MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING MONDAY, APRIL 20, 1998 (3)
INTERNATIONAL
COMPANIES
Top 20 listed Carmanah Resources Ltd. (CKM/TSE) announced the Pride Pennsylvania jackup rig under long-term contract to Carmanah became fully operational, the drilling assembly was picked up and preparations are underway to drill out the 9 5/8 inch hole at CN-3 in the Camar Field offshore Indonesia. Commencement of operations had been delayed by difficulties encountered by the drilling contractor in positioning the rig at WPP, the northern platform at Camar. The CN-3 well had previously been suspended in 1997 at an intermediate casing point. Approximately nineteen days are scheduled for drilling, completing and the tie-back of CN-3, after which time the rig is scheduled to move to Camar-6 to tie-back this well, also drilled last year. The monopod to be installed at the Camar-6 surface location is presently under tow to the Camar Field. Upon tie-back of Camar-6, two additional Camar development wells, MPA-1 and Camar-8, are scheduled and further drilling may occur as results are obtained.
With respect to Northeast Natuna, Carmanah advises that at 13:00 hours on April 19th, 1998 the Sedco 600 semisubmersible rig was under tow from West Natuna towards the Carmanah operated PSC. The tow covers a distance of some 750 kilometers and the rig is expected to arrive on location by April 25th, 1998 with a view to spudding the Durian Besar exploratory well on a large seismically-defined reefal feature on Sunday, April 26th, 1998. The well will be drilled under confidential status with results expected during May, 1998.
Bakrie Minarak Energy Inc. (ASE/BAK.A) announced that it has signed an agreement to acquire all of the petroleum interests in England and France presently owned by Midwest Energy Companies Inc. of Tulsa, Oklahoma in return for 8,759,000 common shares of the Company.
The English interest consists of a 75% working interest in a 58,320 acre exploration license located onshore in the Weald oil basin of southeastern England. The primary producing reservoir in the basin is the Great Oolite Formation, which produces oil in the Humbly Grove, Stockbridge and Storrington Fields all of which are in the immediate vicinity of the exploration license.
The Storrington oil pool (presently being developed by another company) is located in the centre of the license. As part of the license commitment, Midwest carried out a seismic program during the summer of 1996 through a farm-out agreement. Interpretation of the seismic data has identified seven structures on the license, each of which could be matured into a drillable location with the Great Oolite being the main objective. From these, two drilling locations have been selected on the most promising structure, which, based upon the estimates contained in an independent economic and risk evaluation may have a potential volume of approximately 8 million barrels of oil. The Company plans to drill two wells in early 1999.
The French interests are located in the Paris and the Aquitaine basins. In the Paris Basin, the Company will hold a 25% working interest in 65,455 acres in the Courgivaux license. This license, with both oil and gas potential directly offsets the large producing Villerperdue Field to the north. The operator, Coparex, is currently finalizing two years of seismic work in the area and is expected to commence drilling in early 1999.
In the Aquitaine Basin of southwestern France, the company holds a 100% working interest in 207,000 highly prospective acres in the Larcis-Antin permit immediately adjacent to large reserves of oil and natural gas currently being produced by Elf Aquitaine.
These interests, combined with the Company's 33.33% interest in the 700,000 acre Block R2 in the East Shabwa region of Yemen, provides additional dimension to a portfolio of highly significant exploration properties each of which has been selected to maximize shareholder value.
In Yemen, the Company completed approximately 800 Km of seismic on the R2 block during the summer of 1997. Interpretation of the seismic data has defined fifteen drillable prospects. Based on this data, the Company has selected a location for its first drilling site, upon which the prospect, based upon the estimates contained in an independent economic and risk evaluation, may have a potential volume of approximately 150 million bbls of oil. The Company is currently negotiating a drilling contract for this first location. The Daw'an No.1 well, located approximately 60 Km west of major oil production, will be drilled to a depth of 1,800 metres commencing in May of 1998.
The purchase of the English and French properties is subject to approval of the Alberta Stock Exchange which is expected to be obtained in connection with a public prospectus.
COUNTRIES
Yemen Oil Capacity 430,000 bbl's/d
Yemen's oil output capacity is expected to hit 430,000 barrels per day (bpd) by the end of 1998, up from current output of 386,500 bpd, the Middle East Economic Survey (MEES) newsletter reported on Monday.
MEES, quoting a recent conference speech by Adel Khorshid, director general of the state Yemen Oil and Gas Corp, said the increase would mainly come from the Jannah field operated by U.S. Hunt Oil and Exxon Corp where flows would increase to 75,000 bpd from a current 25,000 bpd.
Output at the Total SA operated East Shabwa field is expected to reach 30,000 bpd from 20,000 bpd, helping offset declines from the ageing Marib field.
Khorshid broke down current oil output as Yemen Hunt block 18 140,000 bpd, Canadian Occidental Petroleum Ltd block 14 200,000 bpd, East Shabwa 20,000 bpd, Jannah Hunt block five 25,000 bpd and Nimir Petroleum's block 4 1,500 bpd.
Yemen's total crude production in 1997 reached 125,607,739 barrels, the equivalent of 344,130 bpd.
Oil export revenue reached about $1.012 billion last year, representing some 70 percent of total government income, according to Khorshid.
The government's share of crude oil exports was 145,205 bpd in 1997, up from 126,205 bpd the previous year.
Domestic oil products consumption reached 66,803 bpd in 1997, up from 49,687 bpd in 1991.
Yemen last month said it would cut its oil output by two to three percent as part of an agreement by OPEC and some non-OPEC states to rescue oil prices that had slumped to their lowest level in nine years.
China's Crude Oil Production Remains Steady in First Quarter
BEIJING (April 21) XINHUA - China produced 34.82 million tons of crude oil in the first quarter of the year, almost the same as the first quarter last year, according to China's State Administration of Petroleum and Chemical Industry.
The production from January to March accounted for 22.2 percent of the target set for the whole year.
China turned out 35.11 million tons of crude oil in the first quarter of last year. And this year, it expects to produce 157 million tons.
Statistics show that, in the first two months of this year, the sales revenue of China's petroleum and natural gas industry was 24.07 billion yuan, down 1.99 billion yuan or 7.6 percent less than the same period last year.
The industry made 1.27 billion yuan in profit, a 400-million-yuan decrease on a yearly basis. The reduction was 23.95 percent.
Currently, a total of 3,287 wells were shut in China's seven major oil fields such as Daqing, Liaohe, Shengli and Xinjiang.
Consequently, the impact on annual production is estimated at nearly 3 million tons.
According to statistics, China's sales volume of crude oil in the first quarter was 31.6 million tons, and 1.1 million tons were not marketable.
An Updated OPEC Fact Sheet
To access this report: eia.doe.gov
PIPELINES
IPL Unit Gets Green Light For $475M Heavy Oil Pipeline
The Financial Post
A subsidiary of IPL Energy Inc. said yesterday it has received approval from the Alberta Energy & Utilities Board to build a pipeline that will move heavy crude and synthetic oil from the oilsands deposits in northern Alberta.
Wild Rose Pipe Line Inc.'s $475-million project will move up to 570,000 barrels of oil a day from the Athabasca and Cold Lake regions south to Hardisty, Alta., where the line will connect with other carriers, including Interprovincial Pipe Line Inc.'s main line. Interprovincial Pipe Line is also a subsidiary of IPL Energy.
IPL has a 30-year agreement with Suncor Energy Inc. to ship its growing synthetic oil production, beginning with 170,000 barrels a day.
Richard George, Suncor's president and chief executive, said the pipeline opens "a doorway to our growth."
Both Suncor and Syncrude Canada Ltd. are expanding their projects in northern Alberta despite depressed oil prices.
Syncrude said last week it plans to speed up its $1.5-billion expansion of the Aurora mine.
Suncor plans a $2-billion expansion of its integrated facility at Fort McMurray to double its oil sands production to 210,000 barrels a day by 2002.
IPL spokesman Frank Ternan said the company is in active discussions with other shippers to fill the pipeline's remaining capacity. It is IPL's first project in the heavy oil region.
The pipeline is expected to be completed in the first quarter of 1999.
EARNINGS
PanCanadian Petroleum Limited
Message 4135763
Amber Energy Inc.
Message 4135545
Gentry Resources Ltd.
Message 4135314
Pebercan Inc.
Message 4134657
Goal Energy Inc.
Message 4136234
Vintage Resource Corp.
Message 4134609
Northern Border Partners, L.P.
Message 4140666
MISC. NOTES
Suncor Energy is holding its Annual General Meeting on Wednesday, April 22, 1998 at the Palliser hotel in Calgary, and media representatives are invited to attend. During the meeting there will be a review of the company's performance in 1997 and Rick George, Suncor's president and CEO, will outline the first quarter results of 1998. Lunch will be provided in the Oval room and lobby of the Palliser hotel.
Immediately following the meeting a media conference will be held at 12:00 noon, MST, in the Spanish room where George will be available for questions. Media representatives who are not able to attend in person, but would like to participate in the conference call should dial the toll free number 1-(800)-789-0135 between 11:50 a.m. and 12:00 noon. A post view of the conference call will be available until April 29 by dialing 1-(800)-558-5253 and entering reservation number 870125.
MARKET ACTIVITY
In the U.S., oil-drilling stocks were in favor Monday as Cooper Cameron (RON), Cliffs Drilling (CDG) and Smith International (SII) all rose at least 1 point.
However, better-than-expected earnings failed to inspire shares of Schlumberger (SLB) or Santa Fe Energy (SFR). Both fell fractionally, while Western Atlas (WAI) dipped 2 1/16 to 74 7/8 despite beating the Street. Scheduled for Tuesday reporting of earnings are the oil producers. Results are due from Dow components Exxon (XON - Estimate: 0.66) Amoco (AN - Estimate: 0.77) and Texaco Inc (TX - Estimate: 0.53).
The Toronto Stock Exchange 300 Composite Index fell 0.1% or 10.39 to 7754.36.
In comparison, the Toronto Oil & Gas Composite Index gained 0.0$ or 1.23 to 6726.62. The sub-components were mixed. The Integrated Oil's fell 0.7% or 58.88 to 8651.445. Te Oil & Gas Producers rose 0.2% or 11.45 to 5980.94 and the Oil & Gas Services gained 0.8% or 25.14 to 3311.08.
Rio Alto Exploration, Petro-Canada, Real Resources, Probe Exploration, Westfort Energy, Gulf Canada Resources, Barrington Petroleum and Petromet Resources were among the top 50 most active traded issues on the TSE.
Talisman Energy gained $0.70 to $43.40.
Percentage gainers included Bitech Petroleum 16.1% to $3.60, Post Energy 14.3% to $4.00, Westfort Energy 13.8% to $3.30, Real Resources 8.4% to $1.16, Triumph Energy 7.7% to $2.80, TUSK Energy 5.9% to $1.43, Canrise Resources 5.9% to $5.40, Torrington Resources 5.7% to $4.60 and Torex Energy 5.3% to $1.20.
On the downside, Suncor Energy fell $1.25 to $48.95, Imperial Oil $0.90 to $78.60, Anderson Exploration $0.85 to $18.05 and Seven Seas Petroleum $0.55 to $22.70.
Percentage losers included Canadian Conquest Exploration 8.7% to $1.05, Ram Petroleum 7.2% to $1.29, Calahoo Petroleum 6.8% to $1.10, Purcell Energy 6.5% to $1.00, International Rochester 6.5% to $1.59, Eurogas Corp. 6.1% to $1.08, Neutrino Resources 4.7% to $1.43, Anderson Exploration 4.5% to $18.05 and Pendaires Petroleum 4.5% to $7.50.
Prudential Steel, McCoy Brothers and Inter-Tech Drilling were service issues listed among the top 50 most active traded on the TSE.
Prudential Steel gained $1.15 to $13.50, Dreco Energy Services $1.00 to $56.50 and Precision Drilliing $0.75 to $36.00.
Percentage gainers included Bromley Marr 17.6% to $1.00 and Prudential Steel 9.3% to $13.50.
On the downside, Canadian Fracmaster fell $1.00 to $22.50.
Percentage losers included Kelman Technologies 6.9% to $6.9% to $1.90, Trican Well Service 4.6% to $5.15 and Canadian Fracmaster 4.3% to $22.50.
Over on the Alberta Stock Exchange, First Star Energy, HEGCO Canada, AltaPacific Capital, Emerald Bay Energy, Raptor Capital, Bearcat Exploration, ICE Drilling and Desmarais Energy were among the top 25 most active traded issues.
HEGCO Canada gained $0.24 to $3.54, Commonwealth Energy $0.10 to $0.75, Energy North $0.10 to $0.41, Northline Energy $0.10 to $1.20, Bridgetown $0.09 to $0.60 and Desmarais Energy $0.09 to $0.36.
On the downside, Bolt Energy fell $0.15 to $0.50, Doreal Energy $0.15 to $1.05, Wenzel Downhole $0.15 to $1.10, BriAlto Energy $0.13 to 40.40, Corridor Resources $0.12 to $1.03, Big Bear Exploration $0.10 to $1.20, Solid Resources $0.10 to $6.90, Total Energy Services $0.10 to $2.00 and Dalton Resources $0.10 to $0.18.
EXCHANGE DOING'S
Welwyn Energy Ltd Closes IPO
Welwyn Energy Ltd. (''Welwyn''), a junior capital pool corporation, today announced the closing of its Initial Public Offering.
On April 15, 1998, Welwyn closed its Initial Public Offering of 1,500,000 common shares at an offering price of $0.20 per common share. Funds raised under the offering are to be used to facilitate Welwyn's ''Major Transaction''. Welwyn has received conditional listing approval from The Alberta Stock Exchange and is awaiting final listing approval.
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