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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (7817)	12/9/1997 9:17:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Red Sea Oil: Libyan Well Update ASE SYMBOL: RSO DECEMBER 9, 1997 VANCOUVER, BRITISH COLUMBIA--Red Sea Oil Corporation (the "Company") is pleased to announce that the B1-NC177 well has reached a depth of 6,837 feet and is currently coring the top of the main "Zelten" reservoir after encountering additional oil and gas shows. Indications are that the porous limestone which is being cored could be a reefal build-up. Furthermore, the upper section from 5,400 feet to 6,700 feet, where very strong oil and gas shows were encountered while drilling, was logged and RFT pressure points were acquired in the main zone of interest. The first pass of the log interpretation has confirmed the presence of two pay zones with a combined net pay of over 120 feet. The Company plans to run at least two production tests on this upper section. Drilling will continue through the remaining section of the main Zelten reservoir and down to the "Beda" formation (limestone reservoir) which is also one of the main targets of this well. Final total depth is estimated at 8,500 feet below ground level. Red Sea Oil is the operator and holds a 60 percent interest in the Block. Sands Petroleum AB holds the remaining 40 percent interest. ON BEHALF OF THE BOARD Ian H. Lundin, President

To: Kerm Yerman who wrote (7817)	12/9/1997 11:11:00 PM
From: Arnie	Respond to of 15196

FINANCING / Ascot Energy announces Flow Through Share Placement Ascot Energy Resources Ltd. (ASE trading symbol: AER) wishes to announce that the Company is currently raising up to $1,400,000.00 by way of a "flow through" share private placement, priced at $0.35 per share. This issue is expected to be fully subscribed and closed by December 16, 1997. Part of the proceeds of this issue will be used to finance the Company's winter drilling program which is centered around further developing one of its core producing areas, where a well drilled earlier in the year is producing over 100 barrels of oil and 900 MCF of gas per day. A step out well drilled last week is expected to be placed on production by mid December at similar rates and a third well which was spudded December 7, 1997 is expected to reach total depth by the end of the week. The Company anticipates to drill at least two more locations this winter before proceeding to full field development. The Company's production is currently 130 BOE split evenly between oil and gas, and its expecting to exit the year at about 220 BOE. For further information please contact: Joe Worobec (403) 531-9022 or Andre Arrata (403) 263-2412

To: Kerm Yerman who wrote (7817)	12/9/1997 11:14:00 PM
From: Arnie	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Sunburst Oil & Gas commence Drilling ALTA. STOCK EXCHANGE SYMBOL SBS EDMONTON, Dec. 9 /CNW/ - Sunburst Oil & Gas Inc. are pleased to announce that horizontal drilling has started into the cardium zone in the 'Pembina' field. The Corporation has retained the professional services of Culshaw Petroleum Services Inc. to oversee the re-entry operations, logging and testing of wellsite, 'Western 16C/16C2 Pembina', with the first well to be completed before year-end. Western Canada Energy (1996) Ltd., wholly-owned by Sunburst Oil & Gas Inc. has accumulated 1,920 acres in the central Pembina field with producing oilwells, interlink pipeline and two battery stations. Upon completion of the first well, Culshaw Petroleum Services Inc. will compile data in accordance to restructure the field into further drilling of horizontal wells. Sunburst's intent is to increase production by continuous horizontal drilling in the 'Pembina Field'.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:16:00 PM
From: Arnie	Respond to of 15196

CORP. / Wolverine Energy advises Holders of Warrants CALGARY, Dec. 09 /CNW/ - Wolverine Energy Corp. (WVE-ASE) advises holders of the warrants dated December 27 and December 31, 1996, that this issue will expire on Monday, December 29, 1997 at 4:30 p.m. Calgary Time. Holders of this security can exercise the warrant plus a cash consideration of $1.10 in exchange for one common share. All warrants not exercised by the close of business on December 29, 1997 will expire.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:19:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Equatorial Energy updates Sembakung Oilfield CALGARY, Dec. 9 /CNW/ - Equatorial Energy Inc. (''Equatorial'', formerly Australian Oilfields Pty. Ltd.) (Vancouver-''OZ'') is pleased to announce that normal management control has been restored to Genindo Energy Process Services (''GEPS''), the company that operates the Sembakung oilfield in NE Kalimantan, Indonesia about 500 miles northeast of Jakarta. The restoration of management control as determined by GEPS' Board of Directors will allow Equatorial to proceed with the purchase of 100% of the shares of Energy Process Services Ltd. (''EPS'') from First Dynasty Mines Ltd. (''FDM'') (Toronto-''FDM'') of Singapore. GEPS operates the Sembakung oilfield in a partnership with Pertamina, the state oil company of Indonesia. GEPS is 80% owned by EPS and 20% owned by Genindo Citra Perkasa, a private Indonesian company. Pursuant to an agreement dated February 11, 1997, as amended, Equatorial has contracted to purchase FDM's shares in EPS for U.S.$40,000,000. The purchase price, which will be subject to material working capital and other adjustments, should be finalized on or before January 15, 1998. Closing of the acquisition is expected to be in the latter part of the first quarter of 1998 and is subject to a number of conditions including Equatorial securing the appropriate financing and all other necessary regulatory approvals. The Sembakung oilfield is currently producing 3,900 BOPD and has proven and probable reserves of 41.5 million barrels. Equatorial's plans for Sembakung include a 3-D seismic program and a minimum of 15 development wells. Initial drilling is scheduled to commence in the 4th quarter of 1998 and has the potential to significantly increase Sembakung's daily production.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:21:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Seven Seas announces Drilling in Colombia HOUSTON, Dec. 9 /CNW/ -- Seven Seas Petroleum Inc. (Toronto: SVS.U) announced today that drilling has commenced on the Tres Pasos No. 2-E well in Colombia, South America. This well will satisfy the third year drilling obligation to Ecopetrol on the company's Rio Seco Block and is projected to a depth of 6,500 feet to test to the Cimaronna formation. The Tres Pasos No. 2-E is located approximately 9 kilometers northwest of the discovery well, El Segundo No. 1-E, and is the furthest delineation well drilled to date on the Emerald Mountain project. GHK Company Colombia, a wholly owned subsidiary of Seven Seas, is the operator of the Emerald Mountain project. Seven Seas holds a 57.7% interest in the Emerald Mountain project which encompasses the Dindal and Rio Seco Blocks. Statements regarding anticipated oil and gas production and other oil and gas operating activities, including the costs and timing of those activities, are "forward looking statements" within the meaning of the Securities Litigation Reform Act. The statements involve risks that could significantly impact Seven Seas Petroleum Inc. These risks include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services and government regulation and foreign political risks, as well as other risks discussed in detail in the Seven Seas Petroleum Inc. Securities Exchange Commission filings. Seven Seas Petroleum Inc. is an international oil and gas exploration and production company. For more information, contact Herbert C. Williamson III, Chief Financial Officer at 713-622-8218.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:23:00 PM
From: Arnie	Respond to of 15196

NORMAL COURSE ISSUER BID / Dundee Petroleum Corp CALGARY, Dec. 9 /CNW/ -- DUNDEE PETROLFUM CORP. (DPC) announced today it has received regulatory approval to purchase, by way of a normal course issuer bid through the facilities of The Alberta Stock Exchange, at market price, that number not to exceed 557,806 common shares, being 5% of its 11,156,134 issued and outstanding common shares. The maximum investment intended will not exceed $300,000, subject to review by the board of directors of Dundee. The bid will commence, on December 10, 1997 and expire no later than December 10, 1998. This reason for the bid is that, in the opinion of the board of directors, the value of Dundee, based on anticipated cash flows and underlying asset values, is greater than the present aggregate market price of the common shares and accordingly, the acquisition of common shares under the bid represents a worthwhile investment and appropriate use of funds.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:26:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Ocelot Energy announces Test Rates in Oil Wells CALGARY, Dec. 09 /CNW/ - Ocelot Energy Inc. of Calgary has announced initial test rates of up to 1,650 barrels of oil per day from its first well drilled in Gabon, NZOB-2, and the successful recompletion of a second well, NYOB-1, which had tested over 1,400 barrels of oil when it was drilled in 1988. A third well, NZOB-3, planned for the same pool, commenced drilling on December 5, 1997. Depending on the results from the vertical section of this well, a horizontal segment is planned to assist in the evaluation of using horizontal wells in the Obangue oil pool. Production facilities near the NZOB -2 wellsite, including 16,000 barrels of storage, a 6.5 kilometre sales pipeline to the river and a barge loading facility will be completed and operational later this month. Crude oil will be taken via river barge to existing facilities on tidewater. Agreements are in place with a Dutch barging company and a French oil producer for the transportation and marketing of Ocelot's crude oil. Crude oil from Gabon is freely traded on world markets. Ocelot anticipates its Gabonese oil production will average approximately 1,000 barrels per day in the first quarter of 1998, one year after acquiring the development block from the State of Gabon. Based upon the 1998 capital expenditure program, the Company is expecting to achieve production levels from this pool of 5,000 barrels of crude oil per day by year-end 1998. Ocelot has a 92.5 percent working interest in three separate permits in Gabon totaling over 1.3 million acres of development and exploration rights. These permits contain five previously discovered oil pools having estimated total oil-in-place of 200 to 300 million barrels of oil. Recovery factors are expected to be 20 percent to 30 percent. Ocelot acquired the exploration and development rights for two of these permits in December 1996 and the third in June 1997. The Obangue pool is the first development project to be initiated by Ocelot on the existing pools. Ocelot Energy Inc. is a publicly traded international energy company engaged in the exploration, production and marketing of oil and natural gas. Ocelot Energy's Class B Subordinate Voting shares and Class A Common shares are listed for trading on the Toronto, Montreal and Alberta Stock Exchanges under the symbols OCE.B and OCE.A, respectively. For further information on Ocelot and Ocelot's Gabon activities, please visit our website at www.ocelot.ca. BACKGROUND Ocelot NZE Gabon Inc., a wholly owned subsidiary of Ocelot Energy Inc., commenced drilling operations on its first well in Gabon September 10, 1997. The NZOB-2 well was drilled to a total depth of 1,795 metres and completed as an oil well in the Obangue oil pool of Ocelot's Panthere-Nze development block. The well was cored and completed in a 33-foot oil pay section in the Gamba Sand. Formation core samples have been analyzed in Calgary and indicate average porosities of 25 percent to 30 percent and permeabilities of 3 to 5 darcies. After completion, the well flowed clean, sweet 33 degree API crude oil at a rate of 1,650 barrels per day on a 3/8ths-inch choke. The flowing wellhead pressure was 795 psi resulting in a calculated drawdown of less than five percent at the sandface at this rate. Commencing December 2, 1997 an extended test program was initiated. The well was flowed at staged rates of 450 to 800 barrels of oil per day over a three day period and will be shut-in for up to ten days for pressure buildup analysis. The well will then be put on permanent production. The second well in Ocelot's three well 1997 program involves the recompletion of NYOB-1. This well was drilled by a major international oil company in 1988 and was flow tested at that time at rates of up to 1,429 barrels of oil per day on a 5/16ths-inch choke. The well was subsequently suspended and never produced and the permit was relinquished to the State of Gabon in July 1996. On November 27, 1997, Ocelot finished recompletion operations on this well and the well is now production ready. The well was flowed for clean-up purposes for one hour at a rate of 662 barrels of oil per day on a 5/16ths-inch choke at less than a 5 percent drawdown. A one kilometre pipeline is being installed to the production facilities near NZOB-2 and commercial production and testing of this well will commence in January 1998. Ocelot anticipates long-term stabilized production rates of 300 to 600 barrels of oil per day from each of these vertical wells. Also completed in October 1997 was a 3-D seismic program over the Obangue pool. Using the data obtained from this program and integrating that with existing data will allow for optimal development of the pool. Further horizontal development drilling is planned to commence in the second quarter of 1998.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:29:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Terra Nova awards major contract ST. JOHN'S, Nfld, Dec. 9 /CNW/ - The Terra Nova Alliance has selected Seacore Limited for the construction of glory holes for the Terra Nova offshore oil development. Selection of Seacore Limited followed a tender review process that began in May, 1997. Ten companies, including two Canadian-based companies, were invited to submit tenders. A detailed assessment of the seven tenders submitted concluded that the proposal from Seacore best met technical and commercial considerations and the project's commitment to Canada-Newfoundland benefits. The contract is valued at approximately C$24 million. Commenting on the selection of Seacore Limited, Terra Nova development leader, Mike Cantle said, ''Construction of the glory holes is a critical factor in the overall timing of the Terra Nova project, certainly as it relates to preparation for drilling. We are, therefore, pleased to have contracted Seacore Limited to carry out the construction work in the timeframe we require for this development.'' He added, ''The proposal from Seacore also offers Terra Nova a unique opportunity to use the latest technology for excavation.'' Construction of the glory holes - holes in the sea floor - is necessary as a method of protecting wellheads and subsea templates from scouring icebergs. Instead of conventional dredging operations, Seacore will use a large diameter drill deployed from a barge to excavate the seafloor. The excavated material will be lifted to the barge and deposited on the seabed a short distance from the glory hole. Construction of the glory holes will be carried out over two seasons. The first phase will commence in June, 1998 and run through until September 1998. Phase two will be carried out during the summer of 1999. A total of four glory holes will be constructed. Each glory hole will be 11.5 metres deep. The base area of the glory holes will range from 16 metres by 16 metres for the smallest hole to 56 metres by 16 metres for the largest. Seacore Limited is a UK registered company, fifty per cent owned by Agra Inc., a Canadian-based company with its head office located in Calgary. During the operational phase of the project, Seacore will establish a support base office in St. John's. ''We look forward to working with Seacore Limited to successfully deliver what will, undoubtedly, be one of the largest underwater excavations ever made for an offshore hydrocarbon project,'' said Jean-Michel Dumay, president of Coflexip Stena Offshore International on behalf of Coflexip Stena Offshore Newfoundland, the Terra Nova Alliance member company responsible for managing the contract. Following regulatory approval and a decision by the project proponents to proceed with the Terra Nova development, detailed engineering, fabrication and construction will commence in 1998. The Terra Nova development proponents are: Petro-Canada (operator), Mobil Oil Canada Properties, Husky Oil Operations Ltd., Norsk Hydro, Murphy Oil Company Limited and Mosbacher Operating limited. The Terra Nova Alliance is a consortium of companies, led by Petro-Canada, to design and construct the floating production facility and subsea components necessary for the development of the Terra Nova oil field. The Alliance consists of: SBR Offshore, Halliburton Energy Services, FMC Offshore Canada Ltd., PCL Industrial Constructors Inc., Coflexip Stena Offshore Newfoundland Ltd. and Doris ConPro Offshore Ltd. The Terra Nova oil field is located on the Grand Banks 350 kilometres east-southeast of St. John's, Newfoundland. Discovered in 1984, Terra Nova is the second largest field off Canada's East Coast. Estimated reserves are 300-400 million barrels of recoverable oil. The field will be developed using a floating production facility. Start up and first oil is expected in 2001 or earlier.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:32:00 PM
From: Arnie	Respond to of 15196

PIPELINES / Mexico's 1st Private Pipeline secures Financing MEXICO CITY, Dec. 9 /CNW/ - Energia Mayakan S. de R. L. de C.V., a project company sponsored by TransCanada PipeLines Limited, InterGen and Gutsa Construcciones, has completed debt financing for a US$266 million pipeline that will transport natural gas from Ciudad Pemex to the Yucatan Peninsula. The deal is financed with a $210 million loan facility through the InterAmerican Development Bank (IDB). IDB will fund $68 million directly while Union Bank of Switzerland (UBS), acting as co-arranger, will fund $142 million under the IDB umbrella. The sponsors plan to invest approximately $56 million of equity in the project. Mayakan is noteworthy for a number of precedents, the first being the speed with which its debt financing occurred. The transportation services agreement, the principal contract with Mexico's Comision Federal de Electricidad (CFE), was finalized only last April. The rapid, eight-month financial closure is believed to be a record for greenfield project financing of a Mexican energy project. Second, the Mayakan project is Mexico's first significant pipeline development to be owned and operated by the private sector. Third, it is the first financial project of this magnitude with the IDB as the sole lender of record. ''TransCanada is extremely pleased with closing this important transaction in Mexico. The rapid completion of this deal ratifies our confidence in Mexico's investment climate and prospects for future opportunities,'' said Garry Mihaichuk, president and chief executive officer, TransCanada International. ''The record time frame in which the project has reached financial close is a tribute to the excellent working relationship between the consortium members, the Comision Reguladora de EnergIa (CRE), the CFE and the IDB,'' said Jim Kekeisen, InterGen's Senior Vice President for Fuel Procurement & Investments. ''For InterGen, the Mayakan investment is reflective of our growth strategy of investing in a portfolio of power focused assets in target markets,'' he added. ''All sides of the transaction team worked extremely well together to close the financing in advance of construction. With CFE and the sponsors working diligently on environmental and right of way matters, GUTSA and Bechtel are now well positioned to commence construction,'' said Juan Diego Gutierrez, GUTSA president. The 700 kilometre, 370 million cubic foot per day pipeline is scheduled for completion in 1999. It is intended to fuel new power plants totaling 855 megawatts to be built in the Yucatan Peninsula and existing power stations to be converted to natural gas totalling 655 megawatts. Mayakan is also expected to transport natural gas to other industrial customers in the four states the pipeline crosses. TransCanada PipeLines Limited is one of North America's leading transporters of natural gas through its energy transmission businesses. TransCanada also operates significant complementary businesses in energy marketing and energy processing in North America, and continues to expand its operations internationally. Founded in 1995, InterGen is an international power and re lated asset development and management company. Mayakan is a milestone project for InterGen, it is the fifth greenfield project which the company has brought to financial close and the company's first pipeline effort. Mayakan extends InterGen's growing presence in Mexico which began with its involvement in Samalayuca II, Mexico's first privately funded power plant. InterGen has established development offices in Mexico City and Monterrey and is actively involved in upcoming CFE bids. An affiliate of Bechtel Enterprises, InterGen currently has projects under construction in the United Kingdom, the Philippines, Mexico and Colombia. GUTSA has been involved in a number of Mexico's major economic sectors since 1944. GUTSA started in building construction and later became involved in highway and infrastructure projects. Its activities now extend to industrial construction, real estate, urban services and energy projects. Today, GUTSA is one of the leading construction groups in Mexico.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:33:00 PM
From: Arnie	Respond to of 15196

CORP. / K2 Energy adds Key Officers CALGARY, Dec. 9 /CNW/ - K2 Energy Corp. is pleased to announce the appointment of two new officers to the company. These individuals fill key roles for the company as it furthers exploration of its enormous land position in northern Montana. Ms. Susan Eaton, P.Geoph., P. Geol., has accepted the position of Vice-President of Exploration effective immediately. Ms. Eaton is an exploration manager with sixteen years of progressive and successful experience in the oil and gas industry. Her varied experience includes working as a geologist and geophysicist with both major and start-up oil companies, domestically and internationally. She brings exploration and development expertise in the Western Canadian Sedimentary Basin, Canadian frontier lands, the North Sea and the Rocky Mountain ''Disturbed Belt'' area. Mr. Ross Liland, B.A., B.Comm., C.A., has accepted the positions of Vice-President, Finance and Chief Financial Officer. Mr. Liland will be responsible for directing and managing all financial, general accounting, production accounting, and taxation functions of the company. Additionally, Mr. Liland brings extensive experience in the evaluation and implementation of acquisitions and dispositions, financial auditing, and the coordination and negotiation of banking and financing activities. Most recently, Mr. Liland was Vice-President, Finance of Inverness Petroleum Ltd. K2 Energy Corp. has approximately 300,000 acres of prime exploration land on the Blackfeet Reservation in Montana. Several major international companies have approached K2 Energy regarding potential joint ventures for exploration and drilling. K2 Energy Corp. is publicly traded on the Toronto Stock Exchange under the symbol ''KTO.''

To: Kerm Yerman who wrote (7817)	12/9/1997 11:35:00 PM
From: Arnie	Respond to of 15196

FINANCING / Brigdon Resources announces Private Placement CALGARY, Dec. 09 /CNW/ - Brigdon Resources Inc. (TSE - BRG.A) of Calgary announces that it has reached agreement with First Marathon Securities Limited whereby First Marathon will act as agent on the private placement of 500,000 Class ''A'' Common flow through shares at a price of $1.00 per share for total proceeds, before expenses, of $500.000. These funds will, primarily, be used to drill exploratory wells at Brigdon's Buffalo Lake - Stettler field in central Alberta. This placement is subject to regulatory approval.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:37:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Serval reports 1st 6 months results CALGARY, Dec. 09 /CNW/ - Serval (ASE:SI.UN) announces net earnings of $2.8 million ($0.62 per unit, fully diluted), on total revenues of $80.9 million in the six months ended October 31, 1997. This includes net earnings of $1.5 million ($0.29 per unit) on revenues of $44.2 million generated in the second quarter. Cash flow from operations in the first half of Serval's fiscal year amounted to $4.3 million ($0.96 per unit) including second quarter cash flow from operations of $3.2 million ($0.66 per unit). Serval is an energy industry services company. Each of its four divisions: Construction Services; Fluids Services; Production Services; and Environmental Services achieved higher earnings and cash flow in the second quarter. This resulted from high level of demand for energy industry services and increases in internal productive capacity. Serval's capital expenditures year-to-date amounted to $19.9 million. At October 31, 1997, Serval's total assets were $108.1 million with working capital of $6 million; equity of $55.9 million and long-term debt of $5.6 million. Serval is listed for trading on The Alberta Stock Exchange under the symbol SI.UN. There are presently 4,931,260 units outstanding.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:39:00 PM
From: Arnie	Respond to of 15196

CORP. / Genoil Inc announces Special Shareholders Meeting CALGARY, Dec. 9 /cnw/ - Genoil Inc. announces that its board of directors has determined to hold a special meeting of shareholders to consider, among other things, the election of a new board of directors with a clear mandate to manage the affairs of the corporation in its current financial situation and the ratification of the transaction by which St. GeneviŠve Resources Ltd. became indebted to Genoil in the amount of $5.2 million without the authorization of the Genoil board of directors. Genoil management are currently working with newly appointed counsel to fix a meeting date within the shortest possible period of time and a further announcement will be made when this has been finalized. In the meantime, the board of directors has resolved to limit management to concluding only normal course transactions pending the election of a new board of directors. Genoil also announces that Mr. Walter Ziegler has resigned as the interim president and a director of Genoil and Mr. Denis Cardinal has resigned as a director. There are currently 16,845,501 common shares issued and outstanding. Genoil is an oil and gas exploration company.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:41:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Derek Resources announces OIl Recovery Project VANCOUVER, Dec. 9 /CNW/ - Derek Resources Corporation VSE Symbol: DRS Vancouver-based Derek Resources Corporation reported today that a recently completed three-well test program has been successful in identifying a potential steam chamber for a proposed SAGD (Steam Assisted Gravity Drainage) enhanced oil recovery project at the company's LAK Ranch project in Wyoming. The company said the three just-completed wells tested nearly 800 feet up dip of a steeply dipping reservoir. An upper marine sand and a more SAGD prospective lower alluvial sand were encountered in all three wells with the lower sand average net oil saturated thickness of 36 feet exceeding expectations by 10 feet. Following receipt of a comprehensive technical report on the three test wells, and subject to financing, the company plans to proceed early in 1998 with two horizontal wells for SAGD pilot test program at a projected cost of $3.2 million. A summary of the three test wells follows: - Drill hole LAK 1-1 was drilled to a depth of 459 feet to define the upper limit of the potential steam chamber. The well encountered 14 feet of upper marine sand and 25 feet of lower alluvial sand. - Drill hole LAK 12-9 was drilled to a depth of 1,015 feet to define the path of future SAGD wells. It encountered 14 feet of upper marine sand and 52 feet of lower alluvial sand. - Drill hole LAK 12-10 was drilled to a depth of 815 feet and also was designed to define the path of the SAGD wells. It also encountered 14 feet of upper marine sand and 33 feet of lower marine sand. - Porosities in the wells ranged from 18 to 26 percent. Thickness of intersections are based on true thickness corrected for dip angle. The company noted that although both sands contain oil, the lower sand is the primary target for the SAGD recovery process due to its thicker nature. Derek's consultants have reported that the upper sand may offer a fall-back position or significantly enhance SAGD economics through recovery of its oil by a complementary hot water-alkaline-polymer system as either a stand alone recovery technique or in conjunction with fugitive heat from a SAGD process applied to the lower sand. The company has earlier reported that third party reservoir engineers have estimated that more than 100 million barrels of high quality, low sulphur napthenic oil may be in place on the 6,360 acre LAK Ranch project. The main SAGD target is estimated to contain 70 million recoverable barrels, while the upper sand is estimated to contain 18 million recoverable barrels. Project economics are significantly enhanced since oil from both sands commands the premium price of West Texas Intermediate less only $0.98 for gravity deduct and transportation charges. DEREK RESOURCES CORPORATION By: --------------------------- Barry C. J. Ehrl, President

To: Kerm Yerman who wrote (7817)	12/9/1997 11:43:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Brandon Energy confirms Oil Discovery CALGARY, Dec. 9 /CNW/ - BRANDON ENERGY LTD. confirms its participation (13.6%) in a Hartaven Ordovician oil discovery (Founders, et al Hartaven 12-1T-10-9 W2M) which was drilled and cased to a total depth of 2438 metres. The well was drill stem tested and recovered 592 m of 46 degree API oil on a closed chamber test over the upper pay zone. Core and log data indicate 15 metres of prospective pay. A lower zone, which began to flow oil during drilling, although not tested, appears to have up to 13 metres of prospective pay. The well is offset by the Founders Berkley Hartaven DD 7B-2-10-9 W2M well, which is currently producing 330 BOPD from the Ordovician. At Nipisi, Alberta, BRANDON (36.7%) drilled and cased a Gilwood oil well with 2.5 metres of pay indicated on logs. This well should be completed within one to two weeks. BRANDON will be participating in its second well at Morinville (25%) which is due to spud in 7 to 10 days. This is a direct offset to the discovery well drilled this fall at 2-17-55-25 W4M (BRANDON 33.3%) and which is currently producing 100 BOPD of 320 oil. In addition to the above, BRANDON will be involved in the drilling of three more wells prior to year end at Long Coulee, Utikuma and Leon, all in Alberta. BRANDON ENEJGY LTD. is an oil and gas exploration and development company that is listed on the Alberta Stock Exchange under the symbols BDN.A and BDN.WT.

To: Kerm Yerman who wrote (7817)	12/9/1997 11:46:00 PM
From: Arnie	Read Replies (2) \| Respond to of 15196

FINANCING / Venator Petroleum agrees to Private Placement CALGARY, Dec. 9 /CNW/ - Venator Petroleum Company Ltd. has agreed, subject to regulatory approval, to a private placement of 400,000 shares at $2.40 per share to NCE Resource (97) Limited Partnership. The Company also reports that the Wapiti 13-21 gas well has commenced production flowing approximately 3.4 Mmcf/d plus associated liquids. Venator has a 15% gross overriding royalty convertible to a 50% Working Interest in the well.