SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
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)
May 8, 2001
EEX CORPORATION
(Exact name of Registrant as specified in its charter)
Texas 1-12905 75-2421863
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
2500 CityWest Boulevard, Suite 1400, Houston, Texas 77042
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including Area Code (713)243-3100
ITEM 5. Other Events
A. Set forth below is the text of a News Release issued by EEX Corporation on
May 8, 2001:
EEX UPDATES RECENT OPERATIONAL ACTIVITIES
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HOUSTON, TEXAS (May 8, 2001) -- EEX Corporation (NYSE: EEX) summarizes
recent activities in the onshore, Gulf of Mexico and international programs.
Onshore
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EEX's onshore unit realized an 88% success rate in the 16 wells drilled
during in the first quarter. Of the 15 development wells drilled, 13 resulted
in productive completions. The single exploration well drilled was a producer.
Of the 14 successful wells, ten are flowing to sales and the remaining four will
be tied to sales in the second quarter. At the end of the first quarter, two
additional wells were in the process of completion and six wells were drilling.
Having resolved the right of way issues that delayed construction, the
pipeline from the Langtry field, in the Val Verde basin of West-central Texas,
began flowing natural gas last week. The additional production from this new
pipeline should increase EEX's net onshore production rates by more than 10
million cubic feet per day. EEX is currently pursuing a six well, two-rig
drilling program in the field. Elsewhere in Texas, at the 100% EEX-owned
Vaquillas Ranch field, the Company has added a second rig in order to accelerate
a ten-well drilling program that commenced in early May.
"While pipeline construction delays and property sales in 2000 caused our
natural gas production to dip slightly during the first quarter, recent events
and our accelerated onshore drilling program should get us back on track toward
a growing production profile," said Tom Hamilton, Chairman and President, Chief
Executive Officer.
DeepWater - Llano Area Activity
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The semi-submersible drilling rig, Arctic I, is expected to return to EEX
before the end of May. At that time, the rig will move to the Llano field to
drill an appraisal/development well. "We hope that following the evaluation of
the results from this latest proposed well, the Llano owners will be able to
agree upon, submit and have approved by the MMS a plan of development before the
end of the first quarter 2002," said Hamilton.
Jason Discovery
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Since the December 2000 announcement of a discovery well at the Jason
prospect on Garden Banks Block 344, EEX has completed an extensive series of
reservoir evaluations. "The Jason well encountered approximately 100 feet of
hydrocarbon-filled pay with no indication of where the limit of the hydrocarbon
column might be. The height of the column strongly impacts the size of the
accumulation. It has been clear from the outset that Jason was at least a tie-
back candidate to another development in the area, however more information was
needed before deciding whether it warranted development on its own. An analysis
of the extensive amount of pressure information collected from the well
indicates a strong likelihood that the hydrocarbon column could be quite large,
suggesting the need for further appraisal. We intend to initiate appraisal
activity at Jason following the next Llano appraisal well,"
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said Hamilton. "We remain convinced that Llano and Jason are fault segmented
reservoirs of the same hydrocarbon accumulation that includes our Rex, Travis
and Devils Island prospects," he added.
DeepShelf Activities
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In the most recent offshore lease sale, EEX successfully added five new
blocks to the DeepShelf exploration prospects on the continental shelf of the
Gulf of Mexico. EEX acquired a 100% interest in these blocks at a cost of
approximately $1.2 million.
"While we pursue a development plan for the Llano area, our future offshore
exploration investments will focus primarily on the deep targets we have
identified in shallower water. While the geological risk of drilling deeper
targets may be similar to that of deep water, the financial risk of deep
drilling on the shelf is dramatically reduced," said Hamilton. "Due to the
existing pipeline and marketing infrastructure, the lead times to initial
production are significantly shorter - a matter of months compared to years in
the deep water. We anticipate unveiling this DeepShelf play over the next few
months as partners are secured and drilling locations proposed," said Hamilton.
Indonesia -Tuban Block
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During the first quarter of 2001, production from the Mudi field was 554
thousand barrels (net to EEX), or approximately 6,150 barrels per day. In
addition to the work-over and in-field drilling activities at Mudi, drilling
began on the exploratory well testing the Sukawati Prospect. This well is
expected to be drilled to approximately 9,000 feet and will take approximately
45 to 60 days to drill. The Sukawati Prospect is located about five and a half
miles southwest of the Mudi field and lies on trend with a recent significant
discovery announced by ExxonMobil which operates the block offsetting the Tuban
block. Since Sukawati lies along the line between these two blocks, the cost of
the well will be shared by EEX and Devon (Tuban interest owners) and ExxonMobil.
EEX Corporation is an oil and natural gas exploration and production
company with activities currently focused in Texas, the Gulf of Mexico and
Indonesia.
B. Set forth below is the text of a News Release issued by EEX Corporation on
May 17, 2001:
EEX AGREES TO TRANSFER OPERATORSHIP OF LLANO FIELD
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HOUSTON, TEXAS (May 17, 2001) -- EEX Corporation (NYSE: EEX) and the other
owners of the Llano Field have agreed on the next operations, subject to
Minerals Management Service (MMS) approval. Enterprise Oil (NYSE: ETP) will be
named as the operator for Garden Banks Blocks 385 and 386, with full operational
responsibility for the Llano Field located in the deep water Gulf of Mexico.
EEX will remain as operator for Garden Banks Blocks 344, 387, 388 and the
western half of Block 345, where the Jason discovery and the Travis and Devil's
Island prospects are located.
The Llano owners have submitted an application to the MMS for approval to
add Garden Banks Block 385 to the existing unit of Blocks 344, 386, 387 and 388.
If the MMS approves the application, Enterprise Oil intends to begin
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drilling the next Llano appraisal well, the Garden Banks Block 385 #1, with the
semi-submersible drilling rig, Arctic I, in early June.
Furthermore, the Llano owners have agreed to normalize their interests over
Blocks 385 and 386. EEX and Enterprise Oil will each hold a 27.5% interest, and
PanCanadian Gulf of Mexico Inc. and ExxonMobil will each hold a 22.5% interest
in these two blocks. This normalization will be subject to possible re-
determination at a later date based upon reservoir information obtained in the
future. Previously EEX held a 30% interest on Block 386 and a 25% interest on
Block 385. EEX will fund future spending at a 25% working interest until
equalization of previously invested costs is reached among all partners.
"These actions by the Llano owners are the next steps in reaching our goal
of an agreed development plan at Llano, while maintaining EEX's plans for the
Jason discovery and Travis prospect," said Tom Hamilton, Chairman and President,
Chief Executive Officer.
EEX Corporation is an oil and natural gas exploration and production
company with activities currently focused in Texas, the Gulf of Mexico and
Indonesia.
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 thereunto duly authorized.
EEX Corporation
By: /s/ T. E. Coats
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T. E. Coats
Vice President and
Controller
Date: May 23, 2001
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