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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, 2002

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

For the Transition Period Ended _____________________________

Commission File Number 2-84452

STERLING DRILLING FUND 1983-1

(Exact name of registrant as specified in charter)

New York

(State or other jurisdiction of incorporation or organization)

13-3167549

(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 too such filing requirements for the past 90 days. Yes/X/ No / /

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Item 1. Financial Statements

The following Financial Statements are filed herewith:

Balance Sheets - June 30, 2002 and December 31, 2001.

Statements of Operations for the Six and Three Months Ended June 30, 2002 and 2001.

Statements of Changes in Partners' Equity for the Six and Three Months Ended June 30, 2002 and 2001.

Statements of Cash Flows for the Six Months Ended June 30, 2002 and 2001.

Note to Financial Statements

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

Liquidity -

The oil and gas industry is intensely competitive in all its phases. There is also competition between this industry and other industries in supplying energy and fuel requirements of industrial and residential 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 as filed by the Registrant, 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 contingent debts, liabilities or expenses for the conduct of the Partnership's business. As of June 30, 2002, the General Partners have distributed $2,630,787.50 or 23.75% of original 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. Reservoir engineering is a subjective process of estimating underground accumulations of gas and oil that cannot be measured in an exact manner. 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, 2001 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 and 2001 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 spot price for gas at December 31, 2001 was $2.63 per MMBTU. The range of spot prices during the year 2001 was a low of $1.77 and a high of $10.29 and the average was $3.94. . The range during the first half of 2002 has been from $1.98 to $3.70 with an average of $2.96. The recent futures market prices have been in the $2.89 range.

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The present value of unescalated future net revenue (S.E.C. case) associated with such reserves, discounted at 10% as of December 31, 2001, was approximately $1,140,108 as compared to the discounted reserves as of December 31, 2000, which were approximately $5,503,164. While it may reasonably be anticipated that the prices received by Sterling Drilling Fund 1983-1 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 November 1983 for $9,400,000. Pursuant to terms of this contract thirty-eight wells have been drilled resulting in thirty-seven producing wells and one dry hole.

During 2002, PrimeEnergy Management negotiated a Farmout Agreement with Ardent Resources Inc.covering leasehold interests in acres located in Calhoun County, West Virginia. Pursuant to this agreement, Ardent has 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. If a test well is not spudded by February 13, 2005 this agreement terminates. Acreage held by Sterling Drilling Fund 1983-1 was included in the Farmout Agreement, PrimeEnergy Management may discuss the possibility of farming out additional deep rights held by the Partnership under the same terms with other parties, however, there is no guarantee that any agreement will be entered into.

3. Results of Operations -

The combination of both lower average pricing and decreased gas production resulted in the Partnership's operating revenues decline from $299,206 in 2001 to $156,231 in 2002. Gas and oil production changed from 51,294 MCF and 195 BBLS in 2001 to 43,759 MCF and 503 BBLS in 2002. The production volume variations can be a result of changes in transportation line pressures, miscellaneous shut-ins for maintenance and natural declines. The average price per MCF decreased, from $5.75 in 2001 to $3.35 in 2002. A new contract was entered into in December 2001 and the Partnership was paid based upon monthly spot market prices through May 2002. The General Partners' elected to sell a substantial portion of the gas delivered under this contract from June 2002 through October 2002 at a fixed price of $3.57 per MMBTU subject to transportation costs. The average price per MCF for the first quarter 2002 was only $2.83 as compared to the six months of 2002 when the average price increased over forty-five cents per MCF.

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Production expenses decreased from $128,982 in 2001 to $72,944 in 2002. The production expenses include variable costs associated with volume changes, repairs and labor costs associated with the wells and well sites. Production expenses, during 2002, included normal maintenance and upkeep of the wells and well sites. During 2001 some additional maintenance was performed at various sites, which included small tools and supplies purchased, electrical work, chemicals and labor costs.

The Partnership's other income is a result of a cash bonus paid to the Partnership under the farmout agreement, previously discussed.

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 2001 and 2002 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 2001 or through the first half of 2002. There were no additional capitalized well-related expenditures during the first half of 2002.

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

(a) Exhibit 99: Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002

(b)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 Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

STERLING DRILLING FUND 1983-1

(Registrant)

BY:/s/ Charles E. Drimal Jr.

Charles E. Drimal, Jr.,

General Partner

August 9, 2002

(Date)

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Balance Sheets

		June 30, 2002		December 31, 2001
		(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	243,793	$	318,796
Due from affiliates		16,145		44,585
Due from others		0		0
		----------------		------------------
Total current assets		259,938		363,381
		----------------		------------------
Oil and gas properties - Successful efforts method:
Leasehold costs		321,314		321,314
Well and related facilities		8,934,084		8,934,084
Less accumulated ,depreciation, depletion and
amortization		(8,076,719)		(8,043,389)
		----------------		------------------
Total Oil and Gas Properties		1,178,679		1,212,009
		----------------		------------------
Total assets	$	1,438,617	$	1,575,390
		==========		==========

Partners' Equity
Partners' equity
Limited partners		1,389,779		1,499,047
General partners		48,838		76,343
		----------------		------------------
Total Partners' Equity	$	1,438,617	$	1,575,390
		===========		===========

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Six Months Ending

June 30, 2002

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	119,517	36,714	$	156,231
Other Income		13,099	4,024		17,123
Interest income		2,213	206		2,419
		-------------	-------------		-------------
Total Revenue		134,829	40,944		175,773
		-------------	-------------		-------------

Costs and Expenses:
Production expense		55,802	17,142		72,944
General and administrative to a related		38,556	11,844		50,400
party
General and administrative		8,472	2,603		11,075
Depreciation, depletion and
amortization		30,497	2,833		33,330
		-------------	-------------		-------------
Total Costs and Expenses		133,327	34,422		167,749
		-------------	-------------		-------------
Net Income (Loss)	$	1,502	6,522	$	8,024
		========	========		=======
Net Income (Loss) per equity unit	$	.14
		========

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Statement of Operations

(unaudited)

			Six Months Ending June 30, 2001
		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	228,893		70,313	$	299,206
Interest income		5,136		477		5,613
		-------------		-------------		-------------
Total Revenue		234,029		70,790		304,819
		-------------		-------------		-------------

Costs and Expenses:
Production expense		98,671		30,311		128,982
General and administrative to a related
party		38,556		11,844		50,400
General and administrative		6,120		1,880		8,000
Depreciation, depletion and
amortization		32,038		2,976		35,014
		-------------		-------------		-------------
Total Costs and Expenses		175,385		47,011		222,396
		-------------		-------------		-------------
Net Income (Loss)	$	58,644		23,779	$	82,423
		========		========		=======
Net Income (Loss) per equity unit	$	5.29
		========

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Three Months Ending

June 30, 2002

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	69,760	21,429	$	91,189
Interest income		985	92		1,077
		-------------	-------------		-------------
Total Revenue		70,745	21,521		92,266
		-------------	-------------		-------------

Costs and Expenses:
Production expense		24,976	7,673		32,649
General and administrative to a related
party		19,278	5,922		25,200
General and administrative		5,482	1,685		7,167
Depreciation, depletion and
amortization		15,249	1,416		16,665
		-------------	-------------		-------------
Total Costs and Expenses		64,985	16,696		81,681
		-------------	-------------		-------------
Net Income(Loss)	$	5,760	4,825	$	10,585
		========	========		=========
Net Income(Loss) per equity unit	$	0.52
		========

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Statement of Operations

(unaudited)

			Three Months Ending June 30, 2001
		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	109,662		33,686	$	143,348
Interest income		2,797		(241)		2,556
		-------------		-------------		-------------
Total Revenue		112,459		33,445		145,904
		-------------		-------------		-------------

Costs and Expenses:
Production expense		47,075		14,461		61,536
General and administrative to a related
party		19,278		5,922		25,200
General and administrative		2,713		833		3,546
Depreciation, depletion and
amortization		16,019		1,488		17,507
		-------------		-------------		-------------
Total Costs and Expenses		85,085		22,704		107,789
		-------------		-------------		-------------
Net Income(Loss)	$	27,374		10,741	$	38,115
		========		========		=========
Net Income(Loss) per equity unit	$	2.47
		======

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

Six Months Ending

June 30, 2002

		Limited Partners		General Partners		Total

Balance at beginning of period	$	1,499,047		76,343	$	1,575,390
Partners' Contributions		0		0		0
Cash Distributions		(110,770)		(34,027)		(144,797)
Net Income(Loss)		1,502		6,522		8,024
		-------------		-------------		-------------
Balance at end of period	$	1,389,779		48,838	$	1,438,617
		========		========		=========

			Six Months Ending June 30, 2001
		Limited Partners		General Partners			Total

Balance at beginning of period	$	1,477,086		54,864	$		1,531,950
Partners' Contributions		0		475			475
Cash Distributions		(110,770)		(31,890)			(142,660)
Net Income(Loss)		58,644		23,779			82,423
		-------------		-------------			-------------
Balance at end of period	$	1,424,960		47,228	$		1,472,188
		=======		=======			========

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

				Three Months Ending June 30, 2002
		Limited Partners			General Partners				Total

Balance at beginning of period	$	1,494,789			78,040		$		1,572,829
Partners' Contributions		0			0				0
Cash Distributions		(110,770)			(34,027)				(144,797)
Net Income(Loss)		5,760			4,825				10,585
		-------------			-------------				-------------
Balance at end of period	$	1,389,779			48,838		$		1,438,617
		=======			=======				=======

				Three Months Ending June 30, 2001
			Limited Partners			General Partners				Total

Balance at beginning of period	$		1,508,356			67,902		$		1,576,258
Partners' Contributions			0			475				475
Cash Distributions			(110,770)			(31,890)				(142,660)
Net Income(Loss)			27,374			10,741				38,115
			-------------			-------------				-------------
Balance at end of period	$		1,424,960			47,228		$		1,472,188
			========			========				========

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Statement of Cash Flows

(unaudited)

		Six months Ended June 30, 2002		Six months Ended June 30, 2001

Net cash provided by (used in) operating activities	$	69,794	$	112,969
		-------------		-------------
Cash Flows from investing activities:
Investment in wells and related facilities		0		0
		-------------		-------------
Net Cash used in investing activities		0		0

Cash flows from financing activities:
Distribution to partners		(144,797)		(142,660)
Partners' contributions		0		475
		-------------		-------------
Net cash used in financing activities		(144,797)		(142,185)
		-------------		-------------

Net increase(decrease) in cash and cash equivalents		(75,003)		(29,216)
Cash and cash equivalents at beginning of period		318,796		198,847
		-------------		-------------
Cash and cash equivalents at end of period	$	243,793	$	169,631
		========		========

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-1

(a New York limited partnership)

Note to Financial Statements

June 30, 2002

1. The accompanying statements for the period ending June 30, 2002 are unaudited but reflect all adjustments necessary to present fairly the results of operations.

STERLING DRILLING FUND 1983-1 10-Q