<page> 1

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~~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 2-84452-01

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 / /

<page> 2

PART I

Item 1. Financial Statements

The following Financial Statements are filed herewith:

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

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

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

Statements of Cash Flows for the ~~Six~~Nine Months Ended ~~June~~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 June 30, 2001, the General Partners have distributed $12,~~828~~142,~~700~~640.50 or 1113.65% 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.

<page> 3

~~The~~subsequent ~~present~~to ~~value~~December of31, ~~unescalated~~2000 ~~future~~and ~~net~~2001 ~~revenues~~were (Snot considered.~~E.C.~~ ~~case)~~The ~~associated~~spot ~~with~~price ~~such~~for ~~reserves,~~gas ~~discounted~~ at ~~10% as of~~ December 31, ~~2001,~~2000 was ~~approximately~~ $~~1,476,995~~9.23 asper ~~compared~~MMBTU. toThe ~~the~~range ~~discounted~~of ~~reserves~~spot asprices ~~of December~~during ~~31,~~the year 2000, ~~which~~was ~~were~~a ~~approximately~~low of $~~7,413,300~~2. ~~While~~14 itand ~~may~~a ~~reasonably~~high beof ~~anticipated~~$10.50 ~~that~~and the ~~prices~~average ~~received~~was by$4.28. ~~Sterling~~The ~~Drilling~~spot ~~Fund~~price ~~1983-2~~ for ~~the~~gas ~~sale~~at ofDecember ~~its~~31, ~~production~~2001 ~~may~~was be$2.63 ~~higher~~per orMMBTU. ~~lower~~The ~~than~~range ~~the~~of spot prices ~~used~~during inthe ~~this~~year ~~evaluation, as~~2001 ~~described~~was ~~above,~~a ~~and~~low ~~the~~of ~~operating~~$1.77 ~~costs~~and ~~relating~~a tohigh ~~such~~of ~~production~~$10.29 ~~may~~and ~~also~~the ~~increase~~average orwas ~~decrease~~$3.94. ~~from~~. ~~existing~~The ~~levels,~~range ~~such~~during ~~possible~~the ~~changes~~first innine ~~prices~~months ~~and~~of ~~costs~~2002 ~~were,~~has inbeen ~~accordance~~from $1.98 to $4.10 with ~~rules~~an ~~adopted~~average byof ~~the~~$3.18. ~~SEC,~~The ~~omitted~~recent ~~from~~futures ~~consideration~~market inprices ~~making~~have ~~this~~been ~~evaluation~~in ~~for~~ the ~~SEC~~$3.94 ~~case~~range. ~~Actual~~ ~~volumes~~The ~~produced,~~Partnership ~~prices~~actually received ~~and~~an ~~costs~~average ~~incurred~~price byfor ~~the~~gas ~~Partnership~~sold ~~may~~of ~~vary~~$3.35 ~~significantly~~during ~~from~~ the ~~SEC~~first ~~case~~nine months of 2002.

~~Capital~~The ~~Resources~~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~~slight declines in both its gas and oil production, from 73106,~~136~~493 MCF and ~~985~~1,355 BBLS in 2001 to 6296,~~634~~259 MCF and ~~815~~1,117- BBLS in 2002. The average price per MCF received for gas sold was $5.8152 in 2001 and $3.1835 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~~gas ~~per~~prices ~~MCF~~and orslight ~~per~~reductions ~~barrel~~in oil and gas ~~lower~~ production ~~sold~~ resulted in ~~reduced~~ an decrease in operating revenue from $~~449~~620,~~651~~657 in 2001 to $~~214~~344,~~387~~773 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.

<~~Page~~page>4 4

~~The~~Partners ~~Partnership's~~elected ~~other~~to ~~income~~sell is a ~~result~~substantial portion of the gas delivered under this contract from June 2002 through October 2002 at a ~~cash~~fixed ~~bonus~~price ~~paid~~of $3.57 per MMBTU subject to transportation costs. The operator determined that supplementary repairs were necessary to maintain various wells production. These repairs include well treatments, miscellaneous part replacements, location work, labor and roadwork to access the ~~Partnership~~well ~~under~~site. These workover expenses totaled $31,693.82 included in the ~~farmout~~current ~~agreement~~quarters lease operating total. Overall production costs decreased slightly from $236,773 ~~previously~~in ~~discussed~~2001 to $230,642 in 2002.

~~Management~~The ~~continues~~Partnership's toother ~~minimize~~income ~~third~~is ~~party~~a ~~costs~~result ~~and~~of ~~use~~a ~~in-house~~cash ~~resources~~bonus paid to ~~provide~~the ~~efficient~~Partnership ~~and~~under ~~timely~~a ~~services~~farmout ~~to the Partnership~~agreement. The ~~related~~farmout ~~party~~agreement ~~general~~allows ~~and~~a ~~administrative~~third ~~expenses~~party ~~are~~the ~~charged~~right into ~~accordance~~drill ~~with~~a ~~guidelines~~deep ~~set~~well ~~forth~~on inleasehold ~~the~~acerage ~~Registrant's~~owned ~~Management~~by ~~Agreement~~the ~~and~~Partnership. ~~are~~If ~~attributable to~~ the ~~affairs~~third ~~and~~party ~~operations~~exercises oftheir rights the Partnership ~~and~~could ~~shall~~receive ~~not~~an ~~exceed~~overriding anroyalty ~~annual~~interest. The amount ~~equal to 5%~~ of the ~~Limited~~cash ~~Partners'~~bonus ~~capital~~paid ~~contributions. Amounts related~~ to ~~both 2001 and 2002 are substantially less than~~ the ~~amounts allocable to the Registrant under the~~ Partnership ~~Agreement~~is $28,523.

~~The~~Management ~~Partnership~~continues ~~records~~to ~~additional~~minimize ~~depreciation,~~third ~~depletion~~party costs and ~~amortization~~use in-house resources to provide efficient and timely services to the ~~extent~~Partnership. The ~~that~~related ~~net~~party ~~capitalized~~general ~~costs~~and ~~exceed~~administrative expenses are charged in accordance with guidelines set forth in the ~~undiscounted~~Registrant's ~~future~~Management ~~net~~Agreement ~~cash~~and ~~flows~~are attributable to the ~~Partnership~~affairs ~~properties.~~and ~~The~~operations of the Partnership ~~was~~and shall not ~~required~~exceed an annual amount equal to ~~revise~~5% of the ~~property~~Limited ~~basis~~Partners incapital ~~2001~~contributions. orAmounts ~~during~~related ~~the~~to ~~first~~both ~~half~~2001 ofand 2002~~. The~~ ~~current~~are ~~depreciation~~substantially ~~was~~less ~~reasonable~~than ~~based~~the ~~upon~~amounts ~~the~~allocable ~~remaining~~to ~~basis~~the inRegistrant under the Partnership ~~properties~~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 properties basis in 2001 or during the first nine months 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.

<~~Page~~page> 5

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, JRJr General Partner ~~August~~November 98, 2002 (Date)

<~~Page~~page> 6

STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Balance Sheets

		June 30, 2002		December 31, 2001
		September 30, 2002		December 31, 2001
		(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	~~104~~116,~~428~~558	$	385,775
Due from affiliates		2241,~~023~~033		25,732
Due from others		0		0
		-------------		-------------
		--------------		-----------------
Total current assets		157,591		411,507
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
less accumulated depreciation, depletion and
Amortization		(12,~~506~~523,~~623~~059)		(12,473,750)
		---------------		-----------------
		1,062,883		1,095,756
		1,046,447		1,095,756
		---------------		-----------------
Total Assets	$	1,189,334	$	1,507,263
Total assets	$	1,204,038	$	1,507,263
		=========		==========
Partners' equity
Limited partners	$	1,~~165~~173,~~651~~963	$	1,413,464
General partners		2330,~~683~~075		93,799
		---------------		-----------------
Total Partners' Equity	$	1,189,334	$	1,507,263
Total partners' equity	$	1,204,038	$	1,507,263
		=========		=========

See accompanying note to financial statements.

<~~Page~~page> 7

STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Operations

(unaudited)

~~Six~~Nine Months Ending ~~June~~September 30, 2002

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	~~164~~263,~~006~~751	5081,~~381~~022	$	~~214~~344,~~387~~773
Other Income		18,050	5,545		23,595
Interest income		2,359	219		2,578
Interest income		2,036	189		2,225
Other income		21,820	6,703		28,523
		-----------	-----------		-----------
Total Revenue		~~184~~287,~~092~~930	5687,~~115~~944		~~240~~375,~~207~~874
		-----------	-----------		-----------
Costs and Expenses:
Production expense		~~117~~176,~~745~~441	3654,~~170~~201		~~153~~230,~~915~~642
General and administrative to a related party		3857,~~556~~834	1117,~~844~~766		5075,~~400~~600
General and administrative		1012,~~070~~583	3,~~094~~865		1316,~~164~~448
Depreciation, depletion and amortization		3045,~~079~~118	24,~~794~~191		3249,~~873~~309
		-----------	-----------		-----------
Total Costs and Expenses		~~196~~291,~~450~~976	5380,~~902~~023		~~250~~371,~~352~~999
		-----------	-----------		-----------
Net Income/(Loss)	$	(12,358)	2,213	$	(10,145)
Net Income	$	(4,046)	7,921	$	3,875
		=======	=======		=======
Net Income/(Loss) per equity unit	$	(.79)
Net Income per equity unit	$	(.26)
		=======

See accompanying note to financial statements.

<page> 8

STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Operations

(unaudited)

~~Six~~Nine Months Ending ~~June~~September 30, 2001

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	~~343~~474,~~983~~803	~~105~~145,~~668~~854	$	~~449~~620,~~651~~657
Interest income		5,453	507		5,960
Other Income		14,947	1,388		16,335
Interest income		3,830	356		4,186
		-----------	-----------		-----------
Total Revenue		~~362~~495,~~760~~203	~~107~~147,~~412~~749		~~470~~642,~~172~~952
		-----------	-----------		-----------
Costs and Expenses:
Production expense		~~140~~219,~~078~~189	4367,~~031~~332		~~183~~286,~~109~~521
General and administrative to a related party		3857,~~556~~834	1117,~~844~~766		5075,~~400~~600
General and administrative		610,~~284~~596	13,~~931~~255		813,~~215~~851
Depreciation, depletion and amortization		3046,~~823~~233	24,~~863~~295		3350,~~686~~528
		-----------	-----------		-----------
Total Costs and Expenses		~~215~~333,~~741~~852	5992,~~669~~648		~~275~~426,~~410~~500
		-----------	-----------		-----------
Net Income/(Loss)	$	147,019	47,743	$	194,762
Net Income/	$	161,351	55,101	$	216,452
		=======	=======		=======
Net Income/(Loss) per equity unit	$	9.37
Net Income per equity unit	$	10.28
		=======

See accompanying note to financial statements.

<page> 9

STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Three Months Ending ~~June~~September 30, 2002

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	9899,~~815~~745	30,~~355~~641	$	~~129~~130,~~170~~386
Other income		0	0		0
Interest income		323	30		353
Interest income		692	64		756
Other Income		3,770	1,158		4,928
		----------	---------		---------
		---------	--------		--------
Total Revenue		99103,~~507~~838	3031,~~419~~829		~~129~~135,~~926~~667
		----------	---------		---------
		---------	--------		--------
Costs and Expenses:
Production expense		6558,~~533~~696	2018,~~131~~031		8576,~~664~~727
General and administrative to a related party		19,278	5,922		25,200
General and administrative		62,~~669~~513	~~2,049~~771		83,~~718~~284
Depreciation, depletion and amortization		15,039	1,397		16,436
		----------	---------		---------
		---------	--------		--------
Total Costs and Expenses		~~106~~95,~~519~~526	2926,~~499~~121		~~136~~121,~~018~~647
		----------	---------		---------
		---------	--------		--------
Net Income/(Loss)	$	(7,012)	920	$	(6,092)
Net Income	$	8,312	5,708	$	14,020
		=======	=======		=======
Net Income/(Loss) per equity unit	$	(.45)
Net Income per equity unit	$	.53
		=======

See accompanying note to the financial statements.

<page> 10

STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Three Months Ending ~~June~~September 30, 2001

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	~~154~~130,~~655~~820	4740,~~508~~186	$	~~202~~171,~~163~~006
Other Income		14,947	1,388		16,335
Interest income		1,623	151		1,774
Interest income		2,217	(139)		2,078
		---------	--------		--------
		----------	---------		---------
Total Revenue		132,443	40,337		172,780
Total Revenue		171,819	48,757		220,576
		---------	--------		--------
		----------	---------		---------
Costs and Expenses:
Production expense		6579,~~409~~110	2024,~~093~~302		85103,~~502~~412
General and administrative to a related party		19,278	5,922		25,200
General and administrative		24,~~572~~312	~~791~~1,324		35,~~363~~636
Depreciation, depletion and amortization		15,~~412~~411	1,431		16,~~843~~842
		----------	---------		---------
		---------	--------		--------
Total Costs and Expenses		~~102~~118,~~671~~111	2832,~~237~~979		~~130~~151,~~908~~090
		----------	---------		---------
		---------	--------		--------
Net Income/(Loss)	$	69,148	20,520	$	89,668
Net Income	$	14,332	7,358	$	21,690
		=======	=======		=======
Net Income/(Loss) per equity unit	$	4.41
Net Income per equity unit	$	.91
		======

See accompanying note to the financial statements.

<page> 11

STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

~~Six~~Nine Months ~~Ended~~Ending ~~June~~September 30, 2002

		Limited Partners	General Partners	~~General Partners~~	Total		~~Total~~
Balance at beginning of period	$	1,413,464	93,799	~~93,799~~$	$1,507,263		~~1,507,263~~
Partners' Contributions		0		0			0
Partner's Contributions		0	684		684
Cash Distributions		(235,455)	(72,329)	~~(72,329)~~	(307,784)		~~(307,784)~~
Net Income(Loss)		(12,358)		2,213			(10,145)
Net Income		(4,046)	7,921		3,875
		-------------		-------------			-------------
		------------	-----------		-----------
Balance at end of period	$	1,~~165~~173,~~651~~963	30,075	~~23,683~~$	1,204,038	$	~~1,189,334~~
		========		========			=========
		=======	=======		=======

~~Six~~Nine Months ~~Ended~~Ending ~~June~~September 30, 2001

		Limited Partners	General Partners		~~General Partners~~	Total		~~Total~~
Balance at beginning of period	$	1,281,564	39,574	$	~~39,574~~	$1,321,138		~~1,321,138~~
Partners' Contributions		0			225			225
Partner's Contributions		0	225			225
Cash Distributions		(78,485)	(22,835)		~~(22,835)~~	(101,320)		~~(101,320)~~
Net Income(Loss)		147,019			47,743			194,762
Net Income		161,351	55,101			216,452
		-------------			-------------			-------------
		------------	-----------			-----------
Balance at end of period	$	1,~~350~~364,~~098~~430	72,065		~~64,707~~$	1,436,495	$	~~1,414,805~~
		========			========			=========
		=======	=======			========

See accompanying note to the financial statements.

<page> 12

STERLING DRILLING FUND 1983-2

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

Three Months ~~Ended~~Ending ~~June~~September 30, 2002

		Limited Partners	General Partners		~~General Partners~~Total		~~Total~~
Balance at beginning of period	$	1,~~408~~165,~~118~~651	23,683	$	951,~~092~~189,334	$	~~1,503,210~~
Partners' Contributions		0			0		0
Partners' Contribution		0	684		684
Cash Distributions		(235,455)			(72,329)		(307,784)
Net Income		8,312	5,708		14,020
Net Income(Loss)		(7,012)			920		(6,092)
		------------	------------		------------
		-------------			-------------		-------------
Balance at end of period	$	1,173,963	30,075	$	1,204,038
Balance at end of period	$	1,165,651			23,683	$	1,189,334
		=======	=======		=======
		========			========		========

Three Months ~~Ended~~Ending ~~June~~September 30, 2001

		Limited Partners	General Partners		~~General Partners~~Total		~~Total~~
Balance at beginning of period	$	1,~~359~~350,~~435~~098	64,707	$	661,~~797~~414,805	$	~~1,426,232~~
Partners' Contributions		0			225		225
Partners' Contribution
Cash Distributions		(78,485)			(22,835)		(101,320)
Net Income		14,332	7,358		21,690
Net Income(Loss)		69,148			20,520		89,668
		------------	------------		------------
		-------------			-------------		-------------
Balance at end of period	$	1,364,430	72,065	$	1,436,495
Balance at end of period	$	1,350,098			64,707	$	1,414,805
		=======	=======		=======
		========			========		========

See accompanying note to the financial statements.

<page> 13

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
		Nine months Ended September 30, 2002		Nine months Ended September 30, 2001
Net cash provided by operating activities	$	26,437	$	159,196
Net cash provided by(used in) operating activities	$	37,883	$	214,934
		----------		----------
Cash flows from financing activities:
Partners' contributions		0		225
Partners contributions		684		225
Distribution to partners		(307,784)		(101,320)
		----------		----------
Net cash used in financing activities		(307,~~784~~100)		(101,095)
		----------		----------
Cash flows from investing activities:
Investments in wells and well		0		0
Related facilities		0		~~(49,748)~~0
		----------		----------
Net cash used by investing activities		0		(49,748)
		0		0
Net cash (used by) investing activities
		----------		----------
Net increase (decrease) in cash and cash equivalents		(~~281~~269,~~347~~217)		8113,~~353~~839
Cash and cash equivalents at beginning of period		385,775		154,612
		----------		----------
Cash and cash equivalents at end of period	$	~~104~~116,~~428~~558	$	~~162~~268,~~965~~451
		======		======

See accompanying note to financial statements.

<page> 14

STERLING DRILLING FUND 1983-2

(a New York limited partnership)

Note to Financial Statements

~~June~~September 30, 2002

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

Filing Compare · STERLING DRILLING FUND 1983-2