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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): July 10, 1998
ENERGY SEARCH, INCORPORATED
(Exact Name of Registrant as Specified in Charter)
TENNESSEE 001-12679 62-1423071
(State or Other Jurisdic- (Commission (IRS Employer
tion of Incorporation) File Number) Identification No.)
280 FORT SANDERS WEST BLVD., SUITE 200
KNOXVILLE, TENNESSEE 37922
(Address of Principal Executive Offices) (Zip Code)
(800) 551-5810
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On June 25, 1998, the Company acquired certain oil and gas
properties from Viking Resources, Inc. and certain other minor nonoperating
working interest owners. The total purchase price for the assets was
$1,750,000. The properties included 56 producing wells producing
approximately 900 mcf of gas per day, as well as oil and gas leasehold
interests, licenses and rights-of-way, wellhead, wellsite, metering, gas
gathering and transportation pipelines and other related equipment.
Neither the Company, nor any of its officers, directors or associates or
affiliates have any material relationship with the seller, Viking
Resources, Inc.
The Company used working capital and proceeds of its existing
credit facility with Bank One-Texas, N.A. to fund the acquisition.
The seller held the assets acquired for development and
production of oil and gas. The Company intends to hold and operate the
assets for the same purpose.
This report contains no financial statements relating to the
assets acquired, and at this time, the Company does not believe that any
such financial statements are required to be filed. In the event that such
financial statements are required to be filed, the same will be included in
an amendment to this report to be filed within 60 days.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION, AND
EXHIBITS.
(c) Exhibits:
99 Press Release
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
Dated: July 10, 1998 ENERGY SEARCH, INCORPORATED
By /S/ RICHARD S. COOPER
Richard S. Cooper, President
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EXHIBIT INDEX
EXHIBIT
NUMBER DOCUMENT
99 Press Release
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EXHIBIT 99
ENERGY SEARCH INCORPORATED
280 Ft. Sanders West Blvd.
Suite 200, Knoxville, TN 37922
Telephone: 423-531-6562
Telefax: 423-531-1435 NEWS RELEASE [LOGO]
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CONTACT: Charles P. Torrey Release 98-26
Chief Executive Officer
800-551-5810
For Immediate Release:
ENERGY SEARCH ACQUIRES OIL & GAS PROPERTY;
BOOSTS PRODUCTION AND EARNINGS PROSPECTS
KNOXVILLE, Tenn., June 25, 1998/PRNewswire/ - Energy Search, Incorporated
(Nasdaq: EGAS; BSE; EYS) has acquired from Viking Resources Corporation,
North Canton, Ohio, an oil and gas property in southeastern Ohio for $1.75
million in cash. The property presently has 56 wells producing
approximately 900 thousand cubic feet of gas per day.
According to Energy Search, Incorporated chairman and chief executive
officer Charles P. Torrey, "We purchased the property because it is
adjacent and synergistic to our existing southeastern Ohio properties,
offering economies of scale. Furthermore, the current wells offer uphole,
behind pipe, nonproducing reserves available for future completion."
Torrey added that Energy Search was also attracted to the property because
it has several additional developmental drill sites and is serviced by a
favorable long term gas transmission contract.
Torrey said that based upon Energy Search's current production of
approximately 3 million cubic feet per day, the additional 900 thousand
cubic feet of natural gas produced by the newly acquired property
represents an approximate 30% increase in production. "This acquisition
together with our current twenty-well drilling program is expected to
result in a substantial increase in gas production for the company's
account," said Torrey. We will continue to seek properties which increase
production, are synergistic to current operations, and offer additional
development drilling opportunities.
Energy Search, Incorporated is an independent oil and gas exploration and
production company focused primarily on developmental drilling and
production of natural gas reserves in the Appalachian Basin and elsewhere
in the mid-continent region of the United States.
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Certain statements in this news release regarding future expectations and
plans for oil and gas exploration and development may be regarded as
"forward-looking statements" within the meaning of the Securities
Litigation Reform Act. They are subject to various risks, such as inherent
uncertainties in interpreting geologic and engineering data relating to
underground accumulations of oil and gas, discussed in detail in the
Company's SEC filings. Actual results may vary materially.
