SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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) March 8, 2002
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BELDEN & BLAKE CORPORATION
(Exact name of registrant as specified in its charter)
Ohio 0-20100 34-1686642
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(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) Identification No.)
5200 Stoneham Road, North Canton, Ohio 44720
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(Address of principal executive offices) (Zip Code)
(330) 499-1660
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Registrant's telephone number, including area code
ITEM 9. REGULATION FD DISCLOSURE
Belden & Blake Corporation ("Belden & Blake" or the "Company") is
furnishing the following information under Item 9 of this Current Report on Form
8-K.
The information in this report is furnished pursuant to Item 9 and
shall not be deemed to be "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934 or otherwise subject to the liabilities of that section,
except if the Company specifically states that the information is to be
considered "filed" under the Securities Exchange Act of 1934 or incorporates it
by reference into a filing under the Securities Act of 1933 or the Securities
Exchange Act of 1934. This report will not be deemed an admission as to the
materiality of any information in the report that is required to be disclosed
solely by Regulation FD.
The information in this document includes forward-looking statements
that are made pursuant to Safe Harbor Provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements, and the business
prospects of Belden & Blake are subject to a number of risks and uncertainties
which may cause the Company's actual results in future periods to differ
materially from the forward-looking statements contained herein. These risks and
uncertainties include, but are not limited to, the Company's access to capital,
the market demand for and prices of oil and natural gas, the Company's oil and
gas production and costs of operation, results of the Company's future drilling
activities, the uncertainties of reserve estimates and environmental risks.
These and other risks are described in the Company's 10-K and 10-Q reports and
other filings with the Securities and Exchange Commission.
2001 RESULTS AND OPERATIONAL OUTLOOK FOR 2002
The Company has approximately 13,350 Bbtu (Billion British thermal
units) of its 2002 natural gas production and approximately 6,860 Bbtu
of its 2003 natural gas production hedged under swaps, collars or fixed price
contracts. See Form 8-K (Current Report) dated January 17, 2002.
The Company plans to spend $44 million in 2002 for drilling and
completion costs, including exploratory dry hole expense, and other capital
expenditures. See Form 8-K (Current Report) dated January 7, 2002.
The following table includes estimates given as of March 8, 2002, that
are based on current expectations and currently available information. These
forward-looking statements are subject to a number of risks and uncertainties
which may cause the Company's actual results to differ materially from the
following estimates. The preceding section addresses certain of the risks and
uncertainties to which the Company is subject.
ESTIMATED
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QUARTER ENDING YEAR ENDING QUARTER ENDING YEAR ENDING
DECEMBER 31, 2001 DECEMBER 31, 2001 MARCH 31, 2002 DECEMBER 31, 2002
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(UNAUDITED, DOLLARS IN MILLIONS, EXCEPT AS NOTED)
Production
Gas (Mmcf) 4,827 18,541 4,500 - 4,700 18,500 - 19,000
Oil (Mbbls) 156 646 156 - 162 560 - 580
Total production (Mmcfe) 5,762 22,415 5,436 - 5,672 21,860 - 22,480
Production expense per Mcfe $ 0.94 $ 1.01 $ 0.93 - 0.98 $ 0.93 - 0.98
Production taxes per Mcfe 0.07 0.11 0.08 - 0.10 0.08 - 0.10
Exploration expense excluding
exploratory dry hole expense $ 1.8 $ 7.1 $ 2.0 - 2.6 $ 9.0 - 10.0
General and administrative expense 1.1 4.4 1.1 - 1.3 4.5 - 4.9
Gas gathering, marketing and
oil field services margin 1.2 4.7 1.6 - 1.9 5.1 - 5.4
The Company had proved reserves as of December 31, 2001 of 368 Bcfe
(Billion cubic feet of natural gas equivalent) which were 67% proved developed
and 91% natural gas. At that date, estimated future net cash flows from these
reserves had a present value (discounted at 10 percent) before income taxes of
approximately $225 million. The weighted average prices related to the proved
reserves at December 31, 2001 were $2.92 per Mcf (thousand cubic feet) for
natural gas and $17.85 per Bbl (barrel) for oil.
The Company also calculated an alternative reserve case, utilizing an
assumed NYMEX (New York Mercantile Exchange) gas price of $3.50 per Mmbtu
(Million British thermal units) which equated to a weighted average gas price of
$3.80 per Mcf, including adjustments for regional basis, Btu (British thermal
unit) content and fixed price contracts. The weighted average oil price in the
alternative case was $21.32 per Bbl. The alternative reserve case used all of
the same assumptions as the proved reserve case at year end, other than pricing.
Total proved reserves calculated at the alternative prices were 403 Bcfe.
Estimated future net cash flows from these reserves had a present value
(discounted at 10 percent) before income taxes of approximately $360 million.
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 hereunto duly authorized.
Date: March 13, 2002 BELDEN & BLAKE CORPORATION
--------------- (Registrant)
By: /s/ Robert W. Peshek
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Robert W. Peshek, Vice President
and Chief Financial Officer