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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF MARCH, 2000
PETSEC ENERGY LTD
Level 13, 1 Alfred Street
Sydney, NSW 2000
Australia
(Address of principal executive offices)
[Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F]
Form 20-F X Form 40-F
--- ---
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.]
Yes No X
--- ---
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PETSEC ENERGY LTD
ACN 000 602 700
March 6, 2000
PETSEC ENERGY LTD ADR'S TO TRADE ON OTC BULLETIN BOARD
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Sydney, Australia - Petsec Energy Ltd (ASX: PSA and OTC BB: PSJEY) today
announced its American Depository Receipts ("ADR's") will commence trading
on the OTC Bulletin Board. The Company's new ticker symbol is PSJEY.
The Company's ordinary shares are unaffected and will continue to trade on the
Australian Stock Exchange under the ticker symbol PSA.
Petsec is an independent oil and gas exploration and production company
operating in the shallow waters of the US Gulf of Mexico. The Company's
corporate office is in Sydney, Australia. Field operations are managed in the
US from Lafayette La.
For further information please contact:
In Australia: In USA:
Terry Fern, Managing Director Ross Keogh, Chief Financial Officer
Petsec Energy Ltd Petsec Energy Ltd
(61) 2 9247 4605 (phone) (337) 989 1942 (phone)
(61) 2 9251 2410 (fax) (337) 989 7271 (fax)
Level 13, Gold Fields House 143 Ridgeway Drive, Suite 113
1 Alfred Street, Sydney NSW 2000 Lafayette, Louisiana 70503-3402
Company information is available at Petsec's website http://www.petsec.com
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1. Information in this report which relates to hydrocarbon reserves is based
on information compiled by a person qualified in accordance with Listing
Rule 5.11 and accurately reflects the information compiled by that
person.
2. Certain statements in this report regarding future expectations and plans
of the Company may be regarded as "forward-looking statements" within the
meaning of Section 27A of the USA Securities Act of 1933 and Section 21E
of the USA Securities Exchange Act of 1934. Although the Company believes
that its expectations and plans are based upon reasonable assumptions, it
can give no assurance that its goals will be met. Actual results may vary
significantly from those anticipated due to many factors, including oil
and gas prices, operating hazards, drilling risks, environmental risks
and uncertainties in interpreting engineering and other data relating to
oil and gas reservoirs, as well as other risks discussed in the Company's
SEC filings.
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PETSEC ENERGY LTD
A.C.N. 000 602 700
15 March 2000
PETSEC ENERGY REPORTS 1999 RESULTS AND YEAR END RESERVES
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Sydney, Australia - Petsec Energy Ltd (ASX: PSA and OTC BB: PSJEY), today
announced its results for the three months and year ended 31 December 1999.
Full Fear 1999 Fesults
Under Australian accounting standards, the Company reported a loss from its oil
and gas operations (before tax and abnormal items) of A$25.8 million, compared
to a loss in 1998 of A$9.2 million. Expensed as abnormal items are A$4.8
million for dry hole costs and a non-cash charge against the carrying value of
the Company's oil and gas assets of A$11.8 million. The operating loss after
tax and abnormal items was A$42.1 million, compared to a loss of A$151.9
million in 1998.
Under U.S. generally accepted accounting principles ("US GAAP"), the Company
reported a net loss of US$21.3 million, or US$1.17 per American Depositary
Receipt ("ADR"). This is compared to a loss in 1998 of US$96.5 million, or
US$4.48 per ADR.
Net sales in 1999 were US$31.0 million, down from US$97.0 million in 1998 due
to lower production as a result of the asset sale to Apache at the beginning of
the year and natural field decline. Apache purchased a 50% interest and became
operator of all but one of the Company's fields. Net production for the year
was 13.1 billion cubic feet of gas equivalent, compared to 39.5 billion cubic
feet of gas equivalent in 1998.
Cash flow from operating activities in 1999 was US$12.6 million or US$0.59 per
ADR. In 1998 cash flow from operating activities totalled US$55.1 million or
US$2.56 per ADR.
Ten wells were drilled in the year, two of which have been completed and are
producing, and a further six wells will be completed for production in 2000.
Fourth Quarter 1999 Results
Under Australian accounting standards, for the three months ended December 31,
1999, Petsec reported a loss from its oil and gas operations (before tax and
abnormal items) of A$6.4 million (1998: loss of A$14.5 million). Expensed as
abnormal items are A$4.8 million for dry hole costs and a non-cash charge
against the carrying value of the Company's oil and gas assets of A$11.8
million. The Company reported an operating loss after tax and abnormal items of
A$22.7 million, (1998: loss of A$118.1 million).
Under US GAAP, for the three-month period ended December 31, 1999, the Company
reported a net loss of US$12.0 million, or US$0.56 per ADR, on revenue of
US$6.7 million. This is compared to a net loss in the December quarter of 1998
of US$72.7 million, or US$3.38 per ADR, on revenue of US$19.8 million.
Year End 1999 Reserves
Net proven reserves at December 31, 1999 were 56.8 billion cubic feet of gas
and 4.5 million barrels of oil, a total of 83.6 billion cubic feet of gas
equivalent. Net proven and probable reserves were 93.8 Bcf of gas and 6.8
million barrels of oil, a total of 134.6 billion cubic feet of gas equivalent.
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The SEC pre-tax present value (discounted at 10% p.a.) of the proven reserves,
based on prices of US$2.43 per Mcf for gas and US$25.61 per barrel for oil, was
US$113.1 million. The SEC pre-tax present value of proven and probable reserves
was US$195.8 million.
Reserves were estimated by Ryder Scott Company, independent petroleum
engineers.
Corporate
In November 1999 Petsec distributed its holding in Climax Mining Ltd shares
(ASX symbol: CMX) to Petsec's own shareholders by way of a pro-rata entitlement
issue. The distribution completed the separation of the two companies.
On 6 March 2000, the Company announced that trading of its American Depository
Receipts moved to the OTC Bulletin Board; (symbol: PSJEY), as the Company no
longer satisfies the continued listing requirements of The New York Stock
Exchange.
Petsec Energy Inc.
In the fourth quarter of 1999 it was announced that the Company's wholly owned
US subsidiary, Petsec Energy Inc. (PEI), had liquidity difficulties and that
Petsec Energy Ltd had decided not to advance further funds to PEI until a
satisfactory capital reconstruction proposal was presented which would allow
PEI to exploit its asset base. Petsec Energy Ltd currently has US$16.5 million
(A$26 million) of uncommitted cash.
PEI engaged financial advisers to assist in raising capital and advise on the
possible restructure of PEI's debt. In January 2000 PEI signed a US$30 million
credit facility with Foothill Capital Corporation to retire its existing
facility with a Chase Manhattan Bank syndicate. At 13 March 2000, US$12.5
million was drawn from an available US$21.6 million.
PEI is in default of its US$100 million 9 1/2% subordinated notes due 2007. A
semi annual interest payment of US$4.75 million due on these notes at 15
December 1999 was not paid and PEI is currently negotiating with its note
holders regarding alternative solutions to its financial situation. In order to
effect a resolution PEI may need to seek protection under Chapter 11 of the US
Bankruptcy Code.
Petsec Energy is an independent oil and gas exploration and production company
with its operations in the offshore Gulf of Mexico (based in Lafayette,
Louisiana) and its head office in Sydney, Australia.
For further information please contact:
In Australia: In USA:
Terry Fern, Managing Director Ross Keogh, Chief Financial Officer
Petsec Energy Ltd Petsec Energy Ltd
(61) 2 9247 4605 (phone) (318) 989 1942 (phone)
(61) 2 9251 2410 (fax) (318) 989 7271 (fax)
Company information is available at Petsec's web site http://www.petsec.com
1 Information in this report which relates to hydrocarbon reserves is based on
information compiled by a person qualified in accordance with Listing Rule 5.11
and accurately reflects the information compiled by that person.
2 Certain statements in this report regarding future expectations and plans of
the Company may be regarded as "forward-looking statements" within the meaning
of Section 27A of the USA Securities Act of 1933 and Section 21E of the USA
Securities Exchange Act of 1934. Although the Company believes that its
expectations and plans are based upon reasonable assumptions, it can give no
assurance that its goals will be met. Actual results may vary significantly
from those anticipated due to many factors, including oil and gas prices,
operating hazards, drilling risks, environmental risks and uncertainties in
interpreting engineering and other data relating to oil and gas reservoirs, as
well as other risks discussed in the Company's SEC filings.
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Petsec Energy Ltd
Results for the fourth quarter ended 31 December 1999
(A$, Australian accounting standards, unaudited)
Three months ended Change Twelve months ended Change
31 Dec 99 31 Dec 98 % 31 Dec 99 31 Dec 98 %
(in thousands) (in thousands)
Oil and gas sales (before deducting royalties) A$ 13,422 39,543 -66% 59,388 178,526 -67%
Profit and loss account
Profit (loss) before interest and abnormal items A$ (2,690) (10,015) (10,286) 3,638
Net interest expense (3,673) (4,470) (15,510) (12,809)
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Operating loss before abnormal items (6,364) (14,485) (25,796) (9,171)
Abnormal items - impairments expense (11,770) (111,288) (11,770) (126,465)
- dry hole costs & abandonments (4,849) (772) (4,849) (42,727)
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Operating loss before tax (22,983) (126,545) (42,415) (178,363)
Tax benefit 317 8,402 317 26,466
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Operating profit (loss) after tax (22,666) (118,143) (42,098) (151,897)
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Basic and diluted earnings per share A$ (0.21) (1.10) (0.39) (1.41)
Number of shares outstanding (period end, thousands) 107,401 107,601 107,401 107,601
Number of shares outstanding (average, thousands) 107,401 107,601 107,429 107,601
Average US$ / A$ exchange rates 0.6446 0.6223 0.6430 0.6302
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Petsec Energy Ltd
Results for the fourth quarter ended 31 December 1999
(US$, "successful efforts" accounting under US
generally accepted accounting principles, unaudited)
Three months ended Change Twelve months ended Change
December 31 December 31
1999 1998 % 1999 1998 %
(in thousands) (in thousands)
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Statement of operations
Oil and gas sales (net of royalties) US$ 6,740 19,846 -66% 31,000 92,017 -66%
Lease operating expenses (1,853) (4,033) (7,045) (14,989)
General, administrative and other expenses (2,086) (3,813) (6,859) (10,777)
Stock compensation expense (52) (141) (260) (937)
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EBITDAX (income before interest, DD&A,
exploration, abandonments & dry hole costs) 2,749 11,859 -77% 16,836 65,314 -74%
Depletion, depreciation & amortisation (DD&A) (5,110) (16,018) (21,295) (57,672)
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Income (loss) from operations (before
exploration, abandonments & dry hole costs) (2,361) (4,159) (4,459) 7,642
Exploration expenditures (315) (912) (2,750) (7,427)
Impairments (7,480) (63,715) (7,480) (72,916)
Dry hole costs and abandonments (1,882) (480) (2,840) (27,503)
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Loss from operations (12,038) (69,266) (17,529) (100,204)
Profit (loss) on sale of assets and other income 2,057 50 3,062 (17)
Interest expense (net of interest income) (2,349) (2,738) (9,893) (7,830)
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Loss before tax (12,330) (71,954) (24,360) (108,051)
Income tax benefit (expense) 282 (714) (764) 11,547
Net loss US$ (12,048) (72,668) (25,124) (96,504)
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Cash flow data
Net cash provided by operating activities US$ 2,230 3,569 -38% 12,588 55,056 -77%
Net cash provided by (used in) investing activities US$ (2,233) (11,729) 60,408 (134,750)
Net cash provided by (used in) financing activities US$ - 8,000 (66,125) 74,011
Balance sheet data (at end of period)
Total assets US$ 110,536 199,213 110,536 199,213
Cash and deposits US$ 20,359 13,488 20,359 13,488
Borrowings US$ 107,559 173,656 107,559 173,656
Shareholders' equity (deficit) US$ (19,526) 4,354 (19,526) 4,354
Basic and diluted earnings per share
Net loss per ordinary share US$ (0.11) (0.68) (0.23) (0.90)
Net loss per ADR US$ (0.56) (3.38) (1.17) (4.48)
Average number of shares outstanding (thousands) 107,401 107,601 107,429 107,601
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Additional data
Net production
Oil (MBbls) 175 584 -70% 812 2,353 -65%
Gas (MMcf) 1,737 5,334 -67% 8,247 25,390 -68%
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Total (MMcfe) 2,787 8,841 -68% 13,119 39,511 -67%
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Net sales
Oil (US$ in thousands) US$ 2,990 9,338 12,570 37,846
Gas (US$ in thousands) 3,750 10,508 18,430 54,171
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Total (US$ in thousands) 6,740 19,846 -66% 31,000 92,017 -66%
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Average sales price
Oil (US$ per Bbl) US$ 17.09 15.98 7% 15.48 16.08 -4%
Gas (US$ per Mcf) 2.16 1.97 10% 2.23 2.13 5%
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Total (US$ per Mcfe) 2.42 2.24 8% 2.36 2.33 1%
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Average costs (US$ per Mcfe)
Lease operating expenses US$ 0.66 0.46 0.54 0.38
Depletion, depreciation and amortisation 1.83 1.80 1.62 1.46
General, administrative & other expenses 0.75 0.43 0.52 0.27
Stock compensation expense 0.02 0.02 0.02 0.02
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Total (before exploration, dry hole
costs and abandonments) 3.26 2.71 +21% 2.70 2.14 +27%
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SIGNATURES
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.
PETSEC ENERGY LTD
Date: March 22, 2000 By: /s/ Ross A. Keogh
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Name: Ross A. Keogh
Title: Chief Financial Officer