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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTHS OF APRIL AND MAY, 2000
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
ACN 000 602 700
12 April 2000
PETSEC ENERGY SELLS INTEREST IN SEVEN LEASES
Sydney, Australia - Petsec Energy Ltd (ASX: PSA and OTC BB: PSJEY) today
announced that its wholly owned subsidiary, Petsec Energy Inc., has sold its
working interests in seven of its leases, effective 1 February 2000. The sale
price was US$8.45 million cash.
Petsec now holds an interest in 41 leases, with production established on 21 of
them.
The Company has sold its 50% working interest in the West Delta 112 & 113
leases, its 25% working interest in the West Cameron 515, 516 and 526 leases
and its 25% working interest in the Vermilion 34 and 47 leases. Net proven
reserves attributable to the West Cameron 515 and 516 leases, as determined by
Ryder Scott Company, L.P. at 31 December 1999, were 95,671 barrels of oil and
5.3 billion cubic feet of gas. The Company had not booked any reserves on the
other leases that were sold.
The net proceeds from the sale will be used to reduce the Company's secured
bank debt to approximately US$7.7 million.
Petsec is an independent oil and gas exploration and production company
operating in the shallow waters of the US Gulf of Mexico. The Company's
corporate office is in Sydney, Australia. Field operations are managed in the
US from Lafayette, Louisiana.
For further information please contact:
In Australia: In USA:
Terry Fern, Managing 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 ssumptions, 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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PETSEC ENERGY LTD
(A.C.N. 000 602 700)
14 April, 2000
The Manager, Companies
Company Announcements
Australian Stock Exchange
Level 4, 20 Brige Street
SYDNEY NSW 2000
Dear Sir/Madam
RE: Petsec Energy Inc.
The Company's wholly owned U.S. subsidiary, Petsec Energy Inc. ("PEI") has
filed a voluntary petition in the Federal Court in Opelousas, Louisiana under
Chapter 11 of the U.S. Bankruptcy Code.
The filing will allow PEI to continue its operations under the protection of
the bankruptcy court while it continues discussions with its senior unsecured
noteholders regarding possible solutions to its financial situation. It will
also afford PEI the opportunity to evaluate all other options.
To maintain liquidity through the reorganization process, including payment of
suppliers and trade creditors, PEI is negotiating a commitment for up to US$30
million of post-petition financing from Foothill Capital, PEI's existing
secured lender, subject to court approval.
Petsec Energy Ltd is an independent oil and gas exploration and production
company operating in the shallow waters of the US Gulf of Mexico.
Yours faithfully
Geoff Fulcher
Company Secretary
For further information please contact:
In Australia: In USA:
Terry Fern, Managing 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.au
------------------------
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.
<PAGE> 4
PETSEC ENERGY LTD
(A.C.N. 000 602 700)
May 10, 2000
PETSEC ENERGY REPORTS MARCH QUARTER RESULTS
-------------------------------------------
Sydney, Australia - Petsec Energy Ltd (ASX: PSA and OTC BB: PSJEY), today
announced its results for the three months ended March 31, 2000.
Under Australian accounting standards, the Company reported an after tax loss
of A$5.9 million in the quarter ended March 31, 2000 (1999: a net loss of A$9.1
million).
Under U.S. generally accepted accounting principles the Company reported a net
loss of US$3.6 million, or US$0.17 per American Depositary Receipt ("ADR").
This is compared to a net loss in the 1999 quarter of US$5.8 million, or
US$0.27 per ADR.
Net sales in the March quarter were US$7.2 million, down from US$9.3 million in
1999. Net production of 2.4 Bcfe for the quarter was lower than the March 1999
quarter production of 4.1 Bcfe and 14% down on the December 1999 quarter. Cash
flow from operating activities in the March quarter was US$1.4 million or
US$0.06 per ADR. In 1999 cash flow from operating activities totalled US$8.9
million or US$0.42 per ADR.
The Grand Isle 45 A-2 and Mustang Island 883 #1 (Sidetrack) exploration wells
were drilled in the quarter. Both were successful and are now in production.
The Main Pass 90 #1 and Main Pass 93 #1 exploration wells, drilled in 1999,
were brought into production in March.
Effective February 1, 2000, the working interests in West Delta 112/113, West
Cameron 515/516/526, and Vermilion 34/47 were sold for US$8.45 million. The net
proceeds from the sale were received in April and were used to reduce secured
bank debt.
On April 13, 2000 Petsec Energy Inc., the Company's wholly owned US subsidiary,
filed a voluntary petition for protection under Chapter 11 of the US Bankruptcy
Code to provide time for a financial restructuring to be negotiated following
the failure to pay a semi-annual interest payment on Petsec Energy Inc.'s
US$100 million 9 1/2% 2007 subordinated notes in December 1999. The outcome of
these negotiations is uncertain and accordingly the potential financial impact
is not shown in the financial statements.
Petsec is an independent oil and gas exploration and production company
operating in the shallow waters of the US Gulf of Mexico. The Company's
corporate office is in Sydney, Australia. Field operations are managed in the
US from Lafayette, Louisiana.
For further information please contact:
In Australia: In USA:
Terry Fern, Managing Director Ross Keogh, Chief Financial Officer
Petsec Energy Ltd Petsec Energy Ltd
(61) 2 9247 4605 (phone) (337) 989 1942 (phone)
(61) 2 9251 2410 (fax) (337) 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 web site 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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Petsec Energy Ltd
Results for the first quarter ended 31 March 2000
(A$, Australian accounting standards, unaudited)
<TABLE>
<CAPTION>
Three months ended Change Three months ended Change
31 Mar 00 31 Mar 99 % 31 Mar 00 31 Mar 99 %
(in thousands) (in thousands)
<S> <C> <C> <C> <C> <C> <C>
Oil and gas sales (before deducting royalties) A$ 14,771 17,477 -15% 14,771 17,477 -15%
Profit and loss account
Loss before interest and abnormal items A$ (1,958) (4,664) (1,958) (4,664)
Net interest expense (3,947) (4,478) (3,947) (4,478)
------------------- -------------------
Operating loss before abnormal items (5,905) (9,142) (5,905) (9,142)
Abnormal items - impairments expense - - - -
- dry hole costs & abandonments - - - -
------------------- -------------------
Operating loss before tax (5,905) (9,142) (5,905) (9,142)
Tax expense (17) - (17) -
Operating loss after tax (5,922) (9,142) (5,922) (9,142)
------------------- -------------------
Basic and diluted earnings per share A$ (0.06) (0.08) (0.06) (0.08)
Number of shares outstanding (period end, thousands) 107,401 107,501 107,401 107,501
Number of shares outstanding (average, thousands) 107,401 107,592 107,401 107,592
Average US$ / A$ exchange rates 0.6213 0.6259 0.6213 0.6259
</TABLE>
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Petsec Energy Ltd
Results for the first quarter ended 31 March 2000
(US$, "successful efforts" accounting under US
generally accepted accounting principles, unaudited)
<TABLE>
<CAPTION>
Three months ended Change Three months ended Change
March 31 March 31
2000 1999 % 2000 1999 %
(in thousands) (in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
Statement of operations
Oil and gas sales (net of royalties) US$ 7,202 9,315 -23% 7,202 9,315 -23%
Lease operating expenses (1,474) (1,740) (1,474) (1,740)
General, administrative and other expenses (1,389) (1,732) (1,389) (1,732)
Restructure costs (806) - (806) -
Stock compensation expense (51) (120) (51) (120)
------------------- --------------------
EBITDAX (income before interest, DD&A,
exploration & abandonments) 3,482 5,723 -39% 3,482 5,723 -39%
Depletion, depreciation & amortisation (DD&A) (4,164 (6,483) (4,164) (6,483)
------------------- --------------------
Loss from operations (before exploration &
abandonments) (682) (760) (682) (760)
Exploration expenditures (167) (1,645) (167) (1,645)
Abandonments - (888) - (888)
Dry hole costs and abandonments - - - -
------------------- --------------------
Loss from operations (849) (3,293) (849) (3,293)
Profit on sale of assets and other income - 254 - 254
Interest expense (net of interest income) (2,705) (2,783) (2,705) (2,783)
------------------- --------------------
Loss before tax (3,554) (5,822) (3,554) (5,822)
Income tax benefit (expense) (11) - (11) -
------------------- --------------------
Net loss US$ (3,565) (5,822) (3,565) (5,822)
------------------- --------------------
Cash flow data
Net cash provided by operating activities US$ 1,396 8,931 -84% 1,396 8,931 -84%
Net cash provided by (used in) investing activities US$ (5,198) 64,339 (5,198) 64,339
Net cash provided by (used in) financing activities US$ 1,945 (65,000) 1,945 (65,000)
-
Balance sheet data (at end of period)
Total assets US$ 111,022 124,782 111,022 124,782
Cash and deposits US$ 18,502 21,758 18,502 21,758
Borrowings US$ 111,506 108,662 111,506 108,662
Shareholders' deficit US$ (22,992) (1,410) (22,992) (1,410)
Basic and diluted earnings per share
Net loss per ordinary share US$ (0.03) (0.05) (0.03) (0.05)
Net loss per ADR US$ (0.17) (0.27) (0.17) (0.27)
Average number of shares outstanding (thousands) 107,401 107,592 107,401 107,592
Additional data
-
Net production
Oil (MBbls) 169 249 -32% 169 249 -32%
Gas (MMcf) 1,428 2,621 -46% 1,428 2,621 -46%
------------------- --------------------
Total (MMcfe) 2,442 4,115 -41% 2,442 4,115 -41%
------------------- --------------------
Net sales
Oil (US$ in thousands) US$ 4,016 3,132 4,016 3,132
Gas (US$ in thousands) 3,186 6,183 3,186 6,183
------------------- --------------------
Total (US$ in thousands) 7,202 9,315 -23% 7,202 9,315 -23%
------------------- --------------------
Average sales price
Oil (US$ per Bbl) US$ 23.76 12.58 89% 23.76 12.58 89%
Gas (US$ per Mcf) 2.23 2.36 -6% 2.23 2.36 -6%
------------------- --------------------
Total (US$ per Mcfe) 2.95 2.26 30% 2.95 2.26 30%
------------------- --------------------
Average costs (US$ per Mcfe)
Lease operating expenses US$ 0.60 0.42 0.60 0.42
Depletion, depreciation and amortisation 1.71 1.58 1.71 1.58
General, administrative & other expenses 0.57 0.42 0.57 0.42
Restructure costs 0.33 - 0.33 -
Stock compensation expense 0.02 0.03 0.02 0.03
------------------- --------------------
Total (before exploration and abandonments) 3.23 2.45 +32% 3.23 2.45 +32%
------------------- --------------------
</TABLE>
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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: May 17, 2000 By: Ross A. Keogh
------------------------------------
Name: Ross A. Keogh
Title: Chief Financial Officer
