Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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

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

To: Kerm Yerman who wrote (9772)	3/26/1998 6:51:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / AC Energy Inc. Signs Letter of Intent ASE SYMBOL: ACE MARCH 26, 1998 CALGARY, ALBERTA--AC Energy Inc. ("ACE") announces that it has entered into a letter of intent with Petra Diamonds Limited ("Petra") dated March 25, 1998, whereby ACE and Petra have agreed to enter into a joint venture to explore and develop up to three diamond concessions in Angola. The letter of intent, which is subject to the negotiation of a formal joint venture agreement, involves an equal sharing of Petra's interest in the Tutelama Q, Icodiam and Glojosat concessions in the Lunda Sul province of Angola. The Lundas (Lunda Norte provide and Lunda Sul province) have over the years been the areas from which the majority of Angola's diamond production has come. The Lundas contain both alluvial and kimberlite deposits. ACE will finance the initial exploration phase for potential Alluvial and Kimberlite deposits. ACE will allocate a minimum of U.S.$1.5 million to fulfill initial requirements on the three concessions contingent on exploration results. Petra, as operating partner, will assume responsibility for all negotiations with the Angolan governmental, provincial and parastatal authorities. Tutelama Q is a concession on the Mambo river consisting of 150 square miles. Icodiam is a concession based on the Tchiumbe river consisting of 160 square miles. The Glojosat is a concession close to Saurimo on the Luachimo river consisting of 40 square miles. Petra has a 50 percent interest in the Tutelama Q concession, a 60 percent interest in the Icodiam concession and a 60 percent interest in the Glojosat concession. The letter of intent is subject to both parties gaining their Board approval, regulatory approval, adequate due diligence being performed on the concessions being offered and financial obligations being met. Petra, listed on the AIM market in London, is a Bermuda-based company with subsidiaries specializing in the discovery and exploitation of gemstone quality diamond deposits in southern Africa. Petra currently owns concessions in South Africa and Angola. AC Energy Inc. is located in Calgary, Alberta. The common shares of AC Energy Inc. trade on The Alberta Stock Exchange under the trading symbol "ACE".

To: Kerm Yerman who wrote (9772)	3/26/1998 6:57:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Penn West Petroleum Announces Record Year End Results TSE SYMBOL: PWT MARCH 26, 1998 CALGARY, ALBERTA--PENN WEST PETROLEUM LTD. (TSE - PWT) is pleased to announce record results for the three months and year ended December 31, 1997. Gross revenues for the year ended December 31, 1997 increased by 25 percent to $217.6 million from $173.8 million for 1996. Cash flow increased by 36 percent to $122.9 million ($3.09 basic or $3.01 fully diluted per share) from $90.1 million ($2.51 basic or $2.43 fully diluted per share). Net income for 1997 increased by 56 percent to $37.2 million ($0.94 per share) from $23.8 million ($0.66 per share) for the same period in 1996. Gross revenues for the three months ended December 31, 1997 increased by 16 percent to $61.1 million from $52.6 million for the same period in 1996. Cash flow for the fourth quarter increased by 23 percent to $36.7 million ($0.92 basic or $0.89 fully diluted per share) from $29.9 million ($0.79 basic or $0.77 fully diluted per share) for the fourth quarter of 1996. Net income increased by 4 percent to $10.7 million ($0.27 per share) for the fourth quarter of 1997 versus $10.3 million ($0.27 per share) for 1996. /T/ The financial and operational highlights follow: Three months ended Year ended December 31 December 31 --------------------------------------- Percent Percent 1997 1996 Change 1997 1996 Change --------------------------------------- FINANCIAL ($ thousands, except per share amounts) Gross revenues $61,096 $52,571 16 $217,559 $173,773 25 Cash flow from Operations $36,736 $29,889 23 $122,899 $90,051 36 Basic per share $0.92 $0.79 16 $3.09 $2.51 23 Fully diluted per share $0.89 $0.77 16 $3.01 $2.43 24 Net income $10,735 $10,307 4 $37,216 $23,839 56 Per share $0.27 $0.27 - $0.94 $0.66 42 Three months ended Year ended December 31 December 31 ------------------------------------------- Percent Percent 1997 1996 Change 1997 1996 Change ------------------------------------------- PRODUCTION Oil and natural gas liquids: Barrels per day 13,152 11,683 13 12,604 11,483 10 ------ ------ -- ------ ------ -- ------ ------ -- ------ ------ -- Operating Netback ($ per barrel) Sales price $20.50 $24.63 (17) $21.71 $21.80 - Royalties 3.09 4.85 (36) 3.87 4.34 (11) Operating costs 5.71 5.99 (5) 6.00 5.76 4 ------ ------ ------ ------ Netback $11.70 $13.79 (15) $11.84 $11.70 1 ------ ------ -- ------ ------ -- ------ ------ -- ------ ------ -- Natural gas: MMcf per day 173.9 134.0 30 164.8 129.0 28 ------ ------ -- ------ ------ -- ------ ------ -- ------ ------ -- Operating Netback ($ per Mcf) Sales price $2.27 $2.12 7 $1.96 $1.74 13 Royalties 0.33 0.35 (6) 0.29 0.24 21 Operating costs 0.34 0.34 - 0.35 0.35 - ------ ------ -- ------ ------ -- Netback $1.60 $1.43 12 $1.32 $1.15 15 ------ ------ -- ------ ------ -- ------ ------ -- ------ ------ -- Combined totals: Barrels of oil Equivalent(x) Daily Production 30,542 25,083 22 29,084 24,383 19 ------ ------ -- ------ ------ -- ------ ------ -- ------ ------ -- Operating Netback ($ per BOE) Sales price $21.74 $22.78 (5) $20.50 $19.47 5 Royalties 3.20 4.13 (23) 3.29 3.30 - Operating costs 4.42 4.57 (3) 4.57 4.59 - ------ ------ -- ------ ------ -- Netback $14.12 $14.08 - $12.64 $11.58 9 ------ ------ -- ------ ------ -- ------ ------ -- ------ ------ -- /T/ (x)Barrels of oil equivalent (BOE) based on 10 mcf of natural gas equals 1 barrel of oil /T/ DRILLING PROGRAM Year ended Year ended December 31, 1996 December 31, 1997 ----------------- ----------------- Gross Net Gross Net ----------------- ----------------- Oil 69 64.2 63 55.3 Natural gas 71 61.7 42 31.4 Dry 22 20.8 16 15.1 -------------------------------------- 162 146.7 121 101.8 -------------------------------------- -------------------------------------- Success Rate (in Percent) 85.8 85.2 --------- --------- --------- --------- UNDEVELOPED LANDS As at December 31, ---------------------------------- Percent 1997 1996 Change ---------------------------------- Gross acres (000's) Alberta 1,125 923 22 British Columbia 347 255 36 Saskatchewan and Manitoba 384 357 8 ---------------------- Total Gross acres 1,856 1,535 21 ---------------------------------- ---------------------------------- Net acres (000's) Alberta 916 745 23 British Columbia 277 221 25 Saskatchewan and Manitoba 370 352 5 ---------------------- Total Net acres 1,563 1,318 19 ---------------------------------- ---------------------------------- Average working interest (in percent) 84 86 ---------------------- ---------------------- RESERVES As at December 31, ---------------------------------- Percent 1997 1996 Change ---------------------------------- Oil and natural gas liquids: (millions of barrels) Proven 39.0 32.6 20 Probable 8.7 7.8 12 ----------------------- 47.7 40.4 18 ---------------------------------- ---------------------------------- Natural gas: (billions of cubic feet) Proven 539.4 440.3 23 Probable 99.0 74.7 33 ----------------------- 638.4 515.0 24 ---------------------------------- ---------------------------------- Present value of future cash flow before income tax: ($ millions) 10 percent discount rate $791.9 $695.5 14 --------------------------------- --------------------------------- 15 percent discount rate $638.9 $554.7 15 --------------------------------- --------------------------------- CAPITAL EXPENDITURES ($ millions) Years ended December 31, --------------------------------- 1997 1996 --------------------------------- Net property acquisitions $ 59.6 $ 7.9 Land acquisition and retention 16.3 12.0 Geological and geophysical 8.6 6.8 Well drilling and completion 56.2 36.5 Well equipping and production facilities 38.3 38.3 Head office and other 0.4 0.3 -------------------------------- $179.4 $101.8 -------------------------------- -------------------------------- NET FINDING AND ON-STREAM COSTS ($/BOE) Proven reserve additions $6.67 $5.19 -------------------------------- -------------------------------- Proven plus probable reserve additions $5.93 $5.33 -------------------------------- -------------------------------- CONDENSED BALANCE SHEET ($ thousands) As at December 31, -------------------------------- 1997 1996 -------------------------------- Assets Current assets $ 36,268 $ 50,201 Capital assets 548,511 414,504 -------------------------------- $584,779 $464,705 -------------------------------- -------------------------------- Liabilities and Shareholders' Equity Current liabilities $ 51,014 $ 46,953 Long-term debt 169,468 134,880 Deferred credits 90,271 50,895 Shareholders' Equity 274,026 231,977 ------------------------------- $584,779 $464,705 ------------------------------- ------------------------------- COMMON SHARE DATA (millions of shares) 1997 1996 -------------------------------- Weighted average: (years ended December 31) Basic 39.8 35.9 -------------------------------- -------------------------------- Fully diluted 43.3 39.2 -------------------------------- -------------------------------- Outstanding: (as at December 31) Basic 40.0 39.3 -------------------------------- -------------------------------- Fully diluted 43.6 42.7 -------------------------------- -------------------------------- /T/ The year 1997 represented another successful year of record growth for Penn West. Penn West met or exceeded its financial and operational targets of 1997 including production volumes, cash flow and net income. The Company now has a five year track record of continual, year-over-year growth in the crucial operating and financial benchmarks that indicate sustained creation of shareholder value. The fourth quarter of 1997 saw Penn West post its highest quarterly cash flow with growth of 23 percent over the same period in 1996. This increase resulted from a 30 percent growth in natural gas production, a 13 percent growth in oil and liquids production, and a 7 percent increase in natural gas prices that was offset by a 17 percent decrease in oil and liquids prices. Penn West completed its capital program for 1997 with a favorable drilling success rate of over 85 percent. Penn West continued its record of successfully adding oil and natural gas reserves at low costs in 1997, with finding costs for the year of $5.93/boe on a proven plus probable basis. During 1998, the Company anticipates that capital expenditures will total $185 million. Our capital program will include the drilling of approximately 210 wells (195 net) in a program that focuses on increasing natural gas production in our Northern and Central Core areas. This capital program is expected to result in average total daily production during 1998 of between 33,000 and 34,000 barrels of oil equivalent. Penn West Petroleum Ltd. is a Calgary based oil and natural gas company that focuses on exploration and development activity in Western Canada. Penn West trades on The Toronto Stock Exchange under the symbol PWT.

To: Kerm Yerman who wrote (9772)	3/26/1998 7:01:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Elk Point Doubles Production and Reserves in 1997 and Reports Success in the Powder River Basin of Wyoming TSE SYMBOL: ELK MARCH 26, 1998 CALGARY, ALBERTA--Elk Point Resources Inc. ("Elk Point") more than doubled its production and reserve base in l997 providing a solid foundation for continued aggressive exploration and development. The Company grew its average daily production by over 130 percent to 4,117 barrels of oil equivalent per day in 1997 from 1,784 barrels of oil equivalent per day during 1996. In the fourth quarter of 1997, production averaged 5,192 barrels of oil equivalent per day, a 145 percent increase from 1996 fourth quarter production of 2,116 barrels of oil equivalent per day. The Company's total reserve base grew by over 150 percent to 23.5 million barrels of oil equivalent at the end of 1997 from 9.2 million barrels of oil equivalent at the end of 1996. Gross oil and natural gas revenues doubled to $30.4 million in 1997 from $15.3 million in 1996. Cash flow grew by 78 percent to $16.0 million from $9.0 million in 1996. The Company was also successful on its oil exploration initiative in the Powder River Basin of Wyoming, USA. The Company cased its first exploration well at Boley in December 1997 and followed up this success with the first development well in March 1998. The discovery well is producing approximately 120 barrels of oil per day (50 percent working interest) and the development well recently commenced production at 360 barrels of oil per day (41 percent working interest). The Company plans to drill a development well at Boley and an exploration test at Federal commencing next week. FINANCIAL OVERVIEW Elk Point recorded a 78 percent increase in cash flow to $16.0 million ($0.91 per share) in 1997 from $9.0 million ($0.96 per share) in 1996. The increase was directly attributable to the significant growth in Elk Point's natural gas and crude oil production from its successful exploration, development and acquisition programs. Earnings were $1.4 million ($0.08 per share) in 1997 compared to 1996 earnings of $2.6 million ($0.27 per share). As expected, these earnings reflect a higher depletion rate in 1997 that stems from the purchase of considerable probable reserves in the Truax acquisition. The Company expects earnings to improve in the long term as the Truax properties are more fully developed and probable reserves are converted into proven reserves. OPERATIONAL OVERVIEW During 1997, Elk Point's natural gas production grew by over 230 percent averaging 24.6 million cubic feet per day compared to 7.4 million cubic feet per day in 1996. The Company averaged 32.2 million cubic feet per day during the fourth quarter of 1997, a growth of over 350 percent from 1996 fourth quarter production of 7.1 million cubic feet per day. The Company's production gains came from development projects at Saddle Hills, Pemburton Hill, Pembina and Thunder Lake as well as natural gas production from the Truax acquisition. At Pembina, the Company added 5.0 million cubic feet per day of gas production in mid-November and placed an additional 2.0 million cubic feet per day of gas on stream subsequent to year-end. Oil production averaged 1,654 barrels per day during 1997, a 58 percent increase over 1996 average production of 1,047 barrels per day. The Company averaged 1,971 barrels per day in the fourth quarter of 1997 as the Pembina project came on stream mid-November. This is a 40 percent increase over 1996 fourth quarter production of 1,404 barrels per day. Elk Point drilled 100 gross (59.3 net) wells in 1997, more than double the 43 gross (28.9 net) wells drilled in 1996. The Company drilled 58 gross (32.0 net) development wells with an 83 percent (88 percent net) success rate. Elk Point drilled 42 gross (27.3 net) exploration wells with a 55 percent (46 percent net) success rate. The greater emphasis on exploration has led to several new pool discoveries that will provide a larger component of development drilling in the Company's program throughout 1998. In total, Elk Point cased 48 gross (30.5 net) wells as oil wells and 22 gross (9.1 net) wells as gas wells, while 29 gross (18.7 net) wells were dry and abandoned and one gross (1.0 net) well was a service well for an overall success rate of 71 percent (69 percent net). RESERVES AND FINDING AND DEVELOPMENT COSTS Elk Point replaced its production in 1997 by a factor of 10.5 times based on total reserves. Total proven and probable natural gas reserves were doubled to 118.2 billion cubic feet of gas at the end of 1997 from 56.3 billion cubic feet of gas at the end of 1996. Crude oil and natural gas liquid reserves increased by 226 percent to 11.6 million barrels of oil from 3.6 million barrels of oil at the end of 1996. On capital expenditures of $112.9 million in 1997, finding and development costs were $7.16 per barrel of oil equivalent of proven plus probable reserves and $8.69 per barrel of oil equivalent of proven plus half probable reserves ("established reserves"). Land and seismic expenditures were a significant component of capital expenditures and comprised $0.62 and $0.20, respectively, per barrel of oil equivalent of proven plus probable reserves and $0.75 and $0.24, respectively, per barrel of oil equivalent of established reserves. Development costs for facilities and equipping totalled $1.55 per barrel of oil equivalent of proven plus probable reserves and $1.87 per barrel of oil equivalent of established reserves. Finding costs net of land, seismic and facilities were $4.79 per barrel of oil equivalent of proven plus probable reserves and $5.83 per barrel of oil equivalent of established reserves. OUTLOOK Elk Point has boosted its current productive capability to over 7,000 barrels of oil equivalent per day of which 63 percent is natural gas. The Company is planning to drill 120 gross (60 net) wells this coming year with an increased focus on natural gas. A number of development projects which will lead to further production growth are underway at Pembina, Lobstick, Corbett Creek and Newton in west central Alberta and Elcott in southeastern Saskatchewan. While directing 65 percent of its drilling towards development, the Company plans to evaluate 43 exploration prospects in 1998. Exploration efforts will be directed mainly towards multi-zone natural gas in west central and northeastern Alberta, light oil in southeastern Saskatchewan and medium oil in the Powder River Basin, Wyoming. Elk Point will operate and participate with a 10 percent working interest in a high impact, deep exploration test at Lost Hills in the San Joaquin Basin in California targeting long life, light oil reserves. /T/ SUMMARY RESULTS -------------------------------------------------------------- Percent 1997 1996 Change -------------------------------------------------------------- FINANCE (thousands of dollars, except share and per share amounts) Gross oil and gas revenue $ 30,418 $ 15,324 99 Cash flow from operations $ 15,965 $ 8,971 78 Basic per share $ 0.91 $ 0.96 (5) Earnings $ 1,350 $ 2,554 (47) Basic per share $ 0.08 $ 0.27 (70) Fully diluted per share $ 0.08 $ 0.26 (69) Common shares (1997 weighted average) 17,481,351 9,333,343 87 Common shares (outstanding 12/31/97) 21,628,872 14,009,480 54 Shareholders' Equity $ 106,594 $ 45,307 135 Capital expenditures, net $ 112,903 $ 44,838 152 Total assets $ 182,889 $ 67,266 172 Working capital deficiency $ 13,854 $ 3,924 253 Long-term debt $ 33,586 $ 5,750 484 -------------------------------------------------------------- AVERAGE PRODUCTION Natural gas (thousand cubic feet per day) 24,632 7,373 234 Oil and natural gas liquids (barrels per day) 1,654 1,047 58 AVERAGE SALES PRICES Natural gas ($Cdn per thousand cubic feet) $ 1.80 $ 1.77 2 Oil and natural gas liquids ($Cdn per barrel) $ 23.57 $ 26.76 (12) -------------------------------------------------------------- RESERVES Total proven plus probable reserves Natural gas (billion cubic feet) 118.2 56.3 110 Oil and natural gas liquids (thousand barrels) 11,635 3,569 226 Barrel of oil equivalent (thousand barrels) 23,452 9,167 156

To: Kerm Yerman who wrote (9772)	3/26/1998 7:04:00 PM
From: Herb Duncan	Respond to of 15196

PROPERTY ACQUISITION / Pioneer Natural Resources Announces Agreement to Acquire 25 percent Interest in Mississippi Canyon Block 305 NYSE SYMBOL: PXD MARCH 26, 1998 DALLAS,TEXAS--Pioneer Natural Resources Company ("Pioneer") announces that it has entered into an agreement with Mariner Energy, Inc. to acquire a 25 percent working interest in Mississippi Canyon Block 305 located in the Central Gulf of Mexico, pending award of the lease by the U.S. Minerals Management Service (MMS). A bidding group comprised of Elf Exploration, Inc. (Operator) and Mariner Energy, Inc. was the apparent successful bidder on the block at the OCS Oil and Gas Lease Sale 169, which was held on March 18, 1998. If a lease is awarded by the MMS, the resulting ownership will be Elf Exploration, Inc. (50 precent), Mariner Energy, Inc. (25 percent) and Pioneer (25 percent). The potential acquisition of Mississippi Canyon Block 305, located in approximately 7,000 feet of water, will mark Pioneer's initial investment in the deep water Gulf of Mexico. Scott Sheffield, Pioneer's President and Chief Executive Officer, stated, "This is a high quality 3-D seismic prospect with reserve impacting potential. Pioneer will continue to evaluate investment opportunities in the Gulf of Mexico slope to increase its exposure to significant reserve and production growth." Headquartered in Dallas, Pioneer is one of the largestindependent (non-integrated) exploration and production oil and gas companies in North America, with major operations in the United States, Canada and Argentina. Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, and the business prospects of Pioneer Natural Resources Company, are subject to a number of risks and uncertainties which may cause the company's actual results in future periods to differ materially from the forward-looking statements. These risks and uncertainties include, among other things, volatility of oil and gas prices, product supply and demand, competition, government regulation or action, litigation, the costs and results of drilling and operations, the company's ability to replace reserves or implement its business plans, access to and cost of capital, uncertainties about estimates of reserves, quality of technical data, and environmental risks. These and other risks are described in the company's 10-K and 10-Q Reports and other filings with the Securities and Exchange Commission.

To: Kerm Yerman who wrote (9772)	3/26/1998 7:14:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Scarlet Exploration Achieves 1998 Goal of 1,000 BOEPD ASE SYMBOL: SCO MARCH 26, 1998 CALGARY, ALBERTA--Two new wells were placed on production this month, resulting in Scarlet Exploration Inc. (ASE: SCO) achieving its 1998 production target of 1,000 BOEPD net to the company, effectively doubling 1997 production. One well is located in the Zama/Sousa area of Alberta, the second in southeast Saskatchewan. "This is a major milestone in Scarlet's growth," said Alan D. Jack, president and chief executive officer. "We're not only proud that we have broken the 1,000 barrel barrier, we've done it even more quickly than we anticipated." WINTER DRILLING PROGRAM COMPLETED Scarlet has completed all six wells in its 97/98 winter drilling program in the Rainbow Lake region. The company's fifth well is flowing at a restricted rate of 450 BOPD (42 percent net working interest). The sixth and final well will be placed on production in the immediate future. TWO EXPLORATION WELLS RECENTLY COMPLETED IN PADDLE RIVER REGION In the Paddle River region, Scarlet recently completed two new wells on its previously announced 42 section farm-in. The first well, a gas well, flowed at 4.1 mmcf/day with 50 bbls/mmcf of liquids on perforation from the Mississippian interval. Reserves are also present in the overlying Jurassic intervals and will be evaluated at a later date. In the second well, Mississippian gas and oil pay was also encountered. A drill stem test in the overlying Jurassic recovered 1,300 m of clean oil. This well has been cased and is waiting on completion. Scarlet expects to drill additional locations on this farm-in after breakup. SUCCESSFUL HORIZONTAL WELL IN SASKATCHEWAN Earlier this month, in southeast Saskatchewan, Scarlet placed on production its first horizontal well in the Lampman area at 150 BOPD (gross).

To: Kerm Yerman who wrote (9772)	3/26/1998 7:17:00 PM
From: Herb Duncan	Respond to of 15196

PROPERTY ACQUISITION / UTS Buys Solv-Ex's 12 Percent Working Interest in Alberta Oil Sands Assets. TSE SYMBOL: UTS MARCH 26, 1998 TORONTO, ONTARIO--Pursuant to the previously announced agreement of February 11, 1998, United Tri-Star Resources Ltd. ("UTS") announced today that it has closed into escrow an agreement with Solv-Ex Corporation, Solv-Ex Canada Limited and Solv-Ex Canada Limited Partnership (collectively, "Solv-Ex") to acquire from Solv-Ex its 12 percent working interest in assets and interests, principally Alberta oil sands leases and related technologies. Solv-Ex is presently involved in a restructuring under the Companies Creditors Arrangement Act (Canada) and under Chapter 11 of the Bankruptcy Code in the United States. As part of the restructuring proceedings, Solv-Ex and UTS have closed into escrow an agreement with Koch Oil Sands Limited Partnership ("Koch"), pursuant to which Koch will acquire a 78 percent working interest in those assets. UTS has previously announced that pursuant to that agreement it would retain a 10 percent working interest in those assets, plus Solv-Ex's 12 percent for an aggregate of a 22 percent working interest in those assets. UTS has also acquired from Solv-Ex certain participation rights with respect to metal extraction technologies and hydrocarbon extraction technologies developed by Solv-Ex. The consideration payable to Solv-Ex will be 5,000,000 common shares of UTS and a cash payment of Cdn. $4.4 million. The transaction with Solv-Ex is subject to the receipt of necessary Court approval in the United States and Canada. Along with its interest in the Athabasca oil sands project, UTS also maintains a 31 percent interest in International Reef Resources Ltd, which is actively pursuing development of Coal Oil Agglomeration projects in the United States. As well, UTS holds a 36 percent interest in Tri-Star Gold Corporation which has one of the largest mineral property holdings in the Ghanaian gold belts of West Africa.

To: Kerm Yerman who wrote (9772)	3/26/1998 7:18:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / WestCastle Announces 1997 Operating Results TSE SYMBOL: WCL.UN OTC Bulletin Board SYMBOL: WCTS MARCH 26, 1998 CALGARY, ALBERTA-- THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO UNITED STATES WIRE SERVICES. WestCastle Energy Trust announced today a summary of its 1997 year end reserves together with the results of the Trust's operations for the period from commencement of operations on March 13, 1997 to December 31, 1997. The following Table 1 summarizes the 1997 year-end reserves and present worth evaluation prepared by independent engineering firm, Sproule Associates Limited. /T/ HIGHLIGHTS OF RESERVE REPORT - LONG RESERVE LIFE INDEX TABLE 1 Petroleum and Natural Gas Reserves -------------------------------------------------------------- Crude Natural Natural Gas Barrels of Oil Oil Gas Liquids Equivalent (Mbbls) (MMcf) (Mbbls) (MBOE) -------------------------------------------------------------- Proved Producing 10,280 162,955 4,620 31,196 -------------------------------------------- Total Proved 10,280 162,955 4,620 31,196 Probable 680 8,872 468 2,035 -------------------------------------------- Established (Total Proved and one-half Probable) 10,620 167,391 4,854 32,213 -------------------------------------------- -------------------------------------------- -------------------------------------------------------------- Present Value (000's) discounted @ -------------------------------------------------------------- 0 10 12 15 Percent Percent Percent Percent -------------------------------------------------------------- Proved Producing 424,034 187,197 169,030 147,762 ----------------------------------------- Total Proved 424,034 187,197 169,030 147,762 Probable 40,091 9,506 7,715 5,815 ----------------------------------------- Established (Total Proved and one-half (Probable) 444,080 191,950 172,888 150,670 ----------------------------------------- ----------------------------------------- -------------------------------------------------------------- /T/ Note: Proved Reserves of 19.4 MLT of Sulphur are included in the Present Values shown above. Based on this evaluation, the Trust's established Reserve Life Index (RLI) is 12.1 years at December 31, 1997. Of the Trust's reserves, 94 percent are classified as proven developed producing. Both the Reserve Life Index and the percentage of proven reserves are at the high end of the comparable range for all existing conventional oil and gas royalty trusts, based on publicly available information. Table 2 is a summary prepared by Management which reconciles reserves from the December 31, 1996 reserve report contained in the Prospectus, adjusted to the commencement of business by WestCastle on the day it began operations (March 13, 1997), as compared to the new December 31, 1997 reserve report. /T/ TABLE 2 Reserves Reconciliation Crude Oil (Mbbls) -------------------------------------------------------------- Proved Probable Established -------------------------------------------------------------- 96-12-31 Reserve Reports 8,809 2,484 10,051 97-03-13 Trust Opening Balance 8,660 2,484 9,902 Drilling - - - Acquisitions - - - Dispositions - - - Production (571) - (571) Engineering Revisions 2,191 (1,804) 1,289 ------------------------------- 97-12-31 Reserve Reports 10,280 680 10,620 ------------------------------- ------------------------------- Natural Gas (MMcf) -------------------------------------------------------------- Proved Probable Established -------------------------------------------------------------- 96-12-31 Reserve Reports 164,960 16,062 172,991 97-03-13 Trust Opening Balance 161,991 16,062 170,022 Drilling - - - Acquisitions 7,901 326 8,064 Dispositions - - - Production (12,233) - (12,233) Engineering Revisions 5,297 (7,516) 1,539 ------------------------------- 97-12-31 Reserve Reports 162,955 8,872 167,391 ------------------------------- ------------------------------- Natural Gas Liquids (Mbbls) -------------------------------------------------------------- Proved Probable Established -------------------------------------------------------------- 96-12-31 Reserve Reports 4,288 546 4,561 97-03-13 Trust Opening Balance 4,204 546 4,477 Drilling - - - Acquisitions 428 20 438 Dispositions - - - Production (335) - (335) Engineering Revisions 323 (98) 274 ------------------------------- 97-12-31 Reserve Reports 4,620 468 4,854 ------------------------------- ------------------------------- RESERVES RECONCILIATION Barrels of Oil Equivalent (MBOE) ------------------------------------------------------------- Proved Probable Established ------------------------------------------------------------- 96-12-31 Reserve Reports 29,593 4,636 31,911 97-03-13 Trust Opening Balance 29,063 4,636 31,381 Drilling - - - Acquisitions 1,218 53 1,244 Dispositions - - - Production (2,129) (2,129) Engineering Revisions 3,044 (2,654) 1,718 ----------------------------- 97-12-31 Reserve Reports 31,196 2,035 32,213 ----------------------------- ----------------------------- /T/ Management is pleased to report established reserve additions of 2.96 million BOE resulting from 1997 activities. This replaced 139 percent of the Trust's 1997 production. Established reserves totaling 1.24 million BOE were acquired in two gas properties at an average cost of $6.65 per BOE. The cost of all 1997 established reserve additions, including acquisitions, development work and engineering revisions was $3.15 per BOE. GAS WEIGHTED TRUST The Trust has maintained its weighting toward natural gas with 74 percent of its 1998 production expected to come from natural gas and associated liquids (on a barrel of oil equivalent basis.) The remainder of the production is light oil. Of the Trust's established reserves, 67 percent are natural gas and associated liquids. HIGHLIGHTS OF OPERATING RESULTS Production for the period ended December 31, 1997 averaged 7,267 barrels of oil equivalent (BOE per day) resulting in revenue from petroleum and natural gas sales (net of royalties) of $37.23 million. Distributions declared for the period were $0.90 per unit. Subsequent to the year end it was determined that cash available for distribution for the period was $17.79 million or $0.88 per unit versus the $18.19 million and $0.90 per unit distributed. The $0.02 per unit difference has been carried into 1998, where it has reduced the 1998 first quarter distribution. With the exception of this adjustment, the Trust would have distributed $0.22 per unit in the first quarter of 1998. The following Table 3 summarizes the financial and operating results for 1997. /T/ TABLE 3 Period ended Per Unit December 31, 1997 --------------------------- Financial Oil and Natural gas revenues (net) $37,231,000 $ 1.84 Operating netback 21,158,000 1.04 Distributable cash 17,785,000 0.88 Net earnings 1,667,000 0.08 Operating Sales Oil (bbl per day) 1,949 Natural gas (mcf per day) 41,752 Natural gas liquids (bbl per day) 1,143 Oil equivalent (BOE per day) 7,267 Pricing Oil (per bbl) $ 26.33 Natural gas liquids (per bbl) $ 23.06 Natural gas (per mcf) $ 1.68 Statistics (per BOE) Operating Netback $ 9.94 Investor Netback $ 8.35 /T/ As stated in our March 20, 1998 News Release, the Trust has embarked on certain operational measures to increase production by 300 BOEs per day and reduce operating cost within our core areas. Management continues to examine all opportunities within our asset base to enhance Unitholder distributions. The Trust recently sold a small, non-operated working interest in a gas processing facility for $850,000.00, the proceeds of which will be applied against Bank Debt. This sale is not expected to effect distributions in a material way. WestCastle Energy Trust is a Calgary-based petroleum and natural gas royalty trust whose units are listed on the Toronto Stock Exchange under the symbol "WCL.UN".

To: Kerm Yerman who wrote (9772)	3/26/1998 7:55:00 PM
From: Arnie	Respond to of 15196

FINANCING / Vermilion Resources closes Bought Deal Financing (Canada) . . . Vermilion Resources Ltd. "Vermilion" announces today that it has closed its previously announced bought deal financing led by Griffiths McBurney & Partners and FirstEnergy Capital Corp. and included First Marathon Securities Limited and Nesbitt Burns Inc. Pursuant to the financing, Vermilion issued 5,063,291 common shares at $7.90 per common share for gross proceeds of $40,000,000. Taking into account this financing, Vermilion will now have 47.7 million shares outstanding and no long-term debt. Proceeds from the issue will be used to facilitate the expansion of Vermilion's ongoing exploration, development, and acquisition plans. Vermilion is also pleased to announce that it has finalized a new $60 million credit facility with The Chase Manhattan Bank of Canada and Credit Lyonnais Canada and together with its equity financing puts Vermilion in a very strong financial position to take advantage of new business opportunities. Vermilion Resources Ltd. is a publicly traded Canadian resource company with domestic and international operations and current market capitalization of $375 million. The company's primary objective is to maximize shareholder value by managing risk as it builds resource assets through the acquisition, exploitation and exploration of natural gas and crude oil. For further information, please contact: Mr. Jeff Boyce Mr. Stephen Bjornson President & C.E.O. Vice President Finance & Corporate Secretary Vermilion Resources Ltd. Vermilion Resources Ltd. (403) 269-4884 (403) 269-4884

To: Kerm Yerman who wrote (9772)	3/26/1998 7:58:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Trican Well Service Ltd closes Financing Trican Well Service Ltd. - TSE ("TCW"), a well servicing company that provides stimulation, coil tubing, cementing, fracturing and related service to the oil and gas industry in western Canada announces that today it has closed the previously announced private placement offering of 2,000,000 Special Warrants at a price of $4.50 per Special Warrant. Each Special Warrant is exchangeable for one common share of Trican at no additional cost. Goepel Shields & Partners Inc. and Peters & Co. Limited acted as underwriters in this offering. The net proceeds of the offering will be used to fund capital expenditures relating to the expansion of the business of Trican. For further information please contact either Murray L. Cobbe, President of Michael Kelly, Chief Financial Officer at (403) 266-0202.

To: Kerm Yerman who wrote (9772)	3/26/1998 8:01:00 PM
From: Arnie	Respond to of 15196

PROPERTY ACQUISITION / Orion Resources acquires 25% Interest Mr. Douglas Street the President of Orion is pleased to report that Orion has purchased a 25% interest in the Star Project in Texas at a cost of $500,000.00 U.S. This property is a 10,000 (+-) acre project which has 12 cased wells three of which are currently on production at a combined rate of 600,000 cubic feet of gas per day. It is expected that the remaining nine wells can be brought back into production at rate of between 200,000 and 300,000 MCF per well per day. Within the next year it is expected to increase the revenue from the property from the current $20,000 - $25,000 U.S. per month to $150,000 to $60,000 per month of which 25% will be Orion's interest. The cost of the work overs of the existing wells will be $250,000.00 U.S. for Orion's interest. The property will be operated by Orion's partner in the Texas Gulf Coast exploration plays Producers Energy of Houston (see press release January 28, 1998). As part of the production purchase which was closed on March 20, 1998 (effective date March 1, 1998) Orion and its partners have a one year option on 10,000 acres of optional land which have the potential for further development and exploration. There are five productive zones this area and when the original wells were drilled as a result of one of the zones being overpressured the productivity of the other zones were damaged by the high mud weight required to control the overpressured zone. This bypassed gas pay production could be enhanced with the use of horizontal drilling techniques which have not yet been used in this area. This project should improve Orion's cash flow by the end of this year from the current $10,000.00 (Can) per month to in excess of $60,000.00 (Can) per month. This cash flow estimate does not include any amount for any exploration success on the Star property or on the Gulf Coast properties which could add significantly to the expected cash flow. THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN. For further information please contact: Mr. Douglas Street Director of On Resource Corporation Ph: (403) 232-6603 Fax: (403) 290-1517

To: Kerm Yerman who wrote (9772)	3/26/1998 8:07:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Ram Petroleums updates Well results TORONTO, March 26 /CNW/ - Ram Petroleums Limited (''Ram''), announces that it has received log results for its Airu-1 indicated oil discovery drilled on its 321,000 acre Rio Putumayo block in southern Colombia in which it has a 100% working interest. The well reached total depth of 6,195 on February 8, 1998. Because of logistical problems experienced by Schlumberger in bringing its logging unit on to Ram's location, Ram cased the well on February 17 to protect the hole from collapse of shale formations. Drill mud was circulated in the hole for ten days before 7'' casing was cemented resulting in fluid invasion of the exposed formation. Since March 17 Gamma Ray-Neutron, DSI (Sonic), Cement Bond and RST logs have been run. Schlumberger reports that the upper sand (6,018-6,096) has good porosity of 15-20 PU and appears to show a possible oil-water contact at about 6,050, although oil saturation readings of over 50% are recorded as far down as 6,095. Because it is impossible to evaluate the effect of the invasion of drilling fluids into the formation while it was uncased, Ram cannot determine if the interval 6,050-6,095 is oil saturated or a transition zone. There is 32' of oil saturation and the possibility that oil saturation extends from 6,018-6,095, or for 77 feet in the upper zone. The interval 6-095-6,112 is shaly sand. A second sand with porosity of 14-16 PU is reported in the interval 6,112-6,136 with oil indicated in the interval 6,112-6,126. The RST tool, used to log cased holes, was used by Schlumberger to pick possible oil-water contacts. Schlumberger reports that under normal conditions the logs run would allow it to identify the oil-water contacts, but that in this case there was the added uncertainty of filtrate invasion. Ram believes that this is all the information that can be obtained currently and will proceed to complete and production test the well. Test results will be announced as soon as they are available.

To: Kerm Yerman who wrote (9772)	3/26/1998 8:20:00 PM
From: Arnie	Respond to of 15196

ENERGY TRUSTS / Optus Natural Gas Distribution Income Fund CALGARY, March 26 /CNW/ - OPTUS Natural Gas Distribution Income Fund announced today that it will make a monthly cash distribution of $0.1667 per trust unit on April 15, 1998 to unitholders of record on April 7, 1998. OPTUS Natural Gas Distribution Income Fund is a Toronto Stock Exchange listed (OPT.UN) income trust which through Direct Energy Marketing Limited is Canada's largest independent natural gas marketing company, currently distributing natural gas to approximately 500,000 residential and small business customers in Ontario, Manitoba and Quebec. Direct Energy Marketing Limited supplies approximately 750 mmcf of gas per day to industrial, institutional and utility customers in North America. OPTUS has no external debt and a market capitalization of more than $240 million.

To: Kerm Yerman who wrote (9772)	3/26/1998 8:24:00 PM
From: Arnie	Respond to of 15196

FINANCING / BelAir Energy receives Receipt for Prospectus CALGARY, March 26 /CNW - BelAir Energy Corporation announced today that it has received receipt from the Alberta Securities Commission and the Ontario Securities Commission for its final prospectus dated March 19, 1998, qualifying the issuance of 4,500,000 common shares upon the exercise of its special warrants. A copy of the final prospectus will be mailed to all registered holders of the special warrants directly. On March 30, 1998, any special warrants not previously tendered for exercise will be deemed to be exercised. Upon exercise or deemed exercise, holders will receive two common shares for each special warrant held. Certificates representing the common shares will be delivered to each holder. Merit Investment Corporation acted as agent for the issue of the special warrants which were issued at a subscription price of $0.90 per special warrant. Each special warrant was exerciseable into a unit consisting of one flow through common share and one common share. The subscription price was allocated as to $0.45 to the right to acquire one flow through common share and $0.45 allocated to the right to acquire one common share. BelAir Energy Corporation is based in Calgary and is involved in the exploration and exploitation of petroleum reserves in Western Canada. BelAir is listed on The Alberta Stock Exchange and trades under the symbol ''BGY''.

To: Kerm Yerman who wrote (9772)	3/26/1998 8:26:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Chieftain International Announces Discovery DALLAS, TX, March 26 /CNW/ Stock Symbol: CID. Chieftain International, Inc. (TSE & AMEX: CID) has drilled a gas/condensate discovery well on East Cameron Block 34 in 30 feet of water, 10 miles offshore Louisiana. The well logged in excess of 100 net feet of reservoir gas sands in multiple zones below 10,350 feet. Future plans include completion of the well and installation of production facilities. Initial production is expected to begin prior to year-end 1998. Chieftain has a 40% working interest in the well and the block. The remaining 60% is held by Basin Exploration, Inc.

To: Kerm Yerman who wrote (9772)	3/26/1998 8:28:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Serval Corp. to enter Coiled Tubing Drilling Market CALGARY, March 26 /CNW/ - Serval Corporation of Calgary announced today that it has placed orders for three technologically innovative coiled tubing drilling units to be delivered in 1998. The first unit will be operating in August and the next two units will be delivered in October and December. Serval expects to invest between $18 and $24 million on serving the coiled tubing market over the next two years. Serval is one of Western Canada's leading energy service companies providing a wide range of integrated oilfield services in Canada and internationally. The coiled tubing drilling units being constructed for Serval utilize new technology and will be able to drill to a vertical depth of 1200 meters. They will be used in the drilling of shallow gas wells in southern and central regions of Alberta and are designed to accommodate vertical and directional drilling. These high penetration rate, exceptionally mobile drilling units provide significant efficiencies in rig up, rig down and drilling times. Cost savings to producers are expected to be in the order of 20 per cent and drilling times are expected to be reduced to 18 hours or less. The control cab on the units is fully computerized with real time data acquisition and data transfer links. The Serval coiled tubing units will utilize 6 1/4 inch drill bit for the hole and a 9 5/8 inch bit for surface drilling. The drilling will utilize a 2 7/8 inch 1200 metre tubing coil and can run production casing of 4 1/2 inch diameter. The compact Serval Coiled Tubing units require the moving of only four highway loads - the rig unit, a pump unit, mud tank unit and casing trailer. The four units are supported by a combined tool room and generator trailer which is towed by a one-ton crew cab. Serval provides services to clients through five business units - Coiled Tubing, Construction, Environmental, Fluid and Production Services. Serval is listed for trading on the Alberta Stock Exchange under the symbol SI.UN. There are presently 4,781,360 units outstanding.

To: Kerm Yerman who wrote (9772)	3/26/1998 8:32:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Sinorank Petroleum announces Earnings HONG KONG, March 26 /CNW/ - Sinorank Petroleum Resources Limited (VSE: SNP) Albert Li, President and Director of Sinorank Petroleum Resources Limited (''Sinorank'' or the ''Company''), announces that Sinorank has filed its financial statements for the quarter ended December 31, 1997. Sinorank is pleased to report that its Zhanjiang LPG terminal achieved a sale turnover of $3.8 million and a sale volume of 9,577 metric tonnes (''MT'') in the quarter ended December 31, 1997 compared to $4.6 million and 12,939 MT last quarter. The gross profit margins for the past two quarters have been stable at around 5%. For the quarter ended December 31, 1997, the Company reported a loss of $0.23 million, representing a loss of $0.012 per share, and a cash flow deficit of $85,000 or $0.0045 per share. As at December 31, 1997, the Company had a cash balance of $1.1 million and a short-term bank loan of C$1.0 million, with a working capital deficit of $0.9 million compared to $1.1 million at September 30, 1997. During the first two months of 1998, the Zhanjiang LPG terminal achieved sales of over 8,700 MT with a total sales turnover of $3.2 million. Moreover, the gross profit margins have increased from 5% in December 97 to over 10% in February 98. For the months of January and February, 1998, the Zhanjiang terminal reported a net profit of approximately $32,000 (Rmb 190,000) and generated a net cash flow of $173,000 (Rmb 1.04 million) after depreciation and amortization but before head office expenses. Two major international oil companies have approached Sinorank regarding the possibility of purchasing a significant equity position in the Zhanjiang LPG joint venture. Sinorank has entered into Letters of Intent and Confidentiality Agreements with each of them. These companies have started the due diligence process and should be able to decide whether to make an offer to buy part of Sinorank's share of the Zhanjiang joint venture by the end of March. If successful, the majority of the current directors of Sinorank intend to distribute the proceeds of such sale to the shareholders. However, Sinorank has received a letter from a law firm on behalf of the Company's previous President, Fong Kei Wah and his company Sinorank Group Inc., the largest shareholders of the Company, requisitioning a special general meeting for the purpose of removing Albert Li as director (and therefore President) (on the alleged ground that Mr. Fong believes that he is unable to discharge the duties of his position) and electing Mr. Joseph Chan Siu Ting as director. The directors of Sinorank are considering the matter and seeking legal advice. The results of the Chinese audit of the Yunnan Joint Venture's financial statements revealed that there were unauthorized loans and advances made by Wong Jie, the Deputy General Manager of the joint venture. Sinorank has invested $339,000 (Rmb 2,033,527) into the Yunnan Joint Venture. After the audit, the Chinese partner, Yunnan Oil General Work, reported that a total of $60,595 (Rmb 363,570) were unreasonable expenses that have been charged to the Joint Venture's account. These included telephone bills and traveling expenses that were unrelated to the Joint Venture, entertainment expenses without supporting invoices and other unreasonable expenses. In addition, there were $52,982 (Rmb 317,892) unauthorized loans and advances. $33,333 (Rmb 200,000) was made to a bank account under the control of Mr. Fong. The rest were advanced to Mr. Wong Jie, believed to be an associate of Mr. Fong. Sinorank Petroleum Resources Limited has a 60% interest in Zhanjiang Huayang Petro-chemical Co. Ltd., a Sino-foreign joint venture which built a liquefied petroleum gas (''LPG'') terminal at the port of Zhanjiang, Province of Guangdong, the largest transfer centre for oil and petrochemical products. in southern China. This facility, which conducts a wholesale LPG distribution business in southern China, has been in operation since June of 1996. ''Albert Li'' President

To: Kerm Yerman who wrote (9772)	3/26/1998 8:35:00 PM
From: Arnie	Respond to of 15196

FINANCING / Merit Energy closes Bought Deal Financing CALGARY, March 26 /CNW/ - Merit Energy Ltd. ''Merit'' closed today the bought deal financing arranged by a syndicate of underwriters led by FirstEnergy Capital Corp. and including Nesbitt Burns Inc., Midland Walwyn Capital Inc., Newcrest Capital Inc., and CIBC Wood Gundy Securities Inc., whereby Merit issued 4 million special warrants at $5.70 each for gross proceeds of $22,800,000. Each special warrant entitles the holder to receive one common share of Merit at no additional cost. Merit intends on filing a prospectus to qualify the distribution of common shares on the exercise of the special warrants. Proceeds of this offering will be used to reduce bank indebtedness and subsequently to accelerate Merit's 1998 exploration and development programs and to fund future acquisitions. Merit Energy Ltd. is a publicly traded junior oil and gas company listed on the Toronto Stock Exchange with its primary focus on exploration, production and development within four core areas in the Western Canadian Sedimentary Basin.

To: Kerm Yerman who wrote (9772)	3/26/1998 8:39:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Dynafrac Well Services to Issue Special Warrants CALGARY, March 26 /CNW/ - We are pleased to announce that Dynafrac Well Services Inc. has issued 3,840,400 Special Warrants at $1.25 per Special Warrant, resulting in net proceeds after expenses of the issue of approximately $4,585,500. Each Special Warrant is exercisable into one common share of the Company without payment of any additional consideration. The Company has agreed to use its best efforts to go public within eighteen months, at which time the Special Warrants will be convertible into common shares and will, in any event, convert into common shares within 42 months. The Company plans to allocate $2,000,000 of the net proceeds toward the fabrication of one nitrogen pumper and one coil tubing unit, and $2,585,500 to working capital. The ARC Canadian Energy Venture Fund managed by ARC Financial Corporation of Calgary, is the major investor in this placement, participating for 3,200,000 Special Warrants. ARC Financial is a highly respected investment management and merchant banking company specializing in the oil and gas exploration, production, and service sectors. We are pleased that ARC has the confidence in the equipment, personnel, management and outlook of Dynafrac to provide this support. The remaining Special Warrants have been placed with sophisticated investors and employees of the Company. Yorkton Securities Inc. acted as agent for this placement.

To: Kerm Yerman who wrote (9772)	3/27/1998 12:08:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / J&L Capital to Acquire All Assets of Cancoil Technology J&L CAPITAL VENTURE CORP. ASE SYMBOL: JLX MARCH 26, 1998 CALGARY, ALBERTA--J&L CAPITAL VENTURE CORP. (the "Corporation") a junior capital pool company, announces that it has by a Letter of Intent dated March 13, 1998, reached an agreement to acquire all or substantially all of the assets (the "Assets") of Cancoil Technology Corporation ("Cancoil"), a private Alberta company. The Corporation will purchase the "business" of Cancoil as a going concern and will therefore acquire the right to the trade and corporate name of "Cancoil" as well as any goodwill associated with that name. Any agreement between the Corporation and Cancoil will be subject to regulatory approval, approval of the majority of the minority of the shareholders of the Corporation and approval of the shareholders of Cancoil. The purchase price of the Assets shall be the sum of $2,829,734 which will be satisfied by the Corporation as follows: (a) The assumption of the long Term Debt payable to Mercedes Benz Credit of Canada Inc. in the principal amount of $1,889,734 plus interest. The Vendor will assign the Loan Agreement and General Security Agreement with Mercedes Benz Credit of Canada Inc. to the Purchaser, and the Purchaser will provide a corporate guarantee for such debt. Furthermore, the Corporation will use its best efforts to have the personal and repurchase guarantors released from their respective guarantees to Mercedes Benz Credit of Canada Inc.; (b) The assumption of the Shareholders Loan, being non-interest bearing loans in the principal amount of up to $680,000. The Purchaser agrees, subject to regulatory and shareholder approval, to offer, on a pro rata basis, to the lenders up to 3,400,000 common shares in the capital of the Purchaser ("Common Shares") at a deemed value of $0.20 to satisfy and retire the Shareholders Loan; (c) The issuance of ONE MILLION, THREE HUNDRED THOUSAND Common Shares at a deemed value of $0.20 per share for an aggregate value of $260,000 In addition to the Purchase Price the Corporation has also agreed to pay to Cancoil a FIVE (5 percent) royalty on gross revenues received by the Corporation from the operations of the equipment purchased from Cancoil and the associated technology for 7 years from the Time of Closing. The Corporation shall have the option to buy out the royalty from Cancoil at anytime for $2,500,000. The acquisition of the Assets is a non-arms length transaction in that Mark Andreychuk, director of the Corporation, is also a director and President of Cancoil and Salvatore Giantomaso, director of the Corporation, is also a shareholder of Cancoil. Cancoil was incorporated on April 24, 1997 and has no history of operations but is currently constructing an oil and gas drilling and service rig utilizing the latest advances in coil tubing technology (the "Rig"). Upon the acquisition of the Assets the Corporation intends to complete the manufacture of the Rig. It is anticipated that the Rig and other surface equipment to be manufactured by the Corporation will allow cost effective drilling of shallow vertical/slant wells and deep directional re-entry (underbalanced/overbalanced). It is anticipated that the Rig will also have the capability to perform underbalanced production logging/perforating with both coiled tubing and wireline. The shareholders of the Corporation will be asked to approve as the Corporation's Major Transaction the acquisition of substantially all of the assets of Cancoil as described above. It is intended that the agreement to purchase the Property qualify as a "Major Transaction" under Alberta Securities Commission Rule 46-501, and the required submissions will be made to the regulatory authorities. The acquisition will be presented to the shareholders of J&L Capital Venture Corp. for their approval within the meaning of Rule 46-501. Effective March 27, 1998, the common shares of J&L Capital Venture Corp. will be listed upon and trade on the facilities of The Alberta Stock Exchange under the stock symbol "JLX".