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

To: SofaSpud who wrote (11695)	7/10/1998 3:44:00 PM
From: SofaSpud	Read Replies (1) \| Respond to of 15196

FIELD ACTIVITIES / Bitech BITECH PETROLEUM CORPORATION - KOMI REPUBLIC UPDATE TORONTO, July 10 /CNW/ - BITECH PETROLEUM CORPORATION (TSE: ''BPU'') announced today several items which have consolidated its position in the Komi Republic of the Russian Federation. 100% Ownership The acquisition of the remaining 5% interest in its Russian subsidiary, Bitech-Silur JSC, has now been completed. The consideration paid for the acquisition was the issue of 2,190,116 Bitech Petroleum Corporation shares. Based on the latest audited reserve report, this acquisition added approximately 7.4 million barrels to the Company's 1st January 1998 reserve estimates. New License Following its recent successful tendering for the West Kyrtayel license, Bitech has been offered an additional license, referred to as the Denissov Depression. This license lies to the north of Pechora, the centre of the Company's operations. The work programme is currently under negotiation with the Government but is expected to comprise a five and half year period, including a mix of reprocessing of existing seismic and the acquisition of new seismic leading to the possible drilling of two wells. The attached map sets out the license's exact location in relation to Bitech's existing assets and other proven oil and gas fields. The area covered by the Denissov Depression is 4,393 km(2). Lekker First Commercial Production Commercial production commenced at Lekker on 11th June from well L-11. Well L-1 is expected to be in production shortly. Financial Results, Operations and Oil Sales Bitech recently released its first quarter's results. These reported net income for the quarter of US $899,546, based on oil revenues of US $8,033,630. This represented cash flow from operations before changes in non-cash working capital of US $2,488,751 or 5.4 cents per share. In the text of the Quarterly Report, reference was made to the decline in the price of crude oil and the effects this has had on the Company's cash flow and operations. The oil price situation has declined even further in the last few weeks. The price of Brent is now at its lowest point for a number of years and the domestic price in Russia has weakened. The latter point appears to have been caused by a Government decree seeking to control export sales of those companies who have taxation arrears. Bitech is not affected by the decree directly as its tax payments are up to date. In view of the deteriorating price position, Bitech has taken stringent but controlled cost cutting measures to preserve cash. These have included the decision to curtail its current development programme at its Lekker and South Kyrtayel fields and defer the drilling of new wells at Lekker. All necessary infra-structure, for full production at Lekker, is in place, including the drilling rig and Transneft pipeline tie in. The first Lekker well will be spudded and other capital programmes resumed, when Management believes the oil price has returned to sustainable levels. Two wells have been drilled recently at South Kyrtayel. Well SK-102, drilled from the south pad, was a step-out well aimed at appraising the eastern flank of the reservoir. The well demonstrated that the main oil-bearing sand has been eroded in this area. The well is currently suspended and will be side-tracked when the oil price improves. SK-204, drilled from the north pad, encountered a separate fault block with reservoir pressure higher than that originally experienced in the main field. The well is currently being tested to provide an initial indication of the reserves contained in the separate fault block. Following this, it is expected that the well will be deepened to determine the oil water contact and further assess the size of this new accumulation. Again, the timing of this extension is dependent on the oil price. To increase production in the short term, the Company is carrying out two work-overs at South Kyrtayel and the selective acidization of wells L-1 and L-11, at Lekker. The effect of the drilling results and the deferral of the new drilling at Lekker means that the 1998 production targets will not be met. The impact of this is partly mitigated by the anticipated increase in production from the work-overs and selective acidization discussed above. On the assumption that one new well is drilled at Lekker it is now anticipated that year-end production will be approx. 12,000 barrels of oil a day. Tax Reductions In Russia, tax revenues are allocated between the Federal and local Republic Governments. With effect from 1st July, the Komi Government has reduced its share of taxes that it collects. The reductions affect royalty (or subsoil tax), geological, road and property taxes. Using current prices, the 1998 positive financial impact of the tax reductions to Bitech is expected to be approximately US $700,000. Economic situation in Russia The economic situation in Russia has been the subject of much discussion recently. Whereas this is a cause for concern, it also gives rise to a number of business opportunities. As the Russian Government seeks to bring commercial discipline to major Russian companies, unexpected acquisition possibilities are emerging. Bitech is well placed to take advantage of these and is working to capitalise on the current window of opportunity. BITECH PETROLEUM CORPORATION is a Canadian company with a service office in London, England. Through its wholly owned Russian subsidiary, the Company is active in oil development and production in the Komi Republic of the Russian Federation. -30- For further information: Mr. James B. Clubb, Chairman and CEO; Mr. Nicholas H. Gay, Chief Financial Officer; Mr. Raymond De Smedt, Vice Chairman; Telephone - 44 171 766 9600; Facsimile - 44 171 766 9600; bitechpetroleum.com

To: SofaSpud who wrote (11695)	7/10/1998 3:46:00 PM
From: SofaSpud	Respond to of 15196

FINANCING / Cirque Energy CIRQUE RAISES $1.5 MILLION - SECOND UK WELL SUCCESSFUL CALGARY, July 10 /CNW/ - Cirque announces that a total of $1.5 million was raised in the Rights Issue that closed on July 3, 1998. The funds will primarily be utilized to continue with the United Kingdom drilling program. The directionally drilled Fiskerton FA2 is currently being cased to 1685 meters as a potential oil well. The well encountered Basal Sandstone units totalling 38 feet of oil stained porous reservoir rock. No drillstem tests were run. The FA2 well was drilled into a separate fault block on the Fiskerton structure, expanding the reserve base to the west. The rig will be moved 10 meters to the FA3 surface location and a target zone will be directionally drilled to test the north east boundary of the original Fiskerton discovery. The FA3 well is expected to reach its target depth by July 31, 1998. The discovery FA1 well continues to produce at a restricted flow rate of 300 barrels of oil per day. The new wells, FA2 and FA3, will be completed after the drilling rig moves off the Fiskerton pad allowing access for a service rig. ON BEHALF OF THE BOARD OF DIRECTORS, Glen A. Phillips President & CEO The Alberta Stock Exchange has neither approved nor disapproved the contents of this news release. -30- For further information: Glen A. Phillips, President & CEO or Ross A. Jones, Vice President of Finance, Cirque Energy Corp., (403) 266-4344, Fax: (403) 290-0043, Website: cirque-energy.com, Email: info@cirque-energy.com

To: SofaSpud who wrote (11695)	7/10/1998 3:47:00 PM
From: SofaSpud	Respond to of 15196

NORMAL COURSE ISSUER BID / Lateral Vector LATERAL VECTOR RESOURCES INC. ANNOUNCES ISSUER BID UPDATE REGINA, July 10 /CNW/ - Lateral Vector Resources Inc. (''LVR'') announces that the company has purchased 408,500 shares through its normal course issuer bid. The TSE has authorized the purchase of up to 1,640,000 shares under the bid, which will terminate on December 21, 1998. The company also announces that it will not initiate a special issuer bid outside of the previously authorized normal course bid. Capital of the company has been priorized in the 1998 budget for the advancement of the company's two strategic projects in China and Ukraine. The company will continue to purchase shares under the normal course issuer bid taking into consideration both market conditions and available capital. Lateral Vector Resources Inc. is a Canadian resource company with head office in Regina, Saskatchewan. The Company specializes in international oil projects and is listed on The Toronto Stock Exchange under the symbol LVR. The TSE has neither approved nor disapproved of the information contained herein. -30- For further information: Bruce Ryan, Vice President Finance and Secretary, (306) 569-1700, or Robert Knight, Chairman, (403) 531-2088