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

To: Arnie who wrote (8847)	2/4/1998 7:07:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / First Star Energy To Drill at Strachan ASE SYMBOL: FST FEBRUARY 4, 1998 CALGARY, ALBERTA--First Star Energy Ltd. ("First Star") announces the drilling rig commenced moving onto its Strachan, Alberta location today, February 4, and should start drilling this 4275 meter Cambrian test early next week. The well has been re-licenced as Apache et al 03-22-38-9W5M, approximately 1/2 mile from the previous location. The location move is the result of a 3-D seismic survey which has better defined the structural high and which confirms the previous large 2-D anomaly under the lands. Estimated potential reserves for this prospect are between 1 and 2 TCF of sales gas (First Star 20 percent BPO, 25 percent APO). The well is a Cambrian test which will evaluate several horizons producing in the immediate area, including the primary objectives - Leduc D-3 and Beaverhill Lake- Swan Hills reefs. First Star and partners (Apache Canada Ltd., Tusk Energy Inc., Dalton Resources Ltd. and Loon Energy Inc.) hold all Petroleum and Natural Gas rights at this new location. This well is expected to take 75-90 days to drill and complete. First Star is listed on the Alberta Stock Exchange with the symbol "FST".

To: Arnie who wrote (8847)	2/4/1998 7:10:00 PM
From: Herb Duncan	Respond to of 15196

ACQUISITIONS-MERGERS / CanArgo Announces Execution of a Definitive Combination Agreement With Fountain Oil Incorporated CDN SYMBOL: CNAR FEBRUARY 4, 1998 CALGARY, ALBERTA--CanArgo Energy Inc. ("CanArgo") and Fountain Oil Incorporated ("Fountain") announced today that they have executed a definitive Combination Agreement, following approval by their respective Boards of Directors. Pursuant to the Combination Agreement, CanArgo will become a wholly owned subsidiary of Fountain, and Fountain will issue 19,319,981 shares to CanArgo shareholders, according to presently outstanding shares, based on an exchange ratio of 1.6 shares of Fountain Common Stock for each outstanding CanArgo share. Fountain currently has 22,447,489 shares outstanding. Completion of the transaction is conditional upon approval by the shareholders of both companies. A joint proxy statement and circular will be sent to shareholders following SEC approval of these documents. Both CanArgo and Fountain have been developing oil and gas projects in Eastern Europe, applying Western technology including enhanced oil recovery methods to develop fields that have not previously been developed to their full potential. The principal asset of CanArgo is a 55.9 percent interest in Ninotsminda Oil Company Ltd., which holds a Production Sharing Contract for the Ninotsminda field, the West Rustavi field and the Manavi prospect, all located in the independent Republic of Georgia. The Ninotsminda field is currently producing approximately 2,000 barrels of oil per day plus associated gas from seven wells. West Rustavi is about to commence test production, and additional seismic data will be collected to assess the Manavi prospect. Development of the Ninotsminda Field and neighboring fields for which CanArgo holds licenses will be the first priority for the combined company to be followed by Fountain's Stynawske project in Ukraine and the Gorisht-Kocul project in Albania. Following completion of the business combination, a management team will be formed with executives from both companies, and Board of Directors will include individuals proposed by CanArgo and Fountain. Fountain and CanArgo have formed a steering committee to provide coordination to the activities of the two companies during the period leading to the shareholders' meetings. This committee may make recommendations to the respective Boards regarding this business combination. Following completion of the transaction, the combined company expects to have offices in Calgary, Alberta, Canada and Oslo, Norway. Fountain expects to propose to its stockholders that the name of the company be changed to CanArgo Energy Corporation. Dr. David Robson, Chairman and Chief Executive designate of the combined entity, commenting on the proposed combination said: "The integration of Fountain and CanArgo will produce a company with highly promising projects, talented and experienced personnel with an entrepreneurial spirit and a cost-conscious approach to project development. I believe that this combination will reward the shareholders of both companies with increased cash flow, impressive growth and enhanced value." To receive Fountain Oil's latest press release and other corporate documents via fax in the United States, at no cost, please dial 1 800 PRO INFO. Enter Fountain Oil's ticker symbol GUSH.

To: Arnie who wrote (8847)	2/4/1998 7:12:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Granger Implements Normal Course Issuer Bid ASE SYMBOL: GAS.A FEBRUARY 4, 1998 CALGARY, ALBERTA--Granger Energy Corp. announces that it has implemented a Normal Course Issuer Bid through the facilities of the Alberta Stock Exchange. Commencing February 5, 1998 and ending February 4, 1999, the Corporation may purchase up to 10 percent of the public float of each of its three class of shares provided that no more than 2 percent of the issued shares in any given class will be puchased in any given 30 day period. The 10 percent public float limit for each class is as follows: Class A shares 463,787 Class B shares 367,488 Class C shares 10,758 All shares purchased under the issuer bid will be canceled thereby increasing the respective proportionate share interests of all the remaining shareholders.

To: Arnie who wrote (8847)	2/4/1998 7:14:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / TransGlobe Energy Corporation Announces Discovery at East Meridian Project, Montana TSE, ASE SYMBOL: TGL ASE SYMBOL: TGL.S NASDAQ SYMBOL: TGLEF FEBRUARY 4, 1998 CALGARY, ALBERTA--TransGlobe Energy Corporation (ASE, symbols "TGL" and "TGL.S", TSE symbol "TGL", NASDAQ symbol "TGLEF") is pleased to report that the well, BROG 13-19 in Richland County, Montana, drilled horizontally , production tested at a stabilized rate of 804 bpd of 45 degree API oil and no water on a 24/64 choke with 550 psig flowing tubing pressures from the Red River "C" formation. TransGlobe has a 50 percent working interest and a net revenue interest of 40 percent in the BROG well. Another exploration well, Johnson 21-1 in Richland County, Montana, was spudded January 29, 1998. This well is to test the Tyler Sand at approximately 7600 ft. TransGlobe has a 25 percent working interest and a net revenue interest of 20 percent in this well.

To: Arnie who wrote (8847)	2/4/1998 7:16:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Syncrude Canada - Oil Sands Giant has Record-Setting Year with Excellent Operating and Business Results FEBRUARY 4, 1998 FORT MCMURRAY, ALBERTA--Syncrude Canada announced the operating and business results of Syncrude today for the fourth quarter and full year for 1997. For the 16th time in 19 years of operations, Syncrude set another annual production record with shipments of over 75.7 million barrels (207,000 barrels/day). In 1996, annual production totaled 73.5 million barrels (201,000 barrels/day). In addition, shipments in the fourth quarter established a new record and were 21.6 million barrels (235,000 barrels/day), compared to 19.1 million barrels (207,000 barrels/day) in 1996. The previous quarterly record was set in the third quarter of 1997 when 21.3 million barrels (232,000 barrels/day) were produced. 1997 OPERATING RESULTS The overall unit cost for the year was the third lowest in Syncrude's history at $13.78/barrel. Total unit costs include production, general and administrative costs, research and certain financing costs. The 1996 total unit cost was $13.70/barrel. Production costs were $13.06/barrel in 1997 versus $12.95/barrel in 1996. 4Q 1997 OPERATING RESULTS Total unit costs for the last quarter of 1997 were $11.14/barrel, the lowest in Syncrude's history. Unit costs were $12.23/barrel in the final quarter of 1996. Production costs for the last quarter were $10.42/barrel, compared to $11.54 for the same quarter in 1996. 1997 BUSINESS RESULTS For the second consecutive year, the Syncrude owners' revenue exceeded $2 billion, based on Deemed Unit Price. Revenue for the year was $2,107 million, compared to $2,137 million in 1996. The lower revenue was primarily due to a four percent reduction in average crude oil prices that more than offset the increased production. The Deemed Unit Price for SYNCRUDE SWEET BLEND (SSB) averaged $27.84/barrel ($20.61/barrel U.S.-W.T.I.) at the plant gate. In 1996, SSB averaged $29.08/barrel ($22.02/barrel U.S.-W.T.I.). Operating cash flow increased 21 percent to $858 million $11.34/barrel) in 1997, compared to $712 million ($9.68/barrel) in 1996. 4Q 1997 BUSINESS RESULTS The Syncrude owners' revenue for the latest quarter was $593 million, based on Deemed Unit Price, compared to $618 million in the same quarter of 1996. This was largely the result of significantly lower crude oil prices. The Deemed Unit Price for Syncrude Sweet Blend (SSB) averaged $27.44/barrel ($19.94/barrel U.S.-W.T.I.) at the plant gate. In 1996, SSB averaged $32.41/barrel ($24.57/barrel U.S.-W.T.I.). Operating cash flow for the fourth quarter was $258 million ($11.97/barrel), compared to $246 million ($12.86/barrel) for the same quarter of 1996. CAPITAL EXPENDITURES Capital expenditures were $355 million in 1997, 66 percent higher than the $214 million expended in 1996. Major projects included the extraction recovery improvement and tailings line replacements, the start up of the new North Mine and its associated hydrotransport facilities, completion of most of the first stage of upgrading debottleneck, and development work on the Aurora Mine, the second stage of upgrading debottleneck, and the Mildred Lake Upgrader Expansion project. "There were many other highlights for 1997," noted Chairman and CEO Eric Newell. "The extremely reliable, stead operation not only led to several production records, but also outstanding environment performance and a six percent year-over-year improvement in our energy intensity. This means that C02 emissions per barrel declined, as did total S02 emissions. "Corporately, the regulatory approval of the Aurora Mine and the announcement of our major Syncrude 21 investment program of $6 billion all rank as major milestones during an outstanding year," he added. "Looking ahead, 1998 will be another challenging year as our goal is to produce 80 million barrels at an even lower unit cost." Syncrude is a joint venture owned by AEC Oil Sands, L.P. (NYSE-AOG/TSE-AEC), AEC Oil Sands Limited Partnership, Athabasca Oil Sands Investments Inc. (TSE-AOS.UN), Canadian Occidental Petroleum Ltd. (ASE/TSE-CXY), Canadian Oil Sands Investments Inc. (TSE-CO.UN), Gulf Canada Resources Ltd. (NYSE/TSE-GOU), Imperial Oil Resources (ASE/TSE-IMO), Mocal Energy Ltd., Murphy Oil Company Ltd., and Petro-Canada (NYSE-PCZ/TSE-PCA). NOTE: Visit our web site at syncrude.com for more information about Syncrude as well as downloadable photographs of the operation located in the Library area of the site. /T/ SYNCRUDE: HIGHLIGHTS OF OPERATING AND BUSINESS RESULTS FOR 1997 OPERATING RESULTS For the 3 months ending December 31 1997 1996 ----------------------------------------------------------- Shipments (millions of barrels) 21.6 19.1 ----------------------------------------------------------- Shipments (thousands of barrels per day) 235 207 ----------------------------------------------------------- Direct operating expenditures (millions of $Cdn) 225 220 ----------------------------------------------------------- Production unit costs ($/bbl/Cdn) 10.42 11.54 ----------------------------------------------------------- Corporate G&A/research/financing (millions of $Cdn) 16 13 ----------------------------------------------------------- Total expense (millions of $Cdn) 241 233 ----------------------------------------------------------- Total unit costs ($/bbl/Cdn) 11.14 12.23 ----------------------------------------------------------- Capital expenditures (millions of $Cdn) 75 81 Development/Investment 43 56 Sustaining and Maintenance 32 25 ----------------------------------------------------------- ----------------------------------------------------------- For the 12 months ending December 31 1997 1996 ----------------------------------------------------------- Shipments (millions of barrels) 75.7 73.5 ----------------------------------------------------------- Shipments (thousands of barrels per day) 207 201 ----------------------------------------------------------- Direct operating expenditures (millions of $Cdn) 989 952 ----------------------------------------------------------- Production unit costs ($/bbl/Cdn) 13.06 12.95 ----------------------------------------------------------- Corporate G&A/research/financing (millions of $Cdn) 54 55 ----------------------------------------------------------- Total expense (millions of $Cdn) 1,043 1,007 ----------------------------------------------------------- Total unit costs ($/bbl/Cdn) 13.78 13.70 ----------------------------------------------------------- Capital expenditures (millions of $Cdn) 355 214 Development/Investment 202 122 Sustaining and Maintenance 153 92 ----------------------------------------------------------- ----------------------------------------------------------- /T/ The business results of Syncrude are prepared by management to estimate what the financial position, results of operations, and changes in financial position might have been if Syncrude operated on a stand-alone separate company basis. /T/ BUSINESS RESULTS For the 3 months ending December 31 1997 1996 ----------------------------------------------------------- Deemed Unit Price ($/bbls/Cdn) 27.44 32.41 ----------------------------------------------------------- Owners Revenue (millions of $Cdn) 593 618 ----------------------------------------------------------- Operating Cash Flow (millions of $Cdn) 258 246 ----------------------------------------------------------- Net Cash Flow (millions of $Cdn) 167 152 ----------------------------------------------------------- ----------------------------------------------------------- For the 12 months ending December 31 1997 1996 ----------------------------------------------------------- Deemed Unit Price ($/bbls/Cdn) 27.84 29.08 ----------------------------------------------------------- Owners Revenue (millions of $Cdn) 2,107 2,137 ----------------------------------------------------------- Operating Cash Flow (millions of $Cdn) 858 712 ----------------------------------------------------------- Net Cash Flow (millions of $Cdn) 449 443 ----------------------------------------------------------- ----------------------------------------------------------- /T/ NOTES - Revenue is based on the weighted average price received by the individual Syncrude Joint Venture Owners from their sales to third parties, applied to the total volumes shipped (before royalty payments). This is the same as the Deemed Unit Price. - Operating cash flow is revenue net of production costs, royalties and working capital adjustments. - Net cash flow is after corporate G&A, research, certain financing costs and all capital expenditures, before tax. - This financial model reflects the unaudited financial position and results of operations as if Syncrude operated as a stand-alone company. These results are not intended to represent the actual consolidated financial results of the individual Syncrude Joint Venture Owners, whose tax positions and financial reporting bases vary.

To: Arnie who wrote (8847)	2/4/1998 7:21:00 PM
From: Herb Duncan	Respond to of 15196

CORP / White Swan Resources Inc. Announces Status of Proposed Reorganization and Changes in Management ASE SYMBOL: WSL FEBRUARY 4, 1998 CALGARY, ALBERTA--White Swan Resources Inc. (WSL.ASE) provides the following update concerning its proposed plan of arrangement, progress toward rescinding the existing cease trade order and certain management changes. Closing of the earlier announced agreement (September 4th, 1997) whereby a corporation related to Allan Dolan and certain nominees ("Dolan") agreed to purchase that portion of the White Swan Partnership not already owned by them from an affiliate of Wayne and Susan Schigol has been completed. The Dolan group now indirectly owns approximately 40 percent of the issued and outstanding shares of White Swan. Wayne Schigol and Susan Schigol have resigned as directors and officers of the company. Allan Dolan has been appointed Chairman, CEO and President and Mr. Gibril Bangura of Freetown, Sierra Leone has been appointed a director of the company. The shares of the company's wholly owned subsidiary, WSR Acquisition Corp., will not be sold to the Schigols as earlier announced. Further additions to the board and management are contemplated as part of the proposed reorganization. Auditors of the company's UK and Sierra Leone subsidiaries, KPMG Peat Marwick, have now received sufficient information to complete an audit of White Swan's accounts as of April 30th, 1997. It is anticipated that this audit will be completed in late February at which time application will be made to rescind the existing cease trade order, thus permitting the calling of an annual and special meeting of White Swan shareholders to approve, among other things, the earlier announced plan of arrangement (October 17th, 1998). The plan is subject to shareholder, regulatory and Court of Queen's Bench of Alberta approval and the satisfaction of certain other conditions. It is anticipated that the proposed reorganization will be completed prior to the return of democratic rule to Sierra Leone as contemplated by the Peace Accord announced October 23rd, 1997.