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
March 13, 1998
(Date of Report - Date of earliest event reported)
KERR-MCGEE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-3939 73-0311467
(State of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
Kerr-McGee Center
Oklahoma City, Oklahoma 73125
(Address of principal executive offices) (Zip Code)
(405) 270-1313
(Registrant's telephone number)
Item 5. Other Events
Kerr-McGee Chemical LLC closed the sale of its ammonium perchlorate
business to AMPAC, Inc., a subsidiary of American Pacific Corporation of Las
Vegas, Nevada.
Kerr-McGee Corporation and Gulf Canada Resources Limited announced that the
companies have signed a definitive agreement under which Gulf Canada Resources
Limited will sell its United Kingdom North Sea operations to Kerr-McGee.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
99.1 News Release dated March 13, 1998, announcing Kerr-McGee
completes the sale of its ammonium perchlorate business.
99.2 News Release dated March 16, 1998, announcing Kerr-McGee
signs a definitive agreement to purchase Gulf Canada
Resources Limited's United Kingdom North Sea operations.
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.
KERR-MCGEE CORPORATION
By: (Deborah A. Kitchens)
Deborah A. Kitchens
Vice President and Controller
Dated: March 18, 1998
EXHIBIT INDEX
Exhibit No. Description
99.1 News Release dated March 13, 1998 announcing
Kerr-McGee completes the sale of its
ammonium perchlorate business.
99.2 News Release dated March 16, 1998 announcing
Kerr-McGee signs a definitive agreement to
purchase the United Kingdom North Sea
operations from Gulf Canada Resources
Limited.
Exhibit 99.1
Kerr-McGee Completes Sale of Ammonium Perchlorate Business
OKLAHOMA CITY (March 13, 1998) -- Kerr-McGee Chemical LLC today closed the
sale of its ammonium perchlorate business to AMPAC, Inc., a subsidiary of
American Pacific Corp. of Las Vegas, Nev. Kerr-McGee Chemical is wholly owned by
Kerr-McGee Corp. (NYSE: KMG).
The transaction is part of Kerr-McGee's strategy of focusing on its growing
worldwide oil and gas exploration and production operations and titanium dioxide
pigment business. With the sale of the ammonium perchlorate business, the
company completes its exit from the commercial manufacture of this oxidizer for
the solid fuels used in space-shuttle launches and military missiles.
Kerr-McGee is an Oklahoma City-based energy and chemical company with
assets of $3.1 billion.
Exhibit 99.2
Gulf Sells U.K. North Sea Assets to Kerr-McGee for Cdn $590 Million
OKLAHOMA CITY (March 16, 1998) - Gulf Canada Resources Limited and
Kerr-McGee Corporation (NYSE: KMG) announced today that the companies have
signed a definitive agreement under which Gulf will sell its United Kingdom
North Sea operations to Kerr-McGee for Cdn $590 million in cash. The effective
date of the transaction is March 31, 1998, and the companies expect the
transaction to be complete by mid-May 1998, subject to regulatory approval.
Gulf Canada President and CEO Dick Auchinleck said, "The proceeds from the
sale of our U.K. North Sea assets will be used to repay debt and goes a long way
to meeting our $850 million debt reduction target aimed at strengthening Gulf's
balance sheet."
Luke R. Corbett, chairman and CEO of Kerr-McGee, added, "The acquisition of
these North Sea assets will add a currently identified proved and potential
reserve base of 100 million BOE, with upside potential. The geographic synergies
between Kerr-McGee's and Gulf Canada's portfolio provide obvious enhancement. We
are particularly pleased to be acquiring an additional 21.5% interest in our
operated Gryphon field, where we have further exploitation work planned. In
terms of net production, Gulf Canada's 19,000 barrels per day will increase our
current North Sea production by 80% to over 42,000 barrels per day. Projects now
under way will cause this rate to increase by year-end, providing a strong base
for further exploration and development opportunities."
The assets to be sold represent all of Gulf's holdings in the U.K. North
Sea involving some 28 licenses, including interests in the Wytch Farm, Gryphon,
Andrew and Ross fields.
CONTACTS:
Kerr-McGee Corporation Gulf Canada Resources Limited
Rick Buterbaugh Investor Relations and Public Affairs
(405) 270-3561 (303) 813-3800
