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 or Report (Date of earliest event reported)
June 22, 1998
EEX CORPORATION
(Exact name of Registrant as specified in its charter)
Texas 1-12905 752421863
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
2500 CityWest Boulevard, Suite 1400, Houston, Texas 77042
(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
EEX Corporation on June 22, 1998:
EEX SUCCESSFUL AT LLANO
HOUSTON, TEXAS (June 22, 1998) -- EEX Corporation
(NYSE: EEX) has completed sidetrack drilling operations on
the Llano prospect located on Garden Banks Block 386 in the
Gulf of Mexico and evaluation activities are continuing at
this time. However, analysis of the logging data has
indicated the presence of several hydrocarbon-bearing sands
in the Lower Pliocene and Miocene aged sections.
The sands at Llano correlate closely to similar sands
encountered by Shell Deepwater Development in the Auger
Field, less than 15 miles to the southwest, containing a
reported 220 million barrels of oil equivalent reserves.
"This new information will allow us to move forward
with confirmation drilling to evaluate the size of this
discovery," said David Henderson, Executive Vice President
and Chief Operating Officer.
Appraisal options under consideration include several
wells to evaluate the Lower Pliocene and Miocene reservoirs.
Upon completion of a well currently drilling in the Green
Canyon area of the Gulf, the Diamond Offshore "Ocean
Voyager" semi-submersible drilling rig is expected to return
to the Garden Banks area to begin appraisal drilling this
fall.
Core samples, pressures and fluid samples at depth will
be captured, in addition to electric logs, and will be used
to evaluate the feasibility of early production through tie-
back options to EEX's Cooper Facility on Garden Banks Block
388 concurrently with evaluations for stand-alone production
facilities. EEX is the operator of this prospect with a 30%
interest and the partners are Enterprise Oil Gulf of Mexico
(30%), PanCanadian Gulf of Mexico (20%) and Mobil
Exploration and Producing U.S. (20%).
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Elsewhere in the Gulf, EEX has two other deepwater
prospects drilling and expects to have a fourth prospect
drilling in July. The Sheba prospect, located on Green
Canyon Block 341, is currently setting casing at around
19,000 feet with a target depth in excess of 25,000 feet.
The Elvis prospect, located on Mississippi Canyon Block 580,
is currently drilling at approximately 10,000 feet with a
target depth of 23,000 feet. The Gamera prospect, located
in Atwater Valley on Blocks 118, 119, 162 and 163, should
begin drilling during July.
Drilling at Viosca Knoll Block 737 has resulted in a
gas discovery. However, sidetrack well results indicated
that the reserve potential of this find will not likely
support a stand-alone development facility and tie-back
options to existing infrastructure are currently being
examined. EEX has a 25% interest in this Elf Exploration,
Inc. operated prospect.
In EEX's international operations, an exploratory well
at the Karang Anyar Prospect (located South of the Mudi
Field) on the Tuban Block in Indonesia encountered non-
commercial accumulations of natural gas and was plugged and
abandoned. EEX had a 50% interest in this non-operated
well. EEX and block operator, Santa Fe Energy Resources
Java, have identified another exploration prospect in the
Tuban Block and are in the process of finalizing offset
owner support to allow the drilling of this prospect. This
prospect is located to the southwest of the Mudi Field and
if successful, could utilize some portion of the Mudi Field
facilities to achieve early production.
EEX Corporation is an oil and natural gas exploration
and production company with activities currently focused in
Texas, the Gulf of Mexico and Internationally.
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.
EEX Corporation
By: /s/ T. E. Coats
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T. E. Coats
Vice President and
Controller
Date: June 22, 1998
