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

To: Kerm Yerman who wrote (9978)	4/7/1998 8:58:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING MONDAY, APRIL 6, 1998 (3) TOP STORIES Low Costs Benefit Petro-Canada The Financial Post Petro-Canada can make a profit from its Grand Banks oil even at today's low prices, says the official in charge of offshore development. The estimated cost of producing oil from Terra Nova off Newfoundland, for example, is just under US$11, including taxes and transportation costs to the U.S. eastern seaboard, Petro-Canada's Gary Bruce said yesterday. "Today's crude prices are low at US$16 a barrel, but still well above Terra Nova extraction costs." There are no plans to reduce the company's big commitment to the area, Bruce said, although it is watching prices closely. Petro-Canada is spending one-third of its $1.1-billion capital budget in Atlantic Canada this year. "We'd obviously like to see oil stay above US$20. We watch it closely and we will manage our cash flow appropriately," he said after speaking about opportunities for western Canadian energy companies at a meeting in Calgary of the Newfoundland Ocean Industries Association. Calgary-based Petro-Canada owns 20% of Hibernia, which started producing in November. It is also the largest owner (29%) and operator of Terra Nova, which it expects to go into production in 2000. The cost of extracting oil from Hibernia has been estimated at US $12.95 a barrel because of large government and private spending associated with the construction of an iceberg-proof, fixed platform. Development costs for future projects are expected to be lower because the industry is switching to more economical floating production vessels. Production from Hibernia should average 60,000 barrels a day this year, increasing to 100,000 b/d by the end of 1998. Bruce pegged recoverable oil from the Jeanne d'Arc Basin, one of six potentially productive basins in Atlantic Canada, at five billion barrels, putting its potential production at 500,000 b/d for the next 30 years. "The potential outside the Jeanne d'Arc is as yet unknown. However, it could result in the development of a much larger industry if these basins prove to be as prolific," he told the group. All Systems Go At Remington Energy Calgary Sun Remington Energy president Paul Baay is quite precise on his assessment of current oil prices. "You have to learn how to make money at $15 a barrel WTI (West Texas Intermediate), and if you can do that, anything higher is a bonus," he says. At just 35, he runs one of Alberta's most successful junior oil and gas companies -- and he's seen his company's share price on a roller-coaster ride from a low of $1.50 to $35 a share in 1997 to an average $15 today. Yet, he's anything but pessimistic about his company's fortunes -- or its share prices -- because investors who bought at $1.50 made a tidy fortune and 65% of the company's assets are in natural gas. So current strong natural gas prices are going to substantially help Remington ride out a period of unstable oil prices. A likable man with a deep sense of humor, Paul chuckles when he recalls his 1996 annual report predicted oil prices would average $27.50 Cdn a barrel in 1997! Who knows, they may be at that price again later this year. He enjoys recounting how his father, Roy, and partner, Vic Baer, founded Remington in 1976, with little money but lots of hope. That was in the heady days when oil prices seemed to be going up by the day. Roy had worked at Imperial Oil as both a draftsman and a landsman, and Vic was the financial wizard. "They just looked round, decided they wanted to own their own company rather than work for someone else, and they made a very good team together. So good a team that after starting with a staff of 10 employees, Remington now has 100 employees. Paul attended Bishop Carroll high school in Calgary and then got a bachelor of arts degree in management economics from the University of Western Ontario. At 20, he was on the staff of Remington, starting out coloring maps, doing such chores as making sure the monthly cheques balanced and learning everything about running a business from the ground up. He still thinks that's the best way to do it. "I didn't study geology, geo-physics or engineering. I studied management. Even today, I leave the technical decisions to the technical teams. Never pretend you're an engineer when you are not," he insists. Baer died in the late 1980s, and for a time the company was thrown into turmoil. The deal was the Baay family would buy out the Baer's family share of the company. But oil prices, helped by the notorious national energy program, had collapsed -- and it was Paul, by then president, who pulled the company together. He took the firm public, untangled its financial woes and set its fortunes soaring. Today, despite sagging oil prices, Remington is considered one of the great successes of the junior oil patch. Paul is married to wife Gillian, and they have two daughters -- Courtney, 2, and Sarah, 10 months. He's active in industry and community affairs, some of them unrelated to the oil and gas business -- and to that of a conservative entrepreneur. For instance, while he is active in the Canadian Association of Petroleum Producers, and will soon be chairman of Junior Achievement in southern Alberta, he's also on the board of the Alberta College of Art and Design. "Yet don't think I intend to dye my hair a strange color, which seems to be the big thing to do at the college right now," he chuckles. Canadian 88 Energy Corp. Announces Ricinus Natural Gas Discovery - Major Foothills Drilling Program Underway at Caroline and Wild Cat Hills Canadian 88 Energy Corp. of Calgary, Alberta, announced that it has successfully completed the drilling of its LSD 2 of Sec. 6, Twp. 34, Rge. 8 W5M deep pool test in the Ricinus area of West Central Alberta encountering significant natural gas pay in the Viking formation. The well is located Northwest of the prolific Bearberry gas field where the Company has extensive exploration acreage. The 2 of 6 well is the first of a multi-well program planned for the area by Canadian 88, with recoverable reserves estimated to exceed 100 Bcf from the prospect. In addition, Canadian 88 confirmed that it has commenced drilling on its deep foothills natural gas play at Caroline offsetting a 3,200 acre drilling licence in Twp. 33, Rge. 5 W5M, which sold for a record bonus of $8.25 million at the March 5, 1998 Alberta Petroleum and Natural Gas Rights Sale. Surface casing has been set on the Company's new pool wildcat well at LSD 7 of Sec. 19, Twp. 33, Rge. 5 W5M, drilling to a total depth of 4,000 meters down to the Cambrian formation. Surface lease construction is also underway at Canadian 88's new well licenced in LSD 10 of Sec. 24, Twp. 34, Rge. 6 W5M and construction has commenced at a further deep pool test licenced by Canadian 88 at LSD 10 of Sec. 2,Twp. 35, Rge. 6 W5M. Canadian 88 also announced that new drilling operations are underway on the Company's extensive land holdings in the Wildcat Hills area of the western foothills of Alberta. The Company's new pool wildcat well at LSD 2 of Sec. 33, Twp. 31, Rge. 10 W5M is drilling ahead at 500 meters without difficulty to evaluate the Mississippian formation at a total depth of 2,560 meters. The well is evaluating the first of three large foothills thrust sheets the Company has identified in the area for drilling during 1998. Reserve potential of these thrust sheets is estimated to range from 100 to 500 Bcf apiece. Canadian 88 paid $1.58 million in total bonuses for 8,320 acres in the Wildcat Hills area at the March 5, 1998 Alberta Government Land Sale with offsetting lands purchased by Petro-Canada and Shell Canada Limited totaling $1.26 million for 5,760 acres. Canadian 88 has budgeted a minimum $130 million of capital spending in Western Canada during 1998 alongside its $150 million Rocky Mountain Exploration (RMX) Fund focusing on deep foothills natural gas exploration and development. Alberta Is A Gas, Gas, Gas Globe & Mail AS the OPEC cartel dithers over the stagnant price of oil, Alberta's resource industry players keep their hopes up by thinking about natural gas, which they figure will solve all their problems. More pipeline capacity to the United States means higher prices and a return to good times, right? The message from a recent industry conference, however, is that it isn't quite that simple. For an industry cruising along quite nicely with $20 (U.S.) plus a barrel crude oil prices, the past six months or so have been a rude shock, as a global oversupply and lack of demand have combined to kick the legs out from under the crude price. That has blown gaping holes in the balance sheets and spending plans of quite a few producers, particularly those involved in heavy oil. Luckily for many, the oil patch -- unlike its name -- is based on two resource commodities (oil and gas) instead of just one. Otherwise, there would be more than a few fancy mansions up for sale in Mount Royal and on Pump Hill. Investors who had the luck, wisdom or foresight to build up the gas side of their portfolios are counting on that to keep them in cigars and brandy. Their hopes for higher gas prices are based on the expected increase in export pipeline capacity to the United States over the next two years. That includes a proposed expansion by TransCanada PipeLines as well as the Foothills/Northern Border project (jointly owned by Nova, Westcoast Energy and TCPL) and the proposed Alliance pipeline project. A shortage of pipeline capacity to the United States has kept prices in Alberta low for several years by creating a backlog of gas. Once that backlog has been removed, everyone expects the gas price in Alberta to climb; in fact, it already is rising as markets anticipate the end of the gas bubble. How much further it will rise, and how quickly, is the multibillion-dollar question. At least two analysts at a recent gas pipeline conference in Calgary organized by the Toronto based Canadian Institute said if Alberta producers want to fill all the pipe that is being put in place in the next three years, they had better get cracking. Even with record rates of drilling activity last year, they say the industry will be pressed just to keep up with capacity increases. Part of the reason, according to FirstEnergy analyst Martin Molyneaux, has to do with a phenomenon called the "decline rate," which refers to the fact that the amount of gas produced from a well falls off over time. Decline rates have been rising steadily for years, and that means more wells have to be drilled just to remain at the same level of production. Mr. Molyneaux said the Western basin will have to drill more than 5,000 successful gas wells this year and next to supply the expected capacity increases coming from TCPL, Northern Border and Alliance. Other analysts have said that producers will have to find as much gas this year as they have in the past two years combined, just to fill the pipes. Roland George, an analyst with the consulting firm Purvin & Gertz, said between 4,500 and 6,000 wells will have to be drilled this year to fill existing capacity, including Foothills/Northern Border. An additional 1,500 wells -- for a total of up to 7,500 -- will be needed to fill Alliance in 1999 or 2000, depending on when the pipeline opens. That is almost twice as many as were drilled in 1997. The industry's ability to do this, however, will be constrained by the fact that budgets are tight because of slumping oil prices, Mr. Molyneaux pointed out. Almost all the producers who have released their projections for this year were forced to make significant cuts to their spending programs because of declining cash flow from their oil operations. If there is one bright spot, it is that drilling service companies are likely to be a good bet for the foreseeable future. If the industry has to maintain a near-record pace of gas well drilling for the next two years, that means anyone with rigs and service workers will probably do well. The debate over the Alliance project, meanwhile, continues to be a big game of high-stakes poker among the various participants -- which include the soon to be married Nova and TCPL, as well as Foothills / Northern Border and the National Energy Board. As the NEB hearing has dragged on, Alliance has announced that it may have to postpone its launch until 2000. A sizable segment of the oil patch sees this delay as a result of a deliberate campaign by Alliance's arch enemy Nova, using Foothills / Northern Border as a blunt instrument to keep Alliance busy and delay the project while Nova and TCPL add more capacity to their own networks. If that was the intention, it seems to be working. Both a Nova executive and a representative of TCPL made a point of saying at the conference that with their planned expansions they would have plenty of capacity available "more than a year before Alliance" has its pipe ready to deliver gas. Sources say there have been continuing high-level discussions behind the scenes between Nova, TCPL, Alliance and various oil and gas producers, with most of the producers making it clear that their approval of the Nova-TCPL merger depends on how the Alliance hearing goes. If Nova continues to give Alliance a hard time, the feeling is that Nova should get the same treatment when it comes time to bless its union with TCPL. Is the pipeline giant listening? It sure doesn't look that way.

To: Kerm Yerman who wrote (9978)	4/7/1998 9:18:00 AM
From: Kerm Yerman	Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING MONDAY, APRIL 6, 1998 (4) TOP STORIES, Con't Drilling Rig Utilization Averaged 88% In First Quarter A little more than a third of Canada's 577-rig fleet is at work this week with most of the remaining activity concentrated in west central Alberta. Spring break-up has dropped the active rig count to 218 from over 500 at the beginning of March. How many rigs will return to work for the summer will depend partly on oil prices and the amount of capital producers are willing to put into gas drilling. Despite the oil price crash, the winter of 1997/98 will go down in the records as one of the busiest ever for the oilpatch. Rig utilization for the first quarter -- based on weekly surveys -- averaged 88% even though oil prices were low and Canada's contractors had 78 more rigs available for work than last year. Of the 560 rigs in the Canadian fleet available for work in the first quarter, 493 were active and 66 were down. That compares to fewer active rigs last year (448) but a higher utilization rate of 93% since demand was high and only 34 of the 482 rigs available were down. This week, the busiest operators were Northrock Resources Ltd. with 12 active rigs followed by Poco Petroleums Ltd. with 11 rigs and Talisman Energy Inc. with 10 rigs. Just in case you may of missed the North American Rig Count published over the weekend at the Korner, the number of working rigs in Canada fell 69 from the previous week, to 173, vs. 245 one year ago. That's a pretty serious decline of over 25% in just one week. Chauvco Resources International To Take $16.4M Writedown The Financial Post Chauvco Resources International Ltd. said yesterday it will take a $16.4-million asset writedown in its first quarter after a review of its only operating reservoir, which is in Gabon, proved much smaller than expected. In a statement after the markets closed, it said its share of proved reserves in the Remboue reservoir has been reduced to 904,000 barrels. It has also cancelled a $22-million private-placement financing. Company officials could not be reached for comment yesterday. Last month, it warned investors it might not be able to meet some of its obligations. HEGCO Canada, Inc., reported the Company began to flare gas from the El Grande Well late Friday, April 3. The flaring occurred naturally, with no treatment, from an isolated interval within the lower Arbuckle zone. Upon flaring the gas, Mr. Hewitt stated, ''Evaluation thus far conclusively determines that this reservoir system contains marketable gas. Management's expectations for this field are very high. We will be evaluating the current well as well as drilling additional wells on our acreage positions to understand the magnitude of this Arbuckle reservoir system. Over the last several weeks, the company has continued to increase its acreage position over a seismically defined area and has acquired interests in 33 square miles surrounding the El Grande re-entry.'' Field operations had been delayed due to mechanical problems prior to the first isolation, and in the past week to weather. The Company is attempting to complete its testing process in a timely manner. The Company wants to be thorough in its evaluation to obtain as much knowledge as possible to assist in the development of the entire field. In addition to the evaluation of the Arbuckle zone, the company is planning to drill, test and evaluate the Penters zone, which is above the Arbuckle. The Penters is one of the primary objectives in this field. When evaluating the Arbuckle zone with Schlumberger's Ultra Sonic Imaging Cement Evaluation log, the Company also identified gas present in the cement board over the Penters zone. Management estimates that in addition to the Arbuckle discovery the Penters zone is expected to contribute significantly to the possibilities in this field. HEGCO Canada, Inc., is an Alberta, Canada corporation trading on the Alberta Stock Exchange under the symbol, ''HEG''. The Company is an oil & gas production, servicing and drilling company operating in Oklahoma and Arkansas. INTERNATIONAL International Rochester Energy Corp. (ROH) reported the formation evaluation of the Canacabare no. 1 well has been completed. The Canacabare no. 1 well has been evaluated with a series of resistivity and porosity logs which indicated good porosity at 20-24 percent and above average oil saturation at 40 percent, which both compare favourably to producing wells in the Mirador, Gacheta and Ubaque formations in the area. The Canacabare no. 1 well was drilled vertically to a total depth of 8410'. 7" production casing has been set to the total depth of the well. Production testing on the Mirador, Gacheta and Ubaque formations is planned. Both the Mirador and Gacheta pay zones produce medium to high quality oil in other producing fields near the Canacabare no. 1. Because of the impending rainy season in the Llanos area of Colombia, the drilling rig is being moved off location. Production testing will commence as soon as a completion rig can be moved on location, currently anticipated to be within the next few weeks. Rochester also announced that testing operations are continuing on the Company's Estero no. 3 well. Rochester Energy is a Canadian based oil and gas exploration company and is participating in the exploration and development of the 210,000 acre Alcaravan Association Contract and the 32,000 acre Miradores Association Contract located in the Llanos Basin of Central Colombia. The Company is also pursuing other, high potential, international oil and gas exploration opportunities. Centurion Energy International Inc. announced that the El Biban field in Tunisia, North Africa, has produced for approximately a month and has reached a stabilized flowing production rate of 4000 bopd (net to Centurion 2,950 bopd.) Centurion has a 73.7 percent working interest in the El Biban field (Aminex Tunisia Ltd. 26.3 percent) and the increased production from this field will have a significant impact on cash flow. Netbacks on this field will be in excess of $15 Cdn. based on current oil prices. Ezzaouia Field Development Ezzaouia 8 was spudded on March 2 and has reached TD. A production liner is being run and then the well will be logged. Ezzaouia 12 is being evaluated as separate zones are being perforated and flow tested. Results of these two wells will be announced soon. Presently the total net production of the company's operation in Tunisia is 4100 bopd from the El Biban, Ezzaouia and Robanna fields. Centurion Energy is a Calgary-based oil and gas company with production, development and exploration assets in Tunisia and a 40 percent interest in an exploration license in Egypt. Centurion Energy's common shares are listed on the Toronto Stock Exchange under the symbol CUX. First Calgary Petroleums Ltd. (FCP) commenced drilling operations on the Bazma Permit in central Tunisia. The well, BZM-1 will be drilled to a planned depth of 3,800 meters using the CTF 04 drilling rig which recently completed the drilling of the Nefta 1 well on the Corporation's Sud Nefta Permit, 165 kilometers to the west of Bazma. The Nefta 1 has been suspended pending further geological and engineering interpretation which may result in further testing operations. The Bazma Permit, which covers 500,000 acres has several Lower Permian reef-like features which have been identified by extensive geophysical interpretation and geological studies. The BZM-1 well will test the ''A'' Prospect, a well-defined structure interpreted as a Permian reef, which is 2,500 acres in size with structural closure of 350 meters having potential for significant reserves of hydrocarbons. Working interest partners in the Bazma permit are Eurogas Corporation 40%, Mobil Exploration and Producing Ventures Tunisia Inc. 40%, First Calgary Petroleums Ltd. 15%, Largo Petroleum 3% and Rigo Oil Company 2%. The Tunisian state oil company, ETAP, has the right to participate up to 50% in any development on the permit. FCP is an international oil and gas company listed on the Toronto Stock Exchange, trading under the symbol ''FCP''. Chauvco Resources International announces the completion of its review of the Remboue reservoir in Gabon with the assistance of external engineering consultants. The Company has concluded that its working interest share of proved reserves should be reduced to 904 thousand barrels based on independent engineering price forecasts of US $17.OO WTI for l998, US $18.75 WTI for 1999, and escalating thereafter. Current production levels from the Remboue field have declined since last reported to the level of 2,700 barrels of oil per day (2,430 company interest). As a result of this revision in reserve estimates, the Company will be taking a $16.4 million write-down of its assets in its first quarter results. Chauvco has also decided to not proceed with the previously announced special warrant financing at this time. The Company will seek to realize on the value of its Gabon assets through joint ventures on its large exploration land base of approximately 2.7 million acres (gross). Chauvco will continue to focus on promising new venture opportunities in the Middle East and the development of additional new venture projects that could add early cash flow. Tracer Petroleum Corporation (Nasdaq: TCXXF; TCXWF) announced the granting to Tracer of an exclusive option for the rights to acquire a package of oil and gas interests in Indonesia, consisting of up to three contract areas with operatorship, and containing a number of productive fields. The option allows Tracer 60 days in the case of two of the contract areas, and 30 days with ability to extend another 30 days on the third contract area, to conduct technical and legal due diligence and further terms negotiations. In return for this option, Tracer will pay a non-refundable sum of US $60,000 with a similar payment for the extension if required. The fields are in production or are near production status and either require various kinds of operational expenditure to increase production, or have only been partially developed. The interests in question are 80% and 100% on two contract areas, and 40% with possibility of up to 70% of the contractor's share on the other contract area. Currently, production is about 1,500 bopd in total, with evidence that potential exists for a substantial short and medium term increase in rates. Preliminary evaluation indicates that significant recoverable reserves remain to be produced. Further specifics regarding the contract areas, acquisition terms, and evaluated potential of the fields will be dependent on both negotiations in process and results of the technical due diligence. The Company advises the adjournment of the Annual General Meeting from May 12, 1998 to May 22, 1998. The record date of April 7 remains in effect. The meeting will be held in Vancouver with the location to be confirmed in proxy materials to be mailed in accordance with Regulations. Full Steam Ahead For Algeria's Foreign Oil Boom The nineties boom in foreign investment in Algeria's oil and gas sector is set to continue, despite political turmoil which shows no sign of relenting, oil industry consultants Wood Mackenzie said on Monday. Foreign companies such as British Petroleum (UK & Ireland: BP.L), Spain's Cepsa (CEP.MC) and France's Total (TOTF.PA) will play a key role in boosting Algeria's oil and gas production in the coming years, the Edinburgh based consultants said in a report. International firms already contribute some 80,000 barrels per day (bpd) to Algeria's oil production of around 850,000 bpd. By 2000, foreign joint ventures' share should leap to 725,000 bpd out of an expected 1.39 million bpd output rate, the report said. Since laws to encourage international participation in the oil and gas industry were introduced in 1986 and 1991, Algeria has managed to attract 44 foreign companies to its upstream industry. This was in spite of a dire political situation in Algeria which has deteriorated since the authorities in 1992 cancelled a general election that the Islamic Salvation Front was poised to win. An estimated 60,000 to 100,000 people have been killed in the violent conflict that ensued. ''The conflict has so far not affected upstream operations since the majority take place in remote isolated regions in the south of the country whilst the violence has been contained in the coastal region in the north,'' the report said. In the 1990s, foreign companies have taken up a total of 37 licences covering an acreage of 247,000 square km and have discovered 3.3 billion barrels of recoverable reserves. ''This is quite a remarkable achievement given the substantial, increasing oil and gas production over this period,'' the report said. Oil and gas exploration activity reached a new peak of 21 wells in 1997, a rate which is expected to be matched in each of the next three years, Wood Mackenzie said. Three new oil fields have already been developed by foreign explorers: the 50-75,000 barrels per day (bpd) Bir Rebaa field by Italy's Agip (ENI.MI) in a joint venture with Algerian state oil firm Sonatrach; the 20,000 bpd Rhourde Khrouf field by Cepsa (CEP.MC); and the Tamadanet field owned by Petro-Canada (PCA.TO) and Sonatrach, which started production in 1996 at 12,500 bpd. In addition, France's Total (TOTF.PA) has developed an existing gas condensate field called El Hamra, which is expected to reach plateau production if 20,000 bpd of condensate and 15,000 bpd of liquefied petroleum gas. But the real impact of foreign investment will be felt when two giant fields currently under development come on stream early in the next century. The Hassi Berkine field development, which involves U.S. Anadarko (APC), Lasmo (UK & Ireland: LSMR.L), Danish Maersk (DSACb.CO) and Sonatrach and the Qoubba field, being developed by Cepsa, Burlington (BR) and Anadarko, should together produce around 500,000 bpd of high quality light crude early in the next century. And the U.S. firm Atlantic Richfield Co (ARC), is engaged in a major enhanced oil recovery (EOR) project at the Rhourde El Baguel field which aims to boost production to 125,000 bpd by 2001. Algeria's natural gas business, which already supplies Western Europe with around one quarter of its imported gas, is also set to benefit from foreign dollars. This is thanks largely to a historic agreement signed between BP and Sonatrach in 1995 for the development of seven known gas fields in the remote Salah region, where recoverable reserves are estimated to be 7-10 trillion cubic feet of gas. The agreement covers all stages from exploration to the marketing of gas in southern Europe. First production is expected in 2002/3, with initial production of 500 million cubic feet per day expected to rise to a plateau of one billion cubic feet per day. First gas should be produced even sooner by Total and Spain's Repsol (REP.MC) in partnership with Sonatrach from the Tin Fouye Tabankort field. Production is expected to start in 1999 at around 575 million cubic feet per day of gas and 20,000 bpd of liquids. Sonatrach is also encouraging exploration activity in the remote gas regions in the southwest of Algeria, the report said.

To: Kerm Yerman who wrote (9978)	4/8/1998 10:42:00 AM
From: Kerm Yerman	Read Replies (3) \| Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING TUESDAY, APRIL 7, 1998 (1) GENERAL MARKET ACTIVITY Nortel and Newbridge lead Bay Street lower on renewed Asian fears Wall Street retreated as battered Motorola led a decline in tech stocks and banks shed gains made after merger news Monday. The Toronto Stock Exchange 300 composite index fell 66.02 points, or 0.9%, to 7579.79, its steepest slide since a 1.7% loss on Jan. 22. About 116.7 million shares changed hands on the TSE, down from 134.1 million shares traded on Monday. Northern Telecom Ltd. (ntl/tse) fell $3.30 to $85.70, Newbridge Networks Corp. (nnc/tse) slid $1.95 to $35.10 and BCE Ltd. (bce/tse), which owns 51.7% of Nortel, fell 90› to $57. "There is a lot of concern that earnings in the high-tech sector may be potentially savaged this year because of slowing exports to Asia," said Ross Healy, president of Strategic Analysis Corp. Nortel attributed 7% of sales to Asia in 1997, while Newbridge reported 18% of sales to the region. Motorola blamed Asian weakness for its earnings woes. Toronto Dominion Bank (td/tse) climbed $1.10 to $64.50, helped by comments from chairman Charles Baillie, who told the Financial Post he was more open to a merger with another Canadian bank after the Citicorp-Travelers merger news. Bank of Montreal (bmo/tse) rose $1.75 to $79.05, Canadian Imperial Bank of Commerce (cm/tse) climbed $1.05 to $51.60 and Royal Bank of Canada (ry/tse) gained 30› to $85.60. Bank of Nova Scotia (BNS/TSE) rose to a record $39.50 intraday before ending 10› lower at $38.90. Other Canadian markets fell. The Montreal Exchange portfolio fell 31.01 points, or 0.8%, to 3825.44. The Vancouver Stock Exchange fell 6.56 points, or 1%, to 637.31. U.S. stocks suffered their worst decline in a month and Canadian stocks posted their biggest one-day loss in 10 weeks, as Motorola Inc. lowered its estimate for semiconductor sales. Motorola reported an unexpected drop in its first-quarter earnings after the market closed Monday, raising concern that some of North America's biggest high-tech companies may report lower profits. "Motorola took the wind from the sails of all tech-stocks," said Conor Bill, director, private client equity trading at ScotiaMcLeod Inc. "And that caused nervousness across the board." The Dow Jones industrial average fell 76.73 points, or 0.9%, to 8956.5. On Monday, the benchmark closed above 9000 for the first time. The Standard & Poor's 500 index lost 11.84 points, or 1.1%, to 1109.55. The Nasdaq composite index fell 30.43 points, or 1.7%, to 1798.71. About 670.6 million shares changed hands on the Big Board, up from 628.4 million shares traded on Monday. Motorola (MOT/nySE) tumbled US$6 3/8, or 11%, to US$53 1/2. Intel Corp. (INTC/NASDAQ) fell US$1 1/4 to US$72 5/8 and Microsoft Corp. (msft/nasdaq) lost US$2 11/16 to US$87 1/4. Citicorp and Travelers Group Inc. lost ground, one day after their merger news sent the shares soaring. Citicorp (cci/nyse) tumbled US$16 11/16 to US$165 1/8, giving up more than a third of Monday's US$37 5/8 gain. Travelers (trv/nyse) fell US$4 5/8 to US$63 3/8, after jumping US$11 5/16 Monday. J.P. Morgan & Co. (JPM/NYSE) slipped US$4 13/16 to US$139 15/16. However, not all U.S. financial companies lost ground. Beneficial Corp. (bnl/nyse) gained US$7 7/16 to US$137 15/16 after Household International Inc. agreed to buy the company for about US$8.15 billion, or US$150 a share. Household (hi/nyse) lost US$6 to US$140 3/4. Green Tree Financial Corp. (gnt/nyse) soared US$10 to US$39 after Conseco Inc. said it would pay US$7.6 billion in stock for the mobile-home mortgage company. Conseco (cnc/nyse) dropped US$8 3/8 to US$49 3/8. Xerox Corp. (xrx/nyse) climbed to a record US$112 7/8 intraday after it said it would cut about 9000 jobs worldwide, but the stock closed down US$15/16 at US$106 13/16. Major international markets were mixed. London: British shares were lower after four consecutive record highs. The FT-SE 100 index lost 11.8 points, or 0.2%, to 6094. Frankfurt: The Dax index rose 85.4 points, or 1.6%, to 5357.05. Tokyo: Japanese shares rose on expectations that the government may make bold moves to revive the economy. The 225-share Nikkei average climbed 272.73 points, or 1.7%, to 15,978.72. Hong Kong: The Hang Seng index lost 3.25 points to close at 11,049.43. Sydney: Australian stocks failed to hold on to intraday record highs. The all ordinaries index lost 0.8 of a point to close at 2794.8. OIL & GAS No Quick Respite For OPEC From Oil Price Pain LONDON, April 7 - OPEC producers faced further disappointment on Tuesday as oil markets took another bite from price gains established in the wake of the Riyadh accord. Benchmark Brent blend for May loading lost 17 cents a barrel by 1600 GMT to trade at $13.70 a barrel. The crude has slumped quickly from a recent peak of $15.82 in the week after the end-March announcement that producers were clubbing together in a bid to erase unwanted supplies from a glutted market. Producers have seen Brent average a disastrous $4.50 a barrel less so far this year than in 1997, cutting export earnings for OPEC member countries by some $8 billion in the first quarter of 1998. Dealers blame uncertainty over the likely impact of the oil producers' pact which on paper should extract 1.5 million barrels a day (bpd) from the 75 million barrel daily world market. Traders have still to see firm evidence of the reductions which came into effect on April 1, led by a 1.25 million bpd reduction by Organisation of the Petroleum Exporting Countries members. ''There's still some suspicion about exactly how it will be done by individual countries and for the time being storage tanks remain bung full,'' said a trader in London. ''The market is pretty weak because basically, there is too much crude out there and this is creating pressure,'' said Jim Ritterbusch at Chicago's Sweeney Oil. Oil exporters outside the cartel have pledged an additional 400,000 bpd of cuts led by Mexico and Norway and helped by surprise cooperation from China announced on Friday. Signs that competition among the world's biggest oil exporters remains tough came on Tuesday from Saudi Arabia's announcement of another round of price cuts to its key U.S. customers. The battle for market share between Saudi Arabia and its Latin American rivals has taken Saudi discounts versus benchmark grades to record levels for U.S. refinery buyers. Rising UN-monitored Iraqi oil exports also are counteracting the impact of the Riyadh cuts. Baghdad exported an average of 1.31 million bpd in March, up 200,000 bpd from February. Shippers say April exports are expected to top 1.4 million bpd for record post-Gulf War supplies from the sanctions-bound Middle East producer. NYMEX Crude, Products End Lower Ahead Of APIs NEW YORK, April 7 - NYMEX crude futures chalked up more losses on Tuesday as traders paused to get a sense of direction from the American Petroleum Institute's weekly inventory data. Weakness in crude futures that began Monday continued throughout the day and the effects spilled over to refined products. May crude settled at $15.22 a barrel, down 23 cents, trading off the day's low of $15.17 as traders fretted over the lack of news from producers who pledged to cut their output as a way to boost prices. Heating oil for May delivery settled at 42.46 cents a gallon, off 0.37 cent while prompt gasoline lost 0.17 cent at 49.58 cents a gallon. The crude oversupply remained the main concern of traders and analysts, who kept harping at the need for more evidence from producers to show that those countries are indeed adhering to their promise to cut their outputs. ''But these promises of cuts takes time to manifest themselves in the system,'' said ARB Oil's Gerald Samuels, who appeared resigned to the market moving sideways for some time. There have been no ''real news'' and ''fresh fundamentals'' coming into play, accounting for the market's drifting lower in the past two days, Samuels said. ''The market may drop further if API's figures are bearish,'' he added, noting that analysts see the market heading at the $14.80-$15.00 range. As for gasoline, which in previous years seasonally led the market at this time, ''we have not seen good demand,'' thus far, he said, as the summer driving season is still a few months away. "This makes the market vulnerable at this time," he said. Other traders agree that the market may be headed down some more before it finds any opportunity to rally, unless some positive, significant fundamental news develops. ''We feel the market is near the bottom, but we don't think it is reaching for new lows,'' said Sam Weaver, a trader for Atlanta-based GSC Energy. ''The market may have a little bit more to go downside, before it hits support levels,'' he said. A poll showed that analysts and traders forecast a build of 2.0 million barrels in crude in the API data for the week ending April 3. The poll also showed draws of 1.0 million barrels and 2.0 million barrels in distillates and gasoline, respectively. It also shows a consensus of 0.4 percent rise in refinery utilization. NYMEX crude peaked at $23.15 in early October but has fallen since then following OPEC's increase in its official production quota by 10 percent to 27.5 million barrels per day, the weakening of demand from troubled Asian economies, the mild winter in the western hemisphere and increases in oil exports from Iraq. Three weeks ago, NYMEX crude hit a nine-year low of $12.80, prompting oil producers led by Saudi Arabia, Venezuela and non-OPEC member Mexico to craft an agreement to cut oil production by 1.5 million barrels per day. US Cash Crudes - Light Louisiana Sweet Weakens NEW YORK, April 7 - U.S. cash crudes continued their slow price slide on Tuesday as traders spoke of an oversupplied domestic crude oil market. And there's little chance of a quick rebound because high volumes of foreign crude coming into the U.S. Gulf Coast, traders and brokers said. Light Louisiana Sweet/St. James on Tuesday slipped to less than 70 cents below West Texas Intermediate/Cushing. LLS began the day trading at 69 cents below WTI/Cushing but then pushed to 70, 71 and finally 72 cents below the U.S. cash crude benchmark WTI/Cushing. Some traders blamed lower LLS differentials on the weakness of Dated Brent. Dated Brent for delivery April 13-15 was done on Tuesday at $1.00 below the May Brent futures contract. This was eight cents weaker than the last cash Brent deal done on Friday. ''With Dated Brent at a dollar under, that's going to push down the domestic grades,'' said a Houston-based trader. On Tuesday afternoon, the American Petroleum Institute reported that U.S. crude stocks fell 415,000 barrels for the week ending April 3. Immediate reaction from analysts was that the statistics will have little impact on the crude oil futures market. However, before the statistics were released, traders had been told to expect a two-million-barrel build in crude oil stocks, not a 0.4-million-barrel decrease. At 1735 EST/2235 GMT, the NYMEX access trading showed front-month crude up 12 cents to $15.34 per barrel. The NYMEX May crude contract closed Tuesday down 23 cents to $15.22 per barrel. With the exchange-for-physicals (EFP) premium added for those who wish to be assurred of domestic crude deliveries, WTI/Cushing was talked in a range of $15.30 to $15.35 after the close of NYMEX. EFPs were talked at a eight- to 10-cent premium. The May/June spread widened to about 35 cents, which caused WTI/Cushing postings-plus to come in a couple of cents. Postings-plus was done Tuesday at WTI/Cushing plus $1.96 and $1.97. West Texas Sour/Midland remained weak, but differentials were unchanged. Traders and brokers said there is simply too much sour crude on the market for WTS to firm. WTS/Midland was done Tuesday at WTI/Cushing minus $2.34 and $2.32. June-delivery WTS/Midland was done at WTI/Cushing -$2.14 and -$2.13. On the back of WTS weakness, Heavy Louisiana Sweet/Empire lost about four cents in differentials to WTI/Cushing minus $1.29/-$1.24. HLS was reported done at -$1.28/-$1.27. West Texas Intermediate/Midland was unchanged and talked at a -39 cents bid and a -37 cents offer. It was done often on Tuesday at -38 cents. Offshore sour crude Eugene Island was at -$2.14/-2.09 to WTI/Cushing and done at -$2.13 and -$2.12. NYMEX Natural Gas Ends Up Sharply, Most Hit New Highs NEW YORK, April 7 - NYMEX Hub natural gas futures ended up sharply Tuesday in an active session, with technical buying and short covering driving most months to new highs despite a lagging cash market, industry sources said. May rallied 13.3 cents to close at $2.668 per million British thermal units after setting a new contract high of $2.675. June, which also hit a new benchmark of $2.695, settled 12.8 cents higher at $2.694. Other months ended up 5.5 to 11.9 cents, with most also hitting new highs. ''You've got to shake your head, but when they couldn't take it down early, the locals bought it and then the shorts started to cover,'' said one Midwest trader, noting buy stops were hit when May broke above its previous contract high of $2.605. Despite the mild weather this week and ample storage, traders said bullish technicals and concerns about dwindling coal stocks ahead of the peak-demand, summer air conditioning season should limit pullbacks for a while. Estimates for Wednesday's weekly AGA gas storage report range from a draw of 12 bcf to a build of 50 bcf. For the same week last year, stocks gained 21 bcf. Overall stocks are still 175 bcf, or 21 percent, above year-ago. Forecasts this week still call for slightly below-normal temperatures in the East before moderating to normal or slightly above by early next week. Texas is expected to remain several degrees F above normal for the period, while the Midcontinent should warm from slightly below normal to as much as 15 degrees above later in the week. On the technical side, traders said May's strong close today will likely lead to another leg up, possibly to the low-$2.80s, despite an overbought RSI near 80. Resistance was now seen at today's high of $2.675, which also roughly corresponds to a measurement objective from the previous leg up. Further selling should emerge at $2.812, a prominent spot continuation high from December. Interim May support lies at $2.605 and $2.46, both previous contract highs, with further support seen at the $2.33 double bottom. Major buying was expected at the $2.135 recent low. In the cash Tuesday, Gulf Coast swing quotes slipped a few cents early, then climbed a penny or so later to about the $2.50 level. Midcon pipes mostly held steady in the high-$2.30s. Chicago city gate gas firmed two cents to the high-$2.50s, while New York was down three cents to the low-$2.70s. The NYMEX 12-month Henry Hub strip jumped 9.8 cents to $2.703. NYMEX estimated volumes were not available at 1615 EDT, but total trade was in excess of 74,000 lots, up sharply from Monday's revised tally of 30,402. NYMEX will be closed Friday for the Good Friday holiday. US Spot Natural Gas Prices Remain Firm In Active Trade NEW YORK, April 7 - U.S. spot natural gas prices lingered in recent ranges Tuesday, with some higher-priced deals surfacing late in conjunction with a futures rally, traders said. Henry Hub swing gas traded at $2.47-2.54, little changed from $2.49-2.52 on Monday. NYMEX's May contract, however, was stretched 13 cents higher to a new level at $2.665. In the Midcontinent, prices also remained steady at $2.38-2.39, with Chicago city-gate values seen a little firmer in the high-$2.50s. In the West, where temperatures still hovered below normal, southern California border prices eased one cent to $2.47-2.49. Permian Basin prices were also a tad lower at $2.27-2.28, while San Juan prices were talked mostly at $2.16. In the Northeast, New York city-gate prices retreated a few cents to about $2.73, while Appalachian values on Columbia were quoted again at $2.65. Adding more supply to the Northeast market was the return of some nuclear generation. GPU Nuclear's 620 MW Oyster Creek unit, shut Sunday while in the process of restarting from a maintenance outage, was beginning to restart again this morning. But remaining off line was PP&L Resources' 1,094 MW Susquehanna 2 unit, which was shut Sunday to repair a leak. The unit is expected to return to service later this week. Also, PECO Energy's 1,055 MW Limerick 1 unit in Pennsylvania and Baltimore Gas & Electric's 850 MW Calvert Cliffs unit 1 in Maryland were both off line for refueling. Forecasts are calling for slightly below-normal temperatures in the East through this week before moderating to slightly above normal by Monday. Cooler-than-normal weather is also continuing in the West, while above-normal temperatures are expected to cover most of the southern plains and parts of the Midwest into next week. Separately, estimates for tomorrow's American Gas Association storage report were a draw of 12 bcf to a build of 28 bcf. Canada Spot Natural Gas Still Supported By Tight Supply NEW YORK, April 7 - Canadian spot natural gas prices firmed in Alberta but softened at the export points, industry sources said Tuesday. Spot gas at the AECO storage hub in Alberta was quoted at C$2.22-2.24 per gigajoule (GJ) from about C$2.19-2.20 on Monday. Winter business was also reported done higher at C$2.68 from Monday's quotes at C$2.57-2.60, while one-year prices moved up to about C$2.40 per GJ. About 150 million cubic feet per day (mmcfd) of gas was injected into western storage on Monday following a few days of withdrawals, one Calgary-based trader said. Also leading forward markets higher, traders said, was news that NOVA Gas Transmission may be short supply this summer by about 400-500 million cubic feet per day. In the export markets, prices at Sumas, Wash., slipped two cents to about US$1.78-1.80 per million British thermal units (mmBtu). In the east, Niagara prices also softened by about one cent to US$2.64-2.65 per mmBtu in tandem with weaker New York city-gate values.

To: Kerm Yerman who wrote (9978)	4/8/1998 11:00:00 AM
From: Kerm Yerman	Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING TUESDAY, APRIL 7, 1998 (2) TOP STORIES Supply Levels Keep Oil Values Down Global oil values continue to show bearish trends off healthy supply levels around the world. Several market reports have confirmed last week's FUEL.TXT forecast of limited price movement in reaction to OPEC / NON-OPEC production cuts. Although China and Indonesia recently acknowledged they, too, will cut oil output, global supply still remains a driving factor keeping prices at extremely low levels. Analysts remark that long term price support will not come without additional supply cuts around the world. Statistics confirm that we continue to accommodate healthy supply levels, and traders affirm there is no shortage of April (nor any near/future months) supplies. Recent increases in petroleum prices have all but stagnated in a week's time. NYMEX crude oil futures are available in the $15.50 bbl range as traders fight weaker futures values and lack of fresh fundamental news. Analysts support the predication that current global production cuts would not substantiate a long-term increase in commodity values or consumer product prices. NYMEX heating oil remains low, supporting a 43 cents per gallon bottom and resisting a 43.50 cents per gallon top. HEAT will continue downward as we move into a seasonally weaker part of the year. Spot diesel continues to respond to regional fundamentals across the United States. West Coast cash product is hard hit by probable refinery difficulties and has spiked another 425 points on the week; L.A. Basin spot average is 57.75 cents per gallon (Source: DOE). Unlike trends along the West Coast, cash values have declined across the Midwest, Northeast and significantly throughout the Gulf Coast. Gulf Coast distillate inventory experienced healthy gains on the week, reporting the largest increases and current stock holdings since December of last year. Rack prices dropped slightly on the week under lack of technical and fundamental strength, currently at 49.67 cents per gallon nationally. As the U.S. continues to fight the balance between supply and demand, retail diesel prices survive at lower-than-normal levels. The national retail diesel average is $1.0514 per gallon, up only 17 points on the week. Analysts feel current economics will hold pump prices down throughout the summer season. Look for prices to stabilize under high stock inventories and lack of technical strength. The oil complex as a whole is expected to ride this bearish trend as we move into a seasonally weaker part of the year. Natural Gas Surges on Warm Weather Worries Natural gas futures prices jumped to four-month highs Tuesday as investors bet there will be an unusually warm spring and summer that will boost energy demands. Natural gas futures price recently have been rebounding from lows when above normal temperatures this winter cooled heating demand. Natural Gas also is used to power generators at utilities for air conditioning demand. Some forecasters are predicting that much of the Atlantic seaboard will see above normal temperatures this spring and summer as a result of the El Nino weather phenomenon that has caused unusual weather across the world. Analysts also said low coal stockpiles in Texas could boost natural gas consumption. Further, predictions of increased hurricane activity also could affect production in the Gulf of Mexico. Investors expected the trade group American Gas Association to report after trading ends Wednesday that gas in storage already is beginning to decline on warmer weather in late February and March. Natural gas futures for May delivery at Henry Hub, La., rose 13.3 cents, or 5.2 percent, to $2.668 for each 1,000 cubic feet. That was the highest price on the New York Mercantile Exchange since Dec. 3. Q1 To Favour Gas In Independents Earnings First quarter 1998 earnings will magnify the relative strength in natural gas prices versus crude oil for independent exploration and production companies, Gerard Klauer Mattison said in a research report. Henry Hub natural gas prices averaged $2.17 per million British thermal units, down 13 percent from the year ago quarter, while West Texas Intermediate crude oil averaged $15.93 barrel in the quarter, down 31 percent from a year ago. "We believe this is indicative of continuing strong supply/demand fundamentals for U.S. natural gas," analysts Robert Christensen and Benjamin Shyman said. Natural gas-sensitive names include Swift Energy Co with 87 percent natural gas in 1998 production, Coastal Corp , 83 percent gas, Sonat Inc , 80 percent gas, Burlington Resources Inc 76 percent, Enron Oil & Gas Co , 85 percent, and Consolidated Natural Gas Co 77 percent. Conversely, companies with the most crude oil in their hydrocarbon mix could offer the worst quarterly comparisons. Pioneer Natural Resources Co has 52 percent oil, Apache Corp 43 percent, Devon Energy Corp 41 percent, Anadarko Petroleum Corp 38 percent, Pogo Producing Co 37 percent, Seagull Energy Corp , 29 percent, Questar 27 percent and Western Gas Resources Inc with its large natural gas liquids. "Safer haven energy stocks, such as integrated pipelines with diversification (pipelines, energy marketing, gas distribution and refining) could generate earnings surprises. Integrated pipeline stocks, all of which we believe can beat 1Q98 consensus estimates include: buy-rated Coastal and Enron," the analysts said. Mobil Oil Canada & Compton Petroleum In Joint Venture Covering 250,000 Acres Mobil Oil Canada (''Mobil'') and Compton Petroleum Corporation (''Compton'') announced that they have entered into an 11 township (250,000 acre) Area of Mutual Interest (''AMI'') and Joint Venture to explore for and produce natural gas in the High River / Mazeppa / Nanton area of southern Alberta. The resulting production from the AMI will be processed at Compton's Mazeppa area gas plants. ''The joint venture with Compton will accelerate development of Mobil's significant acreage holdings south of High River, and will contribute to Mobil's overall growth in western Canada'' noted Mark Ward, Mobil's Vice President of Western Canadian Development and Production. ''This alliance with Compton will add to the assets available for exploration and result in highly efficient area development. The processing arrangements will enhance revenue for both parties and facilitate production growth in the region.'' "This agreement further expands Compton's existing large land and seismic base in its core Mazeppa / Nanton area'' stated Ernie Sapieha, President of Compton. ''The Mobil Agreement provides Compton with a strong and aggressive partner in Mobil and immediate access to 155 sections of high quality lands and drilling opportunities. Combined with our existing lands and the recently announced 14 township PanCanadian Exploration Agreement, Compton has accumulated a land position covering 32 townships and providing immediate access to 650 sections of land in southern Alberta. The Company plans an extensive long-term drilling program in the area which is characterized by multi-zone, liquids rich gas reserves.'' Sapieha further commented that the dedication of land and production under the Mobil and PanCanadian agreements significantly enhances the importance of Compton's natural gas processing facilities in the Mazeppa area. Engineering has commenced to expand the capacity of these facilities from 90 to 125 mmcf per day. ''The combination of such a large land and seismic base, strong industry partners, a modern processing infrastructure and a skilled professional team positions Compton for significant growth'', said Sapieha. Mobil Oil Canada is one of the nation's largest and most successful oil and gas exploration and production companies. Mobil has operated in Canada for more than 55 years and has become a major contributor to Canada's energy self-sufficiency. Mobil's headquarters are located in Calgary, Alberta with field operations in British Columbia, Saskatchewan and Alberta. Mobil Oil Canada is a wholly owned subsidiary of Mobil Corporation of Fairfax, Virginia. Compton Petroleum Corporation is a Calgary based company with natural gas and liquids reserves in excess of 200 BCF equivalent. It is actively engaged in the exploration, development and production of natural gas, natural gas liquids and crude oil in western Canada. Compton's common shares trade on The Toronto Stock Exchange under the trading symbol ''CMT''. Enercap Corp. Completes Acquisition Enercap Corporation announces that it has recently completed a $15 million acquisition of gas processing and transportation facilities from an intermediate oil and gas producer. After 12 years the producer has an option to repurchase the facilities which it will continue to manage together with other owners. Enercap operates as a specialist financier of oil and gas processing and transportation facilities. Its acquisitions are structured to allow oil and gas producers to monetize their facility investments without sacrificing upside potential or disrupting existing operating arrangements. The transactions are typically off-balance sheet for a facility vendor. Enercap has now invested almost $30 million in facilities acquired from several oil and gas producers. Oilsands Companies Look For Specific Skills When Hiring Fort McMurray Today Where there's oilsands activity and expansion, you can bet a resum‚ trail will follow. Suncor Energy's Fort McMurray office receives an average of 50 resum‚s per day, not to mention a multitude of telephone inquiries from job hunters. Resum‚s from applicants span the globe from local residents to as far away as South Africa. Suncor spokeswoman Brenda Erskine said the oilsands plant currently has about 100 vacancies ranging from heavy duty mechanics to engineers. Most are existing positions and opened when many senior staff moved to work in Suncor's Steepbank Mine expansion project. While resum‚s for vacant jobs are welcome, Erskine said Suncor said the company discourages people from sending unsolicited resum‚s. Hiring for Suncor's $2.2-billion Project Millennium expansion which will double production at the oilsands plant won't take place until 2002. Syncrude Canada also receives plenty of resum‚s and inquiries from job hunters. Company spokesman Peter Marshall declined to say how many the oilsand giant receives because that might raise expectations that jobs are available today when they aren't "It's fair to say like other large companies in Alberta we receive a lot of unsolicited resum‚s and those are certainly looked at," he said. Marshall said people interested in landing jobs in the oilsands industry should do their research and have the trade skills or the profession needed by McMurray businesses. Many of Syncrude's new hires are grads from university, college and technical institutions, he said, adding the days when people just showed up and found a job are gone. "Other than that, the best signals are when we are actually advertising in the newspapers and when we are looking for specific skills or professions with experience," said Marshall. Last Summer Syncrude launched a national recruitment campaign for experienced engineers in response to the company's staged expansion with the North mine, a second debottleneck and the first stage of the Aurora mine. With Syncrude's planned $6-billion expansion Marshall said it's a given the plant will be hiring "more frequently" but that doesn't mean the jobs are open now. People will be disappointed if they arrive looking expecting to find jobs because that hiring hasn't begun, he added. One company collecting resum‚s in anticipation of hiring -- starting in 2001 and beyond -- is Shell Canada. Shell is currently proposing to build a $1-billion oilsand mine andextraction plant north of Syncrude. If approval is granted, mine construction could begin in mid-1999. "We have about 500 resum‚s in our database at this time," said Shell spokeswoman Tara Black. She said Shell responds to every resum‚ it receives because the company is aware of the potential for a job skill crunch. About 800 temporary jobs will be created during construction of the oilsand mine and extraction plant. Construction requirements will peak with up to 1,300 people on site. Start-up of the mine and extraction plant won't begin until 2002 and will require 800 permanent employees. Help Wanted: Students To Get The Lowdown On Oilsands Jobs, Fort McMurray Today One of the toughest battles high school students face is deciding what careers to go after, but one piece of that puzzle may soon fall into place, thanks to the regional infrastructure working group. The group will soon publish a list of the types and numbers of jobs that will be needed in the oilsands industry in the coming expansion years, regional co-ordinator Bill Almdal told the Catholic school board Monday. "We have identified the names of jobs that will be available and the number that will be available. We want to start talking to students about it, as young as grades 6 and 7," he told trustees in a presentation to the board. His group, consisting of oilsands developers in the region and representatives from Alberta Energy and the municipality, will have the job report finished in the next month or so. Almdal pointed out the figures won't be 100 per cent accurate because the companies could fill some positions from within, leaving different jobs open to newcomers than the report will contain. Board chairman Terry Langis expressed concern that McMurray youngsters might get training, then be forced to leave town when construction is finished because there aren't enough permanent jobs to go around. "You have to understand there's a whole raft of people who go from construction job to construction job," Almdal replied. He also pointed out the population of McMurray is aging and many people now working at Syncrude Canada and Suncor Energy will be retiring by the time construction is finished. Not to mention the new jobs that will be created by expanding the existing plants and building new ones. Trustees wondered if the sagging oil price could derail the energy companies' plans, but Almdal said he doubted it. Interest rates are still low and the demand for oil is expected to rise considerably in coming years. "There are many things in the marketplace that are right. They want to move faster, not slow down," he said. Plexus Energy, Peregrine Oil and Gas Ltd. and A.C. Energy Ltd. Reports Success In Oklahoma The companies jointly announce the completion of an exploration well drilled on the Madden prospect in Oklahoma as an oil well. The well follows a 3-D seismic survey that identified a Wilcox Sand structure. Within the Wilcox Formation, the well log calculations give oil pay thickness estimated at 10 feet in the 1st Bromide, 19 feet Upper Tulip Creek, 18 feet in the Lower Tulip Creek and 8 feet in the McLish, for a total of 55 feet of oil pay. The lowest zone, the McLish sand has been production (swab) tested through perforations at a rate of 145 barrel of 36 degree API sweet crude oil per day. The well will be placed on production immediately upon completion of surface facility installations. Following good production practices, the oil reservoirs will be produced starting at the lower zone first, the McLish at 8923 ft., then progressively high to the upper most sand being the 1st Bromide at 8460 ft. Peregrine, Plexus and A.C. Energy are junior oil and gas companies listed on the Alberta Stock Exchange with shares trading under the symbols "PGG", "PXU", and "ACE" respectively. Peregrine has a 43.75 percent working interest, Plexus Energy Ltd. has 43.75 percent and A.C. Energy Ltd. has the remaining 12.5 percent in the play.