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

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To: Kerm Yerman who wrote (10408) 4/28/1998 9:13:00 PM From: Herb Duncan   Respond to of 15196   CORP / Newport Petroleum Announcement TSE SYMBOL: NPP APRIL 28, 1998 CALGARY, ALBERTA-- NEWPORT PETROLEUM CORPORATION has been active in the Caroline area with Canadian 88 Energy Corp. under a Participation and Acreage Exchange Agreement. Under this agreement, the parties have a 50/50 interest in certain lands on which they are actively pursuing development of the Caroline play. Newport, as operator, drilled the discovery well Newport Caroline 8-6-34-5-W5M. Yesterday, Newport was served with a Statement of Claim by Canadian 88 Energy Corp. for damages and a declaration of operatorship regarding certain lands under this agreement. While the claim is still under review, management believes it is without merit. Newport intends to vigorously defend the action. Newport has a 50 percent working interest in the well 7-19-33-5-W5M currently being drilled by Canadian 88 Energy Corp. on the Caroline play.

To: Kerm Yerman who wrote (10408) 4/28/1998 9:16:00 PM From: Herb Duncan   Respond to of 15196   ENERGY TRUST / Petrobank Energy - Gas Plant Expansion Complete, Blood Drilling Update TSE SYMBOL: PBG APRIL 28, 1998 CALGARY, ALBERTA--Petrobank announces that commissioning of its Alder Flats gas plant expansion has been completed three weeks ahead of schedule. The new plant, owned 100 percent by Petrobank is capable of processing 35 million cubic feet per day up from 16 million cubic feet per day prior to the expansion. The new refrigeration plant is designed to operate at -40c and will provide improved liquids recoveries over the former plant process. The expanded plant will provide capacity for new gas well tie-ins currently underway, new third party processing arrangements, and will accommodate volumes expected from Petrobank's 1998 development drilling program. Petrobank also announces that at Blood Magrath the first of two deep earning wells has been drilled to depth and cased. Subject to road bans and surface access, Petrobank expects to move a service rig onto the well in the next ten days to begin evaluating the first of four hydrocarbon bearing intervals encountered in the well. The drilling rig has moved onto the second well location and drilling is underway. The seismic acquisition provisions of the farmin have been completed and the data is currently being integrated into Petrobank's Blood Magrath exploration model.

To: Kerm Yerman who wrote (10408) 4/28/1998 9:18:00 PM From: Herb Duncan   Respond to of 15196   EARNINGS / Windsor Energy Corporation Reserves Up Over 80 Percent in Six Months TSE, AMEX SYMBOL: WNS APRIL 28, 1998 CALGARY, ALBERTA--Windsor Energy Corporation is pleased to announce a significant increase in its U.S. reserves. Thomas E. Hogan, President and Chief Executive Officer, said the results of studies done by two independent engineering firms showed the following reserves estimates: /T/ Gross Oil Reserves: Total Proved 31.2 Million Barrels Total Probable 2.2 Million Barrels Total Possible 3.8 Million Barrels Gross Gas Reserves: Total Proved 28.3 Billion Cubic Feet Total Probable 2.9 Billion Cubic Feet Total Possible 40.6 Billion Cubic Feet /T/ Total Gross Oil Reserves have increased from 20.6 million barrels to 37.2 million barrels, or 81 percent. Total Gross Gas Reserves have increased from 18.1 billion cubic feet to 71.8 billion cubic feet, or 297 percent. Gross reserves are before applicable deductions for royalties. The Ryder Scott Report covers the Corporation's California properties, while James Smith and Associates covers the Louisiana and Texas properties. Mr. Hogan said, "It certainly confirms that we are moving in the right direction, but I must also add our own engineering analysis comes in much higher." "We believe we will continue to add to these reserves over the next few months and that combined with our low lifting cost of under three dollars a barrel augers well for the Corporation's future," Mr. Hogan concluded. This release contains forward-looking information. Actual future results may differ materially. The risks, uncertainties and other factors that could influence actual results are described in documents filed with regulatory authorities. Windsor is a Calgary, Alberta and Dallas, Texas based international exploration and production company traded on the Toronto Stock Exchange (TSE:WNS) and the American Stock Exchange (AMX:WNS).

To: Kerm Yerman who wrote (10408) 4/28/1998 9:22:00 PM From: Herb Duncan   Respond to of 15196   FINANCING / Thunder Energy Closes Financing TSE SYMBOL: THY APRIL 28, 1998 CALGARY, ALBERTA--Thunder Energy Inc. (THY - TSE) announced today that it closed its previously announced special warrant bought deal financing with two underwriters. At closing, Thunder issued 2,500,000 special warrants at a price of $2.00 per special warrant for gross proceeds of $5 million. Each special warrant entitles the holder thereof to acquire, subject to adjustment in certain circumstances, one Common Share of Thunder at no additional cost. One-half of the proceeds from the special warrant financing were placed in escrow pending the issuance of a receipt for a final prospectus qualifying the distribution of the Common Shares issuable upon the exercise of the special warrants. Proceeds from the special warrant financing will be used to accelerate and expand Thunder's 1998 capital program. Thunder will increase its emphasis on natural gas exploration and development to take advantage of strengthening natural gas prices and its large inventory of natural gas prospects. Thunder Energy is a Calgary based oil and gas exploration company operating in Alberta. Thunder's shares are traded on the Toronto Stock Exchange under the trading symbol "THY".

To: Kerm Yerman who wrote (10408) 4/28/1998 9:24:00 PM From: Herb Duncan   Respond to of 15196   FINANCING / Canadian 88 Energy Corp. Announces Completion of Equity Financing TSE, ASE, AMEX SYMBOL: EEE APRIL 28, 1998 CALGARY, ALBERTA--Canadian 88 Energy Corp. of Calgary, Alberta announced today that it has completed the issue of 5,000,000 common shares at $7.40 per share, for gross proceeds of $37 million, pursuant to an underwriting agreement entered into on April 3, 1998. The underwriting syndicate was led by Goepel McDermid Inc. The other members of the syndicate were Maison Placements Canada Inc., Peters & Co. Limited, Credit Suisse First Boston Securities Canada Inc. and Research Capital Corporation. Proceeds of the issue will be used for Canadian 88's capital expenditure program which is estimated to be a minimum of $175 million in 1998. In addition, Canadian 88 committed on April 6, 1998 to issue 1,290,323 flow-through common shares to a single purchaser on a private placement basis at a price of $7.75 per share for gross proceeds of $10 million. Canadian 88 Energy Corp. is an independent exploration and production company with shares listed for trading on the Toronto, Alberta and American Stock Exchanges under the trading symbol "EEE". "Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: Any statements which are not historical facts contained in this release are forward looking statements that involve risks and uncertainties. Canadian 88's actual results could differ materially from those expressed or implied by such forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to: competition, general economic conditions, currency fluctuations and other risks detailed in Canadian 88's filings with the U.S. Securities and Exchange Commission.

To: Kerm Yerman who wrote (10408) 4/28/1998 9:29:00 PM From: Herb Duncan   Respond to of 15196   EARNINGS / S.R.I. Oil and Gas Inc. Announces 41 Percent Growth in Revenues in Fiscal 1997 - Cash Flow up 62 Percent - Very Promising 1998 Outlook ME SYMBOL: SEL APRIL 28, 1998 MONTREAL, QUEBEC--S.R.I. OIL & GAS INC. announced today the results for its fiscal year ended December 31, 1997. During this period, the Company recorded a cash flow from operations of $1,403,361 ($0.40 per share - undiluted), an increase of 62 percent when compared to $863,137 ($0.35 per share - undiluted) for the previous year ended December 31,1996. Net income for the year was $385,110 ($0.11 per share - undiluted) compared to $186,892 ($0.08 per share - undiluted) for the previous year, representing an increase of 106 percent. Oil and gas revenues, net of royalties, of $2,080,871, represent an increase of 41 percent when compared to the revenues of $1,471,493 achieved in 1996. More than 90 percent of the Company's revenue comes from natural gas sales. Strong Growth Outlook S.R.I. Oil & Gas Inc. is dedicated to creating value for its shareholders through investment in the Canadian western sedimentary basin as a joint venture partner and by acting as a merchant banker to public and private oil and gas companies. "We are pleased with the 1997 results. Based on the recent strengthening of natural gas prices and new export capacity, the Company's outlook for fiscal 1998 is very positive," commented Harry H. Feldman, Chairman of S.R.I. We are participating in a number of very promising projects, including those operated by publicly traded Remington Energy Ltd. S.R.I. is now using the same investment concepts with two privately held companies. "These results emphasize our potential. We plan to list on at least one other market this year, and we look forward to announcing more good news." The Canadian oil and gas sector appears to be poised for growth according to the US Department of Energy, and many analysts. The US market will grow at 2 percent, and Canadian producers will continue to provide almost all of that increase, as they have in the past. Canadian producers are clearly positioned to get the lion's share for a number of reasons. According to Feldman, "Analysts continue to project increased demand based on the new pipeline capacity into the US market. We are clearly moving from an over supply situation, to one of strong demand. In fact, we may have already reached that point." New capacity will maintain this demand in the long term. Two major export pipelines, Alliance, and TransCanada Pipeline Viking Voyageur, have been announced for completion in 1999. Either one of these projects will ensure that the over-supply bottleneck that has created artificially depressed prices, is eliminated in the long term. With the bottleneck gone, analysts point out that the price differential between Alberta and US prices will be almost eliminated. The average difference between NYMEX gas and AECO-C gas has been $1.14 US/mmbtu over the last year, $1.35 over the last two years and $1.20 over the last three years. Analysts forecast a reduction of 75 percent in the Alberta-US price differential. Other factors that will influence the price of oil and gas are current projections for colder winters, as we enter the beginning of a 20 year cool weather cycle. In the past, cold winters have driven up the price substantially, as commodity prices tend to be very sensitive to supply and demand economics. /T/ Financial Highlights For the fiscal years ended December 31 1997 1996 Variation ______________________________________ Revenues, net of royalties $2,080,871 1,471,493 41 percent Cash flow $1,403,361 863,137 62 percent Basic cash flow per share (undiluted) $0.40 0.35 Net earnings $385,110 186,892 106 percent Basic net earnings per share (undiluted) $0.11 0.08 Basic outstanding shares at year end 3,401,841 3,475,541 /T/

To: Kerm Yerman who wrote (10408) 4/28/1998 9:37:00 PM From: Herb Duncan   Respond to of 15196   PROPERTY ACQUISITION / QR CANADA CAPITAL INC. - Major Transaction to Acquire Oil and Gas Properties ASE SYMBOL: QRI APRIL 28, 1998 MONTREAL, QUEBEC--QR CANADA CAPITAL INC., ("QR or the Corporation "), a junior capital pool corporation listed on the Alberta Stock Exchange (ASE), announces that it's proposed Major Transaction to acquire oil and gas properties in the provinces of Alberta and Saskatchewan from PRL Resources Inc. was approved by the shareholders of the Corporation on March 3, 1998 and that the Corporation has since closed its purchase of the subject properties for $487,000. In connection with the approval of the Major Transaction the shareholders of the Corporation also approved of the private placement of up to 2,500,000 units of the Corporation at $0.40 per unit. Each unit is comprised of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to acquire one additional common share of the Corporation upon payment of the exercise price of $0.50. The Corporation received and accepted subscriptions for 1,000,000 units, for gross proceeds of $400,000, subsequent to approval of the Major Transaction. Notwithstanding that the ASE made acceptance of the Major Transaction conditional upon receipt of subscriptions for 1,500,000 units for gross proceeds of $600,000, the ASE has accepted the Major Transaction and the private placement of 1,000,000 units. The Corporation was unable to close the final $200,000 due to market conditions. However, the Corporation has $100,000 in unallocated funds available and keeps the previously announced private placement open until May 8. No additional oil and gas acquisitions will be undertaken until further funds are raised. THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISSAPROVED THE INFORMATION CONTAINED HEREIN

To: Kerm Yerman who wrote (10408) 4/28/1998 9:40:00 PM From: Herb Duncan   Respond to of 15196   EARNINGS / Consumers Gas - 1998 Second Quarter Results AND IPL ENERGY INC. TSE, ME SYMBOL: IPL NASDAQ SYMBOL: IPPIF APRIL 28, 1998 TORONTO, ONTARIO--(April 28, 1998) The Consumers' Gas Company Ltd., today announced income applicable to common shares of $123.9 million or $1.82 per common share for the six months ended March 31, 1998, compared to $152.9 million or $2.30 per common share for the comparable period last year. The Board of Directors declared the quarterly dividends on all classes of preference shares payable on July 1, 1998, to shareholders of record on June 5, 1998. /T/ Pref. Group 1, Series A & B $1.375 Pref. Group 1, Series C $1.25 Pref. Group 2, Series C $0.403125 Pref. Group 3, Series C $0.3575 /T/ The Consumers' Gas Company Ltd., Toronto, is a wholly-owned subsidiary of IPL Energy Inc. of Calgary. IPL Energy is a leader in energy delivery and services, operating the world's longest crude oil and liquids pipeline through the combined Interprovincial Pipe Line Inc. and Lakehead Pipe Line Partners, L.P. system, and Canada's largest natural gas distribution company through Consumers Gas which serves 1.4 million residential, commercial, industrial and wholesale customers in south central and eastern Ontario, Quebec and Upper New York State. IPL Energy's common shares trade on the Toronto and Montreal stock exchanges in Canada under the symbol "IPL". In the United States the shares trade on the NASDAQ National Market under "IPPIF". Lakehead's preference units trade on the New York Stock Exchange under "LHP". /T/ THE CONSUMERS' GAS COMPANY LTD. Financial and Operating Highlights For the six months ended March 31 -------------------------------------------------------------- 1998 1997 -------------------------------------------------------------- Financial (expressed in thousands except per share amounts) Gas sales $1,040,350 $1,217,685 Transportation of gas 82,652 17,559 Other revenue 127,143 111,134 ------------------------ Total revenue 1,250,145 1,346,378 Gas costs 654,830 721,227 ------------------------ Net revenue $ 595,315 $ 625,151 ------------------------ ------------------------ Net income $ 124,018 $ 153,087 Income applicable to common shares $ 123,880 $ 152,944 Earnings per common share $ 1.82 $ 2.30 Long term interest coverage ratio(1) 2.3 2.8 Net tangible asset coverage ratio of long term debt Before and after deferred taxes 1.7 1.7 Operating Volumetric statistics (millions of cubic metres) Gas sales Residential 2,486 2,863 Commercial 2,076 2,844 Industrial 569 825 Wholesale 87 122 Transportation of gas 2,567 1,405 ------------------------ Total distribution volume 7,785 8,059 ------------------------ ------------------------ Number of active customers 1,383,636 1,330,626 Degree day deficiency(2) Actual 2,922 3,270 Forecast based on normal weather 3,435 3,316 Preference Share Information TSE closing price of preference shares CGT.PR.A - Group 1, Series A, 5 1/2 percent $ 96.25 $ 95.00 CGT.PR.B - Group 1, Series B, 5 1/2 percent $ 99.95 $ 95.05 CGT.PR.H - Group 2, Series C, 6.45 percent $ 26.15 $ 26.90 CGT.PR.G - Group 3, Series C, 5.72 percent $ 25.00 $ 25.55 -------------------------------------------------------------- /T/ Note 1: Based on the 12 month period then ended. Note 2: Degree day deficiency is a measure of coldness which is indicative of volumetric requirements of natural gas utilized for heating purposes in all markets. It is calculated by accumulating from October 1 the total number of degrees each day by which the daily mean temperature falls below 18 degrees Celsius. The figures given are those accumulated in the Toronto area. /T/ The Consumers' Gas Company Ltd. Consolidated Statements of Income (unaudited) (note 1) (thousands of dollars except per share amounts) -------------------------------------------------------------- Three months ended Six months ended March 31 March 31 -------------------------------------------------------------- 1998 1997 1998 1997 -------------------------------------------------------------- Gas sales $631,037 $789,925 $1,040,350 $1,217,685 Gas costs 399,794 472,362 654,830 721,227 ------------------------------------------- Gas sales margin 231,243 317,563 385,520 496,458 Transportation of gas 59,366 12,315 82,652 17,559 ------------------------------------------- Net gas distribution revenue 290,609 329,878 468,172 514,017 Other revenue 62,357 51,344 127,143 111,134 ------------------------------------------- 352,966 381,222 595,315 625,151 ------------------------------------------- Expenses Operation and maintenance 78,618 81,594 160,749 159,405 Depreciation 48,536 41,838 95,956 83,017 Municipal and other taxes 10,380 9,445 19,696 18,318 ------------------------------------------- 137,534 132,877 276,401 260,740 ------------------------------------------- Income before undernoted items 215,432 248,345 318,914 364,411 Financial charges Interest on long term debt 37,569 37,199 77,404 74,272 Other interest and finance costs 4,344 2,793 7,584 7,478 Dividends on Group 2 and 3 preference shares 1,522 1,522 3,043 3,043 Interest capitalized(1,525) (1,269) (2,800) (2,589) ------------------------------------------ 41,910 40,245 85,231 82,204 ------------------------------------------ Income before income taxes 173,522 208,100 233,683 282,207 Income taxes Current 77,003 91,182 96,599 124,903 Deferred 3,472 2,529 13,066 4,217 ------------------------------------------ 80,475 93,711 109,665 129,120 ------------------------------------------ Net income 93,047 114,389 124,018 153,087 Dividends on Group 1 preference shares 67 70 138 143 ------------------------------------------ Income applicable to common shares $ 92,980 $114,319 $ 123,880 $ 152,944 ------------------------------------------ ------------------------------------------ Earnings per common share (note 2) $ 1.37 $ 1.72 $ 1.82 $ 2.30 -------------------------------------------------------------- -------------------------------------------------------------- /T/ Note 1: Due to the seasonal nature of the Company's operations and the Company's rate design which emphasizes the recovery of higher levels of allocated costs of service during the heating season, the amounts shown for the three and six month periods are not necessarily indicative of the results for the full fiscal year. Note 2: Earnings per common share amounts have been computed by using the weighted average number of common shares outstanding during the period being 67.9 million for the six month period ended March 31, 1998 (66.6 million for the six month period ended March 31, 1997). /T/ The Consumers' Gas Company Ltd. Consolidated Balance Sheets (unaudited) (thousands of dollars) -------------------------------------------------------------- March 31 September 30 -------------------------------------------------------------- 1998 1997 -------------------------------------------------------------- Assets Current assets Cash and short term investments $ 1,078 $ 892 Accounts receivable 356,173 191,653 Materials and supplies 33,278 37,257 Gas in storage 81,613 309,901 Prepaid expenses 49,318 16,673 -------------------------- 521,460 556,376 -------------------------- Property, plant and equipment 4,049,271 3,874,719 Accumulated depreciation 1,054,262 974,029 -------------------------- 2,995,009 2,900,690 -------------------------- Other assets and deferred charges 91,783 85,132 -------------------------- $3,608,252 $3,542,198 -------------------------------------------------------------- -------------------------------------------------------------- Liabilities and shareholders' equity Current liabilities Loans and notes payable $ 378,068 $ 354,268 Accounts payable 236,292 317,467 Income and other taxes payable 45,218 47,648 Deferred income taxes 22,437 9,867 Dividends payable 21,291 20,231 Current portion of long term debt 2,655 253,640 -------------------------- 705,961 1,003,121 -------------------------- Long term debt 1,685,052 1,408,145 -------------------------- Preference shares 100,000 100,000 -------------------------- Deferred income taxes 4,311 3,880 -------------------------- Shareholders' equity Capital stock Group 1 preference shares 4,892 5,182 Common shares 333,420 333,420 Contributed surplus 50,198 50,195 Retained earnings 724,418 638,255 -------------------------- 1,112,928 1,027,052 -------------------------- $3,608,252 $3,542,198 -------------------------------------------------------------- -------------------------------------------------------------- /T/ Note 3: The consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles applicable to interim periods; consequently they do not include all generally accepted accounting disclosures required for annual consolidated financial statements. For more complete information these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in the Company's Annual Review and Financial Statements. /T/ The Consumers' Gas Company Ltd. Consolidated Statements of Changes in Financial Position (unaudited) (thousands of dollars) -------------------------------------------------------------- Six months ended March 31 -------------------------------------------------------------- 1998 1997 -------------------------------------------------------------- Cash generated from operations Net income $124,018 $153,087 Charges (credits) not affecting cash Depreciation 95,956 83,017 Deferred income taxes 13,066 4,217 Amortization of deferred charges and other items 1,220 1,299 --------------------------- 234,260 241,620 Change in non-cash operating working capital (48,503) 10,236 --------------------------- 185,757 251,856 --------------------------- External financing Issue of long term debt 277,045 304,477 Issue of common shares - 1,171 Long term debt repayments (251,123) (41,199) Redemption of Group 1 preference shares (290) (328) -------------------------- 25,632 264,121 -------------------------- 211,389 515,977 -------------------------- Dividends paid Group 1 preference shares 142 148 Common shares 37,661 34,598 -------------------------- 37,803 34,746 -------------------------- Investments Additions to property, plant and equipment 190,275 169,229 Additions to other assets and deferred charges 7,871 8,290 Other, net (946) (889) ------------------------- 197,200 176,630 ------------------------- Increase (decrease) in cash $(23,614) $304,601 -------------------------------------------------------------- -------------------------------------------------------------- /T/ For the purpose of this statement, cash is defined as cash and short term investments less loans and notes payable.

To: Kerm Yerman who wrote (10408) 4/28/1998 9:43:00 PM From: Herb Duncan   Respond to of 15196   SERVICE SECTOR / NQL Drilling Tools Inc. Reports Second Quarter and Six Month Results for the Period Ended February 28, 1998 TSE SYMBOL: NQL.A APRIL 28, 1998 NISKU, ALBERTA--SECOND QUARTER REVENUES of $17.3 million, up 112 percent; NET INCOME of $2.9 million, up 132 percent; and CASH FLOW of $4.9 million, up 115 percent. SIX MONTHS REVENUES of $30.9 million, up 87 percent; NET INCOME of $6.3 million, up 145 percent; and CASH FLOW of $9.4 million, up 114 percent. /T/ For The Three Months Ended (Canadian $) Feb. 28, Feb. 28, Percent (Dollars in thousands, 1998 1997 Change except per share figures) Revenues $17,325 $8,163 + 112 Income From Continuing Operations $2,617 $1,395 + 88 - Per Share $0.18 $0.13 + 38 Net Income $2,873 $1,240 + 132 - Per Share $0.20 $0.12 + 67 Cash Flow From Continuing Operations $4,746 $2,349 + 102 - Per Share $0.33 $0.22 + 50 Net Cash Flow $4,902 $2,284 + 115 - Per Share $0.34 $0.21 + 62 Average Shares Outstanding 14,475,605 10,909,869 + 33 For The Six Months Ended (Canadian $) Feb. 28, Feb. 28, Percent (Dollars in thousands, 1998 1997 Change except per share figures) Revenues $30,852 $16,527 + 87 Income From Continuing Operations $5,901 $2,629 + 124 - Per Share $0.41 $0.24 + 71 (x) Net Income $6,291 $2,564 + 145 - Per Share $0.44 $0.24 + 83 Cash Flow From Continuing Operations $9,005 $4,372 + 106 - Per Share $0.62 $0.40 + 55 (x) Net Cash Flow $9,395 $4,494 + 109 - Per Share $0.65 $0.41 + 59 Average Shares Outstanding 14,475,605 10,909,869 + 33 (x) includes $0.03 per share gain from the disposition of Prairie Lube Ltd. and an unusual charge of $0.03 per share resulting from a retroactive wage increase in Venezuela. /T/ NQL Drilling Tools Inc. is pleased to announce financial results for the Second Quarter ended February 28, 1998. REVENUES increased approximately 112 percent to $17.3 compared to $8.2 million in the corresponding period for the previous year. Similarly, NET INCOME grew by approximately 132 percent to $2.9 million ($0.20 per share) from $1.2 million ($0.12 per share) and CASH FLOW improved approximately 115 percent to $4.9 million ($0.34 per share) from $2.3 million ($0.21 per share). For the six months ended February 28, 1998 REVENUES improved approximately 87 percent to $30.9 million compared to $16.5 million for the same period in fiscal 1997. Similarly, NET INCOME increased 145 percent to $6.3 million ($0.44 per share) from $2.6 million ($0.24 per share) and CASH FLOW grew by 109 percent to $9.4 million ($0.65 per share) from $4.5 million ($0.41 per share) for the same period in fiscal 1997. The strong Second Quarter results reflect continued growth through this period as well as strong demand for the Company's downhole tool products and technology. The Company has now completed its acquisition of P&T Servicios Petroleros, C.A., a Venezuelan company with three service facilities (in Ojeda, Anaco, and Barinas, Venezuela) and is actively involved in stocking of these facilities with its products. This acquisition, together with the now fully operational Louisiana and Wyoming facilities, should ensure continued growth for the Company during the remainder of the year. The disposition of the Quick Lube Division has now been completed and this will permit management to focus on its Downhole Tool Division's international expansion for the remainder of fiscal 1998. NQL Drilling Tools Inc. shares are traded on the Toronto Stock Exchange under the symbol "NQL.A". THE COMPANY NQL Drilling Tools Inc. is an industry leader in providing downhole tools and technology used primarily in drilling applications in the oil and gas, environmental and utility industries on a worldwide basis. Black Max(TM) is a registered trademark of Black Max Downhole Tool Ltd. Beaver(TM) is a registered trademark of NQL Drilling Tools Inc.

To: Kerm Yerman who wrote (10408) 4/28/1998 9:46:00 PM From: Herb Duncan   Respond to of 15196   ACQUISITIONS-MERGERS / NQL Drilling Tools Inc. Closes Previously Announced Disposition of Quick Lube Division TSE SYMBOL: NQL.A APRIL 28, 1998 NISKU, ALBERTA--NQL Drilling Tools Inc. ("NQL") announces that it has closed the disposition of all of the shares of its subsidiary, Prairie Lube Ltd. ("Prairie Lube"). NQL operated its Quick Lube Division, consisting of 10 "Mr. Lube" quick lube service centers in Calgary, Alberta and Regina and Saskatoon, Saskatchewan, through Prairie Lube as Franchisee. The effective date of the transaction is September 1, 1997. Under the terms of the Agreement, NQL will receive approximately $2.3 million for all of the shares of Prairie lube and inventory, of which $260,000.00 will be paid over the next 3 months. The disposition of Prairie Lube will permit management to focus on its core business of providing downhole tools and technology. NQL Drilling Tools Inc. is an industry leader in providing downhole tools and technology primarily in horizontal and directional drilling applications in the oil and gas, environmental, utility and mining industries on a worldwide basis.

To: Kerm Yerman who wrote (10408) 4/28/1998 9:50:00 PM From: Arnie   Respond to of 15196   EARNINGS / Alliance Energy reports 1st 3 months Results Alliance Energy Inc. (Alberta Stock Exchange trading symbol "AEI") is pleased to provide the following information to its shareholders with respect to the financial results for the three months ended February, 1998. Summary: 1998 1997 Change Gross oil & gas revenue 1,015,695 613,308 66% Operating expenses 340,740 237,699 43% General and administrative expenses (G&A) 45,741 95,674 (52%) Net Earnings 105,727 45,258 134% Net Earnings per Share $0.01 $0.00 Funds from Operations 511,637 207,286 147% Funds from Operations per Share $0.03 $0.02 Production volume (BOE) 57,939 26,016 123% BOE/D 644 289 123% Oil Price (BOE) $17.53 $23.57 (26%) Net Back after G&A (BOE) $7.90 $8.36 (5%) Shares Outstanding at period 15,002,583 13,837,583 8% Cash flow from operations has increased 147% from $207,286 in 1997 to $511,637 in 1998. Cash flow per share has increased from $0.02/share in 1997 to $0.03/share in 1998. Daily production increased 123% from 289 BOE/D in 1997 to 644 BOE/D in 1998 mainly due to successful drilling in the Lost Horse Hill area. Even though the product prices has decreased $6.04 from $23.57/BOE in 1997 to $17.53/BOE in 1998 the net back after G & A per BOE has remained fairly consistent being $8.36/BOE in 1997 to $7.90/BOE in 1998. This is due to the reduced operating expenses on a BOE basis from $9.14/BOE in 1997 to $5.88/BOE and general and administrative expenses have been reduced from $3.68/BOE to $0.79/BOE in 1998. Light and medium oil accounts for 92% of production volume, heavy oil accounts for 6% and gas accounts for 2%. Earnings have increased 134% from $45,258 in 1997 to $105,727 in 1998. A total of 2 wells (1.5 net) have been drilled in this quarter, resulting in 1 oil well (0.5 net) and 1 dry hole (1.0 net). The Company is currently drilling another well in Lost Horse Hills (0.5 net). The Company plans to drill 7 (3.1 net) more wells in S.E. Saskatchewan during the year. At present, the Company is producing 700 BOE/D. Annual General Meeting to be held at 3:00pm Thursday April 30, 1998 at the Calgary Petroleum Club.

To: Kerm Yerman who wrote (10408) 4/28/1998 9:52:00 PM From: Arnie   Respond to of 15196   FIELD ACTIVITIES / ULtra Petroleum - Jonah II E.I.S. Finalized A record of decision has been signed by the Bureau of Land Management regarding the Jonah II Environmental Impact Statement. This decision now allows expanded development drilling of up to 450 wells on 80 acre spacing in the Jonah II area, which includes Ultra's Stud Horse Butte acreage. Drilling permits are already being issued and the Company's 1998 development drilling campaign is expected to start up by mid May. At Stud Horse Butte, 7 wells are planned under the recently signed agreement with Halliburton Co. (NYSE:HAL). An additional 4 wells at Stud Horse Butte are planned in 1998 in partnership with Western Gas Resources (NYSE:WGR) and CNG Producing Co. (NYSE:CNG). "We are pleased that the B.L.M. has accepted industry's balanced approach to fully develop this valuable resource while mitigating the environmental impact of full field development," said Jerry Albertus, President of Ultra Petroleum. On behalf of the Board, (signed) Mark Jarvis, Director

To: Kerm Yerman who wrote (10408) 4/28/1998 9:54:00 PM From: Arnie   Respond to of 15196   SERVICE SECTOR / Canadian Crude Separators reports 1st 3 months Results Canadian Crude Separators Inc. today announced results for the three months ended March 31, 1998. --------------------------------------------------------------------------- Three Months Ended March 31 $000 except where noted 1998 1997 --------------------------------------------------------------------------- Revenue 14,267 8,495 --------------------------------------------------------------------------- EBITDA 5,878 3,114 Per share ($) 0.47 0.35 --------------------------------------------------------------------------- Net Income 2,565 1,344 Per share ($) 0.20 0.15 --------------------------------------------------------------------------- Results for the three months ended March 31, 1998 reflect the substantial growth of the Company over the last year. Revenue for the period amounted to $14.3 million, a 68% increase over the same period in 1997. An expanded fleet of service rigs, new facilities in the treating and waste division and higher utilization of substantially all of the Company's assets contributed to this increase. The growth of the Company, combined with continuous efforts to refine processes and equipment, have resulted in improved efficiencies. EBITDA increased by $2.8 million or 88% over the first quarter of 1997. As a percent of revenue, EBITDA increased to 41 % in the first quarter of 1998 from 37% in 1997. Net income increased by 89% in the first quarter of 1998 over the same period in 1997 and as a percent of revenue increased to 18% from 16%. Dave Werklund, CEO, said "as a result of our growing cash flow and earnings and a strong balance sheet, we are in a position to continue to pursue growth opportunities in our core businesses. The current depressed oil price environment will have some, impact on our cash flow as producers reconsider their alternatives particularly with respect to the development of heavy oil projects. This will be cushioned somewhat by strong natural gas activity, to which the service rig fleet has a large exposure, and continued high conventional oil activity levels in areas served by our facilities in northern Alberta." For further information please contact; Alec McDougall Bob German President and Chief Operating Officer Vice President, Finance Ph: (403) 233-7565 Ph: (403) 231-1103 Fax: (403) 261-5612 Fax: (403) 261-5612

To: Kerm Yerman who wrote (10408) 4/28/1998 10:04:00 PM From: Arnie   Respond to of 15196   SERVICE SECTOR / Enviro FX Inc awarded 3 Major Contracts CALGARY, April 28 /CNW/ - Enviro FX Inc. (FXX/ASE) announced today that the company's oilfield services division has been awarded contracts by three major oil and gas exploration companies for waste management during drilling. These drilling programs start immediately with over 600 shallow gas wells in southern Alberta and southern Saskatchewan. The revenues from these three projects should approach $1.5 million. ''Work currently booked by the oil field services division is well ahead of last year at this time'' states Kim Flexhaug, Vice President of Operations. These major contracts are in addition to numerous projects we have for companies with smaller drilling programs this season. The work commitments this division has in hand will make a significant contribution to the company's bottom line in 1998.'' The work includes planning and supervision of the handling and disposal of drilling waste, plus field analysis of soils and fluids in preparation for disposal. Disposal takes place by spreading on agricultural land in cooperation with the landowners. When done properly, the spreading of gel-based drilling fluids is advantageous to the soil and has a mild fertilizing effect on the growth of crops. The staff and equipment of this division should be fully utilized this drilling season. Enviro FX Inc. is an international company offering waste management and remediation services from our offices in Calgary and Medicine Hat Alberta, Phoenix Arizona, and Guadalajara Mexico.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:05:00 PM From: Arnie   Respond to of 15196   ENERGY TRUSTS / Pembina Pipeline Income Fund Annual Meeting CALGARY, April 28 /CNW/ - The first annual meeting of Unitholders of Pembina Pipeline Income Fund will be held at 3 p.m. on April 30, 1998. The meeting will take place at the Westin Hotel, Bonavista Room. Pembina's management will be presenting an update on the Fund's performance and will outline plans and prospects for the Fund, followed by an informal reception. Pembina looks forward to the opportunity to meet with its Stakeholders and to introduce Pembina's management along with the directors of Pembina Pipeline Corporation and trustees of the Fund.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:10:00 PM From: Arnie   Respond to of 15196   EARNINGS / Wainoco Oil Corp reports 1st 3 months Results HOUSTON, April 28 /CNW/ -- Wainoco Oil Corporation (NYSE: WOL) today reported a small loss from continuing operations for the quarter ended March 31, 1998 of $839,000, or $.03 per share, which was $9.2 million better than the loss from continuing operations in the first quarter of 1997 of $10.0 million. Including an extraordinary loss on early debt retirement of $3.0 million, the Company had a net loss for the recent quarter of $3.9 million or $.14 per share. In the first quarter of 1997, the Company reported a net loss of $8.5 million, or $.31 per share, which included approximately $1.6 million of income from discontinued oil and gas operations. Operating income before depreciation of $3.5 million was up $6.8 million from the $3.3 million loss generated in the first quarter of 1997. The 1998 results were impacted by approximately $3.7 million of inventory losses resulting from the steep decline in crude and product prices during the first quarter whereas last year's first quarter had inventory losses of approximately $4.0 million. Lower inventory costs at the end of the first quarter should benefit the Company in subsequent periods as those barrels are processed and sold. The Company's significant first quarter improvement versus last year is primarily due to a widening of the light/heavy crude oil spread, lower operating expenses and reduced interest expense. The first quarter refined product spread was $4.74 per bbl compared to $3.16 per bbl in the first quarter of 1997. Yields of gasoline were the same as last year while yields of distillates increased 6 percent from the first quarter of 1997. The light/heavy crude oil spread increased $1.24 per bbl during the first quarter to $4.72 per bbl and refining operating expenses dropped $.32 per bbl to $3.41 per bbl. As a result of the Company's 1997 restructuring and early 1998 debt refinancing, net interest expense for the quarter decreased by more than 55 percent to $2.0 million in the first quarter. Wainoco Oil Corporation conducts crude oil refining and wholesale marketing of refined products through its Frontier subsidiaries on the eastern slope of the Rocky Mountains. Wainoco's common shares are listed on the New York Stock Exchange under the symbol "WOL". WAINOCO OIL CORPORATION For the Quarter Ended March 31, 1998 1997 FINANCIAL (Financial information in thousands except per share) Revenues $ 69,691 $ 89,570 Operating income (loss) before depreciation 3,507 (3,301) Operating income (loss) 1,131 (5,574) Income (loss) from continuing operations (839) (10,033) Income from discontinued operations --- 1,554 Extraordinary loss on retirement of debt 3,013 --- Net income (loss) (3,852) (8,479) Income (loss) from continuing operations per share (0.03) (0.37) Income (loss) per share (0.14) (0.31) Net cash provided by (used in) operating activities before changes in working capital 1,744 (3,003) Net cash provided by (used in) operating activities $ (5,962) (14,065) Average shares outstanding 28,104 27,259 Cash and equivalents 14,132 5,154 Working capital (deficit) 15,915 8,214 Total debt 75,700 165,041 Shareholders' equity 52,724 16,087 OPERATIONS Total charges (bpd) 41,355 38,623 Gasoline yields (bpd) 17,268 17,268 Distillate yields (bpd) 14,228 13,441 Total sales (bpd) 40,293 38,105 Operating Margins (per bbl) Revenues $ 19.04 $ 26.02 Material costs 14.30 22.86 Refined product margin 4.74 3.16 Operating costs excluding depreciation 3.41 3.73 Depreciation 0.65 0.65 Operating margin $ 0.68 $ (1.22) Light/heavy crude oil spread (per bbl) $ 4.72 $ 3.48 KEY TERMS bpd = barrels per day bbl = barrel

To: Kerm Yerman who wrote (10408) 4/28/1998 10:14:00 PM From: Arnie   Respond to of 15196   EARNINGS / Gulf Indonesia Resources reports 1st 3 months Results DENVER, COLORADO, April 28 /CNW/ - << (All dollar figures in this report are US$) ----------------------------------------------------------------------- Three Months Ended March 31, 1998 1997 ---- ---- FINANCIAL (thousands of dollars) Net oil revenue 21,118 24,555 Cash generated from operations 13,112 15,695 Earnings (loss) for the period (6,062) 4,144 Capital expenditures & exploration expenses 42,266 47,298 PER SHARE (dollars) Cash generated from operations 0.15 0.21 Earnings (loss) for the period (0.07) 0.06 Average number of shares(x) (millions) 87.9 73.3 VOLUMES (gross sales) Crude oil (thousands of barrels per day) 21.1 17.6 (x) March 31, 1998: 87.9 million shares outstanding; Gulf Canada Resources Limited holds 63.7 million shares -------------------------------------------------------------------- >> Gulf Indonesia Resources Limited continued its aggressive exploration, exploitation and development programs during the first quarter. These programs resulted in two discoveries, potential natural gas field extensions on the Corridor block, and timely progress with the natural gas projects currently under development. ''Exploration and development activities during the quarter continue to add to Gulf Indonesia's balanced growth outlook. The oil discovery on the Kakap block can be tied in this year, reserve extensions at Corridor are expected as a result of delineation drilling, and a third natural gas discovery on the South Jambi 'B' block provides the potential for another natural gas project,'' says Dick Auchinleck, President and Chief Executive Officer. ''These successes provide growth opportunities for the near, mid and long-term.'' First quarter results announced today include average sales production of 21,100 barrels per day of crude oil, cash generation of $13.1 million and a loss of $6.0 million. Oil production increased 20 per cent over first quarter 1997, but gross revenue declined $9.1 million as a result of lower realized oil prices. The average realized oil price of $13.37 per barrel was almost 40 per cent below the first quarter of 1997 at $21.74 per barrel. The resulting 26 per cent decline in gross oil revenues contributed to reductions in cash generation of $2.6 million and earnings of $10.2 million compared to the first quarter last year. Additionally, the year's more aggressive drilling program resulted in higher exploration expenses due primarily to three wells that were plugged and abandoned during the quarter. The Company's cash balance at March 31, 1998 of $107 million remains unchanged from the year-end 1997. The exploration program successes included the Bungin well on the South Jambi 'B' block. This is the third natural gas discovery on the block and, combined with two earlier discoveries, has the potential to support a natural gas project similar in size to the Corridor Project currently under development. The Jangkar exploration well on the Kakap block resulted in an oil discovery that is expected to be tied-back to the KH platform, adding to production by year-end. Natural gas exploitation and development activities progressed well on the Corridor Project where Gulf has a 54 per cent working interest and operates the project. The main gas processing plant under construction at Grissik was 95 per cent complete at quarter-end. Construction of the natural gas pipeline to Duri, where the gas will be exchanged for crude oil, is in progress with mechanical completion expected at the end of August. Delineation drilling on two key fields in the Corridor block continued during the first quarter. On the Dayung field, the main natural gas field for the project, two wells were completed indicating a larger pay zone than previously estimated. Delineation drilling on the Sumpal field will be completed by the third quarter. These two fields have the potential to double the size of the Corridor Project. At the Block 'A' natural gas project, the Company began an evaluation of contractors that could provide turn-key construction of a gas plant and pipeline to the Arun LNG facility and fertilizer plants. The intention is to award a contract by year-end. The West Natuna Gas Group completed a feasibility study during the quarter on constructing a pipeline from the west Natuna area to Singapore. The Group also continued negotiations relating to gas marketing contracts and pipeline construction contracts. Also today, Dick Auchinleck, President and Chief Executive Officer of both Gulf Canada Resources Limited and Gulf Indonesia Resources Limited announced the appointment of Mr. William (Bill) T. Fanagan as the new President and Chief Executive Officer of Gulf Indonesia Resources effective immediately. Mr. Fanagan will be located in Jakarta. Mr. Auchinleck will remain on the board of directors of Gulf Indonesia. Looking forward, Gulf Indonesia remains focused on growth through the drill-bit with an aggressive three-year exploration and development program on its extensive land positions in Indonesia. The 1998 drilling program includes 60 wells: 15 exploration wells, 15 delineation wells and 30 development wells. Of this total, 47 wells will be drilled during the remainder of the year. The Company continues to explore new business opportunities including the evaluation of land and producing property acquisitions in the area. << CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND RETAINED EARNINGS (DEFICIT) (Unaudited) Three months ended March 31, ------------------------------------------------------------------------ (thousands of United States dollars) 1998 1997 ------------------------------------------------------------------------ EARNINGS (LOSS) Revenues Gross oil revenue $ 25,377 $ 34,492 Government take 4,259 9,937 ------------------------------------------------------------------------ Net oil revenue 21,118 24,555 Other 1,419 155 ------------------------------------------------------------------------ 22,537 24,710 ------------------------------------------------------------------------ Expenses Operating 5,515 5,294 Petroleum revenue tax 374 561 Exploration 8,626 957 General and administrative 2,061 1,258 Depreciation, depletion and amortization 10,035 8,169 ------------------------------------------------------------------------ 26,611 16,239 ------------------------------------------------------------------------ Earnings (loss) before tax (4,074) 8,471 Income tax expense 1,988 4,327 ------------------------------------------------------------------------ Earnings (loss) for the period $ (6,062) $ 4,144 ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------------------------------------------ Earnings (loss) per common share $ (0.07) $ 0.06 ------------------------------------------------------------------------ ------------------------------------------------------------------------ RETAINED EARNINGS (DEFICIT) Balance, beginning of period $ (5,695) $ 42,757 Earnings (loss) for the period (6,062) 4,144 ------------------------------------------------------------------------ Balance, end of period $ (11,757) $ 46,901 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (see note to consolidated financial statements) CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three months ended March 31, ------------------------------------------------------------------------ (thousands of United States dollars) 1998 1997 ------------------------------------------------------------------------ OPERATING ACTIVITIES Earnings (loss) for the period $ (6,062) $ 4,144 Non-cash items included in earnings (loss): Depreciation, depletion and amortization 10,035 8,169 Exploration expense 8,626 957 Deferred income taxes 513 2,425 ------------------------------------------------------------------------ Cash generated from operations 13,112 15,695 Changes in non-cash working capital (648) (521) ------------------------------------------------------------------------ 12,464 15,174 ------------------------------------------------------------------------ INVESTING ACTIVITIES Capital expenditures and exploration expenses (42,266) (47,298) Acquisition of Gulf Resources (Kakap) Ltd. 0 (105,137) Changes in non-cash working capital (8,506) 23,982 ------------------------------------------------------------------------ (50,772) (128,453) ------------------------------------------------------------------------ FINANCING ACTIVITIES AND DIVIDENDS Proceeds from issue of long-term debt 38,900 10,000 Debt placement costs (69) (6,802) Changes in non-cash working capital (557) 107,510 Other 250 0 ------------------------------------------------------------------------ 38,524 110,708 ------------------------------------------------------------------------ Increase (decrease) in cash 216 (2,571) Cash at beginning of period 107,231 10,579 ------------------------------------------------------------------------ Cash at end of period (1) $ 107,447 $ 8,008 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (1) Comprises cash and short-term investments. (see note to consolidated financial statements) CONSOLIDATED STATEMENTS OF FINANCIAL POSITION March 31, December 31, 1998 1997 ------------------------------------------------------------------------ (thousands of United States dollars) (Unaudited) ------------------------------------------------------------------------ ASSETS Current Cash and short-term investments $ 107,447 $ 107,231 Accounts receivable 40,593 40,773 Account receivable - parent / affiliates 24 258 Inventory and other current assets 24,030 25,062 ------------------------------------------------------------------------ 172,094 173,324 Deferred charges 13,301 13,482 Property, plant and equipment 603,585 579,980 ------------------------------------------------------------------------ $ 788,980 $ 766,786 ------------------------------------------------------------------------ ------------------------------------------------------------------------ LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable 41,410 51,163 Other current liabilities 4,296 5,700 ------------------------------------------------------------------------ 45,706 56,863 Long-term debt 189,300 150,400 Deferred income taxes 66,454 65,941 ------------------------------------------------------------------------ 301,460 273,204 ------------------------------------------------------------------------ Shareholders' equity Share capital 499,277 499,277 Deficit (11,757) (5,695) ------------------------------------------------------------------------ 487,520 493,582 ------------------------------------------------------------------------ $ 788,980 $ 766,786 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (see note to consolidated financial statements) SUPPLEMENTARY INFORMATION (Unaudited) Three months ended March 31, ------------------------------------------------------------------------ 1998 1997 ------------------------------------------------------------------------ CRUDE OIL VOLUMES SOLD (1) (gross/net) (thousands of barrels per day) Onshore 14.5 / 10.9 13.3 / 10.1 Offshore 6.6 / 6.6 4.3 / 2.5 ------------------------------------------------------------------------ 21.1 / 17.5 17.6 / 12.6 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (1) ''Gross'' sales reflects the Company's interest prior to the deduction of government take; ''net'' sales is after deduction of government take. CRUDE OIL GROSS AVERAGE PRICES (dollars per barrel) Onshore 13.11 21.42 Offshore 13.95 22.71 ------------------------------------------------------------------------ Average 13.37 21.74 ------------------------------------------------------------------------ ------------------------------------------------------------------------ NET CRUDE OIL REVENUE (thousands of dollars) Onshore 17,037 25,704 Offshore 8,340 8,788 ------------------------------------------------------------------------ 25,377 34,492 Less: Government take Onshore (4,259) (6,289) Offshore 0 (3,648) ------------------------------------------------------------------------ Net oil revenue 21,118 24,555 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Gulf Indonesia Resources Limited 20th - 24th Floor, Wisma 46 Kota BNI Jalan Jenderal Sudirman Kavling 1 Jakarta 10020 6221/574-2120 or 1700 Lincoln, Suite 5000, Denver Colorado 80203 303/813-3800 ------------------------------------------------------------------------ Shareholder Questions Can be Answered by Contacting the Company's Transfer Agent The Bank of New York 1-800-524-4458 E-mail Address: Shareowner-svcs@bankofny.com Address Shareholder Inquiries To: Shareholder Relations Department - 11E PO Box 11258 Church Street Station New York, New York 10286 Answers to many of your shareholder questions and requests for forms are available by visiting The Bank of New York's Website: stock.bankofny.com ------------------------------------------------------------------------ This report contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although GRL believes that its expectations are based on reasonable assumptions, these assumptions are subject to a wide range of business risks, and there is no assurance GRL's objectives will be achieved.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:17:00 PM From: Arnie   Respond to of 15196   FIELD ACTIVITIES / Nal Oil & Gas Trust reports Drilling Results CALGARY, April 28 /CNW/ - NAL Oil & Gas Trust (''NAL'') announced today, results from first quarter 1998 drilling. At the Surmont/Hangingstone area in Northeastern Alberta, 21 wells were drilled, resulting in 20 wells cased for gas production. To date, 10 of these wells have been connected and are producing. It is anticipated that the remaining 10 wells will be connected by mid year. The Trust's share, when all 20 wells are on production, is estimated to be 1.2 million cubic feet per day. At Joffre, in Central Alberta, two horizontal re-entry wells have been completed, one in the D-2 Unit and one in the D-3 Unit which was acquired in late 1997. The D-2 Unit well is on stabilized production at a rate of 155 barrels of oil per day (BOPD), with the Trust's share being 70 BOPD. Initial production testing of the D-3 Unit well indicates that the well is capable of production rates in excess of 2,000 BOPD, which confirms the high quality of this asset. It is anticipated that this well will initially be produced at approximately 1,250 BOPD. A second horizontal well was spudded on April 24th and results are expected by June 15, 1998. The possibility of drilling a third well will be based on extensive testing of the first two wells. The Trust has a 43.9 percent working interest in the Joffre D-3 Unit.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:19:00 PM From: Arnie   Respond to of 15196   DIVIDEND / Petro-Canada CALGARY, April 28 /CNW/ - The Board of Directors of Petro-Canada today declared a quarterly dividend of 8 cents per share on its common and variable voting shares, payable on July 1, 1998 to shareholders of record on June 3, 1998. Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and the downstream sectors of the industry. Its common and variable voting shares trade on Canadian exchanges under the symbol PCA, and its variable voting shares trade on the New York Stock Exchange under the symbol PCZ.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:21:00 PM From: Arnie   Respond to of 15196   ENERGY TRUSTS / Optus Natural Gas Distribution Income Fund CALGARY, April 28 /CNW/ - OPTUS Natural Gas Distribution Income Fund announced today that it will make a monthly cash distribution of $0.1667 per trust unit on May 15, 1998 to unitholders of record on May 8, 1998. The cash distribution consists of approximately $0.12175 interest income and $0.04415 return of capital. OPTUS Natural Gas Distribution Income Fund is a Toronto Stock Exchange listed (OPT.UN) income trust which through Direct Energy Marketing Limited is Canada's largest independent natural gas marketing company, currently distributing natural gas to approximately 500,000 residential and small business customers in Ontario, Manitoba and Quebec. Direct Energy Marketing Limited supplies approximately 750 mmcf of gas per day to industrial, institutional and utility customers in North America. OPTUS has no external term debt and a market capitalization of $240 million.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:23:00 PM From: Arnie   Respond to of 15196   FINANCING / Probe Exploration secures Credit Facility CALGARY, April 28 /CNW/ - Probe Exploration Inc. (PRX-TSE) is pleased to announce that it has arranged a new demand credit facility with the Bank of Montreal in the amount of $100 million. ''This $100 million facility provides Probe with the necessary capital to expand its 1998 capital budget from the currently approved $53,000,000 to a proposed $70,000,000,'' says Stephen Gibson, President of Probe. Accordingly, Probe plans to expand its development drilling program at Leduc. The arrangement was entered into on April 21, 1998. Probe Exploration Inc. is a publicly traded exploration and development company based in Calgary, Alberta. The Company's activities are focused on oil and gas exploration and production in high-reward areas in central Alberta and Saskatchewan.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:25:00 PM From: Arnie   Respond to of 15196   SERVICE SECTOR / Akita Drilling reports 1st 3 months Results CALGARY, April 28 /CNW/ - AKITA Drilling Ltd. announced today that net earnings for the three months ended March 31, 1998 were $4,639,000 or $0.49 per share on revenue of $30,211,000. Comparative figures for 1997 were earnings of $2,911,000 or $0.31 per share on revenue of $23,551,000. Cash flow for the period was $6,159,000 or $0.65 per share as compared to $3,953,000 or $0.41 per share in 1997. The earnings and cash flow are record results for a first quarter for AKITA. An early break-up in 1998 contributed to reduced first quarter utilization of 75.3% for AKITA, which was down from 80.4% in the corresponding period in 1997. Nevertheless, strong market conditions, which prevailed throughout 1997, continued into the first quarter of 1998.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:28:00 PM From: Arnie   Respond to of 15196   GENERAL INTEREST / Templeton Management purchase of Renaissance Energy TORONTO, April 28 /CNW/ - Templeton Management Limited, a corporation incorporated under the laws of the Province of Ontario, on its own behalf and on behalf of its affiliates, Templeton Global Advisors Limited, a Bahamian corporation and Templeton Investment Counsel, Inc., a Florida corporation (the ''Templeton Affiliates'') announced today that various investment funds and institutional accounts for which Templeton Affiliates serve as investment advisor have, in transactions on the Toronto Stock Exchange completed on April 27, 1998, purchased 150,300 shares of Renaissance Energy Ltd. The shares, together with previously acquired shares, represent 10.08% of the issued shares of such class. These purchases have been made for investment purposes. Investment funds and institutional accounts managed by Templeton may, subject to market conditions, make additional investments in or dispositions of securities of Renaissance Energy Ltd. in the future. Templeton does not, however, intend to acquire 20% of the outstanding securities of any class of Renaissance Energy Ltd.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:30:00 PM From: Arnie   Respond to of 15196   ENERGY TRUSTS / Nal Oil & Gas Trust announce Distribution Date CALGARY, April 28 /CNW/ - NAL Oil & Gas Trust (''NAL'') announces today that May 1, 1998 is the effective record date for its May 15, 1998 cash distribution to Unitholders.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:32:00 PM From: Arnie   Respond to of 15196   NAME CHANGE / Wainoco changes Name to Frontier Oil Corporation HOUSTON, April 28 /CNW/ -- Wainoco Oil Corporation (NYSE: WOL) today announced that the name of the Company has been changed to Frontier Oil Corporation (NYSE: FTO). Trading of the Company's common stock under the new name and symbol will begin on April 29, 1998. The change was made because the name Wainoco is associated with the Company's previous exploration and production operations and the Company currently operates almost exclusively in crude oil refining and the wholesale marketing of refined petroleum products. The name "Frontier" has been identified with the Company's refining operations since 1991 when it acquired the Frontier Refinery located in Cheyenne, Wyoming. Frontier has operated in the Rocky Mountains since 1940 and is strongly identified with refining and marketing in the Rocky Mountain region. Frontier Oil Corporation conducts crude oil refining and wholesale marketing of refined products through its subsidiaries on the eastern slope of the Rocky Mountains. Frontier's common shares are listed on the New York Stock Exchange.

To: Kerm Yerman who wrote (10408) 4/28/1998 10:35:00 PM From: Arnie   Respond to of 15196   ENERGY TRUSTS / Athabasca Oil Sands Trust reports Distribution CALGARY, April 28 /CNW/ - The Board of Directors of Athabasca Oil Sands Investments Inc. today announced a first quarter distribution of $0.05 per Trust Unit for unitholders of the Athabasca Oil Sands Trust. The distribution is payable on May 15, 1998 to unitholders of record as of May 8, 1998. The distribution reflects substantially lower crude oil prices and the advancement of the Syncrude annual coker maintenance shutdown from the second to the first quarter. Considerably lower revenues, combined with higher operating expenses and capital expenditures more than offset reduced Crown Royalties during the quarter. Athabasca's sales volumes averaged approximately 20,800 barrels per day during the first quarter, 1,000 barrels per day day below first quarter 1997 sales. However, first quarter 1998 volumes were 200 barrels per day ahead of second quarter 1997, a more comparable period that included a coker shutdown. The prices Athabasca received per barrel of Syncrude Sweet Blend averaged $22.24 per barrel at the plant gate in the first quarter, compared to $30.63 a year earlier. Including the effects of hedging, Athabasca received an average price of $21.02 per barrel compared to $30.69 per barrel in the first quarter 1997. ''We believe that our strategy of funding our share of capital expenditures through internally generated cash flow and prudent levels of future borrowing will significantly enhance unitholder value,'' says Athabasca President and CEO Harry Herbst. ''While this may result in lower short-term distributions, the growth in the underlying value of Athabasca's 11.74 per cent Syncrude interest will accrue to the existing 27 million units.'' Syncrude is currently forecasting 1998 production of 80 million barrels or approximately 9.4 million barrels (25,700 barrels per day) net to Athabasca. Assuming that this and other budgeting assumptions are achieved and that an average annual WTI price of $US17 per barrel is received, Athabasca anticipates that full-year distributions will be approximately $0.75; at an average WTI price of $16 per barrel, the distribution would be approximately $0.30. Interim Report for the Three Months Ended March 31, 1998 Results from Operations Athabasca's Syncrude Sweet Blend revenues were $38.4 million for the first quarter of 1998, $21 million lower than the same period last year, reflecting substantially lower crude oil prices and the advancement of the Coker 8-1 maintenance shutdown into the first from the second quarter. Prices received for Syncrude Sweet Blend averaged approximately $22.24 per barrel at the plant gate compared to $30.63 per barrel in 1997. Athabasca's average price received in the quarter after including the effects of currency hedging, was $21.02 per barrel, down from $30.69 per barrel a year earlier. Sales volumes of approximately 20,800 barrels per day, were down 1,000 barrels per day from a year earlier, but 200 barrels per day ahead of the more comparable second quarter 1997, which included an annual maintenance shutdown. Operating expenses were higher quarter-over-quarter as a result of the shutdown but lower than anticipated natural gas costs and reduced shutdown expenditures resulted in lower operating expenses compared to the second quarter of 1997. There were no Crown Royalties paid in the quarter, reflecting a reduced net profit combined with a royalty credit for 43 per cent of capital expenditures. Depletion, depreciation and amortization increased, reflecting the retirement of certain assets in January. Cash Flows Athabasca's share of capital expenditures in the first quarter was $9.8 million, $1.9 million higher than first quarter 1997 but $2 million below budget. This was primarily due to reduced expenditures on the North Mine combined with cost savings and deferred projects in the base plant, partially offset by higher expenditures on the Aurora Mine and engineering for the anticipated upgrader expansion. Distributable Income Distributable income is directly related to the royalty that the Trust receives from Athabasca Oil Sands Investments Inc. The Trust Royalty is the net result of Syncrude operations, capital and the administrative costs and expenses associated with Athabasca. Management may at times hold back certain funds as a reserve to meet future cash needs. This year the cash reserve was drawn down by $8.7 million to fund part of the capital expenditures and production costs during the quarter. Athabasca's management believes that re-investing cash flow from Syncrude back into the project will significantly enhance the fundamental value of the Trust Units. Consequently, Athabasca plans to fund its share of capital expenditures through internally generated cash flow and by prudent levels of future borrowing. While this may result in lower short-term distributions, the growth in the underlying value of Athabasca's 11.74 per cent interest in the Syncrude Project will accrue to the holders of the existing 27,000,000 units. Considerably lower revenues, combined with higher operating expenses and capital expenditures, more than offset the reduced Crown Royalties in the first quarter, resulting in a distribution of $0.05 per Trust Unit. This compares to $0.45 per unit in first quarter of 1997 and $0.20 per unit in the more comparable second quarter of 1997. The distribution is payable on May 15, 1998, to unitholders of record at the close of business on May 8, 1998. Liquidity and Capital Resources Working capital at March 31, 1998 was approximately $10.3 million lower than at December 31, 1997, reflecting a decrease in cash and accounts receivable, partially offset by a lower distribution to unitholders. The decrease in cash reflects the additional expenditures incurred during the shutdown, while the decrease in accounts receivable reflects the drop in crude oil prices. On April 2, 1998, Athabasca finalized a new $100 million committed credit facility and a $10 million revolving credit facility, replacing the previous $50 million facility and providing both increased capacity and lower costs for Athabasca. Risk Management Athabasca's results from operations are affected by the exchange rate between the Canadian and U.S. dollars. To reduce the impact of exchange rate fluctuations on revenues, Athabasca attempts to hedge its exposure by issuing U.S. dollar-denominated debt and by entering into foreign exchange contracts. In the fourth quarter of 1996, Athabasca entered into foreign exchange contracts to sell U.S. dollars in the amount of $54 million, $84 million, $84 million and $96 million in 1998, 1999, 2000 and 2001 respectively, at exchange rates between US$0.765 and US$0.770 to C$1.00. Based on the March 31, 1998 exchange rate of US$0.704, had these contracts been settled for cash, the loss would have been about $28.5 million. Syncrude Syncrude shipped 15.8 million barrels of Syncrude Sweet Blend during the first quarter, down 1.6 million barrels from a year earlier due to the advancement of the coker shutdown from April to January. The shutdown was successfully completed on time and under budget in mid-February and operations have been stable since the return to service. Equivalent Syncrude Sweet Blend in tankage, essentially representing bitumen inventory at the end of the quarter, was 2.6 million barrels, up 1.4 million barrels from 1997 volumes. Athabasca expects this bitumen inventory will be upgraded to Syncrude Sweet Blend in the second quarter. The North Mine expansion is proceeding on time and on budget with start-up of the second mine train (the mining and processing equipment required to recover, prepare and transport ore for extraction) scheduled to occur in mid-1999. Syncrude received final Alberta Government approval for new mine development on the Aurora leases by an Order in Council in March; full owner approval is anticipated in June. Income Taxes As a result of Athabasca Oil Sands Trust's significant tax pools, unitholder distributions are expected to continue to be treated as return of capital for approximately the next three years, reducing an investor's cost base by the amount of distributions received. Outlook The Syncrude production target for 1998 remains at 80 million barrels. Athabasca's share of this target, if achieved, would be 9.4 million barrels or an average of 25,700 barrels per day. Syncrude has responded to date to the current low oil price environment by decreasing its expected capital expenditure program to approximately $525 million from $631 million in the original budget. As a result of the continuing weak oil prices, Athabasca expects full year 1998 distributions per Trust Unit will be approximately $0.75 if WTI prices average US$17.00 per barrel and approximately $0.30 if WTI prices average US$16.00 per barrel if volumes, operating costs and other budget projections are met. On behalf of the Board of Directors of Athabasca Oil Sands Investments Inc., Walter B. O'Donoghue Harry R. Herbst Chairman President and Chief Executive Officer April 28, 1998 << Consolidated Balance Sheets March 31, December 31, 1998 1997 (unaudited) ------------------------------------------------------------------------ (thousands of dollars) ------------------------------------------------------------------------ ASSETS Current assets: Cash $9,179 $29,169 Accounts receivable 19,470 23,876 Inventories 16,171 14,510 Prepaid expenses 799 383 ------------------------------------------------------------------------ 45,619 67,938 Reclamation trust 1,106 970 Capital assets, net 374,677 372,684 Deferred charges 3,832 4,675 ------------------------------------------------------------------------ $425,234 $446,267 ------------------------------------------------------------------------ LIABILITIES AND UNITHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities $24,206 $25,167 Unit distribution payable 1,350 13,500 Current portion of other liabilities 3,032 1,986 ------------------------------------------------------------------------ 28,588 40,653 Other liabilities 12,996 14,518 Long-term debt 105,433 106,226 Future site restoration and reclamation costs 12,941 13,042 Preferred shares of subsidiary 2,400 2,400 ------------------------------------------------------------------------ 162,358 176,839 ------------------------------------------------------------------------ Unitholders' equity Trust units 254,975 254,975 Retained earnings 7,901 14,453 ------------------------------------------------------------------------ 262,876 269,428 ------------------------------------------------------------------------ $425,234 $446,267 ------------------------------------------------------------------------ Consolidated Statements of Loss and Retained Earnings (Unaudited) Three months ended March 31, -------------------------------- 1998 1997 ------------------------------------------------------------------------ (thousands of dollars, except per unit amounts) ------------------------------------------------------------------------ Revenues: Syncrude Sweet Blend $38,377 $59,393 Other 218 202 ------------------------------------------------------------------------ 38,595 59,595 ------------------------------------------------------------------------ Expenses: Operating 32,695 27,422 Administration and other 529 940 Crown royalties 0 7,292 Finance charges 2,274 1,084 Depletion, depreciation and amortization 8,140 5,915 Dividends on preferred shares of subsidiary 90 66 ------------------------------------------------------------------------ 43,728 42,719 ------------------------------------------------------------------------ Income (loss) before taxes (5,133) 16,876 Capital and other taxes 69 88 ------------------------------------------------------------------------ Net income (loss) for the period (5,202) 16,788 Retained earnings, beginning of period 14,453 2,329 Unit distributions (1,350) (12,150) ------------------------------------------------------------------------ Retained earnings, end of period $7,901 $6,967 ------------------------------------------------------------------------ Net income (loss) per Trust Unit $(0.19) $0.62 ------------------------------------------------------------------------ Consolidated Statements of Changes In Financial Position (Unaudited) Three months ended March 31, ------------------------------ 1998 1997 ------------------------------------------------------------------------ (thousands of dollars) ------------------------------------------------------------------------ Cash provided by (used in): Operations: Net income (loss) $(5,202) $16,788 Items not involving cash: Depletion, depreciation and amortization 8,191 5,959 Site restoration costs (379) (308) Contribution to reclamation trust (136) (122) Change in non-cash working capital 1,336 3,629 ------------------------------------------------------------------------ 3,810 25,946 ------------------------------------------------------------------------ Investments: Capital assets (9,824) (7,933) ------------------------------------------------------------------------ Sub-total (6,014) 18,013 ------------------------------------------------------------------------ Financing: Net restricted cash 0 162 Deferred financing costs 0 (220) Decrease in other liabilities (476) (237) ------------------------------------------------------------------------ (476) (295) ------------------------------------------------------------------------ Other: Unit distributions paid (13,500) (21,600) ------------------------------------------------------------------------ (13,500) (21,600) ------------------------------------------------------------------------ Decrease in cash (19,990) (3,882) Cash, beginning of period 29,169 29,566 ------------------------------------------------------------------------ Cash, end of period $9,179 $25,684 ------------------------------------------------------------------------ Statements of Trust Royalty and Distributable Income (Unaudited) Three months ended March 31, -------------------------------- 1998 1997 ------------------------------------------------------------------------ (thousands of dollars, except per unit amounts) ------------------------------------------------------------------------ Revenues and expenses of Athabasca Oil Sands Investments Inc. Revenues $38,593 $59,592 Operating expenses (32,695) (27,422) Administration and other (343) (792) Crown royalties 0 (7,292) Interest on long-term debt (2,253) (1,040) Capital taxes (69) (88) ------------------------------------------------------------------------ 3,233 22,958 ------------------------------------------------------------------------ Capital expenditures (9,824) (8,517) Site restoration costs (379) (308) Mining reclamation trust (136) (122) Financing costs 0 (220) Reserve - future operations 8,655 (1,372) ------------------------------------------------------------------------ Base for Trust Royalty $1,549 $12,419 ------------------------------------------------------------------------ Trust Royalty @ 99% $1,534 $12,295 Interest income of Trust 2 3 Administrative expenses of Trust (186) (148) ------------------------------------------------------------------------ Distributable income from operations $1,350 $12,150 ------------------------------------------------------------------------ Distributable income from operations per Trust Unit $0.05 $0.45 ------------------------------------------------------------------------ >>

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