Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: SofaSpud who wrote (11015)	5/30/1998 6:23:00 AM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / Seventh Energy Financial and Operating Results TSE SYMBOL: SEV.A ASE SYMBOL: SEV.B MAY 29, 1998 CALGARY, ALBERTA--Seventh Energy Ltd. announces its financial and operating results for the first three months of 1998. As Seventh Energy was on a pre-production accounting basis during the first three months of the previous year, comparative figures are not presented. /T/ FINANCIAL HIGHLIGHTS Financial Operating Petroleum and natural Oil production gas sales $ 1,125,740 Funds from operations $ 415,922 Barrels 71,690 per Class A share (basic) $ 0.04 Barrels per day 797 per Class A share (fully diluted) $ 0.04 Average selling price $ 14.53 Net loss $ 73,638 Gas production per Class A share (basic) $ 0.00 Mcf 34,429 per Class A share (fully diluted) $ 0.00 Mcf per day 383 Working capital deficiency $ 5,416,698 Average selling Price $ 2.50 Long term debt $ 5,111,101 Barrels of oil Equivalent Capital expenditures $ 2,233,961 Production 75,133 Class A shares outstanding Daily production 835 basic, end of period 10,859,737 Average netback $ 7.56 fully diluted 11,823,737 /T/ OPERATIONS During the first quarter of 1998 Seventh drilled three wells at Gift in Northern Alberta. All were completed as Gilwood oil wells. Two wells from our year end 1997 drilling program in Southern Alberta were also completed during the first quarter, and the final components of our Turin oil field pressure maintenance scheme were installed. Total capital expenditures for the quarter were $2,233,961. Production for the quarter averaged 835 barrels of oil equivalent per day, 95 percent of which was crude oil. The production rate represented a 30 percent increase over the 643 barrels of oil equivalent produced during the fourth quarter of 1997. Subsequent to the end of the first quarter, working interests were sold in our properties at Turin, Grand Forks and Gift. After closing the transactions, production will be reduced to approximately 600 barrels of oil equivalent per day, continuing to be 95 percent crude oil. Seventh estimates that our corporate average for the year will be 700 barrels of oil equivalent per day. Reserves sold amounted to 667,000 barrels of oil equivalent of proven reserves and 304,200 barrels of oil equivalent of probable reserves, resulting in remaining reserves of 1,850,200 barrels of oil equivalent proven reserves and 878,600 barrels of oil equivalent probable reserves. The reserves are concentrated in our core exploration and development area of Enchant-Hays in Southern Alberta. FINANCIAL REVIEW First quarter financial performance was heavily impacted by low oil sales prices. Petroleum and natural gas sales revenue dropped four percent from the fourth quarter of 1997, to $1,125,740, in spite of the 30 percent increase in production. The average sales price for crude oil fell from $19.18 to $14.53 per barrel. Netbacks for the first quarter on a barrel of oil equivalent basis were lower by 37 percent from the fourth quarter 1997 amount of $11.97, and are detailed as follows: /T/ Sales price $ 14.74 Royalties (2.97) Operating costs (5.37) ARTC 1.15 ----- Netback $ 7.56 /T/ Long term debt at March 31, 1998 was $5,111,101, and the working capital deficit was $5,416,698, for a total debt load of $10,527,799. Our corporate goal of reducing overall debt levels through asset sales has reduced this amount to a current level, after asset sales, of $6,300,000. Funds from operations amounted to $415,922, or $0.04 per share on a fully diluted basis. This was a 39 percent drop from the $679,240 recorded in the fourth quarter of 1997, and was mainly due to decreased oil prices. The Company recorded a small loss in the first quarter of $73,638. /T/ BALANCE SHEET As at As at March 31, 1998 December 31,1997 -------------- ---------------- ASSETS Current Cash $ 21,062 $ 27,864 Accounts receivable 2,333,976 2,380,148 Prepaid expenses and deposits 69,605 33,680 -------------------------------- 2,424,643 2,441,692 Investment, at cost 416,823 416,823 Capital 24,534,905 23,613,893 -------------------------------- $ 27,376,371 $ 26,472,408 -------------------------------- -------------------------------- LIABILITIES Current Accounts payable and accrued liabilities $ 7,841,341 $ 6,771,658 Long term debt 5,111,101 4,368,793 Site restoration and abandonment provision 82,581 45,720 Deferred income taxes 601,057 660,388 -------------------------------- 13,636,080 11,846,559 -------------------------------- SHAREHOLDERS' EQUITY Share capital 13,547,583 14,359,503 Retained earnings 192,708 266,346 -------------------------------- 13,740,291 14,625,849 -------------------------------- $ 27,376,371 $ 26,472,408 -------------------------------- -------------------------------- STATEMENTS OF INCOME AND RETAINED EARNINGS For the Three Months Ended March 31, 1998 Revenues Petroleum and natural gas sales $ 1,125,740 Royalties (147,434) ------------- 978,306 ------------- Expenses Production 354,272 General and administration 139,135 Interest 68,977 Depletion, depreciation and amortization 548,891 ------------- 1,111,275 ------------- Net loss for the period, before income taxes (132,969) Deferred tax recovery 59,331 ------------- Net loss for the period (73,638) Retained earnings, beginning of year 266,346 ------------- Retained earnings, end of period $ 192,708 ------------- ------------- Earnings (loss) per Class A share Basic $ 0.00 ------ ------ Fully diluted $ 0.00 ------ ------ /T/ (x) As the Corporation did not commence commercial production until August 1, 1997 comparative highlights are not presented. /T/ STATEMENT OF CHANGES IN FINANCIAL POSITION For the Three Months Ended March 31 Operating activities 1998 1997 ---- ---- Net income $ (73,638) $ - Add charges not affecting cash Depletion, depreciation and amortization 548,891 - Deferred income taxes (59,331) - ---------- --------- Funds from operations 415,922 - Change in non-cash working capital related to operating activities 727,042 - ---------- --------- 1,142,964 - ---------- --------- Financing activities Issue of Class A shares, net of issue costs - 507,692 Tax benefits rendered to shareholders (11,000) - Increase in production loan 742,308 - --------- --------- 731,308 507,692 --------- --------- Cash available for investing activities 1,874,272 507,692 Investing activities Expenditures on property and equipment (2,233,961) (376,647) Change in non-cash working capital related to investing activities 352,887 (163,989) --------- -------- (1,881,074) (540,636) --------- -------- Decrease in cash (6,802) (32,944) Cash, beginning of year 27,864 7,549,923 ---------------------- Cash, end of period $ 21,062 $7,516,979 ---------------------- ---------------------- Funds from operations per Class A share Basic $ 0.04 $ nil ------ ----- ------ ----- Fully diluted $ 0.04 $ nil ------ ----- ------ ----- /T/ Our full report has been filed through SEDAR and should therefore be available at www.sedar.com.

To: SofaSpud who wrote (11015)	5/30/1998 6:27:00 AM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / AltaQuest Energy Corporation Releases First Quarter Results and Updates U.K. Activities ASE SYMBOL: AQF MAY 29, 1998 CALGARY, ALBERTA--ALTAQUEST ENERGY CORPORATION (Symbol - AQF) reports that for the three-month period ended March 31, 1998, revenues net of royalties, rose to $842,000 as compared to $216,000 for the same period in 1997. Cash flow from operations was substantially higher at $390,000 ($0.04 per share) versus $51,000 ($0.01) last year. The Company had a loss of $19,000 for the three months ended March 31, 1998 versus earnings of $5,000 in 1997, both amounts of an insignificant per share figure. These results reflect higher production volumes of 591 BOE/d as compared to 125 BOE/d achieved in 1997. AltaQuest's average volumes for the quarter were comprised of 68 percent gas and 32 percent light oil and natural gas liquids. Average product prices for the period were $1.92/mcf and $18.06/bbl. AltaQuest has raised $5.0 million via special warrants that will be released once a prospectus clears. These funds will assist AltaQuest in carrying out its 1998 capital expenditure program, currently estimated to be $7.0 - $9.0 million. The Company estimates that with this financing it will exit 1998 with a debt level that is less than one year projected cash flow. AltaQuest is currently underway with its 3D seismic program on its latest U.K. discovery in Newton (50 percent W.I.). The program should be completed and interpreted by the end of June. The discovery well, Newton-on-Trent #1, will be completed the first week of June and subsequently production tested. Once the 3D seismic and production test are complete it is anticipated that delineation wells will commence drilling in August. On its Fiskerton discovery (24.5 percent W.I.) delineation wells have been picked and it is anticipated that drilling will commence in mid June. A pipeline is planned to be built in September that will enable the existing gross production volumes to be increased to 600 - 800 bopd. AltaQuest plans to drill eight wells in the U.K. this year, three of which are exploration wells. AltaQuest has currently completed a 40 kilometer 2D seismic program and plans another 75 kilometer 2D program on its lands in the East Midlands. These programs enable the Company to evaluate sixteen prospects. The Company is currently reviewing opportunities with local drilling rig contractors in an effort to move a drilling rig from western Canada to the United Kingdom. AltaQuest is a publicly traded company on The Alberta Stock Exchange.

To: SofaSpud who wrote (11015)	5/30/1998 6:29:00 AM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

CORP / Cubacan Exploration - Rt. Hon. Joe Clark Appointed to Advisory Board ASE SYMBOL: CCX MAY 29, 1998 CALGARY, ALBERTA--Cubacan Exploration Inc. ("Cubacan") is very pleased to announce the commencement of a relationship with Joe Clark & Associates under which the Right Honorable Joe Clark, P.C. C.C. will join Cubacan's Advisory Board. Mr. Clark served with distinction in the most senior positions in the Government of Canada, including Prime Minister. Recognized and respected internationally, Mr. Clark presently serves on the Board of several companies operating in Canada and internationally. Joe Clark & Associates knowledge of international diplomatic customs and protocols will further strengthen the Company's relationship with the Government of Cuba which is essential when operating in Cuba. Cubacan's potential to be a significant participant in the international oil and gas arena is based on an extremely proficient technical team, committed management and extensive scientific data. The addition of Mr. Clark, and Joe Clark & Associates, will further enhance Cubacan's present capabilities and future operations in the Republic of Cuba. FAROLA NORTH #1 WELL RESULTS The reserves from the Farola North field have been estimated from seismic data and the log results from one well drilled in the first quarter of 1998, the Farola North #1. The mean reserves estimated are 23 million barrels equivalent of light oil and associated natural gas. As no production testing data is available from the well or the field; producibility of the reserves is not confirmed. The accuracy of this reserve evaluation must be taken in the context of the limits of the data available therefore, only possible reserves are indicated. These numbers represent the Company's in-house engineering calculations from a review of all data available. A log interpretation from an independent engineering consultant indicates 4 significant hydrocarbon bearing zones. Seismic evidence supports that the area of closure within the largest potential hydrocarbon bearing zone is between 4 and 5 square kilometers and the total field could be as large as 10 square kilometers. The presence of hydrocarbons within multiple target intervals in the first well drilled by Cubacan has significantly enhanced the potential of the remaining prospects and plays identified on Cubacan's two concessions. Through the results of its first well, Cubacan has confirmed the existence of prospective hydrocarbons within this wildcat region of Cuba. FAROLA NORTH #1 PRODUCTION TESTING The Company has sourced and is currently in the process of obtaining the necessary equipment to conduct a production test over the identified hydrocarbon intervals. Shipment and delivery of the equipment to Cuba should occur within 60 days upon which testing of the intervals of interest will commence. After evaluation of the production test data, the Company will make a decision to complete and equip the Farola North #1 well. ANNUAL GENERAL AND SPECIAL SHAREHOLDER MEETING The Annual General and Special Shareholder Meeting has been set for Wednesday, June 24, 1998 at 3:00 p.m. in the Barber Room at the 400 Club, 710 - 4th Avenue S.W., Calgary, Alberta. Cubacan is a Calgary based junior oil and gas exploration company with interests solely in Cuba. Cubacan is listed on the Alberta Stock Exchange (ASE) with shares trading under the symbol "CCX".

To: SofaSpud who wrote (11015)	5/30/1998 6:34:00 AM
From: Herb Duncan	Respond to of 15196

EARNINGS / S.R.I. Oil & Gas Inc. Announces 1998 1st Quarter Results ME SYMBOL: SEL MAY 29, 1998 MONTREAL, QUEBEC--S.R.I. OIL & GAS INC. announced today the results for its first quarter ended March 31, 1998. Results for the first three months of fiscal 1998 were down due to a 10 percent decrease in production and an increase in expenses. Oil and gas revenues, net of royalties, were recorded at $522,419 this quarter, compared to $671,699 for the same period last year. Cash flow decreased to $0.09 per share, from $0.15 per share for the same period in the previous year. Net income stood at $0.00 per share, compared to $0.05 per share for the 1997 comparable period. Due to the growth of the Company, general and administrative expenses for the quarter were higher than for the same period last year. The cost of financing additional investments was represented by a $20,000 increase in interest expense; the addition of a Senior Officer resulted in an incremental expense of $15,000; and the various costs associated with operating a public company totalled $29,000. Production in the first quarter of 1998 also came from more costly wells, such that production expenses increased by $65,005 compared to the same period last year. Second quarter results to date are promising. Production at the Chestermere-area oil and gas producing property, of which S.R.I. has a 6 percent interest, is progressing well. Total projected gross revenues to S.R.I. from this property are estimated at $330,000 before royalties for 1998. The Company remains optimistic about its outlook for the remainder of 1998. Oil and gas prices are currently stable and, according to many analysts, poised for growth due to the construction of major export pipelines to the U.S. The U.S. market is predicted to grow at 2 percent a year, with Canadian producers expected to provide almost all of this increase. "We believe that the expansion of our operations - with regards to both the specific projects in which we have interests and our many strategic alliances - positions us well to take full advantage of the industry's long-term growth," commented Harry H. Feldman, Chairman of S.R.I. S.R.I. Oil & Gas Inc. is dedicated to creating value for its shareholders through investment in the Canadian western sedimentary basin as a joint venture partner and by acting as a merchant bank to public and private oil and gas companies. The Company currently has interests in a number of promising projects, among them properties operated by Remington Energy Ltd., Hornet Oil & Gas Ltd. and Pinon Oil and Gas Ltd. /T/ Financial Highlights For the three months ended March 31 1998 1997 Revenues, net of royalties $522,419 $671,699 Cash flow 297,398 514,146 Net earnings (loss) (11,977) 188,193 Basic cash flow per share (undiluted) 0.09 0.15 Basic net earnings per share (undiluted) 0.00 0.05 /T/

To: SofaSpud who wrote (11015)	5/30/1998 6:42:00 AM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

EARNINGS / Snow Leopard Resources Reports First Quarter Results TSE SYMBOL: SNW.A MAY 29, 1998 CALGARY, ALBERTA--Snow Leopard Resources Inc. reports its results for first quarter 1998. Compared to first quarter 1997 oil and gas revenues (net of royalties) decreased by 13 percent to $674,000. Gas sales averaged 5.1 mmcf per day compared to 3.9 mmcf per day in 1997 and oil sales averaged 65 bbls per day compared to 100 bbls per day in 1997. The average gas price decreased from $1.98 to $1.65 per mcf and the average oil price decreased from $28.16 to $19.49 per barrel. A net loss of $125,000 was incurred in first quarter 1998 and funds generated from operations decreased by 37 percent to $353,000. Capital expenditures were $1,055,000 in first quarter 1998, with $820,000 incurred in Canada and $235,000 in Kazakhstan. /T/ Earnings/ Cash Cash First Quarter Revenue Earnings Share Flow Flow/Share (x) (x) (x) ------------- ------- -------------- ---- ---------- 1998 $ 674 $ (125) -- $ 353 $ 0.01 1997 $ 774 $ 219 $ 0.01 $ 557 $ 0.03 (x) thousands of dollars /T/ Subsequent to March 31, 1998 Snow Leopard participated in two successful oil wells in the Hartaven area of southeast Saskatchewan. Both wells are expected to be placed on production during the second quarter. The Class A common shares of Snow Leopard are listed on the Toronto Stock Exchange under the trading symbol SNW.A.

To: SofaSpud who wrote (11015)	5/30/1998 6:46:00 AM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

MERGERS-ACQUISITIONS / Pogo Producing Company and Arch Petroleum Inc. Announce Merger NYSE SYMBOL: PPP MAY 29, 1998 HOUSTON, TEXAS--Pogo Producing Company and Arch Petroleum Inc. (NASDAQ:ARCH) announced today that they have entered into a definitive agreement and plan of merger that will provide for a tax-free, stock for stock transaction through which Arch will become a wholly-owned subsidiary of Pogo. The combined company would have had 860.7 billion cubic feet of natural gas equivalent of proved reserves (on a pro forma basis as of year end 1997). The combined average daily production rate of the two companies for the first quarter was approximately 203.2 million cubic feet per day of natural gas and 22,182 barrels per day of liquid hydrocarbons (including crude oil, condensate and natural gas liquids). The merger agreement provides for a fixed exchange ratio of one share of Pogo common stock for 10.4 shares of Arch common stock. In addition, holders of Arch preferred stock will receive one share of Pogo common stock for each 1.04 shares of Arch preferred stock they hold. Former holders of Arch stock will hold approximately six percent of Pogo common stock after the merger. The total number of outstanding Pogo shares after the merger will be approximately 40,100,000 shares. Based on Arch's closing price of $2.47 on May 28, 1998, and the assumption of approximately $48.5 million of Arch's debt and production payment obligations, the transaction has a total value of approximately $115 million. Although the merger was unanimously approved by the board of directors of both Pogo and Arch, the merger is also subject to approval by Arch's shareholders and to customary regulatory approvals. Executive officers and directors of Arch, Threshold Development Corporation and all of the holders of Arch's preferred stock, representing approximately 47 percent of Arch's outstanding stock entitled to vote on the merger at the shareholders meeting, have entered into agreements with Pogo agreeing to vote in favor of the merger. The merger is expected to close in the third quarter of 1998 and is also expected to be accounted for as a pooling of interests and qualify as a tax-free reorganization. Paul G. Van Wagenen, Pogo's chairman, president and chief executive officer, said, "We are very excited about the opportunity to join forces with Arch and its experienced team of proven oil finders. Arch's West Texas and Permian Basin properties and operations complement and strengthen Pogo's existing operations in our core area there, providing the combined entity with substantial synergistic opportunities and additional high-grade locations to add to our drilling inventory. We believe that Pogo's financial strength will enable us to more fully and rapidly exploit Arch's existing opportunities there. In addition, we also look forward to integrating Arch's highly successful Canadian subsidiary into our international operations. Its inventory of highly prospective Canadian acreage and prospects are just beginning to be explored and developed, and will provide Pogo with another international area that will complement Pogo's existing successful operations in the Kingdom of Thailand, further diversifying Pogo's international exploration and production efforts. In addition, this combination also provides Pogo with a valuable entryway into Canadian exploration opportunities, which Pogo has been actively pursuing for some time." Larry Kalas, Arch's president and chief executive officer, said, "This combination will permit Arch to accelerate the pace and scope of its exploration efforts, both in the United States and in Canada. We believe that the financial strength of the combined entity, coupled with its significant upside potential in its domestic and international operations, will provide an excellent opportunity for shareholders to realize significant future value from the combined entity." Pogo Producing Company primarily explores for, develops and produces oil and natural gas. Headquartered in Houston, Pogo owns interests in 103 (assuming the remaining two high bid tracts from the recent federal OCS lease sale are awarded) federal and state Gulf of Mexico lease blocks offshore Louisiana and Texas. After the merger Pogo will own interests in approximately 378,000 gross leasehold acres in major oil and gas provinces onshore in the United States and approximately 734,000 gross acres in the Kingdom of Thailand and approximately 142,000 gross acres in the Dominion of Canada. Pogo common stock is listed on the New York Stock Exchange under the symbol PPP. Arch common stock is listed on the NASDAQ National Market System under the symbol ARCH. Certain statements in this news release regarding future expectations, potential results of the business combination, plans for oil and gas exploration, development and production may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas as well as other risks discussed in detail in the SEC flings of Pogo and Arch, including the Annual Reports on Form 10-K for the year ended December 31, 1997. Actual results may vary materially.

To: SofaSpud who wrote (11015)	5/30/1998 6:50:00 AM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

SERVICE SECTOR / NQL Drilling Tools: Legal Update TSE SYMBOL: NQL.A MAY 29, 1998 NISKU, ALBERTA--NQL Drilling Tools Inc. ("NQL") reports that it has, with its counsel, reviewed the claims outlined in the Statement of Claim issued by Wenzel Downhole Tools Ltd. ("Wenzel"). This process included a review of the technology incorporated in NQL's products. Management continues to be of the view that the claims are without merit. The review undertaken and advice received has also lead Management to conclude that it is necessary to pursue the particulars previously demanded from Wenzel and, if necessary, to obtain a court order relating to same. In view of the advice received from counsel, Management has instructed its counsel to obtain a Special Case Management Order. The effect of this type of order is expected to expedite the trial process. Management believes that an expedited trial is in the best interests of NQL and its shareholders.

To: SofaSpud who wrote (11015)	5/30/1998 6:51:00 AM
From: Herb Duncan	Respond to of 15196

EARNINGS / World Wide Reports 1998 First Quarter Results TSE SYMBOL: WWS MAY 29, 1998 TORONTO, ONTARIO--World Wide Minerals Ltd. announced today its results for the three-month period ended March 31, 1998. Beginning with the first quarter of 1998, the Company adopted the United States dollar as its functional currency. Unless otherwise indicated, all figures are reported in United States dollars. The Company recorded a consolidated net loss of $516,000 or $0.01 per share for the three months ended March 31, 1998 compared to consolidated net income of $458,000 or $0.01 per share for the corresponding 1997 period. Results of operations for the first quarter of 1998 include sales of uranium concentrate aggregating $6,686,000 on which the Company realized an operating profit of $152,000 before charges for general corporate, interest and other costs. On-going costs associated with recovery of the Company's investment in Kazakhstan have been expensed as incurred following the provision for impairment in investment at year-end. Based on contracts in place, an additional $6.2 million of sales revenue will be generated in the second quarter resulting in an operating profit of about $450,000. To date, no deliveries are scheduled for the second half of 1998 although marketing efforts are ongoing. Contracted sales beyond 1998 exceed $37 million. It is the Company's strategy to emphasize base-price, multi-year sales contracts, which provide a more stable future commitment profile and resultant delivery prices than reliance upon the spot market. The delay in the recovery of the investment from Kazakhstan and the resulting shortfall in corporate capital has required the Company to substantially curtail development activities at the Dornod Mine in Mongolia. Stripping of overburden at the open pit mine commenced in December 1997 and the first ore was placed on the heap leach pad, taken from both the mine and the existing ore stockpile. Construction of the process plant has been delayed. Despite the delays, the Company is still in a position to complete construction of Phase 1 of the project in time to commence delivery of Mongolian-source uranium under contracts commencing in late 1998 or early 1999. /T/ 1998 First Quarter Highlights CONSOLIDATED STATEMENTS OF OPERATIONS (Thousands of United States dollars) March 31 1998 1997 ------------------------ Revenue $ 6,689 $ 289 --------- --------- Expenses Cost of sales 6,535 - General and administration 705 258 Kazakhstan negotiation costs 147 - Amortization 13 8 Interest 355 - Foreign currency gain (550) (435) --------- --------- 7,205 (169) --------- --------- Net income (loss) for the period $ (516) $ 458 --------- --------- --------- --------- Weighted average net income (loss) per share $ (0.01) $ 0.01 Weighted average number of shares (thousands) 55,037 51,272 /T/

To: SofaSpud who wrote (11015)	5/30/1998 6:54:00 AM
From: Herb Duncan	Respond to of 15196

MERGERS-ACQUISITIONS / Tarragon Oil and Gas Enters Into Agreement With Marathon Oil Company TSE, ME SYMBOL: TN MAY 29, 1998 CALGARY, ALBERTA--Tarragon Oil and Gas Limited ("Tarragon") announced today that it has entered into an agreement with Marathon Oil Company of Houston, Texas ("Marathon"), subject to receiving all necessary regulatory and shareholder approvals, whereby Marathon will acquire all of the issued and outstanding common shares of Tarragon by plan of arrangement pursuant to the provisions of the Business Corporations Act (Ontario). Under the proposed transaction, shareholders of Tarragon will receive at the option of the holder, for each Tarragon Share, Cdn. $14.25 cash or exchangeable shares of equivalent value of a wholly-owned Canadian subsidiary of Marathon that are exchangeable into shares of USX-Marathon Group Common Stock (NYSE Symbol: MRO). No more than 90 percent of the total consideration will be in the form of exchangeable shares, unless consented to by Marathon. The proposed transaction was negotiated by a Special Committee of Tarragon's board of directors, and, on the recommendation of the Special Committee, has been approved by the board. Nesbitt Burns Inc. is acting as financial advisor to Tarragon. The transaction will be subject to a number of conditions, including certain regulatory approvals, court approval and the approval of shareholders of Tarragon at a meeting expected to be held in August, 1998, with closing expected shortly thereafter. Tarragon has also agreed under certain circumstances if the transaction is not completed to pay a break fee of Cdn. $30 million to Marathon. Tarragon is a Canadian exploration and production company whose common shares trade on The Toronto Stock Exchange and The Montreal Exchange under the symbol TN.

To: SofaSpud who wrote (11015)	5/30/1998 6:55:00 AM
From: Herb Duncan	Respond to of 15196

EARNINGS / Harbour Reports First Quarter 1998 TSE SYMBOL: HRP MAY 29, 1998 CALGARY, ALBERTA--Harbour Petroleum Company Limited reports first quarter cash flow from operations of $244,000 compared to $1,260,000 in 1997. The 1997 numbers included revenue from the Jenner and Cessford South properties that were sold in 1997. Net oil and natural gas prices to the Company have also significantly decreased from the first quarter of the previous year. The corporate oil price was $14.71/bbl in 1998 compared to $22.74/bbl for the first quarter of 1997. Harbour's corporate gas price in 1998 was $1.46/mcf, a 32 percent decrease for the same period in 1997. Average daily oil production, including natural gas liquids, for the first quarter of 1998 was 593 bbls compared to 263 for the same period in 1997. Average daily natural gas production was 5,315 mcf in 1998 compared to 13,066 mcf in 1997. Gross general and administrative expenses in 1998 are consistent with previous quarters. These expenses will decrease in the second quarter of 1998 as a result of management changes and fewer consultants on staff. Net general and administrative expenses in 1998 are higher than previous quarters due mainly to changes in the Company's capitalization policy. Harbour's depletion, depreciation and amortization increased to $941,000 ($9.30 per BOE) in 1998 as compared to $672,000 ($4.76 per BOE) in 1997. The Jenner and Cessfod South reserves were included in the 1997 depletion calculation which helped to reduce the rate. Harbour has a working capital deficiency (excluding debt and the gas contract) of $3.9 million as of March 31, 1998. The sale of Wayne-Rosedale for $8.8 million will eliminate the negative working capital position and reduce debt. The sale is scheduled to close in mid-June 1998. The gas contract liability recorded in 1998 of $3,282,000 (current portion of $1,101,000) is the value of the open position on the production shortfall for the remainder of the 10,000 GJ/D contract using prices available at March 31, 1998. The increase from December 31, 1997 is due to stronger natural gas market prices at the end of the first quarter of 1998. Harbour did not record this liability in the first quarter of 1997 because gas production exceeded the contracted volume. The Company has put in place contracts to purchase 3,000 GJ/D at an average price of $1.80/GJ through to October 31, 1998 to reduce the production shortfall. Any remaining shortfall will be purchased on the spot market. Natural gas property acquisitions are currently being evaluated with a view of mitigating the gas contract and providing additional cash flow and growth potential. Harbour Petroleum Company Limited has 27,882,847 outstanding common shares and is listed on The Toronto Stock Exchange - symbol HRP.

To: SofaSpud who wrote (11015)	5/30/1998 6:57:00 AM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

EARNINGS / Landhawk Petroleum Corporation Announces First Quarter Results ASE SYMBOL: LHK MAY 29, 1998 CALGARY, ALBERTA--Landhawk's financial results during the first quarter of 1998 reflect the difficulties being experienced in completing the tie-ins of the four additional gas wells that were completed during 1997. For the first three months of 1998 Landhawk generated a net loss of $138,146 or $0.014 per common share on revenues of $148,306. Cash flow from operations for this period was ($106,933) or ($0.011) per common share. For the first three months of 1998, production from the six producing wells in the Sedgewick area generated an average 266 mcfd of natural gas, while oil and liquid production averaged 22 barrels per day. As was reported in our 1997 Annual Report, Landhawk expects to complete a further 4 wells during the third quarter with tie-in expected by the end of the third quarter. Once all tie-ins have been completed it is expected that total production from the Sedgewick area will average 4 mmcfd and 150 bopd of oil and liquids. Operations in Trinidad continue as planned with production during the first quarter of 1998 averaging 50 bopd from 13 reactivated wells and two flowing wells. Currently a program to complete 5 wells in by-pass pay zones is underway. As was reported in the 1997 Annual Report, Landhawk continues to move ahead with the expected merger of its assets and business with those of Energy North Inc. and Electra Energy Corporation. Further press releases will be issued as appropriate, and if the transaction proceeds, approval of two-thirds of the votes cast at the shareholders' meeting of all three companies, called for that purpose, will be required.