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

To: Kerm Yerman who wrote (10553)	5/6/1998 8:34:00 PM
From: Arnie	Respond to of 15196

FINANCING / Tri Link Resources closes Financing Tri Link Resources Ltd. (TSE: TLR) announced today that it has closed its previously announced offering of 2,700,000 Common Shares at $15.25 per share and 1,000,000 flow-through Common Shares at $16.95 per share, for gross proceeds of $58,125,000. The underwriting syndicate was led by Goepel McDermid Inc. and included Nesbitt Burns Inc., CIBC Wood Gundy Securities Inc., Griffiths McBurney & Partners, RBC Dominion Securities Inc., ScotiaMcLeod Inc. and TD Securities Inc. Proceeds from the financing will be used by Tri Link for debt repayment and for its capital expenditure program. Tri Link is an Alberta corporation engaged in the exploration for, and development and production of, oil and natural gas. Tri Link's Common Shares are listed and posted for trading on The Toronto Stock Exchange under the symbol "TLR" For further information please contact: G. W. Burns President and Chief Executive Officer or James B. McCashin Vice President, Corporate Affairs (403) 262-4601 (403) 265-0892 (Fax)

To: Kerm Yerman who wrote (10553)	5/6/1998 8:58:00 PM
From: Arnie	Respond to of 15196

FINANCING / Crispin Energy obtains receipt for Final Prospectus CRISPIN ENERGY INC. announces that on April 3, 1998 receipts were obtained for Crispin's final prospectus dated March 31, 1998 from securities regulatory authorities in Alberta, British Columbia and Ontario. The final prospectus qualifies for distribution in Alberta, British Columbia and Ontario 5,498,829 common shares created and issued by Crispin pursuant to a Special Warrant Offering dated October 20, 1997. Crispin Energy Inc. is an exploration, development and production company listed on the Alberta Stock Exchange under the trading symbol "CEY". For information, please contact Donald C. Munro, President & CEO or Murray D. Graham, Vice-President & CFO at (403) 234-7407, Fax (403) 265-5993, by e-mail at crispin@cadvision.com or visit our website at www.crispinenergy.com.

To: Kerm Yerman who wrote (10553)	5/6/1998 9:01:00 PM
From: Arnie	Respond to of 15196

STOCK CONSOLIDATION / Maxx Petroleum Ltd. "Maxx common shares will be consolidated on the basis of one common share for each four issued and outstanding common shares", reported Burl Aycock, Chairman and Chief Executive Officer. Shareholders overwhelmingly approved the consolidation at the Special and Annual Meeting of Shareholders, held on May 5, 1998. It is Management's view that, on a consolidated basis, investors will be able to more accurately compare the Company's relative performance to its peers. It is also Management's view that, after consolidation, the Company's shares will appeal to a broader range of investors since the trading value of the shares should exceed minimum margin requirements. A Letter of Transmittal will be mailed to the registered shareholders of Maxx with instructions for exchanging pre-consolidation for post-consolidation share certificates. It is expected that the common shares of Maxx Petroleum Ltd. will commence trading on The Toronto Stock Exchange and the American Stock Exchange on a post-consolidation basis during the week beginning May 11, 1998. The Shareholder Rights Protection Plan was also approved at the shareholder's meeting. The plan was previously adopted by the Company's Board of Directors on September 16, 1997. Maxx Petroleum Ltd. is a junior oil and gas exploration and development company based in Calgary, Alberta. Maxx shares trade on The Toronto Stock Exchange under the symbol "MXP" and on the American Stock Exchange under the symbol "MMX". For further information please contact: Burl N. Aycock, Chief Executive Officer, or Bob Rosine, President and Chief Operating Officer, or Brent Kirkby, Vice President, Finance and Chief Financial Officer 900, 606 - 4th Street S.W. Calgary, AB T2P 1T1 (403) 261 - 6666

To: Kerm Yerman who wrote (10553)	5/6/1998 9:04:00 PM
From: Arnie	Respond to of 15196

NEW TSE LISTING / Oxbow Exploration Inc, CALGARY, May 6 /CNW/ - OXBOW EXPLORATION INC. is pleased to announce that its common shares have been listed for trading on the Toronto Stock Exchange (''TSE''), effective May 6, 1998, under the symbol ''OXB''. The Company is also listed on the Alberta Stock Exchange. Geoff Williams, President and CEO of Oxbow commented, ''The TSE listing provides Oxbow with exposure to a broader range of investors and is another positive step in strengthening the foundation for future growth.'' OXBOW EXPLORATION INC. is a full cycle oil and gas company located in Calgary. Its operations extend from northeast British Columbia to southeast Saskatchewan. OXBOW is listed on the Alberta and Toronto Stock Exchanges and trades as ''OXB''.

To: Kerm Yerman who wrote (10553)	5/6/1998 9:07:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Denbury Resources reports 1st 3 months Results DALLAS and CALGARY, Alberta, May 6 /CNW/ -- Denbury Resources Inc. (NYSE: DNR) ("Denbury" or the "Company") is pleased to report its quarterly operating and financial results for the first quarter of 1998 with comparatives. All dollar amounts are in U.S. dollars and production volumes and dollars are expressed on a net revenue interest basis with gas volumes converted to equivalent barrels at 6:1 ("BOE"). FINANCIAL HIGHLIGHTS (Amounts in thousands of U.S. dollars) Three months ended March 31, Percentage 1998 1997 Change Revenues: Oil sales 16,173 12,877 + 26% Gas sales 9,015 8,264 + 9% Interest and other income 367 512 - 28% Total revenues 25,555 21,653 + 18% Expenses: Production 7,854 5,053 + 55% General and administrative 1,776 1,521 + 17% Interest 4,391 79 + 5,458% Depletion and depreciation 12,387 6,625 + 87% Franchise taxes 200 97 + 106% Total expenses 26,608 13,375 + 99% Income (loss) before income taxes (1,053) 8,278 - 113% Provision for income taxes 373 (3,063) - 112% NET INCOME (LOSS) (680) 5,215 - 113% Net income (loss) per common share: Basic (0.03) 0.26 - 112% Fully diluted (0.03) 0.24 - 113% Average common shares outstanding 23,425 20,094 + 17% Three months ended March 31, Percentage 1998 1997 Change Production (daily - net of royalties) Oil (barrels) 14,728 7,143 + 106% Gas (mcf) 40,275 30,674 + 31% BOE (6:1) 21,441 12,256 + 75% Unit sales price Oil (per barrel) 12.20 20.03 - 39% Gas (per mcf) 2.49 2.99 - 17% Cash flow from operations (A) 11,455 14,922 - 23% Cash flow per common share: Primary (B) 0.49 0.74 - 34% Fully diluted (C) 0.46 0.68 - 32% Oil & gas capital investments 26,410 15,142 + 74% Total assets 459,334 175,256 + 162% Total debt 165,017 168 + 98,124% Shareholders' equity 252,888 148,192 + 71% BOE data (6:1) Revenue 13.05 19.17 - 32% Production expenses (4.07) (4.58) - 11% Production netback 8.98 14.59 - 38% General and administrative (1.02) (1.47) - 30% Interest (2.02) 0.41 - 593% Cash flow (A) 5.94 13.53 - 56% (A) Exclusive of the net change in non-cash working capital balances. (B) Cash flow from operations excluding change in working capital balances divided by average common shares outstanding. (C) Assumes conversion or exercise of all securities as of beginning of period and investment of any pro forma proceeds. Denbury posted strong operating results for the first quarter of 1998 with its twentieth consecutive quarterly increase in production and significant reductions in its operating and administrative expenses (on a BOE basis). Production for the first quarter averaged 21,441 BOE/d, an increase of 75% from the first quarter of 1997 and an increase of 35% from the 15,922 BOE/d average in the fourth quarter of 1997. The properties included in the Chevron Acquisition contributed approximately 2,990 BOE per day ("BOE/d") to the increase during the first quarter of 1998 with the remainder of the increase almost solely as a result of internal development. The Company also recognized savings by lowering operating expenses 11% (on a BOE basis) and by lowering administrative expenses 30% (on a BOE basis) when compared to the first quarter of 1997. These savings were achieved due to efficiencies achieved from higher overall and per well production volumes even though the Company had a higher percentage of oil production in 1998 (69%), as compared to 1997 (58%), which typically has a higher operating cost per BOE. The financial results were significantly impacted by the 32% drop in oil and gas product prices (on a BOE basis) between the two periods consisting of a $7.83 per Bbl drop in oil prices (39%) and a $0.50 per Mcf drop in gas prices (17%). The Company also incurred $2.02 of interest expense per BOE in the first quarter of 1998 as a result of the debt incurred to finance the $202 million acquisition from Chevron. This compares to net interest income of $0.41 per BOE in the first quarter of 1997. In response to the lower oil prices, the Company's 1998 capital expenditure program has been reduced to approximately $75 million from its initial level of $95 million. The Company hopes to spend this difference of $20 million on acquisitions around its core properties. Denbury is a rapidly growing independent oil and gas company with its primary operations in the states of Louisiana and Mississippi. The New York Stock Exchange, The Toronto Stock Exchange and the SEC have neither approved nor disapproved the information contained herein. The Company plans to release its second quarter results on August 5, 1998 and its third quarter results on November 5, 1998.

To: Kerm Yerman who wrote (10553)	5/6/1998 9:12:00 PM
From: Arnie	Respond to of 15196

ACQUISITION / Kintail Energy acquires Private Company CALGARY, May 6 /CNW/ - KINTAIL ENERGY INC., announces that it has acquired a private company, which holds oil and gas interests mainly in Central Alberta, for consideration of $465,000 effective January 1, 1998. Payout from existing production is expected in approximately two years. The purchase will be paid for by Kintail using existing cash reserves. Kintail is currently negotiating larger oil and gas acquisitions which are expected to enhance share value. Kintail Energy Inc. is an aggressive oil and gas company which trades on the Alberta Stock exchange under the symbol ''KTE''.

To: Kerm Yerman who wrote (10553)	5/6/1998 9:15:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Ranger Oil Ltd reports 1st 3 months Results CALGARY, May 6 /CNW/ - Ranger Oil Limited announced today its financial and operating results for the three months ended March 31, 1998. Total revenues were US$80.1 million in the first three months of 1998 compared to US$99.2 million in 1997. Higher North American oil production following the ELAN Energy Inc. acquisition in September 1997 was more than offset by a significant decline in oil prices. Ranger's average realized price for conventional oil declined 32 percent to US$14.03 per barrel, from US$ 20.55 per barrel in 1997. Heavy oil prices were particularly low at US$3.20 per barrel due to a widening of the heavy/light oil price differential. North American gas prices at US$1.44 per thousand cubic feet were 23 percent lower than the previous year due to mild winter weather. North Sea gas prices averaged US$3.11 per thousand cubic feet, a twelve percent reduction from 1997, as newly acquired gas production was sold on the spot market. Oil production increased 37 percent to 52,983 barrels per day, from 38,721 barrels in 1997, while gas production increased seven percent to 165.9 million cubic feet per day. Daily North American oil production increased to 30,575 barrels in the first three months of 1998 from 4,369 barrels in 1997. This significant increase was due to the acquisition of ELAN. Heavy oil production was 18,713 barrels per day, 13 percent lower than the last quarter of 1997 due to higher operating cost wells being shut-in as a result of current low heavy oil prices. North American daily gas production declined 12 percent to 127.0 million cubic feet in the first three months of 1998, from 145.1 million cubic feet in 1997, mainly due to the sale of a part of the Company's interest in the Helmet field, in northeast British Columbia, at the end of 1997. North Sea daily oil production decreased 35 percent to 22,408 barrels in the first three months of 1998 from 34,352 barrels in 1997. The Banff field phase one production test contributed 6,106 barrels per day to the first quarter of 1997. Phase two of the Banff development is scheduled to come onstream in the fourth quarter of 1998 and contribute 15,000 barrels of daily production in 1999. Production in the Columba ''B'' and ''D'' fields was restricted in 1998 pending successful completion of water injection wells to provide pressure support to producer wells. North Sea daily gas production increased to 38.9 million cubic feet from 9.8 million cubic feet in 1997. The increase was due to a higher working interest in the Anglia field, improved deliverability and higher buyer nominations. Operating costs increased slightly to US$33.9 million in the first three months of 1998 from US$32.2 million in 1997. On a unit of production basis, operating costs declined to US$5.00 per barrel of oil equivalent compared to US$6.48 in the first quarter of 1997. Heavy oil operating costs of US$3.57 per barrel were 30 percent lower than the last quarter of 1997. Interest expense increased US$4.0 million to US$6.5 million for the quarter as a result of higher debt levels following the ELAN acquisition. General and administrative expense increased to US$4.0 million from US$2.1 million the previous year. Depletion and depreciation expense was US$38.4 million, compared with US$32.3 million in 1997, with the impact of higher volumes being partly offset by a reduced unit of production charge. The Company had a loss before tax of US$4.0 million in the first three months of 1998 compared with earnings of US$26.7 million in 1997. After tax the loss was US$11.4 million (US$0.09 per share) compared to earnings of US$13.1 million (US$0.13 per share) in 1997. Taxes decreased by US$6.2 million mainly due to lower pre-tax earnings. The decline in earnings was mainly due to lower oil prices, with heavy oil operations accounting for the majority of the loss. Funds generated from operations before tax decreased to US$32.7 million in the first three months of 1998 from US$62.4 million in 1997. Funds generated from operations after tax were US$29.5 million (US$0.23 per share) compared to US$47.0 million (US$0.47 per share) in 1997. Net capital expenditures for the first quarter of 1998 were US$70.7 million, US$50.6 million of which was for development projects. In North America, expenditures of US$25.3 million were mainly attributable to the winter drilling program at Helmet, and the exploration programs at Fort Liard and Fort Norman in the Northwest Territories. A potentially significant gas discovery was made at Fort Liard and further testing is planned for this summer. Two wells drilled in the Fort Norman area have been suspended with additional testing to take place next winter. International expenditures of US$22.6 million were mainly for development of the Kiame field in Angola. Kiame is scheduled to commence production mid-year at a rate of 7,000 barrels of oil per day. The North Sea accounted for US$22.8 million, the majority of which related to development expenditures on the Pierce, Ninian, and Columba ''E'' projects. Pierce is scheduled to come onstream in the fourth quarter of 1998 at a rate of 7,000 barrels of oil per day. Columba ''E'' should commence production in the second quarter. Issued by: F. J. Dyment President and Chief Executive Officer << SUMMARY (unaudited) Three Months Ended March 31, 1998 1997 -------------------------------------------------------------------- FINANCIAL (millions of US dollars, except per share amounts) Revenues $ 80.1 $ 99.2 Funds generated from operations before tax $ 32.7 $ 62.4 Funds generated from operations $ 29.5 $ 47.0 Earnings (loss) before tax $ (4.0) $ 26.7 Earnings (loss) $ (11.4) $ 13.1 Per common share Funds generated from operations $ 0.23 $ 0.47 Earnings (loss) $ (0.09) $ 0.13 Dividends $ - $ 0.08 Capital expenditures, net $ 70.7 $ 39.2 -------------------------------------------------------------------- AVERAGE PRICES (U.S. dollars) Crude oil and natural gas liquids (per barrel) North Sea $ 14.06 $ 20.58 North America - conventional $ 13.96 $ 20.31 - heavy $ 3.20 $ - -------------------------------------------------------------------- Weighted Average $ 10.20 $ 20.55 -------------------------------------------------------------------- Natural gas (per thousand cubic feet) North Sea $ 3.11 $ 3.55 North America $ 1.44 $ 1.87 -------------------------------------------------------------------- Weighted Average $ 1.83 $ 1.97 -------------------------------------------------------------------- DAILY PRODUCTION, BEFORE ROYALTIES Crude oil and natural gas liquids (barrels) North Sea 22,408 34,352 North America - conventional 11,862 4,369 - heavy 18,713 - -------------------------------------------------------------------- 52,983 38,721 -------------------------------------------------------------------- Natural gas (million cubic feet) North Sea 38.9 9.8 North America 127.0 145.1 -------------------------------------------------------------------- 165.9 154.9 -------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET (unaudited) (millions of US dollars) March 31, December 31, 1998 1997 -------------------------------------------------------------------- ASSETS Current Assets Cash $ 11.9 $ 22.4 Accounts receivable 68.3 109.2 -------------------------------------------------------------------- 80.2 131.6 Property, Plant and Equipment 1,270.5 1,237.6 -------------------------------------------------------------------- $ 1,350.7 $ 1,369.2 -------------------------------------------------------------------- -------------------------------------------------------------------- LIABILITIES Current Liabilities Accounts payable and accrued liabilities $ 102.6 $ 82.7 Royalties payable 7.9 13.7 Taxes payable 7.7 16.1 Current portion of long-term debt 29.2 15.1 -------------------------------------------------------------------- 147.4 127.6 Long-Term Debt 396.9 427.0 Deferred Revenue 2.3 5.3 Future Site Restoration 77.7 75.9 Deferred Tax 92.3 88.0 SHAREHOLDERS' EQUITY Capital Stock Authorized Preferred and common shares without par value in unlimited number Issued Common shares 125,894,263 (1997 - 125,864,143) 528.4 528.3 Retained Earnings 105.7 117.1 -------------------------------------------------------------------- 634.1 645.4 -------------------------------------------------------------------- $ 1,350.7 $ 1,369.2 -------------------------------------------------------------------- -------------------------------------------------------------------- CONSOLIDATED STATEMENT OF EARNINGS (unaudited) (millions of US dollars, except per share amounts) Three Months Ended March 31, 1998 1997 -------------------------------------------------------------------- REVENUES Oil and gas revenue $ 76.0 $ 99.1 Royalties (9.7) (13.2) -------------------------------------------------------------------- 66.3 85.9 Transportation and processing 10.5 9.7 Other 3.3 3.6 -------------------------------------------------------------------- 80.1 99.2 -------------------------------------------------------------------- EXPENSES Operating 33.9 32.2 General and administrative 4.0 2.1 Interest 6.5 2.5 Depletion and depreciation 38.4 32.3 Future site restoration 1.3 3.4 -------------------------------------------------------------------- 84.1 72.5 -------------------------------------------------------------------- EARNINGS (LOSS) BEFORE TAX (4.0) 26.7 -------------------------------------------------------------------- TAX Petroleum Revenue Tax 4.7 8.1 Income tax 2.7 5.5 -------------------------------------------------------------------- 7.4 13.6 -------------------------------------------------------------------- EARNINGS (LOSS) $ (11.4) $ 13.1 -------------------------------------------------------------------- -------------------------------------------------------------------- Weighted average number of common shares outstanding (thousands) 125,891 99,038 -------------------------------------------------------------------- -------------------------------------------------------------------- Earnings (loss) per common share, basic and fully diluted $ (0.09) $ 0.13 -------------------------------------------------------------------- -------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CHANGES IN CASH (unaudited) (millions of US dollars) Three Months Ended March 31, 1998 1997 -------------------------------------------------------------------- OPERATING ACTIVITIES Earnings (loss) $ (11.4) $ 13.1 Non cash items: Depletion and depreciation 38.4 32.3 Future site restoration 1.3 3.4 Deferred tax (reductions) 4.2 (1.8) Other (3.0) - -------------------------------------------------------------------- Funds generated from operations 29.5 47.0 Changes in non-cash working capital (17.9) 19.4 -------------------------------------------------------------------- 11.6 66.4 -------------------------------------------------------------------- FINANCING ACTIVITIES Long-term debt (16.0) - Common shares issued 0.1 0.5 Common share dividends - (7.9) Changes in non-cash working capital - 7.9 -------------------------------------------------------------------- (15.9) 0.5 -------------------------------------------------------------------- INVESTING ACTIVITIES Property, plant and equipment (72.1) (39.3) Proceeds on sales of property and equipment 1.4 0.1 Changes in non-cash working capital 64.5 (2.4) -------------------------------------------------------------------- (6.2) (41.6) -------------------------------------------------------------------- INCREASE (DECREASE) IN NET CASH (10.5) 25.3 Net cash, beginning of period 22.4 (56.8) -------------------------------------------------------------------- Net cash, end of period $ 11.9 $ (31.5) -------------------------------------------------------------------- --------------------------------------------------------------------

To: Kerm Yerman who wrote (10553)	5/6/1998 9:20:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Remington Energy reports 1st 3 months Results CALGARY, May 6 /CNW/ - Remington today released production and financial highlights for the three months ended March 31, 1998. Overall production averaged 98 mmcf/d of natural gas and 4,500 bbls/d of crude oil and NGL's, up from 47 mmcf/d and 3,100 bbls/d for the same quarter in 1997. Cash flow increased to $0.61 per share from $0.56 per share in the first quarter of 1997. Three Months Ended March 31, 1998 ($000's except per share numbers) 1998 1997 ---- ---- - Oil & gas revenue 28,811 15,059 - Royalties & operations 11,163 4,879 - Interest & G&A 2,342 1,035 - Depreciation & depletion 10,907 5,401 - Cash flow 14,995 8,996 - Cash flow per share 0.61 0.56 - Earnings 1,809 1,779 - Earnings per share 0.07 0.11 - Capital Expenditures 33,883 36,028 (excluding acquisition) - Average Daily Production Oil & NGLs (bbls) 4,500 3,100 Natural Gas (mmcf) 98 47 Combined (BOE) 14,300 7,800 - Basic weighted average 24,507 15,956 shares outstanding (000's) The average gas price during the first quarter of 1998 was $2.38 per mcf, and liquids averaged $19.38 per barrel. During the first quarter of 1998, Remington spent a total of $33.9 million in capital and debt at the end of the quarter was $158.7 million. Operating costs for oil & NGL's remain low at $4.04 per barrel, but for gas they are higher at $0.80 per mcf. Gas operating costs have increased due to the sour gas content at West Stoddart and Cache Creek, and is compounded by minimal recognition of Remington's NGLs in the associated gas streams. Both of these properties will benefit from the construction of the proposed Novagas Canada Limited (NCL) plant at West Stoddart, which will reduce costs and increase NGL recoveries. The NCL project received approval from the B.C. government early last week. Operationally, Remington has continued its aggressive exploration and development program in 1998. Activity in the first quarter of 1998 included 23 gross (20 net) wells. This included 8 wells (7.4 net) in the West Stoddart/Cache Creek area, 2 wells (1.5 net) at Red Creek, 10 wells (9.3 net) at Rigel and Nig Creek and 3 wells (1.9 net) in other areas. This program resulted in 5 (4.2 net) oil wells and 12 (11.3 net) gas wells for a 74% success rate in the quarter. At Red Creek, Remington now has 3 successful horizontal oil wells. At West Stoddart, Remington and Canadian Natural Resources have agreed to work together to unitize the property prior to September 30, 1998. At Cache Creek, the liquid-rich gas field has contributed significantly to the continued growth in Remington's gas production. During the quarter Remington also closed its acquisition of the producing assets of Okanagan Petroleums Limited for 156,930 common shares and $6.8 million.

To: Kerm Yerman who wrote (10553)	5/6/1998 9:23:00 PM
From: Arnie	Respond to of 15196

PIPELINES / Alliance Pipeline secures Financing CALGARY, May 6 /CNW/ - Alliance Pipeline announced today that it has signed agreements with a syndicate of 42 international banks securing up to US$2.6 billion (C$3.6 billion) of non-recourse debt financing for the construction of its natural gas pipeline system. The loan facilities were structured, arranged and underwritten by the Bank of Nova Scotia (administrative agent), the Bank of Montreal and Chase Securities Inc. (syndication agents), and National Westminster Bank (documentation agent). In addition, there are 21 banks acting as co-agents, 6 as managers and 11 as participants. Alliance President and Chief Executive Officer Dennis Cornelson says, ''This is a very important day in the brief history of Alliance. This first-class syndicate of international banks has provided us with debt financing commitments that, together with equity commitments from our partners, give us the financial resources and flexibility needed to complete the construction of the Alliance pipeline system. Members of our banking syndicate have told us that this is the largest project-specific, non-recourse financing ever arranged in North America. This clearly signals another prime example of the wide-ranging support for Alliance.'' The Alliance Pipeline system is designed to carry natural gas from western Canada to the Chicago-area market center for distribution throughout North America. Investors in the Alliance Pipeline Limited Partnerships currently include affiliates of: - Coastal Corporation (NYSE:CGP) - 14.4% - Duke Energy Corporation (NYSE:DUK) - 9.8% - Fort Chicago Energy Partners LP (TSE:FCE.UN) - 26.0% - IPL Energy Inc. (TSE:IPL) - 21.4% - Unocal Corporation (NYSE:UCL) - 9.1 % - Westcoast Energy Inc. (TSE:W) - 14.5% - Williams Companies Inc. (NYSE:WMB) - 4.8%

To: Kerm Yerman who wrote (10553)	5/6/1998 9:26:00 PM
From: Arnie	Read Replies (6) \| Respond to of 15196

FIELD ACTIVITIES / Encal Energy announces Exploration Program CALGARY, May 06 /CNW/ - Encal Energy Ltd. (TSE: ENL, NYSE: ECA) announces that it is commencing an exploration program in eastern Canada. The Company reports that it has signed an agreement to join Shell Canada Limited in its farm-in to Corridor Resources Inc. on Anticosti Island, Quebec. Encal has committed to pay 50 percent of the costs of a three-year exploratory program on the island, subject to a maximum net earning expenditure of $10.0 million. Upon completing its farm-in obligations, Encal will earn an undivided 50 percent working interest in approximately 2.4 million gross exploratory acres before project payout, and an undivided 30% working interest in these lands after five million barrels of oil equivalent have been produced, removed and sold from the island. The program calls for the drilling of four exploratory wells - two in 1998, and one each in 1999 and 2000, plus the acquisition of a minimum of 500 kilometers of new seismic data. The first well is expected to spud in the second quarter of 1998. Encal's capital requirement for the Anticosti Island project during 1998 is estimated to total $6.5 million which will be funded out of the $30 million opportunity capital pool. The Company's total capital budget for this year is $160 million, of which at least $130 million has been allocated to exploration and development projects in its core operating districts in western Canada. In commenting on this program, Encal President David D. Johnson said ''This opportunity exposes Encal to large reserve prospects, which if successful, would provide a substantial increase to the Company's asset base. It adds a new dimension to the Company's ongoing strategy of aggressive growth through the drill bit.'' Encal Energy Ltd. is a Calgary-based, intermediate exploration and development Company, with an emphasis on successfully finding and efficiently producing light oil and natural gas reserves. The Company currently produces approximately 26,000 barrels equivalent per day.