Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Herb Duncan who wrote (11592)	7/7/1998 3:54:00 PM
From: Kerm Yerman	Respond to of 15196

FIELD ACTIVITIES / Hegco Canada Announces Oil & Gas Reserves HEGCO CANADA INC. ASE SYMBOL: HEG JULY 6, 1998 EDMOND, OKLAHOMA--HEGCO Canada Inc. is pleased to announce that it has received an Engineering Report of Oil & Gas Reserves as of May 1, 1998. The report was prepared by Rush-Andrus Engineering, an independent third part engineering firm located in Edmond, Oklahoma, and is dated June 15, 1998. A copy of the summary letter is available upon request. Four field are included within the engineering report the fields include: El Grande Prospect; N.E. Garber Prospect; Ponca City Field Project and the Three Sands Field. All dollar amounts are stated in U.S. Dollars. The summary of pre-tax cash flow projections are set forth in the following table: /T/ SUMMARY OF PRE-TAX CASH FLOW PROJECTIONS ----------------------------------------------------- PRODUCTION --------------------------- HEGCO W.I. NET ----------------------------------------------------- MBBL MMCF MBBL MMCF ----------------------------------------------------- Proved Producing 522 0 417 0 Proved Non-Producing 416 546 328 431 Proved Behind Pipe 492 2818 388 2254 Proved Undeveloped 3831 0 3035 0 ----------------------------------------------------- Total Proved 5261 3364 4168 2685 ----------------------------------------------------- ----------------------------------------------------- Probable Additional 0 112206 0 94071 ----------------------------------------------------- ----------------------------------------------------- Total Reserves: 5261 15570 4168 96756 ----------------------------------------------------- ------------------------------------------------------------- NET CUM. 10 Percent OPERATING OPERATING CASH PV CUM.CASH REVENUE EXPENSES FLOW FLOW M$ M$ M$ M$ ------------------------------------------------------------- Proved Producing 6388 1842 4093 2699 Proved Non-Producing 5460 2049 2822 1792 Proved Behind Pipe 11001 2636 7206 3201 Proved Undeveloped 46437 12330 24863 14124 ------------------------------------------------------------- Total Proved 69286 18857 38984 21816 ------------------------------------------------------------- ------------------------------------------------------------- Probable Additional 211661 5809 182595 115311 ------------------------------------------------------------- ------------------------------------------------------------- Total Reserves: 280947 24666 221579 137127 ------------------------------------------------------------- /T/ - Note: Net operating revenue is before severance / AdV taxes. - Note: The cash flow estimates contained in this table include the capital costs associated with developing the designated reserves. - Note: It is not intended as, nor should it be considered an indication of Fair Market Value. The oil reserves are calculated based upon a $13.75 spot price while the gas reserves are calculated based upon a price of $2.25/mcf. The value of the reserves will be increased or decreased depending on the spot price of oil and gas. Hegco's average price per barrel oil for the first three quarters of fiscal ending March 31, 1998 has been $17.41 per barrel. The category Total Reserves includes Probable Additional reserves which have been risked at a probability of success factor of 0.50. Within the category Total Proved is a classification of Proved Undeveloped which have been risked at a probability of success factor of 0.75. Highlights from the reserve report and calculation from US dollars to Canadian dollars are set forth below. The conversion rate from US dollars to Canadian dollars utilized was 1.4706. /T/ CUM. CASH CUM. CASH BARRELS OF MCF FLOW FLOW CATEGORY OIL OF GAS U.S.DOLLARS CDN DOLLARS -------- ---------- --------- ----------- ----------- Total Proved Hegco W.I. 5,261,000 3,364,000 - - Total Proved Net 4,168,000 2,685,000 $38,984,000 $57,329,870 Total Reserves Hegco W.I. 5,261,000 115,570,000 - - Total Reserves Net 4,168,000 96,756,000 $221,579,000 $325,854,000 /T/ The Probable Additional category includes reserves in the El Grande Prospect. The Engineering Report forecast for the gross reserves developed by reentering/drilling the El Grande well is limited to drilling and completing 8 Arbuckle and 8 Penters wells within the confines of the El Grande Prospect. The report also states, "Interpreted probable areal extent of the El Grande productive reservoir is between ten gas units (6,400 acres) and thirty gas units (19,200 acres) with possible additional." Hegco currently holds interest in thirty-three possible gas units (based on 640-acre spacing). Once the El Grande well is completed a updated report will be obtained to recategorize the reserves associated with the El Grande well and increase the area for evaluation of reserves.

To: Herb Duncan who wrote (11592)	7/7/1998 4:38:00 PM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

MERGERS - ACQUISITIONS / Tappit Resources Ltd. Acquires 91.7 Percent of Goal's Outstanding Shares TAPPIT RESOURCES LTD. ASE SYMBOL: TPT JULY 7, 1998 REGINA, SASKATCHEWAN--TAPPIT RESOURCES LTD. ("Tappit") announces that as of the expiry of the extension of its take-over bid offer for all of the common shares of Goal Energy Inc. ("Goal") at 5:30 p.m. (Calgary time) on July 6, 1998, approximately 459,055 additional common shares of Goal were tendered into Tappit's offer and have been taken up and paid for. As a result of Tappit's successful offer, Tappit now holds an aggregate of 21,631,919 shares of Goal representing approximately 91.7 percent of the outstanding common shares of Goal. Tappit intends to forthwith proceed to acquire the remaining common shares by Goal by implementing the compulsory acquisition provisions of the BUSINESS CORPORATIONS ACT (Alberta). Tappit is currently completing a 65 percent owned well in a light oil area of S.E. Saskatchewan with production expected by August 1, 1998. Tappit's production with the Goal acquisition, is in excess of 1,100 barrels of oil equivalent per day (BOEPD). Tappit also announces that a Notice of Intention to Make a Normal Course Issuer bid has been accepted for filing with The Alberta Stock Exchange. The Notice provides that Tappit may purchase up to 1,500,000 common shares being 5.4 percent of the issued and outstanding capital of Tappit and approximately 6.6 percent of the public float, commencing on July 7, 1998 for a period of one year. Purchases will not exceed 2 percent of the outstanding common shares in any 30 day period. The purchases of common shares will be made through the facilities of The Alberta Stock Exchange. Green Line Services (A division of TD Securities Inc.,) will be making purchases on behalf of the Company. The directors and management of the Corporation are of the opinion that its common shares are currently undervalued relative to the net asset value of the Corporation. As a result, management is of the opinion that the purchase of common shares is an appropriate use of funds and in the interests of its shareholders.