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

To: Arnie who wrote (10185)	4/20/1998 10:05:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Real Resources 1997 Results REAL RESOURCES INC. CALGARY, April 17 /CNW/ - Real Resources Inc. (''RER'' - TSE) is pleased to announce its operating and financial results for the year ended December 31, 1997. HIGHLIGHTS ($ thousands, except per share data) 1997 1996 % Change ---------------------------------------------------------------------- Net revenue 3,367 2,594 30 Funds from operations 1,423 1,545 (8) Per share (basic) 0.10 0.13 (23) Per share (fully diluted) 0.10 0.13 (23) Net earnings 30 604 (95) Per share (basic) Nil 0.05 Per share (fully diluted) Nil 0.05 Capital expenditures 4,725 3,488 35 Business acquisitions 18,816 - Long term debt 4,125 Nil Shareholders' equity 23,170 6,612 250 Common shares outstanding (thousands) Basic 32,542 13,031 150 Fully Diluted 33,922 14,271 138 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Production Natural gas (mcf/d) 665 852 (22) Crude oil and NGLs (bbl/d) 357 223 60 Barrels of oil equivelant (boe/d) 424 308 38 Prices Natural gas ($/mcf) 1.54 1.03 50 Crude oil and NGLs ($/bbl) 25.47 28.48 (11) Reserves Natural gas (bcf) Proved 2.2 4.5 (51) Proved plus probable 2.8 5.0 (44) Crude oil and NGLs (mmbbls) Proved 2.9 0.5 480 Proved plus probable 4.3 0.6 617 Land holdings Gross acres (thousands) 151 63 140 Net acres (thousands) 64 31 106 Wells drilled (working interest) Gross 13 12 8 Net 5.0 4.1 22 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Two corporate acquisitions were completed in 1997. The purchase of Flatland Resources Ltd. in January added a new focus area for Real in southeast Saskatchewan, which included 220 barrels per day of light medium oil and 13,041 gross (7,000 net) acres of undeveloped land. The second transaction, which occurred in December, was the purchase of Tri-Ex Oil & Gas Ltd. This purchase added another focus area for Real in east central Alberta which brought 1,100 barrels per day of medium oil production plus 39,965 gross (20,991 net), acres of undeveloped land. These two deals had the effect of increasing the size of the Company by a factor of five. Real now has a critical mass in which to survive and grow in an environment subject to tremendous volatility in oil and gas commodity prices and in oil and gas equity markets. Petroleum and natural gas revenue increased to $3,707,818 from $2,788,035 in 1996. This 33% increase in revenue resulted from higher production volumes. Net earnings decreased to $29,835 from $604,372 in 1996. Net earnings per basic and fully diluted share decreased to $0.00 from $0.05 in 1996. Cash flow from operations decreased 8% to $1,423,437 from the 1996 amount of $1,544,805. Cash flow from operations per basic and fully diluted share decreased to $0.10 from $0.13 in 1996. Oil production climbed 60% to 357 bbl/d in 1997 from 223 bbl/d in 1996. The increase in oil production was directly attributable to the acquisition of Flatland Energy Inc. and production from new wells drilled during the year. Natural gas production decreased 22% to 665 mcf/d from 852 mcf/d in 1996. This decrease was due to the Company's gas well at Little Bow being suspended. The average oil price received by the Company was $25.47 per barrel, an 11% decrease from the $28.49 received in 1996. Strengthening natural gas prices boosted the Company's average gas price 50% to $1.54 per mcf in 1997 from $1.03 in 1996. Real had its most active drilling program in its history, drilling a total of 13 (5.0 net) wells in 1997 which resulted in 6 (2.5 net) successful oil wells, 1 (0.5 net) service well and 6 (2.0 net) dry holes. In addition, 4 royalty interest wells were drilled at no cost to the Company. The Annual General and Special Meeting of shareholders will be held at 3:00 p.m. (Calgary time) on May 21, 1998 at the Selkirk Conference Centre, 2nd Floor, 555 - 4th Avenue S.W., Calgary, Alberta.

To: Arnie who wrote (10185)	4/20/1998 6:30:00 PM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Canadian Crude Separators New Facility CANADIAN CRUDE SEPARATORS INC. ANNOUNCES SOD TURNING FOR MAINTENANCE BUILDING IN THE ACHESON INDUSTRIAL PARK 1998-04-17 CALGARY, ALBERTA Canadian Crude Separators Inc. (CCS) today announced that they intend to construct a 15,000 square foot maintenance shop and office complex at the Acheson Industrial Park. The facility, located in the County of Parkland, is designed to accommodate the overhaul of up to three well servicing rigs at any one time. The building incorporates 10,000 square feet of shop area and a 5,000 square foot office complex. Being handled on a design-build basis by Bro Max Builders Ltd, the project is estimated to cost 1.3 million dollars. This project will provide local construction jobs while being built, as well as provide long term employment for over 10 people in the Edmonton area. Alec McDougall CCS President and COO noted this is a strategic extension of Concord Well Servicing's preventative maintenance program. Mr. McDougall stated "that the facility will enable the planned and expeditious overhaul of the nineteen service rigs increasing customer availability to the well servicing fleet. In the past, it has taken up to 120 days to overhaul our service rigs. By controlling the work schedule, we expect to reduce the turn around time on the major refits to 45 days, a significant improvement. The addition of the maintenance facility and the efficiency it brings to the CCS's existing operations will have a significant impact on the company's cash flow and profitability." CCS is a publicly traded (TSE-CCR, ASE-CCR) Calgary-based oil & gas industry service company in service since 1984. CCS has grown to include eleven oilfield treatment and disposal facilities in Western Canada and a fleet of nineteen service rigs which operate under the name Concord Well Servicing.