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

To: Kerm Yerman who wrote (10862)	5/22/1998 7:32:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / TransGlobe Energy Announces Six Month Financial and Operating Results TSE, ASE SYMBOL: TGL ASE SYMBOL: TGL.S NASDAQ SYMBOL: TGLEF MAY 22, 1998 CALGARY, ALBERTA--TransGlobe Energy Corporation (ASE, symbol "TGL"; TSE symbol "TGL"; NASDAQ symbol "TGLEF") announced its financial and operating results for the six month period ended March 31, 1998. EXPLORATION UPDATE Block S-1, Yemen The Production Sharing Agreement (the "PSA") with the Ministry of Oil and Mineral Resources covering Block S-1 in the Republic of Yemen has been approved by the Yemen Cabinet and is presently being reviewed by the Yemen Parliament. Ratification by the Yemen Parliament is expected shortly. TransGlobe have started the re-processing and interpretation of the existing seismic data. A 150 square kilometer 3-D seismic program is expected to begin in the fall of 1998. The first well in a three well exploration program in the Block S-1 is planned to be drilled during the first quarter of 1999 and expected to evaluate a discovery previously made by a major oil company. Block 32, Yemen The exploration work in the Block 32, the Republic of Yemen, where the Company participated in the Tasour-1 oil discovery is expected to resume in late summer with a seismic program to delineate the Tasour structure and firm up additional exploratory drilling locations followed by drilling of two appraisal and one exploratory wells. TransGlobe management has estimated the proven reserves in the Tasour structure at 5.9 million barrels of recoverable oil with a probable additional reserves of 8.7 million barrels. An independent reserves report will be prepared for inclusion in the Company's annual reserves statement. Additional appraisal wells will be needed to prove sufficient reserves to warrant development. The appraisal-drilling program is planned to start in early 1999. The Company has increased its working interest in Block 32 from 8 percent to 9.81087 percent, at no cost to the Company, by assuming a pro-rata share of a withdrawing partner. East Meridian, Montana During the quarter, the Company participated in the BROG 13-19 well in Richland County, Montana at a 50 percent working interest (40 percent net revenue interest). The well was drilled horizontally and is currently producing at 235 barrels of light oil per day from the Red River "C" formation. In addition the Company participated at a 25 percent working interest level in the Johnson 21-1 well which was plugged an abandoned. TransGlobe's management is reviewing the drilling results obtained to date in the Richland County, Montana project and may commit to additional exploratory wells during 1998. FINANCIAL UPDATE (All dollar values are expressed in the United States dollars unless otherwise stated.) Capital expenditures in the United States for the quarter were $1,000,517 of which $665,000 were incurred on the drilling and completion of the BROG 13-19 well and the balance on the carry-over charges related to the CWI BN 17-1 and Johnson 21-1 wells as well as the Moline Lake prospect. In Yemen, the Company incurred $299,996 in capital expenditures during the three months ended March 31, 1998. These expenditures were primarily related to the Company's share of the seismic reprocessing and local office costs for Block 32. The Company's oil and condensate production increased by 89 percent from the previous quarter and 675 percent over the same period in 1997. The oil and condensate production averaged 216 barrels per day during the quarter compared to 114 barrels per day for the immediately preceding quarter and 32 barrels per day for the same period in 1997. The impact of strong production gains was more than offset by the steep decline in the world crude oil prices. The Company averaged $13.79 per barrel of oil and condensate during the quarter as compared to $18.31 in the previous quarter and $22.34 in the same period in 1997, declines of 25 percent and 38 percent respectively. Natural gas production during the quarter declined to 629 mcf per day from 760 mcf per day in the previous quarter. This drop in production was primarily due to the mechanical problems encountered in the Madera 30-1 well during February and March, 1998. As compared to the same period in 1997, the natural gas production declined from 941 mcf per day to current levels as a result of the Madera 30-1 well attaining two separate pay-outs in December 1996 and May 1997 which resulted in TransGlobe's net revenue interest reducing to 35.4 percent from 56 percent. The Company averaged $2.26 per mcf during the three-month period ended March 31, 1998 as compared to $3.11per mcf during the preceding quarter and $2.98 per mcf for the same period in 1997. The decline in the natural gas prices was related to the warmer than normal winter weather conditions experienced in the United States. Oil and gas revenue (net of royalties) and operating expenses were $292,825 and $73,537 compared to $301,015 and $39,340 respectively for the immediately preceding quarter and $290,015 and $31,791 for the same period in 1997. The decline in revenue was due to lower oil and gas prices partially offset by higher oil production. The increase in operating expenses was due to the salt water disposal charges in the Larson 18-1 well, costing the Company $40,797 for the six month period. This well is now abandoned, and the operating expenses are back to their normal levels. The Company's general and administrative expenses were $632,589 for the six month period ended March 31, 1998 as compared to $683,641 for the same period in 1997, a reduction of 7.5 percent. Included in the general and administrative expenses were legal fees related to the Company's shareholders' rights protection plan and the recent issue of debentures and promissory notes and a bank financing. These charges are non-recurring in nature and consequently the Company's management expects a further reduction in general and administrative expenses during the remainder of the year. In February 1998, the Company issued 92,819 common shares, unsecured debentures and promissory notes in the amount of Cdn. $700,000 and Cdn. $500,000 respectively to fund its exploration activities in Yemen and the United States. The common shares and debentures were subscribed by arm's length investors and the promissory notes were issued to some directors and officers of the Company and their associates. Debentures and promissory notes bear interest at prime plus 1 percent and mature on September 1, 1998. The holders of the common shares and debentures were issued warrants to purchase 326,965 common shares at an exercise price of $1.70 per share and the holders of the promissory notes were issued warrants to purchase 178,569 common shares at an exercise price of $1.75 per share. In April, 1998, the Company arranged a revolving reducing demand loan for $750,000 with the National Bank of Canada. The Company is repaying the revolving loan by $25,000 per month commencing April 1998. The loan bears interest at the National Bank's U.S. base rate plus 1 percent and is secured by a general assignment of book debts, a first floating charge debenture over all assets of the Company, a guarantee from the Company's wholly owned United States subsidiary and other pledges and negative pledges. /T/ Operating and Financial Results Summary -------------------------------------------------------------- Three months ended March 31, December March 31, 1998 31, 1997 1997 -------------------------------------------------------------- Production: Oil and condensate (barrels per day) 216 114 32 Natural gas (mcf per day) 629 760 941 Product prices: Oil and condensate ( per barrel) $13.79 $18.31 $22.34 Natural gas (per mcf) $2.26 $3.11 $2.98 Oil and gas revenue net of royalties $292,825 $301,015 $290,015 Operating expenses 73,537 39,340 31,791 Net operating income $219,288 $261,675 $258,224 Capital expenditures: United States $1,000,517 $545,481 $278,429 Republic of Yemen 299,996 536,351 248,498 Total $1,300,513 $1,081,832 $526,927 -------------------------------------------------------------- /T/ On behalf of the Board of Directors of TRANSGLOBE ENERGY CORPORATION "Ross G. Clarkson, President & CEO"

To: Kerm Yerman who wrote (10862)	5/22/1998 7:35:00 PM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

CORP / ARAKIS Proposes to Expand Board of Directors NASDAQ SYMBOL: AKSEF MAY 22, 1998 CALGARY, ALBERTA--Arakis Energy Corporation ("Arakis") (NASDAQ: AKSEF) today announced that the Board of Directors will propose an expansion of the Board from nine to eleven Directors at the Company's Annual and Special Meeting of Shareholders to be held in Calgary, Alberta on June 16, 1998. The Board has proposed, as new Directors, Mr. Ian H. Lundin, President and C.E.O. of Lundin Oil AB, and Mr. Fred C. Coles, Executive Chairman and Chief Financial Officer of Applied Terravision Systems Inc. Mr. Lundin has 17 years of international experience in the oil and gas industry since graduating in 1981 from the University of Tulsa with a B.Sc. in Petroleum Engineering. Prior to joining International Petroleum Corporation (now Lundin Oil AB) as General Manager in 1989, Mr. Lundin held increasingly senior positions with North South Resources in its operations in the Middle East. Lundin Oil AB is the largest shareholder of Arakis and previously proposed the appointment of Charles B. Crowell, who will continue as a Director. Mr. Coles is a highly regarded professional engineer with over 30 years experience in the petroleum industry. He is currently Executive Chairman and Chief Financial Officer of Applied Terravision Systems Inc., a technical solutions provider to the oil and gas industry. Mr. Coles is, perhaps, most widely known for his professional relationship with Coles Gilbert Associates Ltd. (now Gilbert Laustsen Jung Associates Ltd.) from 1973 to 1994. Mr. Coles served as Chairman and President of the firm from 1982 through 1994. Gilbert Laustsen Jung is an independent engineering firm engaged in the evaluation of oil and gas reserves and other related activities in Canada and internationally. The foregoing nominations are subject to shareholder approval of the amendment to the Articles of the Corporation to expand the Board of Directors. The Information Circular and Proxy Material for the Annual and Special Meeting were mailed to shareholders on May 13, 1998.

To: Kerm Yerman who wrote (10862)	5/22/1998 7:42:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / WestCastle Releases First Quarter, 1998 Results TSE SYMBOL: WCL.UN OTC Bulletin Board SYMBOL: WCTS MAY 22, 1998 CALGARY, ALBERTA--WestCastle Energy Trust is a Calgary-based closed-end investment trust which, through WestCastle Acquisition Corp., acquires and holds long life producing oil and natural gas properties. These entities are managed by WestCastle Energy Corp., which provides an experienced management team with expertise in all aspects of property acquisitions, operations, development and finance. Trust units trade on the Toronto Stock Exchange under the symbol WCL.UN 1998 Quarterly Distributions: -March 31 - $0.20 per Unit The key elements which differentiate WestCastle are: - The high quality of the assets, which were specifically acquired from a number of vendors and were chosen for their suitability to a trust vehicle. - 97 percent of total reserves are classified as "proved developed producing" and the reserve life index is 12.1 years. - A good balance between gas reserves (53 percent) and oil and NGL reserves (47 percent). - The control offered by the high level of operatorship - over 90 percent. - An abandonment and reclamation fund of $4,500,000 to offset existing and future costs which would otherwise be paid from cash flow. Chief Executive Officer's Message As the new Chief Executive Officer I am reporting, on behalf of the Board of Directors, the operating and financial results of WestCastle Energy Trust for the period ended March 31, 1998, as well as introducing a number of events and initiatives which have occurred since the end of this period. I am disappointed that the net revenues available for distribution for the first quarter ($0.18 per unit) were two cents less than the actual amount distributed ($0.20 per unit). The difference is primarily attributable to operating costs being higher than budgeted. The two cent deficit will be amortized over the remaining three quarters of this fiscal year. Now that WestCastle has operated its assets for a complete twelve month period, we have a better appreciation of all of the costs involved and the scope of operating our assets. This knowledge should allow us to be more accurate in our estimates of future distributions. We are not satisfied with the current level of operating costs and know that there is room for significant improvement. Our systems for tracking costs will also be revised with a view to enhancing accuracy and timeliness of information. Since assuming the role of C.E.O. following the resignation of Al Dillabough on April 24, 1998, we have taken a number of initiatives to improve the operation of the Trust and its assets. First and foremost, we have commenced a search for a new Chief Operating Officer with strong technical and executive abilities. I am also seeking a replacement for the President, Michael Smith, who resigned on May 21, 1998, but will remain on the Board and be an active member of the management team. We are hopeful we can find one individual capable of taking on both the President and Chief Operating Officer roles. In addition, other engineering and technical professionals will be added to the team to ensure the best possible performance from the Trust's assets. These staff additions will be at little or no incremental cost to the Trust as a result of various resignations and certain other administrative efficiencies to be implemented. Another important initiative now underway is the development of a new plan and budget for the remainder of 1998 and 1999. The process is expected to be completed before the end of the second quarter and will be critical as we change from quarterly to monthly distributions. This budget will be based on the historical performance of the Trust over the past twelve months, including actual operating costs. Although it is too early in the process to project with certainty, the Board expects that in the event current commodity prices remain for the balance of the year, the Trust will distribute approximately $0.73 per unit during 1998. Any improvements in prices, production or operating or administrative efficiencies developed by the new operating staff should increase these numbers. During the first quarter, WTI oil prices averaged US $15.90 per barrel and WestCastle's natural gas price averaged $1.70 per mcf. Unit distributions will increase approximately $0.06 for each $1.00 increase in WTI oil price or for each $0.10 increase in natural gas prices. During the first quarter, the Directors, along with financial advisors, considered a number of different strategic alternatives for the Trust and concluded that the best way to maximize value in the near term is to ensure that the assets are being operated and administered efficiently and performing to their full potential. We are convinced that WestCastle has good quality royalty trust assets, and in order to realize their value and provide for future growth, we must engage the best possible operating personnel and systems to bring results in line with previous expectations. The management and staff at Westcastle are a very capable group and are disappointed with the Trust's performance to date. All oil and gas trusts are operating in a difficult environment with lower than expected commodity prices, a tight labor market, a very competitive acquisition market and limited access to capital. We are making the changes required to meet these challenges and as your new C.E.O. I am focusing on our problems with vigor and see many opportunities for meaningful improvements that should result in increased distributions going forward. R. Bradley Hurtubise Chairman & Chief Executive Officer May 21, 1998 Operations On the operating side, the trust exited the first quarter producing in excess of 6,900 BOEs per day. Demand for infrastructure in the industry has resulted in delays in installing field compression. In Parkland, the operator has informed us that by the end of May they will have completed their installation and we are expecting incremental production of approximately 150 to 200 BOEs per day net to the Trust. In Crossfield WestCastle has, as operator of the Crossfield Turner Valley Unit No. 1, recently installed two field unit compressors, which should begin to add production by June 1, 1998. We are still looking to purchase two more compressor packages for locations we have identified to add production. We still believe that the Crossfield production enhancements could add at least 100 BOEs per day to WestCastle. Management has begun detailed technical evaluation of two other WestCastle properties. In Pembina, we have witnessed successful initiatives from other operators near our properties and we feel that certain of our Pembina properties are excellent candidates for production exploitation. In Medicine Hat, we are testing additional zones and management has been very encouraged from the results of pressure testing we have undertaken. Preliminary data indicates that we should be able to add both incremental production and reserves from uphole zones within our existing well bores. Because all these wells have been drilled and tied-in, these reserves and production will be added with minimal capital spending. We expect to proceed with this exploitation during the second quarter and hope to realize this new gas production by mid to late summer going into the 1998-99 heating season. Also in Medicine Hat, a pilot project aimed at increasing well productivity is currently being undertaken. Management is of the view that cleaning the well bores of formation blockage and other contaminants could enhance single well productivity. We are testing this using three different processes to determine the most effective method and hope to able to announce positive results during the next quarter. Financial The accompanying combined financial statements reflect the results of operations for the period from January 1, 1998, to March 31, 1998, for both WestCastle Energy Trust and WestCastle Acquisition Corp. Since this period is in the first year of operations, no comparative figures are reported. The Trust distributions total $0.20 per unit for the period, which is less than our expectation mainly due to significantly lower liquids prices and small decreases in production levels. WestCastle produced 6,884 BOEs per day to the end of March, with gas contributing 57 percent of the production. The average oil price received during the period was $21.01 per BOE. Liquids averaged $19.21 per BOE Gas prices were also down at $1.70 per mcf. Royalty rates were slightly lower than 1997 at 18 percent. Operating costs were higher in the quarter, averaging out at $7.79 per BOE. General and administrative expenses came in at $393,000 or $0.63 per BOE, while interest costs escalated slightly to $558,000 or $0.90 per BOE, reflecting the general increase in interest rates. Management fees of $137,000 in cash were paid in the period and at the end of March, Quarterly Incentive Program issued 10,141 units to the Manager. Bank debt outstanding as at March 31, 1998 of approximately $38 million remains virtually unchanged from year end 1997. /T/ COMBINED STATEMENT OF INCOME AND CASH AVAILABLE FOR DISTRIBUTION TO UNITHOLDERS For the period from January 1, 1998 to March 31, 1998 (thousands of dollars - unaudited) REVENUE Oil and gas sales, net of royalties of $2,107 $10,224 -------------------------------------------------------------- 10,224 -------------------------------------------------------------- EXPENSES Oil and gas operations 4,827 General and administrative 393 Management fees 148 Interest expense 558 Depletion, depreciation and amortization 4,759 Capital taxes 14 -------------------------------------------------------------- 10,699 -------------------------------------------------------------- NET LOSS 475 Depletion, depreciation and amortization 4,759 1 percent residual interest (42) Capital expenditures (120) 1997 Deficit brought forward (460) -------------------------------------------------------------- CASH AVAILABLE FOR DISTRIBUTION 3,662 -------------------------------------------------------------- -------------------------------------------------------------- Per unit Net loss ($0.02) ------- ------- Cash available for distribution $0.18 ------- ------- Cash declared for distribution $0.20 ------- ------- COMBINED BALANCE SHEET March 31, 1998 (thousands of dollars - unaudited) ASSETS CURRENT Cash held in trust $4,119 Accounts receivable 7,287 Prepaid expenses 2,907 -------------------------------------------------------------- 14,313 Oil and gas properties and equipment 204,653 -------------------------------------------------------------- $218,966 -------------------------------------------------------------- -------------------------------------------------------------- LIABILITIES: CURRENT Distribution payable to Unitholders $4,059 Accounts payable and accrued liabilities 3,796 -------------------------------------------------------------- 7,855 Long-term debt 38,257 Future abandonment and site restoration costs 4,870 -------------------------------------------------------------- 50,982 -------------------------------------------------------------- UNITHOLDERS' EQUITY 167,984 -------------------------------------------------------------- $218,966 -------------------------------------------------------------- -------------------------------------------------------------- COMBINED STATEMENT OF UNITHOLDERS' EQUITY For the period from January 1, 1998 to March 31, 1998 (thousands of dollars - unaudited) BALANCE, BEGINNING OF PERIOD 172,539 Net loss (475) Trust unit issue costs (21) Distributions to Unitholders - $0.20 per unit (4,059) -------------------------------------------------------------- BALANCE, END OF PERIOD 167,984 -------------------------------------------------------------- -------------------------------------------------------------- COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION For the period from January 1, 1998 to March 31, 1998 (thousands of dollars - unaudited) NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES OPERATING Net income/(loss) $(475) Add: Depletion, depreciation and amortization 4,759 -------------------------------------------------------------- 4,284 Changes in non-cash working capital, net 1,264 -------------------------------------------------------------- 5,548 -------------------------------------------------------------- FINANCING Trust Unit issue costs (21) Future removal and site restoration costs (350) Decrease in long-term debt (228) Cash held in trust (1,417) Distribution to Unitholders (4,059) -------------------------------------------------------------- (6,075) -------------------------------------------------------------- INVESTING Purchase of oil and gas properties and equipment 527 -------------------------------------------------------------- 527 -------------------------------------------------------------- NET CASH INFLOW 0 CASH POSITION, BEGINNING AND END OF PERIOD 0 Corporate Information Directors and Officers: R. Bradley Hurtubise (1) Chairman and Chief Executive Officer W. Gordon Brown Director J.E. (Ed) Czaja Director J. Al Dillabough Director Robert F. Taylor (1) Director Michael C. Smith President and Director Keith T. Smith (1) Executive Vice-President and Director Neil D. Graham Chief Financial Officer David L. Bowman Vice-President, Operations B.J. Cavers Vice-President, Land Michael Holtz Vice-President, Marketing Donald M. Boykiw Corporate Secretary (1) Audit Committee Members Trustee and Transfer Agent: The Trust Company of Bank of Montreal Calgary, Alberta Bankers: Bank of Montreal Calgary, Alberta Auditors: Deloitte & Touche Calgary, Alberta Engineering Consultants: Sproule Associates Limited Calgary, Alberta Legal Counsel: Bennett Jones Verchere Calgary, Alberta Stock Exchange Listing: The Toronto Stock Exchange: WCL.UN Toronto, Ontario Executive Offices: Suite 1700, First Canadian Centre 350 - 7th Avenue S.W. Calgary, Alberta T2P 3N9 Ph: 403-232-2242 Fax: 403-265-8049 Website: www.westcastle.com Trading Information: Listing date: March 14, 1997 Exchange and Trading Symbol: TSE: WCL.UN Units outstanding: 20,292,652 Close March 31, 1998: $5.65 per unit /T/ WestCastle Energy Trust is a publicly listed Trust, whose Units trade under the symbol WCL.UN on the Toronto Stock Exchange. There are currently 20,292,652 units issued and outstanding.

To: Kerm Yerman who wrote (10862)	5/22/1998 7:43:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / WestCastle Releases March 31, 1998 Results TSE SYMBOL: WCL.UN OTC Bulletin Board SYMBOL: WCTS MAY 22, 1998 CALGARY, ALBERTA--WestCastle Energy Trust announces the unaudited financial results for the period from January 1 to March 31, 1998 and other corporate initiatives. Results for the period ended March 31, 1998 showed production of 6,884 BOEs per day and revenue (net of royalties) of $10.2 million. WestCastle received average prices of $18.51 per BOE, general and administrative costs were $0.63 per BOE, interest costs were $0.90 per BOE and royalty rates were in line with expectations. After all first quarter cost information was processed, operating costs were $7.79 per BOE, well above expectations. This reduced the cash available for distribution to $3.6 million or $0.18 per unit versus $4.0 million or $0.20 which was actually distributed. The two cent deficit will be amortized over the remaining three quarters of the fiscal year. The Board of Directors also announces that Michael Smith has resigned as President. Mr. Smith will remain as a director and will continue to contribute to the management team in the areas of acquisitions and assessing strategic alternatives. Brad Hurtubise, who was recently appointed as CEO of WestCastle, has identified the reduction of operating costs as the number one priority of the Trust. In order to accomplish this it is necessary to strengthen the technical and operating expertise within management and staff. The Trust is seeking to hire a new Chief Operating Officer with strong operating and executive abilities as well as additional staff in the operations group. Mr. Hurtubise has also initiated the development of a new plan and budget for the remainder of 1998 and 1999. The process is expected to be completed before the end of the second quarter and will be critical as we change from quarterly to monthly distributions. This budget will be based on the historical performance of the Trust over the past twelve months, including actual operating costs. Although it is too early in the process to project with certainty, the Board expects that in the event current commodity prices remain for the balance of the year, the Trust will distribute approximately $0.73 per unit during 1998. Any improvements in prices, production or operating or administrative efficiencies developed by the new operating staff should increase these numbers. During the first quarter, WTI oil prices averaged US $15.90 per barrel and WestCastle's natural gas price averaged $1.70 per mcf. Unit distributions will increase approximately $0.06 for each $1.00 increase in WTI oil price or for each $0.10 increase in natural gas prices. On the operating side, the Trust exited the first quarter producing in excess of 6,900 BOEs per day. Although demand for infrastructure in the industry has resulted in delays, the addition of compression in Parkland and Crossfield is expected to increase production from current levels. In Medicine Hat, a program of perforating additional formations in existing wells will be implemented at the end of the second quarter which should add to production and reserves in the second half of the year. Also in Medicine Hat, a pilot project to clean up formation clay and other contaminants in well bores is currently being undertaken. The program is expected to result in increased productivity from many of WestCastle's wells. WestCastle Energy Trust is a publicly listed Trust, whose Units trade under the symbol WCL.UN on the Toronto Stock Exchange. There are currently 20,292,652 units issued and outstanding.

To: Kerm Yerman who wrote (10862)	5/22/1998 7:48:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS TOP 20 LISTED / Part 1 of 2 -Barrington Petroleum Ltd. First Quarter 1998 Results TSE, ME SYMBOL: BPL MAY 22, 1998 CALGARY, ALBERTA-- To Our Shareholders The current low oil price environment, exacerbated by the turmoil in Asian economies, has resulted in a great amount of uncertainty in our industry. Creating value-added growth in this environment is a challenge. Our goal for 1998 is to meet higher natural gas prices head-on with increased deliverability and reserves. We remain confident that our strategy will be accomplished and we are excited about the outlook for 1999. To achieve our objectives, - we will invest our cash flow in exploration and development, building on our first quarter discoveries, and drilling up to 70 additional wells this year, of which approximately 90 percent target natural gas. We expect to add increased deliverability of up to 50 mmcf/d from this program by the first quarter of 1999. - we have earmarked the proceeds of $50 million from our recent issue of natural gas linked notes for the purchase of natural gas assets within our core areas. - we are pursuing a significant asset swap transaction which, if consummated, would replace some of our oil producing properties in Southeast Saskatchewan with natural gas producing assets in our West Central Alberta region. Low oil prices, wide differentials between light and heavy grades of crude and a 9 percent reduction in gas prices combined to adversely affect our first quarter results. Despite a 9 percent increase in production volumes compared to the previous year, cash flow was reduced 45 percent to $9.2 million from $16.8 million, and we recorded a loss of $2.4 million compared to net earnings of $4.5 million in the first three months of last year. OPERATIONS REVIEW Drilling Favourable access conditions allowed us to complete a portion of our winter drilling late last year. Since January, we have drilled a further 21 (13 net) wells. First quarter drilling focused on exploratory and outpost gas targets and resulted in 10 (6 net) successful gas wells. In addition, 3 (2 net) wells were successfully drilled for light oil. Barrington's average working interest in the wells drilled was 60 percent. Since the program was largely exploratory, we were pleased with the 62 percent success rate achieved. Importantly, the exploration successes have set up additional drilling for next winter's program. Natural Gas Rainbow/Zama: A four well exploratory drilling program on two new gas exploration prospects covering 82 sections of land resulted in three new discoveries in Slave Point and younger reservoirs. The discoveries have significant production and reserves potential for further exploration and development next winter. Our interests average 76 percent in the area. Larne: First quarter production averaged 11 mmcf/d. Drilling, completions and recompletions together with new pipelining and compressor installations have increased production to 16 mmcf/d during the second quarter. Greencourt/Paddle River: The purchase of additional plant interests during the first quarter has increased our gas processing capacity to 32 mmcf/d. First quarter production averaged 15 mmcf/d. Up to 20 new wells will be drilled over the balance of 1998 to fill our increased capacity. Senlac/Hallam: The drilling and recompletion of 19 wells and the purchase of additional plant capacity should raise current gas production of 7.5 mmcf/d by an incremental 15 mmcf/d over the balance of the year. Cold Lake/Thornbury: First quarter drilling and further drilling planned in this year round access area should maintain gas production from our Northern Gas region at 52 mmcf/d. Light Oil Sakwatamau: A recently completed 3D seismic program has identified a major extension to the Swan Hills light oil pool. Four wells drilled last year are averaging 100 bbls/d each and were assigned reserves of 300,000 bbls per well. At least two new wells this year will target higher deliverability reservoir on the reef extension. Zama: One new Keg River oil well and one successful recompletion have added 400 bbls/d of high quality light oil production. Creelman: A 50 percent working interest horizontal well is currently being drilled as a step-out to a Red River oil discovery made late last year. The discovery well is producing 150 bbls/d of 39 degree API oil. Weyburn: Following two successful horizontal wells last year, a third well has recently been drilled. The three wells are producing at 340 bbls/d net to Barrington. Another horizontal well is scheduled for drilling this year. Wapella: One horizontal well and ten vertical development wells are inventoried to increase the production rates from our Wapella light oil pool. This program has been deferred pending the outcome of the contemplated swap transaction. Pangman: We have assembled an average 75 percent interest in 154,000 gross acres of exploratory land and plan to drill an exploratory well this summer to evaluate medium depth light oil targets identified by seismic conducted in 1997. Heavy Oil The precipitous decline in the benchmark WTI oil price and widening differentials in the first quarter resulted in our decision to shut in 1,000 bbls/d of heavy oil production in March and to suspend all capital expenditures. Until late last year, our 1998 plans called for a full-scale development drilling program on our Cold Lake First Nations project, with low operating costs resulting from the installation of facilities and higher throughputs. Prior to suspension of the heavy oil program, the initial test wells had confirmed good deliverability from Grand Rapids and Sparky sands, similar to the adjacent Beaverdam field. A detailed seismic program costing $1.4 million was undertaken to delineate the productive oil sands and to confirm the reserve base. Although heavy oil operating costs averaged $8.41 per bbl during the first quarter, this figure included the costs associated with pilot projects which were suspended in March. Our remaining heavy oil projects are currently producing at 1,550 bbls/d and are being operated at under $5.00 per bbl. We intend to maintain this level of production providing that positive netbacks can be sustained. Production First quarter 1998 production averaged 17,617 barrels of oil equivalent per day (boe/d), 9 percent higher than the first quarter of last year. Natural gas production averaged 102.9 mmcf/d for the first quarter of 1998, up 4 percent compared to 98.7 mmcf/d in the corresponding period of 1997. First quarter oil and NGL production averaged 7,325 bbls/d, up 17 percent over the first three months of 1997. In comparison to fourth quarter 1997 average production of 18,571 boe/d, average production was lower due primarily to dispositions of producing properties which occurred late in the fourth quarter and to our decision to shut in heavy oil production. We expect to recover this production level by mid-year as new production, as outlined above, is brought on stream. /T/ Percent Netbacks 1998 1997 Change --------------------------------------------------------- Natural gas production Millions of cubic feet (mmcf) 9,264 8,882 4 Price ($/mcf) 2.07 2.27 -9 Royalties ($/mcf) (0.38) (0.46) -17 Operating expenses ($/mcf) (0.55) (0.48) 15 ------------------------------------------------------- Netback ($/mcf) 1.14 1.33 -14 -------------------------------------------------------- Light oil and liquids production Thousands of barrels (mbbls) 502 523 -4 Price ($/bbl) 14.89 26.40 -44 Royalties ($/bbl) (2.58) (3.69) -30 Operating expenses ($/bbl) (4.04) (3.65) 11 ------------------------------------------------------- Netback ($/bbl) 8.27 19.06 -57 -------------------------------------------------------- Heavy oil production Thousands of barrels (mbbls) 157 40 293 Price ($/bbl) 5.66 20.27 -89 Royalties ($/bbl) (0.42) (3.73) -89 Operating expenses ($/bbl) (8.41) (7.33) 15 -------------------------------------------------------- Netback ($/bbl) (3.17) 9.21 -134 -------------------------------------------------------- Barrels equivalent production Thousands of barrels equivalent (mboe) 1,586 1,452 9 Price ($/boe) 17.38 23.05 -25 Royalties ($/boe) (3.09) (4.82) -36 Operating expenses ($/boe) (5.31) (4.43) 20 -------------------------------------------------------- Netback ($/boe) 8.98 13.80 -35 General & administrative ($/boe) (1.46) (1.16) 26 Interest ($/boe) (1.47) (0.87) 69 Current income taxes ($/boe) (0.25) (0.19) 32 ------------------------------------------------------- Cash flow from operations ($/boe) 5.80 11.58 -50 Non-cash items ($/boe) (7.34) (8.49) -14 -------------------------------------------------------- Net earnings (loss) ($/boe) (1.54) 3.09 -150 -------------------------------------------------------- /T/ FINANCIAL REVIEW Revenue before royalties for the three months ended March 31, 1998 decreased 18 percent over the corresponding period of 1997. Our corporate average commodity prices realized over the quarter were significantly below corresponding 1997 levels, at $12.69 per bbl vs. $23.86 for oil and natural gas liquids, and $2.07 per mcf vs. $2.27 for natural gas. Barrington has locked in prices on approximately 65 mmcf/d of gas production through October 1998 at an average price of $1.70 per mcf. Thereafter, 60 percent of November 1st, 1998 natural gas production will be priced relative to floating Alberta indices, where we expect the biggest premium will be obtained. Our average royalty rate for the first quarter was 18 percent, slightly below 1997 levels as royalty rates are generally price sensitive. Operating expenses averaged $4.04 per bbl for light oil and NGLs, and $0.55 per mcf for natural gas. We are closely examining all of our facilities and operations to identify efficiencies, particularly where we can attain economies of scale through increased plant throughput. With respect to heavy oil, full scale operation of the projects would result in operating costs of under $5.00 per bbl; however, during their start-up phase the costs amounted to $8.41 per bbl. General and administrative expenses for the first three months of 1998 were $2.3 million, or $1.46 per boe, up from $1.7 million, or $1.16 per boe, in the first quarter of 1997. This increase primarily reflects higher staff levels and lower overhead recoveries compared to last year. Over the remainder of 1998, we expect general and administrative expenses will be reduced on a boe basis as a result of higher production and recoveries. Interest on long term debt increased to $2.4 million in the first quarter of 1998 from $1.3 million for the same period last year, commensurate with higher debt levels, while the average interest rate remained substantially unchanged at 6.3 percent. Total non-cash charges for depletion, depreciation and site restoration in the first quarter of 1998 were $11.8 million, or $7.42 per boe, compared to $8.9 million, or $6.12 per boe, in the first quarter of 1997, and $12.1 million, or $7.05 per boe, in the fourth quarter of 1997. OUTLOOK The major bright spot on the horizon for our industry is natural gas pricing. It is now only five months to the start-up of increased pipeline takeaway capacity, and we remain confident that the resultant price increase for producers selling their gas within Alberta will be sustained for several years. The outlook for oil pricing is, as ever, more difficult to assess, although prices have historically rebounded quickly from cyclical low points such as our industry is currently experiencing. Our strategy outlined for 1998 and our $100 million capital budget remain firm, and we are making good progress towards achieving our goals. We expect to end this year with over 70 percent of our production being natural gas, with our efforts and expertise focused in a lesser number but more rewarding projects offering higher production and longer life reserves. The recently completed financing provides us with the flexibility to execute our strategy over the remainder of this year. Respectfully submitted on behalf of the Board of Directors and the Officers of the Company. David J. Evans Chairman Brian H. Gore President and Chief Executive Officer

To: Kerm Yerman who wrote (10862)	5/22/1998 7:51:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS TOP 20 LISTED / Part 2 of 2 -Barrington Petroleum Ltd. First Quarter 1998 Results TSE, ME SYMBOL: BPL MAY 22, 1998 CALGARY, ALBERTA-- /T/ FINANCIAL STATEMENTS Barrington Petroleum Ltd. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited (x)) March 31, December 31, ($ thousands) 1998 (x) 1997 ----------------------------------------------------- ASSETS Current assets 26,882 39,834 Property, plant and equipment (net) 397,689 384,471 Other assets 1,502 2,018 ----------------------------------------------------- 426,073 426,323 ----------------------------------------------------- LIABILITIES Current liabilities 30,932 53,412 Long term debt 158,814 134,430 Deferred income taxes 18,922 19,122 Future site restoration provision 4,551 3,862 ---------------------------------------------------- 213,219 210,826 ---------------------------------------------------- SHAREHOLDERS' EQUITY Capital stock 184,848 184,976 Contributed surplus 782 852 Retained earnings 27,224 29,669 ---------------------------------------------------- 212,854 215,497 ---------------------------------------------------- 426,073 426,323 ---------------------------------------------------- /T/ The Company performs a ceiling test on an annual basis. The ceiling test is normally based on prices prevailing at the year-end. Significant changes in reserve estimates and commodity prices are considered at the end of each interim reporting period. At March 31, 1998, using twelve month average commodity prices of $15.56/bbl for oil and $1.84/mcf for gas, estimated future net cash flows from production of proved reserves exceeds the carrying value of petroleum and natural gas assets. /T/ CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS (unaudited) For the three months ended March 31 ($ thousands, except per share amounts) 1998 1997 ----------------------------------------------------- Revenue Oil and gas sales 27,548 33,461 Crown royalties (3,468) (4,527) Other royalties (1,428) (2,478) ----------------------------------------------------- 22,652 26,456 ----------------------------------------------------- Expenses Operating 8,421 6,431 General and administrative 2,315 1,678 Interest on long term debt 2,408 1,269 Depletion and depreciation 11,163 8,653 Site restoration 600 232 ---------------------------------------------------- 24,907 18,263 ---------------------------------------------------- Earnings (loss) before taxes (2,255) 8,193 ---------------------------------------------------- Income tax expense (recovery) Deferred (200) 3,441 Current 390 270 190 3,711 ---------------------------------------------------- Net earnings (loss) (2,445) 4,482 Retained earnings - beginning of period 29,669 24,721 ---------------------------------------------------- Retained earnings - end of period 27,224 29,203 ---------------------------------------------------- Net earnings (loss) per common share Basic $(0.04) $0.08 Fully diluted $(0.04) $0.08 ---------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited) For the three months ended March 31 ($ thousands, except per share amounts) 1998 1997 --------------------------------------------------- Operating activities Net earnings (loss) (2,445) 4,482 Add: Depletion and depreciation 11,163 8,653 Site restoration 600 232 Deferred income taxes (200) 3,441 Other 78 - ---------------------------------------------------- Cash flow from operations 9,196 16,808 Change in non-cash working capital (9,533) 5,391 ---------------------------------------------------- (337) 22,199 ---------------------------------------------------- Financing activities Increase (decrease) in long term debt 24,822 (1,336) Issuance (repurchase) of common shares, net of issue expenses (198) 1,356 ---------------------------------------------------- 24,624 20 ---------------------------------------------------- Investing activities Additions to property, plant and equipment, net of dispositions (24,292) (22,219) ---------------------------------------------------- (24,292) (22,219) ---------------------------------------------------- Net increase (decrease) in cash for the period (5) - Cash - beginning of period 309 - ---------------------------------------------------- Cash - end of period 304 - ---------------------------------------------------- Cash flow from operations per share Basic $0.16 $0.32 Fully diluted $0.14 $0.28 ----------------------------------------------------- Weighted average shares outstanding Basic 59,107 53,031 Fully diluted 68,028 61,363 ----------------------------------------------------- HIGHLIGHTS Three months ended March 31 Percent 1998 1997 Change Financial ($ in thousands, except per share amounts) Revenue before royalties 27,548 33,461 -18 Cash flow from operations 9,196 16,808 -45 Per share basic ($) 0.16 0.32 -50 Per share fully diluted ($) 0.14 0.28 -50 Net earnings (loss) (2,445) 4,482 -155 Per share basic ($) (0.04) 0.08 -150 Per share fully diluted ($) (0.04) 0.08 -150 Capital expenditures, net 24,292 22,219 9 Working capital deficiency 4,050 6,132 -34 Long term debt 158,814 79,346 100 Weighted average number of common shares outstanding (thousands) Basic 59,107 53,031 11 Fully diluted 68,028 61,363 11 Period end number of shares outstanding (thousands) Basic 59,129 53,072 11 Fully diluted 68,061 61,404 11 Operating Natural gas production Millions of cubic feet per day (mmcf/d) 102.9 98.7 4 Price ($/mcf) 2.07 2.27 -9 Light oil and liquids production Barrels per day (bbls/d) 5,575 5,816 -4 Price ($/bbl) 14.89 26.40 -44 Heavy oil production Barrels per day (bbls/d) 1,750 444 294 Price ($/bbl) 5.66 20.27 -72 Barrels equivalent production Barrels equivalent per day (boe/d - 10:1) 17,617 16,128 9 Price ($/boe) 17.38 23.05 -25 Net wells drilled 13 33 -61 Net drilling success rate (in percent) 61 67 /T/

To: Kerm Yerman who wrote (10862)	5/22/1998 8:00:00 PM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

EARNINGS / Centurion Energy - 1997 Results of Operations TSE SYMBOL: CUX MAY 22, 1998 Centurion Energy - 1997 Results of Operations CALGARY, ALBERTA--Centurion Energy International Inc. announces the results of its operations for the year ended December 31, 1997 as follows: /T/ 1997 1998 ---- ---- OIL AND GAS SALES, net of Royalties $13,200,000 $14,700,000 AVERAGE PRODUCTION (BOEPD) 1,818 2,516 NET EARNINGS (LOSS) $(4,200,000)$ 1,200,000 NET EARNINGS (LOSS) PER SHARE $ (0.10)$ 0.04 CASH FLOW $ 4,600,000 $ 6,800,000 CASH FLOW PER SHARE $ 0.10 $ 0.23 /T/ 1997 was a year of transition for Centurion. A merger of Canadian Leader Energy Inc. and Eagle Energy Corp. to form Centurion was completed on May 20, 1997; a new management team was appointed; Canadian production was sold effective July 1, 1997; Argentinean acquisition was not successful, and major effort to bring on new Tunisian production was implemented. As previously announced, the El Biban Field commenced production in March 1998, quadrupling Centurion's daily net production to 4,100 bopd. Earnings from operations before foreign prospect review expense and the provision for non-recovery of Argentinean deposit were $879,000 or $0.02 per share. The loss for 1997 includes a provision for the non-recovery of the $4.2 million deposit made for the Argentinean purchase that did not close. The vendors did not return the deposit and the company is aggressively pursuing recovery of the deposit through the courts.

To: Kerm Yerman who wrote (10862)	5/22/1998 8:14:00 PM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

CORP / Transglobe Energy Corporation Announces Florida Shareholder Files Lawsuit Seeking Damages For Actions During Tenure Of Previous Company President TSE, ASE SYMBOL: TGL ASE SYMBOL: TGL.S NASDAQ SYMBOL: TGLEF MAY 22, 1998 CALGARY, ALBERTA--TransGlobe Energy Corporation (ASE and TSE symbol "TGL", NASDAQ symbol "TGLEF"), an oil and gas exploration and production company developing petroleum projects in Yemen and North America, said a Florida shareholder and a related company have filed a civil suit against TransGlobe and its previous President, Richard L. Coglon, in the United States District Court (Middle District of Florida). TransGlobe has been served with a summons but not yet with the complaint, a copy of which has been obtained through other sources. "We understand the lawsuit may relate to a private placement and press releases issued during the tenure of TransGlobe's previous president, but the plaintiffs failed to provide any details of the alleged 'misstatements of fact' or alleged 'omissions to state material facts' of which they complain," said Ross G. Clarkson, president. "Therefore we are unable to comment on the merits of the lawsuit." In the complaint, the plaintiffs say that they dealt exclusively with Richard L. Coglon as TransGlobe's representative and purchased 270,000 units of TransGlobe. "The individual shareholder filing the lawsuit, E. Carl Anderson of Lutz, Florida, is not unknown to TransGlobe," Clarkson noted. "Mr. Anderson is a registered shareholder who purchased a 100,000 unit private placement made by TransGlobe during early 1996. In the private placement subscription agreement signed at that time, he said his address was Mr. Coglon's law office in a downtown Vancouver, British Columbia office building that has no residential occupancy, and said he was a director of TransGlobe. TransGlobe's corporate records do not indicate Mr. Anderson was ever a director of TransGlobe, nor do they indicate any private placements to either plaintiff beyond the 100,000 units." "We have also been advised that a Florida resident named E. Carl Anderson is well acquainted with shareholder lawsuits, having filed at least two previous claims of alleged misdeeds regarding the public markets in the United States," Clarkson noted. "Regardless, we must deal with Mr. Anderson's complaint when it is formally served on TransGlobe. We have retained Florida counsel (who have defended previous securities lawsuits brought by a Mr. E. Carl Anderson) and will vigorously defend TransGlobe and seek a speedy dismissal of the lawsuit."

To: Kerm Yerman who wrote (10862)	5/27/1998 10:48:00 AM
From: Kerm Yerman	Respond to of 15196

MARKET ACTIVITY / TRADING NOTES FOR DAY ENDING TUESDAY, MAY 26 1998 (2) Canada Rig Count Up 40 to 165 & U.S Rig Count Up 31 To 876 In Latest Week he number of rigs exploring for oil and natural gas in the United States stood at 876 as of Friday, up 31 from the previous week and down from 917 a year ago, oil services firm Baker Hughes Inc. said. The number of rigs drilling on land rose 30 to 716, while rigs working offshore rose two to 133. The number of rigs active in inland waters fell one to 27. Among individual states, the biggest changes occurred in Texas, up 10, and in Louisiana and Oklahoma, both up eight. The Gulf of Mexico rig count rose two to 132. The number of rigs searching for gas rose 21 to 592, the number of rigs searching for oil rose 10 to 281, and the number of miscellaneous drilling projects remained at three. There were 232 rigs drilling directionally, 52 drilling horizontally and 592 drilling vertically. In Canada, the number of working rigs rose by 40 from the previous week, to 165 versus 249 a year ago. The weekly rig count reflects the number of rigs exploring for oil and gas, not those producing oil and gas. In a separate report, Offshore Data Services said there were 166 rigs under contract in the Gulf of Mexico as of May 15, up one from the previous week. The utilization rate for rigs working in the Gulf, based on a total fleet of 173, was 96 percent. The number of working rigs in the European/Mediterranean area rose one to 110 rigs under contract out of a total fleet of 114, a utilization rate of 96.5 percent. The worldwide rig count rose one to 583 out of a total fleet of 609, with a utilization rate of 95.7 percent. Local Energy Sector Noticed St. John's Evening Telegram There is a much greater recognition of the significance and the vibrancy of Newfoundland's energy sector due to a trade mission to Calgary earlier this year, according to a senior official of the National Energy Board (NEB). "There now is recognition that there are two energy supply bases in Canada and that there are two business communities wanting to work more closely together," said Gaetan Caron, executive director and temporary board member of the NEB. The board, with 275 staff, is located in Calgary. There is increased recognition as well of the fact that "the East Coast basin is significant and a key contributor to the potential economic prosperity of this country," Caron told some 70 members and guests at a luncheon meeting of the Newfoundland Ocean Industries Association (NOIA) on Tuesday. A delegation of 75 local business people representing 60 companies which are NOIA members participated in a two-day trade mission to Calgary in April. In addition to acquiring up-to-date information about East Coast petroleum projects from senior representatives of the Calgary-based oil companies, the delegation members showcased their capabilities and expertise. In his address, Caron outlined the mandate and objectives of the NEB, stating the federal regulator is making a contribution to the evolution of the energy sector in this province. "We work in partnership with the Canada-Newfoundland Offshore Petroleum Board (CNOPB) and the Department of Mines and Energy through the provision of technical advice upon their request," he said. Caron also noted the board is involved in information sharing and the CNOPB's reserves estimates are used in the NEB's supply/demand report. About 80-85 per cent of the NEB's activity deals with pipelines and, while there is no involvement in that regard in Newfoundland to date, activity will increase due to the potential associated with the Jeanne d'Arc Basin and the gas reserves associated with the Hibernia and Terra Nova projects, he said. The board's mandate involves it in the construction and operation of interprovincial/international pipelines and international power lines. With reference to the proposed development of the Lower Churchill, Caron pointed out the NEB gets involved only in electricity exports. "Our role is limited to regulation of short international export lines near the Canada-U.S. border," he said. "Virtually all transmission lines are regulated by the provinces." Caron said the NEB's goals include enhancing the framework for environmental assessment; enhancing public confidence in the safety of NEB-regulated facilities; improved provision of energy information; and enhanced ability of the public to participate and to access information. Bound For Space St. Johns Evening Telegram Oil companies looking to recover more oil from reservoirs four kilometres beneath the Grand Banks are looking up, way up. They have beaten a path to a Memorial University-affiliated research company, climbed Signal Hill to an emerging software firm with offices above the Outer Battery, and will blast off into outer space next Tuesday aboard the space shuttle Discovery. All in the name of enhanced oil recovery. And when the Microgravity Industry Related Research for Oil Recovery (MIRROR) project joins the other experiments on the 24th launch of Discovery June 2, it will be the first made-in-Newfoundland object to exit the upper ionosphere. But what on earth is it? In simplest terms, Mirror is a 90-kilogram barrel - made by the Centre for Cold Ocean Research Engineering (C-CORE) with software help from Zedd-Comm Inc. - packed with a powerful battery, a couple of cameras, a computer and a whole bunch of containers filled with varying concentrations of oil, gas, sand, water and foam. The idea is to find out what happens to oil in zero-gravity. While Discovery makes its merry way to the space station Mir, three separate experiments will be preformed in three separate devices inside the MIRROR barrel. The key to the experiments is figuring out the effects of factors other than gravity on an oil reservoir, said D'Arcy Hart of C-CORE, who left St. John's Tuesday for the Kennedy Space Centre in Florida. The first experiment will measure the diffusion (or mixing together) of oil and other materials, Hart said. Diffusion is not fully understood here on earth because gravity tends to make it impossible to measure the way these things interact with each other. "Gravity sort of masks over everything else," Hart said. "If they can figure out what these other factors are, they can put them in the equation at the other end. Over time the other factors can make their effects known." Oil companies use the equations to make models of oil reservoirs - creating three-dimensional images that become crucial when trying to send a drill to a precise location in the oil structure. The second experiment, designed and built by Noah Hansen of C-CORE, involves the effects of special foams on oil and gas deposits. The foams - which can be injected into oil wells just like water and gas to enhance recovery - may be of immense value to oil companies. The foams will be injected into various materials and photographed dozens of times as they interact, Hart said. The third experiment is similar to the first and measures the flow of oil or water through sand, minus, of course, the effects of gravity. The mission has been funded by Petro-Canada, Chevron, Murphy Oil, Husky Oil and Mobil (all partners in Hibernia), and the European oil industry through Elf-Aquitaine. The government of Newfoundland and Canadian and European Space agencies are also backing the approximately $500,000 experiment. C-CORE designed and built much of the MIRROR device and its mechanisms, with support from the Microgravity Research Center of Brussels, Belgium, and equipment from Measurand Inc. of Fredericton, N.B. Zedd-Comm, an emerging software firm of 34 employees based in St. John's, was brought in to provide the battery power and computer controls to drive all three experiments. "We designed the power subsystems and all the computer controls," Zedd-Comm vice-president Tony Whalen said from the company's new office next to the Battery Hotel on Signal Hill Road. The challenge was overcoming massive vibrations associated with blast off and getting all three experiments to operate at the same time, Whalen said, without having anybody monitor the device or push buttons while it carries out its duties. "NASA will put it on the shuttle and the astronauts will flick a switch," Whalen said. The rest must be done automatically. NASA is, however, giving C-CORE a seat-sale price for its precious cargo. Instead of charging the $1,000 per kilogram that it costs the U.S. space agency to take objects into space, it is charging just $27,000 for this 90-kilogram device, Hart said. The Canadian Space Agency is picking up that tab. But the payoff could be huge for oil companies - and for a couple of Newfoundland firms that have quickly become experts in the field of zero-gravity, outer space research. The nine-day, 19-hour and 53-minute space shuttle mission is the 91st flight in the program's history. The flight is also the ninth shuttle-Mir docking mission and will bring home NASA astronaut Andrew Thomas. Offshore Board Appointee Long-Time Industry Official The Evening Telegram The former head of a large independent oil and gas exploration company in Western Canada has been named a federal representative on the Canada-Newfoundland Offshore Petroleum Board (CNOPB). Frank Proto, former president, chief executive officer and director of Wascana Energy Inc., was appointed by Ralph Goodale, minister of natural resources. The CNOPB is the agency that regulates oil and gas activities and manages resources off Newfoundland and Labrador on behalf of the federal and provincial governments. The board is made up of a chairman and chief executive officer, jointly appointed by the two governments, and six other members with three being appointed by each of the governments, all for a term of six years. C-Core signs iceberg deal with Tatham Offshore Canada Tatham Offshore Canada Ltd. is taking a few small steps towards its ambitious goal of tapping the massive natural gas resources of the Jeanne d'Arc Basin with a subsea pipeline. The Canadian subsidiary of the Houston, Tex., marine services company has entered into two agreements with Memorial University's Centre for Cold Ocean Resources Engineering (C-CORE) to study icebergs - a mammoth hazard for the 2,365 kilometres of pipeline proposed by Tatham. The first agreement with C-CORE covers various methods of reducing iceberg size. The second involves the development of a software package to predict and measure the size of the underwater portion of icebergs - which, as all schoolchildren know, represents seven-eighths of an iceberg's mass. The software package is to be developed for commercial purposes and also by Tatham for its pipeline proposal, which is still years away from receiving approval from any of the governments involved. "It is important to ensure, to the extent possible, the integrity of our proposed natural gas pipeline," Tatham chairman Thomas Tatham said in a release, "as well as ancillary facilities such as gathering lines and production equipment that will be located on the ocean floor." Tatham was not available for comment Monday. The company, however, may be backing away from its original plan to construct a pipeline from the Grand Banks to Argentia, to the Sable gas fields, to Nova Scotia and on to the U.S. Eastern Seaboard. Sable's major partner, Mobil Canada, has already committed to a plan to run a pipeline overland to New England. In recent statements, Tatham has concentrated on a proposed pipeline from the Grand Banks to Argentia, where natural gas could be used to power a Voisey's Bay smelter. To make a pipeline iceberg-proof, developers can dredge a small canal or build a small concrete embankment on either side of the pipeline that allows the iceberg to pass over harmlessly. Alliance Pipeline Opts For Internal Operatorship Partners in the proposed Alliance natural gas pipeline have opted to set up their own division for operating the huge natural gas line instead of choosing one company from the group to do it, Alliance Chief Executive Dennis Cornelson said on Tuesday. The consortium behind Alliance, whose National Energy Board hearing wrapped up last week after six months of often heated proceedings, has hired longtime pipeliner Allan Edgeworth to be chief operating officer, Cornelson said. Edgeworth was most recently president of Westcoast Energy Inc.'s pipeline division. Alliance partner IPL Energy Inc. had often expressed a desire to be operator of the C$3.7 billion pipeline that, if approved, would ship 1.3 billion cubic feet of gas a day to Chicago from northeastern British Columbia. "Al's responsibility will be for the construction and future operation of all the facilities related to the pipeline and (natural gas liquids) plant," Cornelson told reporters after a speech to oil and gas investors. He said the decision to create a new operating entity for the project instead of giving the responsibility toone partner did not cause any rifts within the seven-company group, which aims to have the huge pipeline in operation by the fourth quarter of 2000. "I think all of our owners are very much aligned in our interests. There's no one that is thinking of exiting the project and, in fact, some of them want to increase their interests some," Cornelson said. Alliance partners include IPL with 21.4 percent, Fort Chicago Energy Partners LP with 26 percent, Coastal Corp. with 14.4 percent, Westcoast with 14.5 percent, Duke Energy Corp. with 9.8 percent, Unocal Corp. with 9.1 percent and Williams Cos. Inc. with 4.8 percent. With the hearing over, the fate of the pipeline that would compete head-to-head with TransCanada PipeLines Ltd. and NOVA Corp. is in the hands of Canadian regulators, which could issue a decision on whether it can proceed sometime before the end of this year, Cornelson said. He said chances of approval increased greatly after Canadian gas producers, TransCanada and NOV reached a landmark accord in April aimed at bolstering competition in the pipeline industry and cooling a years-long feud. "It was really incredibly important because what it did was shift the posture of our opponents from one of opposition to one of neutrality," he said. "It certainly eased the pressure on us to continue to react to the onslaught of opposition." As the hearing dragged on last winter amid a flurry of testimony, Alliance was forced to push back the proposed startup date for the project and faced higher-than-expected legal costs.