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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 June 30, 2001

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

For the Transition Period Ended______________________

Commission File Number 2-784441

STERLING GAS DRILLING FUND 1982

(Exact name of registrant as specified in charter)

New York

(State or other jurisdiction of incorporation or organization)

13-3147901

(IRS employer identification number)

One Landmark Square, Stamford Connecticut 06901

(Address and Zip Code of principal executive offices)

(203) 358-5700

(Registrant's telephone number, including area code)

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

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PART I

Item 1. Financial Statements

The following Financial Statements are filed herewith:

Balance Sheets June 30, 2001 and December 31, 2000.

Statements of Operations for the Six and the Three Months Ended June 30, 2001 and 2000.

Statements of Changes in Partners' Equity for the Six and the Three Months Ended June 30, 2001 and 2000.

Statements of Cash Flows for the Six Months Ended June 30, 2001 and 2000.

Note to Financial Statements

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

1. Liquidity -

The oil and gas industry is intensely competitive in all its phases. There is also competition among this industry and other industries in supplying energy and fuel requirements of industrial and individual consumers. It is not possible for the Registrant to calculate its position in the industry as Registrant competes with many other companies having substantially greater financial and other resources. In accordance with the terms of the Prospectus, the General Partners of the Registrant will make cash distributions of as much of the Partnership cash, credited to the capital accounts of the Partners, as the General Partners have determined is not necessary or desirable for the payment of any contingent debts, liabilities or expenses or for the conduct of the Partnership's business. As of June 30, 2001, the General partners have distributed to the Limited partners $1,402,512 or 9.76%of the total Limited Partner capital contributions to the Limited partners.

The net proved oil and gas reserves of the Partnership are considered to be a primary indicator of financial strength and future liquidity. The present value of unescalated future net revenue (S.E.C. case) associated with such reserves, discounted at 10% as of December 31, 2000 was approximately $4,363,700, as compared to December 31, 1999, of about $936,729 The estimated reserve quantities and future income quantities are related to hydrocarbon prices. Therefore, volumes of reserves actually recovered and amounts of income actually received may differ significantly from the estimated quantities presented in this report.

In accordance with FASB Statement No. 69, December 31, 2000 market prices were determined using the daily oil price or daily gas sales price ("spot price") adjusted for oilfield or gas gathering hub and wellhead price differentials (e.g. grade, transportation, gravity, sulfur, and BS&W) as appropriate. Also, in accordance with SEC and FASB specifications, changes in market prices subsequent to December 31, 2000 were not considered. The spot price for gas at December 31, 2000 was $9.23 per MMBTU. The range of spot prices during the year 2000 was a low of $2.14 and a high of $10.50 and the average was $4.28. The range during the first six months of 2001 has been from $3.21 to $10.69 with an average of $5.34. The Partnership actually received an average price for gas sold of $5.93 during the first six months of 2001.

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While it may reasonably be anticipated that the prices received by Sterling Gas Drilling Fund 1982 for the sale of its production may be higher or lower than the prices used in this evaluation, as described above, and the operating costs relating to such production may also increase or decrease from existing levels, such possible changes in prices and costs were, in accordance with rules adopted by the SEC, omitted from consideration in making this evaluation for the SEC case. Actual volumes produced, prices received and costs incurred by the partnership may vary significantly from the SEC case.

2. Capital Resources -

The Registrant was formed for the sole intention of drilling oil and gas wells. The Registrant entered into a drilling contract with an independent contractor in December 1982 for $11,400,000. Pursuant to the terms of this contract, fifty-one wells have been drilled resulting in fifty producing wells and one dry hole. The Registrant has had a reserve report prepared which details reserve value information, and such information is available to the Limited Partners pursuant to the buy-out provisions of the Prospectus as previously filed.

During early 2001, PrimeEnergy Management negotiated a Farmout Agreement with Eastern American Energy. (EAE) covering leasehold interests in approximately 5,000 acres in Clay County, West Virginia. Acreage held by Sterling Gas Drilling Fund 1982 Limited Partnership has been included in the Farmout Agreement. This agreement provided for a small cash bonus paid at closing and gives EAE the right but not the obligation to select acreage and drill a deep well on the selected acreage, subject to an overriding royalty interest due to the leasehold owners. This agreement closed in May 2001 and will be in effect till May 1, 2003. The Partnership's share of the acreage bonus was $55,881. There is no guarantee that EAE will exercise their rights under this agreement. After this contract terminates, PrimeEnergy will attempt to find other parties interested in the Partnership's acreage, however there is no guarantee that a new agreement will be made. This opportunity may come up again over the next few years, PrimeEnergy will continue to purse this type of potential revenue if feasible.

3. Results of Operations -

The Partnership experienced reduced gas and oil production, from 44,825 MCF and 837 BBLS in 2000 to 38,018 MCF and 483 BBLS in 2001. The average prices changed from $3.24 per MCF and $25.57 per barrel in 2000 to $5.93 per MCF and $24.04 BBLS in 2001. The overall revenue increased from $166,435 in 2000 to $237,131 in 2001 because of the positive significant change in average price per MCF. Production expenses increased to $124,929 in 2001 from $72,066 in 2000. The production expenses include variable costs associated with volume changes, repairs and labor costs associated with the wells and well sites. Production expenses, during 2000, were limited to normal maintenance and upkeep of the wells and well sites. During 2001 some additional maintenance was performed at various sites, which may include small tools and supplies purchased, electrical work,

chemicals and labor costs.

The Partnerships other income is a result of a cash bonus paid to the partnership for a two-year farmout agreement. The farmout agreement allows a third party the right to drill a deep well on leasehold acerage owned by the partnership. If the third party exercises their rights with in the two years the Partnership could receive an overriding royalty interest. The amount of the cash bonus paid to the partnership is $55,881.

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General and administrative expenses have been segregated on the financial statements to reflect expenses paid to PrimeEnergy Management Corporation, a general partner. These expenses are charged in accordance with guidelines set forth in the Registrant's Management Agreement and are attributable to the affairs and operations of the Partnership and shall not exceed an annual amount equal to 5% of the Limited Partners capital contributions. Amounts related to both 2000 and 2001 are substantially less than the amounts allocable to the Registrant under the Partnership Agreement. Management continues to work on reducing third party costs and use in-house resources to provide efficient and timely services to the Partnership

The Partnership records additional depreciation, depletion and amortization to the extent that net capitalized costs exceed the undiscounted future net cash flows attributable to the Partnership properties. The Partnership was not required to revise the property basis in either 2000 or 2001. Depletion, depreciation and amortization expense was consistent with the current property basis and the rates applied.

PART II

Items 1 through 5 have been omitted in that each item is either Inapplicable or the answer is negative.

Item 6: Exhibits and Reports on form 8-K

The Partnership was not required to file any reports on Form 8-K and No such form was filed during the period covered by this report.

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S I G N A T U R E S

Pursuant to the requirements of Section 13 or 15 (d) of the Securities and Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

STERLING GAS DRILLING FUND 1982

(Registrant)

BY: /S/ Charles E. Drimal Jr.

Charles E. Drimal, Jr.

General Partner

August 8, 2001

(Date)

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STERLING DRILLING FUND 1982

(A New York Limited Partnership)

Balance Sheets

		June 30, 2001		December 31, 2000
		(unaudited)		(audited)
Assets
Current Assets:
Cash and cash equivalents	$	4	$	3
Due from others		0		0
		-----------------		--------------
Total current assets		4		3
		-----------------		--------------
Oil and Gas properties - successful efforts method:
Leasehold costs		466,804		466,804
Well and related facilities		11,970,291		11,970,091
less accumulated depreciation, depletion and
amortization		(11,833,282)		(11,817,963)
		-----------------		--------------
Total Oil and Gas Properties		603,813		618,932
		-----------------		---------------
Total assets	$	603,817	$	618,935
		==========		===========

Liabilities and Partners' Equity
Current liabilities:
Due to affiliates	$	15,003	$	124,619
		----------------		---------------
Total current liabilities		15,003		124,619
		----------------		------------------

Partners' Equity
Limited partners		831,074		745,531
General partners		(242,260)		(251,215)
		----------------		--------------
Total partners' equity		588,814		494,316
		----------------		-----------------

Total liabilities and partners' equity	$	603,817	$	618,935
		=========		==========

See accompanying footnote to the financial statements

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STERLING DRILLING FUND 1982

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Six Months Ending

June 30, 2001

		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	199,546	$	37,585	$	237,131
Other income		55,322		559		55,881
		--------------		--------------		--------------
Total Revenue		254,868		38,144		293,012
		--------------		--------------		--------------

Costs and Expenses:
Production expense		105,128		19,801		124,929
General and administrative to a related party		42,412		7,988		50,400
General and administrative		6,620		1,247		7,867
Depreciation, depletion and amortization		15,165		153		15,318
		--------------		--------------		--------------
Total Costs and Expenses		169,325		29,189		198,514
		--------------		--------------		--------------
Net Income (Loss)	$	85,543	$	8,955	$	94,498
		========		========		========
Net Income (Loss) per Equity unit	$	5.95
		========

See accompanying footnote to the financial statements

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STERLING DRILLING FUND 1982

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Six Months Ending

June 30, 2000

		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	140,055	$	26,380	$	166,435
Other income		0		0		0
		-------------		-------------		-------------
Total Revenue		140,055		26,380		166,435
		-------------		-------------		-------------

Costs and Expenses:
Production expense		60,643		11,423		72,066
General and administrative to a related party		35,762		6,736		42,498
General and administrative		12,225		2,303		14,528
Depreciation, depletion and amortization		17,890		181		18,071
		-------------		-------------		-------------
Total Costs and Expenses		126,520		20,643		147,163
		-------------		-------------		-------------
Net Income(Loss)	$	13,535		5,737		19,272
		=======	$	========	$	========
Net Income(Loss) per equity unit	$	.94
		=======

See accompanying footnote to the financial statements

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STERLING DRILLING FUND 1982

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Three Months Ending

June 30, 2001

		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	98,563	$	18,565	$	117,128
Other income		55,322		559		55,881
		-------------		-------------		-------------
Total Revenue		153,885		19,124		173,009
		-------------		-------------		-------------

Costs and Expenses:
Production expense		51,486		9,697		61,183
General and administrative to a related party		21,206		3,994		25,200
General and administrative		2,822		532		3,354
Depreciation, depletion and amortization		7,583		76		7,659
		-------------		-------------		-------------
Total Costs and Expenses		83,097		14,299		97,396
		-------------		-------------		-------------
Net Income (Loss)	$	70,788	$	4,825	$	75,613
		=======		=======		=======
Net Income (Loss) per equity unit	$	4.93
		=======

See accompanying footnote to the financial statements

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STERLING DRILLING FUND 1982

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Three Months Ending

June 30, 2000

		Limited Partners			General Partners			Total
Revenue:
Operating revenue	$	71,715		$	13,508		$	85,223
Other income			0			0			0
		-------------			-------------			-------------
Total Revenue		71,715			13,508			85,223
		-------------			-------------			-------------

Costs and Expenses:
Production expense		33,652			6,339			39,991
General and administrative to a related party		17,881			3,368			21,249
General and administrative		7,282			1,372			8,654
Depreciation, depletion and amortization		8,945			91			9,036
		------------			-------------			-------------
Total Costs and Expenses		67,760			11,170			78,930
		------------			-------------			-------------
Net Income (Loss)	$	3,955		$	2,338		$	6,293
		=======			=======			=======
Net Income (Loss) per equity unit	$	0.28
		=======

See accompanying footnote to the financial statements

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STERLING DRILLING FUND 1982

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

Six Months Ending

June 30, 2001

		Limited Partners		General Partners					Total

Balance at beginning of period	$	745,531	$	(251,215)			$		494,316
Net Income(Loss)		85,543		8,955					94,498
		-------------		-------------					-------------
Balance at end of period	$	831,074		(242,260)			$		588,814
		========		========					========

						Six Months Ending June 30, 2000
		Limited Partners			General Partners					Total

Balance at beginning of period	$	676,005	$		(269,995)			$		406,010
Net Income(Loss)		13,535			5,737					19,272
		-------------			-------------					-------------
Balance at end of period	$	689,540	$		(264,258)			$		425,282
		========			========					========

See accompanying footnote to the financial statements

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STERLING DRILLING FUND 1982

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

Three Months Ending

June 30, 2001

				Limited Partners					General Partners				Total

Balance at beginning of period	$			760,286			$		(247,085)		$		513,201
Net Income(Loss)				70,788					4,825				75,613
				-------------					-------------				-------------
Balance at end of period	$			831,074			$		(242,260)		$		588,814
				========					========				========



					Three Months Ending June 30, 2000
			Limited Partners					General Partners				Total

Balance at beginning of period		$	685,585			$		(266,596)		$		418,989
Net Income(Loss)			3,955					2,338				6,293
			-------------					-------------				-------------
Balance at end of period		$	689,540			$		(264,258)		$		425,282
			========					========				========

See accompanying footnote to the financial statements

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STERLING DRILLING FUND 1982

(a New York Limited Partnership)

Statement of Cash Flows

(unaudited)

		Six months Ended June 30, 2001		Six months Ended June 30, 2000

Net cash provided by operating activities	$	1	$	2
		---------------		---------------

Net increase(decrease) in cash and cash equivalents		1		2

Cash and cash equivalents at beginning of period		3		4
		---------------		---------------
Cash and cash equivalents at end of period	$	4	$	6
		=========		=========

See accompanying footnote to the financial statements

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STERLING GAS DRILLING FUND 1982

(a New York limited partnership)

Note to Financial Statements

June 30, 2001

1. The accompanying statements for the period ending June 30, 2001 are unaudited, but reflect all adjustments necessary to present fairly the results of operations.

STERLING GAS DRILLING FUND 1982 10-Q