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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 2-84452-01

STERLING DRILLING FUND 1983-2

(Exact name of registrant as specified in charter)

New York

(State or other jurisdiction of corporation or organization)

13-3167551

(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, 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, 2001, the General Partners have distributed $1,828,700.50 or 11.65% 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. Overall 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 revenues (S.E.C. case) associated with such reserves, discounted at 10% as of December 31, 2001, was approximately $1,476,995 as compared to the discounted reserves as of December 31, 2000, which were approximately $7,413,300. While it may reasonably be anticipated that the prices received by Sterling Drilling Fund 1983-2 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

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 1983 for $13,400,000. Pursuant to terms of this contract, fifty-two wells have been drilled resulting in fifty-one 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. Acerage held by Sterling Drilling Fund 1983-2 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.

Results of Operations

The Partnership experienced minor declines in its gas and oil production, from 73,136 MCF and 985 BBLS in 2001 to 62,634 MCF and 815 BBLS in 2002. The average price per MCF received for gas sold was $5.81 in 2001 and $3.18 in 2002. The production volume variations can be a result of changes in transportation line pressures, miscellaneous shut-ins for maintence and natural declines. The combination of lower average price per MCF or per barrel and lower production sold resulted in reduced operating revenue from $449,651 in 2001 to $214,387 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 Partner's 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 $2.63 as compared to the six months of 2002 when the average price increased over fivty-five cents per MCF. Production expenses decreased from $183,109 in 2001 to $153,915 in 2002. Production expenses, during 2001 and 2002, related to normal maintenance and upkeep of the wells and well sites. The current production expenses vary as a result of a combination of items, including variable costs associated with volume changes, repairs, and labor costs associated with the supplementary repairs and recompletions.

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

Management continues to minimize third party costs and use in-house resources to provide efficient and timely services to the Partnership. The related party general and administrative 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.

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 2001 or during the first half of 2002. The current depreciation was reasonable based upon the remaining basis in the Partnership properties.

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 1983-2

(Registrant)

By: /S/ Charles E. Drimal Jr.

------------------------------

Charles E. Drimal, JR

General Partner

August 9,2002

(Date)

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STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Balance Sheets

		June 30, 2002		December 31, 2001
		(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	104,428	$	385,775
Due from affiliates		22,023		25,732
Due from others		0		0
		--------------		-----------------
Total Current Assets		126,451		411,507
		--------------		-----------------
Oil and gas properties - successful efforts method
Leasehold costs		497,639		497,639
Well and related facilities		13,071,867		13,071,867
Less accumulated depreciation, depletion and
Amortization		(12,506,623)		(12,473,750)
		---------------		-----------------
		1,062,883		1,095,756
		---------------		-----------------
Total Assets	$	1,189,334	$	1,507,263
		=========		==========
Partners' equity
Limited partners	$	1,165,651	$	1,413,464
General partners		23,683		93,799
		---------------		-----------------
Total Partners' Equity	$	1,189,334	$	1,507,263
		=========		=========

See accompanying note to financial statements.

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STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Six Months Ending

June 30, 2002

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	164,006	50,381	$	214,387
Other Income		18,050	5,545		23,595
Interest income		2,036	189		2,225
		-----------	-----------		-----------
Total Revenue		184,092	56,115		240,207
		-----------	-----------		-----------

Costs and Expenses:
Production expense		117,745	36,170		153,915
General and administrative to a related party		38,556	11,844		50,400
General and administrative		10,070	3,094		13,164
Depreciation, depletion and amortization		30,079	2,794		32,873
		-----------	-----------		-----------
Total Costs and Expenses		196,450	53,902		250,352
		-----------	-----------		-----------
Net Income/(Loss)	$	(12,358)	2,213	$	(10,145)
		=======	=======		=======
Net Income/(Loss) per equity unit	$	(.79)
		=======

See accompanying note to financial statements.

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STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Six Months Ending

June 30, 2001

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	343,983	105,668	$	449,651
Other Income		14,947	1,388		16,335
Interest income		3,830	356		4,186
		-----------	-----------		-----------
Total Revenue		362,760	107,412		470,172
		-----------	-----------		-----------

Costs and Expenses:
Production expense		140,078	43,031		183,109
General and administrative to a related party		38,556	11,844		50,400
General and administrative		6,284	1,931		8,215
Depreciation, depletion and amortization		30,823	2,863		33,686
		-----------	-----------		-----------
Total Costs and Expenses		215,741	59,669		275,410
		-----------	-----------		-----------
Net Income/(Loss)	$	147,019	47,743	$	194,762
		=======	=======		=======
Net Income/(Loss) per equity unit	$	9.37
		=======

See accompanying note to financial statements.

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STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Three Months Ending

June 30, 2002

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	98,815	30,355	$	129,170
Other income		0	0		0
Interest income		692	64		756
		----------	---------		---------
Total Revenue		99,507	30,419		129,926
		----------	---------		---------

Costs and Expenses:
Production expense		65,533	20,131		85,664
General and administrative to a related party		19,278	5,922		25,200
General and administrative		6,669	2,049		8,718
Depreciation, depletion and amortization		15,039	1,397		16,436
		----------	---------		---------
Total Costs and Expenses		106,519	29,499		136,018
		----------	---------		---------
Net Income/(Loss)	$	(7,012)	920	$	(6,092)
		=======	=======		=======
Net Income/(Loss) per equity unit	$	(.45)
		=======

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Three Months Ending

June 30, 2001

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	154,655	47,508	$	202,163
Other Income		14,947	1,388		16,335
Interest income		2,217	(139)		2,078
		----------	---------		---------
Total Revenue		171,819	48,757		220,576
		----------	---------		---------

Costs and Expenses:
Production expense		65,409	20,093		85,502
General and administrative to a related party		19,278	5,922		25,200
General and administrative		2,572	791		3,363
Depreciation, depletion and amortization		15,412	1,431		16,843
		----------	---------		---------
Total Costs and Expenses		102,671	28,237		130,908
		----------	---------		---------
Net Income/(Loss)	$	69,148	20,520	$	89,668
		=======	=======		=======
Net Income/(Loss) per equity unit	$	4.41
		======

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

Six Months Ended

June 30, 2002

		Limited Partners	General Partners			Total

Balance at beginning of period	$	1,413,464	93,799	$		1,507,263
Partners' Contributions		0	0			0
Cash Distributions		(235,455)	(72,329)			(307,784)
Net Income(Loss)		(12,358)	2,213			(10,145)
		-------------	-------------			-------------
Balance at end of period	$	1,165,651	23,683		$	1,189,334
		========	========			=========

Six Months Ended

June 30, 2001

		Limited Partners	General Partners			Total

Balance at beginning of period	$	1,281,564	39,574	$		1,321,138
Partners' Contributions		0	225			225
Cash Distributions		(78,485)	(22,835)			(101,320)
Net Income(Loss)		147,019	47,743			194,762
		-------------	-------------			-------------
Balance at end of period	$	1,350,098	64,707		$	1,414,805
		========	========			=========

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

Three Months Ended

June 30, 2002

		Limited Partners	General Partners		Total

Balance at beginning of period	$	1,408,118	95,092	$	1,503,210
Partners' Contributions		0	0		0
Cash Distributions		(235,455)	(72,329)		(307,784)
Net Income(Loss)		(7,012)	920		(6,092)
		-------------	-------------		-------------
Balance at end of period	$	1,165,651	23,683	$	1,189,334
		========	========		========

Three Months Ended

June 30, 2001

		Limited Partners	General Partners		Total

Balance at beginning of period	$	1,359,435	66,797	$	1,426,232
Partners' Contributions		0	225		225
Cash Distributions		(78,485)	(22,835)		(101,320)
Net Income(Loss)		69,148	20,520		89,668
		-------------	-------------		-------------
Balance at end of period	$	1,350,098	64,707	$	1,414,805
		========	========		========

See accompanying note to the financial statements.

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STERLING DRILLING FUND 1983-2

(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 operating activities	$	26,437	$	159,196
		----------		----------

Cash flows from financing activities:
Partners' contributions		0		225
Distribution to partners		(307,784)		(101,320)
		----------		----------
Net cash used in financing activities		(307,784)		(101,095)
		----------		----------
Cash flows from investing activities:
Investments in wells and well		0		0
Related facilities		0		(49,748)
		----------		----------

Net cash used by investing activities		0		(49,748)
		----------		----------
Net increase (decrease) in cash and cash equivalents		(281,347)		8,353
Cash and cash equivalents at beginning of period		385,775		154,612
		----------		----------
Cash and cash equivalents at end of period	$	104,428	$	162,965
		======		======

See accompanying note to financial statements.

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STERLING DRILLING FUND 1983-2

(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 1983-2 10-Q