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 (date of earliest event reported) August 18, 1998
REMINGTON OIL AND GAS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-11516 75-2369148
(Commission File Number) (IRS Employer Identification No.)
8201 Preston Road, Suite 600
Dallas, Texas 75225-6211
(Address of principal executive offices) (Zip Code)
(214) 210-2650
(Registrant's telephone number, including area code)
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Item 5. Other Events
A judgment in the litigation between Phillips Petroleum Company
("Phillips Petroleum") and Remington Oil and Gas Corporation
("Remington" or the "Company") was rendered by the trial court on
August 18, 1998. Under the judgment, Phillips Petroleum has been
awarded damages of $10.9 million together with interests and costs. The
judgment has five components. Phillips Petroleum's claims for double
damages and lease cancellation were dismissed. Remington's counterclaim
against Phillips Petroleum was dismissed. Phillips Petroleum's claim to
share in the profits from the oil pipeline shipments from South Pass 89
was also dismissed. Phillips Petroleum's claim that it is entitled to
an overriding royalty in months that net profits were not achieved was
upheld, and an award of $1,581,000 through January 1996 was granted. On
the issue of allocation of a 1990 settlement amount received by the
Company from Texas Eastern Transmission Corporation ("TETCO"), Phillips
Petroleum was awarded an additional $9,276,432. The court further ruled
that Phillips Petroleum can look only to actual production for its Net
Profits interest, and that federal law should apply.
In the lawsuit, Phillips claimed that pursuant to its 33% Net
Profits interest in South Pass Block 89, it was entitled to receive an
overriding royalty for months in which net profits were not achieved;
that an excessive oil transportation fee was being charged to the Net
Profits account; and that the entire $69.6 million lump sum cash
payment received by the Company in a 1990 settlement of previous
litigation with TETCO should have been credited to the Net Profits
account instead of the $5.8 million that was credited. On the latter
claim, Phillips Petroleum alleged damages in excess of $21.5 million,
while on the first two claims, Phillips Petroleum alleged aggregate
damages of several million dollars. Phillips Petroleum further
contended that it was entitled to double damages and cancellation of
the farmout agreement that created the Net Profits interest.
Neither party filed a motion for a new trial. Remington believes
that the judgment will be made final by the trial court and that
Phillips Petroleum will appeal the final judgment. The Company
continues to review the trial court's ruling and has not made a
decision on whether it to will appeal any part of the judgment.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Company has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Date: September 4, 1998
REMINGTON OIL AND GAS CORPORATION
By: /S/ James A. Watt
-------------------------------------
James A. Watt
President and Chief Executive Officer
