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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) NOVEMBER 17, 1997
ZYDECO ENERGY, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-22076 76-0404904
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1710 TWO ALLEN CENTER, 1200 SMITH STREET
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (713) 659-2222
NO CHANGE
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On November 17, 1997, Zydeco Energy, Inc. ("Zydeco") announced its
results of operations for the three months and nine months ended September 30,
1997. In addition, on November 20, 1997, Zydeco issued its Report to
Shareholders describing several important events that occurred during the
quarter ended September 30, 1997.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
20.1* Announcement of Results of Operations for the Three Months
and Nine Months Ended September 30, 1997
20.2* Report to Shareholders for the Quarter Ended September 30,
1997
* Exhibit filed herewith.
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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 thereunto duly authorized.
ZYDECO ENERGY, INC.
/s/ SAM B. MYERS, JR.
--------------------------------
Sam B. Myers, Jr.
Chief Executive Officer
Dated: November 26, 1997
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EXHIBIT 20.1
[LOGO OF ZYDECO APPEARS HERE] NEWS RELEASE
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For Immediate Release
Contact: Mr. Sam Myers, Jr.
Chief Executive Officer
(713) 659-2222
ZYDECO ENERGY ANNOUNCES THIRD QUARTER RESULTS
Houston, Texas - Monday, November 17, 1997 - Zydeco Energy, Inc. (Nasdaq:
ZNRG) announced today its results of operations for the three months and nine
months ended September 30, 1997. The Company reported a net loss of $1,957,000,
or $0.24 per share, for the three months ended September 30, 1997, resulting in
a net loss of $4,224,000, or $0.59 per share, for the nine months ended
September 30, 1997. The increase in net loss was primarily due to the level of
geophysical expenses incurred in the third quarter period ($1,425,000 or $0.17
per share) and year-to-date period ($2,420,000 or $0.34 per share) as the
Company completed its seismic data acquisition phase with respect to its West
Cameron Seismic Project. The Company uses the successful efforts method of
accounting, which generally requires that geological and geophysical costs be
expensed when incurred. The Company had reported a net loss of $895,000, or
$0.14 per share, and $1,487,000, or $0.25 per share, for the three and nine
month periods ended September 30, 1996, respectively.
The Company reported operating revenues of $438,000 and operating expenses
of $2,478,000 for the three months ended September 30, 1997, compared to
operating revenues of $461,000 and operating expenses of $1,404,000 for the
three months ended September 30, 1996. Operating revenues of $1,069,000 and
operating expenses of $5,473,000 for the nine months ended September 30, 1997,
compared to operating revenues of $1,066,000 and operating expenses of
$2,745,000 for the nine months ended September 30, 1996. Weighted average common
stock and common stock equivalents outstanding were 8,171,000 shares, 6,472,000
shares, 7,123,000 shares, and 6,027,000 shares for the three months and nine
months ended September 30, 1997, and 1996, respectively.
On November 5, 1997, Mr. W. Kyle Willis resigned as Vice President,
Treasurer, Secretary, and Chief Financial Officer of the Company in order to
join an oilfield equipment and services company. Mr. Stephen P. Jacobs was
elected Chief Accounting Officer and Secretary of the Company. Mr. Willis will
continue to assist the Company in financial and reporting matters as a
consultant.
This news release may contain forward-looking statements that are based on
assumptions that in the future may prove not to have been accurate. Those
statements, and Zydeco Energy's business and prospects, are subject to a number
of risks including the volatility of oil and gas prices, environmental risks,
operating hazards and risks, risks associated with natural gas processing
plants, risks related to exploration and development drilling, uncertainties
about estimates of reserves, competition, government regulation, and the ability
of the Company to implement its business strategy. These and other risks are
described in the Company's reports that are available from the United States
Securities and Exchange Commission.
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ZYDECO ENERGY ANNOUNCES THIRD QUARTER RESULTS
(CONTINUED)
Zydeco Energy, Inc. is an independent oil and gas exploration company
engaged in acquiring leases, drilling and producing reserves utilizing focused
geologic concepts and advanced 3D seismic and computer-aided (CAEX) exploration
technology, including enhanced structural and stratigraphic depth imaging and
attribute analysis. Zydeco's efforts are focused primarily in the Louisiana
Transition Zone and in the Timbalier Trench.
# # #
2
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EXHIBIT 20.2
[LOGO OF ZYDECO ENERGY, INC. APPEARS HERE]
THIRD QUARTER REPORT
SEPTEMBER 30, 1997
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
ZYDECO ENERGY, INC.
(UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER ENDED SEPTEMBER
30, 30,
---------------- ----------------
1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
Operating Revenues $ 438 $ 461 $ 1,069 $ 1,066
Operating Costs and Expenses (2,478) (1,404) (5,473) (2,745)
Interest Income, net 83 48 180 192
------- ------- ------- -------
Net Loss $(1,957) $ (895) $(4,224) $(1,487)
======= ======= ======= =======
Per Equivalent Share $ (.24) $ (.14) $ (.59) $ (.25)
======= ======= ======= =======
Average Outstanding Equivalent Shares 8,171 6,472 7,123 6,027
======= ======= ======= =======
</TABLE>
CONDENSED CONSOLIDATED BALANCE SHEETS
ZYDECO ENERGY, INC.
(IN THOUSANDS)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1997 1996
------------- ------------
(Unaudited)
<S> <C> <C>
Current Assets $ 16,878 $ 8,232
Oil and Gas Properties, net 339 533
Equipment and Software, net 807 839
Other Assets 871 308
-------- -------
Total Assets $ 18,895 $ 9,912
======== =======
Current Liabilities $ 2,160 $ 3,572
Shareholders' Equity 16,735 6,340
-------- -------
Total Liabilities and Equity $ 18,895 $ 9,912
======== =======
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
ZYDECO ENERGY, INC.
(UNAUDITED AND IN THOUSANDS)
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
--------------------------
1997 1996
------------- ------------
<S> <C> <C>
Cash Flows:
Operating Activities $ (24) $ (692)
Investing Activities (6,625) 6,862
Financing Activities 13,943 (334)
-------- -------
Increase (Decrease) in Cash $ 7,294 $ 5,836
======== =======
Cash and Equivalents, End of Period $ 14,201 $ 6,353
======== =======
</TABLE>
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DEAR SHAREHOLDERS AND FRIENDS,
Several important events occurred during our third quarter ending September
30, 1997:
. July 1--Acquired Wavefield Image, Inc. including ownership of a
pending patent, "Sampling and Reconstruction of Propagating
Wavefields".
. July 6--Completed the field recording of seismic data for the West
Cameron Seismic Project.
. August 13--Completed quick look standard processing of the seismic
data for the West Cameron Seismic Project.
. August 21--Completed an offering of 3,680,000 shares of common stock
providing the Company proceeds of $14,060,062.
. September 15--Commenced installation of the new Hewlett
Packard/Convex SPP2000, a 32 processor supercomputer.
The Company realized a significant cost savings in the field recording of
seismic data in West Cameron by the utilization of the technology described in
the pending patent, "Sampling and Reconstruction of Propagating Wavefields" by
Dr. Norman Neidell. After processing the data acquired at West Cameron in the
fall of 1996, the Company concluded that the resolution and imaging of the
data was better than that obtained by using standard techniques. Upon
acquiring Wavefield Image, Inc., the owner of the patent, Dr. Neidell joined
the Company as Vice President, Innovations. Two of Dr. Neidell's experienced
associates also joined the Company providing us with stratigraphic
interpretation abilities, which we believe will be invaluable for the West
Cameron Seismic Project. The Company intends to further advance and exploit
Dr. Neidell's technology.
Although the Company began initial interpretation of the seismic data as it
became available, the conclusive interpretation is awaiting the completion of
processing using Dr. Neidell's technology. This processing began in October
when the new computer from Hewlett Packard was installed and will continue
through January 1998. The data quality is excellent and numerous potential
prospects are being evaluated. We intend to further process and interpret the
individual potential prospects before leasing or drilling. We expect to
commence leasing activities in the first quarter of 1998 and to begin drilling
by mid-summer.
On November 5, 1997, Mr. W. Kyle Willis resigned as Vice President, Treasurer,
Secretary, and Chief Financial Officer of the Company in order to join an
oilfield equipment and services company. Mr. Stephen P. Jacobs was elected
Chief Accounting Officer and Secretary of the Company. Mr. Willis will
continue to assist the Company in financial and reporting matters as a
consultant.
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Our financial position is strong as we continue to evaluate and develop our
West Cameron Seismic Project. Next year should be an exciting one for our
company.
Sincerely,
/s/ EDWARD R. PRINCE, JR.
Edward R. Prince, Jr.
Vice Chairman
November 20, 1997
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DIRECTORS AND EXECUTIVE OFFICERS
Sam B. Myers, Jr. Chairman of the Board and Chief Executive Officer
Edward R. Prince, Jr. Vice Chairman
John O. Smith President, Chief Operating Officer, and Director
Norman S. Neidell Vice President
John W. McTigue, Jr. Vice President
Stephen P. Jacobs Chief Accounting Officer
Charles E. Bradley, Sr. Director
Harry C. Johnson Director
Philip A. Tuttle Director
ZYDECO ENERGY, INC. is an independent oil and gas exploration company engaged
in acquiring leases, drilling and producing reserves utilizing focused
geologic concepts and advanced 3D seismic and computer-aided exploration
(CAEX) technology, including enhanced structural and stratigraphic depth
imaging and attribute analysis. Zydeco's efforts are focused primarily in the
Louisiana Transition Zone and in the Timbalier Trench.
<PAGE>
Zydeco Energy, Inc.
1710 Two Allen Center
1200 Smith Street
Houston, Texas 77002
