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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
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)
July 1, 1997
ENSERCH Corporation
(Exact name of Registrant as specified in its charter)
Texas 1-3183 75-0399066
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
ENSERCH Center, 300 S. St. Paul, Dallas, Texas 75201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including Area Code: 214-651-8700
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ITEM 5. Other Events
Set forth below in its entirety is a News Release issued by
Enserch Exploration, Inc. on July 1, 1997.
ENSERCH EXPLORATION AND ENTERPRISE OIL
ENTER DEEPWATER GULF OF MEXICO VENTURE
DALLAS, TEXAS (July 1, 1997) -- Enserch Exploration,
Inc. (NYSE--EEX) and Enterprise Oil (NYSE--ETP) have
agreed to participate in an exploration venture to
evaluate EEX's portfolio of offshore blocks in the deep
water of the Gulf of Mexico.
The agreement, covering approximately 80 blocks
primarily in the areas of Garden Banks, Green Canyon and
Mississippi Canyon, is subject to government approvals
and certain pre-emption rights on some of the blocks.
Excluded from the agreement are reserves at Green Canyon
254 (Allegheny Project) and reserves and production
facilities at Garden Banks 388 (Cooper Project)
Under the agreement, approved by the Boards of each
company, Enterprise will pay $65 million, which will be
used to fund EEX's exploration drilling costs and in
return receive an immediate assignment of 50% of EEX's
deepwater portfolio. A further $35 million to be funded
by Enterprise is contingent on drilling successes and the
announcement of a commercial development. Enterprise
will immediately become a full partner in the relevant
Joint Operating Agreements.
The companies intend to conduct a 10 to 12 well
drilling program over the next two and one-half years
utilizing two rigs capable of drilling in 3,300 feet of
water. The rigs are under long-term contract to EEX at
below market day rates. The first well has already been
spudded on the Llano prospect in Garden Banks 386.
"Bringing a partner into our deep water program
substantially accelerates the evaluation of a potentially
valuable asset by several years while substantially
reducing our drilling costs. As importantly, Enterprise
brings a wealth of experience and a culture that
complements our efforts to evaluate this inventory
quickly," said Tom Hamilton, Chairman and President and
Chief Executive Officer of Enserch Exploration.
Dr. Pierre Jungels, Chief Executive of Enterprise
Oil commented: "This agreement will provide us with a
substantial interest in the highly prospective deep water
area of the Gulf. As a wide portfolio of interests
covering some 80 blocks in the deeper waters of the Gulf,
it also complements last year's deal with Pennzoil which
gave us significant exploration opportunities primarily
in the shallower waters of the Gulf. There we have
already made an important discovery on the Garden Banks
161 concession. A particularly appealing feature of this
agreement is the access to the two rigs at attractive
rates which will allow us to immediately commence our
drilling program."
Enserch Exploration is one of the largest
independent natural gas and oil exploration and
production companies in the U.S. Active in the drilling
of exploratory and development wells, the operation of
producing wells and the marketing of natural gas and oil,
the Company's areas of focus are East Texas, the Deep
Water of the Gulf of Mexico, the Continental Shelf of the
Gulf of Mexico and International. Natural gas reserves
at January 1, 1997 were 1.2 trillion cubic feet of
natural gas and 59.2 million barrels of oil and
condensate.
Enterprise Oil is one the world's leading
independent oil and gas exploration and production
companies, listed on the London and New York Stock
Exchanges. It currently has a production rate of about
250,000 barrels of oil equivalent (BOE) per day, which is
due to rise to 320,000 BOE per day in 1999. Its
recoverable reserves exceed one billion barrels of oil
equivalent. The Company's main areas of activity are the
UK North Sea, where it is operator of the important
Nelson oil field; Norway; Italy; the U.S. Gulf of Mexico;
Ireland, the Black Sea and Peru.
For further information, please contact:
Enserch Exploration, Inc.:
Benjamin A. Brown
Vice President, Financial Relations
Dallas: 214/692-4303
John A. MacDonald
Director, Investor Relations
Dallas: 214/692-4345
Enterprise Oil plc:
Andrew Shilston
Finance Director
London: 171/925-4476
Ray Dafter
Director, Corporate Affairs
London: 171/925-4160
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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.
ENSERCH Corporation
Date: July 3, 1997 By: /s/ J. W. Pinkerton
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Vice President
