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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
Commission File Number : 0-25214
NOTIFICATION OF LATE FILING
(Check One)
[X] Form 10-K and Form 10-KSB [ ] Form 20-F [ ] Form 11-K [ ]
Form 10-Q and Form QSB [ ] Form N-SAR
For Period Ended: December 31, 1998
[ ] Transition Report on Form 10-K
[ ] Transition Report on Form 20-F
[ ] Transition Report on Form 11-K
[ ] Transition Report on Form 10-Q
[ ] Transition Report on Form N-SAR
For the Transition Period Ended:
Read the attached instruction sheet before preparing form. Please print
or type.
Nothing in this form shall be construed to imply that the Commission
has verified any information contained herein.
If the notification relates to a portion of the filing checked above,
identify the Item(s) to which the notification relates:
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Part I - Registrant Information
Full Name of Registrant: Kelley Oil & Gas Corporation
Former Name if applicable
Address of Principal Executive Office (street and number):
601 Jefferson, Suite 1100
City, State and Zip Code: Houston, Texas 77002
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Part II - Rules 12b-25 (b) and (c)
If the subject report could not be filed without unreasonable effort or expense
and the registrant seeks relief pursuant to Rule 12b-25(b), the following should
be completed. (Check box if appropriate)
[X] (a) The reasons described in reasonable detail in Part III of this form
could not be eliminated without unreasonable effort or expense;
[X] (b) The subject annual report, semi-annual report, transition report on
Form 10-K, 20-F, 11-K or Form N-SAR, or portion thereof will be filed
on or before the 15th calendar day following the prescribed due date;
or the subject quarterly report or transition report on Form 10-Q, or
portion thereof will be filed on or before the fifth calendar day
following the prescribed due date; and
[ ] (c) The accountant's statement or other exhibit required by rule
12b-25(c) has been attached if applicable.
Part III - Narrative
State below in reasonable detail the reasons why Form 10-K and form 10-KSB,
11-K, 20-F, 10-Q and Form 10-QSB, N-SAR or the transition report or portion
thereof could not be filed within the prescribed time period. (Attach extra
sheets if needed.)
The difficult conditions in the oil and gas exploration and production
industry, which have materially adversely affected the Company and which have
been previously reported, have made it impossible to conclude by March 31, 1999,
the year-end procedures necessary to timely complete the Company's Form 10-K
with respect to providing all of the required business, property and financial
information. Therefore, the Company is unable, without unreasonable effort and
expense, to file its Form 10-K for its fiscal year ended December 31, 1998, by
March 31, 1999. The Company is striving to conclude its year-end procedures and
anticipates filing its Form 10-K on or before April 14, 1999.
Part IV - Other Information
(1) Name and telephone number of person to contact in regard to this
notification.
Rick G. Lester 713/652-5200
(name) (area code) (telephone number)
(2) Have all other periodic reports required under Section 13 or 15(d)
of the Securities Exchange Act of 1934 or Section 30 of the Investment Company
Act of 1940 during the preceding
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12 months or for such shorter period that the registrant was required to file
such report(s) been filed? If the answer is no, identify report(s). [X] Yes [ ]
No
(3) Is it anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject report or
portion thereof? [X] Yes [ ] No
If so: attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the reasons why a
reasonable estimate of the results cannot be made.
As a result of the acquisition of properties in the fourth quarter of
1997 and a higher average debt load in 1998, the Company anticipates its
reported expenses for 1998, including production expenses, exploration expenses,
interest expenses and depreciation, depletion and amortization, will be
substantially higher than those reported expenses for 1997. In addition, the
Company expects to report a significant impairment of oil and gas properties in
the fourth quarter of 1998 due to low commodity prices at the end of the year.
The Company anticipates its reported revenues for 1998 will be marginally higher
than in 1997, due to increased production from the properties acquired in the
fourth quarter of 1997, significantly offset by lower oil and gas prices. As a
result, the Company anticipates reporting a substantial net loss for the fiscal
year ended December 31, 1998.
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Kelley Oil & Gas Corporation has caused this notification to be signed
on its behalf by the undersigned thereunto duly authorized.
Date: March 31, 1999
By: /s/ RICK G. LESTER
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Rick G. Lester, Chief Financial Officer
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