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

To: Herb Duncan who wrote (11085)	6/3/1998 1:08:00 PM
From: SofaSpud	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Raptor Horizontal Well RAPTOR CAPITAL CORPORATION (''RAPTOR'') ANNOUNCES CURRENT DRILLING OPERATIONS CALGARY, June 3 /CNW/ - Mr. Ian McMurtrie, President of Raptor, announces that the Company has drilled the first of two re-entry horizontal development wells at Minton Saskatchewan and has drilled one of three vertical exploration wells in Central Alberta. MINTON SASKATCHEWAN: The Raptor et al Minton 2D1-18-2C3-17-3-21-W2M vertical well was re-entered and drilled to a total depth of 3108 meters, with 524 meters of horizontal oil pay in the Winnipegosis zone. This well will be placed on stream within a week. A second re-entry well the Raptor Minton HZ D13-8-C5-17-3-21-W2M horizontal well commenced operations June 1, 1998. Two horizontal legs of approximately 400 meters each will be drilled in the Red River zone in this well which is expected to be completed in one week. Both wells will be drilled at minimal costs to Raptor through a farmout that will see Raptor's working interest in the Minton field reduced from 75% to 60% after payout. Six additional vertical wells are available for re-entry and horizontal drilling in the Winnipegosis and Red River zones at Minton. CENTRAL ALBERTA: The Raptor et al Forestburg 5-3-42-15-W4M well was spudded June 1, 1998 and will be drilled to a total depth of 1,100 meters to test glauconite channel sands. The Raptor et al Morningside 8-32-42-27-W4M well was drilled to total depth of 1734 meters and was abandoned having encountered non-commercial natural gas. The Morningside well was drilled at minimal cost to Raptor. A third well is expected to be drilled in the area during the summer. Raptor has working interests averaging 36% - 68% in Central Alberta. The Alberta Stock Exchange has neither approved nor disapproved this announcement. -30- For further information: Jim Kootnekoff, 1-888-344-7999

To: Herb Duncan who wrote (11085)	6/4/1998 2:54:00 PM
From: SofaSpud	Read Replies (3) \| Respond to of 15196

EARNINGS / Anderson Exploration Q2 Results Anderson Exploration Ltd. Announces Its Financial and Operating Results for the First Half of Fiscal 1998 Ending March 3 CALGARY, ALBERTA--Today in Calgary, Anderson Exploration Ltd. announced its financial and operating results for the first half of its fiscal year which ended on March 31, 1998. The Company continued to meet its production targets in the second quarter of fiscal 1998, recording an eight percent increase in barrel of oil equivalent production over the same period last year. Cash flow from operations for the first half of the year was $155.9 million or $1.27 per share and earnings were $8.7 million or $0.07 per share. During the first half of fiscal 1998, oil and NGL sales increased 15 percent to 38,497 barrels per day. Natural gas sales for the first half of the year averaged 557 million cubic feet per day compared to 542 million cubic feet per day last year. Liquids prices for the first half of fiscal 1998 were down 30 percent from last year while natural gas prices were down seven percent. Lower prices more than offset increases in production, resulting in a decrease in revenues. This decrease, combined with higher costs, resulted in a decrease in cash flow from operations and earnings from the same period in the previous year. Operating expenses increased over last year due to increased heavy oil production, the continuation of some significant workover programs and higher overall costs in the industry. The Company expects to see a reduction in operating expenses in the last half of the year. Net capital expenditures for the first half of the year were $374.2 million representing 74 percent of the 1998 fiscal budget. These expenditures include the Swan Hills acquisition in the first quarter of the year for $98 million and $32 million in construction costs for Federated Pipe Lines' expansion, now scheduled for start up on July 1, 1998. In the first half of the year, the Company drilled 312 gross wells (213 net) compared to 398 gross wells (240 net) for the same period last year. The average well depth increased by about 1,150 feet, as activity shifted to deeper parts of the basin. A busy winter drilling program was completed in northeastern British Columbia and northern Alberta. In British Columbia, extensive gas gathering systems were built to fill available capacity at existing plants. Notwithstanding the lower commodity prices experienced in the first half of the year and expectations for prices in the second half of the year, the Company expects to spend its original budget of $505 million. However, as a result of low crude oil prices and high heavy/light oil differentials, the Company has postponed certain capital expenditures related to heavy oil projects and has now shut in approximately 1,300 barrels per day of heavy oil production. Serious forest fires in north central Alberta have resulted in the temporary shut in of substantial light oil production at Swan Hills, Virginia Hills and Mitsue. The exact effect that the fires will have on the Company's projected annual sales is still unknown. While the Company expects cash flow from operations and earnings for the year to be less than last year, production growth will continue. Higher natural gas prices are expected for fiscal 1999 once increases in export pipeline capacity are brought on stream in November 1998, putting the Company back on track for improved financial results next year. Anderson Exploration Ltd. is one of the senior Canadian producers most leveraged to natural gas with 67 percent of its sales volumes derived from natural gas and natural gas liquids. Considering this, the Company is well positioned to take advantage of future natural gas price increases. /T/ Three months ended Six months ended March 31 March 31 1998 1997 1998 1997 -------------- ----------------- FINANCIAL (millions of dollars, except per share amounts) Total Revenue Before Deducting Royalties $163.5 $199.6 $358.7 $406.6 -------------- --------------- Cash Flow From Operations Oil & Gas $ 61.9 $100.2 $150.4 $216.9 Pipeline $ 3.2 $ 2.3 $ 5.5 $ 4.9 -------------- --------------- Total $ 65.1 $102.5 $155.9 $221.8 -------------- --------------- Per Share $ 0.53 $ 0.84 $ 1.27 $ 1.82 -------------- --------------- Earnings Oil & Gas $(4.9) $ 21.6 $ 4.8 $ 57.0 Pipeline $ 2.3 $ 1.6 $ 3.9 $ 3.4 -------------- --------------- Total $(2.6) $ 23.2 $ 8.7 $ 60.4 -------------- --------------- Per Share $(0.02) $ 0.19 $ 0.07 $ 0.50 -------------- --------------- Net Capital Expenditures 159.6 174.8 $374.2 $247.1 Long Term Debt $704.7 $483.9 Long Term Debt/Cash Flow (Annualized) 2.3 1.1 Working Capital (Deficiency) $(71.6) $(61.1) Shareholders' Equity $998.7 $951.6 Shares Outstanding (millions) At End of Period 122.7 121.9 Weighted Average During Period 122.5 121.8 122.4 121.6 Three months ended Six months ended March 31 March 31 1998 1997 1998 1997 ------------------ ---------------- OPERATIONS PRODUCTION/SALES Natural Gas (Mmcf/d) 554 543 557 542 --------------- ---------------- Oil (Bbls/d) 31,062 27,834 30,879 27,143 NGL (Bbls/d) 8,731 5,752 7,618 6,232 ---------------- ---------------- Total Liquids (Bbls/d) 39,793 33,586 38,497 33,375 ---------------- ---------------- PRODUCT PRICES Natural Gas ($/Mcf) $ 1.87 $ 2.23 $ 1.99 $ 2.15 ---------------- ---------------- Oil ($/Bbl) $17.04 $26.44 $19.79 $27.88 NGL ($/Bbl) $16.78 $26.19 $18.98 $27.99 ---------------- ---------------- Total Liquids ($/Bbl) $16.98 $26.40 $19.63 $27.90 ---------------- ---------------- CANADIAN OPERATING NETBACKS ($/BOE (x)) Oil & Gas Revenue $18.00 $23.91 $19.83 $23.96 Royalties $(3.40) $(4.79) $(3.85) $(4.38) Operating Expenses $(5.29) $(4.53) $(5.22) $(4.18) G&A Expenses $(0.91) $(0.84) $(0.85) $(0.81) -------------- ---------------- Netback $ 8.40 $13.75 $ 9.91 $14.59 -------------- ---------------- (x) Gas converted to Oil @ 10 Mcf/Bbl GROSS NUMBER OF WELLS DRILLED IN CANADA Oil Wells 26 54 90 175 Gas Wells 119 113 165 153 Dry Holes 35 44 57 70 -------------- --------------- 180 211 312 398 Service Wells 6 3 6 30 -------------- --------------- Total 186 214 318 428 -------------- --------------- /T/ Anderson Exploration Ltd. is a Calgary based oil and gas company operating exclusively in western Canada. Its common shares trade under the symbol "AXL" on The Toronto Stock Exchange. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Anderson Exploration Ltd. J. C. Anderson Chairman & Chief Executive Officer (403) 232-7100 or Anderson Exploration Ltd. Larry J. Macdonald President & Chief Operating Officer (403) 232-7100 or Anderson Exploration Ltd. David G. Scobie Senior Vice President & Chief Financial Officer (403) 232-7100