UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549


                                    FORM 10-Q


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

                For the quarterly period ended September 30, 1996

                                       or

  /   /         Transition Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934
                For the transition period from _______ to _______

                          Commission File No. 2-81398B


                           PARKER & PARSLEY 83-B, LTD.
             (Exact name of Registrant as specified in its charter)

               Texas                                       75-1907245
    (State or other jurisdiction of                     (I.R.S. Employer
    incorporation or organization)                   Identification Number)

303 West Wall, Suite 101, Midland, Texas                      79701
(Address of principal executive offices)                    (Zip code)

       Registrant's Telephone Number, including area code : (915) 683-4768

                                 Not applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)


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

                                Yes / x / No / /
                               Page 1 of 14 pages.
                             -There are no exhibits-


<PAGE>



                           PARKER & PARSLEY 83-B, LTD.

                                TABLE OF CONTENTS


                                                                        Page
                          Part I. Financial Information

Item 1.    Financial Statements

           Balance Sheets as of September 30, 1996 and
              December 31, 1995   ....................................    3

           Statements of Operations for the three and nine
             months ended September 30, 1996 and 1995.................    4

           Statement of Partners' Capital for the nine months
             ended September 30, 1996.................................    5

           Statements of Cash Flows for the nine months ended
             September 30, 1996 and 1995..............................    6

           Notes to Financial Statements..............................    7

Item 2.    Management's Discussion and Analysis of Financial
             Condition and Results of Operations......................    9
            


                           Part II. Other Information

Item 1.    Legal Proceedings..........................................   13


           Signatures.................................................   14





                                        2

<PAGE>



                           PARKER & PARSLEY 83-B, LTD.
                          (A Texas Limited Partnership)

                          Part I. Financial Information

Item 1.   Financial Statements
                                 BALANCE SHEETS
                                                   September 30,   December 31,
                                                       1996            1995
                                                   ------------    ------------
                                                    (Unaudited)
                 ASSETS

Current assets:
  Cash and cash equivalents, including interest
    bearing deposits of $299,589 at September 30
    and $243,858 at December 31                    $    300,139    $    244,107
  Accounts receivable - oil and gas sales               219,161         196,954
                                                    -----------     -----------
         Total current assets                           519,300         441,061
                                                    -----------     -----------

Oil and gas properties - at cost, based on the
  successful efforts accounting method               19,518,445      20,977,361
    Accumulated depletion                           (14,475,644)    (15,667,506)
                                                    -----------     -----------
         Net oil and gas properties                   5,042,801       5,309,855
                                                    -----------     -----------
                                                   $  5,562,101    $  5,750,916
                                                    ===========     ===========

LIABILITIES AND PARTNERS' CAPITAL

Current liabilities:
  Accounts payable - affiliate                     $    103,019    $    113,554

Partners' capital:
  Limited partners (23,370 interests)                 4,847,280       5,009,377
  General partners                                      611,802         627,985
                                                    -----------     -----------
                                                      5,459,082       5,637,362
                                                    -----------     -----------
                                                   $  5,562,101    $  5,750,916
                                                    ===========     ===========

The financial information included as of September 30, 1996 has been prepared by
           management without audit by independent public accountants.

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

                                        3

<PAGE>



                           PARKER & PARSLEY 83-B, LTD.
                          (A Texas Limited Partnership)

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)


                                  Three months ended       Nine months ended
                                     September 30,            September 30,
                                ---------------------    ----------------------
                                   1996        1995         1996        1995
                                ---------   ---------    ----------  ----------
Revenues:
  Oil and gas                   $ 511,155   $ 431,336    $1,596,286  $1,389,824
  Interest                          4,314       4,162        10,781      10,172
  Litigation settlement               -           -       1,392,304         -
  Salvage income from equipment
    disposals                         -           -          16,461         -
  Gain on abandoned properties     18,597         776        50,718      35,073
                                 --------    --------     ---------   ---------
                                  534,066     436,274     3,066,550   1,435,069
                                 --------    --------     ---------   ---------
Costs and expenses:
  Oil and gas production          239,457     240,174       731,300     712,079
  General and administrative       16,613      14,985        51,709      45,578
  Depletion                        78,379     146,934       280,963     475,229
  Abandoned property               10,417      17,725        33,950      37,105
                                 --------    --------     ---------   ---------
                                  344,866     419,818     1,097,922   1,269,991
                                 --------    --------     ---------   ---------
Net income                      $ 189,200   $  16,456    $1,968,628  $  165,078
                                 ========    ========     =========   =========

Allocation of net income
  (loss):
    General partners            $  58,149   $  29,394    $  480,140  $  114,016
                                 ========    ========     =========   =========

    Limited partners            $ 131,051   $ (12,938)   $1,488,488  $   51,062
                                 ========    ========     =========   =========
Net income (loss) per limited
  partnership interest          $    5.61   $    (.56)   $    63.69  $     2.18
                                 ========    ========     =========   =========
Distributions per limited
  partnership interest          $    8.20   $    7.00    $    70.63  $    20.86
                                 ========    ========     =========   =========

         The financial information included herein has been prepared by
           management without audit by independent public accountants.

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

                                        4

<PAGE>



                           PARKER & PARSLEY 83-B, LTD.
                          (A Texas Limited Partnership)

                         STATEMENT OF PARTNERS' CAPITAL
                                   (Unaudited)




                                   General         Limited
                                   partners        partners           Total
                                  ----------      -----------      -----------

Balance at January 1, 1996        $  627,985      $ 5,009,377      $ 5,637,362

    Distributions                   (496,323)      (1,650,585)      (2,146,908)

    Net income                       480,140        1,488,488        1,968,628
                                   ---------       ----------       ----------

Balance at September 30, 1996     $  611,802      $ 4,847,280      $ 5,459,082
                                   =========       ==========       ==========







   The financial information included herein has been prepared by management
                without audit by independent public accountants.

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

                                        5

<PAGE>



                           PARKER & PARSLEY 83-B, LTD.
                          (A Texas Limited Partnership)

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                                          Nine months ended
                                                            September 30,
                                                     --------------------------
                                                         1996           1995
                                                     -----------     ----------
Cash flows from operating activities:

  Net income                                         $ 1,968,628     $  165,078
  Adjustments to reconcile net income to net
    cash provided by operating activities:
      Depletion                                          280,963        475,229
      Gain on abandoned properties                       (50,718)       (35,073)
      Salvage income from equipment disposals            (16,461)           -
  Changes in assets and liabilities:
      (Increase) decrease in accounts receivable         (22,207)        17,453
      Increase (decrease) in accounts payable            (23,011)        27,577
                                                      ----------      ---------
        Net cash provided by operating activities      2,137,194        650,264
                                                      ----------      ---------

Cash flows from investing activities:

  (Additions) disposals of oil and gas properties         (1,433)        26,981
  Proceeds from equipment salvage on abandoned
    properties                                            50,718         35,073
  Proceeds from salvage income from equipment
    disposals                                             16,461            -
                                                      ----------      ---------
        Net cash provided by investing activities         65,746         62,054
                                                      ----------      ---------
Cash flows from financing activities:

  Cash distributions to partners                      (2,146,908)      (644,566)
                                                      ----------      ---------
Net increase in cash and cash equivalents                 56,032         67,752
Cash and cash equivalents at beginning of period         244,107        160,065
                                                      ----------      ---------
Cash and cash equivalents at end of period           $   300,139     $  227,817
                                                      ==========      =========

         The financial information included herein has been prepared by
           management without audit by independent public accountants.

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

                                        6

<PAGE>



                           PARKER & PARSLEY 83-B, LTD.
                          (A Texas Limited Partnership)

                          NOTES TO FINANCIAL STATEMENTS
                               September 30, 1996
                                   (Unaudited)

Note 1.

Parker  &  Parsley  83-B,  Ltd.  (the  "Registrant")  is a  limited  partnership
organized in 1983 under the laws of the State of Texas.

The Registrant  engages  primarily in oil and gas  development and production in
Texas and is not involved in any industry segment other than oil and gas.

Note 2.

In the opinion of management, the Registrant's unaudited financial statements as
of September 30, 1996 and for the three and nine months ended September 30, 1996
and  1995  include  all  adjustments  and  accruals  consisting  only of  normal
recurring accrual  adjustment which are necessary for a fair presentation of the
results for the  interim  period.  These  interim  results  are not  necessarily
indicative of results for a full year.

Certain  information  and  footnote  disclosure  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been  condensed  or  omitted  in this Form 10-Q  pursuant  to the rules and
regulations of the Securities and Exchange Commission.  The financial statements
should  be read in  conjunction  with the  financial  statements  and the  notes
thereto  contained  in the  Registrant's  Report on Form 10-K for the year ended
December 31, 1995, as filed with the Securities and Exchange Commission,  a copy
of which is  available  upon  request by writing to Steven L. Beal,  Senior Vice
President, 303 West Wall, Suite 101, Midland, Texas 79701.

Note 3.

On May 25,  1993,  a final  settlement  agreement  was  negotiated,  drafted and
finally  executed,  ending litigation which had begun on September 5, 1989, when
the Registrant  filed suit along with other parties against Dresser  Industries,
Inc.;  Titan  Services,  Inc.;  BJ-Titan  Services  Company;  BJ-Hughes  Holding
Company;  Hughes Tool Company;  Baker Hughes Production  Tools,  Inc.; and Baker
Hughes  Incorporated  alleging that the defendants had  intentionally  failed to
provide the materials and services  ordered and paid for by the  Registrant  and
other parties in connection with the fracturing and acidizing of 523 wells,  and
then  fraudulently  concealed  the  shorting  practice  from  Parker  &  Parsley
Development L.P. ("PPDLP").  The May 25, 1993 settlement  agreement called for a
payment  of  $115  million  in  cash  by  the  defendants,  and  Southmark,  the
Registrant,  and the other  plaintiffs  indemnified  the defendants  against the
claims of Jack N.  Price.  The  managing  general  partner  received  the funds,
deducted  incurred  legal  expenses,  accrued  interest,  determined the general
partner's portion of the funds and calculated any inter-partnership allocations.

                                        7

<PAGE>



On May 3, 1993,  Jack N. Price,  the  attorney  who  represented  Gary G. "Zeke"
Lancaster in the Federal  Court  lawsuit,  filed suit in State Court in Beaumont
against all of the plaintiff partnerships,  including the Registrant and others,
alleging his  entitlement to 12% of the  settlement  proceeds.  Price's  lawsuit
claim for  approximately  $13.8 million is  predicated  on a purported  contract
entered  into with  Southmark  Corporation  in August 1988 in which he allegedly
binds the Registrant and the other  defendants,  as well as Southmark.  Although
PPDLP  believes the lawsuit was without  merit and has  vigorously  defended it,
PPDLP  has held in  reserve  approximately  12.5% of the total  settlement  (the
"Reserve") pending final resolution of the litigation.

A distribution of $91,000,000 was made to the working interest owners, including
the  Registrant,   on  July  30,  1993.  The  limited  partners  received  their
distribution of $11,250,167,  or $481.39 per limited  partnership  interest,  in
September 1993. The allocation of the lawsuit settlement amount was based on the
original  verdict  entered on October 26, 1990.  The  allocation  to the working
interest  owners in each well (including the Registrant) was based on a ratio of
the relative  amount of damages due to  overcharges  for services and  materials
("Materials") and damages for loss of past and future production ("Production"),
each as determined in that initial judgment. Within the Registrant,  damages for
Materials  were allocated  between the partners based on their original  sharing
percentages for costs of acquiring and/or drilling of wells. Similarly,  damages
related to Production were allocated to the partners in the Registrant  based on
their respective share of revenues from the subject wells.

As a condition of the purchase by Parker & Parsley Petroleum Company of Parker &
Parsley Development Company ("PPDC"),  which was merged into PPDLP on January 1,
1995,  from its former  parent in May 1989,  PPDC's  interest in the lawsuit and
subsequent  settlement was retained by the former parent.  Consequently,  all of
PPDC's share of the settlement  related to its separately  held interests in the
wells and its partnership  interests in the sponsored  partnerships (except that
portion allocable to interests  acquired by PPDC after May 1989) was paid to the
former parent.

On September  20,  1995,  the Beaumont  trial judge  entered a summary  judgment
against Southmark for the $13,790,000  contingent fee sought by Price,  together
with prejudgment  interest,  and also awarded Price an additional  $5,498,525 in
attorneys'  fees. On January 22, 1996, the trial judge entered an  interlocutory
summary judgment  against Dresser  Industries and Baker Hughes for an amount yet
to be  determined.  Pursuant to their  indemnity  obligations,  the  Registrant,
Southmark,  PPDLP and other original  plaintiffs have  vigorously  protected the
rights of both Dresser and Baker Hughes.  Southmark has  vigorously  pursued its
appeal of the judgment,  and has posted a supersedeas  bond using the Reserve as
collateral. On April 29, 1996, all of the parties,  including the Registrant and
Southmark,  entered  into a $7.4 million  settlement  with Price which fully and
finally  resolves  all of the  litigation  and  disputes  between  the  parties,
including the Registrant's indemnity obligations to Dresser and Baker Hughes.

Pursuant to the settlement agreement,  all of the pending lawsuits and judgments
have been dismissed,  the supersedeas bond released, and the Reserve released as
collateral.  On June 28,  1996,  a final  distribution  was made to the  working
interest  owners,  including  $1,094,360,  or  $46.83  per  limited  partnership
interest to the Registrant and its partners.

                                        8

<PAGE>



Item 2.    Management's Discussion and Analysis of Financial Condition
             and Results of Operations (1)

Results of Operations

Nine months ended  September 30, 1996 compared with nine months ended  September
  30, 1995

Revenues:

The  Registrant's  oil and gas revenues  increased to $1,596,286 from $1,389,824
for the nine months ended September 30, 1996 and 1995 respectively,  an increase
of 15%. The increase in revenues  resulted from higher average  prices  received
per  barrel of oil and mcf of gas,  offset by a 4%  decrease  in  barrels of oil
produced and sold and a 13%  decrease in mcf of gas  produced and sold.  For the
nine months ended  September 30, 1996,  55,394 barrels of oil were sold compared
to 57,970 for the same period in 1995, a decrease of 2,576 barrels. For the nine
months  ended  September  30,  1996,  201,191  mcf of gas were sold  compared to
230,256 for the same period in 1995,  a decrease of 29,065 mcf.  The  production
volume  decreases  were  primarily  due to the  decline  characteristics  of the
Registrant's  oil and gas  properties.  Management  expects a certain  amount of
decline  in  production  to  continue  in  the  future  until  the  Registrant's
economically recoverable reserves are fully depleted.

The average  price  received per barrel of oil  increased  $3.65,  or 21%,  from
$17.33  for the nine  months  ended  September  30,  1995 to $20.98 for the same
period in 1996 while the average  price  received per mcf of gas  increased  29%
from $1.67 for the nine months  ended  September  30, 1995 to $2.16 for the same
period in 1996. The market price for oil and gas has been extremely  volatile in
the past  decade,  and  management  expects a certain  amount of  volatility  to
continue in the foreseeable future. The Registrant may therefore sell its future
oil and gas  production  at average  prices  lower or higher than that  received
during the nine months ended September 30, 1996.

Salvage  income of $16,461  for the nine  months  ended  September  30, 1996 was
derived from the disposal of equipment on three wells  plugged and  abandoned in
prior years.

A gain on abandoned  properties of $50,718 was attributable to proceeds received
from equipment  credits on two fully depleted wells,  abandoned  during the nine
months  ended  September  30,  1996.  During the same period in 1995,  a gain of
$35,073 on abandoned  properties  resulted from proceeds received from equipment
credits on one fully depleted  property.  Expenses  incurred during 1996 to plug
and abandon two  uneconomical  wells totaled $33,950 compared to $37,105 for the
same period in 1995.

Costs and Expenses:

Total costs and  expenses  decreased  to  $1,097,922  for the nine months  ended
September  30,  1996 as compared to  $1,269,991  for the same period in 1995,  a
decrease of $172,069, or 14%. This decrease was due to declines in depletion and
abandoned property costs,  offset by an increase in production costs and general
and administrative expenses ("G&A").
                                        9

<PAGE>



Production  costs were $731,300 for the nine months ended September 30, 1996 and
$712,079 for the same period in 1995 resulting in a $19,221 increase, or 3%. The
increase  was  due to  increases  in  well  repair  and  maintenance  costs  and
production taxes, offset by lower ad valorem taxes.

G&A's  components are  independent  accounting and  engineering  fees,  computer
services,  postage and managing  general partner  personnel  costs.  During this
period, G&A increased, in aggregate,  13% from $45,578 for the nine months ended
September 30, 1995 to $51,709 for the same period in 1996.

Depletion was $280,963 for the nine months ended  September 30, 1996 compared to
$475,229 for the same period in 1995,  representing  a decrease of $194,266,  or
41%. This decrease was primarily  attributable to the following  factors:  (i) a
reduction  in the  Registrant's  net  depletable  basis  from  charges  taken in
accordance with Statement of Financial  Accounting Standards No 121, "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of" ("FAS 121"),  (ii) a reduction in oil  production  of 2,576  barrels for the
nine months ended September 30, 1996 as compared to the same period in 1995, and
(iii) an increase in oil and gas reserves  during the third quarter of 1996 as a
result of higher commodity prices.

On May 25,  1993,  a final  settlement  agreement  was  negotiated,  drafted and
finally  executed,  ending litigation which had begun on September 5, 1989, when
the Registrant  filed suit along with other parties against Dresser  Industries,
Inc.;  Titan  Services,  Inc.;  BJ-Titan  Services  Company;  BJ-Hughes  Holding
Company;  Hughes Tool Company;  Baker Hughes Production  Tools,  Inc.; and Baker
Hughes  Incorporated  alleging that the defendants had  intentionally  failed to
provide the materials and services  ordered and paid for by the  Registrant  and
other parties in connection with the fracturing and acidizing of 523 wells,  and
then  fraudulently  concealed the shorting practice from PPDLP. The May 25, 1993
settlement  agreement  called  for a  payment  of  $115  million  in cash by the
defendants,  and Southmark, the Registrant, and the other plaintiffs indemnified
the defendants against the claims of Jack N. Price. The managing general partner
received  the  funds,  deducted  incurred  legal  expenses,   accrued  interest,
determined  the  general  partner's  portion  of the  funds and  calculated  any
inter-partnership allocations.

On May 3, 1993,  Jack N. Price,  the  attorney  who  represented  Gary G. "Zeke"
Lancaster in the Federal  Court  lawsuit,  filed suit in State Court in Beaumont
against all of the plaintiff partnerships,  including the Registrant and others,
alleging his  entitlement to 12% of the  settlement  proceeds.  Price's  lawsuit
claim for  approximately  $13.8 million is  predicated  on a purported  contract
entered  into with  Southmark  Corporation  in August 1988 in which he allegedly
binds the Registrant and the other  defendants,  as well as Southmark.  Although
PPDLP  believes the lawsuit was without  merit and has  vigorously  defended it,
PPDLP  has held in  reserve  approximately  12.5% of the total  settlement  (the
"Reserve") pending final resolution of the litigation.

A distribution of $91,000,000 was made to the working interest owners, including
the  Registrant,   on  July  30,  1993.  The  limited  partners  received  their
distribution of $11,250,167,  or $481.39 per limited  partnership  interest,  in

                                       10

<PAGE>


September 1993. The allocation of the lawsuit settlement amount was based on the
original  verdict  entered on October 26, 1990.  The  allocation  to the working
interest  owners in each well (including the Registrant) was based on a ratio of
the relative  amount of damages due to  overcharges  for services and  materials
("Materials") and damages for loss of past and future production ("Production"),
each as determined in that initial judgment. Within the Registrant,  damages for
Materials  were allocated  between the partners based on their original  sharing
percentages for costs of acquiring and/or drilling of wells. Similarly,  damages
related to Production were allocated to the partners in the Registrant  based on
their respective share of revenues from the subject wells.

As a condition  of the purchase by Parker & Parsley  Petroleum  Company of PPDC,
which was merged  into PPDLP on January 1, 1995,  from its former  parent in May
1989,  PPDC's interest in the lawsuit and subsequent  settlement was retained by
the former parent.  Consequently,  all of PPDC's share of the settlement related
to its separately held interests in the wells and its  partnership  interests in
the sponsored  partnerships (except that portion allocable to interests acquired
by PPDC after May 1989) was paid to the former parent.

On September  20,  1995,  the Beaumont  trial judge  entered a summary  judgment
against Southmark for the $13,790,000  contingent fee sought by Price,  together
with prejudgment  interest,  and also awarded Price an additional  $5,498,525 in
attorneys'  fees. On January 22, 1996, the trial judge entered an  interlocutory
summary judgment  against Dresser  Industries and Baker Hughes for an amount yet
to be  determined.  Pursuant to their  indemnity  obligations,  the  Registrant,
Southmark,  PPDLP and other original  plaintiffs have  vigorously  protected the
rights of both Dresser and Baker Hughes.  Southmark has  vigorously  pursued its
appeal of the judgment,  and has posted a supersedeas  bond using the Reserve as
collateral. On April 29, 1996, all of the parties,  including the Registrant and
Southmark,  entered  into a $7.4 million  settlement  with Price which fully and
finally  resolves  all of the  litigation  and  disputes  between  the  parties,
including the Registrant's indemnity obligations to Dresser and Baker Hughes.

Pursuant to the settlement agreement,  all of the pending lawsuits and judgments
have been dismissed,  the supersedeas bond released, and the Reserve released as
collateral.  On June 28,  1996,  a final  distribution  was made to the  working
interest  owners,  including  $1,094,360,  or  $46.83  per  limited  partnership
interest to the Registrant and its partners.

Three months ended September 30, 1996 compared with three months ended September
  30, 1995

Revenues:

The  Registrant's  oil and gas revenues  increased to $511,155 from $431,336 for
the three months ended September 30, 1996 and 1995, respectively, an increase of
19%. The increase in revenues  resulted from higher average prices  received per
barrel of oil and mcf of gas, offset by a 4% decrease in barrels of oil produced
and sold and a 23%  decrease  in mcf of gas  produced  and  sold.  For the three
months ended  September  30, 1996,  17,421  barrels of oil were sold compared to
18,192 for the same  period in 1995,  a decrease of 771  barrels.  For the three
months ended September 30, 1996,  65,090 mcf of gas were sold compared to 84,151
for the same period in 1995,  a decrease of 19,061 mcf.  The  production  volume
decreases were primarily due to the decline  characteristics of the Registrant's
oil and gas properties.
                                       11

<PAGE>



The average  price  received per barrel of oil  increased  $5.14,  or 31%,  from
$16.62 for the three  months  ended  September  30,  1995 to $21.76 for the same
period in 1996,  while the average  price  received per mcf of gas increased 33%
from $1.53 for the three months ended  September  30, 1995 to $2.03 for the same
period in 1996.

A gain on abandoned  properties of $18,597 was attributable to proceeds received
from equipment  credits on two fully depleted wells,  abandoned during the three
months ended September 30, 1996.  During the same period in 1995, a gain of $776
on abandoned  properties  resulted from proceeds received from equipment credits
on one  fully  depleted  property.  Expenses  incurred  during  1996 to plug and
abandon two uneconomical wells totaled $10,417, compared to $17,725 for the same
period in 1995.

Costs and Expenses:

Total costs and  expenses  decreased  to  $344,866  for the three  months  ended
September  30,  1996 as compared  to  $419,818  for the same  period in 1995,  a
decrease of $74,952,  or 18%.  This  decrease was due to declines in  production
costs, depletion and abandoned property costs, offset by an increase in G&A.

Production costs were $239,457 for the three months ended September 30, 1996 and
$240,174 for the same period in 1995 resulting in a $717 decrease.  The decrease
was due to a decline in well repair and maintenance costs.

G&A's  components are  independent  accounting and  engineering  fees,  computer
services,  postage and managing  general partner  personnel  costs.  During this
period, G&A increased, in aggregate, 11% from $14,985 for the three months ended
September 30, 1995 to $16,613 for the same period in 1996.

Depletion was $78,379 for the three months ended  September 30, 1996 compared to
$146,934  for the same period in 1995,  representing  a decrease of $68,555,  or
47%,  partially  attributable to the following  factors:  (i) a reduction in the
Registrant's net depletable basis from charges taken in accordance with FAS 121,
(ii) a reduction  in oil  production  of 771 barrels for the three  months ended
September 30, 1996 as compared to the same period in 1995, and (iii) an increase
in oil and gas reserves  during the third  quarter of 1996 as a result of higher
commodity prices.

Liquidity and Capital Resources

Net Cash Provided by Operating Activities

Net cash provided by operating  activities  increased $1,486,930 during the nine
months ended  September 30, 1996 from the same period ended  September 30, 1995.
This  increase  was  primarily  due to  proceeds  received  from the  litigation
settlement  as  discussed  in Note 3, in  addition to an increase in oil and gas
sales, offset by an increase in production costs paid.

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Net Cash Provided by Investing Activities

The Registrant's investing activities during for the nine months ended September
30, 1996 included  expenditures related to equipment  replacement on various oil
and gas properties.  The nine months ended September 30, 1995 included  proceeds
received from the disposal of oil and gas equipment on active properties.

Proceeds of $50,718 and $35,073 were  received  from the salvage of equipment on
wells  abandoned  during the nine  months  ended  September  30,  1996 and 1995,
respectively.  Proceeds  from  salvage  income  on the  sale of  equipment  from
properties abandoned in prior years totaled $16,461 during the nine months ended
September 30, 1996.

Net Cash Used in Financing Activities

Cash was  sufficient  for the nine  months  ended  September  30,  1996 to cover
distributions  to the partners of $2,146,908 of which $1,650,585 was distributed
to the limited  partners  and  $496,323 to the  general  partners.  For the same
period ended  September 30, 1995, cash was sufficient for  distributions  to the
partners of $644,566 of which $487,582 was  distributed to the limited  partners
and $156,984 to the general partners.

Cash  distributions  to the  partners of  $2,146,908  for the nine months  ended
September 30, 1996 include  $1,094,360  to the limited  partners and $297,944 to
the  general  partners,  resulting  from  proceeds  received  in the  litigation
settlement as discussed in Note 3.

It is expected  that future net cash  provided by operating  activities  will be
sufficient for any capital expenditures and any distributions. As the production
from the properties declines, distributions are also expected to decrease.

---------------

(1)    "Item 2. Management's  Discussion and Analysis of Financial Condition and
       Results of Operations"  contains forward looking  statements that involve
       risks and uncertainties. Accordingly, no assurances can be given that the
       actual  events and  results  will not be  materially  different  than the
       anticipated results described in the forward looking statements.


                           Part II. Other Information

Item 1.        Legal Proceedings

During  April  1996,  the  Registrant  completed  the  settlement  of a material
litigation to which it was a party.  This  litigation and settlement  thereof is
described in Note 3 of Notes to Financial Statements above.


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                           PARKER & PARSLEY 83-B, LTD.
                          (A Texas Limited Partnership)



                               S I G N A T U R E S



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


                                     PARKER & PARSLEY 83-B, LTD.

                               By:   Parker & Parsley Development L.P.,
                                      Managing General Partner

                                     By:   Parker & Parsley Petroleum USA, Inc.
                                            ("PPUSA") General Partner




Dated:  November 11, 1996      By:   /s/ Steven L. Beal
                                     ---------------------------------------
                                     Steven L. Beal, Senior Vice President
                                      and Chief Financial Officer of PPUSA



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