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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 30, 1998
EEX CORPORATION
(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 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 December 30, 1998:
EEX ADDS TO SHELF PRODUCTION
AND UPDATES DEEPWATER ACTIVITIES
HOUSTON, TEXAS (December 30, 1998) -- EEX Corporation
(NYSE: EEX) has completed production tie-in operations on
two exploration discoveries drilled on the Continental Shelf
in the Gulf of Mexico. The West Cameron Block 204 No. 1
well is currently producing 23 million cubic feet (MMcf)
gross of natural gas and 90 barrels of condensate per day,
with a flowing tubing pressure of 1,800 psi. Following the
installation of compression equipment, the well is expected
to reach flow rates in excess of 30 MMcf per day. EEX is
operator of the well with a 60% working interest and
Petrobras America Inc. holds the remaining 40% interest. On
South Timbalier Block 217, the No. 1 well is currently
producing approximately 16 MMcf a day with a flowing tubing
pressure of 3,700 psi on a 32/64 inch choke. EEX has a 50%
interest in this well and Agip Petroleum, the operator,
holds the remaining interest. A successful development well
on Block 217 has reached total depth and is anticipated to
begin producing in January.
"In both cases, the West Cameron and South Timbalier
wells went from wildcat discovery without infrastructure in
place to producing platforms in a short period of time. In
the case of West Cameron 204, it went from spud to
production in just over 90 days," said Tom Hamilton,
Chairman and President, Chief Executive Officer. "This fast-
track approach demonstrates a high degree of integration and
coordination from all disciplines on the shelf team and
contributes to our efforts to improve the economic return on
invested capital," Hamilton added.
Elsewhere, EEX has completed drilling on one well and
is nearing total depth on another in the deepwater Gulf of
Mexico. At the Gamera Prospect, located in a four block
unit in Atwater Valley (Blocks 118, 119, 162, 163), the non-
operated well drilled to a total vertical depth of
approximately 16,000 feet. The well was subsequently
plugged and abandoned. EEX had a carried 12.5% net working
interest and therefore will incur no dry hole costs
associated with Gamera.
(more)
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At the Elvis prospect on Mississippi Canyon Block 580,
the well has been drilled to a depth of approximately 19,600
feet and is preparing for logging and evaluation operations.
EEX has a carried net working interest of 23% in the Elvis
prospect. Once drilling operations are concluded, the semi-
submersible drilling rig will relocate to begin drilling a
20,000 foot well on EEX's George Prospect in Mississippi
Canyon Block 442, adjacent to the Company's existing
production facilities on Block 441.
Meanwhile, EEX continues to evaluate the reserve
potential of its Llano discovery on Garden Banks Block 386.
The first appraisal well at Llano is currently drilling and
is expected to reach total depth in early spring of next
year.
"We are still in the early stages of our deepwater
exploration program with one success to date and a large
number of prospects remaining," Hamilton commented. "What
we have learned through drilling thus far is consistent with
our deepwater geologic model. Internally generated cash
flow along with the funds remaining from the trade we made
with Enterprise Oil last year and the recently announced
financing transaction with Warburg, Pincus Equity Partners
will enable EEX to keep the exploration and development
programs on course and moving ahead," Hamilton added.
EEX Corporation is an oil and natural gas exploration
and production company with activities currently focused in
Texas, the Gulf of Mexico and Indonesia.
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This report includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 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. EEX's
periodic reports filed with the Securities and Exchange
Commission include a discussion of important factors that
could cause actual results to differ materially from those
indicated in forward-looking statements.
For additional information, call 1-888-EEX-NEWS, or visit
our Website at http://www.eex.com
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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/ B. A. Brown
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B. A. Brown
Vice President,
Financial Relations
Date: January 4, 1999
