MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING THURSDAY, JANUARY 15, 1998 (5)
KERM'S TOP 21 - SPEC 15 - SERV 9 COMPANIES IN THE NEWS
BERKLEY PETROLEUM announced it has made an offer to acquire all of the shares of Martel Resources Inc., an Alberta based private oil and gas company with assets in the Ft. St. John, Stoddart and Siphon areas of northeast British Columbia and the Wildhay area of Alberta. The acquisition was approved by Martel's shareholders January 14, 1998, and is scheduled to close January 20, 1998.
Under the agreement, Berkley will issue 450,000 shares to Martel shareholders.
Berkley estimates the acquisition will add approximately 500 boepd of production and reserves of 1.37MMBOE proven plus half probable to the company.
KERM'S WATCHLIST OF COMPANIES IN THE NEWS
GULF CANADA RESOURCES LTD. (TSE/GOU) announced an oil discovery at the Tasour-1 exploration well located on Block 32 in the producing Sayun Basin in the Republic of Yemen. Gulf Canada is the operator through its wholly owned subsidiary Clyde Expro Plc Yemen.
The Tasour-1 well was drilled to a total depth of 2,763 metres (8,500 feet) and flowed at 3,250 barrels of oil per day of 29 degree API on a submersible pump from an 11 meter perforated interval. A maximum pump capacity rate of 4,877 barrels of oil per day was also recorded. Oil was discovered in the Qishn Clastics reservoir, the major producing reservoir in the nearby Masila Block.
The discovery is located in central Yemen approximately 10 kilometres north of the Masila Fields that currently produce in excess of 180,000 barrels of oil per day. A technical and economic analysis of the well results is underway prior to deciding on an appraisal program, which could include evaluation of other prospects identified on the same trend and deeper formations from which the nearby Sunah Fields produce. The well has been suspended as a potential producer pending results of the appraisal program.
Pending government approval (x), the interests in the Block 32 production sharing agreement are Gulf Canada through Clyde Expro Plc with 32.26 per cent, Norsk Hydro Yemen AB of Norway with 31.0 per cent, Ansan Wikfs Hadramaut Ltd. a private Yemeni company with 16 per cent, Oranje-Nassau Yemen BV of Netherlands with 12.74 per cent and TransGlobe Energy Corporation of Canada with 8.0 per cent.
(x)Formal assignment of the 8 per cent interest to TransGlobe Energy from Gulf Canada Resources Ltd. and Oranje-Nassau is under application pending government approval.
BELAIR ENERGY (ASE/BGY) noted that after acquisition of Windstar Energy, the company will have production of approximately 170 bpd of crude oil and NGL's and 2.2 mmcfd of natural gas. The company will have 850,000 oil equivalent barrels of proven reserves, 300,000 oil equivalent barrels of probable reserves and 66,500 gross (19,600 net) acres of undeveloped lands. Most of the company's properties are in central and northwestern Alberta.
OTHER COMPANIES IN THE NEWS
The Board of Directors of DIAZ RESOURCES LTD. announced the appointment of Mr. Robert W. Lamond as President and Chief Executive Officer and Mr. Charles A. Teare as Vice President and Chief Financial Officer of the Company.
Mr. Lamond indicated that he intends to expand the Company's U. S. and Canadian exploration programs during 1998, financing the U.S. program with its current working capital and cash flow, and initially financing the Canadian program with flow through shares.
In the U. S., the Cabaza Creek well in Goliad County, Texas has been cased as a potential Lower Wilcox gaswell. Completion of the well is planned for next week and if successful, the well should be on stream before the end of the first quarter, 1998. Diaz has a 33% working interest in the well. Diaz is also participating for its 8.25% working interest in a horizontal re-entry of an Edwards Limestone gas prospect in DeWitt County, Texas and a 20% interest in a deep re-entry in Cameron Parish, Louisiana.
Diaz also has the right to participate as a 25% partner in a 125,000 acre exploration permit in the Llanos Basin of Colombia, South America.
NU-SKY INC.(VSE/NUS) announces that it has cased its Brazeau River Shunda well. Completion and testing of several prospective zones is expected to begin by mid-February. Nu-Sky has a 10 percent working interest in this well.
So far this year Nu-Sky has participated in drilling 3 wells resulting in two gas wells and one oilwell.
COMMONWEALTH ENERGY CORP. (ASE/CWY) announced by way of information received from Energas Resources Inc., the operator, that operations to perforate the entire Dakota/Lakota zone in the Finley State No. 2 well began today. Geology indicates that this prolific zone discovered in the Finley State No. 1 well may exist in the Finley State No. 2. costs to the Company will be US $2,250,000 to be paid from existing cash. Further announcements will be forthcoming.
DEL ROCA ENERGY INC. (ASE/DER) has withdrawn intent to purchase all of the shares of a private company with oil and gas assets in the Pembina area of Alberta. The proposed acquisition had been announced by the Corporation on November 25, 1997 with a proposed closing date of January 31, 1998. The decision was based on the results of the Corporation's due diligence process and the ensuing determination that the proposed transaction was not in the best interests of the shareholders.
The Corporation is continuing to evaluate numerous other acquisition opportunities.
INTERNATIONAL - COMPANIES IN THE NEWS
GOLD STAR ENERGY (ASE/GSN) announced the acquisition of interests in two oil concessions in Argentina, for a total of $2.8 million U.S.
Gold Star has entered into an agreement to acquire a 40 percent working interest and will be the technical exploitation operator for the Puesto Guardian concession in the Northwest basin. This 300,000 acre block currently produces 650 bopd, has 2500 km of 2-D seismic and nineteen (19) years remaining on the primary term mineral lease. Gold Star believes there is significant upside potential through horizontal re-entries. Gilbert Laustsen Jung Associates Ltd. are currently finalizing their reserve evaluation of the property.
In addition, the agreement entitles Gold Star to acquire a 28 percent working interest in the La Brea block, also located in the Northwest basin. This 330,000 acre concession currently produces 30 bopd and is operated by Equitable Resources of Houston, Texas.
Both acquisitions are expected to close April 1, 1998, subject to a satisfactory due diligence review by Gold Star.
TRANSGLOBE ENERGY CORP. (TSE symbol TGL) (NASDAQ/TGLEF) announced today an oil discovery at the Tasour -1 exploration well located on Block 32 in the producing Sayun Basin in the Republic of Yemen. Gulf Canada is operator of Block 32 through its wholly owned subsidiary Clyde Expro plc of Yemen.
The Tasour well was drilled to a total depth of 2,763 metres (8500 feet) and flowed at 3,250 barrels of oil per day of ca. 29 degree API on a submersible pump from an 11 metre perforated interval. A maximum pump capacity rate of 4,877 barrels of oil per day was also recorded.
Oil was discovered in the Qishn Clastics reservoir, the major producing reservoir in the nearby Masila Block.
The discovery is located in central Yemen approximately 10 kilometres north of the Masila Fields that currently produce in excess of 180,000 barrels of oil per day. A technical and economic analysis of the well is underway prior to deciding on an appraisal program which could include evaluation of other prospects identified on the same trend and deeper formations from which the nearby Sunah Fields produce. The well has been suspended as a potential producer pending results of the appraisal program.
Pending government approval (x), the interests in the Block 32 production sharing agreement are Gulf Canada (Clyde Expro plc) with 32.26 percent, Norsk Hydro Yemen AB of Norway with 31.0 percent, Ansan Wikfs (Hadramaut) Ltd. a private Yemeni company with 16 percent, Oranje-Nassau Yemen B.V. of the Netherlands with 12.74 percent and TransGlobe Energy Corporation of Canada with 8.0 percent.
(x) Formal assignment of the 8 percent interest to TransGlobe Energy from Gulf Canada Resources Ltd. and Oranje Nassau is under application pending government approval.
EQUATORIAL ENERGY INC. and First Dynasty Mines Ltd. announced today that the definitive agreement has been signed for First Dynasty to sell its 100% interest in Energy Process Services (EPS) to Equatorial. EPS owns 80% of Genindo EPS, which operates the Sembakung Oilfield in East Kalimantan, Indonesia.
The terms of the sale will result in First Dynasty receiving approximately US$40 million in cash, of which US$10 million was received in December 1997. The remaining US$30 million is comprised of a US$23 million acquisition cost, plus accumulated working capital as of December 31, 1997. A separate agreement has been signed whereby First Dynasty will sell its drill rig for US$3 million. Equatorial is entitled to all cash flow and working capital which accrues to EPS from January 1, 1998 to closing.
The Sembakung field is currently producing approximately 3,700 barrels of oil per day. Equatorial intends to expand production to in excess of 10,000 barrels of oil per day through a capital investment program.
CANADIAN TALON RESOURCES LTD.esources, Ltd. announced that it has entered into a letter of intent dated January 12, 1997, among the Corporation, Pacalta Resources Ltd. , TALON Resources Corporation and Taurus Petroleum Limited
The company proposes to;
a)complete a private placement of 1,875,000 units of the Corporation at a purchase price of $0.40 per unit or an aggregate amount of $750,000. Each unit shall consist of one (1) common share and one (1) share purchase warrant. Each share purchase warrant shall entitle the holder thereof to purchase zero point eight (0.8) additional common shares of the Corporation at a purchase price of $0.50 per common share on or before twenty four (24) months from the date of issue for an aggregate of 1,500,000 common shares; and
b) acquire certain interests relating to a joint venture agreement (the "JVA") among Pacalta, TALON and Taurus which will entitle the Corporation to evaluate, upgrade and develop power generation and related infrastructure in support of Pacalta's operations in Ecuador and Columbia. The parties have agreed that the initial project will be a 10-20 Mega Watt power generation project on Pacalta's City Block in Ecuador. The Corporation intends to issue 4,125,000 common shares of the Corporation, at a deemed value of $0.40 per common share for an aggregate consideration of $1,650,000 related to the acquisition of the JVA interests.
Certain directors and officers of the Corporation are also directors and/or officers of Pacalta, TALON and Taurus. The issue price per unit of the Corporation and common share of the Corporation represents the closing price of the common shares of the Corporation as traded on The Alberta Stock Exchange on January 12, 1998, less an allowable discount of 10 percent. |
