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
Date of Report: May 15, 1995
READING & BATES CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5587 73-0642271
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
901 Threadneedle, Suite 200, Houston, TX 77079
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 496-5000
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated May 15, 1995
- Mobil Exploration & Producing U.S.
Inc. signs letter of intent with
Enserch Exploration, Inc.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed
on its behalf of the undersigned thereunto duly authorized.
READING & BATES CORPORATION
By /s/T. W. Nagle
T. W. Nagle
Vice President & Chief
Financial Officer
Dated: May 15, 1995
FOR IMMEDIATE RELEASE: Contact: Mr. Charles R. Ofner
(713) 496-5000
Houston, Texas...May 15, 1995...Reading & Bates
Corporation (NYSE; RB) announces that Mobil Exploration &
Producing U.S. Inc., an affiliate of Mobil Corporation, has
signed a letter of intent to purchase a 40% interest in the
Green Canyon 254 Allegheny project, subject to mutually
acceptable consummation documents. Financial terms of the
agreement are confidential. Last month, Reading & Bates signed
a letter of intent to purchase an approximate 20% interest in
the project. Enserch Exploration, Inc. will retain a 40%
working interest and remain operator of the project.
Two wells and a sidetrack have been drilled on this
project to date, and another confirmation well will be drilled
in June of this year. An earlier announcement by Reading &
Bates outlined the letter of intent with Enserch Exploration,
Inc. which included provisions for Reading & Bates to drill
the development wells with the semisubmersible M. G. HULME, JR.
and convert RIG 41, or an equivalent second-generation semi-
submersible drilling unit, to a floating production vessel
(FPV) for the field's production.
DeGolyer and MacNaughton (D&M), independent petroleum
engineers, have recognized gross reserves at the Allegheny
project to be 86 million barrels of oil and 149 billion cubic
feet of natural gas, of which 50 million barrels of oil and 102
billion cubic feet of gas are in the proven category. No
reserves on this project were recognized by D&M at December 31,
1994. "We are encouraged by D&M's initial assessment of
reserves at Green Canyon, which was based on the drilling done
so far," said David W. Biegler, Chairman and Chief Executive
Officer of Enserch Exploration.
At the May 10, 1995 Gulf of Mexico Lease Sale, Enserch
Exploration, on behalf of Green Canyon 254 partners, submitted
the highest bid on six blocks within 10 miles of the Green
Canyon production facility proposed location. The blocks are
expected to be awarded by the Minerals Management Service
within 90 days.
Paul B. Loyd, Jr., Chairman and Chief Executive Officer
of Reading & Bates Corporation stated, "We are very pleased to
see Mobil as a partner in the Green Canyon 254 Allegheny
project, and we believe their participation further validates
the plans for field development worked out with Enserch
Exploration. We were also quite pleased with the results of
the lease sale, and we feel that this project will prove to be
the first of several similar projects in the Gulf of Mexico and
other parts of the world."
Reading & Bates is a New York Stock Exchange listed
company, providing offshore drilling services throughout the
world. Its wholly owned subsidiary, Reading & Bates
Development Co., provides technical, construction and project
management services and floating production systems to the
upstream offshore oil and gas industry worldwide.
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