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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. __) *
CE FRANKLIN LTD.
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(Name of Issuer)
COMMON STOCK, NO PAR VALUE PER SHARE
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(Title of Class of Securities)
125151100
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(CUSIP Number)
GILBERT H. DAVIS, ESQ.
SIMS MOSS KLINE & DAVIS LLP
400 NORTHPARK TOWN CENTER, SUITE 310
1000 ABERNATHY ROAD, N.E.
ATLANTA, GEORGIA 30328
(770) 481-7210
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(Name, Address and Telephone Number of Persons
Authorized to Receive Notices and Communications)
DECEMBER 10, 1998
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g), check the
following box [ ].
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13D
CUSIP No. 125151100
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1 NAME OF REPORTING PERSON:
Thomas E. Claugus
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: PF, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States
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NUMBER OF 7 SOLE VOTING POWER: 135,300
SHARES ----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 915,400
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: 135,300
REPORTING ----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER: 915,400
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 1,050,700
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 6.4%
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14 TYPE OF REPORTING PERSON: IN
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13D
CUSIP No.125151100
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1 NAME OF REPORTING PERSON:
Bay Resource Partners, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: WC, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
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NUMBER OF 7 SOLE VOTING POWER: NONE
SHARES ------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 555,400
OWNED BY ------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: NONE
REPORTING ------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER: 555,400
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 555,400
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 3.4%
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14 TYPE OF REPORTING PERSON: PN
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13D
CUSIP No.125151100
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1 NAME OF REPORTING PERSON:
Bay Resource Partners Offshore Fund, Ltd.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: WC, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: Cayman Islands
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NUMBER OF 7 SOLE VOTING POWER: NONE
SHARES -------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 160,000
OWNED BY -------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: NONE
REPORTING -------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER: 160,000
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 160,000
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.0%
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14 TYPE OF REPORTING PERSON: CO
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13D
CUSIP No.125151100
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1 NAME OF REPORTING PERSON:
GMT, Inc.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: WC, OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware
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NUMBER OF 7 SOLE VOTING POWER: NONE
SHARES ------------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER: 200,000
OWNED BY ------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER: NONE
REPORTING ------------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER: 200,000
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON: 200,000
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 1.2%
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14 TYPE OF REPORTING PERSON: CO
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5
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ITEM 1. SECURITY AND ISSUER.
This Statement relates to shares of the common stock, no par value, of CE
FRANKLIN LTD. (the "Company"). The Company has its principal executive offices
at Suite 1900, 300 - 5th Avenue S.W., Calgary, Alberta, Canada T2P 3C4.
ITEM 2. IDENTITY AND BACKGROUND.
This Statement is filed by the following (collectively, the "Claugus
Group"):
(a) Mr. Thomas E. Claugus ("Mr. Claugus"), an individual whose
business address is 3300 Holcomb Bridge Road, Suite 200, Norcross, Georgia
30092. Mr. Claugus's principal occupation is investment management, provided
through his status as the President, sole director and controlling shareholder
of GMT Capital Corp., the general partner of Bay Resource Partners, L.P. ("Bay
Onshore"), his status as the President, sole director and controlling
shareholder of GMT, Inc., and his responsibility for investment decisions made
by GMT Capital Offshore Management, LLC, which serves as the Investment Manager
of Bay Resource Partners Offshore Fund, Ltd. ("Bay Offshore"). Mr. Claugus is a
citizen of the United States of America.
(b) Bay Onshore, a limited partnership organized under the laws of
State of Delaware with its principal offices located at 3300 Holcomb Bridge
Road, Suite 200, Norcross, Georgia 30092. Bay Onshore's principal business is
investing and reinvesting capital contributed by its partners, earnings and
profits in a portfolio consisting principally of equity securities and rights
and options relating thereto.
(c) Bay Offshore, an open-ended investment company incorporated as an
exempted company under the laws of the Cayman Islands with its principal offices
located at c/o Huntlaw Corporate Services Ltd., Post Office Box 1350 GT, The
Huntlaw Building, Fort Street, Grand Cayman, Cayman Islands, B.W.I. Bay
Offshore's principal business is investing and reinvesting capital contributed
by its shareholders, earnings and profits in a portfolio consisting principally
of equity securities and rights and options relating thereto.
(d) GMT, Inc., a corporation organized under the laws of State of
Delaware with its principal offices located at 3300 Holcomb Bridge Road, Suite
200, Norcross, Georgia 30092. GMT, Inc.'s principal business is the ownership
and operation of oil and gas producing properties.
In addition, information regarding the following entities and persons is
provided pursuant to General Instruction C to Schedule 13D:
(e) GMT Capital Corp. ("GMT Capital"), a corporation organized under
the laws of the State of Georgia with its principal offices located at 3300
Holcomb Bridge Road, Suite 200, Norcross, Georgia 30092. GMT Capital's
principal business is providing investment management services to Bay Onshore
(in its capacity as General Partner of Bay Onshore). Persons who, in addition
to Mr. Claugus, serve as executive officers of GMT Capital are listed on
Schedule A attached hereto, which Schedule A is incorporated herein by this
reference.
(f) Persons who, in addition to Mr. Claugus, serve as executive
officers or directors of Bay Offshore are listed on Schedule B attached hereto,
which Schedule B is incorporated herein by this reference.
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During the past five years, none of the entities or persons listed above or
any of the persons shown on Schedule A attached hereto has been convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors), or
has been a party to a civil proceeding of a judicial or administrative body of
competent jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The funds used to acquire the shares of the Company stock described in Item
5 below were taken from the personal funds, as regards Mr. Claugus, and working
capital, including equity contributions and earnings from operations, of Bay
Onshore, Bay Offshore and GMT, Inc., respectively, and borrowed through their
respective margin borrowing arrangements with the various broker-dealer firms
with whom they maintain accounts. Such margin loans have been obtained in the
ordinary course of business pursuant to standard brokerage agreements and are
secured in part by securities, including shares of the Company stock, owned by
Mr. Claugus, Bay Onshore, Bay Offshore and GMT, Inc.
In the event Mr. Claugus, Bay Onshore, Bay Offshore or GMT, Inc. purchase
additional shares of the Company stock, it is currently contemplated that they
will use their respective personal funds, working capital and/or funds borrowed
through their respective margin borrowing arrangements. As of the date of this
Statement, no other arrangements with third parties have been made with respect
to financing the acquisition of additional shares except such standard margin
arrangements with securities brokers employed by Mr. Claugus, Bay Onshore, Bay
Offshore and GMT, Inc.
ITEM 4. PURPOSE OF TRANSACTION.
Bay Onshore, Bay Offshore and GMT, Inc. have acquired the shares of the
Company stock indicated herein for investment in the ordinary course of their
businesses consistent with the belief that the value of the Company stock
exceeded that reflected in the respective market prices of the Company stock on
the dates of such purchases. Mr. Claugus may himself acquire, or cause any or
all of Bay Onshore, Bay Offshore or GMT, Inc. to acquire, additional shares of
the Company stock or to sell shares. Any such determination may be based on a
number of factors, including the continued attractiveness of investment in the
Company shares at then prevailing market prices, the number of shares that are
available for purchase, the price or prices thereof, general market conditions
and other similar factors.
While they reserve the right to develop plans or proposals in the future
regarding the following items, at the present time none of the persons
identified in response to Item 2 of this Statement have any plans or proposals
which relate to or would result in any of the following:
(1) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Company or any of its subsidiaries;
(2) Sale or transfer of a material amount of assets of the Company or
of any of its subsidiaries;
(3) Any change in the present board of directors or management of the
Company, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board;
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(4) Any material change in the present capitalization or dividend
policy of the Company;
(5) Any other material change in the Company's business or corporate
structure;
(6) Changes in the Company's charter, bylaws or instruments
corresponding thereto or other actions which may impede the acquisition of
control of the Company by any person;
(7) Causing a class of securities of the Company to be delisted from a
national securities exchange or cease to be authorized to be quoted in an inter-
dealer quotation system of a registered national securities association;
(8) A class of equity securities of the Company becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Securities
Exchange Act of 1934, as amended; or
(9) Any action similar to any of those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Under the rules and regulations of the Securities and Exchange Commission,
Mr. Claugus may be deemed to be the beneficial owner of a total of 1,050,700
shares of the Company stock, representing approximately 6.4% of the issued and
outstanding shares of the Company. Of these shares, 555,400 shares
(approximately 3.4% of outstanding shares) are owned directly by Bay Onshore,
160,000 shares (approximately 1.0% of outstanding shares) are owned directly by
Bay Offshore; 200,000 shares (approximately 1.2% of outstanding shares) are
owned directly by GMT, Inc., and 135,300 shares (approximately 0.8% of
outstanding shares) are owned by Mr. Claugus in his regular and individual
retirement accounts. Mr. Claugus currently has sole power to direct the voting
and disposition of all shares held by the Claugus Group.
The percentages of outstanding shares of the Company stock set out in the
preceding paragraph are computed based on a total of 16,550,509 outstanding
shares of Company stock as indicated by a Company representative on the date
hereof.
During the past 60 days, the parties filing this Statement have engaged in
the following transactions in shares of the Company stock:
No. Of Shares Price
Date Party Purchased/(Sold) Per Share
- ---------- ----------------- ---------------- ---------
10/21/98 Bay Onshore 180,000 $2.12545
12/08/98 Bay Onshore 260,000 $1.63298
12/16/98 Bay Onshore 50,000 $1.72987
10/21/98 Bay Offshore 60,000 $ 2.1179
12/08/98 Bay Offshore 100,000 $ 1.6304
10/22/98 GMT, Inc. 100,000 $ 2.122
12/08/98 GMT, Inc. 100,000 $ 1.6304
10/21/98 Thomas E. Claugus 60,000 $2.12545
12/08/98 Thomas E. Claugus 70,000 $1.63298
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Each of the above transactions was effected on the open market through The
Toronto Stock Exchange or American Stock Exchange. No other person listed in
response to Item 2 above owns beneficially any shares of the Company stock
except as set forth herein.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
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RESPECT TO SECURITIES OF THE ISSUER.
-----------------------------------
Except as described in this Statement, the parties filing this Statement
are not parties to any contract, arrangement, understanding or relationships
with any other person with respect to shares of the Company stock, including but
not limited to transfer or voting of any of the securities, finder's fees, joint
ventures, loan or option arrangements, puts or calls, guarantees of profits,
divisions of profits or loss, or the giving or withholding of proxies.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
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Filed as exhibits hereto are the following:
7.1 Agreement Regarding Joint Filing among Mr. Claugus, Bay Onshore,
GMT, Inc. and Bay Offshore.
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SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: December 21, 1998 /s/ Thomas E. Claugus
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Thomas E. Claugus
BAY RESOURCE PARTNERS, L.P.
By: GMT Capital Corp., General Partner
Date: December 21, 1998 By: /s/ Thomas E. Claugus
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Thomas E. Claugus, President
BAY RESOURCE PARTNERS OFFSHORE, LTD.
Date: December 21, 1998 By: /s/ Thomas E. Claugus
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Thomas E. Claugus, Director
GMT, INC.
Date: December 21, 1998 By: /s/ Thomas E. Claugus
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Thomas E. Claugus, President
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SCHEDULE A
The following persons, in addition to Mr. Claugus, are the directors or
executive officers of GMT Capital:
Name and Principal Occupation or
Business Address Employment and Citizenship
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Keith A. Jaworski, CFA Mr. Jaworski is the Vice President and
3300 Holcomb Bridge Road General Manager of GMT Capital with
Suite 200, Norcross, Georgia 30092 responsibility for financial management,
administrative functions, trading,
marketing, and performing investment
research. Mr. Jaworski is a United States
citizen.
Steven Levy Mr. Levy is GMT Capital's Vice President
3300 Holcomb Bridge Road of Investments and provides research and
Suite 200, Norcross, Georgia 30092 investment analysis primarily focused on
the health care industry.
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SCHEDULE B
The following persons, in addition to Mr. Claugus, are the directors and
executive officers of Bay Offshore:
Name and Principal Occupation or
Business Address Employment and Citizenship
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Clive Harris, BSc. (Econ), A.C.A. Mr. Harris is a British National,
International Management Services Ltd. resident in the Cayman Islands. He is
PO Box 61GT a partner of Paul Harris & Company, a
George Town, Grand Cayman Cayman Islands firm of Chartered
BWI Accountants, and Managing Director of
International Management Services
Ltd., the company management arm of
that firm. Mr. Harris is a Director of
Bay Offshore.
Martin Lang Mr. Lang has been a member of the
International Management Services Ltd. Institute of Chartered Accountants in
PO Box 61GT England and Wales since 1991 and is
George Town, Grand Cayman employed by International Management
BWI Services Ltd. as a Company Manager.
Mr. Lang is a Director of Bay Offshore
and a citizen of the United Kingdom.
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EXHIBIT 7.1
AGREEMENT REGARDING JOINT FILING
The undersigned agree that a Schedule 13D, and any amendments thereto that
may be required, shall be filed jointly on behalf of the undersigned, and any
other person or entity who may hereafter be included in the definition of
"Claugus Group" in any required amendment, when and if required under provisions
of the Securities Exchange Act of 1934 or rules or regulations of the Securities
and Exchange Commission thereunder.
Date: December 21, 1998 /s/ Thomas E. Claugus
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Thomas E. Claugus
BAY RESOURCE PARTNERS, L.P.
By: GMT Capital Corp., General Partner
Date: December 21, 1998 By: /s/ Thomas E. Claugus
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Thomas E. Claugus, President
BAY RESOURCE PARTNERS OFFSHORE, LTD.
Date: December 21, 1998 By: /s/ Thomas E. Claugus
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Thomas E. Claugus, Director
GMT, INC.
Date: December 21, 1998 By: /s/ Thomas E. Claugus
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Thomas E. Claugus, President
