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

To: Kerm Yerman who wrote (11415)	6/23/1998 6:36:00 PM
From: SofaSpud	Read Replies (1) \| Respond to of 15196

ENERGY TRUSTS - Orion Distribution ORION ENERGY TRUST ANNOUNCES SECOND QUARTER CASH DISTRIBUTION CALGARY, June 23 /CNW/ - Orion Energy Trust (''Orion'') announced today a second quarter cash distribution of $0.18 per trust unit. This cash distribution is payable on July 15, 1998 to unitholders of record on June 30, 1998. Cumulative cash distributions for the first half of the year total $0.42 per trust unit. Cash flow for the first six months of the year is significantly lower than expected as a result of continuing low crude oil prices. Production of oil and liquids during the first six months of the year is approximately 5% below 1997 levels, largely related to downtime at the Sundre field. Pipeline restrictions and the operational decision to utilize the related downtime by initiating a full plant and battery maintenance program, resulted in the Sundre field being shut in for a period of 21 days at the end of May. The Sundre field produces an average of 1,020 barrels per day of oil and liquids, 32% of Orion's total. As a result of continuing low crude oil prices, Orion is deferring a portion of its planned 1998 capital expenditure development program associated with the acceleration of crude oil production. Accordingly, Orion now expects its crude oil and liquids production for 1998 to average 2,940 barrels per day, a 1% increase over the 1997 levels but down from earlier expectations of 3,300 barrels per day. Production of natural gas during the first six months of the year is approximately 2% above 1997 levels, notwithstanding the shut in period at Sundre which accounts for 13% of Orion's natural gas production. As a result of recent development work, Orion expects natural gas production for 1998 to average 16.9 million cubic feet per day, about 7% above the 1997 level and consistent with previous estimates, Crude oil prices during the first six months of 1998 have been very weak, averaging approximately US $15.00 WTI per barrel. During the same period, natural gas prices have been strong, averaging approximately $1.90 per million cubic feet. Based on a US $15 WTI crude oil price and natural gas at $2.05 for the balance of the year, Orion's full year distributions are estimated to be $0.85 per trust unit, down from its prior estimate of $ 1.10 per trust unit. Orion is pursuing acquisition opportunities arising as a result of the continued price weakness in world crude oil price markets and expects to acquire properties which will increase cash distributions and enhance unitholder values. Exploitation activities conducted during the first half of the year have yielded promising early results. This bodes well for Orion's ability to increase future production volumes as and when crude oil prices recover in the latter part of this year or early next year. With 68% of total production consisting of oil and liquids, current weak oil prices are the main reason for lower unitholder distributions. Orion is confident that oil prices will recover. While near term price weakness hurts current distributions, Orion's reserves are unimpaired and continue to provide underlying value to the unitholders. Orion's trust unit installment receipts trade on the Toronto Stock Exchange under the symbol ''OET.IR''. Following payment of the final installment due June 30th, 1998, Orion's trust units will trade on the Toronto Stock Exchange under the symbol ''OET.UN''. %SEDAR: 00004878E -30- For further information: Terry L. Parsons, Investor Relations Officer, Starvest Capital Inc., (403) 298-8498, Facsimile: (403) 262-1370; Alan MacDonald, Vice President, Finance, Starvest Capital Inc., (514) 392-9277, Facsimile: (514) 392-0004