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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
December 16, 1997
ENSERCH EXPLORATION, INC.
(Exact name of Registrant as specified in its charter)
Texas 1-12905 75-2421863
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
2500 CityWest Boulevard, Suite 1400, Houston, Texas 77046
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including Area Code: (713)243-3100
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ITEM 5. Other Events
Set forth below in its entirety is a News Release issued by
Enserch Exploration, Inc. on December 16, 1997:
EEX ANNOUNCES SUCCESSFUL DEEPWATER DISCOVERY
HOUSTON, TEXAS (December 16, 1997) -- Enserch Exploration
(NYSE: EEX) has made a discovery with its first exploratory well
drilled on Garden Banks Block 386 in the deepwater Gulf of Mexico.
The well encountered a number of hydrocarbon bearing intervals
located between depths of 23,000 feet and 25,340 feet. Drilling
was suspended at a total measured depth of 25,342 feet prior to
reaching the primary objective when the well reached equipment
depth limitations for the semi-submersible rig on location. The
well will be temporarily abandoned to evaluate recent enhancements
provided by 3-D seismic processing and to explore appraisal and
development options for the project area utilizing a larger
drilling rig with greater depth capabilities.
"We are very encouraged by this success so early in our
deepwater exploration program," said Tom Hamilton, Chairman and
President, Chief Executive Officer. "It is significant that this
well contains hydrocarbon bearing sands similar to those
encountered in the Auger area. This confirmation of our deepwater
geologic model gives us great encouragement for the potential of
our remaining inventory of prospects," Hamilton added. EEX will
likely require an appraisal well to further define the areal extent
and significance of this discovery in terms of reserve potential
and commerciality.
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The Llano well was the first of a multi-prospect joint venture
with Enterprise Oil to test Miocene-aged objectives beneath EEX's
approximately 75 blocks leased in the deepwater Gulf of Mexico.
EEX is operator of the Llano discovery with a 30% working interest.
Partners include Enterprise Oil (30%), PanCanadian (20%) and Mobil (20%).
Separately, EEX completed negotiations with Reading & Bates
that will extend EEX's access to the C. Kirk Rhein, Jr. semi-submersible rig.
In the agreement, the rig will first be used by
another operator for a short-term drilling activity. EEX now
expects the rig to be available for its use in March 1998 to begin
drilling prospects in the Green Canyon and Mississippi Canyon areas
of the Gulf of Mexico. The rig has been contracted at below
current market day rates. "This rig agreement, in addition to our
existing contract for the Diamond Voyager, gives EEX access to two
deepwater rigs capable of drilling our deepwater prospects in the
Gulf," said Tom Hamilton.
Enserch Exploration, which will change its name to EEX
Corporation following a special meeting of shareholders later this
week, is a natural gas and oil exploration and production company
with activities focused in Texas and the Gulf of Mexico.
This report includes forward-looking statements within the meaning
of Section 27A of the Securities Act of 1993 and Section 21E of the
Securities Exchange Act of 1934. Although EEX believes that its
expectations are based on reasonable assumptions, it can give no
assurance that its goals will be achieved. Important factors that
could cause actual results to differ materially from those in the
forward-looking statements include political developments in
foreign countries, federal and state regulatory developments, the
timing and extent of changes in commodity prices, the timing and
extent of success in discovering, developing and producing or
acquiring oil and gas reserves, and conditions of the capital and
equity markets during the periods covered by the forward-looking
statements.
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SIGNATURE
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.
Enserch Exploration, Inc.
Date: December 17, 1997 By: /s/ R. E. Schmitz
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R. E. Schmitz, Vice President
