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 17, 2004
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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 (Commission (IRS Employer
jurisdiction of incorporation) File Number) 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.
OPERATIONAL OUTLOOK FOR 2004
The Company's operational outlook for 2004 is based on its current
productive wells and its low risk drilling plans for the remainder of 2004. The
production volume estimates include approximately 1.1 Bcf of natural gas
production from two recently completed Trenton Black River ("TBR") wells, which
are subject to numerous risks and uncertainties. Due to the uncertainty
associated with exploratory drilling, acquisitions and dispositions, the Company
does not include any projection of these activities in this 2004 outlook.
Accordingly, actual results in 2004 may differ significantly from the outlook
provided.
The following table includes estimates given as of March 17, 2004, 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 sections address certain of the risks and
uncertainties to which the Company is subject.
Quarter Ending Year Ending
(unaudited, dollars in millions, except as noted) March 31, 2004 December 31, 2004
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Production
Gas (Mmcf) 3,850 - 4,000 16,200 - 16,700
Oil (Mbbls) 93 - 97 360 - 380
Total production (Mmcfe) 4,408 - 4,582 18,360 - 18,980
Production expense per Mcfe $ 1.14 - 1.18 $ 1.07 - 1.10
Production taxes per Mcfe 0.14 - 0.15 0.12 - 0.14
Exploration expense excluding exploratory dry hole
expense $ 1.7 - 1.8 $ 7.5 - 8.5
General and administrative expense 1.1 - 1.2 4.2 - 4.6
Gas gathering, marketing and oilfield services margin 0.6 - 0.7 2.2 - 2.7
Mmcf - Million cubic feet Mcfe - Thousand cubic feet of natural gas equivalent
Mbbls - Thousand barrels Mmcfe - Million cubic feet of natural gas equivalent
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CAPITAL EXPENDITURE PLAN FOR 2004
In addition to the exploration expense discussed above, the Company
currently plans to spend approximately $36 million on its capital expenditure
plan for 2004. Principal planned capital expenditure categories in 2004 are
as follows:
2004 CAPITAL EXPENDITURES
(IN MILLIONS)
Drilling and completion (including exploratory dry hole expense) $ 28
Production enhancements and field improvements 4
Leasehold acreage 3
Other capital expenditures 1
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$ 36
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Approximately 61% of the drilling budget is allocated to highly
developed or blanket formations while approximately 39% is allocated to the
deeper, or less developed, potentially more prolific formations. The Company's
actual drilling activity in 2004 may be impacted by the availability of drilling
rigs, other oil field goods and services and changes in commodity prices.
The Company plans to spend approximately $17 million to drill 94 highly
developed or blanket formation wells and approximately $10 million to drill 13
TBR wells and two Oriskany wells. Five of the TBR wells are planned to be
drilled in the New York area where the Company had two recent exploratory
discoveries. The Company plans to spend an additional $1 million to drill 11
other exploratory wells to various shallow, less developed formations. The
following table sets forth the planned 2004 drilling activity:
GROSS NET
FORMATION LOCATION WELLS WELLS
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HIGHLY DEVELOPED OR BLANKET FORMATIONS
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Antrim MI 36 33.1
Medina PA 25 24.4
Coalbed Methane PA 18 18.0
Clarendon PA 15 15.0
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94 90.5
DEEPER OR LESS DEVELOPED FORMATIONS
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Trenton Black River PA, NY, OH 13 7.7
Oriskany PA, NY 2 1.0
Other Exploratory IN, KY 11 7.1
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26 15.8
The Company intends to finance its planned 2004 capital expenditures
through its available cash flow, available revolving credit facility and, to a
lesser extent, the sale of non-strategic assets. At March 17, 2004 the Company
had approximately $37 million available under its existing revolving credit
facility.
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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 hereunto duly authorized.
Date: March 17, 2004 BELDEN & BLAKE CORPORATION
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(Registrant)
By: /s/ Robert W. Peshek
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Robert W. Peshek, Senior Vice President
and Chief Financial Officer
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