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): August 16, 2002
FORTUNE NATURAL RESOURCES CORPORATION
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(Exact name of Registrant as specified in its charter)
Delaware 1-12334 95-4114732
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
515 W. Greens Road, Suite 720, Houston, Texas 77067
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (281) 872-1170
Registrant's telecopier number, including area code: (281) 872-1213
N/A
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(Former name or former address, if changed since last report)
Item 5. Other Items
AUGUST 16, 2002 - HOUSTON, TEXAS - FORTUNE NATURAL RESOURCES CORPORATION
(NASDAQ OTC BB SYMBOL: FPXA) today announced that the first prospect drilled in
its Texas Onshore Exploration Program making use of a major energy company's
seismic database was logged last evening as a discovery. The Yarrow Prospect
well encountered approximately 15 feet of pay in the well's principle objective
zone. Completion operations have begun. Fortune has a 25% working interest in
the well. Fortune's share of the prospect leasing and drilling costs were
approximately $70,000, which were prepaid by the Company. In order to fund its
additional estimated $36,000 share of completion costs, certain members of its
board of directors lent the Company the $36,000 on a bridge loan basis
consistent with the terms of bridge loans provided by the directors earlier in
the year.
Texas Onshore Exploration Program Update
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As Fortune previously announced on February 20, 2002, it has acquired a
25% working interest and a co-operating position in a large-scale onshore oil
and gas exploration and development program in Texas (the "Program"). The
Program makes use of an approximate 48,000 mile major energy company's seismic
database covering East Texas, the Texas Gulf Coast and South Texas that has not
been previously available to the industry. Fortune and its partners have been
reprocessing the data with the latest state of the art technology and processing
techniques to significantly enhance the data.
Originally, Fortune announced that it anticipated a minimum of 50
drillable prospects would be identified from 250 prospect leads after 100% of
the seismic data had been reprocessed and interpreted (reprocessing is expected
to be completed by September 2003). With approximately 25% of the seismic data
fully reviewed, over 50 new prospects have already been identified. Fortune
anticipates additional prospects will be identified with similar characteristics
as reprocessing and review continues on the balance of approximately 75% of the
seismic data.
Once completion operations are completed on the Yarrow Prospect well, the
same rig will be moved to Fortune's Curly Duck Prospect to commence drilling
next week.
Executives' Remarks
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"We continue to be very pleased with the progress of our new Exploration
Program, especially now that we have entered the drilling phase. The quality and
quantity of the prospects identified so far have exceeded our expectations for
the program and support our feeling that this is truly a unique opportunity in
our industry, especially for a company of Fortune's size. It is very satisfying
to see the first prospect match our geologic and geophysical evaluation," stated
Ronald P. Nowak, Fortune's President and Chief Operating Officer.
"While times have been very difficult, we hope this is the first of many
successes on the prospects we are generating from the data. Our board has again
stepped up and assisted the Company with a financing to assist during these
difficult times in the capital markets," said Tyrone J. Fairbanks, Fortune's
Chairman and Chief Executive Officer.
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FORTUNE NATURAL RESOURCES CORPORATION is an independent oil and gas
exploration and production company with its principal properties located onshore
and offshore Louisiana and Texas. Certain statements in this news release
regarding future expectations and plans may be regarded as "forward looking
statements" within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. They are subject to various
risks, such as operating hazards, drilling risks, and other uncertainties
inherent in the business of exploring for, developing and producing oil and gas
which may be beyond Fortune's control. For a discussion of the contingencies and
uncertainties affecting future events and forward-looking statements, see
Fortune's Annual Report on Form 10-KSB for the year ended December 31, 2001 and
its quarterly reports on Form 10-QSB for the periods ended March 31, 2002 and
June 30, 2002, as well as other filings with the Securities and Exchange
Commission. There can be no assurance that Fortune will be successful in meeting
its expectations.
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Company Contact: Tyrone J. Fairbanks
Chairman and CEO
(281) 872-1170
investor@fortunenatural.com
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Item 7. Financial Statements and Exhibits
None
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SIGNATURE
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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.
FORTUNE NATURAL RESOURCES CORPORATION
By: /s/ Tyrone J. Fairbanks
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Tyrone J. Fairbanks
Chairman and Chief Executive Officer
Date: August 16, 2002
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