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<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A-2
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 23, 1996
_______________________________
SOUTHERN MINERAL CORPORATION
(Exact name of registrant as specified in charter)
Nevada
______________________________________________
(State or other jurisdiction of incorporation)
0-8043 36-2068676
____________________________________ __________________________________
(Commission File Number) (IRS Employer Identification No.)
500 Dallas Street, Suite 2800, Houston, Texas 77002-4708
________________________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (713) 658-9444
_______________________
_______________________________________________________________
(Former name or former address, if changed since last report.)
<PAGE> 2
ITEM 7. FINANCIAL STATEMENTS, PROFORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial statements of Businesses Acquired.
Inapplicable
(b) Pro Forma Financial Information.
(c) Exhibits.
2.1 Agreement between Southern Mineral Corporation and
Morgan Keegan & Company, Inc., dated November 4, 1996
and executed November 6, 1996.
2.2 Form of Stock Purchase Agreement, dated December 23,
1996, entered into by Southern Mineral Corporation
and the Purchasers identified therein.
2.3 Form of Warrant, dated December 23, 1996, issued by
Southern Mineral Corporation to Morgan Keegan &
Company, Inc. For up to 120,000 shares of Common
Stock.
99 Press Release of Southern Mineral Corporation dated
December 23, 1996 concerning private placement of
Common Stock on same date.
1
<PAGE> 3
SOUTHERN MINERAL CORPORATION
PRO FORMA CONDENSED CONSOLIDATED
BALANCE SHEET
As of September 30, 1996
(Unaudited)
(OOO's Omitted)
<TABLE>
<CAPTION>
Southern Pro Forma Adjustments
Mineral Note Pro Forma
Corporation Amount Reference Consolidated
----------- --------------------- ------------
<S> <C> <C> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $278 $188 2, 1 $466
Receivables & Other 1,925 1,925
--------- --------- ---------
Total Current Assets 2,203 188 2,391
--------- --------- ---------
Property & Equipment, Net 20,627 20,627
Other Assets 1,400 (48) 2 1,352
--------- --------- ---------
Total Assets $24,230 $140 $24,370
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable and Accrued Liabilities s 762 762
Notes Payable Bank 4,000 (4,000) 1, 3 0
Current maturities of long term debt 1,300 (1,300) 1 0
--------- --------- ---------
Total current liabilities 6,062 (5,300) 762
Long term debt 9,600 (5,200) 1 4,400
Deferred Income Taxes 1,038 1,038
Stockholders' Equity
Common Stock 66 25 2 91
Additional Paid-in capital 3,313 10,615 2 13,928
Retained Earnings 4,203 4,203
--------- --------- ---------
7,582 10,640 18,222
Less: Treasury stock (52) (52)
--------- --------- ---------
Total stockholders' equity 7,530 10,640 18,170
--------- --------- ---------
Total liabilities and stockholders' equity $24,230 $140 $24,370
========= ========= =========
</TABLE>
Notes to Balance Sheet Pro Forma:
Note 1: Reflects bank debt reduction of $10,500,000 as a result of receipt of
net offering proceeds.
Note 2: Private placement of 2,500,000 shares of Southern Mineral Corporation
common stock at $4.50 per share to institutional investors for a
total of $10,640,500, net of offering expenses.
Note 3: On December 17, 1996, the Company paid the $4,000,000 Note Payable
Bank from proceeds under the Company's Revolving Line of Credit.
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<PAGE> 4
SOUTHERN MINERAL CORPORATION
PRO FORMA CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
For the Nine Months Ended September 30, 1996
(Unaudited)
(000's Omitted, except for Share and Per Share Amounts)
<TABLE>
<CAPTION>
Equity
Southern SMC Pro Forma Pro Forma Offering Total
Mineral Development Adjustment Total Prior to Proforma Pro Forma
Corporation L. P. Amount Equity Offering Adjustments Consolidated
----------- ----------- ---------- ---------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Revenues
Oil and Gas $8,430 $220 -- $8,650 $8,650
------ ------ ------ ------ ------ ------
Expenses
Production 2,051 87 -- 2,138 2,138
Exploration 186 -- -- 186 186
Depletion and depreciation 1,937 10 28 (3) 1,975 1,975
General and administrative 1,243 6 -- 1,249 1,249
Interest 914 -- 124 (2) 1,038 (654)(8) 384
Other -- -- -- 0 0
------ ------ ------ ------ ------ ------
6,331 103 152 6,586 (654) 5,932
------ ------ ------ ------ ------ ------
Other income (expense) 679 29 -- 708 708
------ ------ ------ ------ ------ ------
Net income (loss) before
income taxes 2,778 76 (152) 2,702 (654)(4) 2,048
Income tax 706 -- (26) 680 235 915
------ ------ ------ ------ ------ ------
Net income (loss) $2,072 $76 ($126) $2,022 ($419) 1,603
====== ====== ====== ====== ====== ======
Primary net income per share $0.30 $0.17
====== ======
Diluted net income (loss) per share $0.28 $0.16
====== ======
Weighted average shares
outstanding 7,006 2,500(9) 9,506
====== ======
Weighted diluted average share 7,452 2,500(9) 9,952
====== ======
</TABLE>
3
<PAGE> 5
SOUTHERN MINERAL CORPORATION
PRO FORMA CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
For the Twelve Months Ended December 31, 1995
(Unaudited)
(OOO's Omitted, except for Share and Per Share Amount)
<TABLE>
<CAPTION>
1st Qtr 1995 Stone &
Southern Diverse Webster Oil Total Pro Forma Pro Forma
Mineral Production & Gas Prior to SMD Adjustment Total Prior to
Corporation Company Operations Purchase Amount SMD Purchase
----------- ------------ ----------- ------------ ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
Revenues
Oil & Gas $2,044 $197 $6,585 $8,826 $0 $8,826
------ ------ ------ ------ ------ ------
Expenses
Production 656 124 2,340 3,120 3,120
Exploration 221 0 217 438 438
Depletion & depreciation 792 51 1,789 2,632 469 (3) 3,077
(24) (5)
General & administrative 702 14 1,710 2,426 2,426
Interest 0 0 0 0 1,363 (2) 1,363
Other 117 0 0 117 117
------ ------ ------ ------ ------ ------
2,488 189 6,056 8,733 1,808 10,541
------ ------ ------ ------ ------ ------
Other income (expense) 316 53 1,982 2,351 (1,358) (6) 993
------ ------ ------ ------ ------ ------
Net income (loss) before
income taxes (128) 61 2,511 2,444 (3,166) (722)
Income tax 9 0 780 789 (557) (4) 232
------ ------ ------ ------ ------ ------
Net income (loss) ($137) $61 $1,731 $1,655 ($2,609) ($954)
====== ====== ====== ====== ====== ======
Net income per share ($0.02)
======
Weighted average shares
outstanding 5,701
======
</TABLE>
<TABLE>
<CAPTION>
Equity
SMC Pro Forma Pro Forma Offering Total
Development Adjustments Total Prior to Proforma Pro Forma
L.P. Amount Equity Offering Adjustments Consolidated
----------- ----------- --------------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Revenues
Oil & Gas $313 $0 $9,139 $0 $9,139
------ ------ ------ ------ ------
Expenses
Production 110 3,230 0 3,230
Exploration 0 438 0 438
Depletion & depreciation 87 3,164 0 3,164
General & administrative 2 2,428 0 2,428
Interest 0 248 (3) 1,611 (865) (8) 746
Other 0 117 0 117
------ ------ ------ ------ ------
199 248 10,988 (865) 10,123
------ ------ ------ ------ ------
Other income (expense) 0 0 993 0 993
------ ------ ------ ------ ------
Net income (loss) before
income taxes 114 (248) (856) 865 9
Income tax 0 0 232 232
------ ------ ------ ------ ------
Net income (loss) $114 ($248) ($1,088) $865 ($223)
====== ====== ====== ====== ======
Net income per share ($0.03)
======
Weighted average shares
outstanding 2,500 (9) 8,201
======
</TABLE>
4
<PAGE> 6
SOUTHERN MINERAL CORPORATION
NOTES TO PRO FORMA FINANCIAL STATEMENTS
(Unaudited)
Note 1: On December 23, 1996 Southern Mineral Corporation (the Company)
entered into a private placement agreement for the issuance of
2,500,000 shares of common stock at $4.50 a share to institutional
investors for a total of $10,640,500, net of offering expenses.
The pro forma statements of operations for the nine months ended
September 30, 1996 and the year ended December 31, 1996 assumes the
placement had occurred on January 1, 1995.
The statements should be read in conjunction with the separate
financial statements and notes thereto of the Company's previously
filed statements. The pro forma statements of operations is not
necessarily indicative of the results of the operations of the
Company as it may in the future or might have been had the placement
been effective at January 1, 1995.
Included in our pro forma statement of operations are adjustments
related to the Stone and Webster, SMC Development and Diverse
acquisitions as if these transactions had occurred at January 1, 1995.
The proceeds from the equity transaction were assumed to have reduced
existing debt of the Company using the Company's average borrowing
rate. Income tax expense for this adjustment is computed by using the
guidance of FAS No. 109.
Note 2: Reflects additional interest expense as a result of debt financing of
the acquisition. The interest rate charged under the Company's debt
financing was, at the Company's option, the bank's prime rate,
floating or LIBOR rate plus two and one half percent.
Note 3: Reflects depreciation, depletion and amortization, including amount
related to the increase in oil and gas property bases.
Note 4: Reflects change in income tax expense as calculated under FAS No. 109
caused by change in pro forma earnings.
Note 5: To eliminate amortization of goodwill of purchased entities.
Note 6: To eliminate dividend income from subsidiary.
Note 7: Diverse Production Company data is for the first quarter of 1995, the
remaining nine months of 1995 is actual DPC results consolidated with
Southern Mineral Corporation.
Note 8: Reflects reduction of interest at the Company's average
borrowing rate as a result using the proceeds of the equity offering
to the payoff of debt.
Note 9: Reflects the additional shares outstanding at January 1, 1995 from
the equity placement.
5
<PAGE> 7
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amended report to be signed on its behalf by
the undersigned thereunto duly authorized.
SOUTHERN MINERAL CORPORATION
February 13, 1997 By: /s/ James H Price
------------------------------------
James H. Price
Vice President - Finance
(Chief Accounting Officer)
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