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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, 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)

1 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 - September 30, 2002 and December 31, 2001.

Statements of Operations for the Nine and Three Months Ended September 30, 2002 and 2001.

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

Statements of Cash Flows for the Nine Months Ended September 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 September 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

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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 nine months of 2002 has been from $1.98 to $4.10 with an average of $3.18. The recent futures market prices have been in the $3.94 range. The Partnership actually received an average price for gas sold of $3.54 during the first nine months of 2002.

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 decreased pricing and production resulted in the Partnership's operating revenues significant increase from $451,512 in 2001 to $256,827 in 2002. The gas and oil production declined, from 77,781 MCF and 413 BBLS to 68,673 MCF and 686 BBLS in 2002. The production volume variations can be a result of changes in transportation line pressures, miscellaneous shut-ins for maintance and natural declines.

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The most significant impact to revenue was the average price per MCF decreased, from $5.68 in 2001 to $3.84 in 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 Partnership's other income is a result of a cash bonus paid to the Partnership under a 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 the Partnership could receive an overriding royalty interest. The amount of the cash bonus paid to the Partnership is $28,523.

Production expenses decreased from $181,341 in 2001 to $119,731 in 2002. The production expenses include variable costs associated with volume changes, repairs and labor costs associated with the wells and well sites. During 2001 some additional maintenance was performed at various sites in order to help increase and maintain production levels. During 2002 normal routine and maintenance upkeep was performed at the well site and on the individual wells.

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 third quarter of 2002. There were no additional capitalized well-related expenditures during the first nine months 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

November 8, 2002

(Date)

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Balance Sheets

		September 30, 2002		December 31, 2001
		(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	258,330	$	318,796
Due from affiliates		32,202		44,585
		---------------		---------------
Total current assets		290,532		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		(8,093,384)		(8,043,389)
		---------------		---------------
Total Oil and Gas Properties		1,162,014		1,212,009
		---------------		---------------
Total assets	$	1,452,546	$	1,575,390
		=========		=========

Partners' Equity
Partners' equity
Limited partners		1,397,692		1,499,047
General partners		54,854		76,343
		---------------		---------------
Total partners' equity	$	1,452,546	$	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)

Nine Months Ending

September 30, 2002

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	196,473	60,354	$	256,827
Other Income		15,936	4,895		20,831
Interest income		2,975	276		3,251
		-----------	-----------		-----------
Total Revenue		215,384	65,525		280,909
		-----------	-----------		-----------

Costs and Expenses:
Production expense		91,594	28,137		119,731
General and administrative to a related
Party		57,834	17,766		75,600
General and administrative		10,796	3,317		14,113
Depreciation, depletion and
Amortization		45,745	4,250		49,995
		-----------	-----------		-----------
Total Costs and Expenses		205,969	53,470		259,439
		-----------	-----------		-----------
Net Income	$	9,415	12,055	$	21,470
		=======	=======		=======
Net Income per equity unit	$	.85
		=======

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)

Nine Months Ending

September 30, 2001

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	345,407	106,105	$	451,512
Interest income		6,654	618		7,272
		-----------	-----------		-----------
Total Revenue		352,061	106,723		458,784
		-----------	-----------		-----------

Costs and Expenses:
Production expense		138,726	42,615		181,341
General and administrative to a related
Party		57,834	17,766		75,600
General and administrative		10,104	3,104		13,208
Depreciation, depletion and
Amortization		48,056	4,464		52,520
		-----------	-----------		-----------
Total Costs and Expenses		254,720	67,949		322,669
		-----------	-----------		-----------
Net Income (Loss)	$	97,341	38,774	$	136,115
		=======	=======		=======
Net Income (Loss) per equity unit	$	8.79
		=======

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

September 30, 2002

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	76,956	23,640	$	100,596
Other Income		2,837	871		3,708
Interest income		762	70		832
		-----------	-----------		-----------
Total Revenue		80,555	24,581		105,136
		-----------	-----------		-----------

Costs and Expenses:
Production expense		35,792	10,995		46,787
General and administrative to a related
Party		19,278	5,922		25,200
General and administrative		2,324	714		3,038
Depreciation, depletion and
amortization		15,248	1,417		16,665
		-----------	-----------		-----------
Total Costs and Expenses		72,642	19,048		91,690
		-----------	-----------		-----------
Net Income	$	7,913	5,533	$	13,446
		=======	=======		=======
Net Income per equity unit	$	.71
		=======

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

September 30, 2001

		Limited Partners	General Partners		Total
Revenue:
Operating Revenue		116,514	35,792	$	152,306
Interest income		1,518	141		1,659
		-----------	-----------		-----------
Total Revenue		118,032	35,933		153,965
		-----------	-----------		-----------

Costs and Expenses:
Production expense		40,055	12,304		52,359
General and administrative to a related
Party		19,278	5,922		25,200
General and administrative		3,984	1,224		5,208
Depreciation, depletion and
Amortization		16,018	1,488		17,506
		-----------	-----------		-----------
Total Costs and Expenses		79,335	20,938		100,273
		-----------	-----------		-----------
Net Income(Loss)	$	38,697	14,995	$	53,692
		=======	=======		=======
Net Income(Loss) per equity unit	$	3.49
		=======

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)

Nine Months Ending

September 30, 2002

		Limited Partners	General Partners		Total

Balance at beginning of period	$	1,499,047	76,343	$	1,575,390
Partner' s contributions		0	483		483
Cash Distributions		(110,770)	(34,027)		(144,797)
Net Income		9,415	12,055		21,470
		------------	------------		------------
Balance at end of period	$	1,397,692	54,854	$	1,452,546
		=======	=======		=======

Nine Months Ending
September 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)		97,341	38,774		136,115
		------------	------------		------------
Balance at end of period	$	1,463,657	62,223	$	1,525,880
		=======	========		========

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

September 30, 2002

		Limited Partners	General Partners		Total

Balance at beginning of period	$	1,389,779	48,838	$	1,438,617
Partner's contributions		0	483		483
Net Income		7,913	5,533		13,446
		-------------	-------------		-------------
Balance at end of period	$	1,397,692	54,854	$	1,452,546
		========	========		========

Three Months Ending

September 30,2001

		Limited Partners	General Partners		Total

Balance at beginning of period	$	1,424,960	47,228	$	1,472,188
Partners' contributions		0	0			0
Net Income(Loss)		38,697	14,995			53,692
		-------------	-------------		-------------
Balance at end of period	$	1,463,657	62,223	$	1,525,880
		========	========		========

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)

		Nine months Ended September 30, 2002		Nine months Ended September 30, 2001

Net cash provided by (used in) operating activities	$	83,848	$	178,801
		-----------		-----------

Cash flows from financing activities:
Distribution to partners		(144,797)		(142,660)
Partners contribution		483		475
		-----------		-----------
Net cash used in financing activities		(144,314)		(142,185)
		-----------		-----------

Net increase(decrease) in cash and cash equivalents		(60,466)		36,616
Cash and cash equivalents at beginning of period		318,796		198,847
		-----------		-----------
Cash and cash equivalents at end of period	$	258,330	$	235,463
		=======		=======

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

September 30, 2002

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

STERLING DRILLING FUND 1983-1 10-Q