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

To: SofaSpud who wrote (10906)	5/26/1998 9:41:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Part 1 of 2 - Newport - 1998 First Quarter Interim Report & Press Release TSE SYMBOL: NPP MAY 26, 1998 CALGARY, ALBERTA-- /T/ HIGHLIGHTS Three Months Ended March 31, Percent 1998 1997 Change -------------------------------------------------------------- FINANCIAL ($ thousands except per share) Revenue from oil and gas sales 34,555 37,438 - 8 Cash flow from operations 15,443 20,470 - 25 Per share - basic and fully diluted 0.19 0.27 - 30 Net earnings 63 4,599 - 99 Per share - basic and fully diluted - 0.06 - Average shares outstanding (000's) 80,096 76,663 + 4 Capital expenditures 32,763 30,409 + 8 -------------------------------------------------------------- OPERATING (Units as noted) Production Natural gas (mmcf/d) 145.0 124.9 + 16 Crude oil (bbl/d) 3,983 4,138 - 4 Natural gas liquids (bbl/d) 1,963 1,883 + 4 Barrel of oil equivalent (boe/d) 20,451 18,505 + 11 Average Sales Price Natural gas ($/mcf) 1.93 2.15 - 10 Crude oil ($/bbl) 17.76 24.85 - 29 Natural gas liquids ($/bbl) 16.70 25.24 - 34 Barrel of oil equivalent ($/boe) 18.77 22.48 - 17 -------------------------------------------------------------- /T/ Newport's production volumes continued to grow during the first three months of 1998. On a barrel of oil equivalent (boe) basis, the Company's average production for the first quarter of 1998 increased by 11 percent to 20,451 boe per day, compared to 18,505 boe per day during the first three months of 1997. Commodity prices decreased sharply from levels last year. On a barrel of oil equivalent basis, commodity prices decreased by 17 percent resulting in cash flow of $15.4 million in 1998 compared to $20.5 million for the same period in 1997. On May 15, 1998, Newport closed an issue of 6,000,000 common shares at a price of $6.90 per share and 1,496,000 flow-through common shares at a price of $7.65 per share. A second tranche of 504,000 flow-through common shares will close on or before June 18, 1998. In total, gross proceeds from the issue will be $56.7 million. This new capital will allow the Company to continue its aggressive capital program for 1998 and provide additional financial flexibility to take advantage of opportunities that may be available over the next six months. OPERATIONAL REVIEW During the first three months of 1998, Newport participated in the drilling of 23 wells with an average working interest of 70 percent. Of these 23 wells, 13 (8.6 net) wells were cased as potential gas wells and 2 (1.5 net) wells were cased as potential oil wells for an overall success rate of 65 percent. To date, 13 wells were classified as exploratory tests and 10 were development wells. In addition to the Company's own drilling program, 6 wells were drilled pursuant to farm out arrangements with industry partners, resulting in 5 potential gas wells and 1 potential oil well. Newport's capital expenditures were $32.8 million in the first three months of 1998 which included $15.9 million for drilling and completions, $4.0 million for equipment and facilities, $12.5 million for land and geological and geophysical costs and $0.4 million for property acquisitions net of dispositions. Natural gas production volumes averaged 145.0 million cubic feet per day for the first three months of 1998, a 16 percent increase over the 1997 volumes while oil and natural gas liquids production was 5,946 barrels per day in 1998, almost unchanged from the 1997 levels. Caroline At Caroline, Newport acquired a total of 12,400 net acres of land at Crown land sales on March 4 and April 15 and, as a result, has a 50 percent working interest in approximately 40,000 acres of land on this play. The Newport-operated discovery well, 8-6-34-5 W5M, was drilled to a total depth of 4,000 meters in late 1997 and was completed in March and recently flow tested for two days at restricted rates. Newport participated in shooting a significant 3D seismic program in the area to identify locations for delineation drilling. Based on the discovery well and two additional wells acquired in late 1997, the Company's independent engineers have assigned gross proven and probable reserves of more than 500 bcf of gas-in-place and over 40 million barrels of natural gas liquids reserves to a portion of the play. Two 50 percent working interest wells are currently drilling at 7-19-33-5 W5M and 10-2-35-6 W5M. Preliminary development plans indicate a total of 15 to 20 wells could be drilled to develop the full potential of our discovery. Several alternatives to process gas at existing sour gas plants in the area are currently being investigated. Newport and Canadian 88 Energy Corp. are partners in the Caroline play. On April 27, 1998, Canadian 88 filed a statement of claim against Newport and is seeking to replace Newport as operator. The damages claimed by Canadian 88 in this action are approximately $40 million. Newport denies the allegations of Canadian 88 and will continue as operator. The Company intends to vigorously defend this action and will be filing a statement of defense and counterclaim in June 1998. Cutbank In the Cutbank (Musreau) area, the Company acquired interests in more than 16,600 acres of land with a 70 percent working interest in January. As a result, Newport now has interests ranging from 8 percent to 100 percent in over 128,000 acres of land with an average working interest of approximately 35 percent. The Company has participated in the drilling of three deep wells to date; 5-25-62-6 W6M, 2-29-62-6 W6M and, most recently, 5-4-63-6 W6M which was drilled to a total depth of 4,650 meters. All three wells have been cased as potential gas wells. One well is on production at a restricted rate of 20 million cubic feet per day due to plant capacity limitations. Preliminary estimates indicate that the discovery may contain in excess of 50 bcf of gas-in-place per well. An 80 square mile 3D seismic program is currently in progress to delineate the discovery. Once the seismic has been interpreted, a detailed development plan will be prepared for this project. It is anticipated that new gas plant facilities will be constructed to process gas from this area but, as the gas is sweet, additional wells are expected to be on stream by late 1998 or early 1999. The ultimate size of this discovery has yet to be determined, but the drilling results and existing 2D seismic information indicate it may extend over a very large area. Maclean Creek At Maclean Creek, the Newport-operated 5-18-75-22 W6M was cased as a potential light oil discovery. Newport has a 50 percent working interest before payout reverting to a 25 percent working interest after payout in the discovery well which will be completed and tested after spring breakup. The Company acquired interests in over 5,000 net acres of land at the April 15th Crown land sale and is planning a 3D seismic program to delineate the discovery and identify additional potential in the area. Additional drilling will take place as soon as surface conditions allow access. FINANCIAL REVIEW Petroleum and natural gas sales were $34.6 million for the three months ended March 31, 1998. Sales for the corresponding 1997 period were $37.4 million which was 8 percent higher than in 1998. This was the result of production being increased by 11 percent on a barrel of oil equivalent basis and average sales prices being decreased by 17 percent on a barrel of oil equivalent basis. Oil and natural gas liquids production was 5,946 barrels per day for the three months ended March 31, 1998 as compared to 6,021 barrels per day for the three months ended March 31, 1997. Natural gas production averaged 145.0 million cubic feet per day for the first three months of 1998 versus 124.9 million cubic feet per day of production in the corresponding 1997 period. During the first quarter of 1998, the Company received $1.93 per mcf for its natural gas sales, a 10 percent decrease as compared to $2.15 in 1997. Oil prices averaged $17.76 per barrel in 1998, a 29 percent decrease from the $24.85 per barrel received in the first quarter of 1997. Natural gas liquids prices were $16.70 per barrel for the three months ended March 31, 1998 a 34 percent decrease from the $25.24 per barrel that the Company realized in 1997. Production expenses averaged $4.33 per barrel of oil equivalent for the first three months of 1998 as compared to $4.32 for the fourth quarter of 1997. Netbacks per barrel of oil equivalent were $10.73 for the quarter ended March 31, 1998 as compared to $14.23 for the first quarter of 1997 and $11.76 for the year ended December 31, 1997. Cash flow from operations was $15.4 million ($0.19 per share) as compared to $20.5 million (0.26 per share) in the 1997 corresponding period. On a barrel of oil equivalent basis, cash flow was $8.38 per boe in 1998 versus $12.29 per boe in 1997. This 32 percent decrease is mainly the result of the 17 percent decrease in barrel of oil equivalent prices. Net earnings for the quarter were $0.06 million as compared to $4.6 million in the corresponding 1997 quarter. This decrease was due to a decline in product prices which more than offset the increase in production volumes. During the quarter, the Company repurchased 33,800 shares and issued 166,668 shares on the exercise of stock options. The average number of shares outstanding during the quarter was 80.1 million as compared to 76.7 million in the quarter ended March 31, 1997. The Company spent $33.9 million on capital expenditures during the quarter and sold properties for proceeds of $1.1 million. This compares to expenditures of $35.1 million and proceeds of $4.7 million in the first quarter of 1997.

To: SofaSpud who wrote (10906)	5/26/1998 9:42:00 PM
From: Herb Duncan	Respond to of 15196

EARNING / Part 2 of 2 - Newport - 1998 First Quarter Interim Report & Press Release TSE SYMBOL: NPP MAY 26, 1998 CALGARY, ALBERTA-- OUTLOOK Newport has experienced significant exploration success at Caroline and Cutbank. Each of these properties has the potential to add significant reserves in 1998 and dramatic increases in production volumes in 1999. Follow up drilling is expected to add significant proven reserve volumes and asset value. These properties will become the key building blocks in taking Newport to the next stage of its growth. Oil prices are expected to remain weak in the second quarter of this year, but may improve in the second half if OPEC members adhere to the announced production cutbacks and Asian demand recovers. Gas prices continue to be supported by concerns that deliverability may not grow quickly enough to fill 1.1 bcf/d of new export capacity which will be completed for November 1, 1998. While drilling activity in Western Canada declined during the first four months of 1998 from 1997 levels, there was a marked increase in the number of natural gas discoveries during this period indicating that producers are redirecting exploration efforts away from oil. Given the strength in forward natural gas prices, the market continues to discount the industry's ability to significantly increase deliverability in the near term. With the recent financing, Newport is a strongly capitalized, well positioned intermediate oil and gas exploration company with excellent prospects for continued growth. Newport remains committed to full cycle exploration in the deeper part of the Western Canadian basin where large oil and gas pools remain to be discovered. /T/ Consolidated Balance Sheets March 31 December 31 (thousands of dollars) 1998 1997 1997 -------------------------------------------------------------- (Unaudited) Assets Current assets Cash and term deposits $ - $ 6,008 $ - Accounts receivable 34,201 26,125 37,737 -------------------------------------------------------------- 34,201 32,133 37,737 Property, plant and equipment 411,342 319,212 393,039 -------------------------------------------------------------- $445,543 $ 351,345 $ 430,776 -------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 48,716 $ 36,928 $ 39,101 Long-term debt 113,708 56,265 109,848 Provision for future site restoration costs 6,514 5,222 6,265 Deferred income taxes 29,717 24,060 29,046 Shareholders' equity Share capital 198,923 197,726 198,614 Retained earnings 47,965 44,719 47,902 -------------------------------------------------------------- 246,888 242,445 246,516 Due from shareholders - (13,575) - -------------------------------------------------------------- 246,888 228,870 246,516 -------------------------------------------------------------- $445,543 $ 351,345 $ 430,776 -------------------------------------------------------------- Consolidated Statements of Earnings and Retained Earnings Three Months Ended Year Ended March 31 December 31 (thousands of dollars) 1998 1997 1997 -------------------------------------------------------------- (Unaudited) Operating Revenue Petroleum and natural gas revenues $ 34,555 $ 37,438 $ 139,472 Royalties (6,824) (8,404) (30,089) Production expenses (7,965) (5,328) (28,213) -------------------------------------------------------------- 19,766 23,706 81,170 -------------------------------------------------------------- Expenses General and administrative 2,006 2,283 6,756 Interest on long term debt 2,020 691 3,787 Depletion and depreciation 14,709 11,330 52,052 -------------------------------------------------------------- 18,735 14,304 62,595 -------------------------------------------------------------- Earnings before income taxes 1,031 9,402 18,575 Income taxes Capital 297 262 1,265 Deferred 671 4,541 9,528 -------------------------------------------------------------- 968 4,803 10,793 -------------------------------------------------------------- Net earnings for the period 63 4,599 7,782 Retained earnings, beginning of period 47,902 40,120 40,120 -------------------------------------------------------------- Retained earnings, end of period $ 47,965 $ 44,719 $ 47,902 -------------------------------------------------------------- Net earnings per share Basic and fully diluted$ 0.00 $ 0.06 $ 0.10 -------------------------------------------------------------- Consolidated Statements of Changes in Financial Position Three Months Ended Year Ended March 31 December 31 (thousands of dollars) 1998 1997 1997 -------------------------------------------------------------- (Unaudited) Cash provided by (used in): Operations: Net earnings $ 63 $ 4,599 $ 7,782 Items not affecting cash: Depletion and depreciation 14,709 11,330 52,052 Deferred income tax 671 4,541 9,528 -------------------------------------------------------------- 15,443 20,470 69,362 Changes in non-cash working capital (2,651) 1,255 (312) -------------------------------------------------------------- 12,792 21,725 69,050 -------------------------------------------------------------- Financing: Common shares, net of issue costs 309 11,450 13,572 Increase in due from shareholders - (13,575) - Increase in long term debt3,860 10,094 63,677 -------------------------------------------------------------- 4,169 7,969 77,249 -------------------------------------------------------------- Investments: Additions to property, plant and equipment (33,863) (35,144) (160,447) Proceeds on sale of property, plant and equipment 1,100 4,735 15,299 Changes in non-cash working capital 15,802 945 (6,929) -------------------------------------------------------------- (16,961) (29,464) (152,077) -------------------------------------------------------------- Increase (decrease) in cash position during the period 0 230 (5,778) Cash position, beginning of period 0 5,778 5,778 -------------------------------------------------------------- Cash position, end of period $ 0 $ 6,008 $ 0 -------------------------------------------------------------- Cash flow per share Basic $ 0.19 $ 0.27 $ 0.87 Fully diluted $ 0.19 $ 0.26 $ 0.84 -------------------------------------------------------------- DIRECTORS Kenneth M. Harrington (2) Businessman Calgary, Alberta Carl-Martin Nagel (1)(2) Businessman Frankfurt, Germany Randy W. Pawliw (1) President, Sage Petroleum Corporation Calgary, Alberta Uldis Upitis (1) Chairman & Chief Executive Officer Newport Petroleum Corporation Calgary, Alberta Sid W. Dykstra President & Chief Operating Officer Newport Petroleum Corporation Calgary, Alberta (1) Audit Committee Member (2) Compensation Committee Member OFFICERS Uldis Upitis Chairman & Chief Executive Officer Sid W. Dykstra President & Chief Operating Officer Maurice L. Randall Vice President, Marketing & Corporate Development George Ongyerth Vice President, Exploration Nola C. Hall Vice President, Administration & Corporate Secretary R. Kenneth Pretty Vice President, Land Byron C. Lutes Vice President, Engineering Michael Tkaczuk Treasurer & Controller LEGAL COUNSEL Blake Cassels & Graydon Calgary, Alberta BANKERS The Toronto Dominion Bank Canadian Imperial Bank of Commerce Calgary, Alberta AUDITORS KPMG Chartered Accountants REGISTRAR AND TRANSFER AGENT The Montreal Trust Company of Canada 6th Floor, 530- 8th Avenue S.W. Calgary, Alberta T2P 3S8 EXCHANGE LISTING The Toronto Stock Exchange Trading Symbol: NPP /T/

To: SofaSpud who wrote (10906)	5/26/1998 9:44:00 PM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

SERVICE SECTOR / Hartland Pipeline Services Ltd. Announces the Acquisition of D&K Horizontal Drilling Ltd. and Smith Landscaping & Contracting Ltd. TSE SYMBOL: HAR MAY 26, 1998 CALGARY, ALBERTA-- THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH ANY SERVICES HAVING U.S. PARTICIPATION. Brian J. Murray, President and CEO of Hartland Pipeline Services Ltd., is pleased to announce the company has acquired D&K Horizontal Drilling Ltd. (D&K) and Smith Landscaping & Contracting Ltd. (Smith). "These acquisitions enable Hartland to become a vertically integrated pipeline services company providing a complete range of services to the oil and gas market". Hartland acquired D&K May 25, 1998. D&K is a trenchless technology service company which utilizes directional drilling to provide services to the oil, gas and utilities sectors. D&K specializes in drilled river crossings for the installation of pipelines and utilities and is one of the largest river crossing companies in Canada. Hartland acquired Smith May 21, 1998. Smith specializes in the reclamation of oilfield sites, pipeline right of ways and access roads. Mr. Murray indicated that "E&P companies are becoming very focused on environmental and safety concerns. Hartland's ability to offer proactive reclamation solutions to the E&P companies will not only generate reclamation revenue, it will enhance the quality of the relationship with the E&P companies. Also, with an estimated 25,000 abandonments scheduled for reclamation within the next 3 to five years, Hartland is well positioned to capitalize on pipeline installation, maintenance and well abandonment work". Hartland Pipeline Services Ltd. is a vertically integrated oil and gas services company providing reclamation, fabrication, installation and the construction of gathering systems and small to medium bore pipelines throughout Alberta and southeastern Saskatchewan. With the acquisition of Art's, Rattler, Parkland H&H, D&K and Smith, Hartland serves a broad client base of over 30 customers, principally senior Alberta oil and natural gas producers and large pipeline companies. Hartland's objective is to continue to consolidate through strategic acquisitions, with the Company's ultimate goal to service a significant portion of the overall gathering system and small to medium bore pipeline construction market in western Canada.

To: SofaSpud who wrote (10906)	5/26/1998 9:45:00 PM
From: Herb Duncan	Read Replies (3) \| Respond to of 15196

EARNINGS / Maxwell First Quarter 1998 Results Show Improvement ASE, VSE SYMBOL: MWL MAY 26, 1998 CALGARY, ALBERTA--The Board of Directors of Maxwell Oil & Gas Ltd. is pleased to announce the Company's first quarter, 1998 unaudited financials. Results for the three month period ended March 31, 1998 showed revenue from petroleum and natural gas sales (net of royalties) was $1,037,109 versus the $769,758 reported for the same period a year ago, while revenue from petroleum and natural gas contracts that the Company has in place provided incremental revenue of $591,355 versus the $326,287 reported a year ago. Cash flow for the three months climbed to $1,137,268 ($0.13 per share) versus the $613,087 ($0.08 per share) reported for the same period a year ago, while earnings for the three month period increased to $157,637 ($0.02 per share) versus $11,740 ($0.00 per share) a year ago. As a consequence of two recent acquisitions at Mica, B.C. and Mitsue, Alberta and continued drilling success at the Company's Blue Rapids, Alberta property, average production for the quarter jumped to 648 barrels of oil equivalent per day (boepd), versus a December, 1997 exit rate of 475 boepd. Interested parties are reminded that Maxwell will be presenting at the SEPAC Investment Symposium at 4:50 p.m. on Tuesday, May 26, 1998, in the Mayfair Room of Calgary's Westin Hotel and that the Company's Annual General Meeting will be held at 4500 Bankers Hall East, 855 - 2nd Street S.W., Calgary, Alberta on Thursday, May 28, 1998, at 3:00 p.m.

To: SofaSpud who wrote (10906)	5/26/1998 9:47:00 PM
From: Herb Duncan	Read Replies (3) \| Respond to of 15196

EARNINGS / Arakis Reports First Quarter 1998 Results NASDAQ SYMBOL: AKSEF MAY 26, 1998 CALGARY, ALBERTA--Arakis Energy Corporation (NASDAQ: AKSEF) today reported a net loss of $0.8 million, or $0.01 per share, for the three months ended March 31, 1998, the same result as in the first quarter of 1997. (All values are in U.S. dollars). Funds applied to operations also amounted to $0.8 million, compared with $0.5 million in the first three months a year ago. At March 31, 1998, working capital amounted to $54.7 million, compared with $55.5 million at year-end 1997. Capital expenditures in the first quarter totaled $67,000, compared with $1.0 million in the first quarter of 1997. Since November 29, 1996, Arakis' Consortium partners in the Sudan Petroleum Project have borne substantially all expenses related to the Sudan Concession (excluding bonuses and rentals payable) and will continue to do so until they have matched, on a pro rata basis, financial credits awarded to Arakis. Based on the Company's economic evaluations and Consortium spending estimates, Arakis expects to begin paying its 25 percent share of ongoing Consortium expenditures in the third quarter of 1998. Late in April 1998, State Energy Corporation, a wholly-owned subsidiary of Arakis, filed a preliminary prospectus with Canadian securities commissions with respect to a proposed issue of securities to fund part of the Company's financial commitments to the Sudan Petroleum Project. Pricing of the offering is expected to occur in early June with closing shortly thereafter. Seven wells were drilled on the Sudan Concession in the first quarter of 1998, resulting in four oil discoveries and three dry holes. Subsequent to quarter end, six additional wells have been drilled resulting in five further oil discoveries and one dry hole. Of the nine successful wells drilled so far in 1998, two have been production tested and designated potential producers; the remaining seven have yet to be tested. The single service rig on the Concession, which is used for production testing, has been employed over much of the past few months on other essential development activity and this has resulted in a build-up of untested wells. The arrival of a second service rig on the Concession, expected by mid-year, should accelerate the testing program. The Consortium plans to drill up to 16 wildcat exploration wells, six appraisal wells and 36 development wells in 1998. The appraisal and development drilling will focus on the five fields designated to be the initial project producers, namely the Greater Heglig, the Greater Unity, the Toma South, the El Nar and the El Toor fields. The Consortium is targeting startup of commercial production, at a minimum rate of 150,000 barrels of oil per day, by mid-1999. The program for construction of a 250,000 barrel per day pipeline from the Concession to a marine terminal to be constructed near Port Sudan on the Red Sea coast also continues to make strong headway. A major milestone was reached on May 4, 1998 when the first length of 28" diameter steel pipe was laid at the Port Sudan end of the 1,500 kilometre pipeline route. The following day, construction began along another stretch of the route, close to Khartoum. The target date for completion of the pipeline is the end of the second quarter of 1999. To meet the fast-track schedule, construction will be carried out simultaneously along several stretches of the pipeline right-of-way. /T/ Selected Data For the three months ended (All financial amounts in thousands of U.S. dollars, March 31 except per share items) 1998 1997 ---- ---- (unaudited) Total revenues $ 852 $ 907 Loss $ 766 $ 759 - per share $ 0.01 $ 0.01 Funds applied to operations $ 750 $ 477 Weighted average common shares outstanding (in thousands) 89,312 87,725 March 31 December 31 1998 1997 ---- ---- Working capital $ 54,670 $ 55,482 Shareholders' equity $ 179,036 $ 179,802 /T/

To: SofaSpud who wrote (10906)	5/26/1998 9:51:00 PM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

PROPERTY ACQUISITION / Moxie Petroleum Enters Into Purchase and Sale Agreement ASE SYMBOL: MOX MAY 26, 1998 CALGARY, ALBERTA--Moxie Petroleum Ltd. ("Moxie") has entered into a Purchase and Sale Agreement with a senior Canadian oil and gas producer to purchase certain oil and gas assets in Moxie's core area of southern Alberta. The acquisition includes gross over-riding royalty interests and working interest up to 100 percent in over 67,000 gross acres of P & NG leases located in Townships 1 - 20, Ranges 1 - 30W4M. Based on an April 1, 1998 reserve report prepared by Ryder Scott Company, Moxie is acquiring proven reserves of 193,000 barrels of oil equivalent, 88 percent of which are gas reserves. Current production is approximately 30 barrels of oil equivalent per day. Closing is expected to occur in late June, subject to standard closing conditions. Since closing its $6.4 million initial public offering in December 1997, Moxie has participated in the drilling of 8 wells, resulting in 6 potential gas wells and one oil well at an average working interest of 81 percent.

To: SofaSpud who wrote (10906)	5/26/1998 9:54:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

PROPERTY ACQUISITION / Lasmo Acquires New License Offshore Morocco NYSE SYMBOL: LSO MAY 26, 1998 LONDON, ENGLAND--LASMO Overseas Nederland (II) B.V., a subsidiary of LASMO plc the international oil and gas exploration and production company, today announced that it has been granted a Reconnaissance License covering approximately 11,400 square km of the Ras Tafalney area offshore western Morocco. The Reconnaissance License, for an initial term of one year, will enable LASMO to complete an evaluation of the drilling potential of the area. As part of that evaluation, LASMO plans to acquire 700 km of new seismic and magnetics/gravity data in addition to reprocessing 700 km of existing seismic data. The offshore license is adjacent to the onshore Essaouira Reconnaissance License, which was awarded to LASMO in November 1997 and is currently under evaluation. In addition to LASMO's listing on the New York Stock Exchange, LASMO shares trade on the London, Toronto and Montreal Stock Exchanges. Shares are quoted on the SEAQ System, and prices may be accessed on the Reuter Equities 2000 Service under the symbol LSMR.L and on Quotron under the symbol LSMRU.EU. For further information, visit LASMO's web page at http:\\www.lasmo.com. (Map available on request. Please contact Taylor Rafferty Associates)

To: SofaSpud who wrote (10906)	5/26/1998 9:59:00 PM
From: Herb Duncan	Respond to of 15196

EARNIBGS / Interaction Resources Announces First Quarter Financial Results Shares issued and outstanding - 46,960,071 TSE SYMBOL: INR MAY 26, 1998 CALGARY, ALBERTA--Interaction Resources Ltd. ("Interaction") is pleased to announce solid financial results for the first quarter ended March 31, 1998 which saw average daily production increase by 71 percent and cash flow increase by 53 percent compared to the first quarter of 1997. In addition, production milestones have been reached with the tie-in of previously shut-in gas wells. Financial In the first quarter of 1998, average daily production was 1,313 barrels of oil equivalent ("boes")/day versus 770 boes/day in 1997. Oil and NGL production increased to 557 bbls/day for the quarter compared to 300 bbls/day in 1997. Gas production increased to 7,557 mcf/day versus 4,700 mcf/day in the first quarter of 1997. Interaction's average price for oil and NGLs decreased by 33 percent to $17.33 per barrel in the first quarter of 1998 from $25.91 per barrel in the same quarter in 1997. However, gas price for the first quarter increased by 15 percent to $2.14 per mcf in 1998 from $1.86 per mcf in 1997. Lower royalties and operating costs in the first quarter of 1998 resulted in netbacks of $11.42 per boe which is comparable to the 1997 first quarter netbacks of $11.40 per boe. Royalties decreased to $3.57 per boe in 1998 versus $5.37 in 1997 and operating costs declined to $4.66 per boe in the first quarter of 1998 compared to $5.23 in the same quarter in 1997. Both interest costs and general and administrative costs increased in the first quarter of 1998. Interaction's debt levels increased in 1998 as the Company closed an acquisition made at the end of 1997. General and administrative costs have increased with the increased level of employees. These costs are expected to remain relatively constant throughout the remainder of the year and will be spread over higher anticipated production volumes resulting in lower per boe costs. Cash flow increased to $825,000 in the quarter compared to $540,000 realized in the first quarter of 1997. Cash flow per share remained constant at $0.02 per share. Depletion and depreciation expense was $843,000 or $7.13 per boe compared to $6.32 per boe in 1997. This resulted in a net loss of $18,000 for the quarter compared to net income of $101,000 for the first quarter of 1997. /T/ -------------------------------------------------------------- Three months Revenue Cash flow Cash flow ended March 31 ($000) ($000) per share ($000s except per ($) share amounts) -------------------------------------------------------------- 1998 2,325 825 0.02 1997 1,524 540 0.02 -------------------------------------------------------------- -------------------------------------------------------------- -------------------------------------------------------------- Three months Net income Net income Average ended March 31 (loss) (loss) per daily except per ($000) share ($) production share amounts) (boe) -------------------------------------------------------------- 1998 (18) 0.00 1,313 1997 101 0.00 770 -------------------------------------------------------------- -------------------------------------------------------------- /T/ Operational During the quarter, Interaction completed a 75 percent working interest well in the Cecil area of northwest Alberta. The well tested gas at rates exceeding 5 mmcf/day with condensate rates of 25 bbls/mmcf from the Elkton formation. The well was put on production in early May. Modifications have been made at the well site to eliminate the formation of hydrates which will allow production of 5 mmcf/day and 125 bbls/day of liquids (net to Interaction 470 boes/day) within the next week. Plant capacity is currently available for additional volumes above 5 mmcf/day. There are three other prospective zones (Bluesky, Gething and Rock Creek) which have log indicated and tested gas pay which are not currently producing. Interaction plans to drill at least one more 75 percent working interest offset well to produce one or more of the additional zones. Interaction's current production is approximately 1,500 boes/day and is comprised of 10 mmcf/day of gas and 500 bbls/day of oil and NGLs.

To: SofaSpud who wrote (10906)	5/26/1998 10:06:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / American Energy Group: Company Update OTC Bulletin Board SYMBOL: AMEL MAY 26, 1998 ISLAMABAD, PAKISTAN--Hycarbex, Inc., a wholly owned subsidiary of The American Energy Group Ltd. today announced preliminary results of its first Middle Indus Basin exploratory well in central Pakistan. The well, Kharnhak No. 1, was spudded on March 15th, 1998, and was drilled to total depth on May 12, 1998. The well ceased drilling in the Chiltan Limestone of the Upper Jurassic formation at 8,250 feet, and had encountered gas shows throughout a 700 foot section identified by paleotologist reports as the Sui Main Limestone and a 260 foot section identified as the Pab Ranikot Sandstone. As a result of log analysis, core analysis, and the gas shows encountered, the company conducted drillstem tests in the Sui Main Limestone. The drillstem test of the Sui Main Limestone at approximately 3,900 feet produced natural gas and formation water, and pressure tests indicated downhole flowing pressure of 1750 psi. Chromatograph readings taken from gas samples at the surface indicated a high quality gas with no CO2 or H2S detected. A successful flare test was conducted at the surface during the drilling test. Casing has been set to a depth of 7,500 feet, operations have been suspended, and the drilling rig has been released. The commerciality of this well and the Sui Main geological structure will be determined by further evaluation and analysis by the company and the Government of Pakistan. Based upon these results and the intent to evaluate other potentially productive formations and structures, the company will hold an Operating Committee Meeting, which is comprised of the working interest owners (in this case, the company and the Government of Pakistan) in Islamabad to extend its Exploration License on the Jacobabad Concession for one year and commit to drill another well to evaluate the Sui Main and Pab formations by April, 1999. The next well is anticipated to be drilled to a maximum depth of 5,000 feet. Having completed its three years of work requirements and initial License term, the company, per the provisions of its Exploration License, will relinquish 20 percent of the acerage originally held under the Concession, thereby retaining approximately one million acres for further exploration and development. The relinquished acreage is not part of the potentially productive structure to be evaluated by the company on the Jacobabad Concession. The American Energy Group Ltd. is an independent oil and gas exploration, drilling and production company based in Houston, involved with both domestic and international exploration projects.

To: SofaSpud who wrote (10906)	5/27/1998 4:47:00 PM
From: SofaSpud	Respond to of 15196

FIELD ACTIVITIES / Northstar Receives Pipeline Approval NEB APPROVES COLEMAN PIPELINE PROJECT APPLICATION CALGARY, May 26 /CNW/ - The National Energy Board has approved an application by Northstar Energy Corporation Ltd. (''NEC'') of Calgary to construct and operate a natural gas pipeline project in southwestern Alberta and southeastern British Columbia. The decision follows a public hearing held in Calgary on 30 March to 2 April and 6 April 1998. NEC applied for permission to construct and operate a 406 millimetre (16 inch) outside diameter natural gas pipeline extending approximately 7.2 kilometres (4.5 miles) from NEC's Coleman Gas Plant, located west of Coleman in Savanna, Alberta, through the Phillips Pass, to connect to the Alberta Natural Gas Company Ltd. main transmission pipeline west of the Alberta/British Columbia border. The capital cost of the project is estimated to be $6.467 million. The initial contracted capacity is anticipated to be 1.04 million cubic metres (37 million cubic feet) of natural gas per day. For a copy of Reasons for Decision GH-1-98: Publications Officer Library 311 Sixth Avenue S.W. Calgary, Alberta T2P 3H2 (403) 299-3562 This news release is also available on the Board's internet site at www.neb.gc.ca -30- For further information: Ross Hicks, Public Affairs Officer, National Energy Board, (403) 299-3930