Seahawk Blames Losses on Lower Oil Prices

Seahawk Oil International Inc. reported a second-quarter net loss of $242,000, contrasted with net income of $43,828 for the same period a year earlier.

The Newport Beach oil and gas exploration concern attributed the loss to “significantly lower oil prices.”

Revenue for the quarter totaled $490,621 compared to $734,042 for the comparable period last year.

For the first six months, Seahawk reported a net loss of $528,000, contrasted with a net loss of $5,767 for the same period a year ago. Revenue for the six months was $963,238 compared to $1.4 million for the first half of 1985.

Separately, Seahawk said it privately placed a $1-million, 8% convertible subordinated debenture due in 1996 with a Bermuda-based insurance company. Earlier this year, the company completed a $4-million public offering of convertible subordinated debentures.

Proceeds from the note sales will be used to make acquisitions, Seahawk said.

As reported, Seahawk hopes to weather the current industry downturn by buying weaker competitors and thus lowering the overhead of both companies. Seahawk is “continuing to look for friendly merger candidates,” said Bob Friedenberg, president and chief executive of the company.

Friedenberg acknowledges that there is some risk in the company’s course but said if he believed that the price of oil was destined to fall further he would take the company’s cash “and invest in a chain of taco stands.”

In June, Seahawk launched a hostile cash tender offer for 25% of the common shares of Oxoco Inc., a Houston-based oil concern. The offer expires Aug. 25, and Seahawk is considering a proxy fight to gain control of the company.

‘Our game plan is to gain a larger slice of the American (oil) producing pie,” he said. Because of hardships wrought by sagging oil prices, he reckons the ownership of that pie is going to change by foreclosures and bankruptcies. “All of these smaller companies that are in financial difficulties are walking the plank,” Friedenberg said. “We have a raft out there.”