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: December 23, 1997
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 (281) 496-5000
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Press Release dated December 23, 1997 - Reading &
Bates announces that its subsidiary, Reading &
Bates Development Company, has drilled an oil
discovery on East Breaks 643 "North Boomvang" and
provides additional drilling updates.
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
Executive Vice President,
Finance and Administration
(Principal Financial and
Accounting Officer)
Dated: December 23, 1997
EXHIBIT 99
FOR IMMEDIATE RELEASE Contact: Mr. Charles R. Ofner
(281) 496-5000
Reading & Bates Development Co. Announces Discovery on East Breaks
643 And Provides Additional Drilling Update
December 23, 1997, Houston, Texas....Reading & Bates Corporation (RB-NYSE)
announced that its wholly owned subsidiary, Reading & Bates Development Co.,
(Devco) has drilled an oil discovery on its East Breaks 643 "North Boomvang"
prospect in the U.S. Gulf of Mexico. Devco owns a 62.5% working interest
in the well and Norcen Explorer, Inc., a wholly owned subsidiary of Norcen
Energy Resources Limited (NCN-TSE), participated for the remaining 37.5%
working interest.
The well, which is located on the flank of a salt induced structure,
was successfully drilled in 3,668 feet of water to 12,312 feet measured
depth. Combined results from the original and sidetracked wellbores
confirmed a sand containing a 350 foot column of 31 degree API gravity oil
averaging 40 feet to 50 feet in pay thickness over an extended area.
Based on seismic amplitudes that extend updip, Devco estimates the reserve
potential to be 35 to 45 million barrels of oil and believes that additional
untested potential exists in the prospect. The well has been suspended as a
potential producer pending a decision to proceed with commercial development.
Devco is evaluating the data gathered from the "North Boomvang" prospect and
is conducting engineering and technical work on a plan for a co-development
of this prospect with the previously announced "East Boomvang" discovery
which has potential reserves of 65 to 70 million barrels of oil equivalent.
Devco and Norcen intend to proceed with additional drilling in the prospect
area that consists of Federal offshore oil and gas leases covering the
"North Boomvang", "East Boomvang" and "East Bequia" prospects. The
original lessee retained an overriding royalty interest in the prospect area
that may be converted to a working interest after certain production levels
are met. Upon completion of operations at "North Boomvang", the M. G. Hulme,
Jr. will move to "East Boomvang" to drill a third well.
Paul B. Loyd, Jr., Reading & Bates Chairman, Chief Executive Officer and
President of Reading & Bates Corporation, stated, "We are pleased to have
again encountered significant amounts of hydrocarbons in the 'Boomvang'
area, and we are optimistic that `North Boomvang' combined with the
previously announced 'East Boomvang' discovery, will result in a commercial
development."
Devco also announced today it will recognize unsuccessful exploratory
expenses of approximately $14.1 million for the fourth quarter of 1997. The
charges are associated with dry holes on Mississippi Canyon Block 154, Ship
Shoal Block 365 and Ewing Bank Block 829. Total expenses for Devco,
inclusive of unsuccessful exploratory costs, for the fourth quarter are
projected to be approximately $16.7 million.
Reading & Bates Corporation is a New York Stock Exchange listed company,
providing offshore drilling services throughout the world. Its wholly
owned subsidiary, Reading & Bates Development Co., engages in the business
of acquiring interests in offshore oil and gas properties and thereby
participates in reservoir risk sharing. Through its TOPS joint venture, a
full range of field development contracting alternatives is offered to oil
and gas companies, including such services as drilling, marine and subsea
construction and production services. In July Reading & Bates and Falcon
Drilling Company Inc. announced that they have agreed to combine their
companies into a new company--R&B Falcon Corporation--which will operate the
world's largest offshore drilling fleet.
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