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

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To: Kerm Yerman who wrote (9434) 3/5/1998 5:08:00 PM From: Kerm Yerman   Respond to of 15196   SERVICE SECTOR / American Eco Corp. Records Fifth Straight Year of Increased Earnings and Revenues AMERICAN ECO CORPORATION CBOE Symbol: EOQ TSE SYMBOL: ECX NASDAQ SYMBOL: ECGOF BERLIN SYMBOL: AEOGR MARCH 5, 1998 HOUSTON, TEXAS--American Eco Corporation announced that net income increased 99% to US$17.4 million or US$1.08 basic earnings per share for the year ended November 30, 1997 compared to US$8.8 million or US$0.81 basic earnings per share for the year end 1996. The Company's revenues grew 84% to US$220.5 million in fiscal 1997 compared to US$119.5 million in fiscal 1996. Michael E. McGinnis, Chairman, President and Chief Executive Officer of American Eco, stated "1997 marks the fifth straight year that our company has achieved increased revenues and net income. As part of our strategic plan, which was implemented in fiscal 1997 we will be focusing the Company's resources on increasing our industrial services and specialty fabricating business segments. This strategic focus, which led to the divestiture of certain of our environmental business units, contributed to our record performance in fiscal 1997. We will continue to work on gaining the confidence of our customers while we implement our strategic plan which will provide for improved shareholder value in 1998 and beyond." FISCAL YEAR COMPARISON (US Dollars): Results have been presented according to Canadian Generally Accepted Accounting Principles 1997 1996 Percent Change ---------- ------------ --------- $220,478,000 Revenue $119,529,000 84 Percent $19,264,000 Income Before Tax $7,954,000 142 Percent $(1,829,000) Income Taxes $809,000 N/A $17,435,000 Net Income $8,763,000 99 Percent 16,218,034 Weighted Average 10,846,516 50 Percent Shares $1.08 Basic EPS $0.81 33 Percent 4th QUARTER COMPARISON (US Dollars): 4thQ - 1997 4thQ - 1996 Percent Change ---------- ------------ --------- $70,703,000 Revenue $29,056,000 143 Percent $6,094,000 Income Before Tax $1,682,000 262 Percent $(1,176,000) Income Taxes $ 809,000 N/A $4,918,000 Net Income $2,491,000 97 Percent 19,415,376 Weighted Average Shares 13,693,802 42 Percent $0.25 Basic EPS $0.18 39 Percent

To: Kerm Yerman who wrote (9434) 3/5/1998 5:12:00 PM From: Kerm Yerman   Respond to of 15196   SERVICE SECTOR / Crew Development Corp. Grants Stock Options to Employees CREW DEVELOPMENT CORPORATION PACIFIC EXCHANGE SYMBOL: CRU TSE, VSE SYMBOL: CRU FRANKFURT SYMBOL: KNC MARCH 5, 1998 VANCOUVER, BRITISH COLUMBIA--Crew Development Corp. announces that it has granted a total of 120,000 stock options to employees. Subject to regulatory approval, the exercise price shall be $2.70 per share and the options may be exercised up to March 5, 2003. "Peter D. Barnes", Chief Financial Officer This News Release was prepared by the Board of Directors on behalf of Crew Development Corp. which is solely responsible for its contents.

To: Kerm Yerman who wrote (9434) 3/5/1998 5:17:00 PM From: Kerm Yerman   Respond to of 15196   SERVICE SECTOR / IPSCO Inc. - Global Warming - 'Scam of the Century' IPSCO INC. TSE, ASE, NYSE SYMBOL: IPS MARCH 5, 1998 REGINA, SASKATCHEWAN--In a hard hitting speech delivered today to the Saskatoon Chamber of Commerce, Roger Phillips, President and Chief Executive Officer of IPSCO Inc., a Physicist and a Fellow of the Institute of Physics, stated that people who subscribe to the popular view of global warming have fallen victim to the scam of the century. "Although there are many reasons to doubt that significant global warming is occurring at all," Phillips says, "assuming that the fear mongers are right and it is occurring, the result will be that in the year 2100 average temperatures in Saskatoon will have increased to the level that Estevan is at today - No Big Deal!" Phillips went on to point out that the recent commitments Canada made in Kyoto will cost Canadians substantially in the form of a reduced standard of living for a problem that may not be real and, at worst, is probably less severe than predicted. "The six percent reduction from 1990 levels agreed to in Kyoto really turns into a need to reduce per capita energy consumption by 27 percent by 2010 once you have factored in expected population growth and the fact that 1990 was an unusually low year for energy consumption because of the recession." Phillips added, "This means things like less driving, lower industrial activity with fewer jobs, less use of home appliances, furnaces, and air conditioners." He explains this conclusion by pointing out "Cutting back industry will not solve the problem because industry only generates twenty percent of the emissions. Canadians were never told the real story before Kyoto and now are victims of the scam of the century." Phillips then proposed a different approach to the situation, "First, sign up all countries to a new pact governing new and replacement industrial technology which would require such investments to be based on the best available energy conserving technology. This makes sense for reasons other than climate control and should not be offensive to developing countries. In and of itself it would be almost as effective as Kyoto. Second, continue scientific study with respect to Global Warming. If in ten years the science is proved up and fossil fuel consumption is still rising, then implement further emission controls. Technology developed in the interim will lessen the cost of emission reductions."

To: Kerm Yerman who wrote (9434) 3/5/1998 5:25:00 PM From: Kerm Yerman   Respond to of 15196   FIELD ACTIVES / Pan East Petroleum Updates Activity in Northeast British Columbia. PAN EAST PETROLEUM CORP. TSE SYMBOL: PEC MARCH 5, 1998 CALGARY, ALBERTA-- Midwinter (Located 300 miles North of Fort St. John) Pan East, as operator, has recently drilled, completed and tested the first of a three well horizontal drilling program. The first well flow tested at rates up to 17 Mmcf per day during drilling of a 700 meter (2,300 feet) horizontal section in the Jean Marie Formation. Production is expected to commence within the next two weeks at between 5 to 6 Mmcf per day. The second well is cased with the horizontal section being drilled next week, using under-balanced technology, and the third well is currently drilling and will be completed by mid March. Pan East has a 50 percent working interest in the wells with the remaining 50 percent held by its joint venture partner, Chesapeake Energy Corporation (NYSE:CHK). Ohio Resources Corporation (VSE-OHO) will hold a 25 percent working interest in the wells after payout. Bullmoose/Sukunka (Located 85 miles Southwest of Fort St. John) Pan East, as operator, spudded a significant exploration well at Windfall a-5-G/93-P-4 on March 2. This well will test a large structure and should reach total depth of 2,400 meters (8,000 feet) by Mid-June. Pan East has a 25 percent cost interest in this well and will earn a 35 percent working interest, before payout and 24.5 percent working interest after payout, in the well and 10,375 acres of surrounding lands. Pan East's partners in the well include Fina Resources Inc. and Chesapeake Energy Corporation with Poco Petroleums Ltd. (TSE-POC) holding an after payout interest. Pan East's existing well at West Bullmoose d-96-G/93-P-4 (Pan East - 53 percent), which was completed last fall, has been tested with several completion and tie-in options awaiting the results of the Windfall well. Pan East's Vice President of Operations, David L. Summers, stated, "British Columbia is an emerging key area for the company. Our operations are orientated to natural gas targets and include high potential exploration at Bullmoose/Sukunka and activities at Midwinter which are more development in nature."

To: Kerm Yerman who wrote (9434) 3/5/1998 5:28:00 PM From: Kerm Yerman   Respond to of 15196   FIELD ACTIVITIES / Ohio Resources Drilling Updates OHIO RESOURCES CORPORATION VSE SYMBOL: OHO MARCH 5, 1998 CALGARY, ALBERTA--OHIO RESOURCES CORPORATION ("Ohio") is pleased to announce the three following drilling successes: At Midwinter, B.C., Ohio farmed out to Pan East Petroleum Corp. for 4 horizontal wells. Three of these wells will be completed by March 31st. Ohio's after payout interest will be 25 percent and a royalty interest before payout. The first horizontal well was reported by Pan East to have flow tested at rates of 17 mmcf/d. This well is presently being tied in to the existing pipeline system. Commercial production is expected by March 15th at a rate between 5-6 mmcf per day. Both of the remaining horizontal wells in this season's program have spudded. At Turin, Alberta, Ohio (50 percent) participated in a well which tested gas at 1.50 mmcf/d. This well will be tied in during early March to better gauge available rates. This is the first of several drilling opportunities on a 14 square mile 3-D seismic program conducted in November 1997. In central Alberta, Ohio (20 percent) participated in an earning well which tested gas and liquids at 1.45 mmcf/d. This well is to be tied in during April. Using conservative production rates, the results to date from this winter's drilling program will increase Ohio's production base by greater than 50 percent. Once production rates stabilize for these 3 wells and the balance of this season's drilling program (3 to 5 wells) is completed a further update will be issued. Ohio is a junior gas producer with a growing production base. Ohio has no debt and sufficient cash and cash flow to fully develop current opportunities.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:14:00 PM From: Arnie   Respond to of 15196   FIELD ACTIVITIES CORRECTION / GHP Exploration completes Well Testing GHP Exploration Corporation (CDN:GHPX.U) announced today that testing operations have been completed on its West Delta 78 #1 well (News-February 12, 1998) in the Gulf of Mexico. GHP has, after the acquisition of an additional 3.125% working interest in exchange for a .3125% overriding royalty interest, a 13.125% working interest (10.36% net revenue interest) in the well, which was drilled to a true vertical depth of 16,925 feet and encountered multiple potential pay sands. The well was completed in a Miocene aged sand in an interval between true vertical depths of 16,762 feet and 16,780 feet. The well flowed in excess of 2,000 barrels of oil per day, on an 11/64 inch choke with a flowing tubing pressure of 7890 psi. Production facilities are currently being designed with first production expected before year end. This production test information is being incorporated with well log and seismic data to determine the best way to exploit the identified additional potential that remains on the West Delta 78 block. The Company also reports that the Winfield Ranch 17-1E well on the South Fort Stockton prospect (News-February 23, 1998) has reached a depth of 3,000 feet, and 13 3/8 inch surface casing is being run. The well is being drilled to the Ellenburger formation at a proposed total depth of 26,000 feet. Additionally, testing operations on the Sud Nefta NF-1 well (News-September 8, 1997) in Tunisia are ongoing, however, the well is being run as a "tight hole" by the operator and therefore no information is available for release. GHP engages in the exploration for and development and production of crude oil and natural gas in the United States and internationally with operations and interests in acreage in the Gulf of Mexico, West Texas, Egypt and in Tunisia. The Company currently has 17.7 million common shares outstanding. Upon conversion of the Special Warrants (News - March 2, 1998) into common shares and common share purchase warrants, the Company will have 21.6 million shares outstanding. (NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.) Contacts: George H. Plewes - (604) 669-2525 Barry D. Lasker - (713) 626-9373 Internet: ghpexploration.com

To: Kerm Yerman who wrote (9434) 3/5/1998 9:16:00 PM From: Arnie   Respond to of 15196   ACQUISITION / Calvalley Petroleum announces New Exploration Project Calvalley Petroleum Inc. today announced that it has successfully negotiated a 4800 acre (7.5 Sec.) Farmin & Option Agreement in the Alameda East Area of S.E. Saskatchewan. Calvalley's initial exploratory test well will be drilled prior to April 1, 1998 to a depth to penetrate the Frobisher zone of Mississippian age. Under the terms of the Agreement, two (2) additional wells may be drilled, also 100% working interest, at Calvalley's option thereby earning the entirety of the petroleum and natural gas lands. These 7.5 sections immediately offset Calvalley's existing 100% owned oil production consisting of eight (8) oil wells (horizontal and vertical) with treating/disposal facilities. The most recently completed Frobisher zone oil well averaged over the initial 7 days of production, 208 barrels of oil per day. This well is being produced at a rate significantly less than its productive capability to maximize ultimate oil recovery. Calvalley Petroleum Inc. is a Calgary-based oil and gas exploration and development Company whose shares are traded on the Montreal Exchange. Ticker symbol: CVI.A (ME) Newspaper Abbreviation: Calvalley Source: Edmund Shimoon, P.Eng. Chairman and Chief Executive Officer Calvalley Petroleum Inc.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:19:00 PM From: Arnie   Respond to of 15196   ACQUISITION / Maxx Petroleum acquires Oil & Gas Interests in Waterton Maxx Petroleum Ltd. announced today that it has acquired a working interest in 2,560 acres of petroleum and natural gas leases, including rights to the base of the Mississippian, in the Waterton area of southern Alberta. The leases have been farmed out for a 12,700 foot Mississippian test well which has just been drilled to TD and is being evaluated. Maxx will retain a 7.5% overriding royalty interest until payout of the well and then convert to a 20% working interest. The agreement provides that if the farmee elects to drill additional wells to earn additional 2,560 acre blocks, then Maxx will be carried at no cost for similar interests in these wells and the earning blocks. In addition, Maxx has acquired an option to earn a 100% working interest subject to a non-convertible overriding royalty interest in 20,000 acres of Devonian rights which are below the Mississippian. The leases are contiguous over a significant structural anomaly at the Mississippian and Devonian intervals. Maxx expects to conduct a 3D seismic program in the summer of 1998 to delineate the structure and to select a drilling location to test the potential of the Devonian. Both the Mississippian and Devonian in this area have potential for large gas reserves. Maxx Petroleum Ltd. is a junior oil and gas exploration and development company based in Calgary, Alberta. Maxx shares trade on The Toronto Stock Exchange under the symbol "MXP" and the American Stock Exchange under the symbol "MMX". For further information please contact: Burl N. Aycock, President or John Galeski, Vice-President, Exploration 900, 606 4th Street SW Calgary, AB T2P 1T1 Phone: (403) 261-6666

To: Kerm Yerman who wrote (9434) 3/5/1998 9:28:00 PM From: Arnie   Respond to of 15196   EARNINGS - KERMS TOP 1 / Talisman Energy reports 1997 Results Part 1 CALGARY, March 5 /CNW/ - Talisman Energy Inc. today announced its fifth consecutive year of record cash flow, production and revenues. Production in the fourth quarter of 1997 was 235,000 boe/d, an increase of 28% from the same period a year ago, while production for the year averaged 203,000 boe/d (up 19%). Cash flow for the year totalled $797.4 million, up $100 million (14%) from a year ago. Cash flow per share was $7.29, up 9% from a year ago. Fourth quarter cash flow was a record $2.25 per share, up 13% from the same period in 1996. Net income for the year was $77.1 million ($0.70/share), down 19% from 1996. Net income for the quarter was $11.0 million ($0.10/share) compared with $26.4 million ($0.24/share) in 1996. ''Not only was it a record year, but also our activities in 1997 have set the stage for growth this year and next. Our three operating areas each have a good balance of operated production, development underway and exploration excitement. We are firing on all cylinders,'' said Dr. Jim Buckee, President and Chief Executive Officer. ''We expect to add 150-200 mmcf/d of new gas production from Western Canada over the next two years. In the North Sea, we have built a substantial position in the exciting Moray Firth exploration area, which also contains our Ross oilfield development. Corridor and Madura add a lot of potential upside in Indonesia. ''Talisman's capital spending will be about $1 billion again in 1998, but we will maintain flexibility in deploying this capital. At current oil price levels, 1998 will be a tough year for the industry but I am confident that Talisman will weather the storm and flourish in 1999. We are fortunate that less than 5% of our current Canadian oil production is below 19 degrees API, and we are in good financial shape. We have a relatively certain growth profile from known projects, which should lead to production of 240,000 boe/d this year and 280,000 boe/d in 1999.'' Key statistics for 1997 include: - production of 203,000 boe/d, up 19%, with fourth quarter production of 235,000 boe/d - oil production up 30% at 130,177 bbls/d and natural gas up slightly to 658 mmcf/d - total revenues up 18% to $1.4 billion - cash flow of $7.29/share, up 9%; total cash flow of $797.4 million - net income of $0.70/share, down 23%; total net income of $77.1 million - total capital spending of $1.7 billion, including $951 million on exploration and development - a record 851 successful oil and gas wells, with a 91% success rate - record proved reserve additions of 194 mmboe, including 130 mmboe from drilling, totalling 262% production replacement - proved finding and development costs of $6.89/boe (five year average of $5.59/boe) - general and administrative expenses of $0.77/boe, down 14% from $0.90/boe in 1996 - year end long-term debt of $1.7 billion, or 2.2 times cash flow In the fourth quarter of 1997, Talisman acquired Pembina Resources Limited at a cost of $605 million. On October 16, 1997, Talisman listed on the New York Stock Exchange with the trading symbol TLM. Talisman Energy Inc. is a Canadian-based international upstream oil and gas producer with operations in Canada, the North Sea and Indonesia. The Company also conducts exploration in Algeria, Trinidad and Peru. Talisman (TLM) is listed on the Toronto, Montreal and Vancouver stock exchanges in Canada and on the New York Stock Exchange in the United States. The Company will mail its 1997 Annual Report the week of March 23rd. Talisman's Annual General Meeting will be held at 11:00 a.m. on Tuesday, May 5th in the Crystal Ballroom at the Palliser Hotel in Calgary, Alberta. Certain statements in this press release and the accompanying information for shareholders, analysts and media contain forward-looking statements including outlook on prices, expectations of future production, business plans for drilling and exploration and expectations of capital expenditures, debt levels and royalty rates. Information concerning reserves contained in this report may also be deemed to be forward-looking statements as such estimates involve the implied assessment that the resources described can be profitably produced in future. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated by the Company. These risks include, but are not limited to: the background risks of the oil and gas industry (e.g., operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates, the uncertainty of estimates and projection relating to production, costs and expenses, and health, safety and environmental risks), risks in conducting foreign operations (e.g. political and fiscal instability), price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional information on these and other factors which could affect the Company's operation or financial results are including in the Company's Annual Report under the headings ''Management's Discussion and Analysis - Sensitivities,'' ''Risks and Uncertainties,'' and ''-Outlook,'' and in the Company's other reports on file with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. -- This release is available on Talisman's Internet Web Site: WWW.TALISMAN-ENERGY.COM -- INFORMATION FOR SHAREHOLDERS, ANALYSTS AND MEDIA Please refer to the attached tables. Table 1 - Production Volumes and Netbacks ----------------------------------------- Oil production was up 30,217 bbls/d (30%) in 1997. Over half of this increase came from the North Sea, with higher working interests and a full year of production from Beatrice, Buchan and Clyde. Canadian oil production increased 16%, led by growth in Carlyle and Chauvin. Oil production from the newly acquired Pembina properties contributed 2,641 bbls/d for the year. Indonesian oil production was up 26% with higher volumes from the OK Block and Tanjung. At Tanjung, waterflood response increased oil production to over 7,000 bbls/d in early 1998. North Sea natural gas volumes averaged 100 mmcf/d (up 11%) in spite of mild winter weather, with a full year of production from the Trent and Tyne gas fields. During 1997, Talisman continued its strategy of maintaining flat Canadian gas production in response to the high tariff structure in northeastern British Columbia and historical weakness in natural gas prices. Production increases from Pembina, the Greater Arch, Alberta Foothills and Northern Plains were offset by lower volumes from Monkman and non-operated properties. Talisman's realized sales price averaged $22.91/boe in 1997, up 2% from the previous year, as increased gas prices (up 17%) offset a 6% decline in oil prices. Although gas prices remained strong, oil prices fell 16% during the fourth quarter (compared to the same period in 1996) with mild weather, concerns about increased Iraqi exports, lower demand in Asia and a continuing lack of OPEC restraint. Unit operating costs averaged $6.20/boe, up from $4.60/boe in 1996. High fixed costs associated with Talisman's growing percentage of North Sea oil production, combined with currency impacts were major contributors. North Sea unit costs should come down as Talisman continues to increase throughput at its operated facilities. The North Sea was Talisman's highest netback area in 1997. Domestic operating costs averaged $4.26/boe, an increase of 18%, reflecting a general increase in industry costs and higher gas processing fees. With the addition of higher cost Pembina production, fourth quarter operating costs averaged $4.60/boe. After implementing cost reduction initiatives on the Pembina properties, we expect to be able to reduce the current level of unit costs in 1998. Indonesian unit operating costs were down 8%, the result of cost saving measures at Tanjung, increased OK Block production and a reduction in pipeline tariffs. Talisman's average royalty rate during 1997 increased to 18.4%, up from 15.9% a year earlier. Increased natural gas royalties reflected higher prices. Oil royalties increased in the North Sea as a result of increased production at Beatrice and Buchan. Indonesian oil royalty rates increased from 29.6% in 1996 to 43.7% last year as cost recovery pools associated with the OK Block were fully depleted by mid-1996. The increase was partially offset by higher volumes from Tanjung, which is subject to a low royalty rate. Talisman's average Indonesian royalty rate should fall in 1998 with higher expected Tanjung volumes and the addition of natural gas production from Corridor. Table 2 - Consolidated Balance Sheets ------------------------------------- Total assets increased by 34% during the year, totalling $5 billion at year end. Long-term debt was $1.7 billion at year end or 2.2 times cash flow. Long-term debt to debt-plus-equity was 44% at December 31, 1997, compared with 30% at year end 1996. Table 3 - Consolidated Statements of Income ------------------------------------------- Gross sales totalled $1.7 billion in 1997, up from $1.4 billion the previous year. Oil revenues accounted for 68% of 1997 gross sales. Net income in 1997 declined 19% from the prior year despite increased cash flow, primarily a result of increased depreciation, depletion and amortization (DD&A) expense. DD&A per boe increased to $7.30 in 1997, up from $6.73 in 1996 reflecting increased capital intensive North Sea volumes. Talisman has increased its total production by 223% over the past five years with only a 64% increase in general and administrative (G&A) expenses. G&A expense per unit continued to fall in 1997 to $0.77/boe, from $0.90/boe in 1996, and $1.06/boe in 1995. Dry hole expense declined significantly in 1997 despite a 44% increase in exploration drilling expenditures. Increased exploration expenses reflect increased seismic work in Canada and spending on the Company's high impact exploration plays in Algeria, Trinidad and Peru. Interest expense decreased 26% in 1997 reflecting capitalized interest of $29.1 million (1996 - $5.1 million) related to development of the Ross and Corridor projects. Gross interest costs were up 9% in 1997 as a result of higher debt levels associated with increased capital expenditures and the Pembina acquisition, partially offset by lower average interest rates. Talisman's high effective tax rate (63% in 1997) primarily reflects the difference between the purchase price allocated to acquired assets and associated income tax pools. Table 4 - Consolidated Statements of Cash Flows ----------------------------------------------- Total cash flow in 1997 was $797.4 million, up $100 million from the prior year. Exploration, development and corporate spending during the year totalled $961.9 million, an increase of 70% from 1996. The net increase in long-term debt associated with the Pembina acquisition was $605 million. Table 5 - Proved Reserves Continuity ------------------------------------ Talisman's proved conventional reserves increased 24% to 626.8 mmboe at the end of 1997. A total of 119 mmboe were added through discoveries and additions, 64 mmboe through net purchases and sales and 11 mmboe through net revisions and transfers. The Company replaced 262% of its production in 1997, of which, two-thirds was through the drill bit. Table 6 - Five Year Finding and Development Costs ------------------------------------------------- Talisman's 1997 proved finding and development costs averaged $6.89/boe. F&D costs in Canada were $7.00/boe and internationally $6.80/boe. Over five years, Talisman has averaged proved finding and development costs of $5.59/boe. Talisman's ratio of netbacks to proved F&D costs averaged a very respectable 1.8 times in 1997. Table 7 - 1997 Landholdings and Drilling Summary ------------------------------------------------ Talisman participated in a total of 851 (411.9 net) successful oil and gas wells during 1997, up from 594 in 1996. Talisman's drilling success rate averaged 91% in 1997, reflecting the Company's ability to high grade investment opportunities from its large and diverse portfolio. Talisman now holds 8.2 million net undeveloped acres of land, of which approximately 4.3 million are in Canada. This is up from six million total net acres last year. Pembina added approximately one million net undeveloped acres in Canada of which 600,000 are in Ontario. Table 8 - Five Year Financial Summary ------------------------------------- Talisman's average cash flow per share over the 1993-97 period has grown at an annualized rate of 23%. Table 9 - Five Year Operations Summary -------------------------------------- Over the 1993-1997 period, Talisman has grown its oil production at an annualized rate of 46%, natural gas production at 18% and total production (boe/d) at 34%.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:34:00 PM From: Arnie   Respond to of 15196   EARNINGS - KERMS TOP 1 / Talisman Energy reports 1997 Results Part 2 Table 10 - Selected Quarterly Financial Data -------------------------------------------- Talisman's production hit a record high of 235,000 boe/d in the fourth quarter of 1997 (up 28% from 4Q 1996). Cash flow of $2.25 per share in the fourth quarter was also a new record, up 13% from the prior year. << TALISMAN ENERGY INC. DAILY PRODUCTION VOLUMES AND NETBACKS Three months ended Twelve months ended December 31 December 31 1997 1996 1997 1996 ------------------------------------------------------------------------- Daily Production Volumes Oil and liquids (bbls/d) Canada 61,116 47,316 51,217 44,301 North Sea 58,545 35,208 50,502 33,038 Indonesia 30,599 25,381 28,458 22,621 ------------------------------------------------------------------------- 150,260 107,905 130,177 99,960 ------------------------------------------------------------------------- Natural gas (mmcf/d) Canada 642 568 558 557 North Sea 117 110 100 90 ------------------------------------------------------------------------- 759 678 658 647 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Netbacks (1) Canada Oil and liquids ($/bbl) Sales price 21.74 26.28 21.97 23.95 Royalties (4.90) (6.93) (5.26) (6.01) Operating costs (4.07) (3.19) (3.72) (3.01) ------------------------------------------------------------------------- 12.77 16.16 12.99 14.93 ------------------------------------------------------------------------- Natural gas ($/mcf) Sales price 2.24 1.92 1.98 1.71 Royalties (0.29) (0.10) (0.32) (0.19) Operating costs (0.52) (0.44) (0.48) (0.41) ------------------------------------------------------------------------- 1.43 1.38 1.18 1.11 ------------------------------------------------------------------------- North Sea Oil and liquids ($/bbl) Sales price 24.75 29.91 25.49 27.31 Royalties (1.21) (1.61) (1.35) (1.23) Operating costs (13.26) (7.37) (10.92) (6.50) ------------------------------------------------------------------------- 10.28 20.93 13.22 19.58 ------------------------------------------------------------------------- Natural gas ($/mcf) Sales price 3.79 3.80 3.89 3.37 Royalties (0.14) (0.22) (0.16) (0.15) Operating costs (0.95) (0.53) (0.91) (0.76) ------------------------------------------------------------------------- 2.70 3.05 2.82 2.46 ------------------------------------------------------------------------- Indonesia Oil and liquids ($/bbl) Sales price 25.95 29.92 25.62 27.22 Royalties (11.41) (10.87) (11.41) (8.06) Operating costs (5.46) (6.23) (5.68) (6.17) ------------------------------------------------------------------------- 9.08 12.82 8.53 12.99 ------------------------------------------------------------------------- Total Company Oil and liquids ($/bbl) Sales price 23.81 28.37 24.18 25.85 Royalties (4.78) (6.10) (5.09) (4.86) Operating costs (7.96) (5.30) (6.95) (4.90) ------------------------------------------------------------------------- 11.07 16.97 12.14 16.09 ------------------------------------------------------------------------- Natural gas ($/mcf) Sales price 2.48 2.23 2.27 1.94 Royalties (0.27) (0.12) (0.29) (0.18) Operating costs (0.58) (0.45) (0.54) (0.46) ------------------------------------------------------------------------- 1.63 1.66 1.44 1.30 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Netbacks do not include synthetic oil or pipeline operations. Table 1 TALISMAN ENERGY INC. CONSOLIDATED BALANCE SHEETS DECEMBER 31 (millions of Canadian dollars) 1997 1996 ------------------------------------------------------------------------- Assets Current Cash $ 7.1 $ 41.1 Accounts receivable 403.9 269.6 Inventories 43.9 41.7 Prepaid expenses 15.8 9.3 ------------------------------------------------------------------------- 470.7 361.7 ------------------------------------------------------------------------- Deferred pension costs 47.7 42.2 Other assets 71.5 20.9 Property, plant and equipment 4,441.0 3,332.6 ------------------------------------------------------------------------- 4,560.2 3,395.7 Total assets $ 5,030.9 $ 3,757.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities Current Accounts payable and accrued liabilities $ 449.7 $ 287.2 Income and other taxes payable 47.6 50.5 ------------------------------------------------------------------------- 497.3 337.7 ------------------------------------------------------------------------- Deferred credits 23.2 35.9 Provision for future site restoration 144.2 77.7 Long-term debt 1,738.8 898.7 Deferred taxes 440.8 313.4 ------------------------------------------------------------------------- 2,347.0 1,325.7 ------------------------------------------------------------------------- Shareholders' equity Share capital and contributed surplus 1,879.1 1,863.6 Retained earnings 307.5 230.4 ------------------------------------------------------------------------- 2,186.6 2,094.0 ------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 5,030.9 $ 3,757.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The 1996 figures reflect reclassifications to conform to the presentation adopted in 1997. Table 2 TALISMAN ENERGY INC. CONSOLIDATED STATEMENTS OF INCOME YEARS ENDED DECEMBER 31 (millions of Canadian dollars) 1997 1996 1995 ------------------------------------------------------------------------- Revenue Gross sales $ 1,699.9 $ 1,406.9 $ 1,011.5 Less royalties 312.1 224.0 144.1 ------------------------------------------------------------------------- Net sales 1,387.8 1,182.9 867.4 Other 42.2 29.9 31.8 ------------------------------------------------------------------------- Total revenue 1,430.0 1,212.8 899.2 ------------------------------------------------------------------------- Expenses Operating 479.7 299.5 245.0 General and administrative 57.4 56.3 56.6 Depreciation, depletion and amortization 541.2 420.6 369.1 Dry hole 42.4 65.4 26.1 Exploration 92.3 63.5 50.2 Interest on long-term debt 51.1 68.7 86.4 Other (41.4) (26.2) (30.3) ------------------------------------------------------------------------- Total expenses 1,222.7 947.8 803.1 ------------------------------------------------------------------------- Income from continuing operations before taxes 207.3 265.0 96.1 ------------------------------------------------------------------------- Taxes Current 37.9 51.3 10.8 Deferred 60.4 84.3 50.5 Petroleum revenue tax 31.9 34.5 - ------------------------------------------------------------------------- 130.2 170.1 61.3 ------------------------------------------------------------------------- Net income from continuing operations 77.1 94.9 34.8 Discontinued mining operations - - 5.7 ------------------------------------------------------------------------- Net income $ 77.1 $ 94.9 $ 40.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings per share (dollars) Net income from continuing operations 0.70 0.91 0.36 Net income 0.70 0.91 0.42 ------------------------------------------------------------------------- Average number of common shares outstanding (millions) 109.4 103.9 96.5 ------------------------------------------------------------------------- Table 3 TALISMAN ENERGY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31 (millions of Canadian dollars) 1997 1996 1995 ------------------------------------------------------------------------- Operating Net income $ 77.1 $ 94.9 $ 40.5 Items not involving a current cash flow 628.0 539.0 411.6 Exploration 92.3 63.5 50.2 ------------------------------------------------------------------------- Cash flow 797.4 697.4 502.3 Changes in non-cash working capital (46.8) 37.0 (8.9) ------------------------------------------------------------------------- Cash provided by operating activities 750.6 734.4 493.4 ------------------------------------------------------------------------- Investing Corporate acquisitions (623.6) (344.9) - Capital expenditures Exploration, development and corporate (961.9) (564.3) (381.8) Acquisitions (126.6) (218.8) (106.9) Investments (146.6) (6.8) - Increase in other assets (25.3) - - Proceeds of disposition Resource properties 71.2 57.8 99.8 Investments 164.2 1.5 2.8 Changes in non-cash working capital 39.6 14.4 124.2 ------------------------------------------------------------------------- Cash used in investing activities (1,609.0) (1,061.1) (261.9) ------------------------------------------------------------------------- Financing Increase in long-term debt on corporate acquisitions 605.1 333.0 - Long-term debt repaid (963.7) (795.1) (737.0) Long-term debt issued 1,172.7 453.5 451.0 Common shares issued 15.5 366.0 5.6 Increase in site restoration provision on acquisition 12.3 20.0 - Deferred credits and other (17.4) (3.4) 14.4 Changes in non-cash working capital (0.1) (0.2) (5.8) ------------------------------------------------------------------------- Cash provided by (used in) financing activities 824.4 373.8 (271.8) ------------------------------------------------------------------------- Net (decrease) increase in cash (34.0) 47.1 (40.3) Cash (bank indebtedness), beginning of year 41.1 (6.0) 34.3 ------------------------------------------------------------------------- Cash (bank indebtedness), end of year $ 7.1 $ 41.1 $ (6.0) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Table 4 TALISMAN ENERGY INC. PROVED RESERVES CONTINUITY YEARS ENDED DECEMBER 31 1997 1996 1995 1994 1993 1992 ------------------------------------------------------------------------- Oil & Liquids (mmbls) Opening balance 225.9 167.9 167.8 95.0 40.5 39.8 Discoveries, additions and extensions 68.7 53.8 15.4 8.8 11.0 2.8 Net purchase and sales 29.0 35.6 0.9 69.9 53.8 0.3 Net revisions 23.2 4.3 11.2 12.2 (0.3) 3.6 Changes before production 120.9 93.7 27.5 90.9 64.5 6.7 Production (46.5) (35.7) (27.4) (18.1) (10.0) (6.0) ------------------------------------------------------------------------- Closing balance 300.3 225.9 167.9 167.8 95.0 40.5 ------------------------------------------------------------------------- Natural Gas Opening balance 2,301.8 1,901.8 1,852.1 1,267.9 734.7 743.1 Discoveries, additions and extensions 407.5 616.2 195.3 186.0 125.3 85.1 Net purchase and sales 289.6 34.3 9.5 564.1 530.1 (24.0) Net revisions (95.2) (13.7) 82.0 15.1 1.4 7.2 Changes before production 602.0 636.8 286.8 765.2 656.8 68.3 Production (240.2) (236.9) (237.1) (181.0) (123.6) (76.7) ------------------------------------------------------------------------- Closing balance 2,663.5 2,301.8 1,901.8 1,852.1 1,267.9 734.7 ------------------------------------------------------------------------- Mmboe Opening balance 506.1 381.6 375.1 221.8 114.0 114.1 Discoveries, additions and extensions 118.9 140.9 36.7 27.4 23.5 11.3 Net purchase and sales 63.7 42.2 1.9 146.6 106.9 (2.1) Net revisions 11.1 2.9 20.7 15.9 (0.2) 4.3 Changes before production 193.7 186.0 59.3 189.9 130.2 13.5 Production (73.0) (61.5) (52.8) (36.6) (22.4) (13.6) ------------------------------------------------------------------------- Closing balance 626.8 506.1 381.6 375.1 221.8 114.0 ------------------------------------------------------------------------- (1) Canadian proved reserves exclude synthetic crude oil reserves of: December 31, 1997 - 23.5 mmbls. (2) Interests of Pertamina, other than working interests, are accounted for as royalties. (3) Gross reserves are the remaining reserves of Talisman, before deduction of estimated royalties. (4) Revisions include revisions that reflect actual performance, reassessment of data and adjustments to cumulative production. Certain revisions in 1996 have been reclassified as discoveries, additions, and extensions in accordance with US practice. (5) Gas converted at 10:1 for Western Canada Basin and 6:1 for Ontario and International.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:35:00 PM From: Arnie   Respond to of 15196   EARNINGS - KERMS TOP 1 / Talisman Energy reports 1997 Results Part 3 Table 5 TALISMAN ENERGY INC. FIVE YEAR FINDING AND DEVELOPMENT COSTS YEARS ENDED DECEMBER 31 1993 1994 1995 1996 1997 3-year 5-year ------------------------------------------------------------------------- Proved reserves additions (1) Canada - liquids (mmbbl) 10.5 14.8 14.4 24.3 35.8 74.4 99.8 - gas (bcf) 126.7 167.7 231.8 219.2 209.3 660.3 954.7 ------------------------------------------------------------------------- Canada (mmboe) 23.2 31.6 37.5 46.2 56.7 140.5 195.3 ------------------------------------------------------------------------- International - liquids (mmbbl) 0.2 6.2 12.2 33.7 56.1 102.1 108.5 - gas (bcf) 0.0 33.4 45.5 383.4 103.0 531.9 565.3 ------------------------------------------------------------------------- International (mmboe) 0.2 11.7 19.8 97.6 73.3 190.7 202.7 ------------------------------------------------------------------------- Total - liquids (mmbbl) 10.7 21.0 26.6 58.0 91.9 176.5 208.3 - gas (bcf) 126.7 201.1 277.3 602.6 312.3 1192.2 1520.0 ------------------------------------------------------------------------- Total (mmboe) 23.4 43.4 57.4 143.8 130.0 331.2 398.0 ------------------------------------------------------------------------- Proved net acquisitions (2) Canada (mmboe) 106.9 32.5 1.9 0.1 57.0 59.0 198.3 International (mmboe) 0.0 114.0 0.0 42.2 6.7 48.9 162.9 ------------------------------------------------------------------------- Total 106.9 146.5 1.9 42.3 63.7 107.9 361.2 ------------------------------------------------------------------------- Capital spending ($mm) Canada (3) Exploration $39.2 $90.1 $80.1 $82.9 $130.8 $293.7 $423.0 Development 64.9 144.7 149.4 228.3 266.3 644.0 853.7 ------------------------------------------------------------------------- Total $104.2 $234.8 $229.5 $311.2 $397.1 $937.7 $1,276.6 ------------------------------------------------------------------------- International (3) Exploration $14.6 $36.2 $53.1 $62.5 $94.2 $209.8 $260.6 Development 20.3 33.2 76.6 153.0 404.5 634.1 687.6 ------------------------------------------------------------------------- Total $34.9 $69.4 $129.7 $215.5 $498.7 $843.9 $948.2 ------------------------------------------------------------------------- Total exploration and development Exploration $53.8 $126.3 $133.1 $145.4 $225.0 $503.5 $683.6 Development 85.2 177.9 226.1 381.3 670.8 1,278.1 1,541.2 ------------------------------------------------------------------------- Total 139.0 304.2 359.2 526.7 895.8 1,781.6 2,224.8 ------------------------------------------------------------------------- Net acquisitions and divestitures (4) 519.0 1,724.2 7.1 505.9 679.0 1,192.0 3,435.2 ------------------------------------------------------------------------- Total capital $658.0 $2,028.4 $366.3 $1,032.6 $1,574.8 $2,973.6 $5,660.0 ------------------------------------------------------------------------- Proved finding and development costs ($/boe) Canada $4.49 $7.43 $6.11 $6.73 $7.00 $6.68 $6.54 International 174.34 5.91 6.54 2.21 6.80 4.42 4.68 ------------------------------------------------------------------------- Total $5.95 $7.02 $6.26 $3.66 $6.89 $5.38 $5.59 ------------------------------------------------------------------------- Proved finding, development and acquisition costs ($/boe) Canada $4.79 $8.91 $5.65 $6.51 $9.03 $7.78 $6.97 International 174.34 11.59 7.23 5.23 6.86 5.94 7.97 ------------------------------------------------------------------------- Total $5.05 $10.69 $6.18 $5.55 $8.13 $6.77 $7.46 ------------------------------------------------------------------------- (1) Proved discoveries and revisions only, excluding acquisitions, conventional oil only. (2) Reserve purchases less dispositions, includes asset sales, dispositions, swaps and corporate acquisitions. (3) Exploration and development spending excludes indirect exploration expenses, Syncrude, enhanced oil recovery, Chauvin pipeline and capitalized interest. (4) Corporate and property acquisitions less dispositions. Gas converted at 10:1 for Western Canada Basin and 6:1 for Ontario and International Table 6 TALISMAN ENERGY INC. 1997 LANDHOLDINGS YEARS ENDED DECEMBER 31 Developed Undeveloped Total (Acres) Gross Net Gross Net Gross Net ------------------------------------------------------------------------- Canada Western Canada 2,342,100 977,700 5,899,800 3,299,800 8,241,900 4,277,500 Ontario 420,600 275,500 882,700 600,500 1,303,300 876,000 Other 11,900 200 3,954,700 361,500 3,966,600 361,700 ------------------------------------------------------------------------- Total Canada 2,774,600 1,253,400 10,737,200 4,261,800 13,511,800 5,515,200 North Sea 85,825 19,580 1,759,493 481,499 1,845,318 501,079 Indonesia 314,897 137,254 3,098,445 1,960,690 3,413,342 2,097,944 Other (1) 4,846,685 1,495,975 4,846,685 1,495,975 ------------------------------------------------------------------------- Total 3,175,322 1,410,234 20,441,823 8,199,964 23,617,145 9,610,198 ------------------------------------------------------------------------- TALISMAN ENERGY INC. 1997 DRILLING SUMMARY YEARS ENDED DECEMBER 31 Exploration Development Total Oil Gas Dry Total Oil Gas Dry Total Oil Gas Dry Total ------------------------------------------------------------------------- Canada Gross 17.0 39.0 24.0 80.0 541.0 178.0 55.0 774.0 558.0 217.0 79.0 854.0 Net 14.6 24.6 22.2 61.4 268.4 72.5 23.8 364.7 283.0 97.1 46.0 426.1 North Sea Gross - 3.0 4.0 7.0 22.0 4.0 - 26.0 22.0 7.0 4.0 33.0 Net - 0.7 0.7 1.4 3.2 0.7 - 3.9 3.2 1.4 0.7 5.3 Indonesia Gross - 2.0 3.0 5.0 42.0 - 2.0 44.0 42.0 2.0 5.0 49.0 Net - 1.4 3.0 4.4 24.8 - 1.2 26.0 24.8 1.4 4.2 30.4 Other (1) Gross 3.0 - 1.0 4.0 - - - - 3.0 - 1.0 4.0 Net 1.0 - 0.4 1.4 - - - - 1.0 - 0.4 1.4 ------------------------------------------------------------------------- Total Gross 20.0 44.0 32.0 96.0 605.0 182.0 57.0 844.0 625.0 226.0 89.0 940.0 Net 15.6 26.7 26.3 68.6 296.4 73.2 25.0 394.6 312.0 99.9 51.3 463.2 ------------------------------------------------------------------------- (1) International exploration wells only (i.e. Algeria); does not include two stratigraphic tests drilled in Nevada in 1997. Water injection, source and disposal wells are not included. Table 7 TALISMAN ENERGY INC. FIVE YEAR FINANCIAL SUMMARY YEARS ENDED DECEMBER 31 (millions of Canadian dollars unless otherwise stated) 1997 1996 1995 1994 1993 ------------------------------------------------------------------------- Balance sheets Current assets $ 470.7 $ 361.7 $ 255.8 $ 426.0 $ 130.5 Other assets 119.2 63.1 51.0 61.2 42.3 Property, plant and equipment 4,441.0 3,332.6 2,733.5 2,772.1 908.5 ------------------------------------------------------------------------- Total assets 5,030.9 3,757.4 3,040.3 3,259.3 1,081.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Current liabilities 497.3 337.7 224.9 241.4 130.1 Deferred credits and other liabilities 608.2 427.0 283.1 235.0 91.0 Long-term debt 1,738.8 898.7 906.0 1,202.6 245.8 Shareholders' equity 2,186.6 2,094.0 1,626.3 1,580.3 614.4 ------------------------------------------------------------------------- Total liabilities and shareholders' equity 5,030.9 3,757.4 3,040.3 3,259.3 1,081.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Results of operations Revenue $ 1,430.0 $ 1,212.8 $ 899.2 $ 613.4 $ 330.3 Expenses 1,222.7 947.8 803.1 518.9 296.4 ------------------------------------------------------------------------- Income before taxes 207.3 265.0 96.1 94.5 33.9 Taxes 130.2 170.1 61.3 55.3 32.4 ------------------------------------------------------------------------- Net income from continuing operations 77.1 94.9 34.8 39.2 1.5 Discontinued mining operations - - 5.7 24.8 24.3 ------------------------------------------------------------------------- Net income 77.1 94.9 40.5 64.0 25.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash flow 797.4 697.4 502.3 361.5 189.4 Capital expenditures 1,088.6 783.1 488.7 429.3 178.7 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Per common share (Canadian dollars) Net income 0.70 0.91 0.42 0.82 0.43 Cash flow 7.29 6.71 5.21 4.63 3.17 ------------------------------------------------------------------------- Table 8 TALISMAN ENERGY INC. FIVE YEAR OPERATIONS SUMMARY YEARS ENDED DECEMBER 31 1997 1996 1995 1994 1993 ------------------------------------------------------------------------- Daily average production (gross bbls/d except as noted) Crude oil Canada 40,627 34,169 31,019 29,801 22,542 North Sea 48,065 30,675 16,987 7,114 - Indonesia 28,458 22,621 18,121 5,919 - Other - - - 473 116 Natural gas liquids Canada 8,054 7,598 7,097 5,512 4,810 North Sea 2,437 2,363 1,791 538 - Synthetic oil (Canada) 2,536 2,534 2,527 2,425 1,517 ------------------------------------------------------------------------- Total oil and liquids 130,177 99,960 77,542 51,782 28,985 ------------------------------------------------------------------------- Natural gas (mmcf/d) Canada 558 557 581 481 338 North Sea 100 90 69 15 - ------------------------------------------------------------------------- Total natural gas 658 647 650 496 338 ------------------------------------------------------------------------- Total (mboe/d) 203 171 147 102 63 ------------------------------------------------------------------------- Average unit prices ($ per bbl except as noted) Crude oil Canada $ 21.89 $ 24.57 $ 21.16 $ 19.00 $ 17.61 North Sea 25.56 27.76 23.63 22.43 - Indonesia 25.62 27.22 23.76 22.40 - Other - - - 10.17 7.24 Natural gas liquids Canada 22.39 21.13 18.04 16.56 16.18 North Sea 24.19 21.41 18.90 17.61 - Synthetic oil (Canada) 27.78 29.09 23.81 21.71 20.59 ------------------------------------------------------------------------- Total oil and liquids 24.25 25.93 22.06 19.63 17.49 ------------------------------------------------------------------------- Natural gas ($ per mcf) Canada 1.98 1.71 1.37 1.89 1.68 North Sea 3.89 3.37 3.63 3.78 - ------------------------------------------------------------------------- Total natural gas 2.27 1.94 1.61 1.95 1.68 ------------------------------------------------------------------------- Total ($/boe) 22.91 22.50 18.74 19.38 17.14 ------------------------------------------------------------------------- Table 9 TALISMAN ENERGY INC. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (millions of Canadian dollars unless otherwise stated) ------------------------------------------------------------------------- Three months ended Total Year Dec 31 Sep 30 Jun 30 Mar 31 ------------------------------------------------------------------------- 1997 Total revenue $ 1,430.0 $ 432.8 $ 319.4 $ 301.9 $ 375.9 Net income 77.1 11.0 15.6 5.0 45.5 Cash flow 797.4 246.7 169.9 150.2 230.6 Per common share (dollars) Net income 0.70 0.10 0.14 0.05 0.42 Cash flow 7.29 2.25 1.55 1.37 2.11 Daily average production Oil and liquids (bbls/d) 130,177 150,259 124,928 120,829 124,465 Natural gas (mmcf/d) 658 759 600 610 668 Total (mboe/d) 203 235 190 188 199 ------------------------------------------------------------------------- 1996 Total revenue $ 1,212.8 $ 359.0 $ 288.1 $ 283.6 $ 282.1 Net income 94.9 26.4 18.3 10.4 39.8 Cash flow 697.4 217.9 160.4 150.5 168.6 Per common share (dollars) Net income 0.91 0.24 0.17 0.10 0.41 Cash flow 6.71 2.00 1.47 1.49 1.74 Daily average production Oil and liquids (bbls/d) 99,960 107,905 101,429 95,958 94,443 Natural gas (mmcf/d) 647 668 601 654 667 Total (mboe/d) 171 183 165 167 168 -------------------------------------------------------------------------

To: Kerm Yerman who wrote (9434) 3/5/1998 9:40:00 PM From: Arnie   Respond to of 15196   FIELD ACTIVITIES / Compton Petroleum enters Into Farm-In CALGARY, March 5 /CNW/ - Compton Petroleum Corporation (''Compton'') announced today that it has entered into a 3 year exploration and area of mutual interest (''AMI'') agreement with PanCanadian Petroleum Limited in the Okotoks/Vulcan area of Southern Alberta. The agreement includes a significant drilling program, covers a 14 township (330,000 acre) AMI, and allows Compton immediate access to 250 sections (160,000 acres) of quality land and drilling opportunities, on a farm-in basis, in its core producing area. Compton will provide processing for all gas production within the AMI at its Mazeppa and Gladys Gas Plants. A natural gas liquids recovery system and additional plant capacity and infrastructure are being planned for the 83 mmcf/d Mazeppa Sour Gas Plant. Compton Petroleum Corporation is a Calgary-based company actively engaged in the exploration, development and production of natural gas, natural gas liquids and crude oil in Western Canada. Approximately 95% of Compton's current production and reserves are comprised of natural gas and associated liquids. Compton's common shares trade on The Toronto Stock Exchange under the trading symbol ''CMT''.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:43:00 PM From: Arnie   Respond to of 15196   GENERAL INTEREST / Terra Nova selects Bull Arm Site for Fabrication ST. JOHN'S, Nfld., March 5 /CNW/ - The Terra Nova Alliance has selected the Bull Arm Site, for fabrication of topsides modules for the Terra Nova Floating Production Storage and Offloading (FPSO) vessel. At a news conference this afternoon, PCL Industrial Constructors, a Canadian company and member of the Terra Nova Alliance, announced it is leasing the Bull Arm Site from the province of Newfoundland and Labrador for fabrication work associated with the development of Terra Nova. ''We are pleased that Bull Arm is one of two main sites for fabrication work for Terra Nova,'' said Alan Bodie, President of PCL Constructors Inc. ''While we assessed a number of local, national and international yards for fabrication capability, selecting Bull Arm for topsides fabrication meant we could deliver on Terra Nova's benefits commitments while maintaining our focus on cost and schedule.'' The Terra Nova vessel will require four major modules between 1000-1800 tonnes each, as well as a turret, flare stack and miscellaneous deck assemblies. Two of the four major modules will be fabricated at Bull Arm as well as the flare stack and deck assemblies. BARMAC, a company based in Scotland, and a joint venture partner of PCL, will also fabricate two modules. Hook up and commissioning of the FPSO and topsides will take place at Bull Arm. ''The development proponents are committed to furthering the industrial capabilities available in Newfoundland to service a growing industry'', commented Gary Bruce, Vice-President, Offshore Development and Operations, Petro-Canada. ''We are delighted the Bull Arm Site has been selected for a significant portion of topsides fabrication activity. The strategy employed by PCL for the fabrication of topsides modules provides an opportunity for the exchange of technology between an international company with 25 years experience in fabricating topsides facilities, and a Canadian company which has demonstrated significant commitment to industrial development in the province.'' The topsides fabrication strategy will see two utility modules built at Bull Arm - Water Injection Module and Produced Water Module. The two process modules for Separation /Compression will be fabricated at BARMAC. The division of work between BARMAC and Bull Arm provides for an exchange of knowledge and experience, sharing of project management expertise as well as software systems and work processes. Terra Nova's overall direct labour demand includes personnel to manage, engineer, fabricate, install and commission the production system and subsea systems, as well as drilling and operations personnel. It is expected that between 900-1100 persons will be employed in Newfoundland during peak pre-production activity, 600-700 of whom will be associated with topsides fabrication activity at Bull Arm. Overall, about 70 per cent of the 2.2 million person-hours associated with fabrication, hook up and commissioning of the topsides modules will occur in Newfoundland. Vince Burton, Executive member of the International Building Trades Petroleum Development Association, formed in April 1997 as part of the labour arrangements for the Bull Arm Site, said, ''Today's announcement is recognition that work can be done in Newfoundland competitively. We have a skilled workforce, the fabrication sites and the willingness of industry, labour and government to work cooperatively to achieve results.'' Topsides fabrication will commence in September 1998. The Terra Nova development consists of an FPSO capable of producing 125,000 barrels of oil per day. A total of 24 wells will be drilled, six before start up, to recover an estimated 370 million barrels of oil. Average peak production is estimated at 115,000 barrels of oil per day. Total project costs will be $4.5 billion. The Terra Nova development proponents are: Petro-Canada, operator, (29%), Mobil Oil Canada Properties (22%), Husky Oil Operations Ltd. (17.5%), Norsk Hydro Canada Oil & Gas (15%), Murphy Oil Company Ltd. (12%); Mosbacher Operating Ltd. (3.5%) and Chevron Canada Resources (1%). The Terra Nova Alliance is a consortium of companies led by Petro-Canada to design, construct and install the FPSO, subsea components and pre-production wells necessary for the development of the Terra Nova oil field. The Alliance consists of: Petro-Canada, Shawmont Brown and Root, Halliburton Energy Services, FMC Offshore Canada Ltd., PCL Industrial Constructors Inc., Coflexip Stena Offshore Newfoundland Ltd. and Doris ConPro Offshore Ltd. The Terra Nova oil field is located on the Grand Banks 350 kilometres east-southeast of St. John's, Newfoundland. Discovered in 1984, Terra Nova is the second largest oil field off Canada's East Coast.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:45:00 PM From: Arnie   Respond to of 15196   ACQUISITION / Tribute Resources acquires Assets from Paragon Petroleum CALGARY, March 5 /CNW/ - Tribute Resources Inc. (ASE: TRB) is pleased to announce that on February 25, 1998, it completed a purchase of assets from Paragon Petroleum Corporation of Calgary for $160,000 cash. The assets purchased included a 100% interest in 4479 acres of petroleum and natural gas leases and 4472 acres of natural gas storage leases within Ontario's northern pinnacle reef belt. It also included a 50% working interest in three natural gas wells and a 100% working interest in nine other natural gas wells, associated pipeline infra-structure and production facilities located in Huron County, Ontario. The leases, pipeline infrastructure and production facilities augment Tribute's current exploration position in the region. The twelve producing wells have delineated seven pinnacle reef structures. Three of these reef structures have not yet been produced and will be evaluated and placed on production in the near future,

To: Kerm Yerman who wrote (9434) 3/5/1998 9:46:00 PM From: Arnie   Respond to of 15196   DISPOSITION / Occidental Petroleum to sell Some Texas Holdings LOS ANGELES, March 5 /CNW/ -- Occidental Petroleum Corporation (NYSE: OXY) announced today that it has agreed to sell its natural gas interests in the West Panhandle field in the Texas Panhandle to Chesapeake Energy Corporation for $105 million. The transaction is expected to close by the end of May, effective as of January 1, 1998. The sale is part of Occidental's previously announced program to divest nonstrategic assets to partially fund its acquisition of the Elk Hills field in California and to repurchase up to 40 million shares of its common stock.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:50:00 PM From: Arnie   Respond to of 15196   GENERAL INTEREST / Suncor Energy & Niagara Mohawk Deal Gives Suncor Energy Option to Purchase 10 Million Metric Tonnes of Emission Reductions From Niagara Mohawk over 10 Years Suncor Energy Inc. and Niagara Mohawk Power Corporation, of Syracuse, N.Y., today announced a ground-breaking greenhouse gas emissions trade. The two companies hope the agreement, which has a potential value of $10 million CDN, will be a first step towards the creation of a global market and an international trading system for reductions in emissions of greenhouse gases, such as carbon dioxide CO(2). The agreement has won praise from both the Canadian and U.S. governments as a demonstration of a market-based approach to reducing greenhouse gas emissions. Suncor Energy has agreed to make an initial purchase of 100,000 metric tonnes of greenhouse gas emission reductions from Niagara Mohawk with an option to buy up to an additional 10 million tonnes of reductions over a 10-year period. The agreement is designed to help Suncor Energy achieve its voluntary emission reduction targets, while providing Niagara Mohawk with additional funding for new projects that will further reduce global concentrations of greenhouse gases in the atmosphere. Under the terms of the agreement, a minimum of 70% of the net proceeds from the sale will be re-invested in such new projects, creating additional environmental benefits from the trade. ''Our agreement with Niagara Mohawk is part of Suncor Energy's broad-based action plan to address the risk of global climate change,'' says Rick George, Suncor Energy's president and chief executive officer. ''Our first priority is to manage our own greenhouse gas emissions, and we have a solid track record in this area. But to meet the Kyoto targets we need the flexibility to pursue actions outside of our operations in Canada and internationally that reduce greenhouse gases in the atmosphere.'' Suncor Energy's agreement with Niagara Mohawk follows close on the heels of Suncor Energy's participation in a forest conservation program in Belize and its investment in the generation of wind power in Alberta. ''This is a pioneering agreement,'' said Niagara Mohawk's chairman and chief executive officer William E. Davis. ''In the wake of the Kyoto conference, many have questioned whether economically efficient approaches such as this will work to address the risk of global climate change. By making this international trade, Niagara Mohawk and Suncor Energy are helping to forge a new market place that will help make those options viable.'' Niagara Mohawk has reduced its own greenhouse gas emissions significantly below 1990 levels through a variety of measures, including power plant performance and energy efficiency improvements, use of less polluting fuels, and development of renewable energy resources. The Company has also been a leader in entering into emissions reduction trades with other companies and re-investing the proceeds in projects that result in further emission reductions. These trades include an earlier agreement with Arizona Public Service, of Phoenix, which resulted in reductions of both CO(2) and sulphur dioxide SO(2) emissions. In order to implement the agreement, Niagara Mohawk's emission reductions will be documented and deposited into an account administered by the Environmental Resources Trust, a non-profit environmental organization founded by the Environmental Defense Fund (EDF). ''Coming just after the historic Kyoto climate agreement to limit greenhouse gas emissions, these companies are offering an actual example of international greenhouse gas emissions reduction trading -- one of the most critical elements of the climate agreement, yet one that is not widely understood in many quarters,'' said ERT board member Daniel J. Dudek, who is also a senior economist at EDF. ''Thanks to this trade, Niagara Mohawk and Suncor Energy are offering the world an opportunity for learning by doing.'' Niagara Mohawk's Davis says now that the agreement has been reached, the two companies are ready to support further positive action. ''We look forward to working with Suncor Energy, the United States and Canadian governments, and other companies to make this agreement a case study for an international trading system for greenhouse gas emission reduction credits.'' George says he is optimistic that Suncor Energy's participation in a cross-border emission reduction trade will encourage international policy development. ''Suncor Energy intends to be a leader in encouraging greenhouse gas reduction efforts in Canada, the United States and around the world,'' said George. ''Our emission reduction purchase is just one part of a multi-faceted strategy to reduce our own emissions, develop alternative energy opportunities, and invest in authenticated greenhouse gas emission reductions.'' Niagara Mohawk is an investor-owned energy services company based in Syracuse, N.Y. It provides electricity to more than 1.5 million customers in upstate New York, and natural gas to more than 530,000 customers in eastern, central and northern New York. Suncor Energy is a Canadian integrated energy company operating an oil sands plant in Fort McMurray, Alberta; a conventional exploration and production business in Western Canada; a refining and marketing operation in Ontario and Quebec; and an oil shale development project in Queensland, Australia. Suncor Energy common shares are listed for trading on the Toronto, Montreal and New York stock exchanges. Note: This news release contains forward-looking information. Actual future results may differ materially. The risks, uncertainties and other factors that could influence actual results are described in Suncor Energy's annual report to shareholders and other documents filed with regulatory authorities. For more information about Niagara Mohawk or Suncor Energy, please see the attached backgrounders, visit our websites at www.nimo.com and www.suncor.com. SUNCOR BACKGROUNDER SUNCOR ENERGY AND INTERNATIONAL EMISSION REDUCTION TRADING ''If we are committed to investing money to reduce overall emissions in the atmosphere, we want to get the biggest environmental and economic bang for our buck. And because this is truly a global issue, in some cases we might be better to spend our money somewhere else - even in another part of the world. So, at the same time as Suncor Energy is working to improve our own environmental performance, we are looking at other solutions....One idea that will be discussed at Kyoto, and that we fully support, is creating a system of domestic and international credits to encourage greenhouse gas reduction efforts around the globe. These credits could be exchanged or traded in the open market. In fact, in the United States they are already using a credit system to manage various emissions with very good effect, and they are well down the road in developing a similar approach to greenhouse gas reductions.'' - Rick George to the Vancouver Board of Trade, December 1, 1997 SUNCOR ENERGY'S FRAMEWORK FOR ACTION ON GLOBAL CLIMATE CHANGE Suncor Energy is committed to leadership and action in seven areas that address the risk of climate change. These include: 1. Managing our own GHG emissions and their impact: Suncor Energy has produced a progressive greenhouse gas management plan as part of our participation in Canada's Voluntary Challenge and Registry program. Suncor Energy's plan was rated fifth among nearly 600 plans by the Pembina Institute for Appropriate Development, and Suncor Energy has been recognized by the federal government for leadership in this area. 2. Developing alternative and renewable sources of energy: Suncor Energy has formed an alternate energy team to pursue alternative sources of energy as part of our portfolio of business opportunities. We will be examining energy sources such as wind energy, biomass energy and solar power. The Company has recently introduced ethanol-enhanced gasolines at all of its Sunoco retail stations in Ontario, and is pursuing more greenhouse-gas-efficient ways to produce ethanol. Suncor Energy also recently announced its participation in a wind power generation project with Vision Quest Windelectric Inc. of Calgary. 3. Supporting environmental and economic research: Suncor Energy is working with research institutions to develop more advanced production and processing technology for conventional, synthetic and heavy crude oil production that will reduce GHG emissions. This includes technologies such as downhole water/oil separation and flare gas recovery. Suncor Energy is also working with industry associations and governments on selected research projects to address the environmental and economic policy aspects of climate change. 4. Pursuing domestic and international offsets: Offsets are GHG emission reductions that are achieved through actions that either reduce, prevent or absorb the emission of GHGs to offset a company's own emissions. This can include investment in forest conservation projects, technology transfer to developing countries, energy efficiency investments, cogeneration, alternate energy and improving energy infrastructure. Suncor Energy's activities in this area include the Company's emission reduction trade with Niagara Mohawk Power Corp. and its participation in the Rio Bravo forest conservation project in Belize. 5. Providing constructive public policy input in support of sustainable solutions: Suncor Energy is engaged with its communities and various stakeholder organizations to address climate change policy at provincial, national and international levels. This includes participation in the World Business Council on Sustainable Development's efforts related to climate change. We also work closely with the Business Council on National Issues, the Canadian Association of Petroleum Producers and the Canadian Petroleum Products Institute. 6. Educating and engaging our employees, customers and communities on the issue of global climate change: Suncor Energy supports education on climate change at a community level through sponsorship of the Friends of Environmental Education Society of Alberta's education program on air quality. We also support the Pembina Institute's Eco- efficient Communities initiative in Alberta and Pollution Probe's Clean Air Campaign in Ontario, and plan to further fund global climate change education initiatives. 7. Measuring and reporting on our progress: Suncor Energy takes a thorough and open approach to measuring its Environment, Health and Safety performance, and this includes measurement of its progress in reducing GHG emission. Formal public reports include the Company's annual progress report to the Voluntary Challenge and Registry, and our corporate environment, health and safety report, both of which are available in hard copy format and on Suncor Energy's website at www.suncor.com. NIAGARA MOHAWK BACKGROUNDER Niagara Mohawk Position on Global Warming Niagara Mohawk Power Corporation agrees with the conclusions of the US National Academy of Sciences and Intergovernmental Panel on Climate Change regarding global warming; namely, that despite the many remaining scientific uncertainties surrounding the issues, it is better to take reasonable, cost-effective mitigation actions now rather than waiting. Actions which help mitigate potential global warming, such as improving energy efficiency, expanding renewable energy resources, and reducing pollution of all kinds, can create environmental and economic benefits in their own right. Niagara Mohawk also believes voluntary early actions in response to possible global warming will be important in meeting any national or international goals ultimately instituted to deal with this issue. Corporate Actions in Response to Global Warming Niagara Mohawk Power Corporation's activities and initiatives in response to the threat of global climate change were first announced in the Company's Greenhouse Warming Action Plan, which was issued in October 1992, approximately four months after the signing of the Framework Convention on Climate Change in Rio de Janeiro, and about a year before the release of the President's Climate Change Action Plan in 1993. At that time, William E. Davis, Niagara Mohawk's chairman and chief executive officer, committed the Company to limiting its emissions of carbon dioxide CO(2) to 1990 levels or below by the year 2000. Subsequently, the Company also signed a Climate Challenge Participation Accord with the US Department of Energy confirming this commitment. Niagara Mohawk has already undertaken and plans to undertake a variety of cost-effective actions and programs to reduce CO(2) and other greenhouse gas emissions. Examples include: - Energy supply measures such as power plant performance improvements; increased use of wind, solar and hydropower; and, increased utilization of natural gas; - Efficiency measures such as Demand Side Management, materials recycling, and geothermal heat pump program; - Other programs such as alternative fuel vehicles, recovery of ozone-depleting greenhouse gases, and biomass energy development; and, - Cooperative, joint implementation actions with other companies, such as emissions trading and joint industry initiatives sponsored by the Edison Electric Institute. The efforts undertaken by Niagara Mohawk to date have met with significant success. Company emissions of CO(2) in 1997 were approximately eight million tons below 1990 emission levels, a reduction of almost fifty percent. Total emissions, including indirect emissions from external energy sources, were reduced in 1997 by almost twenty-five percent below 1990 levels. The variety of energy supply measures, energy demand measures, and other reduction activities have resulted in an estimated cumulative reduction of approximately twenty million tons of CO(2) emissions since 1990. Prior Greenhouse Gas Emissions Trade In December of 1996, Niagara Mohawk finalized an interpollutant trade agreement with the Arizona Public Service Company (APS) under which 2.5 million tons of CO(2) reductions achieved by Niagara Mohawk through its emission reduction activities were transferred to APS. The CO(2) reductions traded to APS will be recognized by the Department of Energy (DOE) as applicable toward commitments made by APS in its Participation Accord with DOE. Niagara Mohawk has agreed to limit any such exchange transaction to CO(2) reductions that are ''surplus,'' that is, reductions beyond those needed to achieve a 1990 emissions level, including both Niagara Mohawk direct and indirect emissions. Also under the agreement, any financial benefit that accrues to Niagara Mohawk due to the trade will be used to fund additional projects that will further reduce CO(2), creating a net benefit to the environment.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:53:00 PM From: Arnie   Respond to of 15196   CORP. / Petro-Canada comments on Hibernia Production CALGARY, March 5 /CNW/ - Norm McIntyre, Executive Vice-President, commented today on behalf of Petro-Canada on current operations at the Hibernia oil field offshore Newfoundland. ''We are pleased with the progress of the Hibernia drilling program and the performance of the reservoir to date,'' McIntyre said. ''We remain comfortable that Petro-Canada will realize its anticipated 1998 production from Hibernia. There will be variations in production throughout the year, which we have expected in the start-up of this large waterflood operation.'' ''The first two wells showed excellent reservoir quality and initial production rates - together averaging above 50 000 barrels per day during January and February. These wells are now shut in to allow for the assessment and management of pressure in the reservoir. Production will likely be significantly lower in the Second Quarter, and indeed there will be ups and downs throughout the first year of operations. Variability was expected and accounted for in our projections for overall production in 1998.'' ''Completion and tie-in of water and gas injection facilities at mid-year, together with completion of additional wells, are planned to give us the ability to manage reservoir pressure effectively and achieve stabilized production rates. We expect higher production rates in the second half of the year.'' McIntyre emphasized that the Corporation's overall targets for 1998 Hibernia production remain unchanged. ''We anticipate that we will achieve planned production over the full year. Our share of production will average 12 000 to 15 000 barrels per day in 1998.'' Petro-Canada has a 20 per cent interest in the Hibernia development. Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and the downstream sectors of the industry. Its common and variable voting shares trade on Canadian exchanges under the symbol PCA, and its variable voting shares trade on the New York Stock Exchange under the symbol PCZ.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:54:00 PM From: Arnie   Respond to of 15196   SERVICE SECTOR / Total Energy Services Ltd Financing & Acquisitions CALGARY, March 05 /CNW/ - Total Energy Services Ltd. (''Total'') is pleased to announce that it has completed its previously announced $10 million special warrant financing pursuant to which Total sold 4,761,905 special warrants at a price of $2.10 per warrant through a syndicate comprised of Peters & Co. Limited, RBC Dominion Securities Inc. and Canaccord Capital Corporation. In addition, Total has secured a $12 million five-year term loan and a $2 million equipment acquisition facility through the Hongkong Bank of Canada. Total has also completed its previously announced $15 million acquisition of all of the assets related to the business of Elm Oilpatch Rentals Ltd. (''Elm''), paid for with $12 million in cash and $3 million in common shares at an ascribed price of $2.50 per share. Elm provides rental equipment and transportation services to the gas drilling sector in northwestern Alberta. This business adds a significant rental network to the existing equipment rental operations of Total. The effective date of the acquisition was January 3, 1998. Total is an energy services company involved in the rental of equipment to the oil and gas drilling industry in northwestern Alberta.

To: Kerm Yerman who wrote (9434) 3/5/1998 9:58:00 PM From: Arnie   Respond to of 15196   EARNINGS / Barrington Petroleum reports 1997 Results CALGARY, March 5 /CNW/ - Barrington Petroleum Ltd. today announced financial and operational results for 1997. << Year Ended December 31 Change 1997 1996 FINANCIAL ($m unless otherwise indicated) Revenue before royalties 128,901 93,462 38% Cash flow from operations 57,134 43,923 30% Per share basic ($) 1.05 0.97 8% Per share fully diluted ($) 0.95 0.89 7% Net earnings 4,948 9,481 -48% Per share basic ($) 0.09 0.21 -57% Per share fully diluted ($) 0.09 0.20 -55% Weighted average number of common shares outstanding (m) Basic 54,666 45,384 20% Fully diluted 62,312 50,794 23% Year end number of common shares outstanding (m) Basic 59,145 52,730 12% Fully diluted 67,986 61,345 11% Capital expenditures, net 157,210 138,726 13% Long term debt 134,430 80,188 68% Working capital deficiency 13,578 741 1732% PRODUCTION Natural gas Millions of cubic feet (mmcf) 40,344 29,467 37% Millions of cubic feet per day (mmcf/d) 111 81 37% Price before hedging ($/mcf) 1.95 1.69 15% Price after hedging ($/mcf) 1.87 1.69 11% Oil and liquids Barrels 2,605,256 1,661,690 57% Barrels per day (bbls/d) 7,138 4,540 57% Price before hedging ($/bbl) 20.95 26.13 -20% Price after hedging ($/bbl) 20.61 24.55 -16% Barrels equivalent production (boe/d - 10:1) 18,191 12,591 44% OPERATIONS Net wells drilled 155 73 112% Net metres drilled (m) 146.6 74.6 97% Net success rate 74% 75% Undeveloped net acres of land 960,243 785,090 22% Average working interest 75% 68% >> 1997 highlights Barrington recorded a 37% increase in natural gas production and a 57% increase in crude oil production, for an overall gain of 44% on a barrel of oil equivalent (boe) basis. Cash flow was 30% higher, at $57.1 million, while basic cash flow per share was 8% higher at $1.05. On a proven plus one-half probable basis, reserves at year-end were up 26%, while finding and development costs for 1997 amounted to $6.30 per barrel of oil equivalent. Production growth ''I am pleased to report that we achieved both our average and our exit production targets for 1997,'' said Barrington's president, Brian Gore. He continued, ''Our exit production rate exceeded 20,100 boe/d, of which 63% was natural gas and natural gas liquids. Our 1998 capital program is directed towards increasing this leverage, in order to position Barrington for an expected rise in gas prices later this year.'' After selling 13 mmcf/d of non-strategic gas producing assets, Barrington's 1997 natural gas production rose to 111 mmcf/d from 81 mmcf/d in 1996. This increase was derived from new production at Rainbow and Zama in northwestern Alberta, development drilling and facilities expansion at Greencourt in central Alberta, and continued development drilling in northeastern Alberta. Average daily oil and liquids production was 7,138 bbls/d in 1997 (net of 900 bbls/d sold during the year), an increase of 2,598 bbls/d over 1996. Oil production growth resulted from exploratory and development drilling in southeastern Saskatchewan, exploratory success at Sakwatamau in west central Alberta and the addition of 1,200 bbls/d of heavy oil in the company's Meridian region. Mr. Gore added, ''During 1997, Barrington's actual production growth was 10,258 boe/d, of which 63% was achieved by drilling and 37% from acquisitions. The sale of non-core properties reduced the net impact of this growth by about 2,200 boe/d.'' Barrington's 1997 natural gas price climbed to $1.87 per mcf, up from $1.69 per mcf last year. Oil and liquids prices were lower, at $20.61/bbl compared to $24.55/bbl in 1996, reflecting lower world prices and the inclusion of a greater proportion of heavy oil in the company's crude oil stream. Financial results Barrington's cash flow from operations reached a record $57 million in 1997, up from $44 million the previous year. Cash flow per share also increased to $1.05, up from $0.97 in 1996. Earnings per share, at $0.09, were down from $0.21 in 1996, due to a higher effective deferred tax rate resulting from acquisition activity, slightly increased depletion rates and lower oil prices. Fixed and floating rate long-term debt of $134 million at year-end was essentially on budget. Approximately $10 million of capital expenditures, originally budgeted for 1998, were accelerated into the fourth quarter of 1997. In addition, a $7 million property sale scheduled for closing late in December, 1997 was delayed. This gave rise to a year-end working capital deficit of $13.6 million, which will be reduced in the first quarter of 1998. Capital expenditures and reserves In 1997, Barrington's capital expenditures amounted to $157.2 million net of dispositions. This program added established reserves of 25.0 million boe, replacing 1997's production of 6.6 million boe by a factor of 3.8 times. Commenting on 1997's successful reserves replacement, Mr. Gore said ''In the face of sharply higher costs for services and a very competitive environment for land and property acquisitions, we are pleased that our 1997 finding and development costs, at $6.30 per boe for established reserves, were in line with industry averages. We also increased our undeveloped acreage position by 22% from 785,000 net acres to 960,000 net acres.'' << Reserves 1997 1996 Change Natural Gas (mmcf) Proved 243,841 263,409 -7% Probable 48,437 59,374 -18% ------------------- Total 292,278 322,783 -9% ------------------- Oil and NGL's (mbbls) Proved 28,316 16,771 69% Probable 20,488 11,618 76% ------------------- Total 48,804 28,389 72% ------------------- BOE (10:1) Proved 52,700 43,112 22% Probable 25,332 17,555 44% ------------------- Total 78,032 60,667 29% ------------------- Net present value before income taxes, risked as to 50% for probable reserves ($mm) Undiscounted 856,497 916,794 -7% Discounted at 10% 467,305 502,928 -7% Discounted at 15% 383,005 413,404 -7% Finding and development costs Reserve Additions and Finding and on-stream Dispositions cost per BOE --------------------- --------------------- Proved + Capital Total Risked Proved + Expenditures Proved Probable Proved Probable Probable ----------- ------ -------- ------ -------- -------- ($mm) (Mboe) (Mboe) ($/boe) ($/boe) ($/boe) 1997 Exploration and development 124,672 20,668 8,662 6.03 4.99 4.25 Corporate & property acquisitions 81,681 8,476 3,844 9.64 7.86 6.63 Property dispositions (50,871) (8,808) (3,287) 5.78 4.87 4.21 Head office expenditures 1,728 -- -- -- -- -- ------------------------------------------------------ Current year net reserve additions 157,210 20,336 9,219 7.73 6.30 5.32 Revisions to prior years -- (4,105) (1,442) -- -- -- ------------------------------------------------------ Total 157,210 16,231 7,777 9.69 7.81 6.55 ------------------------------------------------------ ------------------------------------------------------ 3 year average, including revisions 353,520 48,815 21,320 7.24 5.94 5.04 ------------------------------------------------------------------------ 5 year average, including revisions 458,219 64,888 23,683 7.06 5.97 5.17 ------------------------------------------------------------------------ >> Asset disposition program During 1997, Barrington sold producing properties for cash proceeds of $51 million in fourteen separate transactions. ''We are pleased with the outcome of this process'', said Mr. Gore, ''since Barrington is now more streamlined and more focussed. We will continue selling assets which are mature or are no longer strategic to our business plan, and will recycle the capital into liquids-rich natural gas reserves in western Alberta.'' << 1993-1997 average finding and development cost Drilling results 1997 1996 Gross Net Gross Net Oil 124 92.9 49 38.2 Gas 48 22.0 27 16.5 Water injection 1 0.4 Dry & abandoned 47 40.1 23 18.1 ---------------------------------- Total 219 155.0 100 73.2 ---------------------------------- ---------------------------------- Success rates 79% 74% 77% 75% >> Outlook Barrington's board of directors has approved a revised 1998 capital expenditure budget of $100 million. This will be funded by expected cash flow of $60 million, additional equity through the projected exercise of warrants and stock options of $21 million, and additional debt of $19 million. This program will result in 1998 year-end debt, net of working capital, of $167 million, or less than two times 1999 projected cash flow. If commodity price fluctuations alter cash flow expectations significantly, then the company will expand or reduce its capital program accordingly. Mr. Gore concluded, ''Barrington has never looked better. Two years ago, we began building a presence in western Alberta where multi-zone geological horizons yield long life, liquids-rich natural gas reserves as well as light oil. Today, 47% of our production base and 44% of our unexplored acreage are located in this region. This transformation is about to reward our shareholders' patience. In effect, the lack of pipeline transportation capacity to export markets has trapped gas inside Alberta. Early in November, new pipeline capacity comes on line. Barrington will capture the maximum benefit because of the manner in which our natural gas contract portfolio is structured.'' ''Rigorous focus on Barrington's strategic plan has successfully grown our company from a junior to a strong intermediate producer. Executing our long term plan will extend our success story well beyond 1998.''

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