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

To: Herb Duncan who wrote (11578)	7/7/1998 4:05:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

MERGERS - ACQUISITIONS / Draig Energy - Update To Shareholders DRAIG ENERGY LTD. ASE SYMBOL: DRA JULY 6, 1998 CALGARY, ALBERTA--On July 2, 1998, management of Draig Energy Ltd. ("Draig") met with the special committee of the board of directors and management of Kensington Energy Ltd. ("Kensington") to address certain concerns expressed by the Kensington's board of directors with respect to the offer by Draig to purchase all of the outstanding Class A and Class B shares of Kensington. As a result of such meeting and the press release issued by Kensington on such date, Draig wishes to provide the following information directly to the Shareholders of Kensington: - The offer by Draig represents a significant premium of 37 percent for the Class A Shares and 87 percent of the Class B shares based on the ten day weighed average trading prices prior to the offer. - Draig believes that Kensington has been unable to attract any other bidder for the shares of Kensington. - As at July 1, 1998, Draig's production was approximately 1,200 boe per day. Management of Draig believe it will meet or exceed its projected production rate at year end of 1,400 boe per day. - Draig believes that the combination of the two companies will result in a more liquid market for both companies. Draig notes that according to the director's circular of Kensington, the President of Kensington and Kensington's issuer bid was responsible for approximately 55 percent of all Class A Shares traded in May 1998. Draig has no current plans to extend its offer beyond the expiry time of 4:30 p.m. Calgary time, July 7, 1998. Draig urges the Kensington Shareholders to fully consider the above matters and tender their shares to the offer. Kerm's note: This release is chained to related Kensington release. (click on message number opposite Herb's name)