UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 reported) September 29, 1999
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TRITON ENERGY LIMITED
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(Exact name of registrant as specified in its charter)
Cayman Islands 1-11675 None
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(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) Identification No.)
Caledonian House, Mary Street
P.O.Box 1043
George Town
Grand Cayman, Cayman Islands NA
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (345) 949-0050
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N/A
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS.
Oil Discovery in Equatorial Guinea
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On October 6, 1999, Triton Energy Limited (the "Company") announced that it
had made a significant oil discovery in Equatorial Guinea, La Ceiba Field. On
test, the Mbini-1 well flowed 12,401 barrels of oil per day (BOPD) of 30 degree
oil from one zone over an interval of 160 feet with a flowing tubing pressure of
897 pounds per square inch. Test results were constrained by the limited
capacity of surface testing equipment. Analysis of wireline logs and core data
indicates a gross oil column of 742 feet in the well with net oil-bearing pay of
314 feet in four zones. The Mbini-1 well was drilled to a total depth of 9,700
feet in approximately 2,200 feet of water. The well is located 22 miles off the
continental coast in Block G which along with Block F encompasses Triton's
Equatorial Guinea acreage (approximately 1.3 million acres). The Company has an
85 percent working interest in the licenses and is the operator. The other
partner in the blocks is Energy Africa with a 15 percent working interest.
Litigation Update
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In July through October 1998, eight lawsuits were filed against the Company
and Thomas G. Finck and Peter Rugg, in their capacities as Chairman and Chief
Executive Officer and Chief Financial Officer, respectively. The lawsuits were
filed in the United States District Court for the Eastern District of Texas,
Texarkana Division, and have been consolidated and are styled In re: Triton
Energy Limited Securities Litigation. They allege violations of Sections 10(b)
and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5
promulgated thereunder, and negligent misrepresentation in connection with
disclosures concerning the Company's properties, operations, and value relating
to a prospective sale of the Company or of all or a part of its assets. The
lawsuits seek recovery of an unspecified amount of compensatory and punitive
damages and fees and costs.
On September 29, 1999, the court granted the plaintiffs' motion for
appointment as lead plaintiffs and for approval of selection of lead counsel. In
addition, the court denied the Company's motion to dismiss or transfer for
improper venue.
The Company believes its disclosures have been accurate and intends to
vigorously defend these actions. There can be no assurance that the litigation
will be resolved in the Company's favor. An adverse result could have a material
adverse effect on the Company's financial position or results of operations.
On August 22, 1997, the Company was sued in the Superior Court of the State
of California for the County of Los Angeles, by David A. Hite, Nordell
International Resources Ltd., and International Veronex Resources, Ltd. The
Company and the plaintiffs were adversaries in a 1990 arbitration proceeding in
which the interest of Nordell International Resources Ltd. in the Enim oil field
in Indonesia was awarded to the Company (subject to a 5% net profits interest
for Nordell) and Nordell was ordered to pay the Company nearly $1 million. The
arbitration award was followed by a series of legal actions by the parties in
which the validity of the award and its enforcement were at issue. As a result
of these proceedings, the award was ultimately upheld and enforced.
The current suit alleges that the plaintiffs were damaged in amounts
aggregating $13 million primarily because of the Company's prosecution of
various claims against the plaintiffs as well as its alleged misrepresentations,
infliction of emotional distress, and improper accounting practices. The suit
seeks specific performance of the arbitration award, damages for alleged fraud
and misrepresentation in accounting for Enim field operating results, an
accounting for Nordell's 5% net profit interest, and damages for emotional
distress and various other alleged torts. The suit seeks interest, punitive
damages and attorneys fees in addition to the alleged actual damages. On
September 26, 1997, the Company removed the action to the United States
District Court for the Central District of California. On August 31, 1998, the
district court dismissed all claims asserted by the plaintiffs other than claims
for malicious prosecution and abuse of the legal process, which the court held
could not be subject to a motion to dismiss. The abuse of process claim was
later withdrawn, and the damages sought have been reduced to approximately
$700,000 (not including punitive damages). The lawsuit was tried and the jury
found in favor of the plaintiffs and assessed compensatory damages against the
Company in the amount of approximately $700,000 and punitive damages in the
amount of approximately $11 million. The Company believes it has acted
appropriately and intends to appeal the verdict.
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.
TRITON ENERGY LIMITED
Date: October 8, 1999 By: /s/Bernard Gros-Dubois
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Bernard Gros-Dubois
Vice President