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Gold/Mining/Energy : Orbit Oil and Gas (t.orb) -- Ignore unavailable to you. Want to Upgrade?

To: Jidamo who wrote (165)	1/6/1998 5:41:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 171

Orbit Oil Sees Little Effect From Drop in Commodity Prices January 06, 1998 4:54 PM CALGARY (Dow Jones)--Orbit Oil & Gas Ltd. (T,ORB) said its 1998 operating results will only be marginally hurt by the recent downturn in commodity prices due to Orbit's oil and gas hedges and interest rate hedges in place. In a news release, the company said about 45% of its liquids production has been hedged at an average of about C$30 a barrel and 40% of 1998 gas production has been hedged at AECO C netback prices of C$2.20 per thousand cubic feet. Orbit noted that, in the longer term, over 30 million cubic feet of gas a day is marketed through company-owned transportation facilities to significantly higher priced U.S. markets. The company said it's therefore "well positioned to achieve a significantly higher price for its natural gas production and properties even in current weaker markets." The company also confirmed that its Cabeza Creek well in Goliad County, Texas encountered 27 feet of gross gas pay, with greater than 18% porosity and a reservoir pressure of 9,200 psi in the Lower Wilcox, based on log and formation test tool results. Drilling operations will recommence to drill to a total depth of 13,000 feet, at which point production casing will be set, it added. Orbit said the recent assertion by Sunoma Energy Corp. that reserve values were questionable "were probably based on Sunoma's lack of familiarity with the economic benefit of Orbit's natural gas transportation contracts and commodity hedges in place. Sunoma has not asked to review the company's data room and consequently has limited knowledge of Orbit's current marketing advantages." As reported, Orbit is recommending rejection of Sunoma's C$1.70-a-share takeover offer. Orbit and Sunoma are oil and gas companies. smartmoney.com