LOG 4
POC.. LAST 12/07
PRX.. 1999-01-12 (provided courtesy of ISDN Wire Service.)
PROBE PROVIDES INVESTOR RELATIONS UPDATE
CALGARY, AB--
Probe Exploration Inc. (PRX-TSE) is a growth oriented oil and gas
exploration and development company. Since 1993, Probe has
exhibited a consistent growth pattern by making timely
acquisitions of underexploited properties and aggressively
developing them. In 1997, the Company acquired 2 MMBOE of
reserves in the Leduc field and in one year, increased reserves
to over 30 MMBOE. Total Probe reserves at June 30, 1998 were
estimated at 51.5 MMBOE. The Company has recently completed
several strategic transactions to increase the quality and
quantity of its land base. These moves are designed to position
Probe as a dominant area player in central Alberta. Probe has
71,283,469 (basic), 77,474,968 (fully diluted) shares
outstanding and trades on the Toronto Stock Exchange under the
symbol PRX.
HIGHLIGHTS
----------
* Probe continues to post production gains quarter over quarter
and year over year
* Completed $16.63 MM flow through financing: 6,650,381 shares
were issued at $2.50 (lowered from previously announced $3.25
per share due to market volatility), of which $1.9 MM was
invested by management, employees and directors
* Stock currently trading below Proven and 1/2 Probable NAV of
$3.38 (15% NPV based on June 30, 1998 report, using current
debt, current shares outstanding)
* Probe has executed an agreement to divest a portion of Leduc
facilities to a mid-stream operator, proceeds to reduce debt
* Majestic and Leduc West provide Probe with new diversification
and excellent growth potential which builds upon existing
production base at Leduc
* Probe maintains trading liquidity with a 52 week volume of 73.1
MM shares
* Management and employees have invested heavily in the company
and new staff has recently been added to improve operational
performance and financial controls
* Management is committed to maintaining Probe's growth track
record and providing value for its shareholders
OPERATIONS UPDATE
-----------------
Overview
* A 224% increase from 1997 average production of 4,009 BOE/d to
1998 exit production of over 13,000 BOE/d
* Exit production was comprised of approximately 52.0 MMcf/d of
natural gas, 4,400 bbls/d of oil and 3,400 bbls/d of NGL's
* Exit numbers were lower than anticipated due to reduction in
December drilling activity based on commodity prices, delays in
well tie-ins through logistical and regulatory problems, and
higher than budgeted declines for Leduc
* Probe is currently operating two active drilling rigs in Leduc
West and Majestic and has three service rigs employed at Leduc
working on recompletions and optimization
* New additions to technical team to manage operations and
optimize production from new wells
* Effective November 1st Probe's gas pricing improved from an
average of $1.47 to $2.55 per Mcf based on new hedging
programs. Additional improvement in NGL pricing will also have
a positive effect on cash flow
Leduc
* Achieved record gas production levels at Leduc in December 1998
and January 1999
* Based on current commodity prices, operational focus is
shifting to gas targets, recompletions and optimization of new
wells and facilities
* 15 recompletions identified for the Ellerslie zone in Q1/99
* Wabamun gas development north of the North Saskatchewan River
will be pursued in Q1/Q2/99
* Agreement in place to process sour gas from north of the North
Saskatchewan River at ATCO's Golden Spike plant
* Wabamun wells are currently averaging 80 BOE/d, per well,
although this is less than the original budget of 125 BOE/d,
per well, with a 20% annual decline, optimization of these
wells and facilities is ongoing
* Sparky waterflood has been in operation since October 1998.
Production response should be seen by mid 1999
* Investment in infrastructure and area expertise will allow
Probe to rapidly expand oil development program when pricing
recovers
Leduc West
* The Leduc West project area now comprises over 300 sections of
high working interest, gas prone acreage, which extends north
and west from Probe's main Leduc area
* Probe's technical team is well advanced in the initial
evaluation of lands with active seismic and drilling currently
under way
* Probe expects to drill at least 30 wells over the next 12
months and has already identified 17 prospective drilling
locations
* Planned exploration expenditures for the area are $8 to $10 MM
in 1999
* Negotiations for gas processing midstream operator are
advancing
* Probe has now drilled four out of five successful exploratory
gas wells, with tie-in planned through Q1/Q2/99
Majestic
* Majestic has evolved into a major core area comprising 60
sections of high working interest land equally prospective for
gas and oil
* Production profile is now approaching 50/50 split between gas
and oil
* Existing infrastructure plus balanced production base provides
platform for future growth
* Q4 drilling program has resulted in five horizontal oil wells
and three vertical gas wells, (100% success, 90% W.I.)
* Interpretation of new 2D seismic program has identified seven
new vertical targets
1999 PROSPECTS
--------------
* 1999 capital expenditure budget and targets will be set by
early February
* 1999 budget will be confined to cash flow as dictated by
commodity prices in order to minimize stress on balance sheet
* Rapidly declining cost of services will stretch capital dollars
further
* Shift in drilling activity towards gas prone plays such as
Leduc West and Leduc Ellerslie recompletions, along with new
Majestic gas
* Recovery in oil prices to $14/$15 range will quickly trigger a
return to aggressive oil development program
======================================================================
1999-01-11 (provided courtesy of ISDN Wire Service.)
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PROBE ADOPTS SHAREHOLDER RIGHTS PLAN
CALGARY, ALBERTA--
The Board of Directors of Probe Exploration Inc. (PRX-TSE) has
adopted a Shareholder Rights Plan, subject to regulatory
approval. In connection with the Plan, the Board authorized the
distribution of one share purchase right for each outstanding
common share of Probe held of record at the close of business
today.
The Plan is designed to ensure that all of Probe's shareholders
are treated fairly if a take-over bid is made for Probe's shares
and that sufficient time is available for the directors of Probe
and all shareholders to fully evaluate any offer and pursue
alternatives to maximize shareholder value. The Plan is similar
to many plans adopted by other Canadian resource companies.
The rights issued to shareholders under the Plan will entitle the
holder to acquire common shares of Probe at a 50% discount to the
market upon a person or group acquiring 20% or more of the common
shares of Probe. However, the rights are not exercisable in the
event of a "Permitted Bid".
A Permitted Bid is a Take-over Bid made by way of a Take-over Bid
circular which remains open for at least 45 days that is made to
all shareholders for all of the shares of Probe. A Permitted Bid
must also satisfy certain other conditions provided for in the
Plan, including that a bidder under a Permitted Bid may only take
up shares tendered under the bid if at least 50% of the shares
held by shareholders independent of the bidder are deposited and
the bid is then extended for a further period of 10 business
days.
The rights will not be exercisable and will not trade separate
and apart from the common shares at any time prior to a person or
group acquiring or announcing an intention to acquire (in a
manner that does not constitute a Permitted Bid), securities to
which are attached 20% or more of the votes attaching to all
securities of Probe.
The Plan is subject to shareholder confirmation within six months
of its adoption. Shareholder approval will be sought at Probe's
1999 Annual General Meeting and the Plan is valid until the
termination of Probe's Annual General Meeting in 2002.
The Plan was not adopted in response to, or in anticipation of,
any specific effort to acquire control of Probe.
======================================================================
PRX 1999-01-08 (provided courtesy of ISDN Wire Service.)
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PROBE EXPLORATION INC. - PROBE COMMENTS ON RECENT TRADING ACTIVITY
CALGARY, ALBERTA--
Probe Exploration Inc. (PRX-TSE) at the request of the Toronto
Stock Exchange has been asked to comment on the recent trading
volumes and downward pressure on the stock price.
At this time management is not aware of any material event or
condition which should adversely affect the underlying value of
the Company. Trading patterns and volumes are consistent with
Probe's market position as a highly liquid, primarily
institutionally held, stock.
In response to the recent share activity, Probe's management is
currently conducting a series of meetings with analysts and the
investment community to provide an update as to the current
status of the Company and preliminary plans for 1999. Later this
month when Probe's 1999 capital expenditure budget is finalized
the Company will be in a position to discuss in more detail its
drilling activities and outlook. Management is currently
preparing an investor relations update which will be released on
Monday.
======================================================================
RAX.. LAST 11/10
TLM.. Gulf Indonesia, Talisman and Pertamina Confirm Suban Natural Gas Discovery
DENVER, COLORADO, Jan. 6 /CNW/ - Gulf Indonesia Resources Limited,
Talisman (Corridor) Ltd. and Pertamina announced today the results of a
significant gas discovery in the Corridor Production Sharing Contract (PSC)
area located in south Sumatra, Indonesia. The Suban 2 exploration well
encountered two gas-bearing zones that have been tested at cumulative daily
rates of approximately 43 million cubic feet per day (mmcf/d) of natural gas
and 365 barrels per day (b/d) of condensate from a gas column exceeding 285
meters.
A test of the upper section, a cased interval between 2,055 and 2,074
meters, flowed approximately 28 mmcf/d of gas and 219 b/d of condensate at
2,660 pounds per square inch (psi) flowing tubing pressure through a 48/64
inch choke after fracture stimulation. The deeper section, initially tested
in October, recently flowed approximately 15 mmcf/d and 146 b/d of condensate
from an open hole interval between 2,121 and 2,650 meters at 3,140 psi through
a 32/64 inch choke.
Suban 2 confirmed that gas reserves are present in the same pre-Tertiary
play type that has been productive elsewhere in the area. Test results
indicate that the two zones are in communication and that the gas contains
only 5.5 per cent carbon dioxide. The partners are currently drilling an
appraisal well 2.2 kilometers west of Suban 2 and have plans for an additional
well and a 3D seismic survey in 1999.
The discovery lies approximately 20 kilometers southwest of the Dayung
Field that supplies gas through the Corridor Gas Project infrastructure to the
Duri steamflood project in central Sumatra.
Gulf Indonesia (GRL:NYSE) holds a 54 per cent working interest in the
Corridor Block Production Sharing Contract and is contract operator for
Pertamina, the Indonesian state oil company. Gulf Indonesia is 72 per cent
owned by Gulf Canada Resources Limited (GOU:TSE, ME, NYSE). Partners are
Talisman (Corridor) Ltd., a wholly owned indirect subsidiary of Talisman
Energy Inc. (TLM:TSE, ME, NYSE), with 36 per cent and Pertamina with 10 per
cent.
ULP.. LAST 11/02 |
