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

To: Arnie who wrote (10521)	5/4/1998 9:04:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Heartland Resources to Seek Compensation as a Result of Sable Gas Project CDN SYMBOL: HRTL MAY 4, 1998 EAST RIVER POINT, NOVA SCOTIA--Heartland Resources Inc. ("Heartland") says it recently became aware that the gas processing plant, slugcatcher and portions of the onshore gas and NGL pipelines to be constructed by the Sable Offshore Energy Project ("SOEP"), near Goldboro, Nova Scotia, will be situated on lands now or former owned by Her Majesty the Queen in Right of the Province of Nova Scotia ("Crown Lands") in respect of which Heartland holds mineral exploration licenses and the right to apply for a mining lease. On April 16, 1998, Heartland requested that SOEP provide it with site specific information respecting its proposed gas processing plant, slugcatcher and pipelines. To date, Heartland has not been provided with this information. Heartland further says that it has been advised by the National Energy Board ("Board") that SOEP applied for and on February 26, 1998 was granted an exemption from certain requirements of the National Energy Board Act ("Act") in respect of the construction of the gas processing plant and slugcatcher. Heartland is of the view that the obtaining of this exemption has prejudiced Heartland's normal rights as a "person interested" under the Act. In its exemption application to the Board, SOEP stated it had been advised by the Province of Nova Scotia that the Province had made provision to compensate a major Nova Scotia based forest products company that held timber cutting rights on the subject Crown Lands. Heartland questions why it was not notified prior to SOEP's applying for the exemption, as Heartland's rights will be affected by the construction of the gas processing plant and slugcatcher. Heartland also finds it disconcerting that all "persons interested" have not been dealt with in an equitable manner. Heartland says that the construction of the gas processing plant, slugcatcher and pipelines on the subject lands is commercially prejudicial to its interests and that it will seek full compensation respecting same. The shares of Heartland are quoted for trading on the Canadian Dealing Network Inc. under the symbol "HRTL".

To: Arnie who wrote (10521)	5/4/1998 9:07:00 PM
From: Herb Duncan	Respond to of 15196

ENERGY TRUSTS / APF Agrees to Swap Assets; Company Will Acquire Long-Life Properties at Pembina TSE SYMBOL: AY.UN MAY 4, 1998 CALGARY, ALBERTA--APF Energy Inc., on behalf of APF Energy Trust, announced today that it has agreed to an asset swap. The transaction, which will result in APF being a net acquirer, will see APF purchase interests in the Pembina area in exchange for its Sibbald and Grande Prairie properties, plus $6.6 million in cash. In completing the swap, APF will acquire various working interests in the North Pembina Cardium Unit No. 1, Pembina Cardium Unit No. 9, Pembina Cardium Unit No. 12, Pembina Cardium Unit No. 20 and Cynthia Pembina Cardium O Unit No. 1. The light Cardium oil production in the Pembina area is amongst the longest-lived in the Western Canadian Sedimentary Basin. These assets have a reserve life index of 15.8 years, based on APF's estimate of established reserves (proved plus one-half probable) of 2,802 mboe and 1998 average daily production of 487 boe. Total daily production at Grande Prairie and Sibbald was expected to average 360 boe during 1998. Upon closing the transaction, APF's production will be weighted approximately 60 percent to natural gas and 40 percent to oil and natural gas liquids. This swap will be the third transaction announced by APF this year and adds to APF's previously reported acquisitions at Caroline ($2.65 million, news release dated February 2, 1998) and Saskatchewan ($2.40 million, news release dated April 16, 1998). /T/ APF ENERGY TRUST MARKET & INVESTOR INFORMATION Date of IPO Dec. 17/96 TSE symbol AY.UN Units outstanding 3.5 million Issue price $10.00 Dec. 31/97 closing price $9.10 52-week high $10.30 52-week low $8.65 Recent price $9.40 Market capitalization $32.9 million Distributions since IPO $2.40/unit 1997 distributions declared $1.78/unit 1997 distribution rate 19.6 percent

To: Arnie who wrote (10521)	5/4/1998 9:10:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / First Quarter 'Encouraging' Reports Syncrude MAY 4, 1998 FORT McMURRAY, ALBERTA--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 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 of 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. NOTE: Visit our web site at syncrude.com for more information about Syncrude as well as downloadable photographs of the operation located in the Library area of the site. /T/ 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 $Cdn) 84 68 -------------------- -------------------- /T/ The business results of Syncrude are prepared by management to estimate what the financial position, results of operations, and changes in financial position might have been if Syncrude operated on a stand-alone separate company basis. /T/ BUSINESS RESULTS For the 3 months ending March 31 1998 1997 ----------------------------------------------------------- Owners' revenue millions of dollars 347 528 Deemed Unit Price ($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 /T/ 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.

To: Arnie who wrote (10521)	5/4/1998 9:15:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Petromet Resources - First Interim Report TSE SYMBOL: PNT NASDAQ SYMBOL: PNTGF MAY 4, 1998 CALGARY, ALBERTA-- /T/ FOR THE THREE MONTHS ENDED MARCH 31, 1998 HIGHLIGHTS 1998 1997 Percent Change Financial ($ millions, except per share amounts) Gross revenue $ 8.5 $ 9.4 -10 Net income 1.3 2.1 -38 Per share 0.03 0.06 -50 Cash flow 5.3 6.2 -15 Per share 0.12 0.17 -29 Capital expenditures 16.2 13.4 21 Long term debt, net of working capital 54.6 44.8 21 Shareholders' equity 101.6 80.0 27 Total assets 176.2 138.9 27 OPERATING Production Natural gas (mmcf/d) 36.2 38.3 -5 Oil and NGL (bbls/d) 1,187 940 26 BOE/d 4,807 4,774 1 Average Prices Natural gas ($/mcf) 1.91 2.05 -7 Oil and NGL ($/bbl) 19.78 26.53 -25 Oil equivalent ($/BOE) Revenue 19.59 21.92 -11 Royalties 1.87 3.38 -45 Operating expenses 2.25 1.90 18 Operating netback 15.47 16.64 -7 /T/ Petroleum and natural gas production increased to 4,807 BOE per day in the first quarter of 1998 from 4,774 BOE per day in the first quarter of 1997. The composition of this production changed as natural gas production declined five percent over the comparable period and oil and natural gas liquids production increased 26 percent. Natural gas production decreased as declines exceeded new production additions during the period. However, oil production was up substantially as a result of new production from the High Prairie area. New natural gas production from the Wild River area did not commence until mid March, and therefore had a minimal impact on first quarter results. Petromet participated in the drilling/re-entry of 10 gross (seven net) wells during the first three months of 1998, resulting in four natural gas, two oil and four dry and abandoned wells. Petromet's average working interest was 73 percent. A total of 25 kilometres of 2-D and 65 square kilometres of 3-D seismic were shot in four project areas during the first quarter of 1998. Land purchases at Crown land sales for the first quarter of 1998 totalled 31,040 gross (30,720 net) acres. These purchases increased Petromet's undeveloped land holdings to 603,000 gross (551,000 net) acres, as at March 31, 1998. Production and revenue will increase throughout the remainder of 1998. Current production is 5,400 BOE per day. Production increases are forecast at Wild River with the addition of the recently completed Leduc reef well. This well was placed on production in mid March at an initial natural gas rate of seven million cubic feet per day net to Petromet's 80 percent working interest. Another 4,250-metre Leduc reef test well commenced drilling in late March and is expected to reach total depth in July. Further drilling of additional Leduc reef targets is planned in 1998. Continued exploration and follow-up development drilling in the Kakwa and High Prairie areas is planned following breakup. At Kakwa, activities include the completion and tie-in of a recently drilled natural gas well, the drilling of two 3,000-metre wells after interpretation of recently acquired seismic data, and participation in a 4,100-metre Wabamun test well. At High Prairie, several wells are planned to further explore and develop light gravity Gilwood oil outlined by Petromet's recent drilling and a 3-D seismic survey. Petromet will also continue to exploit Bigstone, its largest producing area. Several new exploration prospects, including the west central foothills region, will be advanced.

To: Arnie who wrote (10521)	5/4/1998 9:21:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

FINANCING / Redeco Reaches Accord With Costilla ASE SYMBOL: RE MAY 4, 1998 CALGARY, ALBERTA--Redeco Energy Inc. today announced that it has reached with Costilla Energy, Inc., its 50 percent joint venture partner in Moldova, whereby Costilla has provided to Redeco sufficient working capital to allow Redeco to pursue additional financing or a restructuring of its affairs. This agreement remedies a previously announced payment default by Redeco to Costilla. Under the agreement, Costilla has paid US$350,000 to Redeco, will forgive all outstanding amounts owned by Redeco to Costilla (estimated currently at US$1.6 million) and will assign Redeco a 3.5 percent royalty interest on Concession revenues generated in Moldova. In exchange, Redeco has agreed to assign a 50 percent cost-bearing interest in the Moldovan Concession to Costilla. Assignments under the transaction will occur following approval by Redeco's founding shareholders, who hold over 60 percent of the issued and outstanding shares of Redeco, have agreed to support this agreement and vote in favor of the arrangement at the Shareholders Meeting scheduled for June 24, 1998. Redeco has the right, at any time until August 2, 1998, to reacquire all or a part of its cost-bearing interest in the Concession by repaying the $350,000 plus accrued interest, paying amounts owed under the Operating Agreement, as well as giving back the royalty interest. William C. Liedtke, CEO of Redeco, said "Redeco is extremely pleased with the opportunity presented by this agreement. It relieves the Company from short term financial pressure and frees up our resources to go out into the market with what we believe is a very exciting story." "In Romania, the National Agency for Mineral Resources awarded us last week three concession blocks covering more than 3.1 million acres in Southern Romania, subject to final government approval. In Moldova, we have now confirmed, through analysis of the extensive Soviet seismic study of the Moldovan deep basin, that earlier Soviet drilling never reached, much less tested, the 30 deep structures indicated." Liedtke further stated that the Company's recent progress, coupled with the continued strengthening of the international oil markets, should boost the Company's ability to attract new investment, either through direct financing or strategic alliance with another company, both of which the Company is actively pursuing. Redeco is an oil & gas exploration and development company headquartered in Calgary, Alberta. In addition to the Romanian concessions under award, Redeco holds a 50 percent interest in the oil and gas exploration and production rights to an 8.3-million-acre concession covering the entire country of Moldova on the eastern border of Romania. Today, Redeco has three fields under development in Moldova. The Company is listed on the Alberta Stock exchange under the symbol "RE".