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

To: SofaSpud who wrote (10781)	5/19/1998 8:39:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

CORP / Northrock Resources Ltd. Announces Small Shareholder Selling Program TSE SYMBOL: NRK MAY 19, 1998 CALGARY, ALBERTA-- NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR DISSEMINATION IN THE US. Northrock Resources Ltd. ("Northrock") announces a small shareholder selling program ("the Program") that enables shareholders who owned 99 or fewer common shares ("Shares") of Northrock as of May 15, 1998, to sell their Shares without incurring any brokerage expense. The sale of Shares will be executed through the facilities of The Toronto Stock Exchange. Northrock is proceeding with the Program due to the large number of shareholders owning 99 or fewer common shares of Northrock as a result of the Paragon Petroleum Corporation acquisition. This voluntary program will result in administrative savings and is designed to assist shareholders in selling their Shares in a convenient and inexpensive manner. The voluntary program is open to qualifying shareholders of record as of May 15, 1998. The Program begins on May 19, 1998, and will expire on August 19, 1998, unless extended. Both registered holders and beneficial holders of Shares held in nominee form are eligible to participate. Material will be forwarded to eligible shareholders indicating how they can participate and other details about the program. If you are a resident of the United States, you are not eligible to sell Shares under the Program. Northrock has retained The Proxy Solicitation Company Ltd. of Toronto, Ontario, to manage the Program and to handle share transactions and payment. Questions regarding the Program should be directed to them at 1-800-890-1037. Northrock is an oil and gas company listed on The Toronto Stock Exchange trading under the symbol "NRK".

To: SofaSpud who wrote (10781)	5/19/1998 8:46:00 PM
From: Herb Duncan	Respond to of 15196

CORP TOP 20 LISTED / Carmanah's Operations Continue in Indonesia TSE SYMBOL: CKM MAY 19, 1998 CALGARY, ALBERTA--Carmanah Resources Ltd. ("CKM" - TSE) announced today its offshore operations in Indonesia are continuing and are presently unaffected by current political and social unrest in the country. As a precautionary measure, last week the families of expatriate employees were evacuated to Singapore and early this week most of its remaining expatriate staff were either moved to offshore facilities or temporarily relocated in Singapore. Developments will be monitored and appropriate actions will be taken with a view to the continuing safety of the Company's staff and assets. Carmanah's principal assets and activities are at the Camar Field, located sixty miles offshore Java. A major development drilling and facilities installation program is underway at Camar. All necessary hardware and supplies, including fuel, food and water, are in hand and shortages are not presently anticipated. The Company's office in Jakarta remains secure and is under appropriate protection. In the immediate future, Carmanah will continue to sell its crude oil production to Pertamina, the Indonesian state oil company. While payment for an earlier lifting has been delayed, Carmanah anticipates this will be remedied shortly. Should this not occur, the Company has the ability to secure an export permit enabling it to sell its production in international markets. In the past week, Carmanah's common shares have been under pressure as a result of recent events in Indonesia, including the political, economic and social unrest and disappointing results from the first exploratory well drilled on its Northeast Natuna Production Sharing Contract ("Natuna PSC"). Additionally, crude oil price weakness has persisted, raising concern among investors. The management and Board of Directors of Carmanah wish to reassure its shareholders that, despite recent share price weakness, the Company remains in a strong and viable financial condition with a healthy level of cash and working capital, no net debt, an established available $40 million credit facility with CIBC and a significant proven crude oil and natural gas reserve base estimated as at January 1, 1998 by McDaniel & Associates Consultants Ltd. of Calgary to be 32.2 million BOE's (proven and probable) with a 15 percent present worth exceeding $200 million. Carmanah's 1998 capital program totaling $64 million was developed to realize the productive capacity of its reserve base. Additionally, the Company embarked on its initial exploratory well on the Natuna PSC, financed entirely by an affiliate of Exxon Corporation pursuant to a Farmout Agreement negotiated in 1997. The Camar Program entailed the drilling, completion and tie-back of a minimum of four wells located within established field boundaries. Also, certain production facilities were to be installed to connect wells to current facilities. The first well, CN-3, was drilled from WPP, the northern platform in the Camar Field. This well was originally spudded in 1997 and suspended at an intermediate casing point. Following the arrival of the Pride Pennsylvania jackup rig in April, 1998 this well was re-entered and drilled to basement. Hole conditions prevented running open-hole logs to total depth. Based on drilling results, however, five-inch casing has been run and the well will be completed. Once the well is placed on production, likely during the next week, stabilized flow rates will be determined. Later this week, the Pride Pennsylvania will be moved to Camar-6, where a monopod is presently being installed. Camar-6, which was drilled in 1997 and tested at cumulative rates of 3,700 BOPD of light-gravity crude with no water, will then be completed and tied back. Oil will be produced through a new 8-inch flowline to existing production facilities. Immediately thereafter, Carmanah plans to drill MPA-1, a development well, from the monopod. This well should be placed onstream in early-July, 1998. Subsequently, the fourth budgeted well, Camar-8, a vertical test, will be drilled. This well, if successful, could lead to two additional unbudgeted locations that can be drilled later this year. With all wells in this region onstream by year-end, Carmanah forecasts Camar production could exceed 10,000 BOPD by early-1999. Future drilling at Camar and on the Bawean PSC within which the field is located will be determined when 1999 budgets are formulated later this year. Carmanah's second major development project in Indonesia is at Langsa in the Strait of Malacca, offshore northern Sumatra. As operator and with an 80 percent working interest, Carmanah is scheduling the commencement of production from 3 wells which have been drilled and tested. An initial production rate of 15,000 BOPD of light-gravity crude is anticipated. Shortly, the Company will review bids submitted in response to a tender for the offshore production and storage facilities. Thereafter, a drillship or semi-submersible rig will be contracted to complete the wells and install subsea wellheads in preparation for the arrival of the storage vessel in early-1999. Carmanah's third major development program is underway at Onado, onshore Venezuela. Carmanah is a 23.4 percent participant in a scheduled program to reactivate, rework and recomplete numerous existing wells. Also, two new wells in the Onado Field are scheduled for 1998 and a rig contract has been awarded. Initial reactivations have resulted in daily production in the 1,000 to 1,700 BOPD level, which exceeded expectations. The operator is targeting an exit rate for the field of around 9,000 BOPD. At Natuna, the Durian Besar-1 well was abandoned after failing to encounter hydrocarbons. While disappointing, the well evaluated only one prospect out of several which have been identified and a small portion of this large 736,000-acre PSC. As previously mentioned, Carmanah incurred no financial cost and approximately US$15 million remains to be invested in the block by Exxon to earn its interest under a Farmout Agreement. Further studies and interpretation of new seismic acquired in February, 1998 over numerous other prospects and leads will be required before a second location is selected. The next well will be drilled prior to May, 1999. In summary, Carmanah is continuing with its scheduled program. The Company is targeting a budgeted Q4 exit rate of 8,000 net BOPD in 1998, after deducting Pertamina's share of production and Venezuelan royalties. Average production for the year is forecast at around 4,000 BOPD with the majority of anticipated 1998 cash flow generated in the second half of the year. In 1999, with the impact of Langsa and continued expansion of Camar and Venezuelan production, an average daily production rate of 15,000 net BOPD and an exit rate approaching 17,000 BOPD is achievable. This level of production would result in significantly higher revenue, cash flow and earnings than in any prior year in the Company's brief history, which should contribute to the restoration of investor enthusiasm for Carmanah's future. Carmanah is a Calgary-based international oil and gas exploration and production company. Its strategy is to secure low-cost, underdeveloped oil and gas reserves in selected jurisdictions and then to apply capital to realize the productive potential of these assets. Exploration programs will be financed by farmout or other forms of third-party capital to reduce financial risk. There are 40.5 million common shares outstanding.

To: SofaSpud who wrote (10781)	5/19/1998 8:49:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / CORDEX Petroleums Inc. Announces 1997 Year End Results TSE SYMBOL: CZX.A MAY 19, 1998 DENVER, COLORADO--Cordex Petroleums Inc. reported a net income loss of $0.03 per share in 1997. The loss in 1997 was $4,037,158 compared to a loss of $3,124,578 in 1996. Revenue increased from $1.095 million in 1996 to 1.270 million in 1997. The loss was related to CORDEX's accelerated activity in exploration and evaluation of marginal producing properties in Argentina with significant potential for enhancement, and related activities to increase business opportunities in both Argentina and Chile. CORDEX is continuing the process of attempting to maximize value for the shareholders through farmouts, partnerships and partial asset sales.

To: SofaSpud who wrote (10781)	5/19/1998 8:53:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Snow Leopard Resources Well Drilled and Cased TSE SYMBOL: SNW.A MAY 19, 1998 CALGARY, ALBERTA--Snow Leopard Resources Inc. reports that the Oiltec Empire et al Hartaven 13-36A-9-9 W2M well has been drilled and cased to the Precambrian and completed as a flowing oilwell. A lease battery is being built and the well will be on production prior to month end. Snow Leopard has a sliding scale royalty convertible to 24.3 percent working interest at payout. Further drilling is planned for the area. The Class A common shares of Snow Leopard are listed on the Toronto Stock Exchange under the trading symbol SNW.A.

To: SofaSpud who wrote (10781)	5/19/1998 8:55:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

ENERGY TRUSTS / Petrobank Energy - Record Results in First Quarter 1998 TSE SYMBOL: PBG MAY 19, 1998 CALGARY, ALBERTA--The first quarter of 1998 saw Petrobank post record operating and financial results despite weak commodity prices. Production averaged 2041 BOE per day, up 28 percent from the previous quarter and up 99 percent from the first quarter of 1997. Product revenue in the quarter climbed to a new high of $3.2 million. Product sales price averaged $17.26 per BOE down 13 percent from the previous quarter and down 23 percent from the year ago average of $22.28 per BOE. Oil prices averaged $21.31 per barrel in the quarter while gas prices averaged $1.66 per thousand cubic feet. Natural gas sales represented 80 percent of Petrobank's product revenue in the quarter. Prices for natural gas have strengthened significantly since January and the outlook through year end is encouraging. Operating and administrative costs continued to decline in response to efforts to conduct operations as efficiently as possible. Production expenses averaged $2.00 per BOE in the quarter down 10 percent from the previous quarter and down 67 percent from the year ago average of $4.05 per BOE. General and administrative expenses declined 38 percent from the previous quarter averaging $1.77 per BOE, down from $2.91 per BOE in the first quarter of 1997. Despite the low commodity prices, cash flow from operations increased 30 percent to $2.1 million in the quarter up from $1.6 million in the previous quarter. Cash flow for the quarter was $11.22 per BOE and $0.08 per share. During the quarter, Petrobank (100 percent WI) initiated expansion of its Alder Flats gas plant. Completed April 20, the expansion doubled the plant capacity to 35 million cubic feet per day and will improve liquids recoveries. Following spring breakup, Petrobank will complete and evaluate three unconnected wells for tie-in to the plant. Petrobank has also budgeted to drill five new wells in Alder Flats during the remainder of the year with several additional locations identified for 1999. At Blood Magrath, Petrobank has commenced its deep exploration program with the first of two earning wells down and cased. Completion and evaluation of the first of four hydrocarbon-bearing formations in this wellbore is underway. The second earning well is currently drilling. Petrobank has budgeted for six exploration wells on the property for the current year. Petrobank controls approximately one hundred thousand net undeveloped acres on the Blood Magrath block. The acreage is contiguous and relatively unexplored. At least nine separate formations are prospective for hydrocarbon potential, three of which are currently commercially productive in the immediate area. Successful exploration efforts will provide large reserve potential development opportunities in an area with year round surface access and established infrastructure. Through a persistent application of its exploration and development strategy, Petrobank is now well positioned to capitalize on several industry trends. The outlook for gas prices next winter is very positive with new export pipeline capacity coming onstream. Low oil prices are impacting budgets for oil-weighted companies resulting in reduced competition for drilling rigs and other services. Gas-weighted companies like Petrobank will be able to conduct field operations this year on more favorable terms than last year. With an extensive portfolio of drillable prospects together with production infrastructure in place, Petrobank is poised to continue to generate exceptional growth and shareholder value. /T/ PETROBANK ENERGY AND RESOURCES LTD. Quarterly Information With Comparatives (Unaudited) 1997 1998 Comparatives Q1 Q4 Q1 98Q1/ 98Q1/ 97Q4 97Q1 Sales Rate (Percent) Oil (Bbl/d) 9 19 20 4.9 126.0 Gas (mcf/d) 8,373 13,155 16,873 28.3 101.5 NGL's (Bbl/d) 181 255 334 30.8 84.4 BOE (Bbld/d) 1,027 1,590 2,041 28.4 98.7 Prices Oil ($Bbl) 28.76 26.56 21.31 -19.8 -25.9 Gas ($/mcf) 2.07 1.86 1.66 -10.6 -20.0 NGL's ($/Bbl) 27.78 25.32 20.47 -19.1 -26.3 BOE ($/Bbl) 22.28 19.73 17.26 -12.5 -22.5 Product Revenue($) 2,059,555 2,885,188 3,170,858 9.9 54.0 Other Income ($) 11,624 91,797 70,692 -23.0 508.2 Net Royalties (after ARTC)($)(195,191) (454,515) (280,923) -38.2 43.9 Net Revenue($) 1,875,988 2,522,470 2,960,627 17.4 57.8 Expenses($) Production 556,143 323,281 366,564 13.4 -34.1 General and Administrative 269,316 414,774 324,313 -21.8 20.4 Interest 73,872 130,460 193,527 48.3 162.0 Current Taxes - 54,380 16,000 -70.6 - Cash Flow from Operations($) 976,657 1,599,575 2,060,223 28.8 110.9 Depletion, depreciation, site restoration($) 458,039 1,793,482 1,429,526 -20.3 212.1 Deferred Taxes($) - 273,125 101,361 -62.9 - Net Income (loss)($) 518,618 (467,032) 529,336 -213.3 2.1 Share Capital Weighted basic 21,185,208 22,102,491 25,366,597 14.8 19.7 Fully diluted 23,592,708 25,594,158 27,524,374 7.5 16.7 Outstanding 22,172,708 25,227,708 25,517,708 1.1 15.1 Cash Flow per share ($/share) Basic 0.05 0.07 0.08 14.3 60.0 Fully Diluted 0.04 0.06 0.07 12.9 75.0 Earnings per share ($/share) Basic 0.02 (0.02) 0.02 - - Fully Diluted 0.02 (0.02) 0.02 - - Per BOE Operating Statistics ($/BOE) Production Expenses 6.02 2.21 2.00 -9.7 -66.8 Cash Flow 10.57 10.94 11.22 2.6 6.2 G&A 2.91 2.84 1.77 -37.7 -39.4 PETROBANK ENERGY AND RESOURCES LTD. CONSOLIDATED BALANCE SHEETS (Unaudited) -------------------------------------------------------------- As at March 31 1998 1997 ASSETS Current Cash $ 0 $ 0 Accounts receivable and deposits 4,379,405 2,451,630 -------------------------------------------------------------- 4,379,405 2,451,630 Deferred income tax 197,255 494,926 Fixed Assets Property and equipment 46,137,895 24,172,146 Accumulated depletion and Depreciation (5,127,692) (767,899) -------------------------------------------------------------- 41,010,203 23,404,247 -------------------------------------------------------------- $45,586,863 $26,350,803 -------------------------------------------------------------- -------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable $ 6,580,254 $ 2,132,758 Capital taxes payable 70,960 23,000 Loan payable 719,500 0 Prepaid gas sales contract-current portion 481,800 481,800 -------------------------------------------------------------- 7,852,514 2,637,558 Long term debt 16,783,204 5,336,551 Loan payable 570,152 1,375,819 Prepaid gas sales contract 2,405,980 2,885,920 Future site restoration 80,234 12,148 -------------------------------------------------------------- Total liabilities 27,692,084 12,247,996 -------------------------------------------------------------- Shareholders' Equity Share capital 16,268,393 13,226,849 Limited partnership units 552,092 552,092 Retained earnings 1,074,294 323,866 -------------------------------------------------------------- 17,894,779 14,102,807 -------------------------------------------------------------- $45,586,863 $26,350,803 -------------------------------------------------------------- -------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT (Unaudited) For the three month period ended March 31 1998 1997 REVENUE Oil and gas $3,170,858 $2,017,046 Processing revenue 70,692 0 Royalties (net of Alberta Royalty Tax Credit) (280,923) (195,191) ----------------------- 2,960,627 1,821,855 Other income 0 54,133 ----------------------- 2,960,627 1,875,988 EXPENSES Production 366,564 556,143 General and administrative 324,313 269,316 Interest 193,527 73,872 Depletion, depreciation and site restoration 1,429,526 458,039 ----------------------- 2,313,930 1,357,370 Income taxes 117,361 0 ----------------------- Net income for the period 529,336 518,618 Retained earnings (deficit), beginning of period 544,958 (194,752) ------------------------ Retained earnings, end of period $1,074,294 $ 323,866 ------------------------ ------------------------ Net income per common share Basic 0.02 0.03 Fully Diluted 0.02 0.03 ------------------------ ------------------------ CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the three month period ended March 31 1998 1997 OPERATING ACTIVITIES Net income (loss) for the period $ 529,336 $ 518,618 Items not affecting cash Depletion and depreciation 1,429,526 458,039 Deferred taxes 101,361 0 ----------------------- Funds from (used in) operations 2,060,223 976,657 Net change in non-cash working capital 1,440,270 (811,414) ------------------------ 3,500,493 165,243 FINANCING ACTIVITIES Proceeds from long term debt 6,419,028 2,534,033 Repayments of loan payable (175,000) 0 Proceeds from loan payable 25,651 19,323 Proceeds from prepaid gas contract 0 51,000 Deliveries on prepaid gas contract (116,940) (104,188) Proceeds from issuance of common shares 120,235 18,000 Tax benefits renounces to flow-through shareholders (1,250,000) 0 ----------------------- 5,022,974 2,518,168 Cash available for investment 8,523,467 2,683,411 INVESTING ACTIVITIES Expenditures on property and equipment (8,502,031) (2,245,801) Other assets (21,436) (0) Net change in non-cash working capital (0) (5,571,360) ------------------------ (8,523,467) (7,817,161) Increase(decrease) in cash during the period 0 (5,133,750) Cash, beginning of period 0 5,133,750 ------------------------ Cash, end of period $ 0 $ 0 ------------------------ ------------------------- Funds from operations per share Basic 0.08 0.05 Fully diluted 0.07 0.04 ------------------------ ------------------------

To: SofaSpud who wrote (10781)	5/19/1998 8:58:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Ramarro Resources Inc. - 1998 Second Quarter Results ASE SYMBOL: RMA MAY 19, 1998 CALGARY, ALBERTA--Ramarro Resources Inc. announces the results for the six month period ended March 31, 1998. FIRST HALF 1998 1997 -------------------------------------------------------------- Revenue $1,353,354 $1,367,163 Cash generated from operations $ 561,741 $ 702,509 Cash flow per share $ 0.035 $ 0.064 Net earnings $ 137,915 $ 331,566 Per share $ 0.009 $ 0.030 Natural gas sales Total (mmcf) 476.8 393.9 Daily (mmcf) 2.6 2.2 Average natural gas price per mcf $ 1.94 $ 2.15 -------------------------------------------------------------- /T/ This period's strong results reflect increased sales volumes offset by slightly lower average natural gas prices. Natural gas volumes are up 21.0 percent compared to last year. A further development drilling program of up to 12 wells is planned for Cessford North to commence in mid-June and to be on stream before the end of the summer.

To: SofaSpud who wrote (10781)	5/19/1998 9:05:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

ENERY TRUSTS / First Premium Oil & Gas Income Trust Announces 1997 Results TSE, ME SYMBOL: FPG.UN MAY 19, 1998 TORONTO, ONTARIO--First Premium Oil & Gas Income Trust announces results for the period from commencement of operations March 12, 1997 to December 31, 1997. Total results from financial operations amounted to ($4.7) million or ($1.09) per unit which includes both realized and unrealized capital gains and losses. Net assets decreased from $51.1 million to $42.2 million. Distributions to Unitholders amounted to $2.6 million or $0.60 per unit from realized investment income. First Premium Oil & Gas Income Trust's investment objectives are to provide Unitholders with a stable stream of quarterly distributions of at least $ 0.1875 per Unit. The Trust intends to achieve its investment objectives by investing in a diversified portfolio consisting primarily of common shares issued by corporations that are included in the TSE 300 Oil & Gas Sub-Index and up to 20 percent of the cost amount of its assets in common shares issued by corporations that are included in the Standard & Poor's 500 Oil & Gas Sub-Index. In either case, in order to generate returns above the dividend income generated by the portfolio, the Trust may write covered call options in respect of all or part of the securities in the portfolio. The Trust's investment portfolio is managed by it's investment manager, Mulvihill Capital Management. Trust Units are listed on The Toronto Stock Exchange and The Montreal Exchange under the symbol FPG.un /T/ Selected Financial Information: ($ millions unless stated otherwise) Statement of Net Assets 1997 ---- Assets $43.7 Liabilities 1.5 ----- Net Assets (Unitholders Equity) $42.2 ----- Statement of Financial Operations (from inception): Income $ 0.8 Expenses 0.7 ----- Net Investment Income 0.1 Net Loss on Investments (4.8) ----- Total Results from Financial Operations ($4.7) -----

To: SofaSpud who wrote (10781)	5/19/1998 9:08:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Redeco Announces Major Gas Contract in Moldova ASE SYMBOL: RE MAY 19, 1998 CALGARY, ALBERTA--Redeco Energy Inc. today announced the signing of a natural gas sales contract with Concern MoldovaGaz JSC, the Moldovan natural gas transmission company and distribution utility, providing a market for gas to be produced under the Concession which covers the entirety of the Republic of Moldova. The contract provides for an annually fixed price based on current market less a 5 percent discount, approximately C$3.00/mcf for the current year. The contract will be in force for the duration of the Concession, but does not require an exclusive dedication of reserves. The Moldovan Concession, which is operated by Redeco's 50 percent partner, Costilla Energy, Inc. of Midland, Texas, currently has two gas fields and one oil field under development. Redeco and Costilla also have ongoing direct sales to industrial, commercial and residential customers in Moldova at approximately C$4.00 per mcf. Redeco CEO, William C. Liedtke, hailed the execution of the contract as a milestones for both Redeco and Moldova. "This contract gives Moldova for the first time ever a supply of dependable natural gas, domestically produced and at prices lower than imported gas. This wholesale contract to MoldovaGaz, coupled with current and future direct sales by the Concession to industrial and other customers at retail prices, gives us a very attractive outlet for our gas production and will allow us to accelerate our drilling schedule. This contract is also the first step in a relationship between Redeco, Costilla and MoldovaGaz that envisions future joint ventures on gas transmission and distribution in Moldova." Redeco is an oil & gas exploration and development company headquartered in Calgary, Alberta. In addition to the Moldovan concession, Redeco has been awarded a 50 percent interest in three oil and gas exploration production concessions covering 3.1 million acres in southern Romania.

To: SofaSpud who wrote (10781)	5/19/1998 9:18:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Penn West Petroleum Announces Quarterly Results TSE SYMBOL: PWT MAY 19, 1998 CALGARY, ALBERTA--PENN WEST PETROLEUM LTD. (TSE - PWT) is pleased to announce its results for the first quarter ending March 31, 1998. Production of natural gas for the first quarter of 1998 averaged 170.1 MMcf/day, an increase of 16 percent over the production of 146.9 MMcf/day for the first quarter of 1997. Oil and liquids production reached 13,039 barrels per day, representing an increase of 9 percent over the production of 12,016 barrels per day for the first quarter of 1997. Commodity prices were lower in the first quarter of 1998, with oil and liquids prices down 33 percent and natural gas prices down 17 percent from the same period last year. With the lower prices partially offset by increased production volumes, cash flow for the first quarter decreased by 21 percent to $25.5 million ($0.63 per share) from $32.4 million ($0.82 per share) for the first quarter of 1997. Net income decreased by 35 percent to $7.5 million ($0.19 per share) for the first quarter of 1998 versus $11.5 million ($0.29 per share) for the same period in 1997. /T/ The financial and operating highlights follow: Three months ended March 31 ------------------------------- Percent 1998 1997 Change ------------------------------- FINANCIAL ($ thousands, except per share amounts) Gross revenues $48,295 $56,340 (14) Cash flow from operations $25,456 $32,351 (21) Per share 0.63 0.82 (23) Net income $7,495 $11,532 (35) Per share 0.19 0.29 (34) PRODUCTION Natural gas: MMcf/day 170.1 146.9 16 Operating netback ($ per Mcf) Sales price $1.90 $2.28 (17) Royalties 0.22 0.41 (46) Operating costs 0.30 0.37 (19) ----- ----- ---- Netback $1.38 $1.50 (8) ----- ----- ----- ----- Oil and liquids: Barrels per day 13,039 12,016 9 Operating netback ($ per barrel) Sales price $16.30 $24.23 (33) Royalties 2.94 4.48 (34) Operating costs 6.74 6.15 10 ------ ------- Netback $ 6.62 $13.60 (51) ------ ------ ------ ------ Combined totals: Barrels of oil equivalent (x) Daily production 30,051 26,704 13 Operating netback ($ per Boe) Sales price $ 17.86 $23.44 (24) Royalties 2.53 4.26 (41) Operating costs 4.64 4.81 (4) ------- ------ Netback $10.69 $14.37 (26) ------- ------ ------- ------ /T/ (x) Barrels of oil equivalent (BOE) based on 10 mcf of natural gas equals 1 barrel of oil /T/ CONDENSED BALANCE SHEET ($ thousands) ------------------------------------ As at As at March 31, 1998 December 31, 1997 ------------------------------------- Assets Current assets $ 43,033 $ 36,268 Capital assets 616,916 548,511 ---------- --------- $659,949 $584,779 ---------- ---------- ---------- ---------- Liabilities and Shareholders' equity Current liabilities $ 72,253 $ 51,014 Long-term debt 206,702 169,468 Deferred credits 96,292 90,271 Shareholders' equity 284,702 274,026 ---------- --------- $659,949 $584,779 ---------- --------- ---------- --------- Three months ended March 31 ------------------------------- Percent 1998 1997 Change ------------------------------- CAPITAL EXPENDITURES ($ thousands) Net of dispositions $ 80,034 $ 89,378 (10) -------- -------- -------- -------- Three months ended March 31 ------------------------------------ 1998 1997 Gross Net Gross Net ------------------------------------ WELLS DRILLED Natural Gas 42 34.7 42 39.4 Oil 9 8.2 9 9.0 Dry 12 12.0 7 6.3 ------------------------------------ Total 63 54.9 58 54.7 ------------------------------------ ------------------------------------ Success rate (in percent) 78 88 ------------------------------------ ------------------------------------ Percent 1998 1997 Change COMMON SHARE DATA (thousands of shares) ----------------------------------- Weighted average for three months ended March 31 40,444 39,530 2 Outstanding at March 31: Basic 40,604 39,669 2 Fully diluted 44,517 43,512 2 /T/ At the end of the first quarter in 1998, Penn West commenced natural gas production at Wildboy in its Northern core area. The Wildboy project included the drilling of five horizontal wells, the construction of a field gathering system and the installation of compression facilities with a combined productive capability of 25 MMcf/day. In the first quarter of 1998, Penn West's capital expenditures totalled $80.0 million. More than 40 percent of this amount was invested at Wildboy, with the remainder spent primarily on natural gas opportunities in winter access areas. Penn West will continue to focus on natural gas development opportunities during 1998, while at the same time maintaining an inventory of longer-term crude oil prospects for development when crude oil prices recover. Penn West Petroleum Ltd. is a Calgary based oil and natural gas company that focuses on exploration and development activity in Western Canada. Penn West trades on The Toronto Stock Exchange under the symbol PWT.

To: SofaSpud who wrote (10781)	5/19/1998 9:23:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Tarragon Oil and Gas Announces Operating Results for Three Months Ended March 31 TSE, ME SYMBOL: TN MAY 19, 1998 CALGARY, ALBERTA--Tarragon Oil and Gas Limited announced today operating results for the three months ended March 31, 1998: /T/ Three Months Ended March 31 ---------------------------- Percent 1998 1997 Change ------------------------------ Gross production revenue ($000s) 51,097 66,077 (23) Cash flow from operations ($000s) 21,965 38,548 (43) Per share ($) - basic 0.42 0.76 (45) - fully diluted 0.39 0.71 (45) Net income ($000s) 450 10,586 (96) Per share ($) - basic 0.01 0.21 (95) - fully diluted 0.01 0.20 (95) Daily production Oil(bbls/d) 13,000 15,404 (16) Gas (mmcf/d) 177.1 152.6 16 Combined (boe/d) 30,710 30,664 - Average prices Before hedging Oil ($/bbl) 14.17 24.24 (42) Gas ($/mcf) 2.06 2.52 (18) After hedging Oil ($/bbl) 14.22 23.04 (38) Gas ($/mcf) 2.16 2.49 (13) Common Shares Total outstanding (000s) 52,157 50,918 2 Weighted average (000s) 52,137 50,890 2 /T/ Financial results for the first quarter of 1998 were significantly impaired by oil prices that were the lowest in this decade. Wellhead prices for heavy oil were exacerbated by record high differentials, resulting in an average of $5.48 per barrel for the 2,965 barrels per day of heavy oil production for Tarragon during this quarter, compared to $16.21 per barrel for 2,393 barrels per day for the same period in 1997. Fortunately, natural gas prices remained strong despite a mild winter, and natural gas accounted for 58 percent of the Company's production during the period. The Company participated in the drilling of 70 (46.1 net) wells in the first quarter of 1998, resulting in 12 (2.6 net) oilwells, 41 (29.2 net) gas wells, 6 (5.9 net) service wells and 11 (8.4 net) dry holes. The overall success ratio was 84 (81.7 net) percent. Tarragon shareholders overwhelmingly endorsed the acquisition of the Unocal Canada assets at the general meeting held on April 15, 1998 with a 99.9 percent affirmative vote. Operating results of these assets will be consolidated into Tarragon's financial statements beginning from this date. Following the general meeting, the Company's expanded Board of Directors approved an operating plan for the balance of 1998. The plan is designed to deliver optimum operating results while maintaining financial flexibility in a low oil price environment. The Company expects total net capital expenditures for 1998 to be $400 million. The acquisition of the Unocal Canada assets accounts for $308 million of this program while exploration and development accounts for $130 million. The Company also expects to raise $38 million from the disposition of non-core properties during the second quarter of this year. Tarragon enjoyed a very successful drilling program this past winter, especially with respect to natural gas. At Graham in northeast British Columbia, three successful horizontal wells tested at rates exceeding 5 million cubic feet per day per well, confirming this technology as an effective means of exploiting and increasing existing reserves. Up to a dozen more wells remain to be drilled in the Graham area with Tarragon's interest being 40 percent. At Bistcho in northern Alberta, the drilling of 12 wells, including two successful exploratory wells, extended pool boundaries and added deliverability to the gas plant built last winter. In the northeast Alberta shallow gas area, the winter program included the drilling of 32 wells, of which 23 were cased for production, and the construction of a new compressor station. Net production increases of 15 million cubic feet per day are expected from this program. The majority of Tarragon's 1998 conventional oil program is geared towards exploitation of existing reservoirs after spring break-up. Development drilling is planned at Jumpbush in southern Alberta and at Tatagwa and Queensdale in southeast Saskatchewan, all historical Tarragon properties. Exploitation drilling will also be conducted at Slave and Red Earth in the Peace River Arch, and Virginia Hills in west central Alberta, which are properties acquired in the Unocal transaction. Although the winter program was primarily development in nature, Tarragon is very pleased with the exploration success this program delivered. Two new gas discoveries in central Alberta need to be evaluated further before development plans can be formulated, while two promising light oil discoveries will now undergo delineation drilling. Tarragon will continue to selectively drill exploration prospects throughout the year with the expectation that this activity will further add to the Company's inventory of development projects. With the precipitous decline in world crude prices and the widening of heavy oil differentials, Tarragon has deferred development plans at Edam and Bolney Phase 2 until prices return to threshold economic levels. Bolney Phase 1 production optimization is continuing with peak production expected to be reached by year end. The Company plans to resume development of its vast heavy oil reserves at Bolney and Edam when crude oil prices recover. Independent engineers have assigned recoverable reserves of 110 million barrels to the Company's heavy oil properties at year end 1997. Current daily production is 210 million cubic feet of natural gas, 18,500 barrels of conventional oil and liquids, and 3,000 barrels of heavy oil, after giving effect to the Unocal transaction and the disposition of aforementioned non-core properties. The Company's current production mix, therefore, is 50 percent natural gas, 43 percent conventional oil and liquids, and 7 percent heavy oil. Average daily production for 1998, with the Unocal transaction effective April 15, is expected to be 200 million cubic feet of natural gas, 15,500 barrels of conventional oil and 5,000 barrels of heavy oil. Based on price assumptions of U.S. $17.00 for WTI oil and $2.00 per mcf for natural gas, cash flow from operations should approximate $125 million or $1.86 per share. Total debt a year-end 1998 is projected at $430 million, including the $100 million subordinated debenture held by Unocal. Based on projected cash flow from the second half of this year, total debt level represents 2.9 times annualized cash flow, or 2.2 times when the subordinated debenture is excluded. These ratios are expected to improve during the course of 1999 as production volumes and product prices are expected to increase form 1998 levels. Tarragon Oil and Gas Limited is a Canadian-owned exploration and production company whose thrust is to build assets and cash flow through exploration, development and selective asset purchases in Western Canada. Its common shares trade on The Toronto Stock Exchange and The Montreal Exchange under the symbol TN.

To: SofaSpud who wrote (10781)	5/19/1998 9:26:00 PM
From: Herb Duncan	Respond to of 15196

ACQUISITIONS-MERGERS / Centennial Energy Partners, L.P. Acquires 150,000 Common Shares of Baytex Energy LTD. MAY 19, 1998 NEW YORK, NEW YORK--Centennial Energy Partners, L.P., Tercentennial Energy Partners, L.P., Quadrennial Partners, L.P., Centennial Overseas Fund, Ltd., (with respect to shares held in a discretionary account managed by Centennial Management, L.L.C.) and Joseph H. Reich & Co., Inc., (with respect to shares held in a discretionary account managed by it) (collectively the "Reporting Persons") announce that Tercentennial Energy Partners, L.P. acquired 150,000 common shares of Baytex Energy LTD. on May 14, 1998 through the facilities of The Toronto Stock Exchange. Centennial Energy Partners, L.L.C. is the General Partner of Centennial Energy Partners L.P., Tercentennial Energy Partners, L.P., and Quadrennial Partners, L.P. The principal members of Centennial Energy Partners, L.L.C. are also the principal members of Centennial Management, L.L.C. and the executive officers of Joseph H. Reich & Co., Inc. The purchase by Tercentennial Energy Partners, L.P. of common shares of Baytex Energy LTD. is for the purpose of investment. As a result of their normal course purchases, the Reporting Persons currently own in the aggregate 3,459,068 common shares of Baytex Energy LTD., representing 10.18 percent of the issued and outstanding common shares. The Reporting Persons may continue to purchase common shares of Baytex Energy LTD. for investment purposes, depending on the market conditions for shares of Baytex Energy LTD. and other factors.

To: SofaSpud who wrote (10781)	5/19/1998 9:28:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / CanBaikal Announces New Initiative and Year End Results ASE SYMBOL: CBQ MAY 19, 1998 CALGARY, ALBERTA--CanBaikal Resources Inc. (CBQ) is pleased to announce a new initiative in its ongoing strategy to build a significant reserve base in Russia. CanBaikal is currently evaluating two large oil and gas properties in the Khanty Mansisyk region of western Siberia, which have been offered to it by YUKOS Oil Ltd. (YUKOS) of Moscow, Russia. The properties are adjacent to CanBaikal's current license block and contain recoverable reserves in excess of 200 million barrels of oil, as estimated by YUKOS. The properties are in excess of 400 square kilometers each and currently are producing over 16,000 barrels of oil per day with a planned maximum of 60,000 bbls/day. CanBaikal expects the technical evaluation of the properties to take up to three months, during which time a decision will be made as to the nature of the deal to be closed with YUKOS. Robert Bolton, Chairman and C.E.O. of CanBaikal stated, " The opportunity offered to us by YUKOS will allow us to significantly shorten our time frame to generate ongoing cash flow and to add significant reserves to our base currently under license. The proximity of these blocks to our existing block will also allow us to be focused in the technology of oil recovery in one area of the Siberian basin and enable us to minimize our infrastructure costs. Our detailed technical review will start immediately and we will begin negotiating an arrangement to acquire the currently economic reserves as soon as possible." CanBaikal completed its first fiscal year on December 31, 1997 and many milestones marked the year. The Company received the first ever license awarded by the Khanty Mansisyk government to a foreign company in February 1997 and completed its initial public offering in July of 1997 for $5 million. We were successful in opening our office in Nefteyugansk and commenced our Russian operations in October 1997. Revenues for the year totaled $62 thousand of interest income and total expenses amounted to $486 thousand to generate a net loss $424 thousand ($0.04 cents per share) for the twelve months ended December 31, 1997. CanBaikal expended $1.3 million on capital expenditures including seismic, evaluation, corporate and development expenditures. CanBaikal Resources Inc.'s working capital position at year-end was $3.4 million and the net asset value per basic share outstanding was $2.54.

To: SofaSpud who wrote (10781)	5/19/1998 9:34:00 PM
From: Herb Duncan	Respond to of 15196

PROPERTY ACQUISITION / Loon Energy Closes Property Acquisition ASE SYMBOL: LEY MAY 19, 1998 CALGARY, ALBERTA--Loon Energy Inc. reports that the previously-announced acquisition of a producing oil property in Grand Forks, Alberta closed as planned on May 15, 1998. This purchase, effective April 1, 1998, will provide approximately 70 barrels per day of oil production net to Loon. Grand Forks represents Loon's first cash flow generating property. Loon has also initiated a private placement financing for a maximum of $2,650,000 by issuance of 5,000,000 special warrants. The expected closing of the financing is May 27, 1998.