<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, 2001

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

For the Transition Period Ended ________________________

Commission File Number 2-91966-01

STERLING DRILLING FUND 1984-1

(Exact name of registrant as specified in charter)

New York

(State or other jurisdiction of incorporation)

13-3234373

(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, 2001 and December 31, 2000.

Statements of Operations for the ~~Six~~Nine and Three Months Ended ~~June~~September 30, 2001 and 2000.

Statements of Changes in Partners' Equity for the ~~Six~~Nine and Three Months Ended ~~June~~September 30, 2001 and 2000.

Statements of Cash Flows for the ~~Six~~Nine Months Ended ~~June~~September 30, 2001 and 2000.

Note to Financial Statements

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~~September 30, 2001, the General Partners have distributed $1,777,930 or 19.25% 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. The present value of unescalated future net revenues (S.E.C. case) associated with such reserves, discounted at 10% as of December 31, 2000, was approximately $4,709,200, as compared to $897,400 as of December 31, 1999. 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, 2000 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 were not considered. The spot price for gas at

<page> 3

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 ~~Partnership actually~~range ~~received an average price for gas sold of $5.92~~ during the first ~~six~~nine months of 2001~~. While~~ ithas ~~may~~been ~~reasonably~~from be$1.82 to ~~anticipated~~$10.69 with ~~that~~an ~~the~~average ~~prices~~of ~~received~~$4.47. byThe ~~Sterling~~three ~~Drilling~~month average ~~Fund~~from ~~1984-1~~July ~~for~~to ~~the~~September ~~sale~~2001 ofwas ~~its~~$2.73. ~~production~~The ~~may~~Partnership beactually ~~higher~~received oran ~~lower~~average ~~than~~price ~~the~~for ~~prices~~gas ~~used~~sold inof ~~this~~$5.78 ~~evaluation, as~~during ~~described~~the ~~above,~~first ~~and~~nine ~~the~~months ~~operating~~of ~~costs~~2001. ~~relating~~The tomajority of ~~such~~the ~~production~~Partnership's ~~may~~gas ~~also~~revenue ~~increase~~is orsold ~~decrease~~under ~~from~~a ~~existing~~gas ~~levels,~~contract ~~such~~which started ~~possible~~December ~~changes~~1, in2000 ~~prices~~ and ~~costs~~will ~~were,~~end inNovember ~~accordance~~30, ~~with~~2001. ~~rules~~The ~~adopted~~Partnership bywill ~~the~~have ~~SEC,~~no ~~omitted~~problem ~~from~~selling ~~consideration~~its ingas ~~making~~after ~~this~~the ~~evaluation~~contract ~~for~~ends, but the ~~SEC~~gas ~~case. Actual volumes~~ produced, ~~prices~~will ~~received~~most ~~and~~likely ~~costs~~be ~~incurred~~sold byat a ~~the~~price ~~partnership~~that ~~may~~reflects ~~vary significantly from~~ the ~~SEC~~current ~~case~~market conditions.

While it may reasonably be anticipated that the prices received by Sterling Drilling Fund 1984-1 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 October 1984 for $7,750,000. Pursuant to the terms of this contract, thirty-two wells have been drilled, resulting in thirty-two producing wells.

During ~~May~~ 2001, PrimeEnergy Management negotiated a Farmout ~~Agreement~~Agreements with Eastern American Energy. (EAE) covering leasehold interests in ~~approximately 5,000 acres in Clay County,~~ West Virginia. Although acreage held by Sterling Drilling Fund 1984-1 was not included in the EAE Farmout ~~Agreement~~Agreements, PrimeEnergy Management may discuss the possibility of farming out deep rights held by the Partnership under the same terms with other parties, however, there is no guarantee that an agreement will be entered into.

3. Results of Operations -

The Partnership's gas ~~production~~and ~~increased while~~ oil production ~~declined slightly~~changed, from 3655,~~397~~498 MCF and 1,~~403~~811 BBLS in 2000 to 4265,~~346~~123 MCF and 1,~~131~~459 BBLS in 2001. The Partnership's average price per MCF and per barrel increased from $3.30 per MCF and $2223.1769 per barrel in 2000 to $5.9283 per MCF and $2423.2278 per barrel. The combination of ~~both~~higher ~~increased~~average ~~prices~~oil and ~~relatively~~gas ~~stable~~prices, increased gas production and only a minor reduction in oil produced resulted in an overall operating revenue to change from $~~151~~226,~~124~~183 in 2000 to $~~278~~414,~~176~~360 in 2001. ~~. During~~The ~~late 2000 and the year 2001, the~~ operator determined that supplementary ~~capital~~ repairs were necessary to ~~help~~ maintain various well's production. These repairs include well treatments, miscellaneous part replacements, location work, labor and roadwork to access the well site. These workover expenses totaled $32,429.08 which was included in the current quarter's lease operating total. Production expenses increased ~~from~~ $89134,~~571~~419 in 2000 to $~~116~~163,~~684~~ 318 in 2001. ~~Production~~All ~~expenses,~~other ~~during~~operating ~~2000,~~costs were ~~limited~~related to normal maintenance and upkeep of the wells and well sites. The current production expenses were higher 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.

General and administrative expenses to a related party 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 2000 and 2001 are substantially less than the amounts allocable to the Registrant under the Partnership Agreement. Management continues to manage 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~~properties basis in 2000 or during the first ~~half~~nine months of 2001. The current depreciation was reasonable based upon the current remaining basis in the Partnership properties.

PART II

Items 1 to 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

The Partnership was not required to file any reports on Form 8-K during the period covered by this report.

<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 1984-1 (Registrant) By: /S/ Charles E. Drimal Jr. Charles E. Drimal, Jr. General Partner ~~August~~November 8, 2001 (Date)

<page>6

STERLING DRILLING FUND 1984-1

(a New York Limited Partnership)

Balance Sheets

		June 30, 2001		December 31, 2000
		September 30, 2001		December 31, 2000
		(unaudited)		(audited)
Assets
Current Assets:
Cash and cash equivalents	$	71136,~~591~~620	$	30,740
Due from affiliates		49,~~450~~043		31,827
Due from others		0		0
		--------------		--------------
		------------		------------
Total current assets		~~121~~185,~~041~~663		62,567
		--------------		--------------
		------------		------------
Oil and Gas properties -
successful efforts method:
Leasehold costs		323,260		323,260
Well and related facilities		7,~~745~~712,~~354~~699		7,712,699
less accumulated depreciation, depletion
and amortization		(7,~~138~~150,~~188~~026)		(7,114,511)
		--------------		--------------
		-------------		-------------
		930,426		921,448
		885,933		921,448
		--------------		--------------
		-------------		-------------
Total assets	$	1,~~051~~071,~~467~~596	$	984,015
		========		========
Liabilities and Partner's Equity
Current Liabilities:
Due to affiliates	$	0	$	0
		--------------		--------------
		------------		------------
Total current liabilities		0		0
		--------------		--------------
		------------		------------
Partner's Equity
Limited partners		1,~~017~~031,~~503~~764		972,730
General partners		3339,~~964~~832		11,285
		--------------		--------------
		------------		------------
Total partners' equity		1,~~051~~071,~~467~~596		984,015
		--------------		--------------
		------------		------------
Total liabilities and partner's equity	$	1,~~051~~071,~~467~~596	$	984,015
		========		========
		=======		=======

See accompanying note to financial statements.

<page>7

STERLING DRILLING FUND 1984-1

(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	$	~~219~~327,~~759~~344	5887,~~417~~016	$	~~278~~414,~~176~~360
Interest income		1,~~127~~984	72127		12,~~199~~111
		----------	----------		----------
Total Revenue		~~220~~329,~~886~~328	5887,~~489~~143		~~279~~416,~~375~~471
		----------	----------		----------
Costs and Expenses:
Production expense		92154,~~180~~819	2441,~~504~~154		~~116~~195,~~684~~973
General and administrative to a related party		3349,~~180~~770	813,~~820~~230		4263,000
General and administrative		59,~~408~~231	12,~~438~~454		611,~~846~~685
Depreciation, depletion and amortization		2233,~~255~~384	12,~~421~~131		2335,~~676~~515
		----------	----------		----------
Total Costs and Expenses		~~153~~247,~~023~~204	3658,~~183~~969		~~189~~306,~~206~~173
		----------	----------		----------
Net Income (Loss)	$	67,863	22,306	$	90,169
Net Income	$	82,124	28,174	$	110,298
		======	======		======
Net Income (Loss) per equity unit	$	7.35
Net Income per equity unit	$	8.89
		=====
		======

See accompanying note to financial statements.

<page> 8

STERLING DRILLING FUND 1984-1

(a New York Limited Partnership)

Statement of Operations

(unaudited)

~~Six~~Nine Months Ending ~~June~~September 30, 2000

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	~~119~~178,~~388~~685	3147,~~736~~498	$	~~151~~226,~~124~~183
Other revenue		0	0		0
Interest income		1,597	102		1,699
Interest income		1,465	94		1,559
		----------	----------		----------
Total Revenue		~~120~~180,~~853~~282	3147,~~830~~600		~~152~~227,~~683~~882
		----------	----------		----------
Costs and Expenses:
Production expense		70106,~~761~~191	1828,~~810~~228		89134,~~571~~419
General and administrative to a related party		2335,~~700~~550	69,~~300~~450		3045,000
General and administrative		1011,~~419~~168	2,~~770~~969		1314,~~189~~137
Depreciation, depletion and amortization		2436,~~245~~368	12,~~548~~321		2538,~~793~~689
		----------	----------		----------
Total Costs and Expenses		~~129~~189,~~125~~277	2942,~~428~~968		~~158~~232,~~553~~245
		----------	----------		----------
Net Income	$	(8,~~272~~995)	24,~~402~~632	$	(54,~~870~~363)
		=======	======		=======
		======	======		======
Net Income per equity unit	$	(0.9097)
		======
		========

See accompanying note to financial statements.

<page> 9

STERLING DRILLING FUND 1984-1

(a New York Limited Partnership)

Statement of Operations

(unaudited)

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

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	~~110~~107,~~212~~585	2928,~~297~~599	$	~~139~~136,~~509~~184
Interest income		~~767~~857	~~(24)~~55		~~743~~912
		----------	----------		----------
Total Revenue		~~110~~108,~~979~~442	2928,~~273~~654		~~140~~137,~~252~~096
		----------	----------		----------
Costs and Expenses:
Production expense		3962,~~546~~639	1016,~~513~~650		5079,~~059~~289
General and administrative to a related party		16,590	4,410		21,000
General and administrative		23,~~216~~823	~~590~~1,016		24,~~806~~839
Depreciation, depletion and amortization		11,~~127~~129	~~711~~710		11,~~838~~839
		----------	----------		----------
Total Costs and Expenses		6994,~~479~~181	1622,~~224~~786		85116,~~703~~967
		----------	----------		----------
Net Income (Loss)	$	41,500	13,049	$	54,549
Net Income	$	14,261	5,868	$	20,129
		======	======		======
Net Income (Loss) per equity unit	$	2.89
Net Income per equity unit	$	1.54
		======

See accompanying note to financial statements.

<page> 10

STERLING DRILLING FUND 1984-1

(a New York Limited Partnership)

Statement of Operations

(unaudited)

Three Months Ending ~~June~~September 30, 2000

		Limited Partners	General Partners		Total
Revenue:
Operating revenue	$	6059,~~087~~297	15,~~973~~762	$	7675,~~060~~059
Other revenue		0	0		0
Interest income		132	8		140
Interest income		681	44		725
		----------	----------		----------
		-----------	-----------		-----------
Total Revenue		59,429	15,770		75,199
Total Revenue		60,768	16,017		76,785
		----------	----------		----------
		-----------	-----------		-----------
Costs and Expenses:
Production expense		3135,~~758~~430	89,~~442~~418		4044,~~200~~848
General and administrative to a related party		11,850	3,150		15,000
General and administrative		~~6,531~~749	~~1,737~~199		~~8,268~~948
Depreciation, depletion and amortization		12,~~122~~123	~~774~~773		12,896
		-----------	-----------		-----------
		----------	----------		----------
Total Costs and Expenses		6260,~~261~~152	1413,~~103~~540		7673,~~364~~692
		-----------	-----------		-----------
		----------	----------		----------
Net Income(loss)	$	(~~1,493~~723)	12,~~914~~230	$	~~421~~1,507
		=======	=======		=======
		======	======		======
Net Income(loss) per equity unit	$	(0.1607)
		=======

See accompanying note to financial statements.

<page> 11

STERLING DRILLING FUND 1984-1

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

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

		Limited Partners	General Partners	~~General Partners~~	Total		~~Total~~
Balance at beginning of period	$	972,730	11,285	~~11,285~~$	984,015	$	~~984,015~~
Partner's Contribution		0	6,190	~~6,190~~	6,190		~~6,190~~
Cash Distributions		(23,090)	(5,817)	~~(5,817)~~	(28,907)		~~(28,907)~~
Net Income (Loss)		67,863		22,306			90,169
Net Income		82,124	28,174		110,298
		-----------	-------------	~~-------------~~	------------		~~------------~~
Balance at end of period	$	1,~~017~~031,~~503~~764	39,832	~~33,964~~$	1,071,596	$	~~1,051,467~~
		=======	=======	~~=======~~	=======		~~=======~~

~~Six~~Nine Months Ended ~~June~~September 30, 2000

		Limited Partners	General Partners	~~General Partners~~	Total	~~Total~~
Balance at beginning of period	$	978,629	(530)	~~(530)~~$	$978,099	~~978,099~~
Partner's Contribution		0	3,576	~~1,717~~	3,576	~~1,717~~
Cash Distributions		(23,090)	(5,823)	~~(5,823)~~	(28,913)	~~(28,913)~~
Net Income		(8,272)		2,402		(5,870)
Net Income (loss)		(8,995)	4,632		(4,363)
		-----------	-----------	~~------------~~	-----------	~~-----------~~
Balance at end of period	$	~~947~~946,~~267~~544	1,855	~~(2,234)~~$	$948,399	~~945,033~~
		=======	=======	~~=======~~	=======	~~=======~~

See accompanying note to financial statements.

<page> 12

STERLING DRILLING FUND 1984-1

(a New York Limited Partnership)

Statement of Changes in Partners' Equity

(unaudited)

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

		Limited Partners	General Partners	~~General Partners~~	Total		~~Total~~
Balance at beginning of period	$	~~999~~1,~~093~~017,503	33,964	~~21,475~~$	$1,051,467		~~1,020,568~~
Partner's Contribution		0	0	~~5,257~~	0		~~5,257~~
Cash Distributions		(23,090)		(5,817)			(28,907)
Net Income		14,261	5,868		20,129
Net Income (Loss)		41,500		13,049			54,549
		-----------	-----------		------------
		----------		----------			------------
Balance at end of period	$	1,031,764	39,832	$	1,071,596
Balance at end of period	$	1,017,503		33,964		$	1,051,467
		=======	=======		=======
		======		======			========

Three Months Ended ~~June~~September 30, 2000

		Limited Partners	General Partners	~~General Partners~~	Total	~~Total~~
Balance at beginning of period	$	~~971~~947,~~850~~267	(2,234)	~~584~~$	$945,033	~~972,434~~
Partner's Contribution		0	1,859	~~1,091~~	1,859	~~1,091~~
Cash Distributions		(23,090)		(5,823)		(28,913)
Net Income(loss)		(723)	2,230		1,507
Net Income		(1,493)		1,914		421
		----------	----------		----------
		------------		------------		--------------
Balance at end of period	$	946,544	1,855	$	948,399
Balance at end of period	$	947,267		(2,234)	$	945,033
		======	======		======
		=======		=======		========

See accompanying note to financial statements.

<page> 13

STERLING DRILLING FUND 1984-1

(a New York Limited Partnership)

Statement of Cash Flows

(unaudited)

		Six months Ended June 30, 2001			Six months Ended June 30, 2000
		Nine months Ended September 30, 2001		Nine months Ended September 30, 2000
Net cash provided by (used in) operating activities	$	96128,~~222~~597	$	$50,167	~~44,957~~
		------------			-----------
		----------		----------
Cash flows from financing activities:
Partner's contributions		6,190		3,576	~~1,717~~
Distribution to partners		(28,907)		(28,913)	~~(28,913)~~
		------------			------------
		----------		----------
Net cash (used in) financing activities		(22,717)		(25,337)	~~(27,196)~~
		------------			------------
		----------		----------
Cash flows from investing activities:
Investments in wells and well related facilities		~~(32,654)~~0		(49,259)	~~(48,912)~~
		------------			------------
		----------		----------
Net cash (used by) investing activities		~~(32,654)~~0		(49,259)	~~(48,912)~~
		-----------			----------
		----------		---------
Net increase(decrease) in cash and cash equivalents		40105,~~851~~880		(24,429)	~~(31,151)~~
Cash and cash equivalents at beginning of period		30,740		41,313	~~41,313~~
		------------			-----------
		----------		----------
Cash and cash equivalents at end of period	$	71136,~~591~~620	$	16,884	~~10,162~~
		=======			======
		======		======

See accompanying note to financial statements.

<page> 14

STERLING DRILLING FUND 1984-1

(a New York limited partnership)

Note to Financial Statements

~~June~~September 30, 2001

1. The accompanying statements for the period ending ~~June~~September 30, 2001 are unaudited but reflect all adjustments necessary to present fairly the results of operations.

Filing Compare · STERLING DRILLING FUND 1984-1LP