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) October 3, 1997
__________________________________________
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.
On October 7, 1997, the Company announced that it and its
partners, China National Oil and Gas Exploration and Development
Corporation (CNODC) and Apache Corporation, have completed
production tests at the C-4 wildcat well, a new field discovery,
in the 49,000-acre Zhao Dong Block, Bohai Bay, the People's
Republic of China. Eight zones tested at a combined daily rate
of 15,359 barrels of oil plus 6,107 MCF of associated gas, while
a ninth zone flowed at a rate of 4,600 MCF of gas and 14 barrels
of condensate per day. The zones tested contained approximately
400 feet of net pay. API gravity ranged from 28 to 38 degrees.
The well was drilled to a total depth of 8,993 feet and
tested a total of 11 zones between the depths of 5,955 feet and
7,710 feet in the Mesozoic and Tertiary (Shahejie) formations.
Two zones were only partially tested because of mechanical
limitations. An additional Shahejie zone, thought to be
productive based on hydrocarbon shows encountered during drilling
as well as electric log indications, could not be tested because
of mechanical problems.
The C-4 well was drilled on a previously untested
structure, and discovered higher quality crude oil at depths
greater than previously encountered on the block. It is the
first well in this area to test oil from Mesozoic-age sediments.
Plans for an appraisal drilling program are being
considered.
XCL and Apache Corporation (NYSE: APA), the operator, each
have a 50 percent interest in the Foreign Contractor's share of
the Zhao Dong Block.
On October 15, 1997, the Company announced that the funds
received by the Company in its May 20, 1997 placement by
Jefferies & Company, Inc. of $75,000,000 of 13.50 percent Senior
Secured Notes due May 1, 2004 (the "Notes"), which were held in
escrow in the Principal Account (approximately $62,000,000), have
today been released from escrow. The remaining funds from the
placement ($14,625,000) being held in escrow in the Capitalized
Interest Account will be released for payment of the interest due
on the Notes on November 1, 1997, May 1, 1998, and November 1,
1998. Upon the release of the funds from escrow, the Company's
outstanding debt (approximately $26,400,000) was paid, and the
Notes are now the only long term debt of the Company, excluding
limited recourse debt. The remaining funds will be used in the
Company's China operations and for working capital purposes.
Item 9. Sales of Equity Securities Pursuant to Regulation S.
On October 3, 1997, the Company sold 360,000 shares of
Common Stock, through the exercise of stock purchase warrants, to
Bank Hofmann AG of Zurich, Switzerland. The warrants were
exercisable at $0.125 per share and the Company received $45,000
in payment of the exercise price. This transaction is intended
to qualify for the exemption from registration provided by
Regulation S of the Securities Act of 1933, as amended.
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.
October 17, 1997 /s/ Lisha C. Falk
_________________________ By:_______________________________
Date Lisha C. Falk
Secretary
