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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: johnlag who wrote (6910)	10/20/1999 10:11:00 AM
From: Englishbob	Read Replies (1) \| Respond to of 24940

This just out.. Hope it helps EB CALGARY, Oct. 20 As a result of recent increases in trading activity in its shares on The Toronto Stock Exchange (the ''TSE''), Merit Energy Ltd. has been requested by the TSE to disclose any recent material changes in its business or affairs of which it is aware. Merit is unaware of any such material changes. Nonetheless, in order to fully inform the marketplace of all recent corporate developments, Merit wishes to make the following announcements: As at today's date Merit's production, with no consideration being given to acquisitions or fourth quarter development, is 65 mmcf/day of natural gas and 2,325 bbls/day of liquids. In addition, Merit has 8 well tie-ins within the East Central Alberta area and 3 well tie-ins in the South Eastern Alberta area, all of which are scheduled for the fourth quarter, and which will collectively deliver an estimated net 11 mmcf/day of gas. Merit's fourth quarter drilling program is to consist of at least 12 wells in the East Central Alberta area, all utilizing the cost effective coiled tubing process, which Merit expects will add approximately 6 mmcf/day of gas to its production. Merit's fourth quarter capital expenditure program is to be funded through fourth quarter cash flow. In light of the continued upward movement in the forward natural gas market, Merit has terminated the previously announced prepaid gas purchase arrangement. This arrangement was being negotiated in respect of the acquisition by Merit of Gulf Canada Resources Limited's interest in Merit's East Central Alberta core area. To facilitate Merit's efforts to finalize alternative financing arrangements in respect of this acquisition, Merit and Gulf have agreed to extend the closing date of the acquisition to November 1, 1999. Further, Merit is pursuing a limited divestiture program of certain non-strategic assets. As part of this program, Merit has entered into an agreement to sell its interest in the Strachan and Paddle River areas. The proceeds from this disposition shall be used to pay down trade payables in the amount of $8.7 million, with the balance being applied to reduce long term debt. Proceeds realized from further dispositions will be used to pay down debt and to fund future core area programs. Upon completing the Strachan/Paddle River disposition, which disposition is scheduled to close on or before October 25, 1999, Merit estimates that its total debt will be approximately $112 million. As a result, Merit's present debt to 1999 cash flow multiple is estimated at 2.8. Merit's third quarter financial statements are scheduled for release and mailing to shareholders on or before November 15, 1999. Merit also confirms that it continues to be in full compliance with all terms and conditions of its existing credit facilities with its banking syndicate. The banking syndicate is presently reviewing increases to Merit's credit facilities. THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE.