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

To: SofaSpud who wrote (10972)	5/29/1998 1:03:00 PM
From: SofaSpud	Respond to of 15196

FIELD ACTIVITIES / Barra Resources BARRA RESOURCES INC. TO PARTICIPATE IN SASKATCHEWAN HORIZONTAL DRILLING PROJECT, ARRANGES PRIVATE PLACEMENT CALGARY, May 29 /CNW/ - BARRA RESOURCES INC. (ASE: BAO) (the ''Corporation'') announces that it will participate with Raptor Capital Corporation and other companies in a horizontal drilling project in the Minton area of southern Saskatchewan. Barra will earn an interest in 2,800 acres of lands, eight oil wells, one water disposal well, and a modern central battery with treating and disposal facilities. Current gross production is approximately 280 bopd. Barra will pay 37.5% of the costs of the current horizontal drilling program (Barra share approximately $360,000) to earn a 13.125% before payout and 7.5% after payout interest. Cost overruns in excess of 20% of AFE costs will be borne by the parties on the basis of their before payout interests. The present program which commenced on May 15, involves re-entering one vertical well and drilling two horizontal laterals into the Winnipegosis zone and also re-entering and drilling two additional horizontal legs off an existing horizontal Red River well. Depending on the results of these re-entries, six additional Winnipegosis wells are available for re-entry. Barra also announces that it has executed a Subscription Agreement with EnerVest FTS Limited Partnership Fund (1997). The fund will subscribe for 1.2 million flow through common shares of the Corporation at a price of $0.45 per share for gross proceeds of $540,000. The proceeds will be primarily used to fund Barra's share of the Minton project as described above. Closing, which is subject to necessary regulatory approvals, is anticipated to occur in early July. THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN. -30- For further information: Dan P. O'Neill, President & CEO or Glynn G. Davies, Vice President & CFO, (403) 269-1995, Fax: (403) 269-1994

To: SofaSpud who wrote (10972)	5/29/1998 1:05:00 PM
From: SofaSpud	Respond to of 15196

PROPERTY ACQUISITIONS / Bow Valley Energy U.K. Licences BOW VALLEY ANNOUNCES AGREEMENT IN PRINCIPLE TO ACQUIRE THE MAJORITY OF THE ASSETS OF DSM ENERGY (UK) LIMITED CALGARY, May 29 /CNW/ - Bow Valley Energy Ltd. is pleased to announce that its wholly owned UK subsidiary, Bow Valley Petroleum (UK) Limited, has reached an agreement in principle to buy the majority of the licence interests held by DSM Energy (UK) Limited (''DSM'') in the United Kingdom. The major assets to be acquired are interests in Licence P.249 which contains the Claymore field and in Licences P.743 and P.883 in which the Durward and Dauntless fields are located. The licence interests which Bow Valley has agreed to buy are as follows: Working Interest Licence Block (%) ------- ----- -------- P.090 (deep) 3/25a 15 P.249 14/19 4.2216 P.930 20/10b 20 P.883 21/11 20 P.743 21/16a 20 P.662 22/16b 8.57 P.695 48/7c 20 P.458 48/8c 20 P.560 204/29a 10 EXL245 27.5 EXL246 27.5 EXL248 50 Licences EXL 245, 246 and 248 are located onshore in the East Yorkshire region while the remainder of the licences are located offshore in the United Kingdom Continental Shelf. The purchase of these interests is conditional upon receipt of consent of the UK Department of Trade and Industry, completion of a formal Purchase and Sale Agreement, appropriate joint venture consents and the successful completion of the sale by DSM of all the other licence interests which it holds in the United Kingdom. The assets being purchased by Bow Valley include two producing assets, a 4.2216% interest in the Claymore field which is a large mature field with estimated remaining reserves of 100 million barrels of oil equivalent and a 20% interest in the Durward and Dauntless fields currently producing approximately 25,000 barrels of oil per day (gross). The Claymore field commenced production in 1977. Prior to the acquisition of 4.2216% interest in Claymore through this transaction, Bow Valley indirectly held a working interest of 0.4605% in this field through its 50% equity interest in Croft (UK). The Corporation's net production from this field will be in excess of 1,800 barrels per day after giving effect to the acquisition. Durward and Dauntless fields, which produce through a single facility, are expected to reach their economic limit during the second half of 1999. Discussions are taking place for an alternate use for the Floating Production, Storage and Offtake facility (''FPSO'') currently employed on the fields in order to reduce or eliminate any remaining lease costs for the vessel. Closing of this acquisition is expected to take place by the end of June, 1998. Bow Valley was formed in 1996 to operate as an international oil and gas acquisition, development and production company headquartered in Calgary, Alberta. Bow Valley has interests in the United Kingdom (both onshore and offshore) and has signed a service contract to develop the Balal oilfield located offshore Iran in the Persian Gulf. Bow Valley trades on the Toronto Stock Exchange under the symbol BVX. %SEDAR: 00008379E -30- For further information: Walter DeBoni, President & Chief Executive Officer, or Dinesh Dattani, Vice President, Finance & Chief Financial Officer, (403) 232-0292, Fax: (403) 232-8920