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

To: Kerm Yerman who wrote (10195)	4/18/1998 6:07:00 AM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Richland Announces New Pool Oil Discovery TSE, ASE SYMBOL: RLP.A APRIL 17, 1998 CALGARY, ALBERTA - April 17, 1998 - Richland Petroleum Corporation today announced its participation in a new pool oil discovery at McLean Creek, in northwestern Alberta. The Newport operated well at 5-18-75-22 W6M (Richland 50 percent) has been cased as a potential light oil discovery. Richland has a 50 percent working interest until payout, reverting to a 25 percent working interest after payout. Richland has also earned a 25 percent working interest in 4,000 acres of undeveloped land adjacent to the discovery. At the April 15, 1998 Crown Land Sale, Richland acquired a 50 percent working interest in approximately 11,000 acres of additional land, bringing our undeveloped land position on the prospect to a total of 15,000 acres. Plans are underway to shoot an extensive 3-D seismic program to delineate the discovery and to identify additional potential on our lands Update on Recent Discoveries At Huntoon, in southeastern Saskatchewan, Richland's recent Red River discovery well is now on production at controlled rates of 200 to 300 bbl/day. As soon as access is permitted, the plan is to acid stimulate the well to increase production above current rates. Richland has a 50 percent working interest in the pool. At Kingsford, Richland plans to spud its Midale horizontal development well (100 percent working interest) early next week. The anticipated production rate is 250 to 300 bbls/day stabilized. Upon completion of the Kingsford well, the rig will move to Bienfait to drill the first of five potential dual leg horizontal development wells targeting the Midale Marley and Vuggy zones. Other High Impact Exploration At East Lost Hills, in central California, an 18,600 foot test well in the San Joaquin basin is expected to spud in late April, 1998. Drilling to the Temblor formation, the pool has reserve potential of greater than 500 million barrels. Richland has a 5 percent working interest in this high impact exploratory prospect. In southeastern Saskatchewan, Richland is participating for a 50 percent working interest in a multi-zone 2,800 meter test at Hardy, which will spud in the third week of April, 1998. Drilling is expected to last approximately 35 days. Richland Petroleum Corporation is a public company involved in the exploration and development of crude oil and natural gas in western Canada and the United States. Its shares trade on the Alberta and Toronto Stock Exchanges under the symbol "RLP.A".

To: Kerm Yerman who wrote (10195)	4/18/1998 6:09:00 AM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / Seventh Energy - Financial and Operating Results TSE SYMBOL: SEV.A ASE SYMBOL: SEV.B APRIL 17, 1998 CALGARY, ALBERTA--Seventh Energy announces its financial and operating results for the quarter and five months ending December 31, 1997. From January 1, 1997 until July 31, 1997, Seventh was on a pre-production accounting basis. On August 1, 1997 Seventh merged with Westward Energy Ltd and commenced commercial production. Operating and financial results for Seventh do not account for Westward activities before the merger date. /T/ HIGHLIGHTS Three Months ended Five Months ended Financial ($) December 31, 1997 December 31, 1997 ------------------ ----------------- Petroleum and natural gas sales 1,166,954 1,824,181 Funds from operations 679,240 1,047,797 per Class A share (basic) 0.09 0.15 per Class A share (fully diluted) 0.08 0.13 Net income 237,997 266,346 per Class A share (basic) 0.03 0.04 per Class A share (fully diluted) 0.03 0.04 Long term debt 4,368,793 4,368,793 Working capital deficit 4,329,966 4,329,966 Capital expenditures 9,691,907 26,370,581 Class A shares outstanding weighted average 7,166,521 7,166,521 basic (includes conversion of Exchange Rights) 10,859,237 10,859,237 fully diluted 11,823,237 11,823,237 Operating Oil production Barrels 53,708 82,567 Barrels per day 583 539 Average selling price $ 19.18 $ 19.13 Gas production Thousand cubic feet 70,556 90,735 Thousand cubic feet per day 596 772 Average selling price $ 1.76 $ 1.60 /T/ OPERATING AND FINANCIAL Seventh drilled 20 wells during 1997, resulting in 10 oil wells, 1 gas well, 1 service well and 8 dry and abandoned, for an overall success rate of 55 percent. Average working interest was 73 percent, and Seventh was operator of 80 percent of the wells drilled. Capital expenditures included $12,833,493 for the purchase of Westward Energy, $3,792,856 for producing property acquisitions, and $9,744,232 on exploration and development costs, for a total of $26,370,581. Year end proven and probable reserves totaled 3,289,000 barrels of crude oil and 4.73 billion cubic feet of natural gas, or a total of 3,762,000 barrels of oil equivalent. Reserve replacement costs on a per barrel of oil equivalent basis were $7.94 for the Westward acquisition and $5.91 for the property acquisition and exploration and development program, for an overall average of $6.75. Year end reserve life based on the December, 1997 production rate of 752 barrels of oil equivalent per day was 9.4 years based on proven reserves and 13.7 years based on proven plus probable reserves. Approximately 90 percent of Seventh's 1997 production (on a 10:1 equivalent basis) was crude oil, averaging 28 degrees API gravity. At year end, Seventh held an average 58 percent working interest in 126,400 gross undeveloped acres of land. Corporate netbacks, computed on a barrel of oil equivalent basis, were as follows: /T/ Three Five Months Months Sales price $ 19.22 $ 18.94 Royalties (2.00) (2.01) Operating expenses (6.10) (5.49) ARTC 0.85 0.75 -------- --------- Netback $ 11.97 $ 12.19 -------- --------- -------- --------- /T/ CORPORATE At year end 1997, the sum of Seventh's long term debt of $4,368,793 and working capital deficiency of $4,329,966 amounted to $8,698,759. This total exceeded our bank line of credit by $3,198,759 and created a serious negative short term financial situation for the Company. The overage was for the most part unexpected and was due to a combination of year end cost overruns on our drilling program, and a re-evaluation of the actual working capital position arising from non-capital costs (employee severance and dissenting shareholder buybacks) associated with the Westward merger. To reduce the working capital deficiency, the Company has entered into agreements to sell non-operated oil producing properties at Gift and Grand Forks for total proceeds of $1,940,000. These transactions will both be completed by May 15, 1998. Further asset dispositions are being considered to reduce the overall indebtedness to within our bank line of credit. The potential reduction in operating revenue due to producing property dispositions will be partially offset by increased production from two existing Arcs member oilwells at Hays, which should receive good production practice during the second quarter, and through the tie in of our one remaining 30 percent working interest Gilwood oil well at Gift. Although it is crude oil, Seventh has a long life reserve base and individual well decline rates this year are anticipated to be minimal. Seventh also has a current inventory of 12 development and 9 exploration locations on Company lands and we are currently analyzing several joint venture structures to exploit this potential. Current production after allowing for the above two property sales is averaging 700 barrels of oil equivalent per day. Based on the above, Seventh has revised its production and revenue forecasts. The new forecasts for 1998 are to average 800 barrels of oil equivalent per day, and, based on WTI averaging $US17.00 for the rest of the year, reported cash flow is projected to be $2,000,000 or $0.17 per share fully diluted. /T/ CONDENSED FINANCIAL STATEMENTS Balance Sheet as at December 31, 1997 Current assets $ 2,441,692 Investment 416,823 Capital 23,613,893 ------------ 26,472,408 ------------ ------------ Current liabilities 6,771,658 Long term debt 4,368,793 Site restoration & abandonment 45,720 Deferred tax 660,388 Shareholders equity 14,625,849 ------------ $ 26,472,408 ------------ ------------ Income Statement - period ended December 31, 1997 Three months Five months ------------ ----------- Revenue $ 1,259,254 $ 1,870,757 ------------ ------------ Expenses Production 373,006 502,904 General and administration 169,202 261,511 Interest 37,805 58,545 Depletion and amortization 229,628 544,628 Deferred income tax 211,616 236,823 ---------- ----------- 1,021,257 1,604,411 ------------ ------------ Net income $ 237,997 $ 266,346 ------------ ------------ ------------ ------------ Statement of Changes in Financial Position - for the year ended December 31, 1997 Operating activities: Funds from operations $ 1,047,797 Change in non-cash working capital related to operating activities (794,645) ------------ 253,152 ------------ Financing activities Issue of Class A shares, net of issue costs 9,069,406 Issue of Exchange Rights 435,000 Increase in production loan 4,368,793 ---------- 13,873,199 ---------- Cash available for investing activities 14,126,351 Investing activities Acquisition of Westward Energy Ltd. (9,256,632) Expenditures on property and equipment (13,537,088) Change in non-cash working capital related to investing activities 1,145,310 ----------- (21,648,410) ----------- Decrease in cash (7,522,059) Cash, beginning of year 7,549,923 ----------- Cash, end of year $ 27,864 ----------- ----------- /T/ Our full report has been filed through SEDAR and should therefore be available at www.sedar.com.

To: Kerm Yerman who wrote (10195)	4/18/1998 6:12:00 AM
From: Herb Duncan	Respond to of 15196

EARNINGS / Kensington Energy Ltd. Releases 1997 Financial Results CALGARY, ALBERTA--Oil and natural gas production for 1997 averaged 396 boe/d compared to 143 boe/d in 1996. Production in 1997 consisted of 209 bbl/d of oil and natural gas liquids and 1.87 mmcf/d of natural gas. Production in 1996 was virtually all oil. Production volumes in 1997 were lower than anticipated due to gas plant restrictions of natural gas volumes at Sangudo and delays in implementing a waterflood at the Company's light oil pool at Giroux Lake. Water injection at Giroux Lake will commence shortly. Effective March 1, 1998 approximately 125 boe/d of production at Sangudo was sold for cash as it was anticipated that this production would continue to be restricted. Revenue from petroleum and natural gas sales was $2,904,779 in 1997 compared to $748,590 in 1996. Average sales prices in 1997 were $24.75 for oil, $17.14 for natural gas liquids and $1.69 per mcf of natural gas. In 1996, the average sales price for oil was $28.89. Production expenses were $4.25 per boe in 1997 compared to $4.03 per boe in 1996. Funds from operations in 1997 were $1,569,866 or $0.36 per Class A share (basic) compared to $483,094 or $0.13 per Class A share (basic) in 1996. The Company applied a ceiling test to the capitalized amounts of petroleum and natural properties and production equipment at December 31, 1997 and determined that a writedown of $840,000 was required. This writedown was determined to be appropriate after giving consideration to prices at year end 1997 and current low oil prices. This writedown and a deferred income tax provision of $166,685 for 1997 resulted in a loss of $1,001,868 or $0.23 per Class A share (basic) compared to net income of $129,178 or $0.04 per Class A share (basic) in 1996. Capital expenditures for the year were $6,814,702. Of this amount, $4,397,591 was spent on drilling and completion, $504,634 on land, $553,236 on seismic data, and $955,382 on tangible equipment and facilities. During 1997, the Company drilled 23 (8.9 net) wells resulting in 8 (2.9 net) oil wells, 3 (0.8 net) gas wells and 12 (5.2 net) dry and abandoned wells. Undeveloped land holdings increased to 81,904 gross acres (30,968 net acres) from 42,105 gross acres (15,095 net acres) at year end. The Company's Class A Shares and Class B Shares trade on The Alberta Stock Exchange under the symbols KNN.A and KNN.B, respectively.

To: Kerm Yerman who wrote (10195)	4/18/1998 6:14:00 AM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Doreal Energy: Colombia Well Test Delayed By Deteriorating Weather Conditions ASE SYMBOL: DOY OTC Bulletin Board SYMBOL: DEG APRIL 17, 1998 VANCOUVER, BRITISH COLUMBIA--As announced in our April 13, 1998 news release, the Mateguafa No. 1 well was logged and casing was run to total measure depth of 10,043 feet. Based on oil and gas shows from samples, the mud log and electric logs the operator recommended the testing of intervals within the Carbonera C7, the Guadalupe, the Gacheta and the Ubaque Formations. These potential pay zones are similar to those intervals that the oil industry has already found to be proven oil producers from this immediate area of the Llanos Basin. Doreal had hoped to have these zones tested in the next two weeks however we have been informed by Heritage Minerals Ltd., operator, that testing of the several potential oil bearing intervals will be deferred until weather conditions permit. The operator is currently moving the rig and equipment off the location and will defer the testing until the beginning of the dry season. This decision to suspend the testing program has been made because of rapidly deteriorating weather conditions that could cause the drilling rig and associated testing equipment to be left on the location until the end of the rainy season. The risk of inordinately high costs that could result from having to pay standby rig and equipment charges make this a prudent decision. The working interest partners of the Association Contract have agreed to this course of action. On Behalf of the Board of Directors, James H. Dorman, President & CEO

To: Kerm Yerman who wrote (10195)	4/18/1998 6:20:00 AM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

FIELD ACTIVITIES / First Star Energy Announces Exploration Update ASE SYMBOL: FST APRIL 17, 1998 CALGARY, ALBERTA--First Star Energy Ltd. ("First Star") advises that the Strachan 3-22-8-39W5M well is currently drilling at a depth of 4,126 meters (4,022 meters TVD) in the Duvernay Formation. The Leduc Formation (D-3), a primary objective, was not encountered in the well. (First Star 20 percent BPO, 25 percent APO). First Star reported on March 27 that potential hydrocarbons were indicated in the Cardium, Ostracod, Basal Quartz and Elkton (Mississippian) Formations based upon increased rates of penetration, gas and/or oil shows during drilling and log analysis. The information indicates a potential gas well. A determination of production capability and reserves volumes for any of the uphole zones will not occur until production testing takes place after the well reaches total depth. The drilling is continuing to a total projected depth of 4,479 meters measured depth (4256 meters TVD). Potential targets below the current drilling depth include the Swan Hills, Beaverhill Lake and Keg River Formations. Total depth is expected to be reached in approximately 10 days (April 27). First Star also announces that it has acquired a 100 percent interest in 2 sections (1280 acres) in the Caroline, Alberta area at the March 18, 1998 Crown Land Sale, immediately adjacent to a 3 section license that sold for $2.66 million. In North Eastern British Columbia, First Star has entered in to a seismic option on three sections on a Triassic play, with the right to drill after review and interpretation of that seismic. In Kentucky, for the Ballard Ray #1 (First Star 27.5 percent), the pipeline has been laid and production facilities installed. The gas well should be on production in three weeks at approximately 750 mcf per day and a gas price of US$2.45.

To: Kerm Yerman who wrote (10195)	4/18/1998 6:22:00 AM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / TUSK Announces Strachan Well Information Updates Production From New Meekwap Well TSE, ASE SYMBOL: TKE APRIL 17, 1998 CALGARY, ALBERTA--TUSK Energy Inc. advises that the Strachan 03-22-38-09 W5M well is currently drilling at a depth of 4126 metres (4,022 metres TVD) in the Duvernay Formation. The Leduc Formation (D-3), a primary objective, was not encountered in the well. TUSK reported on March 27 that hydrocarbons were indicated in the Cardium, Ostracod, Basal Quartz and Elkton (Mississippian) Formations based upon increased rates of penetration, gas and/or oil shows during drilling and log analysis. The information indicates a potential gas well. Intermediate casing was set at 3,420 metres. A determination of production capability and reserve volumes for any of the uphole zones will not occur until production testing takes place after the well reaches total depth. Drilling will continue to a total projected depth of 4,479 metres measured depth (4,256 metres true vertical depth). Potential targets below the current drilling depth are the Swan Hills, Beaverhill Lake and Keg River Formations. Total depth is expected to be reached in approximately 10 days (April 27). TUSK is participating in the Strachan well for 10 percent of the well costs and is farming out a further 40 percent to third parties such that the TUSK interest after payout is 30 percent. At Meekwap, the TUSK 4-21-66-15 W5M Meekwap D-2A Unit well (news release of April 8) has now been producing for 10 days. During that time average production has been 1,838 boepd (323 boepd net) consisting of 1,649 bopd and 1,885 Mcfd. No water has been produced. Choke size has remained consistent at 28/64". TUSK has a 16.734 percent working interest and a 0.875 percent net profits interest in the Meekwap D-2A Unit. The location for the 4-21 well was determined by interpretation of 3-D seismic data. This seismic indicates a number of other targets and TUSK expects to drill at least 4 additional wells (17 percent to 46 percent) prior to year end. With the approval of Unit partners, the first of these is expected to spud approximately May 15.

To: Kerm Yerman who wrote (10195)	4/18/1998 6:23:00 AM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Loon Announces Strachan Well Information ASE SYMBOL: LEY APRIL 17, 1998 CALGARY, ALBERTA--Loon Energy Inc. advises that the Strachan 03-22-38-09 W5M well is currently drilling at a depth of 4126 metres (4,022 metres TVD) in the Duvernay Formation. The Leduc Formation (D-3), a primary objective, was not encountered in the well. Loon reported on March 27 that hydrocarbons were indicated in the Cardium, Ostracod, Basal Quartz and Elkton (Mississippian) Formations based upon increased rates of penetration, gas and/or oil shows during drilling and log analysis. The information indicates a potential gas well. Intermediate casing was set at 3,420 metres. A determination of production capability and reserve volumes for any of the uphole zones will not occur until production testing takes place after the well reaches total depth. Drilling will continue to a total projected depth of 4,479 metres measured depth (4,256 metres true vertical depth). Potential targets below the current drilling depth are the Swan Hills, Beaverhill Lake and Keg River Formations. Total depth is expected to be reached in approximately 10 days (April 27). Loon is participating in the Strachan well for 10 percent of the well costs to earn a 10 percent interest before payout and a 5 percent working interest after payout. Loon recently announced (April 13) that it will acquire an average 21.5 percent working interest in a southern Alberta oil pool in the Grand Forks area. Loon's net production from the pool will be approximately 70 bopd. Loon has acquired a 33 percent working interest in 640 acres of land at Carvel offsetting a gas discovery which tested gas at 8 MMcfd. Drilling of this prospect is expected within the next 3 months.

To: Kerm Yerman who wrote (10195)	4/18/1998 6:27:00 AM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

ACQUISITIONS-MERGERS / Austpro Energy Corporation Acquires Shares of James A. Ion Consulting Ltd. VSE SYMBOL: AUS APRIL 17, 1998 VANCOUVER, BRITISH COLUMBIA--Mr. Edward Odishaw, Chairman of the Board of Austpro Energy Corporation (the "Company"), is pleased to announce the completion of the acquisition of all of the issued shares of James A. Ion Consulting Ltd. for an aggregate consideration of $60,000 comprised of $20,000 in cash and 100,000 shares of the Company. The shares are deliverable to the vendors in stages over the next two years. ON BEHALF OF THE BOARD OF DIRECTORS OF AUSTPRO ENERGY CORPORATION MICHAEL H. ALTMAN, CORPORATE SECRETARY

To: Kerm Yerman who wrote (10195)	4/18/1998 2:54:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Wiser Oil Company Announces Gas Exploration and Production Results in Canada and Revised Drilling Date in Peru DALLAS--(BUSINESS WIRE)--April 17, 1998--The Wiser Oil Company (NYSE) announced the results of Wiser Canada's natural gas exploration and production program. In addition, exploration efforts in South America are scheduled to begin in central Peru on Block 81 in May. Strong natural gas prices have stimulated gas exploration throughout Canada. This year, Wiser's exploration program has targeted natural gas development throughout Alberta. For the last two quarters, Wiser has had growing success in locating natural gas reserves throughout central Alberta. On the Portage Prospect, 8 wells were drilled during the 1997 winter drilling season. In combination with four existing wells, to date, 12 wells have been completed and have been tied in on this prospect. These wells have an average depth of 1,000 feet, and Wiser's working interest production is approximately 4.5 to 5.0 net million cubic feet of gas per day (MMcfd) from the Grande Rapids and Basal Nisku formations. In an effort to maintain long term deliverability in the future, Wiser has identified 12 new drilling locations. Wiser's working interest in Portage is 25 to 100% in the wells and 45% in the facilities. Historically, Wiser has had a number of ongoing exploration projects throughout central Alberta. During 1997, Wiser's expanded successfully into three new prospects within this region. At Windfall, a natural gas well producing 3.5 to 4 MMcfd was completed on April 5, and a well completed April 1 at Kaybob South is currently producing 2.5 MMcfd. Wiser has a 50% working interest in both of these prospects. The first well on the Red Earth Prospect is producing 2 MMcfd and was completed on March 19. Wiser's working interest in Red Earth is 25%. An offset to the Windfall well is expected to be drilled this summer and additional locations at Kaybob South are under evaluation. For 1998, Wiser Canada plans to drill at least 27 new wells. To date, Wiser has participated in 17 wells, of which 14 were successful and 3 were dry, giving Wiser Canada a drilling success rate of 82%. Wiser Canada's current production rate is approximately 4,000 net barrels of oil equivalent per day (Boepd), compared to an average 3,232 net Boepd for 1997. In February, Wiser announced plans to conduct a high potential frontier test on a 2.5 million-acre tract in central Peru. Wiser has a 12.5% working interest in exploration Block 81 operated by Quintana Minerals Peru, L.L.C. Sucursal Peruana. Current plans call for capital expenditures of $1.3 million to drill a 13,200-foot test well. Drilling is now expected to start in mid-May. President and Chief Executive Officer Andy Shoup said, ''Wiser shifted focus in 1998. This year, Wiser is actively pursuing natural gas reserves in the U.S. and Canada. We are particularly pleased with our recent drilling success in Alberta. There are a number of interesting exploration opportunities that Wiser plans to work on in Canada in the coming months. In addition, we intend to continue our pursuit of exploration opportunities in both the U.S. and, more recently, South America.'' Organized in 1905, Wiser is an independent energy company engaged in exploration, production and acquisition of crude oil and natural gas reserves primarily in the United States and Canada. Wiser operates on a philosophy of moderate risk exploration and strategic acquisitions. Some matters set forth herein are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward looking statements. Potential risks and uncertainties include such factors as oil and gas prices, well completions and production levels within estimated ranges. Investors are cautioned to consider other risks and uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.

To: Kerm Yerman who wrote (10195)	4/18/1998 3:12:00 PM
From: Kerm Yerman	Respond to of 15196

CORP. / Tracer Petroleum Corporation Proposed Share Consolidation VANCOUVER, British Columbia, April 17 /PRNewswire/ -- In accordance with Regulatory requirements, and in relation to the proposed consolidation of the Company's shares as announced on April 8, 1998, management confirms: a) the proposed consolidation ratio is 10 old shares for one new share; b) the number of shares currently outstanding is 37,172,054. The number of shares which will be outstanding after the proposed consolidation Tracer Petroleum Corporation Proposed Share Consolidation VANCOUVER, British Columbia, April 17 /PRNewswire/ -- In accordance with Regulatory requirements, and in relation to the proposed consolidation of the Company's shares as announced on April 8, 1998, management confirms: a) the proposed consolidation ratio is 10 old shares for one new share; b) the number of shares currently outstanding is 37,172,054. The number of shares which will be outstanding after the proposed consolidation will be a maximum of 3,717,205. Should the proposed private placement of an addition 12,000,000 shares as announced on March 9 complete, the number of shares which will be outstanding will be 49,172,054 and a maximum of 4,917,205 respectively c) two reasons integral in Management's decision to recommend the necessary resolution for shareholders' approval: i) Management believes the consolidation is necessary to enable the, Company to maintain its Nasdaq Small Cap listing. Nasdaq has announced new maintenance requirements whereby any company not trading at US $1.00 per share or greater will be delisted. Tracer is currently trading at US $0.15 - US $0.19 and; ii)The consolidation/Small Cap listing has been identified by financial advisory firms as pre-requisites for any financing proposals to meet the Company's acquisition and drilling plans; d) The shareholders' meeting to consider the foregoing has been scheduled fox May 22, 1998; e) The consolidation is subject to shareholders' approval and acceptance for filing by the Vancouver Stock Exchange; f) The Company's name will not be changed; and g) There are no other actual or proposed material changes that have not been previously announced.of an addition 12,000,000 shares as announced on March 9 complete, the number of shares which will be outstanding will be 49,172,054 and a maximum of 4,917,205 respectively h) Two reasons integral in Management's decision to recommend the necessary resolution for shareholders' approval: i) Management believes the consolidation is necessary to enable the Company to maintain its Nasdaq Small Cap listing. Nasdaq has announced new maintenance requirements whereby any company not trading at US $1.00 per share or greater will be delisted. Tracer is currently trading at US $0.15 - US $0.19 and; ii)The consolidation/Small Cap listing has been identified by financial advisory firms as pre-requisites for any financing proposals to meet the Company's acquisition and drilling plans; d) The shareholders' meeting to consider the foregoing has been scheduled fox May 22, 1998; e) The consolidation is subject to shareholders' approval and acceptance for filing by the Vancouver Stock Exchange; f) The Company's name will not be changed; and g) There are no other actual or proposed material changes that have not been previously announced.

To: Kerm Yerman who wrote (10195)	4/18/1998 3:17:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Sharon Energy Announces Increase in California Production ENGLEWOOD, Colo., April 17 /PRNewswire/ -- Jack S. Steinhauser, President of Sharon Energy Ltd. (SHY/VSE) announced today that production on the Henning #1-15 well in Sharon's Merlin Project in Glenn County, California has been increased from 1.6 to 3.0 million cubic feet per day (MMCFD). The Project operator, Equity Oil of Salt Lake City, performed a rework operation on April 1, 1998 adding three sets of perforations at 5556-60', 5542-46', and 5535-40'. The well had previously been producing at a stabilized rate of 1.6 MMCFD from one set of perforations at 5565-68'. The well now has a total of 16 feet of perforations producing 3.0 MMCFD on an 18/64'' choke with a flowing tubing pressure of 1360 psi and a flowing casing pressure of 1450 psi from four individual sand payzones in the Cretaceous Forbes. ''The work that Equity has performed demonstrates the productive potential of the Henning well and represents proof of concept for the Merlin 3-D Gas Project,'' remarked Mr. Steinhauser. ''Sharon has a 20% working interest and 16% revenue interest in the well. At the current rate of production and gas price, the well should generate cashflow of approximately US$30,000 - $35,000 per month to Sharon. Additional payzones remain behind pipe for perforation at a future date.'' Sharon Energy Ltd. is an oil and gas exploration and production firm headquartered in Englewood, Colorado, with gas properties in California and Louisiana. Sharon specializes in the application of advanced technology such as 3-D seismic and horizontal drilling. Sharon trades on the Vancouver Stock Exchange (''SHY''). The Vancouver Stock Exchange does not review and does not accept responsibility for the adequacy or accuracy of this news release.