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

To: Herb Duncan who wrote (11026)	6/1/1998 4:25:00 PM
From: SofaSpud	Read Replies (12) \| Respond to of 15196

EARNINGS / Jet Energy Q2 Results JET ENERGY CORP. - EXPLORATION AND DEVELOPMENT PLANS ANNOUNCED Cusip No. 476905104 TSE and VSE Symbol: JEC Listed Standard & Poor's Manual OTC Bulletin Brd. Symbol: JECXF Issued and Outstanding Shares: 21,919,576 CALGARY, June 1 /CNW/ - Jet Energy Corp., like many other oil Companies, has experienced downward pressure on revenues as a result of lower commodity prices. The Company, however, is pleased to report that as a direct result of increased production Jet Energy expects to report a modest revenue gain through the first half of 1998. Recent exploration activity included acquisition of 116 square kilometers of 3-D seismic on 3 prospects, participation in the drilling of 2 wells at Kaybob, 1 at Sand Creek (Willesden Green) and the evaluation and acquisition of a development project at Virginia Hills. Moving into the third quarter, the Company has a 9 well drilling program planned. At Fort St. John, Jet Energy as operator, will drill 2 horizontal wells on a 9-section block. The Company has committed approximately $1.9 Million of capital to evaluate natural gas potential in the Cadomin and Baldonnel formations. Recent amendments to the royalty structure in British Columbia will significantly improve the economics of developing oil and gas reserves. At Virginia Hills, Jet Energy as operator, will commence drilling 1 vertical and 2 horizontal development wells to accelerate oil production from the Swan Hills reef formation. The Company now holds and operates an interest in 8 sections (5,120 gross and 4,359 net acres) of oil and natural gas rights plus has an option to earn an interest in 2 additional sections by drilling a Swan Hills reef test. A capital expenditure program of $3.0 to $4.0 Million has been allocated to this project during phase one. Pipeline capacity and production facilities are in place so that a successful drilling program has the potential to make a significant impact on 4th Quarter cash flow. Success will lead to an expanded 3-D seismic and development drilling program for 1999. Development continues at the Company's non-operated Kaybob property. Construction of facilities and pipelines for the last 3 wells drilled has been on-going during the 2nd Quarter. Two of the wells are tied-in and producing: the third is awaiting a production test and tie-in. Plant modification, completed during downtime for routine scheduled maintenance (late June early July), will allow for more efficient processing of this liquids rich natural gas stream. As a result, the Company expects that by August its production levels from Kaybob should reach 1300 to 1500 BOEs/d from the current 800 BOEs/d range. Jet Energy expects to participate in the drilling of at least 2 development wells prior to year end. The acquisition of additional 2-D seismic data has allowed the Company to identify 2 new natural gas prospects in the Willesden Green/Ferrier Area. Jet Energy expects to spud a 2800 m well later this year on a 9-section block owned 100% by the Company. In addition, the Company is participating at a 40% working interest level in a non-operated exploratory well on the second block. Jet Energy, headquartered in Calgary, is an active oil and gas producer growing through exploration activities. On Behalf of the Board of Directors of Jet Energy Corp. (signed) William B. MacDonald President and CEO The Toronto Stock Exchange and the Vancouver Stock Exchange do not approve or disapprove the contents of this news release -30- For further information: Mr. Bill MacDonald or Mr. Scott Watson, (403) 244-0440, Fax: (403) 228-9490