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

To: Herb Duncan who wrote (10581)	5/8/1998 3:56:00 AM
From: Kerm Yerman	Read Replies (2) \| Respond to of 15196

EARNINGS / Westminster Resources Reports First Quarter 1998 Results WESTMINSTER RESOURCES LTD. TSE SYMBOL: WML MAY 7, 1998 CALGARY, ALBERTA--Westminster Resources Ltd. is pleased to report Operating and Financial results for the first quarter of 1998. Average production in the period was 3216 boepd compared to a 1997 first quarter average of 550 boepd, an increase of 500 percent. Oil production averaged 1263 bopd with gas production averaging 19.53 mmcf/d during the period. The company participated in the drilling of 16 gross wells (4 net) resulting in 7 oilwells, 5 gaswells, 1 water injection well and 3 dry and abandoned wells for an 80 percent drilling success rate. Oil and gas sales net of royalties improved 200 percent to $3,852,324 from $1,316,396 during the first quarter of 1997 despite a 33 percent drop in oil prices from C$28.70 per barrel in 1997 to C$19.40 per barrel in 1998. Westminster sold its gas production at an average price of C$1.44 per thousand cubic feet in the first quarter of 1998. Westminster generated $0.10 per share of cash flow in the first quarter of 1998 compared to $0.14 per share for the year ending December 31, 1997. In the first quarter of 1998, Westminster concentrated on the drilling of Jean-Marie gas production in the Helmet/Peggo area of northeast BC. In a weather-shortened drilling season of 8 weeks, Westminster drilled four successful Jean-Marie gas wells (1.5 net) and constructed a gas processing facility capable of 20 mmcf/d of throughput (Westminster 50 percent). Two of the four drilled wells were tied-in to the facility as well as 2 additional Jean-Marie gas producers acquired in a previous acquisition. Current Helmet/Peggo production net to Westminster is approximately 6 mmcf/d from 2.25 net wells. At July Lake to the north of Helmet, Westminster participated in the tie-in of 3 Jean-Marie gas wells in the first quarter. Increasing net production from the area to approximately 10 mmcf/d. In southeast Saskatchewan, Westminster participated in the drilling of 7 new oilwells (1.5 net) and 1 water injection well as part of the first phase of a large scale 1998 exploration and development drilling program. Production increased in each of the first 3 months of 1998 as a result of successful development drilling and improved performance from the Midale Ordovician 'A' pool (Westminster 17.34 percent). Westminster added significantly to its land holdings in core prospect areas during the first quarter. The company acquired an additional 20,455 acres of land for $1.16 million for an average price of $57/acre ($142/ha). Capital expenditures in the first quarter totaled approximately $13.6 mm and were allocated as to $7.34 mm for exploration and development drilling, $5.1 mm for facilities and pipelining, and $1.16 mm for Crown Land purchases. In addition to the southeast Saskatchewan activity, Westminster is continuing its exploration and development drilling programs in the second quarter of 1998 with wells planned for the Hanson, Savanna Creek and Hamburg areas.