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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, 2003

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 / /

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Acts). Yes ___ NO /X/

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Sterling Drilling Fund 1983-1

Index to Form 10Q

Part I:

Item 1. Financial Statements

Balance Sheets - June 30, 2003 and December 31, 2002		3

Statements of Operations for the Six and Three Months Ended June 30, 2003 and 2002		4-7

Statements of Changes in Partners' Equity for the Six and Three Months Ended June 30, 2003 and 2002		8-9

Statements of Cash Flows for the Six Months Ended June 30, 2003 and 2002		10

Note to Financial Statements		11

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		12-14

Item 4. Controls and Procedures		15

Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K		16

Signature		17

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STERLING DRILLING FUND 1983-1

(a New York Limited Partnership)

Balance Sheets

		June 30, 2003		December 31, 2002
		(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	256,644	$	297,286
Due from affiliates		26,432		38,472
		----------------		------------------
Total current assets		283,076		353,758
		----------------		------------------
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		(8,147,832)		(8,113,017)
		----------------		------------------
Total Oil and Gas Properties		1,107,566		1,142,381
		----------------		------------------
Total assets	$	1,390,642	$	1,478,139
		==========		==========

Partners Equity
Partners equity:
Limited partners		1,339,302		1,411,475
General partners		51,340		66,664
		----------------		------------------
Total Partners Equity	$	1,390,642	$	1,478,139
		===========		===========

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, 2003

		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	162,165	$	49,816	$	211,981
Interest income		1,646		153		1,799
		-------------		-------------		-------------
Total Revenue		163,811		49,969		213,780
		-------------		-------------		-------------

Costs and Expenses:
Production expense		102,381		31,450		133,831
General and administrative to a related party		38,556		11,844		50,400
General and administrative		7,807		2,398		10,205
Depreciation, depletion and amortization		31,855		2,959		34,814
		-------------		-------------		-------------
Total Costs and Expenses		180,599		48,651		229,250
		-------------		-------------		-------------
Net Income (Loss)	$	(16,788)	$	1,318	$	(15,470)
		========		========		=======
Net Income (Loss) per equity unit	$	(1.52)
		========

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)

			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
Party		38,556			11,844		50,400
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	$	1,502			34,422	$	167,749
		========			========		=======
Net Income 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)

Three Months Ending

June 30, 2003

		Limited Partners		General Partners		Total
Revenue:
Operating revenue	$	74,735	$	22,959	$	97,694
Interest income		792		74		866
		-------------		-------------		-------------
Total Revenue		75,527		23,033		98,560
		-------------		-------------		-------------

Costs and Expenses:
Production expense		52,785		16,215		69,000
General and administrative to a related party		19,278		5,922		25,200
General and administrative		5,358		1,646		7,004
Depreciation, depletion and amortization		15,928		1,479		17,407
		-------------		-------------		-------------
Total Costs and Expenses		93,349		25,262		118,611
		-------------		-------------		-------------
Net Loss	$	(17,822)	$	(2,229)	$	(20,051)
		========		========		=========
Net Loss per equity unit	$	(1.61)
		========

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	$	5,760		$	4,825	$	10,585
		========			========		=========
Net Income 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 Changes in Partners Equity

(unaudited)

Six Months Ending

June 30, 2003

		Limited Partners			General Partners				Total

Balance at beginning of period	$	1,411,475		$	66,664		$		1,478,139
Partners Contributions		0			372				372
Distributions to partners		(55,385)			(17,014)				(72,399)
Net Income (Loss)		(16,788)			1,318				(15,470)
		-------------			-------------				-------------
Balance at end of period	$	1,339,302		$	51,340		$		1,390,642
		========			========				=========

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

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

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, 2003
		Limited Partners				General Partners				Total

Balance at beginning of period	$	1,412,509			$	70,583		$		1,483,092
Distributions to partners		(55,385)				(17,014)				(72,399)
Net Loss		(17,822)				(2,229)				(20,051)
		------------				------------				-------------
Balance at end of period	$	1,339,302			$	51,340		$		1,390,642
		========				========				========

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

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

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, 2003			Six months Ended June 30, 2002

Net cash provided by (used in) operating activities	$	(15,470)		$	69,794
		-------------			-------------
Cash flows from financing activities:
Distribution to partners		(72,399)			(144,797)
Partners contributions		372			0
		-------------			-------------
Net cash used in financing activities		(72,027)			(144,797)
		-------------			-------------

Net decrease in cash and cash equivalents		(40,642)			(75,003)
Cash and cash equivalents at beginning of period		297,286			318,796
		-------------			-------------
Cash and cash equivalents at end of period	$	256,644	$		243,793
		========			========

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, 2003

1. The accompanying statements for the period ending June 30, 2003 are unaudited but reflect all adjustments necessary to present fairly the results of operations.

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PART I

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 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, 2003, the General Partners have distributed $2,686,172.50 or 24.25% 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, 2002 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, 2001 and 2002 were not considered. The spot price for gas at December 31, 2002 was $4.58 per MMBTU. The range of spot prices during the year 2002 was a low of $1.98 and a high of $5.05 and the average was $3.38. 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 seven months of 2003 has been from $4.71 to $12.20 with an average of $5.88. The average recent futures market prices have been in the range of $4.71 to $5.16.

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, 2002, which were approximately $1,607,868. 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.

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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 Partnership's operating revenues increased from $156,231 in 2002 to $211,981 in 2003. This change was the result of increased pricing. The average price per MCF increased from $3.35 in 2002 to $5.00 in 2003. Gas and oil production changed from 43,759 MCF and 503 BBLS in 2002 to 40,709 MCF and 300 BBLS in 2003. The production volume variations can be a result of changes in transportation line pressures, miscellaneous shut-ins for maintenance and natural declines. In December 2002 the Partnership entered into a contract to sell approximately seventy-five percent of the amount of its gas sold under a fixed contract price subject to transportation cost. The remaining gas to be sold by the Partnership will be sold at current spot market prices. This combination allows the Partnership to sell its gas and avoid some of the more significant negative swings that could occur in the spot market. The production volume variations can be a result of changes in transportation line pressures, miscellaneous shut-ins for maintenance and natural declines.

Production expenses increased from $72,944 in 2002 to $133,831 in 2003. The production expenses include variable costs associated with volume and price changes, swab and paraffin treatments, repairs and labor costs at the wells and well sites locations. Production expenses, for both years, were for normal maintenance and general upkeep of the wells.

The Partnership did not receive any other income during the first six months of 2003 and any other income received in 2002 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

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amount equal to 5% of the Limited Partners capital contributions. Amounts related to both 2003 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 2002 or through the first half of 2003. There were no additional capitalized well-related expenditures during the first half of 2003.

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Item 4 Controls and Procedures

Under the supervision and with the participation of the Managing General Partner's management including the Managing General Partner's Chief Executive Officer and Chief Financial Officer, the Partnership has evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Exchange Act Rule 13a-14(c)) within 90 days of the filing date of this quarterly report, and, based on their evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective in all material respects, including those to ensure that information required to be disclosed in reports filed or submitted under the Securities Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the Commission's rules and forms, and is accumulated and communicated to management, including the Managing General Partner's Chief Executive Officer and Chief Financial Officer, as appropriate to allow for timely disclosure. There have been no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation.

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PART II Other Information

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 31.1 Chief Executive Officer certification under Section 302

of Sarbanes-Oxley Act of 2002.

(b) Exhibit 31.2 Chief Financial Officer certification under Section 302

of Sarbanes-Oxley Act of 2002.

Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002

(d) Exhibit 32.2: Certification Pursuant to 18 U.S.C. Section 1350, As Adopted

Pursuant To Section 906 Of The Sarbanes-Oxley Act of 2002

(e) 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

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 12, 2003

(Date)

STERLING DRILLING FUND 1983-1 10-Q