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

To: Arnie who wrote (9585)	3/18/1998 1:25:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Imperial Oil Suspends Cold Lake Phases 1 - 10 COLD LAKE PHASES 1-10 DEVELOPMENT WORK DEFERRED CALGARY, March 17 /CNW/ - Imperial Oil Limited announced today that it has suspended development work at its Cold Lake Phases 1-10 operations. These actions will have no significant impact on near-term production volumes. All field development work, including drilling and construction of field facilities has been temporarily halted. In addition, discretionary field operating expenses, including steaming operations are being evaluated. ''Low crude oil prices, wide light/heavy spreads and high diluent costs are putting pressure on the profitability of the Cold Lake operation,'' explains Howie Dingle, vice-president and general manager, oil sands. ''We believe it is prudent to take these actions in light of current business conditions.'' These steps will result in a reduction in the need for contractor services and may require re-deployment of some Imperial Oil employees. Imperial will continue its ongoing work to secure regulatory approval for the proposed Cold Lake Phases 11-13 expansion project.

To: Arnie who wrote (9585)	3/18/1998 1:32:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Husky Oil Pucheng Project CNPC - HUSKY PUCHENG FIELD PROJECT MOVES FORWARD CALGARY, March 17 /CNW/ - The joint operating body of the China National Petroleum Corporation (CNPC) and Husky Oil China Ltd. (Husky) announced today the opening of an office in Puyang, China, and the completion of a work plan for the start up of the first phase of field operations for the Pucheng oil field in Henan Province. The Pucheng field project is the first full field incremental oil recovery project to be operated by a foreign petroleum company in China. These activities precede the start up of field operations scheduled for early April, as outlined in an Incremental Oil Recovery Contract signed by Husky and the CNPC in August 1997. Since August, a team of personnel from Husky and the Zhongyuan Petroleum Exploration Bureau (ZPEB) of CNPC, have prepared a detailed technical evaluation of the project and completed front-end engineering to define the field testing program to be carried out over the next 12 to 18 months. The objective of the field testing program is to determine the amount of potential incremental oil production that can be obtained before proceeding with full-scale development. Beginning in April, joint operating body specialists will conduct well tests, work overs and recompletion work on approximately 25 wells, employing several advanced production technologies. Incremental oil production sharing will commence as these wells are placed on production during the balance of 1998. Pending the result of the evaluation and testing program, full scale development spending is projected to be in excess of $150 million Cdn. Puyang City is approximately 550 km south of Beijing. Approximately 10 Husky employees will initially work from the office and they will be supported by teams in Husky's offices in Calgary, and at the ZPEB. Husky Oil China Ltd. is a subsidiary of Husky Oil Limited. Husky Oil Limited is a Canadian-based integrated oil and gas company headquartered in Calgary, Alberta. The Company's operations include: the exploration and development of crude oil and natural gas; the production, purchase, transportation, upgrading, refining and marketing of crude oil, natural gas, natural gas liquids, sulphur and petroleum coke; and the marketing of refined petroleum products. Husky Oil Limited is a privately held company controlled by the Hong Kong-based Li Ka-Shing Group of companies.

To: Arnie who wrote (9585)	3/18/1998 1:35:00 AM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / HEGCO Canada Reports Status Of El Grande Well HEGCO CANADA, INC. - FACTS REGARDING THE EL GRANDE WELL EDMOND, Oklahoma, March 17 /CNW/ - The President and Chairman of HEGCO Canada, Inc., Douglas C. Hewitt, announced today that through numerous inquiries, the Company has discovered that some shareholders have been given false information regarding the El Grande well from uninformed individuals. In an attempt to clarify the current status of the Arkansas operations, including the El Grande well, the management is providing the following statement: 1. The Company has identified, through in-depth log analysis, 47 different potential pay intervals. The net estimated potential pay intervals total 1,800 feet contained in a gross estimated potential pay interval of 5,000 feet. 2. Actual evaluation through treatment of the reservoir is expected to begin today, March 17, 1998, barring any mechanical or weather related problems. The Company will begin its initial evaluation by treating 10 different porosity developments over 690 feet with net perforations of 433 feet. The evaluation will encompass analysis of gas flow potentials over the perforated intervals. The sections to be treated range from a 2 foot open cavern to a 90 foot section of interconnected fractures and vugs. The evaluation of this first interval represents only a small portion of potential pay intervals within this well, although the length of the 690 foot interval is significant when compared to analogous fields. 3. The initial evaluation is being conducted below the 10,000 foot level under high pressure procedures; therefore, results will not be instantaneous. Evaluation may last several weeks. To date the delays have been minimal and operations are progressing at a normal and expected pace. 4. The only field which is analogous to this potential discovery is the Wilburton field, in the Arkoma Basin, approximately 160 miles to the west. The Wilburton field has produced most of its estimated reserves of one-half trillion cubic feet of gas from the Arbuckle zone. The Wilburton field has an average of 800 feet of gross Arbuckle pay with a net porosity pay of 100 to 200 feet. The El Grande has a gross estimated potential pay interval of 5,000 feet with net estimated potential pay interval of 1,800 feet. 5. The management is confident that gas is present within this well for the following reasons: A. During the initial drilling of this well significant gas flares were encountered. These gas flares correlate with the substantial porosities which were logged on February 2, 1998 through use of the Schlumberger Formation Imaging (''FMI'') log; B. The Schlumberger FMI log confirmed the potential of a high quality reservoir system through fractures and vugs, C. The Ultra Sonic Cement Evaluation log run by the Company on March 2, 1998 confirmed the presence of gas within the cement surrounding the casing of the well after re-entry and casing. 6. The Company has not encountered water in the well, other than the water utilized in the re-entry and drilling process. When the well was originally drilled, it was drill stem tested with the results indicating gas and no water recovery. Based on the above, the Company does not believe it will encounter water within the well. 7. The Company has continued to aggressively acquire acreage within the indentified potential reservoir area. The Company now has acreage located in 26 square miles. The Company would like to remind shareholders that it has retained the services of an investor relations firm, from which accurate and up to date information can be obtained, by contacting Kelly Boatright at (800) 492-9572.

To: Arnie who wrote (9585)	3/18/1998 1:40:00 AM
From: Kerm Yerman	Respond to of 15196

PROPERTY ACQUISITION / Goldnev Resources Purchases Interest In Texas Property GOLDNEV RESOURCES INC. ANNOUNCES IT HAS REACHED AN AGREEMENT-IN- PRINCIPLE TO PURCHASE INTEREST IN PETROLEUM AND NATURAL GAS RIGHTS VANCOUVER, March 17 /CNW/ - GOLDNEV RESOURCES INC. TRADING SYMBOL: VSE-GNZ GOLDNEV RESOURCES INC. (''the Company'') is pleased to announce it has reached an agreement-in-principal to purchase a 50% interest in petroleum and natural gas rights pertaining to 1,932.8 acres (Sections 39, 40, and 41) located in Crockett and Val Verde Counties, west Texas. The Company is required to pay a total of US$111,146. The property is encumbered by an underlying 25% net revenue royalty payable to a third party(s). Concurrently, the Company is pleased to announce an agreement-in- principal to purchase a 50% interest in petroleum and natural gas rights on an adjoining property of 651 acres (Section 42) located in Crockett County, west Texas. The Company is required to pay US$37,432.50 to earn its interest. The property is encumbered by an underlying 25% net revenue royalty payable to a third party(s). Each agreement-in-principal is subject to concluding a formal agreement by March 24, 1998. A finder's fee of US$10,000 is payable, subject to the approval of the Vancouver Stock Exchange, within 10 days of the closing of both transactions to 509232 B.C. Limited. The Company is acquiring a 50% interest to oil and natural gas rights in the ''Coos Prospect'' covering a total area of 2,583.8 acres. The Coos Prospect is located 5 miles northeast of the town of Juno on the county line between Crockett and Val Verde Counties, west Texas and geologically within the major gas-producing Val Verde Basin of southwestern Texas. Two productive carbonate reservoirs with established gas production have been developed in close proximity to the Coos Prospect. The Pennsylvanian age ''Strawn'' and deeper Ordovician age ''Ellenburger'' are productive carbonate reservoirs in this part of the Val Verde Basin. The discovery well for the Coos Field was originally drilled and completed by Union Oil Company in 1987 in the Strawn formation and is currently on production. The Coos Prospect is situated on a structural high defined by seismic surveys to contain approximately 400 feet of closure. The Company proposes to initially drill one test well through both the Strawn and Ellenburger formations directed at seismic targets on the structural high. A successful Coos Prospect well has the potential of reaching Strawn gas reserves of 2-1/2 billion cubic feet and Ellenburger gas reserves of 9 billion cubic feet.

To: Arnie who wrote (9585)	3/18/1998 1:49:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Mullen Transportation To Acquire Oilfield Service Company MULLEN TRANSPORTATION INC. ANNOUNCES AGREEMENT FOR ACQUISITION OF MCGINNIS RAT HOLE DRILLING CO. LTD. ALDERSYDE, March 17 /CNW/ - Mullen Transportation Inc. (''Mullen'') is pleased to announce that it has entered into a letter of intent to acquire all the issued and outstanding shares of McGinnis Rat Hole Drilling Co. Ltd. (''McGinnis''). McGinnis is a successful privately-owned oilfield service company and is recognized as an industry leader in its business. McGinnis operates nine specialized truck mounted auger drill units from its facility in Nisku, Alberta and generates approximately $10 million of annualized revenue. Mullen intends to retain the existing management, including the President of McGinnis, Mr. Duane McGinnis, and to operate the company as a separate entity. This acquisition will meet the strategic growth objectives of Mullen and provide its customers with expanded services in the oilfield service industry. The acquisition of McGinnis by Mullen is subject to further due diligence and the entering into of a formal purchase and sale agreement. The closing date for the transaction is expected to be March 31, 1998.