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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
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Date of Report (Date of earliest event reported):
December 15, 1997
SANTA FE ENERGY RESOURCES, INC.
(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 1-7667 36-2722169
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation) Identification No.)
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1616 South Voss Road, Suite 1000
Houston, Texas 77057
(Address of principal executive offices) (Zip Code)
(713) 507-5000
(Registrant's telephone number, including area code)
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Item 5. Other Events
On December 15, 1997, Santa Fe Energy Resources, Inc. ( the "Company"),
announced that the Board of Directors authorized the repurchase of up to $50
million of the Company's Common Stock, and that the Board of Directors approved
a capital expenditure budget for 1998 of approximately $277 million. The press
release announcing these developments is filed as Exhibit 99.1 to this Current
Report on Form 8-K, and the contents of such Exhibit are incorporated herein by
reference.
Item 7. Exhibits
Exhibit 99.1 -- Press Release dated December 15, 1997.
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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 by the
undersigned thereunto duly authorized.
SANTA FE ENERGY RESOURCES, INC.
By: /s/ David L. Hicks
_______________________________
David L. Hicks
Vice President Law and General Counsel
Date: December 17, 1997
Exhibit 99.1
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SANTA FE ENERGY RESOURCES, INC. news RELEASE
1616 South Voss, Suite 1000
Houston, Texas 77057 Contact: Kathy E. Hager
Phone: (713) 507-5000 (713) 507-5315
SANTA FE ENERGY
ANNOUNCES STOCK PURCHASE
Houston, Texas -- December 15, 1997
Santa Fe Energy Resources (NYSE:SFR) today announced that the Board of Directors
has authorized the repurchase of up to $50 million of the Company's common
stock. Based on the current market value of the common stock, this would allow
the Company to repurchase about 4 percent of the approximately 103 million
shares outstanding.
"We believe that our common stock is undervalued given the Company's near term
production growth and the substantial long term growth potential represented by
our exploration program," said James L. Payne, Chairman, and CEO of the Company.
He continued, "The stock repurchase is an attractive investment and is a means
of building shareholder value."
The Board of Directors also approved a capital expenditure budget for 1998 of
approximately $277 million. The Company believes its operating cash flow and
existing credit facility will be sufficient to meet capital and operating
requirements in 1998 and any share repurchases. The purchases are to be made
from time to time in the open market or directly from shareholders at prevailing
market prices. Shares repurchased will be available for use under the Company's
employee benefit and stock option plans to minimize dilution to existing
shareholders.
Santa Fe Energy Resources is an independent oil and gas exploration and
development company with headquarters in Houston, Texas. It has production in
the United States, Argentina and Indonesia with additional exploration
activities in other regions of the world. Its common stock is traded on the New
York Stock Exchange under the symbol SFR.
This news release may contain forward-looking statements within the meaning of
the Securities Litigation Reform Act. These projections and statements reflect
the company's current views with respect to future events and financial
performance. Actual results could differ materially from those projected as a
result of certain factors. A discussion of these factors is included in the
Company's periodic reports filed with the Securities and Exchange Commission
including its Annual Report on Form 10-K for the year ended December 31, 1996.
