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                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

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

For the Quarter Ended June 30, 2001                  Commission File No. 0-20998



                        KELLEY PARTNERS 1992 DEVELOPMENT
                                DRILLING PROGRAM
             (Exact name of registrant as specified in its charter)

                   Texas                                      76-0373428
      (State or other jurisdiction of                      (I.R.S. Employer
      incorporation or organization)                      Identification No.)


            1001 McKinney St.
                Suite 900
             Houston, Texas                                       77002
(Address of principal executive offices)                       (Zip Code)


       Registrant's telephone number, including area code: (713) 652-5200


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


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                KELLEY PARTNERS 1992 DEVELOPMENT DRILLING PROGRAM

                                      INDEX

PART I.  FINANCIAL INFORMATION

<Table>
<Caption>
                                                                                                          PAGE

<S>                                                                                                       <C>
      Item 1. Financial Statements:
      Balance Sheets as of December 31, 2000 and June 30, 2001 (unaudited)...............................   2

      Statements of Income for the three months and six months ended
         June 30, 2000 and 2001 (unaudited)..............................................................   3

      Statements of Cash Flows for the six months ended June 30, 2000 and 2001 (unaudited)...............   4

      Notes to Financial Statements (unaudited)..........................................................   5

      Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations......   6

PART II.  OTHER INFORMATION..............................................................................   9
</Table>

                                       1

<PAGE>   3


                          PART I. FINANCIAL INFORMATION


Item 1.  Financial Statements

                KELLEY PARTNERS 1992 DEVELOPMENT DRILLING PROGRAM
                                 BALANCE SHEETS
                                 (In thousands)

<TABLE>
<CAPTION>

                                                                                        December 31,        June 30,
                                                                                            2000              2001
                                                                                        ------------      ----------
                                                                                                         (Unaudited)
<S>                                                                                    <C>               <C>

ASSETS:

   Cash and cash equivalents............................................................$      --         $      --
   Accounts receivable - trade..........................................................       37                30
   Accounts receivable - affiliates.....................................................       47               321
                                                                                        ---------         ---------
   Total current assets.................................................................       84               351
                                                                                        ---------         ---------

   Oil and gas properties, successful efforts method:

     Properties subject to amortization.................................................   41,443            41,463
     Less:  Accumulated depreciation, depletion and amortization........................  (40,516)          (40,558)
                                                                                        ---------         ---------
   Total oil and gas properties.........................................................      927               905
                                                                                        ---------         ---------
Total assets............................................................................$   1,011         $   1,256
                                                                                        =========         =========

LIABILITIES:

   Accounts payable and accrued expenses................................................$      85         $      53
                                                                                        ---------         ---------
   Total current liabilities............................................................       85                53
                                                                                        ---------         ---------
Total liabilities.......................................................................       85                53
                                                                                        ---------         ---------

PARTNERS' EQUITY:

   LP Unitholders' equity ..............................................................       67                94
   GP Unitholders' equity...............................................................      822             1,061
   Managing and special general partners' equity........................................       37                48
                                                                                        ---------         ---------
Total partners' equity..................................................................      926             1,203
                                                                                        ---------         ---------
Total liabilities and partners'equity...................................................$   1,011         $   1,256
                                                                                        =========         =========

</TABLE>

                       See Notes to Financial Statements.

                                       2

<PAGE>   4


                KELLEY PARTNERS 1992 DEVELOPMENT DRILLING PROGRAM
                              STATEMENTS OF INCOME
                      (In thousands, except per unit data)
                                  (Unaudited)


<TABLE>
<CAPTION>

                                                             Three Months Ended June 30,    Six Months Ended June 30,
                                                             ---------------------------    -------------------------
                                                                2000            2001          2000           2001
                                                             ----------     ------------    --------      -----------

<S>                                                          <C>           <C>             <C>           <C>

REVENUES:

   Oil and gas sales..........................................$     199     $     219       $    372      $     527
                                                              ---------     ---------       --------      ---------
   Total revenues.............................................      199           219            372            527
                                                              ---------     ---------       --------      ---------

EXPENSES:

   Production expenses........................................       68            47            124             88
   Severance taxes............................................        5             3              9              5
   General and administrative expenses........................       15            16             33             26
   Interest expenses..........................................        1            --              6             --
   Depreciation, depletion and amortization...................       33            20             66             42
                                                              ---------     ---------       --------      ---------
   Total expenses.............................................      122            86            238            161
                                                              ---------     ---------       --------      ---------
Net income....................................................$      77     $     133       $    134      $     366
                                                              =========     =========       ========      =========


Net income allocable to LP and GP unitholders.................$      73     $     128       $    129      $     352
                                                              =========     =========       ========      =========

Net income allocable to managing and
   special general partners...................................$       4     $       5       $      5      $      14
                                                              =========     =========       ========      =========
Net income per LP and GP unit.................................$      --     $     .01       $    .01      $     .02
                                                              =========     =========       ========      =========

Average LP and GP units outstanding...........................   16,033        16,033         16,033         16,033
                                                              =========     =========       ========      =========

</TABLE>

                       See Notes to Financial Statements.


                                       3

<PAGE>   5


                KELLEY PARTNERS 1992 DEVELOPMENT DRILLING PROGRAM
                            STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                                         Six months Ended June 30,
                                                                                        ---------------------------
                                                                                          2000              2001
                                                                                        ---------         ---------
<S>                                                                                    <C>               <C>
OPERATING ACTIVITIES:

   Net income...........................................................................$     134         $     366
   Adjustments to reconcile net income to net cash
     provided by operating activities
     Depreciation, depletion and amortization...........................................       66                42
   Changes in operating assets and liabilities:
     Increase in accounts receivable....................................................     (160)             (267)
     Increase (decrease) in accounts payable and accrued expenses.......................        7               (32)
                                                                                        ---------         ---------
   Net cash provided by operating activities............................................       47               109
                                                                                        ---------         ---------

INVESTING ACTIVITIES:

   Capital expenditures ................................................................       57               (20)
                                                                                        ---------         ----------
   Net cash provided by (used in) investing activities..................................       57               (20)
                                                                                        ---------         ----------

FINANCING ACTIVITIES:

   Distribution to partners.............................................................       --               (89)
   Principal payments on long-term debt.................................................     (104)               --
                                                                                        ---------         ---------
   Net cash used in financing activities................................................     (104)              (89)
                                                                                        ---------         ---------
Increase (decrease) in cash and cash equivalents........................................       --                --
Cash and cash equivalents, beginning of period..........................................       --                --
                                                                                        ---------         ---------
Cash and cash equivalents, end of period................................................$      --         $      --
                                                                                        =========         =========

</TABLE>


                       See Notes to Financial Statements.

                                       4
<PAGE>   6


                KELLEY PARTNERS 1992 DEVELOPMENT DRILLING PROGRAM
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)


NOTE 1 - BASIS OF PRESENTATION

     General. The accompanying unaudited interim financial statements of Kelley
Partners 1992 Development Drilling Program (the "Partnership") have been
prepared pursuant to the rules and regulations of the Securities and Exchange
Commission in accordance with accounting principles generally accepted in the
United States of America for interim financial information. These financial
statements reflect all adjustments (consisting solely of normal recurring
adjustments) necessary for a fair presentation of the results for the interim
periods presented. The results of operations for the three months and six months
ended June 30, 2001 are not necessarily indicative of results to be expected for
the full year. The accounting policies followed by the Partnership are set forth
in Note 1 to the financial statements included in its Annual Report on Form 10-K
for the year ended December 31, 2000. These unaudited interim financial
statements should be read in conjunction with the audited financial statements
and notes thereto included in the Partnership's 2000 Annual Report on Form 10-K.

     Derivative and Hedge Accounting. Historically, Contour Energy Co. has
entered into hedge agreements on behalf of the Partnership to protect against
commodity price declines, including production volumes for the second quarter
and the first half of 2000. Beginning in 2001, due to small production volumes,
the Partnership production will no longer be hedged.

     Through natural gas price swap agreements, approximately 56% and 52% of the
Partnership's natural gas production for the second quarter of 2000 and the
first half of 2000, respectively, was affected by hedging transactions at
average NYMEX quoted prices of $2.60 per Mmbtu and $2.54 per Mmbtu,
respectively, before transaction and transportation costs. Through crude oil
price swap agreements, the Partnership hedged approximately 73% and 70% of its
crude oil production for the three and six months ended June 30, 2000,
respectively, at average NYMEX quoted prices of $27.65 per bbl and $26.38 per
bbl, respectively, before transaction and transportation costs. No natural gas
or crude oil was hedged in the three months and six months ended June 30, 2001.
Hedging activities decreased Partnership revenues by $19,000 and $20,000 for the
three months and six months ended June 30, 2000, as compared to estimated
revenues had no hedging activities been conducted.

     The Partnership adopted Statement of Financial Accounting Standards No.
133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133")
effective January 1, 2001. At of January 1, 2001, the Partnership was not party
to any derivative instruments and as such there was no impact on its financial
statements as a result of the adoption of SFAS 133.

NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS

     In the fourth quarter of 2000, the Partnership adopted Emerging Issues Task
Force Issue No. 00-10 ("EITF No. 00-10") accounting for Shipping and Handling
Fees and Costs. EITF No. 00-10 addresses how shipping and handling fees should
be classified in the income statement. As a result of EITF No. 00-10, the
Partnership has reclassified its transportation and compression expenses from
oil and gas revenues to lease operating expenses. As a result, $2,000 and $3,000
of expenses were reclassified from oil and gas revenues to lease operating
expenses for the three months and six months ended June 30, 2000, respectively.

     In July 2001, the Financial Accounting Standards Board ("FASB") issued two
new pronouncements: Statement of Financial Accounting Standards ("SFAS") No.
141, "Business Combinations", and SFAS No. 142, "Goodwill and Other Intangible
Assets". SFAS 141 prohibits the use of the pooling-of-interest method for
business combinations initiated after June 30, 2001 and also applies to all
business combinations accounted for by the purchase method that are completed
after June 30, 2001. SFAS 142, effective for fiscal years beginning after
December 15, 2001, addresses financial accounting and reporting for acquired
goodwill and other intangible assets and supersedes APB Opinion No. 17,
Intangible Assets. It addresses how intangible assets that are acquired
individually or with a group of other assets (but not those acquired in a
business combination) should be accounted for in financial statements upon their
acquisition. This Statement also addresses how goodwill and other intangible
assets should be accounted for after they have been initially recognized in the
financial statements. The Partnership expects no impact on its financial
statements from the adoption of these standards.

                                       5
<PAGE>   7


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

GENERAL

     In 1992, Kelley Partners 1992 Development Drilling Program (the
"Partnership") issued units of limited and general partner interests ("Units").
The Units represent 96.04% of the total interests in the Partnership. In
addition, the Partnership issued managing and special general partner interests
representing 3.96% of the total interests in the Partnership. At June 30, 2001,
Kelley Oil Corporation, managing general partner of the Partnership ("Kelley
Oil") and a wholly owned subsidiary of Contour Energy Co. ("Contour") owns
91.82% of the Units and a 3.94% managing general partnership interest.

RECENT DEVELOPMENTS

     Drilling Operations. Since inception, the Partnership participated in
drilling 39 gross (15.23 net) wells, of which 30 gross (11.07 net) wells were
found productive and 9 gross (4.16 net) wells were dry.

     Hedging and Derivative Activities. Historically, Contour has entered into
hedge agreements on behalf of the Partnership to protect against commodity price
declines, including production volumes for the second quarter and the first half
of 2000. Beginning 2001, due to small production volumes, the Partnership
production will no longer be hedged.

     Through natural gas price swap agreements, approximately 56% and 52% of the
Partnership's natural gas production for the second quarter of 2000 and the
first half of 2000, respectively, was affected by hedging transactions at
average NYMEX quoted prices of $2.60 per Mmbtu and $2.54 per Mmbtu,
respectively, before transaction and transportation costs. Through crude oil
price swap agreements, the Partnership hedged approximately 73% and 70% of its
crude oil production for the three and six months ended June 30, 2000,
respectively, at average NYMEX quoted prices of $27.65 per bbl and $26.38 per
bbl, respectively, before transaction and transportation costs. No natural gas
or crude oil was hedged in the three months and six months ended June 30, 2001.
Hedging activities decreased Partnership revenues by $19,000 and $20,000 for the
three months and six months ended June 30, 2000, as compared to estimated
revenues had no hedging activities been conducted.

RESULTS OF OPERATIONS

     Three Months Ended June 30, 2001 and 2000. Oil and gas revenues increased
by 10% to $219,000 for the second quarter of 2001 compared to $199,000 in the
corresponding quarter of 2000 primarily resulting from higher natural gas
prices, partially offset by lower natural gas and crude oil production.
Production of natural gas decreased 12% from 39,520 Mcf in the second quarter of
2000 to 34,726 Mcf in the current quarter due to natural production declines in
the Partnership's producing areas. The average price of natural gas increased
51% from $3.30 per Mcf in the second quarter of 2000 to $4.97 per Mcf in the
current quarter. Production of crude oil in the current quarter totaled 1,689
barrels, with an average sales price of $27.98 per barrel compared to 2,360
barrels at $29.53 per barrel in the same quarter last year, representing a
volume decrease of 28% and a price decrease of 5%. The decrease in crude oil
volumes is the result of natural production declines in the Partnership's
producing areas.

                                       6

<PAGE>   8


     Production expenses and severance taxes were $50,000 in the current quarter
versus $73,000 in the second quarter of 2000, a decrease of 32%. The decrease
was due primarily to lower lifting costs and severance taxes relating in part to
declines in production. On a unit of production basis, these expenses decreased
to $1.11 per Mcfe in the second quarter of 2001 from $1.36 per Mcfe in the same
quarter of 2000.

     General and administrative ("G&A") expenses increased to $16,000 in the
current quarter, or 7%, from $15,000 in the second quarter of 2000. On a unit of
production basis, these expenses increased from $0.28 per Mcfe in the second
quarter of 2000 to $0.36 per Mcfe in the current quarter.

     Depreciation, depletion and amortization ("DD&A") expenses decreased 39%
from $33,000 in the second quarter of 2000 to $20,000 in the current quarter due
to lower production levels and lower depletion rates. On a unit of production
basis, DD&A expenses decreased to $0.45 per Mcfe in the second quarter of 2001
from $0.61 per Mcfe in the same quarter last year.

     The Partnership recognized net income of $133,000 or $0.01 per Unit for the
second quarter of 2001 compared to net income of $77,000 or $0.00 per Unit for
the second quarter of 2000. The reasons for the variance between the second
quarter of 2001 and the second quarter of 2000 are described in the foregoing
discussion.

     Six Months Ended June 30, 2001 and 2000. Oil and gas revenues increased 42%
to $527,000 for the first six months of 2001 compared to $372,000 in the
corresponding period of 2000 as a result of higher natural gas prices, partially
offset by lower natural gas and crude oil production. Production of natural gas
decreased 9% from 73,567 Mcf in the first six months of 2000 to 67,087 Mcf in
the current period primarily due to natural production declines in the
Partnership's production areas. The average price of natural gas was $6.32 per
Mcf in the first half of 2001 compared to $3.08 per Mcf in the prior year.
Production of crude oil in the current period totaled 3,860 barrels, with an
average sales price of $27.29 per barrel compared to 5,264 barrels at $27.89 per
barrel in the same period last year, representing a volume decrease of 27% due
to natural production declines in the Partnership's producing areas.

     Production expenses and severance taxes were $93,000 in the current period
versus $133,000 in the first half of 2000, a decrease of 30%. The decrease was
due primarily to lower lifting costs and severance taxes in the first half of
2001 resulting in part from lower natural gas and crude oil production. On a
unit of production basis, these expenses decreased to $1.03 per Mcfe in the
first six months of 2001 from $1.27 per Mcfe in the year-earlier period.

     G&A expenses of $26,000 in the current period decreased 21% from $33,000 in
the first half of 2000. Lower current period Partnership production activity
caused the decline in G&A expenses charged by Kelley Oil to the Partnership. On
a unit of production basis, G&A expenses decreased from $0.31 per Mcfe in the
first six months of 2000 to $0.29 per Mcfe in the current period.

     In the first six months of 2000, the Partnership incurred interest expenses
of $6,000, on a loan advanced to it by Kelley Oil in August 1994 ("Initial
Loan") to fund part of its drilling expenditures in excess of contributed
capital. There was no interest expense in the first six months of 2001 as the
final payment on the Initial Loan was made in the second half of 2000.

     DD&A expenses decreased 36% from $66,000 in the first six months of 2000 to
$42,000 in the current period due to lower current period production and lower
depletion rates. On a unit of production basis, DD&A expenses decreased to $0.47
per Mcfe in the first half of 2001 from $0.63 per Mcfe in the same period last
year.

     The Partnership recognized net income of $366,000 or $0.02 per Unit for the
first half of 2001. For the first half of 2000, the Partnership recognized net
income of $134,000 or $0.01 per Unit. The reasons for the variance between the
first six months of 2001 and the first six months of 2000 are described in the
foregoing discussion.

     The results of operations for the quarter and six months ended June 30,
2001 are not necessarily indicative of the Partnership's operating results to be
expected for the full year.


LIQUIDITY AND CAPITAL RESOURCES

     Liquidity. Net cash provided by the Partnership's operating activities
during the first six months of 2001, as reflected on its statement of cash
flows, totaled $109,000. During the period, funds used in investing activities
were comprised of capital expenditures of $20,000, and funds used in financing
activities consisted of $89,000 distributed to partners. As a result of these
activities, the Partnership's cash and cash equivalents remained unchanged from
December 31, 2000.

                                       7
<PAGE>   9

     Capital Resources. The Partnership has completed its development stage.
Accordingly, cash flow from operations should be adequate to meet its expected
capital and general working capital needs.

     Distribution Policy. The Partnership maintains a policy of distributing
cash that is not required for the conduct of Partnership business to unitholders
on a quarterly basis. In May 2001, the first quarter 2001 earnings distribution
was paid to the managing and special general partners and unitholders in the
amounts of $4,000 and $85,000, or $0.01 per Unit, respectively. However, future
distributions to are contingent on future operating results.

     Inflation and Changing Prices. Oil and natural gas prices, as with most
commodities, are highly volatile, have fluctuated during recent years and
generally have not followed the same pattern as inflation.

     Accounting Pronouncements. In the fourth quarter of 2000, the Partnership
adopted Emerging Issues Task Force Issue No. 00-10 ("EITF No. 00-10") accounting
for Shipping and Handling Fees and Costs. EITF No. 00-10 addresses how shipping
and handling fees should be classified in the income statement. As a result of
EITF No. 00-10, the Partnership has reclassified its transportation and
compression expenses from oil and gas revenues to lease operating expenses. As a
result, $2,000 and $3,000 of expenses were reclassified from oil and gas
revenues to lease operating expenses for the three months and six months ended
June 30, 2000, respectively.

     In July 2001, the Financial Accounting Standards Board ("FASB") issued two
new pronouncements: Statement of Financial Accounting Standards ("SFAS") No.
141, "Business Combinations", and SFAS No. 142, "Goodwill and Other Intangible
Assets". SFAS 141 prohibits the use of the pooling-of-interest method for
business combinations initiated after June 30, 2001 and also applies to all
business combinations accounted for by the purchase method that are completed
after June 30, 2001. SFAS 142, effective for fiscal years beginning after
December 15, 2001, addresses financial accounting and reporting for acquired
goodwill and other intangible assets and supersedes APB Opinion No. 17,
Intangible Assets. It addresses how intangible assets that are acquired
individually or with a group of other assets (but not those acquired in a
business combination) should be accounted for in financial statements upon their
acquisition. This Statement also addresses how goodwill and other intangible
assets should be accounted for after they have been initially recognized in the
financial statements. The Partnership expects no impact on its financial
statements from the adoption of these standards.

                                       8
<PAGE>   10


FORWARD-LOOKING STATEMENTS

     Statements contained in this Report and other materials filed or to be
filed by the Partnership with the Securities and Exchange Commission (as well as
information included in oral or other written statements made or to be made by
the Partnership or its representatives) that are forward-looking in nature are
intended to be "forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, relating to matters such as anticipated
operating and financial performance, business prospects, developments and
results of the Partnership. Actual performance, prospects, developments and
results may differ materially from any or all anticipated results due to
economic conditions and other risks, uncertainties and circumstances partly or
totally outside the control of the Partnership, including rates of inflation,
natural gas prices, uncertainty of reserve estimates, rates and timing of future
production of oil and gas, exploratory and development activities, acquisition
risks, changes in the level and timing of future costs and expenses related to
drilling and operating activities and those risk factors described on pages 9
and 10 of the Partnership's Annual Report on Form 10-K for the fiscal year ended
December 31, 2000.

     Words such as "anticipated," "expect," "estimate," "project" and similar
expressions are intended to identify forward-looking statements. Forward-looking
statements include the risk factors described in the Partnership's Form 10-K
mentioned above.

                           PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)  Exhibits:

              EXHIBIT
              NUMBER:      EXHIBIT
              -------      -------
               None

         (b)  Reports on Form 8-K:

     No reports on Form 8-K were filed by the Registrant during the second
quarter of 2001.

                                       9
<PAGE>   11


                                   SIGNATURES

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

                                    KELLEY PARTNERS 1992
                                    DEVELOPMENT DRILLING PROGRAM

                                    By:  KELLEY OIL CORPORATION
                                         Managing General Partner

Date: August 13, 2001               By:                /s/Rick G. Lester
                                         -------------------------------
                                                        Rick G. Lester

                                                    Chief Financial Officer
                                                   (Duly Authorized Officer)
                                                (Principal Accounting Officer)

                                       10