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

To: Arnie who wrote (9004)	2/13/1998 2:42:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / EMR Microwave Private Placement EMR MICROWAVE CLOSES PRIVATE PLACEMENT FREDERICTON, NB, Feb. 12 /CNW/ - EMR Microwave Technology Corporation (''EMR'') (EMW-ASE) announces that it today closed a private placement announced 7 November 1997. EMR placed a total $895,500 which will result in the issue of an additional 1,791,000 common shares and an equal number of warrants. The warrants are exercisable for two years at $0.60 per share. The placement will bring the issued and outstanding shares to 30,125,686 and the fully diluted shares to 41,438,600. The funds will be used for general working capital purposes.

To: Arnie who wrote (9004)	2/13/1998 2:46:00 AM
From: Kerm Yerman	Respond to of 15196

NATIONAL ENERGY BOARD / Natural Gas Export Licensing NEB SETS NEW PROCEDURES FOR PROCESSING APPLICATIONS FOR NATURAL GAS EXPORT LICENCES CALGARY, Feb. 12 /CNW/ - The National Energy Board, commencing on 1 March 1998, will process completed applications for natural gas export licences on a case-by-case basis when received. In recent years the Board has considered such applications in semi-annual hearings following a call for applications. The call letter approach will be discontinued. The Board also decided that it will no longer require applicants to publish notifications of their applications in newspapers. Instead, the Board will provide notification of applications for natural gas export licences to persons who request to be included on a mailing list to be developed by the Board. As well, the Board will post information on its Internet web site and issue news releases with respect to each application received. These changes are intended to streamline the Board's processing of natural gas export applications. The changes will allow applicants to file applications at a time of their choosing and when they are sufficiently complete. The level of scrutiny and analysis and adherence to the Board's Market-Based Procedure for examining applications will not change.

To: Arnie who wrote (9004)	2/13/1998 2:52:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Enertec Resource Services Quarterly Report ENERTEC RESOURCE SERVICES INC. - QUARTERLY REPORT CALGARY, Feb. 12 /CNW/ - In the text of this report, use of the terms 1998 and 1997 refer to the three months ended December 31, 1997 and the three months ended December 31, 1996 respectively, unless otherwise qualified. FINANCIAL REVIEW ---------------- Gross revenue for 1998 is $20.3 million, 31% lower than the $29.6 million in 1997. Net revenue for 1998 is $16.2 million, 21% lower than the $20.4 million in 1997. The $4.2 million decline in net revenue was mainly a result of reduced work in the US transition zone relative to the comparable quarter and delays experienced while Canadian projects awaited frozen ground conditions as a result of unseasonably warm temperatures. Operating margin declined to $4.3 million in 1998, a reduction of 25% from $5.7 million in 1997. This $1.4 million decline is accounted for by a reduction of $1.2 million from data acquisition operations, a reduction of $0.6 million from marine services operations, and an increase of $0.4 million from data processing operations. These changes are discussed below. EBITDA is $3.3 million or 20% of net revenue in 1998, compared to $4.4 million or 22% of net revenue in 1997. This 22% EBITDA to net revenue ratio for the first quarter of 1997 was lower than the 25% achieved for the whole of fiscal 1997. Net earnings for 1998 are $1.1 million ($0.15 per share, basic), compared to $1.9 million ($0.30 per share, basic) last year. Cash flow for 1998 is $3.2 million ($0.43 per share, basic), against $4.3 million ($0.68 per share, basic) in 1997. OPERATIONS REVIEW ----------------- ENERTEC's Canadian Data Acquisition product line generated net revenue of $8.7 million in 1998, $0.2 million higher than in 1997. The US operation produced $2.0 million of net revenue, $4.3 million lower than in 1997; this latter reduction was mentioned above. The product line's operating margin decline of $1.2 million was contributed equally by the Canadian and US operations. Unseasonably warm weather in the Canadian market and very heavy rains in South Texas contributed to the delayed and inefficient operations. Many of the Company's Canadian projects were affected by regulatory conditions relating to frozen ground requirements, which serve to minimize environmental impact. As temperatures were well above normal for the period right up to the end of December, many projects were delayed. In the Victoria area of South Texas, heavy rains caused frequent interruptions to all phases of our operations resulting in inefficiencies. While the Company utilizes weather standby clauses in its normal course of business, these clauses are designed to cover costs only. The combination of these factors led to the operating results of the first quarter. ENERTEC's Data Processing Product line is continuing its firm growth pattern experienced through fiscal 1997. The Canadian operation net revenue grew to $2.0 million in 1998, from $1.6 million in 1997. The US operation, although much smaller than the Canadian one, is growing strongly. Net revenue from this operation rose to $0.3 million in 1998, from $0.1 million in 1997. This product line's operating margin growth of $0.4 million was contributed 75% by the Canadian activity and 25% by the US activity. In Canada, the relationship of operating margin to net revenue has been steadily maintained from 1997 to 1998 as the revenue has grown. In the US this relationship has improved markedly through the same period. ENERTEC's Marine Services Product Line net revenue declined to $3.2 million in 1998, from $3.9 million in 1997. Inclement weather has kept the product line's vessels in harbour for most of the quarter. Typically, the delayed work is added to the backlog and undertaken when conditions improve. The lower revenue relative to the cost structure of this operation led to the $0.6 million decline in the operating margin mentioned above. ENERTEC has acquired the one half interest of its joint venture partner in ENPROTEC, its production enhancement joint venture, which will now operate as a fourth product line. This operation is currently awaiting an approval from an oil and gas producer to commence an enhancement project on one of their oil properties in northern Alberta. OUTLOOK ------- To date, the second fiscal quarter has been characterized by a strong level of activity in both the data acquisition and data processing operations. The marine services operation has continued to experience poor weather conditions in the Gulf of Mexico, and it is not possible to predict the duration of these conditions. ENPROTEC continues to engender interest from oil and gas producers who consider its services and supply of risk capital appealing. However, the present commodity price volatility is largely occupying producers time and attention, relegating other issues for consideration in due course. The balance of fiscal 1998 will be affected by the direction of oil and gas prices. Oil prices continue to be volatile as a result of global events beyond the control of the industry. Low oil prices could result in the postponement of heavy oil projects and some high-risk exploration programs. In light of the uncertainty presently existing it is not practicable to predict the outlook for ENERTEC beyond the immediate quarter. It is our belief that ENERTEC's seismic services are the first on and last off in the cycles that we experience. We feel that the inventorying of drilling prospects with seismic will somewhat mitigate any downturn that may occur as a result of commodity price weakness. On behalf of the Board of Directors, ------------------------------ Murray A. Olson, President and Chief Executive Officer ENERTEC RESOURCE SERVICES INC. CONSOLIDATED BALANCE SHEET ------------------------------------------------------------------------ ($ millions) December 31 September 30 1997 1997 ----------- ------------ ASSETS (Unaudited) Current assets $22.8 $24.2 Capital assets 32.0 25.8 Other 2.5 2.6 ----------- ------------ $57.3 $52.6 ----------- ------------ ----------- ------------ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $18.7 $15.2 Long-term debt 0.0 0.1 Shareholders' equity: Capital stock 23.0 23.0 Other 0.4 0.2 Retained earnings 15.2 14.1 ----------- ------------ 38.6 37.3 ----------- ------------ $57.3 $52.6 ----------- ------------ ----------- ------------ ENERTEC RESOURCE SERVICES INC. CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS ----------------------------------------------------------------------- Unaudited ($millions, except per share information) Jan. Apr. Jul. to to to Three months ended Mar. Jun. Sep. December 31 1997 1997 1997 1997 1996 --------------------------- ----------------- Revenue, gross $ 38.9 $ 18.0 $ 25.0 $ 20.3 $ 29.6 Reimbursable costs 17.1 6.4 8.1 4.1 9.2 --------------------------- ----------------- Revenue, net 21.8 11.6 16.9 16.2 20.4 Cost of sales 13.0 8.0 10.9 11.9 14.7 --------------------------- ----------------- Operating margin 8.8 3.6 6.0 4.3 5.7 Research and development expenses 0.2 0.3 0.3 0.3 0.2 General and administrative expenses 1.5 1.1 1.6 0.7 1.1 Depreciation and amortization 2.2 1.9 2.8 2.1 1.6 --------------------------- ----------------- Earnings before the following: 4.9 0.3 1.3 1.2 2.8 Interest expense 0.2 0.1 0.0 0.0 0.1 Other income 0.3 0.2 0.1 0.2 0.0 --------------------------- ----------------- Earnings before income taxes 5.0 0.4 1.4 1.4 2.7 Income taxes (recovery) Current 1.5 (0.4) 0.4 0.3 0.0 Deferred 0.6 0.1 (0.1) 0.0 0.8 --------------------------- ----------------- 2.1 (0.3) 0.3 0.3 0.8 --------------------------- ----------------- Net earnings $ 2.9 $ 0.7 $ 1.1 $ 1.1 $ 1.9 Retained earnings, beginning of period 9.4 12.3 13.0 14.1 7.5 --------------------------- ----------------- Retained earnings, end of period $ 12.3 $ 13.0 $ 14.1 $ 15.2 $ 9.4 --------------------------- ----------------- --------------------------- ----------------- EBITDA $ 7.1 $ 2.2 $ 4.1 $ 3.3 $ 4.4 --------------------------- ----------------- Net earnings per common share: Basic $ 0.47 $ 0.07 $ 0.15 $ 0.15 $ 0.30 Fully-diluted $ 0.42 $ 0.07 $ 0.14 $ 0.14 $ 0.28 --------------------------- ----------------- --------------------------- ----------------- Weighted average number of common shares outstanding, in thousands: Basic 7,278 6,261 Fully diluted 7,976 6,960 ENERTEC RESOURCE SERVICES INC. CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION ------------------------------------------------------------------------ Unaudited ($millions, except per share information) Jan. Apr. Jul. to to to Three months ended Mar. Jun. Sep. December 31 1997 1997 1997 1997 1996 --------------------------- ----------------- Cash provided by (used in): Operations Net earnings $ 2.9 $ 0.7 $ 1.1 $ 1.1 $ 1.9 Items not involving cash: Depreciation and amortization 2.2 1.9 2.8 2.1 1.6 Deferred income taxes (recovery) 0.6 0.1 (0.1) 0.0 0.8 Other (0.1) (0.1) 0.0 0.0 0.0 --------------------------- ----------------- Cash flow from operations 5.6 2.6 3.8 3.2 4.3 Change in non-cash working capital 1.2 2.8 (2.0) (1.9) (0.8) --------------------------- ----------------- 6.8 5.4 1.8 1.3 3.5 --------------------------- ----------------- Financing Issue of common shares 0.2 7.7 0.0 0.0 0.0 Repayment of long-term debt (0.3) (6.3) (0.6) (0.1) (0.1) --------------------------- ----------------- (0.1) 1.4 (0.6) (0.1) (0.1) --------------------------- ----------------- Investments Purchase of capital assets (3.1) (2.5) (1.4) (8.1) (4.3) Proceeds on disposition of capital assets 0.1 0.1 0.2 0.0 0.1 --------------------------- ----------------- (3.0) (2.4) (1.2) (8.1) (4.2) --------------------------- ----------------- Increase (decrease) in cash position 3.7 4.4 0.0 (6.9) (0.8) Cash position, beginning of period (3.3) 0.4 4.8 4.8 (2.5) --------------------------- ----------------- Cash position, end of period $ 0.4 $ 4.8 $ 4.8 $ (2.1) $ (3.3) --------------------------- ----------------- --------------------------- ----------------- Cash flow from operations per common share: Basic $ 0.91 $ 0.33 $ 0.51 $ 0.43 $ 0.68 Fully diluted $ 0.83 $ 0.32 $ 0.45 $ 0.39 $ 0.61 --------------------------- ----------------- --------------------------- ----------------- ENERTEC RESOURCE SERVICES INC. SEGMENTED INFORMATION ------------------------------------------------------------------------- Industry Segments ----------------- Three months ended Data Marine Data Production December 31, 1997 Acquisition Services Processing Enhancement Total ----------------- ----------- -------- ---------- ----------- ----- Net revenue $ 10.7 $ 3.2 $ 2.3 $ 0.0 $ 16.2 Interest expense 0.0 0.0 0.0 0.0 0.0 Depreciation and amortization 1.5 0.4 0.2 0.0 2.1 Earnings before income taxes 0.5 0.0 0.9 0.0 1.4 EBITDA 1.8 0.4 1.1 0.0 3.3 Total assets 40.4 10.6 6.3 0.0 57.3 Capital expenditures 6.9 0.4 0.7 0.1 8.1 Three months ended December 31, 1996 ----------------- Net revenue $ 14.8 $ 3.9 $ 1.7 $ 0.0 $ 20.4 Interest expense 0.1 0.0 0.0 0.0 0.1 Depreciation and amortization 1.2 0.3 0.1 0.0 1.6 Earnings before income taxes 1.6 0.5 0.6 0.0 2.7 EBITDA 2.8 0.8 0.8 0.0 4.4 Total assets 37.2 12.0 3.4 0.0 52.6 Capital expenditures 3.1 0.2 1.0 0.0 4.3 Geographic Segments ------------------- Capital assets Net revenue and goodwill ----------- ------------ Three months ended December 31, 1997 ------------------------------------ Canada $ 10.7 $ 24.1 United States 5.5 10.3 ------ ------ Total $ 16.2 $ 34.4 ------ ------ ------ ------ Three months ended December 31, 1996 ------------------------------------ Canada $ 10.0 $ 21.6 United States 10.4 6.5 ------ ------ Total $ 20.4 $ 28.1 ------ ------ ------ ------

To: Arnie who wrote (9004)	2/13/1998 2:57:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Raptor Capital Material Change Statement & Update RAPTOR CAPITAL CORPORATION CALGARY, Feb. 12 /CNW/ - Norman J. Mackenzie, President of Raptor Capital Corporation, at the request of the Alberta Stock Exchange, announces that there is no material change in the Company to account for current trading in the shares of Raptor. However, Raptor plans an aggressive acquisition, development and exploration program over the next several months to include: Minton, Saskatchewan: Raptor will complete the re-entry of two wells, one Winnipegosis producer and one Red River producer. Both wells will be drilled horizontally with two legs of 400 meters in each well and projected production rates of 500 BOPD per well. Raptor has an 85% working interest in approximately 2,800 acres in the area. If successful, Raptor will re-enter up to three additional wells during 1998 completing similar horizontal procedures. Central Alberta: Raptor intends drilling three wells to test Glacounite and Basal Quartz natural gas potential by April 1998. Potential reserves for these prospects are 4-8 Bcf with production potential of 1.5 to 2.5 Mmcf/day per well. Raptor has over twenty additional prospects identified from a recent acquisition of over 5000 km of seismic and the Company will continue to acquire lands for the drilling of these prospects. Turner Valley, Alberta: Raptor has a 24% working interest in over 4000 acres in the Turner Valley area of Alberta. Raptor intends to drill a 3500 metre exploration well on its property during 1998. Raptor's lands are located within 2.8 miles of the recently drilled IMP Berkley 2-21-21-3 W5 well which is currently testing. Raptor is also negotiating the acquisition of proven producing properties in Alberta and a development property, in Florida, U.S.A.

To: Arnie who wrote (9004)	2/13/1998 3:01:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Computer Modeling Nine Month Report COMPUTER MODELLING GROUP LTD. - REVENUES INCREASE 79% OVER LAST YEAR CALGARY, Feb. 12 /CNW/ - Computer Modelling Group Ltd. (''CMG'') announced today revenues for the nine months ended December 31 of $6,801,295. The third quarter revenues of $2,353,511 are consistent with second quarter revenues of $2,384,496. The Company recorded a loss for the nine-month period of $1,236,518. The third quarter loss was $299,526 compared to the second quarter loss of $307,912. The nine-month loss can be broken down into two basic categories: a profit of $1,108,623 from existing business and an investment of $2,345,141 in product research and development. The $1,108,623 profit from business operations reflects a profit of $490,815 from the third quarter, consistent with the $487,731 profit realized in the second quarter. ''We are pleased with our progress since becoming a publicly-traded company in March'' said Frank Meyer, President and CEO. ''In these past nine months we have realized strong revenue growth. The revenues to date of $6.8 million is an increase of 79 per cent from third quarter sales of $3.8 million last year by the predecessor company. This signifies both an enthusiastic market demand for our high tech products and the benefits our clients are experiencing.'' The Company reported sales of software licenses in the third quarter increased by 8 per cent to $1,375,144, compared to second quarter sales of $1,277,508. Consulting and contract research revenues were $813,743, down from second quarter sales of $1,049,688. The demand for consulting services during the quarter exceeded the Company's staff levels. As a result, despite signed contracts, the Company was not able to fully realize on this opportunity. Demand is expected to remain strong throughout 1998. Mr. Meyer credited the strong growth in CMG's revenue base to a growing recognition of the world-class quality of both its software programs and the Company's consulting group. Mr. Meyer said the combination of revenue growth, led by an aggressive marketing program, and a strong focus on controlling costs are fundamental to CMG achieving and maximizing its profitability. CMG's commitment to research and development yielded further improvements to its software programs in the third quarter with significant improvement to the speed of its software applications. With CMG's annual release scheduled for April 1998, client personnel will typically experience a twofold improvement in the speed of CMG's reservoir software program Results on Windows 95 or NT. In addition, the speed of the reservoir simulators run on Windows NT has also been improved for the April 98 release. Users will see a 20 to 30% shorter run time compared to the April 97 release. The upgrades will improve the efficiency of the software thereby providing direct savings to clients. Computer Modelling Group Ltd. is a Calgary, Canada based company which provides leading software applications and services for oil and gas reservoir modelling and simulation. CMG's computer software programs are used by oil and gas companies around the world to analyze reservoirs with 3D visualization and animation, to improve the design and operation of reservoirs, and to realize the full potential from hydrocarbon reserves. The common shares of CMG are listed on the Toronto Stock Exchange and trade under the symbol CPU. Computer Modelling Group Ltd. Consolidated Balance Sheet As at December 31, 1997 (Unaudited) Assets Current assets: Cash and term deposits $6,047,037 Accounts receivable 3,536,589 Prepaid expenses 298,164 ---------------------------------------------------------------------- 9,881,790 Fixed assets, at cost 2,044,671 less Accumulated depreciation (476,786) ---------------------------------------------------------------------- 1,567,885 Deferred charges 1,553,397 ---------------------------------------------------------------------- $13,003,072 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Liabilities and Shareholders' Equity Current Liabilities: Accounts payable and accrued liabilities $872,123 Current portion of deferred revenue 1,622,501 Current portion of obligations under capital leases 192,560 ---------------------------------------------------------------------- 2,687,184 Deferred revenue 725,981 Obligations under capital leases 180,846 Shareholders' Equity Common shares 9,947,583 Non-voting shares 697,996 ---------------------------------------------------------------------- 10,645,579 Deficit (1,236,518) ---------------------------------------------------------------------- 9,409,061 ---------------------------------------------------------------------- $13,003,072 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Computer Modelling Group Ltd. Consolidated Statement of Operations and Deficit (Unaudited) December 31, 1997 -------------------------------- Three months Nine months ended ended -------------------------------- Revenue Software license sales $1,375,144 $3,732,261 Consulting and contract research 813,743 2,763,106 Interest and other income 164,624 305,928 ------------------------------------------------------------------------ 2,353,511 6,801,295 ------------------------------------------------------------------------ Cost of Sales Marketing expenses 657,243 2,055,150 Direct consulting expenses 249,382 672,254 Third party contract costs 447,085 1,398,940 ------------------------------------------------------------------------ 1,353,710 4,126,344 ------------------------------------------------------------------------ Gross Profit 999,801 2,674,951 General and administrative expenses 356,694 1,061,283 Interest expense on capital leases 7,156 24,351 Depreciation 95,481 227,789 Product research and development costs 790,341 2,345,141 ------------------------------------------------------------------------ Loss before income and other taxes (249,871) (983,613) Income and other taxes Foreign withholding taxes 49,655 251,009 Other taxes 0 1,896 ------------------------------------------------------------------------ 49,655 252,905 ------------------------------------------------------------------------ Loss for the period, being deficit at end of period ($299,526) ($1,236,518) ------------------------------------------------------------------------ ------------------------------------------------------------------------ Per Share Weighted average number of shares outstanding 8,571,430 Loss for the period Basic ($0.04) ($0.14) Fully diluted ($0.04) ($0.14) Cash flow from operations Basic ($0.12) $0.03 Fully diluted ($0.12) $0.03 Notes - (i) Depreciation of $248,997 for the nine months ended December 31, 1997 is included in product research and development costs. (ii) Revenue includes $5,224,689 of amounts billed in the nine months ended December 31, 1997 to parties outside Canada. Computer Modelling Group Ltd. Consolidated Statement of Changes in Financial Position (Unaudited) December 31, 1997 -------------------------------- Three months Nine months ended ended -------------------------------- Cash provided by (used for): Operations: Loss for the period ($299,526) ($1,236,518) Add (deduct): Depreciation 166,202 476,786 Deferred revenue (866,210) 1,034,394 ------------------------------------------------------------------------ Cash flow from operations (999,534) 274,662 Accounts receivable and accounts payable (406,016) (2,307,629) Prepaid expenses 9,562 29,193 ------------------------------------------------------------------------ (1,395,988) (2,003,774) Financing: Issue of common shares, net of issue costs of $1,052,417 (1,327) 9,947,582 Deferred revenue 305,003 408,255 Repayment of obligations under capital lease (62,269) (143,200) ------------------------------------------------------------------------ 241,407 10,212,637 Investments: Fixed asset additions (71,916) (608,430) Deferred charges (498,086) (1,553,397) ------------------------------------------------------------------------ (570,002) (2,161,827) ------------------------------------------------------------------------ Increase (decrease) in cash position (1,724,583) 6,047,036 Cash position, beginning of period 7,771,620 1 ------------------------------------------------------------------------ Cash position, end of period $6,047,037 $6,047,037 ------------------------------------------------------------------------ ------------------------------------------------------------------------