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

To: Herb Duncan who wrote (10911)	5/27/1998 4:43:00 PM
From: SofaSpud	Read Replies (3) \| Respond to of 15196

FIELD OPERATIONS / Pan Canadian Reduces Capex Budget PANCANADIAN PETROLEUM REDUCES 1998 CAPITAL SPENDING CALGARY, May 26 /CNW/ - PanCanadian Petroleum Limited has reduced its 1998 capital spending budget by $90 million in response to the prevailing weak prices for crude oil. The revised $870 million capital spending program includes an ambitious drilling program of about 1,075 wells, predominately in Western Canada. PanCanadian is focusing on growing Canadian natural gas production in preparation for pipeline capacity expansions that are set to come on stream late this year to export and domestic markets. The Calgary oil and gas company is also participating in four, high-impact, offshore exploration wells - one off Nova Scotia and three in the Gulf of Mexico. This budget reduction is focused on oil exploration and development in Western Canada and was taken in recognition of the reduced profitability of oil projects and to better align the company's capital spending with its projected cash flow. PanCanadian will continue to manage capital spending in light of the world oil price environment. ''PanCanadian continues to pursue a wide variety of profitable oil and gas opportunities. We are particularly committed to growing natural gas production and capitalizing on the favorable gas price outlook,'' said Mackenzie Kwan, PanCanadian's Senior Vice President and Chief Financial Officer. PanCanadian is one of Canada's largest producers and marketers of crude oil, natural gas and natural gas liquids. Its extensive exploration and production activities stretch from coast to coast in Canada and include a variety of international interests in the Gulf of Mexico, the United Kingdom, Australia, South Africa and Venezuela. -30- For further information: M.M.L. Kwan, Senior Vice President and Chief Financial Officer; Alan Boras, Corporate Communications, (403) 716-4040; or Carolyn Armitage, Investor Relations, (403) 290-2931

To: Herb Duncan who wrote (10911)	5/27/1998 4:58:00 PM
From: SofaSpud	Respond to of 15196

FIELD ACTIVITIES / Trigas Horizontal Well TRIGAS DRILLS 1,800 METRES OF HORIZONTAL GAS PAY AT LONE PINE CALGARY, May 27 /CNW/ - TriGas reports that it has drilled two horizontal legs from a vertical wellbore at Lone Pine and encountered over 1,800 metres of total pay in the Crossfield gas reservoir. The 14-33-28-28W4M well was drilled vertically to a depth of 2,500 metres. The first horizontal leg was drilled to an end location in 4-33-28-28W4M and opened approximately 840 metres of pay in the Crossfield gas zone. The second leg was drilled to an end location in 12-4-29-28W4M and opened approximately 990 metres of pay in the Crossfield gas reservoir. Completion operations are currently underway and TriGas expects to place this well on production in July, 1998. TriGas owns a 50% working interest in this well and is the operator of the Lone Pine property. The common shares of TriGas are listed on the Toronto Stock Exchange under the symbol ''TGX''. -30- For further information: Russell J. Tripp, President and Chief Executive Officer, TriGas, (403) 265-4777

To: Herb Duncan who wrote (10911)	5/27/1998 5:11:00 PM
From: SofaSpud	Read Replies (1) \| Respond to of 15196

EARNINGS / Benson Petroleum Q1 Results BENSON PETROLEUM LTD. ANNOUNCES FIRST QUARTER 1998 OPERATING AND FINANCIAL RESULTS CALGARY, May 27 /CNW/ - Benson Petroleum Ltd. is pleased to report increases in operating performance in the first quarter of 1998. Crude oil and liquids production increased by 15% to average 1,442 bbls/d and natural gas production was up 20% to an average of 6.06 mmcfd. Reductions were achieved in expenses with a 31% decrease in unit operating costs to $4.71 per BOE and an 18% decline in net general and administrative costs to $1.07 per BOE. Financial results, however, were substantially impacted by a 46% decline in average crude oil and liquids prices to $14.13 per bbl for the quarter compared to $25.98 per bbl in 1997. Average natural gas prices were down 18% to $1.74 per mcf versus $2.12 per mcf for the comparable period in 1997. Consequently, petroleum and natural gas revenues decreased by 25% to $3,099,000 as compared to $4,136,000 in 1997. Cash flow was $1,225,000 ($0.07 per share) for the firrt quarter, down 34% from $1,866,000 ($0.12 per share). The drop in commodity prices was the primary reason for a loss in the quarter of $35,000 compared to net earnings of $418,000 in the first period of 1997. Net capital expenditures were $5,642,000 in the quarter compared to $8,017,000 for the comparable period in 1997. The Company has reduced its capital budget to the $8 million level due to the low crude oil price environment. In the first quarter, Benson participated in the drilling of eleven wells (8.6 net) resulting in seven oil wells (6.4 net), one gas well (.7 net), and three dry holes (1.5 net). One well was farmed out and was plugged and abandoned. The Company operated all but one of the participation wells including five horizontal wells. The majority of the successful oil wells were not placed on stream until May and production contribution from these wells will be more fully reflected in the second quarter. For the remainder of 1998, Benson plans additional activity in East Central Alberta, Cherhill and Hinton/Obed. << SUMMARY OF 1998 FIRST QUARTER RESULTS 1998 1997 Change ---- ---- ------ Gross Revenue $ 3,099,000 $ 4,136,000 -25% Cash Flow $ 1,225,000 $ 1,866,000 -34% Cash Flow per Share $ 0.07 $ 0.12 -42% Net Earnings $ (35,000) $ 418,000 -108% Net Earnings per Share --- $ 0.03 -100% Net Capital Expenditures $ 5,642,000 $ 8,017,000 -30% Bank Debt $ 7,700,000 $10,800,000 -29% Oil and NGL (bbls/d) 1,442 1,250 +15% Natural Gas (mcf/d) 6,060 5,030 +20% BOE per day 2,047 1,753 +17% >> Benson Petroleum Ltd. is a Calgary based exploration, development and production company and is listed on the Toronto Stock Exchange (Symbol:BEN). -30- For further information: Yook L. Mah, P.Eng., President and Chief Executive Officer, Benson Petroleum Ltd., (403) 269-5158