UNITED STATES
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) JUNE 1, 1998
SEAGULL ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
TEXAS 1-8094 74-1764876
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
1001 FANNIN, SUITE 1700, HOUSTON, TEXAS 77002-6714
(Address of principal executive offices) (Zip code)
(713) 951-4700
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year,
if changed since last report)
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Seagull Energy Corporation
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On June 1, 1998, Seagull E&P, Inc., a wholly owned subsidiary of Seagull
Energy Corporation, ("Seagull" or the "Company"), completed its previously
announced purchase pursuant to a Purchase and Sale Agreement with the
shareholders of BRG Petroleum, Inc. (the "BRG Shareholders"), BRG 1998
Consolidated Limited Partnership, BRG 1997 Consolidated Limited Partnership, BRG
1996-I Oil & Gas Limited Partnership, BRG 1996-II Oil & Gas Income Fund Limited
Partnership, BRG 1993-I Oil and Gas Limited Partnership, BRG 1992-I Oil & Gas
Income Fund Limited Partnership, BRG 1990-II Oil and Gas Limited Partnership and
BRG 1989-II Oil & Gas Income Fund Limited Partnership (collectively, the "BRG
Partnerships") and the participants in the BRG 1997-I Oil and Gas Program (the
"1997-I Program Participants"). Under the Purchase and Sale Agreement, Seagull
purchased the stock of BRG Petroleum, Inc. ("BRG"), all of the oil and gas
assets of each of the BRG Partnerships (collectively, the "BRG Partnership
Properties") and all of the oil and gas properties and related interests the of
1997-I Program Participants (the "1997-I Properties") for approximately $101
million in cash, excluding working capital adjustments which were minor. The
Company funded the acquisition of the stock of BRG, the BRG Partnership
Properties and the 1997-I Properties (collectively, the "BRG Assets") through
existing credit facilities.
The BRG Assets include proved oil and gas reserves of 102 billion cubic
feet of natural gas equivalents ("Bcfe"). BRG operates more than 70 percent of
600 currently producing oil and gas wells in approximately 140 fields. Daily
production from the properties net to the combined BRG interests averaged
approximately 18 million cubic feet of gas and 400 barrels of oil and natural
gas liquids in 1997. The most significant of the BRG Assets are concentrated in
East Texas, primarily in Freestone, Upshur, Rusk and Nacogdoches counties.
The descriptions of the agreement pursuant to which Seagull purchased
the BRG Assets set forth above are qualified by reference to the Purchase and
Sale Agreement which is an exhibit to the Current Report on Form 8-K and is
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS, PRO-FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits.
2.1 Purchase and Sale Agreement, dated as of March 30, 1998, by
and between Seagull E&P Inc. and the shareholders of BRG
Petroleum, Inc., et al. (incorporated by reference to Exhibit
10.6 to Quarterly Report on Form 10-Q for the quarter ended
March 31, 1998).
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Seagull Energy Corporation
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 thereunto duly authorized.
Date: June 4, 1998
SEAGULL ENERGY CORPORATION
By: /s/ William L. Transier
William L. Transier
Senior Vice President and
Chief Financial Officer
(Principal Financial
Officer)
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Exhibit Index
Page
2.1 Purchase and Sale Agreement, dated as of March 30, 1998,
by and between Seagull E&P Inc. and the shareholders
of BRG Petroleum, Inc., et al.(incorporated by
reference to Exhibit 10.6 to Quarterly Report on Form 10-Q
for the quarter ended March 31, 1998).
