<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
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): FEBRUARY 9, 2000
---------------
PETSEC ENERGY INC.
(Exact name of registrant as specified in its charter)
NEVADA 333-31625* 84-1157209
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or organization) File Number) Identification No.)
143 RIDGEWAY DRIVE, SUITE 113
LAFAYETTE, LOUISIANA 70503
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (318) 989-1942
*Petsec Energy Inc. is a wholly owned operating subsidiary of Petsec Energy
Ltd, a listed Australian public company registered with the Commission as a
result of its public offering in July 1996 of American Depositary Receipts
("ADRs") which are listed on the New York Stock Exchange (symbol: PSJ).
<PAGE> 2
Item 5. Other Events.
- ------- ------------
January 18, 2000 Press Release
On January 18, 2000, Petsec Energy Ltd, the parent of Petsec Energy
Inc. (the "Company"), issued a press release announcing that the Company had
signed a new $30 million secured credit facility with Foothill Capital
Corporation. The credit facility provides for availability of up to $30 million
pursuant to a borrowing base calculation and prohibits the Company from paying
interest on its $100,000,000 principal amount of 9 1/2% Senior Subordinated
Notes due 2007 (the 9 1/2% Notes").
A portion of the proceeds of this new credit facility were used to
retire Petsec Energy Inc.'s secured debt with Chase Manhattan Bank, N.A., Bank
of America, N.A. and Credit Lyonnais, and remaining proceeds will be available
for general working capital purposes.
The foregoing summary is subject to the full text of the press release
with respect thereto, a copy of which is attached hereto as Exhibit 99.1 and is
incorporated herein by reference.
January 19, 2000 Press Release
On January 19, 2000, Petsec Energy Ltd, issued a press release
announcing that members of the management of the Company and the Company's
advisors met with a steering committee of holders of 9 1/2% Notes to discuss
alternative solutions to the Company's current financial situation. The Company
had previously announced that it missed the December 15, 1999 payment of
interest on the 9 1/2% Notes.
The Company intends to continue discussions with its noteholders
concerning alternative solutions with the goal of finding a solution that is
mutually agreeable to both the Company and the noteholders. The Company does
not intend to make any further announcements regarding this matter until either
agreement is reached on a solution or it becomes apparent that no such
agreement can be reached
The foregoing summary is subject to the full text of the press release
with respect thereto, a copy of which is attached hereto as Exhibit 99.2 and is
incorporated herein by reference.
(b) Exhibits.
99.1 Press Release dated January 18, 2000 of Petsec Energy Ltd
with respect to the credit facility entered into by Petsec
Energy Inc. and Foothill Capital Corporation.
99.2 Press Release dated January 19, 2000 of Petsec Energy Ltd
with respect to the meeting between management of Petsec
Energy Inc. and the holders of Petsec Energy Inc.'s 9 1/2%
Senior Subordinated Notes due 2007.
<PAGE> 3
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.
PETSEC ENERGY INC.
Date: February 9, 2000 By: /s/ Ross A. Keogh
------------------------------
Name: Ross A. Keogh
Title: Vice-President and
Chief Financial Officer
<PAGE> 4
EXHIBIT INDEX
Exhibit
Number Description
- --------------------- --------------------------------------------------------
99.1 Press Release dated January 18, 2000 of Petsec Energy Ltd
with respect to the credit facility entered into by
Petsec Energy Inc. and Foothill Capital Corporation.
99.2 Press Release dated January 19, 2000 of Petsec Energy Ltd
with respect to the meeting between management of Petsec
Energy Inc. and the holders of Petsec Energy Inc.'s 91/2%
Senior Subordinated Notes due 2007
<PAGE> 1
EXHIBIT 99.1
PETSEC ENERGY LTD
ACN 000 602 700
18 January 2000
PETSEC ENERGY INC. SIGNS NEW CREDIT FACILITY
--------------------------------------------
Sydney, Australia - Petsec Energy Ltd (ASX: PSA and NYSE: PSJ) today announced
that its wholly owned subsidiary, Petsec Energy Inc., has signed a new $30
million secured credit facility. The new facility is with Foothill Capital
Corporation and provides for availability of up to $30 million pursuant to a
borrowing base calculation.
The proceeds of this new credit facility are being used to retire Petsec Energy
Inc.'s existing secured debt with Chase Manhattan Bank, N.A., Bank of America,
N.A. and Credit Lyonnais, and for general working capital purposes.
The new credit facility prohibits Petsec Energy Inc. from paying interest on
its $100,000,000 principal amount of 9 1/2% Senior Subordinated Notes due 2007.
As previously announced, Petsec Energy Inc missed the $4.75 million interest
payment due on such notes on December 15, 1999. Petsec Energy Inc has scheduled
a meeting with members of a committee of holders of the notes on Tuesday,
January 18, 2000.
Petsec Energy Inc. is an independent oil and gas exploration and production
company with operations in the offshore Gulf of Mexico and offices in Lafayette,
Louisiana. Petsec Energy Ltd is headquartered in Sydney, Australia.
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 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 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> 1
EXHIBIT 99.2
PETSEC ENERGY LTD
ACN 000 602 700
19 January 2000
PETSEC ENERGY INC. MANAGEMENT MEETS WITH BONDHOLDERS
Sydney, Australia - Petsec Energy Ltd (ASX: PSA and NYSE: PSJ) ("PEL")
announced today that members of the management of Petsec Energy Inc. ("PEI"),
PEL's wholly owned U.S. subsidiary, and its advisors, met with a steering
committee of holders of its US $100,000,000 principal amount of 9 1/2% Senior
Subordinated Notes due 2007. At the meeting discussions were held concerning
alternative solutions to PEI's current financial situation. As previously
announced, PEI missed the December 15, 1999 payment of interest on the notes.
PEI intends to continue discussions with its noteholders concerning alternative
solutions with the goal of finding a solution that is mutually agreeable to
both PEI and the holders of the notes. It is not intended that any further
announcements regarding this matter will be made until either agreement is
reached on a solution or it becomes apparent that no such agreement can be
reached.
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 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 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
