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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-KSB
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 18, 1998
PAN WESTERN ENERGY CORPORATION
(Exact name of registrant as specified in charter)
OKLAHOMA 0-22349 73-1130486
(State or other jurisdiction (Commission File (IRS Employer
of incorporation or organization) Number) Identification No.)
1850 SOUTH BOULDER AVENUE
SUITE 300
TULSA, OKLAHOMA 74119
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (918) 582-4957
ITEM 1. CHANGES IN CONTROL OF REGISTRANT.
Not Applicable.
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
Not Applicable.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP.
Not Applicable.
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
Not Applicable.
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ITEM 5. OTHER EVENTS.
Pan Western Energy Corporation has entered into a commitment letter with
Cambrian Capital Corporation of Houston, Texas whereby, subject to completion of
appropriate loan conditions, Cambrian will provide to Pan Western a debt
facility up to $7.42 million. Pan Western will use $2.32 million of the credit
facility to restructure approximately $1.52 million of long term debt and pay
off $800,000 of short term debt. The remaining $5.1 million of the debt
facility will be used to (1) develop proved non-producing and undeveloped oil
and gas reserves, and, (2) acquire additional oil and gas reserves. The
commitment letter is subject to completion of a definitive loan agreement which
will contain customary conditions to closing. The loan will be for a term of
four (4) years. The stated interest rate is two percent (2%) over CitiBank,
N.A. prime rate per annum. The commitment letter requires that minimum
principal payments totaling $725,000 be made by September 30, 2000. The
principal payments will be made in quarterly increments as follows:
Quarter Ended 12/31/98 $ 50,000
Quarter Ended 3/31/99 $100,000
Quarter Ended 6/30/99 $ 75,000
Quarter Ended 9/30/99 $ 75,000
Quarter Ended 12/31/99 $105,000
Quarter Ended 3/31/00 $105,000
Quarter Ended 6/30/00 $105,000
Quarter Ended 9/30/00 $110,000
To the extent monthly cash flow exceeds the total of interest, lease operating
expenses and a general and administrative overhead allowance of $60,000, said
excess cash flow will be applied to further reduce principal. Therefore,
principal may be reduced significantly more by September 30, 2000 than called
for in the minimum principal payment schedule.
ITEM 6. RESIGNATION OF REGISTRANT'S DIRECTORS.
Not Applicable.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
Not Applicable.
ITEM 8. CHANGES IN FISCAL YEAR.
Not Applicable.
ITEM 9. SALES OF EQUITY SECURITIES PURSUANT TO REGULATION S.
Not Applicable.
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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 hereunto duly authorized.
PAN WESTERN ENERGY CORPORATION
(Registrant)
Date: May 18, 1998 /s/ Sid L. Anderson
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(Signature)
Sid L. Anderson
President and CEO
