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To: Kerm Yerman who wrote (10506)	5/4/1998 7:28:00 PM
From: Arnie	Respond to of 15196

CORP. / CityView Energy Press Release to Australian Stock Exchange CityView Energy Corporation Limited ("CityView") in accordance with Listing Rule 7.1 of the Australian Stock Exchange Limited and pursuant to Section 66 of the Corporations Law ("excluded offers") is pleased to announce that the Crystal Fund has completed its due diligence evaluation of CityView and has agreed to participate in the funding of CityView's strategic program to acquire oil and gas production. The Crystal Fund is a Bermuda based umbrella fund with several sub funds under management with particular emphasis on Scandinavia. The Crystal Fund has a working relationship with The Bank of Butterfield & Son Limited, Bermuda's oldest bank, and with a number of other international institutions to whom CityView will be presenting its acquisition and funding strategy. As a preliminary step in the relationship, the Board of the Crystal Fund has approved an initial investment in CityView by subscribing for one million shares of CityView on Friday, 1 May 1998 at a price of A$2.30 (being 92% of the closing price of the fully paid ordinary shares on the Australian Stock Exchange Limited of $2.50 on Friday 1 May 1998). A fee of US$75,000 (approx A$115,385) will be paid to Consolidated Securities SA for arranging the share placement. The net amount of $2,184,615 approximately, which has been raised will be used for additional working capital. The shares the subject of the placement will from the date of allotment rank equally in all respects (including participation in dividends) with the existing issued fully paid ordinary shares of the company and application will be made for official quotation of the shares following their allotment. None of the directors or persons associated with the directors is participating in the issue of shares. Yours faithfully (Signed) A P Woods Company Secretary/Chief Financial Officer Capital Structure: Fully Diluted: 13,607,068 Float: 5,522,049 as at 1 May 1998 Australia - CityView Energy North America - Zoya Financial Chris Vander Boom Steve Basra/Jasbir Gill Tel: 011-61-89-445-3199 Tel: 905-763-7773 Fax: 011-61-89-445-3947 Fax: 905-763-4447 cityviewenergy.com email.jazz@wwonline.com

To: Kerm Yerman who wrote (10506)	5/4/1998 7:32:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Petrohawk Energy reports 1997 Results The year ended December 31, 1997 was challenging for Petrohawk Energy Ltd. due to industry conditions that delayed its growth. Nevertheless, Petrohawk managed to position itself for significant growth in 1998. During 1997, rig unavailability, and overpriced market for producing properties and a decline in oil prices impeded Petrohawk's ability to grow its reserves and production through drilling or acquisition, decreased its cash flow and required it to take a ceiling test write down. Petrohawk's proven plus probable petroleum reserves decreased to 324,600 barrels of oil equivalent as at January 1, 1998 from 391,300 barrels of oil equivalent as at January 1, 1997. Average daily production increased slightly to 102 barrels of oil equivalent in 1997 from 99 barrels of oil equivalent in 1996, while the average sales price decreased substantially to $18.68 per barrel of oil equivalent from $22.52 per barrel of oil equivalent. Consequently, gross production revenue decreased to $719,090 from $839,650, cash flow from operations decreased to $196,785 from $292,760, and the company recorded a net loss of $593,177 compared to a net profit of $38,758. Included in the net loss was a ceiling test write down of $558,000. Petrohawk used the delay of its drilling activity resulting from rig unavailability as an opportunity to build its drilling inventory, The resulting promising drilling inventory helped Petrohawk to close a $1,405,000 private placement at year-end, primarily to institutional investors. This drilling inventory and financing position Petrohawk for significant growth in reserves, production, cash flow, net asset value and common share price in 1998. For additional information, please contact Jacques G. St-Hilaire, President and Chief Executive Officer, at (403) 262-9593 (telephone) or (403) 269-2897 (facsimile).

To: Kerm Yerman who wrote (10506)	5/4/1998 7:34:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Probe Exploration reports 1997 Results CALGARY, May 4 /CNW/ - Probe Exploration Inc. (PRX-TSE) is pleased to report its financial and operating results for the year ended December 31, 1997, the best year in the Company's history. Probe enjoyed increased revenues, earnings and cash flow in 1997 as well as decreased operating and G&A expenses per BOE. The most significant achievement in 1997 for Probe was the Leduc purchase, through which the Company realized significant additional reserves, production and infrastructure and dramatically increased its size and value. As well, the acquisition of Jaguar Petroleum Corporation provided Probe with considerable exploration potential. Net earnings for the year ended December 31, 1997 amounted to $1.7 million on revenues of $23.3 million. Cash flow from operations totalled $11.3 million. This compares to net earnings of $360,897 on revenues of $2.5 million and cash flow of $817,753 for the six months ended December 31, 1996. On an annualized basis, net earnings improved by 135% and cash flow improved by 606%. Revenues, cash flow and net earnings for 1997 were records for the Company. Operating expenses decreased by 53% on a per BOE basis to $3.19 for the year ended December 31, 1997 from $6.79 for the six months ended December 31, 1996. Similarly, general and administrative expenses decreased by 54.6% on a per BOE basis to $1.54 from $3.39. Netbacks improved $0.24 per BOE to $10.08 for the year ended December 31, 1997 from $9.84 for the six months ended December 31, 1996. As well as the two acquisitions, Probe's activities in 1997 included drilling 49 wells and recompleting 63 wells. The Company's total average production improved by 521% from 645 BOED to 4,009 BOED. In 1997, Probe's average production comprised 14.1 MMcf/d of natural gas and 2,598 bbls/d of oil. The Company's exit rate for 1997 was 8,500 BOED. 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. << FINANCIAL AND OPERATING SUMMARY Year Ended Six Months Ended December 31, December 31, 1997 1996 ----------------------------------------------------------------------- ----------------------------------------------------------------------- Financial Oil and Natural Gas Revenue $ 23,347,625 $ 2,511,717 Other Revenue 96,452 5,966 ----------------------------------------------------------------------- Total Revenue 23,444,077 2,517,683 Production Expenses (including royalties) 8,566,128 1,109,401 General and Administrative Expenses 2,053,288 483,290 ----------------------------------------------------------------------- Earnings before Depletion, Depreciation, Interest and Taxes 12,824,661 924,992 Interest 1,275,662 99,919 Tax Expense (Current and Deferred) 2,688,155 205,500 Depletion and Depreciation 7,157,335 258,694 ----------------------------------------------------------------------- Net Earnings $ 1,703,509 $ 360,879 ----------------------------------------------------------------------- Cash Flow from Operations 11,298,844 817,573 Operational Production Crude Oil and NGLs (bbls/d) 2,598 417 Natural Gas (MMcf/d) 14.1 2.3 Average Total Production (BOEPD) 4009 645 Average Price ($/BOE) 15.95 21.28 Per Unit Information ($/BOE) Finding Costs $1.82 $0.65 Development Costs $0.92 $0.40 3-Year Avg. Finding, Development and Acquisition Costs $4.25 $2.06 Operating Costs $3.19 $6.79 G&A $1.54 $3.39 Netbacks $10.08 $9.84 Land Holdings Gross (acres) 215,680 112,283 Net (acres) 145,524 107,386 Average Working Interest 67.5% 95.6% Drilling Activity Total Wells 112 11 Exploratory Wells 8 3 Development Wells 41 8 Recompletions 63 - Probe-Operated 99 11 Average Working Interest 75% 74% Reserves Proven Reserves (MBOE) 29,759 12,583 Probable Reserves (MBOE, risked at 50 %) 7,246 4,164 NPV at 15% ($) $272,780,000 $122,109,000 Common Share Data Common Shares Outstanding 63,825,560 35,697,705 Net Income per Common Share $0.03 $0.01 Cash Flow from Operations per Common Share $0.23 $0.02 Market Price per Common Share High $6.10 $2.00 Low $1.05 $0.95 Close $4.95 $1.60 Volume 72,046,851 22,141,835 ----------------------------------------------------------------------- ----------------------------------------------------------------------- >>

To: Kerm Yerman who wrote (10506)	5/4/1998 7:39:00 PM
From: Arnie	Respond to of 15196

FINANCING / Keywest Energy Corp announces Private Placement CALGARY, May 4 /CNW/ - San Fernando Mining Company Ltd. announces that it has completed a Private Placement of 2,980,770 common shares with the Company's new management and directors for total proceeds of $1.57 million. The shares are subject to a minimum six-month hold period commencing April 28, 1998; in addition, a further six-month hold applies in some provinces. Subsequent to the Private Placement, the Company now has 16,828,651 shares issued and outstanding, cash of approximately $10 million, and no debt. San Fernando trades on the Vancouver Stock Exchange under the symbol SNF. The Company was formerly a mining concern whose focus has recently changed to oil and gas activities. In connection with the new corporate direction, it is proposed to change the Company's name to KeyWest Energy Corporation at a Special Shareholders Meeting called for May 14, 1998.

To: Kerm Yerman who wrote (10506)	5/4/1998 7:41:00 PM
From: Arnie	Respond to of 15196

FINANCING / Harken Energy announces Financing Plan DALLAS, May 4 /CNW/ -- Harken Energy Corporation (Amex: HEC) ("Harken") announced today that its business plan which has been presented to and approved by Harken's Board of Directors, includes estimated total capital expenditures in Colombia for the years 1998 through 2001 that approximate $1 billion. This capital plan has increased due to recently announced successes achieved by Harken in its exploratory drilling program as well as the addition of the Los Olmos Association Contract. Harken estimates approximately 75 to 80% of external funds applicable to these capital costs will be provided from non-recourse project finance and other similar forms of debt which can be identified to specific development projects. Harken anticipates it would put this type of debt facility in place after establishing ongoing production rates from its recently announced discoveries. The remaining 20 to 25% of these total anticipated costs apply to the continuing exploration efforts including seismic acquisition and exploratory drilling. Harken has investigated several choices of capital sources with very competitive terms that would satisfy these projected exploration capital needs. In the past, Harken has addressed its exploration capital needs in Colombia through European convertible note offerings due to lower coupon cost and general comfort of European investors with investment in Colombia. Although Harken will continue to seek some of its exploration capital from Europe, Harken anticipates that a portion of its 1998 and 1999 exploration capital needs will also be satisfied by placements in the U.S. due to competitive terms presented to Harken by the U.S. investment banking community. "We are pleased that both European and U.S. financing sources are now comfortable with investments in Harken related to Colombia," stated Harken's Chairman, Mikel D. Faulkner. He added, "We anticipate that out of the $1 billion needed to explore and develop our Colombian prospects over this three year period, approximately $150 to $200 million will be obtained in the near term through competitive placements in both Europe and the U.S." He continued, "These are exciting times for Harken, as we develop our recent discoveries of four new fields and bring them into production and as we continue our exploration efforts in Colombia." Harken Energy Corporation explores for, develops and produces oil and gas reserves domestically and internationally. The Company controls acreage in Colombia and is active in the Paradox Basin in Utah, the Panhandle region and Gulf Coast of Texas, the Magnolia area of Arkansas and the Carlsbad area of New Mexico. Certain statements in this news release regarding future expectations and plans for international oil and gas exploration and development may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as the inherent uncertainties in interpreting engineering data related to underground accumulations of oil and gas, drilling and operating risk and timing, discussed in detail in the Company's SEC filings, including the Annual Report on Form 10-K for the year ended December 31, 1997. Actual results may vary materially.

To: Kerm Yerman who wrote (10506)	5/4/1998 7:43:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Coachlight Resources reports 1997 Results CALGARY, May 4 /CNW/ - Coachlight Resources Ltd. reports a 29% increase in production for the year ended December 31, 1997 at 342 barrels of oil equivalent (boe) compared to 265 in the preceding calendar year. Exit rates at year end were 380 boe which excludes approximately 120 boe purchased in January 1998 but with an effective date of August 1, 1997. The Corporation changed its fiscal year end in 1996 and converted to ''Full Cost'' accounting in 1997 with the result that comparative fiscal results are not available. Fiscal year 1997 results are as follows: << 12 Months Ended December 31, 1997 Revenue $2,965,829 Earnings $316,952 Earnings/Share - Basic $0.05 Earnings/Share - Fully Diluted $0.05 Cash Flow from Operations $1,056,108 Cash Flow/Share - Basic $0.18 Cash Flow/Share - Fully Diluted $0.15 >> During the last quarter of the fiscal year, Coachlight refractured several wells and expanded processing capacity at its Taber, Alberta property. The outlook is for continued production gains from the previously announced acquisition and the tie-in of the Pigeon Lake area solution gas, now anticipated for mid-May of 1998. Coachlight however anticipates reduced revenue and cash flow in early 1998 as a result of substantially weaker oil prices to date.

To: Kerm Yerman who wrote (10506)	5/4/1998 7:44:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Ram Petroleums continues Production Testing Listed: The Toronto Stock Exchange Trading Symbol: RPL.A TORONTO, May 4 /CNW/ - Ram Petroleums Limited announces that production testing is continuing on the Airu-1 discovery well on its 321,000 acre Rio Putumayo block in southern Colombia in which it has a 100% working interest. A swabbing unit was placed at the well on Saturday, May 2nd. The unit was unable to swab the well down below 1,800' from the surface and 28 degrees API clean oil, with no water, was being taken out at a rate of 600 barrels of oil per day, the working capacity of the swabbing unit. It will be necessary to place a pump at the well to establish its productive capacity, which is estimated at between 1,000 and 1,500 BOPD. Pressure tools are still down the hole, but a response to date indicates the possibility of some formation damage, which might be remedied by pumping at higher rates. Full test results will be announced when they are available.

To: Kerm Yerman who wrote (10506)	5/4/1998 7:46:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Precision Drilling Completes Northland Energy Acquisition CALGARY, May 4 /CNW/ - Precision Drilling Corporation (''Precision'') announced today it has completed its previously announced acquisition of the shares of Northland Energy Corporation for an undisclosed purchase price. The acquisition of Northland strategically positions Precision as a world leader in Underbalanced Drilling Technology and at the same time further expands its presence geographically. Northland has developed a leading worldwide position in Underbalanced Drilling Technology, which has proven to be an extremely successful application in the development of sensitive and mature oil and gas fields. The combination with Precision will provide Northland with the ability to fully exploit the potential of this rapidly expanding technology. At the same time, the acquisition would open up new markets for Precision to enhance its position in the international oil and gas service industry. Precision Drilling Corporation is listed on The Toronto Stock Exchange under the ticker symbol PD and on the New York Stock Exchange under the ticker symbol PDS.

To: Kerm Yerman who wrote (10506)	5/4/1998 7:50:00 PM
From: Arnie	Respond to of 15196

CORP. / Occidental Petroleum elects Executive Vice-President LOS ANGELES, May 4 /CNW/ -- Occidental Petroleum Corporation (NYSE: OXY) announced today that its board of directors has elected John W. Morgan as executive vice president - operations. Mr. Morgan, 44, is currently vice-president - operations of Occidental, responsible for a variety of major projects involving the company's worldwide operations. Mr. Morgan joined Occidental's chemical division in May 1984 as director of corporate projects after nine years with Olin Corporation in a number of marketing and project positions of increasing responsibility. He was named director - operations in Occidental's headquarters in Los Angeles in October 1984, and was elected vice president in 1991. Mr. Morgan holds a B.S. degree and an M.S. degree, both from Kansas State University.

To: Kerm Yerman who wrote (10506)	5/4/1998 7:53:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Syncrude Canada reports 1st 3 months Results FORT MCMURRAY, AB, May 4 /CNW/ - Syncrude Canada today announced its operating and financial results for the first quarter of 1998. Shipments of Syncrude Sweet Blend crude oil totalled 15.8 million barrels or about 176,000 barrels per day. Shipments of Syncrude Sweet Blend crude oil for the same period in 1997 totalled 17.4 million barrels or an average of 193,000 barrels per day. Syncrude Chairman and Chief Executive Officer Eric Newell called the overall first quarter results ''very encouraging, although our financial performance suffered largely due to depressed crude oil prices.'' Operating Results Total unit costs, which include G & A, research and financing, for the first quarter were $18.88 per barrel, compared to $14.12 per barrel for the same period in 1997. Production costs for the quarter were $17.86 per barrel, compared to $13.40 per barrel in 1997. In 1998, the annual maintenance turn-around was in January and February, while in 1997 it occurred in the second quarter. March 1998 shipments averaged 229,000 barrels per day, at a total unit cost of $11.45 per barrel, reflecting the smooth performance of the plant following the maintenance work. Total expense for the first quarter was $298 million in 1998, compared to $246 million in 1997. The difference is largely accounted for by the maintenance turn-around. Operating expenditures were $283 million, $50 million more than in 1997. Business Results The Owners' revenue for the first quarter was $347 million, compared to $528 million posted in 1997. Deemed Unit Price for Syncrude Sweet Blend crude oil averaged $21.91 ($15.92 U.S.-W.T.I.) per barrel at the plant gate, compared to $30.32 ($22.86 U.S.-W.T.I.) in 1997. Prices for WTI crude fell to as low as $13.21 U.S. per barrel during the quarter. Operating cash flow was $75 million, $178 million less than the first quarter of 1997. Net cash flow was a negative $25 million, compared to $173 million for 1997. Chairman's Remarks ''From an operations perspective, the maintenance work completed across the site proceeded very smoothly and was completed on time and on budget,'' Mr. Newell said. ''In addition, the very stable operation since the processing units returned to service, and another quarter of excellent environmental performance are highlights. ''Looking ahead to the second quarter, our highest priority is to continue to maintain a safe and reliable operation and maintain very high production rates through to the end of the year so that we can achieve our goal of shipping 80 million barrels. ''With low oil prices, cost containment efforts will be stringent as we attempt to maintain a positive cash flow for the operation.'' Capital expenditures Capital expenditures were $84 million, $16 million higher than the same period in 1997. Major capital projects in the first quarter included basic engineering for the composite tails project, construction work on the thin fine tails return system, engineering and construction on additional chlorides management systems, construction work on the first-stage Upgrader debottleneck, engineering for the second North Mine production train, winter site preparation work at the new Aurora Mine, engineering for Aurora and the second stage Upgrader debottleneck, and design work for the $3 billion Upgrader Expansion. Joint Venture Ownership Syncrude Canada is a joint venture owned by AEC Oil Sands, L.P., AEC Oil Sands Limited Partnership, Athabasca Oil Sands Investments Inc., Canadian Oil Sands Investments Inc., Canadian Occidental Petroleum Ltd., Gulf Canada Resources Ltd., Imperial Oil Resources, Mocal Energy Ltd., Murphy Oil Company Ltd., and Petro-Canada. SYNCRUDE FIRST QUARTER OPERATING AND BUSINESS RESULTS << Operating Results For the 3 months ending March 31 1998 1997 ------------------------------------------------------------------------ Shipments of Syncrude Sweet Blend millions of barrels 15.8 17.4 thousands of barrels per day 176 193 ------------------------------------------------------------------------ Direct operating expenditures (millions of $Cdn) 283 233 ------------------------------------------------------------------------ Production unit costs ($Cdn/barrel) 17.86 13.40 ------------------------------------------------------------------------ Corporate G&A/research/financing (millions of $Cdn) 15 13 ------------------------------------------------------------------------ Total expense (millions of $Cdn) 298 246 ------------------------------------------------------------------------ Total unit costs ($Cdn/barrel) 18.88 14.12 ------------------------------------------------------------------------ Capital expenditures (millions of $Cdn) 84 68 ------------------------------------------------------------------------ >> The business results of Syncrude are prepared by management to estimate what the financial position, results of operations, and changes in financial position might have been if Syncrude operated on a stand-alone separate company basis. << Business Results For the 3 months ending March 31 1998 1997 ------------------------------------------------------------------------ Owners' revenue millions of dollars 347 528 Deemed Unit Price ($Cdn/barrel at plant gate) 21.91 30.32 ------------------------------------------------------------------------ Operating cash flow millions of $Cdn 75 253 $Cdn/barrel 4.77 14.53 ------------------------------------------------------------------------ Net cash flow millions of $Cdn (25) 173 $Cdn/barrel (1.56) 9.92 ------------------------------------------------------------------------ >> OPERATING RESULTS - Direct operating expenditures include costs directly related to production and exclude corporate expenditures (G&A, research, financing), capital, depreciation and amortization, provision for future site reclamation, changes in product inventory volumes, provision for workforce realignment, long-term borrowing costs and income taxes. - Total expenditures include direct operating expenditures plus corporate G&A, research, and deemed financing costs. - Capital expenditures include investment and development capital, and sustaining capital for maintaining plant operations. BUSINESS RESULTS - Owners' revenue is based on the weighted average price received by the individual owners of The Syncrude Project from their sales to third parties (Deemed Unit Price), applied to the volume shipped, net of transportation, before Crown royalties. - Operating cash flow equals revenue after Crown royalties, less direct operating expenditures and after working capital adjustments, but before corporate and capital expenditures. - Net cash flow equals operating cash flow, less corporate G&A, research, certain financing costs, and capital expenditures. Note: Visit our web site at syncrude.com for more information about Syncrude as well as downloadable photographs of the operation located n the Library area of the site.

To: Kerm Yerman who wrote (10506)	5/4/1998 7:57:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Enertec Resource Services reports 1st 6 months Results CALGARY, May 4 /CNW/ - In the text of this report, use of the terms ''1998'' and ''1997'' refer to the six months ended March 31, 1998 and March 31, 1997 respectively, unless otherwise qualified. The terms ''Q1/98'', ''Q2/98'', ''Q1/97'' and ''Q2/97'' refer to the first and second fiscal quarters of the years indicated. FINANCIAL REVIEW ---------------- Fiscal 1998 got off to a slow start; net revenue in Q1/98 came in $4.2 million less than Q1/97. However, Q2/98 produced the highest-ever net revenue of $26.9 million, exceeding by $5.1 million the Q2/97 previous record of $21.8 million. The combination of the unfavorable conditions in Q1/98 and the unparalleled performance of Q2/98 resulted in net revenue for 1998 of $43.1 million compared to $42.2 million in 1997. In 1998, depreciation and amortization is $0.7 million higher than in 1997. This increase results from capital expenditures undertaken primarily in Q1/98. Most of these were to modernize and expand ENERTEC's vibrator fleet and to undertake the electronic modifications necessary to accommodate the new High Fidelity Vibratory Seismic (''HFVS'') technique patented by Mobil Oil Corporation and currently being employed by ENERTEC under a semi-exclusive licence in Canada. Net earnings for Q2/98, at $3.6 million ($0.50 per share, basic), are unprecedented. The previous record occurred in Q2/97, at $2.9 million ($0.47 per share, basic). Net earnings for 1998 are $4.7 million ($0.65 per share, basic), compared to $4.8 million ($0.77 per share, basic) in 1997. Cash flow for Q2/98 is $6.1 million ($0.84 per share, basic), compared to $5.6 million ($0.91 per share, basic) for Q2/97. The $6.1 million is a record, the $0.84 is not; the prior year's $0.91 still stands as the high. Cash flow for 1998 is $9.3 million ($1.27 per share, basic), for 1997 it was $9.9 million ($1.59 per share, basic). EBITDA in Q2/98 is a record at $9.2 million, compared to the previous high of $7.1 million in Q2/97. In spite of the constrained revenue levels in Q1/98, EBITDA for 1998 is a six-month best at $12.5 million, up from the previous record of $11.5 million in 1997. From the commencement of its share repurchase program on February 26, 1998, ENERTEC has purchased 42,100 of its common shares at an average price of $7.80. The company has the authority to acquire further shares and will continue to assess the market for the opportunity to make purchases. OPERATIONS REVIEW ----------------- Data Acquisition - In Q2/98 the product line generated record net revenue of $20.5 million, relative to its prior mark of $16.6 million in Q2/97. For 1998, net revenue is $31.2 million, compared to $31.4 million for 1997; net revenue in Q1/97 was considerably higher than Q1/98. The high revenue in Q2/98 resulted from both the Canadian and US operations generating performance that exceeded Q2/97. Canadian revenue was strengthened by demand for HFVS data acquisition from a large strategic alliance customer. The Data Acquisition product line reached an historic high EBITDA of $7.6 million in Q2/98, which is $2.1 million higher than the previous record of $5.5 million set in Q2/97. Despite the slow start to the fiscal year, EBITDA for 1998, amounting to $9.4 million, has set a six-month record, exceeding the 1997 figure of $8.3 million by $1.1 million. These record achievements resulted from the strong second quarter revenue and control of expenses relative to the expanded revenue. The collection of a problematic receivable has allowed the elimination of a loss provision that arose from a difficult contract in the US during 1996; this increased EBITDA in Q2/98 by $0.9 million. Data Processing -This product line set records in all of its measures. Net revenue for Q2/98 is $2.6 million, compared to $2.2 million for Q2/97; both the Canadian and the US operations increased their revenue between these two periods. For 1998, net revenue is $4.9 million, compared to $3.9 million in 1997. EBITDA for Q2/98 is $1.1 million, relative to $1.0 million for Q2/97. For 1998 it is $2.2 million, compared to $1.8 million for 1997. Once again, both the US and Canadian operations enjoyed an improvement between the 1997 and 1998 periods. Marine Services -The product line has its least productive time during the winter period when weather in the Gulf of Mexico restricts geophysical work. Its most prolific activity is in the summer months when weather is invariably more suitable. Net revenue has, however, increased. For Q2/98 it rose to $3.8 million, from $3.0 million in Q2/97, and for 1998 it increased slightly to $7.0 million from $6.9 million in 1997. EBITDA, however, is lower thus far in 1998, due to expansion of the fleet from three to four vessels during last summer. The cost of carrying the additional capacity through winter should be by its profitability in the summer period. For Q2/98, EBITDA is $0.5 million relative to $0.6 million in Q2/97, and for 1998 it is $0.9 million relative to $1.4 million for 1997. OUTLOOK ------- The earnings contributions for the balance of the fiscal year will come primarily from ENERTEC's US operations. Marine Services has seen no curtailment of demand from recent oil price weakness and its vessels are 90% committed for the balance of the fiscal year; this product line will be the chief contributor to profitability in Q3/98 and Q4/98. Projects in the Gulf of Mexico tend to be large, long-term and capital intensive and are not unduly disrupted by short-term commodity price fluctuations. ENERTEC's Data Acquisition operation is increasing both its market share and its profitability in the US marketplace which, despite weak oil prices, is retaining strength as a result of the current shift to natural gas related activity. The Data Processing product line, while still relatively small in the US, has established itself as a profitable operation which is working to expand its customer base. This operation is well advanced in the review and assessment of a slightly larger operation in a different US location with a view to acquiring it. The complementary characteristics of these two operations are an exciting combination on which to grow a US presence. ENERTEC's Marine Services and Data Acquisition product lines are also considering acquisition growth options in the US. The Canadian market has been affected by the current oil price instability which is expected to cause oil and gas producers to reduce their demand for seismic services by 20% to 30% in the immediate future. The longer term direction of this demand will depend on the duration of the oil price slump and the inclination of producers to shift their activity to the currently more lucrative natural gas market. ENERTEC anticipates not being significantly affected by any reduction in demand for seismic services because of the financial stability of its customer base and its ability to offer the new HFVS data acquisition technology mentioned above. HFVS can be used to markedly improve the resolution of both 2D and 3D seismic data or alternatively to reduce the cost of the acquisition of the data through productivity efficiencies in the field. In the third quarter, ENERTEC will be evaluating the prospect of acquiring speculative seismic data in Canada using this technology. ENERTEC's strong balance sheet reflecting, at March 31, 1998, working capital of $8.0 million and no debt, positions the company well for expansion of its business through acquisitions. On behalf of the Board of Directors, ----------------------------------- Murray A. Olson, President and Chief Executive Officer << ENERTEC RESOURCE SERVICES INC. CONSOLIDATED BALANCE SHEET March 31 September 30 ($ millions) 1998 1997 ------------- ------------- ASSETS (Unaudited) Current assets $30.7 $24.2 Capital assets 31.9 25.8 Other 2.4 2.6 ------------- ------------- $65.0 $52.6 ------------- ------------- ------------- ------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities $22.8 $15.2 Long-term debt 0.0 0.1 Shareholders' equity: Capital stock 23.0 23.0 Other 0.4 0.2 Retained earnings 18.8 14.1 ------------- ------------- 42.2 37.3 ------------- ------------- $65.0 $52.6 ------------- ------------- ------------- ------------- ENERTEC RESOURCE SERVICES INC. CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS Unaudited ($millions, except per share information) Apr. Jul. Oct. Jan. Jan. Six months ended to to to to to March 31 Jun. Sep. Dec. Mar. Mar. 1997 1997 1997 1998 1997 1998 1997 ---------------------------------- ------------- Revenue, gross $18.0 $25.0 $20.3 $41.2 $38.9 $61.5 $68.5 Reimbursable costs 6.4 8.1 4.1 14.3 17.1 18.4 26.3 ---------------------------------- ------------- Revenue, net 11.6 16.9 16.2 26.9 21.8 43.1 42.2 Cost of sales 8.0 10.9 11.9 15.7 13.0 27.6 27.6 ---------------------------------- ------------ Operating margin 3.6 6.0 4.3 11.2 8.8 15.5 14.6 Research and development expenses 0.3 0.3 0.3 0.4 0.2 0.7 0.5 General and administrative expenses 1.1 1.6 0.7 1.6 1.5 2.3 2.6 Depreciation and amortization 1.9 2.8 2.1 2.4 2.2 4.5 3.8 ---------------------------------- ------------ Earnings before the following: 0.3 1.3 1.2 6.8 4.9 8.0 7.7 Interest expense 0.1 0.0 0.0 0.1 0.2 0.1 0.3 Other income 0.2 0.1 0.2 0.2 0.3 0.4 0.3 --------------------------------- ------------ Earnings before income taxes 0.4 1.4 1.4 6.9 5.0 8.3 7.7 Income taxes (recovery) Current (0.4) 0.4 0.3 3.2 1.5 3.5 1.5 Deferred 0.1 (0.1) 0.0 0.1 0.6 0.1 1.4 ---------------------------------- ------------ (0.3) 0.3 0.3 3.3 2.1 3.6 2.9 ---------------------------------- ------------ Net earnings $ 0.7 $ 1.1 $ 1.1 $ 3.6 $ 2.9 $ 4.7 $ 4.8 Retained earnings, beginning of period 12.3 13.0 14.1 15.2 9.4 14.1 7.5 Retained earnings, end of period $13.0 $14.1 $15.2 $18.8 $12.3 $18.8 $12.3 ---------------------------------- ------------ ---------------------------------- ------------ EBITDA $ 2.2 $ 4.1 $ 3.3 $ 9.2 $ 7.1 $12.5 $11.5 ---------------------------------- ------------ ---------------------------------- ------------ Net earnings per common share: Basic $0.07 $0.15 $0.15 $0.50 $0.47 $0.65 $0.77 Fully-diluted $0.07 $0.14 $0.14 $0.46 $0.42 $0.60 $0.70 ---------------------------------- ------------ ---------------------------------- ------------ Weighted average number of common shares outstanding, in thousands: Basic 7,283 6,269 Fully diluted 7,968 6,932 ENERTEC RESOURCE SERVICES INC. CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION Unaudited ($millions, except per share information) Apr. Jul. Oct. Jan. Jan. Six months ended to to to to to March 31 Jun. Sep. Dec. Mar. Mar 1997 1997 1997 1998 1997 1998 1997 ---------------------------------- ------------ Cash provided by (used in): Operations Net earnings $ 0.7 $ 1.1 $ 1.1 $ 3.6 $ 2.9 $ 4.7 $ 4.8 Items not involving cash: Depreciation and amortization 1.9 2.8 2.1 2.4 2.2 4.5 3.8 Deferred income taxes (recovery) 0.1 (0.1) 0.0 0.1 0.6 0.1 1.4 Other (0.1) 0.0 0.0 0.0 (0.1) 0.0 (0.1) ---------------------------------- ------------ Cash flow from operations 2.6 3.8 3.2 6.1 5.6 9.3 9.9 Change in non-cash working capital 2.8 (2.0) (1.9) (0.3) 1.2 (2.2) 0.4 ---------------------------------- ------------ 5.4 1.8 1.3 5.8 6.8 7.1 10.3 ---------------------------------- ------------ Financing Issue of common shares 7.7 0.0 0.0 0.1 0.2 0.1 0.2 Repayment of long-term debt (6.3) (0.6) (0.1) 0.0 (0.3) (0.1) (0.4) ---------------------------------- ------------ 1.4 (0.6) (0.1) 0.1 (0.1) 0.0 (0.2) ---------------------------------- ------------ Investments Purchase of capital assets (2.5) (1.4) (8.1) (2.4) (3.1) (10.5) (7.4) Proceeds on disposition of capital assets 0.1 0.2 0.0 0.1 0.1 0.1 0.2 ---------------------------------- ------------ (2.4) (1.2) (8.1) (2.3) (3.0) (10.4) (7.2) ---------------------------------- ------------ Increase (decrease) in cash position 4.4 0.0 (6.9) 3.6 3.7 (3.3) 2.9 Cash position, beginning of period 0.4 4.8 4.8 (2.1) (3.3) 4.8 (2.5) ---------------------------------- ------------ Cash position, end of period $ 4.8 $ 4.8 $(2.1) $1.5 $ 0.4 $ 1.5 $ 0.4 ---------------------------------- ------------ ---------------------------------- ------------ Cash flow from operations per common share: Basic $0.33 $0.51 $0.43 $0.84 $0.91 $1.27 $1.59 Fully diluted $0.32 $0.45 $0.39 $0.78 $0.83 $1.17 $1.44 ---------------------------------- ------------ ---------------------------------- ------------ ENERTEC RESOURCE SERVICES INC. SEGMENTED INFORMATION Unaudited ($millions) Industry Segments ----------------- Six months ended March 31 ------------------------- Data Marine Data Production Acquisition Services Processing Enhancement Total ---------- -------- ---------- ----------- ----- 1998 1997 1998 1997 1998 1997 1998 1997 1998 1997 ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- Net revenue $31.2 $31.4 $7.0 $6.9 $4.9 $3.9 $0.0 $0.0 $43.1 $42.2 Interest expense 0.1 0.2 0.0 0.1 0.0 0.0 0.0 0.0 0.1 0.3 Depreciation and amortization 3.4 3.0 0.7 0.5 0.4 0.3 0.0 0.0 4.5 3.8 Earnings before income taxes 6.4 5.4 0.1 0.8 1.8 1.5 0.0 0.0 8.3 7.7 EBITDA 9.4 8.3 0.9 1.4 2.2 1.8 0.0 0.0 12.5 11.5 Total assets 47.6 44.5 10.1 11.4 7.3 4.4 0.0 0.0 65.0 60.3 Capital expenditures 8.8 5.4 0.8 0.4 0.8 1.6 0.1 0.0 10.5 7.4 Three months ended March 31 -------------- Net revenue $20.5 $16.6 $3.8 $3.0 $2.6 $2.2 $0.0 $0.0 $26.9 $21.8 Interest expense 0.1 0.1 0.0 0.1 0.0 0.0 0.0 0.0 0.1 0.2 Depreciation and amortization 1.9 1.8 0.3 0.2 0.2 0.2 0.0 0.0 2.4 2.2 Earnings before income taxes 5.9 3.8 0.1 0.3 0.9 0.9 0.0 0.0 6.9 5.0 EBITDA 7.6 5.5 0.5 0.6 1.1 1.0 0.0 0.0 9.2 7.1 Capital expenditures 1.9 2.3 0.4 0.2 0.1 0.6 0.0 0.0 2.4 3.1 Geographic Segments ------------------- Capital Assets -------------- Net Revenue and Goodwill ----------- -------------- 1998 1997 1998 1997 ---- ---- ---- ---- Six months ended March 31 ------------------------- Canada $30.8 $28.8 $24.1 $20.2 United States 12.3 13.4 10.1 8.9 ----- ----- ----- ----- $43.1 $42.2 $34.2 $29.1 ----- ----- ----- ----- ----- ----- ----- ----- Three months ended March 31 ---------------------------- Canada $20.1 $18.8 United States 6.8 3.0 ----- ----- $26.9 $21.8 ----- ----- ----- ----- >>

To: Kerm Yerman who wrote (10506)	5/4/1998 7:59:00 PM
From: Arnie	Respond to of 15196

CORP. / C.P.M. Technologies announces Appointment CALGARY, May 4 /CNW/ - C.P.M. Technologies Inc. (''C.P.M.''), a junior capital pool company, announces that John McPherson has joined the Corporation as Vice-President Finance and Chief Financial Officer. Mr. McPherson is a chartered accountant with approximately 25 years of experience. He was most recently Vice-President Finance at Intensity Resources Ltd. C.P.M. also announces that it has signed a letter of intent to acquire additional producing oil and gas properties from an Alberta based oil and gas company in consideration for $120,000 to further consolidate the properties identified in its previously announced acquisitions.

To: Kerm Yerman who wrote (10506)	5/4/1998 8:01:00 PM
From: Arnie	Respond to of 15196

CORP. / Cirque Energy announces Appointments CALGARY, May 4 /CNW/ - CIRQUE ENERGY LTD. has announced the appointments of Ross A. Jones to Vice President of Finance, Mr. Alan G. Franks to Manager of Operations, and Mr. Hugh Mogensen to Cirque's Board of Directors. Mr. Jones (CMA) has been active in the oil and gas industry for over 18 years; most recently as controller for Canadian 88 Energy Corp. In his new capacity, Mr. Jones will be responsible to oversee Cirque's financial and business development opportunities. Mr. Franks (P. Eng.) has 18 years of oil and gas experience in the drilling, completions, facilities and marketing disciplines. He previously held the position of Operations Manager at Cube Energy Corp. since 1986. He graduated from the University of Wyoming in 1983 with a Bachelor of Science degree in Petroleum Engineering. Mr. Mogensen is a Professional Geologist who graduated in 1956 with a Bachelor of Science degree from the University of Alberta. He has 40 years of experience in petroleum and mining exploration and management. During his career he has been Manager of International Operations with Norcen Energy Resources Ltd., President of Campbell Resources Ltd., and founding President and later Chairman of the Board of Inverness Petroleum Ltd. He currently operates his own natural resource and investment company from Victoria, BC and is director of several public mining and oil companies. ON BEHALF OF THE BOARD OF DIRECTORS, Glen A. Phillips President & Chief Executive Officer

To: Kerm Yerman who wrote (10506)	5/4/1998 8:03:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Canadian Fracmaster completes Acquisition CALGARY, May 4 /CNW/ - Canadian Fracmaster Ltd. announces today that it has completed its acquisition of certain assets of the oilfield service business of TransTexas Gas Corporation. The acquisition approximately doubles the capacity of Fracmaster's U.S. operations and positions the Company in the active South Texas gas drilling market. This acquisition allows Fracmaster to effectively serve the entire onshore Texas market. The purchase includes blenders, cement pumpers, coiled tubing equipment, support vehicles, mixing plants and other servicing equipment. Also included in the purchase were office, maintenance shop, laboratory, buildings and land located in Laredo and Zapata, Texas. As part of the agreement, Fracmaster agreed to hire the equipment operators that were affected by the purchase. The acquisition was financed by a portion of a recent term-debt financing in the amount of $50 million CDN; the remainder of the financing will be used for other corporate purposes. The U.S. is not only the world's largest market for onshore oil and natural gas drilling, it also has the world's largest inventory of producing wells. With this acquisition, Fracmaster is delivering on its commitment to expand through acquisitions and internal growth in the major oil and gas exploration and production regions of the U.S. Canadian Fracmaster Ltd. is an international oil and gas service and production company which is listed on the New York Stock Exchange, the Toronto Stock Exchange and the Montreal Exchange and trades under the symbol ''FMA''. For further information on the Company please visit our web site at fracmaster.com.

To: Kerm Yerman who wrote (10506)	5/4/1998 8:08:00 PM
From: Arnie	Read Replies (5) \| Respond to of 15196

PIPELINES / AEC Pipelines L.P. reports 1st 3 months Results CALGARY, MAY 4 /CNW/ - AEC PIPELINES, L.P. today reported financial results for the three months ending March 31st, 1998. Distributable Cash totaled $20.3 million ($0.19 per unit) and net income for the same period was $14.9 million ($0.14 per unit). As the initial public offering of the Partnership closed on April 9, 1997, comparative financial results for the quarter are not presented. On March 16, 1998, the General Partner approved the distribution of $0.19 per partnership unit on April 30, 1998 to holders of record on March 31, 1998. With the payment of the final instalment on March 31, the Class A Partnership Units now trade under the symbol ALB.UN on the Toronto and Alberta stock exchanges. OPERATIONS First-quarter operations were as anticipated on each of the Cold Lake, Alberta Oil Sands (AOSPL) and Wabasca River pipelines. Express Pipeline System volumes were slightly ahead of forecast for the first quarter of 1998. During the second and third quarters of 1998, however, volumes on the southern leg of the Express Pipeline System (Platte Pipeline) will be somewhat constrained as a result of initiating a testing program on the pipeline. In response to a July 2, 1997 line failure near Gurley, Nebraska, Platte Pipeline developed the testing program which, if successful, is expected to result in the restoration of full operating pressure on the pipeline by the end of 1998. The program involves the use of a specially developed internal inspection tool and hydrostatic testing over certain sections of the pipeline. The General Partner anticipates that this program, if successful, will minimize capital costs and throughput restrictions and not have a material impact on 1998 Distributable Cash. NEW DEVELOPMENTS Engineering design and procurement continues on the AOSPL system expansion to meet Syncrude's announced expansion. The General Partner anticipates that construction of the initial phase will commence in mid-1999 and be completed in 2000, increasing sustainable throughput capacity to 265,000 barrels per day from its current capacity of 238,000 barrels per day. Further expansions of AOSPL capacity will occur post-2000 as Syncrude proceeds through its planned expansion program. AEC PIPELINES, L.P. Financial Results Express entered into a joint tariff with other pipeline companies, effective April 1, 1998, for access to the refinery market in Salt Lake City. A number of market development initiatives by Express should result in increasing throughputs into the Salt Lake City market as crude production in the Rocky Mountain region declines. Oil prices continue to remain very low compared to last year. Although uncertainty remains about the development of new heavy oil projects, the Partnership's financial and contractual agreements provide stability against fluctuations in commodity prices. AEC Pipelines is well positioned to transport planned increases in production and will continue to actively participate in discussions regarding further pipeline development in northeastern Alberta. AEC Pipelines, L.P. is a Canadian limited partnership engaged in the transportation of crude oil through the Alberta Oil Sands, Cold Lake, Wabasca River, Express and Platte pipelines. ADVISORY Certain information regarding the Limited Partnership set forth in this document, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with those plans or operations, such as loss of market, currency fluctuations, environmental risks, industry competition, and ability to access sufficient capital from internal and external resources; as a consequence, actual results may differ materially from those anticipated in the forward-looking statements. << AEC PIPELINES, L.P. UNAUDITED COMBINED STATEMENT OF INCOME AND DISTRIBUTABLE CASH THREE MONTHS ENDED MARCH 31, (thousands of dollars, except per unit amounts) 1998 ------- Tariff revenue from Pipeline Assets $ 23,954 ---------- Expenses Operating 8,212 Depreciation 3,804 ---------- 12,016 ---------- Income before investment income 11,938 Add (deduct): Interest income on investment in AEC Express Holdings Ltd. 4,253 Other interest income 156 Interest expense (65) Management fee payable by the Partnership to the General Partner (474) ---------- Income of the Partnership before income taxes 15,808 ---------- Income taxes of Alberta Oil Sands Pipeline Ltd. Current 907 Deferred (20) ---------- 887 ---------- Net income of the Partnership for the period $ 14,921 Add (deduct): Depreciation 3,804 Deferred income taxes (20) Interest income on investment in AEC Express Holdings Ltd. (4,253) AEC Express Operating Cash 8,784 Capital expenditures on Pipeline Assets (10,237) Capital expenditures in connection with the interest in the Express Pipeline System (2,801) Capital expenditures funded by AEC 497 Long-term borrowings 9,186 Reserve for capital expenditures 191 Reserve for future distributions 201 ---------- Distributable Cash for the period $ 20,273 ---------- ---------- Per Class A Unit Distributable Cash $ 0.19 ---------- ---------- Net income $ 0.14 ---------- ---------- AEC PIPELINES, L.P. UNAUDITED COMBINED BALANCE SHEET (thousands of dollars) March 31, December 31, 1998 1997 --------- ------------- ASSETS Current assets Cash and short-term investments $ 12,733 $ 3,236 Accounts receivable 7,901 7,932 Accrued interest receivable - AEC Express Holdings Ltd. 16,824 12,571 --------- --------- 37,458 23,739 --------- --------- Investment in AEC Express Holdings Ltd. 200,000 200,000 --------- --------- Capital assets 199,892 193,459 --------- --------- $ 437,350 $ 417,198 --------- --------- --------- --------- LIABILITIES AND PARTNERS' EQUITY Current liabilities Partnership distributions payable Public unitholders $ 6,082 $ 6,082 Alberta Energy Company Ltd. 34,113 20,324 General Partner 1,004 598 Accounts payable 2,486 3,347 Due to General Partner 5,706 3,199 --------- --------- 49,391 33,550 --------- --------- Alberta Oil Sands Pipeline Ltd. deferred income taxes 3,127 3,147 --------- --------- Long-term debt 14,402 5,216 --------- --------- Partners' equity Limited partners 368,332 373,079 General Partner 2,098 2,206 --------- --------- 370,430 375,285 --------- --------- $ 437,350 $ 417,198 --------- --------- --------- --------- AEC PIPELINES, L.P. UNAUDITED COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION THREE MONTHS ENDED MARCH 31, (thousands of dollars) 1998 ------- Operating activities Net income $ 14,921 Depreciation 3,804 Deferred income taxes of Alberta Oil Sands Pipeline Ltd. (20) ---------- Cash flow from operations 18,705 Net change in non-cash working capital 11,619 ---------- 30,324 ---------- Investing activities Acquisition of assets from Alberta Energy Company Ltd. - Additions to capital assets (10,237) ---------- (10,237) ---------- Financing activities Long-term borrowings 9,186 Partners' capital contributions 497 Partnership distributions (20,273) ---------- (10,590) ---------- Increase in cash and short-term investments 9,497 Cash and short-term investments at beginning of period 3,236 ---------- Cash and short-term investments at end of period $ 12,733 ---------- ---------- 1. Formation of the Partnership On January 1, 1997, AEC Pipelines, L.P. (the ''Partnership'') acquired Alberta Energy Company Ltd.'s (''AEC'') 19% joint venture interest in the Wabasca River Pipeline in consideration for Class B partnership units. On April 9, 1997, the Partnership completed a public offering of Class A limited partnership units, represented by instalment receipts, for net cash proceeds of $295,280,000. The second instalment of $4.00 per Class A Unit was due and payable on or before March 31, 1998. The proceeds from the issue were applied to acquire AEC's interest in the Cold Lake and AOSPL systems, and to make a $200,000,000 investment in AEC Express Holdings Ltd., the entity which holds AEC's interest in the Express Pipeline System. 2. Comparative Figures Comparative financial results for the quarter ended March 31, 1997 (prior to the April 9, 1997 closing of the public offering of Class A Units) have not been provided as these results were entirely for AEC's account and reflected limited operating activity.

To: Kerm Yerman who wrote (10506)	5/5/1998 7:50:00 AM
From: Kerm Yerman	Read Replies (4) \| Respond to of 15196

MARKET ACITIVITY/TRADING NOTES FOR DAY ENDING MONDAY, MAY 4, 1998 (1) MARKET WATCH Toronto stocks close higher in quiet trading. BCE, Nortel and Newbridge lead the advance on Bay Street After climbing more than 120 points to 7,822.25, the TSE 300 composite index retreated to close at 7,737.36, up 35.25.About 101.2 million shares changed hands on the TSE, up from 96 million shares traded on Friday. Trading was valued at C$1.62 billion. Advancers outpaced decliners 570 to 466 with 291 issues unchanged. Overall, in Toronto 11 of the TSE 300's 14 subindexes closed in positive territory, led by a 1.2 percent jump in the conglomerates sector and a 1.4 percent jump in the utilities group. Conglomerates and pipelines both rose 0.7 percent. Investors are flocking to the safety of blue chips as the spectre of rising interest rates is never far from the horizon. "The list is getting narrower and narrower," said David Jarvis, a liability trader at Levesque Beaubien Geoffrion. "It's harder to find good stories here. People are going after growth stories." Jarvis said uncertainty about a rate rise in the U.S. is pushing investors to migrate to the reliable and safe stocks known for their consistent performances. "People are a little nervous and rightly so," said Jarvis. "Anything that's got growth to it and is going to do it in a low inflation environment, people want." Such seesaw days are typical with investors nervous about talk of higher interest rates and market corrections, said Pat Blandford, a senior vice-president with Midland Walwyn Capital Corp. "There are still lots of people who raise these concerns about whether the market is too high, and they can be convinced to sell a stock when it rushes up," Blandford said. Among buyers, he added, there are few signs of blind market mania. "I continue to be pleased that although the market's this high, nobody I speak with is saying 'Buy anything on the board, it's going north,' " he said. "You don't hear that kind of raucous enthusiasm." BCE Inc., Northern Telecom Ltd. and Newbridge Networks Corp. contributed 17 points to the benchmark's advance. BCE shares (bce/tse) rose $1.25 to $62.85 while Nortel (ntl/tse), 51.7%-owned by BCE, rose 90› to $89. Newbridge shares (nnc/tse) climbed $2.70 to $44.80 amid speculation the company would announce at a press conference today it would launch a new product with AT&T Corp. Newbridge shares have gained 17.3% in the past five days. CAE Inc. gained $0.40 to $13.65, while steel producer Ipsco Inc. was up 85 cents to $43.85. Northern Telecom gained 90 cents to $89.00. The real estate group was third-best on the day, gaining 0.80 per cent on the strength of Oxford Properties, up 75 cents to $38.00, and TrizecHahn, which gained $0.35 to $33.25. The TSE utilities subindex has gained 28% in the past three sessions. "Investors have turned to utilities -- and BCE is the leader in that group -- because concern over government approval [for two proposed banking mergers] has taken the steam out of the banks in Canada," said Paul Devlin, vice president at MMA Investment Managers Ltd. Canadian Pacific Ltd. (CP/tse) rose 30› to a record $44.20 after the rail and shipping company said on Friday its railroad unit would increase the price it would pay stockholders of Ontario & Quebec Railway Co. for the remaining shares in the firm that it does not already own. Bombardier Inc. (BBDb/TSE) rose 40› to a record $39.15 after the Montreal-based maker of planes, trains and recreational equipment said on Friday it received a US$166 million order for eight regional jets from France's Brit Air. Bombardier has gained 9.1% in the past four sessions. Fonorola Inc. shares (fon/tse) advanced $1.10 to $64.10 after it reached agreements to extend its network for business customers. The groups that normally boost the market fell today. The heavily weighted financial services sector dipped 0.1 percent and metals and minerals dropped 0.6 percent. The gold and precious minerals sector fell 0.3 percent even though the June price for Comex gold rose US$1.80 to US$306.50. Cominco slid $0.70 to $22.50 and Cameco was down 20 cents to $47.65. The gold and silver group was down 0.26 per cent. Placer Dome lost 20 cents to $20.80. Franco-Nevada Mining gained 15 cents to $24.75. The financial services index, which has suffered amid talk of a possible hike in interest rates, lost 0.14 per cent. Toronto Dominion Bank lost $0.75 to $64.45, while Bank of Montreal was down $0.35 to $77.70. Other Canadian markets were mixed. The Montreal Exchange portfolio rose 4.99 points to 3876.41. The Vancouver Stock Exchange lost 2.63 points, or 0.4%, to close at 633.2. Wall Street stocks rose to a record close as drug companies benefited from good news of a new anti-cancer drug. Investors stepped in to buy U.S. stocks on optimism that continued low interest rates will enable companies to expand profits. The Dow Jones industrial average climbed 45.59 points, or 0.5%, to close at a record 9192.66. It reached an intraday high of 9261.91 before falling back. The benchmark is up 16% so far this year. Union Carbide Corp. (uk/nyse) led the gain, rising US$3 5/16 to US$51 1/2 after a report that British Petroleum Co. prepared, then abandoned, plans to take over the U.S. chemical maker. The Standard & Poor's 500 index rose 1.07 points to 1122.07. About 555.9 million shares changed hands on the Big Board, down from 576.6 million shares traded on Friday. The Nasdaq composite index rose 5.42 points, or 0.3%, to 1878.86. EntreMed Inc. (enmd/nasdaq) soared US$39 3/4 to close at US$51 13/16 after earlier touching US$85 intraday. The National Cancer Institute said two of the company's drugs offer the best hope for treating cancer. Bristol-Myers Squibb Co. (bmy/nyse), which owns a stake in EntreMed and is helping develop one of the drugs, surged US$3 1/8 to US$109 5/16. Echlin Inc. (ech/nyse) rallied US$4 to US$51 9/16 after Dana Corp. agreed to buy the autoparts company for US$4.1 billion in stock and assumed debt, topping a US$3 billion hostile bid by SPX Corp. The offer equals a price of US$55 a share. Dana shares (dcn/nyse) fell US$3 1/16 to US$56 1/8 while SPX (spw/nyse) rose US$1 1/16 to US$73 5/16. Eastman Kodak Co. (ek/nyse), one of the 30 Dow industrials, rose US$2 9/16 to US$76 3/16 as Lehman Brothers Inc. told its clients to buy Kodak stock. Major international markets were mixed. London: In London, The Financial Times Index of 100 industrials was closed for the holiday May bank Monday. It will reopen today. Frankfurt:The Dax index soared 207.22 points, or 4.1%, to 5314.66. Tokyo:The Japanese market was closed for a national holiday. Trading will resume today. Hong Kong: Stocks drifted to a lower close with liquidity drying up as cautious investors remained on the sidelines with little news to spur buying. The Hang Seng index fell 124.26 points, or 1.2%, to 10,439.42. On Friday, the index had gained 180.00 points. Seoul: The key index in South Korea slumped 14.73 points or 3.6 percent to 391.80, its lowest level since early January. Traders said shares on the Seoul Stock Exchange tumbled because of worries over labor unrest amid rising unemployment. Some 20,000 workers and sympathetic students, led by the militant Korea Confederation of Trade Unions, on Friday protested massive layoffs by South Korea's large conglomerates. The protest led to a violent clash with police. Because of South Korea's financial crisis, thousands of companies have collapsed, and the number of jobless people has doubled to 1.5 million since December. Bangkok: Thai share prices also slumped because of concerns that the Japanese economic weakness will drag down the Thai currency. Japan is a major investor, creditor and export market for Thailand. In late trading, the baht was quoted 38.55 to the U.S. dollar, up from 38.60 baht at the close Thursday. The Thai market was closed on Friday. The governor of Thailand's central bank announced after the market closed that he has resigned following an investigation into his role in depleting the country's foreign reserves, a miscalculation that helped trigger the Asian economic crisis. The Stock Exchange of Thailand Index lost 11.42 points, or 2.8 percent, to 400.71. Taipei: Share prices closed higher, boosted by technology stocks, amid expectations of solid April sales figures. The market's key Weighted Price Index rose 67.14 points, or 0.8 percent, to 8,360.60. Singapore: Share prices closed lower in across-the-board selling, with banking shares badly hit. The benchmark Straits Times Industrial Index fell 17.00 points, or 1.1 percent, to 1,476.40. Jakarta: Share prices closed lower after the government announced its plan to increase fuel and power prices starting Tuesday. The Composite Index fell 2.531 points, or 0.6 percent, to 445.994. Kuala Lumpur: Malaysian shares closed generally lower, but the the key index rose because of the rise in several blue chip stocks. The Composite Index rose 1.46 points, or 0.2 percent, to 627.43. Manila: Philippine shares closed higher as investors continued to position for a possible rally after the country's presidential election next week. The Philippine Stock Exchange Index of 30 selected issues rose 26.80 points, or 1.2 percent, to 2,208.12. Sydney: Australian shares closed higher, but poor trade data dampened sentiment. The market was supported by climbing industrial stocks, while a weak gold price saw most gold mining companies fall in value. The all ordinaries index rose 8.1 points, or 0.3%, to 2812.3. Wellington: New Zealand share prices closed lower. The NZSE-40 Capital Index fell 15.60 points, or 0.6 percent, to 2,237.69. INVESTMENT NEWS Brokers catch IPO fever String of high-profile issues planned Globe & Mail Canadian investment dealers are anticipating a promised revival in one of their most profitable lines of business: taking companies public for the first time. Brokers plan to tap investors for hundreds of millions of dollars with a string of high-profile initial public offerings (IPO) in the next few weeks. And they're hungry for more. With stock markets strong, "I'm sure most of the dealers . . . are out pitching left, right and centre," said Ron Schwarz, executive director of institutional equity research at CIBC Wood Gundy Securities Inc. Forthcoming deals include forestry player E.B. Eddy Ltd. , which could raise more than $750-million; Danier Leather Inc. , which may bring in more than $60-million; computer maker Celestica Inc. , which will raise up to $400-million (U.S.); and Salter Street Films Ltd. , which is shooting for $15-million (Canadian). Bay Street is pitching "high-profile, strong, brand-name-type companies," Mr. Schwarz said. Potential buyers have plenty of cash in the wake of big takeovers such as the $3-billion-plus purchase of Norcen Energy Resources Ltd. by Union Pacific Resources Group Inc., said Irwin Michael, president of I.A. Michael Investment Counsel Ltd. in Toronto. "Clearly that money has to be reinvested." Investors, many of whom were burned in last year's new issue market, have been doing better this year. Of 18 newly public stocks, funds and trusts that started trading on the Toronto Stock Exchange in the first four months of 1998, 13 have increased in price. That's better than 1997, when investors in almost half of the TSE's new stocks lost money. As of this January, 44 of last year's 99 newly listed stocks had slumped from their offering price. Until now, new stocks have been a tough sell in 1998, with the TSE recording 24 IPO announcements in the first four months of the year, down from 28 last year. (The exchange's list includes some issues that haven't started trading yet.) "The level of activity is not particularly high," said Roger Dent, an analyst at Yorkton Securities Inc. In a nervous market, brokers have resorted to selling "split share" vehicles, such as Allbanc Split Corp. or Pipe NT Corp. They simply divide blue-chip bank and pipeline shares into a preferred share that pay out dividends and a capital share that holds out the allure of capital gains. One problem has been the small size of financings, which limit the amount that fund managers and other investors can buy, Mr. Michael said. Take computer consultant Sierra Systems Group Inc. of Vancouver, which raised $65.2-million last month. The shares have soared more than 50 per cent from their $18 issue price, the best showing by an IPO this year. Many of last year's slumping IPOs were income and royalty trusts, which pay out the cash flow from assets ranging from oil wells to mattress manufacturing. The market for income trusts fizzled amid oversupply that saw $4.7-billion of trusts come on the market in the fourth quarter alone. Scotia Capital Markets' index of royalty and income units returned a thin 2.2 per cent in 1997 after earning 34.9 for investors in 1996. New IPOs for 1998 Issuer: Sierra Systems Listing date: April 15 Size of deal ($million): $65.2 Offer price: $18.00 Current price: $27.50 % change from issue: +52.8% Lead broker: CIBC Wood Gundy Issuer: Descartes Systems Group Listing date: January 20 Size of deal ($million): $57.0 Offer price: $7.00 Current price: $9.80 % change from issue: +40.0% Lead broker: Griffiths McBurney Issuer: Decoma International Listing date: February 27 Size of deal ($million): $100.0 Offer price: $9.50 Current price: $13.30 % change from issue: +40.0% Lead broker: Nesbitt Burns Issuer: Informission Group Listing date: April 15 Size of deal ($million): $35.0 Offer price: $10.25 Current price: $12.35 % change from issue: +20.5% Lead broker: ScotiaMcLeod Issuer: Northstar Drilling Listing date: April 30 Size of deal ($million): $12.0 Offer price: $2.75 Current price: $3.25 % change from issue: +18.2% Lead broker: Peters & Co. Issuer: Allbanc Split (Capital) Listing date: February 24 Size of deal ($million): $192.0 Offer price: $38.15 Current price: $43.00 % change from issue: +12.7% Lead broker: ScotiaMcLeod Issuer: Clarke Inc. * Listing date: March 17 Size of deal ($million): $46.9 Offer price: $7.00 Current price: $7.85 % change from issue: +12.1% Lead broker: First Marathon Issuer: Sherritt Power Listing date: March 5 Size of deal ($million): $35.5 Offer price: $4.41 Current price: $4.80 % change from issue: +8.8% Lead broker: Griffiths McBurney Issuer: Allbanc Split (Preferred) Listing date: February 24 Size of deal ($million): $126.0 Offer price: $25.00 Current price: $26.50 % change from issue: +6.0% Lead broker: ScotiaMcLeod Issuer: Residential Equities REIT Listing date: February 13 Size of deal ($million): $138.0 Offer price: $6.00 Current price: $6.35 % change from issue: 5.8% Lead broker: RBC Dominion Issuer: Pipe NT (Preferred) Listing date: February 20 Size of deal ($million)*: $121.3 Offer price: $25.00 Current price: $25.45 % change from issue: +1.8% Lead broker: Nesbitt Burns Issuer: Oceanex Income Fund Listing date: January 5 Size of deal ($million): $52.4 Offer price: $6.00 Current price: $6.10 % change from issue: +1.7% Lead broker: First Marathon Issuer: MCM Split Share (Preferred) Listing date: February 24 Size of deal ($million): $71.3 Offer price: $15.00 Current price: $15.15 % change from issue: +1.0 Lead broker: RBC Dominion Issuer: Mackenzie Income Trust Listing date: April 6 Size of deal ($million): $120.0 Offer price: $15.00 Current price: $14.90 % change from issue: -0.7% Lead broker: Levesque Beaubien Issuer: Pipe NT (Capital) Listing date: February 20 Size of deal ($million): $79.0 Offer price: $16.28 Current price: $16.00 % change from issue: -1.7% Lead broker: Nesbitt Burns Issuer: MCM Split Share cl A Listing date: February 24 Size of deal ($million)*: $71.3 Offer price: $15.00 Current price: $14.95 % change from issue: -0.3% Lead broker: RBC Dominion Issuer: TransAlta Power LP Listing date: April 3 Size of deal ($million): $178.0 Offer price: $6.00 Current price: $5.50 % change from issue: -8.3% Lead broker: CIBC Wood Gundy Issuer: Anthem Properties Listing date: March 18 Size of deal ($million): $36.0 Offer price: $9.00 Current price: $7.95 % change from issue: -11.7 Lead broker: Goepel Shields - * Oceanex, Residential Equities and TransAlta Power were sold as instalment receipts with $6 due immediately and $4 payable in a year. Clarke was sold as a receipt priced at $7 immediately and $6.75 a year later. Mackenzie Income Trust was priced at $15 upfront with another $10 due in November. - ** Size of deal reflects only the first payment. Source: TSE, Globe Information Services and Bloomberg Financial Services Tense Times At TSE As Leadership Is Questioned The brokerages that own the Toronto Stock Exchange have a message for president Rowland Fleming: 'He doesn't own the country club. He's been hired to manage it.' Globe & Mail AT a Toronto Stock Exchange board of governors meeting on April 20, there was only one item on the agenda -- TSE president and chief executive officer Rowland Fleming. Exchange members had said they were becoming increasingly unhappy with Mr. Fleming's stewardship. So the governors decided the time had come for the board to exercise more control and put Mr. Fleming on a shorter leash. Mr. Fleming was not invited to that session. A source close to the situation said that at a meeting the next day with Barbara Stymiest, chairwoman of the TSE's board of governors, and Daniel Sullivan, its vice-chairman, he was reminded just who is in charge. He was told that all significant decisions are made by the board and various exchange committees, and the CEO's responsibility is to implement those decisions. Most of the exchange's governors are executives from its member brokerage firms. The prevailing view among industry members is that Mr. Fleming has failed to grasp that he runs Canada's premier exchange on behalf of the brokerage firms that own it. "He doesn't own the country club. He's been hired to manage it," a trader said. In public, Mr. Fleming and exchange members are doing their utmost to put aside their differences. Ms. Stymiest and Mr. Sullivan issued a statement to members last week, endorsing the CEO's leadership. And Mr. Fleming, widely criticized for not consulting enough with industry members, is making more of an effort to talk with them. Behind the scenes, sources close to the situation say, tensions remain. Mr. Fleming does not want to talk on the record about his relationship with the board. But sources say he is already feeling ground down over the slow pace of change at the exchange. Now that the board intends to get more actively involved, the sources doubt whether he will adjust to having his authority curtailed. They say he has neither the temperament nor the background to lead by consensus. Had Mr. Fleming spent his career on Bay Street, he would have understood intuitively how the exchange operates. But before joining the TSE in 1995, he had spent his entire career in corporate management, including a stint as president of National Trust Co. Any role a corporate board plays in setting strategy is usually done in response to the vision the CEO puts forward, said J. Richard Finlay, head of the Toronto-based Centre for Corporate and Public Governance. At the exchange, Mr. Fleming is being asked to do the reverse -- respond to strategy set by the board and TSE committees. "There's obviously a bad fit between his talents and abilities and the requirements of the job," said Donald Thain, a corporate governance expert and professor emeritus at the Richard Ivey School of Business in London, Ont. The sources also say friction between Mr. Fleming and the brokerage industry raises questions about the lack of effective leadership and governance at the venerable institution at a time when it is grappling to define its place in a fast-changing world. The advent of electronic trading systems and other alternatives, including mini-exchanges operated out of the big brokerage firm's offices, all threaten to supplant the TSE in its role as Canada's central auction market. "It's a very serious problem because the TSE is too important to the public interest to be managed in the narrow-minded, backward way that it's managed," Mr. Thain said. Mr. Fleming acknowledged in a speech in January that the TSE has become "marginalized" because it has failed to respond to new competitors. What has prompted so much industry grumbling about the exchange these days is its technology problem. The TSE is behind schedule in introducing a state-of-the-art electronic trading system, leaving traders to make do with an aging system that is slow and unreliable. That became a lightning rod for a host of other complaints and acted as a wake-up call for the board to get more involved. "Technology is by far and away the biggest issue for the exchange today," Mr. Sullivan, the TSE vice-chairman and deputy chairman of Scotia Capital Markets, said in an interview. "Systems have to work or people are out of business. "We have had a lot of discussion recently between the board and management, and I can say equivocally that the board and management are working together in dealing with these challenging technology issues." But industry critics have their doubts about the co-operative style of management that the board wants to impose. They say such a system works only when an organization has a monopoly in a fairly static environment. In the competitive environment confronting the exchange, "it's too slow, too inefficient, too cumbersome and too unfocused," said a source close to the TSE. "The decisions take so long to get made that staff get fatigued, management gets fatigued and eventually you get ground down by it to the point where inertia sets in." This source also said decisions are made not in the best interests of the exchange itself but to accommodate the vested interests of its owners. As the industry becomes consolidated in fewer hands, the TSE is increasingly representing the views of only a handful of its 103 member firms, he said. The 10 biggest brokerage firms account for 80 to 90 per cent of stock trading on the exchange. Five of those 10 have seats on the 14-member board of governors. The source close to the TSE said two bank-owned brokerage firms will become even more dominant if Ottawa approves the proposed mergers between Royal Bank of Canada and Bank of Montreal and Canadian Imperial Bank of Commerce and Toronto-Dominion Bank. "The model here is not going to work for the future, particularly if two organizations represent more than 50 per cent of the business. They might as well start their own exchange." In an interview, Mr. Fleming agreed that a co-operative such as the TSE faces significant challenges. "The issues of ownership and governance of an exchange in a competitive environment have been the subject of much discussion by our counterparts around the world and a variety of new approaches are either being discussed or being implemented," he said. "I'm not persuaded that the perfect model has yet been discovered." Mr. Thain, the corporate governance expert, acknowledges that the exchange is a difficult place to manage because there are so many vested interests. "It's a bit like herding cats," he said. "But cats all want to eat and if you put enough milk out in the right places you can herd cats."