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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
Date of Report (date of earliest event reported):
APRIL 14, 2000
3TEC ENERGY CORPORATION
(Exact name of Registrant as specified in its charter)
DELAWARE 0-21702 76-0624573
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(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
Two Shell Plaza, 777 Walker, Suite 2400, Houston, Texas 77002
(Address of principal executive offices and zip code)
(713) 821-7100
Registrant's telephone number, including area code
ITEM 5 - OTHER EVENTS
3TEC Energy Corporation ("3TEC") announced April 18, 2000, that it has
entered into an agreement to acquire properties located in the Glenwood and
White Oak fields in Gregg and Upshur Counties, Texas from an undisclosed private
seller. 3TEC will pay $55 million in cash for the acquisition.
The transaction has an effective date of January 1, 2000 and is expected to
be closed on or before May 31, 2000.
The April 18, 2000 press release is filed herewith as Exhibit 99.1, and is
incorporated herein by reference.
ITEM 7 - FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits. The following exhibits are filed herewith:
99.1 Press Release issued by the Registrant on April 18, 2000
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SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
3TEC Energy Corporation
(Registrant)
Date: April 25, 2000 By: /s/ Stephen W. Herod
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Stephen W. Herod
Executive Vice President and Chief
Financial Officer
INDEX TO EXHIBITS
99.1 Press Release dated April 18, 2000.
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Exhibit 99.1
P R E S S R E L E A S E
FOR IMMEDIATE RELEASE For further information
contact:
Steve W. Herod
713/821-7102
[email protected]
3TEC ENERGY CORPORATION ANNOUNCES
SIGNIFICANT EAST TEXAS PROPERTY ACQUISITION
HOUSTON, TEXAS, APRIL 18, 2000... 3TEC Energy Corporation ("3TEC") (NASDAQ
SmallCap: TTEN) announced today 3TEC has entered into an agreement for the
acquisition of properties located in East Texas from an undisclosed private
seller. The acquisition has a purchase price of $55 million payable in cash and
is subject to customary closing conditions and adjustments.
The properties are located in the Glenwood and White Oak fields in Gregg and
Upshur Counties, Texas and produce from the Cotton Valley formation. As of March
31, 2000, the properties being acquired had estimated total net proved reserves
of 69.2 Bcfe with a PV 10 value of $77 million, using constant pricing of $2.82
per Mcf for gas and $26.28 for oil. The estimated reserves are 92% gas on an
equivalent basis. Current net daily production from the properties is
approximately 9.6 MMcf of gas and 144 Bbls. of oil. Approximately 53% of the
reserves are classified as proved producing. 3TEC has identified over 100 proved
undeveloped locations and plans an active drilling program on the properties.
The transaction has an effective date of January 1, 2000 and closing is expected
to be on or before May 31, 2000. HP Associates represented the seller in this
transaction.
On a pro-forma basis, this acquisition will increase 3TEC's total proved
reserves as of March 31, 2000 to 308 Bcfe and increase daily production to 52
Mmcf of gas and 3,400 Bbls. of oil.
3TEC Energy Corporation is engaged in the acquisition, development, production
and exploration of oil and natural gas, with properties geographically
concentrated in East Texas and the Gulf Coast regions. 3TEC also owns
significant properties in the Permian and San Juan basins and in the Mid-
Continent region.
The information contained in this press release may contain projections,
estimates and other forward looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. Although the Company believes that its expectations are based on
reasonable assumptions, it can give no assurance that its goals will be
achieved. Important factors that could cause actual results to differ materially
from those included in the forward looking statements include the timing and
extent of changes in commodity prices for oil and gas, environmental risks,
drilling, producing and operating risks, risks related to exploration and
development, uncertainties about the estimates of reserves, government
regulation, competition and the ability of the Company to meet its stated
business goals.
