SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 of 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 4, 1997
FORTUNE PETROLEUM CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 1-12334 95-4114732
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
515 W. Greens Road, Suite 720, Houston, Texas 77067
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (281) 872-1170
Registrant's telecopier number, including area code: (281) 872-1213
N/A
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
Fortune Petroleum Corporation ("Fortune"), effective June 4, 1997,
exercised its right under the February 13, 1995 exploration agreement between it
and Zydeco Exploration, Inc. to have all unexpended capital contributions
returned to Fortune. Under the terms of the agreement, Fortune has contributed a
total of $4,800,000 for the leasing of acreage, the payment of lease rentals,
the acquisition and processing of seismic data, and other specified related
expenses over leads and prospects developed by Zydeco in the Transition Zone and
Timbalier Trench areas of offshore Louisiana. At March 31, 1997, approximately
$2,238,000 remained unspent.
Fortune is entitled to the return of the balance of the unspent funds,
after a reserve has been established for any allowable expenses which may have
been incurred but unpaid prior to the time of Fortune's election. Fortune will
thereafter retain its current undivided 50% working interest in and to each of
the existing exploration prospects to which the exploration agreement currently
applies, subject to a possible reduction of interest under certain
circumstances. Fortune does not believe that any reduction in interest which
might occur as the result of the terms of the agreement will be material to any
individual exploration prospect, since it has never intended to retain a full
50% working interest in any of these prospects for drilling purposes.
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SIGNATURE
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.
FORTUNE PETROLEUM CORPORATION
By: /s/ Dean W. Drulias
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Dean W. Drulias
Executive Vice President and
General Counsel
Date: June 16, 1997
