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

To: SofaSpud who wrote (11514)	6/29/1998 10:01:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Denison Announces Oil Exploration Drilling Date and Obtains Stanrock Decommissioning Licence TSE, ME SYMBOL: DEN JUNE 29, 1998 TORONTO, ONTARIO--Denison Mines Limited announced today that a rig has been contracted to drill up to three exploration wells in the north Aegean Sea offshore Greece. The rig is being mobilized with August 1, 1998 as the estimated start date for drilling the first well. The location of the drilling will be finalized at the Operating Committee meetings in Athens on July 8th. Denison has received a decommissioning licence from the Atomic Energy Control Board ("AECB") for its Stanrock site at Elliot Lake, Ontario. The licence provisions are as anticipated. The capital works at Stanrock are proceeding and will be completed early this fall. This is the final licence required for the closure of the Elliot Lake mining facility. The AECB has not to date, given permission to complete construction of the Tailings Management Facility at the McClean Lake project. E. Peter Farmer, Denison's President and Chief Executive Officer, said that "significant progress has been made with the filing of the additional material requested by the AECB. I believe that determination by the AECB to permit completion of construction of the Tailings Management Facility is still achievable in time to permit production later in the year." Denison Environmental Services has been awarded the contract to decommission the Algoma Steel mine and mill near Wawa, Ontario. The reclamation work and the sale of the assets and equipment associated with the mine are proceeding well.

To: SofaSpud who wrote (11514)	6/29/1998 10:06:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Ohio Resources - Review of Third Quarter VSE SYMBOL: OHO JUNE 29, 1998 CALGARY, ALBERTA--Ohio Resources Corporation ("Ohio") is pleased to announce increased gas production during the third quarter as a result of five (1.45 net) successful gas wells drilled during the past winter and spring drilling programs. Four of these wells were tied in and commenced production during March and April and the fifth well commenced production in May. These wells were drilled at Midwinter (3) in northeastern B.C., Turin (1) and Westerose (1), Alberta. Ohio exited the third quarter at 381 boe/d vs 259 boe/d at the end of the second quarter. Cash flow increased 28.5 percent to $196,736 in the quarter as compared to $153,021 for the same period of 1997. Earnings increased 23.1 percent to $126,836 vs $103,021 in the third quarter of 1997. Cash flow and earnings increased despite a decrease in revenue of 11.7 percent to $467,447 against $529,352 in 1997. This is a result of lower production costs per boe in the new production area at Turin, Alberta. For the nine months ended April 30, 1998, petroleum and natural gas revenues, before royalties, decreased 22.4 percent from $2,131,548 in 1997 to $1,653,635 in 1998. This decrease was due to a decrease in the natural gas price from $2.21 per mcf in 1997 to $2.13 per mcf in 1998. This price decrease coupled with decrease in production from 3,582 mcf/d in 1997 to 2,875 mcf/d in 1998 resulted in lower revenues. Cash flow from operations decrease 21.5 percent to $605,104 from $771,109 in 1997. Net income decreased 25.9 percent to $339,304 from $457,927 in 1997 as a result of lower production volumes and natural gas prices. OUTLOOK Ohio has plans to participate in the drilling of four new wells throughout the summer. Two of these wells and one additional rework of an existing well will begin at Turin, Alberta (Ohio 50 percent) in mid-summer. These locations were identified by a 14 square mile 3-D program shot last fall. Ohio expects to exit the year ending July 31, 1998 at record production levels.

To: SofaSpud who wrote (11514)	6/29/1998 10:11:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Progress Energy Ltd. Announces Whitecourt Area Expansion and Production Update ASE SYMBOL: PGX.A PGX.B JUNE 29, 1998 CALGARY, ALBERTA--Progress Energy Ltd. (Progress) is pleased to announce production rates have increased to 700 bbls/d of average 30 API gravity oil. Production in the first quarter averaged 395 bbls/d. Progress also announces a major expansion in our Whitecourt, Alberta core area. Recent success at land sales, farm-ins and an acquisition have increased land controlled in the Whitecourt area to 74 sections (47,360 acres). Progress has an average 90 percent working interest. The acquisition property (subject to normal due diligence and closing requirements) currently produces 195 bbls/d of medium gravity oil and has two capped gas wells which tested at rates of 4 mmcfd each. Progress will operate the property with an 80 percent working interest. The effective date is June 1 and the 155 bbls/d net oil production from this acquisition was included in our 700 bbl/d total. In the second quarter Progress drilled 7 wells (4 oil, 1 gas and 2 dry). The oil wells are being completed and the 100 percent interest gas well tested 1 mmcfd and will be on production by August. Progress plans on drilling 10 wells in the third quarter. Progress has $2 million in cash and no debt after deducting the cost for the above acquisition.

To: SofaSpud who wrote (11514)	6/29/1998 10:16:00 PM
From: Herb Duncan	Respond to of 15196

CORP / Northstar Confirms Discussions TSE, ASE, ME SYMBOL: NEN JUNE 29, 1998 CALGARY, ALBERTA--Northstar Energy Corporation confirmed today, at the request of The Toronto Stock Exchange, that the company is in discussions regarding a transaction which would, if successful, constitute a material event to the company. There is, at this time, no assurance that the discussions will culminate in an agreement to pursue a transaction. If, as and when a transaction is agreed to, further details will be released. Northstar Energy Corporation is a Canadian company engaged in petroleum and natural gas exploration and production. The company's common shares are listed on the Toronto, Montreal and Alberta stock exchanges under the trading symbol NEN.

To: SofaSpud who wrote (11514)	6/29/1998 10:24:00 PM
From: Herb Duncan	Read Replies (1) \| Respond to of 15196

MERGERS-ACQUISITIONS / TARRAGON AND MARATHON OIL COMPANY TSE, ME SYMBOL: TN JUNE 29, 1998 Tarragon & Marathon Completes Formal Documentation of Acquisition CALGARY, ALBERTA and HOUSTON, TEXAS--Tarragon Oil and Gas Limited and Marathon Oil Company announced today that formal documentation has been completed between Tarragon and Marathon for the acquisition by Marathon of the outstanding securities of Tarragon by Plan of Arrangement. Under the terms of the transaction, securityholders of Tarragon will receive Cdn $14.25 cash for each Tarragon common share, or at the option of the holder, exchangeable shares of equivalent value issued by a wholly-owned Canadian subsidiary of Marathon that are exchangeable into shares of USX-Marathon Group common stock (NYSE symbol: MRO), or a combination of the foregoing (subject to a maximum 90 percent of the total consideration being paid in exchangeable shares). Subject to court confirmation, a Tarragon securityholders' meeting is expected to be called for mid-August 1998, to approve the transaction. An Information Circular will be mailed to all securityholders approximately one month prior to the meeting. In addition to shareholder approval, the transaction is subject to a number of other customary conditions, including certain regulatory approvals and court approval. 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 (11514)	6/29/1998 10:27:00 PM
From: Herb Duncan	Respond to of 15196

FIELD ACTIVITIES / Thunder Energy Inc. 2nd Quarter Drilling Results TSE SYMBOL: THY JUNE 29, 1998 CALGARY, ALBERTA--Thunder Energy Inc. (THY - TSE) today announced results of its second quarter drilling program. During the quarter Thunder drilled a total of 16 wells (8 net) resulting in 12 gas wells (6 net), 3 oil wells (1.5 net) and 1 dry hole (0.5 net). Thunder estimates its share of incremental production will be 2.5 mmcf/d of natural gas and 250 bbls/d of crude oil. The new wells were all drilled at Thunder's core property at Rosalind, Alberta. The program consisted of 11 wells targeting shallow gas in the Belly River, three horizontal infill wells in the Rosalind oil pool and two deeper tests of the Mannville section. All but one of the Belly River wells were successful. Due to proximity to existing infrastructure Thunder expects to have the new wells on stream by the end of July bringing total production to 11.5 mmcf/d and 1,150 bbls/d. Thunder will commence its third quarter drilling program in August targeting gas at its operated property at Matziwin. Thunder Energy is a Calgary-based oil and gas exploration company operating in Alberta. Thunder's shares are traded on the Toronto Stock Exchange under the trading symbol "THY".

To: SofaSpud who wrote (11514)	6/29/1998 10:29:00 PM
From: Herb Duncan	Respond to of 15196

MERGERS-ACQUISITIONS / Northstar and Devon Announce Merger TSE, ASE, ME SYMBOL: NEN JUNE 29, 1998 CALGARY, ALBERTA-- Northstar Energy Corporation today announced that it has reached an agreement with Oklahoma-based, Devon Energy Corporation to merge the two companies. The merger would create an evenly balanced oil and gas producer with 53 percent of its reserves in the U.S. and 47 percent in Canada. The combined company would have total proved reserves (net of royalties) of approximately 1.2 trillion cubic feet of gas and 117 million barrels of oil. The combined company will be very strongly capitalized with low debt levels relative to its peers. Basic Terms Of The Merger Both companies' boards of directors have unanimously approved a definitive Combination Agreement. Under the agreement, Northstar shareholders will receive .227 Devon common equivalent shares for each existing Northstar share. Application will be made to list the common equivalent shares, or "Exchangeable Shares" for trading on The Toronto Stock Exchange. The shares will be exchangeable, at each shareholder's option, for an equivalent number of Devon common shares. Devon common shares trade on the American Stock Exchange. Northstar shareholders will also receive a downside protection collar that will increase the exchange ratio, if the Canadian dollar value of the offer is less than $11.00 per Northstar share, subject to a maximum exchange ratio of .235 Devon shares. Based on June 26 closing price of U.S.$36.50 per Devon share, the offer equates to a value of Cdn.$12.17 per Northstar share. This represents a premium a 25 percent to Northstar's closing price of $9.75 on June 26 and a premium of 35 percent to Northstar's 20 day average closing price of $9.01 per share. In total, assuming the .227 exchange ratio, Devon would issue 15.4 million common equivalent shares. Devon also would assume Northstar's existing long-term debt which is currently approximately Cdn.$455 million. The Merged Company As one of the largest North American independent oil and gas producers, the combined company would rank in the top 15 of all US-based independent producers in terms of market capitalization and total proved reserves. In terms of US-only production, it would rank among the top 20 public independents. In Canada, the combined company would be a "Tier 1" producer ranking among the top 20 in terms of Canadian oil and gas production. The company's Canadian property base would be concentrated in six major areas. It would enjoy economies of scale through integration of Devon's existing Canadian operations and be among the lowest in Canada in operating costs per equivalent barrel of production. In the United States, the company's property base would be concentrated in 4 major basins. It, too, has relatively low operating costs and significant economies of scale. The combined company would have a large inventory of exploration opportunities, holding an aggregate of 2.5 million net acres of undeveloped lands. The combined company will have considerable exposure to Canadian and U.S. natural gas markets, balanced by substantial oil reserves, particularly in the Permian Basin of the U.S. The combined company will have approximately 47.7 million outstanding common shares with approximately 36.8 million shares in the public float. The company will be very strongly capitalized with approximately Cdn.$90 million in working capital, Cdn.$455 million in total debt based on current long-term debt levels and an estimated Cdn.$735 million in available financial borrowing capacity. The company's strategy will be to have two separate operating teams for the U.S. and Canadian operations and will operate in Canada as Northstar Energy. The company will have proven management teams in both the U.S. and Canada. John A. Hagg, President and CEO of Northstar and its current executive staff will lead the combined company's Canadian operations. J. Larry Nichols, President and CEO of Devon, will serve as President and CEO of the U.S. company. Other Terms and Conditions The merger is subject to approval by the shareholders of both companies as well as certain regulatory and court approvals including by way of a plan of arrangement in Canada. Devon and Northstar have each undertaken to pay to the other substantive termination fees in the event the merger is not completed and to provide each other certain other rights and non-solicitation provisions. Devon Energy Corporation is an independent energy company engaged in oil and gas property acquisition, exploration and production. It will be one of the top 20 public independent oil and gas companies in the United States. Devon's common shares trade on the American Stock Exchange under the symbol DVN. Northstar Energy Corporation is a Canadian company engaged in petroleum and natural gas exploration and production. The company's common shares are listed on the Toronto, Montreal and Alberta stock exchanges under the trading symbol NEN.

To: SofaSpud who wrote (11514)	6/29/1998 10:37:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS / Bowridge Achieves Record Year TSE SYMBOL: BOW JUNE 29, 1998 CALGARY, ALBERTA--Bowridge Resource Group Inc. grew significantly and achieved its best-ever results for the year ended April 30, 1998. Revenues were up 85 percent over the prior year to $18,246,487. Earnings before interest, taxes, depreciation and amortization were up 44 percent to $2,921,056 or 15 cents per share. Cash flow was up 33 percent to $1,690,859 or 9 cents per share. Net earnings after tax from continuing operations were up 35 percent to $907,876 or 5 cents per share. Per share numbers reflect the addition of 7.3 million shares to finance the acquisition of Delta-X in February, 1997. Bowridge expects to see continued growth in its operating results in its current year because its operating divisions are niche businesses strategically positioned on the production side of the natural gas and oil service sectors. Our CPT division is Canada's leading provider of specialized gas production testing services in the foothills region of Alberta, Northeastern British Columbia, Northwest Territories and the Yukon. The Delta-X division is a worldwide supplier of high-tech oilfield automation equipment that will reduce operating costs for the producer and optimize production. Bowridge is a growth oriented oilfield technology and service company. We acquire and build oil and gas service businesses that help producers reduce costs, improve productivity and respond to changing environmental regulations. Bowridge's Annual Meeting will be held on Wednesday, September 9, 1998 at 10:00 a.m. in the Bonavista Room of the Westin Hotel, 320 - 4th Ave. SW, Calgary, Alberta. /T/ Financial ($000 except as noted) Year Ended April 30 1998 1997 -------------------------------------------------------------- Revenue 18,247 9,913 Earnings from Continuing Operations 908 671 Earnings Per Share (cents) 5 6 Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) 2,921 2,030 Cash Flow(x) from Operations 1,691 1,269 Cash Flow(x) per Share (cents) 9 10 Outstanding Shares Weighted Average (000) 18,914 12,622 At year end (000) 19,098 18,736 /T/ All per share numbers referred to are Basic. (x)Cash flow from operations is before changes in non-cash working capital.

To: SofaSpud who wrote (11514)	6/30/1998 1:49:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

PROPERTY ACQUISITION / Husky Oil Ltd. To Buy East Coast Properties From Talisman Energy & Gulf Canada Resources HUSKY TO PURCHASE EAST COAST PROPERTIES FROM TALISMAN AND GULF CALGARY, June 29 /CNW/ - Husky Oil Limited has reached agreement with Talisman Energy Inc. and Gulf Canada Resources Limited to purchase a number of properties off the East Coast of Canada including interests in White Rose, Terra Nova, North Ben Nevis, Nautilus and Mara. A total of 12 significant discovery areas in the Jeanne d'Arc Basin are included and approximately 22,000 net hectares (55,000 acres). Talisman will receive $50 million for its lands and Gulf $20.66 million. ''This opportunity is an excellent strategic fit for Husky,'' says John C. S. Lau, Chief Executive Officer of Husky Oil. ''It builds on our long-term commitment to the East Coast as a significant part of our core business.'' ''This is a win for all involved,'' said Talisman President and C.E.O. Jim Buckee. ''The sale will allow us to focus our investment in higher working interest core areas in Canada, the North Sea and Indonesia.'' Richard Auchinleck, President and C.E.O. of Gulf Canada, adds, ''While Gulf remains committed to Canada's East Coast, this sale is part of Gulf's planned divestitures of properties in which we hold small, non-operating interests. This will permit us to reinvest funds into the Saint-Pierre & Miquelon Southcoast block.'' Husky Oil Limited is a Canadian-based integrated oil and gas company headquartered in Calgary, Alberta. The Company's operations include the exploration for and development of crude oil and natural gas, as well as the production, purchase, transportation, upgrading, refining and marketing of crude oil, natural gas, natural gas liquids, sulphur and petroleum coke, and the marketing of refined petroleum products, including asphalt. Talisman Energy Inc. is a Canadian-based, international upstream oil and gas producer with operations in Canada, the North Sea and Indonesia. The Company is also conducting exploration in Algeria and Trinidad. Talisman's shares are listed on the Toronto, Montreal and Vancouver stock exchanges in Canada and the New York Stock Exchange in the United States under the symbol TLM. Gulf Canada Resources Limited is an international oil and natural gas exploration and production company with operations in Canada, Indonesia, the North Sea and Australia. Gulf's shares are listed on the Toronto and Montreal stock exchanges in Canada and the New York Stock Exchange in the United States under the symbol GOU.