-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Q2umPQaIl+E+3TVu4GoNJ/oZ/goWsmIwicpJum0z3tWWaVQ4ZBHbyX1pXATCz5BU 6aa1UQIy0O/zL6hEu03Ljw== 0000950129-99-004829.txt : 19991109 0000950129-99-004829.hdr.sgml : 19991109 ACCESSION NUMBER: 0000950129-99-004829 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19990916 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991108 FILER: COMPANY DATA: COMPANY CONFORMED NAME: OCEAN ENERGY INC /TX/ CENTRAL INDEX KEY: 0000320321 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 741764876 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-08094 FILM NUMBER: 99743551 BUSINESS ADDRESS: STREET 1: 1001 FANNIN STE 1600 CITY: HOUSTON STATE: TX ZIP: 77002-6714 BUSINESS PHONE: 7139514700 MAIL ADDRESS: STREET 1: 1001 FANNIN, SUITE 1600 CITY: HOUSTON STATE: TX ZIP: 77002-6714 FORMER COMPANY: FORMER CONFORMED NAME: SEAGULL ENERGY CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: SEAGULL PIPELINE CORP DATE OF NAME CHANGE: 19830815 8-K 1 OCEAN ENERGY, INC. - DATED 09/16/99 1 ============================================================================== 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): September 16, 1999 -------------------- OCEAN ENERGY, INC. (Exact name of registrant as specified in its charter) Texas 1-8094 74-1764876 (State or other jurisdiction (Commission File (I.R.S. Employer of incorporation or organization Number) Identification Number) 1001 Fannin, Suite 1600 77002-6714 Houston, Texas (Zip Code) (Address of principal executive offices) Registrant's telephone number, including area code: (713) 265-6000 ============================================================================== 2 Item 5. Other Events. On November 2, 1999, Ocean Energy, Inc., a Texas corporation (the "Company"), announced the sale of ENSTAR Natural Gas Company and the Alaska Pipeline Company to SEMCO ENERGY, Inc. for total proceeds of approximately $290 million, as set forth in Exhibit 99.1 hereto. On October 20, 1999, the Company announced its financial results for the quarter ended September 30, 1999, as set forth in Exhibit 99.2 hereto. On September 16, 1999, the Company announced the sale of certain Arkoma Basin assets to Cross Timbers Oil Company for cash proceeds of approximately $231 million. The foregoing summary is subject to the full texts of the press releases with respect thereto, copies of which are attached hereto as Exhibit 99.1, Exhibit 99.2 and Exhibit 99.3 and are incorporated herein by reference. Item 7. Financial Statements and Exhibits. (c) Exhibits. 99.1 Press Release of the Company, dated November 2, 1999. 99.2 Press Release of the Company, dated October 20, 1999. 99.3 Press Release of the Company, dated September 16, 1999. 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. OCEAN ENERGY, INC. By: /s Robert K. Reeves ---------------------- Robert K. Reeves Executive Vice President, General Counsel and Secretary Dated: November 8, 1999 4 EXHIBIT INDEX Exhibit No. Description - ----------- ------------ 99.1 Press Release of the Company, dated November 2, 1999. 99.2 Press Release of the Company, dated October 20, 1999. 99.3 Press Release of the Company, dated September 16, 1999. EX-99.1 2 PRESS RELEASE, DATED 11/2/99 1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE [OCEAN ENERGY LOGO] November 2, 1999 CONTACT: John T. Raymond Vice President - Investor Relations 1001 Fannin, Suite 1600 Houston, Texas 77002 (713) 265-6161 OCEAN ENERGY CLOSES SALE OF ENSTAR AND ALASKA PIPELINE COMPANY FOR $290 MILLION HOUSTON - Ocean Energy, Inc. (NYSE: OEI) announced today that it has finalized the previously announced sale of ENSTAR Natural Gas Company and the Alaska Pipeline Company (together known as ENSTAR) to SEMCO ENERGY, Inc. (NASDAQ: SMGS) for total proceeds of approximately $290 million. The cash proceeds will be used to reduce the Company's outstanding indebtedness under its revolving credit facilities and for other corporate purposes. Chase Securities, Inc. acted as advisor to Ocean Energy in this transaction. "We are pleased to conclude the transaction with SEMCO, thus completing the restructuring of our asset base and balance sheet well ahead of anyone's expectations. We will continue to move aggressively to exploit our exceptional inventory of growth opportunities," said James T. Hackett, Ocean Energy President and Chief Executive Officer. Ocean Energy, Inc. is an independent energy company engaged in the exploration, development, production, and acquisition of crude oil and natural gas. North American operations are focused in the shelf and deepwater areas of the Gulf of Mexico, the Permian Basin, Midcontinent and Rocky Mountain regions. Internationally, the Company explores for and produces oil and gas in West Africa (Cote d'Ivoire and Equatorial Guinea), Egypt, Russia and Indonesia. Ocean Energy also has exploration programs underway in Angola, Pakistan, Yemen and Bangladesh. CERTAIN STATEMENTS IN THIS NEWS RELEASE REGARDING FUTURE EXPECTATIONS, PLANS FOR ACQUISITIONS, DISPOSITIONS, AND OIL AND GAS RESERVES, EXPLORATION, DEVELOPMENT, PRODUCTION AND PRICING MAY BE REGARDED AS "FORWARD LOOKING STATEMENTS" WITHIN THE MEANING OF THE SECURITIES LITIGATION REFORM ACT. THEY ARE SUBJECT TO VARIOUS RISKS, SUCH AS OPERATING HAZARDS, DRILLING RISKS, THE INHERENT UNCERTAINTIES IN INTERPRETING ENGINEERING DATA RELATING TO UNDERGROUND ACCUMULATIONS OF OIL AND GAS, AS WELL AS OTHER RISKS DISCUSSED IN DETAIL IN THE COMPANY'S SEC FILINGS, INCLUDING 2 THE ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1998. ACTUAL RESULTS MAY VARY MATERIALLY. FOR MORE INFORMATION, CONTACT INVESTOR RELATIONS AT (713) 265-6161 OR MAIL REQUESTS TO 1001 FANNIN, SUITE 1600, HOUSTON, TEXAS 77002. EX-99.2 3 PRESS RELEASE, DATED 10/20/99 1 EXHIBIT 99.2 FOR IMMEDIATE RELEASE [OCEAN ENERGY LOGO] October 20, 1999 CONTACT: John T. Raymond Vice President - Investor Relations 1001 Fannin, Suite 1600 Houston, Texas 77002 (713) 265-6161 OCEAN ENERGY ANNOUNCES THIRD QUARTER FINANCIAL RESULTS AND OPERATIONAL HIGHLIGHTS On March 30, 1999, Ocean Energy, Inc. merged with and into Seagull Energy Corporation and the resulting company was renamed Ocean Energy, Inc. The merger was treated for accounting purposes as an acquisition of Seagull by Ocean Energy in a purchase business transaction. As such, the financial results presented here for the third quarter of 1998 represents Ocean Energy, Inc. on a stand-alone basis. THIRD QUARTER FINANCIAL RESULTS HOUSTON - Ocean Energy, Inc. (NYSE: OEI) today announced net income available to common shareholders for the third quarter of 1999 of $28.0 million, or $0.17 per basic share on revenues of $214.4 million. By comparison, the net loss for the third quarter of 1998 was $14.4 million, or a $0.14 per share loss on revenues of $123.4 million. THE COMPANY'S CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL AS REPORTED FOR THE FIRST NINE MONTHS OF 1999 WAS $214.7 MILLION, COMPARED TO $172.8 MILLION FOR THE SAME PERIOD IN 1998. AVERAGE DAILY PRODUCTION FOR THE THIRD QUARTER OF 1999 WAS 470 MILLION CUBIC FEET (MMCF) OF GAS AND 78 THOUSAND BARRELS OF OIL, OR 156 THOUSAND BARRELS OF OIL EQUIVALENT PER DAY (TBOEPD), COMPARED TO 112 TBOEPD FOR THE THIRD QUARTER OF 1998. In the third quarter, lease operating expense (LOE), including severance tax, totaled $54.7 million or $3.81 per barrel of oil equivalent (BOE) as compared to $4.85 per BOE in the third quarter of 1998 and $4.38 per BOE in the second quarter of 1999. 2 The Company made significant progress on its asset rationalization program in the third quarter with the closing of the Arkoma Basin and Gulf of Mexico asset packages for total cash proceeds of $291 million. The previously announced sale of the ENSTAR business unit for $290 million is anticipated to close by the end of the year. These sales, when combined with first quarter activities in aggregate, will generate estimated net cash proceeds in excess of $700 million, which will be used to reduce debt. As a result, the Company estimates that debt to total capitalization will be 58% at year-end as compared to 68% at the time of the merger. "The substantial improvement in the cost structure is consistent with our stated objectives to further improve the Company's operating efficiency. Both G&A and LOE savings are on target, and upon completion of the ENSTAR sale, the reduction in debt is expected to result in a 30% improvement in interest expense per BOE in 2000 as compared to the time of the merger," stated James T. Hackett, Ocean Energy President and CEO. THIRD QUARTER OPERATIONAL HIGHLIGHTS Year to date, the Company has participated in over 277 wells with an overall success rate of 78%. The Company has experienced an 82% development drilling success rate and a 61% exploratory drilling success rate in 1999. INTERNATIONAL In Equatorial Guinea Block B, for the quarter, gross daily production averaged approximately 100 thousand barrels of oil per day (tbopd), which, on a net basis, equates to 21 tbopd. Currently, the Phase III Jade platform installation is on schedule for late December with drilling to commence in the first quarter of 2000. As a result, the Company anticipates achieving its projected 2000 gross exit rate of 120 tbopd. In Egypt, third quarter production averaged 11 tboepd. In the West Abu Gharadig concession (OEI 30%) the Raml SW #2 was successfully drilled and is on production with an initial rate of 2,500 bopd and the Company plans to drill two additional wells by year-end. In the East Beni Suef concession (OEI 50%), production resumed in late September towards a target rate of 2,000 bopd (gross). Offshore Pakistan, the Company is currently drilling the Pasni #1 exploratory well (OEI 76%). This is OEI's first well in Pakistan, and it is scheduled to reach targeted objectives during the fourth quarter. The Company's other international producing areas, namely Cote d'Ivoire, Russia and Indonesia, represent approximately 11% of daily production. These areas on a combined basis produced approximately 17 tboepd, which is comparable with first and second quarter results. Production levels have been maintained with minimal capital expenditures. GULF OF MEXICO Recently, the Company has announced two discoveries in the deepwater Gulf of Mexico. The Nansen prospect (OEI 50%) and the North Boomvang prospect (OEI 20%). As previously reported, Ocean and its partners are proceeding on delineation drilling on both discoveries. 3 Activities continue on the Gulf of Mexico shelf Duke (NYSE: DUK) drilling program. Through the third quarter, the Company has drilled six wells with a success rate of 50% and expects to spud seven additional wells before the end of this year. In the Central Gulf region, the Company successfully drilled the Cobra exploratory prospect (OEI 50%), another discovery in the Little Lake field, which tested at 12.7 MMcfpd and 1,037 bopd. In the South Timbalier 219 and 211 blocks, the Schooner #1 (OEI 25%) and #2 (OEI 20%) exploratory wells were both successfully drilled. Both wells will be completed and placed on production in the first half of next year. U.S. ONSHORE This year, in the Bear Paw area, the Company has drilled 87 wells to date with 62 being producers. A total of 90 wells are planned for this year. Additional compression and minor modifications are planned by year-end allowing for our planned exit rate of 44 MMcfpd net. The East Triangle coal bed methane project, located in the Powder River Basin of Wyoming, is in the testing phase with 18 wells on production and nine wells waiting to be placed on production. The pilot program will test 1,080 acres of our 24,000 acres net holding. Upon successful dewatering results from the pilot program we will continue with additional drilling. In the Cook Inlet area of Alaska, the saltwater disposal well and two coal bed methane pilot wells have been drilled and completed. Testing is underway on the two pilot wells. Additionally, Ocean has exercised a preferential right to purchase 50% of Esenjay Exploration, Inc.'s (Nasdaq: ESNJ) working interest in two Wilcox prospects in South Texas for $1.5 million. This purchase includes a four well drilling commitment. Ocean Energy, Inc. is an independent energy company engaged in the exploration, development, production and acquisition of crude oil and natural gas. North American operations are focused in the shelf and deepwater areas of the Gulf of Mexico, the Permian Basin, Midcontinent and Rocky Mountain regions. Internationally, the Company explores for and produces oil and gas in West Africa (Cote d'Ivoire and Equatorial Guinea), Egypt, Russia and Indonesia. Ocean Energy also has exploration programs underway in Angola, Pakistan, Yemen and Bangladesh. CERTAIN STATEMENTS IN THIS NEWS RELEASE REGARDING FUTURE EXPECTATIONS, PLANS FOR ACQUISITIONS, DISPOSITIONS, AND OIL AND GAS RESERVES, EXPLORATION, DEVELOPMENT, PRODUCTION AND PRICING MAY BE REGARDED AS "FORWARD LOOKING STATEMENTS" WITHIN THE MEANING OF THE SECURITIES LITIGATION REFORM ACT. THEY ARE SUBJECT TO VARIOUS RISKS, SUCH AS OPERATING HAZARDS, DRILLING RISKS, THE INHERENT UNCERTAINTIES IN INTERPRETING ENGINEERING DATA RELATING TO UNDERGROUND ACCUMULATIONS OF OIL AND GAS, THE RISK THAT THE PREVIOUSLY ANNOUNCED SALE OF ENSTAR DOES NOT CLOSE, AS WELL AS OTHER RISKS DISCUSSED IN DETAIL IN THE COMPANY'S SEC FILINGS, INCLUDING THE ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1998. ACTUAL RESULTS MAY VARY MATERIALLY. 4 For further information, please contact Investor Relations by phone at (713) 265-6161, by mail send requests to Investor Relations, 1001 Fannin, Suite 1600, Houston, Texas 77002 or at our web site at www.oceanenegy.com. 5 OCEAN ENERGY, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Amounts in Thousands Except Per Share Data) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ---------------------- ---------------------- 1999 1998 1999 1998 --------- --------- --------- --------- Revenues ............................................ $ 214,393 $ 123,369 $ 516,293 $ 397,334 --------- --------- --------- --------- Costs of Operations: Operations and maintenance ..................... 54,672 50,048 165,278 135,460 Depreciation, depletion and amortization ....... 85,615 70,221 233,732 217,719 Provision for loss on sale of Canadian assets .. -- -- 28,500 -- Write-down of oil and gas properties ........... -- -- -- 218,392 General and administrative ..................... 4,955 4,628 18,038 13,646 --------- --------- --------- --------- 145,242 124,897 445,548 585,217 --------- --------- --------- --------- Operating Profit (Loss) ............................. 69,151 (1,528) 70,745 (187,883) Other (Income) Expense: Interest expense ............................... 30,410 18,621 86,601 40,562 Merger expense ................................. 3,176 -- 43,828 39,000 Interest income and other ...................... (269) (1,286) (383) (2,094) --------- --------- --------- --------- 33,317 17,335 130,046 77,468 --------- --------- --------- --------- Income (Loss) Before Income Taxes ................... 35,834 (18,863) (59,301) (265,351) Income Tax Expense (Benefit) ........................ 6,404 (4,446) (9,269) (87,955) --------- --------- --------- --------- Income (Loss) from Continuing Operations ............ 29,430 (14,417) (50,032) (177,396) Loss from Discontinued Operations, net of income taxes ................................... (625) -- (78) -- --------- --------- --------- --------- Net Income (Loss) ................................... 28,805 (14,417) (50,110) (177,396) Preferred Stock Dividend ............................ 819 -- 2,456 -- --------- --------- --------- --------- Net Income (Loss) Available to Common Shareholders ................................... $ 27,986 $ (14,417) $ (52,566) $(177,396) ========= ========= ========= ========= Basic Earnings (Loss) Per Common Share: Income (Loss) from Continuing Operations ... $ 0.17 $ (0.14) $ (0.36) $ (1.76) Discontinued Operations .................... -- -- -- -- --------- --------- --------- --------- Income (Loss) to Common Shareholders ........ $ 0.17 $ (0.14) $ (0.36) $ (1.76) ======== ========= ========= ========= Diluted Earnings (Loss) Per Common Share: Income (Loss) from Continuing Operations ... $ 0.16 $ (0.14) $ (0.36) $ (1.76) Discontinued Operations .................... -- -- -- -- --------- --------- --------- --------- Income (Loss) to Common Shareholders ....... $ 0.16 $ (0.14) $ (0.36) $ (1.76) --------- --------- --------- --------- Weighted Average Number of Common Shares Outstanding: Basic ...................................... 166,680 100,924 145,670 100,544 ========= ========= ========= ========= Diluted .................................... 170,629 100,924 145,670 100,544 ========= ========= ========= =========
6 OCEAN ENERGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in Thousands)
September 30, December 31, 1999 1998 ------------- ------------ (Unaudited) ASSETS: Current Assets .................................... $ 251,816 $ 153,781 Property, Plant and Equipment, Net ................ 2,164,632 1,581,639 Net Noncurrent Assets of Discontinued Operations .. 222,112 -- Other Assets ...................................... 267,761 271,540 ---------- ---------- Total Assets ...................................... $2,906,321 $2,006,960 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY: Interest Payable .................................. $ 34,024 $ 36,206 Other Current Liabilities ......................... 253,336 200,140 Current Maturities of Long-Term Debt .............. 846 836 ---------- ---------- Total Current Liabilities ..................... 288,206 237,182 Long-Term Debt .................................... 1,538,697 1,371,890 Other Noncurrent Liabilities ...................... 140,949 20,945 Shareholders' Equity .............................. 938,469 376,943 ---------- ---------- Total Liabilities and Shareholders' Equity ........ $2,906,321 $2,006,960 ========== ==========
7 OCEAN ENERGY, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Amounts in Thousands) (Unaudited)
Nine Months Ended September 30, ------------------------ 1999 1998 --------- --------- Operating Activities: Net loss ...................................................................... $ (50,110) $(177,396) Adjustments to reconcile net loss to net cash provided by operating activities: Loss from discontinued operations ........................................ 78 -- Depreciation, depletion and amortization ................................. 233,732 217,719 Provision for loss on sale of Canadian assets ............................ 28,500 -- Write-down of oil and gas properties ..................................... -- 218,392 Deferred income taxes .................................................... (24,702) (91,253) Noncash merger expense ................................................... 21,047 -- Other .................................................................... 6,180 5,294 --------- --------- 214,725 172,756 Changes in operating assets and liabilities, net of acquisitions ......... (18,319) (24,427) --------- --------- Net cash provided by continuing operations ............................... 196,406 148,329 Net cash provided by discontinued operations ............................. 14,377 -- --------- --------- Net Cash Provided By Operating Activities ................................ 210,783 148,329 --------- --------- Investing Activities: Capital expenditures .......................................................... (231,976) (669,798) Capital expenditures of discontinued operations ............................... (5,040) -- Acquisition costs, net of cash acquired ....................................... (5,623) -- Proceeds from sales of property, plant and equipment .......................... 390,512 1,097 --------- --------- Net Cash Provided By (Used In) Investing Activities ...................... 147,873 (668,701) --------- --------- Financing Activities: Net proceeds (payments) from revolver and other borrowings .................... (410,824) 531,082 Proceeds from deferred revenue ................................................ 100,000 -- Deferred financing costs ...................................................... (6,406) (15,433) Other ......................................................................... 1,745 7,583 --------- --------- Net Cash Provided By (Used In) Financing Activities ...................... (315,485) 523,232 --------- --------- Increase in Cash and Cash Equivalents .................................... 43,171 2,860 Cash and Cash Equivalents At Beginning of Period .............................. 10,706 11,689 --------- --------- Cash and Cash Equivalents At End of Period .................................... $ 53,877 $ 14,549 ========= =========
8 OCEAN ENERGY, INC. OPERATIONAL INFORMATION (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------ ----------------------- 1999 1998 1999 1998 ------- ------- -------- --------- Financial Data (Dollars in Thousands): Operating Profit (Loss): Oil and Gas Operations ................................................ $76,398 $ 4,092 $ 94,892 $(171,257) Corporate ............................................................. (7,247) (5,620) (24,147) (16,626) Depreciation, Depletion and Amortization: Oil and Gas Operations ................................................ 83,323 69,229 227,623 214,739 Corporate ............................................................. 2,292 992 6,109 2,980 Operations Data: Net Daily Natural Gas Production (MMcf): Domestic (1) ...................................................... 427.5 267.8 382.0 273.0 Canada (2) ........................................................ -- 24.9 14.0 25.7 Cote d'Ivoire (1) ................................................. 33.9 20.7 29.8 20.2 Egypt (1) ......................................................... 0.9 -- 0.7 -- Indonesia (1) ..................................................... 7.6 -- 4.4 -- ------- ------- -------- --------- Total ............................................................. 469.9 313.4 430.9 318.9 ======= ======= ======== ========= Average Natural Gas Prices ($ per Mcf): Domestic (1) ...................................................... $ 2.38 $ 1.84 $ 2.03 $ 2.00 Canada (2) ........................................................ $ -- $ 1.23 $ 1.54 $ 1.27 Cote d'Ivoire (1) ................................................. $ 1.77 $ 1.64 $ 1.73 $ 1.67 Egypt (1) ......................................................... $ 3.94 $ -- $ 3.32 $ -- Indonesia (1) ..................................................... $ 2.26 $ -- $ 2.14 $ -- Weighted Average .................................................. $ 2.34 $ 1.78 $ 2.00 $ 1.92 Average Natural Gas Prices Including Hedging Activities ($ per Mcf).... $ 2.36 $ 1.79 $ 2.01 $ 1.92 Net Daily Oil and NGL Production (Bbl): Domestic (1) ...................................................... 36,522 36,942 38,340 40,419 Canada (2) ........................................................ -- 1,326 469 1,243 Cote d'Ivoire (1) ................................................. 5,046 3,487 4,839 2,613 Equatorial Guinea ................................................. 20,774 18,139 19,902 16,693 Egypt (1) ......................................................... 10,729 -- 7,447 -- Russia (1) ........................................................ 4,492 -- 2,896 -- Indonesia (1) ..................................................... 111 -- 72 -- ------- ------- -------- --------- Total ............................................................. 77,674 59,894 73,965 60,968 ======= ======= ======== ========= Average Oil and NGL Prices ($ per Bbl): Domestic (1) ...................................................... $ 18.99 $ 12.07 $ 15.07 $ 12.93 Canada (2) ........................................................ $ -- $ 12.08 $ 11.27 $ 12.05 Cote d'Ivoire (1) ................................................. $ 20.24 $ 11.52 $ 16.56 $ 13.33 Equatorial Guinea ................................................. $ 21.69 $ 11.70 $ 16.11 $ 12.38 Egypt (1) ......................................................... $ 20.06 $ -- $ 17.70 $ -- Russia (1) ........................................................ $ 12.82 $ -- $ 9.54 $ -- Indonesia (1) ..................................................... $ 16.87 $ -- $ 14.88 $ -- Weighted Average .................................................. $ 19.58 $ 11.93 $ 15.47 $ 12.78 Average Oil and NGL Prices Including Hedging Activities ($ per Bbl) .......................... $ 15.74 $ 13.02 $ 13.84 $ 13.81
(1) The Company's Egyptian, Russian and Indonesian operations, and a portion of its domestic and Ivoirian operations were acquired as a result of the merger on March 31, 1999. (2) The Company's Canadian operations were sold on April 15, 1999. EX-99.3 4 PRESS RELEASE, DATED 09/16/99 1 EXHIBIT 99.3 FOR IMMEDIATE RELEASE [OCEAN ENERGY LOGO] September 16, 1999 CONTACT: John T. Raymond Vice President - Corporate Development and Investor Relations 1001 Fannin, Suite 1600 Houston, Texas 77002 (713) 265-6161 OCEAN ENERGY CLOSES SALE OF ARKOMA ASSETS FOR $231 MILLION HOUSTON - Ocean Energy, Inc. (NYSE: OEI) announced today that it has finalized the previously announced sale of certain Arkoma Basin assets to Cross Timbers Oil Company (NYSE: XTO) for cash proceeds of approximately $231 million. The proceeds will be utilized to reduce the Company's outstanding indebtedness under its revolving credit facilities. "At the time of the merger, we targeted a minimum of $200 million in asset divestitures in 1999. To date, we have announced approximately $730 million in sales. With the closing of this transaction and the recent sale of certain Gulf of Mexico assets, the announced divestiture program is complete with the only outstanding issue being the completion of the sale of ENSTAR. On that front, things are progressing as planned and accordingly, we anticipate closing by year-end. With the majority of the divestiture program behind us, we are now dedicating our focus to operating results and growth," said James T. Hackett, Ocean Energy President and CEO. Banc of America Securities LLC acted as financial advisor to Ocean Energy in this transaction. Ocean Energy, Inc. is an independent energy company engaged in the exploration, development, production, and acquisition of crude oil and natural gas. North American operations are focused in the shelf and deepwater areas of the Gulf of Mexico, the Permian Basin, Midcontinent and Rocky Mountain regions. Internationally, the Company explores for and produces oil and gas in West Africa (Cote d'Ivoire and Equatorial Guinea), Egypt, Russia and Indonesia. OEI also has exploration programs underway in Angola, Pakistan, Yemen and Bangladesh. CERTAIN STATEMENTS IN THIS NEWS RELEASE REGARDING FUTURE EXPECTATIONS, PLANS FOR ACQUISITIONS, DISPOSITIONS, AND OIL AND GAS RESERVES, EXPLORATION, DEVELOPMENT, PRODUCTION AND PRICING MAY BE REGARDED AS "FORWARD LOOKING STATEMENTS" WITHIN THE MEANING OF THE SECURITIES LITIGATION REFORM ACT. THEY ARE SUBJECT TO VARIOUS RISKS, SUCH AS OPERATING HAZARDS, DRILLING RISKS, THE INHERENT UNCERTAINTIES IN INTERPRETING ENGINEERING DATA RELATING TO UNDERGROUND ACCUMULATIONS OF OIL AND GAS, THE RISK THAT THE PREVIOUSLY ANNOUNCED SALE OF ENSTAR DOES NOT CLOSE, AS WELL AS OTHER RISKS DISCUSSED IN DETAIL IN THE COMPANY'S SEC FILINGS, INCLUDING THE ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1998. ACTUAL RESULTS MAY VARY MATERIALLY. FOR MORE INFORMATION, CONTACT INVESTOR RELATIONS AT (713) 265-6161 OR MAIL REQUESTS TO 1001 FANNIN, SUITE 1600, HOUSTON, TEXAS 77002. -----END PRIVACY-ENHANCED MESSAGE-----