UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 12b-25
NOTIFICATION OF LATE FILING
SEC File Number: 1-8979
CUSIP Number: 4381-3810-9
(Check One) [ ] Form 10-K [ ] Form 20-F [ ] Form 11-K
[X] Form 10-Q [ ] Form N-SAR
For the period ended: March 31, 1998
[ ] Transition Report on Form 10-K
[ ] Transition Report on Form 20-F
[ ] Transition Report on Form 11-K
[ ] Transition Report on Form 10-Q
[ ] Transition Report on Form N-SAR
For the transition period ended:
Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification relates to a portion of the filing checked above,
identify the item(s) to which the notification relates:
PART I -- REGISTRANT INFORMATION
Full name of Registrant: HONDO OIL & GAS COMPANY
Address of Principal Executive Office: 10375 RICHMOND AVENUE
SUITE 900
HOUSTON, TEXAS 77042
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PART II -- RULES 12b-25(b) AND (c)
If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed.
[X] (Check box if appropriate)
(a) The reasons described in reasonable detail in Part III of this form
could not be eliminated without unreasonable effort or expense;
(b) The subject annual report, semi-annual report, transition report on
Form 10-K, Form 20-F, Form 11-K, Form N-SAR, or portion thereof,
will be filed on or before the fifteenth calendar day following the
prescribed due date; or the subject quarterly report of transition
report on Form 10-Q, or portion thereof will be filed on or before
the fifth calendar day following the prescribed due date; and
(c) The accountant's statement or other exhibit required by Rule 12(b)-
25 has been attached if applicable.
PART III -- NARRATIVE
State below in reasonable detail the reasons why the Form 10-K, 20-F,
11-K, 10-Q, N-SAR or the transition report or portion thereof, could not
be filed within the prescribed time period.
The Company's principal asset is its interest in the Opon Association
Contract (the "Opon Contract"), an exploration concession for an area in
the Middle Magdalena Valley of Colombia, South America. Significant
reserves of natural gas and condensate were shown to exist in the Opon
Contract area by two discovery wells drilled during 1994 and 1995.
Production from these wells began in December 1997 following completion
of a pipeline.
In March 1998, the most recent well drilled at the Opon Contract area
was found to be a dry hole. Further, unexpected pressure declines in
the two flowing wells have occurred and have caused uncertainty about
the long-term viability of the project. As a result of this
uncertainty, the Company is negotiating with the operator of the Opon
project, Amoco Colombia Petroleum Company, regarding the status of the
Opon Contract. The results of these negotiations are expected to
significantly impact the content of the pending Form 10-Q. The
registrant is delaying the filing of its Form 10-Q to allow time for
completion of the negotiations.
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PART IV -- OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification:
S.J. Urquhart 713 954-4600
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(Name) (Area Code) (Telephone Number)
(2) Have all other periodic report required under Section 13 or 15(d)
of the Securities and Exchange Act of 1934 or Section 30 of the
Investment Company Act of 1940 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports) been filed? If answer is no, identify report(s).
[X] YES [ ] NO
(3) Is it anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year
will be reflected by the earnings statements to be included in the
subject report or portion thereof? [X] YES [ ] NO
If so, attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the
reasons why a reasonable estimate of the results cannot be made.
The Company began production from its only asset in December 1997.
Results of operations for the quarter ended March 31, 1998 include
a net operating profit of $0.3 million, an improvement of $1.3
million from the quarter ended March 31, 1997. Offsetting this
improvement is a charge of $8.5 million arising from the dry hole
described above. Also, interest charges increased by $1.1 million
because interest is no longer being capitalized for the pipeline
construction and by $0.5 million because of increases in the
Company's debt. Overall, results of operations for the quarter
ended March 31, 1998 were a loss of $11.9 million, compared to a
loss of $3.0 million from the quarter ended March 31, 1997.
HONDO OIL & GAS COMPANY
(Name of Registrant as Specified in Charter)
has caused this notification to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: May 15, 1998 By: /s/Stanton J. Urquhart
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Stanton J. Urquhart
Vice President and Controller
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