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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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) November 7, 1995
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Territorial Resources, Inc.
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(Exact Name of Registrant as Specified in Its Charter)
Colorado
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(State or Other Jurisdiction of Incorporation)
0-9617 84-0821158
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(Commission File Number) (I.R.S. Employer Identification No.)
1300 Main Street, Suite 1840, Houston, Texas 77002
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(Address of Principal Executive Offices)
(713) 658-0850
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(Registrant's Telephone Number, Including Area Code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 5. OTHER EVENTS.
The Company issued a press release on November 7, 1995, a copy of
which is attached as an exhibit to this Form 8-K as filed with the
Securities and Exchange Commission.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
99.1 Press Release dated November 7, 1995
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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.
Territorial Resources, Inc.
Date: 11/22/95 By: /s/ Brian A. Lingard
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Brian A. Lingard
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EXHIBIT 99.1
[TERRITORIAL LOGO]
NEWS RELEASE
TERRITORIAL RESOURCES ANNOUNCES
MONGOLIAN WELL SUSPENDED FOR THE WINTER
Houston, Texas, November 7, 1995 -- TERRITORIAL RESOURCES, INC. ("TERI")
today announced that Snyder Oil Corporation ("SOCO") has suspended the SOTAMO
19-2 well in the Tamtsag Basin of northeastern Mongolia for the winter.
Through SOCO Tamtsag Mongolia, Inc. ("STMI"), SOCO is the operator of the
project. TERI participates in this project through its 1% ownership of the
outstanding stock of STMI. The well was drilled to a total depth of 9,875
feet and pipe was set. A total of 55 feet of what appear to be productive oil
sands were logged beginning at 8,879 feet and an additional 144 feet of
possible oil and gas sands were identified. In the course of drilling,
approximately 800 barrels of drilling fluid were lost to the most prospective
zone in the well and a minor volume of oil having an estimated API gravity of
40-45 degrees was recovered. Attempts to test this zone were unsuccessful due
to the lack of proper equipment. Operations will resume in the spring when
the weather improves and equipment can be mobilized. In addition, STMI is a
co-applicant for two adjacent blocks which include an additional five million
acres, one of which is Contract Area XX, where TERI is a co-applicant with a
15% interest. The final award of these additional blocks is being vigorously
pursued. Pursuant to an agreement reached in 1994, any commercial production
developed by STMI will be sold to China National United Oil Corporation
("China Oil") at the Platts' posted DAQING export price less a transport
tariff of $2 per barrel. China Oil has also served as the drilling contractor
on the project.
In announcing the preliminary results, John C. Snyder, Chairman of SOCO,
said, "We are very encouraged by this apparent oil discovery. It is
unfortunate that we were unable to properly test the well but will have the
necessary equipment in place as soon as weather conditions permit next
spring. In the meantime, we plan to select an offset location to the 19-2
well on Block XIX and to decide on a possible wildcat on Block XXII. To date,
we have acquired approximately 1800 kms. of seismic data which confirm the
prospective structural setting of the Basin. Although current information
should not be considered conclusive, the results of the 19-2 lead us to
believe that the Tamtsag Basin has the potential to become a major oil
producing province."
TERI's focus is international exploration and production opportunities,
primarily in Mongolia. The Common Stock of the Company is traded in the
over-the-counter market under the symbol "TERI".
