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
August 10, 1996
Energen Corporation
(Exact name of registrant as specified in its charter)
Alabama
(State or other jurisdiction of incorporation)
1-7810 63-0757759
(Commission File No.) (IRS Employer Identification No.)
2101 Sixth Avenue North
Birmingham, Alabama 35203
(Address of principal (Zip Code)
executive offices)
(205) 326-2700
(Registrant's telephone number including area code)
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Item 2. Acquisition or Disposition of Assets
As previously reported in the Quarterly Report on Form 10-Q for the
quarter ended June 30, 1996, of Energen Corporation (the "Company"), on July
31, 1996, with an effective date of July 1, 1996, a subsidiary of Taurus
Exploration, Inc. ("Taurus"), the oil and gas exploration and production
subsidiary of the Company, acquired a 100 percent working interest in the
Black Warrior Basin coalbed methane properties of Houston-based Burlington
Resources Inc. ("Burlington") for $61 million. The properties are part of
Burlington's recently announced accelerated divestiture program. In addition
to ownership, Taurus will operate the properties. Current production is
located on more than 19,000 gross acres adjacent to existing Taurus coalbed
methane interests in west central Alabama. The properties include more than
100 economic wells and estimated net proved reserves of 100 billion cubic feet
("Bcf"). Substantially all of the reserves are classified as proved
producing, with net annual production currently exceeding 4.5 Bcf. Through
the year 2002, production from 43 of the wells qualifies for the
Nonconventional Fuels Tax Credit, which presently is valued at approximately
$1 per thousand cubic feet of production and increases annually with
inflation. Under applicable area of mutual interest agreements, Taurus was
required to offer substantial participation in the acquired properties to two
of its coalbed methane partners, which participation was not exercised. The
majority of the participation rights expired on August 10, 1996, and the
balance of such rights expired on August 20, 1996. Accordingly, such
acquisition is being reported on this Form 8-K as a result of the expiration
of participation rights on August 10, 1996.
The Company initially used a portion of its existing short-term
credit facilities to acquire the foregoing properties. The Company expects to
refinance a portion of its current year acquisitions, including the
acquisition reported hereby, through the issuance of long-term debt during the
fourth quarter of this fiscal year. The Company expects to refinance the
balance of such acquisitions as well as additional investments which may be
made pursuant to its ongoing acquisition program through future issuances of
long-term debt and equity.
Item 7. Financial Statements and Exhibits
(a) Financial Statements of Business Acquired
It is impracticable to provide the consolidated financial
information of the business acquired from Burlington at the time
of filing this report. The required financial statements will be
filed as soon as practicable but not later than 60 days from
August 26, 1996, the date on which this Form 8-K must be filed
with the Securities and Exchange Commission (the "Commission").
(b) Pro Forma Financial Information
It is impracticable to furnish the required pro forma financial
information at the time of the filing of this report. The
required pro forma financial information will be filed as soon as
practicable but not later than 60 days from August 26, 1996, the
date on which this Form 8-K must be filed with the Commission.
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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.
ENERGEN CORPORATION
DATE: August 23, 1996 By /s/ G. C. Ketcham
G. C. Ketcham
Executive Vice President,
Chief Financial Officer
and Treasurer
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