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

To: Kerm Yerman who wrote (10708)	5/14/1998 8:33:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / BXL Energy - First Quarter 1998 Results ASE SYMBOL: BXL MAY 14, 1998 CALGARY, ALBERTA--BXL is pleased to report its operating and financial results for the three months ended March 31, 1998 with comparatives: /T/ -------------------------------------------------------------- Highlights Three months ended March 31 1998 1997 Percent Change --------------- -------- Operating Average daily production Oil and NGLs (barrels - bbls) 346 173 100 Natural gas (thousand cubic ft. - mcf) 3,782 1,206 214 Equivalent barrels (10 mcf = 1 boe) 724 293 147 Average selling prices Oil and NGLs ($ per bbl) 19.84 29.35 (32) Natural gas ($ per mcf) 1.68 2.33 (28) Operating netbacks Oil and NGLs ($ per bbl) 13.98 18.03 (22) Natural gas ($ per mcf) 0.73 1.25 (42) Equivalent barrels ($ per boe) 10.49 15.78 (34) Financial ($ 000's except per share amounts) Oil and gas sales 1,190 709 68 Gas management contract fees 87 96 (9) Cash flow from operations 540 383 41 Per share (basic) 0.03 0.02 50 Net earnings 20 177 (89) Per share (basic) - 0.01 (100) Capital expenditures 1,659 1,980 16 -------------------------------------------------------------- /T/ Successful drilling in the fourth quarter of 1997 and the first quarter of 1998 resulted in substantial production increases. Production climbed to 724 boe per day in the first quarter of 1998, a 147 percent increase over the 293 boe per day during the first quarter of 1997. Oil and NGLs production increased 100 percent to 346 barrels per day as new wells at Gift/Little Horse and Wilson Creek were brought on stream. Natural gas production reached 3,782 mcf per day in the first quarter of 1998, an increase of 214 percent over first quarter 1997 levels. Gas production increases occurred at Wilson Creek where new wells were tied-in and to a lessor extent, volumes from the December 1997 acquisition were added. Oil and gas revenues totalled $1,190,000 during the first quarter of 1998, a 68 percent increase over the $709,000 reported for the same period in 1997. Although selling prices declined, BXL's production profile of light oil and sweet natural gas resulted in netbacks of $13.98 per barrel of oil & NGLs and $0.73 per mcf of natural gas ($10.49 per boe). First quarter 1998 royalty rates declined to 18 percent of revenue ($3.20 per boe) from 24 percent of revenue ($6.34 per boe) during the same period last year. More favourable royalty rates are primarily the result of successful drilling at Gift/Little Horse where new production qualifies for the Alberta Royalty Tax Credit or in certain circumstances a Crown royalty holiday. On a per unit basis, production expenses declined marginally to $4.56 per boe (1997 - $4.74 per boe) as decreases in lifting costs at Gift/Little Horse were offset by higher costs at Tweedie. Natural gas netbacks are expected to increase in the second quarter as a result of higher selling prices and reduced operating costs. Cash flow from operations was $540,000 ($0.03 per share) for the three months ended March 31, 1998, a 41 percent increase over the $383,000 ($0.02 per share) recorded last year. Capital expenditures during the quarter were $1,659,000, 49 percent of which was spent on drilling, completing and equipping wells at Gift/Little Horse and Wilson Creek and 29 percent was spent on facilities and gathering lines at Gift/Little Horse and Tweedie. During the first three months of 1998 BXL participated in five (0.8 net) wells resulting in three (0.7 net) oil wells and two (0.1 net) dry holes. At Wilson Creek, BXL drilled one (0.3 net) Cardium oil well which is currently production testing. At Gift/Little Horse the company drilled two (0.4) oil wells which were tied in and placed on production early in the second quarter. Based on recent drilling success, BXL has a substantial exploration program planned for the balance of the year. More immediate plans include two (1.0 net) high impact natural gas prospects in Wilson Creek, the first of which will spud in early June. BXL Energy Ltd. is engaged in the acquisition, exploration, development and production of oil and gas reserves in Alberta. BXL is listed on The Alberta Stock Exchange and has approximately 19.9 million shares outstanding.

To: Kerm Yerman who wrote (10708)	5/14/1998 8:38:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Pan East Updates Activity in West Central Alberta TSE SYMBOL: PEC MAY 14, 1998 CALGARY, ALBERTA--In the Karr area, Pan East Petroleum Corp. ("Pan East") commenced production from the 11-19-64-1W6M well on April 30th. The well produces from the Wabamum Formation at a raw gas rate of 8 MMcf/d (7.1 percent acid gas) and 400 Bbls/d of condensate and natural gas liquids at a flowing well head pressure of 1,800 psi. Production is tied into the Simonette gas pipeline and is processed at the Kaybob South # 3 (K-3) gas plant, in both of which Pan East has direct ownership. Pan East owns a 90 percent working interest in the well, and sales gas and associated products net to Pan East's interest, expressed in gas equivalence, is 9.9 MMcfe/d. The Company also plans to commence completion operations within the next 30 days on the Pan East et al Karr 13-25-64-2W6 well that is located approximately two miles from the 11-19 gas well. The 13-25 well was drilled to a total depth of 4,056 meters (13,304 feet) earlier in 1998. Pan East is the operator and owns a 66 percent interest before pay out and a 40 percent interest after pay out in the well and 12,160 acres of surrounding lands. At Nordegg, Pan East has reached total depth of 1,610 meters (5,280 feet) in the Pan East et al Nordegg 12-9-41-17W5M well. Production casing has been run and the well will be tested within the next three weeks. Pan East is the operator and owns a 66.67 percent interest. The Company is pleased to announce that recent production additions from the Midwinter, Karr and Sunchild areas bring the Company's current production to 40 MMcfe/d. Pan East's President and C.E.O., Richard A. Walls, stated, "I am proud of my operational staff for meeting all of our production targets despite difficult weather conditions and numerous logistical considerations".

To: Kerm Yerman who wrote (10708)	5/14/1998 8:39:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

ENERGY TRUSRS / Maximum Energy Trust Announces 1998 First Quarter Operating Results TSE SYMBOL: MXT.UN MAY 14, 1998 CALGARY, ALBERTA-- NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Maximum Energy Trust announced today its results of operations for the three months ended March 31, 1998. /T/ -------------------------------------------------------------- Three months Per Unit ended March 31, 1998 -------------------------------------------------------------- Financial Oil and Natural gas revenue $ 5,992,000 $ 0.50 Net processing and gathering revenue $ 141,000 $ 0.01 Funds from operations $ 2,601,000 $ 0.22 Cash distributed $ 2,100,000 $ 0.175 Net income (loss) $ (227,000) $ (0.02) Operating Sales Oil & Liquids (BBLS per day) 2,983 Natural gas (MCF per day) 3,002 Oil equivalent (BOE per day) 3,283 Pricing Oil (per BBL) $ 20.67 Oil, including oil hedge (per BBL) $ 20.64 Natural gas (per MCF) $ 1.72 Statistics (per BOE) Operating Netback $ 11.14 Investor Netback $ 6.85 -------------------------------------------------------------- Three months Per Unit ended March 31, 1997 -------------------------------------------------------------- Financial Oil and Natural gas revenue $ 7,786,000 $ 0.65 Net processing and gathering revenue $ 62,000 $ 0.01 Funds from operations $ 4,159,000 $ 0.35 Cash distributed $ 4,080,000 $ 0.34 Net income (loss) $ 1,421,000 $ 0.12 Operating Sales Oil & Liquids (BBLS per day) 2,897 Natural gas (MCF per day) 3,086 Oil equivalent (BOE per day) 3,206 Pricing Oil (per BBL) $ 29.51 Oil, including oil hedge (per BBL) $ 28.21 Natural gas (per MCF) $ 1.48 Statistics (per BOE) Operating Netback $ 17.42 Investor Netback $ 14.07 -------------------------------------------------------------- /T/ Production averaged 3,283 barrels of oil equivalent (BOE) per day for the quarter, up from 3,206 BOE per day in 1997, primarily from the acquisition of producing properties in Provost, Alberta in October 1997 subsequently complemented by a 20 well development drilling project on the property. These wells were all on production by the end of the first quarter of 1998. Oil prices were down 30 percent from the first quarter of 1997 to average CDN $20.67 before accounting for hedging activities. For calendar 1998, the Trust has hedged US$800,000 per month ensuring a minimum exchange rate of CDN$1.41 and a maximum exchange rate of CDN$1.43. There are currently no commodity hedges in place. Oil and natural gas operating expenses averaged of $7.83 per BOE in the quarter which was a 10 percent increase over first quarter 1997 expenses of $7.27 per BOE. The increase was attributable to increased prices within the service sector and operating costs related to Provost production, which are typically higher than costs in the Kindersley area. General and administrative expenses were $0.61 per BOE for the quarter, down from $0.66 per BOE in 1997. Capital overhead recoveries on drilling activity initiated in late 1997 and completed in the first quarter of 1998 accounted for the majority of the reduction. It is currently estimated that none of the 1998 cash distributions will result in taxable income to unitholders. As at March 31, 1998, Maximum had drawn approximately $39 million on its $45 million credit facility. Notwithstanding that approximately $6 million of borrowing base remains on this facility, Maximum's governing royalty agreement contains a covenant that, at this time, restricts Maximum's ability to incur additional indebtedness. The covenant provides that Maximum's aggregate indebtedness may not exceed 35 percent of its adjusted asset value (based on Maximum's 1997 year-end independent evaluation of properties with cash flows therefrom discounted at 15 percent). As a result, any further capital expenditures must be funded with the proceeds of equity offerings or withholdings from unitholder distributions until aggregate indebtedness falls below the 35 percent threshold. Given that Maximum completed substantially all of its 1998 capital program in late 1997 and will internally fund the last phase of its Provost drilling program (the tie-in to pipeline of 20 recently drilled infill wells), this restriction will have minimal impact on 1998 operations. Maximum continues to focus on complimentary acquisition opportunities which can be substantially funded with equity investment, with a view to accretively growing its reserve and production base. Maximum Energy Trust trades on the T.S.E. under the symbol of MXT.UN MAXIMUM HOLDINGS CORP. acts as trustee for, and on behalf of, MAXIMUM HOLDINGS TRUST, which operates properties on behalf of MAXIMUM ENERGY TRUST, a royalty trust trading on the TSE under the symbol MXT.UN

To: Kerm Yerman who wrote (10708)	5/14/1998 8:40:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / Summit Resources - First Quarter 1998 Results TSE SYMBOL: SUI MAY 14, 1998 CALGARY, ALBERTA--Summit is pleased to report its operating and financial results for the first quarter 1998 compared to the same period last year. /T/ For the three months ended March 31 Percent 1998 1997 Change -------------------------------------------------------------- ($ thousands except per share amounts) Petroleum and Natural Gas Revenue 20,621 25,998 (21) Cash Flow from Operations 8,216 14,976 (45) Per Share 0.25 0.44 (43) Net Earnings (Loss) (1,842) 2,789 (166) Per Share (0.06) 0.08 (175) Long-term Debt 136,469 65,164 109 Capital Expenditures (net of dispositions) 24,432 16,391 49 -------------------------------------------------------------- Common Shares Outstanding (thousands) Weighted Average 33,392 34,308 (3) At March 31 33,414 34,029 (2) -------------------------------------------------------------- Crude Oil and Natural Gas Liquids Production - bbls/d 6,052 5,430 11 Price - $/bbl 17.53 27.02 (35) Natural Gas Production - MMcf/d 60.1 61.8 (3) Price - $/Mcf 2.02 2.28 (11) Barrels of Oil Equivalent (10 Mcf = 1 Barrel) Production - BOE/d 12,059 11,606 4 -------------------------------------------------------------- /T/ The first quarter of 1998 was a very active one for Summit, with a focused program of development drilling yielding 10 oil wells and six gas wells. The drilling targets, selected in advance of the recent oil price decline, included a mix of light and heavy oil as well as natural gas prospects, reflecting the diversity of Summit's reserve and production base. Moving into the second quarter, our capital program has been refocused on natural gas and light oil prospects in our core areas, which include northeastern British Columbia, west-central Alberta, southern Alberta/Montana and the Williston Basin. We will continue to apply operational efficiencies to mitigate the drop in commodity values and maximize available netbacks. Our inventory of development opportunities, combined with a broad exposure to oil and gas prospects in our core areas, will support Summit's program of increased natural gas exploitation through 1998. FINANCIAL Summit's results for the first quarter of 1998 were considerably impacted by softening crude oil prices. In the first three months of 1998, West Texas Intermediate (WTI) oil prices declined 23 per cent from their 12-month average in 1997 and were 30 per cent below averages for the first quarter of 1997. The effect was compounded for heavy oil due to widening differentials between light and heavy quality crude. As a result, Summit realized a first quarter oil price of $17.53 per barrel, down 35 per cent from $27.02 per barrel in 1997. Natural gas prices were also down compared to the first three months of 1997. Summit's gas price decreased 11 per cent from the first quarter of 1997 to average $2.02 per thousand cubic feet in the first quarter of 1998. The net effect of market conditions in the first quarter was a 21 per cent decline in crude oil and natural gas revenue to $20.6 million compared to the first three months of 1997. First quarter cash flow from operations for 1998 dropped to $8.2 million or $0.25 per share as a result of reduced oil and gas revenues, increased interest costs associated with higher debt levels and increased operating costs. Increased depreciation and depletion charges associated with higher production levels compounded the effect of these items and contributed to a net loss for the first quarter of $1.8 million or $0.06 per share. Capital expenditures totalling $24.4 million in the first quarter included $14.8 million for drilling, $5.5 million for production facilities and equipment, $2.5 million for seismic and $1.6 million for undeveloped land. OPERATIONS Summit's first quarter drilling included 20 participation wells and one well farmed out to an industry partner. Development drilling remains Summit's focus with 76 per cent of wells drilled for exploitation. Summit added 10 oil wells (7.1 net) and six natural gas wells (4.7 net) through first quarter drilling for an overall success rate of 89 per cent on a net basis. Four wells (1.5 net) were abandoned. Natural gas drilling in the first quarter was focused in northeastern B.C. where Summit drilled two 100 per cent working interest horizontal gas wells in the Jean Marie formation at Gunnel. Both of these wells were completed and will be tied-in during the second quarter. Summit's natural gas processing and compression facilities at Gunnel are presently being expanded to provide an additional 10 million cubic feet per day of compression. This will accommodate volumes from the two new wells and the tie-in of two vertical wells drilled in 1995. Seismic acquired during the quarter increased the number of natural gas drilling prospects defined on Summit 100 per cent lands. In addition to six further development locations identified in Gunnel North, Summit controls 100 per cent of 14 locations for development of Jean Marie natural gas on other prospects in this area. At Mirage, Alberta, Summit drilled a 100 per cent working interest natural gas discovery well which tested at rates in excess of 3.0 MMcf/d. Tie-in of this well to Summit's expanded natural gas production facilities is planned for June 1998. Additional development drilling on this discovery is scheduled following a 60-day production test. In addition, Summit drilled and cased three Halfway oil wells (41 degree API) as part of the development of light oil reserves with an additional 17 locations identified on 3-D seismic. Completion and tie-in of these wells will commence in mid-May following the removal of road bans. Summit has also encountered a new pool discovery in the Worsley zone (38 degree API) at Mirage which is currently on production at 60 barrels per day. Further development of this discovery, including up to six offset locations, will be included in the Company's plan to expand production from this multi-zone area where Summit holds 41,920 gross acres (38,350 net). Four 100 per cent working interest oil wells were drilled, cased and completed at Rabbit Hills, Montana in the first quarter of 1998. These wells are located on a new prospect with production rates averaging 30 to 50 barrels per day per well for three of the wells. Based on this drilling success and 3-D seismic interpretations, additional drilling will be required to delineate the size of the reserves controlled by Summit. An additional 15 to 20 locations have been identified for drilling, but do to the heavier quality of crude (20 degree API) and the current soft oil prices, Summit will defer further drilling in this area until oil prices improve. However, unitization of the main Rabbit Hills field is proceeding following very encouraging results from a pilot polymer flood. Unitization will result in improved recoveries from the reservoir and reduced operating costs. Summit's production volumes increased modestly in the first quarter to 12,059 barrels of oil equivalent per day, a four per cent increase over the first three months of 1997. Production gains from first quarter drilling were offset by the impact of non-core asset dispositions completed late in 1997. Oil production increased 11 per cent over 1997 first quarter volumes of 5,430 barrels per day to 6,052 barrels per day in 1998. Natural gas production of 60.1 million cubic feet per day for the first quarter was impacted by a facility shut down at Clarke Lake, in our northeast B.C. area. The expanded facilities, to be completed in the second quarter, provide Summit with a total of 24 million cubic feet per day of compression and dehydration. The increased capacity will allow for previously restricted gas from wells drilled in 1997 to be processed and will facilitate production from additional wells planned in 1998. SUBSEQUENT EVENT Subsequent to the end of the first quarter, the Company monetized its investment in Fort Chicago Energy Partnership L.P., realizing proceeds of $20.5 million. These funds were applied against outstanding bank debt. Summit Resources Limited is a Canadian corporation engaged in oil and gas exploration, development, acquisition, production and marketing in western Canada and selected basins in the United States. Summit's shares are listed on the Toronto Stock Exchange (trading symbol "SUI").

To: Kerm Yerman who wrote (10708)	5/14/1998 8:45:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Best Pacific Announces Test Results at Okotoks TSE, ASE SYMBOL: BPG MAY 14, 1998 CALGARY, ALBERTA--Best Pacific Resources Ltd. ("Best Pacific" or the "Company") is pleased to announce the results of its second delineation well located at 7-19-22-28 W4M, offsetting its initial Okotoks gas discovery. The well encountered gas pay at virgin reservoir pressure in the Mississipian Turner Valley formation. The well has drill stem tested gas at rates of 5.9 million cubic feet (mmcf) per day plus natural gas liquids on a 3/4 inch choke. The Company is casing the well to total depth, plans immediate completion and expects the well to be tied in early in the third quarter. Best Pacific retains an operated 50.0 percent working interest before payout, reverting to 30.0 percent after payout. Best Pacific controls two contiguous and undeveloped sections of land on this prospect. Best Pacific Resources Ltd. is listed on both the Toronto and Alberta Stock Exchanges: Trading symbol - BPG. Neither The Alberta Stock Exchange, The Toronto Stock Exchange nor any regulatory body have reviewed this news release and they neither approve nor disapprove of the contents of this news release.

To: Kerm Yerman who wrote (10708)	5/14/1998 8:49:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Paramount Announces Improved First Quarter 1998 Results TSE SYMBOL: POU MAY 14, 1998 CALGARY, ALBERTA-- /T/ Condensed Results Three Month Period 1998 1997 Change Percent -------------------------------------------------------------- Operating Natural gas average daily sales (MMcf/d) 182.3 110.4 65 Average price (per Mcf) $1.99 $2.55 (22) Crude oil and liquids average daily sales (Bbl/d) 2,137 1,415 51 Average price (per Bbl) $21.28 $29.25 (27) Financial ($ thousands, except per share amounts) Revenue (before royalty) 36,787 29,041 27 Net royalties 5,794 4,579 27 Operating costs 7,736 4,645 67 General and administrative 489 1,002 (51) Lease rentals 679 580 17 Interest on long-term debt 2,386 1,305 83 Large Corporation Capital/ Deferred income taxes 1,632 3,023 (46) Cash flow from operations 19,422 16,764 16 Per share 0.360 0.341 6 Net earnings 2,242 4,947 (55) Per share 0.042 0.101 (58) Capital expenditures (net) 61,691 47,490 30 Net debt 179,700 111,300 61 Average common shares outstanding (,000's) 53,954 49,203 10 /T/ EXPLORATION AND OPERATIONS Paramount's daily production in the first quarter of 1998 increased 63 percent to 204 MMcfeq/d as compared to first quarter 1997. The Company completed a very active winter drilling program with a total of 132 (74 net) wells drilled with a net success rate of 80 percent; Paramount operated 90 of these wells. As the majority of Paramount's work takes place in the first quarter, the bulk of the expected 1998 production gains are just now beginning to appear. March production levels were 223 MMcfeq/d and April production averaged approximately 240 MMcfeq/d with further production increases still to come onstream in the next month. Despite equipment shortages and the adverse operating conditions resulting from the very mild winter, Paramount managed to complete essentially all of its budgeted capital program. NORTHEAST ALBERTA - SHALLOW GAS Activity in the northeastern Alberta core area was focused on two fronts; integrating into Paramount's operations the acquisitions made in the fourth quarter of 1997, and executing an aggressive development program in many of the existing properties in the Company's shallow gas portfolio. The incorporation of the Reserve Royalty Corp. acquisition transpired quite smoothly, with a small development program being completed through the past winter. Paramount has successfully met its goal of replacing production declines on these properties; April 1998 production was approximately 40 MMcf/d. The acquisition at South Liege was also successfully incorporated into Paramount's operations, with production volumes through this facility increasing from 4 MMcf/d at the time of the acquisition to 11 MMcf/d by the tying in of additional Paramount wells on surrounding lands. Paramount's shallow gas development programs included infill drilling, recompletions, pipeline extensions, and compression additions with the intention of not only arresting declines, but expanding these reserves and production levels. Significant development programs were completed at Kettle River, Quigley, Corner and Leismer on the east side, and at Legend and Teepee Creek on the west side. Production levels in the northeast shallow gas area in April 1998 were 168 MMcf/d as compared to the 139 MMcf/d averaged in January 1998. CENTRAL ALBERTA/ NORTHEASTERN BRITISH COLUMBIA Paramount experienced significant success at Kaybob through the winter drilling season with a discovery in December 1997 which flowed at 27 MMcf/d while drilling using underbalanced horizontal drilling technology. Using the same technology, a follow-up well was drilled in late March that flowed at 23 MMcf/d while drilling. These wells were tied in and are producing to the Kaybob North gas plant as of April 17, 1998. When plant construction is completed in May, further production increases in the order of 5 MMcf/d are forthcoming from lower pressure wells completed in a different pool. Total initial production additions at Kaybob will be approximately 20 MMcf/d. Paramount is commencing an active summer drilling program in this area with an initial 12 well program; at least half of these locations are planned to be evaluated using the underbalanced horizontal drilling technology. The 1997 discovery at Obed was placed onstream in January 1998. A second well was drilled vertically and cased, and completion operations have now commenced. Further drilling activity at Obed for 1998 is being evaluated. At Zaremba, in northeast British Columbia, Paramount completed the acquisition of the remaining plant interest and associated production. Two new wells were drilled and a number of workovers were completed with positive results. These activities have contributed to significant growth in the central Alberta/northeastern British Columbia core area, with April 1998 average production levels at 38 MMcfeq/d as compared to 29 MMcfeq/d in January 1998. NORTHWEST ALBERTA The majority of the 1998 capital spending program in northwestern Alberta was focused in the greater Bistcho Lake area in the first quarter. Seven delineation and five exploratory wells were drilled, several wells were recompleted and tested, three new wells were tied in, and modifications were made to the existing sour gas plant and gathering infrastructure to streamline operations. In addition, 87 km of 2D and 55 square km of 3D seismic were shot to detail future development and exploratory drilling locations. At Sousa, a horizontal well was drilled underbalanced as a follow-up to the Slave Point gas discovery made in the first quarter of 1997. A new processing facility was constructed and the two wells were tied in, with production commencing in April 1998. Production from this new pool discovery will be monitored over the next quarter to determine the feasibility of expanding the plant capacity at this year round access facility. FRONTIERS/EXPLORATION The southern Northwest Territories was the focus of much of Paramount's exploratory activity. As previously announced, the Bovie Lake C-76 well tested gas, and the decision to sidetrack the well was made. Unfortunately this operation was not completed before breakup. Two wells further north also met with the same fate; the Arrowhead O-15 and Netla M-23 were both spud, but drilling operations were suspended due to breakup. The Arrowhead N-65 well flowed at rates of over 28 MMcf/d with some formation water as previously announced. This well was cased for production; however, completion and testing operations were not concluded. Finally, the Liard F-36 well was drilled and cased although time limitations did not allow for the completion of this well. Paramount has been adequately encouraged by the drilling results to date to warrant continuing with the program in the next drilling season. Drilling operations on two wells at Maxhamish in northeast British Columbia were completed, the results of which were disappointing and a re-evaluation of this project is underway. Paramount participated in the drilling of two wells in the southern Alberta foothills in the first quarter of 1998. Completion and testing operations are currently underway at both locations. FINANCIAL Operating results for the first quarter of 1998 reflect the positive impact of significantly higher production volumes, with average natural gas sales rates up 65 percent to 182 MMcf/d and crude oil and natural gas liquids sales rates up 51 percent to 2,137 Bbl/d over comparative 1997 first quarter results. However, somewhat offsetting these production and sales volume rate gains were reductions in the average prices received for both natural gas and crude oil/liquids. Natural gas sales prices averaged $1.99/Mcf in 1998 as compared with $2.55/Mcf in 1997 while crude oil/liquids prices averaged $21.28/Bbl in 1998 as compared with $29.25/Bbl in 1997. Overall, revenue before royalties increased by 27 percent to $36.787 million as compared with $29.041 million for 1997. Operating costs of $7.736 million represent an average unit cost of $0.417/Mcfeq for 1998, virtually unchanged from $0.414/Mcfeq for the comparative quarter of 1997. Cash flow from operations was $19.422 million ($0.36 per common share) up 16 percent as compared with $16.764 million ($0.34 per common share). Net earnings for the current quarter were $0.042 per common share as compared with $0.101 per common share in 1997. Higher dry hole costs in 1998 primarily account for this decrease. Capital expenditures, net for the first quarter were $61.691 million as compared with $47.490 million for 1997. Of the 1998 net capital expenditures, $38.4 million (56.4 percent) was spent on drilling and completion costs, $18.3 million (29.7 percent) on the plant, gathering and equipment costs, $3.8 million (6.2 percent) on the acquisition of crown leases with the balance substantially spent on geological and geophysical costs. To meet this level of capital activity, Paramount has arranged for an increase in the borrowing limit under the Syndicated Extendible Revolving Term Credit Facilities to $190 million effective May 4, 1998. In addition, the Company has a $10 million Operating Facility provided by the agent to the syndicated banks. Net debt at March 31, 1998, was $179.7 million (1997 - $111.3 million). OUTLOOK Paramount currently forecasts natural gas production to average approximately 230 Mcf/d and crude oil and natural gas liquids production to average 3,500 Bbl/d in 1998. Cash flow from operations is expected to be $110 million, all of which will be invested internally in oil and gas development, exploration and acquisition opportunities.

To: Kerm Yerman who wrote (10708)	5/14/1998 8:52:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Snow Leopard Resources Corporate Update TSE SYMBOL: SNW.A MAY 14, 1998 CALGARY, ALBERTA--Snow Leopard Resources Inc. reports that the Empire Auburn et al Hartaven HZ 4D14-35/1C16-35-9-9W2 well has been completed as a Mississippian Kisbey oilwell. Initial swab tests indicate a production rate of 4 m3 oil/hour while maintaining a high fluid level. Pump and rods have been run and the well has been tied into Snow Leopard's existing Hartaven battery to minimize operating costs. The well will be on production immediately at an anticipated allowable of 30 m3 oil per day. Snow Leopard has a sliding scale royalty convertible to a 50 percent working interest at payout. The Class A common shares of Snow Leopard are listed on the Toronto Stock Exchange under the trading symbol SNW.A.

To: Kerm Yerman who wrote (10708)	5/14/1998 8:53:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Cabre Exploration to Explore PanCanadian Lands TSE SYMBOL: CBE MAY 14, 1998 CALGARY, ALBERTA--Cabre Exploration Ltd. has negotiated an agreement to explore 160 sections of land owned by PanCanadian Petroleum Limited and located near Cabre's core production properties at Joarcam in central Alberta. "This agreement offers Cabre an excellent opportunity to pursue new exploration and reserves in a region we know well and located near our largest single producing property," said Douglas Kay, Cabre's president and chief operating officer. Under this agreement, Cabre has agreed to drill at least five exploration wells on selected locations before October 31, 1998. This agreement also includes three option periods between October 31, 1998 and December 31, 1999. To earn interest during each of these periods, Cabre has agreed to drill at least five wells during each period on selected lands. Cabre may also drill more than the minimum five earning wells in any period to earn additional lands. Cabre has also negotiated the right to purchase PanCanadian seismic data covering 539 kilometres of the lands. PanCanadian retains its royalties from any new production and will earn a working interest in new oil discoveries. Cabre is the majority owner and Operator of Joarcam Viking Oil Units 2 and 3 as well as the Joarcam Viking Gas Cap Unit, including associated gas plants and oil processing facilities. Cabre is currently producing 2,400 barrels of oil and 7.4 million cubic feet of gas per day net to its interests from its Joarcam properties, located about 50 kilometres southeast of Edmonton. Over the last year, Cabre has also conducted an exploration program focusing on natural gas outside of its Joarcam lands. This agreement fits well with Cabre's exploration strategy of pursuing new reserves near its core areas of production.

To: Kerm Yerman who wrote (10708)	5/14/1998 8:56:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / Q Energy Limited Announces Year-End Financials and Updates Recent Corporate Developments ASE SYMBOL: QE MAY 14, 1998 CALGARY, ALBERTA--Q Energy Limited today announced its audited financial results for the year ending December 31, 1997. The financial results reflect, for the most part, company operations subsequent to September 16, 1997 when Q Energy's assets were acquired pursuant to a Plan of Arrangement between Q Energy Limited, NuGas Limited and Tarragon Oil and Gas Limited. /T/ Year Ending Dec. 31, 1997 ------------------------- Total Revenues $ 192,000 Cash Flow $ 40,000 Net Income ($ 2,000) Gas Price ($/Mcf) $ 2.32 Liquids price ($/Bbl) $ 25.79 Production 45 Boe/d Shares Outstanding (Basic) 18,475,212 /T/ Q Energy also announces that it will be entering into a three-part transaction which will strengthen the Company's balance sheet, increase its production and add a significant component of proven undeveloped gas reserves. The proposed transaction is as follows: - Subject to all necessary regulatory and shareholder approvals, the Company will issue, by way of a private placement up to $4,000,000 of convertible debentures to a group of investors with a conversion price of $0.45/share and an 8 percent coupon. The debentures will mature five years from the date of issue subject to earlier conversion to common shares in certain circumstances. - Subject to regulatory approval, the Company will grant to a third party an option to purchase 1,000,000 shares for 18 months at an exercise price of $0.50/share. Q has agreed to sell certain assets, to the same party, to offset the Company's short-term debt obligation arising out of the Plan of Arrangement. - Q Energy will be granted an option to purchase a gas producing property with a large proven undeveloped reserve component. A portion of the proceeds from the proposed convertible debenture offering will be applied to the acquisition. After closing the above transactions, anticipated to occur over the next 30 to 90 days, Q will have achieved the following: - Eliminated all of its indebtedness. - Increased production to approximately 200 Boe/d from the current rate of 30 Boe/d. - Added a new property to inventory which has approximately 16 Bcf of proven undeveloped reserve as estimated by independent engineering consultants. Q will have a 100 percent working interest in this undeveloped asset. - Increased working capital to approximately $1,600,000. - Maintained the Company's exposure in high impact prospects in Louisiana, North Dakota and Saskatchewan.

To: Kerm Yerman who wrote (10708)	5/14/1998 8:57:00 PM
From: Herb Duncan	Respond to of 15196

SERVICE SECTOR / Peak Energy Services Ltd. Enters Into a Letter of Intent to Acquire Zeta Oilfield Rentals Ltd. TSE SYMBOL: PES MAY 14, 1998 CALGARY, ALBERTA--Peak Energy Services Ltd. ("Peak") is pleased to announce that it has entered into a letter of intent to acquire all of the issued and outstanding shares of Zeta Oilfield Rentals Ltd. ("Zeta") of Nisku, Alberta. The purchase price for Zeta is $7,964,425 consisting of $6,589,425 cash and 366,667 common shares of Peak at a deemed price of $3.75. Peak will utilise existing cash reserves and its current credit facilities to fund the cash portion of this acquisition. The purchase price is subject to due diligence and certain price adjustments at closing. This acquisition is effective June 1, 1998 with a closing of the same date. This acquisition is subject to several conditions precedent including board of director and regulatory approval. Zeta has an extensive fleet of drilling, completions, work-over and production rental equipment. The Zeta acquisition will be complimentary to Peak's existing solids control and production rental divisions. Zeta will also provide Peak with a broader geographic presence in Western Canada through its head office in Nisku, Alberta and its field operation in Slave Lake, Alberta. Through this acquisition, Peak will continue to establish itself as the dominant provider of ancillary services to the oil and gas industry. Peak Energy Services Ltd. is a diversified energy services company providing oilfield rental equipment and related services to the petroleum industry in Western Canada. Peak's shares are listed on the Toronto Stock Exchange under the symbol "PES".

To: Kerm Yerman who wrote (10708)	5/14/1998 10:35:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Rally Energy Corp. announces Gas Discovery Rally Energy Corp., ("Rally"), (CDN: RALY) is pleased to announce a successful gas discovery on our Monitor Property, South East, Alberta. Rally recently completion tested the first of what is expected to be several wells to be drilled this year. The well flowed at a stabilized rate of 1.549 mmcf/day and is expected to be brought on stream during June or July of this year. Rally is currently acquiring the surface lease for the adjacent spacing unit in order to re-enter an abandoned wellbore of equal bypassed pay potential. If successful, it is planned to bring this well on stream in the same time frame. Rally has a 37.5% working interest in the project prior to pay out and a 30% working interest after payout. Rally in joint venture with Glacier Ridge Resources Ltd., a private Alberta company has to date, acquired a total of 5 sections of land at a 37.5% working interest associated with the play.

To: Kerm Yerman who wrote (10708)	5/14/1998 10:36:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Symmetry Resources reports 1st 3 months Results 1998-05-14 CALGARY, ALBERTA SYMMETRY RESOURCES INC. today announces financial and operating results for the three months ended March 31, 1998. Three Months Ended March 31, 1998 March 31, 1997 % Change -------------- -------------- -------- Financial --------- Oil and Gas Revenue $3,048,339 $2,020,569 + 51 Cash Flow from Operations $1,652,196 $938,530 + 76 Per Common Share $0.06 $0.06 - Net Income $316,110 $270,672 + 17 Per Common Share $0.01 $0.02 - 50 Total Assets at Book Value $25,166,712 $14,312,753 + 76 Weighted Average Common Share 25,747,483 16,393,038 + 57 Operating --------- Daily Production Oil and NGL (Bbl/d) 1,666 682 + 144 Natural Gas (Mcf/d) 1,176 1,223 - 4 Average Daily Production (Boe/d) 1,784 804 + 122 Product Prices Oil and NGL ($/Bbl) $19.12 $28.87 - 34 Natural Gas ($/Mcf) $1.71 $2.26 - 24 Although commodity prices were significantly lower in the first three months of 1998, cash flow from operations was $3,048,339 ($0.06 per share), an increase of 76% from the corresponding period of 1997. Production volumes for the first quarter averaged 1,784 Boe/d, an increase of 122% over 1997. On behalf of the Board of Directors D.C. (Dave) Morgenstern President & Chief Operating Officer CONTACT: D.C.(Dave) Morgenstern, President & Chief Operating Officer (403) 269-1730 Wendy S. Woolsey, Vice President, Finance & Chief Financial Officer (403) 269-1730

To: Kerm Yerman who wrote (10708)	5/14/1998 10:38:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Canadian Conquest reports 1st 3 months Results Canadian Conquest Exploration Inc. ("Conquest") is pleased to report its financial and operating results for the three months ended March 31, 1998. Comparative highlights of its financial and operating performance for this period are outlined below. FINANCIAL (000s except per share amounts) 1998 1997 % Change Revenue $6,621 $ 6,196 +7 Cash flow 3,648 3,332 +9 Per share (basic) 6 cents 6 cents - Net earnings 1,064 1,593 -33 Per share (basic) 2 cents 3 cents -33 Gross capital expenditures 6,231 5,445 +14 Weighted average shares outstanding 60,831 59,002 +3 OPERATIONAL Daily production volumes Gas (MMCF) 20.73 17.50 +19 Oil and NGLs (BBLs) 1,902 1,385 +37 BOE 3,975 3,135 +27 Average selling prices Gas per MCF $1.88 $1.96 -4 Oil and NGLs per BBL 13.17 23.44 -44 Average cash netback per BOE 10.13 13.97 -27 Note:BOE means barrels of oil equivalent where 10,000 cubic feet of gas =1BOE In spite of the continuing weakness in oil prices, Conquest was able to increase its cash flow during the first quarter of 1998 due primarily to the following factors: .. higher oil and gas production volumes. During the first three months of this year, Conquest's daily production volumes amounted to 3,975 BOE, a 27% increase over the 3,135 BOE reported in the prior year period; .. lower unit operating and administrative costs. As a result of its continued emphasis on cost effectiveness, Conquest reduced its operating costs to $3.65 per BOE in the first quarter of 1998 (1997 - $4.12 per BOE), and lowered its administrative expenses to $0.92 per BOE (1997 - $1.23 per BOE) in the same period; and .. increased processing and other fee income. During the first three months of this year, Conquest's gross capital expenditures amounted to $6,231,000, as follows: .. $944,000 for the purchase of undeveloped land and seismic data; .. $2,685,000 for drilling, completion and equipping costs. During the first quarter of 1998, Conquest operated the drilling of eight gross (4.8 net) wells, resulting in three gross (1.7 net) gas wells, one gross (0.5 net) oil well, and four gross (2.6 net) dry holes; .. $1,750,000 for the acquisition of a producing property; .. $458,000 for the construction of gas compression facilities and related pipeline infrastructure; and .. $394,000 of miscellaneous expenditures, including capitalized administrative expenses. In January 1998, Conquest made a new gas pool discovery at Manning in northwest Alberta. The discovery well is currently being tied-in for production, and several offset locations will be drilled shortly. In March 1998, Conquest made a second new pool gas discovery in its central Alberta core area which is expected to be placed onstream next month. Additional locations are currently being delineated on offsetting lands. Conquest intends to drill at least 32 additional Company-operated wells during the balance of this year, most of which will be drilled within its northwest and central Alberta core areas. This drilling program is expected to yield substantial growth in reserves, production, cash flow and shareholder value. Since the beginning of 1998, Conquest has arranged two strategic property acquisitions at a total cost of $5,000,000. The first transaction, which closed in February 1998, involved a gas producing property located within Conquest's northwest Alberta core area. The second acquisition includes additional working interests in two Company-operated, oil producing properties located within Conquest's southwest Saskatchewan core area. On a combined basis, these two acquisitions included: .. proved plus risked probable reserves of 1,360,000 BOE; .. daily production volumes of approximately 390 BOE; .. a various working interests in production, processing and gathering facilities; and .. several sections of undeveloped land. Conquest's balance sheet remains strong, with total debt (including working capital deficit) amounting to $18,631,000 as of March 31, 1998. This debt level equates to 56 percent of Conquest's $33,500,000 bank line of credit, providing the Company with sufficient financial flexibility to undertake a $30,000,000 capital expenditure program in 1998. Of this budget, $20,000,000 has been allocated to exploration and development, while $10,000,000 has been earmarked for strategic property acquisitions. Conquest's common shares are listed for trading on the Toronto Stock Exchange under the symbol "CCN". For further information, please contact Michael S. P. Cooke, President and Chief Executive Officer of Conquest, at (403) 260-6300. May 14, 1998

To: Kerm Yerman who wrote (10708)	5/14/1998 10:43:00 PM
From: Arnie	Respond to of 15196

SERVICE SECTOR / Bromley-Marr Ecos announce Alliance with Matt Garris Oil Recovery Inc. CALGARY, May 14 /CNW/ - CleanCare Corporation (''CleanCare''), a wholly owned subsidiary of Bromley-Marr ECOS Inc. (''BME''), announced today that it has established a business alliance with Matt Garris Oil Recovery Inc. (''Garris''). Garris is one of the largest waste lube oil collectors in Southern Oregon. CleanCare operates its own collection operations in Northern Oregon through its branch office in Portland. CleanCare is also the largest waste lube oil collector and full service provider to manage waste streams from the auto service sector in Washington State. CleanCare's facility in Tacoma, Washington has just recently been upgraded where the company can now manage significantly higher quantities of waste lube oils, waste antifreeze, waste solvents and sludges. This upgrade has provided CleanCare with the only full service waste management facility for the auto service sector on the U.S. West Coast. The agreement with Garris allows CleanCare to now penetrate the Southern Oregon market for all its services. Garris will become the market and collection arm for CleanCare regarding these services for a specified geographic area in Southern Oregon. Mr. Bulman, President of CleanCare stated, ''This arrangement now allows CleanCare with immediate access to the rapidly growing Southern Oregon market. With our previous agreements in Western Canada and our own branch operations in Washington State and Northern Oregon, we now have the ability to rapidly penetrate the key markets in the Northwest U.S. and Canada. We will now aggressively pursue similar type arrangements in Northern California to complete our objective of being a major service provider for the West Coast of North America.'' CleanCare and Bromley-Marr are well recognized in the marketplace for their engineering science and operating expertise in the use of separation and recovery technology to manage waste streams. This technological approach has allowed both CleanCare and Bromley-Marr to provide reduced costs and reduced environmental liabilities to its client base. Bromley-Marr ECOS Inc. is listed on the Toronto Stock Exchange under the symbol ''BME''.

To: Kerm Yerman who wrote (10708)	5/14/1998 10:45:00 PM
From: Arnie	Respond to of 15196

FIELD ACTIVITIES / Circle Energy reports Outstanding Drilling Results CALGARY, May 14 /CNW/ - Circle Energy Inc. today announced a major discover at Brazeau River. The well is capable of producing a sustained 10 million cubic feet of natural gas plus 250 barrels of natural gas liquids per day from the Shunda zone. Circle anticipates to net approximately 4 million cubic feet of natural gas plus 100 barrels of natural gas liquids per day. Including the recently announced success of Morinville, Circle is now capable of producing 5 million cubic feet of natural gas and 100 barrels of natural gas liquids per day (for a total of 600 barrels of oil equivalent per day). Potential annualized cash flow is $2.7 million (netback gas price $1.25/mcf), subject to pipeline capacity and plant facilities. The Morinville and Brazeau River wells are scheduled to be on production by June 1, 1998. The Company recently participated in the purchase of additional lands at Brazeau River. This has potential to dramatically increase reserves and cash flow. The Company has several high potential wells ready to drill including a Nisku test at Brazeau River. This well has the potential to net Circle 10 million cubic feet of natural gas plus natural gas liquids per day. This well is scheduled for June 1998. Circle Energy Inc. is a petroleum and natural gas exploration company that holds oil and gas leases in the Brazeau, Waskatenau and Morinville areas of Central Alberta and in Guadalupe, Lea and Quay Counties in New Mexico, USA. The Company's shares trade on The Alberta Stock Exchange under the symbol CEN.

To: Kerm Yerman who wrote (10708)	5/14/1998 10:47:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Upton Resources reports 1st 3 months Results CALGARY, May 14 /CNW/ - (URC-TSE) Upton demonstrated strong operating performance in the first quarter ended March 31, 1998: - production volumes averaged 5289 barrels per day an increase of 7% compared to the fourth quarter of 1997 and up 14% (25% net of Red River volumes) compared to the first quarter in 1997. Upton's financial performance was solid but influenced by weaker oil prices: - the average sales price was $19.54 per barrel versus $25.48 in 1997. - cash flow was $4.9 million for the first quarter down 16% from 1997. - basic cash flow per share was $0.29 lower compared to 1997 due to a 36% share dilution in 1997. - operating costs were kept low at $3.24 per barrel and maintained Upton's position as amongst the leaders in low cost operations. - achieved an operating netback of $12.49 per barrel and a cash netback of $10.27 per barrel; a very strong performance given weak oil prices and reflected Uptons' blend of over 90% high quality light oil. - positive earnings of $445 thousand and $0.03 basic earnings per share. - the company's financial obligations continued at a reasonable level. The debt level of $21.4 million and working deficit of $3.7 million was 7% lower than obligations at March 31, 1997 and maintains the financial strength of the balance sheet as Upton moves forward. RESERVE ADDITIONS AND CAPITAL EXPENDITURES The company had a successful quarter of finding light oil at an economic finding cost, adding asset value for shareholders: - Upton added estimated reserves of 1.3 million barrels proved and probable which increased the company's reserve base, net of production, from 7.9 million barrels to 8.7 million barrels. - a finding cost of $5.90 per barrel on capital spending of $7.5 million. - Upton booked reserves based on spacing units only on its new discoveries and further delineation drilling is expected to add substantially to the company's reserve base. OPERATIONAL REVIEW The first quarter drilling success positions Upton with the ability to add further to reserves and production with future drilling at a number of key properties. - the first quarter drilling program included 12 of 14 successful wells and very promising new light oil discoveries at Portal, Saskatchewan; Sinkhole, Montana and Tracey Mountain, North Dakota. - the company enjoyed continued success in the Frobisher zone at Midale Saskatchewan where the company now has nine successful producing wells. - in April, Upton completed the acquisition of the remaining 50% of the Midale property at a cost of $1.3 million bringing working interest to 100% in approximately 40,000 acres, and production to 400 barrels per day. The program met management's objectives to balance increases in production with economically added reserves which will enhance the company's asset value. This was accomplished with a balance of exploration and development from the company's excellent inventory of prospects and the acquisition of the balance of the Frobisher rights at Midale Saskatchewan. OUTLOOK Upton has recently completed a 3-D seismic survey at its new discovery at Portal and is planning a similar seismic program at Sinkhole with partners. A second well at Portal will be drilled in the second quarter. Additional drilling will be done in the Midale Frobisher play to secure rights to acreage prospective for future drilling. Upton estimates that it has 20-30 future vertical drilling locations covering an acreage position of over 40,000 acres. The capital expenditure program of $24 million is being re-evaluated as to the amount and allocation in light of Upton's outstanding drilling success in the first quarter. << HIGHLIGHTS Three Months Ended March 31 % change 1998 1997 Production - barrels per day 5,289 4,649 +14 - total barrels 475,966 418,454 +14 Drilling activity - gross wells 14 22 -36 - net wells 8.7 14.3 -39 Petroleum revenues (000's) $9,302 $10,662 -13 Cash flow (000's) $4,886 $5,829 -16 Basic cash flow/share $0.29 $0.48 -40 Fully diluted cash flow/share $0.28 $0.36 -22 Net earnings (000's) $445 $1,100 -60 Basic net earnings/share $0.03 $0.09 -67 Fully diluted net earnings/share $0.03 $0.07 -57 Capital expenditures (000's) $7,506 $52,919 -86 Average shares outstanding (000's) 16,634 12,198 +36 Fully diluted shares outstanding (000's) 17,452 16,321 +7 Average oil price per barrel $19.54 $25.48 -23 Operating costs per barrel $3.24 $3.33 -3 Operating netback per barrel $12.49 $17.08 -27 Cash netback per barrel $10.27 $13.93 -26 Trading Summary High Low Close Volume (000's) 1QTR 1998 $4.25 $3.26 $3.50 1,312 >>

To: Kerm Yerman who wrote (10708)	5/14/1998 10:50:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Avid Oil & Gas reports 1st 3 months Results CALGARY, May 14 /CNW/ - Avid Oil & Gas Ltd. is pleased to present its operating and financial results for the first three months of 1998. During the first three months of 1998, Avid participated in the drilling of seven wells (4.0 net) in the Consort area of Alberta, resulting in four oil wells (1.6 net) and three gas wells (2.4 net). Avid also completed four acquisitions providing 20 boepd of production and 1210 net acres of land for a total cost of $353,000. During the first quarter of 1998, Avid's average production rate was 106 boepd, and in March the company averaged 148 boepd. During the second quarter, the company is expected to average 150-200 boepd. Arrangements are being made to bring the gas wells onstream, and they are expected to contribute an additional 2.0 mmscfd to the company starting in August of this year. In 1998 Avid exited the pre-operating phase and is now presenting an income statement for the first time. Prior to 1998, Avid's expenses, net of revenues, were included in property, plant and equipment. For the three months ended March 31, 1998, the Company recorded gross production revenue of $166,697 and obtained an average sales price of $16.69 per barrel of crude oil and $2.21 per mcf of natural gas for a combined price of $17.54 per barrel of oil equivalent. Royalty expenses were $21,673 or 13% of production revenue as a result of ARTC and royalty holidays, while production costs were $55,838 or $5.87 per BOE. Other income of $50,359 consisted primarily of interest income on term deposits on the cash balance of $4,162,489 at quarter end. Depreciation and depletion charges against income were $79,189 while the general and administrative expenses were $140,919 for the period. This has resulted in a net loss for the period of $80,563 or $0.01 per share and negative cash flow of $1,374. Despite low product prices, Avid averaged a field net back of $9.38 per BOE which, as sales volumes increase in 1998, will provide positive cash flow and earnings as the general and administrative expenses are absorbed. These expenses are mainly fixed by a management agreement in place to administer Avid's corporate and operating affairs. Capital expenditures for the period were $2,108,118 and Avid still enjoys a working surplus of $3,531,570 to fund future capital expenditures and ongoing operations. The drilling activity in the first quarter was mainly derived from the Neutral Hills 3D program shot in September of 1997. The overall results have been very rewarding, but the most exciting aspect of this activity is a significant extension to the OO Pool in Consort. The three new wells drilled into this pool encountered net pay intervals ranging from 8m to 17m, and gross initial production rates ranging from 70 bpd to 250 bpd. Now that the OO Pool limits have been defined with 3D seismic and drilling, Avid is proceeding to license 5 infill locations to be drilled in June. It is estimated that this pool contains 750,000 bbls (225,000 net) of remaining recoverable oil under primary recovery. With the exploration and development program under way in Consort, Avid is aggressively pursuing the development of a second core area. The Company has acquired a land position (100% WI) in the Peace River Arch which contains a well that is believed to have bypassed gas pay. Avid is also participating with a major producer in this area to drill an exploration well (50% WI), targeting gas. These opportunities have the potential to make a significant impact to Avid, as this area is highly prospective, and pool sizes can be very In addition to this exploration activity, Avid continues to aggressively pursue significant acquisitions that will provide development upside, and a larger portfolio of opportunity for future investment and growth for our shareholders. Given the recent erosion of oil prices, it would appear to be an opportune time to take advantage of the Company's financial resources to compete in this market. Avid's business plan for 1998 forecasts an investment of $8.0 million by participating in 26 wells, and exiting the year producing 800-900 boepd. Once the new wells from the OO Pool have been put on stream, and the gas wells drilled during the first quarter have been tied in, Avid's productive capability is expected to increase to 520 boepd. This development activity, plus the exploration opportunities surfacing from the 3D programs, puts the Company on track to meeting the 1998 business plan goals. For Avid, 1998 promises to be a year of exceptional growth through exploration, development, and acquisition.

To: Kerm Yerman who wrote (10708)	5/14/1998 10:52:00 PM
From: Arnie	Respond to of 15196

CORP. / Newstar Resources issues Statement MONROE, MI, May 14 /CNW/ - Newstar Resources Inc. advises that it is not aware of any reason for the recent decline in the trading price of its common shares. Management and the Board of Directors are fully committed to expanding the asset base of the Company through exploration and acquisitions. No member of the Board or Senior Management has reduced their holdings in the Company. Michigan-based Newstar Resources Inc. is an oil and gas exploration and production company with operations in Michigan, Ohio and Texas. The Company trades on the NASDAQ National Market System under the symbol NERIF and the Toronto Stock Exchange under the symbol NER. Certain statements in this news release regarding future expectations of reserve potential, production and drilling may be regarded as ''forward looking statements'' within the meaning of the U.S. Litigation Reform Act. They are subject to various risks, such as the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas. Actual results may vary materially.

To: Kerm Yerman who wrote (10708)	5/14/1998 10:56:00 PM
From: Arnie	Respond to of 15196

FINANCING / Kappa Energy announces Special Warrant Financing CALGARY, May 14 /CNW/ - Kappa Energy Company Inc. announced today that it has engaged Griffiths McBurney & Partners to arrange an offering of a minimum of 4,600,000 and a maximum of 9,200,000 Special Warrants at a price of $.65 per Special Warrant for gross proceeds of a minimum of $3,000,000 and a maximum of $6,000,000. Each Special Warrant will be exercisable into one common share for no additional compensation. The closing of the offering is scheduled for June 4, 1998 and is subject to receipt of all necessary regulatory approvals. The proceeds of the offering will be used to fund Kappa's ongoing international exploration activities in Colombia and Egypt. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, the securities in any jurisdiction. The securities offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration, or an applicable exemption from the registration requirement.

To: Kerm Yerman who wrote (10708)	5/14/1998 10:59:00 PM
From: Arnie	Respond to of 15196

FINANCING / Real Resources closes Special Warrant Financing CALGARY, May 14 /CNW/ - Further to Real Resources Inc.'s news release dated April 22, 1998, the Company is pleased to announce the private placement of 3,300,000 special warrants at a price of $1.10 per special warrant for aggregate gross proceeds of $3,630,000 has closed. Each special warrant entitles the holder to acquire, at no additional cost, one common share of Real, subject to adjustment in certain circumstances. The special warrants were offered through Peters & Co. Limited, who acted as underwriter in connection with the special warrant offering. Real intends to use its best efforts to file and obtain a receipt for a prospectus to qualify the common shares in Alberta, Ontario and Quebec on or before September 11, 1998. Proceeds from this financing will be used by Real to expand Real's capital expenditure program for 1998.

To: Kerm Yerman who wrote (10708)	5/14/1998 11:01:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Cavell Energy reports 1st 3 Months Results CALGARY, May 14 /CNW/ - << FIRST QUARTER FINANCIAL RESULTS SUMMARY 3 months to March 31, 1998 1997 (unaudited) ------------------------------------------------------------------------- Volume (boe/d) 1,646 3,095 Volume (boe) 148,185 278,592 Average selling price ($/boe) 17.97 27.04 Field netback ($/boe) 9.15 18.02 Revenue ($000's) 2,663 7,532 Cash Flow ($000's) 769 4,425 Net profit ($000's) 139 1,862 Average Shares 25,616,122 25,521,122 Cash flow/share (basic) $0.03 $0.17 Net profit/share (basic) $0.01 $0.07 >> SIGNIFICANT PROPERTY ACQUISITIONS Cavell has signed a letter of intent for a property and production acquisition, subject to due diligence, centered in the Hastings and Rocanville areas of SE Saskatchewan. This acquisition includes an undeveloped land position of approximately 65,000 net acres and a present production base in excess of 140 boed. The majority of the undeveloped acreage is located in the Rocanville area where the Bakken formation yields shallow light oil reserves. This acquisition more than doubles Cavell's land base and provides the Company with significant development and exploration opportunities to be exploited in 1998/99. Further, Cavell has completed the following additional acquisitions: - a 38% interest in the Hastings Frobisher Unit, this property holds significant development potential and Cavell plans to drill two to three wells on this property over the next 12 to 15 months, - some highly prospective acreage in the North Stoughton area, Cavell proposes to acquire some seismic and drill one to two wells on this acreage over the next 12 to 15 months; and - in the Oakley Hastings area, a 60% interest in two adjacent shut-in wells which will be tied into Cavell's existing facilities. << DETAILED FIRST QUARTER 1998 FINANCIAL INFORMATION CAVELL ENERGY CORPORATION Consolidated Balance Sheets (thousands of Canadian dollars) ----------------------------------------------------------------------- March 31, December 31, 1998 1997 ----------------------------------------------------------------------- Assets (unaudited) (audited) Current Assets Cash and short term investments $ 214 $ 1,237 Accounts receivable 2,493 3,591 Prepaid expenses 695 740 ----------------------------------------------------------------------- 3,402 5,568 ----------------------------------------------------------------------- Property, plant and equipment 42,221 41,154 ----------------------------------------------------------------------- $ 45,623 $ 46,722 ----------------------------------------------------------------------- ----------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities Accounts payable and accrued liabilities $ 3,213 $ 4,636 Future site restoration provision 929 885 Long-term debt 8,300 7,800 Deferred income taxes 13 372 Shareholders' equity Share capital 31,620 31,620 Retained earnings 1,548 1,409 ----------------------------------------------------------------------- 33,168 33,029 ----------------------------------------------------------------------- $ 45,623 $ 46,722 ----------------------------------------------------------------------- ----------------------------------------------------------------------- CAVELL ENERGY CORPORATION Consolidated Statements of Income (Loss) and Retained Earnings For the three months ended March 31, (thousands of Canadian dollars, except per share data) (unaudited) 1998 1997 ----------------------------------------------------------------------- Revenue Oil and gas sales $ 2,663 $ 7,532 Less royalties 511 1,572 ----------------------------------------------------------------------- 2,152 5,960 Interest 5 47 ----------------------------------------------------------------------- 2,157 6,007 ----------------------------------------------------------------------- Expenses Production 796 943 General and administrative 357 337 Interest 117 8 Depletion and amortization 1,001 1,565 ----------------------------------------------------------------------- 2,271 2,853 ----------------------------------------------------------------------- ----------------------------------------------------------------------- Income (loss) before taxes (114) 3,154 Income and other taxes Capital 106 294 Deferred (recovery) (359) 998 ----------------------------------------------------------------------- (253) 1,292 ----------------------------------------------------------------------- Net income for the period 139 1,862 ----------------------------------------------------------------------- Retained earnings, beginning of period 1,409 7,524 ----------------------------------------------------------------------- Retained earnings, end of period $ 1,548 $ 9,386 ----------------------------------------------------------------------- ----------------------------------------------------------------------- Earnings per common share Basic $ 0.01 $ 0.07 ----------------------------- ----------------------------- Fully diluted $ 0.01 $ 0.07 ----------------------------- ----------------------------- Weighted average number of common shares outstanding during the year 25,616,122 25,521,122 ----------------------------- ----------------------------- CAVELL ENERGY CORPORATION Consolidated Statements of Changes in Financial Position For the three months ended March 31, (thousands of Canadian dollars, except per share data) (unaudited) 1998 1997 ----------------------------------------------------------------------- Operating activities Income $ 139 $ 1,862 Add non-cash items Depletion and amortization 989 1,565 Deferred income taxes (recovery) (359) 998 ----------------------------------------------------------------------- Funds from operations 769 4,425 Changes in non-cash working capital 236 (545) ----------------------------------------------------------------------- 1,005 3,880 ----------------------------------------------------------------------- Financing activities Issue of long-term debt 500 - ----------------------------------------------------------------------- 500 - ----------------------------------------------------------------------- Investing activities Property and equipment (2,712) (10,415) Proceeds on sale of property and equipment 700 - Changes in non-cash working capital (516) (803) ----------------------------------------------------------------------- (2,528) (11,218) ----------------------------------------------------------------------- Increase (decrease) in cash for the period (1,023) (7,338) Cash position at beginning of period 1,237 9,914 ----------------------------------------------------------------------- Cash position at end of period $ 214 $ 2,576 ----------------------------------------------------------------------- ----------------------------------------------------------------------- Cash is defined as cash and short term investments Funds from operations per common share Basic $ 0.03 $ 0.17 ----------------------------- ----------------------------- Fully diluted $ 0.03 $ 0.16 ----------------------------- ----------------------------- >>

To: Kerm Yerman who wrote (10708)	5/14/1998 11:05:00 PM
From: Arnie	Respond to of 15196

EARNINGS / Stellarton Energy reports 1st 3 Months Results CALGARY, May 14 /CNW/ - << Highlight Three months ended % March 31 Change ---------------------------------------------------------------------- 1998 1997 ---------------------------------------------------------------------- Revenue $5,171,613 $3,142,451 65 ---------------------------------------------------------------------- Cash Flow $1,059,416 $660,969 60 Cash Flow per Share $0.06 $0.05 20 Earnings $190,016 $275,421 (31) Production (BOE/day) 1500 622 141 Average shares outstanding 18,552,718 14,604,054 Total shares outstanding 18,620,831(x) 14,615,535 ---------------------------------------------------------------------- (x) Total shares outstanding including Special Warrants issued on February 26, 1998 equals 21,220,831 >> Production volume growth in the Resources division and significant international sales for Secure Oil Tools contributed to solid growth for the first quarter of 1998. Stellarton's gross revenue increased 65 percent in the first quarter of 1998 compared with the same period in 1997. Both Resources and Secure Oil Tools divisions experienced strong year-over-year revenue increases of 97 and 42 percent respectively. Funds from operations increased 60 percent to $1,059,416 for the first quarter of 1998 compared with $660,969 in the first quarter last year. Earnings in the first quarter of 1998 were lower than the same period last year reflecting higher per unit of production depletion rates. On February 26, 1997, Stellarton successfully completed the issue of 2,600,000 Special Warrants, each convertible to one common share at no additional cost. The proceeds of this issue will finance the expansion of Secure Oil Tools and for general corporate purposes. Resources Division Production volume in the first quarter of 1998 was 1,500 barrels of oil equivalent (BOE) per day an increase of 141 percent over the same period in 1997. Funds from operations was up 119 percent in the Resource division as prices in the first quarter of 1998 of $19.11 per BOE were down from $23.30 in the first quarter of 1997. First quarter 1998 operating costs were $6.44 per BOE and general and administrative costs were $2.00 per BOE both down from the first quarter of 1997 when these costs were $8.23 and $2.87 respectively. Royalties as a percent of sales remained consistent at approximately 16 percent. Resources will continue its focus on operational excellence to improve volumes from existing wells. In addition to a planned increase in drilling in our core areas for 1998, the division continues the pursuit of new resource opportunities to deliver further growth in production and cash flow. Production levels as of the date of this release have grown to approximately 1,800 BOE per day with further volumes awaiting tie-in after spring break-up. Secure Oil Tools Secure realized solid revenue growth in its traditional Canadian market, supplemented by its first significant international sales to deliver an increase in revenues to $2.6 million in the first quarter of 1998 compared to $1.8 million in the same period last year. International sales were approximately US$250,000 as Secure completed MeshRite(TM) and associated tool sales in three different international areas. These shipments were trial orders and all have significant follow-up sales potential. Domestic sales of our industry leading enhanced recovery tools and service showed solid year over year growth, up 18 percent in the first quarter of 1998 compared to the first quarter of 1997. Manufacturing margins were 42 percent in the first quarter of 1998 up from 33 percent in the same period in 1997 as a result of higher volume and a focus on manufacturing cost control. General and administrative costs as a percent of sales were higher in 1998 as Secure ramps up for anticipated international sales growth resulting in first quarter cash flow of $176,501 compared to $208,501 in the first quarter of 1997. Secure's international sales for MeshRite(TM) based on a track record of successful installations, combined with the recently announced negotiations with Schlumberger Anadrill to distribute MLS will generate exciting revenue growth to supplement the strong market position Secure has in Canada.

To: Kerm Yerman who wrote (10708)	5/14/1998 11:07:00 PM
From: Arnie	Respond to of 15196

CORP. / Canadian Fracmaster changes name to Fracmaster CALGARY, May 14 /CNW/ - Fracmaster Ltd. announces that at its Annual and Special meeting of Shareholders held today, the shareholders of the Corporation voted and approved an amendment to the Articles of the Corporation which changes the name of the Corporation to ''Fracmaster Ltd.''. The name change was proposed by the management of the Corporation to better reflect the broadening geographical scope of the Corporation's operational activities. In recent years, Fracmaster has extended its area of operations from primarily Canada and Russia, to include the U.S., China, the Middle East and Indonesia. Shareholders also elected two new members to the Board of Directors: Mr. Arthur Dumont of Calgary, Alberta and Mr. Pierre Marie Valentin of Paris, France. Mr. Dumont has extensive experience in the Canadian energy services sector having held senior executive positions with Trimac Limited, Kenting Energy Services Ltd., and Western Rock Bit & Company Limited. He is currently the President of Hughes Christensen Canada, a division of Baker Hughes Canada Inc. Mr. Valentin brings to Fracmaster considerable international business experience, having held executive positions with Thomson-CSF and United Technologies Carrier ETO. He is currently the Chairman and Chief Executive Officer of Coflexip Stena Offshore Group. 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 website at fracmaster.com.

To: Kerm Yerman who wrote (10708)	5/14/1998 11:10:00 PM
From: Arnie	Respond to of 15196

FINANCING / Cirque Energy announces A Righrs Offering to Shareholders CALGARY, May 14 /CNW/ - CIRQUE ENERGY CORP. announces a proposed Rights Offering to its shareholders. Shareholders will receive one Right for each common share held, with eight Rights plus payment of the Rights exercised, approximately 1,184,000 additional common shares will be issued raising approximately $3,000,000. Cirque has retained Brant Securities Limited - Toronto, to manage the solicitation of its shareholders in respect of the Rights. Cirque has filed preliminary documents with the securities commissions in Alberta and Ontario. Cirque expects that the Rights Offering materials will be finalized, and the record date for shareholders entitled to receive Rights and the Rights exercise price determined by the end of May, with the Rights Offering closing by the end of June.