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): March 27, 2008
ISRAMCO,
INC.
(Exact
name of registrant as specified in its charter)
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Delaware
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0-12500
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13-3145265
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(State
or other jurisdiction
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(Commission
File Number)
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(IRS
Employer
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of
incorporation)
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Identification
No.)
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4801
WOODWAY DRIVE SUITE 100E, HOUSTON, TX 77056
(Address
of principal executive offices, including Zip Code)
713-621-3882
(Registrant's
telephone number, including area code)
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
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Written communications pursuant
to Rule 425 under the Securities Act (17 CFR
230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act(17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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ITEM
2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS
As
previously described in the Current Report on Form 8-K of Isramco Inc. (the
"Company") filed on February 22, 2008 (the “Previous 8-K”), the Company, through
its wholly-owned subsidiary Jay Petroleum, LLC ("Jay Petroleum"), and GFB
Acquisition - I, L.P. ("GFB") and Trans Republic Resources, Ltd. ("Trans
Republic," and, together with GFB, the "Sellers") entered into Purchase and Sale
Agreements (the "Agreements"), pursuant to which Jay Petroleum agreed to
purchase the Sellers' interests in certain oil and gas properties located in
Texas, New Mexico and Oklahoma.
The
closing of the transactions contemplated in the Purchase Agreement was completed
on March 27, 2008 for an aggregate purchase price of $102.9 million (the
"Purchase Price"). According to an engineering report prepared by an independent
consulting company relating to the properties purchased under the Purchase
Agreement, the estimated proved developed producing reserves are 3.3 million net
barrels of oil and 18,143 net MMCF's of natural gas.
The
Company funded $54 million of the Purchase Price from a commercial bank loans,
the terms of which were included in the Previous 8-K.
Approximately $48.9 million of the Purchase Price was from a related
party, J.O.E.L Jerusalem Oil Exploration Ltd,. ("JOEL"). The loan from J.O.E.L
is repayable at the end of 4 months. Interest accrues at a per annum rate of
LIBOR plus 1.25%. Subject to the approval of its shareholders at a meeting which
J.O.E.L. expects to hold, JOEL intends to extend the loan period for seven years
at a per annum rate of LIBOR plus 6%. Mr. Jackob Maimon, the Company's president
and director is a director of JOEL and Mr. Haim Tsuff, the Company's Chief
Executive Officer and Chairman is a controlling shareholder of
JOEL.
The
information set forth under Item 1.01 of this Current Report on Form 8-K is
hereby incorporated by reference into this Item 2.03
ITEM
9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d)
Exhibits:
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.
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DATED:
APRIL 2, 2008
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ISRAMCO,
INC.
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BY:
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/s/
Haim Tsuff
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HAIM
TSUFF
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CHIEF
EXECUTIVE OFFICER
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