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):
December 11, 1995
__________________________________________
XCL LTD.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or other Jurisdiction of Incorporation)
1-10669 51-0305643
(Commission File Number) (I.R.S. Employer
Identification Number)
110 Rue Jean Lafitte
Lafayette, Louisiana 70508
(Address of Principal Executive Offices)
318-237-0325
(Registrant's Telephone Number, Including Area Code)
Item 5. Other Events.
XCL Ltd. (the "Company") announced that it has reached
agreement with Cody Energy, Inc. of Denver, Colorado to sell its
interest in the Mestena Grande Field in South Texas for a price
of $4.3 million, with the sale effective September 1, 1995. The
closing is scheduled for December 29, 1995.
M.W. Miller, Chairman of XCL, stated that "We are very
satisfied with the terms of this transaction. The sale is yet
another step in XCL's planned divestiture of its U.S. properties
in order to focus exclusively on its efforts in the People's
Republic of China. Proceeds from this divestiture will be
applied first as a prepayment of the $2 million principal payment
due January 1, 1996, with the remaining proceeds applied to the
remaining unpaid balance of the Company's outstanding
indebtedness."
Marsden W. Miller, Jr., Chairman, stated, "The results of the
testing of the C-2 well, which exceeded our expectations, are
most encouraging for the continued development and exploration of
our contract area in the Bohai Bay and for the future of our
overall operations in China. The producing sands are higher than
we expected, indicating the possibility of a larger productive
area. Additionally, the sand conditions in the C-2 well are
significantly better than the high quality conditions already
encountered in the C-1 well, suggesting the possibility of
continued improvement in reservoir quality as we move further off
structure.
"We plan to commence a development drilling program on the C-1
structure during the spring of 1995, and are well advanced in the
process of arranging debt financing for this project. Production
could commence as early as the fourth quarter of 1995. We also
plan to drill at least two additional exploratory wells on the
Zhao Dong Block next year, commencing in the first quarter.
"With the success of the C-2 well, we will now pursue
exploration, production and other energy-related projects which
we have identified elsewhere in China."
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.
XCL LTD.
December 15, 1995 /s/ David A. Melman
_________________________ By:_______________________________
Date David A. Melman
Executive Vice President
