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

To: Arnie who wrote (10563)	5/6/1998 9:46:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Patria Resources Receives Final Planning Approval ASE SYMBOL: PT MAY 6, 1998 CALGARY, ALBERTA--Patria Resources Ltd. announces it has received final planning approval to spud its Cropwell Butler #2A well near Nottingham, East Midlands in the United Kingdom. Preparatory operations on the site have begun, with the initiation of the deviated drilling expected to commence shortly. Patria is presently waiting the release of the contracted rig . The well will be drilled to a target depth of approximately 1000m. The well is a deviated re-entry of the original borehole, which tested oil in the 1980's. Patria Resources Ltd. conducted a new seismic survey over the area indicating the potential to deviate up-structure from the initial well. Cropwell Butler #2 is located on Onshore Exploration Licence EXL216, located directly east-southeast of the city of Nottingham. The well is located in the area of the East Midlands Basin in which the new discoveries of Fiskerton and Newton have recently been made. Patria Resources Ltd. owns a 100 percent working interest in EXL216, which covers approximately 58,000 acres. Additionally, Patria Resources Ltd. was recently awarded an additional 99,510 acres at a 100 percent working interest, contiguous to EXL216 under the 8th Round of Onshore Licencing.

To: Arnie who wrote (10563)	5/6/1998 9:52:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Berkley Petroleum Corp. Announces Staff Additions TSE, ASE SYMBOL: BKP MAY 6, 1998 CALGARY, ALBERTA--Berkley Petroleum Corp. is pleased to announce the following staff additions. Richard M. Alexander, CMA, CFA, has joined Berkley as Vice President Finance and Chief Financial Officer. Mr. Alexander spent 17 years with a major integrated oil and gas company in various capacities including Senior Analyst, Financial reporting and Treasurer. Most recently Mr. Alexander was employed with IPL Energy Inc. where he was Vice-President, Acquisitions and Corporate Investments. Mr. Alexander is a Chartered Financial Analyst and a member of the Society of Management Accountants. Paul Walmsley, P.Eng., joins Berkley as Vice-President Business Development. Mr. Walmsley brings 17 years of oil and gas experience to the company. Mr. Walmsley worked at Shell Canada Ltd. from 1981 to 1993 last assigned as Division Reservoir Engineer. He joined Rio Alto Exploration in 1993 where until 1995 he was Senior Exploitation Engineer. From 1995 to the present, Mr. Walmsley was President and CEO of Burner Exploration Ltd., a junior oil and gas company. Berkley also announces John N. Woods, co-founder of the company with CEO Mike Rose in 1993, has resigned from the Board of Directors. Commitments to other endeavours lead to Mr. Woods departure. Berkley Petroleum's News Release for the past 14 months can be accessed electronically through the Canadian Corporate News website at cdn-news.com

To: Arnie who wrote (10563)	5/6/1998 9:58:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Loon Energy Appoints New President ASE SYMBOL: LEY MAY 6, 1998 CALGARY, ALBERTA--Loon Energy Inc. announces the appointment of Thomas H. Field, P. Eng. as President and Director, effective May 1, 1998. Mr. Field has held the position of Vice President, Production at Loon since September, 1997, and prior to that was employed by Stampeder Exploration Ltd. as Manager, Engineering. Norman Holton, the former president, continues as Chairman of the Board of the Company. Loon recently announced (April 13, 1998) the pending acquisition of an average 21.5 percent working interest in an oil property in the Grand Forks area of Southern Alberta which produces 335 BOPD gross (Loon 72 BOPD net) from 10 wells. Closing is expected to occur in mid-May. The Company also holds a 33.34 percent working interest in a gas prospect at Carvel in Central Alberta which will be drilled this summer and a 100 percent working interest in a gas prospect at Willingdon, Alberta. At Strachan, Loon has participated for 10 percent (5 percent after payout) in the drilling of the 3-22-38-9W5M well, which was drilled to a total depth of 4340 metres. Loon is also planning an additional financing, details of which will be finalized shortly. Loon is currently awaiting regulatory approval for a prospectus which would qualify the conversion of Loon's outstanding special warrants.

To: Arnie who wrote (10563)	5/6/1998 10:01:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Corker Resources Inc. Announces Year-End Results and Other Corporate News ASE SYMBOL: CRK MAY 6, 1998 CALGARY, ALBERTA--CORKER RESOURCES INC. is pleased to announce its financial results for its first fiscal year ended December 31, 1997. The Company raised $873,457 (net) through its founders, its initial public offering and a private placement which generated the following year-end results: /T/ Gross oil and gas revenue $1,270,899 Net Income $ 519,003 Cash flow from operations $ 601,518 /T/ Based on the weighted average number of fully diluted shares outstanding, this represents net income per share of $0.09 and cash flow of $0.10 per share. An evaluation of Corker's oil and gas reserves by an independent consulting engineering firm indicated the Company's reserves to be worth a net present value of $5,700,000 (12 percent discount) and $5,100,000 (15 percent discount) risking probable reserves at 50 percent. Based on these figures and after taking into consideration debt and undeveloped land, the Company's estimated net asset value on a fully diluted basis is estimated to be $0.65 (12 percent discount) or $0.57 (15 percent discount). Corker's reserves are approximately 93 percent gas and 7 percent oil. Corker exited 1997 at 48 barrels of oil per day (bopd) and 1.6 million cubic feet of gas per day (mmcf/d). Currently the company is at approximately 48 bopd and 2.4 mmcf/d. Corker recently announced a rights offering to all shareholders of record as of the close of business on Thursday, May 7, 1998. Shareholders of record will receive one right for each common share held, and may acquire additional common shares on the basis of two rights plus $0.50 per share for each new share. A Rights Offering Circular describing the particulars of this offering will be sent to each shareholder of record. The rights may be transferred or sold in accordance with conditions outlined in the Offering Circular. The common shares began trading on an ex-rights basis at the opening of business on May 5, 1998. The expiry date of the offering is May 28, 1998. Proceeds from the offering, approximately $1,500,000, if fully subscribed, will be used to accelerate the Company's development drilling program at Hanna Garden (40 gross wells, 7.3 net), drill one development well at Alderson (0.375 net) and participate in an exploratory well in northeastern British Columbia (0.10 net) and reduce current bank debt.

To: Arnie who wrote (10563)	5/6/1998 10:04:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Part 1 of 2 - Renaissance Energy First Quarter Report and News Release TSE, ME SYMBOL: RES MAY 6, 1998 CALGARY, ALBERTA--RENAISSANCE ENERGY announces strong success in natural gas exploration and development in the first three months this year, with natural gas production up 7 percent from the comparable period in 1997 and exiting the quarter in excess of 450 million cubic feet per day. Additional gathering systems were also installed in the quarter to facilitate incremental production next winter. Renaissance focused its natural gas exploration activity on winter-only access areas, resulting in 163 net wells being cased for production out of a total of 274 tests. Operations were initially focused on drilling in relative proximity to existing infrastructure where natural gas could be put on-stream this past winter. The latter part of the program was directed to more remote exploratory drilling, which, together with several complementary seismic programs, sets up the 1998/99 winter drilling season. Natural gas prices averaged $2.37 per thousand cubic feet (including a gain of $0.33 per thousand cubic feet on forward sales), down from last year's record prices but still robust in light of a very mild North American winter. On the oil front, Renaissance's average price fell 44 percent to $12.91 per barrel from $23.24 in the first quarter of 1997, precipitated by a significant decline in world oil prices. The benchmark WTI price, which exceeded US$26 in January 1997, actually dropped below US$13 in mid-March 1998. This price erosion was exacerbated by a widening differential between prices for light crude oil and Renaissance's blend of medium crude oils. However, Renaissance continued to explore and complete selected oil development projects, concentrating on building an inventory of projects for the future. In total, 101 net oil wells were cased for production. Production averaged 80,567 barrels per day, 2 percent lower than in the comparable period in 1997, as marginal oil wells were shut in and remedial work was postponed in view of the uneconomic returns on certain oil fields. "With the challenging oil price environment, we are focusing less on drilling and more on the technical aspects of our oil pools, including secondary recovery schemes," said President and Chief Executive Officer Clayton Woitas. "We are still continuing to build for the future on the oil side with exploratory drilling and selected development." However, the deterioration in oil prices led to an inevitable decline in financial results. Cash flow dropped 41 percent to $91 million while net income fell 91 percent to $4 million. /T/ SUMMARY Three Months Ended March 31 Percent 1998 1997 Change -------------------------------------------------------------- FINANCIAL (millions except per share) Gross revenues $ 187 $ 267 - 30 Cash flow from operations $ 91 $ 155 - 41 Per share - basic $ 0.78 $ 1.34 - 42 - fully diluted $ 0.75 $ 1.27 - 41 Net income $ 4 $ 44 - 91 Per share - basic $ 0.04 $ 0.38 - 89 - fully diluted $ 0.04 $ 0.36 - 89 PRODUCTION Oil (thousands of barrels) 7,251 7,380 - 2 Daily average (barrels) 80,567 82,005 Sales price $ 12.91 $ 23.24 - 44 Royalties (2.02) (4.50) - 55 Operating costs (4.98) (4.59) + 8 ------------------------- Netback per barrel $ 5.91 $ 14.15 - 58 ------------------------- Natural gas (million cubic feet) 39,642 37,055 + 7 Daily average (million cubic feet) 441 412 Sales price $ 2.37 $ 2.58 - 8 Royalties (0.26) (0.51) - 49 Operating costs (0.33) (0.27) + 22 ------------------------- Netback per thousand cubic feet $ 1.78 $ 1.80 - 1 ------------------------- Combined (mboe)(x) 11,215 11,086 + 1 Daily average (boe) 124,611 123,178 Sales price $ 16.71 $ 24.11 - 31 Royalties (2.20) (4.69) - 53 Operating costs (4.40) (3.97) + 11 ------------------------- Netback per boe 10.11 15.45 - 35 General and administrative (0.65) (0.58) + 12 Financial expenses (1.06) (0.68) + 56 Capital taxes (0.26) (0.21) + 24 ------------------------- Cash flow per boe 8.14 13.98 - 42 Non-cash items (7.75) (10.06) + 23 ------------------------- Net income per boe $ 0.39 $ 3.92 - 90 ------------------------------------------------------------ (x) 10 mcf of natural gas =1 barrel of oil /T/ OPERATIONAL REVIEW During the first quarter of 1998, Renaissance discovered 14 new natural gas pools through its exploration drilling efforts in the Hotchkiss region of northwestern Alberta. The additional wells drilled near its existing production infrastructure were successful in doubling its natural gas production in this region to 30 million cubic feet per day. The Hotchkiss and Lovet Creek facilities were expanded to accommodate these incremental volumes. A deep Slave Point exploratory well was drilled at Mega resulting in a dual Mississippian and Slave Point discovery. One Mississippian depth step-out well was successfully drilled to confirm the size of the accumulation and a three-dimensional seismic program was conducted to assist in identifying additional Slave Point locations for next winter's drilling season. In addition, a second Slave Point discovery was drilled and will be completed early next winter. /T/ CAPITAL EXPENDITURES (millions) March 31 1998 1997 ----------------------------------------------------------- Property acquisitions $ 2 $ 5 Lease acquisitions and retentions 17 20 Seismic evaluations 28 37 Drilling and completion of wells 118 131 Equipping, pipelining and facilities 84 73 Head office expenditures 1 2 ------------- Total expenditures $ 250 $ 268 ----------------------------------------------------------- /T/ In the Athabasca North region, a total of 90 wells were drilled at Marten Hills to extend the existing pools and obtain production from new horizons. Incremental production of 35 million cubic feet per day was added through four new production facilities. An extensive regional gas accumulation was encountered in the Mannville group at Mitsue South with individual well deliverability of more than four million cubic feet of gas per day. This play is part of an exploratory program which will be extensively developed next winter. Well tie-ins are on-going in this area. On the crude oil side, Renaissance has enjoyed success with its pressure maintenance program on selected oil reservoirs, markedly boosting oil production in several areas. Currently, oil drilling is being selectively pursued due to low oil prices and resultant low netbacks. In addition, well maintenance is being performed only when economics dictate. /T/ NET WELLS DRILLED (Three months ended March 31) 1998 1997 Explor- Develop- Total Explor- Develop- Total atory ment atory ment -------------------------------------------------------------- Oil 28 73 101 32 136 168 Natural gas 135 26 161 166 11 177 Dry 111 28 139 179 21 200 ------------------------------------------------ Total 274 127 401 377 168 545 -------------------------------------------------------------- /T/ With respect to building inventory, two major new pool oil discoveries were made at Winter in the Macklin region of west-central Saskatchewan. These will be developed later in 1998. Exploratory drilling successfully expanded the Drake oil field, a producing property purchased in 1997 and strategically situated between our Northend and Border facilities. At Bow Island in the Southern region of Alberta, 12 exploratory wells were successfully drilled in the first quarter to prove up large parts of the new oil pools identified in 1997. Each of these wells boasts exceptionally high production rates. As well, Renaissance is currently formulating plans for an extensive development program in the Grand Forks area. In the Southwest Saskatchewan region, Renaissance significantly extended the boundaries of its Java oil field and undertook a development program of a previous discovery at Webb West. An extensive exploratory program, for both oil and natural gas, is planned for the Southwest Saskatchewan region over the remainder of the year. Natural gas production is expected to commence in the third quarter. /T/ NET UNDEVELOPED LAND HOLDINGS (thousands of acres) March 31 December 31 1998 1997 ------------------------------------------------------------- Alberta 6,781 6,966 Saskatchewan 3,521 3,630 Manitoba 166 163 ------------------ Total 10,468 10,759 ------------------------------------------------------------- /T/ Financial Review Cash flow decreased 41 percent to $91 million and earnings fell 91 percent to $4 million in the first quarter from the comparable period in 1997, mainly due to the 58 percent decline in crude oil netbacks. On a barrel of oil equivalent (boe) basis, production remained relatively constant at 124,611 boe per day. Per share results decreased commensurably, as the number of shares outstanding remained virtually unchanged from the comparable period in 1997. The average oil price declined 44 percent in the first three months of 1998 over 1997 due to a 30 percent reduction in the benchmark WTI oil price from US$22.78 to US$15.95. This price erosion was exacerbated by a widening of the differential between the Renaissance blend of crude oils and the benchmark light oil posting. The differential averaged $9.02 per barrel versus $7.03 in 1997. On a percentage of revenue basis, oil royalties decreased from 19 percent to 16 percent in the first three months due to the sensitivity of the calculation to lower prices. Operating costs per barrel increased 8 percent in the first three months due to the decline in production volumes caused by low prices at certain oil fields. The average natural gas price of $2.04 (excluding a $0.33 per mcf gain from forward sales) declined 21 percent due to the relatively warm weather experienced in North America this winter. As at April 30, 1998, Renaissance had sold forward 18.5 billion cubic feet of gas for delivery at various dates in 1998 at prices averaging US$2.29 per thousand cubic feet. If these positions had been closed out on that date, a gain of Cdn$0.4 million would have been realized. On a percentage of revenue basis (excluding forward sales), natural gas royalties decreased from 20 percent to 13 percent in the first three months due to the sensitivity of the calculation to industry's lower average prices and Renaissance's higher realizations. Operating costs increased to $0.33 per thousand cubic feet from $0.27 in the first three months as a result of inflationary cost pressures from the service sector, higher production volumes from the traditionally higher cost northern regions, and the increased proportion of incremental volumes being processed through other operators' facilities, as required by regulation. STOCK OPTION PLAN On March 23, 1998, the Board of Directors approved management's proposal to reprice the exercise prices of all outstanding out-of-the-money stock options, excluding those held by directors and officers. The number of stock options held by the employees was reduced proportionately with the percentage change in the exercise price and resulted in the cancellation of 1,140,418 stock options previously issued at higher exercise prices. Renaissance believes that this partial repricing and cancellation of some of the outstanding stock options where the exercise prices were out-of-the-money is an extraordinary event. The Board of Directors approved this proposal in response to the strong competitive environment for personnel that the industry is experiencing and believes that the restrictions applied to the process represent a fair balance for all shareholders and existing stock optionees. OUTLOOK Natural gas prices for Canadian gas are expected to be strong as pipeline expansions into the United States markets, which will be completed in early November, will remove the made-in-Canada discounted price. Oil pricing is expected to be weak through the second quarter this year, with improvement seen in the second half as the benefits of the OPEC agreement lift the absolute price and differentials narrow by virtue of reduced heavy crude oil supply and increased demand. Industry activity has shifted significantly from oil to natural gas, and this is expected to continue until the relative profitability of oil and natural gas becomes more balanced. Renaissance will be emphasizing development activities on the natural gas side including extensive pipelining and drilling to build production volumes throughout the year. In addition, some 10 million cubic feet of natural gas per day is currently being produced into long-term storage in eastern Canada to enhance marketing flexibility. Oil activities will focus on exploration with the intention of building our development inventory. Oil development will be selectively pursued, with major development activities contingent upon a clear signal of sustained favourable netbacks. Renaissance is taking advantage of the current lower demand period for both oil and natural gas to perform annual facility turnarounds in anticipation of price improvements. On the oil side, this period is providing an incentive to review every aspect of the company's oil production portfolio to prioritize development plans and reduce costs.

To: Arnie who wrote (10563)	5/6/1998 10:06:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / Part 2 of 2 - Renaissance Energy First Quarter Report and News Release TSE, ME SYMBOL: RES MAY 6, 1998 CALGARY, ALBERTA-- /T/ BALANCE SHEET (unaudited) March 31 December 31 (Thousands of dollars) 1998 1997 ------------------------------------------------------------- ASSETS Current Assets Cash $ 39 $ 261 Accounts receivable 56,033 80,666 ---------------------- 56,072 80,927 Property, Plant and Equipment, at cost 4,996,026 4,748,638 Accumulated Depletion and Depreciation (1,464,778) (1,384,278) ----------------------- 3,531,248 3,364,360 ----------------------- $3,587,320 $3,445,287 ----------------------- LIABILITIES Current Liabilities Accounts payable $ 32,717 $ 38,321 Accrued liabilities 95,138 126,831 ---------------------- 127,855 165,152 Site Restoration Accrual 26,627 25,277 Long-Term Debt 947,839 781,785 Deferred Income Taxes 375,008 372,108 SHAREHOLDERS' EQUITY Share Capital 1,529,214 1,524,510 Retained Earnings 580,777 576,455 ----------------------- 2,109,991 2,100,965 ----------------------- $3,587,320 $3,445,287 ----------------------- Common Shares Outstanding (thousands) Basic 116,523 116,222 Fully diluted 127,063 125,476 ---------------------- Proceeds Due Upon the Exercise of Stock Options (thousands) $ 313,330 $ 285,405 ----------------------------------------------------------- Statement of Income and Retained Earnings (unaudited) Three Months Ended March 31 (Thousands of dollars) 1998 1997 ----------------------------------------------------------- Operating Income Petroleum and natural gas revenues $ 187,416 $ 267,262 Royalties (24,744) (51,922) Production expenses (49,300) (44,057) ------------------------ 113,372 171,283 Expenses General and administrative 7,259 6,366 Interest on long-term debt 11,866 7,569 Capital taxes 2,925 2,325 Depletion and depreciation 80,500 76,900 Current site restoration provision 3,600 3,800 ----------------------- Income Before Income Taxes 7,222 74,323 Deferred income taxes 2,900 30,800 ----------------------- Net Income 4,322 43,523 Retained Earnings - beginning of period 576,455 461,092 ----------------------- Retained Earnings - end of period $ 580,777 $ 504,615 ----------------------- Net Income per Common Share Basic $ 0.04 $ 0.38 Fully diluted $ 0.04 $ 0.36 ----------------------- Weighted Average Number of Common Shares Outstanding (thousands) Basic 116,364 115,636 Fully diluted 124,332 124,901 ----------------------- Imputed Interest on the Deemed Exercise of Stock Options (thousands) $ 2,600 $ 2,989 ----------------------------------------------------------- Statement of Cash Flow (unaudited) Three Months Ended March 31 (Thousands of dollars) 1998 1997 ----------------------------------------------------------- Operating Activities Net Income $ 4,322 $ 43,523 Add charges not affecting cash Depletion and depreciation 80,500 76,900 Current site restoration provision 3,600 3,800 Deferred income taxes 2,900 30,800 ----------------------- Cash flow from operations 91,322 155,023 Financing Activities Increase in long-term debt 166,054 58,054 Issue of shares 4,704 6,664 Change in non-cash working capital (12,664) 49,201 ----------------------- 158,094 113,919 ----------------------- Cash Available for Investing Activities 249,416 268,942 Investing Activities Additions to property, plant and equipment (247,388) (265,842) Site restoration expenditures (2,250) (2,333) ----------------------- (249,638) (268,175) ----------------------- Increase (Decrease) in Cash (222) 767 Cash, beginning of period 261 - ----------------------- Cash, end of period $ 39 $ 767 ----------------------- Cash Flow per Common Share Basic $ 0.78 $ 1.34 Fully diluted $ 0.75 $ 1.27 ----------------------------------------------------------- Directors Ronald G. Greene (Chairman) Independent Businessman Calgary, Alberta. Clayton H. Woitas President and Chief Executive Officer Calgary, Alberta Jonathan H. Deitcher Vice President and Director RBC Dominion Securities Inc. Montreal, Quebec J. Dean Muncaster Chairman Spill Tech Industries Inc. Collingwood, Ontario Brent D. Kinney International Petroleum Lawyer, Clyde & Co. Dubai, UAE Daryl K. Seaman Independent Businessman Calgary, Alberta Wilmot L. Matthews Independent Businessman Toronto, Ontario Sheldon B. Steeves Executive Vice President and Chief Operating Officer Renaissance Energy Ltd. Calgary, Alberta Officers Clayton H. Woitas, P. Eng. President and Chief Executive Officer John A. Curkan Vice President Marketing Jeffrey S. Lebbert Vice President Land and Contracts Terence L. Sharkey Vice President Drilling and Completions Daniel C. Topolinsky, P. Geol. Vice President Exploration Sheldon B. Steeves, P. Geol. Executive Vice President and Chief Operating Officer Derek W. Evans, P. Eng. Vice President Exploitation Richard P. Marshall Vice President Production Roy L. Smitshoek, P. Eng. Vice President Corporate Development Grant A. Zawalsky, LL.B. Secretary John A. Thomson, C.A. Senior Vice President and Chief Financial Officer Stephen R. Horner, C.A. Vice President Corporate Services and Assistant Secretary Douglas A. Proll, C.A. Vice President Finance and Treasurer Boyd B. Stuart Vice President Administration and Information Systems HEAD OFFICE Suite 3000 425 First Street S.W. Calgary, Alberta, Canada, T2P 3L8 Telephone: (403) 750-1400 Facsimile: (403) 750-1368 Future interim report dates: 1998 Second Quarter--August 14, 1998 1998 Third Quarter--October 29, 1998 1998 Fourth Quarter--February 29, 1999 /T/