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

To: Kerm Yerman who wrote (8638)	1/23/1998 3:10:00 PM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITIONS / Cantex Energy Buys Into US Properties CANTEX ENERGY INC. ANNOUNCES CLOSING OF PURCHASE 1998-01-23 TORONTO, ONTARIO Cantex Energy Inc. (CTXE-OTC; CXEGF-BB) is pleased to announce that its purchase of producing properties in several US states successfully closed Tuesday, January 20, 1998. The purchase involved the non-operated working interests of Linderwood L.L.C/Petrocap Inc., of Dallas, Texas in 15 producing properties. Purchase price was $846,665 and the net operating income in 1998, net of operating costs, production and ad valorem taxes, is expected to be $170,000 or 20.1%, at current commodity prices and exchange rates. Cantex income is retroactive to December 1, 1997. Independent evaluation of the Joint Venture Partnership leases in Texas & Louisiana is presently in process. For further information, please contact Mr. James Lee, President, or Mr. Colin Halanen, Investor Relations Representative, at Cantex at (416)363-1570 or visit Cantex's website at web.licity.com. Total shares issued and outstanding :10,869,529

To: Kerm Yerman who wrote (8638)	1/23/1998 3:15:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Veritas DGC Inc. 2nd Qtr. Earnings Notice VERITAS DGC INC SETS DATE FOR FISCAL YEAR 1998 SECOND QUARTER EARNINGS RELEASE 1998-01-23 HOUSTON, TEXAS Veritas DGC Inc. ("Company") announced today that it will be releasing its financial and operating results for the fiscal year 1998 second quarter ended January 31, 1998 on Wednesday, March 11, 1998, following the close of the Market. The Company will have its customary telephone conference call to discuss the results at 11:00 a.m. Eastern Standard Time (EST), on Thursday, March 12, 1998. The Company representatives hosting the call are Larry Fichtner, Executive Vice President of Corporate Communications and Tony Tripodo, Executive Vice President, Chief Financial Officer and Treasurer. Participants will have the opportunity to ask questions following a brief presentation by the Company. The dial-in number to participate in the conference call is 1-800-683-1535. A digital replay will be available at the conclusion of the call until 6:00 p.m. EST, Thursday, March 19, 1998. Interested persons can phone 1-888-284- 4558. Veritas DGC Inc. is a leading provider of land, transition zone and marine- based seismic data acquisition, seismic data processing and multi-client data sales to the petroleum industry in selected markets worldwide. (Kerm's Note -- Shares was biggest net gainer yesterday on TSE)

To: Kerm Yerman who wrote (8638)	1/23/1998 3:18:00 PM
From: Kerm Yerman	Respond to of 15196

FINANCING / CityView Energy Load Facility Increases CITYVIEW ENERGY CORPORATION LIMITED - LOAN FACILITY 1998-01-23 SOUTH PERTH, AUSTRALIA CityView Energy Corporation Limited advises that the loan facility granted to it by its principal shareholder in Malaysia Mining Corporation Berhad has been increased from US$4 million to US$5 million upon the same terms and conditions.

To: Kerm Yerman who wrote (8638)	1/23/1998 3:22:00 PM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITION / Endless Energy Transaction Status ENDLESS ENERGY CORP. - TRANSACTION TO ACQUIRE OIL AND GAS ASSETS 1998-01-22 CALGARY, ALBERTA Endless Energy Corp. (EEC on the Alberta Stock Exchange) announces that it has closed on January 16, 1998 the previously announced purchase of certain oil and gas interests (the "Assets") located in the provinces of Alberta and British Columbia from a third party (the "Acquisition"). Because of current market conditions, the proposed $3,000,000 Special Warrant financing to fund the purchase as described in the Corporation's Information Circular dated December 5, 1997 could not be completed. Accordingly, to close the Acquisition, the Corporation has entered into an agreement with an unrelated oil and gas corporation who funded 100% of the purchase price. Pursuant to the agreement, Endless has agreed to hold 100% of the Assets in trust for the unrelated oil and gas corporation and was granted the option to acquire on or before March 31, 1998 beneficial ownership of either an undivided 10.77% interest or an approximate 60% divided interest in the Assets in consideration of the payment of $400,000 or $2,208,800 respectively. The Corporation has the funds necessary to exercise the 10.77% option but intends to raise Sufficient funds to exercise the 60% option. No shares have been issued in Connection with the transaction and no bank debt has been incurred. The Board of Directors is assessing all options available to the Corporation, some of which include a new public, private, bank or royalty trust financing, to fund the exercise of the 60% option. The exercise of either of the two options may constitute the Corporation's Major Transaction within the meaning of Alberta Securities Commission Policy 4.11 subject to regulatory approval and shareholder approval if necessary, Until the Corporation completes a Major Transaction, its common shares will continue to trade on a junior Capital pool board.

To: Kerm Yerman who wrote (8638)	1/23/1998 3:26:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. / Monalta Resources Enters Into Joint Venture Negotiations MONALTA RESOURCES INC. ANNOUNCES ENTERING INTO NEGOTIATIONS WITH CANYON FINANCIAL GROUP 1998-01-22 WEST VANCOUVER, B.C. The Company is pleased to announce that they have entered into negotiations with Canyon Financial Group for acquisition and joint venture opportunities. Canyon Financial has a portfolio of oil and gas properties in Texas, Montana, Oklahoma and Tennessee. Monalta recently completed a private placement and are aggressively seeking opportunities in the oil and gas resource sector. Monalta will be following up last year's encouraging results on their mineral properties in Utah when the weather permits.

To: Kerm Yerman who wrote (8638)	1/23/1998 3:29:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Willow Creek Exploration Field Update WILLOW CREEK EXPLORATION LTD ANNOUNCES RE-EQUIPPING OF CALHOUN WELL 1 AND FLEET-MILLER 2 WELLS HAVE BEEN COMPLETED 1998-01-22 CALGARY, ALBERTA Willow Creek Exploration Ltd. ("Willow Creek") announces that, pursuant to agreed upon work commitments in the Gillsburg Field, Amite Co., Mississippi, the re-equipping of the Calhoun Well #1 and Fleet-Miller #2 wells have been completed, and the wells are currently pumping. The Miller #4 well has been successfully re-entered and pumping equipment is being installed. Due to the depth of the wells (11,500 feet) and reservoir conditions, a period of 1 to 2 weeks of steady pumping is required to achieve a stabilized production rate. Initial oil rates will be reported at that time. Willow Creek has a 50% working interest ("WI") in this field. Upon completion of this work, the re-entry of the Sowell #2 well in the Pelahatchie Field, Rankin Co., Mississippi, will be commenced. In addition, Willow Creek is awaiting the preparation of cost estimates for the drilling of two new wells. These are the Williams well in Gillsburg (50% WI) and the Johnny Rhodes 7-6 well in Pelahatchie. Dependent upon final cost figures, Willow Creek will participate for 25% in the Johnny Rhodes 7-6 well, but has initiated discussions towards an increased participation. The new drilling is anticipated to commence in the first quarter of 1998.

To: Kerm Yerman who wrote (8638)	1/23/1998 3:33:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Calvalley Petroleum Drilling Plans CALVALLEY PETROLEUM INC. ANNOUNCES PARTICIPATION IN A NATURAL GAS EXPLORATION PROJECT IN THE STANDOFF AREA OF S.W. ALBERTA 1998-01-22 CALGARY, ALBERTA Calvalley Petroleum Inc. today announced its participation as a fifty percent (50%) working interest partner in a drilling and seismic joint venture arrangement in the Standoff area of S.W. Alberta. This contiguous block of petroleum and natural gas rights (4,320 acres) is located 100 miles south of the City of Calgary and is accessible on a year-round basis. It is intended that the initial exploration well will be drilled within the next 45 days to a depth of approximately 1800 metres, where it is anticipated that significant natural gas reserves will be encountered in the Bow Island Formation of the Mannville Group, similar to the Blood-Magrath pool which to date has produced in excess of 40 BCF of gas. Within the next few weeks, new 2-D seismic will be acquired by the parties. Calvalley Petroleum Inc. is a Calgary-based oil and gas exploration and development company whose shares are traded on the Montreal Exchange.

To: Kerm Yerman who wrote (8638)	1/23/1998 3:36:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Request Seismic Surveys Ltd. Agreement REQUEST SEISMIC SURVEYS LTD. SEISMIC DATA ACCESSIBLE VIA THE INTERNET 1998-01-22 CALGARY, ALBERTA Request Seismic Surveys Ltd. ("Request") and Strata Web Systems Ltd. ("Strata Web") are pleased to announce the launch of an Internet-based seismic data quality inspection system. The system brings together Strata Web's advanced Web based mapping technology with Request's proprietary, managed and public coverage seismic databases. The Internet-based system now provides geophysicists and geologists access to an easy to use Internet-based GIS mapping system that displays seismic coverage lines with associated Western Canadian land sale postings. With the click of a mouse users can view seismic line attribute tickets, view on-line strip sample survey data and e-mail requests for quality inspection to Request. The Strata Web/Request system greatly reduces the time required to make quality inspection request decisions by bringing the broker's coverage seismic database to the user's desk-top through the Internet's World Wide Web. The Strata Web software can also be installed internally on a corporate server and then used to integrate proprietary public coverage. Request is in the business of providing access to seismic data information to customers within the oil and gas industry. Request manages the flow of seismic information for sale purposes on behalf of other companies, acts as a broker to facilitate the licensing of seismic information between vendors and purchasers and creates, markets and supervises the acquisition of new seismic data inventory thereby adding to the asset base of Request. Management of Request believes that the launch of the Internet-based seismic data quality inspection system will allow it to better serve its customers, by providing them with easier access to its seismic data bases.

To: Kerm Yerman who wrote (8638)	1/23/1998 3:42:00 PM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITION / Coral Sea Petroleums Ltd. Acquires Land In Alberta Land Sale CORAL SEA PETROLEUMS LTD. CALGARY, Jan. 23 /CNW/ - Coral Sea Petroleums Ltd. is pleased to announce that it has acquired a 62.5% interest in 3 sections (1920 gross acres - 1200 net acres) of mineral rights at the January 21, 1998 Government of Alberta Land Sale. The land is located in Coral Sea's Legal core area and is postulated to have potential in the Viking and Leduc formations. Coral Sea will purchase and or shoot seismic over the lands in the near future and if interpretations are positive, will drill a well to test the land in the late spring or summer of 1998. Coral Sea is a publicly traded company trading on the Alberta Stock Exchange under the symbol ''CPO''.

To: Kerm Yerman who wrote (8638)	1/23/1998 3:46:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. / Orbit Oil & Gas to Redeem Preferred Shares ORBIT TO REDEEM PREFERRED SHARES CALGARY, Jan. 23 /CNW/ - Orbit Oil & Gas Ltd. announces that it is redeeming all of its outstanding 7 1/2% Cumulative Redeemable Convertible Preferred Shares, Series 2 and 8 1/2% Cumulative Redeemable Convertible Preferred Shares, Series 3. Orbit has set February 23, 1998 as the redemption date. The Series 2 and Series 3 Preferred Shares will be redeemed for a redemption price of $10.00 per share plus accrued and unpaid dividends to and including the redemption date. A notice of redemption will be mailed today to all registered holders of the Series 2 and Series 3 Preferred Shares.

To: Kerm Yerman who wrote (8638)	1/23/1998 3:50:00 PM
From: Kerm Yerman	Respond to of 15196

ACQUISITIONS - MERGERS / Sunoma Energy Acquires 93% of Orbit Oil & Gas Shares SUNOMA ACQUIRES 93% OF ORBIT SHARES CALGARY, Jan. 23 /CNW/ - Sunoma Energy Corp. announces that approximately 93% of the outstanding common shares of Orbit Oil & Gas Ltd., excluding those previously owned by Sunoma, have been tendered under Sunoma's offer for all of the Orbit common shares, which expired January 22, 1998. Sunoma has taken up all of the shares validly tendered and is in the process of acquiring the remaining Orbit shares pursuant to the compulsory acquisition provisions of the Business Corporations Act (Alberta).

To: Kerm Yerman who wrote (8638)	1/23/1998 3:53:00 PM
From: Kerm Yerman	Respond to of 15196

AGREEMENTS / Tornado Resources Secures African Deal TORNADO RESOURCES LTD. SECURES ENERGY PROJECT IN EAST AFRICA CALGARY, Jan. 23 /CNW/ - Tornado Resources Ltd. announces the signing of a Memorandum of Understanding with the Government of the United Republic of Tanzania, effective January 1, 1998, for the development of a natural gas-to-power project in southern Tanzania. The Mnazi Bay Gas-to-Power project involves the exploitation of the 500 Bcf Mnazi Bay gas field for power generation at the town of Mtwara, situated in the southeast corner of Tanzania. The project is comprised of the following stages; (i) Re-entry and production testing of the Mnazi Bay-1 gas well, which was drilled and suspended in 1982; (ii) construction of a 25-kilometre gas pipeline linking the Mnazi Bay gas field to the generation site at Mtwara; (iii) Commissioning of 15 MW of gas turbine capacity at the Mtwara generation site; and (iv) Construction and upgrading of transmission facilities connecting the urban centers of Mtwara, Lindi and Masasi (total length of 205 kilometers). Capital cost for the project development is estimated at US$32.5 million. A Production Sharing Agreement between Tornado Resources Ltd. and the Tanzania Petroleum Development Corporation (TPDC) is anticipated to be signed at month's end, covering the development of the Mnazi Bay gas field. The well re-entry program is scheduled to begin in mid-February 1998. Tornado Resources Ltd. will operate the gas production facilities, and will be owner/operator of the natural gas pipeline, gas turbines, and transmission facilities. The integrated energy project includes an initial transmission franchise area covering the Mtwara and Lindi Administrative Districts, with an optional franchise area extending across the south of Tanzania to the western border with Zambia. The south of Tanzania is currently unconnected from the Tanzania integrated power grid, with power supplied from isolated diesel generators located in the various urban centers. Load growth in the franchise area will be focused on agricultural processing mining activities, and proposed electricity exports to northern Mozambique. The deep-water harbor at Mtwara provides ready import/export access to the major Asian markets. Projections call for expansion of the Mtwara gas-fired generation facility to 50 MW of capacity by 2003. Further information regarding the operations and outlook for Tornado Resources Ltd. will be provided at the Company's Annual General Meeting, which will be held on Wednesday, January 28, 1998 at 10:00 AM at the 400 Club, 710 - 4th Avenue S.W., Calgary, Alberta.

To: Kerm Yerman who wrote (8638)	1/23/1998 3:56:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. - TOP 21 LISTED / Fidelity Investment Into Rio Alto Exploration FIDELITY PURCHASES RIO ALTO EXPLORATION LTD. COMMON STOCK BOSTON, Jan. 23 /CNW/ -- Fidelity Management & Research Company (FMR) and Fidelity Management Trust Company (FMTC), 82 Devonshire Street, Boston, Massachusetts, announced that certain open-end investment companies of which FMR serves as investment manager and an institutional account for which FMTC serves as investment manager have in public transactions purchased Rio Alto Exploration Ltd. common stock. The common stock purchased, together with previously acquired shares, represents 10.50% of the issued shares of such class. Fidelity fund and trust account purchases have been made for investment; the Fidelity funds and trust account may, subject to market conditions, make additional investments in or dispositions of securities of Rio Alto Exploration Ltd. in the future, including additional purchases of the common stock. FMR and FMTC do not, however, intend to acquire 20% of any class of the outstanding voting or equity securities of Rio Alto Exploration Ltd.

To: Kerm Yerman who wrote (8638)	1/23/1998 4:00:00 PM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITION / Gulf Canada Resources Enters into Mogolian Project GULF CANADA AND ROC OIL ANNOUNCE INVESTMENT IN A NEW FRONTIER WITH PURCHASE OF PROJECT IN MONGOLIA DENVER, COLORADO, Jan. 23 /CNW/ - Gulf Canada Resources Limited and Roc Oil Company Limited announced today the purchase of all of the assets of Nescor Energy Company. The assets purchased include approximately 6 million barrels of proved oil reserves, existing infrastructure and 6.5 million highly prospective acres in the East Gobi Basin, southeastern Mongolia. The purchase cost is US$14.25 million. The acreage acquired is covered by two production sharing contracts for blocks 13 and 14. Additionally, the companies have executed contracts for two contiguous blocks, 15 and 10-North, that will increase the total area under lease to 16 million acres. Government approval for the additional blocks is expected later this quarter. Existing reserves are confirmed by Ryder Scott engineers and are contained in the Tsagaan Els oil field. The companies expect to begin production from existing wells during the first quarter and will begin drilling additional appraisal and development wells in the second quarter. Infrastructure purchased will support drilling, production and transportation. Oil will be transported via an existing rail system that connects the property to the China border and sold under a purchase agreement negotiated with Sinochem International Oil of China. Based on initial evaluation of seismic data, Gulf and Roc have identified upside potential within the Tsagaan Els field and in nearby fault blocks. Mongolia's production sharing contract terms, regional geology similar to China's productive Erlian Basin and access to China's growing demand for petroleum make this an exciting new area. Adds J.P. Bryan, President and Chief Executive Officer of Gulf Canada Resources, ''This project contains existing productive capability, significant upside by way of both exploration and exploitation, and there is a short time between investment and ultimate sales. This is an ideal profile of the worldwide projects that Gulf has been assembling over the past three years, and we think it holds the potential for adding significantly to shareholder value.'' ''Because the global market for oil properties has been hot, not to say overheated, it is particularly exciting to acquire 16 million acres in a virtually unexplored, petroliferous basin with a level of infrastructure that can only be described as surprisingly good; all in a country with a wonderfully supportive Government'', said John Doran, Chief Executive Officer of Roc Oil Company. Gulf Canada Resources Limited holds 75% of the joint venture and Roc Oil Company, an unlisted Australian oil company, holds 25%.

To: Kerm Yerman who wrote (8638)	1/23/1998 9:52:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITY / Chauvco Resources International Exploration Update CRI DRILLING UPDATE CALGARY, Jan. 23 /CNW/ - Chauvco Resources International Ltd. is currently drilling an exploratory well to test the Fourou Plage sands beneath the producing Gamba pool in the Remboue field. This well is programmed to be drilled to a total depth of 4,800 feet by the end of the month, following which the drilling rig will be released. Prior to spudding the Fourou Plage test well, a horizontal well was drilled to evaluate the potential of the Remboue East pool. This well encountered oil staining in the uppermost part of Gamba formation and produced water on production test. The results of this well do not support the presence of proven oil reserves in the Gamba formation at Remboue East. Chauvco is releasing the slim-hole rig used to drill shallow exploratory wells on the Remboue Permit. Of the three wells drilled to date outside of the Remboue producing field, one well had minor oil shows and two wells were water-bearing in the target Gamba horizon.

To: Kerm Yerman who wrote (8638)	1/23/1998 10:01:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

PIPELINES / TransCanada Pipelines Ltd. 1997 Earnings (Part 2) TRANSCANADA PIPELINES LIMITED CONSOLIDATED INCOME Three months ended Year ended December 31 December 31 (millions of dollars except (unaudited) per share amounts) 1997 1996 1997 1996 ------------------------------------------------------------------------- Revenues 3,878.7 3,197.0 14,242.8 10,790.6 -------- -------- -------- -------- Cost of Sales 3,071.1 2,473.8 11,157.0 8,063.5 Other Costs and Expenses 403.4 310.5 1,433.6 1,059.1 Depreciation 111.0 101.7 424.8 380.8 -------- -------- -------- -------- 3,585.5 2,886.0 13,015.4 9,503.4 -------- -------- -------- -------- Operating Income 293.2 311.0 1,227.4 1,287.2 -------- -------- -------- -------- Other Expense/(Income) Financial charges 149.2 140.3 567.6 553.1 Financial charges of joint ventures 26.7 22.0 97.5 91.2 Allowance for funds used during construction (8.4) (2.2) (27.4) (18.6) Interest and other income (12.0) (3.9) (28.6) (18.0) -------- -------- -------- -------- 155.5 156.2 609.1 607.7 -------- -------- -------- -------- Income before Income Taxes 137.7 154.8 618.3 679.5 Income Taxes - Current and Deferred 24.4 41.8 161.3 254.5 -------- -------- -------- -------- Net Income 113.3 113.0 457.0 425.0 Preferred Securities Charges 3.7 1.9 13.1 1.9 Preferred Share Dividends 9.1 9.1 36.3 37.9 -------- -------- -------- -------- Net Income Applicable to Common Shares 100.5 102.0 407.6 385.2 -------- -------- -------- -------- -------- -------- -------- -------- Net Income Per Share $0.45 $0.48 $1.85 $1.85 -------- -------- -------- -------- -------- -------- -------- -------- Average Shares Outstanding (millions) 220.2 208.5 -------- -------- -------- -------- See accompanying Note to Summarized Consolidated Financial Statements. TRANSCANADA PIPELINES LIMITED CONSOLIDATED CHANGES IN FINANCIAL POSITION For the year ended December 31 (millions of dollars) 1997 1996 ------------------------------------------------------------------------- Cash Generated from Operations Funds generated from operations 876.2 831.0 Increase in operating working capital (251.4) (62.4) -------- -------- 624.8 768.6 -------- -------- Investing Activities Capital expenditures Energy transmission (1,413.4) (1,034.3) Energy processing (169.9) (158.8) International (81.8) (97.9) Energy marketing and corporate (28.8) (3.2) Acquisitions, net of cash acquired (226.9) (358.1) Deferred amounts and other (34.6) 69.3 -------- -------- (1,955.4) (1,583.0) -------- -------- Financing Activities Dividends and preferred securities charges (310.3) (267.2) Notes payable issued, net 441.5 59.2 Long-term debt issued 1,106.8 887.5 Reduction of long-term debt (274.2) (358.0) Non-recourse debt of joint ventures issued 109.0 5.1 Reduction of non-recourse debt of joint ventures (125.2) (56.3) Partnership units issued by a subsidiary 219.0 - Settlement of convertible debentures - (150.0) Junior subordinated debentures issued - 217.5 Preferred securities issued - 257.3 Preferred shares redeemed - (150.0) Common shares issued 116.0 313.5 -------- -------- 1,282.6 758.6 -------- -------- Decrease in Cash and Short-Term Investments (48.0) (55.8) Cash and Short-Term Investments - at beginning of year 163.2 219.0 -------- -------- Cash and Short-Term Investments - at end of year 115.2 163.2 -------- -------- -------- -------- See accompanying Note to Summarized Consolidated Financial Statements. TRANSCANADA PIPELINES LIMITED CONSOLIDATED FINANCIAL POSITION December 31 (millions of dollars) 1997 1996 ------------------------------------------------------------------------- Current Assets Cash and short-term investments 115.2 163.2 Accounts receivable 1,513.4 1,302.3 Inventories 352.5 222.0 Other 34.2 12.6 -------- -------- 2,015.3 1,700.1 -------- -------- Long-Term Investments 274.8 171.2 -------- -------- Plant, Property and Equipment Energy transmission 10,671.4 9,598.9 Energy processing 1,282.1 1,022.8 Energy marketing, international and corporate 119.4 68.4 -------- -------- 12,072.9 10,690.1 -------- -------- Other Assets 208.6 88.1 -------- -------- 14,571.6 12,649.5 -------- -------- -------- -------- Current Liabilities Notes payable 668.0 226.5 Accounts payable 1,626.4 1,531.6 Long-term debt due within one year 282.3 273.1 Non-recourse debt of joint ventures due within one year 51.0 51.1 -------- -------- 2,627.7 2,082.3 -------- -------- Deferred Amounts 113.1 34.1 -------- -------- Long-Term Debt 6,020.6 5,148.2 -------- -------- Non-Recourse Debt of Joint Ventures 982.8 964.6 -------- -------- Deferred Income Taxes 232.5 203.5 -------- -------- Junior Subordinated Debentures 223.9 223.2 -------- -------- Non-Controlling Interests 96.1 - -------- -------- Shareholders' Equity Preferred securities 280.0 261.1 Preferred shares 512.6 512.6 Common 3,482.3 3,219.9 -------- -------- 4,274.9 3,993.6 -------- -------- 14,571.6 12,649.5 -------- -------- -------- -------- See accompanying Note to Summarized Consolidated Financial Statements. TRANSCANADA PIPELINES LIMITED NOTE TO SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTS SEGMENTED INFORMATION Three months ended Year ended December 31 December 31 (unaudited) (millions of dollars) 1997 1996 1997 1996 ------------------------------------------------------------------------- Energy Transmission Revenues 657.4 554.9 2,454.5 2,217.9 Costs and expenses (291.7) (196.7) (1,046.2) (761.3) Depreciation (93.7) (80.0) (354.9) (324.8) ------- ------- ------- ------- Operating income 272.0 278.2 1,053.4 1,131.8 Financial charges and other (142.7) (147.7) (551.1) (571.6) Income taxes (28.3) (35.2) (132.1) (198.7) Preferred share dividends (9.1) (9.1) (36.3) (37.9) ------- ------- ------- ------- Net income applicable to common shares 91.9 86.2 333.9 323.6 ------- ------- ------- ------- Energy Marketing Revenues 3,038.3 2,471.1 11,084.0 8,070.1 Cost of sales (3,015.2) (2,430.3) (10,947.0) (7,899.4) Other costs and expenses (30.9) (37.6) (102.9) (110.1) ------- ------- ------- ------- Operating income/(loss) (7.8) 3.2 34.1 60.6 Financial charges and other (0.9) (1.5) (9.6) (6.3) Income taxes 2.0 (1.6) (16.9) (26.4) ------- ------- ------- ------- Net income/(loss) applicable to common shares (6.7) 0.1 7.6 27.9 ------- ------- ------- ------- Energy Processing Revenues 173.2 168.0 678.4 493.6 Cost of sales (55.9) (43.5) (210.0) (164.1) Other costs and expenses (70.7) (67.0) (257.6) (168.5) Depreciation (14.2) (21.3) (63.3) (52.2) ------- ------- ------- ------- Operating income 32.4 36.2 147.5 108.8 Financial charges and other (11.7) (11.0) (41.8) (33.5) Income taxes (7.9) (10.6) (44.3) (33.7) ------- ------- ------- ------- Net income applicable to common shares 12.8 14.6 61.4 41.6 ------- ------- ------- ------- International Revenues 9.8 3.0 25.9 9.0 Costs and expenses (13.2) (9.6) (33.5) (23.0) ------- ------- ------- ------- Operating loss (3.4) (6.6) (7.6) (14.0) Other income and expenses 1.5 0.3 2.0 0.9 Income taxes 4.2 4.1 11.9 7.9 ------- ------- ------- ------- Net income/(loss) applicable to common shares 2.3 (2.2) 6.3 (5.2) ------- ------- ------- ------- Unallocated Amounts Financial charges and other 0.2 3.3 (1.6) (2.7) ------- ------- ------- ------- Net Income Applicable to Common Shares 100.5 102.0 407.6 385.2 ------- ------- ------- ------- ------- ------- ------- ------- CORPORATE PROFILE TransCanada PipeLines Limited, a Canadian company with assets in excess of $14 billion, transmits, markets and processes energy for customers in Canada, throughout North America, and around the world. Its pipeline system transmits energy from the Western Canadian Sedimentary Basin to the continent's major energy markets. Additional activities in energy marketing and energy processing extend the Company's reach. Internationally, TransCanada pursues, evaluates and invests in energy-related opportunities that expand the scope of its current activities. STOCK EXCHANGES The common and preferred shares of TransCanada are listed on the Toronto, Montr‚al, Vancouver, Alberta and Winnipeg stock exchanges in Canada. The common shares are also listed on the New York Stock Exchange. Common Share Price Range Toronto Stock Exchange High Low -------------------------------------------------------------- Fiscal 1996 $24.50 $18.63 First Quarter 1997 $26.85 $22.90 Second Quarter 1997 $28.40 $24.10 Third Quarter 1997 $28.35 $25.75 Fourth Quarter 1997 $32.25 $25.60 New York Stock Exchange (US dollars) High Low -------------------------------------------------------------- Fiscal 1996 $18.13 $13.63 First Quarter 1997 $19.63 $16.75 Second Quarter 1997 $20.38 $17.38 Third Quarter 1997 $20.63 $18.63 Fourth Quarter 1997 $22.56 $18.13

To: Kerm Yerman who wrote (8638)	1/23/1998 10:10:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. / Startech Energy Inc. Cutting Back 1998 Expenditure Program STARTECH ENERGY INC. CALGARY, Jan. 23 /CNW/ - Startech Energy Inc. - TSE (''SEH''), announced today that, as a result of the adverse conditions currently facing the Canadian oil and gas industry, the Company is reducing its $53 million 1998 capital expenditure program to $30 million. The significant drop in world crude oil prices and North American natural gas prices, the general uncertainty surrounding the ongoing equity market correction, and the continued devaluation of Asian currencies (and resultant loss of demand for world oil), has resulted in an extremely large sell off of Canadian oil and gas equity stocks. Consequently, Startech does not believe that it is prudent to presume that continued access to attractive equity capital markets is a realistic expectation in the near to medium term. Management has therefore reduced 1998 capital spending to match expected 1998 cash flow using US$17.75 WTI per barrel pricing. In 1998, even with the above referenced reduction in capital expenditures, Startech will still deliver 45% growth in average daily production, 45% growth in cash flow (at US$17.75 WTI), and 12% growth in cash flow per share over 1997. As a result of reducing the Company's 1998 capital expenditure program, Startech will now drill approximately 105 wells in 1998 - down from the Company's original estimate of 175 wells. Startech's revised 1998 capital expenditure program will now be focused on developmental drilling for light oil and long life natural gas, together with approximately 8 high impact exploration wells. Accordingly, Startech has reduced the Company's 1998 average daily production estimate by approximately 13% from 11,000 BOED to 9,600 BOED. As a result, assuming crude oil prices of US$17.75 WTI per barrel in 1998, Startech's cash flow is now expected to be approximately $28.5 million - as compared to the Company's original projection of $40.5 million. Cash flow per share in 1998 is now expected to be approximately $1.58 basic, and $1.50 fully diluted, as compared to the Company's original projection of $2.14 basic and $2.04 fully diluted. Startech has 18.2 million basic shares outstanding. Pursuant to the Company's ongoing hedging strategy, Startech has locked in approximately 50% of the Company's expected 1998 crude oil production at US$19.60 WTI per barrel. Startech currently has more than 325 development drilling locations in the Company which will allow for low risk growth from development drilling into the year 2000. Startech entered 1997 with 18.3 million barrels of reserves. Startech now has more than 43 million barrels of reserves in the Company (independently engineered) representing a 9 year proven, and an 11 year proven plus probable reserve life. Startech's reserve and production mix is all light and medium gravity crude oil and long life natural gas. The Company has no heavy oil. In 1997, for a fifth consecutive year, Startech exceeded the Company's reserve growth target (more than 95% growth over 1996), and met the Company's production growth target (65% growth over 1996). Startech exited 1997 with long term debt of $62 million. The Company will incur an incremental $20 million of debt pursuant to the January 12, 1998 take-over of Laurasia Resources Limited. The Laurasia acquisition adds long life, high net back reserves and significantly increases Startech's exposure to natural gas reserves and production. In addition, Startech has identified numerous development drilling locations on Laurasia lands for both natural gas and crude oil. Due to Startech's long reserve life, the Company's ongoing low risk development drilling program, and management's track record of meeting reserve and production growth estimates, Startech continues to have bank lines of Cdn. $100 million. Management believes that, in light of the adverse business conditions presently facing the Canadian oil and gas industry, reducing 1998 capital expenditures to match expected cash flow is essential to preserving shareholder value. Startech can and will adapt to this difficult business environment by generating substantial growth in production, cash flow and cash flow per share into the year 2000 by reinvesting internally generated cash flow into development drilling projects and selected, high impact, exploration opportunities. In the event that the business environment for the Canadian oil and gas industry improves, management will reassess the economic advisability and merit of expanding Startech's capital expenditure program and growth estimates in 1998 and beyond.