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

To: Kerm Yerman who wrote (7852)	12/11/1997 12:10:00 AM
From: Arnie	Respond to of 15196

FINANCING / Magin Energy closes Financing CALGARY, Dec. 10 /CNW/ - Magin Energy Inc. announced that it closed an offering of 2,889,125 special warrants at a price of $3.25 per special warrant for total proceeds of approximately $9.4 million. Each special warrant will be exercisable for one flow-through common share of Magin. The proceeds will be used to fund Canadian exploratory expense. The flow-through financing was led by First Marathon Securities Limited, with participation by Griffiths McBurney & Partners, Peters & Co. Limited, Loewen, Ondaatje, McCutcheon Limited and Sprott Securities Limited. The 1997 drilling program is nearing completion with 100 (79 net) wells drilled to date at an overall success rate of 72 percent. To date, 46 wells have been completed for oil, 26 for gas and 3 for service. A total of 41 gross (36 net) wells have been drilled in the 4th Quarter. Magin's production has steadily increased from the start of November to its current level of 8,200 boepd (5,200 barrels per day of oil and 30 million cubic feet per day of natural gas). The production increases are a result of excellent drilling success in all areas and oil optimization projects in the Provost area. The optimization work in Provost at Soapy Lake, Sounding Lake, Sounding Lake NW and Monitor has added 500 barrels of oil per day. Production in the Provost area has increased to 4,400 boepd (3,600 barrels per day of oil and 8 million cubic feet of natural gas). Wells have been drilled and completed in the Windfall, Saddle Hills, Gleichen, Monitor and Willesden Green areas, with an additional 1,000 barrels of oil equivalent per day (mainly natural gas and liquids) scheduled for tie-in over the next two months. Rigs are currently active in the Windfall and Monitor areas. A capital budget of $40 million was approved by Magin's Board of Directors for 1998. Approximately $20 million is targeted for Foothills prospects at a depth of up to 2200 meters, with $10 million earmarked for exploratory drilling. A drilling program of approximately 130 wells (110 net) is planned for 1998.

To: Kerm Yerman who wrote (7852)	12/11/1997 12:15:00 AM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Occidental Petroleum awarded New Oil Field in Qatar LOS ANGELES, Dec. 10 /CNW/ -- Occidental Petroleum Corporation today announced the signing of a production-sharing agreement with state-owned Qatar General Petroleum Corporation to develop the Idd El Shargi South Dome (ISSD) oil field offshore Qatar. The field is 15 miles from the Idd El Shargi North Dome (ISND) oil field that has been operated by Occidental since late 1994. The ISSD field has approximately 1.1 billion barrels of oil in place and is estimated to have ultimate gross recoverable reserves of 200 to 300 million barrels. Gross production is expected to reach 50,000 barrels per day. Occidental's net interest is approximately 44 percent. Dr. Ray R. Irani, chairman and chief executive officer of Occidental Petroleum Corporation, said, ''We are pleased to be adding this attractive asset to our portfolio. This is a significant step in our strategy to grow our asset base in core areas like the Middle East. We expect to invest up to $450 million in capital over the life of this project, with about $400 million to be spent in the first five years.'' Occidental will operate ISSD as a satellite of the ISND field, which will keep overall per-unit operating costs lower. Since Occidental became operator of ISND, production has increased from approximately 20,000 barrels per day in 1994 to more than 100,000 barrels per day currently and is expected to reach in excess of 160,000 barrels per day in 1999. The same state-of-the-art technology in horizontal completion methods used in the successful development of all of the ISND reservoirs will be applied to ISSD. The ISSD development program calls for drilling 36 wells on three platforms, including 21 producers, 13 injectors and two water-disposal wells. The company also will build two pipelines, one for oil and one for gas. These lines will connect ISSD to the processing facilities on the main ISND production platform.

To: Kerm Yerman who wrote (7852)	12/11/1997 12:18:00 AM
From: Arnie	Respond to of 15196

PROPERTY ACQUISITION / Devlan Exploration acquires land in Wyoming CALGARY, Dec. 10 /CNW/ - Previously, Devlan Exploration Company Ltd. had put the Devlan Federal 44-18-T37N-R73W-6PM well under tight hole status to aid in future land acquisitions. The Company has successfully acquired the additional lands it had sought, bringing its total Wyoming acreage to 9,925 acres. This initiative is being followed up by further seismic work. Work has already begun on the preliminary 2D lines that will eventually lead into a 3D program. This additional data will aid in delineating the reservoir and determining future drilling locations. Through new technology and drilling practices, the first well, Federal 44-18 was drilled in twenty-seven days and 10% under budget. Since this project is in its early stages, every effort is being made to evaluate and consider all the alternatives in order to make informed decisions on future development and cost reduction. The decision to case the well was made after encountering hydrocarbon shows in the Sussex, Frontier, Mowry and Dakota formations. The Dakota, the lower most and primary zone of interest, encountered 20 feet of pay at a depth of 13,841 feet and has been perforated. The Company is currently conducting extended production tests and stimulation to establish a more accurate evaluation of the well's deliverability and reserves. After these results are established, the Company will move progressively up hole to each prospective zone. The Company intends to announce results on an ongoing basis. The Company's U.S. activities have been debt financed through financial arrangements with a banking institution and a private capital company, whereby 50% of the Federal 44-18 well is held as security for the financing. Under the terms of the arrangement, Devlan retains an option to buy back the 50% working interest once production is established. Devlan intends on recapitalizing this project, and exercising that option. As economically as possible, it has always been the Company's priority to maintain control with the highest working interest.

To: Kerm Yerman who wrote (7852)	12/11/1997 12:21:00 AM
From: Arnie	Respond to of 15196

FINANCING / Circle Energy announces Public Offering CALGARY, Dec. 10 /CNW/ -- Circle Energy Inc. announced that it is proceeding with a public offering to fund their Alberta and New Mexico drilling program including the Brazeau River Shunda test well spudded earlier this week. As detailed in the Preliminary Prospectus filed November 13, 1997 with both the Alberta and British Columbia Securities Commissions, Circle will issue up to 6,000 units (3,000,000 common shares) on the following basis: (a) A minimum of 1,000 Equity Units and up to a maximum of 6,000 Equity Units will be offered. Each Equity Unit consists of 500 Common Shares together with 500 B Warrants. Each B Warrant entitles the holder to purchase an additional Common Share at any time until 12 months from the first closing date. (b) A maximum of 3,000 Flow-Through Units will be offered. Each Flow-Through Unit consists of 500 Common Shares to be issued on a flow-through basis. There is no minimum offering of Flow-Through Units, however, no subscriptions for Flow-Through Units will be accepted by the Corporation unless a minimum of 1,000 Equity Units are subscribed for under this offering. Originally the subscription price for both the Equity and Flow-Through Units as stated in the Preliminary Prospectus dated November 13, 1997 was $375 per Unit. This price was recently reduced to $325 per Unit in response to current market conditions. In addition the B Warrants had an exercise price of $1.00 this price was reduced to $0.85. If fully subscribed this offering will raise gross proceeds of $1,950,000. It is expected that an initial closing will occur on or before December 31, 1997 with the final closing not later that January 30, 1998. No subscriptions for Flow-Through Units will be accepted after December 31, 1997. Circle Energy Inc. is a petroleum and natural gas exploration company that fields oil and gas leases in the Brazeau, Waskatenau and Morinville areas of Central Alberta and in Guadalupe, Lea and Quay Counties in New Mexico, USA. The Company's shares trade on The Alberta Stock, Exchange under the symbol CEN.

To: Kerm Yerman who wrote (7852)	12/11/1997 12:25:00 AM
From: Arnie	Read Replies (16) \| Respond to of 15196

CORP. / Chauvco Resources CALGARY, Dec. 10 /CNW/ - Chauvco Resources Ltd. (''Chauvco'') announced today that pursuant to its previously announced rights offering for the issuance of Class A limited partnership units (''Class A Units'') of Fort Chicago Energy Partners L.P. (''Fort Chicago''), the rights will commence trading on The Toronto Stock Exchange, the Montreal Exchange and Alberta Stock Exchange on December 11, 1997 under the trading symbol of CHA.RT. Rights will be issued to shareholders of record on December 15, 1997 and such rights will expire on January 6, 1998. The Rights will only be distributed to persons who are residents of Canada for Canadian income tax purposes. The Rights otherwise issuable to Chauvco shareholders and optionholders who are not residents of Canada will be sold on their behalf and the net after-tax proceeds will be distributed to such non-residents. Such holders will be given the opportunity to give written instructions to Montreal Trust until 4:30 p.m., local time, on December 22, 1997 to sell Rights to qualified persons and receive the after-tax proceeds. The offer and sale of the units have not been and will not be registered under the United States Securities Act of 1933 or applicable state securities laws and the rights may not be exercised in the United States by or for the account or benefit of a U.S. person as defined in Regulation S under the Securities Act of 1993.