SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K/A
AMENDMENT NO. ONE
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report: (Date of earliest event reported) September 9, 1997
SABA PETROLEUM COMPANY (Exact name of registrant as specified in charter)
Delaware 1-12322 47-0617589
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(State or (Commission (IRS Employer
other File Number) Identification No.)
jurisdiction
of incorporation)
3201 Airpark Drive Suite 201, Santa Maria, CA 93455
(Address of principal executiove offices) (Zip Code)
Registrant's telephone number, including area code: (805) 347-8700
(Former name or former address, if changed since last report) Not Applicable
ITEM 2. Acquisition or Disposition of Assets
On September 9, 1997, the Company acquired by purchase an undivided
eighty percent working interest (revenue interests varying from a low of 79% to
a high of 84%) in oil and gas leases covering 3400 acres in the Potash field,
Plaquemines Parish, Louisiana. At the same time and as part of the same
transaction, Energy Asset Management Company, L.L.C. a non-affiliated limited
liability company, acquired the remaining twenty percent working interest. The
purchase price for the 100% interest was $10 million, of which $8 million was
the Company's share. At the date of acquisition, the interests acquired by the
Company were producing approximately 880 gross (563 net) barrels of oil and
equivalents per day from 10 of the 22 wells acquired. The field contains a
number of other wells that have been suspended, a number of which the Company
believes may be restored to production. Production from these wells is primarily
natural gas. The Company established the purchase price through negotiations
with the seller, Statoil Exploration (US), Inc., a non-affiliate, relying in
part upon engineering advice secured through the Company's outside engineering
consultants and the evaluations of the Company=s personnel. No relationship
exists between the seller and any of the affiliates or associates of the
Company. As part of the acquisition, the Company acquired a significant amount
of technical data concerning the field. The Company intends to further evaluate
such data and may conduct additional geophysical investigation of portions of
the field. The Company also intends to rework existing and suspended wells in an
effort to increase production from the field.
The purchase price was funded by the proceeds of a ten million dollar
short term loan from the Company's primary bank, Bank One, Houston, Texas, which
was secured by one hundred percent of the acquired assets. As part of the
transaction, the Company lent two million dollars of the proceeds to Energy
Asset Management Company at an interest rate which exceeded the Company's
borrowing rate by one hundred basis points. The Company is operator of the
acquired interests.
ITEM 5. Other Events
DELETED
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
10.1 Purchase and Sale Agreement(Previously filed with initial
filing of Company's Current Report aon Form 8-K dated
9/24/97 and is incorporated herein by this reference.)
10.2 4th Amendment To First Amended and Restated Loan Agreement
(Previously filed with initial
filing of Company's Current Report aon Form 8-K dated
9/24/97 and is incorporated herein by this reference.)
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: October 7, 1997 By: /s/ Ilyas Chaudhary
President
Date: October 7, 1997 By: /s/ Walton C. Vance
Chief Financial Officer
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