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Gold/Mining/Energy : Tusk Energy (TKE) -- Ignore unavailable to you. Want to Upgrade?

To: Robert McCullough who wrote (719)	9/2/1998 9:54:00 PM
From: Robert McCullough	Respond to of 1207

Tusk Drills Two Best Oil Wells In Alberta During First Half 19:45 EST Tuesday, September 1, 1998 Canadian Corporate News CALGARY, ALBERTA--Highlights of the six months ended June 30, 1998 for TUSK Energy Inc. included the drilling of two major oil discoveries and a gas discovery at Strachan. At Meekwap, Alberta (17.6 percent net) an oil discovery, which went on production in April, continues to flow more than 1,300 boepd (229 net) with no water. A second oil discovery went on production in July and is currently flowing at more than 880 boepd (155 net) with no water. Recent discoveries have left TUSK with excellent potential to enhance the value of the Company with further drilling. Additional drilling in the Meekwap area is expected during the winter season. During the six month period ended June 30, 1998 production averaged 563 boepd, an 11 percent decrease from the 635 boepd average of the first half of 1997. Oil prices, which averaged over $7.00 per barrel lower than in the first half of 1997 and lower average daily production were the main cause in the drop in cash flow to $820,450 for the quarter compared to $1,528,741 for the six month period ended June 30, 1997. Cash flow per share was $0.09 per share compared to $0.20 per share last year. The operations of the Company continued to show positive earnings despite the downturn in oil prices. Net income per share was $0.04 compared to $0.06 in 1997. Capital spending during the quarter was $2,184,359 during the first half compared to $2,103,307 one year earlier. At the end of the period long term debt was $4,108,819 and working capital was $124,306. Profit Cash First per Cash Flow Net Half Profit share Flow per share Revenue ---- -------- ------ ---------- --------- ---------- 1998 $404,250 $ 0.04 $ 820,400 $ 0.09 $1,915,489 1997 $540,241 $ 0.06 $1,528,741 $ 0.20 $2,333,545 During the month of July average production was 838 boepd, annualized cash flow was $2.5 million and annualized cash flow per share was $0.24. TUSK's primary producing area continued to be Meekwap, Alberta which represented 80 percent of TUSK's overall production during the period. TUSK operates over 90 percent of its net production. During the period TUSK participated in the drilling of 5 wells (0.76 net) resulting in one gas well, two oil wells and two dry holes. The abandoned wells (0.32 net) were at Pine Creek (0.20 net) and east of Meekwap (0.12 net). The two oil wells were both at Meekwap (0.34 net) amd a deep exploratory test at Strachan (TUSK 10 percent BPO, 30 percent APO) is a gaswell. Further information on the Strachan project is expected to be released in late September. c Canadian Corporate News - 1998