Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Kerm Yerman who wrote (9216)	2/24/1998 3:09:00 PM
From: Herb Duncan	Read Replies (9) \| Respond to of 15196

FIELD ACTIVITIES / Sands Petroleum AB: Drill Rig Mobilized to Falkland Islands TSE SYMBOL: SPB NASDAQ SYMBOL: SANPY FEBRUARY 24, 1998 VANCOUVER, BRITISH COLUMBIA--Sands Petroleum AB ("Sands") is pleased to announce that the "Borgny Dolphin" semi-submersible drilling rig has been mobilized from the North Sea and is expected to arrive in the Falkland Islands in early May. Several large, well-defined prospects exist on the Company's 6 blocks (Tranche F) offshore the Falkland Islands. The drilling rig will be shared with 3 other licence holders in the area. Sands' first of two exploration wells is expected to be spudded in October, 1998. The other 3 licence holders will drill their first wells ahead of Sands starting with Amerada Hess as soon as the rig arrives. Tranche F comprises an area of 1,600 square kilometres and is situated in the North Falkland Basin. Geologically, the North Falkland Basin is similar to the North Sea and is one of the few large sedimentary basins that has not yet been explored for oil. To date, the Company has acquired 2,625 line kilometres of existing seismic data and 1,600 line kilometres of new seismic data. Several potential reservoir sequences have been identified and include syn- rift sandstones of mainly Jurassic and Lower Cretaceous age; post- rift sandstones and reefal carbonates of Valanginian to Albian age; and others. Various source rock intervals are thought to be present in the Jurassic-Cretaceous sequence and modeling has shown these intervals to be mature for oil and gas. Numerous structures are present in the area including fault-bounded three-way dip-closed structures at the Jurassic and Lower Cretaceous levels. Sands holds a 100 percent interest in Tranche F.

To: Kerm Yerman who wrote (9216)	2/24/1998 9:42:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Gulfstream Resources reports 1st 3 months Results CALGARY, Feb. 24 /CNW/ - Gulfstream Resources Canada Limited - GUR, Toronto - recorded a profit of $2,724,631 or 5 cents per share for the three month period ended December 31, 1997. Income for the quarter is more than double the income level of $1,359,814 or three cents per share for the same period in the prior year. Per share calculations are based on 58,876,320 common shares outstanding for the first quarter of 1998 compared to 48,972,294 for the first three fiscal months of 1997. Financial results reflect payment of a 2 cent per share dividend on December 31, 1997, payable to shareholders of record on December 19, 1997. Gross revenues for the quarter totaled $11,255,166 compared to $6,384,693 for the same period in 1997. Expenses were $6,618,402 to the end of the quarter compared to $3,521,216 for the prior year period. Operating cashflow was $3,790,299 for the first quarter of 1998 compared to $1,078,894 for the first quarter of 1997. Expenditures on oil and gas interests totaled $14,977,616 compared to $9,477,482 for the three-month period in 1997. Cash at quarter-end was $34,606,717. Two additional production wells were brought on stream at Al-Rayyan offshore Qatar in late-November, 1997, increasing the number of producing wells in the field to six. Oil production from Al-Rayyan averaged 32 thousand barrels per day in December and 23 thousand barrels per calendar day for the quarter. No production was recorded from Al-Rayyan in the quarter ended December 31, 1996 as commercial production from the field did not begin until January 1, 1997. A Plan of Development for longer-term development of the Al-Rayyan field has been submitted to the Government of the State of Qatar. In Madagascar, a 320 kilometre seismic program was completed in late-November, 1997. Plans are underway to initiate seismic and drilling activity in Oman for 1998. Subsequent to December 31, the Company secured a $73 million, 3-year revolving credit facility with a consortium of international banks. The Annual General Meeting of Shareholders will be held in Calgary on March 24th at 3:00 PM in the Lakeview Room of the Westin Hotel.

To: Kerm Yerman who wrote (9216)	2/24/1998 9:46:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Merit Energy reports 1997 Results 1997 Highlights Exploration - Merit drilled 65.7 net (83 gross) wells resulting in 23.6 net oil wells, 30 net gas wells and 1.5 net service wells for an overall success rate of 84%. - 1997 activity resulted in net proved and probable reserve additions of 4,069 Mbbls of oil and liquids and 96.8 Bcf of natural gas or 13.7 million barrels of oil equivalents representing replacement of 1997 production by 11.2 times. - Finding costs inclusive of all additions and revisions on a cumulative basis was $5.66 per Boe proven and $4.12 per Boe proven and probable at December 31, 1997. Continuing with the Company's commitment to capital infrastructure, Merit spent $7,095,733 on facilities in 1997 compared to $6,691,591 in 1996. This spending represents 9.5 percent of the capital expenditures for 1997 (34% in 1996). - Finding and development costs inclusive of all additions and revisions on a cumulative basis was $6.71 per Boe proven and $4.88 per Boe proven and probable at December 31, 1997. - Undeveloped land increased 136 percent during 1997 to 187,096 net acres from 79,272 acres in 1996. Financial - 1997 revenue increased 446 percent to $18,893,424, compared to $4,240,782 in 1996, while funds from operations increased 585 percent to $11,358,248 ($0.52 per share) from $1,942,293 in 1996 ($0.17 per share). - Net earnings for the year ended December 31, 1997 were $4,426,587 ($0.20 per share) compared to $410,925 ($0.04 per share) in 1996. - Net capital expenditures amounted to $75,036,093 in 1997 compared to $19,448,710 in 1996. The capital program was financed by cash flow, bank debt and equity. At December 31, 1997 the Company's long term debt was $24.9 million compared to $5.5 million at December 31, 1996. Production - The Company achieved a 1997 exit production rate of 5,200 Boe per day, a 222 percent increase over the 1996 exit production rate of 1,614 Boe per day. - 1997 average natural gas production was 26.6 Mmcf per day up 269 percent from 7.2 Mmcf per day during 1996 and oil and liquids production was 678 Bbls per day up 434 percent from 127 Bbls per day in 1996. - Fourth quarter 1997 natural gas production averaged 44.9 Mmcf per day up 441 percent over the fourth quarter 1996 results of 8.3 Mmcf per day. - Fourth quarter 1997 oil and liquids production averaged 854 Bbls per day up 307 percent over the fourth quarter 1996 results of 210 Bbls per day. 1998 Update - Subsequent to December 31, 1997 Merit was successful in acquiring 2,000 barrels of oil equivalent per day and 275,000 net acres of land from Rigel Oil and Gas Ltd. The assets are located in Southwest Saskatchewan. An estimated 8.0 Mmcf per day of natural gas per day from the properties should come onstream in the second quarter of 1998. - Effective January 1, 1998, an alliance was formed with Gulf Canada Resources Ltd. which covers 420,000 acres in the Company's core East Central area of Alberta. As operator of the alliance, Merit will spend $20 million in net capital drilling 50 wells during 1998. The combination of Gulf's extensive seismic and land base and usage of Merit's processing facilities will allow the Company to maximize operating efficiencies in this key area. - Merit has drilled another 100% working interest discovery well in the Little Bow area of southern Alberta. Preliminary indications on this new pool discovery suggest the well will produce at rates of 4 Mmcf per day from the lower Mannville formation. Additional seismic data is being assembled to define offsets to this location. Merit has approximately 6,500 gross acres of undeveloped land in proximity to the discovery. Production tests are currently underway to prepare the well for tie-in. - In the Manitou area of western Saskatchewan, Merit has drilled a successful 100 percent step-out well in the McLaren formation. Tests indicate the new well will produce at 2 Mmcf per day. This well substantially increases Merit's gas reserves in the area. The Company plans additional drilling in the area on 18,000 net acres of offset lands. << 1997 Financial Results Year Ended December 31 1997 1996 % change ------------------------------ Financial Petroleum and natural gas sales, net $ 18,893,424 $ 4,240,782 346 Average product prices Natural gas ($/mcf) 1.72 1.39 24 Crude oil ($/bbl) 19.80 24.85 (20) Funds from operations 11,358,248 1,942,293 485 Per common share 0.52 0.17 206 Net earnings 4,426,587 410,925 977 Per common share 0.20 0.04 400 Capital expenditures 75,036,093 19,448,710 286 Long term debt $ 24,874,500 $ 5,503,709 352 ----------------------------------------------------------------------- Share Information 1997 1996 -------------------- Shares outstanding at December 31 27,375,053 14,501,604 Weighted average shares outstanding for the year 21,801,873 11,245,460 ----------------------------------------------------------------------- 1997 Operating Results Three Months ended Year ended December 31 December 31 1997 1996 1997 1996 ------------------------------------------- Production Natural gas (mcf/d) 44,875 8,263 26,632 7,169 Crude oil (bbls/d) 854 210 678 127 Total Boe/d 5,342 1,036 3,341 844 ------------------------------------------------------------------------ 1997 1996 --------------------- Reserves Crude oil and NGL (mbbls) Proven 2,832 899 Proven plus probable 5,262 1,440 Natural gas (bcf) Proven 100.9 28.4 Proven plus probable 130.8 43.1 Present Worth of Future Cash Flow Before Income Taxes Proven plus probable ($mm) Discounted at 10% $123.0 $34.9 Discounted at 15% $105.2 $28.4 The corporate reserves are reported at December 31, 1997 and prepared by McDaniels and Associates Ltd. ------------------------------------------------------------------------ 1997 1996 Drilling Activity Gross Net Gross Net -------------------------------------- Crude oil wells 37 23.6 4 3.2 Natural gas wells 31 30.0 3 2.2 Service wells 2 1.5 0 0 Dry holes 13 10.6 2 1.3 Total wells 83 65.7 9 6.7 Success rate 84% 84% 78% 81% ------------------------------------------------------------------------ Capital Expenditures 1997 1996 %change Finding Expenditures Land & lease $ 4,781,891 $ 500,300 856 Seismic 2,463,984 713,161 246 Drilling and completions 18,569,278 3,045,713 510 Property acquisitions 41,773,110 8,369,598 399 ------------------------ Total Finding Expenditures 67,588,263 12,628,772 435 Development Expenditures Facilities 7,095,733 6,691,591 6 Other 352,097 128,347 174 ------------------------ Total Development Expenditures 7,447,830 6,819,938 9 Total Finding and Development $ 75,036,093 $ 19,448,710 286 ------------------------------------------------------------------------ Cumulative 1997 1996 ----------------------------------- Reserve Additions and Finding Costs Capital Expenditures $96,749,351 $75,036,093 $19,448,710 Proven Net reserve additions (Mboe) 14,424 10,349 2,749 Finding costs ($/boe) $5.66 $6.53 $4.59 Finding & development costs ($/boe) $6.71 $7.25 $7.07 Proven plus probable Net reserve additions (Mboe) 19,833 13,747 4,226 Finding costs ($/boe) $4.12 $4.92 $2.99 Finding & development costs ($/boe) $4.88 $5.46 $4.60 >>

To: Kerm Yerman who wrote (9216)	2/24/1998 9:48:00 PM
From: Arnie	Respond to of 15196

EARNINGS / New Cache Petroleum reports 1997 Results CALGARY, Feb. 24 /CNW/ - A successful year of drilling and acquisitions resulted in proven and probable reserves increasing 113% from 9.6 million boe in 1996 to 20.6 million boe in 1997. Proven reserves rose from 6.9 million boe in 1996 to 15.1 million boe in the current year. Proven and probable gas reserves rose over five-fold to 117.1 Bcf in 1997, up from 22.4 Bcf recorded the previous year. Additions were from the acquisition of gas production at Doris, subsequent development and new pool discoveries at Mahaska and Nig Creek. New Cache replaced 1997 production by a factor of 11.6 times. A more balanced portfolio of reserves evolved in 1997 with gas comprising 57% while oil and liquids account for 43%. Comparatively, in 1996 gas made up only 23% of New Cache's reserve base. Finding and development costs of $6.75 per boe were achieved based on proven and 50% of probable reserves. The three year rolling average on this basis is $6.46 per boe. New Cache recorded a drilling success rate of 90% this past year, an improvement over the 78% tallied in 1996. The Company participated in 47 gross wells resulting in 24 gross (5.43 net) oil wells, 18 gross (12.33 net) gas wells and 5 gross (1.88 net) dry holes. The average participation interest was 42%. Combined oil and gas production increased 31% from an average 2,163 boepd in 1996 to 2,834 boepd for 1997. Gas production increased 183% to 10.305 mmcf/d in the 1997 fiscal year, up from 3.646 mmcf/d in 1996. Oil and liquids production was flat at 1,803 bopd relative to 1996. New Cache averaged 3,538 boepd during the fourth quarter of 1997 compared to 2,239 boepd in 1996. Oil and gas production was 1,930 bopd and 16.080 mmcf/d, respectively during the last quarter. The Company averaged in excess of 5,000 boepd in December, the first month of the new fiscal year. The Company invested a total of $71.5 million in 1997 with $43.7 million expended on producing property and corporate acquisitions and $27.8 million on conventional oil and gas drilling, land acquisitions, seismic and facilities. Cash flow increased from $9.703 million in 1996 to $10.112 million for 1997. Cash flow per share declined from $1.17 per share in 1996 to $0.99 per share for the year ended November 30, 1997. Delays in getting on new gas production from acquisitions at Doris and new discoveries at Mahaska and Nig Creek resulted in lower than expected cash flow for the year. Equity issued to finance the acquisitions had a dilutive effect on cash flow per share. Net income was $.384 million ($0.04 per share) in 1997 down from $2.110 million ($0.25 per share) recorded in the prior year. Net income was effected significantly by an increase in the deferred tax rate from 46% in 1996 to 78% for 1997 due to the lower tax basis associated with the acquisitions. However, New Cache has tax and resource pools of $76.5 million which allows full shielding of cash flow well into the future. Weighted average number of issued and outstanding shares were 10.190 million and 11.596 on a fully diluted basis for 1997. Cash flow for the fourth quarter of 1997 was $3.109 million ($0.26 per share) compared to $2.536 million ($0.28 per share) for the 1996 period. The Company recorded a net loss of $74,000 ($0.01 per share) in the fourth quarter of 1997. Comparatively, net income of $761,000 was recorded in 1996. As at November 30, 1997 New Cache had a total bank debt and working capital deficiency of $22.6 million representing a 1.25 debt to forward cash flow ratio. The Company had a working capital deficiency of $2.6 million and no long-term bank debt at the end of the previous year. New Cache currently has approximately 14.1 million common shares issued and outstanding.

To: Kerm Yerman who wrote (9216)	2/24/1998 9:52:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Plains Energy Services files Normal Course Issuer Bid CALGARY, Feb. 24 /CNW/ - Plains Energy Services Ltd. announces that it has filed with The Toronto Stock Exchange a notice of intention to make a normal course issuer bid to purchase up to a maximum of 1,000,000 Common Shares (5% of the outstanding Common Shares) over the next twelve months. Not more than 2% of the outstanding Common Shares will be purchased in any 30-day period. As of February 20, 1998 the Corporation had 20,994,855 Common Shares outstanding. The Common Shares will be purchased on the open market by George Gosbee of Newcrest Capital Inc., the Corporation's broker, from time to time through the facilities of The Toronto Stock Exchange. Common Shares purchased will be paid for with cash available in the Corporation's working capital. The normal course issuer bid will commence on February 26, 1998 and terminate on the earlier of the date on which the Corporation completes its purchases pursuant to the normal course issuer bid and February 25, 1999. The Corporation believes that the purchase of its Common Shares at recent market prices is a worthwhile investment and is in the best interests of the Corporation and its shareholders. The Corporation believes that recent market prices of its Common Shares do not properly reflect the underlying value of the Common Shares. All shares acquired by the Corporation will be cancelled immediately upon being repurchased.

To: Kerm Yerman who wrote (9216)	2/24/1998 9:55:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / T & H Resources updates Drilling Listed TSE - Symbol THE Shares Issued 30,094,210 TORONTO, Feb. 23 /CNW/ - T & H Resources Ltd. (T&H) is pleased to announce that the Winfield Ranch 17 No. 1-E Well, located near South Fort Stockton, Pecos County, Texas commenced drilling over the weekend. BayTech, Inc. of Texas is operator of the project. The primary drilling objective will be the Ellenburger Formation at 26,000 feet with the secondary objective being the Devonian Formation. The adjacent Gomez Field to the northwest has produced 4.7 trillion cubic feet (TCF) of gas of the 7 TCF of recoverable reserves while the adjacent McComb Field to the north has produced 50 billion cubic feet (BCF) of the 160 BCF of recoverable reserves and the Puckett Field 15 miles to the southeast has produced 3.8 TCF of the 5 TCF of recoverable reserves. T&H has paid 20% of the turnkey cost of the drilling and completion of one well to earn a 20% interest in the initial well and a 15% interest in the contract lands. T&H's interest in the initial well is subject to BayTech's 25% back-in after payout. Following payout of the initial well, T&H will have a 15% working interest in all subsequent operations in the entire leasehold of 5,280 gross acres (3,920 net acres). The Toronto Stock Exchange (''TSE'') has notified T&H that it must provide evidence satisfactory to the TSE by May 14, 1998 that it has entered into legally binding agreements so that, if completed, T&H will meet all the original listing requirements of the TSE. T&H is actively sourcing projects of merit in order to comply with the TSE listing requirements.

To: Kerm Yerman who wrote (9216)	2/24/1998 9:57:00 PM
From: Arnie	Respond to of 15196

ENERGY TRUSTS / Optus Natural Gas Distribution Income Fund CALGARY, Feb. 24 /CNW/ - OPTUS Natural Gas Distribution Income Fund announced today that it will make a monthly cash distribution of $0.1667 per trust unit on March 16, 1998 to unitholders of record on March 6, 1998. OPTUS Natural Gas Distribution Income Fund is a Toronto Stock Exchange listed (OPT.UN) income trust which through Direct Energy Marketing Limited is Canada's largest independent natural gas marketing company, currently distributing natural gas to more than 500,000 residential and small business customers in Ontario, Manitoba and Quebec. Direct Energy Marketing Limited supplies approximately 1.0 Bcf of gas per day to industrial, institutional and utility customers in North America. OPTUS has no external debt and a market capitalization of $240 million.

To: Kerm Yerman who wrote (9216)	2/24/1998 9:59:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Encal Energy Ltd reports 1997 Results CALGARY, Feb. 24 /CNW/ - Encal Energy Ltd. (TSE: ENL, NYSE: ECA) announces its operating and financial results for the year ended December 31, 1997. 1997 Highlights --------------- Production - 1997 production averaged 22,436 BOE per day compared to 17,803 BOE per day in 1996, an increase of 26% - Production during the fourth quarter averaged 24,855 BOE per day, an increase of 27% over the same period in 1996. - The exit production rate exceeded 26,000 BOE per day. - Approximately 10,500 BOE per day of new production was added at an average cost of below $15,000 per BOE per day. Exploration - Finding and development costs inclusive of all additions and revisions were $6.92/BOE proven and $5.46/BOE proven plus probable. - Net proven plus probable reserve additions amounted to 15.7 million barrels of crude oil and NGL and 132.1 billion cubic feet of natural gas or 28.9 million barrels of oil equivalent. - These reserve additions exceeded annual total production by a multiple of 3.5 times on a proven plus probable basis. - 85% of reserve additions were generated by the drilling program - 1997 was the most active year in Encal's history with the drilling of 181 gross wells resulting in 66 gas wells and 75 oil wells for an overall success rate of 78%. - Undeveloped land inventory for future exploration activity increased by 20% to 719,500 net acres. Financial - 1997 revenue increased 35% to $167.8 million compared to $124.3 million in 1996. - Funds from operations increased 27% to $84.1 million ($0.81 per share) from $66.2 million in 1996 ($0.64 per share). - Net earnings for the year ended December 31, 1997 were $13.0 million ($0.12 per share) compared to $11.5 million ($0.11 per share) in 1996. - Net capital expenditures totalled $157.6 million in 1997 compared to $109.3 million in 1996. The capital program was financed by cash flow, debt and proceeds from the sales of minor properties. - Net Asset Value per share increased 17% during 1997 to $5.08 per basic common share from $4.35 in 1996. - 1997 was another year where Encal improved its cost structure, with General and Administrative costs averaging $1.07 per BOE ($1.26 per BOE in 1996) and operating costs averaging $4.28 per BOE ($4.29 in 1996). << 1997 Financial Results ---------------------- ------------------------------------------------------------------------- Year Ended December 31 ($ thousands except per share amounts) 1997 1996 % Change --------------------------------- Financial Petroleum and Natural Gas Sales 167,846 124,294 +35 Average Product Prices Natural Gas ($/mcf) (after hedging losses) 1.87 1.61 +16 Crude Oil ($/bbl) (after hedging losses) 23.38 24.08 -3 Natural Gas Liquids ($/bbl) 21.45 20.72 +4 Funds from Operations 84,101 66,195 +27 Per Common Share Basic 0.81 0.64 +27 Fully Diluted 0.77 0.62 +24 Net Earnings 13,031 11,518 +13 Per Common Share Basic 0.12 0.11 +9 Fully Diluted 0.12 0.11 +9 Net Capital Expenditures 157,558 109,280 +44 Long Term Debt 143,414 64,046 +124 Total Debt (including Working Capital Deficiency) 153,823 79,007 +95 ------------------------------------------------------------------------- Share Information (thousands) Shares Outstanding at December 31 Basic 104,784 103,992 +1 Fully Diluted 110,577 109,922 +1 Weighted Average Shares Outstanding for the Year Basic 104,421 103,851 +1 Fully Diluted 110,334 108,111 +2 ------------------------------------------------------------------------- 1997 Operating Results ---------------------- ------------------------------------------------------------------------- Three Months % % ended Dec 31 Change Year Ended Dec 31 Change 1997 1996 1997 1996 --------------------------------------------------- Production Natural Gas (mcf per day) 137,981 120,306 +15 130,197 105,713 +23 Crude Oil (bbls per day) 8,180 5,447 +50 6,931 5,432 +28 Natural Gas Liquids (bbls per day) 2,877 2,068 +39 2,485 1,800 +38 Total (BOE per day) 24,855 19,546 +27 22,436 17,803 +26 ------------------------------------------------------------------------- 1997 1996 ------------------------- Reserves Crude Oil and NGL (mbbls) Proven 28,489 19,748 +44 Proven plus Probable 40,912 28,680 +43 Natural Gas (bcf) Proven 410 351 +17 Proven plus Probable 605 520 +16 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Present Value of Future Cash Flow Proven % Change Proven Plus Probable % Change ------ -------- -------------------- -------- 1997 1996 1997 1996 ---- ---- ---- ---- ($ Millions - Before Income Taxes) Discounted at 10% 537 411 +31 739 571 +29 Discounted at 15% 441 339 +30 589 456 +29 The corporate reserves are prepared by Gilbert Laustsen Jung Associates Ltd. as of January 1, 1998. ------------------------------------------------------------------------- ------------------------------------------------------------------------- 1997 1996 ---------------------------------- Drilling Activity Gross Net Gross Net ----- --- ----- --- Natural Gas Wells 66 39.9 49 33.3 Crude Oil Wells 75 47.3 54 24.9 Dry Holes 40 31.2 40 25.5 ---------------------------------- Total Wells 181 118.4 143 83.7 ---------------------------------- Success Rate (%) 78 74 72 70 ------------------------------------------------------------------------- 1997 1996 ------------------------------ Net Capital Expenditures ($ thousands) Land and Lease 18,013 20,581 Seismic 8,880 7,339 Drilling and Completions 72,996 41,129 Property Acquisitions 56,470 24,645 Property Dispositions (40,161) (12,343) ------------------------------ Total Finding Expenditures 116,198 81,351 Facilities 38,887 26,071 Miscible Fluid and Other 2,473 1,858 ------------------------------ Total Finding and Development Expenditures 157,558 109,280 ------------------------------ ------------------------------------------------------------------------- Cumulative 1995-1997 1997 1996 1995 ------------------------------------- Reserve Additions and Finding Costs Net Capital Expenditures ($ thousands) 307,249 157,558 109,280 40,411 Proven Net Reserve Additions (mBOE) 43,447 22,754 13,927 6,766 Finding Costs ($/BOE) 5.14 5.11 5.84 3.83 Finding and Development Costs ($/BOE) 7.07 6.92 7.85 5.97 Proven Plus Probable Net Reserve Additions (mBOE) 51,435 28,876 14,941 7,618 Finding costs ($/BOE) 4.34 4.02 5.44 3.40 Finding and Development Costs ($/BOE) 5.97 5.46 7.31 5.30 ------------------------------------------------------------------------- >>

To: Kerm Yerman who wrote (9216)	2/24/1998 10:03:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Enertec Resource Services files Noraml Course Issuer Bid CALGARY, ALBERTA - ENERTEC RESOURCE SERVICES INC. (''ENERTEC'' or ''the Company'') announced today that it has received approval from the Toronto Stock Exchange to make a Normal Course Issuer Bid to purchase its common shares. ENERTEC has allocated an initial amount of up to $500,000 to acquire its common shares outstanding. The Company will consider the allocation of additional funds to this bid after assessing the success of purchases made in terms of the initial allocation. However, the Company's purchase of its common shares will not exceed 447,195 common shares, the maximum number permissible pursuant to the rules of The Toronto Stock Exchange governing normal course issuer bids. As of the date hereof, 7,290,182 common shares of ENERTEC are issued and outstanding. The public float consists of 4,471,949 common shares. ENERTEC believes that the trading price of its common shares at the current time is below the value represented by its underlying business operations. Shares will be purchased on the open market through the facilities of The Toronto Stock Exchange pursuant to the rules of the exchange governing normal course issuer bids. The price that the Company will pay for any shares purchased will be the prevailing market price of such shares on The Toronto Stock Exchange at the time of such purchase. After they are purchased back by the Company pursuant to the bid, the common shares will be cancelled. The bid will commence on February 26, 1998 and will terminate on February 25, 1999 or such earlier time as the bid is completed or terminated at the option of the Company. ENERTEC operates throughout North America providing land seismic data acquisition and processing services and marine geophysical and navigation services.

To: Kerm Yerman who wrote (9216)	2/24/1998 10:10:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Lexxor Energy updates Activity CALGARY, Feb. 24 /CNW/ - LEXXOR ENERGY INC. (100%) has recently acquired drilling rights encompassing 22 sections of acreage (14,000 acres) along a productive Mississippian gas trend in the South Haro area of northwestern Alberta. Six exploratory locations have been delineated by the Company and industry competitors have recently licensed 9 exploratory wells adjacent to and on trend with Lexxor's acreage. Lexxor has surveyed the 6 locations, with drilling dictated by rig availability and seasonal access. Lexxor is also proceeding with plans to tie-in two recently drilled gas wells adding approximately 800 mcf/d (80 BOE/D) to the Company's production base. The wells, a new pool discovery at Michel/Cardiff near Edmonton (Lexxor 50%) and at Conroy in north east British Columbia (Lexxor 15%) are expected to be on stream in March. Lexxor has also announced that its Plover Lake, Saskatchewan heavy oil pool has been shut-in temporarily. The Bakken Sand reservoir, which has production capability in excess of 300 BOPD (150 BOPD net) will be brought into production when heavy oil prices recover. Lexxor's first quarter exit rate, excluding heavy oil, is expected to be approximately 450 BOE/D of which 70 per cent is natural gas production. First quarter activity has focused on the generation of new Alberta prospects by an expanded exploration group. Lexxor is planning an active drilling program following spring breakup focusing on natural gas targets in central and northwestern Alberta and light oil plays in the south central part of the province utilizing $2 million in proceeds from a December, 1997 private placement of flow through shares. Lexxor Energy Inc. is a Calgary-based oil and gas exploration company which trades on The Alberta Stock Exchange, symbol LXX.A.

To: Kerm Yerman who wrote (9216)	2/24/1998 10:14:00 PM
From: Arnie	Respond to of 15196

GENERAL INTEREST / NEB Sets Hearing for AEC Suffield Pipeline CALGARY, Feb. 24 /CNW/ - The National Energy Board has set down for public hearing an application by AEC Suffield Gas Pipeline Inc. (AEC Suffield) of Calgary to construct and operate a natural gas pipeline from southeastern Alberta to southwestern Saskatchewan. The hearing will commence on Monday, 25 May 1998 at a location to be announced at a later date. Interventions are due by Thursday, 19 March 1998. The company is applying to construct approximately 114 kilometres (71 miles) of new pipeline and associated control facilities which will begin near the southwestern corner of the Suffield Military Block in Alberta, extend along the southern end of the military block and then northeast to join the TransCanada PipeLines Limited system near Burstall, Saskatchewan. The AEC Suffield pipeline will have a design capacity of approximately 5.67 million cubic metres (200 million cubic feet) of natural gas per day. The estimated capital cost of the project is $26.2 million. AEC Suffield is planning an in-service date of 1 November 1998. For a copy of Hearing Order GH-2-98: Publications Officer Ground Floor 311 Sixth Avenue S.W. Calgary, Alberta T2P 3H2 (403) 299-3563 This news release is available on the Board's internet site at www.neb.gc.ca.

To: Kerm Yerman who wrote (9216)	2/24/1998 10:16:00 PM
From: Arnie	Respond to of 15196

ENERGY TRUSTS / EnerMark Income Fund announces Annual General Meeting CALGARY, Feb. 24 /CNW/ - EnerMark Income Fund (the ''Fund'') hereby gives notice that March 27, 1998, has been fixed as the Record Date for determination of those Unitholders entitled to receive notice and to vote at the Annual General Meeting of the Fund to be held in the Conference Room B, Plus 30 Level of the Western Canadian Place, 700 - 9th Avenue S.W., in Calgary, Alberta, commencing at 11:00 a.m. on May 7, 1998.

To: Kerm Yerman who wrote (9216)	2/24/1998 10:20:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Sharon Energy Drilling Update Tuesday February 24, 6:58 pm Eastern Time Sharon Energy Announces Initial Production Rate of New Discovery Well and Additional Drilling Plans in Merlin 3-D Gas Project, Glenn County, California ENGLEWOOD, Colo., Feb. 24 /PRNewswire/ -- Sharon Energy Ltd.(SHY/VSE) announced today that the Henning #1-15 well was placed on production February 17, 1998. Production during the first week was stabilized at a restricted rate averaging 1,200 MCFD from one Cretaceous Forbes zone with perforations from 5565-68. The Henning #1-15 well is located in Section 15, T21N-R2W, Glenn County, California. The Henning well is the fourth well drilled in Sharon's Merlin 3-D Gas Project, and the second new pool discovery completed for production. Several additional zones remain to beperforated in the well once production testing has been completed on the initial zone. Equity Oil of Salt Lake City, Utah, is the operator of the Merlin Prospect in which Sharon has a 20% working interest. Sharon further reports that it has received a proposal for a fifth well in the Merlin 3-D Gas Project from Equity. The Otto Loshe #1-22 will also target the Cretaceous Forbes and is scheduled for drilling later this spring in Section 22, T21N-R2W with a projected total depth of 5,665'. Sharon Energy Ltd. is an oil and gas exploration and production firm headquartered in Englewood, Colorado, with gas properties in California. Sharon specializes in the application of high-resolution 2-D and 3-D seismic to reduce exploration risk and enhance development opportunity.

To: Kerm Yerman who wrote (9216)	2/24/1998 10:22:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Ranger Oil Ltd reports 1997 Results CALGARY, Feb. 24 /CNW/ - Ranger Oil Limited announced today its 1997 Financial and Operating results. Highlights include the following: - Total proven and probable reserves increased 125 percent, from 174 to 392 million barrels of oil equivalent (BOE) - Additions to proven and probable conventional oil and gas reserves from extensions, discoveries and revisions replaced 250 percent of 1997 production - Oil production increased 32 percent - ELAN Energy Inc. acquired September 29, 1997 - Shares in issue increased 27 percent broadening the shareholder base - Substantial additional acreage acquired in West Africa and West of Shetlands - Two potentially high impact wells in the Northwest Territories currently testing ''1997 was a year of building foundations,'' said Ranger President and Chief Executive Officer, Fred Dyment. ''In North America, the ELAN acquisition has added a new heavy oil division with a tremendous resource base as well as tripling light oil production. North Sea reserves have increased 25 percent and significant production growth will follow later this year. Exciting new exploration and exploitation opportunities have been added in West Africa and West of the Shetlands. Together, these achievements position Ranger for continued growth over the next five years.'' PRODUCTION Oil production increased 32 percent to 38,403 barrels per day. The acquisition of ELAN in the fourth quarter contributed 7,632 barrels per day to annual average production. North Sea oil production increased 12 percent to 26,863 barrels per day with the benefit of a full year's production from the Ninian area acquisition in October 1996. Gas production declined slightly from 170 to 165 million cubic feet per day in 1997. Non-core property sales and normal reservoir declines in Canada were responsible for the decrease. FINANCIAL RESULTS Total revenues were US$351 million compared to US$299 million for 1996. Oil prices fell 15 percent averaging US$17.43 per barrel, down from US$20.49 in 1996. This reflected lower world prices as well as the addition of a heavy oil component in the fourth quarter of 1997. Gas prices increased 18 percent, averaging US$1.70 per thousand cubic feet in 1997. Higher prices in North America accounted for the increase. Operating expenses increased 39 percent to US$124 million in 1997. On a unit-of-production basis costs were US$5.93 per barrel of oil equivalent compared to US$5.14 in 1996. The increase reflects the greater proportion of production coming from high cost producing fields in the northern North Sea and Northeast British Columbia. Interest charges increased to US$16 million from US$9 million in 1996. Higher average debt levels associated primarily with the ELAN Acquisition accounted for the increase. Funds Generated from Operations before tax were US$195 million, compared to US$190 million in 1996. Current Income Taxes increased from US$1 million to US$11 million in 1997. The North Sea accounted for most of the increase, with taxable revenues in 1996 being sheltered from income tax by deductions brought forward from previous years. Current North Sea Petroleum Revenue Taxes fell from US$44 million to US$38 million as a result of lower oil prices. Funds Generated after tax were US$146 million (US$1.38 per share) compared to US$144 million (US$1.46 per share) in 1996. Depletion and depreciation charges increased to US$131 million compared to US$123 million in 1996. Higher production volumes were responsible for the increase. On a unit of production basis, oil and gas depletion fell from US$6.41 to US$5.85 per BOE. During 1997 the Company also wrote-off US$8.8 million of unsuccessful exploration costs primarily in Algeria. Earnings before tax were US$54 million compared to a loss of US$14 million in 1996. The loss in 1996 reflected a US$71 million write-down in Angola. Earnings after tax amounted to US$9 million (US$0.09 per share) compared to a loss of US$56 million (US$0.57 per share) in 1996. ELAN ACQUISITION Effective September 29, 1997 Ranger acquired ELAN Energy Inc. The purchase consideration of US$517 million included 26.7 million new Ranger shares and US$276 million of additional debt. Proven and probable reserves acquired amounted to 214 million BOE, of which 179 million BOE represented heavy oil. At year end proven and probable reserves, primarily at Cold Lake, were revised downwards by 16 million barrels, mainly due to the decline in heavy oil prices. Average daily production in the fourth quarter of 1997 from ELAN amounted to 8,855 barrels of light oil, 21,424 barrels of heavy oil and 9 million cubic feet of gas. Heavy oil operating costs averaged US$4.87 per barrel. Since the acquisition approximately 2,000 barrels of daily production has been shut-in in response to declining world oil prices and widening differentials between heavy and light oil. Ranger acquired ELAN's heavy oil business on the basis of adding long-term value for shareholders. Notwithstanding the recent weakness in commodity prices, the Company remains confident of the long-term future for heavy oil in Canada. OIL AND GAS RESERVES Including the ELAN acquisition, total proven and probable reserve additions in 1997 amounted to 238 million BOE. The North Sea accounted for 37 million BOE of additions, reflecting new field developments at Kyle and Columba E, upward revisions for Pierce, Columba B, and Columba D, and the acquisition of further Anglia field gas reserves. In Angola, 8 million BOE was added in respect of the Kiame oil field development. Proven and probable reserves at year-end amounted to 392 million BOE, an increase of 125 percent from 1996. Based on annualized fourth quarter production volumes, the Company's proven and probable reserve life index increased to 13.7 years (9.6 years for proven). Finding, development and net acquisition costs for additions to proven and probable reserves in 1997 amounted to US$4.25 per BOE for conventional reserves and US$1.98 per BOE for heavy oil reserves. CAPITAL EXPENDITURES Excluding the ELAN acquisition, net capital expenditures in 1997 amounted to US$128 million. Exploration expenditures of US$93 million included US$42 million in North America, US$16 million in the North Sea and US$35 million for International, mainly Angola. Development expenditures of US$95 million were concentrated in the North Sea (US$50 million) and Canada (US$36 million). Property acquisitions of US$21 million were in the North Sea while property dispositions of US$78 million were in Canada North America Exploration well P-66 was spudded in January 1997 on a large potential gas prospect in the Fort Liard area of the Northwest Territories. In the Fort Norman area an exploration well has been drilled at Nota Creek. Both wells are currently being tested and results are expected shortly. In addition, two new wells have recently spudded in the Fort Norman area. In March 1997, the Company was successful bidder on 11 offshore Blocks in the US Gulf of Mexico. Seismic evaluation has been carried out and the first exploration well drilled, unsuccessfully. A second well has recently spudded on West Cameron Block 478. Disposition proceeds of US$50 million resulted from an alliance between the Company and Chesapeake Energy Corporation. Under the alliance, Chesapeake purchased 40 percent of Ranger's interest in the Helmet area of Northeastern British Columbia, outside of the July Lake pool, and future operations in the area will be conducted on a 60/40 basis. Other dispositions included non-core heavy oil properties and the Company's ownership interest in the proposed Alliance gas pipeline. North Sea Significant development activity occurred during the year. The Banff and Pierce oil fields were moved towards full-scale production in late 1998 and an additional 20 percent of Kyle was acquired doubling the Company's interest in this oil field satellite development. Infill drilling progressed at several fields with an important horizontal sidetrack successfully completed in the Anglia gas field. Two unsuccessful exploration wells were drilled in 1997, one an appraisal of the Selkirk oil discovery and the other a farm-in well on Block 20/10b. A well is currently drilling on Block 44/17a in the Southern gas basin. In a mini-round award, Ranger acquired a 17.5 percent interest in Blocks 204/14 and 15 West of the Shetlands. This highly prospective acreage is adjacent to the Suilven oil discovery announced by BP earlier in 1997. Drilling of a possible Suilven extension as well as a separate exploration prospect is planned in 1998. International During 1997 approval was received for Ranger's first International development, the 8 million barrel Kiame oil field in Angola. The field is owned (100 percent) and operated by the Company. Elsewhere in West Africa, Ranger acquired a 24 percent interest in and became operator of Block CI-26 in the C“te d'Ivoire containing the previously relinquished Espoir oil field. Plans to develop this 100 million BOE field are currently under consideration. Exploration wells were drilled during the year in Angola (three), Ecuador and Algeria. All were unsuccessful. Further drilling on Angola Block 4 and Ecuador Block 19 is planned for later this year or early 1999. New exploration licenses have been acquired in Angola deepwater (Block 19), the C“te d'Ivoire (Blocks CI-26, CI-101, 102 and 103) and Peru (Block Z-29). First drilling on each of these substantial tracts is anticipated in 1999. Several giant oil fields have been discovered in the Angolan deepwater over the past year. FINANCING As a result of the ELAN acquisition, total long-term debt, less net current assets, increased to US$423 million at year-end. This represents a debt to cash flow ratio of 2.6, based on the annualized fourth quarter cash flow. The ratio should fall below 2.0 as new production and cash flow comes on stream in the North Sea and Angola. During 1997 the Company's previous short-term bank facilities were replaced with a US$425 million syndicated credit agreement. It is expected that a portion of this will be refinanced in 1998 with fixed-rate long-term notes. A prudent financial position is a key corporate objective and the Company remains committed to maintaining a strong balance sheet. Issued by: F. J. Dyment President and Chief Executive Officer << SUMMARY (millions of US dollars, except prices and per share amounts) Three Months Year Ended Ended December 31, December 31, 1997 1996 1997 1996 ------------------------------------------------------------------------ FINANCIAL Revenues $ 110.9 $ 108.2 $ 351.0 $ 299.0 Funds generated from operations before tax $ 55.7 $ 70.7 $ 194.9 $ 189.8 Funds generated from operations $ 40.9 $ 51.1 $ 145.9 $ 144.1 Earnings (loss) before tax $ 16.7 $ (38.5) $ 53.8 $ (14.0) Earnings (loss) $ 3.9 $ (60.5) $ 9.1 $ (55.8) Per common share Funds generated from operations $ 0.32 $ 0.52 $ 1.38 $ 1.46 Earnings (loss) $ 0.04 $ (0.62) $ 0.09 $ (0.57) Dividends $ - $ - $ 0.08 $ 0.08 Capital expenditures, net $ (0.8) $ 100.4 $ 644.8(x)$ 179.4 (x)Includes acquisition of ELAN for $517.0 million effective September 29, 1997. AVERAGE PRICES Crude oil and natural gas liquids (per barrel) North Sea $ 18.77 $ 23.58 $ 19.19 $ 20.95 North America - Conventional $ 18.20 $ 20.88 $ 18.17 $ 18.35 - Heavy $ 7.87 $ - $ 7.87 $ - ------------------------------------------------------------------------- Weighted Average $ 14.67 $ 23.24 $ 17.43 $ 20.49 ------------------------------------------------------------------------- Natural gas (per thousand cubic feet) North Sea $ 3.09 $ 3.52 $ 3.14 $ 3.19 North America $ 1.66 $ 1.57 $ 1.51 $ 1.26 ------------------------------------------------------------------------- Weighted Average $ 1.85 $ 1.70 $ 1.70 $ 1.44 ------------------------------------------------------------------------- DAILY PRODUCTION, BEFORE ROYALTIES Crude oil and natural gas liquids (barrels) North Sea 24,850 35,488 26,863 24,067 North America - conventional 12,471 5,053 6,140 5,151 - heavy oil 21,424 - 5,400 - ------------------------------------------------------------------------- 58,745 40,541 38,403 29,218 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Natural gas (million cubic feet) North Sea 24.6 10.9 19.5 16.3 North America 154.0 151.6 145.6 154.0 ------------------------------------------------------------------------- 178.6 162.5 165.1 170.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- OIL AND GAS RESERVES Proved and probable Conventional Reserves Heavy (millions of barrels North North Oil of oil equivalent) America Sea Angola Total Reserves TOTAL ------------------------------------------------------------------------- Reserves January 1, 1997 68.9 105.5 - 174.4 - 174.4 Purchases 37.2 6.9 - 44.1 178.5 222.6 Extensions, discoveries and revisions 7.3 30.3 8.5 46.1 (15.6) 30.5 Sales (11.9) (0.4) - (12.3) (3.1) (15.4) Production (7.5) (11.0) - (18.5) (2.0) (20.5) ------------------------------------------------------------------------- Reserves December 31, 1997 94.0 131.3 8.5 233.8 157.8 391.6 ------------------------------------------------------------------------- These amounts include Ranger's fields in production or approved for development. They do not include an additional 50 million BOE of reserves attributable to potential field developments and extensions in the North Sea and C“te d'Ivoire. Gas is converted to oil at 6, 8 and 10 to 1 for the North Sea, U.S.A. and Canada, respectively. CONSOLIDATED BALANCE SHEET (millions of US dollars) December 31, December 31, 1997 1996 ------------------------------------------------------------------------- ASSETS Current Assets Cash $ 22.4 $ 14.6 Accounts receivable 109.2 93.0 ------------------------------------------------------------------------- 131.6 107.6 Property, Plant and Equipment 1,237.6 729.7 ------------------------------------------------------------------------- $ 1,369.2 $ 837.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES Current Liabilities Bank loans $ - $ 71.4 Accounts payable and accrued liabilities 82.7 72.6 Royalties payable 13.7 13.9 Tax payable 16.1 18.3 Current portion of long-term debt 15.1 - ------------------------------------------------------------------------- 127.6 176.2 Long-Term Debt 427.0 100.0 Deferred Credits 5.3 - Future Site Restoration 75.9 58.7 Deferred Tax 88.0 93.0 SHAREHOLDERS' EQUITY Capital Stock Authorized Preferred and common shares without par value in unlimited number Issued Common shares (thousands) 125,864 (1996 - 98,971) 528.3 293.5 Retained Earnings 117.1 115.9 ------------------------------------------------------------------------- 645.4 409.4 ------------------------------------------------------------------------- $ 1,369.2 $ 837.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF EARNINGS (millions of US dollars, except per share amounts) Three Months Year Ended Ended December 31, December 31, 1997 1996 1997 1996 ------------------------------------------------------------------------ REVENUES Oil and gas revenue $ 109.8 $ 112.2 $ 346.9 $ 309.1 Royalties (14.3) (11.5) (43.6) (36.6) ------------------------------------------------------------------------ 95.5 100.7 303.3 272.5 Transportation and processing 9.9 9.6 37.9 27.9 Other 5.5 (2.1) 9.8 (1.4) ------------------------------------------------------------------------ 110.9 108.2 351.0 299.0 EXPENSES Operating 38.6 31.1 123.7 89.2 General and administrative 3.5 3.7 10.6 10.6 Interest 6.9 2.8 15.5 9.4 Depletion and depreciation 41.3 33.8 130.9 123.2 International asset write-downs 2.2 72.7 8.8 73.6 Future site restoration 1.7 2.6 7.7 7.0 ------------------------------------------------------------------------ 94.2 146.7 297.2 313.0 ------------------------------------------------------------------------ EARNINGS (LOSS) BEFORE TAX 16.7 (38.5) 53.8 (14.0) TAX Petroleum Revenue Tax 8.2 12.5 29.7 19.4 Income tax 4.6 9.5 15.0 22.4 ------------------------------------------------------------------------ 12.8 22.0 44.7 41.8 ------------------------------------------------------------------------ EARNINGS (LOSS) $ 3.9 $ (60.5) $ 9.1 $ (55.8) ------------------------------------------------------------------------ ------------------------------------------------------------------------ Weighted average number of common shares outstanding (millions) 125.9 98.9 106.0 98.7 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Earnings (loss) per common share, basic and fully diluted $ 0.04 $ (0.62) $ 0.09 $ (0.57) ------------------------------------------------------------------------ ------------------------------------------------------------------------ CONSOLIDATED STATEMENT OF CHANGES IN CASH (millions of US dollars) Year ended December 31, 1997 1996 ------------------------------------------------------------------------ OPERATING ACTIVITIES Earnings (loss) $ 9.1 $ (55.8) Non cash items: Depletion and depreciation 130.9 123.2 International asset write-downs 8.8 73.6 Future site restoration 7.7 7.0 Deferred tax (4.3) (3.9) Other (6.3) - ------------------------------------------------------------------------ Funds generated from operations 145.9 144.1 Changes in non-cash working capital 45.0 (7.2) ------------------------------------------------------------------------ Cash provided by operating activities 190.9 136.9 ------------------------------------------------------------------------ FINANCING ACTIVITIES Long-term debt 349.4 50.0 Common shares issued 234.7 2.1 Common share dividends (7.9) (7.9) ------------------------------------------------------------------------ Cash provided by (used for) financing activities 576.2 44.2 ------------------------------------------------------------------------ INVESTING ACTIVITIES Property, plant and equipment (188.5) (153.5) Corporate acquisition (517.0) - Property acquisitions (21.3) (71.3) Proceeds on sales of property and equipment 77.8 45.4 Proceeds on sale of investments(net) 4.2 - Changes in non-cash working capital (43.1) 6.7 ------------------------------------------------------------------------ Cash used for investing activities (687.9) (172.7) ------------------------------------------------------------------------ INCREASE IN CASH 79.2 8.4 Cash position, beginning of period (56.8) (65.2) ------------------------------------------------------------------------ Cash position, end of period $ 22.4 $ (56.8) ------------------------------------------------------------------------ ------------------------------------------------------------------------ Cash is net of current bank loans >>

To: Kerm Yerman who wrote (9216)	2/24/1998 10:27:00 PM
From: Arnie	Respond to of 15196

ACQUISITION / Tessex Energy Inc. enters into Letter of Intent Tessex Energy Inc. (Tessex) is pleased to announce that it has entered into a Letter of Intent relative to a Plan of Arrangement with Encounter Energy Inc., a privately held oil and gas company. The effective share ratio for the transaction will be 1.67 shares of Tessex for each Encounter share. Subsequent to a one for three share consolidation, the new Company will have 14,174,779 shares issued and outstanding and 18,705,720 shares on a fully diluted basis. In connection with the combination, the current officers of Tessex will resign and be replaced with the current officers of Encounter: John H. Carruthers as Chairman and CEO, Paul L. Mitchell as President, C.A. (Butch) Bauer as V.P. Engineering and Donald C. Ross as V.P. Finance and Chief Financial Officer. All of these individuals have extensive oil and gas experience in both private and public companies. John Carruthers was the founder and president of Lorrac Energy Ltd. which was merged in 1996 to form Tethys Energy Inc. Paul Mitchell was a founder and V.P. Exploration of Amber Energy Inc. until his resignation in late 1996. Don Ross was a founder of Amber Energy Inc. and Intensity Resources Ltd. and has held a number of senior finance positions within the oil and gas industry. Butch Bauer was the founder and president of Maxon Energy Inc. which was sold in 1995 to Neutrino Resources Inc. The current president of Tessex, Mr. Bill Wilson, will retire. The new Company will operate under the name of Encounter Energy Inc. The Board of Directors of Tessex (Encounter) will be reconstituted by the addition of three (3) new board members: John H. Carruthers, Paul L. Mitchell and William S. Maslechko. John A. Tessari and Robert J. Tessari will remain on the Board of Directors. The new company will be positioned for rapid growth with over $7.0 Million working capital and a current annualized cashflow of approximately $2.5 Million. Current production is 625 BOED which is anticipated to increase to 800 BOED over the next several months. The combination is subject to formal documentation, satisfactory due diligence review, receipt of all required regulatory approvals and approval of the shareholders of each of Tessex and Encounter. A special meeting of the shareholders of each Tessex and Encounter will be held in April, 1998 to approve the combination. The shares of Tessex are listed on the Alberta Stock Exchange and trade under the symbol of TES.A. "Wilfred Wilson", President For further information, please contact: Wilfred J. Wilson, President, Tessex Energy Inc., 950, 717 7th Avenue S.W. Calgary, Alberta T2P 0Z3, Telephone: 403-266-2651. John H. Carruthers, 403-261-7176 or Paul L. Mitchell 403- 261-7177, 1940, 540 5th Avenue S.W. Calgary, Alberta T2P 0M2