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

To: Kerm Yerman who wrote (10488)	5/1/1998 11:41:00 AM
From: Kerm Yerman	Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING THURS., APRIL 30, 1998 (2) OIL & GAS Oil Prices Stage Late Rally Before Holiday LONDON, April 30 - World oil prices gained on Thursday but the technically inspired advances looked precarious against a backdrop of stubborn global oversupply, dealers said. World benchmark North Sea Brent blend settled 21 cents up at $14.46 a barrel on the London futures market, just two cents off the high. Dealers said the gains were driven by a perception in U.S. markets that crude was oversold, triggering a corrective rally. The rally in the last 20 minutes of trade derived momentum from some dealers rushing to settle trading positions before a long holiday weekend. Dealers saw no news that influenced the rally, shrugging off a statement by U.S. President Bill Clinton that he was encouraged by Iraqi cooperation with some U.N. weapons inspections. Clinton added at a news conference he was waiting for the Pentagon to recommend a reduction in U.S. forces in the Gulf. If Iraq continued to cooperate, the United Nations might be able to certify compliance on its nuclear weapons programs by October, he added. Calls by OPEC members this week for world producers to make further reductions in output of up to one million barrels of oil per day appeared to have been factored into a market unwilling to show bullishness in the absence of substantiated evidence. ''We now need to see the cuts actually happening. I think it (OPEC output cut calls) are pretty much factored into the market by now. We were looking for an excuse to move higher and the news gave us that chance,'' said one trader on the London futures market. OPEC technical experts have scheduled to meet in Vienna on June 15 to discuss the market situation ahead of the producer group's summer ministerial conference nine days later. The Economic Commission Board, which draws representatives from each of OPEC's 11 member countries, recommends future action to OPEC ministers based on world supply, demand and output figures. Some market watchers were awaiting Iraqi reaction to the continuation of U.N. sanctions against Baghdad and anticipated some trouble that could bolster oil prices. ''The Iraqis have been making some unhappy noises recently. If there is a standoff like the last one over the inspection of sites, then we're probably looking at a firmer market,'' said one trader. Iraq's Deputy Prime Minister Tareq Aziz on Wednesday accused U.N. arms inspectors of treating President Saddam Hussein's compounds as if they were ''normal sites,'' allowing themselves the right of access to them as ''an absolute right to be exercised without any regard'' for special procedures agreed with Secretary-General Kofi Annan. In a letter to Annan, the Iraqi minister did not threaten to cut off access to the eight presidential sites that nearly caused a bombing raid by the United States and Britain, but appeared to be building a case to limit the visits. Prices in dollars per barrel: NYMEX Crude Gains At Close On Late Short-Covering NEW YORK, April 30 - Crude oil futures recovered in the last minutes of trading at the New York Mercantile Exchange (NYMEX) Thursday, boosted by late short-covering, traders said. Front-month crude settled at $15.39 a barrel, up seven cents, after staying down most of the day, dipping to a low of $15.06 in the afternoon. The contract traded at a high of $15.49, mostly on technical buying. ''There was short-covering on gasoline ahead of the May contract expiry and crude was swept up in the process,'' said a New York-based analyst. A NYMEX floor trader added: ''The market overreacted to the gasoline build on Wednesday.'' He was referring to an unexpected build in gasoline stocks for the past week reported in a government stock inventory report that triggered a sell-off on Wednesday. While OPEC talk that started days ago on the need to further reduce output continued to be watched, the initial bullish effect had faded, another trader said. But with the approach of the group's June semi-annual meeting, ''you can't discount that it (the meeting) will generate some optimism,'' the trader said. ''Overall, crude oil has been meandering in the past two weeks, testing the $15 on the downside, rallying early this week and then falling apart,'' noted Tim Evans of Pegasus Econometric Group. ''I think today's turnout was more of the same, with no trend developing.'' he added. Traders gave scant attention to a statement by President Bill Clinton that he was encouraged by Iraqi cooperation with some U.N. inspections and was waiting for the Pentagon to recommend a reduction in U.S. forces in the Gulf. ''The statement had no connection with the market performance today,'' said a NYMEX trader. The May gasoline contract settled at 49.95 cents a gallon, off 0.96 cent. The June contract rose 0.22 cent at 52.46 cents a gallon. Nearby months also gained. The May heating oil contract, which also expired on the day, finished down 0.33 cent at 42.75 cents a gallon while the June contract ended up 0.57 at 44.21. Nearby months also rose. ''Heating oil stocks are at an equilibrium,'' Evans said, adding that if the product wakes up and goes along with a break to the upside, the market may see a broad rally. In London, IPE Brent crude futures closed up sharply toward the highs on Thursday, boosted by momentum from some dealers rushing to settle trading positions before the long Labor Day weekend in Europe. June Brent rose 21 cents at $14.48 a barrel. On refinery news, the government of Newfoundland, Canada, approved a Friday restart for Vitol SA's refinery at Come By Chance that was shut down after a deadly fire on March 25, a provincial fire official told Reuters on Thursday. The 105,000 barrel per day plant would begin the slow process of powering back up following the long outage, Newfoundland Fire Commissioner Fred Hollett said. ''The startup is initiating tomorrow. Of course, to get one of those things running is a seven- to 10-day exercise,'' Hollet said. NYMEX Hub Natural Gas Ends Lower On Mild Temps NEW YORK, April 30 - NYMEX Hub natural gas futures, pressured by a bearish inventory report and mild weather forecasts, ended lower Thursday in an active session, but a late wave of short covering brought prices off the lows. June skidded 7.7 cents to close at $2.221 per million British thermal units after tumbling this afternoon to $2.152. July settled 6.6 cents lower at $2.267. Other deferreds ended down by one-half to 5.5 cents. "The AGAs really hurt the market. Once June broke $2.25, a lot of sell stops were triggered, but there was major marketer support under $2.16 per tick. When the downside finally stalled, people started covering out," said one Midwest trader. AGA stock data released Wednesday showed an unexpected 64 bcf weekly build. Overall storage jumped to 345 bcf, or 40 percent, above last year, and with spreads still favoring injections, many expect the year-on-year gains to continue in coming weeks. In addition to the growing storage surplus, traders said mild weather forecasts and crumbling cash prices also helped undermine sentiment this week. Above-normal temperatures are expected to cover most of the East, Midwest and Texas into midweek next week, but traders said levels were not likely to be hot enough to stir much demand. Cooler weather was forecast for the Southwest. Also undermining sentiment was talk that some forecasters were now saying the El Nino phenomenon may not dissipate as soon as expected, possibly delaying the onset of their warmer summer outlook until late July or August. Technically, June broke key trendline support this morning in the $2.24-2.25 area, triggering a flood of selling that drove the spot contract to just above major support at the March 16 low of $2.16. June briefly pierced $2.16 this afternoon, but most chartists needed a close below that level to expect a test of the $2.05 double bottom from January. June resistance was pegged first at yesterday's high of $2.355 and then in the $2.39 area which now is the 50 percent retracement point of the recent selloff. More selling was expected at the $2.63 double top. In the cash Thursday, Gulf Coast prices tumbled more than a dime to the mid-teens. Midwest values were down almost 10 cents to about $2.10. Gas at the Chicago city gate was about a nickel lower in the low-$2.30s, while New York was down a dime to the low-$2.40s. The NYMEX 12-month Henry Hub strip fell 3.7 cents to $2.387. NYMEX said an estimated 105,955 contracts traded, up sharply from Wednesday's revised tally of 40,158. U.S. Spot Natural Gas Prices Skid On Storage NEW YORK, April 30 - U.S. spot natural gas prices for May mostly lost about a dime Thursday, pressured by fairly mild weather forecasts and a bearish weekly inventory report released Wednesday, industry sources said. And with stocks now about 40 percent over year-ago levels and no hot weather on the horizon, most traders expect more pressure near-term. "The storage number certainly didn't help, and fundamentally, May is still a shoulder month," said one Texas based trader, adding only hot, summer-like temperatures could stem the bearish tide now. Gulf Coast prices skidded 10-12 cents today to the mid-teens per mmBtu, more than a dime under April indices. AGA reported Wednesday that U.S. gas stocks rose last week by 64 bcf, well above Reuter poll estimates in the 40-50 bcf range. Overall storage jumped to 345 bcf above a year ago, and many traders, citing still favorable spreads, expect the year-on-year gains to continue in coming weeks. Above-normal temperatures are forecast for most of the East, Midwest and Texas through early next week, but traders said levels were not likely to be hot enough to stir much demand. Cooler weather was forecast for the Southwest. Also undermining sentiment was talk that some forecasters were now saying the El Nino phenomenon may not dissipate as soon as expected, possibly delaying the onset of their warmer summer outlook until late July or August. In the Midcontinent, swing quotes were eight cents lower at about $2.10, six cents under April 1 levels. Spot gas at the Chicago city gate was a nickel lower in the low-$2.30s. South Texas prices tumbled almost 10 cents to the $2.10-2.15 area, about a dime under index. In west Texas, Permian slipped more than a nickel to about $2.04-05, while San Juan lost about 10 cents to the low-$1.90s. Quotes at the southern California border were more than 10 cents lower in the low-$2.20s amid cooler western forecasts. In the Northeast, gas at the New York city gate was about a dime lower in the low-$2.40s, while Appalachian supply on Columbia fell a similar amount to the low-$2.30s. Canadian Natural Gas Prices Retreat With NYMEX NEW YORK, April 30 - Canadian spot natural gas prices recoiled from earlier highs on Thursday in pursuit of the shrinking NYMEX contract, traders said. Spot gas at the AECO storage hub in Alberta was quoted fairly widely at C$2.00-2.06 per gigajoule (GJ), down from about C$2.07-2.09 on Wednesday. "It was off with NYMEX. The forwards were pretty quick to follow," one Calgary based trader said, referring to the $2.152 low in June futures today, indicating a loss of 13.3 cents on the day. AECO prices through May were quoted at C$2.00-2.04 per GJ. However, upcoming maintenance outages in May will likely tighten the market, thereby keeping prices firm, sources said. At the export points, Sumas prices retreated at least five cents to US$1.62-1.70 per million British thermal units (mmBtu), with most business reported done at C$1.65. Meanwhile, eastern export prices at Niagara fell more than 10 cents to near US$2.30 per mmBtu following the downward spiral on NYMEX.

To: Kerm Yerman who wrote (10488)	5/1/1998 11:57:00 AM
From: Kerm Yerman	Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING THURS., APRIL 30, 1998 (3) TOP STORIES Northstar Energy Bucks Loss Trend With Plant Sale The Financial Post A gain from selling its 48% interest in an Ontario co-generation plant enabled Northstar Energy Corp. to buck the trend and post a profit in the first quarter. The Calgary-based energy producer said yesterday it posted a profit of $30.2 million (44› a share) on revenue of $53.2 million for the three months ended March 31. The sale of the Windsor, Ont., energy plant added a $40.1-million pretax gain. This compares with earnings of $37.9 million (44›) on revenue of $70.6 million in the same period last year. First-quarter cash flow dropped 43% to $27.1 million (40›), down from $47.8 million (55›). Higher gas production was offset by lower oil volumes and soft commodity prices. President and chief executive officer John Hagg told the annual meeting the sale of $75 million of assets, announced this month, will result in the company flowing a daily average of 19,500 barrels of oil and liquids, plus 230 million cubic feet of natural gas. Daily production averaged 21,700 barrels of oil and 204 million cubic feet of gas in 1997. Hagg declined to comment on the chance of commercial success of three deep wells in the Rocky Mountain foothills of southern Alberta. "If we get a couple of 200, 300 or 400 billion cubic feet discoveries down there it's going to have a significant impact on our net asset value." David Holtby, analyst with L‚vesque Beaubien Geoffrion Inc. in Calgary, said a big Foothills discovery would light up Northstar's stock. However, he warned the deep targets sometimes can't be tapped because the gas-bearing formation is tight, which reduces the flow of gas. Westcoast Plans $2B In Capital Spending The Financial Post Westcoast Energy Inc. said yesterday it will spend $2 billion over the next 18 months on capital projects in Canada and abroad. Chairman and chief executive Michael Phelps told the annual meeting in Vancouver almost a quarter of the planned spending will take place in British Columbia. "There is a broad unease in the province about declining business levels," Phelps said, adding the company will spend $400 million to expand its pipeline and field service operations in B.C. He called the move "an important endorsement of the opportunities in this province that we see for us." The Vancouver-based company also said subsidiary Westcoast Power Inc. has signed an agreement with New Brunswick Power Corp. to convert a power generation unit in Saint John to natural gas from heavy fuel oil. NB Power is owned by the New Brunswick government. The $140-million conversion is expected to be complete by the second quarter of 2000. In results released yesterday, Westcoast reported profit attributable to common shares of $103 million (99› a share) for the quarter ended March 31, compared with $122 million ($1.20) in the same period last year. Sales were $2 billion, down from $2.24 billion. Operating cash flow was $203 million, down from $220 million. The company said the drop in profit is a direct result of an unusually warm winter. Temperatures were 17% higher than normal in Ontario last winter, and 13.5% warmer in Manitoba. For 1997, the company reported profit after dividends of $210 million ($2.06), up from $193 million ($1.96) in 1996. Revenue was $7.31 billion, up from $4.88 billion. Pipeline Deliveries Boost IPL The Financial Post Increased pipeline deliveries helped boost IPL Energy Inc.'s first quarter earnings by 9% from last year, the Calgary based company said yesterday. Profit rose to $62.2 million (86› a share) for the three months ended March 31, up from $57 million (84›) in the same period a year earlier. Its energy transportation business contributed $33 million, compared with $29.6 million, because of additional deliveries and a better return from its recently completed Colombia pipeline project. IPL delivered 2.2 million barrels of oil and natural gas liquids a day up from two million last year. But earnings from its energy distribution business were down from $36.3 million to $35.6 million, reflecting the fact returns for its Consumers Gas unit were hit by a warmer winter as well as a lower rate of return on equity. President and chief executive Brian MacNeill said IPL is looking at cutting costs and other initiatives to offset the poorer results from this year's balmy winter weather IN THE NEWS Canadian 88 Energy Corp. of Calgary, Alberta, announced today a new deep natural gas discovery in the Caroline/Chedderville area of the foothills of West Central Alberta. The Company said today in Calgary that it has successfully completed the drilling and testing of its L.S.D. 3 ofSec. 16, Twp. 37, Rge. 7 W5M Leduc test well drilled to a total vertical depth of 3,570 meters (11,709 feet). The well has been flow tested with an A.O.F. of 30.2 mmcf/d of natural gas and is expected to be placed on production within the next four to six weeks at production rates of up to 10 mmcf/d and 150 barrels/day of natural gas liquids. The well is part of a large multi-well drilling program Canadian 88 currently has underway in the area. Ultra Petrroleum's reported that Winter wildlife restrictions on drilling and completion operations have been lifted on all Ultra acreage in the Jonah/Pinedale area of Sublette County, Wyoming. Permitting operations including staking and surveying of drill locations are under way in the Mesa area, where several delineation wells are planned in partnership with Halliburton Co. (NYSE:HAL). Completion operations are expected to begin over the next two weeks at the Mesa 15-8 and Lovatt Draw 15-8 wells. The Mesa 15-8, a joint venture with Western Gas Resources (NYSE:WGR), is located on the northern plunge of the Pinedale anticline and was completed in the four deepest zones before winter wildlife restrictions were implemented. Six more frac jobs are planned to complete the remaining 70% of the net pay in this well. The lowest zones produced 183,245 mcf of gas into the sales line in the first quarter of calendar 1998. Five fracs are planned in the Lovatt Draw 15-8, located west of the Pinedale anticline. This well is a joint venture with Green River Petroleum (ASE:GRP). Ultra is seeking to advance the "small footprint" concept of drilling, whereby multiple wells are directionally drilled from the same drill pad, thereby minimizing surface disturbance. The Company is applying for a permit to test this environmentally responsible idea by drilling confirmation wells from the Mesa 15-8 drill pad. London, Ontario-based Greentree Gas & Oil Ltd. spudded GGOL no.1 last week which is the first of three wells planned for the first half of 1998 in Norfolk County, Ontario. GGOL no.1 will test the Silurian Thorold sandstone at a depth of 1400 feet. Wells producing from the same geological horizon in the area have flowed in excess of 1 million cubicfeet of gas per day and have an average economic lifespan of 30 years. Greentree is also planning on drilling up to 5 wells in the 2nd half of 1998. The drilling program will be funded with a recently completed $800,000 flow-through share offering. Added production in the region will compliment Greentree's existing current production of approximately 425 Mcfgd. Greentree's properties host approximately 12 billion cubic feet of proven and probable reserves. The Company's current and rapidly expanding lease position will provide the basis for Greentree to conservatively increase production to 1.0 Mmcfgd and double reserves by exit 1998. Greentree is also reviewing pipeline expansion plans which will enable the Company to market 3 million cubic feet per day by the year 2000 from a region with a probable and potential reserve base of approximately 40 Bcf. The economics of this expansion are quite significant given that Ontario producers are receiving in the range of two to three times the Alberta wellhead price and netbacks are relatively high due to the added impact of low operating expenses and royalty rates. Greentree received an average net price of $3.96 per Mcf in 1997. Premium prices and overall high netbacks attained in Ontario contribute to Greentree's net present value of reserves of approximately $12 million (before income taxes and discounted at 10%) which equates to $1.20 per basic share. In addition to the operational activities in Norfolk County, exploratory work is planned for Greentree's leases in Essex, Kent and Lambton counties. The potential exists for high-productivity natural gas and light oil reserves in these areas. INTERNATIONAL Companies CityView Energy announced their 1st 3 months operations report. 1. Block GSEC74 Philippines- Offshore Sabah ARCO Philippines Inc, Preussag Energies gmbh, MMC Exploration & Production (Philippines) Pte Ltd (in which CityView Energy Corporation Limited has a 49% interest) and a consortium of Filipino resource companies hold Block GSEC74 adjacent to the border with Sabah East Malaysia. GSEC74 includes an area of approximately 12,000 square kilometres (3 million acres) in the Sandakan Basin which is filled mainly with Miocene-Pliocene age fluvial-deltaic sedimentary rocks. Twelve prospects have been identified on GSEC74 including the Hippo prospect on which well Hippo No. 1 was drilled. The well was drilled to a depth of 3,939 metres (12,924 feet) and significant hydrocarbon zones were encountered. For mechanical reasons ARCO was prevented from obtaining petrophysical data or conducting a drillstem test. A proposal for further work on the Hippo prospect and GSEC74 is being prepared by ARCO for submission to the consortium. 2. Simenggaris Block - Onshore north east Kalimantan On 24 February 1998 legal title to the Simenggaris Block was formally granted to Genindo Western Petroleum Pty. Ltd under a Production Sharing modified JOB contract with an exploration term of 10 years and a production term of 20 years. The Simenggaris Block comprises 2,734 square kilometres in the prolific oil and gas Tarakan Basin. Within the Block are two undeveloped gas discoveries: Sesayap and S. Sembakung. The Sesayap prospect is a fault closed 4,000 acre structure located on the western side of the Block. ARCO drilled the Sesayap A1 and A2 wells in the late 1970's. The A1 well tested 25 MMCFGPD and 65 BOPD from highly porous Upper Miocene sandstones reservoirs: the A2 well was a successful sidetrack. The S. Sembakung - 1 well tested 10 MMCFGPD and 110 BOPD from Upper Miocene age sandstone reservoirs. Numerous additional leads are present on the Block holding the potential for the discovery of multiple and mid-size oil and gas fields. Genindo Western Petroleum Pty. Ltd is owned 85% CityView Energy Corporation Limited and 15% PT Genindo Citra Perkasa. Participation interests are in the proportion 62.5% Genindo Western Petroleum Pty. Ltd and 37.5% Pertamina. 3. Timoforo Block - Onshore Irian Jaya Negotiations between Western Wisesa Petroleum Pty. Ltd and Pertamina on the contract terms for the 6,575 square kilometre Timoforo Block have been progressing throughout this quarter. The formal signing of the Production Sharing modified JOB contract is anticipated to take place in the second half of 1998. The Timoforo Block lies north of ARCO's mega gas discoveries in the Bintuni Basin and in close proximity to the future Tangguh LNG facility. The proposed 1998-99 work program for the Timoforo Block is to drill one test well to test the Timoforo anticline which has a closure of 8-20,000 acres. The anticline is well defined by radar and aerial photographs and the structure has been confirmed by ground mapping. Western Wisesa Petroleum Pty Ltd is owned 85% CityView Energy Corporation Limited and 15% PT. Septapetra Wisesa. 4. Madura Block - Onshore Madura Island Planning for the four exploration wells to be drilled back to back continued during the quarter. Drilling has been rescheduled to commence in September 1998. The two primary prospects are the Karasan prospect, a 2,000-3,000 acre structure at the Prupuh limestone level located on the western side of the block, and the Sebaya prospect, a large faulted anticlinal feature located on the eastern side of Madura. The Block is held by Western Madura Pty. Ltd which is owned 100% CityView Energy Corporation Limited. Participation interests are in the proportion 65% Western Madura Pty. Ltd and 35% Pertamina. 5. Tuba Obi East Block - Onshore South Sumatra Preparations for the drilling of a delineation well TOE No. 2 continued during the quarter. The proposed TOE No.2 will be situated approximately 350 metres from the discovery well TOE No.1 which confirmed three gas condensate zones and two oil zones. The Block is 55 square kilometres in size and is held by Western Akar Petroleum Pty. Ltd which is owned 90% by CityView Energy Corporation Limited and 10% PT Akar Golindo. 6. Sangatta Sangkimah - Onshore East Kalimantan Discussions with Pertamina for the proposed joint study/operations on the Sangatta oilfield (currently producing approximately 2,400 barrels of oil per day) have commenced. Geological and geophysical studies of the Sangkimah field which lies within the Sangatta concession area have been carried out during the quarter. Western Sangkimah N.L. is owned 87.5% CityView Energy Corporation Limited and 12.5% Trident Petroleum (Kalimantan) Limited. 7. Tanjung Miring Timur - Onshore, South Sumatra Western Nusantara Energi Pty. Ltd throughout the quarter continued to upgrade the facilities and infrastructure and establish a geological and geophysical data base. Four wells were recompleted with mechanical downhole pumps and the surface processing equipment (such as installation of an oil heater) was improved. A total of 22,687 barrels of oil was produced during the quarter and production is currently averaging in excess of 9,000 barrels per month. Negotiations with Pertamina are in progress to increase the shareable oil quota. Western Nusantara Energi Pty. Ltd is owned 80% CityView Energy Corporation Limited and 20% PT Nusantara Energi Prima.

To: Kerm Yerman who wrote (10488)	5/1/1998 12:19:00 PM
From: Kerm Yerman	Read Replies (9) \| Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING THURS., APRIL 30, 1998 (4) INTERNATIONAL Countries Yugoslavia Crude Imports Slump, Oil Products Jump BELGRADE, April 30 - Yugoslav crude oil imports fell sharply in the first quarter of the year forcing increased refined product purchases, a senior official at state oil company Naftna Industrija Srbije said on Thursday. ''NIS has neither dinars nor hard currency. That is why crude imports fell 61.2 percent below the 720,750 tonnes planned for the first three months,'' said the NIS official, who asked not to be named. Imports for the quarter, handled in a barter deal by Chinese state oil firm Sinochem, were limited to 280,000 tonnes, he said. 'I can promise regular fuel supply for May and beginning of June, but I cannot say what will happen afterwards,'' the official said. Imports of petroleum products ran at 353,000 tonnes in the first quarter, twice as much as planned. Last year they stood at 50,000 tonnes over the same period. Some 400,000 tonnes of crude was refined by third parties during the period at the Belgrade and Novi Sad refineries and then purchased for the domestic market. Domestic refined product output other than third party production fell about 40 percent below planned levels because of the shortage of crude. Yugoslavia had planned to import 2.3 milion tonnes of crude this year and 570,000 tonnes of products. Yugoslavia, comprising Serbia and Montenegro, produces about one million tonnes of crude at home, insufficient to meet its growing demand for petroleum products estimated to rise by 8.0 percent this year to 4.4 million tonnes. Crude imports were fully liberalised in 1996, immediately after lifting of the 42-month trade embargo. Imports of refined products were kept under state control to protect two local refineries now operating at less than half of their annual 7.0 million tonnes capacity. In 1996, the Chinese state oil company Sinochem and the Serbian oil company NIS clinched a long-term barter deal for crude and products deliveries. Financial details of the deal have never been disclosed. Yugoslavia pays for half the crude with with goods. The deal helped the cash-starved state secure enough quantities of fuel to help revive the country's moribund industries. NIS praised the deal because it provided regular fuel supplies and allowed delayed payments. ''It was a kind of credit and we still owe them for their deliveries,'' the NIS source said. ''The deal also promoted and raised demand for some of our goods on the Chinese market. But unfortunately our industries do not have sufficient quantities of goods competitive enough in price and quality to meet crude counter-deliveries.'' Domestic first quarter crude output was 229,500 tonnes, two percent less than planned. Iran's Energy Lustre Is Blunting US Threats MOSCOW, April 30 A growing number of international oil and gas companies are prepared to defy U.S. threats of sanctions and look for major investment opportunities in the untapped energy wealth lying onshore and offshore Iran. Russia's Gazprom, the world's largest natural gas company accounting for a quarter of global supply, said it would continue to expand its operations in Iran, joining a chorus of oil and gas majors taking on Washington. "We are working on the South Pars project (in Iran) with the French and Malaysians ," Rem Vyakhirev, head of Gazprom, told Reuters in an interview late on Wednesday. "We will take part in tenders on (South Pars) four and five, and will fight for them." Gazprom is one of three foreign companies participating in the multi-billion dollar development of Iran's South Pars offshore gas project. The other two are France's Total SA and Malaysia's Petronas. The project is being carried out in phases, to which Vyakhirev was referring. The cost of each stage of the huge development is estimated by analysts at around $1 billion. "It is interesting that Gazprom is also interested in the following phases of South Pars," said Manouchehr Takin, an Iranian oil and gas specialist at the Centre for Global Energy Studies in London. "It's very good news." Gazprom joins Total and Petronas in throwing down the gauntlet to Washington. All three companies have the vocal backing of their governments, which are against the U.S. trying to impose its rules on other countries. The United States passed the Iran-Libya sanctions act in 1996, allowing for penalties to be imposed on foreign firms investing more than $20 million a year in the oil and gas sectors of Libya or Iran. The State Department is reviewing whether the South Pars deal violates U.S. law, and there is speculation that a decision will be taken possibly as early as next month. A U.S. move to sanction companies could trigger a major trade row, with the European Union saying last week that it would immediately start a World Trade Organisation case against the United States were Total to be punished. Takin said the fact that no penalties had been imposed so far suggested the Clinton administration was less comfortable with the idea than senators like Alfonse D'Amato, one of the main supporters of sanctions. Vyakhirev, with typical bravado, thanked D'Amato for giving Gazprom a good reason for pulling out of a $750 million loan guarantee programme with the U.S. Export-Import Bank last year. "Those measures which Mr. D'Amato intends to undertake are no more than a mosquito bite to us," he said. "Today I can even say 'thank you' to D'Amato as he saved us the trouble of turning down the Eximbank loan." Iran has the world's second largest natural gas reserves after Russia, and unofficial estimates peg its recoverable crude oil reserves at between 80 and 100 billion barrels. Afraid of losing out in the early oil and gas rush, more companies are eyeing projects there, including Italy's ENI, France's Elf Aquitaine and Anglo-Dutch oil and gas major Royal Dutch/Shell. At the same time some U.S. majors, mostly privately, have bitterly attacked Washington's stance which they say is denying them a major new business frontier and giving the edge to European competitors. Iran is also being tipped as a major energy transportation route, linking fields in the resource rich Caspian Sea to markets in Turkey and Europe. The United States, aware of new pipeline proposals, has pushed for subsea routes connecting the east of the sea to the west, thereby bypassing Russia to the north and Iran to the south. An important catalyst for increased interest by Western companies in Tehran is an apparent change of attitude by the Iranian government to foreign investment. Analysts said that as early as 10 years ago the Iranian leadership realised it would need to court foreign companies if it wanted to benefit from its energy base. "The main thing is not really reserves," Takin said. "It is how to develop and bring on stream proven reserves, and that requires major expenditure and modern technology. Iran realised this long ago." A senior official at the National Iranian Oil Company (NIOC) said last month that Iran was throwing open its doors to foreign investment in key oil and gas fields, referring to over 100 prospects across the country that were "wide open". PIPELINES Novagas Canada Ltd. (NCL) announced today it will immediately mobilize construction crews to begin work on a $97-million West Stoddart natural gas processing project northwest of Fort St. John, British Columbia. This announcement follows the award of a Project Certificate from the B.C. government granting approval for the project to proceed. ''This approval has come within the time frame we'd planned for,'' said Randy Findlay, President, Novagas Canada Ltd. ''The West Stoddart project is one of the key components of NCL's overall gas and liquids gathering and processing strategy. NCL is on target to deliver its services and value-added benefits to producers.'' The West Stoddart project includes: a 160-million-cubic-feet-per-day natural gas processing plant and gathering lines; a 69-kilometre, 16-inch natural gas pipeline; and a parallel 6-inch natural gas liquids pipeline. Construction is scheduled to be completed by late summer 1998. The West Stoddart facility is being developed primarily as a gas conservation plant to process raw sour gas associated with oil production from the Stoddart and Buick Creek fields. The plant will sweeten the gas recovered from oil production batteries operated by Canadian Natural Resources Limited and Remington Energy Ltd. The plant will also recover a portion of the hydrocarbon liquids in the gas stream. Natural gas from the West Stoddart plant will then be transported by pipeline to the Younger natural gas processing plant at Taylor, B.C. NCL holds a 43.3 per cent interest in the soon-to-be-expanded Younger gas processing plant. The natural gas liquids will be further transported to NCL's liquids fractionation facility at Redwater-Fort Saskatchewan, near Edmonton, Alberta. The Redwater-Fort Saskatchewan facility, the capacity of which is 65,000 barrels of natural gas liquids per day, is targeted to be on-stream in the fall of 1998. ''This project enhances the economics of Remington's and CNRL's operations and contributes to NCL's large-scale integrated liquids project in B.C. and Alberta,'' said Findlay. ''The project is of strategic importance to the oil and gas sector in northeast British Columbia and will likely lead to further significant investments in the area.'' Paul Baay, President of Remington said the West Stoddart project illustrates the benefits of industry and government working together. ''The B.C. government appears committed to improving and streamlining the process. No doubt this will contribute to the overall competitiveness of the West Stoddart region and the oil and gas industry of British Columbia as a whole.'' CNRL Chairman Allan Markin said: ''In today's market, West Stoddart is the type of project that provides overall value to our shareholders. The approval from the B.C. government is a clear signal of the government's interest in fostering growth and development in the oil and natural gas industry.'' Construction of the West Stoddart plant is expected to generate 5,400 person days of employment, with the workforce peaking at 120 people. Pipeline construction is expected to generate 9,000 person days of work, with the crew averaging about 100 people. On completion, the West Stoddart plant is expected to have a full-time staff of 11 plus eight equivalent contract service and maintenance positions. Annual contracted maintenance services are expected to generate about 10,000 person hours per year. EARNINGS Northstar Energy Corp / Top 20 Listed Message 4277419 New Cache Petroleum Message 4276416 Granger Energy Corp. Message 4277658 Pioneer Natural Resources Co Message 4277298 Enerflex Systems Ltd./ Serv 10 Listed Message 4276336 Computalog Ltd. / Serv 10 Listed Message 4276475 Pembina Pipeline Income Fund Message 4276369 Westcoast Energy Inc. Message 4277545 IPL Energy Inc. Message 4277397 EXCHANGE INFORMATION In the U.S., oil-drilling names were one of the few groups that failed to participate in what was a solid and broad-based advance. Smit International fell 1.88% or $1-1/8 to $58-3/4. The Philadelphia Oil Service Index (OSX) fell 1.06 to 116.84. Basin Exploration (BSNX) shed 2 5/8 to 19 7/8 thanks to a downgrade from Jefferies to "underperform" from "hold." The Toronto Stock Exchange Oil & Gas Composite Index gained 0.3% or 19.68 to 6552.02. Among sub-components, the Integrated Oil's gained 0.5% or 39.56 to 8474.29. The Oil & Gas Producers gained 0 .3% or 18.33 to 5845.18 and the Oil & Gas Services fell 0.3% or 7.98 to 3105.55. As been the recent trend, the oil & gas sector underperformed compared to progrress of te TSE 300, wic gained 0.7% or 55.46 to 7664.99. Amber Energy, Gulf Canada Resources, Pinnacle Resources, Petro-Canada and Suncor Energy were among the top 50 most active traded issues on the TSE. Remington Energy gained $1.00 to $19.00. Percentage gainers included Black Rock Ventures 15.0% to $1.15, TransGlobe Energy 12.7% to $1.15, Maxx Petroleum 11.4% to $1.85, Ram Petroleum 8.0% to $1.35, Big Bear Exploration 7.7% to $1.40, Post Energy 7.4% to $5.10, Southward Energy 6.9% to $1.39, Real Resources 6.5% to $1.32 and Compton Petroleum 6.1% to $1.75. On the downside, Gulf Canada Resources fell $0.45 to $7.45, Bitec Petroleum $0.40 to $3.30 and Imperial Oil $0.40 to $78.90. Percentage losers included International Rocester 13.1% to $1.52, Bitec Petroleum 10.8% to $3.30, Gulf Canada Resources 5.7% to $7.45, Triumph Energy 4.8% to $3.00 and OGY Petroleum 4.2% to $1.15. There were no service issues listed among the top 50 most active on the TSE. Veritas Energy gained $8.20 to $76.20. Percentage gainers included Veritas Energy 12.1% to $76.20 and Alpine Oil 8.7% to $1.25. On the downside, Precision Drilling fell $0.70 to $34.00 and Shaw Industries A $0.50 to $50.30. Tetonka Drilling lost 9.5% to $1.90. Over on the Alberta Stock Exchange, Green River Petroleum, Corridor Resources, AltaPacific Capital, Dalton Resources, Enterprise Development, Anvil Resources, Niko Resources, Wolverine Energy, ICE Drilling and HEGCO Canada were among the top 25 most active tradedissues. Destiny Resource Services gained $0.25 to $3.35, HEGCO Canada $0.19 to $3.39, Big Bear Explo ration $0.14 to $1.40, Venator Petroleum $0.13 to $1.70, Newbridge Resources $0.11 to $0.31 and Kintail Energy $0.10 to $1.00. On the downside, Northline Energy fell $0.15 to $1.35, Bolt Energy $0.10 to $0.50, Granger Energy B $0.10 to $0.40, Global Link Resources $0.10 to $0.95, Niko Resources $0.10 to $5.50, Underbalanced Drilling $0.10 to $2.50 and First Star Energy $0.09 to $0.87. RESEARCH NOTES Gordon Capital Anderson Exploration (AXL-T: $17.40) BUY Gas Growth At Birley/Nig Anderson had a successful winter gas drilling season in its gas levered northern areas. Its most important success, however, has been in the Birley/Nig area of northeast B.C., located north of Fort St. John. Over the past two years, production from this area has grown from zero to 50 mmcf/d. A further two year drilling inventory remains available to Anderson. Overall, Anderson has drilled 340 wells to date this fiscal year (Sept. 30th year-end), and is on track to drill its target of 570. Despite the volatility in commodity prices this year, the company's capital expenditure budget remains unchanged at $505 million. We are forecasting fully diluted CFPS of $2.45 in 1998 and $2.95 in 1999. Our 12-month stock price target remains unchanged at $21.00. Edge Energy (EDG-Y: $4.20) BUY Acquires Otter Property From Ranger Oil Edge has paid $5.6 million to acquire Ranger's oil property at Otter, in northcentral Alberta. This immediately adds 210 bbls/d of net production to Edge, and increases its existing interests in the area. The acquired property also offers further exploration potential. Edge will be drilling on these acquired properties this summer. The transaction will be debt financed, increasing the company's debt from $3 million to $8 million, or 1.0X this year's cash flow. Our stock price target is $7.00. END - END - END

To: Kerm Yerman who wrote (10488)	5/3/1998 5:02:00 PM
From: Kerm Yerman	Read Replies (16) \| Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING FRIDAY, MAY 1, 1998 (1) MARKET WATCH Bay Street Takes High Road Stronger resource issues and an easing of concern over rate hikes pushed Toronto's key stock index to a higher close on Friday, its third in a row, and helped it recover from losses earlier in the week. ''It was just strong right from the beginning and closed that way,'' one equities trader said. ''Rates are not going to be raised - yahoo! It's riding high on enthusiasm.'' And while rate fears have faded, there's still some lingering nervousness out there, said Fred Ketchen, chief equities trader at Scotia Capital Markets. "One questions whether all the hype at the beginning of the week about the Federal Reserve Board raising interest rates was really necessary," Ketchen said. A host of economic indicators that measure production, unemployment and prices in the United States suggest there is no inflation threat and hence no need to raise rates, he added. "This would appear to me again to be a non-inflationary environment, with GDP hanging in there as strongly as it is . . . and I think by the end of the week people are feeling better about it." Canadian stocks rose, sent higher by Canadian Pacific Ltd. and oil producers on higher crude prices after the Organization of Petroleum Exporting Countries said they would consider further supply cuts. The Toronto Stock Exchange 300 composite index gained 37.12 points, or 0.5%, to 7702.11. About 96 million shares changed hands on the TSE, down from 121.7 million shares traded on Thursday. Trading volume was worth C$1.7 billion. Advancing issues beat out declines 553 to 454 and 299 issues closed unchanged. All of Toronto's 14 subindexes advanced except for golds and real estate. Conglomerates led the way, up 2.75 percent, and were followed by heavyweight oils, paper and forestry products and utilities. Over the week the TSE 300 bobbed down and then up, only losing 31.83 points or 0.41 percent by Friday's close. Toronto reversed course from losses on Monday, when fears of U.S. interest rate hikes had spooked investors. ''The week started with the Wall Street Journal telling us that we've got to be scared of rates and everything's going in the tank,'' said Rolie Bradley, institutional salesman at Maison Placements Canada. But Thursday's U.S. economic data pointed to a low inflation rate environment, helping soothe nervous players, Bradley said. ''With the economic news, we rebounded.'' CP and BCE Inc. contributed 13 points to the benchmark's advance. BCE shares (bce/tse) rose 70› to $61.60, Canadian Imperial Bank of Commerce (cm/tse) climbed 35› to $51.20 and Bank of Nova Scotia (bns/tse) gained 25› to $39.50. The paper and forest products grouping was the day's third-best performer with a gain of 1.35 per cent. The index came out at the end of the week with a 0.71 per cent loss. Abitibi-Consolidated gained 80 cents to $22.05. Fletcher Challenge Canada was up 90 cents to $22.15. CP (cp/tse), which accounts for 2.4% of the TSE 300, rose $1.90 to $43.90 after the company's railroad unit said it boosted its offer to $800 a share from $650 a share for the 4000 shares, or 20%, of the Ontario & Quebec Railway Co. it does not already own. A fall in gold stocks, which account for 5.5% of the TSE 300, tempered the market's advance. Barrick Gold Corp. (abx/tse) lost 55› to $31.50, Teck Corp. (tekb/tse) dropped 90› to $20 and Echo Bay Mines Ltd. (eco/tse) fell 46› to $4.74 Alcan Aluminium Ltd. shares (AL/TSE) closed Friday at $47.05, up 65›. Alcan is taking a 20% direct stake in the US$1-billion Utkal alumina project in eastern India as part of its long-term strategy to reduce raw material costs, the company said Friday. Its partners are Norway's Norsk Hydro ASA (40%), Alcan affiliate Indian Aluminium Co. Ltd. (20%) and Tata Industries Ltd., the leading Indian industrial conglomerate (20%). Newfoundland Capital Corp.(NNCb.TO) , which jumped nearly 14 percent or 1.75 to 14.50 after the radio and community paper company's board of directors declared a special dividend of C$5 a share for both class A subordinate voting and class B common shares. Noble China Inc. (NMO/TSE) closed up 50› at $5.20 on Friday, after trading as high as $6.10. Volume was heavy. The company said on Friday it has won a three-year-old legal dispute, clearing the way to focus on extracting a return from its interest in two breweries in northern China. The Toronto-based company said a binding arbitration ruling has ordered former chairman Lei Kat Cheong to pay it at least $78 million, and probably more than $100 million, although executive vice-president Robert Vaux said the chances of collecting the full award are slim. But at the very least, the arbitration panel's decision will probably mean the company can seize Lei's 5.4 million shares (33% of the total outstanding) in partial settlement of the award and cancel them. That would instantly raise per-share profit, cash flow and asset value by 50%, Vaux said. Laidlaw Inc.(LDM.TO) rose 0.10 to 20 on nearly 5.4 million shares, topping the most actives. Laidlaw receipts nearly matched shares in volume and stayed flat at 10.60. Other Canadian markets rose. The Montreal Exchange portfolio climbed 17.46 points, or 0.5%, to 3871.42, up 10.87 points, or 0.3%, since last Friday. The Vancouver Stock Exchange rose 6.29 points, or 1%, to 635.83, down 0.47 of a point on the week. Wall St. charges ahead. Stocks rally into the weekend, as investors feel good about the economy The Dow Jones Industrial Average ($INDUA) rose as high as 9,131.63 in the first hour of trading, but spent most of the day waffling around the 9,095 level. Optimism returned in the last 45 minutes of trading, sending the index up 83.70, or 0.9%, at the close to 9,147.07 - completing its best two days since Feb. 2-3. For the week, the Dow rose 0.9%. Troubling to some, however, was that the Dow Transportation Index ($TRAN) fell 23.75 to 3,485.42 Friday and slid over 2% for the week. The Nasdaq Composite Index (COMP) struggled to stay in positive territory for much of the session, falling as low as 1,864.44, about 4 points off its opening level. But the tech-flavored index managed find its legs late in the day to rise 5.02 to 1,873.43. For the emotionally draining week, the Nasdaq rose 0.24%. The S&P 500 (SPX) closed up 9.25 to 1,121.02 and ended the week higher by 1.2%. The small-cap proxy Russell 2000 Index ($IUX) rose 2.05 to 484.94 to close the week up 0.8%. In NYSE trading, a modest 578 million shares were exchanged, while advancing issues edged declining stocks by an 18-to-11 spread. 702.2 million shares were traded on Thursday. The Nasdaq composite index rose 5.03 points, or 0.3%, to 1873.43, up 4.48 points, or 0.2%, on the week. 763 million shares traded hands, while the breadth of the issues favored losers by a 21-to-20 spread. In economic news, the NAPM's index of manufacturing activity fell to 52.9% in April from 54.8% in March, a bigger drop than economists were expecting. Bond prices rose on the news, but finished off their best levels of the session, up 1/4 of a point. The yield on the benchmark 30-year Treasury bond, which moves in the opposite direction of its price, fell to 5.93%. Thursday's sharp rally was extended on further evidence that inflation remains in check. Early gains sparked by a weaker-than-expected National Association of Purchasing Managers report were soon erased, but the momentum reemerged in the late going to push major indices higher again. The Dow closed up nearly 84, the Nasdaq rose 5, and the S&P 500 climbed 9.25. Oil producers and drilling stocks were notably stronger, thanks to a hike in crude prices amid rumors of more production cuts by OPEC. Financial names rose as interest rates fell and speculation of further consolidation in the sector was revived. Weakness in drug and airline stocks kept gains for major markets in check, however. Tech stocks were mixed, but with a positive bias. Stocks also got a boost from speculation that capital gains taxes will be lowered, said David Mead, chief investment officer at Harris Bank in Chicago. Bank shares rose on speculation that mergers and acquisitions will continue to drive prices higher. The chairmen of Fleet Financial Group Inc. and BankBoston Corp. held merger talks as recently as this week, but the negotiations broke down amid differences about whether the Boston-based rivals were a good strategic fit, the Boston Globe reported. Fleet shares (flt/nyse) rose US$3 5/16 to US$89 11/16, BankBoston (bkb/nyse) jumped US$2 15/16 to US$110 7/8 and J.P. Morgan & Co. (jpm/nyse) rose US$3 7/8 to US$135 1/8. Additionally, American Express (AXP) gained 3 5/16 to 105 1/2 and J.P. Morgan (JPM) closed up 3 7/8 to 135 1/8, leading a strong performance in the banking sector. The Philadelphia KBW Banking Index (BKX) climbed 18.69 to 883.55. Rumors were circulating Friday that Wells Fargo (WFC), up 18 3/4 to 387 1/4, is in talks to merge with US Bancorp (USB), which rose 3 to 130. Elsewhere in the group, Citicorp (CCI) gained 2 13/16 to 153 5/16, Chase Manhattan Bank (CMB) climbed 2 5/16 to 140 7/8, and BankAmerica (BAC) rose 2 11/16 to 88 1/16. FirstMerit (FMER) rose 1 7/8 to 30 1/4 thanks to separate upgrades from A.G. Edwards & Co. and McDonald & Co. Heller Financial (HF) rose 3 to 30 in its first day of public trading. Mellon Bank Corp. (MEL) fell 7/8 to 71 1/8 as word spread that Bank of New York (BK) likely will drop its $22 billion takeover bid. BONY shares rose 1 15/16 to 61. Dow gainers included Eastman Kodak Co. (EK), which rose 1 3/16 to 73 3/8 on news that it is teaming up with Intel to boost its digital imaging business. Additionally, the firm's management had a bullish meeting with analysts in New York. Boeing (BA) rose 1 5/8 to 51 11/16 after it won a $1.6 billion U.S. military contract. Cable stocks rose ahead of a key industry conference next week. Cablevision Systems (CVC) rose 2 15/16 to 64 3/8, Tele-Communications Inc. (TCOMA) closed up 2 1/8 to 34 3/8, and Comcast (CMCSK) gained 1 9/16 to 37 3/8. It was a different story in the drug sector as the AMEX Pharmaceutical Index (DRG) fell 8.19 to 629.70. Merck (MRK) fell 4 3/16 to 116 15/16, and was the big hindrance on the Dow. Eli Lilly (LLY) fell 3 1/4 to 66 5/16 after Merrill Lynch cut its recommendation on the stock to "accumulate" from "buy." In concert, Warner-Lambert (WLA) slid 1 3/8 to 188, Pfizer (PFE) dropped 1 1/16 to 112 3/4, and Johnson & Johnson (JNJ) closed off 1 5/16 to 70 3/16. Airline stocks also tumbled, sending the AMEX Airline Index (XAL) down 16.22 to 738.06. The prospect of higher fuel costs sent shares of AMR Corp. (AMR), Delta Air Lines (DAL), US Airways (U) and UAL (UAL) down at least 2 points each. CD Warehouse (CDWI) rose 2 5/16 to 11 11/16 thanks to positive comments in Investor's Business Daily. Mycogen (MYCO) jumped 2 5/16 to 22 13/16 on news that Dow Chemical (DOW) wants to buy the 31% of the firm it does not already own. Dow rose 1 11/16 to 98 3/8. Nutraceutical International (NUTR) fell 6 7/16 to 11 9/16 after reporting a second-quarter loss of 14 cents per share. Technology bellwethers overcame early jitters, sending the Morgan Stanley High Tech Index (MSH) up by 2.90 points to 581.64 and the Nasdaq 100 Index (NDX) higher by 3.41 to 1251.53. The Philadelphia Semiconductor Index (SOX) closed up 1.06 points to 316.95. PC makers helped foster the sector's gains. Compaq Computer (CPQ) rose 1 5/16 to 29 3/8, thanks to an upgrade to "buy" from "hold" at Salomon Smith Barney, which set a price target of $40 for the world's largest computer maker. In concert, Dell Computer (DELL) rose 3 1/2 to 84 1/4, another new 52-week high. Additionally, Intel (INTC), up 1 5/16 to 82 1/8, Novellus Systems (NVLS), which rose 1 3/8 to 49 1/4, and Computer Associates (CA), higher by 1 3/16 to 59 13/16. Dow member IBM (IBM) closed up 1 to 116 7/8, while Sun Microsystems (SUNW) and Cisco Systems (CSCO) both rose fractionally. After some initial weakness, Internet stocks finished mostly higher. America Online (AOL) rose 3 9/16 to 83 1/2, Amazon.com (AMZN) closed up 2 3/4 to 94 1/2, and Lycos (LCOS) gained 1 9/16 to 63 3/8. Yahoo! (YHOO) and Infoseek (SEEK) both fell fractionally. Investors regained their fervor for shares of K-Tel International (KTEL), which rose 10 15/32 to 48. CDNow Inc. (CDNW) fell 2 1/4 to 29 3/4 after the Internet music retailer said its first-quarter loss widened to 78 cents per diluted share. Analysts had estimated a loss of 60 cents a share. Save for Computer Associates, big software makers exhibited weakness. Industry leader Microsoft (MSFT) fell 1/2 to 89 5/8 while PeopleSoft (PSFT) closed off 2 1/8 to 45 1/8. Eagle Point Software (EGPT), however, rose 1 7/8 to 6 3/4 after reporting fiscal third-quarter earnings of 7 cents per share, reversing a loss of 5 cents per share a year ago and 6 cents better than expectations. Drags on tech indices included Lucent Technologies (LU), which fell 1 3/16 to 75 1/16, and Dow component Hewlett-Packard (HP), which slid 7/8 to 74 1/2. Electronic Data Systems (EDS) plummeted 4 3/8 to 38 5/8 despite reporting first-quarter earnings of 43 cents per share, just a penny shy of expectations. Adaptec Inc. (ADPT) fell 3 15/16 to 19 3/4 after it reported earnings for its fiscal fourth quarter of 20 cents per diluted share, 8 cents shy of estimates. Etec Systems Inc. (ETEC) fell 8 7/8 to 47 7/8 after the maker of semiconductor equipment said third-quarter earnings will be below last year's due to delays in shipping a product. Deutsche Morgan Grenfell and Needham & Co. separately downgraded the stock. Despite beating the Street by 6 cents in reporting first-quarter earnings of 3 cents per share, shares of Informix (IFMX) fell 47/64 to 9 5/32. Diamond Multimedia Systems (DIMD) fell 1 13/16 to 9 13/16 thanks to a downgrade from CIBC Oppenheimer to "hold" from "buy." Discreet Logic (DSLGF) fell 2 1/8 to 15 3/4 after reporting fiscal third-quarter earnings of 17 cents per share, 2 cents short of expectations. STB Systems (STBI) fell 3 7/16 to 10 7/8 following its warning that second-quarter results will not meet expectations. Amkor Technology (AMKR) rose 2 5/16 from its initial public offering price of $11 per share. Igen International (IGEN) rose 1 1/4 to 37 5/8 on some positive comments in Business Week. The Week Ahead The key "known" issue in the week ahead is the employment report for April, due on Friday. The consensus estimate is that 250,000 jobs were created last month after a decline of 36,000 in March. Unemployment is expected to decline to 4.6% from 4.7%. Both the average hourly earnings and workweek components of the report are projected to rise slightly. Economic reports this past week, notably the employment-cost index on Thursday, helped snap the market out of its anxiety about the possibility of the Federal Reserve raising interest rates. Still, many traders won't relax until after the employment report has passed. "Obviously, when you start thinking of the next possible threshold, of course it's employment," said Anthony Karydakis, senior financial economist at First Chicago Capital Markets. "Barring any major surprise with a strong employment report, the Fed is widely presumed to be on hold for a while." If no outlying numbers emerge from the employment report, Karydakis expects yields on the long bond to "stay trapped here for a while" in the middle of its recent 5.75%-to-6.05% range. If the past few days are any indication, that should suit equity traders and investors just fine. The earnings calendar slows in the week ahead, but a bevy of reports are due. Chief among them is Wednesday's report from America Online (AOL). The consensus expectation is that AOL earned 13 cents per share in its fiscal third quarter, up from a penny per share a year ago. Additionally, Fed Chairman Alan Greenspan has two public speaking engagements scheduled in the week ahead. On Saturday, he addresses the Conference of State Bank Supervisors in Nashville, Tenn.; next Friday, he is the keynote speaker at the Chicago Fed's annual banking conference. Many on the Street suspect that reports this week in the Wall Street Journal and Washington Post about the Fed moving to a tightening bias were planted in an effort to spook the market lower. If so, the strategy has to be considered a failure and Chairman Greenspan might feel the need to do some "jawboning" of his own. Never a dull moment. Major International Markets Were Broadly Higher. London: British shares extended their gains as fears over a hike in U.S. interest rates subsided. The FT-SE 100 index rose 82 points, or 1.4%, to 6010.3, up 146.4 points, or 2.5%, since last Friday. Frankfurt: German markets were closed for the May Day holiday. On the week, the Dax index fell 36.84 points, or 0.7%, to 5107.44. Tokyo: Japanese stocks fell in thin trading on worries over the financial health of some Japanese firms and the yen's weakness. The 225-share Nikkei average lost 40.16 points, or 0.3%, to 15,601.1, down 410.44 points, or 2.9%, on the week. Among losers were some banking issues, apparently hurt by a major Japanese economic newspaper report Friday that Japan's 19 major commercial banks have posted a record 4.37 trillion yen (dlrs 33.10 billion) in combined pretax losses for the fiscal year, which ended March 31. Hong Kong: The Hang Seng index rose 180 points, or 1.7%, to 10,563.68, but fell 316.25 points, or 2.6%, over the week. Brokers said the Hong Kong market was boosted by overnight gains on Wall Street. Jakarta: In Indonesia, shares slumped 2.5 percent Friday after President Suharto ruled out political reform before the end of his tenure in 2003. In a warning to campus protesters, Suharto also urged the military to quickly curb any attempts to undermine order as Indonesia endures its worst economic crisis in three decades. Prices of basic commodities have soared and the government has said it will raise fuel and electricity costs by June, deepening the economic burden on Indonesia's 200 million people. The Jakarta Stock Exchange's Composite Index fell 11.610 points, or 2.5 percent, to 448.525. Sydney: Australian shares raced to a sharply higher close, spurred on by rebounding U.S. markets. The all ordinaries index jumped 42.1 points, or 1.5%, to 2,804.2, but fell 50.7 points, or 1.8%, on the week. Wellington: New Zealand share prices closed slightly lower, drifting downwards after a strong start to the session on the back of good finishes in the U.S. and Britain's share markets. The NZSE-40 Capital Index fell 3.25 points, or 0.1 percent, to 2,253.29. The markets were closed for May Day celebrations in the Philippines, Taiwan, South Korea, Singapore, Malaysia and Thailand.