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

To: Kerm Yerman who wrote (11215)	6/13/1998 6:53:00 AM
From: Herb Duncan	Respond to of 15196

ACQISITIONS-MERGERS / Beau Canada Closes Acquisitions And Completes Financing TSE, ME SYMBOL: BAU JUNE 12, 1998 CALGARY, ALBERTA--Beau Canada Exploration Ltd. is pleased to announce it has completed the acquisition of APL Oil and Gas Ltd. Beau Canada has also purchased additional interests in APL's properties from Morrison Middlefield Resources Limited and Kepec Resources Limited. The combined Morrison and Kepec acquisitions are approximately one-half the size of the APL acquisition and further consolidates Beau Canada's position in the core areas of Niton and Gull Lake in central Alberta. The acquisitions will add approximately 29 mmcf/d of natural gas and 1,600 bbls/d of liquids to Beau Canada's production base. The production additions are comprised of 19 mmcf/d of gas and 1,100 bbls/d of light oil and NGL's from APL as previously announced, plus 10 mmcf/d of gas and 500 bbls/d of light oil and NGL's from the Morrison and Kepec acquisitions. The acquisitions add approximately 30,000 net undeveloped acres in these highly prospective areas. Approximately 15 - 20 new drilling locations have been identified on these properties which will be pursued over the next 18 months. The total cost of the acquisitions, after adjustments, is approximately $95 million and has been funded through increases in bank lines and a two year $36.6 million Term Equity Financing with Enron Capital & Trade Resources Canada Corp., a subsidiary of Enron Corp., as well as an affiliate of Enron Corp. The financing with Enron defers interest payments until maturity and allows Beau Canada to repay the obligations at maturity with common shares at Beau Canada's option. In connection with the financing Beau Canada has granted two year warrants to Enron to purchase 7.9 million common shares at an exercise price of $2.80/share. If the warrants are exercised the proceeds will be used to repay the Term Equity Financing. Enron has agreed not to acquire additional common shares of Beau Canada without Board approval while the Term Equity Financing is outstanding. Enron and its affiliates currently own 7,000,000 common shares of Beau Canada representing approximately 7.7 percent of Beau Canada's outstanding shares. The Enron transaction is one step in Beau Canada's long term financing arrangements, which together with property dispositions is intended to further reduce debt levels. Beau Canada Exploration Ltd. is a Canadian oil and gas exploration and development company based in Calgary. Beau Canada's common shares are listed on The Toronto Stock Exchange and the Montreal Exchange under the symbol "BAU".