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) July 2, 1997
CROWN ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
UTAH
(State or other jurisdiction of
Incorporation or Organization)
0-19365 87-0368981
Commission file number (I.R.S. Employer
Identification No.)
215 South State, Suite 550
Salt Lake City, Utah 84111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (801) 537-5610
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Item 1. Changes in Control of Registrant
Not applicable.
Item 2. Acquisition or Disposition of Assets
On July 2, 1997, the Company entered into a stock purchase agreement
with Road Runner Oil, Inc. ("RRO") to sell 100% of its interest in
its wholly-owned subsidiary, Gavilan Petroleum, Inc. ("Gavilan").
Gavilan operated oil and naural gas properties. Under the terms of
the sale, the Company transferred to RRO all of the issued and
outstanding stock of Gavilan and in exchange received $25,000 at
closing and a promissory note under which it will be paid $50,000
within 30 days of closing; $25,000 within 120 days of closing; and
the remaining $50,000 within 180 days of closing. The note is secured
by a pledge of the Gavilan stock. The price was negotiated at arms
length between the Company and RRO. The Company anticipates
recognizing a loss on the Gavilan sale of approxmiately $950,000.
The Company's primary focus will be the production of asphalt and
other products from oil sands.
Item 3. Bankruptcy or Receivership
Not applicable.
Item 4. Changes in Registrant's Certifying Accountant
Not applicable.
Item 5. Other Events
Not applicable.
Item 6. Resignation of Registrant's Directors
Not applicable.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
Pro Forma Financial Information
The pro forma effects of the transaction for the year ended
December 31, 1996 and for the three months ended March 31,
1997 are as follows: Total assets would have been reduced from
$4,591,374 and $4,510,632 to $3,468,599 and $3,415,406,
respectively, a decrease of $1,122,775 (24%) and $1,095,226
(24%). Total liabilities would have been reduced from
$1,120,118 and $1,037,783 to $923,019 and $861,706,
respectively, a decrease of $197,099 (18%) and $176,077 (17%).
Revenues would have decreased from $224,855 and $50,503 to
$11,226 and $0, respectively, a decrease of $213,629 (95%) and
$50,503 (100%). Net loss before income taxes would have
increased from a loss of $550,630 for the year ended December
31, 1996 and a loss of $83,292 for the three months ended
March 31, 1997 to a loss of $45,818 and a loss of $66,951,
respectively, an increase of $104,812 (19%) and $16, 341
(20%).
Item 8. Changes in Fiscal Year
Not applicable.
Item 9. Sales of equity securities pursuant to Regulation S
Not applicable.
SIGNATURES
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 hereunto duly authorized.
CROWN ENERGY CORPORATION
Date: July 17, 1997 By: /s/ Rich Rawden
Rich Rawdin, Vice President
