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Gold/Mining/Energy : CDN. Oil/Gas Cos. - Shareholder Maximization -- Ignore unavailable to you. Want to Upgrade?

To: Richard Saunders who wrote (10)	5/18/2001 12:28:41 AM
From: Richard Saunders	Respond to of 56

More than $40mil. isn't enough - AGW-cdnx Argonauts Group newswire.ca CALGARY, May 17 /CNW/ -Corporate Update The Board of AGW reports, that further to its press release of March 9,2001 and the engagement of Collins Barrow Securities Inc., it has not received an acceptable offer, given the quality of its properties, anticipated cash flow and exploration opportunities. The Board rejected indications of interest, which were above AGW's net asset value, discounted at 15% in the amount of $ 40.4 million. The Board considers AGW's quality exploration opportunities will be a significant factor in shareholder returns over the next twelve months. AGW has embarked on an aggressive program which has produced a world class gas exploration play at Pinto, Alberta (AGW 37.5% interest). The first Pinto well is expected to spud this fall, subsequent to the recently commenced 3D seismic program. AGW's drilling program to the end of July includes four exploration wells, (3.5 net), the first of which spudded May 15 at Ferrier, Alberta. The remaining drilling locations are Fenn and Ewing Lake, Alberta. AGW is also continuing the development of its Thorsby property with production increases expected through facilities optimization that will allow implementation of a field wide water flood enhanced recovery program, and development drilling. Current production is 5 mmcf per day of natural gas, 800 barrels per day of light and medium oil and 150 barrels per day of natural gas liquids. No production is currently hedged. AGW has changed its year end to July 31 as a result of an amalgamation.Quarterly results have been reported for the periods ended October 31, 2000 and January 31, 2001. Quarterly results for the third quarter ended April 30, 2001 will be reported in June, 2001. AGW's second quarter interim financial statements for the six months ended January 31, 2001 report a record $ 8.1 million of pre tax cash flow from operations and $ 6.3 million of cash flow from operations after current income taxes. ($ 0.49 per share basic before tax and $ 0.38 per share basic after current taxes). AGW expects to be non taxable on operations for the remaining six months of the year based on a capital budget of $ 7.5 million for the third and fourth quarters.