-----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, Hvf7BBUWJ5JdnF6OUvyDMvD2gHVq0PRg+ai0MVqSGy3JAUxdcAWxUeTSSZcgyjZr /3uf92zYyOoWg2wzvLrWVQ== 0000927356-97-000119.txt : 19970221 0000927356-97-000119.hdr.sgml : 19970221 ACCESSION NUMBER: 0000927356-97-000119 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970207 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970210 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BARRETT RESOURCES CORP CENTRAL INDEX KEY: 0000351993 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 840832476 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13446 FILM NUMBER: 97522744 BUSINESS ADDRESS: STREET 1: 1515 ARAPAHOE ST STREET 2: TOWER 3 STE 1000 CITY: DENVER STATE: CO ZIP: 80202 BUSINESS PHONE: 3032973900 MAIL ADDRESS: STREET 1: 1515 ARAPAHOE ST STREET 2: TOWER 3 STE 1000 CITY: DENVER STATE: CO ZIP: 80202 FORMER COMPANY: FORMER CONFORMED NAME: AIMEXCO INC DATE OF NAME CHANGE: 19840215 8-K 1 FORM 8-K - BARRETT RESOURCES 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): February 7, 1997 Barrett Resources Corporation ---------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-13446 84-0832476 - ---------------------------- ---------------- -------------------- (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 1515 Arapahoe Street, Tower 3, Suite 1000, Denver, Colorado 80202 ---------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (303) 572-3900 -------------- Item 5. Other Events ------------ (a) Press Release. The information set forth in a Press Release of Barrett ------------- Resources Corporation (the "Company" or the "Registrant") dated February 7, 1997, which is filed as an exhibit hereto, is incorporated herein by reference. (b) Drilling Of Cave Gulch #16 Well. The Company's Cave Gulch #16 well ------------------------------- has reached total depth of 19,106 feet. The Company plans to begin testing the well in mid-March 1997. (c) Amendment Of Bank Credit Facility. The current borrowing base under --------------------------------- the Company's bank credit facility is $205 million, based on the lending banks' review of June 30, 1996 proved reserve information and the Company's projected cash requirements. The banks have agreed that, upon the contemplated issuance of $150 million of senior notes of the Company due in the year 2007, the borrowing base will be reduced to $75 million. Also upon completion of the contemplated issuance of the $150 million of senior notes, the banks will cancel the guarantees of the bank credit facility by the Company's subsidiaries, and the Company will undertake during the next year to merge or consolidate certain of its subsidiaries, including Plains Petroleum Operating Company, with the Company, or to acquire substantially all the assets of those subsidiaries. The Company will not consummate the merger or consolidation with the Company, or the asset acquisition, of any subsidiary in the event that, in the good faith judgment of the banks, those actions are prevented by material legal or accounting issues or will result in a material and adverse tax or economic detriment to the Company and its subsidiaries. (d) Participation In Maranon Basin, Peru. In late January 1997, the ------------------------------------ Company entered into an agreement with industry partners that provided the Company with a license covering approximately two million gross acres located in the Maranon Basin of northeastern Peru. The Company and its partners intend to acquire and analyze 200 to 250 miles of seismic data in preparation for exploratory drilling to begin in late 1997 or early 1998. The Company's participation, which is subject to approval of the government of Peru, is intended to consist of a 45 percent working interest, subject to a cost commitment of 60 percent of the 1996 and 1997 seismic costs and 60 percent of the cost of up to three exploratory wells. It is anticipated that the Company will be designated operator for operations in this area in mid-1997. (e) Disclosure Regarding Forward-Looking Statements. This Current Report ----------------------------------------------- on Form 8-K includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical facts included in this Current Report, including without limitation statements under "Item 5-- Other Events--(a) Press Release", "--(b) Drilling Of Cave Gulch #16 Well," and "--(d) Participation In Maranon Basin, Peru", regarding the Company's reserve quantities and net present values, business strategy, plans and objectives of management of the Company for future operations and capital expenditures, are forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements and the assumptions upon which such forward-looking statements are based are reasonable, it can give no assurance that such expectations and assumptions will prove to have been correct. Reserve estimates are generally different from the quantities of oil and natural gas that are ultimately recovered. The nature of the natural gas and oil business involves a variety of risks, including the risks of operating hazards such as fires, explosions, cratering, blow-outs, encountering formations with abnormal pressures and damage or loss from adverse weather and seas, the occurrence of any of which could result in losses to the Company. Additional important factors that could cause actual results to differ materially from the Company's expectations ("Cautionary Statements") are disclosed in the "Risk Factors" section of the Prospectus 2 included in the Registration Statement on Form S-3 of the Company (Registration No. 333-19363) and elsewhere in that Prospectus. All written and oral forward- looking statements attributable to the Company or persons acting on its behalf subsequent to the date of this Current Report are expressly qualified in their entirety by the Cautionary Statements. Item 7. Financial Statements And Exhibits. --------------------------------- (c) Exhibits Exhibit Number Description - ------ ----------- 99.1 Press Release dated February 7, 1997. 3 SIGNATURE 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 hereunto duly authorized. Date: February 10, 1997 BARRETT RESOURCES CORPORATION By: /s/ Robert W. Howard -------------------------------- Robert W. Howard Senior Vice President 4 EX-99.1 2 PRESS RELEASE EXHIBIT 99.1 On February 7, 1997, the Registrant issued the following press release: "FOR IMMEDIATE RELEASE Contact: Donald H. Stevens --------------------- Laura M. Burford (303) 572-3900 BARRETT'S 1996 RESERVES INCREASED 38% DENVER, COLO., FEB. 7, 1997 -- Barrett Resources Corporation (NYSE: BRR) announced that proved reserves at year end 1996, after production, increased approximately 38 percent over the prior year. Total proved reserves for December 31, 1996 were 675 billion cubic feet (Bcf) of natural gas and 23 million barrels (MMbls) of crude oil and condensate, totaling 814 Bcf of gas equivalent (Bcfe) or 136 million barrels of oil equivalent (MMBOE) of which 26 percent is proved undeveloped. Total proved reserves at December 31, 1995 were 514 Bcf of natural gas and 13 MMbls of oil and condensate, totaling 591 Bcfe (99 MMBOE) of which 18 percent was proved undeveloped. The Company added 295 Bcfe of proved reserves in 1996, which replaced 410 percent of 1996's estimated production of 72 Bcfe. Approximately 47 percent of the 1996 proved reserve additions were through extensions and discoveries and revisions. The Company's acquisitions accounted for approximately 53 percent of the 1996 proved reserves additions, the majority of which are located in the Piceance and Uinta Basins (in Colorado and Utah, respectively). The following table summarizes the present value of estimated future net revenues (before future income taxes, discounted by 10 percent) ("PV-10") for December 31, 1995 and 1996 and the respective year end natural gas and oil prices used in determining each PV-10.
12/31/95 12/31/96 % Change -------- -------- -------- Prices for Oil ($/Bbl) $17.35 $24.12 39% Prices for Gas ($/Mcf) $1.77 $3.46 95% Present Value of Estimated Future Net Revenues (before future income taxes, discounted by 10%) ($ in millions) $432.6 $1,121.5 159%
When using the 1996 average price received for natural gas and oil of $1.90 and $18.50, respectively, to calculate the December 31, 1996 reserve value, the PV- 10 would have been $534.6 million. (continued) The Company's proved reserves by basin for December 31, 1995 and 1996 are summarized in the following table:
Total Proved Reserves (Bcfe) ---------------------------- Basin/Area 12/31/95 12/31/96 % Change - ---------- -------- -------- -------- Anadarko 33 46 39% Arkoma 27 27 0% Greater Green River 4 15 275% Gulf of Mexico 9 24 167% Hugoton 201 212 5% Permian 39 32 -18% Piceance 119 201 69% Powder River 30 32 7% Uinta 4 92 2200% Wind River 88 96 9% Other 37 37 0% -------- -------- -------- Total 591 814 38% ======== ======== ========
Separately, Barrett reported that its Cave Gulch #16 well is currently drilling at a depth of 18,940 feet. Based on information obtained to date, Barrett intends to drill this well to a depth of 19,100 feet. Total depth is currently anticipated to be reached by mid-February. Barrett Resources is a Denver-based independent natural gas and oil exploration and production company that is also involved in gas gathering, marketing and trading activities. Barrett's properties are focused primarily in the Rocky Mountain region of Colorado, Wyoming and Utah, the Mid-Continent area of Kansas, Oklahoma, New Mexico and Texas, and the Gulf of Mexico region of offshore Texas and Louisiana. ###" -----END PRIVACY-ENHANCED MESSAGE-----