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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 OCTOBER, 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
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[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
3 October 2000
PETSEC ENERGY TO SELL INTERESTS IN GULF OF MEXICO LEASES
Sydney, Australia - Petsec Energy Ltd (ASX: PSA and OTC BB: PSJEY) today
announced that pursuant to the agreement its wholly owned subsidiary Petsec
Energy Inc. ("PEI") reached with the unsecured creditors committee, PEI has
either sold or signed purchase and sale agreements for the majority of its
leases. (See Company announcement 17 June 2000).
PEI sold its 33% interest in Mustang Island 883 and 100% interest in Mustang
Island leases 748, 749, 795, 797, 940 and 941 to LLOG Offshore Exploration, Inc.
for US$6.375 million. The sale was approved by the Bankruptcy Court presiding
over PEI's Chapter 11 proceedings and was completed on September 25, 2000 with
an effective date of August 1, 2000.
PEI will present the purchase and sale agreements, details of which are given
below, to the Bankruptcy Court for approval as initial bids. PEI will also
request that the Bankruptcy Court enter an Order approving certain bid
procedures with respect to each of these agreements so that other interested
bidders may submit higher and better offers to purchase these assets. PEI
expects to conduct a final auction of the assets in early November 2000 if any
competing bids are received. Net proceeds from the sales of PEI's assets will be
distributed to PEI's creditors, Petsec (USA) Inc., (wholly owned by Petsec
Energy Ltd) as equity owner, and certain of PEI's senior management team in the
USA, in accordance with and upon confirmation by the bankruptcy court of a Plan
of Reorganisation.
A purchase and sale agreement has been signed with Apache Corporation for the
sale of Petsec Energy Inc.'s 50% working interest in Main Pass leases 5, 6, 7,
84, 90, 91, 93, 104 and 105, Grand Isle 45, Ship Shoal leases 192, 193 and 194,
South Marsh Island 7, and West Cameron leases 237, 543, 544 and 653. The
effective date of the sale is October 1, 2000. The sale price is US$51.2
million. Apache is the operator of the leases.
Purchase and sale agreements have been signed with ATP Oil and Gas in respect of
the West Cameron 461 lease and South Marsh Island 189 and 190 leases. The
purchase prices are US$1,617,000 and US$3,129,000, respectively, each with an
effective date of October 1, 2000.
Purchase and sale agreements have been signed with Stone Energy Corporation in
respect of the South Pelto 22 lease and Vermilion Block 258 leases. The purchase
prices are US$800,000 and US$1,700,000, respectively, each with an effective
date of June 1, 2000.
There are six exploration leases and other miscellaneous assets that are not
subject to the Apache, ATP or Stone agreements, which PEI will market and sell
subject to Bankruptcy Court approval.
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All inquiries concerning the divestiture of PEI's assets should be directed to
the following professionals at Houlihan Lokey Howard & Zukin Capital, the
investment bankers managing the divestiture process for PEI and its creditors:
Matthew R. Niemann, Vice President
Brett A. Lowrey, Associate
Houlihan Lokey Howard & Zukin Capital
(310) 553-8871 (phone)
(310) 553-4024 (fax)
1930 Century Park West
Los Angeles, California 90067-6802
All other inquiries concerning Petsec Energy should be directed to:
In Australia: In USA:
Geoffrey Fulcher, Company Secretary Ross Keogh, Chief Financial Officer
(61) 2 9247 4605 (phone) (337) 989 1942 (phone)
(61) 2 9251 2410 (fax) (337) 989 7271 (fax)
Company information is available at Petsec's website 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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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: October 6, 2000 By: /s/ Ross A. Keogh
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Name: Ross A. Keogh
Title: Chief Financial Officer