do not
have  the right to share  in the proceeds  of take-or-pay settlements.
On February 11, 1997 the Oklahoma Supreme Court denied the plaintiffs'
request  for  a rehearing  in  this separate  lawsuit;  therefore, its
holding that Oklahoma royalty owners do not have the right to share in
the proceeds of  take-or-pay settlements should be dispositive  of the
Spurlin case.

     To  the  knowledge of  the management  of  Dyco and  the Program,
neither Dyco, the Program, nor the Program's properties are subject to
any litigation, the results of  which would have a material effect  on
the Program's or Dyco's financial condition or operations.  


                                  11
<PAGE>
<PAGE>
ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF LIMITED PARTNERS

     There  were no  matters  submitted to  a  vote of  the  Program's
limited partners during 1996.


                                  12
<PAGE>
<PAGE>
                                PART II

ITEM 5.   MARKET  FOR THE  REGISTRANT'S LIMITED PARTNERSHIP  UNITS AND
          RELATED LIMITED PARTNER MATTERS

     The Program does not  have an established trading market  for its
units of  limited partnership  interest  ("Units").   Pursuant to  the
terms of the Program Agreement, Dyco, as General Partner, is obligated
to  annually issue a repurchase offer which  is based on the estimated
future  net  revenues from  the Program's  reserves and  is calculated
pursuant to the terms of the Program Agreement.  Such repurchase offer
is recalculated monthly in order to reflect cash distributions made to
the limited partners  and extraordinary events.   The following  table
sets forth,  for the  periods indicated,  Dyco's repurchase  offer per
Unit and the  amount of the Program's cash distributions  per Unit for
the  same  period.    For  purposes  of this  Annual  Report,  a  Unit
represents an initial subscription of $5,000 to the Program.  


                             Repurchase      Cash
                                Price    Distributions
                             ----------  -------------

       1995:
         First Quarter          $166          $ -
         Second Quarter          226            -
         Third Quarter           226            -
         Fourth Quarter          186           40

       1996:
         First Quarter          $186          $ -
         Second Quarter          166           20
         Third Quarter           194            -
         Fourth Quarter          169           25

       1997:
         First Quarter          $169          (1)

----------

(1)  To be declared in March 1997.  

     The  Program has  2,424 Units  outstanding and  approximately 802
limited partners of record.


                                  13
<PAGE>
<PAGE>
ITEM 6.   SELECTED FINANCIAL DATA
<TABLE>
<CAPTION>
     The following table presents selected financial data for the Program.  This data should be
read in  conjunction with the  financial statements  of the Program,  and the  respective notes
thereto, included  elsewhere in  this Annual  Report.   See "Item  8. Financial  Statements and
Supplementary Data."  

                                                           December 31,
                                        --------------------------------------------------
                                          1996      1995      1994      1993       1992
                                        --------  --------  --------  --------  ----------
<S>                                     <C>       <C>       <C>       <C>       <C>                     
Summary of Operations:
  Oil and gas sales                     $222,560  $188,215  $218,555  $273,676   $261,541
  Total revenues                         224,511   190,843   220,607   279,937    361,070

  Lease operating expenses                46,425    49,891    59,991    36,670     18,408
  Production taxes                        16,290    13,220    15,993    19,810     11,448
  General and administrative
    expenses                              33,079    32,626    30,575    34,612     39,010
  Depreciation, depletion,
    and amortization of
    oil and gas properties                21,753    33,373    74,132    65,088     64,665
  Impairment provision                      -       13,949      -         -          -

  Net income                             106,964    47,784    39,916   123,757    227,539
    per Unit                                  44        20        16        51         94
  Cash distributions                     109,080    96,960   157,560   181,800     72,720
    per Unit                                  45        40        65        75         30

Summary Balance Sheet Data:
  Total assets                           314,601   323,611   365,572   632,698    695,315
  Partners' capital                      289,074   291,190   340,366   458,010    516,053

</TABLE>

                                               14
<PAGE>
<PAGE>
ITEM 7.   MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
          AND RESULTS OF OPERATIONS

     Use of Forward-Looking Statements and Estimates

     This  Annual 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  Annual  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 Program.

     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.

     General Discussion

     The following  general discussion  should be read  in conjunction
with the analysis of  results of operations provided below.   The most
important  variable affecting  the  Program's revenues  is the  prices
received for the  sale of oil  and gas.   Predicting future prices  is
very  difficult.  Concerning past trends,  average yearly wellhead gas
prices in the United States have been relatively volatile for a number
of years.  For the past ten years, such prices have generally been  in
the  $1.40 to $2.00 per Mcf range, significantly below prices received
in  the early 1980s.   Average gas  prices in the  last several months
have, however, been somewhat higher than those yearly averages.  It is
not known  whether this is a  short-term trend or will  lead to higher
average gas prices on a longer-term basis.

                                  15
<PAGE>
<PAGE>
     Substantially all of the Program's 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.   Spot
prices for the  Program's gas increased  from approximately $2.00  per
Mcf at  December 31, 1995 to  approximately $3.57 per  Mcf at December
31,  1996.  Such  prices were  on an MMBTU  basis and  differ from the
prices  actually  received by  the Program  due to  transportation and
marketing  costs,  BTU adjustments,  and  regional  price and  quality
differences.

     Due to global consumption and supply trends over the last several
months, oil prices have  recently been higher than the  yearly average
prices of  the late to  mid-1980s and  early 1990s.   It is not  known
whether  this trend  will  continue.   Prices  for the  Program's  oil
increased from approximately $18.50 per barrel at December 31, 1995 to
approximately $23.75 per barrel at December 31, 1996.  

     Future prices for both oil and  gas will likely be different from
(and may be  lower than) the  prices in effect  on December 31,  1996.
Primarily due to heating  season demand, year-end prices in  many past
years  have tended  to  be higher,  and  in some  cases  significantly
higher, than the yearly average price actually received by the Program
for at  least the following year.   In particular, it  should be noted
that  December 31, 1996 prices  were much higher  than year-end prices
for the last several  years and substantially higher than  the average
prices received in each of the last several years.  It is not possible
to predict  whether the December 1996 pricing level is indicative of a
new trend toward higher  energy prices or a short-term  deviation from
the recent history of low to moderate prices; therefore, management is
unable  to  predict  whether  future  oil  and  gas  prices  will  (i)
stabilize, (ii) increase, or (iii) decrease.

                                  16
<PAGE>
<PAGE>
     Results of Operations

                 Year Ended December 31, 1996 Compared
                    to Year Ended December 31, 1995
                 -------------------------------------

     Total  oil and gas sales  increased $34,345 (18.2%)  for the year
ended  December 31,  1996 as compared  to the year  ended December 31,
1995.     Of   this  increase,   approximately  $3,000   and  $93,000,
respectively, were related to  increases in the average prices  of oil
and  gas sold and  approximately $7,000 was related  to an increase in
volumes of oil sold,  partially offset by a decrease  of approximately
$68,000 related to a decrease in volumes of  gas sold.  Volumes of oil
sold increased 374 barrels, while volumes of gas sold decreased 32,329
Mcf for the year ended December 31, 1996 as compared to the year ended
December  31,  1995.   The decrease  in volumes  of gas  sold resulted
primarily from  positive prior period  volume adjustments made  by the
purchaser on three wells during the year ended December 31, 1995.  The
increase in volumes of oil sold resulted primarily from the release of
previously withheld  revenues by  the operator  of one  well due to  a
production tax  adjustment settlement  during the year  ended December
31,  1996.  Average oil and gas  prices increased to $17.72 per barrel
and $2.09 per Mcf, respectively, for the year ended December  31, 1996
from $14.67 per barrel  and $1.37 per Mcf, respectively,  for the year
ended December 31, 1995.

     Oil  and  gas  production  expenses  (including  lease  operating
expenses and  production taxes)  remained relatively constant  for the
year ended December 31,  1996 as compared  to the year ended  December
31,  1995.   As  a percentage  of oil  and  gas sales,  these expenses
decreased to 28.2% for the year ended December 31, 1996 from 33.5% for
the  year ended  December  31, 1995.    This percentage  decrease  was
primarily due  to the increases in  the average prices of  oil and gas
sold  during the year ended December 31,  1996 as compared to the year
ended December 31, 1995.

     Depreciation,  depletion,   and  amortization  of  oil   and  gas
properties  decreased $11,620 (34.8%) for the  year ended December 31,
1996 as compared to the  year ended December 31, 1995.   This decrease
resulted  primarily from the decreases  in volumes of  gas sold during
the  year ended  December  31,  1996 as  compared  to the  year  ended
December 31, 1995.  As a percentage of oil and gas sales, this expense
decreased to 9.8% for the year ended December 31, 1996  from 17.7% for
the  year ended  December  31, 1995.    This percentage  decrease  was
primarily due  to the increases in  the average prices of  oil and gas
sold  during the year ended December 31,  1996 as compared to the year
ended December 31, 1995.

                                  17
<PAGE>
<PAGE>
     As a  result of declines in  gas prices during the  first part of
1995, the  Program recognized a  non-cash charge  against earnings  of
$13,949  during the  year ended  December 31,  1995.   This impairment
provision  for oil  and  gas  properties  was  necessary  due  to  the
unamortized  costs of  oil and  gas properties  exceeding the  present
value  of  estimated  future  net  revenues  from  such  oil  and  gas
properties.  No  similar charge  was necessary during  the year  ended
December 31, 1996.

     General  and administrative expenses remained relatively constant
for the  year ended December  31, 1996 as  compared to the  year ended
December  31,  1995.   As a  percentage of  oil  and gas  sales, these
expenses  decreased to 14.9% for the year ended December 31, 1996 from
17.3% for the  year ended December 31, 1995.  This percentage decrease
was primarily  due to the increases  in the average prices  of oil and
gas sold  during the year ended  December 31, 1996 as  compared to the
year ended December 31, 1995.

                 Year Ended December 31, 1995 Compared
                    to Year Ended December 31, 1994
                 -------------------------------------

     Total  oil and gas sales  decreased $30,340 (13.9%)  for the year
ended December  31, 1995 as  compared to the  year ended December  31,
1994.     Of   this  decrease,   approximately  $7,000   and  $13,000,
respectively, were related to decreases in volumes of oil and gas sold
and approximately $10,000  was related  to a decrease  in the  average
price of gas sold.   Volumes of oil and gas sold decreased 477 barrels
and 9,853 Mcf,  respectively, for the year ended  December 31, 1995 as
compared to the year ended December 31, 1994.  The decrease in volumes
of  oil sold  was primarily due  to a  dispute in  which revenues were
withheld by  the operator of one  well during the year  ended December
31, 1995.  The  decrease in volumes of gas sold was primarily a result
of significant  positive prior period volume  adjustments from several
purchasers  on  two wells  during the  year  ended December  31, 1994.
Average gas  prices decreased  to $1.37  per Mcf  for  the year  ended
December  31, 1995 from $1.44 per Mcf  for the year ended December 31,
1994 while average oil prices   increased to $14.67 per barrel for the
year ended December 31, 1995 from $14.23 per barrel for the year ended
December 31, 1994.  

     Oil  and  gas  production  expenses  (including  lease  operating
expenses and production taxes) decreased $12,873 (16.9%) for the  year
ended  December 31, 1995  as compared to  the year  ended December 31,
1994.   This decrease was primarily a  result of higher general repair
and maintenance expenses incurred  during the year ended  December 31,
1994.  As  a percentage of oil and gas  sales, these expenses remained
relatively constant at  33.5% for the year ended December  31, 1995 as
compared to 34.8% for the year ended December 31, 1994. 

                                  18
<PAGE>
<PAGE>
     Depreciation,  depletion,   and  amortization  of   oil  and  gas
properties  decreased $40,759 (55.0%) for the  year ended December 31,
1995  as compared to  the year ended  December 31, 1994.   This dollar
decrease  resulted primarily from the  decrease in volumes  of oil and
gas sold  during the year ended  December 31, 1995 as  compared to the
year ended December 31, 1994 and a significant upward  revision in the
estimate  of  remaining  gas reserves  at  December 31,  1995.    As a
percentage of oil and gas  sales, this expense decreased to  17.7% for
the  year  ended  December 31,  1995  from  33.9% for  the  year ended
December 31, 1994.  This percentage decrease was primarily a result of
the  dollar  decrease  in  depreciation, depletion,  and  amortization
discussed above.  

     As a  result of declines in  gas prices during the  first part of
1995,  the Program recognized  a non-cash  charge against  earnings of
$13,949  during the  year ended  December 31,  1995.   This impairment
provision  for oil  and  gas  properties  at  December  31,  1995  was
necessary  due  to the  unamortized costs  of  oil and  gas properties
exceeding the present value of estimated future net revenues from such
oil and gas properties.   No similar charge  was necessary during  the
year ended December 31, 1994.  

     General and administrative expenses  increased slightly by $2,051
(6.7%) for  the year ended December  31, 1995 as compared  to the year
ended December 31,  1994.   This increase resulted  primarily from  an
increase  in professional fees and an increase in printing and postage
fees during the year ended  December 31, 1995 as compared to  the year
ended December 31, 1994.   As a percentage of oil and gas sales, these
expenses increased slightly to  17.3% for the year ended  December 31,
1995 from 14.0% for the year ended December 31, 1994.  This percentage
increase  was  primarily due  to the  dollar  increase in  general and
administrative expenses and  the decrease  in volumes of  oil and  gas
sold during the year ended  December 31, 1995 as compared to  the year
ended December 31, 1994.  

     Liquidity and Capital Resources 

     Net proceeds from operations less necessary operating capital are
distributed  to the limited partners on  a quarterly basis.  See "Item
5.  Market for the Registrant's  Limited Partnership Units and Related
Limited  Partner Matters."  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  reserves,  thereby resulting  in  a  positive
economic  impact.   Assuming  production  levels  for the  year  ended
December 31, 1996, the Program's proved reserve quantities at December
31, 1996 would have a life of approximately 5.2 years for gas reserves
and 1.2 years for oil reserves.   However, since the Program's reserve
estimates are based on oil and gas  prices at December 31, 1996, it is
possible  that a  significant  decrease in  oil  and gas  prices  from
December  31,  1996  levels  will  reduce  such   reserves  and  their
corresponding life-span.

                                  19
<PAGE>
<PAGE>
     The  Program's  available  capital  from  the  limited  partners'
subscriptions  has been spent on  oil and gas  drilling activities and
there  should be no  further material capital  resource commitments in
the  future.    The  Program  has  no  debt  commitments.    Cash  for
operational  purposes  will  be  provided   by  current  oil  and  gas
production.

     The Samson Companies are  currently in the process of  evaluating
certain oil and gas properties owned by the Program and other entities
of the  Samson Companies.    As a  result of  such  evaluation, it  is
expected  that certain  of  these properties  will  be placed  in  bid
packages and offered  for sale during the  first half of 1997.   It is
likely that  the  Program  will  have  an  interest  in  some  of  the
properties being sold.   It is currently  estimated that the  value of
such sales, as  a percentage of total proved reserves  of the Program,
will range from 1% to 10%.

     The decision to accept  any offer for  the purchase of a  Program
property will  be made by Dyco  after giving due  consideration to the
offer  price and  Dyco's  estimate of  both  the property's  remaining
proved reserves and  future operating  costs.  Net  proceeds from  the
sale  of any such  properties will be  distributed to  the Program and
will  be   included  in   the  calculation   of  the   Program's  cash
distributions  for  the quarter  immediately  following the  Program's
receipt of the proceeds.

     Following  completion  of any  sale,  the  Program's quantity  of
proved  reserves will  be  reduced.   It  is  also possible  that  the
Program's  repurchase  values  and  future  cash  distributions  could
decline as  a result of a reduction of the Program's reserve base.  On
the  other  hand, Dyco  believes  there will  be  beneficial operating
efficiencies  related to the Program's remaining properties.   This is
primarily due to  the fact  that the properties  being considered  for
sale  are more likely to bear a  higher ratio of operating expenses as
compared to  reserves than  the properties  not  being considered  for
sale.  The net effect  of such property sales is difficult  to predict
as of the date of this Annual Report.

                                  20
<PAGE>
<PAGE>
     There can  be no  assurance  as to  the amount  of the  Program's
future  cash  distributions.    The  Program's  ability  to make  cash
distributions  depends primarily upon the level of available cash flow
generated  by  the  Program's  operating  activities,  which  will  be
affected (either positively or negatively)  by many factors beyond the
control of  the Program, including the price of and demand for oil and
gas and  other market  and economic conditions.   Even  if prices  and
costs remain  stable, the amount  of cash available  for distributions
will decline over  time (as  the volume of  production from  producing
properties  declines) since  the Program  is not  replacing production
through acquisitions  of producing properties  and drilling.   If  the
Program  sells any of its properties as discussed above, the Program's
quantity of proved reserves will be reduced; therefore, it is possible
that the Program's future cash distributions could decline as a result
of a reduction of the Program's reserve base.


     Inflation and Changing Prices

     Prices  obtained for oil and gas  production depend upon numerous
factors,  including the  extent  of domestic  and foreign  production,
foreign  imports of oil, market  demand, domestic and foreign economic
conditions in general, and governmental regulations and tax laws.  The
general  level of  inflation in  the economy did  not have  a material
effect on the operations of the  Program in 1996.  Oil and gas  prices
have fluctuated  during recent years  and generally have  not followed
the same pattern as inflation.  See "Item 2. Properties - Oil and  Gas
Production, Revenue, and Price History."  

                                  21
<PAGE>
<PAGE>
ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                   REPORT OF INDEPENDENT ACCOUNTANTS


TO THE PARTNERS

DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP

     We have audited the financial statements  of the Dyco Oil and Gas
Program 1978-1 Limited  Partnership (a Minnesota limited  partnership)
as  listed  in Item  14(a)  of this  Annual  Report.   These financial
statements are the  responsibility of the  Program's management.   Our
responsibility is to express an  opinion on these financial statements
based on our audits.

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

     In  our  opinion,  the  financial statements  referred  to  above
present fairly,  in all material  respects, the financial  position of
the  Dyco Oil and Gas  Program 1978-1 Limited  Partnership at December
31, 1996  and 1995, and the  results of its operations  and cash flows
for each of the three years in the period ended December 31,  1996, in
conformity with generally accepted accounting principles. 



                                   COOPERS & LYBRAND L.L.P.
Tulsa, Oklahoma
February 10, 1997

                                  22
<PAGE>
<PAGE>
                       DYCO OIL AND GAS PROGRAM
                      1978-1 LIMITED PARTNERSHIP
                            Balance Sheets
                      December 31, 1996 and 1995

                                ASSETS
                                ------
                                                 1996      1995
                                               --------  --------
CURRENT ASSETS:
  Cash and cash equivalents                    $ 54,327  $ 29,217
  Accrued oil and gas sales, including
    $22,308 due from related
    parties at 1995 (Note 2)                     46,841    30,588
                                                -------   -------
    Total current assets                       $101,168  $ 59,805

NET OIL AND GAS PROPERTIES, utilizing the 
  full cost method                              172,686   220,435

DEFERRED CHARGE                                  40,747    43,371
                                                -------   -------
                                               $314,601  $323,611
                                                =======   =======

                   LIABILITIES AND PARTNERS' CAPITAL
                   ---------------------------------
CURRENT LIABILITIES:
  Accounts payable                             $  3,136  $  3,811
  Gas imbalance payable                            -        4,762
                                                -------   -------
    Total current liabilities                  $  3,136  $  8,573

ACCRUED LIABILITY                                22,391    23,848

PARTNERS' CAPITAL:
  General Partner, issued and outstanding,
    24 Units                                      2,891     2,912
  Limited Partners, issued and outstanding,
    2,400 Units                                 286,183   288,278
                                                -------   -------

    Total Partners' capital                    $289,074  $291,190
                                                -------   -------

                                               $314,601  $323,611
                                                =======   =======

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

                                  23
<PAGE>
<PAGE>
                       DYCO OIL AND GAS PROGRAM
                      1978-1 LIMITED PARTNERSHIP
                       Statements of Operations
         For the Years Ended December 31, 1996, 1995, and 1994


                                            1996      1995      1994
                                          --------  --------  --------

  
REVENUES:
  Oil and gas sales, including $175,522
    and $198,526 of sales to related
    parties in 1995 and 1994 (Note 2)     $222,560  $188,215  $218,555
  Interest                                   1,951     2,628     2,052
                                           -------   -------   -------

                                          $224,511  $190,843  $220,607

COSTS AND EXPENSES:
  Lease operating                         $ 46,425  $ 49,891  $ 59,991
  Production taxes                          16,290    13,220    15,993
  Depreciation, depletion, and
    amortization of oil and gas
    properties                              21,753    33,373    74,132
  Impairment provision                        -       13,949      -
  General and administrative                33,079    32,626    30,575
                                           -------   -------   -------

                                          $117,547  $143,059  $180,691
                                           -------   -------   -------

NET INCOME                                $106,964  $ 47,784  $ 39,916
                                           =======   =======   =======

GENERAL PARTNER (1%) - NET INCOME         $  1,070  $    478  $    399
                                           =======   =======   =======

LIMITED PARTNERS (99%) - NET INCOME       $105,894  $ 47,306  $ 39,517
                                           =======   =======   =======

NET INCOME per Unit                       $     44  $     20  $     16
                                           =======   =======   =======

UNITS OUTSTANDING                            2,424     2,424     2,424
                                           =======   =======   =======

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

                                  24
<PAGE>
<PAGE>
                       DYCO OIL AND GAS PROGRAM
                      1978-1 LIMITED PARTNERSHIP
                    Statements of Partners' Capital
         For the Years Ended December 31, 1996, 1995, and 1994


                                  General    Limited
                                  Partner   Partners      Total
                                 --------  ----------  ----------

Balances at December 31, 1993     $4,581    $453,429    $458,010
  Cash distributions             ( 1,576)  ( 155,984)  ( 157,560)
  Net income                         399      39,517      39,916
                                   -----     -------     -------

Balances at December 31, 1994     $3,404    $336,962    $340,366
  Cash distributions             (   970)  (  95,990)  (  96,960)
  Net income                         478      47,306      47,784
                                   -----     -------     -------

Balances at December 31, 1995     $2,912    $288,278    $291,190
  Cash distributions             ( 1,091)  ( 107,989)  ( 109,080)
  Net income                       1,070     105,894     106,964
                                   =====     =======     =======

Balances at December 31, 1996     $2,891    $286,183    $289,074
                                   =====     =======     =======

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

                                  25
<PAGE>
<PAGE>
                       DYCO OIL AND GAS PROGRAM
                      1978-1 LIMITED PARTNERSHIP
                       Statements of Cash Flows
         For the Years Ended December 31, 1996, 1995, and 1994

                                       1996        1995        1994
                                    ----------  ----------  ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                         $106,964     $47,784    $ 39,916
  Adjustments to reconcile net
    income to net cash provided
    (used) by operating activities:
    Depreciation, depletion, and
      amortization                     21,753      33,373      74,132
    Impairment provision                 -         13,949        -
    (Increase) decrease in accrued
      oil and gas sales             (  16,253)   (  3,992)     12,259
    (Increase) decrease
      in deferred charge                2,624    (     81)  (   6,269)
    Increase (decrease) in
      accounts payable              (     675)      1,030   (     852)
    Increase (decrease) in 
      gas imbalance payable         (   4,762)      4,762        -
    Increase (decrease) in 
      accrued liability             (   1,457)      1,423      22,425
    Decrease in related 
      party payable                      -           -      ( 171,055)
                                      -------      ------     -------
  Net cash provided (used) by
    operating activities             $108,194     $98,248   ($ 29,444)
                                      -------      ------     -------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Proceeds from the sale of
    oil and gas properties           $ 26,774     $   545    $    497
  Additions to oil and gas
    properties                      (     778)   (  8,385)  (  11,998)
                                      -------      ------     -------
  Net cash provided (used) by 
    investing activities             $ 25,996    ($ 7,840)  ($ 11,501)
                                      -------      ------     -------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Cash distributions                ($109,080)   ($96,960)  ($157,560)
                                      -------      ------     -------
  Net cash used by financing
    activities                      ($109,080)   ($96,960)  ($157,560)
                                      -------      ------     -------
NET INCREASE (DECREASE) IN CASH
  AND CASH EQUIVALENTS               $ 25,110    ($ 6,552)  ($198,505)

CASH AND CASH EQUIVALENTS AT
  BEGINNING OF PERIOD                  29,217      35,769     234,274
                                      -------      ------     -------
CASH AND CASH EQUIVALENTS AT
  END OF PERIOD                      $ 54,327     $29,217    $ 35,769
                                      =======      ======     =======

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

                                  26
<PAGE>
<PAGE>
          DYCO OIL AND GAS PROGRAM 1978-1 LIMITED PARTNERSHIP
                     Notes to Financial Statements
         For the Years Ended December 31, 1996, 1995, and 1994


1.   ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Organization and Nature of Operations

     The  Dyco  Oil and  Gas Program  1978-1 Limited  Partnership (the
     "Program"), a Minnesota limited partnership, commenced operations
     on April 1,  1978.   Dyco Petroleum Corporation  ("Dyco") is  the
     General Partner of the Program. Affiliates of Dyco owned 1,070.91
     (44.2%) of the Program's Units at December 31, 1996. 

     The Program's sole business is the development and production  of
     oil and  gas with a  concentration on gas.   Substantially all of
     the Program's gas reserves are being sold regionally in the "spot
     market."   Due  to  the highly  competitive  nature of  the  spot
     market,  prices on the spot  market are subject  to wide seasonal
     and regional pricing fluctuations.  In addition, such spot market
     sales  are generally short-term in  nature and are dependent upon
     the obtaining of transportation services provided by pipelines.  


     Cash and Cash Equivalents

     The  Program  considers  all  highly liquid  investments  with  a
     maturity  of three  months  or less  when  purchased to  be  cash
     equivalents.  Cash  equivalents are not insured, which  cause the
     Program to be subject to risk.


     Credit Risk

     Accrued oil and gas sales which are due from a variety of oil and
     gas purchasers subject the  Program to a concentration  of credit
     risk.  Some  of these purchasers are discussed in  Note 3 - Major
     Customers.

                                  27
<PAGE>
<PAGE>
     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.   Capitalized costs  are
     depleted on  a gross  revenue  method using  estimates of  proved
     reserves.  The full cost amortization rates per equivalent Mcf of
     gas  produced during the years ended December 31, 1996, 1995, and
     1994 were $0.21, $0.25,  and $0.51, respectively.   The Program's
     calculation   of   depreci-ation,  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  ("SEC")) the excess is charged to expense in
     the year during which such excess occurs.  In addition, SEC rules
     provide that if prices decline subsequent to year end, any excess
     that results from these  declines may also be charged  to expense
     during  the current  year.   During the  year ended  December 31,
     1995,  the Program charged to  expense an impairment provision of
     $13,949, which represented the amount  of unamortized oil and gas
     properties  which  exceeded  the  full  cost  ceiling.   No  such
     provision was incurred in  1996 or 1994.  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.


     Deferred Charge  

     The Deferred  Charge at  December  31, 1996  and 1995  represents
     costs  deferred   for  lease   operating  expenses   incurred  in
     connection   with  the  Program's   underproduced  gas  imbalance
     position.    At December  31,  1996, cumulative  total  gas sales
     volumes for underproduced wells were less than the Program's pro-
     rata share of total gas production on these wells  by 97,480 Mcf,
     resulting in  prepaid lease  operating expenses  of $40,747.   At
     December  31,  1995,  cumulative  total  gas  sales  volumes  for
     underproduced wells  were less than the  Program's pro-rata share
     of  total gas production on these wells by 121,761 Mcf, resulting
     in prepaid lease operating expenses of $43,371.  

                                  28
<PAGE>
<PAGE>
     Accrued Liability  

     The  Accrued Liability at  December 31, 1996  and 1995 represents
     charges  accrued  for   lease  operating  expenses  incurred   in
     connection   with  the   Program's  overproduced   gas  imbalance
     position.   At  December 31,  1996,  cumulative total  gas  sales
     volumes for  overproduced wells  exceeded the  Program's pro-rata
     share  of  total gas  production on  these  wells by  53,567 Mcf,
     resulting in  accrued lease  operating expenses  of $22,391.   At
     December  31,  1995,  cumulative  total  gas  sales  volumes  for
     overproduced wells exceeded the Program's pro-rata share of total
     gas production on these wells by 66,950 Mcf, resulting in accrued
     lease operating expenses of $23,848.  

     Oil and Gas Sales and Gas Imbalance Payable 

     The  Program's  oil  and  condensate production  is  sold,  title
     passed, and  revenue recognized  at or  near the  Program's wells
     under  short-term purchase  contracts  at  prevailing  prices  in
     accordance  with  arrangements which  are  customary  in the  oil
     industry.  Sales of  gas applicable to the Program's  interest in
     producing oil and gas leases are recorded as  income when the gas
     is  metered  and title  transferred  pursuant  to the  gas  sales
     contracts  covering  the  Program's  interest  in  gas  reserves.
     During such times  as the Program's sales  of gas exceed  its pro
     rata  ownership  in a  well, such  sales  are recorded  as income
     unless  total sales  from the  well have  exceeded the  Program's
     share of estimated total gas reserves  underlying the property at
     which time such  excess is recorded as a  liability.  At December
     31, 1995, total  sales exceeded the Program's share  of estimated
     total  gas  reserves  on one  well  by  $4,762 (2,480  Mcf).   At
     December 31, 1996, no such liability was recorded.  


     Use of Estimates in Financial Statements

     The  preparation  of  financial  statements  in  conformity  with
     generally accepted  accounting principles requires  management to
     make estimates  and assumptions that affect  the reported amounts
     of assets and liabilities and disclosure of contingent assets and
     liabilities  at the  date  of the  financial  statements and  the
     reported amounts  of revenues  and expenses during  the reporting
     period.    Actual  results  could differ  from  those  estimates.
     Further,  accrued oil and gas sales, the deferred charge, and the
     accrued  liability all  involve estimates which  could materially
     differ from the  actual amounts ultimately  realized in the  near
     term.  Oil and gas reserves (see Note 4) also involve significant
     estimates which  could materially differ from  the actual amounts
     ultimately realized.   

                                  29
<PAGE>
<PAGE>
     Income Taxes

     Income  or  loss for  income tax  purposes  is includable  in the
     income tax returns  of the partners.  Accordingly, no recognition
     has  been given  to income  taxes in  the accompanying  financial
     statements.


2.   TRANSACTIONS WITH RELATED PARTIES 

     Under the terms  of the  Program 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 years ended December 31, 1996,
     1995,  and  1994, such  expenses  totaled  $33,079, $32,626,  and
     $30,575,  respectively, of  which $24,876 was  paid each  year to
     Dyco and its affiliates.

     Affiliates  of  the  Program  operate certain  of  the  Program's
     properties.   Their  policy  is  to  bill  the  Program  for  all
     customary charges  and cost reimbursements associated  with these
     activities, together with any compressor rentals, consulting,  or
     other services provided.  

     During 1994 and 1995 the Program sold gas at market  prices to El
     Paso  Energy Marketing  Company,  formerly known  as Premier  Gas
     Company ("El Paso").   El Paso, like other similar  gas marketing
     firms,  then resold such gas  to third parties  at market prices.
     El Paso was  an affiliate of the Program  until December 6, 1995.
     During  1995 and 1994, these sales totaled $175,522 and $198,526,
     respectively.  At  December 31,  1995 accrued oil  and gas  sales
     included $22,308 due from El Paso.


3.   MAJOR CUSTOMERS

     The following purchaser individually  accounted for more than 10%
     of  the combined oil and  gas sales (excluding  the gas imbalance
     adjustment) of the Program for the years ended December 31, 1996,
     1995, and 1994:  

         Purchaser                 1996   1995   1994
         ---------                 -----  -----  -----

         El Paso                   88.4%  93.3%  90.8%

                                  30
<PAGE>
<PAGE>
     In the event  of interruption  of purchases  by this  significant
     customer  or the cessation or material  change in availability of
     open-access    transportation    by   the    Program's   pipeline
     transporters, the Program  may encounter difficulty in  marketing
     its gas  and in maintaining  historic sales levels.   Alternative
     purchasers or transporters may not be readily available.  


4.   SUPPLEMENTAL OIL AND GAS INFORMATION

     The following supplemental information  regarding the oil and gas
     activities of the Program is presented pursuant to the disclosure
     requirements promulgated by the SEC.  


     Capitalized Costs

     The Program's  capitalized  costs and  accumulated  depreciation,
     depletion, amortization, and valuation allowance were as follows:



                                             December 31,
                                     ----------------------------
                                         1996           1995
                                     -------------  -------------

     Proved properties                $14,940,160    $14,996,156

     Unproved properties, not 
       subject to depreciation,
       depletion, and amorti-
       zation                                -              -
                                       ----------     ----------
                                      $14,940,160    $14,966,156

     Less accumulated depre-
       ciation, depletion,
       amortization, and
       valuation allowance           ( 14,767,474)  ( 14,745,721)
                                       ----------     ----------

     Net oil and gas properties       $   172,686    $   220,435
                                       ==========     ==========

                                  31
<PAGE>
<PAGE>
     Costs Incurred

     Costs incurred by  the Program in connection with its oil and gas
     property  acquisition,  exploration,  and development  activities
     were as follows:  

                                         December 31,
                                   -------------------------
                                    1996     1995     1994
                                   -------  -------  -------

     Acquisition of properties       $ -    $ -      $  -
     Exploration costs                 -      -         -
     Development costs                778    8,385    11,998
                                      ---    -----    ------

     Total costs incurred            $778   $8,385   $11,998
                                      ===    =====    ======

                                  32
<PAGE>
<PAGE>
     Quantities of Proved Oil and Gas Reserves - Unaudited
<TABLE>
<CAPTION>
     Set forth below is a summary of the changes in the net quantities of the Program's  proved
     crude oil and gas reserves for the years  ended December 31, 1996, 1995, and 1994.  Proved
     reserves were estimated by petroleum engineers employed by affiliates of the Program.  All
     of the Program's reserves are located in the United States.  

                                        1996                  1995                  1994
                                 ------------------    ------------------    ------------------
                                   Oil       Gas         Oil       Gas         Oil       Gas
                                 (Bbls)     (Mcf)      (Bbls)     (Mcf)      (Bbls)     (Mcf)
                                 -------  ---------    -------  ---------    -------  ---------
<S>                              <C>      <C>          <C>      <C>          <C>      <C>            
Proved reserves,
  beginning of year               4,679    615,025      5,377    464,077      2,366    633,611

Revisions of previous
  estimates                         860   ( 11,130)       167    279,485      4,353   ( 30,289)

Sales of reserves                (2,822)  (  3,292)      -          -          -      (    855)

Extensions and
  discoveries                      -          -          -          -          -           -

Production                       (1,239)  ( 96,208)    (  865)  (128,537)    (1,342)  (138,390)
                                  -----    -------      -----    -------      -----    -------

Proved reserves,
  end of year                     1,478    504,395      4,679    615,025      5,377    464,077
                                  =====    =======      =====    =======      =====    =======

Proved developed reserves:
  Beginning of year               4,679    615,025      5,377    464,077      2,366    633,611
                                  -----    -------      -----    -------      -----    -------

  End of year                     1,478    504,395      4,679    615,025      5,377    464,077
                                  =====    =======      =====    =======      =====    =======

                                               33
<PAGE>
<PAGE>
     The  process  of  estimating oil  and  gas  reserves is  complex,
     requiring significant  subjective decisions in the  evaluation of
     available geological,  engineering, and  economic  data for  each
     reservoir.    The   data  for  a   given  reservoir  may   change
     substantially  over time  as  a result  of,  among other  things,
     additional   development   activity,   production  history,   and
     viability of  production under varying economic  conditions; con-
     sequently, it  is reasonably possible that  material revisions to
     existing  reserve  estimates  may   occur  in  the  near  future.
     Although every reasonable effort has been made to ensure that the
     reserve  estimates  reported herein  represent the  most accurate
     assessment possible, the significance of the subjective decisions
     required and  variances in available data  for various reservoirs
     make these estimates generally  less precise than other estimates
     presented in connection with financial statement disclosures.


ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH  ACCOUNTANTS ON ACCOUNTING
          AND FINANCIAL DISCLOSURE

     None.  

                               PART III


ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

     The  Program is  a limited  partnership and  has no  directors or
executive  officers.   The  following  individuals  are directors  and
executive officers of Dyco, the General Partner.  The business address
of  such directors and executive  officers is Two  West Second Street,
Tulsa, Oklahoma  74103.  

           NAME        AGE         POSITION WITH DYCO
     ----------------  ---  --------------------------------
     Dennis R. Neill    44  President and Director

     Patrick M. Hall    38  Chief Financial Officer

     Judy K. Fox        45  Secretary

     The  director will hold office  until the next  annual meeting of
shareholders of Dyco and until his successor has been duly elected and
qualified.   All  executive officers  serve at  the discretion  of the
Board of Directors.

                                  34
<PAGE>
<PAGE>
     Dennis  R. Neill joined the  Samson Companies in  1981, was named
Senior Vice President  and Director of Dyco on June  18, 1991, and was
named President of Dyco on June 30, 1996.  Prior to joining the Samson
Companies,  he  was  associated with  a  Tulsa  law  firm, Conner  and
Winters, where his principal practice was in  the securities area.  He
received  a Bachelor of Arts degree in political science from Oklahoma
State University and a  Juris Doctorate degree from the  University of
Texas.   Mr.  Neill also  serves as  Senior  Vice President  of Samson
Investment  Company;  President  and  Director  of  Samson  Properties
Incorporated, Samson Hydrocarbons Company, Geodyne Resources, Inc. and
its subsidiaries,  Berry Gas Company,  Circle L Drilling  Company, and
Compression,  Inc.;  and  President  and  Chairman  of  the  Board  of
Directors of Samson Securities Company.

     Patrick M. Hall joined the Samson  Companies in 1983, was named a
Vice President of Dyco on June 18, 1991, and was named Chief Financial
Officer  of Dyco  on  June 30,  1996.   Prior  to  joining the  Samson
Companies he was a senior  accountant with Peat Marwick Main &  Co. in
Tulsa.   He  holds a  Bachelor of  Science  degree in  accounting from
Oklahoma State University and  is a Certified Public Accountant.   Mr.
Hall  also  serves as  Senior Vice  President  - Controller  of Samson
Investment Company.

     Judy K.  Fox joined the  Samson Companies in  1990 and was  named
Secretary  of Dyco  on June  30, 1996.   Prior  to joining  the Samson
Companies,  she served as Gas Contract Manager for Ely Energy Company.
Ms. Fox is  also Secretary  of Berry  Gas Company,  Circle L  Drilling
Company,   Compression,  Inc.,   Geodyne  Resources,   Inc.  and   its
subsidiaries,  Samson  Hydrocarbons  Company,  and  Samson  Properties
Incorporated.


ITEM 11.  EXECUTIVE COMPENSATION

     The  Program is  a  limited partnership  and,  therefore, has  no
officers or  directors.   The following  table summarizes  the amounts
paid by the Program as compensation and reimbursements to Dyco and its
affiliates for the three years ended December 31, 1996:  

                                  35
<PAGE>
<PAGE>
         Compensation/Reimbursement to Dyco and its affiliates
                  Three Years Ended December 31, 1996

Type of Compensation/Reimbursement(1)             Expense
-------------------------------------    -------------------------
                                          1996     1995     1994
                                         -------  -------  -------
Compensation:
  Operations                             $   (2)  $   (2)  $   (2)
  Gas Marketing                          $   (3)  $   (3)  $   (3)

Reimbursements:
  General and Administrative,
    Geological, and Engineering
    Expenses and Direct Expenses(4)      $24,876  $24,876  $24,876
----------

(1)  The authority for  all of such compensation  and reimbursement is
     the Program Agreement.  With respect to the Operations activities
     noted in the table, management believes that such compensation is
     equal to or less than that charged by unaffiliated persons in the
     same geographic areas and under the same conditions.
(2)  Affiliates  of the  Program  serve as  operator  of some  of  the
     Program's wells.  Dyco, as  General Partner, contracts with  such
     affiliates for services as  operator of the wells.   As operator,
     such  affiliates  are  compensated   at  rates  provided  in  the
     operating agreements in effect and charged to all parties to such
     agreement.   The dollar amount  of such compensation  paid by the
     Program  to such affiliates is  impossible to quantify  as of the
     date of this Annual Report. 
(3)  During  1994 and 1995 El Paso, an  affiliate of the Program until
     December 6, 1995,  purchased a  portion of the  Program's gas  at
     market  prices and resold such  gas at market  prices directly to
     end-users and local distribution companies.  For the years  ended
     December  31, 1995  and  1994,  the  Program  sold  $175,522  and
     $198,526, respectively, of  gas to  El Paso.   After December  6,
     1995,  the Program's gas was marketed by Dyco and its affiliates,
     who  were   reimbursed  for   such  activities  as   general  and
     administrative expenses.  

                                  36
<PAGE>
<PAGE>
(4)  The Program reimburses Dyco and its affiliates for reasonable and
     necessary general and administrative, geological, and engineering
     expenses and  direct expenses  incurred in connection  with their
     management  and  operation  of   the  Program.    The  directors,
     officers, and  employees of  Dyco and  its affiliates  receive no
     direct  remuneration from the  Program for their  services to the
     Program.  See "Salary Reimbursement Table" below.  The  allocable
     general and administrative,  geological, and engineering expenses
     are  apportioned  on a  reasonable  basis  between the  Program's
     business and  all other oil  and gas  activities of Dyco  and its
     affiliates,   including  Dyco's   management  and   operation  of
     affiliated oil and  gas limited partnerships.  The  allocation to
     the Program of these costs is made by Dyco as General Partner.

     As  noted  in  the  Compensation/Reimbursement  Table  above, the
directors,  officers,  and  employees  of Dyco  and  their  affiliates
receive no  direct remuneration from  the Program for  their services.
However, to the extent such services represent direct involvement with
the Program, as opposed to general  corporate functions, such persons'
salaries  are  allocated  to and  reimbursed  by  the  Program.   Such
allocation to  the Program's  general and  administrative, geological,
and  engineering expenses of the  salaries of directors, officers, and
employees  of Dyco  and its  affiliates is  based on  internal records
maintained  by  Dyco  and  its  affiliates,  and  represents  investor
relations,  legal,  accounting,   data  processing,  management,   gas
marketing, and other functions  directly attributable to the Program's
operations.  The  following table indicates the  approximate amount of
general and  administrative expense reimbursement attributable  to the
salaries of the  directors, officers,  and employees of  Dyco and  its
affiliates for the three years ended December 31, 1996:  

                                  37
<PAGE>
<PAGE>

</TABLE>
<TABLE>
<CAPTION>
                                      Salary Reimbursement
                              Three Years Ended December 31, 1996

                                                         Long Term Compensation
                                                     -------------------------------
                            Annual Compensation             Awards           Payouts
                         -------------------------   ---------------------   -------
                                                                   Securi-
                                            Other                   ties                 All
     Name                                   Annual   Restricted    Under-               Other
      and                                  Compen-     Stock       lying      LTIP     Compen-
   Principal             Salary     Bonus  sation     Award(s)    Options/   Payouts   sation
   Position       Year     ($)       ($)     ($)        ($)        SARs(#)     ($)       ($)
---------------   ----   -------   ------- -------   ----------   --------   -------   -------
<S>               <C>    <C>       <C>     <C>       <C>          <C>        <C>       <C>                       
C. Philip 
Tholen,
President,
Chief Executive
Officer(1)(2)     1994     -         -       -         -            -          -         -
                  1995     -         -       -         -            -          -         -
                  1996     -         -       -         -            -          -         -

Dennis R. Neill,
President(2)(3)   1996     -         -       -         -            -          -         -

All Executive
Officers, 
Directors,
and Employees
as a group(4)     1994   $13,557     -       -         -            -          -         -
                  1995   $13,582     -       -         -            -          -         -
                  1996   $14,552     -       -         -            -          -         -

----------
(1)  Mr. Tholen served as President and Chief Executive Officer of Dyco until June 30, 1996.
(2)  The general and  administrative expenses paid  by the Program  and attributable to  salary
     reimbursements do not include any salary  or other compensation attributable to Mr. Tholen
     or Mr. Neill.
(3)  Mr. Neill became President of Dyco on June 30, 1996.
(4)  No  officer or  director of  Dyco or  its affiliates  provides full-time  services  to the
     Program and no individual's  salary or other compensation  reimbursement from the  Program
     equals or exceeds $100,000 per annum.  

</TABLE>

                                               38
<PAGE>
<PAGE>
     In  addition  to  the  compensation/reimbursements  noted  above,
during the three years  ended December 31, 1996, the  Samson Companies
were in the  business of  supplying field and  drilling equipment  and
services  to  affiliated and  unaffiliated  parties  in the  industry.
These  companies may have provided equipment and services for wells in
which the Program has an interest.  These equipment  and services were
provided  at prices  or rates  equal  to or  less than  those normally
charged in  the same  or comparable  geographic  area by  unaffiliated
persons or companies dealing  at arm's length.  The operators of these
wells  bill the  Program for a  portion of  such costs  based upon the
Program's interest in the well.

ITEM 12.  SECURITY   OWNERSHIP  OF   CERTAIN  BENEFICIAL   OWNERS  AND
          MANAGEMENT

     The  following table  provides information  as to  the beneficial
ownership  of the  Program's  Units as  of  January 31,  1997 by  each
beneficial owner of  more than 5% of the  issued and outstanding Units
and by the directors, officers,  and affiliates of Dyco.   The address
of  each of  such persons  is Samson  Plaza, Two  West  Second Street,
Tulsa, Oklahoma 74103.


                                             Number of Units
                                              Beneficially
                                             Owned (Percent
            Beneficial Owner                 of Outstanding)
     -------------------------------         ---------------

     Samson Resources Company                1,070.91  (44.2%)

     All directors, officers, and
       affiliates of Dyco as a group
       and Dyco (5 persons)                  1,070.91  (44.2%)


     To the  best knowledge  of the  Program and  Dyco, there  were no
officers, directors,  or  5%  owners  who were  delinquent  filers  of
reports  required under section 16  of the Securities  Exchange Act of
1934.

                                  39
<PAGE>
<PAGE>
ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     Certain affiliates  of  Dyco engage  in  oil and  gas  activities
independently of  the Program  which result  in conflicts of  interest
that  cannot be totally eliminated.  The allocation of acquisition and
drilling opportunities and the nature of the compensation arrangements
between  the  Program  and   such  affiliates  also  create  potential
conflicts of interest.  An affiliate of the Program owns a significant
amount  of  the  Program's Units  and  therefore  has  an identity  of
interest with other limited partners with respect to the operations of
the Program. 

     In  order  to attempt  to  assure limited  liability  for limited
partners as well  as an orderly conduct of business, management of the
Program is exercised  solely by  Dyco.  The  Program Agreement  grants
Dyco  broad  discretionary authority  with  respect  to the  Program's
participation  in drilling  prospects and  expenditure and  control of
funds, including  borrowings.  These  provisions are similar  to those
contained in prospectuses and  partnership agreements for other public
oil and gas  drilling partnerships.   Broad discretion  as to  general
management  of  the  Program  involves circumstances  where  Dyco  has
conflicts of interest and  where it must allocate costs  and expenses,
or opportunities, among the Program and other competing interests. 

     Dyco  does not  devote all  of its  time, efforts,  and personnel
exclusively  to the Program.   Furthermore, the Program  does not have
any  employees,  but instead  relies on  the  personnel of  the Samson
Companies.    The  Program thus  competes  with  the Samson  Companies
(including other  currently sponsored oil  and gas  programs) for  the
time and resources  of such  personnel.  The  Samson Companies  devote
such  time  and personnel  to the  management  of the  Program  as are
indicated  by the  circumstances  and as  are  consistent with  Dyco's
fiduciary duties. 

     Affiliates of the Program are solely responsible for the negotia-
tion, administration, and enforcement of  oil and gas sales agreements
covering the Program's leasehold interests.  Because affiliates of the
Program  who provide services to  the Program have  fiduciary or other
duties to other  members of the Samson Companies,  contract amendments
and negotiating positions  taken by  them in their  effort to  enforce
contracts with purchasers may  not necessarily represent the positions
that the Program would take if it were to administer its own contracts
without  involvement with other members  of the Samson  Companies.  On
the  other hand,  management believes  that the  Program's negotiating
strength and contractual positions have been enhanced by virtue of its
affiliation with the Samson Companies. 

     For  a description  of  certain other  relationships and  related
transactions see "Item 11. Executive Compensation."

                                  40
<PAGE>
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                                PART IV


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

     (a)  Financial  Statements,  Financial  Statement Schedules,  and
          Exhibits.  

          (1)  Financial   Statements:      The  following   financial
               statements for the Program as of December 31,  1996 and
               1995 and for  the years ended December 31,  1996, 1995,
               and 1994 are filed as part of this report:

                    Report of Independent Accountants
                    Balance Sheets
                    Statements of Operations
                    Statements of Partners' Capital
                    Statements of Cash Flows
                    Notes to Financial Statements

          (2)  Financial Statement Schedules:

                    None.

          (3)  Exhibits:

               4.1  Drilling Agreement  dated April  1, 1978  for Dyco
                    Drilling Program  1978-1 by and  between the  Dyco
                    Oil   and  Gas  Program   1978-1,  Dyco  Petroleum
                    Corporation, and Jaye F. Dyer filed as Exhibit 4.1
                    to Annual Report  on Form 10-K for  the year ended
                    December 31, 1991 on April 10, 1992  and is hereby
                    incorporated by reference.

               4.2  Program Agreement dated April 1, 1978 for Dyco Oil
                    and  Gas  Program  1978-1   by  and  between  Dyco
                    Petroleum  Corporation  and Participants  filed as
                    Exhibit  4.2 to Annual Report on Form 10-K for the
                    year ended December 31, 1991 on April 10, 1992 and
                    is hereby incorporated by reference.

               4.3  Amendment to  Program Agreement for  Dyco Oil  and
                    Gas Program 1978-1 dated February 9, 1989 filed as
                    Exhibit 4.3 to Annual Report  on Form 10-K for the
                    year ended December 31, 1991 on April 10, 1992 and
                    is hereby incorporated by reference.

                                  41
<PAGE>
<PAGE>
               4.4  Certificate  of Limited  Partnership for  Dyco Oil
                    and Gas  Program 1978-1 Limited  Partnership filed
                    as Exhibit 4.3  to Annual Report on Form  10-K for
                    the year ended December 31, 1991 on April 10, 1992
                    and is hereby incorporated by reference.

              *27.1 Financial   Data   Schedule   containing   summary
                    financial information extracted  from the Dyco Oil
                    and  Gas  Program  1978-1  Limited  Partner-ship's
                    financial statements as  of December 31,  1996 and
                    for the year ended December 31, 1996.  

               All other Exhibits are omitted as inapplicable. 


               ------------------
               *  Filed herewith.


     (b)  Reports on Form 8-K for the fourth quarter of 1996:

               None.

                                  42
<PAGE>
<PAGE>
                              SIGNATURES

Pursuant to the requirements of Sections 13 or 15(d) 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 organized.

                              DYCO OIL AND GAS PROGRAM 1978-1 
                              LIMITED PARTNERSHIP

                              By:  DYCO PETROLEUM CORPORATION
                                   General Partner
                                   February 19, 1997


                              By:  /s/ Dennis R. Neill
                                   ------------------------------
                                   Dennis R. Neill 
                                   President

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

By:  /s/ Dennis R. Neill    President and          Feb. 19, 1997 
     -------------------    Director (Principal
         Dennis R. Neill    Executive Officer)

     /s/ Patrick M. Hall    Chief Financial        Feb. 19, 1997
     -------------------    Officer (Principal
         Patrick M. Hall    Financial and  
                            Accounting Officer)

     /s/ Judy K. Fox        Secretary              Feb. 19, 1997
     -------------------
         Judy K. Fox


                                  43
<PAGE>
<PAGE>
                           INDEX TO EXHIBITS


Exhibit
Number         Description
-------        -----------

4.1            Drilling  Agreement  dated  April  1,  1978  for   Dyco
               Drilling Program 1978-1 by and between the Dyco Oil and
               Gas  Program  1978-1, Dyco  Petroleum  Corporation, and
               Jaye F. Dyer filed  as Exhibit 4.1 to Annual  Report on
               Form 10-K for the year ended December 31, 1991 on April
               10, 1992 and is hereby incorporated by reference.

4.2            Program Agreement dated April 1, 1978 for  Dyco Oil and
               Gas  Program  1978-1  by  and  between  Dyco  Petroleum
               Corporation  and Participants  filed as Exhibit  4.2 to
               Annual Report on Form 10-K  for the year ended December
               31, 1991 on April  10, 1992 and is  hereby incorporated
               by reference.

4.3            Amendment  to Program  Agreement for  Dyco Oil  and Gas
               Program 1978-1 dated February  9, 1989 filed as Exhibit
               4.3  to Annual Report on  Form 10-K for  the year ended
               December  31,  1991 on  April  10, 1992  and  is hereby
               incorporated by reference.

4.4            Certificate of Limited Partnership for Dyco Oil and Gas
               Program 1978-1 Limited Partnership filed as Exhibit 4.3
               to  Annual  Report on  Form  10-K  for  the year  ended
               December  31,  1991 on  April  10, 1992  and  is hereby
               incorporated by reference.

*27.1          Financial  Data  Schedule containing  summary financial
               information extracted from the Dyco Oil and Gas Program
               1978-1 Limited Partnership's financial statements as of
               December 31, 1996 and  for the year ended  December 31,
               1996.  


------------------
*  Filed herewith.


                                  44
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