SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 of 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 13, 1997
FORTUNE PETROLEUM CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 1-12334 95-4114732
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
515 W. Greens Road, Suite 720, Houston, Texas 77067
(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
(Former name or former address, if changed since last report)
Item 5. Other Events
A. On March 13, 1997, Fortune Petroleum Corporation, together with the
Company's Espiritu Santo Bay 3-D Seismic Project joint venture
partners, elected to acquire its pro-rata share of the Steamboat Pass
Field, Calhoun County, Texas from Neumin Production Company. The
Steamboat Pass Field is adjacent to Matagorda Island and beneath
Espiritu Santo Bay, over which Fortune expects to commence its
proprietary 3-D seismic acquisition program beginning in April 1997.
The field is currently producing approximately 550 mcf of natural gas
per day from four shallow gas wells. The acquisition also entitles
Fortune to its pro-rata share of the existing facilities located on
site. Fortune acquired a 12.5% working interest in the 5,766 acres
held by production in the field. The acquisition is being made in
exchange for the assumption of Neumin's future obligation to plug and
abandon the field. The cost of such abandonment is not estimated to be
material to the Company. The transaction is scheduled to close March
25, 1997.
B. On March 14, 1997, Fortune was advised by Consolidated Natural Gas
Production Company ("CNG"), the operator of its offshore South
Timbalier Block 76 well, that CNG has scheduled a workover operation
on the well to locate and repair a leak which has caused the well to
lose casing pressure. A workover rig was moved on site March 23 and
the well was shut in on March 24, preparatory to beginning work. CNG
has indicated that it expects the workover to take up to 28 days to
complete, during which the well will remain shut in. Total cost of
this operation, depending on the location of the leak, is estimated
not to exceed $395,000 to Fortune's working interest share. Both the
cost and duration of the workover are estimates. No assurance can be
given that it will not be either more or less expensive than the
operator now anticipates or that the well will not be shut in for a
longer or shorter period of time. Fortune has consented to participate
in this workover.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
FORTUNE PETROLEUM CORPORATION
By: /s/ Dean W. Drulias
-------------------------------
Dean W. Drulias
Executive Vice President and
General Counsel
Date: March 24, 1997