SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): November 18, 1998
Commission File Number: 0-14096
FORELAND CORPORATION
(Exact Name of Registrant as Specified in its Charter)
NEVADA 87-0422812
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
143 UNION BOULEVARD, SUITE 210
LAKEWOOD, COLORADO 80228
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(Address of Principal Executive (Zip Code)
Offices)
Registrant's Telephone Number, including Area Code:
(303) 988-3122
FORMER ADDRESS: 12596 WEST BAYAUD, SUITE 300
LAKEWOOD, CO 80228
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(Former name, former address, and formal fiscal year, if changed since
last report)
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ITEM 5. OTHER EVENTS
Foreland Corporation announced on November 18, 1998, that interim revenue and
earnings results of its recently acquired refining and transportation
operations. The acquisition of two Nevada refineries and a transportation
company closed August 12, 1998, with an effective date of June 1, 1998.
In anticipation of exercising its option to purchase the refining operations,
Foreland arranged to increase refinery throughput by approximately 1,000 barrels
of oil per day to about 2,300 barrels per day. The combination of increased
throughput (primarily from Foreland's equity oil production), decreased overhead
and seasonal sales resulted in earnings, before interest, taxes, depreciation,
and amortization (EBITDA) of $378,000 on revenues of about $4.6 million from the
acquired refinery and transportation operations for the months of June and July
1998, which will be accounted for as a reduction in the purchase price. August
and September refinery and transportation division revenues of approximately
$4.2 million resulted in refinery and transportation division EBITDA of
approximately $456,000.
Foreland projects that post acquisition revenues from its refinery and
transportation division will contribute about $9.2 million to Foreland's
consolidated revenues for the last five months of 1998 as compared to total
company revenues of $2.3 million for all of 1997. Notwithstanding the earnings
of the refinery and transportation division, Foreland, which incurs substantial
expenses in its exploration activities, expects to continue to report a net loss
for 1998 on a consolidated basis.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
Dated: November 20, 1998
FORELAND CORPORATION
By /s/ N. Thomas Steele, President
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