• STOCKTALK
• POLITICS
• PASTIMES

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

---

To: Crocodile who wrote (8213) 12/31/1997 11:08:00 AM From: Kerm Yerman   Respond to of 15196   MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING TUESDAY, DECEMBER 30, 1997 (3) OIL & GAS The U.S. market for foreign crudes saw some action on Tuesday, but was mostly talk, and traders said activity was only likely to heat up after the New Year holiday. A U.S. major sold a cargo of Zafiro, a crude from Equatorial Guinea, to a Gulf Coast refiner on Tuesday and traders said the cargo, set to arrive February 11-16, was priced slightly cheaper than the offering price of dated Brent minus 90 cents. Other West African crudes were being talked, but offers have been weakening dramatically because of a lack of demand, particularly out of Asia, traders said. A U.S. player was offering Angolan Cabinda loading in the second-half of January at a discount of $1.20 to dated Brent, traders said. "Obviously, it's much weaker than that," one trader said. "The Far East in the past has basically held that market up," said one trader. "A week and half ago, Cabinda was trading 75-80 cents under (dated Brent)," the trader added. Traders said Nigerian Bonny Light, and Djeno from the Congo were also being offered into the Gulf, though no deals were reported. Talk on Colombian sweet Cusiana resurfaced, with a late January loading cargo being reoffered at an expensive WTI minus 47 cents, about 11 cents stronger than the cargo was originally bought at. And while details were still scarce about the February loading program for Cusiana, traders said it was out, but being kept quiet. An equity producer was said to be offering a Cusiana cargo loading February 1-5 at March WTI minus 50 cents, about 8 cents stronger than the last January-looding cargoes were sold at. Ecopetrol is said to have three cargoes loading in the first decade of February, but traders do not expect any talk on those cargoes before the new year. Traders were still waiting for details on Ecopetrol's tender of a cargo of South Blend loading January 26-28 which should have been awarded last week they said. NYMEX Crude-oil futures finished little changed and petroleum-products futures settled mixed Tuesday after an uneventful trading session on the New York Mercantile Exchange. February crude oil shed two cents to settle at $17.60 a barrel, while February unleaded gasoline fell 0.30 cent to 53.96 cents a gallon. Gasoline futures fell under pressure from selling by refineries, said Gerry Samuels, an analyst and trader with Arb Oil. In other trading, heating oil bucked a broader decline in oil prices on some bargain-hunting buying after prices set new life-of-contract lows. "People are realizing that heating oil at these low levels represents fair value, especially in the middle of winter," said Steve Bellino, trader with Chicago Corp in New York. "The fundamentals in crude remain bearish and gasoline is becoming the laggard after being the strong one." January heating oil ended 0.37 cent a gallon higher at 49.46 after falling as low as 49.00 cents, a new contract low for the third consecutive session. That price was the lowest for prompt delivery heating oil since January 1996. A mild winter thus far in the U.S. Northeast, the largest heating oil market in the world, has pressured heat prices. January gasoline closed 0.43 cent lower at 53.49 cents a gallon and February crude 2 cents a barrel lower at $17. Natural gas futures mostly ended lower Tuesday in a lackluster pre-holiday session, with some opting to ignore the cold this week in the Midwest and Northeast and focus instead on next week's milder forecasts. February slipped 4.5 cents to close at $2.235 per million British thermal units. March settled 3.7 cents lower at $2.203. Most other months ended down by 0.1 to 3.5 cents. "It looked grim early - the weather forecast was part of the reason - but it held, and I think Feb will test the mid-$2.30s before the mid-teens," said one Texas-based trader. Most agreed Monday's six- to 10-day National Weather Service forecast for milder weather over the eastern half of the nation helped trigger some early pressure. Much colder weather is forecast to arrive in the East by Wednesday, dragging temperatures down to as much as 15 degrees below normal. A brief cold spell is also forecast for the upper Midwest, but both regions are expected to moderate later in the week. Mostly above normal temperatures are expected in Texas, while the Southeast will warm to more seasonal levels later this week. A Reuters poll showed most expected a weekly AGA gas stock draw of 105-115 bcf when the report is released Wednesday. For the same week last year, stocks fell 128 bcf. The report will be issued earlier than usual between 1100 and 1130 EST Wednesday. In the cash Tuesday, January Gulf Coast quotes slipped several cents to the low-to-mid $2.20s, more than 25 cents below December indices. January Midcon pipes were pegged a couple of cents lower in the low-to-mid teens, more than 15 cents below Dec 1 levels. January gas at the Chicago city gate sold in the low-$2.30s, little changed, while New York firmed almost a dime to the mid-$2.80s on the cold. Technically, February resistance was still seen first in the $2.46 area, then at $2.515 and the $2.68 double top from early December. Support was pegged at last week's prominent low of $2.14, with psychological support likely at $2. NYMEX will close early on Wednesday and Friday at 1300 EST/1800 GMT for the New Year's Day holiday. REFERENCES Charts: oilworld.com NYMEX Reference quotewatch.com FEATURE STORY As I sit here this morning, I'm wondering who that guy was that said Calgarian's have been enjoying a New York winter. Comment was made about three days ago. Bah - humbug, the jinx was activated. We mountain folk in upstate New York have seen 2 feet of the white stuff accumilate over the past two days. Temperatures are in the mid twenties (F) and with wind chill factored, readings are zero (F) degrees. Quite a few people in this area have told me they are heading to Florida over the next few days. I, in turn, have recommended that they seriously consider Calgary, for good ole New York weather. My thinking is - maybe in my own weird manner, I can somehow reverse the jinx. Speaking of weather, let me share some information with you all. This can be considered as a follow-up to my blah-blah-blah comments of yesterday. Right now El Nino is creating a perception that both the price of gas and oil will fall. One can safely assume that the EL NINO EFFECT has been built into share prices of oil and gas producers. Is the fact that we are experiencing a warm winter important. Of course it is. However, when I look at the supply and demand situation, what I see is new production failing to offset depletion and meet growing demand. This is expecially true for natural gas in North America and crude oil on a worldwide basis. Which brings me to the point I wish to express - our demand levels are quite different than they were a few decades ago when weather was the dominant demand factor. Weather has less impact on energy companies today. First off, on the oil side, if we look back to the late 70's, heating oil was a big part of the total demand for oil. But since then, we have done remarkable things on conservation and substitution. We've turned to natural gas, for example. We've put in a lot of insulation. And so the importance of the heating component of oil is greatly diminished. The other increased demand that has occurred is on the transportation end. The diesel fuel part has really grown to dominate the market and it's a year long demand. Throw in the airlines and the growth they are experiencing, just from greater traveling, we're getting an oil demand that's much less sensitive to the temperature. Gasoline demand is growing as auto companies devote more time producing gas guzzlers in the form of vans and four-wheel drive vehicles. On the natural gas side, we've had very mild winters this decade. 1991/92 was the warmest winter we have had in the past 100 years. 1994/95 was the second most warmest winter. This winter will rank right along side with these record winters. We are becoming used to the idea that all winters are warm. Overall demand for gas is growing with the economy and becoming less dependent on the weather. The demand for natural gas is growing more rapidly because we're clearly reaching the limits of nuclear and hydro power plants. On the supply side, we're depleting our surplus inventory of wells. A coming major factor will be the serious declines in new productive wells. Companies will be drilling more gas wells to maintain their production levels. So, weather is a factor, but I don't believe the sensitivity is near the levels as in the past. Weather will continue to be a short term influence on shares of oil and gas producers, as well as companies in the service sector. However, the longer term fundamentals are also in place and as they are, the longer term outlook for these companies will outgrow the short term perceptions. FEATURE STORY CS Resources Unveils Plans For Christina Lake Plant Irene Thomas Kerm's Note: CS Resources was acquired by PANCANADIAN PETROLEUM earlier this year. Calgary-based CS Resources is planning to construct a 7,000 to 10,000 barrels per day in-situ oilsands plant by 2000 on its Christina Lake property about 150 kilometres south of McMurray. The first phase of the project is estimated to cost $70 million; the total cost to bring production up to 70,000 barrels per day by 2003 is about $370 million. The wholly-owned subsidiary of PanCanadian Petroleum Ltd. is currently preparing an Environmental Impact Assessment for the steam assisted gravity drainage (SAGD) project. "The project will be built in three phases," said the project's disclosure document. "The first phase is expected to commence facility construction and drilling in 1998 and reach a production level of 7,000 to 10,000 barrels per day by 2000. The timing of further phases will depend upon market conditions." About 80 skilled long-term jobs on site, primarily for plant operators and maintenance personnel, are expected to be created by the Conklin-area plant. Following regulatory approval anticipated in 1998, CS Resources said 200 to 300 well pairs are planned over the project life of about 20 years, depending on future oil prices and technological developments. The specific location for the facility has yet to be determined, the disclosure said. Pending approvals, road construction is expected to begin in 1998 with facilities construction in September. Depending on economic and reserve forecasts, the documents said additional facilities will be considered for the second and third phases. The first phase will involve drilling three to five initial horizontal well pairs which are expected to produce up to 10,000 barrels of oil per day. The well sites will be constructed on 100 by 100-metre pads. A 10-kilometre road will also be constructed to the project area. CS Resources said it expects road surveying, construction and seismic to occur once the ground has frozen sufficiently this winter. Discussions are underway with other operators for natural gas, oil and diluent pipelines, said the disclosure document. Installation of lines for water supply and water disposal could begin as early as the fall. CS said the project has several environmental advantages compared to other bitumen recovery technologies. Because bitumen is retrieved underground, no mine pit is necessary, said the disclosure. The use of horizontal wells reduces the number of wells required and results in less land disturbance, the company sad, which means development is concentrated on a small area. Another benefit, the company said, is that the SAGD process "uses less steam and therefore less water is required per barrel of bitumen recovered." What is steam assisted gravity drainage? (also known as SAGD.) Steam is injected into an upper horizontal well located deep in the oilsand. The steam loosens the molasses-like bitumen, allowing it to flow with gravity to a deeper production well that transports it to the surface. CS Resources expects to recover 65 per cent of the oil trapped in the sand. FEATURE STORY Energy Sector Stumbles Into '98 Oil Boom Loses Steam As Operating Costs Rise, Commodity Prices Drop The much-vaunted boom in Canada's oil patch is stumbling as producers get squeezed by falling commodity prices and rising operating costs during the crucial winter drilling season. Oil and gas markets were still considered to be in robust shape in October but commodity price plunges in recent weeks have taken place with breathtaking speed. With oil prices now down 30 per cent from a year ago and natural gas prices off 53 per cent, the cocky attitude that dominated industry activities during most of 1997 has been replaced by a cautious mood that will prevail in 1998, industry analysts say. On the surface, it may look like boom times are continuing with rigs booked solid across Western Canada and consumer confidence remaining strong, as evidenced by crowds jamming into shopping malls on Boxing Day in Calgary and Edmonton. However, analysts say those are lagging economic indicators, masking the immediate burden of extra operating costs and the deterioration in commodity prices. So, the stage has been set for producers to post lower profit in 1998 and also reduce spending for land purchases. "Everyone's watching their budgets carefully because there's uncertainty with both oil and gas prices," says Rick Roberge, an analyst with Price Waterhouse in Calgary. Benchmark prices for West Texas intermediate light crude have dropped 20 per cent since early October to $17.60 (U.S.) a barrel yesterday, sinking below the Alberta government's low-side estimate of $18.50 for 1998 and a far cry from some optimistic projections of $23. Decreased demand in Asia because of economic turmoil in that region, increased output from the Organization of Petroleum Exporting Countries and the planned resumption of Iraqi oil sales have contributed to the slide in oil prices. On the natural gas side in the past three months, key spot prices in Alberta have slipped 26 per cent to roughly $1.40 (Canadian) for 1,000 cubic feet because of the late arrival of winter in large parts of North America, which reduced demand for gas. By contrast, oil prices averaged $25.36 (U.S.) in January of 1997, and natural gas prices surpassed $2.97 (Canadian) during a cold spell, fuelling good times in the petroleum sector for the first nine months of the year. Months before oil and gas prices dropped in the fourth quarter of 1997, energy companies committed themselves to a hectic winter drilling schedule in an effort to increase production in 1998. Winter is a busy time for producers because rig crews are able to move drilling equipment across frozen muskeg and gain access to remote but often prolific oil and gas fields. Although mild December weather has delayed some projects, about 525 rigs across Western Canada are expected to punch holes in the ground at a frenzied pace from January until the spring thaw, typically through the end of April. Some observers predict that 16,600 wells could be drilled in 1998, surpassing the record 16,000 drilled across Western Canada in 1997 after producers reinvested record levels of cash flow accumulated before the recent slump in commodity prices. A shortage of rigs and skilled labour during the drilling bonanza has driven up so-called finding and development costs, tempering industry excitement at Calgary's petroleum head offices. Besides increased rates for drilling equipment, wages have escalated for workers ranging from geologists checking core samples to "rig pigs" adjusting valves in the field. Oil and gas producers are under pressure to maintain a brisk pace of drilling after paying top dollar in 1997 for properties amid heated competition at land auctions. Producers forked over a record $1.51- billion for exploration rights on Crown land in Western Canada in 1997, or $219 a hectare, according to the Daily Oil Bulletin, a Calgary-based industry newsletter. That smashed the previous mark of $1.42-billion, or $199 a hectare, set in 1994. While properties with heavy oil pools were popular at land auctions in the first half of 1997, heavy oil prices have sagged even more than conventional light crude in recent months. That's because a glut of heavy oil has developed because of the lack of refining capacity to convert heavy oil into synthetic light crude. "Producers who have big heavy oil programs are going to have to find other places to put their money," says Scott Inglis, an analyst at FirstEnergy Capital Corp. in Calgary. "We think the short-term fundamentals for heavy oil are weak." Investors have already taken heed of the warning signs for continued low commodity prices and high operating costs, pushing down the Toronto Stock Exchange oil and gas index about 18 per cent since early October. Producers also face higher borrowing costs because of increased interest rates and there are fears that it will be tougher to raise money through equity issues in 1998. As well, if the beleaguered Canadian dollar eventually strengthens, that would cut further into the profit of Canada's oil patch, which receives a good portion of its revenue in U.S. dollars, says John Grecu, senior investment analyst at ARC Financial Corp. in Calgary. Break-even points vary widely among producers, but there would be considerable red ink in the industry if oil prices collapsed to $14 (U.S.) a barrel and natural gas prices plunged to $1 (Canadian) for 1,000 cubic feet. If such levels held for a few weeks, that would force many producers to postpone some of their drilling projects, leaving oil and gas reserves in the ground until prices recovered. While such a doom-and-gloom scenario isn't being forecast, some analysts expect oil prices to average $18 (U.S.) in 1998 and natural gas to fetch $1.65 (Canadian). At those sluggish levels, most producers would remain profitable, but they may be forced to scale down their exploration and development programs, particularly in the second half of 1998. The roller-coaster nature of the energy business is nerve-racking, but most producers prefer to hang on for the ride, opting to buy commodity price- hedging contracts to lock in prices for only a small portion of their production. Oil and gas companies shouldn't view recent bumpy moments as the first signs of a looming bust because the sector's prospects remain bright over the next five years, says Thomas Ebbern, an analyst at Sprott Securities Ltd. in Calgary. For instance, numerous new oil sands projects in northern Alberta, worth billions of dollars, plan to start operations between 1999 and 2002. And several oil and gas pipeline expansions into the United States are scheduled for completion from late 1998 to 2002, creating new customers for Canadian energy exports. Mr. Ebbern predicts a recovery in natural gas markets in late 1998 because of the export pipeline expansions into the United States, where gas is sold at significantly higher prices. He forecasts softness in crude oil markets, but adds that it's difficult to judge where oil prices are headed because of uncertainty in the Middle East. During this decade, annual oil prices averaged as low as $17.16 (U.S.) a barrel in 1994, when the world was awash in oil, but as high as $24.49 in 1990, when Iraq invaded Kuwait. Iraq has been under UN trade sanctions since 1990, but the country is poised to export up to $2-billion worth of crude oil during the first half of 1998, dampening oil prices.

To: Crocodile who wrote (8213) 12/31/1997 11:27:00 AM From: Kerm Yerman   Respond to of 15196   MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING TUESDAY, DECEMBER 30, 1997 (4) FEATURE STORY Integrated Firms Soar In Third Quarter, Final Three Months Look Weaker Integrated firms turned in stronger upstream and downstream per- formances in the third quarter and nine months ended Sept. 30, showing the kind of numbers that have made them the stock market darlings of the past year or so. The road for exploration and production firms was less well travelled, as a number of firms -- most notably Renaissance Energy Ltd. -- hit bumps caused by lower production, softening prices and higher costs. Results in the final quarter are likely to be down for most firms com- pared to a year ago as warm winter weather and excess oil supplies have pulled down gas and oil prices in the last three months of the year. These factors have caused energy stocks to weaken substantially since their highs in early October. But the current situation, with many stocks hovering near 52-week lows, has analysts looking at good investment opportunities. "It's a lot different than last New Year's eve," said Bob Gillon, an analyst with John S. Herold Inc. in Connecticut. "(Right now) many of these stocks can't help but being a buying opportunity." He suggested the exploration and production cost escalation due to record activity over the past two years will continue to squeeze profits in the fourth quarter as well as into 1998. The dark horse for 1998 is the course crude prices will run over the next year, Gillon said. Over the next three years, his firm is looking at a $22 (U.S.) per bbl for the benchmark West Texas Intermediate, taking into account factors such as the lifting of sanctions currently suppressing Iraqi oil flows. "We're being set up for the loosening of sanctions," Gillon said, ad- ding there could be some volatility on the oil front. "I've heard rumours of the price going into the low teens." FirstEnergy Capital Corp.'s Martin Molyneaux is bullish on natural gas for the coming year. "The biggest event for 1998 is the pipeline expansions," the analyst said. The expansions of Northern Border Pipeline Company and TransCanada PipeLines Limited are going to have a significant impact on exploration and production patterns of the industry in the coming year, he said. The industry's foray into heavy oil in recent times is going to run into some serious problems in 1998, he said. "You're in spitting distance of a nine-dollar differential." However, Molyneaux said he expects there may be a dramatic announce- ment in the coming year on a new large upgrader or an expansion to accommodate capacity of up to 250,000 bbls per day. He predicted less heavy oil drilling will occur which will have an im- pact on the total well count next year. Gas exploration, on the other hand, will see a significant increase in activity. More gas wells will be drilled next year than in the past couple of years to meet the demand for new take away capacity. Also bringing drilling levels down will be a difficult equity market for a number of players, which will work to pull down capital spending. "The equity window will close for a number of companies," Molyneaux said. The big four integrateds -- Imperial Oil Limited, Petro-Canada, Shell Canada Limited and Suncor Energy Inc. -- doubled downstream earnings to $673 million over the first three quarters of 1997 from $328 million in the first nine months of 1996. Cash flow nearly doubled to $1.15 billion from $602 billion while revenue rose to $14.98 billion from $14.13 billion. The downstream side benefited from strong demand for refined products, lower feedstock prices and stable retail prices. The four firms' upstream efforts also shone. For example, Petro- Canada's segment pulled in earnings of $134 million between January and September compared to $98 million a year ago, while cash flow over the comparative period surged $646 million from $436 million. The improvements on both sides of operations put the 'fantastic four' in the top 10 of just about all the financial charts in the most recent edition of Nickle's Oil and Gas Statistics Quarterly. Looking only at E&P firms, revenues grew by $3.05 billion in the first nine months between January and September, but cash flow grew by a more modest $810 million. Nine-month industry revenues for the roughly 100 firms tracked by the Bulletin grew to $33.48 billion from $29.58 billion in 1996 and $23.43 billion in 1995. Some of the growth compared to 1995 came from new firms which did not report figures for that year. Cash flow between January and September advanced to $9.32 billion from $7.96 billion a year ago and $6.89 billion in 1995. Profits between January and September for the 98 firms tracked ad- vanced to $3.02 billion from $2.28 billion in 1996 and $1.88 billion in the comparative 1995 interval. For the three months ended Sept. 30, the 74 surveyed companies reported revenues of $11.34 billion produced cash flow of $2.91 billion and net income of $1.02 billion. For the same period a year earlier, revenues of $10.08 billion yielded cash flow of $2.46 billion and profits of $591.31 million. The comparative figures for 1995 were revenues of $8.61 billion, cash flow of $2.19 billion and earnings of $547.22 million. Examining the results for participating firms, one trend was very evi- dent. Less than a dozen endured lower revenues and cash flow in both periods, but net income was another matter. Some 33 firms reported lower quarterly profits and 34 experienced the same fate for the nine months. Taking the biggest fall was former perennial chart topper Renaissance, which saw its quarterly income drop $25 million and its nine-month sum plunge more than $43 million. A star performer for the third quarter and nine months was Gulf Resources Canada Limited. The takeover of Stampeder Exploration Ltd., growing worldwide production and a special dividend from its Indonesian arm going public all contributed to the company's strong performance in nearly every category. Other larger firms that generally fared well included Alberta Energy Company Ltd., Canadian Natural Resources Limited, Norcen Energy Resources Limited, Poco Petroleums Ltd. and Tarragon Oil and Gas Limited. While not matching the numbers of their bigger brethren, several jun- iors and intermediates could paint a picture of growing output and more vibrant financials. Members of this club included Canadian 88 Energy Corp., Canrise Resources Ltd., Merit Energy Ltd., Northrock Resources Ltd., Penn West Petroleum Ltd., Pinnacle Resources Ltd. and Torrington Resources Ltd. Total volumes sometimes hide the changes underway as Canadian explora- tion and production firms increasingly become players on the international scene. For example Petro-Canada's nine-month volumes were up about 5,200 bbls a day to 94,300 bbls a day. The company's decline in Western Canadian conventional crude production of 4,900 bbls a day was easily offset by Algerian volumes climbing 2,200 bbls a day and Norwegian output soaring 5,700 bbls a day. Strong prices for natural gas liquids helped a number of companies stay close or edge ahead of average prices posted for the first nine months of 1996. Norcen, for example, earned $20.34 a bbl for NGLs this year while collecting $18.85 a bbl for oil. Higher prices for NGLs benefited gas-oriented firms. With most of these firms cranking up their volumes, associated liquids output also climbed. With an increased percentage of total liquids coming from NGLs combined with stronger prices, the result was a more valuable commodity. Orbit Oil & Gas Ltd., for example, saw NGLs increase to 48% of total liquids from 36% in 1996 and prices rose 15% this year. Put the dynamic duo together and Orbit's average liquids price advanced six per cent this year to $23.19 per bbl. The 81 firms tracked averaged daily oil and NGLs production of 1.95 million bbls in the first nine months of 1997, ahead of the 1996 count of 1.79 million bbls and the 1995 figure of 1.67 million bbls. Due to strong oil and NGLs prices in the first six months, especially the first quarter, the January-September simple average managed to creep ahead this year to $23.08 a bbl from $23.02 in 1996 and $20.91 in 1995. Acquisitions fueled much of the growth for liquids for the E&P sector. Canadian Occidental Petroleum Ltd., Gulf and Talisman Energy Inc. all reaped the fruits of corporate manoeuvres, with the three combining to raise their output by 98,515 from a year ago. O the other hand, Imperial relied on drilling, mainly at Cold Lake, to elevate its oil and liquids volumes by 19,000 bbls a day. Smaller firms, which in some cases also relied on mergers for growth, that reported triple-digit percentage gains in liquids included Remington Energy Ltd., Founders Energy Ltd., Search Energy Corp. and Pursuit Resources Corp. Two firms who both saw output decline by 5,700 bbls a day or better were PanCanadian and Mobil Oil Canada. Other firms whose production was slashed in the three quarters included Shell (4,100 bbls a day), Rigel Energy Corporation (2,600 bbls a day) and Suncor (1,900 bbls a day). Hedging prices worked out better for most firms in 1997, with many reporting gains or only slight reductions to average prices. PanCanadian saw its program cut 69 cents a bbl from its potential price, a far cry from last year when unexpectedly higher oil prices caused hedging to eat away $2.40 a bbl. On the gas side, PanCanadian's prices rode 11 cents higher to $1.98 per mcf this year because of hedging, much better than last year's 27-cent licking which depressed the price to $1.22. Gas prices in general were much kinder to the bottom line this year as most companies wrote higher numbers in the ledger. Ocelot Energy Inc., after a major sale of properties in B.C., watched its average price soar to $1.98 per mcf from 87 cents in 1996. Renaissance was part of the small handful that saw its average price decline this year, but most rivals would have been happy to match the firm's level of $2.04 per mcf. The 82 surveyed firms reported daily production of 11.31 bcf a day, a gain of 5.6% from 10.71 bcf a day in the first nine months of 1996. The improvement ramped up to 21% when this year's level was stacked against the 1995 comparable figure of 9.31 bcf a day. The simple average price for the commodity rung in at $1.84 per mcf between January and September, a healthy 23% surge from the respective 1996 value of $1.49. The average nine-month price in 1995 was $1.37 per mcf. Many familiar names topped the charts for turning open the taps on gas. Poco kicked up its output by 159 mmcf a day, Canadian Natural pushed up its tally by 145 mmcf a day and CanOxy zipped along with a jump of 136.8 mmcf a day. On the other side of the fence, the asset sale by Ocelot melted 77 mmcf a day off its account, Mobil dipped 56.2 mmcf a day and Shell's number eroded by 41 mmcf a day. Smaller firms that could brag about their percentage increases in gas flow included Bonavista Petroleum Ltd., Calahoo Petroleum Ltd., Remington and Triumph Energy Corporation. FEATURE STORY Sable Gas Project Gets Final Regulatory Approval By Jeffrey Jones The massive Sable natural gas project off Canada's east coast was given the green light by a Canadian regulator on Tuesday, but final go ahead by the project's partners was still needed before development can get underway. The decision by the partners on the C$3 billion ($2.1 billion) offshore was expected to be made in January, which would keep the project offshore Nova Scotia on track to start pumping in late 1999, said Patty Richards, spokeswoman for Shell Canada Ltd. The Canada-Nova Scotia Offshore Petroleum Board said on Tuesday it approved the project with 13 conditions pertaining to regional industrial and employment benefits requirements and another 16 addressing the development plan. The approval followed earlier ones this year by Canada's National Energy Board and Prime Minister Jean Chretien's cabinet. The Sable project, subject of three years of heated political and industrial debate in Canada, would produce 460 million cubic feet of gas a day from six fields about 140 miles (225 km) off the east coast of Nova Scotia. Reserves are estimated at three trillion cubic feet of natural gas. The gas would be shipped through a new pipeline to the energy-hungry U.S. Northeast which would also serve markets in the Atlantic provinces of Nova Scotia and New Brunswick. Partners in the project, Canada's first offshore gas development, are Mobil Corp. (NYSE:MOB - news) unit Mobil Oil Canada, Shell Canada, Exxon Corp. affiliate Imperial Oil Ltd. and government-owned Nova Scotia Resources Ltd. ''It's excellent news for Shell Canada and the rest of the proponents in Sable Offshore Energy,'' Richards said. ''That is the final regulatory approval and now all of the proponents are reviewing the project and we'll probably make an announcement sometime in January.'' Conditions of Tuesday's regulatory approval included maximizing employment for Nova Scotians and other Canadians as well as favoring bids for service, supply and construction contracts submitted by Nova Scotian and Canadian companies. Up to 4,000 jobs were expected to be created for Sable's construction phase. The approval also required that the project partners implement an environmental monitoring system for drilling and production. KERM'S TOP 20 - SPEC 12 - SERV COMPANIES IN THE NEWS PARAMOUNT RESOURCES LTD. (TSE/POU) has completed the acquisition, for $73.0 million including closing adjustments, of certain producing natural gas properties from Reserve Royalty Corporation that previously were owned by Jordan Petroleum Ltd. The properties acquired are currently producing 42 MMcf/d and are primarily located at Thornbury, Winefred and Cold Lake, Alberta, and at Primrose, Saskatchewan. These properties also include a considerable amount of undeveloped acreage that Paramount believes has further upside potential. PENN WEST PETROLEUM LTD. (TSE/PWT) announces that the notice to make a Normal Course Issuer Bid (the "Bid") has been accepted by The Toronto Stock Exchange. Pursuant to the Bid, Penn West may purchase, from time to time, as it considers advisable, up to 200,000 of the outstanding common shares of Penn West, (0.5 percent of the 39,991,164 currently outstanding common shares of Penn West), through the facilities of The Toronto Stock Exchange for an aggregate acquisition cost not to exceed $3,000,000. The price which Penn West will pay for any shares purchased by it, will be the prevailing market price of such shares on The Toronto Stock Exchange at the time of the purchase. All common shares acquired under the Bid will be cancelled. Purchases may commence on December 29, 1997 and will terminate on the earlier of the date on which Penn West shall have acquired allof the common shares sought pursuant to the Bid, and December 28, 1998, unless earlier terminated. Penn West believes that the price of its common shares may not reflect their underlying value, from time to time, and that at such times, the purchase of common shares will increase the proportionate interest of, and be advantageous to, all remaining shareholders. PETRO-CANADA is pondering another oil sands project. Despite the plethora of heavy oil development projects currently on the horizon, Petro-Canada is contemplating yet another on its 22 300-hectare lease northwest of Fort McMurray. A decision on the prospective Fort McKay River oil sands development is expected in mid-1998 after drilling tests are concluded, a company spokesman confirmed. If the project is approved, plant production is projected to be around 20,000 bbls a day. "We're still in the process of determining the economic potential," Rocco Ciancio said. "We suspect it's something we could develop, but we haven't completed the assessment yet." Technological advancement such as steam assisted gravity drainage is one factor that could contribute to the project's commercial viability, he noted. At this stage Petro-Canada is not concerned about competition from other heavy oil developers or fluctuating price differentials, which have been predicted to widen next year due to limited pipeline and processing capacity. Petro-Canada is in the middle of its 100-well Fort McKay winter drill- ing program. RICHLAND PETROLEUM CORP. announced the appointment of Mr. Donald W. Dewar as Vice President Exploration of the corporation. Mr. Dewar has 26 years of exploration experience and has held numerous senior exploration positions, most recently as Exploration Manager at Samedan Oil of Canada Inc. Mr. Mark Lake, previously Vice President Exploration of Richland, has established a consulting practice and will remain with Richland on a consulting basis. The company also announced that it has entered into agreements for the issue of up to 695,000 common shares pursuant to flow-through share agreements, for gross proceeds of $3,437,000. Proceeds of the issue will be utilized for the company's exploration program. The shares will be issued as qualifying expenditures are incurred in 1997 and 1998.

To: Crocodile who wrote (8213) 12/31/1997 11:56:00 AM From: Kerm Yerman   Respond to of 15196   MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING TUESDAY, DECEMBER 30, 1997 (5) KERM'S WATCHLIST COMPANIES IN THE NEWS A development plan for the North Sea's Waveney gas field submitted by PANCANADIAN PETROLEUM LTD. and its partner, ARCO British Limited, has been approved by the United Kingdom Department of Trade and Industry. ''This is a significant milestone in building our international production portfolio,'' said Paul Ellis, PanCanadian's Group Vice President, International. ''The Waveney field will come onstream in less than a year, giving PanCanadian its first production outside North America.'' Discovered in March 1996, Waveney holds estimated recoverable reserves of 84 billion cubic feet of natural gas and is scheduled to start producing in October 1998. The field will be developed with a minimal facilities platform connected to Mobil's Lancelot pipeline system 8.2 kilometres to the east. Waveney's gas will be shipped for processing to Phillips Petroleum's Bacton terminal on the English coast. ARCO British Limited is the field operator and owns 85.71 per cent of Waveney. PanCanadian holds the remaining 14.29 per cent of the field. The Waveney gas field lies in the North Sea P780 licence covering blocks 48/16c and 48/17c in the Southern Gas Basin offshore. The water depth is 27 metres and the field is located about 250 kilometres northeast of London. Recently, PanCanadian and its partner increased their interests in the Waveney field by acquiring Oryx UK Energy's 12.5 per cent interest in the P780 licence. PanCanadian entered the North Sea in 1996 through a farm-in to a portfolio of exploration interests held by Oryx UK Energy. Several discoveries have been made on this acreage and the Waveney discovery is the first to be declared commercial and to be developed. PanCanadian also farmed-in to the Marathon-operated block 22/22c in the Central North Sea in November 1996 and participated in an oil discovery earlier this year. PanCanadian holds a 20 per cent interest in that find and the joint venture expects to drill an appraisal well in 1998. CANADIAN OCCIDENTAL PETROLEUM (CXY/TSE) plans to issue up to US$500 million of debt to refinance borrowings it already has on its books, a CanOxy spokesman said on Wednesday. "We've got a fair bit of debt coming due in the next couple of years, so we're just getting it done while rates are at attractive levels," CanOxy's Kevin Finn said. The Calgary-based oil and gas producer said on Wednesday it filed a preliminary shelf prospectus for a U.S. offering of US$500 million in unsecured debt securities. BERKLEY PETROLEUM (50%)and WESTMINSTER RESOURCES LTD. (50%) have entered into an agreement to acquire interests in the July Lake area of Northeastern British Columbia. The July Lake Property is located in Block L/94-P-09, Blocks G, I and J/94-P-10, Blocks A, B, and H/94-P-15 and Blocks D, E, F, G and K/94-P-16 approximately 85 miles northeast of Fort Nelson B.C. The companies will acquire working interests ranging from 37.075 percent to 82.35 percent in 73,000 gross acres of land (average working interest 44 percent, 22 percent net to Westminster). Current production is approximately 16 mmcf/d of net sales gas from 15 wells producing from the Jean-Marie formation. An additional 4 wells are currently shut-in and are scheduled to be tied-in and on production early in 1998. Westminster and Berkley expect net sales gas production of approximately 20 mmcf/d once the tie-ins are complete. Westminster has identified 4 horizontal drilling locations on 82.35 percent interest lands (41.175 percent net to Westminster) which are scheduled to become part of the 1998/1999 Helmut / July Lake winter drilling program to be conducted by Westminster and Berkley. The July Lake acquisition complements Westminster and Berkley's land and production holdings in the Helmut / Peggo areas 10 miles to the south. In northeast British Columbia, the companies now own interests in 305 sections of land (154 net) and have begun a 14 well drilling program for Jean-Marie and Slave Point gas. Westminster, as operator, plans to drill and tie-in 6-8 of the locations this winter. The wells will be tied-in to a central processing facility to be constructed by the partners. It is expected that the wells drilled this winter will be tied-in and producing late in the first quarter of 1998. The gross purchase price of $30.771 million will be shared equally by Westminster and Berkley. Closing is expected by mid January, 1998. WINDSOR ENERGY CORP. (TSE:WNS) announced today that Windsor's subsidiary, SMK Energy Corporation, has successfully completed its first gas well in Louisiana. The A. Wilberts and Sons #1 well in Iberia Parish, Louisiana was gauged making 1,000,000 cubic feet of gas per day. It was also producing 24 barrels of oil per day. Windsor Energy owns 30 percent of this well. This is the first well to be drilled as part of the new South Louisiana program. CYPRESS ENERGY INC. announced that it has completed the acquisition of assets located in the Thorsby area of central Alberta. Cypress purchased a subsidiary of Jordan Petroleum Limited which owned these assets for $73.9 million. The acquisition occurred following Reserve Royalty Corporation's recent purchase of all of the shares of Jordan Petroleum Limited. The Thorsby purchase enhances Cypress' presence in the area as the assets overlap Cypress' existing Thorsby property. Cypress has acquired over 3,000 BOE of production, 70 percent of which is natural gas, at a working interest of 95 percent. The purchase includes all related infrastructure and processing facilities, over 60,000 net acres of contiguous undeveloped land, and a substantial 3D and 2D seismic base. An aggressive capital expenditure program is planned for 1998 including recompletions and workovers of existing wells in addition to exploiting the drilling potential on this multi-zone property. AMERICAN ECO CORPORATION announced that the Edmonton, Alberta, operation of its Vancouver subsidiary, Industra Service Corporation has been awarded a new Cdn$5.5 million construction and fabrication contract by Suncor. The construction to be completed in northern Canada's arctic conditions, includes pipe fabrication and thermal insulation for Suncor's Oil Sands operations in Fort McMurray, Alberta. Completion is expected by July 1998. Michael E. McGinnis, Chairman, President & CEO of American Eco, stated, "The Industra team is showing outstanding growth by capitalizing on American Eco's experience in Refinery and Oil Field services by expanding into the booming Oil Sands market in Northern Canada". OTHER COMPANIES IN THE NEWS ULTRA PETROLEUM CORP., a Canadian junior energy company is embroiled in a heated - and aromatic - battle with a Texas retirement town over its handling of an oil well with a high content of hydrogen sulphide. The Texas Railroad Commission, which regulates the state's oil and gas industry, is expected to decide early next month whether to fine Vancouver-based Ultra Petroleum Corp. for failing to comply with state regulations in its handling of the flammable, poisonous gas that smells like rotten eggs. The commission held safety hearings after the small community of Tool - about 100 kilometres southeast of Dallas - filed a protest. "We'd like for them to plug their well," community spokesman Greg Ryan said yesterday. "We contend that they are incapable of effectively managing and operating this well," Ryan said. "The proof is that they have a total disregard of the rules and regulations of the state of Texas and of the local authorities." Danny Gibbs, the commission's deputy director of public information, said Ultra was required to take precautionary steps to guard against the release of hydrogen sulphide. "They had a plan in place," Gibbs said. "It was just not adequate." The well is not producing at this point because it's not hooked to a pipeline, which the community is also against. The VSE-listed company, which explores for oil and gas in the U.S., has declined to comment on the community's protest. A conference call has been scheduled for Jan. 8 to update investors on general company issues, but shareholders are being asked to forward their questions in writing by mail, e-mail or fax. "This will ensure the most frequently asked questions are answered fully. Unfortunately, there will not be time to take questions 'from the floor' during the call," the company said. Ryan's group is urging shareholders to ask questions about the Texas situation during the conference call. "The report that Ultra keeps putting out is that [the Tool well] is going to be in production and that everything is going fine. We feel that the stockholders should be informed about what is really going on," he said. Ultra said the Texas property is small compared to its core area in Wyoming's Green River basin. In a recent statement, it said it had seven wells at various stages of drilling in what "we believe is the most important new gas field in the United States." The company, which currently has no firm daily production, said it wants to sell non-core properties to focus on Wyoming. Ultra took over the Tool well in 1995. It had been shut in and abandoned because of concern over its hydrogen sulphide content, Ryan said. On Tuesday, Ultra shares (UP/VSE) closed up 5› at $6.05. OHIO RESOURCES CORP. (VSE-OHO) reported the completion of the 14 square mile 3-D seismic program at Turin, Alberta. By virtue of shooting the program, Ohio has earned a 50 percent interest in 4.5 contiguous sections of land. The results of the program are extremely encouraging and the date quality is excellent. Ohio and its partner will commence drilling the first of several wells on this property during the first week of January. At Midwinter, in northeast British Columbia, Ohio and its partner, Pan East Petroleum Ltd., are currently mobilizing to drill four horizontal wells. The first well is expected to spud before the new year. Ohio will hold an APO 25 percent interest in these locations, BPO Ohio will have a 7.5 percent gross overriding royalty. At Pembina, Ohio has earned a 20 percent BPO working interest in one section of land by drilling a well during December. Testing is continuing and final results will be released when available. During December, proceeds of $207,500 were received on exercise of outstanding share purchase warrants. Ohio is reported improved results for the first quarter ended October 31, 1997. Petroleum and natural gas revenues before royalties increased 2.3 percent from $551,185 in 1996 to $563,944 in 1997. Cash flow from operations increased 17 percent from $147,450 or $0.01 per share in 1996 to $172,586 or $0.02 per share in 1997. Net income for the quarter increased from 12,108 or $0.00 per share in 1996 to $70,586 or $0.01 per share in 1997. PETRO WELL ENERGY SERVICES INC. has made a friendly bid to merge with privately owned Crown Well Servicing Ltd. for an undisclosed amount. Under the terms of the deal, Calgary-based Petro Well is offering to exchange 9.5 million treasury shares for all outstanding shares of Crown, an Edmonton-based oil and gas servicing company with a fleet of 11 rigs. Petro Well shares (PWS/TSE) closed up 10› Wednesday at $1.15. The transaction would be finalized Jan. 30. One of the conditions is the successful completion of a secondary offering by Crown shareholders of 7.5 million Petro Well shares. The combined companies would boast a fleet of 23 service rigs, making it "a significant operator" in Western Canada, Petro Well said. Included in the deal is a shop and yard in Edmonton. More acquisitions are on the horizon, said Petro Well president Victor Stobbe. PASON SYSTEMS INC. began trading on the TSE on Wednesday, December 24, 1997 under the trading symbol PSI. Pason's focus is the establishment of intelligent ''data hub''instrumentation at a drilling wellsite that includes both proprietary hardware and software elements. The Pason Penless and Pit Bull instrumentation is now being rented by 225 drilling rigs in Canada and the United States. This rapid adoption of Pason's instrumentation has contributed to a 5 year compounded earnings growth rate of 160% per annum. Further information concerning Pason can be obtained at its Web site (www.pason.com) Shares issued 15,899,721 MOXIE PETROLEUM LTD. announced the successful closing of its initial public offering. A total of 6,439 Units were sold at $1,000 per Unit for gross proceeds of $6,439,000. Each unit consisted of 350 common shares and 930 pre-paid flow-through warrants. Agents for the offering were Jennings Capital Inc. and Whalen Beliveau & Associes Inc.. Moxie has been formed to participate in oil and natural gas exploration, development and production in central and southern Alberta. The Company commenced a three well drilling program with the spudding of its first well on December 29. The common shares will begin trading on the Alberta Stock Exchange under the symbol "MOX" on December 31, 1997. There are a total of 3,753,650 common shares outstanding. REAL RESOURCES INC. (ASE/RER) has acquired approximately 91% of the publicly held common shares of Tri-Ex Oil & Gas Ltd. (TSE symbol: TXG) under its 0.87 Real common share per Tri-Ex common share offer of December 6, 1997. Lowell E. Jackson, President & CEO of Real, said "It was a remarkable year of successful growth and change for Real. On completion of the Tri-Ex acquisition, Real will have a production rate of approximately 1600 boe/day. Real, with an excellent land position and strong inventory of drilling prospects, is poised for a very good year in 1998". Real has received conditional approval from the Toronto Stock Exchange for the listing of its common shares on the Toronto Stock Exchange. It is expected that the listing of the Real shares will occur in January, 1998 and shortly thereafter the shares of Real will be delisted on the Alberta Stock Exchange. OILTEC RESOURCES LTD. (TSE:OLT) reported that its third Red River well at Brough, Saskatchewan has been abandoned after encountering uneconomic pay. A fourth location at Weir Hill, Saskatchewan is licensed and is scheduled to spud January 2, 1998. Oiltec's first Red River well continues to flow light oil at controlled rates. The late arrival of a service rig, due to unscheduled repairs, has delayed completion of Oiltec's second Red River well. The completion rig moved onto the location on December 29th and the well should be capable of production during the week of January 5, 1998. Additional performance data will be reported for both successful Red River wells later in January. TEXALTA PETTROLEUM LTD. announced the completion production testing at its recently completed development well at West Queensdale Saskatchewan. The 7-26-6-2 W2M well produced an average daily fluid of 153bbl per day (24.3 cubic meters) with an oil cut of 70 percent which gives an average I.P. of 107bbl per day (17 cubic meters/day). This well which Texalta has a 61 percent working interest is currently being connected to the company's nearby plant. Further drilling in this area is planned for the first quarter of 1998. COLT ENERGY INC. announced that after a review of logs and drilling records indicating the presence of multiple overpressured Lance and Ericson sands, production casing has been installed at the North Lizardhead no. 11-8 well located in Sublette County, Wyoming. Casing was installed to a total depth of 13,131 feet. Completion activities will commence in the new year. The North Lizarhead no. 11-8 well is the first of possible 4 earn-in wells to be drilled by Colt in the Green River Basin, Wyoming under its farm in agreement with Ultra Petroleum Inc. (VSE:UP). The next well to be drilled by Colt in the Green River Basin is the Horse Creek 14-33 well on the Antelope Ranch prospect. Subject to receipt of the necessary approvals and permit, the Horse Creek well should be spudded in early 1998. SUNBURST OIL & GAS INC. (SBS-ASE) announced their engineers' report on the exploratory findings of the horizontal drill on test-well 'Western Pembina 16C-20' which is owned and operated by their wholly-owned subsidiary Western Canada Energy (1996) Ltd. 'Western Pembina 16C-20' is a development horizontal re-entry well. Western Pembina 16C-20 possesses all the attributes of a successful horizontal Cardium Oilwell. Production liner was run over the build section on December 14, 1997. SUNFIRE ENERGY CORP. reported improved financial results along with not-so-good operational results. Higher oil and natural gas prices helped to overcome reduced production volumes to give Sunfire Energy Corporation improved financial results for its fiscal year ended July 31, 1997. Net earnings improved to $205,545 (5 cents per share) from $66,107 (2 cents per share), and cash flow from operations rose to $740,034 (18 cents per share) compared with $551,609 (13 cents per share) in the previous year. Gross revenues, net of royalties, increased by 15% to $1,228,107 from $1,072,051 in 1996. Natural gas production declined to 1,038 Mcf per day from 1,330 Mcf per day in 1996, while daily oil and liquids production decreased to 34 Bbls from 43 Bbls. The Company's average gas price rose to $2.10 per Mcf from $1.37 per Mcf, and average oil prices were also higher at $27.95 per Bbl from $23.56 per Bbl. During the fiscal year, the Company operated the drilling of five exploratory wells with an average 44% working interest. This drilling activity resulted in four gross (1.87 net) gas wells. INTERNATIONAL SCENE TRANS-DOMINION ENERGY CORP.announced that Tullow Pakistan (Developments) Limited, the operator of the exploration well Meting No. 1, located in East Badin extension Block A onshore Pakistan, has plugged and abandoned the well. Meting-1 was drilled to a depth of 4,290 m, and has tested gas at non-commercial rates from two intervals in Sembar and basal Lower Goru Formations respectively. Michael Doherty, President and CEO of Trans-Dominion Energy Corporation commented:" We need time to evaluate the results of the Meting-1 well, and will incorporate this evaluation into our ongoing exploration program for the block". CLAYOQUOT RESOURCES LTD. (ASE:CQR.A) announces that effective December 22, 1997, the company's name has been changed to BAKRIE MINARAK ENERGY INC. (''BME''). In the view of management, the new name reflects the company's increased emphasis on international exploration and development which resulted from the previously announced private placement of 24 million shares to Minarak Labuan Co. Ltd. KAPPA ENERGY COMPANY INC. announced that its common shares have been listed and posted for trading on The Toronto Stock Exchange at Tuesday's opening. Kappa Energy Company Inc. is a Calgary based international oil and gas company with current exploration operations in Colombia, Egypt and the Republic of Yemen. PEBERCAN signed a farm-in partnership agreement, in Cuba, on its first cuban well CANTEL PROFUNDO 1, of which it held 100 percent of the rights for exploration and production. Following this agreement, PMV Energy, PEBERCAN's first partner, will share 50 percent of the costs associated with the CANTEL PROFUNDO 1 well, total depth of which is forecast at 3200 meters. As a reminder, the CANTEL PROFUNDO 1 well, which began on December 12, 1997, must reach two targets made of fractured carbonates underlaying the present oil producing layers of Varadero field. PEBERCAN will maintain its role as operator through this partnership with PMV Energy. This agreement is the only existing tie between the two companies. CITY VIEW ENERGY CORP. LTD. advises that Well No. SST-1 spudded at 1300 hours Friday 26 December 1997 and at 0600 hours Monday 29 December, 1997 was at 40 metres depth. Current activity is drilling ahead in 12 1/4 inch hole to next casing point. Well No. SST-1 is a directional well drilled from SS-3 location pad with total measured depth programmed at 1548 metres and the Q2 sandstone as a target. The SST-1 well will test the recent 3D seismic which indicates a hydrocarbon bright spot in the Q2 sand level. The objective is to locate a stratigraphic trap paleo river deposit in the Sangatta Sangkimah field. Before the Sangkimah production stopped in the 1980's, wells such as SS-1, SS-3, SS-5 and SS-6 produced oil from sandstone reservoir upper middle Miocene with an average production of 100-200 BOPD at 28 degrees API. QATAR TO BRING MORE DUKHAN OIL ONSTREAM Qatar General Petroleum Corp (QGPC) said on Wednesday it planned to raise oil output at its Dukhan onshore field to 335,000 barrels per day (bpd) by 1999. ''We are currently producing 300,000 bpd at Dukhan, but the average production for 1997 works out to 280,000 bpd,'' said Hamad Mohamed al-Tamimi, operations manager at the Dukhan field. ''We are upgrading the facilities to enhance the capacity by 50,000 bpd and the production by 35,000 bpd by 1999,'' he told reporters during a field visit. Qatar aims to raise its production capacity to more than 700,000 bpd by 2000 and is heavily investing in its oil industry in partnership with foreign oil companies. Tamimi said QGPC launched the project to upgrade Dukhan's capacity last year. The project includes rejuvenating older wells and setting up infrastructure to pump oil to a refinery and oil terminal at Messai'eed, south of the capital Doha. Tamimi said QGPC was also currently conducting a feasibility study to set up a gas lift project at Dukhan. The project will enable the corporation to produce 600,000 cubic feet a day of gas from older wells in and around the concession area in Dukhan and pipe it to a cement factory in Umm Bab. Oil production in Qatar is currently running at around 680,000 bpd, made up of 300,000 bpd from the onshore Dukhan fields and around 380,000 bpd from offshore fields, oil industry executives said. They gave the break-up of offshore flows as: Occidental Petroleum Corp (NYSE:OXY - news) at Idd El-Shargi North Dome, 100,000 bpd. Maersk Oil and Gas (DSAC.b.CO)(DSSCb.CO) at Al Shaheen, 105,000 bpd Atlantic Richfield Co (NYSE:ARC - news) at Al Rayyan, 45,000 bpd. Elf Aquitaine (NYSE:ELF - news; ELFP.PA) at Al Khaleeh, 22,000 bpd. QGPC at Bul Hanine 80,000 bpd. QGPC at Maydan Mahzam 30,000 bpd. Qatar's new OPEC output quota is 414,000 bpd. INDEXES CHANGE NOTICE Effective before the open on Wednesday, December 31, 1997, the common shares of Jordan Petroleum Ltd. (JDN) will be removed from the TSE 300 Composite Index. It has been announced that the plan of arrangement whereby Reserve Royalty Corporation shall acquire all of the outstanding shares of Jordan Petroleum Ltd. has been completed. Please note the following changes to the TSE 300 Composite Index before the open on Wednesday, December 31, 1997: Stock to be added: Denbury Resources Inc. (DNR) Group/Subgroup - 3.2 (Oil & Gas Producers) Stock to be removed: Jordan Petroleum Ltd. (JDN) Group/Subgroup - 3.2 (Oil & Gas Producers) Note: Denbury Resources Inc. (DNR) will also be added to and Jordan Petroleum Ltd. (JDN) will be removed from the TSE 200 Index effective before the open on Wednesday, December 31, 1997. MONDAY INDEX ACTIVITY The Toronto Stock Exchange 300 benchmark climbed 1.7% or 110.46 to 6649.96. In comparison, the Oil & Gas Producers Index gained 1.1% or 71.94 to 6615.18. Among the sub-components, the Integrated Oils Index was basically unchanged, gaining just 3.14 to 9092.24. The Oil & Gas Producers gained 1.4% or 79.82 to 5796.48 and the Oil & Gas Services climbed 2.6% or 76.09 to 2998.16. It would appear that the "after Christmas rally" of the markets in whole, overpowered the large drop in crude oil prices that took place yesterday. TUESDAY INDEX ACTIVITY The Toronto Stock Exchange 300 benchmark continued to rally, up 0.6% or 41.25 to 6691.21. In comparison, the Oil & Gas Composite Index gained 0.4% or 23.77 to 6638.95. Sub-components were mixed. The Integrated Oils fell 0.2% or 15.09 to 9077.15. The Oil & Gas Producers were again strong in light of the declining price of oil, rising 0.4% or 39.21 to 5835.69. The Oil & Gas Services fell 0.3% or 10.33 to 2987.83. INDEX CHARTS TSE 300.............. chart.canada-stockwatch.com O&G Composite. chart.canada-stockwatch.com Integrated Oil's.... chart.canada-stockwatch.com O&G Producers.. chart.canada-stockwatch.com O&G Services..... chart.canada-stockwatch.com

To: Crocodile who wrote (8213) 12/31/1997 12:03:00 PM From: Kerm Yerman   Read Replies (2) | Respond to of 15196   MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING TUESDAY, DECEMBER 30, 1997 (6) MOST ACTIVE ISSUES Canadian 88 Energy, Chauvco Ressources International, Hurricane Hydrocarbons, Compton Petroleum, Black Sea Energy, Denbury Resources, Abacan Resources, Gulfstream Resources, Northstar Energy, Renata Resources, Vermilion Resources, Orbit Oil & Gas and Gulf Canada Resources were among the top 50 most active traded issues on the TSE. PanCanadian Pertroleum gained $1.40 to $22.50, Pendaires Petroleum $1.25 to $11.25, Denbury Resources $0.95 to $27.00 and Baytex Energy $0.80 to $15.30. Percentage gainers included Canadian Conquest Exploration 22.2% to $1.10, Chauvco Rersources International 20.0% to $1.20, Pendaires Petroleum 12.5% to $11.25, Elk Point Resources 10.5% to $7.35, Orion Energy 10.3% to $4.80, Probe Exploration 10.0% to $4.95 and Barrington Petroleum 8.0% to $4.70. On the downside, cabre Exploration fell $1.00 to $19.00, Renaissance Energy $0.75 to $29.25, Suncor Energy $0.55 to $48.95, Remington Energy $0.50 to $22.50, Tri Link Resources $0.40 to $19.60, Chieftain International $0.35 to $29.85, Canadian Natural Resources $0.35 to $31.00 and Paragon Petroleum $0.35 to $3.75. Percentage losers included Eurogas Corp 12.6% to $1.53, Paragon Petroleum 8.5% to $3.75, Tethys Energy 7.7% to $2.40, Petrobank 5.8% to $2.26, Cavell Energy 5.5% to $1.03, Purcell Energy 5.1% to $1.30, Cabre Exploration 5.0% to $19.00, Magin Energy 4.7% to $2.45 and Symmetry Resources 4.0% to $1.19. Chauvco Resources International reached a new 52-week high. (Company is a new listing) Optima Petroleum reached a new 52-week low. In the oil and gas services sector, as well as those companies with close ties to the industry, no issues were listed among the top 50 most active traded issues on the TSE. Dreco Energy gained $2.00 to $46.00, Shaw Industries A $2.00 to $47.00, American ECO $1.75 to $15.00 and Enertec Resource Services $1.00 to $12.00. Percentage gainers included Geophysical Micro 17.4% to $1.35, American ECO 13.2% to $15.00 and Enertec Resource Services 9.1% to $12.00 On the downside, Precision Drilling fell $1.30 to $33.20, Shaw Industries B $1.25 to $46.75, Enerflex Systems $1.00 to $33.00 and Ensign Resource Services $0.40 to $34.80. Percentages losers included Bowridge Resources, down 10.0% to $0.90. ATCO I and ATCO II reached new 52-week highs. No new 52-week lows. Over on the Alberta Stock Exchange, Burner Exploration, NTI Resources, Red Sea Oil, Cirque Energy, Prize Energy, Calahoo Petroleum, ICE Drilling, Brigadier Energy, Tappit Resources, Peregrene Oil & Gas, Storm Energy and Plexus Energy were among the top 30 most active traded issues. Hurricane Hydrocarbons gained $1.25 to $11.00, Colony Energy $0.30 to $2.10, Global Link International $0.30 to $1.50, Belfast Petroleum $0.25 to $3.00, Kappa Energy $0.19 to $3.00, Tier One Energy $0.15 to $1.75, Total Energy Services $0.15 to $2.30 and Canop Worldwide $0.10 to $0.82. Percentage gainers included Crispin Energy 25.9% to $0.34, Global Link International 25.0% to $1.50, Landhawk Petroleum 25.0% to $0.25, Ascot Energy Services 16.7% to $0.35, Colony Energy 16.7% to $2.10 and NTI Resources 16.0% to $0.58. On the downside, Capco Resources fell $0.50 to $3.50, Underbalanced Drilling $0.30 to $2.70, Del Mar Energy $0.15 to $0.40, Golden Trend Petroleum $0.15 to $0.85, Kensington Energy $0.15 to $1.25, Prize Energy $0.13 to $0.41 and Oxbow Exploration $0.11 to $1.20, Burner Exploration $0.10 to $0.55, Canadian Blackhawk $0.10 to $0.30, Jubilee Resources $0.09 to $0.11, Brigadier Energy $0.08 to $0.55 and Granger Energy $0.07 to $1.63. Percentage losers included Del Mar Energy 27.3% to $0.40, Canadian Blackhawk 25.0% to $0.30, Prize Energy 24.1% to $0.41, del Roca Energy 17.9% to $0.23, Burner Exploration 15.4% to $0.55, Golden Trend Petroleum 15.0% to $0.85, Brigadier Energy 12.7% to $0.55, Capco Resources 12.5% to $3.50, Kensington Energy 10.7% to $1.25 and Underbalanced Drilling 10.0% to $2.70. Hurricane Hydrocarbons reached a new 52-week high. Amoil Resources, Calahoo Petroleum and Capco Resources reached new 52-week lows. END

Home

Mail

Hot

SubjectMarks

PeopleMarks

Keepers

Settings

Terms Of Use

Contact Us

Copyright/IP Policy

Privacy Policy

About Us

FAQ

Advertise on SI

© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News