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

To: Kerm Yerman who wrote (9883)	4/1/1998 8:52:00 PM
From: Herb Duncan	Respond to of 15196

MERGERS-ACQUISITIONS / Berkley Petroleum Corp. Completes Acquisition of Burner Exploration Ltd. TSE, ASE SYMBOL: BKP APRIL 1, 1998 CALGARY, ALBERTA--Berkley Petroleum Corp. ("Berkley") (BKP:TSE) announced that it has taken up and paid for in aggregate approximately 25,500,000 common shares and 1,304,348 warrants of Burner Exploration Ltd. ("Burner") (BXP:ASE), representing 96 percent and 100 percent of the issued and outstanding common shares and warrants, respectively, pursuant to Berkley's offer to purchase all of the issued and outstanding common shares and warrants of Burner, dated March 9, 1998. Berkley intends to use the compulsory acquisition provisions of the Business Corporation Act to acquire all of the remaining common shares of Burner not owned by Berkley.

To: Kerm Yerman who wrote (9883)	4/1/1998 8:54:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Arakis Announces 1997 Results NASDAQ SYMBOL: AKSEF APRIL 1, 1998 CALGARY, ALBERTA--Arakis Energy Corporation (NASDAQ: AKSEF) today announced its financial and operating results for the year ended December 31, 1997. The Company reported a net loss of U.S.$9.2 million, or U.S.$0.10 per share for the year, compared with a net loss of U.S.$12.9 million, or U.S.$0.23 per share, in 1996. Funds applied to operations in 1997 amounted to U.S.$3.2 million, compared with U.S.$11.7 million in the previous year. Major factors contributing to the Company's improved financial performance were increased interest income, combined with the elimination of interest expense, plus a significant reduction in general and administration expense. An offsetting factor was increased depreciation and depletion expense, resulting from the $4.7 million write-off of costs associated with an exploration and production sharing agreement in Oman, which expired at December 31, 1997. A portion of the decline in net loss per share in 1997 resulted from the increase in the average number of shares outstanding from 55.8 million to 88.6 million. Capital expenditures in 1997 totaled U.S.$4.0 million, compared with U.S.$65.8 million in 1996. Since November 29, 1996, Arakis' Consortium partners in the Sudan Petroleum Project have borne substantially all expenses related to the Sudan Concession (excluding bonuses and rentals payable) and will continue to do so until they have matched, on a pro rata basis, financial credits awarded to Arakis. Based on the Company's economic evaluations and Consortium spending estimates, Arakis expects to begin paying its 25 percent share of ongoing Consortium expenditures by July 1998. The Company expects to undertake a financing in the Canadian and international public markets in the near future, subject to approval of the Board of Directors. At year-end 1997, the Company's working capital amounted to U.S.$54.5 million. During 1997, the Company's primary operating focus remained fixed on the Sudan Petroleum Project in which it is a 25 percent interest joint venture partner. Under the operatorship of an international consortium, the project entails the exploration and development of a 12.2 million-acre concession in the Republic of Sudan and the construction of a 1,500 kilometer export pipeline. The Consortium's goal is to achieve commercial production at a minimum rate of 150,000 barrels of oil per day by mid-1999. Activity on the Concession in 1997 resulted in the drilling of 25 wells, of which 18 were new pool discoveries or extensions, three were successful development wells and four were dry and abandoned. Consortium plans for 1998 include a further acceleration of activity including the drilling of up to 22 exploration and appraisal wells and 36 development wells. The development drilling program will focus on the five fields designated to be the initial project producers: the Greater Heglig, the Greater Unity, the Toma South, the El Nar and the El Toor fields. Field development studies anticipate the installation of production facilities during the next dry season, commencing in November 1998. Capital expenditures by the Consortium in 1997 totaled U.S.$128 million, of which U.S.$122 million was incurred in exploration and development activities and U.S.$6 million was expended on the pipeline construction program. At year-end 1997, estimated gross recoverable crude oil reserves on the Concession totaled 428.9 million barrels, of which 271.3 million barrels were classified as proved and 157.6 million barrels as probable. Reserves in the proved category were up 111.0 million barrels, or 69 percent, compared with a year earlier, with most of the increase attributable to follow-up drilling to earlier discoveries at El Toor and Toma South in the Unity exploration area. Relatively small volumes have been assigned to 1997 discoveries until their potential can be more fully evaluated through additional drilling. All of the year-end 1997 reserves are located in the Unity and Heglig blocks, which together account for approximately 34 percent of the Concession area. Exploration to date on the remaining 66 percent of the Concession, comprising the Kaikang area, has been limited, for the most part, to the gathering of seismic and gravity data. Going forward, Kaikang will be the target of increased emphasis with up to six exploratory wells planned for the area over the current dry season, which extends until May 1998. The year-end 1997 reserves were evaluated by Sproule Associates Limited ("Sproule"), an independent geological and petroleum engineering firm and a leading Canadian and international reserve evaluator. Sproule has confirmed that the 271.3 million barrels of proved reserves are sufficient to support the project's initial commercial production target of 150,000 barrels per day, subject to drilling additional development wells to achieve deliverability. The Consortium's export pipeline plans also moved firmly ahead in 1997. During the latter part of the year and early in 1998, contracts valued at approximately U.S.$1.2 billion were awarded for the supply of line pipe and for the engineering, procurement and construction of the pipeline and related facilities. Late in the first quarter of 1998, progress towards construction became more evident as initial supplies of the steel line pipe began arriving in Port Sudan and the construction contractors commenced mobilization of their forces and equipment in the country. Commenting on the past year's performance, Raymond P. Cej, President and Chief Executive Officer of Arakis said, "1997 was a year of considerable achievement, positioning Arakis for significant future growth. Startup of commercial production in Sudan is now less than eighteen months away - an extremely exciting prospect. Our current priority is to secure the additional financing we need to fund our share of project costs. Given the short term nature of our financing requirements and the substantial cash flows we can anticipate from the project, I am confident this can be accomplished on terms that will add value for our shareholders." /T/ SELECTED DATA For the Years Ended December 31 ------------------- 1997 1996 ---- ---- (All financial amounts in thousands of U.S. dollars, except per share items) Total revenues $ 4,140 $ 2,933 Net loss $ 9,212 $12,901 - per share $ 0.10 $ 0.23 Funds applied to operations $ 3,230 $11,664 Weighted average common shares outstanding (in thousands) 88,583 55,809 As at Year-end -------------- Working capital $54,482 $55,371 Long-term debt - $ 298 Shareholders' equity $179,802 $185,071 Gross recoverable crude oil reserves on the Sudan Concession (in millions of barrels) Proved 271.3 160.3 Probable 157.6 161.2 ----- ----- Total 428.9 321.5 ----- ----- /T/

To: Kerm Yerman who wrote (9883)	4/1/1998 11:28:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. / Prince Resources Corp. Chinese Agreement PRINCE RESOURCES CORPORATION - ARM S LENGTH AGREEMENT 1998-04-01 CALGARY, ALBERTA PRINCE RESOURCE CORPORATION ("Prince" or the "Company"), an emerging oil and gas producer listed on the Alberta Stock Exchange, announces that it has reached an arm's length agreement in principle with Yonda Developments Ltd. ("Yonda") of Hong Kong to develop an International Trade Centre for the import of pre-owned industrial equipment in the "free trade" zone of Shanghai. This is the first private project of this kind that has gained the support of the various levels of governments. Initially, Yonda shall subscribe for up to 1.5 million treasury shares of Prince at $0.20 per share to pay for the incurred costs of preparing an independent feasibility study to be undertaken by KPMG in Hong Kong and the costs associated with the private placement. At the completion of a successful feasibility study, a detailed agreement may be entered into with Yonda. Initial terms of such agreement have been discussed but are subject to change. Yonda may further inject $850,000.00 into Prince to purchase up to 4.25 million treasury shares at $0.20 per share. The funds raised and the shares to be issued will be held in trust and will only be released upon Prince successfully raising $20 million U.S. dollars for the funding of the International Trade Centre. The $850,000.00 will be used by Prince as working capital to fund oil and gas deals in China which the company is currently negotiating. Subject to the successful raising of the major financing by Prince, Prince will purchase the project from Yonda for 18.25 million shares. Any agreement will be subject to regulatory and shareholder approval. The Board of Directors of Prince has approved the initial private placement to further evaluate this project and application has been made for the approval of The Alberta Stock Exchange for the initial private placement. The intent of this transaction, should it be successful, is to make the presence of Prince known in China through Yonda. Current management intends to expand its oil and gas business bases into China through this particular transaction. Chairman of Yonda Developments Ltd., Danny Mak, will be nominated to the Board when the Company has made a final decision to proceed with the transaction contemplated herein, to replace the departing director, Mr. Bruce D. Lyle. Mr. Lyle has resigned, effective immediately, as the president and director of the Company. Mr. Richard K. Yu has been appointed president of the Company.

To: Kerm Yerman who wrote (9883)	4/1/1998 11:31:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Destiny Resource Services Corp. Third Quarter Results DESTINY RESOURCE SERVICES CORP. ANNOUNCES THIRD QUARTER RESULTS 1998-04-01 CALGARY, ALBERTA Destiny Resource Services Corp. today announced their financial and operating results for the third quarter and nine months ended February 28, 1998. Three Months Ended Nine Months Ended (unaudited) February 28 February 28 ($ thousands, except share information) 1998 1997 1998 1997 --------------------------------------------------------------------------- OPERATING RESULTS ----------------- Revenue Canada 7,878 7,399 13,523 13,955 International 7,366 3,203 21,246 9,734 --------------------------------------------------------------------------- Total revenue 15,244 10,602 34,769 23,689 Net income 911 1,068 2,381 1,018 Per share (basic) 0.12 0.24 0.30 0.23 Cash flow from operations (1) 1,415 1,436 3,730 1,973 Per share (basic) 0.18 0.32 0.47 0.45 FINANCIAL POSITION ------------------ Working capital (deficiency) 2,660 (736) Total assets 24,355 16,877 Long-term debt (2) 2,166 2,531 Shareholders' equity 10,877 3,635 COMMON SHARE DATA ----------------- Weighted average (basic) 7,897,242 4,550,000 7,889,950 4,352,198 Weighted average (fully-diluted) 10,122,500 7,982,500 10,122,500 7,982,500 --------------------------------------------------------------------------- (1) Before net change in non-cash working capital. (2) Including convertible debentures totaling nil ($865,000 - 1997) and current portion of long-term debt totaling $984,121 ($598,809 - 1997). For the three months ended February 28, 1998, Destiny reported revenue of $15,243,580 compared to $10,601,769 a year ago. The 44 percent increase is a result of expanding international activities, primarily in Bolivia where the Company is benefiting from several long-term, multi-crew projects it was awarded earlier in the fiscal year. Net income for the current period declined slightly to $910,850 or $0.12 per share from $1,067,918 or $0.24 per share reported for the same period in 1997. The 15 percent earnings decrease is attributable to start-up costs of two additional crews in Bolivia, mobilization and start-up costs of one crew in Guatemala and two additional crews in the United States. Cash flow from operations (before net change in non-cash working capital) decreased 1 percent to $1,414,695 or $0.18 per share compared to $1,435,745 or $0.32 per share for the corresponding period last year. Destiny's revenue for the nine-month period increased 47 percent to $34,769,820 compared to $23,689,047 in 1997 as a result of growth in all of the Company's international markets, especially Bolivia and Papua New Guinea. Net income totaled $2,380,866 or $0.30 per share, a 134 percent increase over $1,018,068 or $0.23 per share recorded in 1997. The improvement in earnings is the result of improved profitability in the Company's United States operations as well as increased activity levels in Bolivia and Papua New Guinea. Cash flow from operations (before net change in non-cash working capital) totaled $3,730,362 or $0.47 per share in 1998 nine-month period compared to $1,972,697 or $0.45 a year ago. As previously announced, on March 10, 1998 the Company signed a letter of intent to acquire all of the issued and outstanding shares of Battle River Holdings Inc. for total consideration of approximately $8.0 million, which is comprised of cash and common shares of Destiny. Battle River Holdings is a privately held oilfield service company providing year-round oilfield construction and strategic base camp accommodations in the gas prone regions of northwest Alberta and northeast British Columbia. The estimated gross revenue and normalized net income of Battle River Holdings for the year ended January 5, 1998, based on the company's internal unaudited financial statements, was approximately $11.0 million and $1.6 million, respectively. This acquisition will significantly enhance Destiny's already strong domestic market position in providing essential front-end services to the energy industry and will help to mitigate the seasonal business fluctuations of the geophysical business in Canada. On March 30, 1998, the Company also announced it had signed a letter of intent to acquire all of the issued and outstanding shares of Double R Drilling Company Ltd. for total consideration of approximately $6.5 million. This transaction is comprised of cash, the assumption of a note payable and common shares of Destiny. Double R is a privately held, low cost, seismic drilling contractor with year-round seismic drilling operations in Canada and the United States of America. The estimated gross revenue and normalized net income of Double R for the ten months ended January 31, 1998, based on the company's internal unaudited financial statements, was approximately $12.0 million and $1.4 million, respectively. Double R is Destiny's primary competitor in seismic drilling in Canada; consequently, this acquisition will significantly enhance Destiny's North American market position and will also allow the Company to field additional international crews. Both acquisitions are subject to certain conditions, including regulatory approvals and due diligence by Destiny, and are scheduled to close on May 31, 1998. The outlook for the final three months of fiscal 1998 and into fiscal 1999 remains strong. Additional long-term contracts in Bolivia, increased activity levels in the United States and the major project in Papua New Guinea will ensure a strong finish to the fiscal year. Exploration and production activity in Western Canada is shifting to natural gas, which bodes well for Destiny's 80 percent bias towards this commodity. As well, the recent execution of letters of intent to acquire two competitor companies has the potential to provide expanded year-round domestic and international revenue with increased fleet utilization thereby providing for significant growth in profitability. Destiny's strategy remains focused on international expansion and domestic market consolidation that will continue to provide the Company and its shareholders with increased value. Destiny Resource Services Corp. is a Calgary-based oilfield service company providing specialized front-end services for exploration, production and seismic acquisition companies in selected markets worldwide. Destiny has operations in North and South America, the Middle East, Africa and Southeast Asia, and serves a customer base that includes many of the largest integrated energy and geophysical companies in the world.

To: Kerm Yerman who wrote (9883)	4/2/1998 12:04:00 AM
From: Kerm Yerman	Respond to of 15196

FINANCING / Alberta Oil & Gas Corp Private Placement ALBERTA OIL AND GAS PETROLEUM CORP. CLOSES PRIVATE PLACEMENT 1998-04-01 CALGARY, ALBERTA Alberta Oil mid Gas Petroleum Corp. ("AOG") has closed its previously announced private placement of 3,700,000 Special Warrants at $2.75 per Special Warrant, for gross proceeds of $10,175,000. The financing was accomplished through a wholly owned subsidiary of AOG. Release of the funds from escrow to AOG will be dependent and occur upon closing of the proposed Arrangement involving AOG, Cairo Energy Inc., 763375 Alberta Ltd., 763375 Alberta Ltd., and 771988 Alberta Ltd. The Special Warrants were sold to investors pursuant to prospectus exemptions under applicable Securities legislation through a syndicate of agents lead by FirstEnergy Capital Corp. and including Gordon Capital Corporation and RBC Dominion Securities Inc. Through the Special Warrant trust indenture and the Arrangement, each Special Warrant will be converted into one, freely tradable common share of AOG. The Arrangement will be voted on at an Annual and Special Meeting to be held at 9:00 a.m. on April 9, 1998 at the 400 Club in Calgary, Alberta. Subject to AOG securityholders and final court approval, the Arrangement is expected to close on April 15, 1998. Effective upon closing of the Arrangement, AOG will be renamed EDGE ENERGY INC. The Company expects to recommence trading on The Alberta Stock Exchange as EDGE ENERGY INC. shortly after closing the Arrangement.