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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF FEBRUARY, 1999
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PETSEC ENERGY LTD
Level 13, 1 Alfred Street
Sydney, NSW 2000
Australia
(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F]
Form 20-F _X_ Form 40-F ___
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.]
Yes ___ No _X_
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PETSEC ENERGY LTD
(A.C.N. 000 602 700)
1 February 1999
PETSEC ENERGY CLOSES ASSET SALE WITH
APACHE CORPORATION
Sydney, Australia - Petsec Energy Ltd (ASX: PSA and NYSE: PSJ) today announced
that its wholly owned subsidiary, Petsec Energy Inc., completed the previously
announced sale of a one-half (50%) interest in certain of its properties to
Apache Corporation (NYSE: APA). The sale price was US$68.3 million cash. The
effective date of the transaction was 1 January 1999.
Average net daily production in 1998, specific to the interests sold, was 28.6
million cubic feet of gas and 3,219 barrels of oil.
The funds will be used to repay US$64 million of the existing bank credit
facility, reducing bank debt to US$10 million. The Company's total debt now
stands at US$110 million, of which US$100 million is interest only subordinated
notes maturing in June 2007.
Following the Apache sale, Petsec expects that, in 1999, 75% of its net gas
production will be hedged at US$2.45 per mcf and 35% of its daily net oil
production at US$19.70 per barrel.
Petsec Energy Ltd operates, produces and explores for oil and natural gas in
the shallow waters of the Gulf of Mexico. The Company owns interests in 44
leases, 21 of which are 100% owned, and 23 joint venture leases with Apache
Corporation which are 50% owned.
For further information please contact:
In Australia: In USA:
Doug Battersby, Technical Director Ross Keogh, Chief Financial Officer
Petsec Energy Ltd Petsec Energy Ltd
(61) 2 9247 4605 (phone) (318) 989 1942 (phone)
(61) 2 9251 2410 (fax) (318) 989 7271 (fax)
Level 13, Gold Fields House 143 Ridgeway Drive, Suite 113
1 Alfred Street, Sydney NSW 2000 Lafayette, Louisiana 70503-3402
Company information is available at Petsec's website http://www.petsec.com
1. Information in this report which relates to hydrocarbon reserves is based
on information compiled by a person qualified in accordance with Listing
Rule 5.11 and accurately reflects the information compiled by that
person.
2. Certain statements in this report regarding future expectations and plans
of the Company may be regarded as "forward-looking statements" within the
meaning of Section 27A of the USA Securities Act of 1933 and Section 21E
of the USA Securities Exchange Act of 1934. Although the Company believes
that its expectations and plans are based upon reasonable assumptions, it
can give no assurance that its goals will be met. Actual results may vary
significantly from those anticipated due to many factors, including oil
and gas prices, operating hazards, drilling risks, environmental risks
and uncertainties in interpreting engineering and other data relating to
oil and gas reservoirs, as well as other risks discussed in the Company's
SEC filings.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PETSEC ENERGY LTD
Date: February 12, 1999 By: /s/ ROSS A. KEOGH
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Name: Ross A. Keogh
Title: Chief Financial Officer
