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

To: Herb Duncan who wrote (8639)	1/26/1998 11:33:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Colt Energy & Ultra Petroleum Wyoming Drilling Update COLT ENERGY INC. ASE SYMBOL: COE ULTRA PETROLEUM CORP. VSE SYMBOL: UP JANUARY 26, 1998 Colt Energy and Ultra Petroleum: Wyoming Drilling Update MONTREAL, QUEBEC--Colt Energy Inc. is pleased to provide an update of the drilling and completion activity in the Green River Basin, Sublette County, Wyoming. The North Lizardhead 11-8 well ("11-8") was cased at 13.131 feet just prior Christmas, 1997 and completion activities are scheduled to commence this week. The initial work involves running a special seismic program using the existing wellbore. The actual completion is expected to commence in mid February, subject to completion of new Western Gas Resources ("WGR") 12 inches pipeline being constructed from the WGR Lizardhead 13-28 well, located approximately 3.5 miles south of the 11-8 well. Coordinating the completion activities with the tie-in of the pipeline will result in the sale of gas during the various testing processes. Colt's 11-8 well encountered potentially productive sands below the total depth of the WGR'S 13-28 producing gas well. These lower intervals will be evaluated first. On the Antelope Ranch prospect, Colt's partner in the Green River Basin, Ultra Petroleum Inc. (VSE: "UP") has applied for a permit to drill the Horse Creek 14-33 well (the earning well) which is expected to spud in the first half of 1998. The Horse Creek 14-33 well is an exploratory test well that is expected to be drilled to 17,000 feet will evaluate deeper over pressured sands. Drilling and evaluation are anticipated to take approximately 60 to 70 days. The Northeast Lizardhead 3-9 well is being permitted and is expected to commence drilling in the first half of 1998 after completion of the 11-8 well. The Northeast Lizardhead 3-9 well will be the second earning well in the area. Spudding of the first West Billy test well is expected in the second half of 1998.

To: Herb Duncan who wrote (8639)	1/26/1998 11:39:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Danoil Energy 15 Month Results DANOIL ENERGY LTD. ASE SYMBOL: DAN.A JANUARY 26, 1998 Danoil Announces Fifteen Month Results CALGARY, ALBERTA--Danoil Energy Ltd. has changed its year-end from August 31 to December 31, 1997, which results in a sixteen-month fiscal period for 1997 and necessitates a fifteen-month report. Prior to presenting the fifteen-month results, an analysis of Danoil's historical first quarter (September 1 to November 30, 1997) reveals that the changes initiated in May of 1997 have been very positive. On a comparative basis, oil and gas sales were $7,526,000 compared to $4,277,000 a year earlier, a 76 percent increase. Danoil's cash flow increased more than four times to $3,938,000 ($0.16 per share fully diluted) from $958,000 ($0.06 per share fully diluted), a 166 percent increase on a per share basis. The improvement in cash flow was largely a result of a combination of lower operating costs and higher production volumes; on a boe basis, the Company's production increased 94 percent from 2,115 boepd to 4,102 boepd. Operating results are also positive. During the September to November period, the Company participated in 11 wells (5.24 net) resulting in 9 oil wells (4.14 net) and two gas wells (1.1 net) for an overall success rate of 100 percent. As previously announced, Danoil is currently participating in a significant deep gas prospect with Shell Canada Limited, located in northwest Alberta, which is expected to reach total depth of 14,400 feet within the next 30 days. During the reporting period, which includes Danoil for fifteen months and four months of Vintage Resource Corp., oil and gas sales were $22,998,591, and cash flow from operations was $7,888,249 ($0.41/share fully diluted). During this same period, crude oil and NGL volumes and natural gas volumes averaged 2,042 bpd and 5,390 mcf/day respectively or 2,581 barrels of oil equivalent per day (boepd). This compares with current production levels that exceed 4,000 boepd. In the first quarter of 1998, we expect stronger gas prices to be offset by weaker oil prices and heavy oil price differentials which are at a four year high. Danoil has recently shut in approximately 125 bopd of heavy oil production resulting in a current production mix of approximately 10 million cubic feet per day of natural gas, 2,000 barrels of light and medium crude oil, and 1,000 barrels of heavy oil per day.