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
July 9, 1997
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
(Address of principal 35203
executive offices) (Zip Code)
(205) 326-2700
(Registrant's telephone number including area code)
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Item 5. Other Events
On July 9, 1997, Taurus Exploration, Inc. ("Taurus"), the
oil and gas exploration and production subsidiary of Energen
Corporation, entered into a definitive purchase and sale
agreement to acquire Amoco Corporation's Black Warrior Basin
coalbed methane properties for $72 million. The Alabama package
is part of Amoco's recently announced divestiture program.
Closing is expected to take place on or before August 1.
Located on approximately 100,000 gross acres in Jefferson
County, Alabama, the properties include more than 260 producing
wells and estimated net proved reserves of 90 billion cubic feet
(Bcf). Substantially all of the reserves are classified as proved
producing.
Net annual production from the Amoco wells currently exceeds
7 Bcf. Through the year 2002, production from all of the wells
qualifies for the nonconventional fuels tax credit, which
presently is valued at just over $1 per thousand cubic feet of
production and increases annually with inflation.
Through its 1988 agreement with Amoco to co-develop
coalbed methane in Alabama, Taurus has been operating 170 of the
Amoco wells; as the new sole owner, Taurus will operate all the
wells in the old joint venture.
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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: July 9, 1997 By /s/ Wm. M. Warren, Jr.
Wm. M. Warren, Jr.
President and
Chief Executive Officer
