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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 September 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 - September 30, 2001 and December 31, 2000.

Statements of Operations for the Nine and the Three Months Ended September 30, 2001 and 2000.

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

Statements of Cash Flows for the Nine Months Ended September 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 September 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 nine months of 2001 has been from $1.82 to $10.69 with an average of $4.47. The three month average from July to September 2001 was $2.73. The Partnership actually received an average price for gas sold of $5.49 during the first nine months of 2001. The majority of the Partnership's gas revenue is sold under a gas contract which started December 1, 2000 and will end November 30, 2001. The Partnership will have no problem selling its gas after the contract ends, but gas produced will most likely be sold at a price that reflects the current market conditions.

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.

PrimeEnergy Management is currently negotiating a similar Farmout Agreeement covering approximetly 6,000 acres in Roane County, West Virginia. Partnership acreage may be included in this farmout. If this farmout is not completed 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 minor decreases in both gas and oil produced, from 63,191 MCF and 1,067 BBLS in 2000 to 58.294 MCF and 902 BBLS in 2001. The average prices changed from $3.26 per MCF and $26.70 per barrel in 2000 to $5.49 per MCF and $23.72 BBLS in 2000. The combination of good production and prices resulted in overall operating revenues to increase from $234,977 in 2000 to $341,182 in 2001.

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.

Production expenses increased to $177,093 in 2001 from $109,907 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 2001, were incurred for normal maintenance and upkeep of the wells and well sites . Some additonal costs in 2000 were incurred to help maintain production volumes.

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 undercounted 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

November 8, 2001

(Date)

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STERLING DRILLING FUND 1982

(A New York Limited Partnership)

Balance Sheets

		September 30, 2001		December 31, 2000
		(unaudited)		(audited)
Assets
Current Assets:
Cash and cash equivalents	$	2	$	3
Due from others		6,747		0
		----------------		-------------------
Total current assets		6,749		3
		----------------		-------------------
Oil and Gas properties - successful efforts method:
Leasehold costs		466,804		466,804
Well and related facilities		11,970,091		11,970,091
less accumulated depreciation, depletion and
Amortization		(11,840,942)		(11,817,963)
		----------------		-------------------
Total Oil and Gas Properties		595,953		618,932
		----------------		-------------------
Total assets	$	602,702	$	618,935
		==========		===========

Liabilities and Partners' Equity
Current liabilities:
Due to affiliates	$	0	$	124,619
		-----------------		-------------------
Total current liabilities				124,619
		-----------------		-------------------

Partners' Equity
Limited partners		841,793		745,531
General partners		(238,891)		(251,215)
		-----------------		-------------------
Total partners' equity		602,902		494,316
		-----------------		-------------------

Total liabilities and partners' equity	$	602,902	$	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)

Nine Months Ending

September 30, 2001

		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	287,105	$	54,077	$	341,182
Other income		55,322		559		55,881
		-------------		-------------		-------------
Total Revenue		342,427		54,636		397,063
		-------------		-------------		-------------

Costs and Expenses:
Production expense		149,192		28,101		177,293
General and administrative to a related party		63,617		11,983		75,600
General and administrative		10,776		2,030		12,806
Depreciation, depletion and amortization		22,748		230		22,978
		-------------		-------------		-------------
Total Costs and Expenses		246,333		42,344		288,677
		-------------		-------------		-------------
Net Income	$	96,094	$	12,292	$	108,386
		========		========		========
Net Income per Equity unit	$	6.69
		========

See accompanying footnote to the financial statements

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STERLING DRILLING FUND 1982

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Nine Months Ending

September 30, 2000

		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	197,733	$	37,244	$	234,977
		-------------		-------------		-------------
Total Revenue		197,733		37,244		234,977
		-------------		-------------		-------------

Costs and Expenses:
Production expense		92,487		17,420		109,907
General and administrative to a related party		53,643		10,104		63,747
General and administrative		14,215		2,678		16,893
Depreciation, depletion and amortization		26,833		271		27,104
		-------------		-------------		-------------
Total Costs and Expenses		187,718		30,473		217,651
		-------------		-------------		-------------
Net Income	$	10,555	$	6,771	$	17,326
		========		========		========
Net Income per equity unit	$	0.73
		========

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

September 30, 2001

		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	87,559	$	16,492	$	104,051
Other income
		------------		------------		------------
Total Revenue		87,559		16,492		104,051
		------------		------------		------------

Costs and Expenses:
Production expense		44,064		8,300		52,364
General and administrative to a related party		21,205		3,995		25,200
General and administrative		4,156		783		4,939
Depreciation, depletion and amortization		7,583		77		7,660
		------------		------------		------------
Total Costs and Expenses		77,008		13,155		90,163
		------------		------------		------------
Net Income	$	10,551	$	3,337	$	13,888
		=======		=======		=======
Net Income per equity unit	$	0.73
		=======

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

September 30, 2000

		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	57,678	$	10,864	$	68,542
		------------		------------		------------
Total Revenue		57,678		10,864		68,542
		------------		------------		------------

Costs and Expenses:
Production expense		31,844		5,997		37,841
General and administrative to a related party		17,881		3,368		21,249
General and administrative		1,990		375		2,365
Depreciation, depletion and amortization		8,943		90		9,033
		------------		------------		------------
Total Costs and Expenses		60,658		9,830		70,488
		------------		------------		------------
Net Income/ (Loss)	$	(2,980)	$	1,034	$	(1,946)
		=======		=======		=======
Net Income /(Loss)per equity unit	$	(0.21)
		========

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)

Nine Months Ending

September 30, 2001

		Limited Partners	General Partners		Total

Balance at beginning of period	$	745,531	(251,215)	$	494,316
Net Income		96,094	12,292		108,386
		------------	------------		------------
Balance at end of period	$	841,625	(238,923)	$	602,702
		=======	=======		=======

Nine Months Ending

September 30, 2000

		Limited Partners		General Partners		Total

Balance at beginning of period	$	676,005	$	(269,995)	$	406,010
Net Income		10,555		6,771		17,326
		------------		------------		------------
Balance at end of period	$	686,560		(263,224)	$	423,336
		=======		=======		=======

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

September 30, 2001

		Limited Partners		General Partners		Total

Balance at beginning of period	$	831,074	$	(242,260)	$	588,814
Net Income		10,551		3,337		13,888
		-----------		-----------		-----------
Balance at end of period	$	841,625		(238,923)	$	602,702
		=======		=======		=======

Three Months Ending

September 30, 2000

		Limited Partners		General Partners		Total

Balance at beginning of period	$	689,540	$	(264,258)	$	425,282
Net Income(Loss)		(2,980)		1,034		(1,946)
		------------		------------		------------
Balance at end of period	$	686,560	$	(263,224)	$	423,336
		=======		=======		=======

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)

		Nine months Ended September 30, 2001		Nine months Ended September 30, 2000

Net cash provided by operating activities	$	198	$	2
		---------------		---------------
Cash Flows from investing activities:
Investment in wells and related facilities		(200)		0
		---------------		---------------
Net Cash used in investing activities		(200)		0
		----------------		---------------

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

Cash and cash equivalents at beginning of period		3		4
		---------------		---------------
Cash and cash equivalents at end of period	$	1	$	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

September 30, 2001

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

STERLING GAS DRILLING FUND 1982 10-Q