<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 (FEE REQUIRED)
For the Fiscal Year ending December 31, 1997
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
Commission File Number 0-22650
PETROCORP INCORPORATED 401(K) RETIREMENT SAVINGS PLAN
(Full title of the plan)
PETROCORP INCORPORATED
16800 Greenspoint Park Drive
Suite 300, North Atrium
Houston, Texas 77060-2391
(Name of Issuer of the Securities Held Pursuant to the Plan and Address
of Principal Executive Offices)
Registrant's Telephone Number, Including Area Code: (281) 875-2500
<PAGE>
PETROCORP INCORPORATED
401(K) RETIREMENT SAVINGS PLAN
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE NO.
--------
<S> <C>
REPORT OF INDEPENDENT ACCOUNTANTS (Not required -- see Note 2.)
FINANCIAL STATEMENTS:
Statement of Net Assets Available for Benefits with Fund Information as of December 31, 1997
and 1996 2
Statement of Changes in Net Assets Available for Benefits with Fund Information for the years
ended December 31, 1997 and 1996 3
Notes to Financial Statements 4
SUPPLEMENTAL SCHEDULES:
Item 27a - Schedule of Assets Held for Investment (Not required -- see Note 2.)
Item 27d - Schedule of Reportable Transactions (Not required -- see Note 2.)
SIGNATURES 9
</TABLE>
<PAGE>
PETROCORP INCORPORATED 401(K) RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
(Unaudited)
<TABLE>
<CAPTION>
DECEMBER 31, 1997
------------------------------------------------------------------------------
ASSETS
------------------------------------------------------------------------------
Investments, at fair value
------------------------------------------------------------------------------
Pooled Participant
separate Common notes
accounts stock receivable Total
---------------- ------------------- ------------------ ---------------
<S> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Accounts $ - $ - $ - $ -
Money Market Account 107,100 - - 107,100
Government Securities Account 170,099 - - 170,099
Bond & Mortgage Account 96,881 - - 96,881
Bond Emphasis Balanced Account 54,176 - - 54,176
Stock Emphasis Balanced Account 152,622 - - 152,622
Stock Index 500 Account 154,307 - - 154,307
U.S. Stock Account 270,414 - - 270,414
Medium Company Value Account 221,691 - - 221,691
Small Company Blend Account 489,427 - - 489,427
Medium Company Blend Account 154,028 - - 154,028
International Stock Account 197,150 - - 197,150
Real Estate Account 3,635 - - 3,635
COMPANY STOCK - 490,751 - 490,751
PARTICIPANT NOTES - - 60,500 60,500
=============== =============== ============== =============
$ 2,071,530 $ 490,751 $ 60,500 $ 2,622,781
=============== =============== ============== =============
</TABLE>
<TABLE>
<CAPTION> DECEMBER 31, 1997
--------------------------------------------------------------------------------------
ASSETS
--------------------------------------------------
Guaranteed
investment NET ASSETS
contract, at AVAILABLE FOR
contract value Cash Total LIABILITIES BENEFITS
--------------- -------------- --------------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Accounts $ 137,258 $ - $ 137,258 $ - $ 137,258
Money Market Account - - 107,100 - 107,100
Government Securities Account - - 170,099 - 170,099
Bond & Mortgage Account - - 96,881 - 96,881
Bond Emphasis Balanced Account - - 54,176 - 54,176
Stock Emphasis Balanced Account - - 152,622 - 152,622
Stock Index 500 Account - - 154,307 - 154,307
U.S. Stock Account - - 270,414 - 270,414
Medium Company Value Account - - 221,691 - 221,691
Small Company Blend Account - - 489,427 - 489,427
Medium Company Blend Account - - 154,028 - 154,028
International Stock Account - - 197,150 - 197,150
Real Estate Account - - 3,635 - 3,635
COMPANY STOCK - - 490,751 - 490,751
PARTICIPANT NOTES - - 60,500 - 60,500
=============== ============== =============== =========== =============
$ 137,258 $ - $ 2,760,039 $ - $ 2,760,039
=============== ============== =============== =========== =============
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1996
--------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------
Investments, at fair value
--------------------------------------------------------------------------
Pooled Participant
separate Common notes
accounts stock receivable Total
---------------- ---------------- ------------------ ----------------
<S> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Accounts $ - $ - $ - $ -
Money Market Account 92,187 - - 92,187
Government Securities Account 47,333 - - 47,333
Bond & Mortgage Account 80,356 - - 80,356
Bond Emphasis Balanced Account 42,031 - - 42,031
Stock Emphasis Balanced Account 96,847 - - 96,847
Stock Index 500 Account 77,369 - - 77,369
U.S. Stock Account 204,474 - - 204,474
Medium Company Value Account 145,719 - - 145,719
Small Company Blend Account 355,374 - - 355,374
Medium Company Blend Account 103,898 - - 103,898
International Stock Account 182,693 - - 182,693
Real Estate Account 3,258 - - 3,258
COMPANY STOCK - 445,651 - 445,651
PARTICIPANT NOTES - - 66,593 66,593
------------- ------------ -------------- --------------
$ 1,431,539 $ 445,651 $ 66,593 $ 1,943,783
============= ============ ============== ==============
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1996
----------------------------------------------------------------------------------------
ASSETS
----------------------------------------------------------------------------------------
Guaranteed
investment NET ASSETS
contract, at AVAILABLE FOR
contract value Cash Total LIABILITIES BENEFITS
---------------- ------------- ----------------- ---------------- -------------
<S> <C> <C> <C> <C> <C>
PRINCIPAL INVESTMENTS:
Guaranteed Interest Accounts $ 128,516 $ - $ 128,516 $ - $ 128,516
Money Market Account - - 92,187 - 92,187
Government Securities Account - - 47,333 - 47,333
Bond & Mortgage Account - - 80,356 - 80,356
Bond Emphasis Balanced Account - - 42,031 - 42,031
Stock Emphasis Balanced Account - - 96,847 - 96,847
Stock Index 500 Account - - 77,369 - 77,369
U.S. Stock Account - - 204,474 - 204,474
Medium Company Value Account - - 145,719 - 145,719
Small Company Blend Account - - 355,374 - 355,374
Medium Company Blend Account - - 103,898 - 103,898
International Stock Account - - 182,693 - 182,693
Real Estate Account - - 3,258 - 3,258
COMPANY STOCK - 645 446,296 - 446,296
PARTICIPANT NOTES - - 66,593 - 66,593
--------------- -------------- --------------- ------------- -------------
$ 128,516 $ 645 $ 2,072,944 $ - $ 2,072,944
=============== ============== =============== ============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
PETROCORP INCORPORATED 401(k) RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH FUND INFORMATION
(Unaudited)
<TABLE>
<CAPTION>
Year ended December 31, 1997
--------------------------------------------------------------------------------------------
Investment income
-------------------------------------
Net appreciation
(depreciation)
in fair value of Contributions
investments --------------------------------------- Total
Interest (Note 3) Total Employer Participants Total additions
---------- ------------- --------- ------------ ------------ --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Principal Investments
Guaranteed Interest Accounts $ 8,642 $ - $ 8,642 $ 9,010 $ 16,163 $ 25,173 $ 33,815
Money Market Account - 5,026 5,026 (132) 3,118 2,986 8,012
Government Securities Account - 8,265 8,265 2,756 9,024 11,780 20,045
Bond & Mortgage Account - 8,737 8,737 6,809 11,270 18,079 26,816
Bond Emphasis Balanced Account - 6,235 6,235 2,283 2,875 5,158 11,393
Stock Emphasis Balanced Account - 20,899 20,899 4,794 14,233 19,027 39,926
Stock Index 500 Account - 29,377 29,377 10,823 16,121 26,944 56,321
U.S. Stock Account - 55,133 55,133 17,085 21,937 39,022 94,155
Medium Company Value Account - 56,196 56,196 11,176 18,589 29,765 85,961
Small Company Blend Account - 84,569 84,569 28,427 37,653 66,080 150,649
Medium Company Blend Account - 29,454 29,454 11,230 18,013 29,243 58,697
International Stock Account - 23,400 23,400 15,955 16,559 32,514 55,914
Real Estate Account - 380 380 - - - 380
Company Stock - (46,508) (46,508) 67,691 50,528 118,219 71,711
Participant Notes 6,892 - 6,892 - - - 6,892
---------- ----------- --------- ---------- ----------- --------- ----------
$ 15,534 $ 281,163 $ 296,697 $ 187,907 $ 236,083 $ 423,990 $ 720,687
========== =========== ========= ========== =========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Year ended December 31, 1997
--------------------------------------------------------------------------------------------
(Deductions)
-------------------------------------------------- Net assets at Net assets at
Participant Admin. Interfund Total Net increase beginning of end of
benefits expenses transfers deductions (decrease) year year
----------- ---------- --------- ---------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Principal Investments
Guaranteed Interest Accounts $ (7,902) $ (128) $ (17,043) $ (25,073) $ 8,742 $ 128,516 $ 137,258
Money Market Account (1,093) (25) 8,019 6,901 14,913 92,187 107,100
Government Securities Account (6,444) (37) 109,202 102,721 122,766 47,333 170,099
Bond & Mortgage Account (1,138) (50) (9,103) (10,291) 16,525 80,356 96,881
Bond Emphasis Balanced Account - (37) 789 752 12,145 42,031 54,176
Stock Emphasis Balanced Account (1,566) (56) 17,471 15,849 55,775 96,847 152,622
Stock Index 500 Account - (54) 20,671 20,617 76,938 77,369 154,307
U.S. Stock Account - (69) (28,146) (28,215) 65,940 204,474 270,414
Medium Company Value Account (1,768) (82) (8,139) (9,989) 75,972 145,719 221,691
Small Company Blend Account (1,633) (153) (14,810) (16,596) 134,053 355,374 489,427
Medium Company Blend Account - (81) (8,486) (8,567) 50,130 103,898 154,028
International Stock Account (10,128) (120) (31,209) (41,457) 14,457 182,693 197,150
Real Estate Account - (4) - (3) 377 3,258 3,635
Company Stock (1,025) - (26,231) (27,256) 44,455 446,296 490,751
Participant Notes - - (12,985) (12,985) (6,093) 66,593 60,500
---------- ---------- --------- --------- ---------- ---------- ------------
$ (32,697) $ (896) $ - $ (33,592) $ 687,095 $2,072,944 $ 2,760,039
========== ========== ========= ========= ========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
Year ended December 31, 1996
--------------------------------------------------------------------------------------------
Investment income
-------------------------------------
Net appreciation
(depreciation)
in fair value of Contributions
investments --------------------------------------- Total
Interest (Note 3) Total Employer Participants Total additions
---------- ------------- --------- ------------ ------------ --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Principal Investments
Guaranteed Interest Accounts $ 7,570 $ - $ 7,570 $ 10,924 $ 19,131 $ 30,055 $ 37,625
Money Market Account - 1,251 1,251 1,307 5,459 6,766 8,017
Government Securities Account - 1,970 1,970 3,965 6,633 10,598 12,568
Bond & Mortgage Account - 2,925 2,925 8,575 13,933 22,508 25,433
Bond Emphasis Balanced Account - 4,921 4,921 3,416 3,526 6,942 11,863
Stock Emphasis Balanced Account - 14,978 14,978 7,258 12,817 20,075 35,053
Stock Index 500 Account - 12,905 12,905 7,433 11,785 19,218 32,123
U.S. Stock Account - 42,124 42,124 17,843 31,031 48,874 90,998
Medium Company Value Account - 22,342 22,342 17,155 23,814 40,969 63,311
Small Company Blend Account - 57,588 57,588 29,455 39,067 68,522 126,110
Medium Company Blend Account - 14,952 14,952 13,373 21,136 34,509 49,461
International Stock Account - 41,432 41,432 18,959 25,349 44,308 85,740
Real Estate Account - 413 413 469 117 586 999
Company Stock - 99,720 99,720 67,701 56,296 123,997 223,717
Participant Notes 2,889 - 2,889 - - - 2,889
---------- ----------- --------- ---------- ----------- --------- ----------
$ 10,459 $ 317,521 $ 327,980 $ 207,833 $ 270,094 $ 477,927 $ 805,907
========== =========== ========= ========== =========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Year ended December 31, 1996
--------------------------------------------------------------------------------------------
(Deductions)
-------------------------------------------------- Net assets at Net assets at
Participant Admin. Interfund Total Net increase beginning of end of
benefits expenses transfers deductions (decrease) year year
----------- ---------- --------- ---------- ------------ ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Principal Investments
Guaranteed Interest Accounts $ (7,787) $ (165) $ (12,293) $ (20,245) $ 17,380 $ 111,136 $ 128,516
Money Market Account (2,610) (42) 60,154 57,502 65,519 26,668 92,187
Government Securities Account (6,772) (15) 6,255 (532) 12,036 35,297 47,333
Bond & Mortgage Account (17,441) (22) (257) (17,720) 7,713 72,643 80,356
Bond Emphasis Balanced Account (18,828) (26) (1,425) (20,279) (8,416) 50,447 42,031
Stock Emphasis Balanced Account (25,638) (63) (1,747) (27,448) 7,605 89,242 96,847
Stock Index 500 Account (7,481) (37) 4,530 (2,988) 29,135 48,234 77,369
U.S. Stock Account (32,259) (63) (22,629) (54,951) 36,047 168,427 204,474
Medium Company Value Account (14,924) (75) (25,325) (40,324) 22,987 122,732 145,719
Small Company Blend Account (32,771) (195) (58,097) (91,063) 35,047 320,327 355,374
Medium Company Blend Account (16,398) (62) 3,647 (12,813) 36,648 67,250 103,898
International Stock Account (58,290) (94) (12,071) (70,455) 15,285 167,408 182,693
Real Estate Account (3,223) (11) 51 (3,183) (2,184) 5,442 3,258
Company Stock (118,818) (16) 11,133 (107,701) 116,016 330,280 446,296
Participant Notes (14,372) - 48,074 33,702 36,591 30,002 66,593
---------- ---------- --------- --------- ---------- ---------- ------------
$ (377,612) $ (886) $ - $(378,498) $ 427,409 $1,645,535 $ 2,072,944
========== ========== ========= ========= ========== ========== ============
</TABLE>
<PAGE>
PETROCORP INCORPORATED 401(K) RETIREMENT SAVINGS PLAN
Notes to Financial Statements
(unaudited)
NOTE 1 - DESCRIPTION OF PLAN:
The following description of the PetroCorp Incorporated 401(k) Retirement
Savings Plan (the Plan) provides only general information. Participants should
refer to the Plan agreement for a more complete description of the Plan's
provisions.
General
The Plan is a defined contribution 401(k) retirement savings plan, adopted
January 1, 1993. Employees of PetroCorp Incorporated (the Company) become
eligible to participate in the Plan after six months of service with the
Company. The entry date for each employee is the first day of the month
following the sixth month of service. The Plan is subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA).
All Plan contributions are invested in separate pooled accounts under an annuity
contract with Principal Mutual Life Insurance Company (Principal) or in common
stock of the Company.
Contributions
Participants may contribute to the Plan subject to certain Internal Revenue Code
limitations. The Company may match up to 100 percent of each participant's
contributions not to exceed six (6) percent of each participant's annual
compensation. Additionally, the Company may make discretionary contributions on
behalf of the participants. In any event, total contributions by the
participant and the Company may not exceed 20 percent of the participant's
annual compensation. During 1997 and 1996, each participant could contribute up
to 14 percent of his annual compensation with the Company matching up to six (6)
percent, except in certain cases subject to Internal Revenue Code limitations.
The Plan also allows participants to "rollover" contributions that have been
made to other qualified plans.
Participant accounts
Each participant's account is credited with the participant's contributions, the
Company's contributions and a pro rata share of the earnings of each fund in
which the participant has invested. The benefit to which a participant is
entitled is the benefit that can be provided from the participant's account.
Vesting
Participants are fully vested at all times in their individual contributions and
"rollover" contributions plus actual earnings thereon.
4
<PAGE>
Vesting in employer contributions and related earnings is based on the
participant's employment commencement date and years of continuous service.
Participant's whose employment commencement date occurred before January 1, 1994
are 100% vested. Participant's whose employment commencement date occurred on
or after January 1, 1994 are vested as follows:
Vesting Service Vesting
(whole years) Percentage
------------- ----------
Less than 1 year 0%
1 year 25%
2 years 50%
3 years 75%
4 or more years 100%
In addition, participants also become fully vested in their employer
contributions and related earnings upon retirement, at or after age 65, or upon
death or total disability of the participant.
Investment options
Effective January 1, 1994, upon enrollment in the Plan, a participant may direct
contributions in any of fourteen investment options as follows:
Guaranteed Interest Account - Funds are invested in a guaranteed investment
contract (GIC) with Principal.
U.S. Stock Account - This is a separate pooled account with Principal in
which the funds are invested in various stocks of U.S. companies with the
intent to earn higher long-term rates of return.
Money Market Account - This is a separate pooled account with Principal in
which the funds are invested in high quality commercial paper with average
maturities kept under 30 days to ensure current money market rates.
Real Estate Account - This is a separate pooled account with Principal in
which the funds are invested in equity investments in modern, developed,
income-producing warehouses, office buildings and retail centers in major
U.S. metropolitan areas. Earnings consist of property value changes and
net rental income.
Bond & Mortgage Account - This is a separate pooled account with Principal
in which the funds are invested in investment grade private placement
bonds, commercial mortgages, public corporate bonds and mortgage-backed
securities, all generally mature within five to 10 years.
International Stock Account - This is a separate pooled account with
Principal in which the funds are invested in stocks of non-U.S. companies
located primarily in Europe and Southeast Asia.
Government Securities Account - This is a separate pooled account with
Principal in which the funds are invested primarily in very high quality
government mortgage-backed securities.
Stock Index 500 Account - This is a separate pooled account with Principal
in which the funds are invested in the same stocks and in the same
proportions as those stocks included in the Standard & Poor's 500 Stock
Index.
Medium Company Value Account - This is a separate pooled account with
Principal in which the funds are invested in primarily income-producing
common stocks that are under-valued in the marketplace according to
traditional measures of value.
5
<PAGE>
Small Company Blend Account - This is a separate pooled account with
Principal in which funds are invested in stocks of smaller, fast-growing
companies.
Medium Company Blend Account - This is a separate pooled account with
Principal in which funds are invested in stocks of large, established
companies whose earnings are expected to grow faster than the average
company.
Bond Emphasis Balanced Account - This is a separate pooled account with
Principal in which funds are invested in many asset classes, but emphasizes
fixed income. This account invests 50 to 100 percent of the funds in
Principal fixed-income separate pooled accounts, with the remainder in
Principal equity separate pooled accounts.
Stock Emphasis Balanced Account - This is a separate pooled account with
Principal in which funds are invested in many asset classes, but emphasizes
equities. This account invests 50 to 100 percent of the funds in Principal
equity separate pooled accounts, with the remainder in Principal fixed-
income separate pooled accounts.
Company Stock - Funds are invested in the common stock of the Company.
Payment of benefits
Distribution of the participant's entire account balance becomes due and payable
upon retirement, at or after age 65, or upon death or total disability of the
participant. Such account balances may be distributed either in a lump-sum
distribution or in installments, as described in the Plan agreement. Upon
termination of employment, a participant may elect to receive a lump-sum
distribution equal to the vested balance of the participant's account or
continue to participate in the Plan investments. If the vested balance is less
than $3,500, payment is made as soon as administratively practicable after
termination. Additionally, participants may make hardship withdrawals from
their individual contribution accounts at specified times during the Plan year,
subject to certain restrictions.
Participants' notes receivable
Under the terms of the Plan, with certain restrictions, participants may borrow
from their accounts a minimum of $1,000 up to a maximum of the lessor of $50,000
or 50 percent of their vested account balances. A loan is secured by the vested
balance in the participant's account and bears interest at the prime interest
rate plus two (2) percent. During 1997, the interest rates ranged from 10.25
percent to 10.50 percent. During 1996, the interest rates ranged from 10.25
percent to 11.00 percent.
NOTE 2 - SUMMARY OF ACCOUNTING POLICIES:
Under the Department of Labor Rules and Regulations for Reporting and Disclosure
under ERISA, the Plan files Form 5500-C/R which is required for employee benefit
plans with fewer than 100 participants. Employee benefit plans with 100 or more
participants are required to file Form 5500. Those plans filing Form 5500 are
required to prepare audited financial statements as well as all applicable
schedules required by Section 2520.103-10 of the Department of Labor's Rules and
Regulations for Reporting and Disclosure under ERISA. Such requirements are not
mandated for those plans filing Form 5500-C/R. Accordingly, the attached
financial statements are unaudited and the above mentioned schedules are not
presented.
Method of accounting
The Plan's financial statements are prepared on the accrual basis of accounting.
6
<PAGE>
Investments
Plan investments, other than the GIC's, are stated at fair value. The Company
stock is valued at its quoted market price. Separate pooled accounts are valued
at net asset value representing the value at which units of the account may be
purchased or redeemed.
The Plan's GIC's are valued at contract value. Contract value represents
contributions made under the contract plus interest at the guaranteed rate.
Contributions
Participant contributions are recorded in the period during which the Company
makes payroll deductions from the Plan participants' earnings. Matching Company
contributions are recorded in the same period.
NOTE 3 - INVESTMENTS:
Individual investments representing five (5) percent or more of the Plan's net
assets are as follows:
Year ended
December 31,
-----------------------
1997 1996
-----------------------
INVESTMENTS AT FAIR VALUE AS DETERMINED BY QUOTED
MARKET PRICE:
Pooled separate accounts:
Principal:
Government Securities Account $170,099 $ - *
Stock Emphasis Balanced Account 152,622 - *
Stock Index 500 Account 154,307 - *
U.S. Stock Account 270,414 204,474
Medium Company Value Account 221,691 145,719
Small Company Blend Account 489,427 355,374
Medium Company Blend Account 154,028 103,898
197,150 182,693
International Stock Account
Company Stock:
PetroCorp Incorporated Common Shares $490,751 $445,651
INVESTMENTS AT CONTRACT VALUE:
Guaranteed Investment Contracts with Principal $ - * $128,516
* less than five (5)percent
7
<PAGE>
The net realized and unrealized appreciation (depreciation) in fair value of
investments included in the statements of changes in net assets available for
Plan benefits were $281,163 and $317,521 for the years ended December 31, 1997
and 1996, respectively, and consisted of the following:
Year ended
December 31,
-----------------------
1997 1996
-----------------------
NET APPRECIATION (DEPRECIATION) IN INVESTMENTS AT FAIR VALUE AS
DETERMINED BY QUOTED MARKET PRICE:
Pooled separate accounts:
Principal:
U.S. Stock Account $ 55,133 $ 42,124
Money Market Account 5,026 1,251
Real Estate Account 380 413
Bond & Mortgage Account 8,737 2,925
International Stock Account 23,400 41,432
Government Securities Account 8,265 1,970
Stock Index 500 Account 29,377 12,905
Medium CompanyValue Account 56,196 22,342
Small Company Blend Account 84,569 57,588
Medium Company Blend Account 29,454 14,952
Bond Emphasis Balanced Account 6,235 4,921
Stock Emphasis Balanced Account 20,899 14,978
Company Stock (46,508) 99,720
-------- --------
$281,163 $317,521
======== ========
NOTE 4 - GUARANTEED INVESTMENT CONTRACTS:
The Plan entered into five-year GIC's with Principal in each of the last four
years. The GIC's provide for guaranteed returns ranging from 6.10% to 7.30% on
contributions invested over the five-year terms of the contracts. The GIC's are
included in the financial statements at contract value as reported to the Plan
by Principal.
NOTE 5 - PLAN TERMINATION:
Although it has not expressed any intent to do so, the Company has the right
under the Plan to discontinue its contributions at any time and to terminate the
Plan subject to the provisions of ERISA. In the event of Plan termination,
participants will become fully vested in their accounts.
NOTE 6 - INCOME TAX STATUS OF PLAN:
The Company had requested the Internal Revenue Service to determine and inform
the Company that the Plan is designed in accordance with applicable sections of
the Internal Revenue Code. On December 14, 1995, the Internal Revenue Service
notified the Company that they had made a favorable determination on the Plan.
8
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
PETROCORP INCORPORATED 401(k) RETIREMENT
SAVINGS PLAN
Date: June 26, 1998 /s/ CRAIG K. TOWNSEND
------------------ ------------------------------------
Craig K. Townsend
Vice President - Finance of PetroCorp
Incorporated and Trustee
9
